safety - PKN Orlen
safety - PKN Orlen
safety - PKN Orlen
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RESPONSIBLE DEVELOPMENT<br />
Corporate Responsibility Report<br />
Polski Koncern Naftowy<br />
ORLEN Spó³ka Akcyjna<br />
2010
Table of contents<br />
Table of contents<br />
Letter of the President of the Management Board of <strong>PKN</strong> ORLEN SA.................................................................................5<br />
What is worth knowing about <strong>PKN</strong> ORLEN?................................................................7<br />
1. Market............................................................................................................................13<br />
<strong>PKN</strong> ORLEN – a brand open to dialogue ...................................................................................................14<br />
1.1. <strong>PKN</strong> ORLEN on the Capital Market.............................................................................................................................16<br />
Corporate Governance...............................................................................................................................................16<br />
Relations with the capital market...............................................................................................................................17<br />
RESPECT Index...........................................................................................................................................................18<br />
1.2. The Supervisory Board................................................................................................................................................19<br />
1.3. Integrated Management System.................................................................................................................................20<br />
Compliance audit – internal and external verification of the Management Systems....................................................22<br />
Development of the Integrated Management System.................................................................................................23<br />
Process Management.................................................................................................................................................23<br />
1.4. Relations with suppliers..............................................................................................................................................25<br />
1.5. Responsible marketing...............................................................................................................................................26<br />
1.6. Service Standards.......................................................................................................................................................27<br />
2. SOCIETY......................................................................................................................29<br />
<strong>PKN</strong> ORLEN as a responsible citizen................................................................................................................30<br />
2.1. Expectations of our stakeholders................................................................................................................................30<br />
2.2. Risk Management......................................................................................................................................................32<br />
2.3. Participation in public life...........................................................................................................................................33<br />
2.4. Participation in local and European projects ..............................................................................................................35<br />
2.5. National heritage.......................................................................................................................................................35<br />
2.6. Sports........................................................................................................................................................................36<br />
2.7. Charity.......................................................................................................................................................................37<br />
2.8. ORLEN “Safe Roads”.................................................................................................................................................40<br />
3. SAFETY........................................................................................................................41<br />
Safety – the key to development................................................................................................................42<br />
3.1. Safety Policy at <strong>PKN</strong> ORLEN.......................................................................................................................................42<br />
3.2. More than HSE..........................................................................................................................................................43<br />
Product <strong>safety</strong>............................................................................................................................................................43<br />
Employee <strong>safety</strong>.........................................................................................................................................................44<br />
ORLEN Group regions and companies........................................................................................................................46<br />
Safety of service suppliers and outsourced contractors...............................................................................................47<br />
Technology <strong>safety</strong> and process <strong>safety</strong>.........................................................................................................................47<br />
3.3. Fire Protection – In-House Fire Brigade.......................................................................................................................48<br />
3.4. Transport Safety – the SPOT system...........................................................................................................................50<br />
3.5. Disseminating the idea of <strong>safety</strong> – education.............................................................................................................50<br />
2
Corporate responsibility report<br />
4. Environment.................................................................................................................51<br />
<strong>PKN</strong> ORLEN activities and their impact on the climate and environment..............................................52<br />
4.1. Climate changes – challenges ...................................................................................................................................52<br />
4.2. In the heart of Poland ..............................................................................................................................................54<br />
4.3. Water and wastewater management..........................................................................................................................55<br />
4.4. Waste........................................................................................................................................................................56<br />
4.5. Greenhouse gas emissions.........................................................................................................................................58<br />
4.6. Expenditure and investments in environmental protection..........................................................................................61<br />
4.7. Together, we change the world..................................................................................................................................63<br />
4.8. Responsible Care........................................................................................................................................................63<br />
4.9. Green Company.........................................................................................................................................................64<br />
4.10. Responsible production..............................................................................................................................................64<br />
Pro-environmental effects in terms of fuel production................................................................................................67<br />
5. Workplace...................................................................................................................71<br />
Responsible employer...................................................................................................................................72<br />
5.1. Code of Ethics and core values as the foundation of our operations..........................................................................72<br />
5.2. <strong>PKN</strong> ORLEN employee figures.....................................................................................................................................74<br />
5.3. Recruitment...............................................................................................................................................................77<br />
5.4. Professional development...........................................................................................................................................78<br />
5.5. Employee support provided by the employer..............................................................................................................79<br />
5.6. Dialogue with the employees.....................................................................................................................................80<br />
5.7. Responsibility for retired employees...........................................................................................................................81<br />
5.8. Employee Volunteering..............................................................................................................................................82<br />
Awards.....................................................................................................................................................................................84<br />
Certificates...............................................................................................................................................................................85<br />
Useful websites........................................................................................................................................................................86<br />
GRI Index..................................................................................................................................................................................87<br />
Contact us................................................................................................................................................................................88<br />
3
Letter of the President of the Management Board of <strong>PKN</strong> ORLEN SA<br />
Dear Sir or Madam,<br />
the essence of socially responsible business practices<br />
is to maintain a balance between economy, ecology<br />
and ethics, and to reconcile the interests of the Company<br />
and the needs of its environment. The fact that those objectives<br />
are strongly visible in the strategy of our Company<br />
proves that we take corporate responsibility seriously and<br />
perceive it as a commitment towards all our stakeholders.<br />
We are aware that without a wonderful team of workers<br />
and associates, local societies positively disposed towards<br />
our efforts, trusted business partners and loyal customers<br />
<strong>PKN</strong> ORLEN’s success would not be possible. This is why<br />
we create a friendly work environment, promote <strong>safety</strong><br />
on the roads and engage in the development of Płock,<br />
the city where our largest refinery is located.<br />
One of the proofs of our social sensitivity and responsibility<br />
is our 8-year participation in the Global Compact programme<br />
initiated by the UN Secretary-General. According<br />
to the assumptions of the programme, we respect human<br />
rights and the standards of work and environmental<br />
protection, and we support anti-corruption activities.<br />
We improve environmentally-friendly technologies because<br />
we are aware that what we do today influences<br />
our future and the future of the generations to come.<br />
We have been involved in the Responsible Care Programme<br />
for the last fourteen years. During that period,<br />
we have implemented more than a hundred projects,<br />
some of which went far beyond the markets where our<br />
business operates.<br />
To our satisfaction, <strong>PKN</strong> ORLEN has been once again<br />
included in the RESPECT Index, the first Polish index of socially<br />
responsible companies. The inclusion of our company<br />
in the consecutive editions of the index is a reason to be<br />
proud, but also an obligation and motivation to continue<br />
our efforts to promote the local environment. We believe<br />
that for our shareholders, <strong>PKN</strong> ORLEN’s presence in the elite<br />
group of stock market companies is another confirmation<br />
that they were right to invest in a Company that combines<br />
effective business management with responsibility for<br />
the environment in which it operates.<br />
We would like to thank you for your support for our social<br />
activities. We are pleased to note that more and more<br />
Customers are asking for environmentally-friendly fuels<br />
at our fuel stations and order Fairtrade certified coffee at<br />
the Stop Cafe bars. We are also very happy to report that<br />
participants of the VITAY programme share our concern<br />
for children in family-run children’s homes and donate<br />
a portion of their points to them. Another generation<br />
of peregrine falcons that hatched in the nesting boxes<br />
at the premises of the Production Plant in Płock lets<br />
us believe that we have achieved a balance between<br />
the needs of contemporary people and respect for<br />
the nature. There are plenty of other examples that<br />
could be found in <strong>PKN</strong> ORLEN to prove that it is worth<br />
to be a socially responsible company.<br />
The Report you will find enclosed presents last year’s<br />
achievements in the field of corporate responsibility as well<br />
as our future commitments. We hope that the Report<br />
will reassure you that we are a trustworthy Company.<br />
To conclude, I would like to emphasize that as much<br />
as we are satisfied with current achievements, we are<br />
also aware of the huge amount of work that still needs<br />
to be done in a dynamically changing world.<br />
Dariusz Jacek Krawiec<br />
President of the Management Board of <strong>PKN</strong> ORLEN<br />
5
What is worth knowing about <strong>PKN</strong> ORLEN<br />
Our motto<br />
Whenever you need us.<br />
Our mission<br />
Aiming to become the regional leader, we ensure<br />
long-term value creation for our shareholders<br />
by offering our customers products and services<br />
of the highest quality.<br />
All our operations adhere to ’best practice’<br />
principles of corporate governance and social<br />
responsibility, with a focus on care for our employees<br />
and the natural environment.<br />
MAŽEIKIŲ<br />
VILNIUS<br />
HAMBURG<br />
BERLIN<br />
PLOCK<br />
WARSAW<br />
PRAGUE<br />
6
Corporate responsibility report<br />
What is worth knowing about<br />
<strong>PKN</strong> ORLEN?<br />
<strong>PKN</strong> ORLEN is a regional leader of the crude oil industry<br />
and the leading producer and dealer of refinery and petrochemical<br />
products. The main activities of the Company<br />
include the processing of crude oil into petrol, diesel<br />
fuel, furnace oil, aviation fuel, plastics and petrochemical<br />
products.<br />
The Company manages seven refineries in Poland,<br />
the Czech Republic and Lithuania, including refinery<br />
and petrochemical facilities located in Płock, Poland, which<br />
have been ranked among the most modern and efficient<br />
facilities of the kind in Europe.<br />
<strong>PKN</strong> ORLEN has the largest fuel station network in Central<br />
Europe with 2,601 fuel stations in Poland, Germany,<br />
the Czech Republic and Lithuania. The ORLEN retail<br />
network is based on an effective logistics infrastructure<br />
consisting of over- and underground storage facilities<br />
and a network of long-distance pipelines<br />
Refinery<br />
The ORLEN Group refinery segment consists of the refinery<br />
plant in Płock, production assets of Rafineria<br />
Trzebinia and Rafineria Nafty Jedlicze, ORLEN Asfalt,<br />
ORLEN Eko (Poland), the Litvinov, Kralupy and Paramo<br />
refineries (the Czech Republic), and the ORLEN Lietuva<br />
refinery (Lithuania).<br />
Petrochemistry<br />
The ORLEN Group petrochemical segment consists<br />
of selected units of the Petrochemical Production Plant<br />
in Płock and the following companies: Basell <strong>Orlen</strong><br />
Polyolefins and Unipetrol. We are the sole manufacturer<br />
of olefins, polyolefins and most petrochemicals in Poland<br />
and the Czech Republic. The high quality of our products<br />
and our efficient distribution network make us one<br />
of the strongest market players in this part of Europe.<br />
Oil<br />
The ORLEN Group oil segment consists of ORLEN Oil<br />
(Poland) and Paramo (the Czech Republic).<br />
Chemistry<br />
The ORLEN Group chemical segment comprises ANWIL<br />
in Włocławek and its subsidiary, Spolana, based in Neratowice,<br />
the Czech Republic (ANWIL Group).<br />
Upstream<br />
This area is entirely operated by ORLEN Upstream.<br />
The company coordinates, among others, exploration<br />
and production projects at the Baltic Shelf in the Latvian<br />
Economic Zone, in the Lublin region and in the Polish<br />
Lowlands as well as projects aimed at the exploration,<br />
recognition and documentation of unconventional shale<br />
gas resources.<br />
Kambr (Cambrian) Project<br />
THE BALTIC SEA<br />
POLAND<br />
Sierakow Project<br />
LITHUANIA<br />
Karbon<br />
(Carboniferous) Project<br />
7
What is worth knowing about <strong>PKN</strong> ORLEN<br />
Power engineering<br />
We have started developing a new segment. We have<br />
established a Power Engineering Office in order to coordinate<br />
all activities related to power engineering within<br />
the ORLEN Group.<br />
Our major brands<br />
Wholesale<br />
ORLEN Group deals in wholesale of fuel and non-fuel<br />
products in Poland, the Czech Republic, Germany, Slovakia<br />
and Lithuania. The Group’s wholesale segment<br />
consists of <strong>PKN</strong> ORLEN wholesale units, five Regional<br />
Market Operators, Petrolot, ORLEN Gaz (Poland), Uniraf<br />
Slovakia (Slovakia), Unipetrol BUI (the Czech Republic),<br />
ORLEN Lietuva (Lithuania, Ukraine, Poland, sea sales).<br />
ORLEN<br />
Retail<br />
ORLEN Group offers its products for retail sale in Poland,<br />
Germany, the Czech Republic and Lithuania.<br />
The entities responsible for managing commercial operations<br />
in the respective markets are <strong>PKN</strong> ORLEN, ORLEN<br />
Deutschland, Benzina and Ventus Nafta.<br />
Verva<br />
Logistics<br />
The ORLEN Group’s infrastructure, which ensures a smooth<br />
and effective flow of raw materials and ready-made products,<br />
consists of Fuel Terminals, land and offshore transshipment<br />
facilities, a network of industrial raw material<br />
and product pipelines as well as road and rail transport.<br />
FLOTA<br />
All products are available both to wholesale and retail<br />
customers. We do our best to make sure that our customers<br />
and beneficiaries are satisfied with our products<br />
and services.<br />
Club Vitay<br />
Club Super Vitay<br />
8
Corporate responsibility report<br />
About the Report<br />
Stop Cafe<br />
This is already the seventh edition of <strong>PKN</strong> ORLEN Corporate<br />
Responsibility Report, and the third one developed<br />
in accordance with B-level GRI G3.1 guidelines. This<br />
tells the reader how advanced the Company is in terms<br />
of the number of indicators and the possibilities for further<br />
extension of reporting in the following years. It also<br />
corresponds to the level of incorporation of the GRI G3.1<br />
Guidelines and GRI Reporting Framework.<br />
Ekoterm Plus<br />
BLISKA<br />
For more information on application levels and the GRI<br />
G3.1 Guidelines, visit:<br />
http://www.globalreporting.org.<br />
This Report presents the most important events in <strong>PKN</strong><br />
ORLEN in 2010. Our regular readers will note that this time<br />
we put more focus on activities in the field of corporate<br />
responsibility of the ORLEN Capital Group.<br />
For more information, visit:<br />
The 2009 Corporate Responsibility Report, pp. 14 –15<br />
Among the 117 Capital Group companies, 80 are subsidiaries,<br />
of which 36 are direct and the other 44 indirect.<br />
At the end of 2010, the ORLEN Group included 4 joint<br />
ventures, 2 of which were associated with the Group<br />
directly and 2 indirectly.<br />
9
What is worth knowing about <strong>PKN</strong> ORLEN<br />
The table presents the total number of companies associated<br />
with <strong>PKN</strong> ORLEN.<br />
Year 2008 2009 2010<br />
Total number of ORLEN<br />
Capital Group companies<br />
106<br />
101<br />
95<br />
Number of directly<br />
associated companies<br />
37<br />
35<br />
36<br />
Number of indirectly<br />
associated companies<br />
69<br />
66<br />
59<br />
The 2010 Report contains a revised employment<br />
level as on 31 December 2009, due to the fact that<br />
the 2009 Report quoted the total number of persons<br />
employed in 2009 instead of the number of employees<br />
as on 31 December.<br />
The Report as a whole was not verified by an external<br />
auditor.<br />
Compliance<br />
with GRI 2002 C C+ B B+ A A+<br />
Mandatory<br />
Optional<br />
Internal<br />
declaration<br />
Third party<br />
verification<br />
External verification<br />
of the report<br />
External verification<br />
of the report<br />
External verification<br />
of the report<br />
10
Corporate responsibility report<br />
Irena Pichola<br />
Leader of the Sustainable Development<br />
and Corporate Responsibility Team of PwC Polska Sp. z o.o.<br />
What are the challenges facing companies<br />
that want to report their social involvement<br />
in a regular, accurate and attractive way?<br />
<strong>PKN</strong> ORLEN has been actively involved in corporate<br />
social responsibility for many years, and is one<br />
of the leaders of social and environmental<br />
reporting in Poland. Being one of the leading<br />
Socially Responsible Companies, listed<br />
in the RESPECT Index, ORLEN proves that corporate<br />
responsibility is a way of managing business which,<br />
in this particular company, is reflected<br />
by its day-to-day business operations.<br />
Judging by the consecutive CSR reports, which<br />
<strong>PKN</strong> ORLEN has been issuing for almost ten years<br />
now, the company is dynamically developing not<br />
only its business, but also its strategic approach<br />
to corporate responsibility for the internal<br />
and external environment.<br />
When a company has been reporting its data<br />
for so many years in a row, it inevitably faces<br />
the challenge of presenting the data in an ever<br />
more innovative and attractive manner,<br />
at the same time making sure that each<br />
report is comparable to the previous editions.<br />
The 2010 CSR Report, which is once again<br />
an interesting and comprehensive presentation<br />
of the company’s objectives and achievements<br />
in the field of responsible business management,<br />
shows that <strong>PKN</strong> ORLEN is not only aware<br />
of the challenges, but also knows how<br />
to tackle them.<br />
11
What is worth knowing about <strong>PKN</strong> ORLEN<br />
Selected financial data (in ‘000 PLN)<br />
2008 2009 2010<br />
I Total sales revenue 57,224,864 47,481,278 62,215,581<br />
II Operating income 636,354 790,306 2,756,827<br />
III Profit/(loss) before tax (2,063,057) 1,907,812 2,826,324<br />
IV Net profit/(loss) (1,570,947) 1,635,885 2,357,127<br />
V Net operating cash flow 1,292,773 2,806,414 3,895,427<br />
VI Net investing cash flow (1,993,857) (1,615,776) (2,568,977)<br />
VII Net financing cash flow 975,898 335,897 (1,881,372)<br />
VIII Net increase/(decrease) in cash 274,814 1,526,535 (554,922)<br />
IX Net profit/(loss) and diluted profit/(loss) per ordinary share (in PLN) (3.67) 3.82 5.51<br />
as on<br />
31 December 2008<br />
as on<br />
31 December 2009<br />
as on<br />
31 December 2010<br />
X Fixed assets 20,427,025 23,006,696 24,663,871<br />
XI Current assets 11,572,579 14,009,655 15,230,187<br />
XII Total assets 31,999,604 37,016,351 39,894,058<br />
XIII Long-term liabilities 1,216,318 10,368,702 8,350,861<br />
XIV Short-term liabilities 15,401,410 9,514,751 12,004,148<br />
XV Equ ty 15,381,876 17,132,898 19,539,049<br />
XVI Share cap tal 1,057,635 1,057,635 1,057,635<br />
XVII Number of shares 427,709,061 427,709,061 427,709,061<br />
XVIII Book value and diluted book value per share (in PLN) 35.96 40.06 45.68<br />
Throughput and output of the Płock Refinery (in ‘000 tonnes)<br />
Crude oil processed 14,218 14,526 14,452<br />
Petrol 2,800 3,055 2,735<br />
Diesel fuel 5,078 5,330 5,359<br />
Ekoterm 840 790 699<br />
Aviation fuel JET A-1 418 245 394<br />
LPG 223 212 241<br />
Environmental impact<br />
Water consumption from the Vistula (in m 3 ) 22,991,953 22,448,565 22,785,313<br />
Sewage discharge to the Vistula (in m 3 ) 12,381,024 11,351,599 12,757,779<br />
COD load in sewage discharged to the Vistula (kg/y) 676,524 726,812 889,310<br />
Total emissions of all pollutants (in Mg), 6,189,145.40 6,158,012.71 6,385,884.25<br />
including:<br />
Sulphur dioxide 20,444.59 20,975.23 22,381.42<br />
Nitrogen monoxide (as per n trogen dioxide) 6,821.48 7,124.27 8,460.74<br />
Carbon monoxide 812.16 1,010.87 1,309.07<br />
Total hydrocarbons 1,384.01 1,238.12 1,412.07<br />
Fuel combustion dust 453.34 399.75 509.65<br />
Carbon dioxide 6,158,959.11 6,126,894.42 6,351,440.32<br />
Other pollutants 270.71 370.05 370.99<br />
Responsible production<br />
Environmental charges (in PLN), 16,572,326.63 17,226,918.00 19,644,093.00<br />
including:<br />
for emission (including transport) 14,784,628.49 15,461,484.00 17,679,435.00<br />
for water consumption 1,085,832.47 1,082,459.00 1,146,012.00<br />
for sewage discharge 701,865.67 682,975.00 818,646.00<br />
Investment expend tures for environmental protection (in PLN) 259,126,877.37 191,757,998.86 148,118,479.00<br />
Our employees<br />
Employment as on 31 December 4,725 4,482 4,513<br />
Accidents at work (including major) 26 23 28<br />
Absence from work following accidents at work 952 996 789<br />
1)<br />
Selected financial data concerns <strong>PKN</strong> ORLEN and applies to the year that ended on 31 December.<br />
2)<br />
COD – chemical oxygen demand.<br />
3)<br />
The amount includes charges for CO 2<br />
emission allowance allocation.<br />
12
1.<br />
MARKET<br />
1.1.<br />
1.2.<br />
1.3.<br />
1.4.<br />
1.5.<br />
1.6.<br />
<strong>PKN</strong> ORLEN – a brand<br />
open to dialogue<br />
<strong>PKN</strong> ORLEN on the Capital Market<br />
The Supervisory Board<br />
Integrated Management System<br />
Relations with suppliers<br />
Responsible marketing<br />
Service Standards
<strong>PKN</strong> ORLEN – a brand open to dialogue<br />
MARKET<br />
<strong>PKN</strong> ORLEN<br />
– a brand open to dialogue<br />
Leszek Kurnicki<br />
Executive Director,<br />
Marketing and Corporate Communication<br />
New business ethics requires that companies be open<br />
and attentive to the environment. Such an attitude<br />
is a very important proof of the company’s genuine involvement<br />
in implementing the CSR concept, and its success<br />
to a large extent depends on the quality and effec tiveness<br />
of communication with the environment.<br />
Long-term relations with stakeholders should be based<br />
on dialogue and mutual understanding of each other’s<br />
needs and expectations. This is the way to turn responsibility<br />
into a natural element of the mechanism creating<br />
the company’s goodwill.<br />
Each of the large groups of <strong>PKN</strong> ORLEN’s stakeholders<br />
requires an individual approach. Let me explain this<br />
on the example of corporate communication. We have<br />
developed time-tested methods of communication<br />
and dialogue with our employees. Our internal bi-weekly<br />
newsletter “ORLEN ekspres” has been a popular medium<br />
of communication for many years. The programmes<br />
broadcast by ORLEN Studio, the corporate radio station,<br />
have also found an eager audience among our<br />
employees. These traditional media are accompanied<br />
by the dynamically developing intranet.<br />
In 2010, we conducted an innovative study in order<br />
to better understand the expectations of our stakeholders.<br />
We dedicated the study entirely to the CSR<br />
issues. We hope that its consecutive editions will help<br />
us improve the quality of our contacts with the environment<br />
and make the dialogue easier. This objective<br />
is also to be served by advancing the methods of communication.<br />
And indeed, we communicate proactively by means<br />
of a broad variety of information channels, ranging<br />
from the corporate website to other channels dedicated<br />
to the respective areas of <strong>PKN</strong> ORLEN activities. Our<br />
stakeholders have also noted our presence in new<br />
media. Setting up the VERVA Street Racing Facebook<br />
page in the spring of 2011 proved a great success.<br />
The actions taken on the fan page resulted in an almost<br />
500% increase in fan activity.<br />
These results entitle us to believe that we have taken<br />
the right direction towards improved dialogue with our<br />
stakeholders, incorporating a broad range of means<br />
and methods of communication. We continue applying<br />
time-tested methods, but at the same time we are<br />
aware of and react to the changing requirements<br />
of our environment.<br />
14
Corporate responsibility report<br />
Stakeholder map<br />
UNIVERSITIES<br />
EMPLOYEES<br />
CUSTOMERS<br />
SHAREHOLDERS<br />
NGOS<br />
CAPITAL GROUP COMPANIES<br />
THE MEDIA<br />
LOCAL SOCIETY<br />
BUSINESS PARTNERS<br />
INDUSTRIAL AND CONSUMER ORGANISATIONS<br />
COMPETITION<br />
SUPPLIERS<br />
PUBLIC ADMINISTRATION AND LOCAL AUTORITIES<br />
AGENTS<br />
15
<strong>PKN</strong> ORLEN – a brand open to dialogue<br />
1.1. <strong>PKN</strong> ORLEN on the Capital Market<br />
<strong>PKN</strong> ORLEN shares are listed on the Warsaw Stock<br />
Exchange (WSE) and in the form of Global Depository<br />
Receipts (GDRs) on the London Stock Exchange. Depository<br />
receipts are also traded in the US OTC market.<br />
For more information, visit:<br />
The 2009 Corporate Responsibility Report, p. 18<br />
In 2010, there were two changes in the structure of holders<br />
of more than 5% of the Company’s share capital.<br />
First, on 5 February 2010, Aviva Otwarty Fundusz Emerytalny<br />
Aviva BZ WBK acquired 5.08% of <strong>PKN</strong> ORLEN<br />
share capital. Later on that year, on 23 November 2010,<br />
ING Otwarty Fundusz Emerytalny notified the Company<br />
that it reduced its share in the total number of votes<br />
at <strong>PKN</strong> ORLEN General Meeting to less than 5%. ING<br />
Otwarty Fundusz Emerytalny was a holder of more than<br />
5% of the Company share capital since 18 February 2009.<br />
Corporate Governance<br />
In 2010, <strong>PKN</strong> ORLEN applied all the principles of corporate<br />
governance, established both in the previous<br />
and in the updated version of the Code of Best Practice<br />
for WSE Listed Companies. In mid 2010, the Warsaw<br />
Stock Exchange revised the Code of Best Practice for<br />
WSE Listed Companies, adjusting it to the changes<br />
in legislation, international guidelines and stakeholders’<br />
expectations. The Company applies both the mandatory<br />
and the optional recommendations defined in the Code.<br />
<strong>PKN</strong> ORLEN shareholding structure as on 31 December 2010<br />
27,52%<br />
State Treasury<br />
67,40%<br />
Other**<br />
5,08%<br />
Aviva OFE*<br />
* according to information submitted to the Company on 9 February 2010.<br />
**On 23 November 2010, the Company was notified that on 18 November 2010 ING OFE decreased its share to less than 5%.<br />
16
Corporate responsibility report<br />
<strong>PKN</strong> ORLEN implements various measures to streamline<br />
communication with the environment and ensure equal<br />
access to information to anyone who might be interested.<br />
In order to reach a broad audience, we apply both<br />
traditional and modern tools of communication with<br />
representatives of the capital market. We organise live<br />
online transmissions (with simultaneous interpretation<br />
into English) of press conferences organised after each<br />
important event in the Company, such as publication<br />
of quarterly results, strategy announcements or General<br />
Meetings of <strong>PKN</strong> ORLEN Shareholders. Video recordings<br />
of conferences are available on the Company website.<br />
The investor relations section of the www.orlen.pl website<br />
has a bookmark related to the Code of Best Practice for<br />
WSE Listed Companies. The bookmark offers downloadable<br />
annual reports on implementation of the Best Practice<br />
in the Company as well as the Code of Best Practice for<br />
WSE Listed Companies. It also features short information<br />
about the Best Practice applied by the Company<br />
and the rules for selecting an auditor of the Company’s<br />
financial statements.<br />
The corporate website offers information on dates of General<br />
Meetings, draft resolutions, as well as a complete<br />
set of documents presented to shareholders at General<br />
Meetings. Moreover, the company has a special online<br />
contact form for its shareholders, which is intended for<br />
communication in matters concerning General Meetings.<br />
Relations with the capital market<br />
<strong>PKN</strong> ORLEN has been regularly increasing the standards<br />
of communication with the capital market in order<br />
to guarantee access to reliable and exhaustive information<br />
about the Company’s operations to its shareholders,<br />
investors and other stakeholders. The Management<br />
Board pays particular attention to the relationship with<br />
this group of stakeholders, as they have a major impact<br />
on the Company’s valuation and image in the global<br />
market. For this reason, the company publishes official<br />
stock exchange communications in Polish and in English<br />
Dariusz Grębosz<br />
Director of the Investor Relations Office<br />
For many years, we have been working hard<br />
to make sure that <strong>PKN</strong> ORLEN is perceived<br />
as a healthy body of contemporary business,<br />
where a lot of attention is focused on the right<br />
relationship with shareholders and investors as well<br />
as other stakeholders. Where the principles<br />
of Corporate Governance are a standard<br />
rather than an obligation.<br />
We are constantly improving the process<br />
of communicating the environment,<br />
e.g. by incorporating new ICT technologies.<br />
We establish internal procedures to ensure<br />
the <strong>safety</strong>, reliability and up-to-dateness<br />
of information communicated to the public.<br />
Continuous monitoring of the information needs<br />
of our shareholders and investors, who,<br />
as we are well aware, have a major say<br />
in the market valuation of our company,<br />
is an essential element of our communication.<br />
The prestigious international IR Magazine award,<br />
which we have once again received for the best<br />
investor relations in Poland, as well as our<br />
inclusion in the RESPECT Index have reassured<br />
us that we have chosen the right direction.<br />
17
<strong>PKN</strong> ORLEN – a brand open to dialogue<br />
and has a bilingual website. The corporate website offers<br />
an extensive collection of information and tools presenting<br />
the details of the Company’s strategy and financial stance.<br />
<strong>PKN</strong> ORLEN regularly and actively participates in meetings<br />
with investors and analysts both in Poland and abroad.<br />
The Company attends conferences, individual and group<br />
meetings, and teleconferences with representatives of capital<br />
markets, observers and journalists. The ways of communication<br />
with the capital market include so-called<br />
roadshows – a series of meetings with representatives<br />
of foreign financial institutions and investors operating<br />
in the global capital market.<br />
Every now and again the Company organises site visits<br />
for its investors and analysts. Site visits are a specially<br />
designed series of meetings at the Company’s premises<br />
with its managerial staff, combined with visits to selected<br />
operating assets, such as production units, warehouse<br />
facilities or fuel stations.<br />
The meetings with capital market players are an opportunity<br />
to find out how they perceive the Company<br />
and what their expectations regarding the types and channels<br />
of communicating information are.<br />
Our efforts to communicate with capital market players<br />
have not gone unnoticed. In 2010, we received a number<br />
or awards in the area of investor relations.<br />
RESPECT Index<br />
<strong>PKN</strong> ORLEN shares have been listed in the RESPECT Index<br />
of socially responsible companies since 19 November<br />
2009. The Company maintained this elite status after<br />
the 2010 update of the Index.<br />
The RESPECT Index project followed certain measures<br />
taken by the WSE in 2009 which have resulted in the first<br />
index of socially responsible companies on the Warsaw<br />
Stock Exchange. The aim of the index is to promote<br />
the highest standards of responsible management.<br />
Companies included in the index have been selected<br />
on the basis of an extensive analysis of many aspects<br />
of their business. Only the companies with highest<br />
liquidity may qualify. The WSE, accompanied by the Association<br />
of Stock Exchange Issuers, take into account<br />
the companies’ corporate governance and communication<br />
practice. During the final stage of the selection process,<br />
a comprehensive questionnaire and audit are conducted<br />
in order to review the measures taken by companies<br />
in the field of sustainable development, corporate governance<br />
and functioning on the Stock Exchange as well<br />
as management systems and social and environmental<br />
projects implemented by the company, and its attitude<br />
towards various groups of stakeholders. It is the intention<br />
of the WSE to review the Index every six months.<br />
Inclusion in the index motivates <strong>PKN</strong> ORLEN to further<br />
intensify their efforts to recognize and satisfy the requirements<br />
of shareholders and other social groups related<br />
to the Company.<br />
r COMMITMENT<br />
more i format<br />
<strong>PKN</strong> ORLEN will take all reasonable efforts to remain<br />
in the index in the years to come.<br />
For more information, visit:<br />
www.odpowiedzialni.gpw.pl<br />
18
Corporate responsibility report<br />
1.2. The Supervisory Board<br />
The <strong>PKN</strong> ORLEN Supervisory Board continuously super vises<br />
the Company’s operations in all areas of business. The Supervisory<br />
Board has the powers established in the Polish<br />
Code of Commercial Partnerships and Companies<br />
and the Company’s Articles of Association. Its members<br />
are appointed and dismissed by the General Meeting<br />
of Shareholders in accordance with the Company’s<br />
Articles of Association. The Supervisory Board consists<br />
of 6 to 9 members appointed for a joint term of office.<br />
Individual members of the Supervisory Board,<br />
and the whole Supervisory Board, can be recalled any<br />
time prior to the end of the term of office. The Chair<br />
of the Supervisory Board is appointed and dismissed<br />
by the General Meeting, while the Vice-Chair and the Secretary<br />
are elected by the Super visory Board from among<br />
the rest of its members. The State Treasury is entitled<br />
to appoint and dismiss one member of the Supervisory<br />
Board. This privilege will expire if the State Treasury sells<br />
all the shares held in the Company.<br />
At least two Supervisory Board members must be independent<br />
from the Company and entities closely associated<br />
with the Company. In order to be appointed<br />
to the Supervisory Board, independent members submit<br />
to the Company a written statement confirming that they<br />
meet the criteria established in § 8 (5) of the Company’s<br />
Articles of Association. The Company informs the shareholders<br />
about the current number of independent members<br />
of the Supervisory Board via its website. If the number<br />
of independent members of the Supervisory Board<br />
is smaller than two, the Company’s Management Board<br />
is obliged to immediately convene the General Meeting<br />
of Shareholders in order to change the composition<br />
of the Supervisory Board. Until any changes are made,<br />
the Supervisory Board continues to work in its current<br />
composition. As on December 31, 2010, the <strong>PKN</strong> ORLEN<br />
Supervisory Board had 4 independent members.<br />
The Supervisory Board has the following standing committees:<br />
Audit Committee, Strategy and Development<br />
Committee, Appointment and Remuneration Committee<br />
and Corporate Governance Committee. 8 members<br />
of those committees are male and 1 is female.<br />
In 2010, the work of the Supervisory Board was managed<br />
by the Chair.<br />
The Supervisory Board is authorised to review all<br />
of the Company’s documents, order the Management<br />
Board and employees to provide reports and explanations,<br />
and inspect the Company’s assets. Moreover, the Supervisory<br />
Board may request the Management Board to prepare<br />
expert opinion or appraisal, or to engage an advisor.<br />
In 2010, the <strong>PKN</strong> ORLEN Supervisory Board held 11 recorded<br />
meetings and adopted 95 resolutions. Besides,<br />
members of the Supervisory Board attended 12 recor ded<br />
meetings of the Audit Committee, 1 meeting of the Strategy<br />
and Development Committee and 4 meetings<br />
of the Corporate Governance Committee, and 4 meetings<br />
of the Appointment and Remuneration Committee,<br />
of which 1 meeting was held jointly with the Audit<br />
Committee.<br />
In 2010, the <strong>PKN</strong> ORLEN Supervisory Board had 8 male<br />
members and 1 female member. The age structure was<br />
as follows:<br />
• 30–50 years – 6 persons;<br />
• over 50 years – 3 persons.<br />
In accordance with the Company’s Articles of Association,<br />
the policy of remunerating members of the Supervisory<br />
Board, is determined by the General Meeting. In 2010,<br />
members of the Supervisory Board were remunerated<br />
pursuant to the Resolution of the Extraordinary General<br />
Meeting of Shareholders of 10 January 2001 on changes<br />
in the policy of remunerating members of the Supervisory<br />
19
<strong>PKN</strong> ORLEN – a brand open to dialogue<br />
Board. Monthly remuneration constitutes a certain multiple<br />
of the average monthly salary in the corporate<br />
sector, excluding profit bonus payments in the fourth<br />
quarter of the previous year, announced by the President<br />
of the Polish Central Statistical Office.<br />
in Supervisory Boards of subordinate, jointly controlled<br />
and associated companies of the ORLEN Group. The only<br />
exception was UNIPETROL a.s., but in this case remuneration<br />
for membership in the Supervisory Board was<br />
donated to the ORLEN – Dar Serca Foundation.<br />
The Supervisory Board is authorized to represent the Company<br />
in contract negotiations with the Management<br />
Board members, including with respect to the terms<br />
and conditions of employment and remuneration. There<br />
is an incentive scheme for the members of the Management<br />
Board. The amount of annual bonus depends<br />
on the Company’s operating results and achievement<br />
of individual tasks defined by the Supervisory Board for<br />
individual members of the Management Board.<br />
In order to avoid a conflict of interests in the ORLEN<br />
Group, the Company applies the provisions of the Polish<br />
Code of Commercial Partnerships and Companies, provisions<br />
of the Constitution of the Supervisory Board, as well<br />
as the Code of Best Practice for WSE Listed Companies.<br />
In accordance with the rule no. 6 of the 1st Section<br />
of the Code of Best Practice for WSE Listed Companies<br />
– “A member of the Supervisory Board should have relevant<br />
knowledge and experience and be able to devote<br />
the time required to properly perform his/her duties.<br />
A member of the Supervisory Board should undertake<br />
relevant For mo e measures information to ensure visit: that the Supervisory Board<br />
receives information on any significant issues concerning<br />
the Company”.<br />
1.3. Integrated Management System<br />
<strong>PKN</strong> ORLEN has implemented an Integrated Management<br />
System (IMS). The system guarantees professional customer<br />
service and compliance with the highest standards<br />
in terms of HSE, data <strong>safety</strong> and food <strong>safety</strong>.<br />
The IMS system consists of the following systems:<br />
• Quality Management System according to PN-EN ISO<br />
9001:2009;<br />
• Quality Management System according to AQAP<br />
2120:2009 (supplies to NATO);<br />
• Environmental Management System according to PN-<br />
EN ISO 14001:2005;<br />
• Occupational Health and Safety Management System<br />
according to PN-N-18001:2004;<br />
• Data Safety Management System according to PN<br />
ISO/IEC 27001:2007;<br />
• Food Safety Management System HACCP according<br />
to Codex Alimentarius;<br />
In 2010, members of the <strong>PKN</strong> ORLEN Management<br />
Board did not receive remuneration for their membership<br />
For more information, visit:<br />
The 2009 Corporate Responsibility Report, pp. 24 – 26<br />
and For more www.orlen.pl i orma<br />
20
Corporate responsibility report<br />
Integrated Management System Policy<br />
Polski Koncern Naftowy ORLEN S.A. declares delivery of products and services of guaranteed and increasing quality to its Customers<br />
and Partners, while at the same time striving to achieve maximum possible environmental neutrality, high occupational health and<br />
<strong>safety</strong> standards and a high level of information security.<br />
Our objective being to maintain the leader position on the Polish and international market and the reputation of a professional<br />
and trustworthy Company that observes the principles of corporate governance and corporate social responsibility in all its operations,<br />
we undertake to:<br />
1. Constantly monitor the current and prospective development directions in the field of operational and environmental properties<br />
of our products in order to take measures taking into account the current and future needs of the Customers;<br />
2. Increase the economic performance of processes by ensuring continuous technological development, which enables us to manufacture<br />
products that meet the quality requirements of international standards.<br />
3. Achieve full compliance with the law and standards in the field of pollution prevention, environmental protection, <strong>safety</strong> at work<br />
and health protection while at the same time observing the principles of sustainable development.<br />
4. Ensure prevention of major industrial and radiological failures, monitoring of emissions to the environment, their spread in the air,<br />
soil, earth and underground waters, and their impact on human life and health.<br />
5. Prevent climate changes by effective greenhouse gas emission management.<br />
6. Constantly improve methods of hazard recognition and prevention of incidents at work and occupational diseases, and implement<br />
ergonomic solutions that reduce inconveniences of a workplace and occupational risks.<br />
7. Cooperate only with those contractors and suppliers that have the qualifications required by the Company and meet the quality,<br />
HSE, fire protection, radiological protection, process <strong>safety</strong> and information security standards determined by the Company.<br />
8. Enable all the interested parties to access information concerning the Company’s environmental impact and measures taken<br />
to improve <strong>safety</strong> of the working environment and health protection – continuation of the Responsible Care Programme.<br />
9. Constantly improve corporate culture by increasing the skills and environmental awareness of the employees and by promoting<br />
involvement in measures aimed at satisfying Customer expectations, protecting the environment and improving the working<br />
conditions.<br />
10. Take measures aimed at ensuring adequate protection of information in each of the Company’s information processing systems,<br />
including in ICT systems and networks and in paper document circulation, based on the best applicable standards and practices<br />
in the field of information security.<br />
11. Comply with the requirements of the generally applicable law in the field of processing of groups of information protected due<br />
to its confidentiality, in particular in the field of protecting classified information, personal data and information associated with<br />
public trading in securities.<br />
12. Constantly improve protection of information constituting business secret within the meaning of the Fair Trading Act.<br />
13. Ensure the required level of <strong>safety</strong> of the other groups of information protected due to its confidentiality, classified and processed<br />
in the Company.<br />
14. Ensure protection of entrusted information being the property of persons or entities that cooperate with the Company, where<br />
required by relevant contractual information protection clauses.<br />
15. Identify, assess, eliminate and supervise potential hazards relevant to the health <strong>safety</strong> of food products.<br />
16. Take all measures in the field of production, storage and distribution of finished food products, taking into account the principles<br />
of the Good Manufacturing Practice and the Good Hygienic Practice, and the requirements of the Codex Alimentarius.<br />
17. Monitor Critical Control Points and apply corrective measures at each stage of the process of manufacturing of and trading in food,<br />
to guarantee detection and removal of irregularities.<br />
18. Constantly improve the Integrated Management System by ensuring resources that make it possible, among others, to increase<br />
the performance of processes and to take effective corrective and preventive actions.<br />
These tasks define the Company’s strategy, which translates into the current and future development programmes and other measures<br />
undertaken on the basis of the Integrated Management System, implemented in compliance with the requirements of ISO 9001 and<br />
AQAP 2120 – Quality Management System, ISO 14001 – Environmental Management System, PN-N-18001 – Occupational Health<br />
and Safety Management System, PN-ISO/IEC 27001 – Information Security Management System and Codex Alimentarius – Food<br />
Safety Management System. We will continue measures aimed at harmonising the principles of the functioning of the Integrated<br />
Management System in the Company.<br />
Płock, on 20 April 2010<br />
President of the Management Board,<br />
Chief Executive Officer<br />
21
<strong>PKN</strong> ORLEN – a brand open to dialogue<br />
Compliance audit – internal and external verification<br />
of the Management Systems<br />
In 2010, the IMS was audited by Bureau Veritas Certification.<br />
Non-compliances were not reported and <strong>PKN</strong><br />
ORLEN’s IMS received a certificate of compliance with<br />
the following four standards: PN-EN ISO 9001:2009,<br />
PN-EN ISO 14001:2005, PN-N-18001:2004 and PN-ISO/<br />
IEC 27001:2007.<br />
Paweł Kukowski<br />
Head of the Management Systems Department<br />
With the Integrated Management System,<br />
we are able to supervise and improve processes<br />
across all the areas of the Company operations,<br />
which translates into their higher effectiveness<br />
and efficiency. The management systems help<br />
us better adjust our products and services<br />
to customer expectations.<br />
Successful implementation of the system<br />
is supported by an elaborate training system.<br />
In 2010, more than 300 persons participated<br />
in 9 training sessions. The purpose was to raise their<br />
awareness of the system. Multimedia training<br />
sessions were organised, including workshops<br />
for managers and internal auditors. E-learning<br />
training for all employees is being developed.<br />
The IMS enables us to deliver top quality products<br />
and at the same time take care of the environment,<br />
employee <strong>safety</strong> and the <strong>safety</strong> of the data<br />
provided by our customers and contractors.<br />
220<br />
200<br />
180<br />
160<br />
The Integrated Management System was once again<br />
re-cer tified for compliance with AQAP in July 2010. The audit<br />
confirmed that the Company complies with relevant<br />
procedures and requirements applicable to deliveries<br />
to the army.<br />
In 2010, the IMS was audited 804 times by internal auditors.<br />
13 audits concerned the HSE Management System<br />
(HMS) in the Fuel Terminal area and 26 were autonomous<br />
internal audits of the HSEMS in Płock. The audits<br />
confirmed that the IMS is functioning in compliance<br />
with relevant standards, but at the same time suggested<br />
possible improvements.<br />
Non-compliances reported during internal audits<br />
in 2009–2010<br />
185<br />
205<br />
140<br />
120<br />
2009 2010<br />
22
Corporate responsibility report<br />
The 10% increase in the number of non-compliances<br />
reported in 2010 as a result of internal audits was interpreted<br />
as a challenge, and consequently a number<br />
of measures were taken in order to eliminate reasons<br />
of non-compliance.<br />
The compliance of operations conducted by suppliers<br />
and contractors was also audited in 2010. The 9 audits<br />
did not report any non-compliance.<br />
COMMITMENT<br />
To implement solutions which improve the quality<br />
of our products, higher <strong>safety</strong> and neutral impact<br />
on the environment.<br />
Process Management<br />
In March 2010, the Process Book, a supplement<br />
to the Inte grated Management System Book, was approved.<br />
The Process Book contains maps and charts of processes<br />
identified within the Quality Management System.<br />
The Book is being constantly improved. New processes<br />
are identified and described, and their monitoring via<br />
a system of approved process efficiency indicators is developed.<br />
In order to optimise those efforts, the Company<br />
purchased and is implementing an electronic application<br />
that supports process management (PM). Efficient<br />
management and improvement of existing processes<br />
based on actual and measurable data is possible through<br />
monitoring and measuring, comparing to the values<br />
of approved and planned criteria, and analysing any<br />
changes and differences.<br />
As a result of process identification, a process owner<br />
Development of the Integrated Management<br />
System<br />
In 2010, the Data Safety Management System was reconstructed<br />
as part of a broader project to develop the organisation<br />
and adopt our operations to the changing internal<br />
and external context. Requirements of the PN ISO/IEC<br />
27001:2007 standard were implemented and a relevant<br />
certificate of compliance was received.<br />
is associated with each process. The effect was optimisation<br />
of the decision-making process and process<br />
supervision. Another advantage of PM is that it raises<br />
the awareness of employees involved in process implementation<br />
and their impact on the work of other employees,<br />
improves transparency of operations and optimises information<br />
flow between respective organisational units<br />
involved in specific operations.<br />
The HSE Management System extended its area of operation:<br />
the requirements associated with that system<br />
were implemented at all fuel terminals. This was a step<br />
towards adding compliance with the PN-N-18001:2004<br />
standard to the current portfolio of certificates.<br />
In order to improve and develop its IMS, <strong>PKN</strong> ORLEN<br />
purchases and implements electronic applications that<br />
support process management, auditing, circulation of noncompliance<br />
related documentation, registering of potential<br />
hazards and assessment of professional risk.<br />
23
<strong>PKN</strong> ORLEN – a brand open to dialogue<br />
Moreover, the areas of environmental protection, health,<br />
data <strong>safety</strong> and food <strong>safety</strong> have their risk assessment<br />
conducted on an ongoing basis. This indirectly translates<br />
into implementation of innovative solutions that serve<br />
as a basis for continuous development and improvement<br />
of our customer offering.<br />
List of selected ORLEN Capital Group Companies and their Management System certificates<br />
Company ISO 9001 ISO 14001<br />
PN-N-18001<br />
/ OHSAS<br />
18001<br />
ISO 27001<br />
IMS<br />
Anwil SA yes yes - - yes<br />
Basell <strong>Orlen</strong> Polyolefins Sp. z o.o. yes yes yes - yes<br />
ORLEN Administracja Sp. z o.o. yes - - - -<br />
ORLEN Asfalt Sp. z o.o. yes yes yes - yes<br />
ORLEN Automatyka Sp. z o.o. yes yes yes - yes<br />
ORLEN Centrum Serwisowe Sp. z o.o. yes yes yes - yes<br />
ORLEN Eko Sp. z o.o. yes yes yes - yes<br />
ORLEN GAZ Sp. z o.o. - - - - -<br />
ORLEN KolTrans Sp. z o o. yes - - - -<br />
ORLEN Księgowość Sp. z o.o. - - - - -<br />
ORLEN Laboratorium Sp. z o.o. - yes yes - yes<br />
ORLEN Ochrona Sp. z o.o. yes - - - -<br />
ORLEN OIL Sp. z o.o. yes yes - - yes<br />
ORLEN PetroCentrum Sp. z o.o. - - - - -<br />
ORLEN PetroTank Sp. z o o. - - - - -<br />
ORLEN Prewencja Sp. z o.o. yes yes yes - yes<br />
ORLEN Transport SA - - - - -<br />
ORLEN Wir Sp. z o. o. yes yes yes - yes<br />
Rafineria Nafty Jedlicze SA yes - - - -<br />
Rafineria Trzebinia SA yes - - - -<br />
24
Corporate responsibility report<br />
1.4. Relations with suppliers<br />
Suppliers are an important group of our stakeholders.<br />
It is very important for us what products we buy and from<br />
whom. We cooperate with our suppliers on a regular basis.<br />
The Company’s cooperation with suppliers is governed<br />
by our purchase policy. One of the key policy documents<br />
is the <strong>PKN</strong> ORLEN Purchase Instructions. The detailed<br />
terms and conditions established in the Instructions ensure<br />
transparency of the supplier selection process. A large<br />
number of our requests for quotation are published<br />
at www.orlen.pl. Via the website, suppliers have access<br />
to the ongoing purchasing procedures, which means<br />
that those procedures are open even to suppliers with<br />
no history of cooperation with <strong>PKN</strong> ORLEN.<br />
The procedure is the same for local suppliers as well<br />
as for all the other suppliers. The advantages of local<br />
suppliers are their good knowledge of the local market,<br />
flexibility, familiarity with <strong>PKN</strong> ORLEN and lower costs<br />
e.g. of transport. However, all suppliers are treated equally.<br />
We do not have any statistics of the ratio of expenditure<br />
on the services of local suppliers to total expenditure.<br />
The personnel of the Procurement Office are willing<br />
to contact any suppliers interested in cooperating with<br />
the Company. They are always very helpful during tender<br />
procedures. They advise suppliers on the purchase procedures<br />
and clarify any doubts concerning the respective<br />
stages of a tender procedure. They explain the general<br />
and specific requirements that tenderers are supposed<br />
to meet. Our personnel must be professional in performing<br />
their duties, but at the same time respect the primary<br />
values and principles of the <strong>PKN</strong> ORLEN Code of Ethics.<br />
Piotr Małowiejski<br />
Acting Manager<br />
of the Professional Service Procurement Team<br />
In order to maintain the highest standards<br />
of our relations with the customers,<br />
the <strong>PKN</strong> ORLEN Procurement Office applies<br />
a number of essential principles. They include<br />
maintaining a friendly working environment<br />
and creating a model of effective cooperation with<br />
internal customers. We achieve this<br />
by satisfying their expectations in the best<br />
possible way and by being ready to provide<br />
the required support. Developing partnership<br />
relations with reliable suppliers is extremely<br />
important for us.<br />
<strong>PKN</strong> ORLEN cooperates with reliable suppliers<br />
from all over the world. All of them are subject<br />
to regular verification; we have developed<br />
long-term cooperation models with our key<br />
suppliers. The Company does not hesitate<br />
to use the services of local suppliers<br />
(whose headquarters are located in the Płock<br />
District), thus supporting the local market<br />
and business. However, the final selection criterion<br />
is always the suppliers’ ability to satisfy<br />
our high expectations.<br />
25
<strong>PKN</strong> ORLEN – a brand open to dialogue<br />
It should be noted that in the reporting period, no penalties<br />
were imposed on the Company for breach of law<br />
and regulations relating to supplies and application of products<br />
and services. 2010 was also another year when<br />
none of our agreements with suppliers required inclusion<br />
of a human rights clause. Neither did we report any signs<br />
suggesting that there exists a risk of forced or child labour<br />
among our major suppliers. Thus, we do not maintain<br />
any statistics concerning that issue.<br />
is the ORLEN – Dar Serca Foundation. The Foundation<br />
allocates the money according to the specific suggestions<br />
of the donors. In 2010, the Foundation used the funds<br />
donated under the VITAY loyalty programme to pay for:<br />
• 6,462 dinners,<br />
• 557 hours of rehabilitation activities,<br />
• 153 sets of school supplies,<br />
• 84 monthly allowances for children from family-run<br />
children’s homes.<br />
1.5. Responsible marketing<br />
<strong>PKN</strong> ORLEN marketing and promotional activities are<br />
performed in view of the principles of corporate responsibility.<br />
Both the marketing activities and the accompanying<br />
communication take into account a long-term impact<br />
on the stakeholders and the surrounding environment.<br />
Our campaigns and communication rely on true and reliable<br />
information. The variety and complexity of the initiatives<br />
taken in this particular area are remarkable. Below<br />
is a brief presentation of those initiatives.<br />
In order to protect the environment and deal with<br />
the problem of growing volumes of waste, the ORLEN<br />
and Bliska fuel stations introduced environmentally friendly<br />
fully biodegradable shopping bags. Moreover, some<br />
fuel stations collect used batteries and accumulators<br />
from customers.<br />
Participants of the VITAY loyalty programme have the option<br />
to donate their loyalty points to family-run children’s<br />
homes supported by the ORLEN – Dar Serca Foundation.<br />
In 2010, the customers of ORLEN fuel stations donated<br />
almost 10 mn VITAY points, which is an equivalent of almost<br />
PLN 80,000. The beneficiary of the donated funds<br />
The Foundation also supports children from disadvantaged<br />
families, e.g. from the flooded areas, in particular by providing<br />
them with clothes, shoes and things for school.<br />
Children r mor are inform welcome t on at vi it our fuel stations. Some fuel<br />
stations even have baby change facilities.<br />
One For more of the information, corporate good visi practices : is to offer fair-trade<br />
certified coffee at the fuel stations. The fair-trade logo<br />
means that the coffee at our Stop Cafes is supplied<br />
f<br />
by fair suppliers.<br />
For more information, visit:<br />
The 2009 Corporate Responsibility Report, p. 46<br />
<strong>PKN</strong> ORLEN follows the principles of transparency and fair<br />
play. Since 2006, the Company has been applying<br />
the principles of good practice, developed in cooperation<br />
with the Advertising Agencies Association, in the process<br />
of selecting an Advertising Agency and a Media House.<br />
In the period when the Polish Association of Branded<br />
Goods Manufacturers ProMarka existed, <strong>PKN</strong> ORLEN<br />
was involved in developing, promoting and protecting<br />
trademarks as distinctive features of a product.<br />
26
Corporate responsibility report<br />
The objective of the ProMarka Association was to establish<br />
the highest advertising standards in Poland and protect<br />
consumers and competition from unfair and unethical<br />
advertising. <strong>PKN</strong> ORLEN, as a member of the Association,<br />
undertook to apply the provisions of the Code<br />
of Ethics in Advertising. This meant that if a member<br />
company was reported to have breached the Code, it had<br />
to be disciplined by the Advertising Ethics Committee.<br />
The good practice of the Promotion and Advertising<br />
Department is to communicate true and reliable information<br />
to our customers.<br />
No cases of non-compliance with regulations and voluntary<br />
codes governing the marketing communication<br />
issues, including advertising, promotion and sponsoring,<br />
have been reported. One complaint was filed with<br />
the Advertising Council and dismissed by the Advertising<br />
Ethics Committee in the reporting period.<br />
Currently, <strong>PKN</strong> ORLEN is a party to three pending antimonopoly<br />
proceedings.<br />
Mystery Customers are evaluators who visit the Company<br />
establishments (institutions, organisations) under<br />
the disguise of a regular customer and assess the quality<br />
of customer service and their compliance with relevant<br />
standards. <strong>PKN</strong> ORLEN was one of the first companies<br />
to implement the Mystery Customer programme in 2001.<br />
The programme is one of the fundamental elements<br />
of the customer service management system within<br />
the <strong>PKN</strong> ORLEN retail network. It is an external audit<br />
of the functioning of key customer service standards.<br />
It enables incorporation of measurable (percentage<br />
points) evaluation results in the process of customer<br />
service quality management. The evaluation is a continuous<br />
process and it covers all the operating fuel<br />
stations. Each fuel station receives an evaluation sheet<br />
specifying which standards are on the required level<br />
and what needs impro vement. The reasons of each negative<br />
evaluation are explained. The results of evaluation<br />
are used to develop a customer service improvement<br />
plan tailored to the specific fuel stations. Those results<br />
may also be used for example in incentive programmes.<br />
1.6. Service Standards<br />
Customers and users of the products and services offered<br />
by <strong>PKN</strong> ORLEN repeatedly rewarded our corporate efforts<br />
with numerous awards and distinctions. In 2010, <strong>PKN</strong><br />
ORLEN once again received the Golden Trusted Brand<br />
Logo. For the fourth time in succession, it was recognised<br />
as the Most Valuable Polish Brand. The BiznesTank Programme<br />
was acclaimed as the Fleet Product of the Year.<br />
For the second time in succession, the Company received<br />
the Golden Customer Laurel 2010.<br />
<strong>PKN</strong> ORLEN runs a number of projects dedicated to customer<br />
satisfaction analysis. The most important among<br />
them is the Mystery Customer programme the purpose<br />
of which is to verify compliance with relevant customer<br />
service standards.<br />
27
<strong>PKN</strong> ORLEN – a brand open to dialogue<br />
Another initiative is the Brand Barometer project, which<br />
involves periodic customer satisfaction assessment.<br />
The results of the assessment are thoroughly analysed<br />
and used to implement specific solutions.<br />
The idea behind those initiatives is continuous improvement<br />
of customer service standards and customer satisfaction<br />
levels, which is particularly important given<br />
the growing customer awareness and expectations<br />
concerning product and service quality, and the level<br />
of service provision. This is why we analyse very carefully<br />
every complaint made by customers and use their<br />
suggestions to improve our work. A strong brand reputation<br />
and loyal customers are a solid foundation for<br />
the economic success of a company.<br />
In 2010, <strong>PKN</strong> ORLEN centralised the complaints and claim<br />
management system in the retail sales area in order<br />
to be able to better and faster react to customer expectations.<br />
Actions were taken to streamline the document<br />
circulation process. The information we receive<br />
from customers is processed in a professional manner<br />
and thoroughly analysed in order to improve the offer<br />
of our fuel stations across the country.<br />
We do our best to meet the needs of various groups<br />
of For our m customers re information F example, visit: customers with special<br />
needs can now find a <strong>PKN</strong> ORLEN fuel station with<br />
the req uired disability facilities via the www.orlen.pl<br />
website.<br />
For more information, visit:<br />
The 2009 Corporate Responsibility Report, p. 46<br />
COMMITMENT<br />
We plan to launch new applications to enable online<br />
search of <strong>PKN</strong> ORLEN fuel stations in August 2011.<br />
These will be:<br />
• www.m.orlen.pl – a light version of our corporate<br />
website with a search engine, available from any<br />
mobile device with internet access<br />
• an advanced fuel station search engine for smartphones<br />
(compatible with Android, iPhone and Blackberry<br />
systems).<br />
Complaints and claims<br />
Year 2008 2009 2010<br />
Filed Accepted Dismissed Filed Accepted Dismissed Filed Accepted Dismissed<br />
Complaints<br />
553<br />
100<br />
453<br />
635<br />
147<br />
488<br />
1,080<br />
332<br />
748<br />
Claims<br />
597<br />
178<br />
419<br />
758<br />
227<br />
531<br />
826<br />
199<br />
627<br />
Total<br />
1,150<br />
278<br />
872<br />
1,393<br />
374<br />
1019<br />
1,906<br />
531<br />
1,375<br />
28
2.<br />
SOCIETY<br />
2.1.<br />
2.2.<br />
2.3.<br />
2.4.<br />
2.5.<br />
2.6.<br />
2.7.<br />
2.8.<br />
<strong>PKN</strong> ORLEN<br />
as a responsible<br />
citizen<br />
Expectations of our stakeholders<br />
Risk Management<br />
Participation in public life<br />
Participation in local and European projects<br />
National heritage<br />
Sports<br />
Charity<br />
ORLEN “Safe Roads”
<strong>PKN</strong> ORLEN as a responsible citizen<br />
SOCIETY<br />
<strong>PKN</strong> ORLEN<br />
as a responsible<br />
citizen<br />
2.1. Expectations of our stakeholders<br />
Andrzej Kozłowski<br />
Executive Director, Strategies<br />
and Project Management<br />
It is no news that the sector in which we operate is a very<br />
demanding one. The ORLEN Group is affected by a number<br />
of macroeconomic, market and regulatory factors.<br />
In order to maintain our leading position in the market,<br />
we adjust our business to the changing environment<br />
and quickly react to the new market challenges.<br />
We are not only the largest company on the Polish market,<br />
but also one of the largest corporations in Central<br />
and Eastern Europe. We are a regional leader and we are<br />
active on a number of markets, among others in Poland,<br />
the Czech Republic, the Baltic states or in Germany.<br />
We have used M&A projects and consistent implementation<br />
of organic project to build our strong position<br />
in the refinery and retail sectors. Our current strategy<br />
is to focus on the development of new segments:<br />
electricity and upstream. At the same time, we strive<br />
to achieve our other strategic priorities: further improvement<br />
of effi ciency and debt reduction. These activities<br />
are accompanied by our awareness of the impact<br />
we have on the environment. Accordingly, our responsibility<br />
towards stakeholders and pro-environmental<br />
efforts are a natural element of all the economic projects<br />
we undertake.<br />
In 2010, <strong>PKN</strong> ORLEN launched an innovative study which,<br />
alongside other studies incorporating social elements,<br />
was dedicated to two specific groups of our stakeholders:<br />
the customers and the local society of the city<br />
of Płock. The purpose of the study was to find out what<br />
the respon dents thought about CSR activities in <strong>PKN</strong><br />
ORLEN. We asked our stakeholders, among other things,<br />
about their knowledge, understanding and asse ssment<br />
of the activities undertaken by the Company and whether<br />
they thought those activities to be effective and appropriate.<br />
The process was prepared in recognition of the fact<br />
that pro-social work is what our stakeholders expect, but<br />
at the same time affects the perception of our brand.<br />
Consequently, the benefits of such work are reciprocal.<br />
By better understanding the expectations of the environment,<br />
the Company acts more efficiently, which in turn<br />
serves to strengthen the Company’s brand.<br />
COMMITMENT<br />
To continue studies concerning the perception<br />
of <strong>PKN</strong> ORLEN’s CSR activities by the respective<br />
groups of stakeholders.<br />
30
Corporate responsibility report<br />
According to two-thirds of the residents of Płock, <strong>PKN</strong><br />
ORLEN is involved in pro-social work to a sufficient<br />
extent. The same group is also familiar with the specific<br />
actions taken by the Company. The following are<br />
the most popular projects: the purchase of medical devices<br />
for the hospital in Płock, construction of a modern<br />
playground for children and training programmes for<br />
students of local universities.<br />
Our customers positively evaluate the “ORLEN Safe Roads”<br />
programme that promotes road traffic <strong>safety</strong>. The ORLEN –<br />
Dar Serca Foundation, which supports family-run children’s<br />
homes and undertakes other social assistance initiatives,<br />
is also positively perceived. The assi stance programme<br />
dedicated to professional and voluntary fire brigades<br />
that <strong>PKN</strong> ORLEN implements under one of the priorities<br />
of its charity policy, namely life and health protection,<br />
is becoming increasingly popular.<br />
Apart from the above studies, <strong>PKN</strong> ORLEN constantly<br />
monitors the impact of its efforts on the local society.<br />
Two periodic studies are conducted: ORLEN Brand<br />
Reputation and Brand Reputation Index (GfK, Pentor RI),<br />
and the issue of local societies is an important module<br />
of both studies.<br />
CSR<br />
in ORLEN<br />
2010<br />
2009<br />
Fundacja<br />
„Fundusz<br />
Grantowy<br />
dla Płocka”<br />
BEZPIECZNE DROGI<br />
2006<br />
2007<br />
2008<br />
Forum<br />
dla<br />
Płocka<br />
2002<br />
2003<br />
2004<br />
2005<br />
2001<br />
2000<br />
31
<strong>PKN</strong> ORLEN as a responsible citizen<br />
2.2. Risk Management<br />
Risk is inherent in business. In order to minimise hazards<br />
that are hard to foresee, <strong>PKN</strong> ORLEN operates<br />
a risk management system enabling business decisions<br />
to be made with full awareness of the existing risks.<br />
In 2010, the company was well prepared to respond<br />
to actual risks so as to minimise their possible impact<br />
on the continuity and possibilities of achieving the business<br />
goals.<br />
Risk management is based on procedures that enable<br />
identification of respective risks, risk allocation to respective<br />
owners, risk analysis in the Company’s key areas<br />
and recommendation of preventive measures. To support<br />
the system, we have internal reviews (both with respect<br />
to internal procedures and the external environment)<br />
relating to the Company’s most important business areas<br />
in terms of its current operations. By integrating the risk<br />
management system we are able to implement a uniform<br />
approach to risk management, which will translate into<br />
uniform approach to strategic planning on the level<br />
of strategic business operations and internal control.<br />
Operating<br />
– caused by improper or unreliable internal processes,<br />
production, storage and distribution technologies, employees<br />
or malfunctioning processes.<br />
External<br />
– caused by external factors associated with customers,<br />
suppliers, competitors, new market players, substitute<br />
services or changes in the external environment.<br />
IT risks<br />
– associated with improper management of ICT resources<br />
processed by means of information and communication<br />
technologies, outdated information and communication<br />
technologies, incoherent ICT strategies, disturbances<br />
in the operation of the ICT infrastructure.<br />
Organisational<br />
– associated with the Company’s stakeholders and caused<br />
by inappropriate organisational structure and system<br />
of delegating the authorities and responsibilities, and lack<br />
of adequate rules of conduct for the employees and managers<br />
of organisational units.<br />
The risk management system responds to the needs<br />
of a broad circle of the Company’s stakeholders who<br />
want to better understand a wide range of the risks<br />
facing the Company so as to be certain that those risks<br />
are properly managed.<br />
Legal and regulatory<br />
– risks caused by non-compliance with the law, corporate<br />
regulations and contractual provisions, and risks associated<br />
with the <strong>safety</strong> of information processed using<br />
information technologies.<br />
The Company’s operations involve the following types<br />
of risk:<br />
Strategic<br />
– due to wrong assumptions of strategic planning<br />
and wrong assessment of strategic options, including<br />
internal strategic decisions.<br />
Financial<br />
– associated with financial transactions and financial<br />
accounting and reporting requirements.<br />
Physical <strong>safety</strong><br />
– risks associated with property and personal security<br />
(e.g. fire, accidents, theft).<br />
At <strong>PKN</strong> ORLEN, risk management is not restricted only<br />
to the oil industry. Instead, it relates to the broad macroeconomic<br />
context of the Company operations. Implementation<br />
of the integrated risk management system makes<br />
it possible to perceive the existing risks not only as threats,<br />
but also as an opportunity to increase the Company’s<br />
goodwill in all areas of its operations.<br />
32
Corporate responsibility report<br />
2.3. Participation in public life<br />
In 2010, <strong>PKN</strong> ORLEN, as a market leader, was involved<br />
in important sectoral events intended to promote dynamically<br />
developing companies. Among others, the Company<br />
was a sponsor of the MARQA 2010 Ranking of the Most<br />
Valuable Polish Brands organised by the Rzeczpospolita<br />
daily, the Congress of Oil and Gas Industry in Bóbrka<br />
or the “Stock Exchange Listed Company of the Year”<br />
ranking organised by the Puls Biznesu daily.<br />
<strong>PKN</strong> ORLEN organised a discussion panel about “Strategic<br />
implications and international significance of shale<br />
gas production in Poland” during the 20th Economic<br />
Forum in Krynica. The discussion was attended by experts<br />
and focused on the regional and international<br />
consequences of potential discovery of unconventional<br />
gas sources in Poland.<br />
In 2010, <strong>PKN</strong> ORLEN launched the “Future Fuelled<br />
by Knowledge” project whose goal is to initiate discussions<br />
on issues of strategic importance for the European<br />
and global economy. The project involves organisation<br />
of conferences and discussion panels, and publication<br />
of materials.<br />
The first event in the series was a conference: “1990 –2010<br />
– 2030: how much state in the market, how much market<br />
in the state. Experience and prospects for the development<br />
of the Polish and European economy.” The first<br />
twenty years of privatisation in Poland and the difficult<br />
crisis environment challenging both politician and entrepreneurs<br />
was the right moment to initiate a series<br />
of meetings that would serve as a platform for the exchange<br />
of opinions and experience concerning the most<br />
vital economic issues.<br />
The “1990 – 2010 – 2030: how much state in the market,<br />
how much market in the state” conference is an effort<br />
to review the entire process of political and economic<br />
transformation. The date of the conference – 16th September<br />
– was not a coincidence: it is associated with<br />
a series of historic events that took place 20 years ago<br />
following adoption of the Act on privatisation of stateowned<br />
enterprises in the summer of 1990. That act<br />
initiated the gradual process of reducing the presence<br />
of the State in economy, leading to thorough social<br />
and economic changes in our country. However, the recent<br />
global economic downturn made the Polish and European<br />
experts – politicians, economists and journalists – review<br />
their opinion on the relationship between the State<br />
and the market and redefine the role of the State in this<br />
respect. On the one hand, there is a growing pressure<br />
on introducing such regulations as would protect<br />
the world from a similar crisis in the future, however,<br />
on the other hand, the interference of the State in economic<br />
development has in many countries pumped<br />
the public debt to enormous dimensions, threatening<br />
the future economic stability of the world. Specialists met<br />
to discuss the direction in which the World is heading<br />
in 2010 and the distribution of forces between the State<br />
and the market in 20 years time.<br />
<strong>PKN</strong> ORLEN is also actively represented in various organisations<br />
and associations, which is a chance to share experience,<br />
broaden the knowledge and improve qualifications.<br />
Another advantage of such membership is the ongoing<br />
and free of charge access to reports, draft legislation<br />
and information about normative acts concerning<br />
the refinery and petrochemical sector on the Polish<br />
and European market. It also matters that the Company<br />
may present the stance of the chemical sector, protect<br />
its interests and influence legal regulations and technical<br />
standards, etc. Members of sectoral organisations can also<br />
benefit from participation in training sessions, workshops,<br />
conferences and seminars Last but not least, this kind<br />
F i i<br />
of activity helps build a positive image of the chemical<br />
industry and petrochemical sector.<br />
In 2010, the Company was represented in 37 organisations<br />
and associations, The Company plans to be a member<br />
or of m 39 e organisations or a io , and isi : associations in 2011.<br />
For more information, visit:<br />
The 2009 Corporate Responsibility Report, pp. 67 – 68<br />
33
<strong>PKN</strong> ORLEN as a responsible citizen<br />
Leszek Wieciech<br />
General Director,<br />
Polish Organisation of Oil Industry and Trade<br />
Do you think that the oil industry has<br />
to face any specific challenges in order<br />
to develop in a sustainable manner due to its<br />
specific character?<br />
The challenges facing the oil industry in the area<br />
of sustainable development could well<br />
be described as extreme. On the one hand,<br />
the global economy relies to a large extent<br />
on crude oil supplies and consumers consider<br />
unlimited mobility to be one of their basic rights<br />
but, on the other hand, the society and legislators<br />
insist, as they should, on limiting hazardous<br />
emissions, including CO 2<br />
emissions.<br />
The European oil industry accepted the challenge<br />
of supplying fuel and other products with as little<br />
negative environmental impact as possible: since<br />
1990, the energy efficiency factor has been<br />
growing by 1% a year. For several years now, outdated<br />
uncomplicated refinery systems have been<br />
gradually replaced with modern comprehensive<br />
units capable of thorough processing of crude oil.<br />
In terms of modernisation, Polish refineries<br />
are among leaders not only in Europe,<br />
but worldwide.<br />
<strong>PKN</strong> ORLEN’s participation in public life means also its lobbying<br />
policy in Poland and in Europe, which is conducted<br />
in a legal, conscious and fully transparent way. The Company<br />
bases its activities on direct lobbying, through active<br />
involvement of its own experts and indi rectly, through sectoral<br />
and environmental organisations to which it belongs.<br />
The main principles of <strong>PKN</strong> ORLEN lobbying policy include<br />
the principle of lobbying ethics, sustainable development,<br />
coordination, dialogue and adjustment.<br />
In 2010, the Company was particularly actively involved<br />
in issues related to increased <strong>safety</strong> of fuel supplies, fuel<br />
and energy market regulations, promoting renewable<br />
energy sources, investing in the energy sector, the energy<br />
and environment package, protecting the natural<br />
environment, establishing corporate governance policies<br />
and taxes in the fuel and energy sector.<br />
It should also be noted that the Company was involved<br />
in preparing legal regulations concerning mandatory<br />
oil and liquid fuel reserves, liberalisation of the rules<br />
of creating mandatory natural gas reserves, new requirements<br />
concerning the quality of liquid fuels, new<br />
The European oil industry has released a number<br />
of new fuels that cause much lower emission<br />
of hazardous substances (sulphur, lead, aromatic<br />
hydrocarbons and benzene). It was possible thanks<br />
to cooperation with the automotive industry<br />
and researchers and, most importantly, thanks<br />
to huge expenditure made by the oil companies.<br />
Finally, it should be mentioned that the European<br />
fuel industry is a major employer in the EU,<br />
with appr. 100,000 people working in refineries<br />
and 500,000 – in marketing and logistics, some<br />
of whom are highly qualified specialists, engineers<br />
and researchers.<br />
To sum up, it is right to say that the European<br />
fuel sector has become one of the leaders<br />
of sustainable development.<br />
34
Corporate responsibility report<br />
emission allowances trading scheme and a system for<br />
the balancing and settlement of traditional emissions.<br />
2.4. Participation in local<br />
and European projects<br />
As one of the largest oil industry companies in Central<br />
and Eastern Europe, <strong>PKN</strong> ORLEN feels responsible for contributing<br />
to the European Union policies. We do our duty<br />
by means of active membership in European petroleum<br />
industry associations. One of those associations is EUROPIA,<br />
a European forum where we represent the interests of our<br />
region and the Company itself. The mission of EUROPIA<br />
is to contribute in a constructive way to the development<br />
of policies to safeguard the secure and sustainable<br />
manufacturing, supply and use of petroleum products<br />
by providing competent input and expert advice to the EU<br />
Institutions, Member State Governments and the wider<br />
community. One of the jobs of the Association in 2010<br />
was publication of the White Paper on EU Refining,<br />
a report that sparked discussion about the future role<br />
of our sector in the EU’s new renewable energy economy.<br />
Such efforts are supported by scientific and technological<br />
research conducted by <strong>PKN</strong> ORLEN together with other<br />
members of the CONCAWE Association.<br />
<strong>PKN</strong> ORLEN is also engaged in the work of European<br />
sectoral associations. Apart from EUROPIA and CON-<br />
CAWE, the Company is an active member of the Energy<br />
Working Group of the BUSINESS EUROPE Association,<br />
the Polish Organisation of Oil Industry and Trade (POPiHN)<br />
and the Polish Confederation of Private Employers<br />
(PKPP Lewiatan). The Company was involved in preparing<br />
the EU policy and legislation concerning strengthening<br />
the principles of corporate governance for the functioning<br />
of European enterprises and implementation by the Polish<br />
Standardisation Committee of Polish standards concerning<br />
corporate risk management in Polish enterprises.<br />
As a result of close cooperation with local organisations,<br />
such as POPiHN and PKPP, the Company was involved<br />
in preparing assumptions for a new law on mandatory<br />
crude oil and liquid fuel reserves, assumptions for comprehensive<br />
amendment of the biocomponent and liquid<br />
biofuel law and expert opinions concerning the impact<br />
of draft key EU legislation on the domestic oil industry.<br />
2.5. National heritage<br />
In 2010, <strong>PKN</strong> ORLEN continued its cooperation with the National<br />
Museum in Warsaw, becoming the patron of the Polish<br />
Painting Gallery. The Company was also engaged<br />
in the Museum’s celebrations of the 600th anniversary<br />
of the Battle of Grunwald as a patron of the “Celebrations<br />
of the 600th Anniversary of the Battle of Grunwald”. One<br />
of the elements of the celebrations was publication of book<br />
entitled “Jan Matejko – Bitwa pod Grunwaldem nowe<br />
spojrzenia” with essays written by domestic and foreign<br />
art historians about the battle itself and its presentation<br />
by the painter, Jan Matejko. A light and sound installation<br />
by Stanisław Syrewicz was prepared and a 3D film,<br />
inspired by Jan Matejko’s famous painting, “The Battle<br />
of Grunwald”, was produced in association with Tomasz<br />
Bagiński’s Platige Image studio. It should be added that<br />
the Company also contributed financially to the purchase<br />
of specialist conservation devices (microscopes) by the Museum<br />
in 2010. The microscopes were used to renovate<br />
Matejko’s painting and will also be used to reconstruct<br />
other masterpieces. The Company was also a patron<br />
of the National Theatre in Warsaw. Thanks to the Company’s<br />
involvement, the audience had a chance to see<br />
the famous opening night of “A Streetcar Named Desire”.<br />
Another<br />
r mor<br />
area<br />
i<br />
of<br />
rmati<br />
our activity<br />
, is :<br />
is the city of Płock. The Company<br />
is a permanent patron of the Płock Masovian Museum<br />
which uses our help to supplement its collections<br />
in i<br />
and make the current exhibitions more attractive. Moreover,<br />
<strong>PKN</strong> ORLEN is a regular supporter of educational and art<br />
conservation projects organised by the Zielińscy Library,<br />
f vi<br />
the city’s oldest cultural institution, for the local society.<br />
Last but not least, the list of cultural undertakings in which<br />
For we have more been information invo ved features visit: a concert of the National<br />
Philharmonic Symphony Orchestra at the Płock Cathedral.<br />
For more information, visit:<br />
www.europia.eu; www.concawe.be; www.popihn.pl<br />
35
<strong>PKN</strong> ORLEN as a responsible citizen<br />
2.6. Sports<br />
For many years, <strong>PKN</strong> ORLEN’s marketing activities have<br />
been based on sport sponsoring. The Company is diversifying<br />
its portfolio of sponsoring activities and engages<br />
in projects that have the potential to yield measurable<br />
long-term benefits. Striving to become an important<br />
sports sponsor, the Company is investing in athletes<br />
and sporting initiatives aimed at improving the overall level<br />
of Polish sport, but also the development of individual<br />
disciplines and their representatives. Our contributions<br />
to sport are important both from the marketing and social<br />
perspective. <strong>PKN</strong> ORLEN constantly develops the portfolio<br />
of its sponsoring activities, selecting those that support<br />
most effectively the development of the respective<br />
disci plines and contribute to promoting the Company’s<br />
respective brands.<br />
Our sponsoring activities focus on the following two<br />
sports categories: motor racing and athletics. Motor<br />
racing was the first sport that <strong>PKN</strong> ORLEN was involved<br />
in, due to its proximity to the profile of our operations.<br />
More than 10 years ago, we established the ORLEN<br />
Team, the first professional cross-country racing team<br />
in Poland. Through the involvement of its members<br />
and the sponsor, the team has become one of the best<br />
recognised teams and has worked its way into the world<br />
top teams. In 2010, the company established another<br />
team – the VERVA Racing Team. The team consists<br />
of two young and very promising drivers who will be<br />
competing in the prestigious Porsche Supercup series.<br />
<strong>PKN</strong> ORLEN also supports athletes from the ORLEN<br />
Athletic Team who successfully compete in the most<br />
important international sporting events.<br />
©Adam Nurkiewicz ©Adam Nurkiewicz<br />
36
Corporate responsibility report<br />
In 2010, <strong>PKN</strong> ORLEN was also the nominal sponsor<br />
of one of the six Swatch FIVB World Tour beach volleyball<br />
tournaments, the ORLEN Mazury Grand Slam.<br />
Moreover, the Company co-financed a series of local<br />
and international volleyball tournaments and one volleyball<br />
match with Brazil, the current world champion.<br />
2.7. Charity<br />
<strong>PKN</strong> ORLEN is involved in charity activities both directly<br />
and via its ORLEN – Dar Serca Foundation.<br />
<strong>PKN</strong> ORLEN also supports the Polish Olympic Movement<br />
and sponsors the Polish Athletics Federation. Last but<br />
not least, our sports-related CSR includes supporting<br />
the Athletic Thursdays – the most important athletic<br />
event for children and young athletes in Poland.<br />
<strong>PKN</strong> ORLEN traditionally supports the development<br />
of handball, no. 1 discipline in Płock. The Company<br />
is the General Sponsor of ORLEN Wisła Płock, one<br />
of the leading Polish teams, which since 1990 has not<br />
missed the podium in Polish Championship games.<br />
The Company also sponsors the ORLEN Handball Mini-<br />
League for teams of young players, boys and girls, from<br />
Płock and the neighbourhood. Thanks to the efforts taken<br />
and support provided by the Company, in 2010 Płock<br />
acquired a modern ORLEN Arena, a sports and entertainment<br />
hall, the seat of ORLEN Wisła Płock.<br />
The ORLEN – Dar Serca Foundation is celebrating its tenth<br />
anniversary in 2011. The Foundation is a public benefit<br />
organisation established in order to perform the social<br />
mission of its Founder – Polski Koncern Naftowy ORLEN.<br />
The aim of its flagship programme, continuously pursued<br />
since its establishment in 2001, is to support family-run<br />
children’s homes. Another area where the Foundation<br />
is increasingly active are scholarship programmes. Currently,<br />
four programmes are in progress: a nationwide<br />
F r more nformati n visit<br />
programme, a programme for children from familyrun<br />
For more children’s i form homes, io a visit programme for students from<br />
Płock, and a new programme which started in 2010<br />
and is addressed to students from the Płock District.<br />
Another important part of the Foundation’s activities<br />
is the promotion of health protection and human <strong>safety</strong>,<br />
i<br />
and supporting local societies.<br />
For more information, visit:<br />
www.darserca.pl<br />
37
<strong>PKN</strong> ORLEN as a responsible citizen<br />
The experience gained over a number of years has helped<br />
us develop clear and precise principles of providing<br />
assistance. The priorities of the “Charity Policy” have<br />
been established. These are protection of life and health<br />
as well as education and child care. Accordingly, the prevailing<br />
group of beneficiaries are fire brigades, medical<br />
institutions and beneficiaries from the education sector.<br />
Małgorzata Masłyk<br />
Recipient of scholarship<br />
from the ORLEN – Dar Serca Foundation<br />
What is such a young and ambitious person<br />
guided by when determining the goals<br />
of her life? What inspires and stimulates<br />
you to pursue continuous development?<br />
I believe in the saying that if you work hard<br />
to achieve something beautiful, the effort will<br />
go away and the beauty will remain.<br />
This is why my every day is beautiful and has<br />
the colours of a rainbow.<br />
A notable change that took place over the last few years<br />
was the stabilisation of the group of non-government<br />
organisation with which <strong>PKN</strong> ORLEN has established<br />
permanent relationships supported by long-term agreements.<br />
Currently, a group of 7 foundations cooperate<br />
on a regular basis with the Company. It should be noted<br />
that some of the projects have continued for more<br />
than 10 years now. In accordance with the principles<br />
of corporate social responsibility, an important criterion<br />
in developing those relationships were their social<br />
and business aspects.<br />
Over the last three years of secondary school,<br />
I proved that there is no such word as “impossible”<br />
in my vocabulary. Thanks to the scholarship,<br />
I went to Denmark for one year, where I attended<br />
a German-Danish school. I was the first<br />
in the history of the school and so far the only<br />
student from Eastern Europe to be elected<br />
by peers as the school president. I am also<br />
a member of the School European Club.<br />
My involvement in the Club encouraged me<br />
in particular to participate in history and EU<br />
contests. The scholarship enabled me to invest<br />
in myself without worrying about the costs<br />
associated with developing my interests<br />
and pursuing my educational aspirations.<br />
The truth is that being a prize-winner<br />
in numerous Polish and international contests<br />
is associated with substantial costs.<br />
Being socially active is also very important<br />
for me. I am an active member of the Association<br />
of Young Democrats and in the “Pokolenie”<br />
(Generation) group that assists deaf-and-dumb<br />
children. I devote my free time to poetry<br />
and rowing. Thus, the scholarship enabled<br />
my personal development, but at the same<br />
time it allowed me to use my free time<br />
for active participation in voluntary work<br />
for the local society.<br />
38
Corporate responsibility report<br />
Two organisations supporting local societies are particularly<br />
worth mentioning: “Fundusz Grantowy dla Płocka” (Grant<br />
Fund for Płock) and Stowarzyszenie “Fundusz Grantowy<br />
Dobrego Sąsiedztwa dla Ostrowa Wielkopolskiego”<br />
(The “Good Neighbourhood Grant Fund for Ostrów<br />
Wielkopolski” Association). Cooperation in this area<br />
has continued since 2002 for Płock, and since 2004 for<br />
Ostrów Wielkopolski. <strong>PKN</strong> ORLEN’s involvement in this<br />
project goes beyond charity work due to the fact that<br />
the activities and financial contribution of local governments<br />
are combined with the Company’s support.<br />
The purpose of these projects, based on the UNDP<br />
methodology in the area of sustainable development<br />
f<br />
strategy, is to broaden and strengthen cooperation<br />
between the public and private sector in a way that<br />
would serve both economic competitiveness and social<br />
justice. These activities promote development of partner<br />
relationships with the local society and create a positive<br />
image For m of r the inf rm Company ion v They i : also support third-sector<br />
development, since it is the local non-government organisations<br />
that are the beneficiaries of the aforementioned<br />
foundations. Fo more in<br />
In accordance with the principles of corporate social<br />
responsibility, <strong>PKN</strong> ORLEN takes part in numerous initiatives<br />
and projects, including those dedicated to <strong>safety</strong><br />
improvement. We are also implementing our own original<br />
project benefitting fire brigades.<br />
The Company receives numerous requests for assistance<br />
from national and voluntary fire brigades concerning<br />
co-financing of e.g. specialist fire fighting and rescue<br />
equipment, such as fire engines, pumps and personal<br />
equipment for fire fighters. The Company appreciates<br />
the fact that fire brigades are at all times ready to bring<br />
help to others and react in various critical situations.<br />
Fire fighters have many times proven that they are well<br />
prepared to rescue people’s lives and property, if only<br />
they have the right rescue equipment and funds to cover<br />
their operating expenses. This makes them highly trusted<br />
by the society.<br />
For more information, visit:<br />
www.funduszgrantowy.plock.eu.pl<br />
www.funduszgrantowy.pl<br />
COMMITMENT<br />
To continue cooperation within the framework<br />
of cross-sectoral partnerships<br />
39
<strong>PKN</strong> ORLEN as a responsible citizen<br />
<strong>PKN</strong> ORLEN supports fire brigades in appreciation of their<br />
incredible involvement and courage, and wishes to contribute<br />
to their proper functioning. The Company supports<br />
those fire brigades requesting for its assistance which<br />
need it the most.<br />
The principles of <strong>PKN</strong> ORLEN’s charity work are specified<br />
in detail on the www.orlen.pl website. Current information<br />
regarding donations granted is published online<br />
on the Company’s homepage and in the CSR folder<br />
as well as in corporate media (the Intranet, ORLEN Studio<br />
radio station, ORLEN ekspres newsletter). There was also<br />
a campaign in national media encouraging people to donate<br />
1% of their tax to support the activities of the corporate<br />
ORLEN – Dar Serca Foundation. The Foundation<br />
has a permanent place in the Szerokiej drogi magazine.<br />
Customers are encouraged to donate their VITAY points<br />
to family-run children’s homes and to contribute 1%<br />
of their tax. Information about <strong>PKN</strong> ORLEN’s assistance<br />
is also published by the beneficiaries on their websites<br />
and in local press.<br />
For several years now, <strong>PKN</strong> ORLEN has been ranked among<br />
the leaders in the “Philanthropy Leaders” competition,<br />
in the category of companies that donate the largest<br />
amount of funds for social purposes.<br />
2.8 „ORLEN.Bezpieczne drogi<br />
(safe roads)”<br />
Given the nature of the sector in which <strong>PKN</strong> ORLEN operates,<br />
initiatives aimed at improving road <strong>safety</strong> are very important.<br />
The Company has been implementing its “ORLEN.<br />
Bezpieczne drogi (safe roads)” programme since 2006.<br />
BEZPIECZNE DROGI<br />
In 2010, the programme focused on the problem of driver<br />
fatigue. The motto of the campaign was: “2 hours driving,<br />
20 minutes break”. A relaxed driver is a safe road<br />
user, and a tired driver may be as dangerous as a driver<br />
under the influence of alcohol. A solution is very simple.<br />
Each long trip should be planned in advance, taking into<br />
account the need to make short, 20-minute breaks after<br />
each 2 hours of driving.<br />
Other companies from the ORLEN Group also learn from<br />
<strong>PKN</strong> ORLEN’s experience. Some of them have adopted<br />
their own charity policies. A predominant part of donations<br />
granted by companies is directed to local needs.<br />
The “ORLEN.Bezpieczne drogi” safe roads programme has<br />
become a feature of the Polish landscape. It is appreciated<br />
and positively evaluated by drivers as an important effort<br />
to improve the level of <strong>safety</strong> on Polish roads.<br />
Number of fire brigade units that received assistance<br />
2008 2009 2010<br />
19 24 59<br />
40
3.<br />
SAFETY<br />
3.1.<br />
3.2.<br />
3.3.<br />
3.4.<br />
3.5.<br />
Safety – the key<br />
to development<br />
Safety Policy at <strong>PKN</strong> ORLEN<br />
More than HSE<br />
Fire Protection – In-House Fire Brigade<br />
Transport Safety – the SPOT system<br />
Disseminating the idea of <strong>safety</strong> - education
Safety – the key to development<br />
SAFETY<br />
Safety – the key to development<br />
3.1. Safety Policy at <strong>PKN</strong> ORLEN<br />
Dariusz Loska<br />
Director of the HSE Office<br />
Ensuring a high level of <strong>safety</strong> in the petrochemical<br />
industry is a huge challenge. The specific nature of this<br />
industry involves a higher risk of hazards than in other<br />
branches of the economy. This is why we always insist<br />
that health and life protection is our priority. The actions<br />
taken within the area of <strong>safety</strong> are aimed at achieving<br />
those objectives on all organisational levels, both<br />
during and outside working hours.<br />
We strive to achieve and maintain a <strong>safety</strong> level which<br />
will eliminate the risk of fatal, grave and group accidents,<br />
including accidents involving employees of outsourced<br />
contractors. An accident, fire or failure is not<br />
something that cannot be avoided. Their effective<br />
prevention is possible.<br />
Increasing <strong>safety</strong> is an extremely complicated process.<br />
It is important to apply the right training programme.<br />
To educate is often more effective than to control.<br />
The application of innovative technological and organisational<br />
solutions is not an insignificant issue, too.<br />
However, we must not forget that people are always<br />
in the centre of our attention.<br />
<strong>PKN</strong> ORLEN’s <strong>safety</strong> policy is based on two fundamental<br />
principles. First of all, human life and health protection<br />
is always regarded as superior. Moreover, the corporate<br />
operational activities take into account all the relevant<br />
HSE standards, good practice and the latest achievements<br />
of knowledge and technology. The direction<br />
of HSE-related activities is determined by the idea of full<br />
<strong>safety</strong> assumed by the Company: “Zero accidents means<br />
100% <strong>safety</strong>”.<br />
<strong>PKN</strong> ORLEN’s <strong>safety</strong> policy is described in the Integrated<br />
Management System Policy. In accordance with the document,<br />
we protect the life and health of our employees,<br />
outsourced contractors, suppliers and visitors by:<br />
• performing comprehensive technological, organi sational,<br />
economic and legal activities to prevent accidents<br />
among our employees and outsourced contractors,<br />
fire outbreaks and industrial or radiological failure;<br />
• ensuring a safe working environment for everybody;<br />
• systematically improving the <strong>safety</strong> culture;<br />
• integrating and improving cooperation between<br />
the ORLEN Group companies in the field of the <strong>safety</strong><br />
of work via a common <strong>safety</strong> platform;<br />
• cooperation with leading scientific institutions<br />
and knowledge transfer to the Company. <strong>PKN</strong> ORLEN<br />
shall take reasonable efforts to continue such cooperation.<br />
42
Corporate responsibility report<br />
WE INTEND TO INTRODUCE:<br />
• a <strong>safety</strong> passport for external contractors;<br />
• a HSE assistant;<br />
• training for outsourced contractors incorporating<br />
scenarios of possible crisis situations that<br />
may occur in the course of their work within<br />
the Company’s premises.<br />
Open communication with employees at all levels<br />
of the orga nisational structure enables cooperation in developing<br />
internal standards and documents in the area<br />
of HSE, fire prevention and process <strong>safety</strong>. Any suggestions<br />
made by the employees are recorded and are often used<br />
to solve work <strong>safety</strong> issues.<br />
The measures taken by <strong>PKN</strong> ORLEN to improve the <strong>safety</strong><br />
and conditions of work have for the second time been<br />
rewarded with the “Gold Card of a Safe Work Leader”.<br />
Dialogue is the best way to develop and ensure maintenance<br />
of certain standards. A HSE Committee has been<br />
established at <strong>PKN</strong> ORLEN. The principles of the Committee’s<br />
activities were regulated in an agreement with<br />
trade unions. The agreement was executed on the basis<br />
of the provisions of the Corporate Collective Labour<br />
Agreement and generally applicable legislation. The Committee<br />
settles any issues associated with the development<br />
of HSE conditions in the Company. The same regulations<br />
serve as a basis for the functioning of a social labour<br />
inspection whose work is administered by labour unions.<br />
Cooperation aimed at developing good HSE conditions<br />
in the Company includes meetings of the Corporate Social<br />
Labour Inspector and Departmental Social Labour Inspectors<br />
with trade unions, attended by a member of the <strong>PKN</strong><br />
ORLEN Management Board and employer’s representatives<br />
responsible for contacting the social labour inspectorate.<br />
Half of the Committee members are the employer’s representatives,<br />
including HSE service personnel and a medical<br />
doctor responsible for preventive medical care of the employees.<br />
The other half are representatives of the employees,<br />
including the Corporate Social Labour Inspector.<br />
It should be noted that the HSE Office cooperates directly<br />
with the Inspector. These activities result in solutions<br />
to difficult problems concerning HSE and establishment<br />
of work <strong>safety</strong> procedures within the Comprehensive<br />
Prevention System, among others.<br />
3.2. More than HSE<br />
Product <strong>safety</strong><br />
The <strong>safety</strong> of all products offered by <strong>PKN</strong> ORLEN, both<br />
fuels and petrochemicals, is guaranteed in accordance<br />
with the EU and national legislation as well as corporate<br />
standards and regulations. Products are provided<br />
with material <strong>safety</strong> data sheets that constitute a basic<br />
source of information about the chemical substance<br />
and preparation. That information is forwarded throughout<br />
the entire supply chain. Material <strong>safety</strong> data sheets<br />
contain information concerning, among others, hazards,<br />
composition, behaviour in case of fire and other data.<br />
We implement rational management. We apply technologies<br />
and processes based on our theoretical and practical<br />
knowledge in the field of manufacturing specific products.<br />
We ensure adequate conditions and technical protection<br />
of production and logistic processes.<br />
43
Safety – the key to development<br />
Employee <strong>safety</strong><br />
We maintain statistics of accidents and non-casualty<br />
incidents taking place within the Company’s premises.<br />
We do not have statistical data broken down into genders<br />
and regions, though it would be possible to collect such<br />
data. We monitor employee health, draw conclusions<br />
and take preventive actions. No grave, group or fatal<br />
accidents were reported in 2010.<br />
123 non-casualty incidents were reported within<br />
the premises of the Production Plant in Płock. Once<br />
again, the events were analysed in order to collect<br />
as much information as possible and avoid grave injuries<br />
in the future.<br />
Efforts taken to prevent accidents, industrial and radiological<br />
failures as well as fire outbreaks resulted<br />
in a limited number of accidents, also among employees<br />
of outsourced contractors. Many years of experience<br />
in the development of safe working conditions resulted<br />
in a reduction of accident rates at <strong>PKN</strong> ORLEN, which<br />
in recent years have remained similar.<br />
There is a close link between work <strong>safety</strong> culture<br />
and the number and type of accidents. This is why our<br />
current and planned actions focus on employee behaviour,<br />
their individual character and attitude, and the physical<br />
working environment. It is extremely important to develop<br />
<strong>safety</strong> awareness.<br />
COMMITMENT<br />
<strong>PKN</strong> ORLEN is planning to develop stress management,<br />
i.e. assessment and monitoring of employee<br />
stress levels, job satisfaction or ongoing<br />
preventive programmes.<br />
At <strong>PKN</strong> ORLEN, <strong>safety</strong> is regarded as an issue of key<br />
importance, and as such it is directly supervised<br />
by members of the Management Board. A number<br />
of projects and initiatives were implemented in 2010<br />
within the framework of the new concept of full <strong>safety</strong><br />
at <strong>PKN</strong> ORLEN:<br />
• Involvement of Top Managers – expressed by promoting<br />
safe behaviour at work. Concern for employee <strong>safety</strong><br />
as well as putting work <strong>safety</strong> issues on par with<br />
production issues help develop the right standards<br />
of behaviour.<br />
• Management “in a nutshell” – “nutshells” with<br />
graphics and descriptions are a synthetic presentation<br />
of the most important provisions of the Comprehensive<br />
Prevention System, thus making it easier for the employees<br />
to become familiar with them.<br />
• Supportive actions – 3 information movies concerning<br />
the HSE issues at the Production Plant in Płock were<br />
produced in several language versions (Polish, German,<br />
English and Russian). They concern the following issues:<br />
HSE during overhaul works, visitor <strong>safety</strong> within<br />
the Company’s premises and instructional material about<br />
Accident rate at <strong>PKN</strong> ORLEN<br />
Year<br />
No. of accidents<br />
Rate of<br />
Absence<br />
Total Fatal Grave Group Incidence 1 Severity 2 TRR 3<br />
2008 26 0 0 0 952 5.5 36.6 3.19<br />
2009 23 0 0 0 996 5.0 43.3 2.90<br />
2010 28 0 0 0 789 6.2 28.2 3.09<br />
1)<br />
incidence rate – number of accidents per 1,000 employees<br />
2)<br />
severity rate – number of days of inability to work per 1 accident<br />
3)<br />
TRR – number of accidents per one million of man-hours<br />
44
Corporate responsibility report<br />
hazards within the Plant. The movies are used during<br />
training sessions and in the framework of promotional<br />
and informational activities.<br />
• Motivating, promoting and enhancing safe behaviour<br />
at work and outside work by expressing approval<br />
and appreciation of employees who behave in a safe<br />
way and are committed to increasing <strong>safety</strong> at their<br />
workplace.<br />
• Work Safety as a corporate value – a proposal has been<br />
prepared to supplement the Key Corporate Values with<br />
“work <strong>safety</strong>” in order to promote and encourage safe<br />
behaviour at work.<br />
• Increasing employee awareness in this area is a priority<br />
for the Company. Instead of increasing the number<br />
of audits, we want to expand the system of counselling<br />
and training activities. Besides all that, an upgraded<br />
procedure for reporting accident risks enables the reporting<br />
person to suggest relevant preventive measures.<br />
COMMITMENT<br />
<strong>PKN</strong> ORLEN will continue reducing the number<br />
of audits and replacing them with counselling<br />
and training activities.<br />
Accidents in 2008–2010 (<strong>PKN</strong> ORLEN)<br />
28<br />
30<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
26<br />
23<br />
2008 2009 2010<br />
Incidence rate in 2008–2010 (<strong>PKN</strong> ORLEN)<br />
8<br />
6<br />
4<br />
2<br />
5,5<br />
5,0<br />
6,2<br />
0<br />
• Introduction of:<br />
2008 2009 2010<br />
– anti-electrostatic protective clothing, protective helmets<br />
and impact goggles, and in the event of evacuation<br />
– gas masks with filters;<br />
TRR rate in 2008–2010 (<strong>PKN</strong> ORLEN)<br />
– anti-electrostatic and flame resistant clothing;<br />
– protective shoes: anti-electrostatic, resistant to oil,<br />
4<br />
petrols and other organic solvents. 3<br />
3,2 2,9 3,09<br />
2<br />
1<br />
0<br />
2008 2009 2010<br />
45
Safety – the key to development<br />
ORLEN Group regions and companies<br />
Actions taken by <strong>PKN</strong> ORLEN are also being gradually<br />
implemented within the ORLEN Group. The result was<br />
a drop in the number of accidents in 2010. Most accidents<br />
were minor and did not cause prolonged sick<br />
absence. No repetitive accidents, typical of the chemical<br />
industry, were reported.<br />
Absence due to accidents at work in 2008–2010<br />
(<strong>PKN</strong> ORLEN)<br />
1000<br />
800<br />
600<br />
952<br />
996<br />
789<br />
It should be noted that concern for <strong>safety</strong> has resulted<br />
in reduced accident rates at the ORLEN Group. The current<br />
level of the TRR rate is comparable to that of other<br />
international companies from the refinery and petrochemical<br />
industry.<br />
400<br />
200<br />
0<br />
2008 2009 2010<br />
Due to the diversity of operations of the respective<br />
companies from the ORLEN Group, a HSE management<br />
system and relevant <strong>safety</strong> standards have been<br />
developed. Most companies have implemented and certified<br />
a HSE Management System in accordance with<br />
the PN-N-18001:2004 standard.<br />
Severity rate in 2008–2010 (<strong>PKN</strong> ORLEN)<br />
50<br />
40<br />
30<br />
36,6<br />
43,3<br />
28,2<br />
COMMITMENT<br />
<strong>PKN</strong> ORLEN will continue to intensify cooperation<br />
among the ORLEN Group companies, including<br />
by developing data bases and implementing HSE<br />
management systems.<br />
20<br />
10<br />
0<br />
2008 2009 2010<br />
<strong>PKN</strong> ORLEN TRR rate in 2000–2010 (<strong>PKN</strong> ORLEN)<br />
Category Year ORLEN Group*<br />
5<br />
Accidents at work<br />
2009 85<br />
2010 73<br />
4<br />
Sick absence<br />
Severity rate<br />
Occupational diseases<br />
TRR rate<br />
2009 3501<br />
2010 2595<br />
2009 41.18<br />
2010 35.55<br />
2009 0<br />
2010 0<br />
2009 4.17<br />
2010 3.86<br />
3<br />
2<br />
1<br />
0<br />
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010<br />
*<br />
data concerns 22 leading companies from the ORLEN Group.<br />
46
Corporate responsibility report<br />
Safety of service suppliers and outsourced<br />
contractors<br />
One of <strong>PKN</strong> ORLEN’s objectives is to increase <strong>safety</strong><br />
among subcontractors. We undertake various measures<br />
to achieve to achieve that objective, for example:<br />
• pursuant to the decision of <strong>PKN</strong> ORLEN Management<br />
Board of 11 August 2009, outsourced contractors<br />
were obligated to implement a HSE Management<br />
System in accordance with the Polish Standard<br />
PN–N–18001:2004 Health, Safety and Environment<br />
Management Systems. Requirements. Since 1 July<br />
2010, the implementation of this system has been<br />
one of the selection criteria for outsourced contractors<br />
of future works at the Production Plant in Płock;<br />
• we include a “Work <strong>safety</strong>” clause in contracts with<br />
outsourced contractors;<br />
For more information, visit:<br />
The 2009 Corporate Responsibility Report, p. 43<br />
of emergency situations. They ensure protection of people,<br />
natural environment and property. All the documents<br />
have been submitted to the local administration authorities,<br />
i.e. Regional Environmental Protection Inspectorates<br />
and National Fire Brigade units.<br />
The Company operates a Process Safety Management<br />
System based on the nine pillars referred to in Article<br />
252 of the Environmental Protection Law that guarantee<br />
protection of people and the environment. That<br />
system is an element of <strong>PKN</strong> ORLEN’s overall management<br />
and organisation system. It implements the Major<br />
Accidents Prevention Policy (MAPP) applicable to all<br />
the Company’s facilities and hazard analysis and process<br />
risk assessment instructions.<br />
The <strong>safety</strong> and protection measures applied at <strong>PKN</strong> ORLEN<br />
are adequately correlated with the potential hazards. This<br />
way, we are certain that we ensure an adequate level<br />
of <strong>safety</strong> in our technological facilities.<br />
• we have prepared a Guidebook for outsourced contractors<br />
and the <strong>PKN</strong> ORLEN services assisting outsourced<br />
r contractors; more in o<br />
• we have improved the monitoring of accidents involving<br />
outsourced contractors within the premises<br />
,<br />
of the Production Plant in Płock;<br />
• we organise training sessions and we talk to outsourced<br />
contractors and their employees.<br />
Technology <strong>safety</strong> and process <strong>safety</strong><br />
The Production Plant in Płock, the PTA Plant in Włocławek<br />
and all the Fuel Terminals comply with the requirements<br />
of the EU Seveso II Directive implemented into the Polish<br />
Environmental Protection Law in the field of preventing<br />
major failure.<br />
In concern for <strong>safety</strong>, <strong>PKN</strong> ORLEN has developed and regularly<br />
updates documents containing systematic solutions<br />
for prevention of and protection against the effects<br />
<strong>PKN</strong> ORLEN performs process hazard analysis and <strong>safety</strong><br />
assessment by using such tools as: Preliminary Hazard<br />
Analysis (PHA), Hazard and Operability Study (HAZOP)<br />
and Layer of Protection Analysis (LOPA). They help<br />
avoid mistakes already at the stage of issuing opinions<br />
about and recommendations for project plans involving<br />
the Company’s facilities. The Process Safety Management<br />
System undoubtedly minimises the risk of failure.<br />
For example, the very introduction of the HAZOP analysis<br />
resulted in a drop in the number of failures.<br />
The principles of process <strong>safety</strong> are implemented at <strong>PKN</strong><br />
ORLEN at every stage of the functioning of technical<br />
facilities, beginning with designing through construction,<br />
operation and modernisation until disconnection and closure.<br />
The facilities are equipped with modern security<br />
and protection systems (e.g. monitoring and measuring<br />
systems, alarms, <strong>safety</strong> locks, fire <strong>safety</strong> systems and explosion<br />
prevention systems).<br />
47
Safety – the key to development<br />
3.3. Fire Protection<br />
– In-House Fire Brigade<br />
As far as <strong>safety</strong> is concerned, it is of crucial importance<br />
to prevent fire outbreaks, explosions and release of hazardous<br />
chemical substances. The <strong>PKN</strong> ORLEN In-House<br />
Fire Brigade specialises in fire-fighting and rescue operations<br />
in industry, especially in regard to chemical, high<br />
altitude, water and medical rescue.<br />
The Brigade’s main duties include:<br />
• organisation and conduction of fire-fighting and rescue<br />
operations not only at <strong>PKN</strong> ORLEN sites, but also anywhere<br />
in the country, within the National Fire-Fighting<br />
and Rescue System (KSRG) and the Hazardous Material<br />
Transportation Assistance System (SPOT);<br />
• monitoring fire and chemical <strong>safety</strong> of the Company’s<br />
facilities;<br />
• ensuring good technical condition of fire-fighting<br />
and rescue equipment;<br />
• evaluation and determination of building, installation<br />
and technological requirements concerning respective<br />
facilities in accordance with fire protection regulations<br />
and best available engineering knowhow;<br />
Jan Szrajber<br />
<strong>PKN</strong> ORLEN In-House Fire Chief<br />
<strong>PKN</strong> ORLEN In-House Fire Brigade is the largest unit<br />
of this kind in Poland and Central Europe. In 2001,<br />
it was incorporated into the National Fire-Fighting<br />
and Rescue System, which means that the National<br />
Fire Brigade may also count on its support.<br />
Our fire fighters are professionals of the highest<br />
calibre, ready to react wherever their help is needed,<br />
not only in industrial areas. The professional training<br />
and experience they have gained through fire-fighting<br />
and rescue operations, mock drills and training<br />
on fire training grounds abroad as well as<br />
the state-of-the-art fire fighting and rescue<br />
equipment they have access to make our In-House<br />
Fire Brigade a role model for other fire services.<br />
Our fire fighters also serve the local communities<br />
with devotion and courage. During the dramatic<br />
events of May 2010, a part of our team fought<br />
with the flood that attacked a part of the Płock<br />
District, e.g. near Dobrzyków, Jordanów and Wymyśl.<br />
We apply the latest solutions available in the field<br />
of fire protection. Many of them go beyond<br />
the current requirements of Polish legislation.<br />
Responsibility and concern for <strong>safety</strong> generate<br />
innovative solutions and stimulate continuous<br />
development.<br />
48
Corporate responsibility report<br />
• organisation of training and mock drills at <strong>PKN</strong> ORLEN<br />
facilities in Płock attended by intervention services,<br />
employee teams, National Fire Brigade units and other<br />
rescue units incorporated in the National Fire-Fighting<br />
and Rescue System;<br />
• ensuring operating protection of the facilities of the following<br />
ORLEN Group Companies: BOP, ORLEN Oil,<br />
ORLEN Asfalt, ORLEN GAZ.<br />
<strong>PKN</strong> ORLEN is always concerned with increasing the <strong>safety</strong><br />
level. This is why the training and development of professional<br />
rescuers is so important. In 2010, almost 150 tactical<br />
and practical drills were held. Fire fighters participate<br />
in specialist courses dedicated to removal of industrial<br />
leakage, road rescue, water rescue, high altitude rescue,<br />
qualified first aid or procedures to be followed in case<br />
of threat of terrorist attacks. 550 chemical rescuers<br />
participated in specialist training and drills co-organised<br />
by the In-House Fire Brigade. Our Fire-Fighters are ready<br />
to react immediately in emergency situations. In 2010,<br />
they were called out to 125 incidents.<br />
Fire statistics 2010<br />
140<br />
120<br />
100<br />
80<br />
60<br />
40<br />
20<br />
0<br />
Total local hazards<br />
92<br />
including emergency calls<br />
63<br />
False alarms<br />
Total fire outbreaks<br />
Fire outbreaks in company<br />
13 20 15<br />
Fire extinguished before arrival<br />
of the Fire Brigade<br />
External Fire outbreaks<br />
4 1<br />
125<br />
Total<br />
49
Safety – the key to development<br />
3.4. Transport Safety<br />
– the SPOT system<br />
<strong>PKN</strong> ORLEN undertakes various activities to ensure <strong>safety</strong><br />
also beyond the premises of the Production Plant. We are<br />
actively involved in SPOT, and the In-House Fire Brigade<br />
manages the National SPOT Centre.<br />
SPOT is a Polish information and assistance system,<br />
the purpose of which is to prevent road accidents involving<br />
hazardous chemical materials or minimise their<br />
consequences. It is a perfect example of cooperation<br />
between chemical plants and transport companies handling<br />
hazardous materials.<br />
In 2010, assistance within the SPOT system was provided<br />
in eight incidents.<br />
Police<br />
Brzeg Dolny<br />
Bydgoszcz<br />
Kedzierzyn<br />
Kozle<br />
Wloclawek<br />
Plock<br />
Pulawy<br />
Nowa<br />
Sarzyna<br />
Trzebinia<br />
Tarnow<br />
Jedlicze<br />
Oswiecim<br />
The better trained individual employees are, the higher<br />
the <strong>safety</strong> level. Two-day annual HSE and fire protection<br />
training courses have been introduced for employees<br />
involved in particularly dangerous work as well as those<br />
who work in areas where there is a risk of explosion.<br />
Emergency training and drills are organised for chemical<br />
rescuers from the respective departments, the In-House<br />
Fire Brigade and the crew.<br />
Employee education is supported by interactive materials<br />
(movies, presentations, the Internet). An e-learning<br />
training system for the administration personnel was<br />
implemented and tested in 2010. Training materials<br />
regar ding good HSE practice are published in the Intranet.<br />
They concern such issues as e.g., HSE in the chemical<br />
industry or IT.<br />
<strong>PKN</strong> ORLEN’s concern for <strong>safety</strong> also means that relevant<br />
measures are taken on a regular basis. Within<br />
the framework of Work Safety Days (the first Thursday<br />
of each month), heads of organisational units perform<br />
a self-check of HSE, fire protection and process <strong>safety</strong><br />
issues. These meetings include also Brief Talks about<br />
Safety with employees concerning professional hazards<br />
and self-protection against them. On those days,<br />
specialists from the HSE Department inspect randomly<br />
chosen units.<br />
Płock, the National SPOT Centre<br />
Signatories of the National SPOT Centre<br />
3.5. Disseminating<br />
the idea of <strong>safety</strong> – education<br />
Our objective is to continuously develop the work <strong>safety</strong><br />
culture within the Integrated Management System. In order<br />
to develop ever better training programmes, <strong>PKN</strong> ORLEN<br />
applies the principle of behavioural <strong>safety</strong>, which involves<br />
promoting safe behaviour and modelling risky behaviour.<br />
The forms, methods and scope of HSE training programmes<br />
are tailored to the specific character of individual jobs.<br />
COMMITMENT<br />
<strong>PKN</strong> ORLEN will continue its activities related to educating<br />
and motivating employees and outsourced<br />
contractors. The following initiatives are planned:<br />
• Safety Open Day;<br />
• work <strong>safety</strong> promotion programme – a HSE<br />
competition.<br />
50
4.<br />
ENVIRONMENT<br />
4.1.<br />
4.2.<br />
4.3.<br />
4.4.<br />
4.5.<br />
4.6.<br />
4.7.<br />
4.8.<br />
4.9.<br />
4.10.<br />
<strong>PKN</strong> ORLEN activities<br />
and their impact<br />
on the climate and environment<br />
Climate changes – challenges<br />
In the heart of Poland<br />
Water and wastewater management<br />
Waste<br />
Greenhouse gas emissions<br />
Expenditure and investments<br />
in environmental protection<br />
Together, we change the world<br />
Responsible Care<br />
Green Company<br />
Responsible production
<strong>PKN</strong> ORLEN activities and their impact on the climate and environment<br />
ENVIRONMENT<br />
<strong>PKN</strong> ORLEN activities<br />
and their impact<br />
on the climate and environment<br />
4.1. Climate changes – challenges<br />
Adam Czyżewski<br />
Chief Economist at <strong>PKN</strong> ORLEN<br />
Climate changes concern the entire globe rather than<br />
individual continents or countries. Preventing climate<br />
changes requires coordination of climate policies<br />
on a global scale. Socially acceptable solutions are<br />
developed through international negotiations. Poland<br />
is involved in climate negotiations at the EU level,<br />
and the EU represents its Member States at international<br />
climate summits. Polish Presidency of the Council<br />
of the European Union obliges us all to pay particular<br />
attention to shaping the EU’s new climate architecture<br />
in such a way that it has coherent objectives<br />
and is achievable in terms of safe financing, and acceptable<br />
for all the Member States.<br />
As it is, climate policy is shaped in the process of multilateral<br />
negotiations which start on the national level<br />
before they move to the international arena. The national<br />
level of negotiations is a very important link<br />
in the climate process, since this is where negotiation<br />
mandates are established, determining the framework<br />
within which Government delegations will operate<br />
during international negotiations. Due to the fact<br />
that any arrangements made on the international<br />
level have to be implemented by the respective countries,<br />
each local entity has the right to express their<br />
opinion on the desired direction of changes in climate<br />
and to actively participate in the process of developing<br />
an official negotiating stance on the national level.<br />
In 2010, <strong>PKN</strong> ORLEN strengthened its position<br />
of the leader in environmental protection. However,<br />
we must not forget that the years to come will bring<br />
major changes in the broadly understood chemical<br />
industry. The new Community legislation that is about<br />
to enter into force requires ever more restrictive solutions<br />
in the area of enviro nmental management.<br />
Companies from the energy sector (in the broad meaning<br />
of the term), whose practical know-how related<br />
to the possibilities and costs of adapting to climate<br />
challenges may serve the negotiation process, play<br />
a particularly important role here. Shaping the future<br />
EU climate policy is the domain of the Government.<br />
However, the government does not act on its own<br />
behalf. Instead, it represents companies which create<br />
jobs and households that, in the end, will pay the costs<br />
of climate policy. <strong>PKN</strong> ORLEN, as an operator to whom<br />
the energy and climate policies apply may – and should<br />
– influence their future shape. The best way to make<br />
use of the potential of economic and business knowhow<br />
concerning climate change policies and their<br />
impact on the economy and business is to participate<br />
in the public debate.<br />
52
Corporate responsibility report<br />
One important challenge that faces the chemical industry<br />
are the assumptions of the Climate Package, such<br />
as the assumed reduction of greenhouse gas emissions<br />
and energy consumption by businesses. Despite the transition<br />
periods that the Polish Government succeeded<br />
in negotiating, it will be very difficult for chemical processes<br />
which inherently generate high energy consumption<br />
and, consequently, high emissions, to comply with<br />
the assumptions of the Climate Package. Beginning with<br />
2013, Poland and nine other Member States of the EU<br />
will be allowed to allocate free-of-charge only a portion<br />
of greenhouse gas emission allowances to its energy<br />
sources.<br />
The number of free-of-charge emission allowances to be<br />
allocated to the respective power plants will be calculated<br />
by Governments of the EU Member States in relation<br />
to technologies that emit the least pollutants in the process<br />
of generating electricity from the respective fuels,<br />
such as gas or coal.<br />
However, beginning with 2020, Polish power plants will<br />
be forced to buy all their emission allowances at auctions.<br />
This will undoubtedly affect energy prices. The chemical<br />
companies are forced to buy most of the energy they<br />
consume on the market, and even if they have – like<br />
<strong>PKN</strong> ORLEN – their own energy sources, they have to pay<br />
for emission allowances for those sources. The chemical<br />
industry is preparing to function in the new settings,<br />
which in many cases can be detrimental to competitiveness.<br />
Measures are being taken to reduce energy<br />
consumption, use biomass as fuel, etc. However, they<br />
are not sufficient. We will need decisions and actions<br />
concerning replacement of the basic energy sources to be<br />
taken on the country level. The obligation to reduce<br />
greenhouse gas emissions applies not only to energy<br />
sources. Beginning with 2013, practically all chemical<br />
plants will have to participate in the emissions trading<br />
scheme. For those of them which might otherwise be<br />
forced to move their production outside the EU, a protective<br />
mechanism has also been prepared in the form<br />
of free-of-charge allocation of emission allowances.<br />
However, the volume of those allocations will promote<br />
only low emission technologies. Those plants that do not<br />
meet the emission indicators will have to buy their emission<br />
allowances, which will make their products less<br />
competitive. All those measures are aimed at reducing<br />
greenhouse gas emissions caused by energy generation<br />
and refinery and chemical production processes.<br />
Another courageous step towards setting the objectives<br />
of modernising and reducing the burden of industry,<br />
including the chemical industry in Europe, was the entry<br />
into force of the Directive 2010/75/EU of the European<br />
Parliament and of the Council on industrial emissions<br />
– the Industrial Emission Directive (IED). The provisions<br />
of the Directive concerning new conditions associated<br />
with obtaining an integrated permit that systematically<br />
regulates not only all the conditions of exploiting the environment<br />
(emissions, resources), but also the principles<br />
of production processes, must be transposed to the Polish<br />
legal system by 7 January 2013. For more than 3,000<br />
Polish plants that are obliged to have an integrated<br />
permit, it will be a sort of an environmental permission<br />
to conduct their business.<br />
What is important now is the form of transposing the provisions<br />
of the IED Directive to the national legislation, especially<br />
the revision of the Environmental Protection Law. Our<br />
previous experience shows that during the transposition<br />
r m s<br />
of the EU laws the Polish legislator tends to adopt provisions<br />
more restrictive than those in the underlying Directives,<br />
thus reducing the competitiveness of our companies.<br />
For more information, visit:<br />
Full text of the Directive 2010/75/EU of European Parliament<br />
For more and of i the formation Council on isitindustrial<br />
emissions<br />
http://eur-lex.europa.eu/<br />
Climate package:<br />
www.europarl.europa.eu/sides/<br />
53
<strong>PKN</strong> ORLEN activities and their impact on the climate and environment<br />
4.2. In the heart of Poland<br />
Arkadiusz Kamiński<br />
Environmental Protection Office Director<br />
The chemical industry cannot exist without power<br />
engineering: both professional and industrial<br />
combined heat and power plants. From their<br />
perspective, the new Directive imposes particularly<br />
tough requirements in terms of emission standards<br />
for: SO 2<br />
, NOx, CO and particulates.<br />
In order to adapt the <strong>PKN</strong> ORLEN Combined Heat<br />
and Power Plant to the new requirements<br />
that will enter into force in 2016, calls<br />
for tenders for the construction of an exhaust gas<br />
desulphurisation unit and an exhaust gas catalytic<br />
denitrogenation unit have been announced.<br />
Reducing emissions and impact to the conditions<br />
determined in the conclusions of reference<br />
documents describing the best available techniques<br />
(BAT) will be a major challenge. In our Company,<br />
the process of introducing technological improvements,<br />
emission reductions and better utilisation<br />
of raw materials has been going on for years.<br />
Because of that, the new requirements do not<br />
mean that the Company has to cross a huge gap,<br />
but rather that it has to continue investing<br />
in adapting its technology to the growing<br />
requirements.<br />
The environment in which we operate is extremely<br />
important for us. Even though the <strong>PKN</strong> ORLEN Production<br />
Plant is not located in protected areas or in direct<br />
vicinity thereof, its impact zone includes landscape<br />
parks and nature reserves. All initiatives undertaken<br />
by the Company are aimed at ensuring the highest<br />
possible environmental neutrality of production, storage<br />
and distribution processes. Production installations<br />
do not exert a significant impact on biodiversity thanks<br />
to procedures that guarantee safe exploitation and adherence<br />
to permissible emission parameters. The same<br />
applies to products, which are properly used thanks<br />
to material <strong>safety</strong> data sheets.<br />
Compliance of processes with environmental permits was<br />
verified twice by representatives of the Marshal’s Office<br />
of the Mazowieckie Voivodeship in Warsaw. No noncompliance<br />
was reported. Besides, 9 inspections were<br />
conducted by the services of the Mazowieckie Voivodeship<br />
Environmental Protection Inspectorate, as a result of which<br />
one post-inspection order was issued and complied with.<br />
In 2010, no accidental release of hazardous substances<br />
was reported at the Production Plant in Płock that could<br />
affect human life, soil, vegetation, water reservoirs<br />
or underground water.<br />
54
Corporate responsibility report<br />
4.3. Water and wastewater<br />
management<br />
Water or m re as a ormatio technological , visi medium is used in many<br />
ways in the production process. For example, it is used<br />
as a coolant or charge for the production of steam<br />
r i a , s<br />
in the CHP. It is also used for fire-fighting purposes.<br />
For more information, visit:<br />
The 2009 Corporate Responsibility Report, p. 59<br />
The Vistula River is a natural water source for the Production<br />
Plant in Płock. This is where the water intake<br />
r i :<br />
with a pumping station to transport water to the Plant<br />
is located. <strong>PKN</strong> ORLEN has a separate water permit for<br />
the uptake of surface water and ground water for the entire<br />
Production Plant in Płock – decision of the Governor<br />
of Mazowieckie Voivodeship, ref. no. WŚR-P.6811/1/03<br />
of 22 December 2003 allowing:<br />
• uptake of surface water from the Vistula – valid until<br />
31 December 2013;<br />
• uptake of ground water from the water intake<br />
in the “Biała” region – 8 wells – valid until 31 December<br />
2013.<br />
Despite the growing number of production facilities<br />
and the growing volume of oil processing, water uptake<br />
from the Vistula River remains practically unchanged.<br />
This is possible thanks to the constant modernisation<br />
of production facilities and increasing their energy efficiency.<br />
Wastewater management is also improving.<br />
It is possible to e.g. reuse a part of treated production<br />
wastewater in the industrial water network.<br />
The Central Wastewater Treatment Plant (CWTP), where<br />
wastewater from the Production Plant is delivered by four<br />
wastewater systems, treats wastewater until it complies<br />
with the parameters established in the integrated permit.<br />
There are also 21 local pre-treatment plants linked with<br />
respective units. They play an important role in reducing<br />
pollution in wastewater delivered to the CWTP.<br />
In 2010, we reported an increase in the volume of wastewater<br />
discharged to the Vistula by appr. 12.4%. This<br />
was due to a 28% increase in the delivery of rainwater<br />
and drainage water to the CWTP as compared to 2009<br />
due to heavy rains and a high ground water level.<br />
Volume and type of water uptake in 2008-2010<br />
Parameter<br />
2008 2009<br />
2010<br />
Up/Down trend<br />
[%]<br />
Water uptake from the Vistula<br />
[m 3 ]<br />
22,991,953<br />
22,448,565<br />
22,785,313<br />
1.5<br />
Water uptake from deep<br />
water well [m 3 ]<br />
513,000<br />
489,000<br />
509,000<br />
4.1<br />
Volume of reused water [m 3 ]<br />
2,643,956<br />
4,196,598<br />
4,139,784<br />
- 1.4<br />
Drainage from the desalting<br />
of blocks for industrial<br />
and fire-fighting water [m 3 ]<br />
1,261,677<br />
1,311,230<br />
1,315,784<br />
0.3<br />
55
<strong>PKN</strong> ORLEN activities and their impact on the climate and environment<br />
For the last 14 years, the Company has been implementing<br />
a “Method for wastewater treatment for industrial<br />
purposes” developed<br />
n<br />
by the<br />
:<br />
Water and Wastewater<br />
Treatment Institution. It consists in closing the water<br />
and wastewater circuit and generating industrial water<br />
f ,<br />
from treated wastewater.<br />
4.4. Waste<br />
In 2010, we reported a 1.6 k Mg increase in the amount<br />
of generated sewage compared to 2009. The excess waste<br />
was generated mainly by works related to disassembly<br />
and investment projects performed in 2010.<br />
For more information, visit:<br />
The 2009 Corporate Responsibility Report, pp. 63-64<br />
Quantity and quality of wastewater discharged in 2008–2010<br />
Parameter<br />
2008 2009<br />
2010<br />
Up/Down trend<br />
[%]<br />
Wastewater discharge<br />
to the Vistula [m 3 ]<br />
12,381,024<br />
11,351,599<br />
12,757,779<br />
12.4<br />
COD load in wastewater<br />
discharged to the Vistula<br />
[kg/y] [m 3 ]<br />
676,524<br />
726,812<br />
889,310<br />
18.3<br />
Comparison of the amounts of waste generated in 2008–2010<br />
[’000 Mg]<br />
12<br />
10<br />
8<br />
6<br />
4<br />
11,9<br />
9,4<br />
7,8<br />
10,7<br />
7,8<br />
6,2<br />
7,6<br />
4,6<br />
3,1<br />
2008 2009 2010<br />
4,3 4,7 4,8<br />
2<br />
0<br />
Total waste<br />
Recycled<br />
Non-hazardous waste<br />
(excl. municipal waste)<br />
Hazardous waste<br />
56
Corporate responsibility report<br />
The recycled waste ratio has remained stable at approx.<br />
80% of total generated waste over the last few years.<br />
Of the 4.8 k Mg of hazardous waste generated in 2010,<br />
3.8 k Mg was recycled outside Poland, 0.5 k Mg was<br />
collected by domestic operators and the other 0.5 k<br />
Mg was stored.<br />
In 2010, <strong>PKN</strong> ORLEN, in accordance with the relevant<br />
decision, collected waste in the warehouses pertaining<br />
the Plant. The waste collected in 2010 amounted<br />
to 115 Mg.<br />
In 2010 we generated 4.6 k Mg of non-hazardous waste<br />
(other than municipal waste).<br />
Amount of waste generated in 2008-2010<br />
Waste 2008 2009 2010<br />
Total generated waste:<br />
including:<br />
11.9<br />
7.8<br />
9.4<br />
- hazardous waste<br />
4.3<br />
4.7<br />
4.8<br />
- other waste (excl. municipal waste)<br />
7.6<br />
3.1<br />
4.6<br />
Waste disposal methods in 2008-2010<br />
Waste 2008 2009 2010<br />
Recycled<br />
10.7<br />
6.2<br />
7.8<br />
Total neutralised waste<br />
including:<br />
0.5<br />
0.8<br />
0.7<br />
- thermal<br />
0.3<br />
0.5<br />
0.5<br />
- stored<br />
0.2<br />
0.1<br />
0.2<br />
- other<br />
0.0<br />
0.2<br />
0<br />
Stored waste<br />
0.7<br />
0.8<br />
0.9<br />
57
<strong>PKN</strong> ORLEN activities and their impact on the climate and environment<br />
In the reported period, <strong>PKN</strong> ORLEN did not recycle iron<br />
sulphate or iron (III) sulphate.<br />
Transfer of hazardous waste in 2010 was as follows:<br />
• domestic transport:<br />
– for recycling – 154.790 Mg,<br />
– for neutralisation – 584.952 Mg,<br />
• to other countries for recycling – 4,128.937 Mg.<br />
This applied both to waste generated in 2010 and waste<br />
stored from previous years.<br />
4.5. Greenhouse gas emissions<br />
In the National CO 2<br />
Emission Allowance Allocation Plan for<br />
2008 – 2012, <strong>PKN</strong> ORLEN received the total of 32,895,735<br />
allowances for the Refinery, CHP and Petrochemical<br />
Cracking units operated by the Company.<br />
Utilisation of the allocated allowances is calculated based<br />
on reports made as for 31 December 2010 and verified<br />
by an authorised auditor.<br />
Even though emissions from the CHP units exceeded<br />
the amount of allocated allowances, the missing allowances<br />
may be transferred from the units that have excess<br />
allowances. Consequently, <strong>PKN</strong> ORLEN will avoid buying<br />
the missing allowances on the market.<br />
In 2010, the Company obtained decisions modifying<br />
the permissions to participate in the CO 2<br />
emission allowance<br />
trading scheme for the CHP and Refinery units – valid<br />
until 14 December 2019. The modification concerned<br />
the CO 2<br />
emission monitoring method.<br />
Emissions from the respective units owned by <strong>PKN</strong> ORLEN in 2010<br />
Installation<br />
Allowance<br />
allocation<br />
in 2010<br />
Actual<br />
emission<br />
in 2010<br />
% of allowances<br />
used in annual<br />
scale<br />
Remaining<br />
allowances<br />
CHP<br />
Refinery<br />
Petrochemical cracking<br />
Total for <strong>PKN</strong> ORLEN<br />
3,358,958 3,360,762 100.05 -1,8204<br />
2,161,551 2,021,453 93.52 140,098<br />
1,058,638 771,024 72.83 287,614<br />
6,579,147 6,153,239 93.53 425,908<br />
58
Corporate responsibility report<br />
The Petrochemical Cracking unit – Olefins II – has a permit<br />
valid until 31 December 2017.<br />
Emission of major pollutants by the Płock<br />
Production Plant in 2000-2010<br />
GHG emission is generated from units which handle<br />
processes covered by the CO2 emission allowance trading<br />
scheme:<br />
• fuel combustion in fuel combustion units (CHP);<br />
• combustion in the elements of the Refinery units,<br />
in particular in:<br />
– furnaces,<br />
– flares,<br />
• refinery processes:<br />
– hydrogen production,<br />
– catalyst regeneration,<br />
– decoking of furnace chambers (pipes),<br />
• F combustion more information, the production visit of propylene and ethylene<br />
in petrochemical cracking process (Olefins II).<br />
45<br />
40<br />
35<br />
30<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010<br />
Calculation of emissions<br />
Total emission Sulphur dioxide Total<br />
(excl. CO 2 )<br />
hydrocarbons<br />
For more information, visit:<br />
The 2009 Corporate Responsibility Report, p. 60<br />
Emission of NOx, SOx and other major pollutants emitted<br />
to the air, by type and weight.<br />
Emission of selected substances in 2008–2010<br />
Pollutant<br />
Volume of emission [Mg] Up/down trend compared to 2009<br />
2008 2009 2010 [Mg] [%]<br />
Sulphur dioxide 20,444.59 20,975.23 22,381.42 1,406.19 6.70<br />
N trogen monoxide<br />
(as per nitrogen dioxide)<br />
6,821.48 7,124.27 8,460.74 1,336.47 18.76<br />
Carbon monoxide 812.16 1,010.87 1,309.07 298.20 29.50<br />
Total hydrocarbons 1,384.01 1,238.12 1,412.07 173.95 14 05<br />
Fuel combustion particulates 453.34 399.75 509.65 109.90 27.49<br />
Carbon dioxide 6,158,959.11 6,126,894.42 6,351,440.32 224,545.90 3.67<br />
Other pollutants 270.71 370.05 370.98 0.93 0.25<br />
Total pollutant emission 6,189,145.40 6,158,012.71 6,385,884.25 227,871.54 3.70<br />
59
<strong>PKN</strong> ORLEN activities and their impact on the climate and environment<br />
In 2010, we reported a minor increase in pollutant emission<br />
compared to 2009. Higher emission of SO 2<br />
, NOx<br />
and particulate matter was generated mainly by the emitters<br />
of the CHP. Increased emission of gas pollutants<br />
was due to intensified operation of the CHP processes<br />
caused by periods of extreme weather conditions in winter<br />
months as well as the fuel structure. Increased emission<br />
of particulate matter was mainly due to a higher ash<br />
content in the combusted fuel.<br />
The growth in carbon monoxide was generated by the Hydrogen<br />
Sulphide Disposal unit, which was primarily due<br />
to a higher demand for hydrogen sulphide gases. Another<br />
reason was the intensified operation of post-combustion<br />
furnaces at the Hydrosulfreen unit and changing the composition<br />
of post-combusted chimney gas and fuel gas.<br />
Despite the increase, emissions remained within the limits<br />
established in the integrated permit.<br />
Pollutant emission measurements<br />
Ongoing measurements:<br />
• conducted at 3 emitters at the CHP;<br />
• measurements concerned emission of: SO 2<br />
, NOx<br />
(NO 2<br />
), particulates.<br />
Periodic measurements:<br />
• in 2010, pollutant emission was measured 84 times<br />
at the emitters of the <strong>PKN</strong> ORLEN Production Plant<br />
in Płock, 62 of which were mandatory measurements.<br />
The results were submitted to the Regional Environmental<br />
Protection Inspectorate and to the Marshal’s<br />
Office of Mazowieckie Voivodeship;<br />
• emission measurements were carried out at emitters<br />
covered by the integrated permit twice during<br />
the year, once in each half-year;<br />
• the scope of periodic emission measurements covered<br />
(depending on the emitter) the following pollutants:<br />
SO 2<br />
, NO 2<br />
, NOx (NO 2<br />
) CO, particulates, H 2<br />
S, aliphatic<br />
hydrocarbons, aromatic hydrocarbons: benzene, toluene,<br />
xylene, cumene.<br />
Emission measurements around the Production Plant<br />
in Płock<br />
On 1 January 2010, the air monitoring system applied<br />
at <strong>PKN</strong> ORLEN was reorganised. Following consultations<br />
with the Regional Environmental Protection Inspection<br />
in Warsaw, emission measurements at the Maszewo<br />
and Trzepowo stations were discontinued. Currently,<br />
the corporate monitoring network includes only one<br />
station located outside the fenced premises of the Production<br />
Plant in Płock (at Junior High School no. 5).<br />
Location of automatic air monitoring stations around the <strong>PKN</strong> ORLEN Production Plant<br />
Nowe<br />
Trzepowo<br />
Nowa Biała<br />
Trzepowo<br />
Stare<br />
Trzepowo<br />
I Łukasiewicza<br />
Maszewo<br />
Duże<br />
559<br />
W. Zgienieckiego<br />
Chemików<br />
Kolonia<br />
Biała<br />
Okólna<br />
Krzywa<br />
Sierpecka<br />
Długa<br />
60<br />
552<br />
Maszewo<br />
Szpitalna<br />
Dobrzyńska<br />
552<br />
559<br />
Medyczna<br />
559<br />
Gimnazjum nr 5<br />
60<br />
Bielska<br />
Fabryka Maszyn<br />
Kostrogaj<br />
O 3, CO, SO 2, NO 2, BTX<br />
60
Corporate responsibility report<br />
In 2010, <strong>PKN</strong> ORLEN performed the following measurements<br />
of air pollutant emissions:<br />
• Junior High School no. 5 – emission of O 3<br />
, CO, SO 2<br />
,<br />
NO 2<br />
, BTX.<br />
It should be noted that the station at the Junior High<br />
School no. 5 monitors the most densely populated area<br />
in direct vicinity of the Plant.<br />
Parameter<br />
Ozone [µg/m 3 ]<br />
NO 2<br />
[µg/m 3 ]<br />
SO 2<br />
[µg/m 3 ]<br />
CO [µg/m 3 ]<br />
Monitoring station<br />
Concentration<br />
Admissible values*<br />
Junior High School<br />
no. 5<br />
max D8 159.6 120 1<br />
No. of days of exceeded D8 21 25 days<br />
average annual concentration 52.4 ---<br />
max D1 126.3 200<br />
number of excess D1 0 18 times<br />
average annual concentration 11.5 40<br />
max D1 168.2 350<br />
number of excess D1 0 24 times<br />
max D24 63.7 125<br />
number of excess D24 0 3 times<br />
average annual concentration 9.3 20<br />
max D8 1,744 10,000<br />
number of excess D8 0 ---<br />
average annual concentration 346 ---<br />
H 2<br />
S [µg/m 3 ] average annual concentration --- 5<br />
Total hydrocarbons with methane [mg/m 3 ] average annual concentration --- ---<br />
Benzene [µg/m 3 ] average annual concentration 2.43 5<br />
* acc. to the Regulation of the Minister of Environment of 3 March 2008 (Journal of Laws /Dz. U / No.47, item 281)<br />
1<br />
target level – achieved in 2010<br />
D8 – 8-hour rolling average<br />
D1 Ý 1-hour average<br />
D24 – 24-hour average<br />
The admissible average annual concentration outside<br />
the premises of the Plant was not reported for any<br />
of the pollutants.<br />
constituted 20.93 % of total expenditure incurred on implementation<br />
of investment projects at the <strong>PKN</strong> ORLEN<br />
Production Plant in Płock in 2010.<br />
4.6. Expenditure and investments<br />
in environmental protection<br />
In 2010, capital expenditure on tasks related to environmental<br />
protection at the <strong>PKN</strong> ORLEN Production Plant<br />
in Płock amounted to PLN 148.12 mn, which is appr. 23%<br />
less compared to 2009, due to completion of a number<br />
of projects. Capital expenditure on environmental projects<br />
COMMITMENT<br />
Over the next seven years we plan to implement<br />
other energy and environmental projects worth PLN<br />
1.4 bn. The purpose of the programme is to continue<br />
the measures already taken by the Company to protect<br />
the environment and to increase the power<br />
output and balance <strong>PKN</strong> ORLEN’s energy demand.<br />
61
<strong>PKN</strong> ORLEN activities and their impact on the climate and environment<br />
Environmental fees charged on the Production Plant<br />
in Płock for air emission and the volume of wastewater<br />
discharge went up in 2010.<br />
Reasons for increased fees for air emissions:<br />
• fuel quality changed, and average sulphur content<br />
in oil and heating gas went up,<br />
• a new production unit – Hydrogen Production Plant<br />
II – was put into operation,<br />
• more fuel was combusted in winter due to low temperatures.<br />
The higher fees for wastewater discharge are mainly attributable<br />
to high rainfall and the high ground water level.<br />
Environmental fees charged on the Production Plant in Płock<br />
Type of fee<br />
Aggregate fee [PLN] Up/down trend compared to 2009<br />
2008 2009 2010 [PLN] [%]<br />
Total 16,572,326.63 17,226,918.00 19,644,093.00 2,417,175.00 14.03<br />
Emission fees (including transport)* 14,784,628.49 15,461,484.00 17,679,435.00 2,217,951.00 14.35<br />
Water uptake fees 1,085,833.47 1,082,459.00 1,146,012.00 63,553 00 5.87<br />
Wastewater discharge 701,866.67 682,975.00 818,646.00 135,671 00 19.86<br />
The amount includes fees for CO 2<br />
emission allowance allocation.<br />
Environmental fees charged on the Production Plant in Płock in 2009–2010<br />
[PLN mn]<br />
20,00<br />
15,00<br />
17,23<br />
19,64 17,68<br />
16,57<br />
15,46<br />
15,46<br />
2008 2009 2010<br />
10,00<br />
5,00<br />
0<br />
1,09 1,081,15 0,7 0,680,82<br />
Total Emission Water uptake Wastewater<br />
62
Corporate responsibility report<br />
4.7. Together, we change the world<br />
<strong>PKN</strong> ORLEN consequently undertakes measures aimed<br />
at environmental protection. The milestones:<br />
• in 1999, two nest boxes were fixed on chimneys<br />
of the Combined Heat and Power Plant and the Claus<br />
Unit;<br />
• in 2000, the Company started cooperation with<br />
the ”Peregrine Falcon Restitution in Poland” Programme<br />
Board, which changed name to FALCON<br />
Society for Wild Animals in 2002;<br />
• the first birds hatched in 2002.<br />
Find a falcon!<br />
http://webcam.peregrinus.pl/pl/telemetria-satelitarna<br />
More birds hatched in 2010. Four peregrine falcon chicks<br />
were seen in the nest boxes on the CHP chimney.<br />
The Polish Red Book of Animals lists the peregrine falcon<br />
as CR – critically endangered species.<br />
For more information, visit:<br />
www.peregrinus.pl<br />
Mr Sławomir Sielicki, a falconer and the Chair of the FAL-<br />
CON Society for Wild Animals, ringed young females<br />
with yellow ornithological rings. Rings are put on birds<br />
that hatch in municipal and built-up areas. They also<br />
wear blue bird-watching rings displaying large letters<br />
and digits. This way, information may be read from<br />
large distances with the help of field glasses. It is very<br />
likely that the parents of the new chicks are the couple<br />
which settled at ORLEN’s premises in 2002. Since then,<br />
29 chicks were born at ORLEN.<br />
4.8. Responsible Care<br />
Since 1997, <strong>PKN</strong> ORLEN has participated in the Responsible<br />
Care Programme (RC). In 2010, we completed<br />
the process of implementing the Framework Responsible<br />
Care Management System. An audit of the system, conducted<br />
at the turn of 2010 and 2011, confirmed that<br />
the level of the implementation entitled the Company<br />
to apply for a certificate to the Programme Board.<br />
What was new this year was that two females were<br />
provided with small satellite emitters that send radio<br />
signals to the satellite. The information received from<br />
the emitter makes it possible to determine the bird’s<br />
whereabouts with 1 km precision. Satellite emitters<br />
also enable tracking young peregrine falcons in order<br />
to analyse the routes of their migration and the areas<br />
they occupy in the first years of their life.<br />
In 2010, the Company implemented 43 tasks associated<br />
with all areas of the RC Programme and completed<br />
28 of<br />
m<br />
them. 10<br />
o m<br />
of those<br />
i ,<br />
tasks<br />
i :<br />
are in progress and will<br />
be continued in 2011. Out of the remaining five tasks,<br />
whose status was determined to be “incomplete”, two<br />
, i<br />
were once again proposed for implementation in 2011.<br />
For more information, visit:<br />
The 2009 Corporate Responsibility Report, pp. 57 – 58<br />
63
<strong>PKN</strong> ORLEN activities and their impact on the climate and environment<br />
4.9. Green Company<br />
Environmental awareness is present in <strong>PKN</strong> ORLEN’s dayto-day<br />
operations at all levels of the Company. The CEO,<br />
Jacek Krawiec, has received a Polish Environmental Partner<br />
Certificate from the National Environmental Council.<br />
The Production Plant in Płock has started implementing<br />
a municipal waste segregation system directly<br />
at the places where the waste is generated (offices,<br />
conference rooms, kitchen, staff rooms). The system<br />
is being gradually introduced in the Company’s facilities.<br />
During the first stage we provided:<br />
• 411 different colour containers for PAPER, PLASTIC<br />
and GLASS;<br />
• 5 “REBA – small cylinder” containers for used batteries;<br />
• 277 small rectangular cuboid containers for used<br />
batteries;<br />
• 12 1.1 m 3 collective containers.<br />
The volume of segregated municipal waste has grown,<br />
and consequently the volume of waste dumped at landfills<br />
has reduced. This, in turn, translates into lower waste<br />
management-related environmental fees.<br />
4.10. Responsible production<br />
Our employees learn how to be green every day during<br />
environmental training sessions. We organise a very<br />
popular “Catch the Hare” competition. The purpose<br />
of the competition is, above all, to raise environmental<br />
awareness and sensitivity among our employees.<br />
We use e-invoices for fuel wholesale transactions in Poland.<br />
The application of the electronic data exchange<br />
system has significantly reduced paper consumption<br />
in our Company. Other advantages of the include cost<br />
reduction, time saving, easier storage and browsing<br />
of documents as well as unlimited, safe and quick access<br />
to invoices at any time and place. Currently, more than<br />
60% of invoices are generated electronically.<br />
In 2010, the Company continued implementing investment<br />
projects aimed at limiting the impact exerted<br />
by the Production Plant on the respective environmental<br />
components initiated in the previous years. These projects<br />
included the construction of the HON VII unit (Diesel Oil<br />
Hydrodesulphurisation Unit) and the related infrastructure,<br />
the construction of the Claus II unit and the related<br />
infrastructure, and the reconstruction of the CHP fuel<br />
system. Moreover, we continued the replacement of pilot<br />
burners at the main torch burners with energy efficient<br />
burners, and the alteration of process filling in wet cooling<br />
towers in the cooling system.<br />
The HON VII unit was launched in November 2010.<br />
The unit allows to increase the production of low-sulphur<br />
components for production of high-quality diesel oil<br />
and light heating oil. Another effect is the increased<br />
production of diesel oil – by appr. 1 mn tonnes a year.<br />
Once the PX/PTA complex is launched, crude oil processing<br />
at the units in Płock will increase.<br />
64
Corporate responsibility report<br />
The new paraxylene unit, launched in 2011 at the Production<br />
Plant in Płock, uses very high quality charge. Therefore,<br />
in 2010, the Company constructed and launched a new<br />
ORP (Olefins Removal Process) system at the V Reforming<br />
Unit.<br />
Piotr Giżyński<br />
Head of the Process Department<br />
Despite the adverse economic conditions with which<br />
the companies are forced to cope now, we can say<br />
that 2010 was a good year. The Diesel Oil Hydrodesulphurisation<br />
Unit HON VII that we launched will<br />
enable us to increase the pool of low sulphur<br />
diesel oil and heating oil. Meanwhile, the launch<br />
of the Paraxylene Plant, a part of the high-tech PX/<br />
PTA complex, is a strategic project for the development<br />
of the Polish petrochemical industry, both<br />
in regard to the invested capital and the scale<br />
of production and the application of state-of-the-art<br />
technologies, which are unlike anything that has<br />
been used in Poland until now. The construction<br />
of the new PX/PTA units by <strong>PKN</strong> ORLEN is an example<br />
of cooperation and exchange of know-how<br />
between specialists from Poland, Japan, the USA<br />
and Italy which is unique on the national level.<br />
Consequently implemented monitoring of key<br />
parameter indicators enables a more effective<br />
on-going evaluation of the operation of production<br />
units and at the same time constitutes a basis<br />
for future decision making.<br />
The currently implemented energy programme will<br />
yield higher efficiency of the units and higher<br />
power output, which will enable balancing<br />
the Company’s energy demand.<br />
Another important event was also the commencement<br />
of construction works of a new gas turbine powered<br />
by natural gas – “blue fuel” characterised by the lowest<br />
emission indicators.<br />
In 2010, the Płock refinery processed 14,452,000 tonnes<br />
of oil.<br />
On 8 March 2010, a foundation act for construction<br />
of the most high-tech steam boiler used in industrial<br />
power engineering was signed. This event inaugurated<br />
a long-term Programme of Environmental and Power<br />
Engineering Investment Projects at the Production Plant<br />
in Płock. Construction of a steam boiler of the capacity<br />
of 300 MW is to be completed in the 2nd quarter of 2012.<br />
The purpose of the programme is to protect the environment,<br />
increase the power output and balance the energy<br />
demand, while at the same time reducing by appr. 90%<br />
emissions from the CHP. Investment projects worth PLN<br />
1.4 bn will be implemented over the next few years. These<br />
are, among others, the construction of a boiler of the capacity<br />
of 300 MWt accompanied by the first Polish exhaust<br />
gas denitrogenation unit, and the construction of units<br />
which will adapt the other boilers at the CHP to the new<br />
emission standards that will be required in the future,<br />
i.e. an exhaust gas desulphurisation unit, an exhaust gas<br />
catalytic denitrogenation unit and electrofilters.<br />
The programme will yield higher efficiency of the units<br />
and higher power output, which will enable balancing<br />
the Company’s energy demand. Moreover, it will enable<br />
a very cost-effective utilisation of various low quality fractions<br />
of gudrons and oils, even those with high sulphur<br />
content, as fuel for power generation, with much lower<br />
emission of gas and particulates from the Płock power<br />
engineering facilities than currently.<br />
65
<strong>PKN</strong> ORLEN activities and their impact on the climate and environment<br />
Energy consumption in 2010<br />
Description UoM 2010 performance<br />
Crude oil processing Mg 14,452,000<br />
Gudron consumption – only EC, and it is partly heating oil<br />
Mg 936,482<br />
GJ 38,296,482<br />
Heating oil consumption<br />
Mg<br />
GJ<br />
Mg<br />
136,369 only EC<br />
Fuel gas consumption<br />
GJ<br />
6,644,100 only EC<br />
(incl. natural gas)<br />
Mg<br />
GJ<br />
Diesel fuel consumption in PZC<br />
Mg 410<br />
GJ 17,547<br />
Electric ty purchase<br />
MWh 51,333<br />
GJ 184,801<br />
Heat energy purchase GJ 361,906<br />
Total consumption of fuel and purchased energy<br />
GJ<br />
Electricity sale<br />
MWh 585,783<br />
GJ 2,108,819<br />
Heat energy sale GJ 4,630,310<br />
Heat energy production in PZC boilers (gross) GJ 41,759,439<br />
Heat uptake in steam by the Industrial Complex<br />
(from PZC + purchase from Polyolefin and Asphalts)<br />
GJ 24,529,738<br />
Heat consumption in hot water<br />
GJ 2,606,851<br />
including: – the c ty<br />
GJ 2,308,912<br />
– Industrial complex + external recipients<br />
GJ 297,939<br />
Supply to steam network from production units GJ 5,268,836<br />
Heat production in waste heat boilers GJ 18,220,263<br />
Electricity production MWh 2,076,295<br />
Electricity consumption (Industrial Complex + PZC) MWh 1,541,845<br />
Production volumes of selected refinery products at the Production Plant in Płock, in ‘000 tonnes<br />
2009<br />
2010<br />
Dynamics<br />
2009/2010<br />
Crude oil processed 14,526 14,452 -1%<br />
Total petrol 3,055 2,736 -10%<br />
Total diesel fuel 5,330 5,359 1%<br />
Ekoterm Plus heating oil 790 699 -12%<br />
Aviation fuel 291 394 35%<br />
Propane-butane fraction (LPG) 210 241 15%<br />
Total fuels 9,676 9,429 -3%<br />
Fuel output (%) 66.61 65.24 -1.37 pp<br />
Output of white products (%) 78.08 78.19 0.11 p.p.<br />
66
Corporate responsibility report<br />
In order to increase the output of the most valuable<br />
products (depending on the current market situation),<br />
the Production Plant in Płock implements advanced<br />
process control systems.<br />
In the autumn of 2010, the Company completed<br />
the construction of a modern heat recovery steam boiler<br />
at the Fluid Catalytic Cracking II (FKKII) unit for technological<br />
gas cooling. The energy recovered in this way<br />
is used to produce 4 MPa technological steam.<br />
The Company has independently developed several<br />
tools to monitor certain key indexes such as: EII energy<br />
index, MA (mechanical availability index), OA (operational<br />
availability) index, PU (plant use) index. Data collected<br />
in this way is used for ongoing operational assessment<br />
of used assets. It is also an indicator to be considered<br />
in current and future decisions. These activities form a part<br />
of the Company’s Fuel Studies conducted by Solomon<br />
Associates, which are aimed at assessing the Company<br />
from the perspective of competitiveness on the world<br />
refinery market.<br />
Pro-environmental effects in terms of fuel production<br />
All types of petrol produced at <strong>PKN</strong> ORLEN contain<br />
a combination r mo e in r of a the io best visit quality purifying additives,<br />
whose main component is a detergent that guarantees<br />
compliance with the highest criteria of intake valve<br />
a ,<br />
cleanliness established in the World-Wide Fuel Charter.<br />
For more information, visit:<br />
The 2009 Corporate Responsibility Report, pp. 51 – 52<br />
In late November 2010, the Company launched<br />
the production of a new type of base petrol containing<br />
1.2 %(V/V) of a bio-component: ethyl tert-butyl<br />
e n m t , v<br />
ether [BB95E1.2] compliant with the corporate standard<br />
ZN-ORLEN 43:2010, and alcohol petrol ES95A 4.8 E 1.2<br />
on the basis of the same standard, compliant with<br />
the PN-EN 228:2008 standard and the Regulation<br />
of the Polish Minister of Economy of 9 December 2008.<br />
Quality and range of motor fuels in 2009-2010<br />
Product range<br />
Eurosuper 95<br />
Eurosuper 95<br />
w th EETB<br />
Super Plus 98<br />
w th EETB<br />
Eurosuper 95<br />
w th Ethanol Płock<br />
Prod. Plant*)<br />
Eurosuper 95 w th<br />
Ethanol<br />
Storage Facilities<br />
VERVA 98<br />
Storage Facilities<br />
Average content<br />
of substances<br />
in motor fuels<br />
Production<br />
volume<br />
[Mg]<br />
Average<br />
sulphur content<br />
[% weight]<br />
Benzene<br />
content<br />
[% V/V]<br />
Ethanol<br />
content<br />
[% V/V]<br />
ETBE<br />
content<br />
[% weight]<br />
2009 140,689 0.0007 0.77 - -<br />
2010 172,090 0.0009 0.67 - -<br />
2009 778,178 0.0008 0.80 - 8.53<br />
2010 592,611 0.0009 0.67 - 9.68<br />
2009 295,200 0.0008 0.66 - 10.56<br />
2010 239,863 0.0008 0.55 - 10.26<br />
2009 917,906 0.0008 0.74 4.89 -<br />
2010 771,602 0.0008 0.61 4.89 -<br />
2009 920,024 0.0008 0.74 4.84 -<br />
2010 969,892 0.0008 0.61 4.83 -<br />
2009 128,233 0.0008 0.66 - 10.56<br />
2010 119,045 0.0008 0.55 - 10.26<br />
2009 0.0008 0.62 1.39 4.24<br />
2010 0.0008 0.61 1.38 4.31<br />
* Including the total of 61,557 t of ethyl-alcohol petrol since 29 November 2010.<br />
67
<strong>PKN</strong> ORLEN activities and their impact on the climate and environment<br />
Share [%] of individual types of petrol in the entire petrol production in 2009-2010<br />
Petrol type 2009 2010<br />
Unleaded petrol 95<br />
Unleaded petrol 98<br />
VERVA 98<br />
86.69<br />
9.28<br />
4.03<br />
87.47<br />
8.38<br />
4.15<br />
Production of the purest components of green petrol in 2009-2010 [Mg]<br />
Component type 2009 2010<br />
ETBE<br />
Alkylate<br />
Isomerizate<br />
97,853<br />
115,323<br />
477,458<br />
89,125<br />
108,192<br />
463,798<br />
Ether share [%] in unleaded petrol (Eurosuper 95, Super Plus 98, VERVA 98) in 2009–2010<br />
2009 2010<br />
Content<br />
Unleaded petrol:<br />
– Eurosuper 95<br />
– Super Plus 98<br />
– VERVA 98<br />
Unleaded petrol:<br />
– Eurosuper 95<br />
– Super Plus 98<br />
– VERVA 98<br />
ETBE 9.55<br />
9.97<br />
68
Corporate responsibility report<br />
In 2010, <strong>PKN</strong> ORLEN produced the following types<br />
of diesel oil:<br />
“Super” urban diesel oil is used in road transport,<br />
mainly in public transport, in big urban agglomerations<br />
and environmentally protected areas. Usage of this kind<br />
of fuel is associated with lower emission of particulates,<br />
which was achieved by selecting components that guarantee<br />
the right distillation parameters.<br />
Ekodiesel Ultra diesel oil is top quality diesel fuel that<br />
meets the strictest quality and environmental requirements<br />
for For diesel more informatio fuels the , European v sit Union Member States.<br />
In the diesel oil group, the Ekoterm Plus heating oil<br />
is a r mo top-quality, e n o modern at o , v and s t safe energy source.<br />
For more information, visit:<br />
The 2009 Corporate Responsibility Report, pp. 52 – 53<br />
Range and quality of diesel fuel<br />
Production volume [Mg]<br />
Sulphur content [% weight]<br />
Product range 2009<br />
2010 2009 2010<br />
Ekodiesel Ultra*<br />
excl. ON diesel stored in salt caverns<br />
ONM Super<br />
5,179,475 5,238,677 0.00082 0.00078<br />
114,977 108,387 0.00046 0.00036<br />
* Including ON Verva diesel oil.<br />
69
<strong>PKN</strong> ORLEN activities and their impact on the climate and environment<br />
Range and quality of heating oil<br />
Production volume [Mg]<br />
Sulphur content [% weight]<br />
Product range 2009<br />
2010 2009 2010<br />
Ekoterm Plus heating oil<br />
Heavy heating oil C-3<br />
Heavy heating oil 1<br />
Furnace oil for industrial<br />
process furnaces<br />
753,387 699,047 0.060 0.054<br />
930,999 960,788 2.00 2.19<br />
27,734 17,399 0.85 0.82<br />
129,263 99,057 0.13 0.18<br />
Sulphur content in fuel manufactured by <strong>PKN</strong> ORLEN<br />
Aggregate amount [Mg]<br />
Up/down trend<br />
Sulphur content<br />
2009<br />
2010 [Mg] [%]<br />
In heating oil<br />
In diesel oil<br />
Recovered from<br />
processed crude oil<br />
19,476 21,740 2,264 11.6<br />
43 41.2 -1.8 -4.2<br />
134,850 145,425 10,575 7.84<br />
70
5.<br />
WORKPLACE<br />
5.1.<br />
5.2.<br />
5.3.<br />
5.4.<br />
5.5.<br />
5.6.<br />
5.7.<br />
5.8.<br />
Responsible employer<br />
Code of Ethics and core values<br />
as the foundation of our operations<br />
<strong>PKN</strong> ORLEN employee figures<br />
Recruitment<br />
Professional development<br />
Employee support provided by the employer<br />
Dialogue with the employees<br />
Responsibility for retired employees<br />
Employee Volunteering
Responsible employer<br />
WORKPLACE<br />
Responsible employer<br />
5.1. Code of Ethics and core values<br />
as the foundation of our operations<br />
Rafał Sekuła<br />
Executive Director, HR<br />
Global success starts locally, and it is achieved by people<br />
who work for the company. <strong>PKN</strong> ORLEN is guided<br />
by this principle in the field of employee relations.<br />
We know that the key to success is the involvement,<br />
responsibility and professionalism of our employees,<br />
as well as good communication in mutual relations,<br />
which is why we want to be near the employee from<br />
the beginning of his or her employment. At the same<br />
time, we remember about and appreciate long years<br />
of experience of our current employees, and we keep<br />
in touch with those who have already retired, but still<br />
feel a part of the ORLEN family.<br />
Our intention is to make the work for the Company not<br />
only a source of financial satisfaction, but also a chance<br />
for professional development. However, to be responsible<br />
means not only to work, but also to take care of our<br />
environment, which is why we promote and support<br />
numerous pro-social initiatives of our employees. We are<br />
convinced that individual approach to each employee<br />
helps build involvement and acquire the best personnel.<br />
What is also important is the dialogue and collaboration<br />
with social partners in search of new solutions<br />
that would both benefit the employees and boost<br />
the Company’s development.<br />
The general principles of the Code of Ethics, adopted<br />
in 2005, and the chapter devoted to relations within<br />
the Company emphasise the need to observe the law<br />
and good habits, and the principle of respecting the dignity<br />
of each human being. Activities aimed at popularizing<br />
the Code of Ethics have always highlighted its strong links<br />
with the Human Rights Charter. We wrote in greater detail<br />
about <strong>PKN</strong> ORLEN’s current Code of Ethics and the core<br />
values applied by our Employees in their work in previous<br />
Reports.<br />
For more information, visit:<br />
The 2009 Corporate Responsibility Report, pp. 30 – 31<br />
<strong>PKN</strong> ORLEN has established the post of Ethics Officer<br />
in order to make sure that all stakeholders are free<br />
to For report more any i formation, violations of si the provisions of the Code<br />
of Ethics. Employees may also report to the Ethics Offi cer<br />
any irregularities, which makes them feel that they have<br />
r<br />
a say in ensuring observance of the values. The Ethics<br />
Officer is obliged to guarantee anonymity of any person<br />
submitting a complaint He or she justifies complaints<br />
For more n rm tio v it<br />
and takes or initiates corrective measures. The Ethics Officer<br />
presents any reported ethical problems to the Management<br />
Board, making sure that the person reporting<br />
a problem cannot be identified. In special circumstances,<br />
when the welfare of the Company is at stake, the Ethics<br />
Officer reports directly to a competent Member<br />
of the Management Board. He or she also presents<br />
to the Management Board annual reports of actions<br />
undertaken by him or her to promote corporate culture<br />
based on <strong>PKN</strong> ORLEN’s corporate ethics and values.<br />
72
Corporate responsibility report<br />
The Ethics Officer is obligated to monitor the application<br />
of the Code of Ethics in relation to any issues<br />
reported to him or her, and submit a consolidated report<br />
to the Management Board. As the employee awareness<br />
of standards arising from the Code of Ethics grows,<br />
they get involved in discussing problems and morally<br />
equivocal situations. The majority of problems reported<br />
in 2010 concerned internal relations in the Company<br />
and moral issues. Each reported problem was analysed<br />
in the context of the provisions of the Code of Ethics,<br />
and actions were taken to explain and resolve each issue.<br />
As a result of engaging many business areas in corrective<br />
measures, the percentage of resolved issues is growing<br />
every year. The Ethics Officer is obliged to develop<br />
open communication, thoroughly analyse the principles<br />
applied in the Company, make people trust him or her,<br />
get involved in difficult discussions concerning ethical<br />
dilemmas, and publicly comment on behaviour that<br />
is incompliant with the Code of Ethics. We are aware<br />
that it takes a long time to change the people’s attitude<br />
to moral issues, which is why we regularly organise education<br />
and communication activities. Proper behaviour<br />
is promoted in corporate media (52 articles and auditions<br />
in “ORLEN ekspres” and ORLEN Studio). The Company<br />
has also organized group meetings and workshops<br />
concerning ethical problems.<br />
<strong>PKN</strong> ORLEN shares the knowledge and presents the experience<br />
gained in this area. In 2010, the Ethics Officer<br />
presented them:<br />
• at the Business Centre Club and to the students<br />
of a post-graduate course on “Ethics in Business”<br />
at the Leon Koźmiński University in Warsaw;<br />
• during a panel at the International Conference on Business<br />
Ethics;<br />
• in a publication entitled “Ku Rzeczypospolitej gospodarczej”,<br />
edited by Professor Gasparski.<br />
<strong>PKN</strong> ORLEN applies the general principles of law and respect<br />
for human rights in its operations. Consequently,<br />
the Company’s activities are not associated with the risk<br />
of child labour or forced labour. Moreover, there have<br />
been no cases of violation of the rights of indigenous<br />
people in the history of our Company. In 2010, the Ethics<br />
Officer received no complaints on corruption.<br />
73
Responsible employer<br />
5.2. <strong>PKN</strong> ORLEN employee figures<br />
The total number of employees is the number of persons<br />
who worked for <strong>PKN</strong> ORLEN in 2010 (even if they were<br />
employed for 1 day only), including employees with<br />
“suspended” status, i.e. those who were on maternity<br />
leave, unpaid leave or rehabilitation leave.<br />
<strong>PKN</strong> ORLEN employee figures<br />
3709<br />
P³ock<br />
4708<br />
Total<br />
999<br />
Other<br />
Total number of employees engaged in 2010* New employees who left the Company in 2010*<br />
300<br />
271<br />
300<br />
250<br />
200<br />
150<br />
100<br />
50<br />
0<br />
168<br />
103<br />
P³ock Other Total P³ock Other Total<br />
250<br />
200<br />
150<br />
100<br />
50<br />
0<br />
11 11<br />
0<br />
* Excl persons re-employed in 2010<br />
74
Corporate responsibility report<br />
New employees by gender and age<br />
Age groups<br />
250<br />
228<br />
250<br />
200<br />
200<br />
153<br />
150<br />
100<br />
50<br />
43<br />
150<br />
100<br />
50<br />
88<br />
24 6<br />
0<br />
Female<br />
Male<br />
0<br />
Responsible employer<br />
In 2010, <strong>PKN</strong> ORLEN employed 4,708 persons based<br />
on a work contract, of which:<br />
• 4,246 were open-ended contracts;<br />
• 400 were closed-ended contracts;<br />
• 36 were trial period contracts;<br />
• 26 were contracts with substitute employees.<br />
The ratio of the lowest salary in the Company to the statutory<br />
minimum salary in Poland is 205%.<br />
<strong>PKN</strong> ORLEN does not apply separate procedures for<br />
employment of persons from the local market.<br />
Managerial personnel (employment based on a work contract) by category<br />
Gender<br />
Female<br />
Male<br />
943 3,765<br />
Age groups<br />
60 Total<br />
698 1,405 1,158 1,305 142 4,708<br />
The total number of employees who left the Company<br />
was 240 (number of employment contracts terminated<br />
between 31.12.2009 and 30.12.2010).<br />
Fluctuation<br />
Age groups<br />
60 Total<br />
40 74 40 70 16 240<br />
Fluctuation by age groups<br />
60 Total<br />
0.85 1.57 0.85 1.49 0.34 5.10<br />
Gender<br />
Female<br />
Male<br />
75 165<br />
Fluctuation by gender<br />
Female<br />
Male<br />
1.60 3.50<br />
76
Corporate responsibility report<br />
For more information, visit:<br />
http://www.grasz.pl<br />
http://www.orlen.pl/PL/OFIRMIE/KARIERA/AKTUALNOSCI/<br />
r i<br />
Strony/default.aspx<br />
5.3. Recruitment<br />
Joanna Burgieł<br />
Director, Employee Skills and Development<br />
Management Office, Human resources<br />
<strong>PKN</strong> ORLEN, as a company located in Płock,<br />
pays particular attention to developing long-term<br />
relationships with the societies among which<br />
it operates. Activities aimed at promoting<br />
<strong>PKN</strong> ORLEN’s image on the local market are<br />
a permanent item of the Recruitment Team’s<br />
agenda. We are eager to get involved in the promotion<br />
of skills training and education of youth. For<br />
many years, we have been closely cooperating with<br />
high schools and universities located in Płock, i.e.<br />
the Zespół Szkół Centrum Edukacji (school of chemical<br />
engineering) and Zespół Szkół Budowlanych<br />
(school of building engineering). The cooperation<br />
consists mainly in organising apprenticeship<br />
programmes. One of the projects associated with<br />
our involvement on the local market was a series<br />
of workshops for students of the local high schools<br />
(Liceum, Technikum, Zespół Szkół Centrum Edukacji<br />
and IV LO in Płock). The projects were dubbed<br />
“The Entrepreneurship Week”. Moreover, <strong>PKN</strong> ORLEN<br />
has established cooperation with the Business School<br />
of the Warsaw University of Technology.<br />
For Our mo recruitment e in o m processes tio , visi : focus mainly on employees<br />
who already work for <strong>PKN</strong> ORLEN and the Capital Group.<br />
We also recruit employees from the external labour<br />
F vi<br />
market, taking into account the diversity and specific<br />
nature of the corporate business segments.<br />
We undertake a broad range of recruitment activities.<br />
The following activities which were particularly actively<br />
implemented in 2010 should be noted:<br />
• the Company initiated cooperation with a number<br />
of university career offices;<br />
• an employer profile was developed and published<br />
on the largest Polish job search portal pracuj.pl<br />
and on the website of the Wrocław University of Technology;<br />
<strong>PKN</strong> ORLEN promotes professional development<br />
not only of its employees, but also of young<br />
people – university and secondary vocational<br />
schools graduates – giving them opportunities<br />
to gain their first professional experiences.<br />
Since 2002, the Company, in association with<br />
Labour Offices across Poland, has implemented<br />
an Apprenticeship Programme. Additionally,<br />
<strong>PKN</strong> ORLEN joined, for the first time, a nation-wide<br />
competition entitled “Grasz o staż”<br />
(win an apprenticeship) in 2010.<br />
77
Responsible employer<br />
• the Company was represented at numerous job fairs,<br />
such as those organised by the Cracow University<br />
of Technology or the Płock Labour Office, at the Virtual<br />
Job Fairs organised by the pracuj.pl job search portal,<br />
and the Academic Job Fairs organised by the Łódź<br />
University of Technology. The Company was also<br />
represented at the Engineering Job Fairs organised<br />
in Warsaw by the BEST Students Association;<br />
• the Company was a co-founder of the 15th edition<br />
of the Płock Job Fairs: “From Education through Innovation<br />
to Employment”. In association with the Płock<br />
Labour Office, the company developed the formula<br />
of the Fairs and prepared a conference that accompanied<br />
the Fairs. The name of the conference was:<br />
“Highly qualified staff as the basis of innovative<br />
economy”.<br />
In order to help our new employees feel comfortable<br />
at work, we have prepared for them an Adaptation<br />
Programme through which they get acquainted with<br />
the Company’s operations and corporate culture, and with<br />
their own duties. The tools of the Adaptation Programme<br />
are adjusted accordingly to the current needs.<br />
For more information, visit:<br />
www.orlen.pl – the Career bookmark<br />
5.4. Professional development<br />
The process of educating and ensuring professional<br />
development of our employees is an investment that<br />
enables us to build a strong market position. The goal<br />
of the Company’s training policy in 2010 was to support<br />
business areas in implementing strategic tasks and goals<br />
through the provision of personnel with the required<br />
knowledge and practical skills.<br />
All employees are subject to regular assessment under<br />
a bonus system based on qualitative and quantitative<br />
performance indicators. Employees are evaluated<br />
on a monthly, quarterly or annual basis, depending<br />
on their position. Performance indicators are individually<br />
planned for each employee. They are determined through<br />
cascading of strategic objectives from the top to the bottom<br />
of the job hierarchy. This way, we have the certainty<br />
that tasks carried out by individual employees are<br />
in line with the Company’s strategic objectives. In 2010,<br />
a skills study was conducted for the entire Company.<br />
The purpose was to diagnose the skills and the effect<br />
was a training and development agenda for the next<br />
year. During the study, the employees and their superiors<br />
had the opportunity to plan an employee’s professional<br />
development in line with his or her professional plans.<br />
Employees are offered participation in various activities<br />
designed to stimulate their skills, development and training,<br />
which translates into their better performance at work<br />
and enables them to achieve their professional plans.<br />
<strong>PKN</strong> ORLEN offers various possibilities of professional<br />
development:<br />
• soft skills training (managerial skills, communication,<br />
innovation, work management);<br />
• specialist (hard) skills training;<br />
• foreign language courses;<br />
• skills training through participation in university or postgraduate<br />
courses, legal advisor internship, ACCA,<br />
CIMA or other courses.<br />
78
Corporate responsibility report<br />
In 2010, more than 8,800 <strong>PKN</strong> ORLEN employees participated<br />
in professional training courses. The number<br />
includes employees who participated in more than one<br />
training course. The average number of hours of training<br />
per employee per category is:<br />
• 28.03 hours – per employee in the category of managerial<br />
jobs,<br />
• 27.84 hours – per employee in other job categories.<br />
Moreover, our employees attend various local and international<br />
conferences, which is an opportunity for them<br />
to broaden and share their knowledge, and to gain new<br />
experience. Conferences are also a great way to learn<br />
about good practice applied by other companies and about<br />
most recent trends in various areas of operation.<br />
In order to ensure the <strong>safety</strong> of its staff, <strong>PKN</strong> ORLEN<br />
organises obligatory training in accordance with relevant<br />
legal provisions. These include HSE training and training<br />
required in order to be allowed to perform specific jobs.<br />
Apart from performing their everyday duties, the employees<br />
had the opportunity to check their skills by managing<br />
a virtual company under the Global Management<br />
Challenge Poland 2010 project.<br />
Moreover, the Company provides outplacement support<br />
for employees made redundant as a result of reorganisation<br />
processes. The Outplacement Programme includes,<br />
among others, a training package consisting of dedicated<br />
training, guaranteed by the Company, and optional training,<br />
suggested by an employee, for employees who decide<br />
to take part in the Voluntary Job Resignation Programme.<br />
Training guaranteed by the Company includes: BLOCK 1<br />
“Parachute – active job search techniques” and BLOCK 2<br />
“Entrepreneurship – starting one’s own business”.<br />
5.5 Employee support provided<br />
by the employer<br />
<strong>PKN</strong> ORLEN employees have access to an extensive social<br />
benefit package:<br />
• co-financing of holidays or spa treatment;<br />
• holiday co-financing for children and teenagers;<br />
• co-financing of sporting and recreational activities;<br />
rehabilitation treatment and cultural and educational<br />
activities;<br />
• non-returnable monetary or in-kind donations;<br />
• housing loans;<br />
• Christmas presents or gift vouchers for children.<br />
In 2010, the Company implemented a programme for<br />
the development of managerial skills, the “Energetic<br />
Leadership” for senior managers. The purpose of the programme<br />
is to develop managerial skills from line management<br />
to strategic management, which requires such<br />
features as being passionate about one’s work or being<br />
able to inspire others to always do better.<br />
Another HR development project is the “Champions<br />
League”, dedicated to production foremen whose duties<br />
include team management. The purpose of the programme<br />
was to broaden the set of tools necessary<br />
for adequate employee management. It consists of three<br />
two-day workshop modules, each of which is devoted<br />
to a different topic: leadership, team management<br />
and communication skills.<br />
Employees receive the aforementioned benefits on the basis<br />
of a work contract, irrespective of whether they work<br />
full or part time.<br />
Polski Koncern Naftowy ORLEN provides its employees<br />
with a broad range of health services which, apart from<br />
occupational medicine, include comprehensive specialist<br />
consultancy, comprehensive diagnostics and lab tests,<br />
outpatient treatment, flu vaccination and rehabilitation.<br />
The Company, in association with Wojskowy Instytut<br />
Medyczny (the Military Institute of Medicine) in Warsaw<br />
and ORLEN Medica in Płock, studies the impact<br />
of the working environment on the health of <strong>PKN</strong> ORLEN’s<br />
employees.<br />
79
Responsible employer<br />
The Company also reacts to various crisis situations affecting<br />
our employees, such as the flood in Poland in 2010.<br />
<strong>PKN</strong> ORLEN and the corporate trade unions initiated<br />
an aid programme using the resources of the Company<br />
Social Benefits Fund. The employees who had suffered<br />
from the flood received non-refundable donations and/<br />
or preferential housing loans.<br />
Employees who find themselves in a particularly difficult<br />
situation may count on psychological support offered<br />
by the Company, which includes counselling, assistance,<br />
therapy and advice on how to cope with professional,<br />
health or family problems The corporate media were used<br />
to advise the employees on how to achieve a work-life<br />
balance.<br />
Our employees have access to an intranet services dedicated<br />
to the HR area, where they can find the necessary<br />
information and frequently asked questions answered<br />
by the personnel of the Office of the Executive Director<br />
for HR.<br />
5.6. Dialogue with the employees<br />
Any cases concerning collective rights and interest at <strong>PKN</strong><br />
ORLEN are resolved in the light of the principle of social<br />
dialogue and respect for mutual interests.<br />
In accordance with the Collective Labour Agreement,<br />
<strong>PKN</strong> ORLEN respects the principle of freedom of activity,<br />
equality of trade unions, and non-discrimination<br />
on the grounds of trade union membership.<br />
Each process leading to termination of work contracts for<br />
reasons not associated with employees is first consulted<br />
with the trade unions. Depending on the process type,<br />
minimum notice period before implementing a process<br />
is 7 to 45 days, which goes beyond the time limits<br />
established in relevant legal provisions.<br />
100% of the employees working for the Company are<br />
covered by collective agreements.<br />
Assistance provided to employees and their families<br />
2210<br />
363<br />
by the Medical Institute of Medicine in Warsaw<br />
Health prevention programmes organised<br />
Influenza vaccination programme<br />
Financial aid from the Company Social<br />
Benefits Funds<br />
Non-refundable donations to employees<br />
who suffered from the flood<br />
40 8 5<br />
Housing loans to employees<br />
who suffered from the flood<br />
80
Corporate responsibility report<br />
A number of initiatives are undertaken to promote<br />
dialogue, including, in particular:<br />
• periodical meetings of the <strong>PKN</strong> ORLEN Management<br />
Board members and the employer’s representatives<br />
with leaders of the corporate trade unions, the purpose<br />
of which is to exchange information, consult and negotiate.<br />
The meetings focus on the most significant social<br />
and employee issues;<br />
• execution of collective agreements with trade unions<br />
concerning the rights of employees affected by reorganisation<br />
programmes and the agreement concerning<br />
outplacement services offered to <strong>PKN</strong> ORLEN employees<br />
under reorganisation processes to be implemented<br />
until 31 December 2012;<br />
• ongoing communication with trade unions concerning<br />
reorganisation measures.<br />
<strong>PKN</strong> ORLEN has also implemented a programme of special<br />
celebrations of 70th, 75th, 80th, 85th etc. birthday<br />
anniversaries of its former employees. The celebrations<br />
include meetings with representatives of the Company’s<br />
top management and giving special diplomas signed<br />
by the President of the Management Board, flowers,<br />
gifts and money.<br />
<strong>PKN</strong> ORLEN has established Senior Club Boards for<br />
its retired employees. The objectives of those Boards<br />
are, above all, to integrate the pensioners, to provide<br />
regular or emergency assistance and to take care of family<br />
members (children in schools). Currently, there are<br />
12 Senior Club Boards in various cities in Poland (Białystok,<br />
Gdańsk, Katowice, Cracow, Lublin, Łódź, Płock, Poznań,<br />
Rzeszów, Słupsk, Szczecin, Warsaw).<br />
5.7. Responsibility for retired<br />
employees<br />
<strong>PKN</strong> ORLEN takes care of appr. 8,000 pensioners<br />
in Poland by:<br />
• providing them with a social and medical package<br />
(e.g. non-refundable donations, co-financing of holidays<br />
or spa treatment or housing loans);<br />
• supporting people in a difficult personal, family<br />
or finan cial situation (e.g. non-refundable donations,<br />
preferential housing loans for flood victims, financial<br />
help for people living on their own and suffering from<br />
a terminal illness);<br />
• providing assistance to the children of former employees,<br />
such as buying their school supplies or co-financing<br />
their holidays;<br />
• access to specialist medical treatment, consultations<br />
and hospitalisation at the Military Institute of Medicine.<br />
Besides, <strong>PKN</strong> ORLEN provides its premises (free of charge)<br />
for the meetings of its former employees: old age and disability<br />
pensioners who are members of various groups,<br />
such as the Polish Association of Diabetics, the Polish<br />
Association of Old Age and Disability Pensioners, the Polish<br />
Tourist Association (PTTK) or the Solidarity movement<br />
(NSZZ Solidarność).<br />
For more information, visit:<br />
The 2009 Corporate Responsibility Report, pp. 39 – 40<br />
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Responsible employer<br />
5.8. Employee volunteering<br />
<strong>PKN</strong> ORLEN supports volunteering projects initiated<br />
and implemented by its employees. Employee Volunteering<br />
is very important for the employees who do good<br />
out of the kindness of their hearts. A growing number<br />
of both projects and volunteers leaves no doubt that this<br />
area of activity matters a lot to the employees of our<br />
Company.<br />
In May 2010, our volunteers helped families from<br />
the Płock District and other regions of the country who<br />
had suffered during the flood. With logistic assistance provided<br />
by the Company, employees of the ORLEN Group,<br />
moved by the suffering of the inhabitants of flooded<br />
area, organised a charity collection. The things they<br />
managed to collect were delivered to the Crisis Management<br />
Headquarters in Gąbin. The collection was<br />
spontaneous, and the organisers managed to collect<br />
many useful things, such as detergents, houseware,<br />
food, clothes, toys for children, pots and pans, and even<br />
stoves and gas cylinders. More than 50 families benefited<br />
from the collection.<br />
In June, <strong>PKN</strong> ORLEN and Płock City Hall, the organisers<br />
of the Chemist’s Day and Płock History Days, organised<br />
a fundraising event for flood victims. During the threeday<br />
celebrations, funds were collected in the streets<br />
of Płock by local scout groups. <strong>PKN</strong> ORLEN employees<br />
actively participated in fundraising and donated their<br />
contributions during company integration meetings.<br />
All the funds raised were allocated to renovate a school<br />
building in Borki which had been damaged by the flood.<br />
In May, another edition of the “Let’s paint a smile” event<br />
was organised. Employees of <strong>PKN</strong> ORLEN’s Retail Trade<br />
West Region gave joy and happiness to children from<br />
the children’s home in Lisków near Kalisz. Our volunteers<br />
equipped the children’s home with three state-of-the-art<br />
computers and internet connection, a barbecue corner<br />
in the garden and stands at a professional beach volleyball<br />
stadium. During the renovation, the children, their<br />
caretakers and volunteers went on a trip to Poznań,<br />
where the kids had a lot of fun.<br />
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Corporate responsibility report<br />
In July and August 2010, the 2nd edition of the “Magic<br />
Schoolbag” event took place. The Company’s volunteers<br />
brought joy and smiles to the faces of more than<br />
250 children, 1st to 3rd grade primary school pupils<br />
from disadvantaged families (beneficiaries of the Social<br />
Care Institution in Płock). Children received colourful<br />
schoolbags with nice notebooks, colourful pencil cases<br />
and other things they need at school. The event was<br />
culminated during the “Back to school time” family picnic,<br />
attended by children and their parents, representatives<br />
of the Social Care Institution in Płock and volunteers.<br />
A number of contests and games with prizes were<br />
prepared for the children. There were also music performances.<br />
The Company volunteers organised interesting<br />
sports and art competitions, too.<br />
In December 2010, the 4th edition of the “Make dreams<br />
come true” event took place. <strong>PKN</strong> ORLEN volunteers<br />
helped make come true the dreams of younger and older<br />
children from family-run children’s home all over Poland.<br />
Once again, we proved to be a Company with a heart<br />
of gold. More than 100 children found the presents<br />
they had been dreaming of under their Christmas trees.<br />
In August 2010, <strong>PKN</strong> ORLEN, in association with<br />
the ORLEN – Dar Serca Foundation, bought 60 sets<br />
of colourful bedding (pillowcases, sheets, covers) and cutlery<br />
for the new children’s ward at the Płock hospital.<br />
More than 20 volunteers delivered the bedding bought<br />
by <strong>PKN</strong> ORLEN to the hospital. They also left teddy<br />
bears for children patients in each room of the ward.<br />
Their involvement in the project once again confirmed<br />
that the Employee Volunteering motto: Together we can<br />
do more is true. The volunteers, full of energy and ready<br />
to help, devoted their free time to take part in the project.<br />
The “Make dreams come true” project is an addition<br />
to the Christmas card competition organised by ORLEN.<br />
Each year, we organise a Christmas meeting for all children<br />
from family-run children’s homes to thank them for<br />
their beautiful Christmas cards and their involvement.<br />
We host more than 500 children and caretakers. We<br />
prepare numerous attractions for our guests. Each author<br />
of a Christmas card receives a bag full of sweets. We also<br />
have attractive prizes for winners of the competition.<br />
For more information, visit:<br />
The 2009 Corporate Responsibility Report, pp. 32 – 34<br />
www.wolontariat.orlen For more inform tion vis pl<br />
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Corporate responsibility report<br />
Awards<br />
• IT Leader for the best application of Information Technology in industry and IT Consolidation within the ORLEN<br />
Capital Group, a project aimed at consolidating IT processes of the Group’s Polish, Czech, Lithuanian and German<br />
Companies.<br />
• Polish Economy Ambassador in the “European Brand” category of the second edition of the competition<br />
organized by Business Centre Club under the honorary patronage of the Minister of Foreign Affairs.<br />
• The best managed Polish company according to the ranking of the Best Managed Companies in CEE 2010<br />
organised by the British Euromoney magazine.<br />
• Leader of the List of 500 largest Polish enterprises published by the Polityka weekly.<br />
• First place in the 4th edition of the Europa 500 list of leading companies in Central and Eastern Europe.<br />
• Winner (for the 9th time) of the Polish edition of the largest consumer survey – European Trusted Brands –<br />
organised by Reader’s Digest.<br />
• Stock Exchange Listed Company of the Year in the Investor Relations category according to a ranking organised<br />
by the Puls Biznesu daily and the Pentor Research Company, and fourth place in the overall classification<br />
of the most dynamically developing companies.<br />
• Winner (for the third time, previous awards – in 2007 and 2009) of the Best Investor Relations in Poland award<br />
granted each year by the specialist international IR Magazine.<br />
• Winner (for the fourth time) of the title of the Most Valuable Polish Brand in the MARQA Ranking of Polish<br />
Most Valuable Brands organised by the Rzeczpospolita daily in association with Nielsen and Acropolis Advisory.<br />
The value of the ORLEN brand was estimated at PLN 3.8 bn, which represents a 4% increase compared<br />
to 2009. The BLISKA brand came 16th and its value was estimated at PLN 699.7 mn.<br />
• European Medal for the Stop Cafe brand in the 21st edition of a competition organised by the Business Centre<br />
Club, Polish Office of the Committee for European Integration (UKIE) and the European Economic and Social<br />
Committee. The medal is awarded to products and services that comply with the highest EU standards.<br />
• The <strong>PKN</strong> ORLEN Biznestank card for SMEs as the Fleet Product of the Year in the Polish Fleet Awards 2010<br />
competition organised by Magazyn Flota periodical and the Fleet Management Institute.<br />
• Golden Customer Laurel 2010 in the Fuel Stations category for the <strong>PKN</strong> ORLEN fleet offering for business<br />
customers (for the second time in succession).<br />
• Winner of the prestigious 2010 Poland Competitive Strategy Leadership Award in the fleet card category,<br />
awarded by a team of experts from the Frost&Sullivan international consulting company.<br />
• Award for an Institution supporting implementation of environmental projects (for the peregrine falcon project)<br />
in the Polish Environmental Pantheon competition (for the second time).<br />
• 2nd place in the Responsible Companies Ranking in the fuel, energy and upstream sector and 8th place<br />
in the overall classification.<br />
• The corporate responsibility report recognised as one of the best reports in the Social Reports 2010 competition.<br />
• 14th place in the “Philanthropy Leaders” competition, in the category of companies that donated the most<br />
money for the purposes of social assistance in 2009.<br />
• <strong>PKN</strong> ORLEN as one of the leaders of the BI-NGO 2010 Index.<br />
• The Queen of Sport Laurel in the Sponsors category awarded by the Polish Athletics Federation for the Company’s<br />
contribution to the development of athletics in 2010 (for the second time in succession).<br />
• The Sport Business award granted to companies directly involved in the development and international promotion<br />
of Polish sport in the Sport Sponsor category – the DEMES award.<br />
• Silver Statuette awarded for a promotional campaign of the Stop Cafe brand (“Zapraszamy – My stawiamy”)<br />
in the Polish edition of the EFFIE Awards 2010, one of the most important marketing competitions in the world,<br />
• The Tourism Crown 2010 awarded for <strong>PKN</strong> ORLEN fuel stations as the tourists’ first choice in a popularity<br />
contest organised by the Polska Wita periodical.<br />
• First place in the Regional Forbes CSR Awards competition in the Mazowieckie region for the highest corporate<br />
responsibility standards.<br />
• 1st place in WarsawScan 2010 – the best information policy and corporate governance.<br />
• 1st place in WarsawScan 2010 – the best website dedicated to investor relations.<br />
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Corporate responsibility report<br />
Certificates<br />
• The Integrated Management System Certificate<br />
• PN-EN ISO 9001:2009 – Quality Management System<br />
• PN-EN ISO 14001:2005 – Environmental Management System<br />
• PN-N-18001:2004 – HSE Management System<br />
• PN-ISO/IEC 27001:2007 – Data Safety Management System<br />
• Quality Management System Certificate – AQAP 2120:2009<br />
• Environmentally Friendly Company Certificate<br />
• Polish Environmental Partner Certificate<br />
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Corporate responsibility report<br />
Useful websites<br />
www.orlen.pl<br />
(Polski Koncern Naftowy ORLEN)<br />
www.fairtrade.net<br />
(Fairtrade)<br />
www.darserca.pl<br />
(Fundacja ORLEN – Dar Serca)<br />
www.unglobalcompact.org<br />
(United Nations Global Compact)<br />
www.wolontariat.orlen.pl<br />
(Employee voluntary services <strong>PKN</strong> ORLEN)<br />
www.odpowiedzialni.gpw.pl<br />
(RESPECT Index)<br />
www.funduszgrantowy.plock.eu<br />
(Grant Fund for Płock)<br />
www.europia.eu<br />
(EUROPIA)<br />
www.funduszgrantowy.pl<br />
(Good Neighbourhood Grant Fund<br />
for Ostrów Wielkopolski Association)<br />
www.orlenbezpiecznedrogi.pl<br />
(ORLEN Safe Roads)<br />
www.bobrka.pl<br />
(Bóbrka Museum of Oil and Gas Industry Foundation)<br />
www.pppt.pl<br />
(Płock Industry and Technology Park)<br />
www.globalreporting.org<br />
(Global Reporting Initiative)<br />
www.peregrinus.pl<br />
(Society for Wild Animals „SOKÓŁ”)<br />
www.concawe.be<br />
(CONCAWE)<br />
www.popihn.pl<br />
(Polish Organisation of Oil Industry and Trade)<br />
www.grasz.pl<br />
(Apprenticeship competition)<br />
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=O<br />
J:L:2010:334:0017:01:PL:HTML<br />
(Full text of the Directive 2010/75/EU of European Parliament<br />
and of the Council on industrial emissions)<br />
www.europarl.europa.eu/sides/getDoc.do?language=<br />
pl&type=IM-PRESS&reference=20080825FCS35404<br />
(Climate package)<br />
www.rc.com.pl<br />
(Responsible Care)<br />
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Corporate responsibility report<br />
GRI Index<br />
Indicator<br />
Strategy and Analysis<br />
Page no.<br />
1.1 5<br />
1.2 5, 7-8, 30, 32-33, 52-53<br />
Organisational profile<br />
2.1 7<br />
2.2 7-9<br />
2.3 7<br />
2.4 6, 88<br />
2.5 6-7<br />
2.6 16<br />
2.7 6-8<br />
2.8 12, 16<br />
2.9 16<br />
2.10 84<br />
Report Parameters<br />
3.1 9-10<br />
3.2 9-10<br />
3.3 9-10<br />
3.4 88<br />
Report scope and range<br />
3.5 9-10, 15, 30-31<br />
3.6 6-10<br />
3.7 9-10<br />
3.8 6-10<br />
3.9 9<br />
3.10 10<br />
3.11 10<br />
GRI Content Index<br />
3.12 87<br />
Assurrance<br />
3.13 10<br />
Governance<br />
4.1 19-20<br />
4.2 19<br />
4.3 19-20<br />
4.4 19-20<br />
4.5 19-20<br />
4.6 20<br />
4.7 20<br />
4.8 6, 72-73<br />
4.9 19-20<br />
4.10 19-20<br />
Commitments to External Initiatives<br />
4.11 32-33<br />
4.12 5, 17, 26, 31, 50, 63<br />
4.13 33-35<br />
4.14 15<br />
4.15 14, 30-31<br />
4.16 30-31<br />
4.17<br />
16-17, 30-32, 35-39, 63-64,<br />
82-83<br />
Indicator<br />
Page no.<br />
Economic Performance indicators<br />
EC1 12<br />
EC2 52-53, 65<br />
EC5 76<br />
EC6 25-26<br />
EC7 76<br />
EC8 35-39, 79-82<br />
Environmental Performance Indicators<br />
EN1 12, 65-66<br />
EN3 66<br />
EN4 66<br />
EN6 64-65<br />
EN8 55<br />
EN9 55<br />
EN11 54<br />
EN12 54<br />
EN15 63<br />
EN16 58-59<br />
EN20 58-59<br />
EN21 55-56<br />
EN22 56-57<br />
EN23 54<br />
EN24 58<br />
EN26 20-21, 64-65, 67-69<br />
EN28 54<br />
EN30 61-62<br />
Labour Practices and Decent Work<br />
LA1 74, 76<br />
LA2 74-76<br />
LA3 79<br />
LA4 81<br />
LA5 81<br />
LA6 43<br />
LA7 44-46<br />
LA9 42-43<br />
LA10 78-79<br />
LA11 78-79<br />
LA12 78<br />
LA13 19, 74-76<br />
Human Rights Performance Indicators<br />
HR2 26<br />
HR4 73<br />
HR5 81<br />
HR6 73<br />
HR7 73<br />
HR9 73<br />
Society Performance Indicators<br />
SO5 33-35<br />
SO7 27<br />
Product Responsibility Performance Indicators<br />
PR3 43<br />
PR5 27-28, 30-31<br />
PR6 26-27<br />
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Corporate responsibility report<br />
Contact us:<br />
Polski Koncern Naftowy ORLEN Spółka Akcyjna<br />
Chemików 7, 09–411 Płock<br />
Headquarters:<br />
phone: +48 (24) 365 00 00, fax +48 (24) 365 40 40<br />
www.orlen.pl<br />
Warsaw Office<br />
Warsaw Trade Tower, Chłodna 51, 00–867 Warszawa<br />
Headquarters:<br />
phone: +48 (22) 778 00 00, fax +48 (22) 695 35 17<br />
Corporate Social Responsibility Team<br />
Barbara Tęcza<br />
phone: +48 (22) 778 05 92, e-mail: barbara.tecza@orlen.pl<br />
Ethics Officer<br />
Ewa Bielicka-Piesyk<br />
phone: +48 (24) 256 90 95, e-mail: rzeczniketyki@orlen.pl<br />
Press Office in Płock<br />
Beata Karpińska<br />
phone: +48 (24) 256 92 92, (24) 256 92 93<br />
e-mail: media@orlen.pl<br />
Useful contact e-mail addresses:<br />
media@orlen.pl<br />
Press Office in Warsaw<br />
phone: +48 (22) 778 01 09, (22) 778 01 10<br />
sponsoring@orlen.pl<br />
zarzad@orlen.pl<br />
naszklient@orlen.pl<br />
88