2010 THE BALTIC SEA LITHUANIA Sierakow Project Karbon (Carboniferous) Project Kambr (Cambrian)...

2010

RESPONSIBLE DEVELOPMENT

Corporate Responsibility Report

Polski Koncern Naftowy ORLEN Spó³ka Akcyjna

2

Table of contents

Table of contents

Letter of the President of the Management Board of PKN ORLEN SA ................................................................................5

What is worth knowing about PKN ORLEN?................................................................7

1. Market............................................................................................................................13 PKN ORLEN – a brand open to dialogue ...................................................................................................14

1.1. PKN ORLEN on the Capital Market ............................................................................................................................16

Corporate Governance ..............................................................................................................................................16

Relations with the capital market ..............................................................................................................................17

RESPECT Index ..........................................................................................................................................................18

1.2. The Supervisory Board ...............................................................................................................................................19

1.3. Integrated Management System ................................................................................................................................20

Complianceaudit–internalandexternalverificationoftheManagementSystems ...................................................22

Development of the Integrated Management System ................................................................................................23

Process Management ................................................................................................................................................23

1.4. Relations with suppliers .............................................................................................................................................25

1.5. Responsible marketing ..............................................................................................................................................26

1.6. Service Standards ......................................................................................................................................................27

2. SOCIETY......................................................................................................................29

PKN ORLEN as a responsible citizen................................................................................................................30

2.1. Expectations of our stakeholders ...............................................................................................................................30

2.2. Risk Management .....................................................................................................................................................32

2.3. Participation in public life ..........................................................................................................................................33

2.4. Participation in local and European projects .............................................................................................................35

2.5. National heritage ......................................................................................................................................................35

2.6. Sports .......................................................................................................................................................................36

2.7. Charity ......................................................................................................................................................................37

2.8. ORLEN “Safe Roads” ................................................................................................................................................40

3. SAFETY........................................................................................................................41 Safety – the key to development................................................................................................................42

3.1. Safety Policy at PKN ORLEN ......................................................................................................................................42

3.2. More than HSE .........................................................................................................................................................43

Product safety ...........................................................................................................................................................43

Employee safety ........................................................................................................................................................44

ORLEN Group regions and companies .......................................................................................................................46

Safety of service suppliers and outsourced contractors ..............................................................................................47

Technology safety and process safety ........................................................................................................................47

3.3. Fire Protection – In-House Fire Brigade ......................................................................................................................48

3.4. Transport Safety – the SPOT system ..........................................................................................................................50

3.5. Disseminating the idea of safety – education ............................................................................................................50

3

Corporate responsibility report

4. Environment.................................................................................................................51 PKN ORLEN activities and their impact on the climate and environment..............................................52

4.1. Climate changes – challenges ..................................................................................................................................52

4.2. In the heart of Poland .............................................................................................................................................54

4.3. Water and wastewater management .........................................................................................................................55

4.4. Waste .......................................................................................................................................................................56

4.5. Greenhouse gas emissions ........................................................................................................................................58

4.6. Expenditure and investments in environmental protection .........................................................................................61

4.7. Together, we change the world .................................................................................................................................63

4.8. Responsible Care .......................................................................................................................................................63

4.9. Green Company ........................................................................................................................................................64

4.10. Responsible production .............................................................................................................................................64

Pro-environmental effects in terms of fuel production ...............................................................................................67

5. Workplace...................................................................................................................71 Responsible employer...................................................................................................................................72

5.1. Code of Ethics and core values as the foundation of our operations .........................................................................72

5.2. PKNORLENemployeefigures ....................................................................................................................................74

5.3. Recruitment ..............................................................................................................................................................77

5.4. Professional development ..........................................................................................................................................78

5.5. Employee support provided by the employer .............................................................................................................79

5.6. Dialogue with the employees ....................................................................................................................................80

5.7. Responsibility for retired employees...........................................................................................................................81

5.8. Employee Volunteering..............................................................................................................................................82

Awards.... ................................................................................................................................................................................84

Certificates ..............................................................................................................................................................................85

Useful websites .......................................................................................................................................................................86

GRI Index .................................................................................................................................................................................87

Contact us ...............................................................................................................................................................................88

5

Letter of the President of the Management Board of PKN ORLEN SA

Dear Sir or Madam,

the essence of socially responsible business practices

is to maintain a balance between economy, ecology

and ethics, and to reconcile the interests of the Company

and the needs of its environment. The fact that those ob-

jectives are strongly visible in the strategy of our Company

proves that we take corporate responsibility seriously and

perceive it as a commitment towards all our stakeholders.

We are aware that without a wonderful team of workers

and associates, local societies positively disposed towards

our efforts, trusted business partners and loyal customers

PKN ORLEN’s success would not be possible. This is why

we create a friendly work environment, promote safety

on the roads and engage in the development of Płock,

thecitywhereourlargestrefineryislocated.

One of the proofs of our social sensitivity and responsibility

is our 8-year participation in the Global Compact pro-

gramme initiated by the UN Secretary-General. According

to the assumptions of the programme, we respect human

rights and the standards of work and environmental

protection, and we support anti-corruption activities.

We improve environmentally-friendly technologies be-

causeweareawarethatwhatwedotodayinfluences

our future and the future of the generations to come.

We have been involved in the Responsible Care Pro-

gramme for the last fourteen years. During that period,

we have implemented more than a hundred projects,

some of which went far beyond the markets where our

business operates.

To our satisfaction, PKN ORLEN has been once again

includedintheRESPECTIndex,thefirstPolishindexofso-

cially responsible companies. The inclusion of our company

in the consecutive editions of the index is a reason to be

proud, but also an obligation and motivation to continue

our efforts to promote the local environment. We believe

that for our shareholders, PKN ORLEN’s presence in the elite

groupofstockmarketcompaniesisanotherconfirmation

that they were right to invest in a Company that combines

effective business management with responsibility for

the environment in which it operates.

We would like to thank you for your support for our social

activities. We are pleased to note that more and more

Customers are asking for environmentally-friendly fuels

atourfuelstationsandorderFairtradecertifiedcoffeeat

the Stop Cafe bars. We are also very happy to report that

participants of the VITAY programme share our concern

for children in family-run children’s homes and donate

a portion of their points to them. Another generation

of peregrine falcons that hatched in the nesting boxes

at the premises of the Production Plant in Płock lets

us believe that we have achieved a balance between

the needs of contemporary people and respect for

the nature. There are plenty of other examples that

could be found in PKN ORLEN to prove that it is worth

to be a socially responsible company.

The Report youwill find enclosedpresents last year’s

achievementsinthefieldofcorporateresponsibilityaswell

as our future commitments. We hope that the Report

will reassure you that we are a trustworthy Company.

To conclude, I would like to emphasize that as much

asweare satisfiedwithcurrentachievements,weare

also aware of the huge amount of work that still needs

to be done in a dynamically changing world.

Dariusz Jacek Krawiec

President of the Management Board of PKN ORLEN

WARSAW

PLOCK

PRAGUE

BERLIN

MAŽEIKIŲ

VILNIUS

HAMBURG

6

What is worth knowing about PKN ORLEN

Our motto

Whenever you need us.

Our mission

Aiming to become the regional leader, we ensure

long-term value creation for our shareholders

by offering our customers products and services

of the highest quality.

All our operations adhere to ’best practice’

principles of corporate governance and social

responsibility, with a focus on care for our em-

ployees and the natural environment.

POLAND

THE BALTIC SEALITHUANIA

Sierakow Project

Karbon(Carboniferous) Project

Kambr (Cambrian) Project

7


What is worth knowing about PKN ORLEN?

PKN ORLEN is a regional leader of the crude oil industry

andtheleadingproduceranddealerofrefineryandpet-

rochemical products. The main activities of the Company

include the processing of crude oil into petrol, diesel

fuel, furnace oil, aviation fuel, plastics and petrochemi-

cal products.

The Company manages seven refineries in Poland,

theCzech Republic and Lithuania, including refinery

and petrochemical facilities located in Płock, Poland, which

havebeenrankedamongthemostmodernandefficient

facilities of the kind in Europe.

PKN ORLEN has the largest fuel station network in Cen-

tral Europe with 2,601 fuel stations in Poland, Germany,

the Czech Republic and Lithuania. The ORLEN retail

network is based on an effective logistics infrastructure

consisting of over- and underground storage facilities

and a network of long-distance pipelines

Refinery

TheORLENGrouprefinerysegmentconsistsofthere-

finery plant in Płock, production assets of Rafineria

Trzebinia and Rafineria Nafty Jedlicze,ORLENAsfalt,

ORLEN Eko (Poland), the Litvinov, Kralupy and Paramo

refineries(theCzechRepublic),andtheORLENLietuva

refinery(Lithuania).

Petrochemistry

The ORLEN Group petrochemical segment consists

of selected units of the Petrochemical Production Plant

in Płock and the following companies: Basell Orlen

PolyolefinsandUnipetrol.Wearethesolemanufacturer

ofolefins,polyolefinsandmostpetrochemicalsinPoland

and the Czech Republic. The high quality of our prod-

uctsandourefficientdistributionnetworkmakeusone

of the strongest market players in this part of Europe.

Oil

The ORLEN Group oil segment consists of ORLEN Oil

(Poland) and Paramo (the Czech Republic).

Chemistry

The ORLEN Group chemical segment comprises ANWIL

in Włocławek and its subsidiary, Spolana, based in Nera-

towice, the Czech Republic (ANWIL Group).

Upstream

This area is entirely operated by ORLEN Upstream.

The company coordinates, among others, exploration

and production projects at the Baltic Shelf in the Latvian

Economic Zone, in the Lublin region and in the Polish

Lowlands as well as projects aimed at the exploration,

recognition and documentation of unconventional shale

gas resources.

8


Power engineering

We have started developing a new segment. We have

establishedaPowerEngineeringOfficeinordertocoor-

dinate all activities related to power engineering within

the ORLEN Group.

Wholesale

ORLEN Group deals in wholesale of fuel and non-fuel

products in Poland, the Czech Republic, Germany, Slo-

vakia and Lithuania. The Group’s wholesale segment

consists of PKNORLENwholesale units, five Regional

Market Operators, Petrolot, ORLEN Gaz (Poland), Uniraf

Slovakia (Slovakia), Unipetrol BUI (the Czech Republic),

ORLEN Lietuva (Lithuania, Ukraine, Poland, sea sales).

Retail

ORLEN Group offers its products for retail sale in Po-

land, Germany, the Czech Republic and Lithuania.

The entities responsible for managing commercial opera-

tions in the respective markets are PKN ORLEN, ORLEN

Deutschland, Benzina and Ventus Nafta.

Logistics

The ORLEN Group’s infrastructure, which ensures a smooth

andeffectiveflowofrawmaterialsandready-madeprod-

ucts, consists of Fuel Terminals, land and offshore trans-

shipment facilities, a network of industrial raw material

and product pipelines as well as road and rail transport.

All products are available both to wholesale and retail

customers. We do our best to make sure that our cus-

tomersandbeneficiariesaresatisfiedwithourproducts

and services.

Our major brands

ORLEN

Verva

FLOTA

Club Vitay

Club Super Vitay

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Stop Cafe

Ekoterm Plus

BLISKA

About the Report

This is already the seventh edition of PKN ORLEN Corpo-

rate Responsibility Report, and the third one developed

in accordance with B-level GRI G3.1 guidelines. This

tells the reader how advanced the Company is in terms

of the number of indicators and the possibilities for fur-

ther extension of reporting in the following years. It also

corresponds to the level of incorporation of the GRI G3.1

Guidelines and GRI Reporting Framework.

For more information, visit:

The 2009 Corporate Responsibility Report, pp. 14 –15

For more information on application levels and the GRI

G3.1 Guidelines, visit:

http://www.globalreporting.org.

This Report presents the most important events in PKN

ORLEN in 2010. Our regular readers will note that this time

weputmorefocusonactivitiesinthefieldofcorporate

responsibility of the ORLEN Capital Group.

Among the 117 Capital Group companies, 80 are sub-

sidiaries, of which 36 are direct and the other 44 indirect.

At the end of 2010, the ORLEN Group included 4 joint

ventures, 2 of which were associated with the Group

directly and 2 indirectly.

Total number of ORLEN Capital Group companies

Year 2008 2009 2010

Number of directly associated companies

Number of indirectly associated companies

106

37

69

101

35

66

95

36

59

Mandatory

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Internal declaration

Compliance with GRI 2002 C C+ B B+ A A+

OptionalThird party verification

10


The table presents the total number of companies asso-

ciated with PKN ORLEN.

TheReportasawholewasnotverifiedbyanexternal

auditor.

The 2010 Report contains a revised employment

level as on 31 December 2009, due to the fact that

the 2009 Report quoted the total number of persons

employed in 2009 instead of the number of employees

as on 31 December.

11


report is comparable to the previous editions.

The 2010 CSR Report, which is once again

an interesting and comprehensive presentation

of the company’s objectives and achievements

in the field of responsible business management,

shows that PKN ORLEN is not only aware

of the challenges, but also knows how

to tackle them.

What are the challenges facing companies

that want to report their social involvement

in a regular, accurate and attractive way?

PKN ORLEN has been actively involved in corporate

social responsibility for many years, and is one

of the leaders of social and environmental

reporting in Poland. Being one of the leading

Socially Responsible Companies, listed

in the RESPECT Index, ORLEN proves that corporate

responsibility is a way of managing business which,

in this particular company, is reflected

by its day-to-day business operations.

Judging by the consecutive CSR reports, which

PKN ORLEN has been issuing for almost ten years

now, the company is dynamically developing not

only its business, but also its strategic approach

to corporate responsibility for the internal

and external environment.

When a company has been reporting its data

for so many years in a row, it inevitably faces

the challenge of presenting the data in an ever

more innovative and attractive manner,

at the same time making sure that each

Irena Pichola

Leader of the Sustainable Development

and Corporate Responsibility Team of PwC Polska Sp. z o.o.

12


2008 2009 2010Selectedfinancialdata(in‘000PLN)

I Total sales revenue 57,224,864 47,481,278 62,215,581

II Operating income 636,354 790,306 2,756,827

III Profit/(loss)beforetax (2,063,057) 1,907,812 2,826,324

IV Netprofit/(loss) (1,570,947) 1,635,885 2,357,127

V Netoperatingcashflow 1,292,773 2,806,414 3,895,427

VI Netinvestingcashflow (1,993,857) (1,615,776) (2,568,977)

VII Netfinancingcashflow 975,898 335,897 (1,881,372)

VIII Net increase/(decrease) in cash 274,814 1,526,535 (554,922)

IX Netprofit/(loss)anddilutedprofit/(loss)perordinaryshare(inPLN) (3.67) 3.82 5.51

as on 31 December 2008



X Fixed assets 20,427,025 23,006,696 24,663,871

XI Current assets 11,572,579 14,009,655 15,230,187

XII Total assets 31,999,604 37,016,351 39,894,058

XIII Long-term liabilities 1,216,318 10,368,702 8,350,861

XIV Short-term liabilities 15,401,410 9,514,751 12,004,148

XV Equ ty 15,381,876 17,132,898 19,539,049

XVI Share cap tal 1,057,635 1,057,635 1,057,635

XVII Number of shares 427,709,061 427,709,061 427,709,061

XVIII Book value and diluted book value per share (in PLN) 35.96 40.06 45.68

ThroughputandoutputofthePłockRefinery(in‘000tonnes)

Crude oil processed 14,218 14,526 14,452

Petrol 2,800 3,055 2,735

Diesel fuel 5,078 5,330 5,359

Ekoterm 840 790 699

Aviation fuel JET A-1 418 245 394

LPG 223 212 241

Environmental impact

Water consumption from the Vistula (in m3) 22,991,953 22,448,565 22,785,313

Sewage discharge to the Vistula (in m3) 12,381,024 11,351,599 12,757,779

COD load in sewage discharged to the Vistula (kg/y) 676,524 726,812 889,310

Total emissions of all pollutants (in Mg), 6,189,145.40 6,158,012.71 6,385,884.25

including:

Sulphur dioxide 20,444.59 20,975.23 22,381.42

Nitrogen monoxide (as per n trogen dioxide) 6,821.48 7,124.27 8,460.74

Carbon monoxide 812.16 1,010.87 1,309.07

Total hydrocarbons 1,384.01 1,238.12 1,412.07

Fuel combustion dust 453.34 399.75 509.65

Carbon dioxide 6,158,959.11 6,126,894.42 6,351,440.32

Other pollutants 270.71 370.05 370.99

Responsible production

Environmental charges (in PLN), 16,572,326.63 17,226,918.00 19,644,093.00

including:

for emission (including transport) 14,784,628.49 15,461,484.00 17,679,435.00

for water consumption 1,085,832.47 1,082,459.00 1,146,012.00

for sewage discharge 701,865.67 682,975.00 818,646.00

Investment expend tures for environmental protection (in PLN) 259,126,877.37 191,757,998.86 148,118,479.00

Our employees

Employment as on 31 December 4,725 4,482 4,513

Accidents at work (including major) 26 23 28

Absence from work following accidents at work 952 996 789

1) SelectedfinancialdataconcernsPKNORLENandappliestotheyearthatendedon31December.2) COD – chemical oxygen demand.3) The amount includes charges for CO2 emission allowance allocation.

1.1. 1.2. 1.3. 1.4. 1.5.1.6.

MARKETPKN ORLEN – a brand open to dialogue

1.

PKN ORLEN on the Capital MarketThe Supervisory BoardIntegrated Management SystemRelations with suppliers Responsible marketingService Standards

14

PKN ORLEN – a brand open to dialogue

In 2010, we conducted an innovative study in order

to better understand the expectations of our stake-

holders. We dedicated the study entirely to the CSR

issues. We hope that its consecutive editions will help

us improve the quality of our contacts with the envi-

ronment and make the dialogue easier. This objective

is also to be served by advancing the methods of com-

munication.

And indeed, we communicate proactively by means

of a broad variety of information channels, ranging

from the corporate website to other channels dedicated

to the respective areas of PKN ORLEN activities. Our

stakeholders have also noted our presence in new

media. Setting up the VERVA Street Racing Facebook

page in the spring of 2011 proved a great success.

The actions taken on the fan page resulted in an almost

500% increase in fan activity.

These results entitle us to believe that we have taken

the right direction towards improved dialogue with our

stakeholders, incorporating a broad range of means

and methods of communication. We continue apply-

ing time-tested methods, but at the same time we are

aware of and react to the changing requirements

of our environment.

New business ethics requires that companies be open

and attentive to the environment. Such an attitude

is a very important proof of the company’s genuine invo-

lvement in implementing the CSR concept, and its success

to a large extent depends on the quality and effec tiveness

of communication with the environment.

Long-term relations with stakeholders should be based

on dialogue and mutual understanding of each other’s

needs and expectations. This is the way to turn respon-

sibility into a natural element of the mechanism creating

the company’s goodwill.

Each of the large groups of PKN ORLEN’s stakeholders

requires an individual approach. Let me explain this

on the example of corporate communication. We have

developed time-tested methods of communication

and dialogue with our employees. Our internal bi-weekly

newsletter “ORLEN ekspres” has been a popular medium

of communication for many years. The programmes

broadcast by ORLEN Studio, the corporate radio sta-

tion, have also found an eager audience among our

employees. These traditional media are accompanied

by the dynamically developing intranet.

Leszek Kurnicki

Executive Director,

Marketing and Corporate Communication

MARKETPKN ORLEN – a brand open to dialogue

15


Stakeholder map

T

HE MEDIA

COMPETITION

IND

USTRIA

L AN

D C

ON

SUM

ER ORG

AN

ISATION

S

UNIVERSITIES

EMPLOYEES

SHAREHOLDERS

BUSINESS PARTNERS

LOC

AL SO

CIETY

PUBLIC ADMINISTRATION AND LOCAL AUTORITIES

AGENTS

CA

PITA

L G

ROUP

CO

MPA

NIES

NGOS

SUPP

LIERS

CUSTOMERS


The 2009 Corporate Responsibility Report, p. 18

PKN ORLEN shareholding structure as on 31 December 2010

16


1.1. PKN ORLEN on the Capital Market

PKN ORLEN shares are listed on the Warsaw Stock

Exchange (WSE) and in the form of Global Depository

Receipts (GDRs) on the London Stock Exchange. Depo-

sitory receipts are also traded in the US OTC market.

at PKN ORLEN General Meeting to less than 5%. ING

Otwarty Fundusz Emerytalny was a holder of more than

5% of the Company share capital since 18 February 2009.

Corporate Governance

In 2010, PKN ORLEN applied all the principles of cor-

porate governance, established both in the previous

and in the updated version of the Code of Best Practice

for WSE Listed Companies. In mid 2010, the Warsaw

Stock Exchange revised the Code of Best Practice for

WSE Listed Companies, adjusting it to the changes

in legislation, international guidelines and stakeholders’

expectations. The Company applies both the mandatory

andtheoptionalrecommendationsdefinedintheCode.

5,08%

27,52%

67,40%Other**

Aviva OFE*

State Treasury

* according to information submitted to the Company on 9 February 2010.**On23November2010,theCompanywasnotifiedthaton18November2010INGOFEdecreaseditssharetolessthan5%.

In 2010, there were two changes in the structure of hold-

ers of more than 5% of the Company’s share capital.

First, on 5 February 2010, Aviva Otwarty Fundusz Em-

erytalny Aviva BZ WBK acquired 5.08% of PKN ORLEN

share capital. Later on that year, on 23 November 2010,

INGOtwartyFunduszEmerytalnynotifiedtheCompany

that it reduced its share in the total number of votes

17


PKN ORLEN implements various measures to streamline

communication with the environment and ensure equal

access to information to anyone who might be interested.

In order to reach a broad audience, we apply both

traditional and modern tools of communication with

representatives of the capital market. We organise live

online transmissions (with simultaneous interpretation

into English) of press conferences organised after each

important event in the Company, such as publication

of quarterly results, strategy announcements or General

Meetings of PKN ORLEN Shareholders. Video recordings

of conferences are available on the Company website.

The investor relations section of the www.orlen.pl website

has a bookmark related to the Code of Best Practice for

WSE Listed Companies. The bookmark offers download-

able annual reports on implementation of the Best Practice

in the Company as well as the Code of Best Practice for

WSE Listed Companies. It also features short informa-

tion about the Best Practice applied by the Company

and the rules for selecting an auditor of the Company’s

financialstatements.

The corporate website offers information on dates of Gen-

eral Meetings, draft resolutions, as well as a complete

set of documents presented to shareholders at General

Meetings. Moreover, the company has a special online

contact form for its shareholders, which is intended for

communication in matters concerning General Meetings.

Relations with the capital market

PKN ORLEN has been regularly increasing the standards

of communication with the capital market in order

to guarantee access to reliable and exhaustive informa-

tion about the Company’s operations to its sharehold-

ers, investors and other stakeholders. The Management

Board pays particular attention to the relationship with

this group of stakeholders, as they have a major impact

on the Company’s valuation and image in the global

market.Forthisreason,thecompanypublishesofficial

stock exchange communications in Polish and in English

For many years, we have been working hard

to make sure that PKN ORLEN is perceived

as a healthy body of contemporary business,

where a lot of attention is focused on the right

relationship with shareholders and investors as well

as other stakeholders. Where the principles

of Corporate Governance are a standard

rather than an obligation.

We are constantly improving the process

of communicating the environment,

e.g. by incorporating new ICT technologies.

We establish internal procedures to ensure

the safety, reliability and up-to-dateness

of information communicated to the public.

Continuous monitoring of the information needs

of our shareholders and investors, who,

as we are well aware, have a major say

in the market valuation of our company,

is an essential element of our communication.

The prestigious international IR Magazine award,

which we have once again received for the best

investor relations in Poland, as well as our

inclusion in the RESPECT Index have reassured

us that we have chosen the right direction.

Dariusz Grębosz

Director of the Investor Relations Office

18


RESPECT Index

PKN ORLEN shares have been listed in the RESPECT Index

of socially responsible companies since 19 November

2009. The Company maintained this elite status after

the 2010 update of the Index.

The RESPECT Index project followed certain measures

takenbytheWSEin2009whichhaveresultedinthefirst

index of socially responsible companies on the Warsaw

Stock Exchange. The aim of the index is to promote

the highest standards of responsible management.

Companies included in the index have been selected

on the basis of an extensive analysis of many aspects

of their business. Only the companies with highest

liquidity may qualify. The WSE, accompanied by the Asso-

ciation of Stock Exchange Issuers, take into account

the companies’ corporate governance and communication

practice.Duringthefinalstageoftheselectionprocess,

a comprehensive questionnaire and audit are conducted

in order to review the measures taken by companies

inthefieldofsustainabledevelopment,corporategov-

ernance and functioning on the Stock Exchange as well

as management systems and social and environmental

projects implemented by the company, and its attitude

towards various groups of stakeholders. It is the inten-

tion of the WSE to review the Index every six months.

Inclusion in the index motivates PKN ORLEN to further

intensify their efforts to recognize and satisfy the require-

ments of shareholders and other social groups related

to the Company.

www.odpowiedzialni.gpw.pl

COMMITMENT

PKN ORLEN will take all reasonable efforts to remain

in the index in the years to come.

and has a bilingual website. The corporate website offers

an extensive collection of information and tools presenting

thedetailsoftheCompany’sstrategyandfinancialstance.

PKN ORLEN regularly and actively participates in meetings

with investors and analysts both in Poland and abroad.

The Company attends conferences, individual and group

meetings, and teleconferences with representatives of cap-

ital markets, observers and journalists. The ways of com-

munication with the capital market include so-called

roadshows – a series of meetings with representatives

offoreignfinancialinstitutionsandinvestorsoperating

in the global capital market.

Every now and again the Company organises site visits

for its investors and analysts. Site visits are a specially

designed series of meetings at the Company’s premises

with its managerial staff, combined with visits to selected

operating assets, such as production units, warehouse

facilities or fuel stations.

The meetings with capital market players are an oppor-

tunity to find out how they perceive the Company

and what their expectations regarding the types and chan-

nels of communicating information are.

Our efforts to communicate with capital market players

have not gone unnoticed. In 2010, we received a number

or awards in the area of investor relations.

r more i format


19


1.2. The Supervisory Board

The PKN ORLEN Supervisory Board continuously super vises

the Company’s operations in all areas of business. The Su-

pervisory Board has the powers established in the Pol-

ish Code of Commercial Partnerships and Companies

and the Company’s Articles of Association. Its members

are appointed and dismissed by the General Meet-

ing of Shareholders in accordance with the Company’s

Articles of Association. The Supervisory Board consists

of 6 to 9 members appointed for a joint term of of-

fice. Individual members of the Supervisory Board,

and the whole Supervisory Board, can be recalled any

timeprior to theendof the termofoffice.TheChair

of the Supervisory Board is appointed and dismissed

by the General Meeting, while the Vice-Chair and the Sec-

retary are elected by the Super visory Board from among

the rest of its members. The State Treasury is entitled

to appoint and dismiss one member of the Supervisory

Board. This privilege will expire if the State Treasury sells

all the shares held in the Company.

At least two Supervisory Board members must be inde-

pendent from the Company and entities closely asso-

ciated with the Company. In order to be appointed

to the Supervisory Board, independent members submit

totheCompanyawrittenstatementconfirmingthatthey

meet the criteria established in § 8 (5) of the Company’s

Articles of Association. The Company informs the share-

holders about the current number of independent mem-

bers of the Supervisory Board via its website. If the num-

ber of independent members of the Supervisory Board

is smaller than two, the Company’s Management Board

is obliged to immediately convene the General Meeting

of Shareholders in order to change the composition

of the Supervisory Board. Until any changes are made,

the Supervisory Board continues to work in its current

composition. As on December 31, 2010, the PKN ORLEN

Supervisory Board had 4 independent members.

The Supervisory Board has the following standing com-

mittees: Audit Committee, Strategy and Development

Committee, Appointment and Remuneration Commit-

tee and Corporate Governance Committee. 8 members

of those committees are male and 1 is female.

In 2010, the work of the Supervisory Board was man-

aged by the Chair.

The Supervisory Board is authorised to review all

of the Company’s documents, order the Management

Board and employees to provide reports and explanations,

and inspect the Company’s assets. Moreover, the Supervi-

sory Board may request the Management Board to prepare

expert opinion or appraisal, or to engage an advisor.

In 2010, the PKN ORLEN Supervisory Board held 11 recor-

ded meetings and adopted 95 resolutions. Besides,

members of the Supervisory Board attended 12 recor ded

meetings of the Audit Committee, 1 meeting of the Strat-

egy and Development Committee and 4 meetings

of the Corporate Governance Committee, and 4 meet-

ings of the Appointment and Remuneration Committee,

of which 1 meeting was held jointly with the Audit

Committee.

In 2010, the PKN ORLEN Supervisory Board had 8 male

members and 1 female member. The age structure was

as follows:

• 30–50 years – 6 persons;

• over 50 years – 3 persons.

In accordance with the Company’s Articles of Association,

the policy of remunerating members of the Supervisory

Board, is determined by the General Meeting. In 2010,

members of the Supervisory Board were remunerated

pursuant to the Resolution of the Extraordinary General

Meeting of Shareholders of 10 January 2001 on changes

in the policy of remunerating members of the Supervisory

20


Board. Monthly remuneration constitutes a certain mul-

tiple of the average monthly salary in the corporate

sector, excludingprofit bonuspayments in the fourth

quarter of the previous year, announced by the President

ofthePolishCentralStatisticalOffice.

The Supervisory Board is authorized to represent the Com-

pany in contract negotiations with the Management

Board members, including with respect to the terms

and conditions of employment and remuneration. There

is an incentive scheme for the members of the Man-

agement Board. The amount of annual bonus depends

on the Company’s operating results and achievement

ofindividualtasksdefinedbytheSupervisoryBoardfor

individual members of the Management Board.

In order to avoid a conflict of interests in theORLEN

Group, the Company applies the provisions of the Polish

Code of Commercial Partnerships and Companies, provi-

sions of the Constitution of the Supervisory Board, as well

as the Code of Best Practice for WSE Listed Companies.

In accordance with the rule no. 6 of the 1st Section

of the Code of Best Practice for WSE Listed Companies

– “A member of the Supervisory Board should have rel-

evant knowledge and experience and be able to devote

the time required to properly perform his/her duties.

A member of the Supervisory Board should undertake

relevant measures to ensure that the Supervisory Board

receivesinformationonanysignificantissuesconcerning

the Company”.

In 2010, members of the PKN ORLEN Management

Board did not receive remuneration for their membership

in Supervisory Boards of subordinate, jointly controlled

and associated companies of the ORLEN Group. The only

exception was UNIPETROL a.s., but in this case remu-

neration for membership in the Supervisory Board was

donated to the ORLEN – Dar Serca Foundation.

1.3. Integrated Management System

PKN ORLEN has implemented an Integrated Management

System (IMS). The system guarantees professional cus-

tomer service and compliance with the highest standards

in terms of HSE, data safety and food safety.

The IMS system consists of the following systems:

• Quality Management System according to PN-EN ISO

9001:2009;

• Quality Management System according to AQAP

2120:2009 (supplies to NATO);

• Environmental Management System according to PN-

EN ISO 14001:2005;

• Occupational Health and Safety Management System

according to PN-N-18001:2004;

• Data Safety Management System according to PN

ISO/IEC 27001:2007;

• Food Safety Management System HACCP according

to Codex Alimentarius;

The 2009 Corporate Responsibility Report, pp. 24 – 26

and www.orlen.pl

For mo e information visit:


For more i orma

21


Integrated Management System Policy

Polski Koncern Naftowy ORLEN S.A. declares delivery of products and services of guaranteed and increasing quality to its Customers and Partners, while at the same time striving to achieve maximum possible environmental neutrality, high occupational health and safety standards and a high level of information security.

Our objective being to maintain the leader position on the Polish and international market and the reputation of a professional and trustworthy Company that observes the principles of corporate governance and corporate social responsibility in all its operations, we undertake to:

1. Constantlymonitorthecurrentandprospectivedevelopmentdirectionsinthefieldofoperationalandenvironmentalpropertiesof our products in order to take measures taking into account the current and future needs of the Customers;

2. Increase the economic performance of processes by ensuring continuous technological development, which enables us to manu-facture products that meet the quality requirements of international standards.

3. Achievefullcompliancewiththelawandstandardsinthefieldofpollutionprevention,environmentalprotection,safetyatworkand health protection while at the same time observing the principles of sustainable development.

4. Ensure prevention of major industrial and radiological failures, monitoring of emissions to the environment, their spread in the air, soil, earth and underground waters, and their impact on human life and health.

5. Prevent climate changes by effective greenhouse gas emission management.6. Constantly improve methods of hazard recognition and prevention of incidents at work and occupational diseases, and implement

ergonomic solutions that reduce inconveniences of a workplace and occupational risks.7. CooperateonlywiththosecontractorsandsuppliersthathavethequalificationsrequiredbytheCompanyandmeetthequality,

HSE,fireprotection,radiologicalprotection,processsafetyandinformationsecuritystandardsdeterminedbytheCompany.8. Enable all the interested parties to access information concerning the Company’s environmental impact and measures taken

to improve safety of the working environment and health protection – continuation of the Responsible Care Programme.9. Constantly improve corporate culture by increasing the skills and environmental awareness of the employees and by promoting

involvement in measures aimed at satisfying Customer expectations, protecting the environment and improving the working conditions.

10. Take measures aimed at ensuring adequate protection of information in each of the Company’s information processing systems, including in ICT systems and networks and in paper document circulation, based on the best applicable standards and practices inthefieldofinformationsecurity.

11.Complywiththerequirementsofthegenerallyapplicablelawinthefieldofprocessingofgroupsofinformationprotectedduetoitsconfidentiality, inparticularinthefieldofprotectingclassifiedinformation,personaldataandinformationassociatedwithpublic trading in securities.

12. Constantly improve protection of information constituting business secret within the meaning of the Fair Trading Act.13.Ensuretherequiredlevelofsafetyoftheothergroupsofinformationprotectedduetoitsconfidentiality,classifiedandprocessed

in the Company.14. Ensure protection of entrusted information being the property of persons or entities that cooperate with the Company, where

required by relevant contractual information protection clauses.15. Identify, assess, eliminate and supervise potential hazards relevant to the health safety of food products.16.Takeallmeasuresinthefieldofproduction,storageanddistributionoffinishedfoodproducts,takingintoaccounttheprinciples

of the Good Manufacturing Practice and the Good Hygienic Practice, and the requirements of the Codex Alimentarius.17. Monitor Critical Control Points and apply corrective measures at each stage of the process of manufacturing of and trading in food,

to guarantee detection and removal of irregularities.18. Constantly improve the Integrated Management System by ensuring resources that make it possible, among others, to increase

the performance of processes and to take effective corrective and preventive actions.

ThesetasksdefinetheCompany’sstrategy,whichtranslatesintothecurrentandfuturedevelopmentprogrammesandothermeasuresundertaken on the basis of the Integrated Management System, implemented in compliance with the requirements of ISO 9001 and AQAP 2120 – Quality Management System, ISO 14001 – Environmental Management System, PN-N-18001 – Occupational Health and Safety Management System, PN-ISO/IEC 27001 – Information Security Management System and Codex Alimentarius – Food Safety Management System. We will continue measures aimed at harmonising the principles of the functioning of the Integrated Management System in the Company.

Płock, on 20 April 2010 President of the Management Board, ChiefExecutiveOfficer

205185

2009 2010

220

200

180

160

140

120

Non-compliances reported during internal audits

in 2009–2010

22


Compliance audit – internal and external veri-

fication of the Management Systems

In 2010, the IMS was audited by Bureau Veritas Certi-

fication.Non-complianceswerenot reported and PKN

ORLEN’s IMS received a certificateof compliancewith

the following four standards: PN-EN ISO 9001:2009,

PN-EN ISO 14001:2005, PN-N-18001:2004 and PN-ISO/

IEC 27001:2007.

The Integrated Management System was once again

re-certifiedforcompliancewithAQAPinJuly2010.Theau-

ditconfirmedthattheCompanycomplieswithrelevant

procedures and requirements applicable to deliveries

to the army.

In 2010, the IMS was audited 804 times by internal audi-

tors. 13 audits concerned the HSE Management System

(HMS) in the Fuel Terminal area and 26 were autono-

mous internal audits of the HSEMS in Płock. The audits

confirmed that the IMS is functioning in compliance

with relevant standards, but at the same time suggested

possible improvements.

With the Integrated Management System,

we are able to supervise and improve processes

across all the areas of the Company operations,

which translates into their higher effectiveness

and efficiency. The management systems help

us better adjust our products and services

to customer expectations.

Successful implementation of the system

is supported by an elaborate training system.

In 2010, more than 300 persons participated

in 9 training sessions. The purpose was to raise their

awareness of the system. Multimedia training

sessions were organised, including workshops

for managers and internal auditors. E-learning

training for all employees is being developed.

The IMS enables us to deliver top quality products

and at the same time take care of the environment,

employee safety and the safety of the data

provided by our customers and contractors.

Paweł Kukowski

Head of the Management Systems Department

23


Process Management

In March 2010, the Process Book, a supplement

to the Inte grated Management System Book, was appro-

ved. The Process Book contains maps and charts of pro-

cessesidentifiedwithintheQualityManagementSystem.

The Book is being constantly improved. New processes

are identified anddescribed, and theirmonitoring via

asystemofapprovedprocessefficiencyindicatorsisde-

veloped. In order to optimise those efforts, the Company

purchased and is implementing an electronic applica-

tionthatsupportsprocessmanagement(PM).Efficient

management and improvement of existing processes

based on actual and measurable data is possible through

monitoring and measuring, comparing to the values

of approved and planned criteria, and analysing any

changes and differences.

As a result of process identification, a process owner

is associated with each process. The effect was opti-

misation of the decision-making process and process

supervision. Another advantage of PM is that it raises

the awareness of employees involved in process implemen-

tation and their impact on the work of other employees,

improves transparency of operations and optimises in-

formationflowbetweenrespectiveorganisationalunits

involvedinspecificoperations.

The 10% increase in the number of non-compliances

reported in 2010 as a result of internal audits was inter-

preted as a challenge, and consequently a number

of measures were taken in order to eliminate reasons

of non-compliance.

The compliance of operations conducted by suppliers

and contractors was also audited in 2010. The 9 audits

did not report any non-compliance.

COMMITMENT

To implement solutions which improve the quality

of our products, higher safety and neutral impact

on the environment.

Development of the Integrated Management

System

In 2010, the Data Safety Management System was recon-

structed as part of a broader project to develop the orga-

nisation and adopt our operations to the changing internal

and external context. Requirements of the PN ISO/IEC

27001:2007 standard were implemented and a relevant

certificateofcompliancewasreceived.

The HSE Management System extended its area of op-

eration: the requirements associated with that system

were implemented at all fuel terminals. This was a step

towards adding compliance with the PN-N-18001:2004

standardtothecurrentportfolioofcertificates.

In order to improve and develop its IMS, PKN ORLEN

purchases and implements electronic applications that

support process management, auditing, circulation of non-

compliance related documentation, registering of potential

hazards and assessment of professional risk.

List of selected ORLEN Capital Group Companies and their Management System certificates

24


Company ISO 9001 ISO 14001PN-N-18001

/ OHSAS 18001

ISO 27001 IMS

Anwil SA yes yes - - yes

BasellOrlenPolyolefinsSp.zo.o. yes yes yes - yes

ORLEN Administracja Sp. z o.o. yes - - - -

ORLEN Asfalt Sp. z o.o. yes yes yes - yes

ORLEN Automatyka Sp. z o.o. yes yes yes - yes

ORLEN Centrum Serwisowe Sp. z o.o. yes yes yes - yes

ORLEN Eko Sp. z o.o. yes yes yes - yes

ORLEN GAZ Sp. z o.o. - - - - -

ORLEN KolTrans Sp. z o o. yes - - - -

ORLENKsięgowośćSp.zo.o. - - - - -

ORLEN Laboratorium Sp. z o.o. - yes yes - yes

ORLEN Ochrona Sp. z o.o. yes - - - -

ORLEN OIL Sp. z o.o. yes yes - - yes

ORLEN PetroCentrum Sp. z o.o. - - - - -

ORLEN PetroTank Sp. z o o. - - - - -

ORLEN Prewencja Sp. z o.o. yes yes yes - yes

ORLEN Transport SA - - - - -

ORLEN Wir Sp. z o. o. yes yes yes - yes

RafineriaNaftyJedliczeSA yes - - - -

RafineriaTrzebiniaSA yes - - - -

Moreover, the areas of environmental protection, health,

data safety and food safety have their risk assessment

conducted on an ongoing basis. This indirectly translates

into implementation of innovative solutions that serve

as a basis for continuous development and improvement

of our customer offering.

25


1.4. Relations with suppliers

Suppliers are an important group of our stakeholders.

It is very important for us what products we buy and from

whom. We cooperate with our suppliers on a regular basis.

The Company’s cooperation with suppliers is governed

by our purchase policy. One of the key policy documents

is the PKN ORLEN Purchase Instructions. The detailed

terms and conditions established in the Instructions ensure

transparency of the supplier selection process. A large

number of our requests for quotation are published

at www.orlen.pl. Via the website, suppliers have access

to the ongoing purchasing procedures, which means

that those procedures are open even to suppliers with

no history of cooperation with PKN ORLEN.

The procedure is the same for local suppliers as well

as for all the other suppliers. The advantages of local

suppliers are their good knowledge of the local market,

flexibility, familiaritywith PKNORLEN and lower costs

e.g. of transport. However, all suppliers are treated equally.

We do not have any statistics of the ratio of expenditure

on the services of local suppliers to total expenditure.

The personnel of the Procurement Office are willing

to contact any suppliers interested in cooperating with

the Company. They are always very helpful during tender

procedures. They advise suppliers on the purchase pro-

cedures and clarify any doubts concerning the respective

stages of a tender procedure. They explain the general

and specific requirements that tenderers are supposed

to meet. Our personnel must be professional in perform-

ing their duties, but at the same time respect the primary

values and principles of the PKN ORLEN Code of Ethics.

In order to maintain the highest standards

of our relations with the customers,

the PKN ORLEN Procurement Office applies

a number of essential principles. They include

maintaining a friendly working environment

and creating a model of effective cooperation with

internal customers. We achieve this

by satisfying their expectations in the best

possible way and by being ready to provide

the required support. Developing partnership

relations with reliable suppliers is extremely

important for us.

PKN ORLEN cooperates with reliable suppliers

from all over the world. All of them are subject

to regular verification; we have developed

long-term cooperation models with our key

suppliers. The Company does not hesitate

to use the services of local suppliers

(whose headquarters are located in the Płock

District), thus supporting the local market

and business. However, the final selection criterion

is always the suppliers’ ability to satisfy

our high expectations.

Piotr Małowiejski

Acting Manager

of the Professional Service Procurement Team

26



is the ORLEN – Dar Serca Foundation. The Foundation

allocatesthemoneyaccordingtothespecificsuggestions

of the donors. In 2010, the Foundation used the funds

donated under the VITAY loyalty programme to pay for:

• 6,462 dinners,

• 557 hours of rehabilitation activities,

• 153 sets of school supplies,

• 84 monthly allowances for children from family-run

children’s homes.

The Foundation also supports children from disadvantaged

families,e.g.fromthefloodedareas,inparticularbypro-

viding them with clothes, shoes and things for school.

Children are welcome at our fuel stations. Some fuel

stations even have baby change facilities.

One of the corporate good practices is to offer fair-trade

certifiedcoffeeatthefuelstations.Thefair-tradelogo

means that the coffee at our Stop Cafes is supplied

by fair suppliers.

PKN ORLEN follows the principles of transparency and fair

play. Since 2006, the Company has been applying

the principles of good practice, developed in cooperation

with the Advertising Agencies Association, in the process

of selecting an Advertising Agency and a Media House.

In the period when the Polish Association of Branded

Goods Manufacturers ProMarka existed, PKN ORLEN

was involved in developing, promoting and protecting

trademarks as distinctive features of a product.

It should be noted that in the reporting period, no pen-

alties were imposed on the Company for breach of law

and regulations relating to supplies and application of prod-

ucts and services. 2010 was also another year when

none of our agreements with suppliers required inclusion

of a human rights clause. Neither did we report any signs

suggesting that there exists a risk of forced or child labour

among our major suppliers. Thus, we do not maintain

any statistics concerning that issue.

1.5. Responsible marketing

PKN ORLEN marketing and promotional activities are

performed in view of the principles of corporate responsi-

bility. Both the marketing activities and the accompanying

communication take into account a long-term impact

on the stakeholders and the surrounding environment.

Our campaigns and communication rely on true and reli-

able information. The variety and complexity of the initia-

tives taken in this particular area are remarkable. Below

is a brief presentation of those initiatives.

In order to protect the environment and deal with

the problem of growing volumes of waste, the ORLEN

and Bliska fuel stations introduced environmentally friendly

fully biodegradable shopping bags. Moreover, some

fuel stations collect used batteries and accumulators

from customers.

Participants of the VITAY loyalty programme have the op-

tion to donate their loyalty points to family-run children’s

homes supported by the ORLEN – Dar Serca Foundation.

In 2010, the customers of ORLEN fuel stations donated

almost 10 mn VITAY points, which is an equivalent of al-

mostPLN80,000.Thebeneficiaryofthedonatedfunds

r mor inform t on vi it

For more information, visi :

f


27


The objective of the ProMarka Association was to establish

the highest advertising standards in Poland and protect

consumers and competition from unfair and unethical

advertising. PKN ORLEN, as a member of the Associa-

tion, undertook to apply the provisions of the Code

of Ethics in Advertising. This meant that if a member

company was reported to have breached the Code, it had

to be disciplined by the Advertising Ethics Committee.

The good practice of the Promotion and Advertising

Department is to communicate true and reliable infor-

mation to our customers.

No cases of non-compliance with regulations and vol-

untary codes governing the marketing communication

issues, including advertising, promotion and sponsor-

ing,havebeenreported.Onecomplaintwasfiledwith

the Advertising Council and dismissed by the Advertising

Ethics Committee in the reporting period.

Currently, PKN ORLEN is a party to three pending anti-

monopoly proceedings.

1.6. Service Standards

Customers and users of the products and services offered

by PKN ORLEN repeatedly rewarded our corporate efforts

with numerous awards and distinctions. In 2010, PKN

ORLEN once again received the Golden Trusted Brand

Logo. For the fourth time in succession, it was recognised

as the Most Valuable Polish Brand. The BiznesTank Pro-

gramme was acclaimed as the Fleet Product of the Year.

For the second time in succession, the Company received

the Golden Customer Laurel 2010.

PKN ORLEN runs a number of projects dedicated to cus-

tomer satisfaction analysis. The most important among

them is the Mystery Customer programme the purpose

of which is to verify compliance with relevant customer

service standards.

Mystery Customers are evaluators who visit the Com-

pany establishments (institutions, organisations) under

the disguise of a regular customer and assess the quality

of customer service and their compliance with relevant

standards.PKNORLENwasoneofthefirstcompanies

to implement the Mystery Customer programme in 2001.

The programme is one of the fundamental elements

of the customer service management system within

the PKN ORLEN retail network. It is an external audit

of the functioning of key customer service standards.

It enables incorporation of measurable (percentage

points) evaluation results in the process of customer

service quality management. The evaluation is a con-

tinuous process and it covers all the operating fuel

stations. Each fuel station receives an evaluation sheet

specifying which standards are on the required level

and what needs impro vement. The reasons of each nega-

tive evaluation are explained. The results of evaluation

are used to develop a customer service improvement

plantailoredtothespecificfuelstations.Thoseresults

may also be used for example in incentive programmes.

28



We do our best to meet the needs of various groups

of our customers F example, customers with special

needs can now find a PKNORLEN fuel stationwith

the req uired disability facilities via the www.orlen.pl

website.

Another initiative is the Brand Barometer project, which

involves periodic customer satisfaction assessment.

The results of the assessment are thoroughly analysed

andusedtoimplementspecificsolutions.

The idea behind those initiatives is continuous improve-

ment of customer service standards and customer sat-

isfaction levels, which is particularly important given

the growing customer awareness and expectations

concerning product and service quality, and the level

of service provision. This is why we analyse very care-

fully every complaint made by customers and use their

suggestions to improve our work. A strong brand repu-

tation and loyal customers are a solid foundation for

the economic success of a company.

In 2010, PKN ORLEN centralised the complaints and claim

management system in the retail sales area in order

to be able to better and faster react to customer expe-

ctations. Actions were taken to streamline the docu-

ment circulation process. The information we receive

from customers is processed in a professional manner

and thoroughly analysed in order to improve the offer

of our fuel stations across the country.

COMMITMENT

We plan to launch new applications to enable online

search of PKN ORLEN fuel stations in August 2011.

These will be:

• www.m.orlen.pl–alightversionofourcorporate

website with a search engine, available from any

mobile device with internet access

• anadvancedfuelstationsearchengineforsmart-

phones (compatible with Android, iPhone and Black-

berry systems).

Complaints

Year 2008 2009 2010

Claims

Total

Filed Accepted Dismissed Filed Accepted Dismissed Filed Accepted Dismissed

553

597

1,150

100

178

278

453

419

872

635

758

1,393

147

227

374

488

531

1019

1,080

826

1,906

332

199

531

748

627

1,375

Complaints and claims

For m re information visit:


2.1. 2.2. 2.3. 2.4. 2.5.2.6.2.7.2.8.

SOCIETY

Expectations of our stakeholdersRisk ManagementParticipation in public lifeParticipation in local and European projects National heritageSportsCharityORLEN “Safe Roads”

PKN ORLEN as a responsible citizen

2.

30


SOCIETYPKN ORLEN as a responsible citizen

2.1. Expectations of our stakeholders

In 2010, PKN ORLEN launched an innovative study which,

alongside other studies incorporating social elements,

wasdedicatedtotwospecificgroupsofourstakehold-

ers: the customers and the local society of the city

ofPłock.Thepurposeofthestudywastofindoutwhat

the respon dents thought about CSR activities in PKN

ORLEN. We asked our stakeholders, among other things,

about their knowledge, understanding and asse ssment

of the activities undertaken by the Company and whether

they thought those activities to be effective and appropri-

ate. The process was prepared in recognition of the fact

that pro-social work is what our stakeholders expect, but

at the same time affects the perception of our brand.

Consequently,thebenefitsofsuchworkarereciprocal.

By better understanding the expectations of the environ-

ment,theCompanyactsmoreefficiently,whichinturn

serves to strengthen the Company’s brand.

COMMITMENT

To continue studies concerning the perception

of PKN ORLEN’s CSR activities by the respective

groups of stakeholders.

It is no news that the sector in which we operate is a very

demanding one. The ORLEN Group is affected by a num-

ber of macroeconomic, market and regulatory factors.

In order to maintain our leading position in the market,

we adjust our business to the changing environment

and quickly react to the new market challenges.

We are not only the largest company on the Polish mar-

ket, but also one of the largest corporations in Central

and Eastern Europe. We are a regional leader and we are

active on a number of markets, among others in Poland,

the Czech Republic, the Baltic states or in Germany.

We have used M&A projects and consistent implemen-

tation of organic project to build our strong position

in the refinery and retail sectors. Our current strat-

egy is to focus on the development of new segments:

electricity and upstream. At the same time, we strive

to achieve our other strategic priorities: further improve-

mentof efficiency anddebt reduction. These activi-

ties are accompanied by our awareness of the impact

we have on the environment. Accordingly, our respon-

sibility towards stakeholders and pro-environmental

efforts are a natural element of all the economic projects

we undertake.

Andrzej Kozłowski

Executive Director, Strategies

and Project Management

Fundacja „Fundusz Grantowy dla Płocka”

2005

2006

2007

2001

2002

2003

2004

2008

2009

2010

2000

CSR in ORLEN

Forumdla

Płocka

BEZPIECZNE DROGI

31


According to two-thirds of the residents of Płock, PKN

ORLEN is involved in pro-socialwork to a sufficient

extent. The same group is also familiar with the spe-

cificactions takenbytheCompany.Thefollowingare

the most popular projects: the purchase of medical devi-

ces for the hospital in Płock, construction of a modern

playground for children and training programmes for

students of local universities.

Our customers positively evaluate the “ORLEN Safe Roads”

programmethatpromotesroadtrafficsafety.TheORLEN–

Dar Serca Foundation, which supports family-run children’s

homes and undertakes other social assistance initiatives,

is also positively perceived. The assi stance programme

dedicated to professional and voluntary fire brigades

that PKN ORLEN implements under one of the priorities

of its charity policy, namely life and health protection,

is becoming increasingly popular.

Apart from the above studies, PKN ORLEN constantly

monitors the impact of its efforts on the local soci-

ety. Two periodic studies are conducted: ORLEN Brand

Reputation and Brand Reputation Index (GfK, Pentor RI),

and the issue of local societies is an important module

of both studies.

32


2.2. Risk Management

Risk is inherent in business. In order to minimise haz-

ards that are hard to foresee, PKN ORLEN operates

a risk management system enabling business decisions

to be made with full awareness of the existing risks.

In 2010, the company was well prepared to respond

to actual risks so as to minimise their possible impact

on the continuity and possibilities of achieving the busi-

ness goals.

Risk management is based on procedures that enable

identificationofrespectiverisks,riskallocationtorespec-

tive owners, risk analysis in the Company’s key areas

and recommendation of preventive measures. To support

the system, we have internal reviews (both with respect

to internal procedures and the external environment)

relating to the Company’s most important business areas

in terms of its current operations. By integrating the risk

management system we are able to implement a uniform

approach to risk management, which will translate into

uniform approach to strategic planning on the level

of strategic business operations and internal control.

The risk management system responds to the needs

of a broad circle of the Company’s stakeholders who

want to better understand a wide range of the risks

facing the Company so as to be certain that those risks

are properly managed.

The Company’s operations involve the following types

of risk:

Strategic

– due to wrong assumptions of strategic planning

and wrong assessment of strategic options, including

internal strategic decisions.

Financial

– associatedwith financial transactions and financial

accounting and reporting requirements.

Operating

– caused by improper or unreliable internal processes,

production, storage and distribution technologies, emplo-

yees or malfunctioning processes.

External

– caused by external factors associated with customers,

suppliers, competitors, new market players, substitute

services or changes in the external environment.

IT risks

– associated with improper management of ICT resources

processed by means of information and communication

technologies, outdated information and communication

technologies, incoherent ICT strategies, disturbances

in the operation of the ICT infrastructure.

Organisational

– associated with the Company’s stakeholders and caused

by inappropriate organisational structure and system

of delegating the authorities and responsibilities, and lack

of adequate rules of conduct for the employees and man-

agers of organisational units.

Legal and regulatory

– risks caused by non-compliance with the law, corporate

regulations and contractual provisions, and risks asso-

ciated with the safety of information processed using

information technologies.

Physical safety

– risks associated with property and personal security

(e.g.fire,accidents,theft).

At PKN ORLEN, risk management is not restricted only

to the oil industry. Instead, it relates to the broad macro-

economic context of the Company operations. Implemen-

tation of the integrated risk management system makes

it possible to perceive the existing risks not only as threats,

but also as an opportunity to increase the Company’s

goodwill in all areas of its operations.

33


following adoption of the Act on privatisation of state-

owned enterprises in the summer of 1990. That act

initiated the gradual process of reducing the presence

of the State in economy, leading to thorough social

and economic changes in our country. However, the recent

global economic downturn made the Polish and European

experts – politicians, economists and journalists – review

their opinion on the relationship between the State

andthemarketandredefinetheroleoftheStateinthis

respect. On the one hand, there is a growing pres-

sure on introducing such regulations as would protect

the world from a similar crisis in the future, however,

on the other hand, the interference of the State in eco-

nomic development has in many countries pumped

the public debt to enormous dimensions, threatening

the future economic stability of the world. Specialists met

to discuss the direction in which the World is heading

in 2010 and the distribution of forces between the State

and the market in 20 years time.

PKN ORLEN is also actively represented in various organisa-

tions and associations, which is a chance to share experi-

ence,broadentheknowledgeandimprovequalifications.

Another advantage of such membership is the ongo-

ing and free of charge access to reports, draft legisla-

tion and information about normative acts concerning

the refinery and petrochemical sector on the Polish

and European market. It also matters that the Company

may present the stance of the chemical sector, protect

itsinterestsandinfluencelegalregulationsandtechnical

standards, etc. Members of sectoral organisations can also

benefitfromparticipationintrainingsessions,workshops,

conferences and seminars Last but not least, this kind

of activity helps build a positive image of the chemical

industry and petrochemical sector.

In 2010, the Company was represented in 37 organisa-

tions and associations, The Company plans to be a mem-

ber of 39 organisations and associations in 2011.


2.3. Participation in public life

In 2010, PKN ORLEN, as a market leader, was involved

in important sectoral events intended to promote dynami-

cally developing companies. Among others, the Company

was a sponsor of the MARQA 2010 Ranking of the Most

Valuable Polish Brands organised by the Rzeczpospolita

daily, the Congress of Oil and Gas Industry in Bóbrka

or the “Stock Exchange Listed Company of the Year”

ranking organised by the Puls Biznesu daily.

PKN ORLEN organised a discussion panel about “Stra-

tegicimplicationsandinternationalsignificanceofshale

gas production in Poland” during the 20th Economic

Forum in Krynica. The discussion was attended by ex-

perts and focused on the regional and international

consequences of potential discovery of unconventional

gas sources in Poland.

In 2010, PKN ORLEN launched the “Future Fuelled

by Knowledge” project whose goal is to initiate discus-

sions on issues of strategic importance for the European

and global economy. The project involves organisation

of conferences and discussion panels, and publication

of materials.

Thefirsteventintheserieswasaconference:“1990–2010

– 2030: how much state in the market, how much market

in the state. Experience and prospects for the develop-

mentof the Polish andEuropeaneconomy.”Thefirst

twentyyearsofprivatisationinPolandandthedifficult

crisis environment challenging both politician and en-

trepreneurs was the right moment to initiate a series

of meetings that would serve as a platform for the ex-

change of opinions and experience concerning the most

vital economic issues.

The “1990 – 2010 – 2030: how much state in the market,

how much market in the state” conference is an effort

to review the entire process of political and economic

transformation. The date of the conference – 16th Sep-

tember – was not a coincidence: it is associated with

a series of historic events that took place 20 years ago

F i i

or m e or a io , isi :


34


Do you think that the oil industry has

to face any specific challenges in order

to develop in a sustainable manner due to its

specific character?

The challenges facing the oil industry in the area

of sustainable development could well

be described as extreme. On the one hand,

the global economy relies to a large extent

on crude oil supplies and consumers consider

unlimited mobility to be one of their basic rights

but, on the other hand, the society and legislators

insist, as they should, on limiting hazardous

emissions, including CO2 emissions.

The European oil industry accepted the challenge

of supplying fuel and other products with as little

negative environmental impact as possible: since

1990, the energy efficiency factor has been

growing by 1% a year. For several years now, out-

dated uncomplicated refinery systems have been

gradually replaced with modern comprehensive

units capable of thorough processing of crude oil.

In terms of modernisation, Polish refineries

are among leaders not only in Europe,

but worldwide.

PKN ORLEN’s participation in public life means also its lob-

bying policy in Poland and in Europe, which is conducted

in a legal, conscious and fully transparent way. The Com-

pany bases its activities on direct lobbying, through active

involvement of its own experts and indi rectly, through sec-

toral and environmental organisations to which it belongs.

The main principles of PKN ORLEN lobbying policy include

the principle of lobbying ethics, sustainable development,

coordination, dialogue and adjustment.

In 2010, the Company was particularly actively involved

in issues related to increased safety of fuel supplies, fuel

and energy market regulations, promoting renewable

energy sources, investing in the energy sector, the en-

ergy and environment package, protecting the natural

environment, establishing corporate governance policies

and taxes in the fuel and energy sector.

It should also be noted that the Company was involved

in preparing legal regulations concerning mandatory

oil and liquid fuel reserves, liberalisation of the rules

of creating mandatory natural gas reserves, new requi-

rements concerning the quality of liquid fuels, new

Leszek Wieciech

General Director,

Polish Organisation of Oil Industry and Trade

The European oil industry has released a number

of new fuels that cause much lower emission

of hazardous substances (sulphur, lead, aromatic

hydrocarbons and benzene). It was possible thanks

to cooperation with the automotive industry

and researchers and, most importantly, thanks

to huge expenditure made by the oil companies.

Finally, it should be mentioned that the European

fuel industry is a major employer in the EU,

with appr. 100,000 people working in refineries

and 500,000 – in marketing and logistics, some

of whom are highly qualified specialists, engineers

and researchers.

To sum up, it is right to say that the European

fuel sector has become one of the leaders

of sustainable development.

35


www.europia.eu; www.concawe.be; www.popihn.pl

emission allowances trading scheme and a system for

the balancing and settlement of traditional emissions.

2.4. Participation in local and European projects

As one of the largest oil industry companies in Central

and Eastern Europe, PKN ORLEN feels responsible for con-

tributing to the European Union policies. We do our duty

by means of active membership in European petroleum

industry associations. One of those associations is EUROPIA,

a European forum where we represent the interests of our

region and the Company itself. The mission of EUROPIA

is to contribute in a constructive way to the develop-

ment of policies to safeguard the secure and sustainable

manufacturing, supply and use of petroleum products

by providing competent input and expert advice to the EU

Institutions, Member State Governments and the wider

community. One of the jobs of the Association in 2010

was publication of the White Paper on EU Refining,

a report that sparked discussion about the future role

of our sector in the EU’s new renewable energy economy.

Sucheffortsaresupportedbyscientificandtechnological

research conducted by PKN ORLEN together with other

members of the CONCAWE Association.

PKN ORLEN is also engaged in the work of European

sectoral associations. Apart from EUROPIA and CON-

CAWE, the Company is an active member of the Energy

Working Group of the BUSINESS EUROPE Association,

the Polish Organisation of Oil Industry and Trade (POP-

iHN) and the Polish Confederation of Private Employers

(PKPP Lewiatan). The Company was involved in preparing

the EU policy and legislation concerning strengthening

the principles of corporate governance for the functioning

of European enterprises and implementation by the Polish

Standardisation Committee of Polish standards concern-

ing corporate risk management in Polish enterprises.

As a result of close cooperation with local organisations,

such as POPiHN and PKPP, the Company was involved

in preparing assumptions for a new law on mandatory

crude oil and liquid fuel reserves, assumptions for com-

prehensive amendment of the biocomponent and liquid

biofuel law and expert opinions concerning the impact

of draft key EU legislation on the domestic oil industry.

2.5. National heritage

In 2010, PKN ORLEN continued its cooperation with the Na-

tional Museum in Warsaw, becoming the patron of the Pol-

ish Painting Gallery. The Company was also engaged

in the Museum’s celebrations of the 600th anniversary

of the Battle of Grunwald as a patron of the “Celebrations

of the 600th Anniversary of the Battle of Grunwald”. One

of the elements of the celebrations was publication of book

entitled “Jan Matejko – Bitwa pod Grunwaldem nowe

spojrzenia” with essays written by domestic and foreign

art historians about the battle itself and its presentation

by the painter, Jan Matejko. A light and sound installa-

tionbyStanisławSyrewiczwaspreparedanda3Dfilm,

inspired by Jan Matejko’s famous painting, “The Battle

of Grunwald”, was produced in association with Tomasz

Bagiński’s Platige Image studio. It should be added that

theCompanyalsocontributedfinanciallytothepurchase

of specialist conservation devices (microscopes) by the Mu-

seum in 2010. The microscopes were used to renovate

Matejko’s painting and will also be used to reconstruct

other masterpieces. The Company was also a patron

of the National Theatre in Warsaw. Thanks to the Com-

pany’s involvement, the audience had a chance to see

the famous opening night of “A Streetcar Named Desire”.

Another area of our activity is the city of Płock. The Com-

pany is a permanent patron of the Płock Masovian Mu-

seum which uses our help to supplement its collections

and make the current exhibitions more attractive. Moreover,

PKN ORLEN is a regular supporter of educational and art

conservation projects organised by the Zielińscy Library,

the city’s oldest cultural institution, for the local society.

Last but not least, the list of cultural undertakings in which

we have been invo ved features a concert of the National

Philharmonic Symphony Orchestra at the Płock Cathedral.

r mor i rmati , is :

in i

f vi

For more information visit:


36


2.6. Sports

For many years, PKN ORLEN’s marketing activities have

been based on sport sponsoring. The Company is diver-

sifying its portfolio of sponsoring activities and engages

in projects that have the potential to yield measurable

long-term benefits. Striving to become an important

sports sponsor, the Company is investing in athletes

and sporting initiatives aimed at improving the overall level

of Polish sport, but also the development of individual

disciplines and their representatives. Our contributions

to sport are important both from the marketing and social

perspective. PKN ORLEN constantly develops the portfolio

of its sponsoring activities, selecting those that sup-

port most effectively the development of the respective

disci plines and contribute to promoting the Company’s

respective brands.

Our sponsoring activities focus on the following two

sports categories: motor racing and athletics. Motor

racingwasthefirstsportthatPKNORLENwasinvolved

in,duetoitsproximitytotheprofileofouroperations.

More than 10 years ago, we established the ORLEN

Team, the first professional cross-country racing team

in Poland. Through the involvement of its members

and the sponsor, the team has become one of the best

recognised teams and has worked its way into the world

top teams. In 2010, the company established another

team – the VERVA Racing Team. The team consists

of two young and very promising drivers who will be

competing in the prestigious Porsche Supercup series.

PKN ORLEN also supports athletes from the ORLEN

Athletic Team who successfully compete in the most

important international sporting events.

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37


www.darserca.pl

2.7. Charity

PKN ORLEN is involved in charity activities both directly

and via its ORLEN – Dar Serca Foundation.

The ORLEN – Dar Serca Foundation is celebrating its tenth

anniversaryin2011.TheFoundationisapublicbenefit

organisation established in order to perform the social

mission of its Founder – Polski Koncern Naftowy ORLEN.

Theaimofitsflagshipprogramme,continuouslypursued

since its establishment in 2001, is to support family-run

children’s homes. Another area where the Foundation

is increasingly active are scholarship programmes. Cur-

rently, four programmes are in progress: a nationwide

programme, a programme for children from family-

run children’s homes, a programme for students from

Płock, and a new programme which started in 2010

and is addressed to students from the Płock District.

Another important part of the Foundation’s activities

is the promotion of health protection and human safety,

and supporting local societies.

In 2010, PKN ORLEN was also the nominal sponsor

of one of the six Swatch FIVB World Tour beach vol-

leyball tournaments, the ORLEN Mazury Grand Slam.

Moreover, theCompany co-financed a series of local

and international volleyball tournaments and one vol-

leyball match with Brazil, the current world champion.

PKN ORLEN also supports the Polish Olympic Movement

and sponsors the Polish Athletics Federation. Last but

not least, our sports-related CSR includes supporting

the Athletic Thursdays – the most important athletic

event for children and young athletes in Poland.

PKN ORLEN traditionally supports the development

of handball, no. 1 discipline in Płock. The Company

is the General Sponsor of ORLEN Wisła Płock, one

of the leading Polish teams, which since 1990 has not

missed the podium in Polish Championship games.

The Company also sponsors the ORLEN Handball Mini-

League for teams of young players, boys and girls, from

Płock and the neighbourhood. Thanks to the efforts taken

and support provided by the Company, in 2010 Płock

acquired a modern ORLEN Arena, a sports and entertain-

ment hall, the seat of ORLEN Wisła Płock.

F r more nformati n visit

For more i form io visit

i


38


What is such a young and ambitious person

guided by when determining the goals

of her life? What inspires and stimulates

you to pursue continuous development?

I believe in the saying that if you work hard

to achieve something beautiful, the effort will

go away and the beauty will remain.

This is why my every day is beautiful and has

the colours of a rainbow.

Over the last three years of secondary school,

I proved that there is no such word as “impossible”

in my vocabulary. Thanks to the scholarship,

I went to Denmark for one year, where I attended

a German-Danish school. I was the first

in the history of the school and so far the only

student from Eastern Europe to be elected

by peers as the school president. I am also

a member of the School European Club.

My involvement in the Club encouraged me

in particular to participate in history and EU

contests. The scholarship enabled me to invest

in myself without worrying about the costs

associated with developing my interests

and pursuing my educational aspirations.

The truth is that being a prize-winner

Małgorzata Masłyk

Recipient of scholarship

from the ORLEN – Dar Serca Foundation

The experience gained over a number of years has helped

us develop clear and precise principles of providing

assistance. The priorities of the “Charity Policy” have

been established. These are protection of life and health

as well as education and child care. Accordingly, the pre-

vailinggroupofbeneficiariesarefirebrigades,medical

institutionsandbeneficiariesfromtheeducationsector.

A notable change that took place over the last few years

was the stabilisation of the group of non-government

organisation with which PKN ORLEN has established

permanent relationships supported by long-term agree-

ments. Currently, a group of 7 foundations cooperate

on a regular basis with the Company. It should be noted

that some of the projects have continued for more

than 10 years now. In accordance with the principles

of corporate social responsibility, an important crite-

rion in developing those relationships were their social

and business aspects.

in numerous Polish and international contests

is associated with substantial costs.

Being socially active is also very important

for me. I am an active member of the Association

of Young Democrats and in the “Pokolenie”

(Generation) group that assists deaf-and-dumb

children. I devote my free time to poetry

and rowing. Thus, the scholarship enabled

my personal development, but at the same

time it allowed me to use my free time

for active participation in voluntary work

for the local society.

39


www.funduszgrantowy.plock.eu.pl

www.funduszgrantowy.pl

COMMITMENT

To continue cooperation within the framework

of cross-sectoral partnerships

In accordance with the principles of corporate social

responsibility, PKN ORLEN takes part in numerous initia-

tives and projects, including those dedicated to safety

improvement. We are also implementing our own original

projectbenefittingfirebrigades.

The Company receives numerous requests for assistance

fromnational and voluntary fire brigades concerning

co-financingof e.g. specialist fire fighting and rescue

equipment, such as fire engines, pumps andpersonal

equipment for firefighters. TheCompany appreciates

thefactthatfirebrigadesareatalltimesreadytobring

help to others and react in various critical situations.

Firefightershavemanytimesproventhattheyarewell

prepared to rescue people’s lives and property, if only

they have the right rescue equipment and funds to cover

their operating expenses. This makes them highly trusted

by the society.

Two organisations supporting local societies are particularly

worth mentioning: “Fundusz Grantowy dla Płocka” (Grant

Fund for Płock) and Stowarzyszenie “Fundusz Grantowy

Dobrego Sąsiedztwa dla Ostrowa Wielkopolskiego”

(The “Good Neighbourhood Grant Fund for Ostrów

Wielkopolski” Association). Cooperation in this area

has continued since 2002 for Płock, and since 2004 for

Ostrów Wielkopolski. PKN ORLEN’s involvement in this

project goes beyond charity work due to the fact that

the activities and financial contribution of local gov-

ernments are combined with the Company’s support.

The purpose of these projects, based on the UNDP

methodology in the area of sustainable development

strategy, is to broaden and strengthen cooperation

between the public and private sector in a way that

would serve both economic competitiveness and social

justice. These activities promote development of partner

relationships with the local society and create a positive

image of the Company They also support third-sector

development, since it is the local non-government organi-

sationsthatarethebeneficiariesoftheaforementioned

foundations.

f

For m r inf rm ion v i :

Fo more in


40


PKNORLENsupportsfirebrigadesinappreciationoftheir

incredible involvement and courage, and wishes to con-

tribute to their proper functioning. The Company supports

those fire brigades requesting for its assistancewhich

need it the most.

TheprinciplesofPKNORLEN’scharityworkarespecified

in detail on the www.orlen.pl website. Current informa-

tion regarding donations granted is published online

on the Company’s homepage and in the CSR folder

as well as in corporate media (the Intranet, ORLEN Studio

radio station, ORLEN ekspres newsletter). There was also

a campaign in national media encouraging people to do-

nate 1% of their tax to support the activities of the cor-

porate ORLEN – Dar Serca Foundation. The Foundation

has a permanent place in the Szerokiej drogi magazine.

Customers are encouraged to donate their VITAY points

to family-run children’s homes and to contribute 1%

of their tax. Information about PKN ORLEN’s assistance

isalsopublishedbythebeneficiariesontheirwebsites

and in local press.

For several years now, PKN ORLEN has been ranked among

the leaders in the “Philanthropy Leaders” competition,

in the category of companies that donate the largest

amount of funds for social purposes.

Other companies from the ORLEN Group also learn from

PKN ORLEN’s experience. Some of them have adopted

their own charity policies. A predominant part of dona-

tions granted by companies is directed to local needs.

2.8 „ORLEN.Bezpieczne drogi (safe roads)”

Given the nature of the sector in which PKN ORLEN operates,

initiatives aimed at improving road safety are very impor-

tant. The Company has been implementing its “ORLEN.

Bezpieczne drogi (safe roads)” programme since 2006.

Number of fire brigade units that received assistance

2008 2009 2010

19 24 59

BEZPIECZNE DROGI

In 2010, the programme focused on the problem of driver

fatigue. The motto of the campaign was: “2 hours driv-

ing, 20 minutes break”. A relaxed driver is a safe road

user, and a tired driver may be as dangerous as a driver

undertheinfluenceofalcohol.Asolutionisverysimple.

Each long trip should be planned in advance, taking into

account the need to make short, 20-minute breaks after

each 2 hours of driving.

The “ORLEN.Bezpieczne drogi” safe roads programme has

become a feature of the Polish landscape. It is appreciated

and positively evaluated by drivers as an important effort

to improve the level of safety on Polish roads.

3.1. 3.2. 3.3. 3.4. 3.5.

3.

SAFETY

Safety Policy at PKN ORLENMore than HSEFire Protection – In-House Fire BrigadeTransport Safety – the SPOT systemDisseminating the idea of safety - education

Safety – the key to development

42


SAFETYSafety – the key to development

3.1. Safety Policy at PKN ORLEN

PKN ORLEN’s safety policy is based on two fundamental

principles. First of all, human life and health protection

is always regarded as superior. Moreover, the corporate

operational activities take into account all the relevant

HSE standards, good practice and the latest achieve-

ments of knowledge and technology. The direction

of HSE-related activities is determined by the idea of full

safety assumed by the Company: “Zero accidents means

100% safety”.

PKN ORLEN’s safety policy is described in the Integrated

Management System Policy. In accordance with the docu-

ment, we protect the life and health of our employees,

outsourced contractors, suppliers and visitors by:

• performing comprehensive technological, organi sational,

economic and legal activities to prevent accidents

among our employees and outsourced contractors,

fireoutbreaksandindustrialorradiologicalfailure;

• ensuring a safe working environment for everybody;

• systematically improving the safety culture;

• integrating and improving cooperation between

theORLENGroupcompaniesinthefieldofthesafety

of work via a common safety platform;

• cooperation with leading scientific institutions

and knowledge transfer to the Company. PKN ORLEN

shall take reasonable efforts to continue such coop-

eration.

Ensuring a high level of safety in the petrochemical

industryisahugechallenge.Thespecificnatureofthis

industry involves a higher risk of hazards than in other

branches of the economy. This is why we always insist

that health and life protection is our priority. The actions

taken within the area of safety are aimed at achiev-

ing those objectives on all organisational levels, both

during and outside working hours.

We strive to achieve and maintain a safety level which

will eliminate the risk of fatal, grave and group acci-

dents, including accidents involving employees of out-

sourcedcontractors.Anaccident,fireorfailureisnot

something that cannot be avoided. Their effective

prevention is possible.

Increasing safety is an extremely complicated process.

It is important to apply the right training programme.

To educate is often more effective than to control.

The application of innovative technological and orga-

nisational solutions isnotan insignificant issue, too.

However, we must not forget that people are always

in the centre of our attention.

Dariusz Loska

Director of the HSE Office

43


WE INTEND TO INTRODUCE:

• asafetypassportforexternalcontractors;

• aHSEassistant;

• trainingforoutsourcedcontractorsincorporat-

ing scenarios of possible crisis situations that

may occur in the course of their work within

the Company’s premises.

Open communication with employees at all levels

of the orga nisational structure enables cooperation in deve-

loping internal standards and documents in the area

ofHSE,firepreventionandprocesssafety.Anysuggestions

made by the employees are recorded and are often used

to solve work safety issues.

The measures taken by PKN ORLEN to improve the safety

and conditions of work have for the second time been

rewarded with the “Gold Card of a Safe Work Leader”.

3.2. More than HSE

Product safety

The safety of all products offered by PKN ORLEN, both

fuels and petrochemicals, is guaranteed in accordance

with the EU and national legislation as well as corpo-

rate standards and regulations. Products are provided

with material safety data sheets that constitute a basic

source of information about the chemical substance

and preparation. That information is forwarded through-

out the entire supply chain. Material safety data sheets

contain information concerning, among others, hazards,

composition,behaviourincaseoffireandotherdata.

We implement rational management. We apply technolo-

gies and processes based on our theoretical and practical

knowledgeinthefieldofmanufacturingspecificproducts.

We ensure adequate conditions and technical protection

of production and logistic processes.

Dialogue is the best way to develop and ensure mainte-

nance of certain standards. A HSE Committee has been

established at PKN ORLEN. The principles of the Com-

mittee’s activities were regulated in an agreement with

trade unions. The agreement was executed on the basis

of the provisions of the Corporate Collective Labour

Agreement and generally applicable legislation. The Com-

mittee settles any issues associated with the development

of HSE conditions in the Company. The same regulations

serve as a basis for the functioning of a social labour

inspection whose work is administered by labour unions.

Cooperation aimed at developing good HSE conditions

in the Company includes meetings of the Corporate Social

Labour Inspector and Departmental Social Labour Inspec-

tors with trade unions, attended by a member of the PKN

ORLEN Management Board and employer’s representatives

responsible for contacting the social labour inspectorate.

Half of the Committee members are the employer’s repre-

sentatives, including HSE service personnel and a medical

doctor responsible for preventive medical care of the em-

ployees. The other half are representatives of the em-

ployees, including the Corporate Social Labour Inspector.

ItshouldbenotedthattheHSEOfficecooperatesdirectly

with the Inspector. These activities result in solutions

todifficultproblemsconcerningHSEandestablishment

of work safety procedures within the Comprehensive

Prevention System, among others.

44


Employee safety

We maintain statistics of accidents and non-casualty

incidents taking place within the Company’s premises.

We do not have statistical data broken down into genders

and regions, though it would be possible to collect such

data. We monitor employee health, draw conclusions

and take preventive actions. No grave, group or fatal

accidents were reported in 2010.

123 non-casualty incidents were reported within

the premises of the Production Plant in Płock. Once

again, the events were analysed in order to collect

as much information as possible and avoid grave injuries

in the future.

Efforts taken to prevent accidents, industrial and radi-

ological failures as well as fire outbreaks resulted

in a limited number of accidents, also among employees

of outsourced contractors. Many years of experience

in the development of safe working conditions resulted

in a reduction of accident rates at PKN ORLEN, which

in recent years have remained similar.

There is a close link between work safety culture

and the number and type of accidents. This is why our

current and planned actions focus on employee behaviour,

their individual character and attitude, and the physical

working environment. It is extremely important to develop

safety awareness.

COMMITMENT

PKN ORLEN is planning to develop stress man-

agement, i.e. assessment and monitoring of em-

ployee stress levels, job satisfaction or ongoing

preventive programmes.

At PKN ORLEN, safety is regarded as an issue of key

importance, and as such it is directly supervised

by members of the Management Board. A number

of projects and initiatives were implemented in 2010

within the framework of the new concept of full safety

at PKN ORLEN:

• Involvement of Top Managers – expressed by promoting

safe behaviour at work. Concern for employee safety

as well as putting work safety issues on par with

production issues help develop the right standards

of behaviour.

• Management “in a nutshell” – “nutshells” with

graphics and descriptions are a synthetic presentation

of the most important provisions of the Comprehensive

Prevention System, thus making it easier for the em-

ployees to become familiar with them.

• Supportive actions – 3 information movies concerning

the HSE issues at the Production Plant in Płock were

produced in several language versions (Polish, German,

English and Russian). They concern the following is-

sues: HSE during overhaul works, visitor safety within

the Company’s premises and instructional material about

YearNo. of accidents

AbsenceRate of

Total Fatal Grave Group Incidence1 Severity2 TRR3

2008 26 0 0 0 952 5.5 36.6 3.19

2009 23 0 0 0 996 5.0 43.3 2.90

2010 28 0 0 0 789 6.2 28.2 3.09

1) incidence rate – number of accidents per 1,000 employees2) severity rate – number of days of inability to work per 1 accident3) TRR – number of accidents per one million of man-hours

Accident rate at PKN ORLEN

45


hazards within the Plant. The movies are used during

training sessions and in the framework of promotional

and informational activities.

• Motivating, promoting and enhancing safe behaviour

at work and outside work by expressing approval

and appreciation of employees who behave in a safe

way and are committed to increasing safety at their

workplace.

• Work Safety as a corporate value – a proposal has been

prepared to supplement the Key Corporate Values with

“work safety” in order to promote and encourage safe

behaviour at work.

• Increasing employee awareness in this area is a priority

for the Company. Instead of increasing the number

of audits, we want to expand the system of counselling

and training activities. Besides all that, an upgraded

procedure for reporting accident risks enables the repor-

ting person to suggest relevant preventive measures.

COMMITMENT

PKN ORLEN will continue reducing the number

of audits and replacing them with counselling

and training activities.

282326

2008 2009 2010

30

25

20

15

10

5

0

Accidents in 2008–2010 (PKN ORLEN)

Incidence rate in 2008–2010 (PKN ORLEN)

TRR rate in 2008–2010 (PKN ORLEN)

6,25,05,5

2008 2009 2010

8

6

4

2

0• Introduction of:

– anti-electrostatic protective clothing, protective helmets

and impact goggles, and in the event of evacuation

–gasmaskswithfilters;

– anti-electrostaticandflameresistantclothing;

– protective shoes: anti-electrostatic, resistant to oil,

petrols and other organic solvents. 3,092,93,2

2008 2009 2010

4

3

2

1

0

46


Absence due to accidents at work in 2008–2010

(PKN ORLEN)

Severity rate in 2008–2010 (PKN ORLEN)

PKN ORLEN TRR rate in 2000–2010 (PKN ORLEN)

789996952

2008 2009 2010

1000

800

600

400

200

0

28,243,3

36,6

2008 2009 2010

50

40

30

20

10

0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

5

4

3

2

1

0

ORLEN Group regions and companies

Actions taken by PKN ORLEN are also being gradually

implemented within the ORLEN Group. The result was

a drop in the number of accidents in 2010. Most acci-

dents were minor and did not cause prolonged sick

absence. No repetitive accidents, typical of the chemical

industry, were reported.

It should be noted that concern for safety has resulted

in reduced accident rates at the ORLEN Group. The cur-

rent level of the TRR rate is comparable to that of other

international companies from the refinery and petro-

chemical industry.

Due to the diversity of operations of the respective

companies from the ORLEN Group, a HSE manage-

ment system and relevant safety standards have been

developed. Most companies have implemented and cer-

tified aHSEManagement System in accordancewith

the PN-N-18001:2004 standard.

COMMITMENT

PKN ORLEN will continue to intensify cooperation

among the ORLEN Group companies, including

by developing data bases and implementing HSE

management systems.

Category Year ORLEN Group*

Accidents at work2009 85

2010 73

Sick absence2009 3501

2010 2595

Severity rate2009 41.18

2010 35.55

Occupational diseases2009 0

2010 0

TRR rate2009 4.17

2010 3.86

* data concerns 22 leading companies from the ORLEN Group.

47


Safety of service suppliers and outsourced

contractors

One of PKN ORLEN’s objectives is to increase safety

among subcontractors. We undertake various measures

to achieve to achieve that objective, for example:

• pursuant to the decision of PKN ORLEN Management

Board of 11 August 2009, outsourced contractors

were obligated to implement a HSE Management

System in accordance with the Polish Standard

PN–N–18001:2004 Health, Safety and Environment

Management Systems. Requirements. Since 1 July

2010, the implementation of this system has been

one of the selection criteria for outsourced contractors

of future works at the Production Plant in Płock;

• we include a “Work safety” clause in contracts with

outsourced contractors;

• we have prepared a Guidebook for outsourced contrac-

tors and the PKN ORLEN services assisting outsourced

contractors;

• we have improved the monitoring of accidents invol-

ving outsourced contractors within the premises

of the Production Plant in Płock;

• we organise training sessions and we talk to out-

sourced contractors and their employees.

Technology safety and process safety

The Production Plant in Płock, the PTA Plant in Włocławek

and all the Fuel Terminals comply with the requirements

of the EU Seveso II Directive implemented into the Polish

EnvironmentalProtectionLawinthefieldofpreventing

major failure.

In concern for safety, PKN ORLEN has developed and regu-

larly updates documents containing systematic solutions

for prevention of and protection against the effects

of emergency situations. They ensure protection of people,

natural environment and property. All the documents

have been submitted to the local administration authori-

ties, i.e. Regional Environmental Protection Inspectorates

and National Fire Brigade units.

The Company operates a Process Safety Management

System based on the nine pillars referred to in Article

252 of the Environmental Protection Law that guaran-

tee protection of people and the environment. That

system is an element of PKN ORLEN’s overall manage-

ment and organisation system. It implements the Major

Accidents Prevention Policy (MAPP) applicable to all

the Company’s facilities and hazard analysis and process

risk assessment instructions.

The safety and protection measures applied at PKN ORLEN

are adequately correlated with the potential hazards. This

way, we are certain that we ensure an adequate level

of safety in our technological facilities.

PKN ORLEN performs process hazard analysis and safety

assessment by using such tools as: Preliminary Hazard

Analysis (PHA), Hazard and Operability Study (HAZOP)

and Layer of Protection Analysis (LOPA). They help

avoid mistakes already at the stage of issuing opinions

about and recommendations for project plans involving

the Company’s facilities. The Process Safety Manage-

ment System undoubtedly minimises the risk of failure.

For example, the very introduction of the HAZOP analysis

resulted in a drop in the number of failures.

The principles of process safety are implemented at PKN

ORLEN at every stage of the functioning of technical

facilities, beginning with designing through construction,

operation and modernisation until disconnection and clo-

sure. The facilities are equipped with modern security

and protection systems (e.g. monitoring and measuring

systems,alarms,safetylocks,firesafetysystemsandex-

plosion prevention systems).



r more in o

,

48


3.3. Fire Protection – In-House Fire Brigade

As far as safety is concerned, it is of crucial importance

topreventfireoutbreaks,explosionsandreleaseofhaz-

ardous chemical substances. The PKN ORLEN In-House

FireBrigadespecialisesinfire-fightingandrescueopera-

tions in industry, especially in regard to chemical, high

altitude, water and medical rescue.

The Brigade’s main duties include:

• organisationandconductionoffire-fightingandrescue

operations not only at PKN ORLEN sites, but also any-

where in the country, within the National Fire-Fighting

and Rescue System (KSRG) and the Hazardous Material

Transportation Assistance System (SPOT);

• monitoringfireandchemicalsafetyoftheCompany’s

facilities;

• ensuring good technical condition of fire-fighting

and rescue equipment;

• evaluation and determination of building, installation

and technological requirements concerning respective

facilitiesinaccordancewithfireprotectionregulations

and best available engineering knowhow;

PKN ORLEN In-House Fire Brigade is the largest unit

of this kind in Poland and Central Europe. In 2001,

it was incorporated into the National Fire-Fighting

and Rescue System, which means that the National

Fire Brigade may also count on its support.

Our fire fighters are professionals of the highest

calibre, ready to react wherever their help is needed,

not only in industrial areas. The professional training

and experience they have gained through fire-fighting

and rescue operations, mock drills and training

on fire training grounds abroad as well as

the state-of-the-art fire fighting and rescue

equipment they have access to make our In-House

Fire Brigade a role model for other fire services.

Our fire fighters also serve the local communities

with devotion and courage. During the dramatic

events of May 2010, a part of our team fought

with the flood that attacked a part of the Płock

District, e.g. near Dobrzyków, Jordanów and Wymyśl.

We apply the latest solutions available in the field

of fire protection. Many of them go beyond

the current requirements of Polish legislation.

Responsibility and concern for safety generate

innovative solutions and stimulate continuous

development.

Jan Szrajber

PKN ORLEN In-House Fire Chief

49


• organisation of training and mock drills at PKN ORLEN

facilities in Płock attended by intervention services,

employee teams, National Fire Brigade units and other

rescue units incorporated in the National Fire-Fighting

and Rescue System;

• ensuring operating protection of the facilities of the fol-

lowing ORLEN Group Companies: BOP, ORLEN Oil,

ORLEN Asfalt, ORLEN GAZ.

PKN ORLEN is always concerned with increasing the safety

level. This is why the training and development of profes-

sional rescuers is so important. In 2010, almost 150 tacti-

calandpracticaldrillswereheld.Firefightersparticipate

in specialist courses dedicated to removal of industrial

leakage, road rescue, water rescue, high altitude rescue,

qualifiedfirstaidorprocedurestobefollowedincase

of threat of terrorist attacks. 550 chemical rescuers

participated in specialist training and drills co-organised

by the In-House Fire Brigade. Our Fire-Fighters are ready

to react immediately in emergency situations. In 2010,

they were called out to 125 incidents.

140

120

100

80

60

40

20

0

9263

13 20 15 4 1

125

Tota

l loc

al h

azar

ds

incl

udin

g e

mer

genc

y ca

lls

Fals

e al

arm

s

Tota

l fire

out

brea

ks

Fire

out

brea

ks in

com

pany

Fire

ext

ingu

ishe

d be

fore

arr

ival

Exte

rnal

Fire

out

brea

ks

Tota

l

of t

he F

ire B

rigad

e

Fire statistics 2010

50


3.4. Transport Safety – the SPOT system

PKN ORLEN undertakes various activities to ensure safety

also beyond the premises of the Production Plant. We are

actively involved in SPOT, and the In-House Fire Brigade

manages the National SPOT Centre.

SPOT is a Polish information and assistance system,

the purpose of which is to prevent road accidents invol-

ving hazardous chemical materials or minimise their

consequences. It is a perfect example of cooperation

between chemical plants and transport companies han-

dling hazardous materials.

In 2010, assistance within the SPOT system was provided

in eight incidents.

The better trained individual employees are, the higher

thesafetylevel.Two-dayannualHSEandfireprotection

training courses have been introduced for employees

involved in particularly dangerous work as well as those

who work in areas where there is a risk of explosion.

Emergency training and drills are organised for chemical

rescuers from the respective departments, the In-House

Fire Brigade and the crew.

Employee education is supported by interactive materi-

als (movies, presentations, the Internet). An e-learning

training system for the administration personnel was

implemented and tested in 2010. Training materials

regar ding good HSE practice are published in the Intranet.

They concern such issues as e.g., HSE in the chemical

industry or IT.

PKN ORLEN’s concern for safety also means that rel-

evant measures are taken on a regular basis. Within

theframeworkofWorkSafetyDays(thefirstThursday

of each month), heads of organisational units perform

aself-checkofHSE,fireprotectionandprocess safety

issues. These meetings include also Brief Talks about

Safety with employees concerning professional haz-

ards and self-protection against them. On those days,

specialists from the HSE Department inspect randomly

chosen units.

3.5. Disseminating the idea of safety – education

Our objective is to continuously develop the work safety

culture within the Integrated Management System. In order

to develop ever better training programmes, PKN ORLEN

applies the principle of behavioural safety, which involves

promoting safe behaviour and modelling risky behaviour.

The forms, methods and scope of HSE training programmes

aretailoredtothespecificcharacterofindividualjobs.

COMMITMENT

PKN ORLEN will continue its activities related to edu-

cating and motivating employees and outsourced

contractors. The following initiatives are planned:

• SafetyOpenDay;

• work safety promotion programme – a HSE

competition.

Police Bydgoszcz

Wloclawek

Plock

Pulawy

NowaSarzyna

JedliczeTarnow

Trzebinia

Oswiecim

KedzierzynKozle

Brzeg Dolny

Płock, the National SPOT Centre

Signatories of the National SPOT Centre

4.1. 4.2. 4.3. 4.4. 4.5.4.6.

4.7. 4.8.4.9.4.10.

ENVIRONMENT

PKN ORLEN activities and their impact on the climate and environment

4.

Climate changes – challenges In the heart of Poland Water and wastewater managementWasteGreenhouse gas emissionsExpenditure and investments in environmental protectionTogether, we change the worldResponsible CareGreen CompanyResponsible production

52


ENVIRONMENTPKN ORLEN activities and their impact on the climate and environment

4.1. Climate changes – challenges

In 2010, PKN ORLEN strengthened its position

of the leader in environmental protection. However,

we must not forget that the years to come will bring

major changes in the broadly understood chemical

industry. The new Community legislation that is about

to enter into force requires ever more restrictive solutions

in the area of enviro nmental management.

Climate changes concern the entire globe rather than

individual continents or countries. Preventing climate

changes requires coordination of climate policies

on a global scale. Socially acceptable solutions are

developed through international negotiations. Poland

is involved in climate negotiations at the EU level,

and the EU represents its Member States at interna-

tional climate summits. Polish Presidency of the Council

of the European Union obliges us all to pay particular

attention to shaping the EU’s new climate architec-

ture in such a way that it has coherent objectives

and isachievable in termsof safefinancing,andac-

ceptable for all the Member States.

As it is, climate policy is shaped in the process of mul-

tilateral negotiations which start on the national level

before they move to the international arena. The na-

tional level of negotiations is a very important link

in the climate process, since this is where negotiation

mandates are established, determining the framework

within which Government delegations will operate

during international negotiations. Due to the fact

that any arrangements made on the international

level have to be implemented by the respective coun-

tries, each local entity has the right to express their

opinion on the desired direction of changes in climate

and to actively participate in the process of developing

anofficialnegotiatingstanceonthenationallevel.

Adam Czyżewski

Chief Economist at PKN ORLEN

Companies from the energy sector (in the broad mean-

ing of the term), whose practical know-how related

to the possibilities and costs of adapting to climate

challenges may serve the negotiation process, play

a particularly important role here. Shaping the future

EU climate policy is the domain of the Government.

However, the government does not act on its own

behalf. Instead, it represents companies which create

jobs and households that, in the end, will pay the costs

of climate policy. PKN ORLEN, as an operator to whom

the energy and climate policies apply may – and should

–influencetheirfutureshape.Thebestwaytomake

use of the potential of economic and business know-

how concerning climate change policies and their

impact on the economy and business is to participate

in the public debate.

53


One important challenge that faces the chemical indus-

try are the assumptions of the Climate Package, such

as the assumed reduction of greenhouse gas emissions

and energy consumption by businesses. Despite the tran-

sition periods that the Polish Government succeeded

innegotiating,itwillbeverydifficultforchemicalpro-

cesses which inherently generate high energy consump-

tion and, consequently, high emissions, to comply with

the assumptions of the Climate Package. Beginning with

2013, Poland and nine other Member States of the EU

will be allowed to allocate free-of-charge only a portion

of greenhouse gas emission allowances to its energy

sources.

The number of free-of-charge emission allowances to be

allocated to the respective power plants will be calculated

by Governments of the EU Member States in relation

to technologies that emit the least pollutants in the pro-

cess of generating electricity from the respective fuels,

such as gas or coal.

However, beginning with 2020, Polish power plants will

be forced to buy all their emission allowances at auctions.

This will undoubtedly affect energy prices. The chemical

companies are forced to buy most of the energy they

consume on the market, and even if they have – like

PKN ORLEN – their own energy sources, they have to pay

for emission allowances for those sources. The chemical

industry is preparing to function in the new settings,

which in many cases can be detrimental to competi-

tiveness. Measures are being taken to reduce energy

consumption, use biomass as fuel, etc. However, they

arenot sufficient.Wewill needdecisions and actions

concerning replacement of the basic energy sources to be

taken on the country level. The obligation to reduce

greenhouse gas emissions applies not only to energy

sources. Beginning with 2013, practically all chemical

plants will have to participate in the emissions trading

scheme. For those of them which might otherwise be

forced to move their production outside the EU, a pro-

tective mechanism has also been prepared in the form

of free-of-charge allocation of emission allowances.

However, the volume of those allocations will promote

only low emission technologies. Those plants that do not

meet the emission indicators will have to buy their emis-

sion allowances, which will make their products less

competitive. All those measures are aimed at reducing

greenhouse gas emissions caused by energy generation

andrefineryandchemicalproductionprocesses.

Another courageous step towards setting the objectives

of modernising and reducing the burden of industry,

including the chemical industry in Europe, was the entry

into force of the Directive 2010/75/EU of the European

Parliament and of the Council on industrial emissions

– the Industrial Emission Directive (IED). The provisions

of the Directive concerning new conditions associated

with obtaining an integrated permit that systematically

regulates not only all the conditions of exploiting the en-

vironment (emissions, resources), but also the principles

of production processes, must be transposed to the Polish

legal system by 7 January 2013. For more than 3,000

Polish plants that are obliged to have an integrated

permit, it will be a sort of an environmental permission

to conduct their business.

What is important now is the form of transposing the provi-

sions of the IED Directive to the national legislation, espe-

cially the revision of the Environmental Protection Law. Our

previous experience shows that during the transposition

of the EU laws the Polish legislator tends to adopt provisions

more restrictive than those in the underlying Directives,

thus reducing the competitiveness of our companies.

Full text of the Directive 2010/75/EU of European Parlia-

ment and of the Council on industrial emissions

http://eur-lex.europa.eu/

Climate package:

www.europarl.europa.eu/sides/

r m s


For more i formation isit

54


The chemical industry cannot exist without power

engineering: both professional and industrial

combined heat and power plants. From their

perspective, the new Directive imposes particularly

tough requirements in terms of emission standards

for: SO2, NOx, CO and particulates.

In order to adapt the PKN ORLEN Combined Heat

and Power Plant to the new requirements

that will enter into force in 2016, calls

for tenders for the construction of an exhaust gas

desulphurisation unit and an exhaust gas catalytic

denitrogenation unit have been announced.

Reducing emissions and impact to the conditions

determined in the conclusions of reference

documents describing the best available techniques

(BAT) will be a major challenge. In our Company,

the process of introducing technological improve-

ments, emission reductions and better utilisation

of raw materials has been going on for years.

Because of that, the new requirements do not

mean that the Company has to cross a huge gap,

but rather that it has to continue investing

in adapting its technology to the growing

requirements.

Arkadiusz Kamiński

Environmental Protection Office Director

4.2. In the heart of Poland

The environment in which we operate is extremely

important for us. Even though the PKN ORLEN Produc-

tion Plant is not located in protected areas or in direct

vicinity thereof, its impact zone includes landscape

parks and nature reserves. All initiatives undertaken

by the Company are aimed at ensuring the highest

possible environmental neutrality of production, stor-

age and distribution processes. Production installations

donotexertasignificantimpactonbiodiversitythanks

to procedures that guarantee safe exploitation and ad-

herence to permissible emission parameters. The same

applies to products, which are properly used thanks

to material safety data sheets.

Compliance of processes with environmental permits was

verifiedtwicebyrepresentativesoftheMarshal’sOffice

of the Mazowieckie Voivodeship in Warsaw. No non-

compliance was reported. Besides, 9 inspections were

conducted by the services of the Mazowieckie Voivodeship

Environmental Protection Inspectorate, as a result of which

one post-inspection order was issued and complied with.

In 2010, no accidental release of hazardous substances

was reported at the Production Plant in Płock that could

affect human life, soil, vegetation, water reservoirs

or underground water.

55



4.3. Water and wastewater management

Water as a technological medium is used in many

ways in the production process. For example, it is used

as a coolant or charge for the production of steam

intheCHP.Itisalsousedforfire-fightingpurposes.

The Vistula River is a natural water source for the Pro-

duction Plant in Płock. This is where the water intake

with a pumping station to transport water to the Plant

is located. PKN ORLEN has a separate water permit for

the uptake of surface water and ground water for the en-

tire Production Plant in Płock – decision of the Governor

ofMazowieckieVoivodeship,ref.no.WŚR-P.6811/1/03

of 22 December 2003 allowing:

• uptake of surface water from the Vistula – valid until

31 December 2013;

• uptake of ground water from the water intake

in the “Biała” region – 8 wells – valid until 31 Decem-

ber 2013.

Despite the growing number of production facilities

and the growing volume of oil processing, water uptake

from the Vistula River remains practically unchanged.

This is possible thanks to the constant modernisation

ofproductionfacilitiesandincreasingtheirenergyeffi-

ciency. Wastewater management is also improving.

It is possible to e.g. reuse a part of treated production

wastewater in the industrial water network.

The Central Wastewater Treatment Plant (CWTP), where

wastewater from the Production Plant is delivered by four

wastewater systems, treats wastewater until it complies

with the parameters established in the integrated permit.

There are also 21 local pre-treatment plants linked with

respective units. They play an important role in reducing

pollution in wastewater delivered to the CWTP.

In 2010, we reported an increase in the volume of waste-

water discharged to the Vistula by appr. 12.4%. This

was due to a 28% increase in the delivery of rainwater

and drainage water to the CWTP as compared to 2009

due to heavy rains and a high ground water level.

Volume and type of water uptake in 2008-2010

Parameter

22,991,953

513,000

2,643,956

1,261,677

22,448,565

489,000

4,196,598

1,311,230

22,785,313

509,000

4,139,784

1,315,784

1.5

4.1

- 1.4

0.3

2008 2009 Up/Down trend[%]2010

Water uptake from deep water well [m3]

Water uptake from the Vistula [m3]

Volume of reused water [m3]

Drainage from the desalting of blocks for industrial and fire-fighting water [m3]

or m re ormatio , visi

r i a , s


r i :

56


For the last 14 years, the Company has been implement-

ing a “Method for wastewater treatment for industrial

purposes” developed by the Water and Wastewater

Treatment Institution. It consists in closing the water

and wastewater circuit and generating industrial water

from treated wastewater.

The 2009 Corporate Responsibility Report, pp. 63-64

Parameter

12,381,024

676,524

11,351,599

726,812

12,757,779

889,310

12.4

18.3

2008 2009 Up/Down trend[%]2010

COD load in wastewater discharged to the Vistula [kg/y] [m3]

Wastewater discharge to the Vistula [m3]

Quantity and quality of wastewater discharged in 2008–2010

Comparison of the amounts of waste generated in 2008–2010

4.4. Waste

In 2010, we reported a 1.6 k Mg increase in the amount

of generated sewage compared to 2009. The excess waste

was generated mainly by works related to disassembly

and investment projects performed in 2010.

12

10

8

6

4

2

0

2008 2009 201011,99,4

7,8

10,7

7,86,2

7,6

4,63,1

4,3 4,84,7

Total waste

[’000

Mg]

Recycled Non-hazardous waste (excl. municipal waste)

Hazardous waste

n :

f ,


Total neutralised waste including:

Recycled

Stored waste

Waste 2008 2009 2010

- thermal

- stored

- other

10.7

0.5

0.3

0.2

0.0

0.7

6.2

0.8

0.5

0.1

0.2

0.8

7.8

0.7

0.5

0.2

0

0.9

57


Amount of waste generated in 2008-2010

Waste disposal methods in 2008-2010

Total generated waste: including:

Waste 2008 2009 2010

- hazardous waste

- other waste (excl. municipal waste)

11.9

4.3

7.6

7.8

4.7

3.1

9.4

4.8

4.6

The recycled waste ratio has remained stable at approx.

80% of total generated waste over the last few years.

Of the 4.8 k Mg of hazardous waste generated in 2010,

3.8 k Mg was recycled outside Poland, 0.5 k Mg was

collected by domestic operators and the other 0.5 k

Mg was stored.

In 2010 we generated 4.6 k Mg of non-hazardous waste

(other than municipal waste).

In 2010, PKN ORLEN, in accordance with the relevant

decision, collected waste in the warehouses pertain-

ing the Plant. The waste collected in 2010 amounted

to 115 Mg.

58


In the reported period, PKN ORLEN did not recycle iron

sulphate or iron (III) sulphate.

Transfer of hazardous waste in 2010 was as follows:

• domestic transport:

– for recycling – 154.790 Mg,

– for neutralisation – 584.952 Mg,

• to other countries for recycling – 4,128.937 Mg.

This applied both to waste generated in 2010 and waste

stored from previous years.

4.5. Greenhouse gas emissions

In the National CO2 Emission Allowance Allocation Plan for

2008 – 2012, PKN ORLEN received the total of 32,895,735

allowances for the Refinery, CHP and Petrochemical

Cracking units operated by the Company.

Utilisation of the allocated allowances is calculated based

onreportsmadeasfor31December2010andverified

by an authorised auditor.

Even though emissions from the CHP units exceeded

the amount of allocated allowances, the missing allow-

ances may be transferred from the units that have excess

allowances. Consequently, PKN ORLEN will avoid buying

the missing allowances on the market.

In 2010, the Company obtained decisions modifying

the permissions to participate in the CO2 emission allow-

ancetradingschemefortheCHPandRefineryunits–valid

until 14December2019. Themodification concerned

the CO2 emission monitoring method.

Installation

3,358,958 3,360,762 100.05 -1,8204

2,161,551 2,021,453 93.52 140,098

1,058,638 771,024 72.83 287,614

6,579,147 6,153,239 93.53 425,908

Remaining allowances

Allowance allocation

in 2010

% of allowancesused in annual

scale

Actual emission in 2010

Refinery

CHP

Petrochemical cracking

Total for PKN ORLEN

Emissions from the respective units owned by PKN ORLEN in 2010

59


Emission of selected substances in 2008–2010

Emission of major pollutants by the Płock

Production Plant in 2000-2010

ThePetrochemicalCrackingunit–OlefinsII–hasapermit

valid until 31 December 2017.

GHG emission is generated from units which handle

processes covered by the CO2 emission allowance trad-

ing scheme:

• fuel combustion in fuel combustion units (CHP);

• combustion in the elements of the Refinery units,

in particular in:

– furnaces,

– flares,

• refineryprocesses:

– hydrogen production,

– catalyst regeneration,

– decoking of furnace chambers (pipes),

• combustion in the production of propylene and eth-

yleneinpetrochemicalcrackingprocess(OlefinsII).

Calculation of emissions

PollutantVolume of emission [Mg] Up/down trend compared to 2009

2008 2009 2010 [Mg] [%]

Sulphur dioxide 20,444.59 20,975.23 22,381.42 1,406.19 6.70

N trogen monoxide (as per nitrogen dioxide) 6,821.48 7,124.27 8,460.74 1,336.47 18.76

Carbon monoxide 812.16 1,010.87 1,309.07 298.20 29.50

Total hydrocarbons 1,384.01 1,238.12 1,412.07 173.95 14 05

Fuel combustion particulates 453.34 399.75 509.65 109.90 27.49

Carbon dioxide 6,158,959.11 6,126,894.42 6,351,440.32 224,545.90 3.67

Other pollutants 270.71 370.05 370.98 0.93 0.25

Total pollutant emission 6,189,145.40 6,158,012.71 6,385,884.25 227,871.54 3.70


Emission of NOx, SOx and other major pollutants emitted

to the air, by type and weight.

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

45

40

35

30

25

20

15

10

5

0

Total emission Sulphur dioxide Total (excl. CO2) hydrocarbons

F more information, visit


60


In 2010, we reported a minor increase in pollutant emis-

sion compared to 2009. Higher emission of SO2, NOx

and particulate matter was generated mainly by the emit-

ters of the CHP. Increased emission of gas pollutants

wasduetointensifiedoperationoftheCHPprocesses

caused by periods of extreme weather conditions in winter

months as well as the fuel structure. Increased emission

of particulate matter was mainly due to a higher ash

content in the combusted fuel.

The growth in carbon monoxide was generated by the Hy-

drogen Sulphide Disposal unit, which was primarily due

to a higher demand for hydrogen sulphide gases. Another

reasonwastheintensifiedoperationofpost-combustion

furnaces at the Hydrosulfreen unit and changing the com-

position of post-combusted chimney gas and fuel gas.

Despite the increase, emissions remained within the limits

established in the integrated permit.

Pollutant emission measurements

Ongoing measurements:

• conducted at 3 emitters at the CHP;

• measurements concerned emission of: SO2, NOx

(NO2), particulates.

Periodic measurements:

• in 2010, pollutant emission was measured 84 times

at the emitters of the PKN ORLEN Production Plant

in Płock, 62 of which were mandatory measurements.

The results were submitted to the Regional Environ-

mental Protection Inspectorate and to the Marshal’s

OfficeofMazowieckieVoivodeship;

• emission measurements were carried out at emit-

ters covered by the integrated permit twice during

the year, once in each half-year;

• the scope of periodic emission measurements covered

(depending on the emitter) the following pollutants:

SO2, NO2, NOx (NO2) CO, particulates, H2S, aliphatic

hydrocarbons, aromatic hydrocarbons: benzene, tolu-

ene, xylene, cumene.

Emission measurements around the Production Plant

in Płock

On 1 January 2010, the air monitoring system applied

at PKN ORLEN was reorganised. Following consultations

with the Regional Environmental Protection Inspection

in Warsaw, emission measurements at the Maszewo

and Trzepowo stations were discontinued. Currently,

the corporate monitoring network includes only one

station located outside the fenced premises of the Pro-

duction Plant in Płock (at Junior High School no. 5).

Nowa Biała

MaszewoDuże

KoloniaBiała

Dobrzyńska

W. Z

gien

ieck

iego

Che

mik

ów

I Łukasiewicza

Dłu

ga

Okó

lna

Sier

peck

a

Krzy

wa

Szpitalna Med

yczn

a

Bielsk

a

Maszewo

Fabryka Maszyn

Kostrogaj

StareTrzepowo

60559

559

559

552

552

NoweTrzepowo

Trzepowo

60

O3, CO, SO2, NO2, BTX

Gimnazjum nr 5

Location of automatic air monitoring stations around the PKN ORLEN Production Plant

61


In 2010, PKN ORLEN performed the following measure-

ments of air pollutant emissions:

• Junior High School no. 5 – emission of O3, CO, SO2,

NO2, BTX.

It should be noted that the station at the Junior High

School no. 5 monitors the most densely populated area

in direct vicinity of the Plant.

constituted 20.93 % of total expenditure incurred on im-

plementation of investment projects at the PKN ORLEN

Production Plant in Płock in 2010.

Parameter ConcentrationMonitoring station

Admissible values*Junior High School

no. 5

Ozone [µg/m3]

max D8 159.6 1201

No. of days of exceeded D8 21 25 days

average annual concentration 52.4 ---

NO2 [µg/m3]

max D1 126.3 200

number of excess D1 0 18 times

average annual concentration 11.5 40

SO2 [µg/m3]

max D1 168.2 350


max D24 63.7 125


average annual concentration 9.3 20

CO [µg/m3]

max D8 1,744 10,000

number of excess D8 0 ---

average annual concentration 346 ---

H2S [µg/m3] average annual concentration --- 5

Total hydrocarbons with methane [mg/m3] average annual concentration --- ---

Benzene [µg/m3] average annual concentration 2.43 5

* acc. to the Regulation of the Minister of Environment of 3 March 2008 (Journal of Laws /Dz. U / No.47, item 281)1 target level – achieved in 2010D8 – 8-hour rolling averageD1 Ý 1-hour averageD24 – 24-hour average

The admissible average annual concentration outside

the premises of the Plant was not reported for any

of the pollutants.

4.6. Expenditure and investments in environmental protection

In 2010, capital expenditure on tasks related to environ-

mental protection at the PKN ORLEN Production Plant

in Płock amounted to PLN 148.12 mn, which is appr. 23%

less compared to 2009, due to completion of a number

of projects. Capital expenditure on environmental projects

COMMITMENT

Over the next seven years we plan to implement

other energy and environmental projects worth PLN

1.4 bn. The purpose of the programme is to continue

the measures already taken by the Company to pro-

tect the environment and to increase the power

output and balance PKN ORLEN’s energy demand.

62


Environmental fees charged on the Production Plant

in Płock for air emission and the volume of wastewater

discharge went up in 2010.

Reasons for increased fees for air emissions:

• fuel quality changed, and average sulphur content

in oil and heating gas went up,

20,00

15,00

10,00

5,00

0

[PLN mn]2008 2009 2010

16,5717,23

19,64

15,4615,46

17,68

Total Emission Water uptake Wastewater

1,091,081,15

0,70,680,82

Environmental fees charged on the Production Plant in Płock

Environmental fees charged on the Production Plant in Płock in 2009–2010

Type of feeAggregate fee [PLN] Up/down trend compared to 2009

2008 2009 2010 [PLN] [%]

Total 16,572,326.63 17,226,918.00 19,644,093.00 2,417,175.00 14.03

Emission fees (including transport)* 14,784,628.49 15,461,484.00 17,679,435.00 2,217,951.00 14.35

Water uptake fees 1,085,833.47 1,082,459.00 1,146,012.00 63,553 00 5.87

Wastewater discharge 701,866.67 682,975.00 818,646.00 135,671 00 19.86

• a new production unit – Hydrogen Production Plant

II – was put into operation,

• more fuel was combusted in winter due to low tem-

peratures.

The higher fees for wastewater discharge are mainly at-

tributable to high rainfall and the high ground water level.

The amount includes fees for CO2 emission allowance allocation.

63


4.7. Together, we change the world

PKN ORLEN consequently undertakes measures aimed

at environmental protection. The milestones:

• in 1999, two nest boxeswere fixed on chimneys

of the Combined Heat and Power Plant and the Claus

Unit;

• in 2000, the Company started cooperation with

the ”Peregrine Falcon Restitution in Poland” Pro-

gramme Board, which changed name to FALCON

Society for Wild Animals in 2002;

• thefirstbirdshatchedin2002.

More birds hatched in 2010. Four peregrine falcon chicks

were seen in the nest boxes on the CHP chimney.

The Polish Red Book of Animals lists the peregrine falcon

as CR – critically endangered species.

Mr Sławomir Sielicki, a falconer and the Chair of the FAL-

CON Society for Wild Animals, ringed young females

with yellow ornithological rings. Rings are put on birds

that hatch in municipal and built-up areas. They also

wear blue bird-watching rings displaying large letters

and digits. This way, information may be read from

largedistanceswiththehelpoffieldglasses. It isvery

likely that the parents of the new chicks are the couple

which settled at ORLEN’s premises in 2002. Since then,

29 chicks were born at ORLEN.

What was new this year was that two females were

provided with small satellite emitters that send radio

signals to the satellite. The information received from

the emitter makes it possible to determine the bird’s

whereabouts with 1 km precision. Satellite emitters

also enable tracking young peregrine falcons in order

to analyse the routes of their migration and the areas

theyoccupyinthefirstyearsoftheirlife.

Find a falcon!

http://webcam.peregrinus.pl/pl/telemetria-satelitarna

www.peregrinus.pl


4.8. Responsible Care

Since 1997, PKN ORLEN has participated in the Respon-

sible Care Programme (RC). In 2010, we completed

the process of implementing the Framework Responsible

Care Management System. An audit of the system, con-

ductedat theturnof2010and2011,confirmedthat

the level of the implementation entitled the Company

toapplyforacertificatetotheProgrammeBoard.

In 2010, the Company implemented 43 tasks associated

with all areas of the RC Programme and completed

28 of them. 10 of those tasks are in progress and will

becontinuedin2011.Outoftheremainingfivetasks,

whose status was determined to be “incomplete”, two

were once again proposed for implementation in 2011.

m o m i , i :

, i



64


4.9. Green Company

Environmental awareness is present in PKN ORLEN’s day-

to-day operations at all levels of the Company. The CEO,

Jacek Krawiec, has received a Polish Environmental Partner

CertificatefromtheNationalEnvironmentalCouncil.

The Production Plant in Płock has started implement-

ing a municipal waste segregation system directly

at the placeswhere thewaste is generated (offices,

conference rooms, kitchen, staff rooms). The system

is being gradually introduced in the Company’s facilities.

Duringthefirststageweprovided:

• 411 different colour containers for PAPER, PLASTIC

and GLASS;

• 5 “REBA – small cylinder” containers for used batteries;

• 277 small rectangular cuboid containers for used

batteries;

• 12 1.1 m3 collective containers.

The volume of segregated municipal waste has grown,

andconsequentlythevolumeofwastedumpedatlandfills

has reduced. This, in turn, translates into lower waste

management-related environmental fees.

4.10. Responsible production

In 2010, the Company continued implementing invest-

ment projects aimed at limiting the impact exerted

by the Production Plant on the respective environmental

components initiated in the previous years. These projects

included the construction of the HON VII unit (Diesel Oil

Hydrodesulphurisation Unit) and the related infrastructure,

the construction of the Claus II unit and the related

infrastructure, and the reconstruction of the CHP fuel

system. Moreover, we continued the replacement of pilot

burnersatthemaintorchburnerswithenergyefficient

burners,andthealterationofprocessfillinginwetcool-

ing towers in the cooling system.

The HON VII unit was launched in November 2010.

The unit allows to increase the production of low-sulphur

components for production of high-quality diesel oil

and light heating oil. Another effect is the increased

production of diesel oil – by appr. 1 mn tonnes a year.

Once the PX/PTA complex is launched, crude oil process-

ing at the units in Płock will increase.

Our employees learn how to be green every day dur-

ing environmental training sessions. We organise a very

popular “Catch the Hare” competition. The purpose

of the competition is, above all, to raise environmental

awareness and sensitivity among our employees.

We use e-invoices for fuel wholesale transactions in Po-

land. The application of the electronic data exchange

system has significantly reduced paper consumption

in our Company. Other advantages of the include cost

reduction, time saving, easier storage and browsing

of documents as well as unlimited, safe and quick access

to invoices at any time and place. Currently, more than

60% of invoices are generated electronically.

65


Despite the adverse economic conditions with which

the companies are forced to cope now, we can say

that 2010 was a good year. The Diesel Oil Hydrodes-

ulphurisation Unit HON VII that we launched will

enable us to increase the pool of low sulphur

diesel oil and heating oil. Meanwhile, the launch

of the Paraxylene Plant, a part of the high-tech PX/

PTA complex, is a strategic project for the develop-

ment of the Polish petrochemical industry, both

in regard to the invested capital and the scale

of production and the application of state-of-the-art

technologies, which are unlike anything that has

been used in Poland until now. The construction

of the new PX/PTA units by PKN ORLEN is an exam-

ple of cooperation and exchange of know-how

between specialists from Poland, Japan, the USA

and Italy which is unique on the national level.

Consequently implemented monitoring of key

parameter indicators enables a more effective

on-going evaluation of the operation of production

units and at the same time constitutes a basis

for future decision making.

The currently implemented energy programme will

yield higher efficiency of the units and higher

power output, which will enable balancing

the Company’s energy demand.

Piotr Giżyński

Head of the Process Department

The new paraxylene unit, launched in 2011 at the Produc-

tion Plant in Płock, uses very high quality charge. Therefore,

in 2010, the Company constructed and launched a new

ORP(OlefinsRemovalProcess)systemattheVReform-

ing Unit.

Another important event was also the commencement

of construction works of a new gas turbine powered

by natural gas – “blue fuel” characterised by the lowest

emission indicators.

In2010,thePłockrefineryprocessed14,452,000tonnes

of oil.

On 8 March 2010, a foundation act for construction

of the most high-tech steam boiler used in industrial

power engineering was signed. This event inaugurated

a long-term Programme of Environmental and Power

Engineering Investment Projects at the Production Plant

in Płock. Construction of a steam boiler of the capacity

of 300 MW is to be completed in the 2nd quarter of 2012.

The purpose of the programme is to protect the environ-

ment, increase the power output and balance the energy

demand, while at the same time reducing by appr. 90%

emissions from the CHP. Investment projects worth PLN

1.4 bn will be implemented over the next few years. These

are, among others, the construction of a boiler of the ca-

pacityof300MWtaccompaniedbythefirstPolishexhaust

gas denitrogenation unit, and the construction of units

which will adapt the other boilers at the CHP to the new

emission standards that will be required in the future,

i.e. an exhaust gas desulphurisation unit, an exhaust gas

catalyticdenitrogenationunitandelectrofilters.

Theprogrammewillyieldhigherefficiencyoftheunits

and higher power output, which will enable balancing

the Company’s energy demand. Moreover, it will enable

a very cost-effective utilisation of various low quality frac-

tions of gudrons and oils, even those with high sulphur

content, as fuel for power generation, with much lower

emission of gas and particulates from the Płock power

engineering facilities than currently.

66


2009 Dynamics2009/20102010

Crude oil processed 14,526 14,452 -1%

Total petrol 3,055 2,736 -10%

Total diesel fuel 5,330 5,359 1%

Ekoterm Plus heating oil 790 699 -12%

Aviation fuel 291 394 35%

Propane-butane fraction (LPG) 210 241 15%

Total fuels 9,676 9,429 -3%

Fuel output (%) 66.61 65.24 -1.37 pp

Output of white products (%) 78.08 78.19 0.11 p.p.

Production volumes of selected refinery products at the Production Plant in Płock, in ‘000 tonnes

Energy consumption in 2010

Description UoM 2010 performance

Crude oil processing Mg 14,452,000

Gudron consumption – only EC, and it is partly heating oil Mg 936,482

GJ 38,296,482

Heating oil consumption Mg

GJ

Fuel gas consumption

(incl. natural gas)

Mg 136,369 only EC

GJ 6,644,100 only EC

Mg

GJ

Diesel fuel consumption in PZC Mg 410

GJ 17,547

Electric ty purchase MWh 51,333

GJ 184,801

Heat energy purchase GJ 361,906

Total consumption of fuel and purchased energy GJ

Electricity sale MWh 585,783

GJ 2,108,819

Heat energy sale GJ 4,630,310

Heat energy production in PZC boilers (gross) GJ 41,759,439

Heat uptake in steam by the Industrial Complex (fromPZC+purchasefromPolyolefinandAsphalts) GJ 24,529,738

Heat consumption in hot water including: – the c ty – Industrial complex + external recipients

GJ 2,606,851

GJ 2,308,912

GJ 297,939

Supply to steam network from production units GJ 5,268,836

Heat production in waste heat boilers GJ 18,220,263

Electricity production MWh 2,076,295

Electricity consumption (Industrial Complex + PZC) MWh 1,541,845

67


Quality and range of motor fuels in 2009-2010

In order to increase the output of the most valuable

products (depending on the current market situation),

the Production Plant in Płock implements advanced

process control systems.

In the autumn of 2010, the Company completed

the construction of a modern heat recovery steam boiler

at the Fluid Catalytic Cracking II (FKKII) unit for tech-

nological gas cooling. The energy recovered in this way

is used to produce 4 MPa technological steam.

The Company has independently developed several

tools to monitor certain key indexes such as: EII energy

index, MA (mechanical availability index), OA (operational

availability) index, PU (plant use) index. Data collected

in this way is used for ongoing operational assessment

of used assets. It is also an indicator to be considered

in current and future decisions. These activities form a part

of the Company’s Fuel Studies conducted by Solomon

Associates, which are aimed at assessing the Company

from the perspective of competitiveness on the world

refinerymarket.


Pro-environmental effects in terms of fuel pro-

duction

All types of petrol produced at PKN ORLEN contain

a combination of the best quality purifying additives,

whose main component is a detergent that guarantees

compliance with the highest criteria of intake valve

cleanliness established in the World-Wide Fuel Charter.

In late November 2010, the Company launched

the production of a new type of base petrol contain-

ing 1.2 %(V/V) of a bio-component: ethyl tert-butyl

ether [BB95E1.2] compliant with the corporate standard

ZN-ORLEN 43:2010, and alcohol petrol ES95A 4.8 E 1.2

on the basis of the same standard, compliant with

the PN-EN 228:2008 standard and the Regulation

of the Polish Minister of Economy of 9 December 2008.

Product rangeProduction

volume[Mg]

Average sulphur content

[% weight]

Benzene content[% V/V]

Ethanol content[% V/V]

ETBE content

[% weight]

Eurosuper 952009 140,689 0.0007 0.77 - -

2010 172,090 0.0009 0.67 - -

Eurosuper 95 w th EETB

2009 778,178 0.0008 0.80 - 8.53

2010 592,611 0.0009 0.67 - 9.68

Super Plus 98 w th EETB

2009 295,200 0.0008 0.66 - 10.56

2010 239,863 0.0008 0.55 - 10.26

Eurosuper 95 w th Ethanol Płock Prod. Plant*)

2009 917,906 0.0008 0.74 4.89 -

2010 771,602 0.0008 0.61 4.89 -

Eurosuper 95 w th Ethanol Storage Facilities

2009 920,024 0.0008 0.74 4.84 -

2010 969,892 0.0008 0.61 4.83 -

VERVA 98 Storage Facilities

2009 128,233 0.0008 0.66 - 10.56

2010 119,045 0.0008 0.55 - 10.26

Average content of substances in motor fuels

2009 0.0008 0.62 1.39 4.24

2010 0.0008 0.61 1.38 4.31

* Including the total of 61,557 t of ethyl-alcohol petrol since 29 November 2010.

r mo e in r a io visit

a ,


e n m t , v

68


Share [%] of individual types of petrol in the entire petrol production in 2009-2010

Production of the purest components of green petrol in 2009-2010 [Mg]

Ether share [%] in unleaded petrol (Eurosuper 95, Super Plus 98, VERVA 98) in 2009–2010

Unleaded petrol 95

Petrol type 2009 2010

Unleaded petrol 98

VERVA 98

86.69

9.28

4.03

87.47

8.38

4.15

ETBE

Component type 2009 2010

Alkylate

Isomerizate

97,853

115,323

477,458

89,125

108,192

463,798

Content

2009 2010

ETBE 9.55

Unleaded petrol: – Eurosuper 95 – Super Plus 98 – VERVA 98

Unleaded petrol: – Eurosuper 95 – Super Plus 98 – VERVA 98

9.97

69


Range and quality of diesel fuel

In 2010, PKN ORLEN produced the following types

of diesel oil:

“Super” urban diesel oil is used in road transport,

mainly in public transport, in big urban agglomerations

and environmentally protected areas. Usage of this kind

of fuel is associated with lower emission of particulates,

which was achieved by selecting components that guar-

antee the right distillation parameters.

Ekodiesel Ultra diesel oil is top quality diesel fuel that

meets the strictest quality and environmental requirements

for diesel fuels in the European Union Member States.

In the diesel oil group, the Ekoterm Plus heating oil

is a top-quality, modern and safe energy source.


Product range 2009

Production volume [Mg] Sulphur content [% weight]

2010 2009 2010

5,179,475 5,238,677 0.00082 0.00078

114,977 108,387 0.00046 0.00036

Ekodiesel Ultra*excl. ON diesel stored in salt caverns

ONM Super

* Including ON Verva diesel oil.

For more informatio , v sit

r mo e n o at o , v s t


2009

Aggregate amount [Mg] Up/down trend

2010 [Mg] [%]

19,476 21,740 2,264 11.6

43 41.2 -1.8 -4.2

134,850 145,425 10,575 7.84

In heating oil

In diesel oil

Recovered from processed crude oil

Sulphur content

70


Sulphur content in fuel manufactured by PKN ORLEN

Range and quality of heating oil

Product range 2009

Production volume [Mg] Sulphur content [% weight]

2010 2009 2010

753,387 699,047 0.060 0.054

930,999 960,788 2.00 2.19

27,734 17,399 0.85 0.82

129,263 99,057 0.13 0.18

Ekoterm Plus heating oil

Heavy heating oil C-3

Heavy heating oil 1

Furnace oil for industrial process furnaces

Code of Ethics and core values as the foundation of our operationsPKN ORLEN employee figuresRecruitmentProfessional developmentEmployee support provided by the employerDialogue with the employeesResponsibility for retired employeesEmployee Volunteering

5.1.

5.2. 5.3. 5.4. 5.5.5.6. 5.7. 5.8.

5.

WORKPLACE Responsible employer

72

Responsible employer

Global success starts locally, and it is achieved by peo-

ple who work for the company. PKN ORLEN is guided

bythisprincipleinthefieldofemployeerelations.

We know that the key to success is the involvement,

responsibility and professionalism of our employees,

as well as good communication in mutual relations,

which is why we want to be near the employee from

the beginning of his or her employment. At the same

time, we remember about and appreciate long years

of experience of our current employees, and we keep

in touch with those who have already retired, but still

feel a part of the ORLEN family.

Our intention is to make the work for the Company not

onlyasourceoffinancialsatisfaction,butalsoachance

for professional development. However, to be responsi-

ble means not only to work, but also to take care of our

environment, which is why we promote and support

numerous pro-social initiatives of our employees. We are

convinced that individual approach to each employee

helps build involvement and acquire the best personnel.

What is also important is the dialogue and collabora-

tion with social partners in search of new solutions

thatwould both benefit the employees and boost

the Company’s development.

Rafał Sekuła

Executive Director, HR

WORKPLACEResponsible employer

5.1. Code of Ethics and core values as the foundation of our operations

The general principles of the Code of Ethics, adopted

in 2005, and the chapter devoted to relations within

the Company emphasise the need to observe the law

and good habits, and the principle of respecting the dig-

nity of each human being. Activities aimed at popularizing

the Code of Ethics have always highlighted its strong links

with the Human Rights Charter. We wrote in greater detail

about PKN ORLEN’s current Code of Ethics and the core

values applied by our Employees in their work in previ-

ous Reports.


PKNORLENhas established thepost of EthicsOfficer

in order to make sure that all stakeholders are free

to report any violations of the provisions of the Code

ofEthics.EmployeesmayalsoreporttotheEthicsOfficer

any irregularities, which makes them feel that they have

a say in ensuring observance of the values. The Ethics

Officerisobligedtoguaranteeanonymityofanyperson

submittingacomplaint Heor she justifiescomplaints

and takes or initiates corrective measures. The Ethics Of-

ficerpresentsanyreportedethicalproblemstotheMan-

agement Board, making sure that the person reporting

aproblemcannotbeidentified.Inspecialcircumstances,

when the welfare of the Company is at stake, the Eth-

ics Officer reports directly to a competent Member

of the Management Board. He or she also presents

to the Management Board annual reports of actions

undertaken by him or her to promote corporate culture

based on PKN ORLEN’s corporate ethics and values.


For more i formation, si

r

For more n rm tio v it

73


TheEthicsOfficer isobligated tomonitor theapplica-

tion of the Code of Ethics in relation to any issues

reported to him or her, and submit a consolidated report

to the Management Board. As the employee awareness

of standards arising from the Code of Ethics grows,

they get involved in discussing problems and morally

equivocal situations. The majority of problems reported

in 2010 concerned internal relations in the Company

and moral issues. Each reported problem was analysed

in the context of the provisions of the Code of Ethics,

and actions were taken to explain and resolve each issue.

As a result of engaging many business areas in corrective

measures, the percentage of resolved issues is grow-

ingeveryyear.TheEthicsOfficer isobligedtodevelop

open communication, thoroughly analyse the principles

applied in the Company, make people trust him or her,

get involved in difficult discussions concerning ethical

dilemmas, and publicly comment on behaviour that

is incompliant with the Code of Ethics. We are aware

that it takes a long time to change the people’s attitude

to moral issues, which is why we regularly organise edu-

cation and communication activities. Proper behaviour

is promoted in corporate media (52 articles and auditions

in “ORLEN ekspres” and ORLEN Studio). The Company

has also organized group meetings and workshops

concerning ethical problems.

PKN ORLEN shares the knowledge and presents the ex-

periencegainedinthisarea.In2010,theEthicsOfficer

presented them:

• at the Business Centre Club and to the students

of a post-graduate course on “Ethics in Business”

attheLeonKoźmińskiUniversityinWarsaw;

• during a panel at the International Conference on Busi-

ness Ethics;

• in a publication entitled “Ku Rzeczypospolitej gos-

podarczej”, edited by Professor Gasparski.

PKN ORLEN applies the general principles of law and re-

spect for human rights in its operations. Consequently,

the Company’s activities are not associated with the risk

of child labour or forced labour. Moreover, there have

been no cases of violation of the rights of indigenous

people in the history of our Company. In 2010, the Ethics

Officerreceivednocomplaintsoncorruption.

999

3709

4708Total

Other

P ³ock

P³ock Other Total Other TotalP³ock

300

250

200

150

100

50

0

300

250

200

150

100

50

0

271

168103

11 110

74


5.2. PKN ORLEN employee figures

PKN ORLEN employee figures

Total number of employees engaged in 2010* New employees who left the Company in 2010*

The total number of employees is the number of persons

who worked for PKN ORLEN in 2010 (even if they were

employed for 1 day only), including employees with

“suspended” status, i.e. those who were on maternity

leave, unpaid leave or rehabilitation leave.

* Excl persons re-employed in 2010

75


New employees by gender and age

New employees who left the Company – by gender

and age

Age groups

Age groups

Female Male

250

200

150

100

50

0

228

43<30 31–40 41–50 51–60

250

200

150

100

50

0

15388

24 6

Female Male

10

8

6

4

2

0

74

<30 31–40 41–50 51–60

10

8

6

4

2

0

63

1 1

76


In 2010, PKN ORLEN employed 4,708 persons based

on a work contract, of which:

• 4,246 were open-ended contracts;

• 400 were closed-ended contracts;

• 36 were trial period contracts;

• 26 were contracts with substitute employees.

Age groups

<31 31-40 41-50 51-60 >60 Total

40 74 40 70 16 240

Fluctuation by age groups

<31 31-40 41-50 51-60 >60 Total

0.85 1.57 0.85 1.49 0.34 5.10

Gender

Female Male

75 165

Fluctuation by gender

Female Male

1.60 3.50

Fluctuation

The ratio of the lowest salary in the Company to the stat-

utory minimum salary in Poland is 205%.

PKN ORLEN does not apply separate procedures for

employment of persons from the local market.

Gender

Female Male

943 3,765

Age groups

<31 31-40 41-50 51-60 >60 Total

698 1,405 1,158 1,305 142 4,708

Managerial personnel (employment based on a work contract) by category

The total number of employees who left the Company

was 240 (number of employment contracts terminated

between 31.12.2009 and 30.12.2010).

77


PKN ORLEN, as a company located in Płock,

pays particular attention to developing long-term

relationships with the societies among which

it operates. Activities aimed at promoting

PKN ORLEN’s image on the local market are

a permanent item of the Recruitment Team’s

agenda. We are eager to get involved in the promo-

tion of skills training and education of youth. For

many years, we have been closely cooperating with

high schools and universities located in Płock, i.e.

the Zespół Szkół Centrum Edukacji (school of chemi-

cal engineering) and Zespół Szkół Budowlanych

(school of building engineering). The cooperation

consists mainly in organising apprenticeship

programmes. One of the projects associated with

our involvement on the local market was a series

of workshops for students of the local high schools

(Liceum, Technikum, Zespół Szkół Centrum Edukacji

and IV LO in Płock). The projects were dubbed

“The Entrepreneurship Week”. Moreover, PKN ORLEN

has established cooperation with the Business School

of the Warsaw University of Technology.

Joanna Burgieł

Director, Employee Skills and Development

Management Office, Human resources

PKN ORLEN promotes professional development

not only of its employees, but also of young

people – university and secondary vocational

schools graduates – giving them opportunities

to gain their first professional experiences.

Since 2002, the Company, in association with

Labour Offices across Poland, has implemented

an Apprenticeship Programme. Additionally,

PKN ORLEN joined, for the first time, a nation-wide

competition entitled “Grasz o staż”

(win an apprenticeship) in 2010.

http://www.grasz.pl

http://www.orlen.pl/PL/OFIRMIE/KARIERA/AKTUALNOSCI/

Strony/default.aspx

5.3. Recruitment

Our recruitment processes focus mainly on employees

who already work for PKN ORLEN and the Capital Group.

We also recruit employees from the external labour

market, taking into account the diversity and specific

nature of the corporate business segments.

We undertake a broad range of recruitment activities.

The following activities which were particularly actively

implemented in 2010 should be noted:

• the Company initiated cooperation with a number

ofuniversitycareeroffices;

• an employer profilewas developed and published

on the largest Polish job search portal pracuj.pl

and on the website of the Wrocław University of Tech-

nology;


r i

For mo e in o m tio , visi :

F vi

78


• the Company was represented at numerous job fairs,

such as those organised by the Cracow University

ofTechnologyorthePłockLabourOffice,attheVirtual

Job Fairs organised by the pracuj.pl job search portal,

and theAcademic Job Fairs organisedby the Łódź

University of Technology. The Company was also

represented at the Engineering Job Fairs organised

in Warsaw by the BEST Students Association;

• the Company was a co-founder of the 15th edition

of the Płock Job Fairs: “From Education through Inno-

vation to Employment”. In association with the Płock

LabourOffice,thecompanydevelopedtheformula

of the Fairs and prepared a conference that accom-

panied the Fairs. The name of the conference was:

“Highly qualified staff as the basis of innovative

economy”.

In order to help our new employees feel comfortable

at work, we have prepared for them an Adaptation

Programme through which they get acquainted with

the Company’s operations and corporate culture, and with

their own duties. The tools of the Adaptation Programme

are adjusted accordingly to the current needs.

www.orlen.pl – the Career bookmark

5.4. Professional development

The process of educating and ensuring professional

development of our employees is an investment that

enables us to build a strong market position. The goal

of the Company’s training policy in 2010 was to support

business areas in implementing strategic tasks and goals

through the provision of personnel with the required

knowledge and practical skills.

All employees are subject to regular assessment under

a bonus system based on qualitative and quantita-

tive performance indicators. Employees are evaluated

on a monthly, quarterly or annual basis, depending

on their position. Performance indicators are individually

planned for each employee. They are determined through

cascading of strategic objectives from the top to the bot-

tom of the job hierarchy. This way, we have the cer-

tainty that tasks carried out by individual employees are

in line with the Company’s strategic objectives. In 2010,

a skills study was conducted for the entire Company.

The purpose was to diagnose the skills and the effect

was a training and development agenda for the next

year. During the study, the employees and their superiors

had the opportunity to plan an employee’s professional

development in line with his or her professional plans.

Employees are offered participation in various activities

designed to stimulate their skills, development and train-

ing, which translates into their better performance at work

and enables them to achieve their professional plans.

PKN ORLEN offers various possibilities of professional

development:

• soft skills training (managerial skills, communication,

innovation, work management);

• specialist (hard) skills training;

• foreign language courses;

• skills training through participation in university or post-

graduate courses, legal advisor internship, ACCA,

CIMA or other courses.


79


In 2010, more than 8,800 PKN ORLEN employees par-

ticipated in professional training courses. The number

includes employees who participated in more than one

training course. The average number of hours of training

per employee per category is:

• 28.03 hours – per employee in the category of mana-

gerial jobs,

• 27.84 hours – per employee in other job categories.

Moreover, our employees attend various local and inter-

national conferences, which is an opportunity for them

to broaden and share their knowledge, and to gain new

experience. Conferences are also a great way to learn

about good practice applied by other companies and about

most recent trends in various areas of operation.

In order to ensure the safety of its staff, PKN ORLEN

organises obligatory training in accordance with relevant

legal provisions. These include HSE training and training

requiredinordertobeallowedtoperformspecificjobs.

Apart from performing their everyday duties, the employ-

ees had the opportunity to check their skills by manag-

ing a virtual company under the Global Management

Challenge Poland 2010 project.

In 2010, the Company implemented a programme for

the development of managerial skills, the “Energetic

Leadership” for senior managers. The purpose of the pro-

gramme is to develop managerial skills from line man-

agement to strategic management, which requires such

features as being passionate about one’s work or being

able to inspire others to always do better.

Another HR development project is the “Champions

League”, dedicated to production foremen whose duties

include team management. The purpose of the pro-

gramme was to broaden the set of tools necessary

for adequate employee management. It consists of three

two-day workshop modules, each of which is devoted

to a different topic: leadership, team management

and communication skills.

Moreover, the Company provides outplacement support

for employees made redundant as a result of reorganisa-

tion processes. The Outplacement Programme includes,

among others, a training package consisting of dedicated

training, guaranteed by the Company, and optional train-

ing, suggested by an employee, for employees who decide

to take part in the Voluntary Job Resignation Programme.

Training guaranteed by the Company includes: BLOCK 1

“Parachute – active job search techniques” and BLOCK 2

“Entrepreneurship – starting one’s own business”.

5.5 Employee support provided by the employer

PKN ORLEN employees have access to an extensive social

benefitpackage:

• co-financingofholidaysorspatreatment;

• holidayco-financingforchildrenandteenagers;

• co-financing of sporting and recreational activities;

rehabilitation treatment and cultural and educational

activities;

• non-returnable monetary or in-kind donations;

• housing loans;

• Christmas presents or gift vouchers for children.

Employeesreceivetheaforementionedbenefitsonthebasis

of a work contract, irrespective of whether they work

full or part time.

Polski Koncern Naftowy ORLEN provides its employees

with a broad range of health services which, apart from

occupational medicine, include comprehensive specialist

consultancy, comprehensive diagnostics and lab tests,

outpatienttreatment,fluvaccinationandrehabilitation.

The Company, in association with Wojskowy Instytut

Medyczny (the Military Institute of Medicine) in War-

saw and ORLEN Medica in Płock, studies the impact

of the working environment on the health of PKN ORLEN’s

employees.

Assistance provided to employees and their families

2210

36340 8 5

Health prevention programmes organised

by the Medical Institute of Medicine in Warsaw

Influenza vaccination programme

Financial aid from the Company Social

Benefits Funds

Non-refundable donations to employees

who suffered from the flood

Housing loans to employees

who suffered from the flood

80


The Company also reacts to various crisis situations affect-

ingouremployees,suchasthefloodinPolandin2010.

PKN ORLEN and the corporate trade unions initiated

an aid programme using the resources of the Company

SocialBenefitsFund.Theemployeeswhohadsuffered

fromthefloodreceivednon-refundabledonationsand/

or preferential housing loans.

Employeeswhofindthemselvesinaparticularlydifficult

situation may count on psychological support offered

by the Company, which includes counselling, assistance,

therapy and advice on how to cope with professional,

health or family problems The corporate media were used

to advise the employees on how to achieve a work-life

balance.

Our employees have access to an intranet services dedi-

catedtotheHRarea,wheretheycanfindthenecessary

information and frequently asked questions answered

by thepersonnelof theOfficeof theExecutiveDirec-

tor for HR.

5.6. Dialogue with the employees

Any cases concerning collective rights and interest at PKN

ORLEN are resolved in the light of the principle of social

dialogue and respect for mutual interests.

In accordance with the Collective Labour Agreement,

PKN ORLEN respects the principle of freedom of activ-

ity, equality of trade unions, and non-discrimination

on the grounds of trade union membership.

Each process leading to termination of work contracts for

reasonsnotassociatedwithemployeesisfirstconsulted

with the trade unions. Depending on the process type,

minimum notice period before implementing a process

is 7 to 45 days, which goes beyond the time limits

established in relevant legal provisions.

100% of the employees working for the Company are

covered by collective agreements.

81


A number of initiatives are undertaken to promote

dialogue, including, in particular:

• periodical meetings of the PKN ORLEN Management

Board members and the employer’s representatives

with leaders of the corporate trade unions, the purpose

of which is to exchange information, consult and nego-

tiate.Themeetingsfocusonthemostsignificantsocial

and employee issues;

• execution of collective agreements with trade unions

concerning the rights of employees affected by reor-

ganisation programmes and the agreement concerning

outplacement services offered to PKN ORLEN employees

under reorganisation processes to be implemented

until 31 December 2012;

• ongoing communication with trade unions concerning

reorganisation measures.

5.7. Responsibility for retired employees

PKN ORLEN takes care of appr. 8,000 pensioners

in Poland by:

• providing them with a social and medical package

(e.g.non-refundabledonations,co-financingofholidays

or spa treatment or housing loans);

• supporting people in a difficult personal, family

orfinancialsituation(e.g.non-refundabledonations,

preferentialhousingloansforfloodvictims,financial

help for people living on their own and suffering from

a terminal illness);

• providing assistance to the children of former employees,

suchasbuying their school suppliesor co-financing

their holidays;

• access to specialist medical treatment, consultations

and hospitalisation at the Military Institute of Medicine.

PKN ORLEN has also implemented a programme of spe-

cial celebrations of 70th, 75th, 80th, 85th etc. birthday

anniversaries of its former employees. The celebrations

include meetings with representatives of the Company’s

top management and giving special diplomas signed

by the President of theManagement Board, flowers,

gifts and money.

PKN ORLEN has established Senior Club Boards for

its retired employees. The objectives of those Boards

are, above all, to integrate the pensioners, to provide

regular or emergency assistance and to take care of fam-

ily members (children in schools). Currently, there are

12 Senior Club Boards in various cities in Poland (Białystok,

Gdańsk,Katowice,Cracow,Lublin,Łódź,Płock,Poznań,

Rzeszów, Słupsk, Szczecin, Warsaw).

Besides, PKN ORLEN provides its premises (free of charge)

for the meetings of its former employees: old age and dis-

ability pensioners who are members of various groups,

such as the Polish Association of Diabetics, the Polish

Association of Old Age and Disability Pensioners, the Pol-

ish Tourist Association (PTTK) or the Solidarity movement

(NSZZSolidarność).



82


5.8. Employee volunteering

PKN ORLEN supports volunteering projects initiated

and implemented by its employees. Employee Volunteer-

ing is very important for the employees who do good

out of the kindness of their hearts. A growing number

of both projects and volunteers leaves no doubt that this

area of activity matters a lot to the employees of our

Company.

In May 2010, our volunteers helped families from

the Płock District and other regions of the country who

hadsufferedduringtheflood.Withlogisticassistancepro-

vided by the Company, employees of the ORLEN Group,

movedby the sufferingof the inhabitants of flooded

area, organised a charity collection. The things they

managed to collect were delivered to the Crisis Man-

agement Headquarters in Gąbin. The collection was

spontaneous, and the organisers managed to collect

many useful things, such as detergents, houseware,

food, clothes, toys for children, pots and pans, and even

stovesandgascylinders.Morethan50familiesbenefited

from the collection.

In June, PKN ORLEN and Płock City Hall, the organisers

of the Chemist’s Day and Płock History Days, organised

afundraisingeventforfloodvictims.Duringthethree-

day celebrations, funds were collected in the streets

of Płock by local scout groups. PKN ORLEN employees

actively participated in fundraising and donated their

contributions during company integration meetings.

All the funds raised were allocated to renovate a school

buildinginBorkiwhichhadbeendamagedbytheflood.

In May, another edition of the “Let’s paint a smile” event

was organised. Employees of PKN ORLEN’s Retail Trade

West Region gave joy and happiness to children from

the children’s home in Lisków near Kalisz. Our volunteers

equipped the children’s home with three state-of-the-art

computers and internet connection, a barbecue corner

in the garden and stands at a professional beach vol-

leyball stadium. During the renovation, the children, their

caretakers and volunteers went on a trip to Poznań,

where the kids had a lot of fun.

83


In July and August 2010, the 2nd edition of the “Magic

Schoolbag” event took place. The Company’s volun-

teers brought joy and smiles to the faces of more than

250 children, 1st to 3rd grade primary school pupils

fromdisadvantagedfamilies(beneficiariesoftheSocial

Care Institution in Płock). Children received colourful

schoolbags with nice notebooks, colourful pencil cases

and other things they need at school. The event was

culminated during the “Back to school time” family picnic,

attended by children and their parents, representatives

of the Social Care Institution in Płock and volunteers.

A number of contests and games with prizes were

prepared for the children. There were also music perfor-

mances. The Company volunteers organised interesting

sports and art competitions, too.

In August 2010, PKN ORLEN, in association with

the ORLEN – Dar Serca Foundation, bought 60 sets

of colourful bedding (pillowcases, sheets, covers) and cut-

lery for the new children’s ward at the Płock hospital.

More than 20 volunteers delivered the bedding bought

by PKN ORLEN to the hospital. They also left teddy

bears for children patients in each room of the ward.

Their involvement intheprojectonceagainconfirmed

that the Employee Volunteering motto: Together we can

do more is true. The volunteers, full of energy and ready

to help, devoted their free time to take part in the project.

In December 2010, the 4th edition of the “Make dreams

come true” event took place. PKN ORLEN volunteers

helped make come true the dreams of younger and older

children from family-run children’s home all over Poland.

Once again, we proved to be a Company with a heart

of gold. More than 100 children found the presents

they had been dreaming of under their Christmas trees.


www.wolontariat.orlen pl

The “Make dreams come true” project is an addition

to the Christmas card competition organised by ORLEN.

Each year, we organise a Christmas meeting for all chil-

dren from family-run children’s homes to thank them for

their beautiful Christmas cards and their involvement.

We host more than 500 children and caretakers. We

prepare numerous attractions for our guests. Each author

of a Christmas card receives a bag full of sweets. We also

have attractive prizes for winners of the competition.


For more inform tion vis

84


Awards

• IT Leader for the best application of Information Technology in industry and IT Consolidation within the ORLEN Capital Group, a project aimed at consolidating IT processes of the Group’s Polish, Czech, Lithuanian and Ger-man Companies.

• Polish Economy Ambassador in the “European Brand” category of the second edition of the competition organized by Business Centre Club under the honorary patronage of the Minister of Foreign Affairs.

• The best managed Polish company according to the ranking of the Best Managed Companies in CEE 2010 organised by the British Euromoney magazine.

• Leader of the List of 500 largest Polish enterprises published by the Polityka weekly.• First place in the 4th edition of the Europa 500 list of leading companies in Central and Eastern Europe.• Winner (for the 9th time) of the Polish edition of the largest consumer survey – European Trusted Brands –

organised by Reader’s Digest.• Stock Exchange Listed Company of the Year in the Investor Relations category according to a ranking organ-isedbythePulsBiznesudailyandthePentorResearchCompany,andfourthplaceintheoverallclassificationof the most dynamically developing companies.

• Winner (for the third time, previous awards – in 2007 and 2009) of the Best Investor Relations in Poland award granted each year by the specialist international IR Magazine.

• Winner (for the fourth time) of the title of the Most Valuable Polish Brand in the MARQA Ranking of Polish Most Valuable Brands organised by the Rzeczpospolita daily in association with Nielsen and Acropolis Advi-sory. The value of the ORLEN brand was estimated at PLN 3.8 bn, which represents a 4% increase compared to 2009. The BLISKA brand came 16th and its value was estimated at PLN 699.7 mn.

• European Medal for the Stop Cafe brand in the 21st edition of a competition organised by the Business Centre Club,PolishOfficeoftheCommitteeforEuropeanIntegration(UKIE)andtheEuropeanEconomicandSocialCommittee. The medal is awarded to products and services that comply with the highest EU standards.

• The PKN ORLEN Biznestank card for SMEs as the Fleet Product of the Year in the Polish Fleet Awards 2010 competition organised by Magazyn Flota periodical and the Fleet Management Institute.

• GoldenCustomer Laurel 2010 in the Fuel Stations category for the PKNORLENfleet offering for businesscustomers (for the second time in succession).

• Winner of the prestigious 2010 PolandCompetitive Strategy LeadershipAward in the fleet card category,awarded by a team of experts from the Frost&Sullivan international consulting company.

• Award for an Institution supporting implementation of environmental projects (for the peregrine falcon project) in the Polish Environmental Pantheon competition (for the second time).

• 2nd place in the Responsible Companies Ranking in the fuel, energy and upstream sector and 8th place intheoverallclassification.

• The corporate responsibility report recognised as one of the best reports in the Social Reports 2010 competi-tion.

• 14th place in the “Philanthropy Leaders” competition, in the category of companies that donated the most money for the purposes of social assistance in 2009.

• PKN ORLEN as one of the leaders of the BI-NGO 2010 Index.• The Queen of Sport Laurel in the Sponsors category awarded by the Polish Athletics Federation for the Com-

pany’s contribution to the development of athletics in 2010 (for the second time in succession).• The Sport Business award granted to companies directly involved in the development and international promo-

tion of Polish sport in the Sport Sponsor category – the DEMES award.• Silver Statuette awarded for a promotional campaign of the Stop Cafe brand (“Zapraszamy – My stawiamy”)

in the Polish edition of the EFFIE Awards 2010, one of the most important marketing competitions in the world,• The TourismCrown2010 awarded for PKNORLEN fuel stations as the tourists’ first choice in a popularity

contest organised by the Polska Wita periodical.• First place in the Regional Forbes CSR Awards competition in the Mazowieckie region for the highest corporate

responsibility standards.• 1st place in WarsawScan 2010 – the best information policy and corporate governance.

• 1st place in WarsawScan 2010 – the best website dedicated to investor relations.

85


Certificates

• TheIntegratedManagementSystemCertificate• PN-EN ISO 9001:2009 – Quality Management System• PN-EN ISO 14001:2005 – Environmental Management System • PN-N-18001:2004 – HSE Management System• PN-ISO/IEC 27001:2007 – Data Safety Management System

• QualityManagementSystemCertificate–AQAP2120:2009• EnvironmentallyFriendlyCompanyCertificate• PolishEnvironmentalPartnerCertificate

86


Useful websites

www.orlen.pl

(Polski Koncern Naftowy ORLEN)

www.darserca.pl

(Fundacja ORLEN – Dar Serca)

www.wolontariat.orlen.pl

(Employee voluntary services PKN ORLEN)

www.funduszgrantowy.plock.eu

(Grant Fund for Płock)

www.funduszgrantowy.pl

(Good Neighbourhood Grant Fund

for Ostrów Wielkopolski Association)

www.orlenbezpiecznedrogi.pl

(ORLEN Safe Roads)

www.bobrka.pl

(Bóbrka Museum of Oil and Gas Industry Foundation)

www.pppt.pl

(Płock Industry and Technology Park)

www.globalreporting.org

(Global Reporting Initiative)

www.peregrinus.pl

(Society for Wild Animals „SOKÓŁ”)

www.rc.com.pl

(Responsible Care)

www.fairtrade.net

(Fairtrade)

www.unglobalcompact.org

(United Nations Global Compact)

www.odpowiedzialni.gpw.pl

(RESPECT Index)

www.europia.eu

(EUROPIA)

www.concawe.be

(CONCAWE)

www.popihn.pl

(Polish Organisation of Oil Industry and Trade)

www.grasz.pl

(Apprenticeship competition)

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=O

J:L:2010:334:0017:01:PL:HTML

(Full text of the Directive 2010/75/EU of European Parlia-

ment and of the Council on industrial emissions)

www.europarl.europa.eu/sides/getDoc.do?language=

pl&type=IM-PRESS&reference=20080825FCS35404

(Climate package)

87


Indicator Page no.

Strategy and Analysis

1.1 5

1.2 5, 7-8, 30, 32-33, 52-53

Organisationalprofile

2.1 7

2.2 7-9

2.3 7

2.4 6, 88

2.5 6-7

2.6 16

2.7 6-8

2.8 12, 16

2.9 16

2.10 84

Report Parameters

3.1 9-10

3.2 9-10

3.3 9-10

3.4 88

Report scope and range

3.5 9-10, 15, 30-31

3.6 6-10

3.7 9-10

3.8 6-10

3.9 9

3.10 10

3.11 10

GRI Content Index

3.12 87

Assurrance

3.13 10

Governance

4.1 19-20

4.2 19

4.3 19-20

4.4 19-20

4.5 19-20

4.6 20

4.7 20

4.8 6, 72-73

4.9 19-20

4.10 19-20

Commitments to External Initiatives

4.11 32-33

4.12 5, 17, 26, 31, 50, 63

4.13 33-35

4.14 15

4.15 14, 30-31

4.16 30-31

4.1716-17, 30-32, 35-39, 63-64,

82-83

Indicator Page no.

Economic Performance indicators

EC1 12

EC2 52-53, 65

EC5 76

EC6 25-26

EC7 76

EC8 35-39, 79-82

Environmental Performance Indicators

EN1 12, 65-66

EN3 66

EN4 66

EN6 64-65

EN8 55

EN9 55

EN11 54

EN12 54

EN15 63

EN16 58-59

EN20 58-59

EN21 55-56

EN22 56-57

EN23 54

EN24 58

EN26 20-21, 64-65, 67-69

EN28 54

EN30 61-62

Labour Practices and Decent Work

LA1 74, 76

LA2 74-76

LA3 79

LA4 81

LA5 81

LA6 43

LA7 44-46

LA9 42-43

LA10 78-79

LA11 78-79

LA12 78

LA13 19, 74-76

Human Rights Performance Indicators

HR2 26

HR4 73

HR5 81

HR6 73

HR7 73

HR9 73

Society Performance Indicators

SO5 33-35

SO7 27

Product Responsibility Performance Indicators

PR3 43

PR5 27-28, 30-31

PR6 26-27

GRI Index

88


Contact us:

Polski Koncern Naftowy ORLEN Spółka Akcyjna

Chemików 7, 09–411 Płock

Headquarters:

phone: +48 (24) 365 00 00, fax +48 (24) 365 40 40

www.orlen.pl

WarsawOffice

Warsaw Trade Tower, Chłodna 51, 00–867 Warszawa

Headquarters:

phone: +48 (22) 778 00 00, fax +48 (22) 695 35 17

Corporate Social Responsibility Team

Barbara Tęcza

phone: +48 (22) 778 05 92, e-mail: [email protected]

EthicsOfficer

Ewa Bielicka-Piesyk

phone: +48 (24) 256 90 95, e-mail: [email protected]

PressOfficeinPłock

Beata Karpińska

phone: +48 (24) 256 92 92, (24) 256 92 93

e-mail: [email protected]

PressOfficeinWarsaw

phone: +48 (22) 778 01 09, (22) 778 01 10

Useful contact e-mail addresses:

[email protected]

[email protected]

[email protected]

[email protected]

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