The Sustainable Development and Corporate Social Responsibility of the PGNiG Capital Group created a firm basis for pursuing the Company's mission and strengthening its operations in six key areas:

• environmental protection,
• customer service – by improving the quality of services provided to the existing and future customers,
• creating a safe and friendly workplace,
• cooperation with social and business partners based on trust and openness,
• search for new business opportunities,
• effective communication and marketing.

To effectively pursue those goals, specific indicators, process owners, deadlines and stakeholder groups were identified in each of the above areas.
PGNiG 's branches and the Group's subsidiaries implement a variety of socially responsible measures based on their strategic goals and extensive experience. Those measures can be divided into four main groups:

1. market / customer
2. society / local community / partners
3. environment
4. employees

In 2014, PGNiG staged various projects and events which strengthened its relations with stakeholders and enabled us to promote the philosophy and principles of sustainability in collaboration with other large enterprises. PGNiG's branches and members of the Capital Group carried out more than 50 initiatives in 2014, most of which involved educational projects addressing health, safety and environmental issues.

The most innovative undertakings included:

• "Miners in kindergartens / schools" campaign (PGNiG Branch in Zielona Góra),
• A Day with a Dragon for the Association for the Mentally Challenged (PGNiG Obrót Detaliczny in Pomorze Region),
• Exalo Drilling SA Workshops during the 12th Baltic Festival of Science in Gdynia (Exalo Drilling SA),
• Recycling Festival (PGNiG Retail Branch in Karpaty Region),
• Earth Days – Kraków Ecological Exhibition (PGNiG Obrót Detaliczny in Karpaty Region).
• Cultural events provide the Capital Group with numerous opportunities for working with local communities. During the 18th Summer Festival of the Kraków Opera, we staged a unique performance of the "Fiddler on the Roof" in the Kraków gasworks.

In September 2014, PGNiG partnered up with the THINKTANK to launch the Responsibility Year. The Company and its partner exchanged their CSR experiences in numerous debates, workshops and publications.

Those are only selected examples of our commitment to sustainability.

Such a multitude of goals and sustainable business initiatives requires an effective system for  managing CSR processes. PGNiG Capital Group's Sustainable Development and Corporate Social Responsibility Strategy clearly defines the management structure and distributes the relevant competencies and tasks across the system.

The Chief Sustainability Executive is responsible for guiding and supervising CSR initiatives at the level of the Capital Group. Regional Sustainability Coordinators oversee the implementation of the CSR strategy in PGNiG's branches and the Group's subsidiaries.
 

The PGNiG Capital Group conducts a wide range of operations during which it interacts with numerous and highly diverse stakeholder groups. Each group has specific needs and expectations. We make every effort to establish dialogue and cooperation in a way that best meets the needs of both parties. This is the only sound approach to making business decisions that will contribute to the sustainable growth of the Company and the ecosystem in which it operates.

To effectively build strong and positive relationships with key stakeholder groups, we have developed a map of stakeholders along the value chain and identified the measures that are implemented within and outside the Company.

The Capital Group changes and grows over the years, and we are fully aware that our stakeholders' needs and expectations also change over time. For this reason, we regularly update the map of our stakeholders, analyze the strength and scope of our interactions, stakeholders' activity levels, their interest in our operations and attitudes towards the Capital Group or its subsidiaries. The key stakeholder groups were identified for the first time in 2008 during preparatory workshops aiming to develop the SD and CSR Strategy. This process is repeated when new CSR initiatives are launched.

The map of key stakeholder groups was analyzed, and the most effective communication strategies were described in 2015 during workshops dedicated to the preparation of PGNiG Capital Group's CSR Report for 2014. The updated map was used to select 200 representatives from all stakeholder groups who were then invited to participate in a survey of their expectations regarding our CSR report. 
 

Shale gas exploration stirred great hopes but also much controversy ever since it entered mainstream debate in Poland. Although many Poles realize that domestic shale gas resources could contribute to Poland's energy independence, the subject has given rise to numerous myths as well as social opposition.

In mid-2011, PGNiG decided that special tools and strategies have to be developed to communicate its shale gas exploration operations to the public. The Company embarked on social dialogue to address this issue. It appointed the Team for Dialogue and Communication Concerning Shale Gas Exploration which closely works with geologists, drilling experts, environmental protection specialists, legal advisers, communications and PR exerts.

The process of mapping and building the dialogue concerning shale gas exploration was based on Stakeholder Engagement Standard AA1000SES which relies on the following three principles:

• Inclusivity – stakeholders participate in developing solutions to challenges that follow from interactions with the company,
• Materiality – the relevance and significance of an issue for different stakeholder groups and for the company is evaluated,
• Responsiveness – the company responds to issues raised by the stakeholders (dialogue, decisions, activities).

We have identified the key issues in the following four areas that need to be communicated to our stakeholders: safety, environment / tourist attractiveness, compensation / income, social participation / social issues. The PGNiG Capital Group makes continuous efforts to disperse any doubts concerning the safety of shale gas production sites, mining methods, environmental protection, protection of underground water resources, our commitment to local communities, substances used in the process of shale gas production, waste handling, as well as processes initiated when the presence of shale gas is confirmed in the searched locations. The above issues are explained by the PGNiG Capital Group in accordance with standard AA1000SES.

In 2014, the PGNiG Capital Group relied on both tested and innovative communication tools to establish and maintain social dialogue. In all our efforts, we support local communities in responding to the residents' most pressing needs. We build positive relations with our neighbors by supporting schools, developing new roads and sponsoring major events in the local arena. Detailed information about our educational activities and social dialogue aiming to communicate information about shale gas exploration is available in the CSR Report of the PGNiG Capital Group for 2013 at http://www.pgnig.pl/reports/raportspoleczny2013/ and www.polishshalegas.pl.

The key social communication activities conducted in 2014 were:

• meetings with the administrator and residents of a municipality in the Lublin Region where shale gas mining sites were located,
• consultations for residents of that municipality,
• meetings and workshops attended by Lotos representatives to share good practices in communicating information about exploration and mining projects to the public,
• lectures regarding unconventional gas exploration for seniors enrolled at the University of the Third Age in Wejherowo and forest rangers in the Wejherowo Forest District.

The PGNiG Capital Group actively promotes sustainable and responsible business practices as a member of many industrial organizations and associations. All members of the Capital Group participate in the dialogue concerning the development of a modern and responsible energy sector in Poland. PGNiG SA alone belongs to more than 70 industrial organizations in Poland and other countries, including organizations of strategic significance such as EUROGAS, the International Gas Union, Gas Infrastructure Europe and the European Union of the Natural Gas Industry.

A full list of industrial organizations and associations of which PGNiG is a member is available here.

The PGNiG Capital Group eagerly participates in projects that are directly linked with the philosophy of corporate social responsibility and sustainable development. We are part of the UN Global Compact initiative, and we incorporate its Ten Principles in the area of human rights, labor, environment and anti-corruption into our operations, policies and procedures.

Over the past 6 years, PGNiG has been a member of the Responsible Business Forum, a think-and-do-tank that promotes the CSR concept in Poland. As an RBF member, we give support to the Responsible Business League program for students which aims to educate a new generation of managers, entrepreneurs, social animators, change navigators and, above all, responsible people.

On 19 November 2009, PGNiG SA jointed the elite group of companies listed on the Warsaw Stock Exchange in the Respect Index of socially responsible businesses.

PGNiG SA is also a signatory of the Diversity Charter, a written declaration signed worldwide by organizations, companies and institutions in a commitment to ban workplace discrimination, actively create and promote diversity, and engage all employees, business and social partners in such measures.

The codes and rules implemented by PGNiG are the last, but equally important pillar of the CSR strategy in the Capital Group. The key document is the Code of Ethics of PGNiG SA which lists the core values necessary for building a strong and healthy internal ecosystem.

The Code of Ethics describes ethical standards in four categories: responsibility, partnership, reliability and quality. Those values were selected as most important by our employees in a satisfaction survey. The observance of the Code of Ethics is overseen by the Ethics Officer who resolves the employees' queries and deals with any violations of ethical conduct in the Company. The Ethics Officer runs an ethics blog dedicated to ethical conduct and other issues. Several years ago, PGNiG introduced the System for Managing the Ethics Program and the Ethics Committee. The Ethics Committee is composed of strategic area managers who are responsible for implementing ethical conduct standards. Committee members meet at least twice a year. Members of the PGNiG Capital Group develop their own codes and appoint their ethics officers. 

Starting this year, board members and managers of PGNiG's branches and Capital Group members will participate in training on anti-mobbing policies and other ethical issues.

In addition to the Code of Ethics, the PGNiG Capital Group has also implemented the "Code of practice for responsible shale gas and crude oil production in PGNiG". This document sets operating standards for companies that explore and mine hydrocarbons. It prescribes the principles for building good relationships with local communities in areas where shale gas is produced and lists examples of good practices in this area.