Responsible business

Similarly to the work done by Ignacy Łukasiewicz, which indeed was ahead of the legal obligations and regulations, at present, corporate social responsibility (CSR) is – by definition – an activity pursued by a company voluntarily, not forced by any legislation. The essence of corporate social responsibility is to go beyond the obligations imposed by the law, i.e. to do more than the law requires. We can say that social responsibility and sustainable development are company’s philosophy of doing business, which incorporates activities aimed at developing the company, but also at benefiting the immediate or more distant environment, or – generally – benefiting its stakeholders. PGNiG S.A. and, more broadly, the companies of the PGNiG Group perceive CSR as a long-term strategic approach. Our CSR activities cover four key areas: Market, Work Place, Local Communities and Natural Environment.

We inherited excellent traditions in the area of CSR, started by Ignacy Łukasiewicz, pioneer of the global oil industry, as early as in the mid 19th century. In 1870s, at Mr Łukasiewicz’s initiative, the so-called Barcki Cash Banks (Barckie Kasy) were founded, the first institutions in Europe offering social security insurance in case of sickness, disability or old age. These initiatives enabled workers to use free medical care, retained wages when on a sick-leave, and entitled them to an old age pension after having worked for 20 years in the mine. Families of casualties were provided with financial assistance and a refund of funeral expenses. The workers referred to Ignacy Łukasiewicz as “father”, a clear sign of the close relationship with the employer. Apart from the responsibility to his employees, Ignacy Łukasiewicz showed a lot of understanding for the needs of the local community. He was known for being a great benefactor and philanthropist. Therefore, it is a natural consequence that Ignacy Łukasiewicz became patron of the PGNiG Foundation, established in 2004. However, we regret that he is still largely unknown to the Polish society, yet waiting to be re-discovered.

As a company listed on the Warsaw Stock Exchange, PGNiG SA operates in accordance with the Code of Best Practices for WSE Listed Companies, striving to outperform the common practice in this area. Our efforts in this respect have been recognised, which was evidenced by a commentary published in Gazeta Prawna on January 12th, during this year’s gas crisis: “Some companies have shown that they are good at using the tools provided by the stock exchange. The most up-to-date information on the gas crisis in Poland is available from PGNiG SA’s current reports. The company publishes them even several times a day, each time indicating the exact time at which the information originated. The time indicated on the reports, including those published on January 6th and 7th, is not distant from the time of the reports’ release [while we need to bear in mind that each report must be signed off by the company’s officers authorised to represent the company by virtue of an entry in the National Court Register]. What is more, shareholders of other companies could find out from PGNiG’s current reports which public companies will receive less gas. We should only hope that PGNiG SA will continue to report to investors on its current standing with such care, and that others will follow suit.”

The Environmental Management Systems implemented by the companies of the PGNiG Group have been certified for compliance with the PN-EN ISO 14001 standard. PGNiG S.A. promotes new solutions and technologies. One of them is the use of gas in air conditioning installations, which will help heat and cool buildings at competitive rates relative to the costs of other energy sources. In its business activity, PGNiG SA promotes the use of compressed natural gas (CNG) as an environmentally-friendly fuel for vehicles. PGNiG SA owns the only filling station in Poland where vehicles can be fuelled with compressed natural gas. This application of CNG is viable for reasons of environmental protection and economy of use. Worldwide, approx. 7.3m vehicles run on CNG, with the segment rapidly growing. At present, vehicles fuelled with CNG are used for public transport and by private carriers in Poland. PGNiG SA plans to expand its network of CNG stations in the years to come, which will help CNG become a more popular fuel for vehicles.

PGNiG SA’s branch, called the Central Measuring and Research Lab, is the only body in Poland and one of two bodies in Europe accredited to perform tests regarding CO2 emissions from natural gas combustion.
PGNiG SA performed successful trials of CO2 storage. Development of this competence is inherent in the Group’s business strategy.

As a major player in the sector, we provide support to institutions of secondary and university-level education, and participate in discussions and transformations which are vital for the sector. We can boldly say that no major conference concerning the industry can take place without the participation of our representatives.

We abide by the principles of sustainable development also in relation to the care for the natural environment, which is a vital element of our strategy. The companies of the PGNiG Group naturally have an impact on the environment which results from the type of their business. Practically every aspect of PGNiG SA’s activities has to do with natural resources. However, the use of natural gas, produced by the Company, helps to substantially reduce the air pollution. The Companies of the PGNiG Group engage in environmental activities everywhere they operate – both in Poland and abroad. The importance attached to environmental issues by the companies is best evidenced by the fact that they voluntarily join programmes aimed at self-reduction of adverse environmental impact. The companies of the Group monitor and liquidate land contamination and pitch holes, liquidate old drilling pits, liquidate mining pits and boreholes, reclaim land formerly used for mining (the adverse effect of drilling waste on the environment was limited by using new technologies of solidifying the drilling waste (i.e. rock material) and separating liquid waste from the drilling fluids). We report information on greenhouse gases, the volume of used water and amount of produced waste. In 2008, we released the first Environmental Report (for 2007) which describes our activities in this area.

If we look at the corporate social responsibility taken by the companies of the PGNiG Group through the perspective of their responsibility towards the employees, we can see that it is PGNiG SA which sets the highest standards in this vital area. It is true both for the social dialogue, i.e. the relationship with the trade unions, and the benefits offered to the employees. The employees are provided with medical care, health rehabilitation programmes, pension schemes and a rich benefits package. PGNiG S.A. supports the development of its employees who attend various training courses in Poland and abroad, as well as post-graduate, regular and MBA studies. The Company is keen on promoting physical fitness among its employees, and either organises or subsidises various types of active leisure.

Health and Safety at the PGNiG Group deserves its own chapter. Let the facts bear witness to the high standards in this area: the companies of the Group are present on the oil fields in Europe, Africa and Central Asia, executing orders of the world’s largest companies. This means that the certificates held by the Group companies concerning the quality systems and Health, Safety and Environment management systems comply with the most stringent international standards.

PGNiG SA supports a large number of initiatives aimed at promoting the Polish science and culture, and protecting and preserving the national heritage for future generations, both at the national and local levels.

PGNiG SA oversees the Gas Industry Museum in Warsaw, located in the historical building of the town gas plant at ul. Kasprzaka, which dates back to 1888. The Company also sponsors the Ignacy Łukasiewicz Memorial Museum of Oil Industry in Bóbrka where the global career of oil started.

The Museum continues to operate thanks to our subsidies. In 2009, the Management Board of PGNiG S.A. resolved to allocate additional, substantial funds to the Museum, to help create a modern display of the gas industry objects in Bóbrka. Another exceptional museum – the Gas Industry Museum in Paczków – operates thanks to the support from the Górnośląski Gas Company. This is the only place in Poland where entire production facilities have been preserved intact. What is interesting, the museum houses the largest collection of gas meters in Europe, of which the majority is in good working order.

For several years, PGNiG SA has supported charitable causes through its Ignacy Łukasiewicz Foundation which works with, among others, Caritas Polska. As part of a strategic partnership, the Foundation has taken care of 300 most needy children in Poland on a long-term basis under the Wings for Each Day programme (Skrzydła na co dzień). It is a strategic partner of the Student Volunteers programme (Wolontariat Studencki), designed by the Polish-American Freedom Foundation and executed by the Klanza Polish Association of Educators and Animators (Polskie Stowarzyszenie Pedagogów i Animatorów „Klanza”), an NGO looking for new solutions aimed at changing the reality. Apart from these two major programmes, the PGNiG Foundation supports other non-governmental organisations and associations which pursue similar objectives.

The Foundation provides financial aid to hospitals, healthcare institutions, numerous foundations and orphanages. Charitable work is done by practically all branches and companies of the PGNiG Group. PGNiG S.A. attaches great importance to being an active member of local communities in the areas where its branches and companies operate. We believe that the members of the PGNiG Group can best identify the needs of local communities.

The PGNiG Group mission, being part of the Group new business strategy, contains the following statement: “working for the sake of our shareholders, customers and employees, we intend to be a reliable and transparent partner, fostering the Company’s development and increasing its value in accordance with the principles of sustainable development.” This means that we pay attention not only to the results of our activities, but also to the way we act to accomplish our business objectives. Obviously, that does not amount to the fact that acting in accordance with sustainable development principles has no positive impact on the Company’s finances and its economic value growth.

In 2008, along with announcing the new business strategy, the PGNiG Group launched a new project aimed at formulating a social responsibility policy. Following the good example of large integrated energy and fuel companies and being deeply convinced of the importance of corporate responsibility, the PGNiG Group resolved, as the first company in the gas sector in Poland, to implement a comprehensive sustainable development strategy. The PGNiG SA Head Office and subsidiaries were involved in the strategy development. The Sustainable Development Strategy is scheduled to be officially announced in June 2009. The first Social Report of the PGNiG Group is planned to be published at the same time. The CSR strategy of the PGNiG Group, combining ethical and environmental issues with efficiency, aims to be a combination of the best policies in this field, especially pro-environmental ones. We intend to include in it objectives in agreement with PGNiG’s business policy as well as obligations arising under our membership in the Global Compact and the Responsible Business Forum (FOB).