Roczny Raport

Social and Environemntal Annual Report 2014

Grupa Azoty S.A.

1. Company Details Company Name: Grupa Azoty S.A. Company Address: ul. Kwiatkowskiego 8, 33-101 Tarnów, Poland Country: Poland Town/Location: Tarnów Company authorized representative: Paweł Jarczewski I certify that the data contained in this report completely and accurately represents operations during this reporting period.

Signature: Title: President of the Management Board, CEO Date: April 15th 2015 Contact Details: Telephone: (+48) 14 637-32-03 Mobile: Email: [email protected]

Please provide key data on the Company performance, as well as production levels at each plant. For each of the 7 large plants please provide: Grupa Azoty S.A.

YTD

[PLN '000] 2013 2014

Revenue 1,846,127 1,847,250 Profit/(loss) on sales -18,102 -15,236 EBIT -78,986 -29,243 EBITDA 10,297 62,510 Net profit/(loss) 44,117 214,633

Key performance indicators in terms of energy use, emissions, natural resource use, and carbon emission

See Section 4 and Section 5.

Number of staff employed and any change in employment over past 3 years

As at Dec 31 2012 As at Dec 31 2013 As at Dec 31 2014 Number of direct employees: 2,066 2,072 2,088 Number of contracted workers: - - -

Provide information on permits and status of compliance of each subsidiary with IPPC/IED

Grupa Azoty S.A. currently operates pursuant to the following decisions: - Decision of the Marshal of the Province of Kraków of June 20th 2012, Ref. No. SR-II- 1.7222.1.1.2012, granting an integrated permit to Zakłady Azotowe w Tarnowie-Mościcach for the Hydrogen Unit, valid for an indefinite term (permit amended by Decision of December 3rd 2014, Ref. No. SR-II-1.7222.2.13.2014) - Decision of the Governor of the Province of Kraków of February 16th 2007, Ref. No. ŚR.XIV.JI.6663-6-05, granting an integrated permit to Zakłady Azotowe w Tarnowie-Mościcach for the Park Infrastruktura Complex, valid for an indefinite term (permit amended by Decision

of July 29th 2011, Ref. No. SR-II-1.7222.1.3.2011, Decision of September 11th 2012, Ref. No. SR-II-1.7222.1.7.2012, and Decision of December 3rd 2014, Ref. No. SR-II-1.7222.2.17.2014) - Decision of the Governor of the Province of Kraków of April 17th 2007, Ref. No. ŚR.XI.JI.6663-3- 06, granting an integrated permit to Zakłady Azotowe w Tarnowie - Mościcach for the POM Manufacturing and Compounding Complex, valid for an indefinite term (permit amended by Decision of July 29th 2011, Ref. No. SR-II-1.7222.1.1.2011 and Decision of December 3rd 2014, Ref. No. SR-II-1.7222.2.14.2014) - Decision of the Governor of the Province of Kraków of July 29th 2011, Ref. No. SW.II.1.AJ.7673- 10/09, granting an integrated permit to Zakłady Azotowe w Tarnowie - Mościcach for the Technical Grade Nitric Acid Unit, Calcium Ammonium Nitrate and Ammonium Nitrate Unit, Nitrogen Fertilizer Granulation Unit, and Dolomite Milling Unit, valid for an indefinite term (permit amended by Decision of December 3rd 2014, Ref. No. SR-II-1.7222.2.15.2014) - Decision of the Governor of the Province of Kraków of March 22nd 2007, Ref. No. ŚR.XI.JI.6663- 4-06, granting an integrated permit to Zakłady Azotowe w Tarnowie - Mościcach for the PTFE and Fluorine Compounds Unit, valid until December 31st 2016 - Decision of the Marshal of the Province of Kraków of December 1st 2010, Ref. No. SW.II.1.AJ.7673-11/08, granting an integrated permit to Zakłady Azotowe w Tarnowie - Mościcach for the Caprolactam and Polyamide Units, valid until December 31st 2016 (permit amended by Decision of July 29th 2011, Ref. No. SR-II-1.7222.1.2.2011, Decision of February 16th 2012, Ref. No. SR-II-1.7222.1.2.2012, Decision of June 20th 2012, Ref. No. SR-II- 1.7222.1.5.2012, Decision of October 21st 2013, Ref. No. SR-II-1.7222.1.3.2013. - [WKS], and Decision of December 3rd 2014, Ref. No. SR-II-1.7222.2.16.2014 - [WKS], valid for an indefinite term) - Decision of the Marshal of the Province of Kraków of March 16th 2009, Ref. No. SW.II.1.JI.7673- 6/08, amending the integrated permit granted to Zakłady Azotowe w Tarnowie - Mościcach for the Caprolactam and Polyamide Units (with respect to the Natural Polyamide Unit), valid until December 31st 2016 - Decision of the Governor of the Province of Kraków of December 29th 2014, Ref. No. SR-II- 1.7221.2.2014, granting permit for release of gases and dusts into the air to Grupa Azoty S.A., valid until December 28th 2024 - Notification of the EC II CHP plant Water Treatment Unit and the Modified Plastics Facility of November 24th 2014 - Decision of the Marshal of the Province of Kraków of September 13th 2012, Ref. No. SR-II- 1.7225.1.2012 , granting permit for participation in the European Union Emissions Trading System to the CHP plant located on the premises of Zakłady Azotowe w Tarnowie – Mościcach, valid until September 12th 2022, amended by the Decision of December 20th 2012 (with an attachment thereto), Ref. No. SR-II-1.7225.4.2012, Decision of August 20th 2013 (with an attachment thereto), Ref. No. SR-II-1.7225.1.2013, Decision of December 23rd 2013, Ref. No. SR-II-1.7225.5.2013, and Decision of December 31st 2014, Ref. No. SR-II-1.7225.3.2014, complete with a monitoring plan, all issued by the Marshal of the Province of Kraków - Decision of the Marshal of the Province of Kraków of June 30th 2011, Ref. No. SR-II- 1.7225.1.2.2011, granting permit for participation in the European Union Emissions Trading System with respect to greenhouse gas emissions from the units manufacturing nitric acid, ammonia and organic chemicals in bulk by way of cracking, reforming, oxidation or similar processes, with a daily production capacity exceeding 100 Mg, valid until June 29th 2021, amended by Decision of December 20th 2012 (with an attachment thereto), Ref. No. SR-II- 1.7225.5.2012, Decision of December 20th 2013, Ref. No. SR-II-1.7225.2.2013, and Decision of December 30th 2014, Ref. No. SR-II-1.7225.4.2014, complete with a monitoring plan, all issued by the Marshal of the Province of Kraków - Decision of the Mayor of Tarnów of January 13th 2003, Ref. No. WGK.B-III.6210/16/02/03, granting permit for collective water supply and collective wastewater discharge, with an indefinite term - Decision of the Governor of the Province of Kraków of December 30th 2014, Ref. No. SR-IV- 1.7322.1.28.2014.MG, granting permit for special use of water – abstraction of underground water from an intake located in Tarnów-Mościce, valid until December 31st 2034 - Decision of the Governor of the Province of Kraków of December 29th 2005, Ref. No. ŚR.XIV.MGą.6811-31-05, granting permit for special use of water – abstraction of surface water from the Dunajec river, valid until December 31st 2025

- Decision of the Governor of the Province of Kraków of June 9th 2011, Ref. No. SR-IV- 1.7322.1.10.2011.MG, granting permit for discharge of wastewater containing substances particularly harmful to the water environment into the sewerage system of Zakład Oczyszczania Ścieków T.W. Sp. z o.o., valid until June 8th 2015 - Decision of the Marshal of the Province of Kraków of November 21st 2013, Ref. No. SR-IV- 1.7322.1.26.2013.MG, granting permit for discharge of wastewater to surface waters, valid until December 31st 2017 - Decision Ref. No. SR-IV.1.7328.1.2013.MG, establishing a protected zone for water intakes - Decision Ref. No. OS.VI.5/6210/5270/2/95 – water-law permit for use and maintenance of the weir on the Dunajec river, valid until December 31st 2015 - Decision of the Marshal of the Province of Kraków of December 22nd 2010, Ref. No. SW.III.1.AG.7650-12/10, granting permit to Zakłady Azotowe w Tarnowie - Mościcach S.A. for waste generation and recovery, valid until December 21st 2020 (amended by Decision of July 25th 2011, Ref. No. SR-III-1.7221.10.2011.AG) - Resolution of the Provincial Assembly of the Province of Kraków of October 25th 2010, No. LI/833/10, establishing Industrial Zone at ZAT S.A. (Official Journal of the Province of Kraków, No. 580/2010, item 4475)

Reporting Period: 2014

How many inspections did you receive Number: 4 Please provide details of these visits, including from the environmental authorities number and nature of any violations found: during the reporting period? 1. 'inspection to investigate a major accident that occurred on April 9th 2014' – carried out on April 10th 2014 – Post-inspection Rulings including 2 items were issued – both items were implemented 2. 'inspection to investigate a major accident that occurred on June 8th 2014' – carried out on June 9th 2014 – Post-inspection Rulings including 2 items were issued – both items were implemented 3. 'compliance with environmental laws and regulations' – inspection carried out on October 7th 2014 – a Post-inspection Ruling including 3 items was issued, 2 items were implemented, implementation of 1 item is in progress 4. 'waste management' – inspection carried out on November 26th–December 2nd 2014 – no decision was issued How many inspections did you receive Number: Please provide details of these visits, including from the health and safety authorities County number and nature of any violations found: during the reporting period? Sanitary Inspector – County Sanitary Inspector (PIS) 23 1. 'compliance with decisions issued by the National County Sanitary Inspector concerning the Labour Catalyst Production Plant and Utilities Inspectorate Production and Distribution Division' – – 2 inspection carried out on January 8th 2014 – National compliance with decisions issued by the Fire Service County Sanitary Inspector after previous – 7 inspections was checked; no decision was issued 2. 'inspection concerning OHS conditions, dangerous substances and mixtures, and sanitary and technical conditions of the Boiler House and Coal Supply Division' – carried out on January 15th 2014 – no decision was issued 3. 'inspection concerning OHS conditions, dangerous substances and mixtures, and sanitary and technical conditions of the Power Supply and Security Division' – carried out on January 31st 2014 – a decision including 3 items was issued, setting the implementation deadlines for March 15th 2014 (implemented) and June 30th 2014 (implemented) 4. 'inspection concerning OHS conditions, dangerous substances and mixtures, and sanitary and technical conditions of the Lactam Division' – carried out on February 20th 2014 – a decision including 1 item was issued, setting the implementation deadline for June 30th 2014 (implemented) 5. 'inspection concerning OHS conditions, dangerous substances and mixtures, and sanitary and technical conditions of the

Cyclohexanone Division' – carried out on February 25th 2014 – a decision including 1 item was issued, setting the implementation deadline for June 30th 2014 (implemented) 6. 'compliance with rulings and decisions issued by the County Sanitary Inspector concerning the Utilities Production and Distribution Division' – inspection carried out on March 11th 2014 – compliance with rulings issued by the County Sanitary Inspector after previous inspections was checked; no objections were raised 7. Inspection carried out on March 21st 2014, concerning: 1) OHS conditions, 2) dangerous substances and mixtures, 3) sanitary and technical conditions – Sulfuric Acid Production Unit and Hydroxylamine Sulfate Plant Divisions (Plastics Business Unit); verification of compliance with rulings issued by the County Sanitary Inspector – Power Supply and Security Division (Power Business Unit); for the Sulfuric Acid Production Unit and Hydroxylamine Sulfate Plant Divisions a decision including 2 items was issued, setting the implementation deadline for July 15th 2014 (implemented); during the inspection of the Power Supply and Security Division, implementation of the post-inspection decision issued following the inspection of April 31st 2014 was checked 8. 'inspection concerning OHS conditions, dangerous substances and mixtures, and sanitary and technical conditions – Storage and Transport of Fertilizers Division' – carried out on March 28th 2014 – no decision was issued 9. 'inspection concerning OHS conditions, dangerous substances and mixtures, and sanitary and technical conditions – Catalyst Production Plant' – carried out on April 10th 2014 – no decision was issued 10. 'inspection concerning OHS conditions, dangerous substances and mixtures, and sanitary and technical conditions – Caprolactam Laboratory' – carried out on April 30th 2014 – oral inquiry, no official report was issued 11. 'inspection concerning OHS conditions, dangerous substances and mixtures, and sanitary and technical conditions – Tarnoform and Formaldehyde Division' – carried out on May 15th-22nd 2014 – two decisions, including in aggregate 3 items, were issued (implemented) 12. 'inspection concerning OHS conditions, dangerous substances and mixtures, and sanitary and technical conditions – Nitric

Acids Division' – carried out on May 22nd 2014 – no decision was issued 13. 'inspection of compliance with regulations on benzene' – carried out on June 10th 2014 – no decision was issued 14. ' compliance with rulings and decisions issued by the County Sanitary Inspector of Tarnów for the Cyclohexanone Division, Lactam Division and Power Supply and Security Division' – carried out on July 3rd 2014 – verification of compliance with decisions, no objections were raised 15. 'inspection concerning OHS conditions, compliance with regulations on use of dangerous substances and mixtures, and assessment of sanitary and technical conditions of the Ammonia Division' – carried out on July 29th 2014 – no decision was issued 16. 'compliance with rulings issued by the County Sanitary Inspector of Tarnów – Sulfuric Acid Production Unit and Hydroxylamine Sulfate Plant Division' – carried out on August 1st 2014 – verification of compliance with decisions, no objections were raised 17. 'compliance with regulations on benzene' – inspection carried out on August 4th 2014 – no decision was issued 18. 'inspection concerning OHS conditions, compliance with regulations on use of dangerous substances and mixtures, and assessment of sanitary and technical conditions' – carried out on September 4th 2014 – no decision was issued 19. 'inspection concerning OHS conditions, compliance with regulations on use of dangerous substances and mixtures, and assessment of sanitary and technical conditions' – carried out on October 9th 2014 – a decision including 2 items was issued (implemented) 20. ' inspection concerning OHS conditions, chemical substances and mixtures, and assessment of sanitary and technical conditions' – inspection carried out on November 26th 2014 – a decision including 1 item was issued (marking of pipelines) – implemented 21. 'sanitary inspection in the sausage casing production plant' – carried out on December 16th 2014 – no decision was issued 22. ' inspection concerning working conditions at the NF and NZ Department' – inspection carried out on December 18th–30th 2014 – a statement and a decision were issued – implemented 23. ' inspection concerning working conditions at the Safety and Environmental Protection Office' − inspection carried out on

December 30th 2014 − no decision was issued

National Labour Inspectorate (PIP) 1. 'investigation into the causes and circumstances of an accident at work involving more than one person at the Casings and Modified Granules Division' – inspection carried out on March 5th 2014 – an order was issued including 2 decisions with the implementation deadline set for May 31st 2014 (implemented) and a statement containing 7 items (implemented) 2. 'compliance with labour laws and regulations, including OHS regulations' – carried out on October 7th– 30th 2014 – 2 orders including 5 items were issued (2 items were implemented; the implementation deadline for the other items is June-August 2015), and a statement including 2 items, with the implementation deadline set for June 2015

Provincial Inspectorate for Environmental Protection (WIOŚ) 1. 'inspection to investigate a major accident that occurred on April 9th 2014' – carried out on April 10th 2014 – Post-inspection Rulings including 2 items were issued – both items were implemented 2. 'inspection to investigate a major accident that occurred on June 8th 2014' – carried out on June 9th 2014 – Post-inspection Rulings including 2 items were issued – both items were implemented 3. 'compliance with environmental laws and regulations' – inspection carried out on October 7th 2014 –Post-inspection Ruling including 3 items was issued, 2 items were implemented, implementation of 1 item is in progress 4. 'waste management' – inspection carried out on November 26th–December 2nd 2014 – no decision was issued

National Fire Service (PSP) 1. 'inspection of compliance with fire regulations, evaluation1 of compliance with safety requirements for a plant exposed to the risk of major industrial accident' – inspection carried out on April 9th-18th 2014 – no decision was issued 2. 'inspection of compliance with fire regulations, evaluation1 of compliance with safety requirements for a plant exposed to

1 [Translator’s note: the translation (‘evaluation’) is based on the Polish word ‘ustalenie’ (eng. evaluation, checking), because probably there is a mistake in the original, where the word ‘ustanie’ (eng. termination, discontinuation) is used in this place.]

the risk of major industrial accident' – inspection carried out on April 28th 2014 – no decision was issued 3. 'inspection of compliance with fire regulations, evaluation1 of compliance with safety requirements for a plant exposed to the risk of major industrial accident' – inspection carried out on June 9th-18th 2014 – no decision was issued 4. 'collection of information necessary to perform an analysis of a major industrial accident and to formulate recommendations for the plant operator' – inspection carried out on June 17th-26th 2014 – no decision was issued 5. 'inspection of compliance with fire regulations, evaluation2 of compliance with safety requirements for a plant exposed to the risk of major industrial accident' – inspection carried out on September 16th- 22nd 2014 – no decision was issued 6. 'collection of information necessary to perform an analysis of a major industrial accident and to formulate recommendations for the plant operator' – inspection performed on September 22nd- 30th 2014 – no decision was issued 7. 'inspection of compliance with fire and environmental regulations' – carried out on October 7th 2014 – no decision was issued How many inspections did you receive Number of Please provide details of these visits, including from the labour authorities during the inspections: 2 number and nature of any violations found: reporting period? inspections concerning National Labour Inspectorate (PIP) OHS 1. 'investigation into the causes and circumstances of an accident at work involving more than one person at the Casings and Modified Granules Division' – inspection carried out on March 5th 2014 – an order was issued including 2 decisions with the implementation deadline set for May 31st 2014 (implemented) and a statement including 7 items (implemented) 2. 'compliance with labour laws and regulations, including OHS regulations' – inspection carried out on October 7th– 30th 2014 – 2 orders including 5 items were issued (2 items were implemented; the implementation deadline for the other items is June-August 2015), and a statement including 2 items, with the implementation deadline set for June 2015

2 [Translator’s note: the translation (‘evaluation’) is based on the Polish word ‘ustalenie’ (eng. evaluation, checking), because probably there is a mistake in the original, where the word ‘ustanie’ (eng. termination, discontinuation) is used in this place.]

Have these visits resulted in any Yes [X] If Yes, please describe, including status of penalties, fines and/or corrective No [ ] implementing corrective actions to address any action plans? violations found:

The Company received no fines as a result of the inspections. Corrective measures related to the issued decisions, rulings, orders and statements were undertaken. Has the Company engaged any Yes [X] If Yes, please state for which types of work, and contractors for project-related work No [ ] how the company has monitored the compliance in the reporting period? of contractors with EBRD Performance Requirements and the Environmental and Social Action Plan:

The Company hires contractors to perform repair and maintenance work. A special procedure governs the performance of such work, including obtaining of permits. Compliance of contracted work with safety rules and regulations is monitored by employees responsible for internal supervision, OHS services, as well as internal and external ISO auditors. Were any of the violations stated Yes [X] If Yes, please provide details, including how the above the responsibility of contractors? No [ ] Company is ensuring that corrective actions are implemented by the contractor?

A few violations of safety rules and regulations were identified, mainly consisting of failure to use personal protection equipment (hard hats, gas masks). Each time such violation was identified, work was suspended until the violation was corrected, and in a few cases relevant notices were submitted to the contractors' management. In 2014, a new procedure concerning for particularly dangerous work was implemented. Have any operations been reduced, Yes [X] If Yes, please describe: temporarily suspended or closed down No [ ] due to environmental, health, safety See above (industrial accidents and or labour reasons? incidents)

Major investment projects implemented at Grupa Azoty S.A. in 2014 and aimed at reducing its environmental impact included: - Flue gas desulfurization unit and flue gas denitration unit – the projects have been undertaken to ensure compliance of the Company's industrial combustion sources with the requirements laid down in the Minister of Environment's Regulation on Emission Standards for Installations of April 22nd 2011 and the Industrial Emissions Directive. The projects will involve upgrading the existing EC-2 CHP infrastructure and bringing the existing installations to compliance with the new emission requirements. As a result, the amount of pollutants released into the environment by the Company's combustion sources will be reduced, improving air quality. The flue gas desulfurization unit and flue gas denitration unit to be constructed at Grupa Azoty S.A. are co-financed with the funds of the Norwegian Financial Mechanism 2009–2014. Completion of the projects is planned for 2016.

- Upgrade of the interior of ammonia synthesis reactors – the project's objective is to reduce the costs of ammonia production at Grupa Azoty S.A. Without any adverse effect on the current output, the project will reduce the cost of ammonia production by reducing consumption of electricity required to compress synthesis gas and cooling ammonia, making better use of reaction heat to produce steam, and reducing consumption of the coolant. The project was completed in 2014.

- Modernisation of handling stands – in 2010−2014, Grupa Azoty S.A. executed 15 projects connected with the modernisation of raw material and product loading and unloading stands. The projects were designed to adapt the stands to the new requirements of the Transport Technical Inspection, as well as to improve the safety of handling equipment and work conditions for the employees.

- Construction of a dust granulation system for iron-chromium catalysts together with the sorting and dust removal stand – in 2014, the project involving the installation of a dust compactor for iron-chromium catalysts in the Catalyst Production Plant was completed. The main objective of the project was to reduce the volume of waste generated in the production of iron-chromium catalysts.

- Modernisation of the cold water pumping station in the Ammonia Department – the project involves the modernisation of the cold water pumping station in the Ammonia Department at Grupa Azoty S.A. in Tarnów, with a view to improving energy efficiency. The scope of modernisation work includes the purchase and installation of two 40B50 pumping sets (a pump + a 250kW engine) to replace the old pumps. The environmental benefit of the project will consist in reduced electricity consumption. The project will be co- financed by the National Fund for Environmental Protection and Water Management. It is scheduled for completion in the first quarter of 2015.

In 2014, total expenditure on implementation of the above projects amounted to PLN 13.2m.

3. Status of the Environmental and Social Action Plan Please provide information on the status of each item in the Environmental and Social Action Plan (ESAP) agreed with EBRD. If the ESAP has been updated during the reporting period, please attach a copy of the new plan.

See attachments for information on the implementation of ESAP.

4. Environmental Monitoring Data for each of the key subsidiaries The information required in this section can be extracted from a CSR report, or a full CSR report can be attached.

Please provide the name and contact details Leszek Polak, telephone: (+48) 14 6373667 for your environmental manager: Parameter2 Value3 Unit Compliance Status4 Comments5 Wastewater Total wastewater 3,544 TCM Compliant generated Biochemical 805 kg Compliant Oxygen Demand (BOD) Chemical 74,801 kg Compliant Oxygen Demand (COD) Suspended solids 0 kg Compliant Phosphorus 775 kg Compliant Nitrates 48,176 kg Compliant Heavy metals 42 kg Compliant [Other] Air Per each major Mg/2014 emissions point source CHP Plant: NE/EPK/1 745 NE/EPK/2 3,432 Sulfuric Acid SO2 Production Unit Compliant NK/KPH/175 34.1 Hydroxylamine sulfate NK/KPH/185 29 CHP Plant: NE/EPK/1 349.8 NE/EPK/2 1,548.4 Compliant Hydroxylamine sulfate NK/KPH/185 490.9 Dual pressure nitric NO X acid NA/PN-1/20 200.1 Ammonium nitrite NK/KPH/163 779.2 NK/KPH/164 781 NK/KPH/165 847.5 NK/KPH/169 2,378.7 CHP Plant: NE/EPK/1 20 NE/EPK/2 199.5 Fertilizers NA/PN-3/47 13.7 Particulates NA/PN-3/48 12.2 Compliant NA/PN-3/49 5.8 NA/PN-3/50 2.1 NA/PN-3/105 8.6 NA/PN-3/107 3.2 NA/PN-3/110-111 4.2

NA/PN-3/29-46 45.3 CHP Plant 803,288 Production units in 499,196 ETS including CO2 with N2O – Compliant 88,248 Production units 34,525 outside of ETS Other Parameters Noise 45 for night-time dB(A) Compliant Based on 55 for daytime measurements in the vicinity of the Company's plant, the generated noise does not exceed permitted levels [Other] Solid waste Mg 10 01 15 Bottom ash and slag 42,849.2 Compliant Recovery 10 01 02 Fly ash 45,010.51 Compliant Recovery 17 04 05 Iron and steel 2,957.3 Compliant Recovery 17 06 04 Insulation materials 291.22 Compliant Disposal 19 08 14 Sludge from non- 1,857.1 Compliant Disposal biological treatment of wastewater 19 08 12 Sludge from 885.7 Compliant Disposal biological treatment of wastewater 07 02 13 Waste plastic 226.3 Compliant Recovery Disposal 17 02 01 Wood 162.0 Compliant Recovery 15 01 03 Wooden packaging 110.51 Compliant Recovery 17 01 01 Concrete waste 87.86 Compliant Recovery 16 08 03 Spent catalysts 79.3 Compliant Recovery 15 02 02* Absorbents, filter 4.42 Compliant Disposal materials and protective clothing contaminated by dangerous substances 15 02 03 Absorbents, filter 2.3 Compliant Disposal materials, and protective clothing other than those mentioned in 15 02 02 15 01 10* Packaging containing 10.722 Compliant Disposal residues of dangerous substances 15 01 01 Paper and cardboard 58.26 Compliant Recovery packaging 06 13 02* Spent activated 3.920 Compliant Disposal carbon 16 06 01 Lead batteries 0.002 Compliant Recovery

17 05 03* Soil and stones 11.66 Compliant Disposal containing dangerous substances 13 02 08* Other engine, gear 46,777 Compliant Recovery and lubricating oils 16 08 01 Spent catalysts 14.1 Compliant Recovery containing gold, silver, rhenium, rhodium Please provide details of the types and amounts of solid wastes generated by the project. Indicate where wastes are classified as hazardous. Indicate the final re-use, recycle or disposal method for each waste type.

5. Resource Usage and Product Output Measurement Parameter Value Comments6 Unit Fuels used Liquid fuels 8,333.940 Mg * - consumption at the Power Business Unit (mazut, MEK) Gas fuels 5,329,900 m3 * - consumption at the Power Business Unit (gas from the Plastics Business Unit) Natural gas 216,788,799 m3 Hard coal 383,897 Mg Electricity 487,899,976 MWh Feedstocks and raw materials consumed Liquid ammonia 113,721.52 Mg

Benzene 29,742.74 Mg

Phenol 65,431.82 Mg

Dolomite 70,434.67 Mg

Technical-grade 13,767.78 Mg methanol Molten sulfur 109,788.10 Mg

Product output

Total fertilizers 979,925.0 Mg Caprolactam 98,530.0 Mg Polyamide 44,514.0 Mg

6. Human Resources Management Please provide the name and contact details for your Rafał Bednarczyk, telephone: (+48) 14 637 22 Human Resources manager: 73 Recruited in this Terminated in this Total reporting period reporting period Number of direct 2,088 86 65 employees: Number of contracted - - - workers: Were there any collective Yes [ ] If Yes, please describe the redundancy plan, redundancies during the reporting No [X] including reasons for redundancies, number of period? workers involved, how they were selected, consultation undertaken, and measures to mitigate the effects of redundancy:

Are any redundancies to the Yes [ ] If Yes, please describe the redundancy plan, including workforce planned for the next No [X] reasons for redundancies, number of workers year? involved, and selection and consultation process: Were there any changes in trade Yes [X] If Yes, please provide details, and summarise union representation at Company No [ ] engagement with trade unions during reporting facilities during the reporting period: period? There were changes in the positions of chairman and vice-chairman of the NSZZ Solidarity trade union. Were there any other worker Yes [ ] If Yes, please provide details and summarise representatives (e.g. in the No [X] engagement with them during reporting period: absence of a trade union)? Were there any changes in the Yes [ ] If Yes, please provide details: status of Collective Agreements? No [X] Have employees raised any Yes [ ] If Yes, please state how many, split by gender, grievances with the project during No [X] summarise the issues raised in grievances by male the reporting period? and female staff and explain how the Company has addressed them: Have employees raised any Yes [ ] If Yes, please state how many, split by gender, complaints about harassment or No [X] summarise the issues raised by male and female bullying during the reporting staff and explain how the Company has addressed period? them: Have there been any strikes or Yes [ ] If Yes, please summarise nature of, and reasons other collective disputes related No [X] for, disputes and explain how they were resolved: to labour and working conditions at the Company in the reporting period? Have there been any court cases Yes [ ] If Yes, please summarise the issues contested related to labour issues during the No [X] and outcome: reporting period?

Have there been any changes to Yes [X] If Yes, please give details, including of any new the following policies or terms and No [ ] initiatives: conditions during the reporting period in any of the following 1. Amendments were made to the Collective areas: Bargaining Agreement concerning:  Trade union recognition  rules governing the granting of an allowance for  Collective Agreements serving as a chemical rescue worker  Non-discrimination and equal  amendment to the appendix comprising Rules for opportunities for all granting incentive awards  Equal pay for equal work  new amounts of the allowances for work in a  Gender equality continuous system and on a two-shift basis  Bullying and harassment  change in the base pay table including sexual harassment  increase in the contribution to the Company  Employment of young workers Social Benefits Fund under 18 2. The Grupa Azoty S.A.'s Code of Ethical Conduct was  Wages and salaries (for introduced. regular and overtime hours) 3. New rules to counteract mobbing at Grupa Azoty  Overtime S.A. were introduced.  Working hours 4. A pay increase for all employees across the  Flexible working / work-life company was introduced as of April 1st 2014, balance averaging PLN 150 per employee.  Grievance mechanism for workers  Health & safety?

7. Occupational Health and Safety Data Please provide the name and Leszek Polak, telephone: (+48) 14 637 36 67 contact details for your Health and Safety manager: Direct Contracted Direct Contracted employees workers employees workers Number of man- 3,526,800 - Number of 0 - hours worked this fatalities7: reporting period: Budget spent on 7,035,269 - Number of 0 - OHS in this period disabling injuries: (total amount and currency): OHS training 1,650 - Number of lost 9 - provided in this time incidents period in person- (including days: vehicular):

Number of lost 548 - Number of cases 2 - workdays resulting of occupational from incidents: disease: Number of sick Business days: - days: 20,135 Calendar days: 28,210 Accident causes (falling, heavy loads, struck by object, contact with energy source etc.):

Injuries caused in transport, including 1 road accident – 7 accidents Injuries incurred while operating tools and machinery (mechanical injuries) – 2 accidents Please provide details of any fatalities or major accidents that have not previously been reported to EBRD, including total compensation paid due to occupational injury or illness (amount and currency):

No fatal or major accidents occurred. Please summarise any emergency prevention and response training that has been provided for company personnel during the reporting period:

Grupa Azoty S.A. employees receive emergency prevention and response training as a part of periodic OHS training. The Company Fire Brigade also runs emergency prevention and response training as part of initial and periodic training programmes and drills under the Internal Rescue Operation Plan in place at Grupa Azoty S.A. for the Divisional Chemical Rescue Team. Please summarise any emergency response exercises or drills that have been carried out during the reporting period:

The plant operates an Internal Rescue Operation Plan (as required by the Environmental Protection Law). In 2014, 16 emergency response exercises (including an emergency drill) were held in accordance with the adopted schedule. In compliance with the requirements of the Environmental Protection Law, exercises with the participation of the National Fire Brigade were also held in the Polyamide Division (Plastics Segment), covering the functioning of the External Rescue Operation Plan.

8. Stakeholder Engagement Please provide the name and contact details for Elżbieta Łabno your external relations or community Director of the Group Public Relations Office, engagement manager: e-mail:[email protected] 14/637 26 65

Please provide information on the implementation of the stakeholder engagement plan agreed with EBRD and summarise interaction with stakeholders during the reporting period, including:  meeting or other initiatives to engage with members of the public or public organisations during the reporting period  information provided to members of the public and other stakeholders during the reporting period relating to environmental, social or safety issues  coverage in the media  interaction with any environmental or other community groups Please describe any changes to the Stakeholder Engagement Plan agreed with EBRD:

Grupa Azoty maintains ongoing contact with the local community, keeping it informed on current developments in its operations. Grupa Azoty communicates with its stakeholders through numerous channels, including:

 Press conferences and/or press releases (almost 30 in 2014)  Monthly bulletin ‘Tarnowskie Azoty’, including information on and interviews concerning Grupa Azoty; information on and interviews concerning the Group’s environment and connected with public policy, culture, sports, employees, etc. The bulletin is intended for both Grupa Azoty employees and external institutions. 'Tarnowskie Azoty' is an informative, educational and entertaining eight-page monthly publication, covering current affairs at the Parent and subsidiaries, including in particular the progress of the consolidation process. The bulletin is mainly distributed within the Group, but also sent out to our partners, members of Parliament from the Tarnów region, and representatives of the town and county authorities.  Internal broadcasting system, airing programmes three times a day (6.45−7.30 am, 10.00−10.15 am and 14.45−15.10 pm) on each business day (Monday to Friday). The broadcasts cover the most important information on Grupa Azoty and its environment. In 2014, the system aired Company's programmes and announcements, trade unions' announcements, employees' announcements, as well as most interesting news from Tarnów and the region.  Internet and Intranet website at grupaazoty.com, updated and developed on a daily basis. The website provides all material information on the Grupa Azoty Group, its product portfolio, management systems, investor relations, investments, CSR and pro- environmental initiatives, etc.  Grupa Azoty's integrated annual report prepared in accordance with the GRI G4 guidelines (and audited) – the report was prepared in accordance with the international standards, and the accuracy of information was confirmed by three independent verifications of its content and financial data as well as of compliance with the GRI indicators. The report presents, on an annual basis, the Group's achievements in all material aspects of the Grupa Azoty's market presence, products, sustainable growth initiatives, changes in the structure, management and standards, as well as broadly meant environmental protection matters (including related figures). The report was sent to all material stakeholders, including representatives of local governments, members of Parliament from the region, local organisations and schools, trading partners, investors, etc. The report is also available at grupaazoty.com.  Meetings with representatives of the local community; for instance, on January 20th 2014, the ‘Forum Mościce 2020’ meeting was held with the participation of representatives of 15 organisations and institutions active within the Mościce district, including Vice-President of Grupa Azoty S.A., directors of schools and companies located in the district, as well as representatives of the Tarnów City Office: Head of the Tarnów Development Department and Head of the Sports Department.  Articles and advertisements in press of local and countrywide circulation, and in industrial periodicals, including information on important current developments in the Company's operations. Furthermore, the Company representatives are open to give interviews and never leave journalists’ questions without an answer.

Information delivered to the representatives of the local community and other stakeholders in the reporting period included information on environmental protection, social policy, support to the local community (education, culture, sports), support of local development, and safety- related matters.

Grupa Azoty is a co-organiser and/or partner of conferences on environmental protection and safety. In 2014, the Company was involved in the organisation of numerous events, including the conferences ‘Trends of Environmental-Friendly Development in the Chemical Industry’, ‘Chemistry 2014’, ‘Safety of Industrial Facilities’, ‘European Economic Congress 2014’, ‘Rzeszów Innovation Forum’, ‘Water and Wastewater in the Chemical Industry’, ‘Safety of Industrial Facilities’, ‘Tarnów Investment Forum’, ‘PETROBUSINESS Congress’, ‘Oil/Chemistry Conference’ and ‘Safe Chemistry Symposium’. The conferences provided a platform for meeting experts on safety in the chemical sector, experience sharing and developing solutions that can be used at the Grupa Azoty plants.

Grupa Azoty is a member of several dozen economic, chemical-industry and scientific associations and institutions, including:  Polska Izba Przemysłu Chemicznego (Polish Chamber of Chemical Industry − PIPC)  Plastics Europe  Fertilizers Europe  World Economic Forum of Davos, Switzerland  CEEP (Central European Energy Partners)  Pracodawcy Rzeczypospolitej Polskiej (Employers of Poland)  Secretarial Office of the Responsible Care Programme  CEFIC (European Chemical Industry Council)  Polska Izba Gospodarcza Ekorozwój (Polish Commercial Chamber of Pro-Environmental Development)  Polskie Forum ISO 9000 (Polish ISO 9000 Forum)  Stowarzyszenie Inżynierów i Techników Przemysłu Chemicznego (Polish Association of Chemical Engineers)  Forum ISO 14000 (Polish ISO 14000 Forum)  System pomocy w transporcie materiałów niebezpiecznych SPOT (SPOT System of Assistance in Hazardous Material Transport)  Forum Liderów Bezpiecznej Pracy (Forum of Safe Work Leaders)  Centrum Zaawansowanych Technologii przy Instytucie Chemii Przemysłowej (Advanced Technology Centre at the Industrial Chemistry Institute)  Polska Platforma Technologiczna Zrównoważonej Chemii (Polish Technological Platform for Sustainable Chemistry)  Polska Platforma Technologiczna − Bezpieczeństwo Pracy w Przemyśle (Polish Technological Platform for Safety at Industrial Work Places)  Narodowa Fundacja Ochrony Środowiska (National Foundation for Environmental Protection)  Polska Grupa Bezpieczeństwa Chemicznego (Polish Chemical Safety Group)

Grupa Azoty also implements locally-oriented projects. The most important of these in 2014 were:

 Noworoczny Koncert Charytatywny (New Year's Charity Concert) 2014 was the first year to see the New Year's Charity Concert, Grupa Azoty S.A.'s another initiative designed to support disadvantaged people and persons unable to live independently. Proceeds from the 2014 concert reached almost PLN 88 thousand; the full amount was applied towards financing of the construction of the Tarnów hospice.

– Święto Pracowników (Employees' Festival) − an open door day and Saturday with Grupa Azoty In 2014, the Company's employees and their families, as well as – the first time ever – persons with no relation to Grupa Azoty, were invited to participate in the Grupa Azoty open door day (organised as part of the Employees' Festival). The programme included a film screening, performance for children, theatrical workshop, group sports and recreational activities connected with sports supported by Grupa Azoty (e.g. speedway and sport climbing), as well as Akademia Bezpieczeństwa (Safety Academy). Persons interested in the architecture of the Mościce district were given an opportunity to visit Willa Kwiatkowskiego (the residence of the first directors of PFZA, Grupa Azoty's legal predecessor).

– Cooperation with hospitals On September 17th 2014, Grupa Azoty Group companies signed an agreement with three specialist hospitals of Kraków, Tarnów and Łęczna. The cooperation will facilitate improvement of the standards of treatment and rehabilitation of burn patients at those hospitals. Thanks to Grupa Azoty’s working with the hospitals, its employees gain access to the state-of-the-art burn treatment procedures. The cooperation is designed to guarantee prompt medical care to the Company's employees who have fallen victim to accidents.

– Plastics – materials of the future In 2014, Grupa Azoty S.A. implemented a two-day promotional and educational project devoted to the plastics manufactured by the Company. During the event, in front of Grupa Azoty S.A.'s main administrative building, residents of Tarnów and its vicinity could learn what plastics are, how they are manufactured and what makes them useful. Plastics manufactured by Grupa Azoty were presented, including their applications and comparison with other plastics. Selected school groups were taken for thematic trips around the Company's facilities.

Grupa Azoty also runs regular image research to gauge its perception, to find out where information on the Company is sourced from, and to subsequently use the findings to prepare the information and announcements it releases so that they meet the needs of the public. The most recent research was conducted in the period November 2014–January 2015 and included a countrywide survey, interviews with opinion leaders, in-depth survey, and countrywide surveys in selected industries.

How many complaints or grievances did the project receive from members of the public or civil society organisations during the reporting period? Please split by stakeholder group. Summarise any issues raised in the complaints or grievances and explain how they were resolved:

In the period under analysis, no complaints were raised by the local community.

9. Community Development Please summarise any social or community development / investment initiatives undertaken by the company during the reporting period, and any associated expenditure:

In 2014, Grupa Azoty S.A. was involved in CSR promotional and image-building activities in the following areas: 1. initiatives for regional development 2. protection of life and health 3. initiatives for education 4. initiatives for culture 5. support for the disabled and development of children and youth 6. development of amateur sports 7. professional sports

In 2014, Grupa Azoty S.A. spent approximately PLN 1.6m on CSR activities (for the benefit of the local community).

Such initiatives actively engage the Company in activities designed to support culture, education and sport, while at the same time contributing to its image of a reliable and respectable partner. Thanks to such efforts, the Company builds strong and lasting relations with its social environment.

In 2014, Grupa Azoty S.A. participated in numerous initiatives for the development of the region and its community, supporting the operations of many institutions, including:

– Małopolskie Forum Wspierania Inicjatyw Lokalnych (Małopolska Support Centre for Local Initiatives) of Tarnów – PTTK (Polish Tourist Association) Branch at Grupa Azoty S.A. in Tarnów-Mościce – Naczelna Organizacja Techniczna Federacja Stowarzyszeń Naukowych-Technicznych (Polish Federation of Engineering Associations NOT), Tarnów Council – Stowarzyszenie Inżynierów i Techników Przemysłu Chemicznego (Polish Association of Chemical Engineers) – www.moscice.pl Internet portal, – Towarzystwo Przyjaciół Mościc (Society of the Friends of Mościce)

Grupa Azoty S.A. was also involved in the Kraków Province's and Tarnów Municipality's initiatives for the development of the region and its community. For years now, events organised for schools have been playing a special role in Grupa Azoty S.A.'s CSR initiatives. In 2014, Grupa Azoty S.A. cooperated with a few post-statutory educational institutions, including:

– Centrum Kształcenia Zawodowego i Ustawicznego (Vocational and Permanent Education Centre) of Tarnów – General Education School Complex No. 1 of Tarnów – Association of Graduates and Friends of the Sports School Complex – Technical School Complex of Tarnów

Grupa Azoty S.A. intends to continue the cooperation on a long-term basis. To this end, the Company executed an agreement with the Ignacy Mościcki Technical School Complex, which provides for the Company employing up to ten of its students each year, organisation of internships, support in developing instruction classes, assistance in organising educational field trips, and support in applying for EU funds.

In building the strength of its brand, Grupa Azoty supports best Polish sportspeople. In an effort to help satisfy the needs of the local community, it supports not only professional but also amateur sportspeople and sports organisations. In 2014, they included:

– AZS (University Sports Association) Sports Club at PWSZ of Tarnów (field and track section) – Miejsko-Ludowy Klub Sportowy (City and Village Sports Club) Dąbrovia – Edyta Ropek, Marcin Dzieński and Klaudia Buczek (sport climbing) – Justyna Walaś (box) – Renata Knapik-Miazga (fencing) – Football school at Ludowy Klub Sportowy (Village Sports Club) Jutrzenka

Culture plays a special role in social life: as a component of educational process it forms and develops imagination, sensitivity and creativity of generation after generation; it also contributes to the development of both personal and regional identity. Aware of this, Grupa Azoty supports: – Krzysztof Penderecki European Centre for Music in Lusławice – Grupa Azoty International Jazz Contest (organised by the Tarnów Artistic Association ArtContest) – Tarnowska Nagroda Filmowa (Tarnów Film Prize, organised by the Tarnów Culture Centre) – Girls Cathedral Choir Puellae Orantes – City Art Gallery BWA in Tarnów – Tarnów Traditional Jazz Association Leliwa – Dance Association Klasa – National Ballroom Dance Tournament – Tarnów Fine Arts Association Zachęta – KANON Association – Culture and Arts Foundation I KROPKA – Ludwik Solski Theatre of Tarnów – THALIA Comedy Festival – Mościce Arts Centre

In 2014, Grupa Azoty S.A. organised for the first time the New Year's Charity Concert, the Company's initiative financed with its funds. The proceeds are to be applied towards charities. The proceeds from the first concert were applied to finance construction of the Tarnów hospice.

Grupa Azoty has taken special care of those who care for the development of others. Therefore, last year the Company supported: – Zbylitowska Góra Centre for Children with Special Educational Needs – Ich Lepsze Jutro Association – KANA Catholic Youth Education Centre – Association for the Assistance to the Disabled and Their Families Prometeusz – SIEMACHA Association – Polish Social Aid Committee, Tarnów Regional Board

By its donations to the Tarnów Volunteer Water Emergency Service, Grupa Azoty S.A. contributed to an improvement in safety of the local community.

8. Community and Charity Donations The Company made community and charity donations totalling PLN 244,400.

Grupa Azoty Zakłady Azotowe Puławy S.A.

1. Company details Company name: Grupa Azoty Zakłady Azotowe Puławy S.A. Company address: Aleja Tysiąclecia Państwa Polskiego 13 Country: Poland Town/Location: Puławy Company authorised representative: Zenon Pokojski I certify that the data contained in this report completely and accurately represents operations during this reporting period.

Signature:

Title: Vice-President of the Management Board Date: April 15th 2015 Contact details: Tel.: 81/5652294 Email: [email protected]

Please provide key data on the Company performance, as well as production levels at each plant. For each of the 7 large plants please provide:

Grupa Azoty ZA Puławy S.A. Item YTD

[PLN '000] 2013 2014

Revenue 3,570,560 3,435,218 Profit/(loss) on sales 395,448 241,199 EBIT 371,680 242,923 EBITDA 493,046 374,538 Net profit/(loss)* 355,194 221,205

Key performance indicators in terms of energy use, emissions, natural resource use, and carbon emission

Number of staff employed and any change in employment over past 3 years

As at Dec 31 2012 As at Dec 31 As at Dec 31 2013 2014 Number of direct 3,284 3,295 3,307 employees: No. of contracted workers – 159 142 137 temporary work agency workers

Provide information on permits and status of compliance of each subsidiary with IPPC/IED

Environmental decisions held by Grupa Azoty Zakłady Azotowe Puławy S.A.

A. Integrated permit  Decision of the Provincial Office of Lublin No. PZ 7/2004, Ref. No. ŚiR.V.6618/31-5/04, granting an integrated permit for Zakłady Azotowe Puławy S.A. of Puławy to operate chemical industry installations to manufacture, using chemical processes, basic products or semi-finished products

Amending decisions:  Decision No. PZ 12/2007 of December 12th 2007, Ref. No. ŚiR.V.6618/14-12/2006/2007, issued by the Governor of the Province of Lublin  Decision No. PZ 8/2008 of November 25th 2008, Ref. No. RŚ.IŁ.0722/12/08, issued by the Marshall of the Province of Lublin  Decision No. PZ 21/2010 of July 27th 2010, Ref. No. RŚ.V.MJ.7624/52/08, issued by the Marshall of the Province of Lublin  Decision No. PZ 16/2011 of August 9th 2011, Ref. No. RŚ.V.IŁ.7624/52/08, issued by the Marshall of the Province of Lublin  Decision No. PZ22/2012 of November 28th 2012, Ref. No. RŚ.V.IŁ.7624/52/08, issued by the Marshall of the Province of Lublin  Decision No. PZ23/2014 of October 23rd 2014, Ref. No. RŚ-V.7222.46.2014.ILU, issued by the Marshall of the Province of Lublin  Decision No. PZ45/2014 of November 28th 2014, Ref. No. RŚ-V.7222.46.2014.ILU, issued by the Marshall of the Province of Lublin Validity period – indefinite

B. Decision granting permit to participate in the EU Emissions Trading System for the CHP Plant

Decision of March 31st 2006, Ref. No. ŚiR.V.66100/21/2006, issued by the Governor of the Province of Lublin Validity period − until December 31st 2014

Amending decisions:  Decision of May 22nd 2006, Ref. No. ŚiR.66100/21/1/2006, issued by the Governor of the Province of Lublin  Decision of June 29th 2006, Ref. No. ŚiR.V.66100/21/2/2006, issued by the Governor of the Province of Lublin  Decision of April 9th 2010, Ref. No. RŚ.V.AR.7691/3/10, issued by the Marshall of the Province of Lublin  Decision of March 27th 2012, Ref. No. RŚ.V.AR.7691/3/10, issued by the Marshall of the Province of Lublin  Decision of December 19th 2012, Ref. No. RŚ.V.MJ.7691/3/10, issued by the Marshall of the Province of Lublin  Decision of May 15th 2013, Ref. No. RŚ.V.MJ.7691/3/10, issued by the Marshall of the Province of Lublin  Decision of November 25th 2013, Ref. No. RŚ.V.MJ.7691/3/10, issued by the Marshall of the Province of Lublin  Decision of March 18th 2014, Ref. No. RŚ-V.7225.2.2014.KON, issued by the Marshall of the Province of Lublin  Decision of September 16th 2014, Ref. No. RŚ-V.7225.2.2014.KON, issued by the Marshall of the Province of Lublin

Decision of November 14th 2014, Ref. No. RŚ-V.7225.2.2014.KON, issued by the Marshall of the Province of Lublin Validity period − from January 1st 2015 to December 31st 2024

C. Decision granting permit for greenhouse gas emissions for process units  Decision of June 30th 2011, Ref. No. RŚ-V.7225.23.2011.AR, issued by the Marshall of the Province of Lublin Validity period − until June 29th 2021

Amending decisions:  Decision of December 19th 2012, RŚ-V.7225.23.2011.MJ, issued by the Marshall of the Province of Lublin  Decision of May 15th 2013, RŚ-V.7225.23.2011.MJ, issued by the Marshall of the Province of Lublin

 Decision of November 25th 2013, RŚ-V.7225.23.2011.MJ, issued by the Marshall of the Province of Lublin  Decision of January 23rd 2014, Ref. No. RŚ-V.7225.2.2014.KON, issued by the Marshall of the Province of Lublin  Decision of September 16th 2014, Ref. No. RŚ-V.7225.2.2014.KON, issued by the Marshall of the Province of Lublin

D. Sector permits  Decision granting a permit for transport of waste of October 27th 2014, Ref. No. ŚR.6233.10.2014.AKA, issued by the Puławy County Governor; validity period − until October 27th 2024  Decision approving the landfill site operating instructions of December 17th 2014, Ref. No. RŚ- V.7241.34.2014.LG, issued by the Marshall of the Province of Lublin

E. Safety report Decision on the approval of amendments to the Safety Report, of May 16th 2013, Ref. No. WZ.5586.4.2013, issued by the Commander in Chief of the National Fire Service in the Province of Lublin

Reporting period: 2014

2. General Is the project materially compliant Yes [x] If No, please provide details of any material non- with all relevant EBRD Performance No [ ] compliances: Requirements (taking account of agreed action plans, exemptions or derogations)? Is the project materially compliant Yes [x] If No, please provide details of any material with all applicable environmental and No [ ] non-compliances: social laws and regulations? Have there been any accidents or Yes [ ] If Yes, please describe, including details of incidents that have caused damage to No [x] actions to repair and prevent reoccurrence: the environment, brought about injuries or fatalities, affected project labour or local communities, affected cultural property, or created liabilities for the company? Have there been any changes to Yes [ ] If Yes, please describe: environment, social, labour or health No [x] and safety laws or regulations that have materially affected the company?

How many inspections did you receive Number: 2 Please provide details of these visits, including from the environmental authorities number and nature of any violations found: during the reporting period? 1. Inspection concerning implementation of tasks related to prevention of major industrial accidents, carried out in June 2014 jointly by the Provincial Inspector for Environmental Protection, the National Fire Service, and the National Labour Inspectorate. No irregularities were found.

2. Inspection concerning compliance with applicable regulations on emissions of substances and energy into the air. One ruling was issued to supplement the description of the AMS continuous emissions monitoring system at the CHP plant. The description of the AMS system was amended in line with the recommendation and submitted to the Provincial Inspectorate for Environmental Protection (WIOŚ) by the due date. How many inspections did you receive Number: 26 Please provide details of these visits, including from the health and safety authorities number and nature of any violations found: during the reporting period? Inspections carried out to verify compliance with OHS regulations. In 2014, the competent administrative authorities (Sanitary and Epidemiological Stations − SANEPID) did not identify any irregularities in the areas being inspected. How many inspections did you receive Number: 2 Please provide details of these visits, including from the labour authorities during the number and nature of any violations found: reporting period? The inspections were carried out to check implementation of previous recommendations, decisions and statements, to investigate the circumstances and causes of a workplace accident, and to check implementation of the recommendations issued following an inspection conducted as part of subject T256A/2013 'Nitrogen Plant Inspections'. Have these visits resulted in any Yes [x] If Yes, please describe, including status of penalties, fines and/or corrective No [ ] implementing corrective actions to address any action plans? violations found: Following an inspection carried out by the National Labour Inspectorate (PIP), the Company was ordered to perform an occupational risk assessment related to the exposure to sulfur dioxide emitted from the Sulfuric Acid Unit, and to restore the gate doors leading to the ammonium sulfate production building to proper operating condition. Both recommendations were implemented in a timely manner. Has the Company engaged any Yes [ ] If Yes, please state for which types of work, and contractors for project-related work No [x] how the Company has monitored the compliance in the reporting period? of contractors with EBRD Performance Requirements and the Environmental and Social Action Plan:

Yes [ ] If Yes, please provide details, including how the Were any of the violations stated No [x] Company is ensuring that corrective actions are above the responsibility of contractors? implemented by the contractor?

Have any operations been reduced, Yes [ ] If Yes, please describe: temporarily suspended or closed down No [x] due to environmental, health, safety or labour reasons? Please describe any environment or social programmes, initiatives or sub-projects undertaken during the reporting period to improve the company's environmental or social performance and/or management systems: The same as in Section 9. Please indicate the level of associated expenditure (capital expenditure and operating expenditure), and whether this relates to the requirements of the Environmental and Social Action Plan, or to any other initiative: The same as in Section 9.

Attached hereto.

4. Environmental Monitoring Data for each of the key subsidiaries The information required in this section can be extracted from a CSR report, or a full CSR report can be attached.

Please provide the name and contact details Marek Kuba, Chief Environmental Protection for your environmental manager: Specialist, Email: [email protected] Tel.:603 712 356 Parameter2 Value3 Unit Compliance Comments5 Status4 Wastewater Total wastewater 90,899.7 TCM generated Biochemical Oxygen 184 Mg/year Compliant Demand (BOD) Chemical Oxygen 869 Mg/year Compliant Demand (COD) Suspended Solids - - Phosphorus - - Nitrates 657 Mg/year Compliant Heavy metals 2.02 Mg/year Compliant [Other] Air emissions Per each major Mg/year point source

SO2 4,202 Mg/year 10,383 Nitrogen oxides (NOX) 3,213 Mg/year 4,542 Ammonia 1,117 Mg/year 1,421 Ammonium nitrate dust 407 Mg/year 1,078 Urea dust 30 Mg/year 398 Ammonium sulfate dust 6 Mg/year 8 Melamine dust 15 Mg/year 16

Dust from fuel 157 Mg/year 521 combustion

CO2 1,892,488 Mg/year - Other Parameters Noise [Other] Solid waste

Please provide details of the types and amounts of solid wastes generated by the project. Indicate where wastes are classified as hazardous. Indicate the final re-use, recycle or disposal method for each waste type.

FY 2014

Waste type Generated [Mg] Permitted in Integrated Permit [Mg]

Hazardous waste 517 Compliant with Integrated Permit

Non-hazardous waste 209,925 Compliant with Integrated Permit

Total 210,442 Compliant with Integrated Permit

FY 2014

[Mg]

Self-management of waste − total 27,901

including: Recovery 898 Storage 27,033

Transferred to external companies holding permits for waste 193,144 collection/recovery/disposal,

including: from current year 182,370 Waste stored at year end compared with waste generated during the 171 year

including: Hazardous 79 Non-hazardous 92

5. Resource Usage and Product Output Measuremen Parameter Value Comments6 t Unit Fuels used Natural gas 975,394 TCM As fuel and feedstock jointly Hard coal 717,681 Mg Lignite Grid electricity 986,574 MWh Energy purchased for own needs and for resale Heat purchased Feedstocks and raw materials consumed Benzene 65,301 Mg Sulfur 40,919 Mg Product output Ammonium nitrate 1,090,356 Mg Caprolactam 69,071 Mg Urea 1,089,963 Mg Melamine 78,811 Mg

6. Human Resources Management Please provide the name and contact details for your Krzysztof Bachan, Head of HR Administration Human Resources manager: Department, telephone: (+48) 81-565-37-55 Recruited in this Terminated in this Total reporting period reporting period Number of direct 3,307 102 85 employees: Number of contracted 137 - - workers: Were there any collective Yes [ ] If Yes, please describe the redundancy plan, redundancies during the reporting No [x] including reasons for redundancies, number of period? workers involved, how they were selected, consultation undertaken, and measures to mitigate the effects of redundancy: Are any redundancies to the Yes [ ] If Yes, please describe the redundancy plan, including workforce planned for the next No [x] reasons for redundancies, number of workers year? involved, and selection and consultation process: Were there any changes in trade Yes [ ] If Yes, please provide details, and summarise union representation at Company No [x] engagement with trade unions during reporting facilities during the reporting period: period? Were there any other worker Yes [ ] If Yes, please provide details and summarise representatives (e.g. in the No [x] engagement with them during reporting period: absence of a trade union)? Were there any changes in the Yes [ ] If Yes, please provide details: status of Collective Agreements? No [x] Have employees raised any Yes [ ] If Yes, please state how many, split by gender, grievances with the project during No [x] summarise the issues raised in grievances by male the reporting period? and female staff and explain how the Company has addressed them:

Have employees raised any Yes [ ] If Yes, please state how many, split by gender, complaints about harassment or No [x] summarise the issues raised by male and female bullying during the reporting staff and explain how the Company has addressed period? them: Have there been any strikes or Yes [ ] If Yes, please summarise nature of, and reasons other collective disputes related No [x] for, disputes and explain how they were resolved: to labour and working conditions at the Company in the reporting period?

Have there been any court cases Yes [x] If yes, please summarise the issues contested related to labour issues during the No [ ] and outcome: reporting period? 1. Action for reinstatement to employment. Action dismissed by the Court of First Instance ruling, appeal granted in the Court of Second Instance. The Company filed a cassation complaint. The Supreme Court reversed the ruling of the Regional Court and remanded the case to be reconsidered. The Regional Court dismissed the appeal. The ruling is final. The employee filed a cassation complaint. 2. Action for compensation for injury to health caused by workplace harassment. Action dismissed. The employee filed an appeal. The Regional Court dismissed the appeal. The ruling is final. 3. Action to declare employment contract termination as ineffective. The Court of First Instance reinstated the employee. The ruling is final. 4. Action for reinstatement to employment. A settlement was reached on February 21st 2014, under which the contents of the employment certificate were changed with respect to the manner of employer termination. 5. Action for reinstatement to employment. Final ruling reinstating the employee. 6. Action for reinstatement to employment. A settlement was reached, under which the employee decided not continue employment with the Company. 7. Action for payment of difference between actual and due remuneration for work. The Court of First Instance ruling dismissed the action. Appeal dismissed, the ruling is final. 8. Action for obligating the company to issue an employment certificate stating that the employee performed work in special conditions. Action dismissed. The ruling is final. 9. Action for compensation for harm to the reputation of a former employee. The former employee withdrew the action. The case was closed by a final decision. 10. Action to declare employment contract termination as ineffective. Action dismissed. The ruling is final. 11. Action for compensation for damage suffered due to accident at work. Proceedings are pending. 12. Action for reinstatement to employment. Proceedings are pending. 13. Action for reinstatement to employment. Action suspended due to plaintiff's death. 14. Action for reinstatement to employment. Action suspended due to plaintiff's death. 15. Action for severance payment of PLN 28,789.00 in connection with retirement due to disability. Court settlement. The Company paid the amount agreed under the settlement to the employee. 16. Action to determine that the defendant is not entitled to be fully released from the duty to 31 work for the plaintiff. The final Court of First Instance ruling granted the action. Have there been any changes to Yes [x] If Yes, please give details, including of any new the following policies or terms and No [ ] initiatives: conditions during the reporting period in any of the following Amendments to the Collective Bargaining Agreement areas: concerning a change to the nature of employee bonus  Trade union recognition from profit and change in the amount of the  Collective Agreements contribution to the Company Social Benefits Plan.  Non-discrimination and equal opportunities for all  Equal pay for equal work  Gender equality  Bullying and harassment, including sexual harassment  Employment of young workers under 18  Wages and salaries (for regular and overtime hours)  Overtime  Working hours  Flexible working / work-life balance  Grievance mechanism for workers  Health & safety?

7. Occupational Health and Safety Data Please provide the name and Tomasz Ogrodnik (+48) 81 565 20 53 contact details for your Health [email protected] and Safety manager: Direct Contracted Direct Contracted employees workers employees workers Number of man- 5,007,300 243,343 Number of 0 0 hours worked this fatalities7: reporting period: Budget spent on 8,018,466.03 Number of 0 0 OHS in this period disabling injuries: (total amount and currency):

OHS training Worker training: 88 Number of lost 31 5 provided in this 1,820 time incidents period in person- participants/ (including days: 174 training vehicular): sessions

Manager training: 278 participants/ 10 training sessions

Administration and office staff training: 90 participants/5 training sessions Number of lost 673 17 Number of cases 0 0 workdays resulting of occupational from incidents: disease: Number of sick 41,063 1,744 days: Accident causes (falling, heavy loads, struck by object, contact with energy source etc.):

Injuries in transport, contact with chemical substances and sources of heat, mechanical injuries, loss of balance Please provide details of any fatalities or major accidents that have not previously been reported to EBRD, including total compensation paid due to occupational injury or illness (amount and currency):

Please summarise any emergency prevention and response training that has been provided for company personnel during the reporting period:

In 2014:  387 persons participated in training for chemical rescue teams  204 employees of Grupa Azoty Puławy participated in training for operators of equipment isolating the respiratory tract (air systems)  3 persons completed the Fire Service College of the National Fire Service  6 persons continued their education at the Fire Service College of the National Fire Service and Central School of the National Fire Service  4 persons participated in supplementary training for members of fire protection units  emergency procedures are also discussed during OHS training sessions.

Exercises and drills In 2014, the following drills were performed:  16 tactical and emergency drills of the Company Fire Brigade at the facilities of Grupa Azoty Zakłady Azotowe Puławy S.A.  10 drills were performed together with the fire brigades of the National Fire Service of the County Headquarters of the National Fire Service in Puławy  66 drills of divisional chemical rescue teams.

On October 7th-21st 2014, an exercise was performed on the premises of at Grupa Azoty Puławy to verify the organisation and conditions of evacuation from nine buildings. The exercise was observed by representatives of the National Fire Service.

Moreover, as part of OHS training sessions in 2014, training was provided to 2,188 employees on the use of gas masks, providing first aid, evacuation procedure in the case of an alarm signalling a chemical threat, and the rules of staying safe.

Please summarise any emergency response exercises or drills that have been carried out during the reporting period:

Pursuant to Order No. 27 of the Governor of the Province of Lublin, head of the Provincial Civil Defence, dated March 26th 2014, amending the Order on Preparation and Ensuring the Operability of the Provincial Detection and Alarm System and the Provincial Early Warning System, in the Province of Lublin the sirens are sounded four times in a year: in March, June and December – on the fourth Thursday of the month, and on September 1st, when the alarm signal is sounded at 12 noon making a loud test of the sirens (as part of the Provincial Detection and Alarm System drill). In other months, at 12 noon on each Thursday of the month, a silent test of the sirens is made (as part of the Provincial Early Warning System drill). In 2014, under Order No. 47 the sirens were sounded once, on February 27th 2014. Under Order No. 27, the sirens were sounded four times (on March 27th, June 26th, September 1st and December 18th). In addition, in 2014 sirens were operated in the loud mode to commemorate the start of the Warsaw Uprising.

8. Stakeholder Engagement Please provide the name and contact details for Grzegorz Kulik, Head of Corporate your external relations or community Communication Department (Press Officer) engagement manager: Emali: [email protected], telephone: (+48) 607 045 318 Marek Sieprawski, Head of Internal Communication and Corporate Social Responsibility Section Email: [email protected], telephone: (+48) 603 078 107 Please provide information on the implementation of the stakeholder engagement plan agreed with EBRD and summarise interaction with stakeholders during the reporting period, including:  meetings or other initiatives to engage with members of the public or public organisations during the reporting period  Organisational meetings in connection with the 'Tree for a Bottle' campaign with local partners (County Governor Office and Zakład Usług Komunalnych (Municipal Services Company)), visits at schools as part of the campaign, and a finale with the participation of representatives of all organisers and winning students and schools, as well as the media  Meetings with local school teachers as part of the ‘Academy of Ecological Skills’, attended also, in expert capacity, by representatives of the Municipal Office of Puławy  2nd conference entitled 'Can a Waste Product Become a Useful Product?', organised in Lublin by a Consortium including the Company  Participation in the publication of the 2013 Integrated Annual Report of the Grupa Azoty Group (GRI 4.0)  Participation in the establishment of the Polish Economic Security Consortium  Publication and distribution of the 'PULS' information magazine, presenting all key areas of operations of the Company and the Grupa Azoty Group (copies for internal distribution contain an insert on employee matters)  Content and financial patronage of environmental inserts released by the local press ('Dziennik Wschodni' and 'Kurier Lubelski')  Distribution of visibility vests to the Company's employees as part of the 'I'm visible, I'm safe' initiative  Extension of the patronage agreement with the Technical School Complex for the next three years  Establishment of the Puławy Branch of the Maria Curie Skłodowska University of Lublin and opening of the Technical Chemistry programme for students seeking employment at Grupa Azoty Puławy  Press conference devoted to the support provided to the Burn Treatment Children's Ward in Łęczna – specialist medical equipment purchased by Grupa Azoty Puławy  Agreement with the County Headquarters of the National Fire Service in Puławy on joint activities promoting children safety

 Family Picnic event under the 'Safety is Our Common Goal' slogan organised by municipal authorities together with County Headquarters of the Police and Fire Service

 Information provided to members of the public and other stakeholders during the reporting period relating to environmental, social or safety issues  2013 Integrated Annual Report of the Grupa Azoty Group  2013 Environmental Supplement  Report on the 25 years of the Polish agricultural industry; food security in Europe  press releases  'PULS' magazine  Presentations at conferences, including on environmental protection at Grupa Azoty Puławy based on the example of the Blue Gas project, and on waste management at Grupa Azoty Puławy

 coverage in the media  Environmental inserts in the local press  Promotion in company media of the activities of the Interdisciplinary Team for Prevention of Family Violence in Puławy  Information on the publication of the Integrated Annual Report  Information on the 'Tree for a Bottle' campaign and its results  Information on project completion – new ammonia storage and distribution facility  Press release on the conference entitled 'Safety and Health Protection in Handling Chemical Substances at Work'  Interview with the President of the Management Board entitled 'Safety from a Broad Perspective'  Coverage of the conference 'Science, Business, Agriculture' organised by the PUŁAWY Competence Centre and devoted to growth prospects for the agricultural market and conditions for food security  Information on promoting the need for and advantages of using visibility vests by cyclists among employees  'We Contribute to the Food Security of Poland, Europe and the World’ – interview with the President of the Management Board

 interaction with any environmental or other community groups

Please describe any changes to the Stakeholder Engagement Plan agreed with EBRD:

No complaints or grievances were received.

9. Community Development

Please summarise any social or community development / investment initiatives undertaken by the company during the reporting period, and any associated expenditure:

Grupa Azoty Zakłady Azotowe Puławy S.A. is pursuing environmental and social initiatives through participation in the 'Responsible Care' international chemical industry programme and also based on the Sponsorship and Social Support Policy adopted by the Management Board and the Supervisory Board. In 2013, as part of the 'Responsible Care' programme three projects were implemented: 'Tree for a Bottle', 'Catch the Hare' and ‘Academy of Ecological Skills’.

'Tree for a Bottle' campaign in 2014

The project was initiated in Puławy in 2005 under the auspices of the Secretarial Office of the Responsible Care Programme in cooperation with the County Governor's Office of Puławy (previously with the Municipal Office of Puławy) and Zakład Usług Komunalnych (Municipal Services Company) of Puławy.

The 2014 edition was dedicated to educational institutions from the County of Puławy. The project is a competition to collect as many empty PET bottles for recycling as possible. In exchange, schools receive tree and bush seedlings, and the winners are presented with awards, diplomas and small prizes. The project is gaining more and more recognition and media coverage, and is growing in popularity every year, as evidenced not only by the record high number of collected bottles and planted trees, but primarily by the increasing involvement of young people in practical activities to protect the natural environment. In 2014, 18 elementary schools and 2 pre-schools participated in the competition, 844,359 bottles were collected (the highest number to date), and 401 trees were planted. The cost of coordinating the project in 2014, borne by the Company, amounted to PLN 40,706.57.

‘Academy of Ecological Skills’ The ‘Academy of Ecological Skills’ is a project run by the Company since 2009. It is an environmental education initiative intended for local school teachers, mainly of biology and chemistry. Participants of the Academy gain practical knowledge on protecting and shaping the natural environment at national, local and company level, shared with them by experts from Grupa Azoty Puławy and from other companies and institutions in Poland. During a 40 hour programme at Grupa Azoty Puławy, held from September to April, teachers listen to lectures and presentations on various subjects, go on trips and local visits, and receive materials describing applicable laws and how they are applied in practice at companies such as Grupa Azoty Puławy S.A. In 2014, 20 teachers took part in the programme. Grupa Azoty Puławy is currently the only company pursuing the project. Its cost in 2014 was PLN 2,000.

'Catch the Hare' photography competition The competition, which has been held for the last eight years, is intended for the Company employees, and for the past two years has been also addressed to their children. Its aim is to unite the industry and employees around a common cause – protection of the environment, education through exploration of plant and animal ecosystems, and making people aware of the everyday need to protect the environment. Photographs are assessed by a professional jury. In 2014, the Company employees and their children won a few national awards –first place in the employee competition in the 'Animal Life' category and the 'Landscape and Its Elements' category, first place in the Junior competition (elementary school grades I-III), and second place in the secondary school category. The cost of the competition in 2014 was PLN 900.

'Safety is Our Common Goal' As part of the Sponsorship and Social Support Policy, the 'Safety is Our Common Goal' project was undertaken and support for local social needs was provided to selected institutions. The project is an educational initiative addressed to young people from the County of Puławy, initiated in 2012 together with the County Police Headquarters and County Fire Service Headquarters of Puławy. Thanks to the Company's support, an interesting educational offering was prepared, including brochures on fire safety and road traffic rules. The initiative involves meetings at educational institutions across the county (elementary schools, junior high schools and pre- schools). The educational sessions are divided to cover three age groups, i.e. pre-schools, elementary schools and junior high schools. Each participant receives an educational brochure and small gifts (including reflective bands). Moreover, visibility vests are handed to students who get to school on a bike. In addition, 1,100 visibility vests were distributed at all pre-schools in Puławy, and the headmasters were obligated to ensure children wear them when on a walk. During the meetings, road safety was promoted and the issue of threat avoidance was addressed. The County Headquarters of the National Fire Service prepared contests of knowledge on fire fighting for elementary school students. Those with the best knowledge in that area received special awards (100 carbon monoxide detectors financed by Grupa Azoty Puławy). On May 31st, in the city park an open Family Picnic was organised as a final event under the initiative. The picnic featured skill competitions, rescue equipment demonstrations, and football matches with celebrities. The cost of the project in 2014 was PLN 115,043.72.

In addition, as part of the Sponsorship and Social Support Policy, funds were donated to social causes, such as education quality improvement, equal opportunities for the disabled, health protection and promotion of healthy living, integration of local communities, regional art and culture development, and regional sports and recreation. The total amount of donations for these goals in 2014 amounted to PLN 1,599,169.59.

Grupa Azoty Zakłady Azotowe Kędzierzyn S.A.

1. Company Details Company Name: Grupa Azoty Zakłady Azotowe Kędzierzyn S.A. Company Address: ul. Mostowa 30 A, 47-220 Kędzierzyn-Koźle, Poland, PO Box 163 Country: Poland Town/Location: Kędzierzyn-Koźle Company authorized representative: Krzysztof Kamiński I certify that the data contained in this report completely and accurately represents operations during this reporting period. Signature:

Title: Vice-President of the Management Board Date: April 15th 2015 Contact Details: Telephone: (+48) 77 481-22-59 Mobile: (+48) 723-186-903 Email: [email protected]

Please provide key data on the Company performance, as well as production levels at each plant. For each of the 7 large plants please provide:

Grupa Azoty Kędzierzyn

Item YTD

[PLN '000] 2013 2014

Revenue 2,075,772 2 055 616 Profit/(loss) on sales 91,391 130 789 EBIT 97,594 89 490 EBITDA 173,735 174 396 Net profit/(loss) 85,310 78 364

Key performance indicators in terms of energy use, emissions, natural resource use, and carbon emission. Information presented in sections 4 and 5. Number of staff employed and any change in employment over past 3 years – see Section 6.

As at Dec 31 2012 As at Dec 31 2013 As at Dec 31 2014 Number of direct employees: 1,590 1,573 1569 Number of contracted workers: - - -

Provide information on permits and status of compliance of each subsidiary with IPPC/IED

Grupa Azoty ZAK S.A. operates in full compliance with applicable legal requirements. In 2014, Grupa Azoty ZAK S.A. continued to regulate the legal status with respect to its environmental protection standards to ensure that its operations are carried out in compliance with the law. The company obtained two amendments to the integrated permit for the Power Business Unit installations, two amendments to the integrated permit for the Oxoplast Business Unit installations,

39 one amendment to the integrated permit for the Fertilizers Production Unit, and a new water permit concerning wastewater discharge to the Odra river. Moreover, as regards greenhouse gas emissions, the company obtained two amendments to permits for greenhouse gas emissions: for the company CHP plant and for the chemical installations. Below are presented all environmental decisions held by Grupa Azoty ZAK S.A. (as at December 31st 2014):

I. Integrated permits Oxoplast Business Unit's installations 1. Environmental decision ŚR.III-MJ-6610-1-34/06 of December 29th 2006 − integrated permit for the Oxoplast Business Unit's installations, as amended Fertilizer Business Unit's installation 1. Environmental decision ŚR.III-MJ-6610-1-28/06 of December 29th 2006 − integrated permit for the Fertilizers Business Unit's installations, as amended Power Business Unit's and Infrastructure Unit's installation 1. Environmental decision ŚR.III-MJ-6610-1-29/05 of June 30th 2006 − integrated permit for the Power Business Unit's and Infrastructure Unit's installation, as amended

II. Water-law permit 1. Environmental decision ŚR.III-MJP-6811-179/05 of March 14th 2006 − water-law permit for water abstraction, as amended 2. Environmental decision DOŚ-III.7322.115.2013.AK of February 24th 2014 − water-law permit for wastewater discharge 3. Environmental decision ŚR.III-MK-6811/19/02 of May 16th 2002 – decision establishing a direct protection zone for wells drawing water from Tertiary and Quaternary formations.

III. Waste Generation 1. Environmental decision ŚR.II-6620-6/07 of December 3rd 2007 − permit for waste generation for installations not covered by the obligation to obtain an integrated permit, as amended

IV. Decision on closing of the sludge landfill site at the Central Mechanical and Biological Sewage Treatment Plant 1. Environmental decision DOŚ.IV.AKu-7638-4-1/08 of February 12th 2008 – permit for closing the sludge landfill site at the Central Mechanical and Biological Wastewater Treatment Plant, as amended

V. Decisions approving landfill operation instructions 2. Decision DOŚ.III.7241.2.9.2013.MK of February 26th 2014 – decision approving the operation instruction for an ash and slag landfill site 2. Decision ŚR.III-HS-6621-5-3/02 of December 30th 2002 – decision approving the operation instruction for a landfill site for wastes other than inactive and non-hazardous – the post-repair and sanitary waste landfill site, as amended 3. Decision ŚR.III-HS-6621-5-2/02 of December 30th 2002 – decision approving the operation instruction for a hazardous waste landfill site – the sludge landfill site at the Central Mechanical and Biological Sewage Treatment Plant, as amended 4. Decision ŚR.III-HS-6621-5-4/02 of December 30th 2002 – decision approving the operation instruction for a hazardous waste landfill site – the post-production waste landfill site, as amended

VI. Greenhouse gas emission 1. Environmental permit DOŚ.III.7225.10.2011.BG of June 30th 2011 − permit for emission of greenhouse gases, that is N2O from the TKIV and TKV nitric acid production units and CO2 from the ammonia, synthesis gas, aldehyde and alcohol production units, as amended 2. Environmental permit DOŚ.III.7225.20.2012.BG of February 15th 2013 – permit for greenhouse gas (CO2) emission from the CHP Plant, as amended

VII. Remediation 1. Decision WOOŚ.511.7.2013.KM.4 of February 24th 2014 – determination of conditions of environmental remediation in the vicinity of the decommissioned ammonia tank at the TK I unit

Reporting period: 2014

2. General Is the project materially compliant Yes [X] If No, please provide details of any material non- with all relevant EBRD Performance No [ ] compliances: Requirements (taking account of agreed action plans, exemptions or derogations)? Is the project materially compliant Yes [X] If No, please provide details of any material with all applicable environmental and No [ ] non-compliances: social laws and regulations? Have there been any accidents or Yes [X] If yes, please describe, including details of incidents that have caused damage to No [ ] actions to repair and prevent reoccurrence: the environment, brought about In 2014, the following two incidents occurred injuries or fatalities, affected project and were reported to the Provincial labour or local communities, affected Environmental Protection Inspector: cultural property, or created liabilities for the company? - A leakage at the ammonia unit (in the heat disposal system), leading to an explosion of hydrogen leaking from the bottom of the heat exchanger, occurred. The incident, involving involved gas ignition and explosion, took place during stable operation of the unit. Following the explosion the plant was stopped by applying the general blockage mechanism and the fire was put out using nitrogen for purging. Process gas, consisting mainly of hydrogen, was released and burned completely during the incident. Several employees were injured in the incident. Some of the plant equipment and facilities were damaged. There was no impact on the environment. The implemented preventive measures included equipping all valves engaged in blockage with terminal switches, analysis of advisability of fitting additional local emergency switches at the key points of the unit, implementing a video monitoring system (CCTV cameras), and upgrading the on-site I&C equipment;

re-analysing the documentation related to occupational oversight and risks, transferring the laboratory services base to other facilities.

- A leakage on a blank flange in the nitric acid pipeline from an external reboiler of the absorption column on the TKIV nitric acid production unit. The accident led to a leakage of nitric acid and emission of nitric oxides. The diluted acid produced as a result of applying water curtains and attack streams was discharged, through the safety tray on which the unit is placed, to the industrial drainage system via a neutralisation well filled with dolomite stone, and then to the wastewater treatment system at the plant. The accident had no effect on the health or lives of the employees. The implemented preventive measures include: - Supplementing the position training programme on local workplace hazards, designed for external employees, with information on materials resistant to hazardous substances found in the element/unit undergoing repairs, - During training provided to external employees, before such employees undertake any work at the nitric acid production unit, they should be always and without any exception reminded of the properties of individual substances and of the materials which should be used given their properties. Have there been any changes to Yes [X] If yes, please describe: environment, social, labour or health No [ ] The amendments to environmental protection and safety laws or regulations that laws introduced, inter alia, an obligation to have materially affected the company? obtain, by July 1st 2015, integrated permits for wastewater treatment plants and a requirement to prepare a baseline report for IPPC installations, which will be one of the necessary documents the plant will be required to submit when applying for an integrated permit for a wastewater treatment plant and also when applying for a change in existing integrated permits, as well as a requirement to prepare a final report upon the end of the operating life of the installation. If the baseline or final report suggests that there is soil or groundwater contamination, the competent authority will provide report copies to the Regional Director for Environmental Protection, which will result in the requirement to submit a remediation plan. To fulfil the new obligations, the Company has prepared and submitted an application for an integrated permit for the wastewater treatment plant of Grupa Azoty ZAK S.A., and work is also in progress on the preparation of the baseline report on the quality of soil and groundwater (an agreement for the preparation of the report has been executed with a specialist company).

How many inspections did you receive Number: 4 Please provide details of these visits, including from the environmental authorities number and nature of any violations found: during the reporting period? The inspections were carried out by the Opole Provincial Environmental Protection Inspector: a) two inspections following the completion of investment projects: - construction of a storage facility at the CAN Division, replacement of an EPA plate heat exchanger, replacement of a start-up condensate pump at the TKV unit; - modernisation of the Central Mechanical Wastewater Treatment Plant. No post-inspection rulings were issued following the inspection. b) two inspections concerning prevention of major industrial accidents relating to: - the accident at the ammonia production unit; Following the inspection, one post-inspection ruling was issued to submit a post-accident report with the Provincial Inspectorate for Environmental Protection (WIOŚ), which was complied with on time. - verification of compliance with the regulations on chemical substances and their mixtures, cooling agents, F-gases and PCB, and implementation of measures to prevent major industrial accidents (the inspection was carried out as a joint inspection effort of the Provincial Inspectorate for Environmental Protection, the National Labour Inspectorate, and the National Fire Service). No post-inspection rulings were issued following the inspection.

How many inspections did you receive Number: 9 Please provide details of these visits, including from the health and safety authorities National number and nature of any violations found: during the reporting period? Labour In 2014, the National Labour Inspectorate Inspectorate carried out three inspections: (PIP) – 3 - The first inspection was conducted between National July 11th and 21st 2014. During the inspection, Atomic three OHS recommendations and one Energy recommendation relating to legal protection of Agency labour were issued. (NAEA) – 4 - The second inspection was conducted between Railway August 13th and October 13th 2014. Following Transport the inspection, a statement was issued Office (UTK) containing two requests to take steps to develop − 2 rules regulating the flow of information on measurements taken, including information on the thickness of chamber walls and equipment in operation, in order to relate measurement results to calculation requirements and, thereby, prevent major industrial accidents in the future, and to take steps to use technical solutions which would ensure better material strength in case of unexpected threats to the health and life of employees. Both statements were complied with. - The third inspection was conducted between November 6th and 26th 2014. An order was issued to verify the occupational risk assessment related to loading work performed on top-loaded rail tank cars in order to account for the threats resulting from work at height and to assess the appropriateness of the types of protection measures applied in this area, including the type of rail tank car being handled. The ruling was complied with. A statement was also issued containing two requests to ensure correct and uniform identification of ammonia analysers in the check reports of the analysers at the non- pressurised ammonia storage and distribution facilities in connection with the numbering scheme used in the individual facilities, and full determination of the circumstances of work accidents. Both requests were complied with. In 2014, the National Atomic Energy Agency and the Railway Transport Office conducted four and two inspections, respectively, and did not identify any non-compliance or irregularity.

How many inspections did you receive Number: 3 Please provide details of these visits, including from the labour authorities during the number and nature of any violations found: reporting period? In 2014, the National Labour Inspectorate carried out three inspections: - The first inspection was conducted between July 11th and 21st 2014. During the inspection, three OHS recommendations and one recommendation relating to legal protection of labour were issued. - The second inspection was conducted between August 13th and October 13th 2014. Following the inspection, a statement was issued containing two requests to take steps to develop rules regulating the flow of information on measurements taken, including information on the thickness of chamber walls and equipment in operation, in order to relate measurement results to calculation requirements and, thereby, prevent major industrial accidents in the future, and to take steps to use technical solutions which would ensure better material strength in case of unexpected threats to the health and life of employees. Both statements were complied with. - The third inspection was conducted between November 6th and 26th 2014. An order was issued to verify the occupational risk assessment related to loading work performed on top- loaded rail tank cars in order to account for the threats resulting from work at height and to assess the appropriateness of the types of protection measures applied in this area, including the type of rail tank car being handled, which was complied with. A statement was also issued containing two requests to ensure correct and uniform identification of ammonia analysers in the check reports of the analysers at the non-pressurised ammonia storage and distribution facilities in connection with the numbering scheme used in the individual facilities, and full determination of the circumstances of work accidents. Both requests were complied with. Have these visits resulted in any Yes [ ] If yes, please describe, including status of penalties, fines and/or corrective No [X] implementing corrective actions to address any action plans? violations found:

Has the Company engaged any Yes [X] If yes, please state for which types of work, and contractors for project-related work No [ ] how the company has monitored the compliance in the reporting period? of contractors with EBRD Performance Requirements and the Environmental and Social Action Plan:

The Company engaged external contractors for the following types of work: - development of design documentation, - demolition work, - remediation work (the area around the decommissioned ammonia gasometer at a unit that had been taken off-line), - construction and repair work, - collection of waste generated by the plant (including complete oil and lubrication service of plant and equipment). The work of sub-contractors was monitored through: - ongoing supervision of work, - ongoing OHS inspections, - subcontractor/contractor audits, - work acceptance reports.

Yes [ ] If yes, please provide details, including how the Were any of the violations stated No [X] Company is ensuring that corrective actions are above the responsibility of contractors? implemented by the Contractor?

Have any operations been reduced, Yes [ ] If yes, please describe: temporarily suspended or closed down No [X] due to environmental, health, safety or labour reasons?

Work was continued on improvement of the environmental protection management system compliant with the ISO 14001:2004 standard. The work involved updating system documentation (e.g. the List of Material Aspects). Detailed objectives were also implemented and internal audits were performed. In February 2014, auditors from BUREAU VERITAS Polska Sp. z o.o., an external entity, performed a recertification audit of compliance with the requirements of the ISO 9001:2008, PN-N-18001:2004, OHSAS 18001:2007 and ISO 14001:2004 standards. The audit confirmed compliance. The obtained certificates are valid until February 13th 2017.

In connection with its membership in Fertilizers Europe, an association of European fertilizer producers, the Company has implemented a Product Stewardship Programme, successfully completed an audit, and received positive certificate recommendation from the auditor, Det Norske Veritas GL. In July 2014, the Company was awarded the Product Stewardship certificate (Product Stewardship Programme) valid until May 24th 2017. The certificate confirms that production of mineral fertilizers at the Company is entirely safe to human health and the environment and acknowledges that the Company meets the highest global standards.

In 2014, the Company carried out activities designed to achieve detailed environmental protection objectives and completed tasks undertaken in connection with participation in the Responsible Care® Programme, the most important of which were: - completion of the modernisation of the Central Mechanical Wastewater Treatment Plant, - continued construction of a new CHP Plant, - general overhaul of the A-352 gasometer at the synthesis gas production unit, - overhaul of a 69-meter section of the storm water drainage at the I/M field, - continuation of the remediation work on the area around the decommissioned ammonia gasometer at the TKI nitric acid production unit that had been taken off-line, - improvement of OHS conditions at numerous production units, - implementation of nine health promotion programmes for employees, - participation in the 'Catch the Hare' nature photography contest, - ecology workshops for young people.

Please indicate the level of associated expenditure (capital expenditure and operating expenditure), and whether this relates to the requirements of the Environmental and Social Action Plan, or to any other initiative: Expenditure on the implementation of the planned activities was as follows: - expenditure on the implementation of the environmental protection improvement plan in 2014 – ca. PLN 73.9m, - expenditure on the implementation of the activities undertaken as part of the 'Responsible Care®' Programme – ca. PLN 2.9m.

4. Environmental Monitoring Data for each of the key subsidiaries The information required in this section can be extracted from a CSR report, or a full CSR report can be attached.

Please provide the name and contact details for your environmental manager: Parameter2 Value3 Unit Compliance Status4 Comments5 Wastewater

Total wastewater 6,782.4 TCM Compliant Aggregate generated wastewater stream Biochemical 31.5 Mg Compliant Same as Oxygen Demand above (BOD) Chemical Oxygen 345.4 Mg Compliant Same as Demand (COD) above Suspended solids 62.9 Mg Compliant Same as above Phosphorus 1.5 Mg Compliant Same as above Nitrates 44.3 Mg Compliant Same as above Heavy metals 3.316 Mg Compliant Same as above [Other] Ammoniacal 28.9 Mg Compliant Same as nitrogen above Total nitrogen 95.0 Mg Compliant Same as above Air Per each Mg/Nm3 emissions major point source

SO2 1,799.72 Mg Compliant Emissions mainly from the CHP Plant Nitrogen oxides 1,079.16 Mg Compliant Aggregate (NOX) emissions from the CHP Plant and chemical units Dust [total quantity] 315.80 Mg Same as above Same as above

CO2 966,803.8 Mg Not applicable Same as 1 above Other Parameters Ammonia 476.59 Mg Compliant Emissions from manufacturin g

Noise In 2014, - - - noise levels were not measured – periodic noise measurem ents are performed every two years; noise levels for the Company's production units will be measured in 2015. [Other] Total solid waste 128,628.9 Mg Compliant Waste volume 4 generated in the reporting including but not year is given. limited to: 06 03 14 71.6 Mg Compliant Phthalic Salts and solutions anhydride (ammonium post- nitrate melt) production waste 07 01 04* − 130.04 Mg Compliant Aldehyde and catalyst alcohol post- reactivation production residue waste 07 01 08* − post- 4,223.14 Mg Compliant Aldehyde, reaction and post- alcohol and distillation residue phthalic anhydride post- production waste 07 01 10* − filter 10.00 Mg Compliant Ester post- cakes production waste 07 01 11* − sludges 23.72 Mg Compliant Sediments from on-site from the effluent treatment treatment of aldehyde and alcohol post- production wastewater and from wastewater pretreatment

10 01 80 − ash and 100,797.2 Mg Compliant Waste from slag mixes 1 the Company's CHP Plant 15 01 02 − plastic 55.40 Mg Compliant Aggregate packaging waste stream 15 01 03 – wooden 61.52 Mg Compliant Aggregate packaging waste stream 15 02 02* − wiping 4.21 Mg Compliant Aggregate cloths waste stream 15 02 03 – 11.94 Mg Compliant Aggregate absorbents, filter waste stream materials 16 07 09* − waste 2.5 Mg Compliant Waste from from tank cleaning the fertilizers production line 16 08 01 – spent 50.44 Mg Compliant Nitric acid, catalysts aldehyde and containing alcohol post- precious metals production waste 16 08 02* − spent 39.91 Mg Compliant Ammonia catalysts post- containing production dangerous waste substances 16 08 07* 18.00 Mg Compliant Aldehyde and catalysts alcohol post- containing production dangerous waste substances 17 01 07 17,000.00 Mg Compliant Amount for Mixed rubble aggregate waste stream from demolition plant facilities 17 04 02 49.48 Mg Compliant Aggregate Aluminium waste stream 17 04 05 – iron and 2,776.40 Mg Compliant Aggregate steel waste stream 19 08 01 − 15.96 Mg Compliant Waste from screenings treatment of aggregate wastewater stream 19 08 02 – waste 0.50 Mg Compliant Same as from desanding above 19 08 11* − sludges 2,108.00 Mg Compliant Same as from biological above treatment of industrial wastewater

19 08 13* − sludges 852.56 Mg Compliant Same as from other above treatment of industrial wastewater 19 09 01 – solid 22.16 Mg Compliant Waste from waste from water primary filtration treatment and screenings Please provide details of the types and amounts of solid wastes generated by the project. Indicate where wastes are classified as hazardous. Indicate the final re-use, recycle or disposal method for each waste type.

During project execution, waste was generated by contractors, with the following types and quantities: - insulation materials etc. (waste code 17 06 04) – 20.34 Mg – delivered to a waste management company for disposal - mixed rubble (waste code 17 01 07) – 45.29 Mg – delivered to a waste management company for disposal - bricks (waste code 17 01 02) – 20.00 Mg – delivered to a waste management company for disposal

5. Resource Usage and Product Output Measuremen Parameter Value Comments6 t Unit Fuels used

Natural gas 385,459.288 TCM Ammonia production feedstock Hard coal 224,888.401 Mg Coal parameters: calorific value – 20,605 kJ/kg, sulfur content – 0.49%, ash content – 26%. Lignite - - - Grid electricity 339,213.807 MWh Volume of electricity purchased for Grupa Azoty ZAK S.A. Heat purchased 5,270.00 GJ Feedstocks and raw materials consumed: Propylene 124,694.941 Mg Aldehyde production feedstock Ortoxylene 8,450.470 Mg Phthalic anhydride production feedstock Nitrogen 268,829.000 TCM Figure covers all plant operations Oxygen 254,619.000 TCM Figure covers all plant operations Terephthalic acid 4,863.393 Mg Ester production feedstock 2 - propylheptanol 576.969 Mg Ester production feedstock Product output Kędzierzyńska saletra 276,950.000 Mg Kędzierzyńska saletra amonowa® amonowa® (Kędzierzyn ammonium nitrate) (Kędzierzyn ammonium nitrate) Total Salmags and 364,971.600 Mg Total Salmags and Calcium Ammonium Calcium Ammonium Nitrate Nitrate Total urea 161,880.324 Mg Total urea Total OXO alcohols 171,166.000 Mg Total OXO alcohols Total OXOPLASTS 25,145.398 Mg Total OXOPLASTS

6. Human Resources Management

Please provide the name and contact details for your Monika Ptaszyńska, Head of HR Unit Human Resources manager: Telephone: (+48) 77 481-31-52 Email: [email protected] Recruited in this Terminated in this Total reporting period reporting period Number of direct 1,569 53 57 employees: Number of contracted 0 0 0 workers: Were there any collective Yes [ ] If yes, please describe the redundancy plan, including redundancies during the reporting No [X] reasons for redundancies, number of workers period? involved, how they were selected, consultation undertaken, and measures to mitigate the effects of redundancy: Are any redundancies to the Yes [ ] If yes, please describe the redundancy plan, including workforce planned for the next No [X] reasons for redundancies, number of workers year? involved, and selection and consultation process: Were there any changes in trade Yes [X] If yes, please provide details, and summarise union representation at Company No [ ] engagement with trade unions during reporting facilities during the reporting period: period? Election of the Chair of the Board following the expiry of the previous chair's term of office Were there any other worker Yes [ ] If yes, please provide details and summarise representatives (e.g. in the No [X] engagement with them during reporting period: absence of a trade union)? Were there any changes in the Yes [ ] If yes, please provide details: status of Collective Agreements? No [X] Have employees raised any Yes [ ] If yes, please state how many, split by gender, grievances with the project during No [X] summarise the issues raised in grievances by male the reporting period? and female staff and explain how the Company has addressed them: Have employees raised any Yes [ ] If yes, please state how many, split by gender, complaints about harassment or No [X] summarise the issues raised by male and female bullying during the reporting staff and explain how the Company has addressed period? them: Have there been any strikes or Yes [ ] If yes, please summarise nature of, and reasons for, other collective disputes related No [X] disputes and explain how they were resolved: to labour and working conditions at the Company in the reporting period? Have there been any court cases Yes [X] If yes, please summarise the issues contested related to labour issues during the No [] and outcome: reporting period? During the reporting period, four court cases relating to labour issues were pending. Three of them were concluded in the reporting period. (1 – dismissal of the appeal – the case related to reinstatement to employment, 1 – dismissal of the action – the case related to reinstatement to employment, 1 – payment of damages, in the remaining part dismissal of the action – the case related to reinstatement to employment, one case pending – violation of the principle of equal treatment in employment

Have there been any changes to Yes [X] If yes, please give details, including of any new the following policies or terms and No [ ] initiatives: conditions during the reporting Two supplementary protocols to the period in any of the following Collective Agreement were signed. areas: These supplementary protocols concerned:  Trade union recognition - Change in unit remuneration rates for  Collective Agreements loading fertilizer products by employees  Non-discrimination and equal remunerated on a piecework basis, and the opportunities for all value of basic contribution to the Company  Equal pay for equal work Social Benefits Fund (ZFŚS),  Gender equality - Change of fixed pay and additional  Bullying and harassment components of remuneration for employees including sexual harassment working in accordance with a shift schedule  Employment of young workers and substituting for a foreman. Modifications under 18 were also made in the table of base pay ranges for individual pay grade categories, as  Wages and salaries (for well as the names of two job groups included regular and overtime hours) in the pay scale and in the job qualification  Overtime scale.  Working hours  Flexible working / work-life balance  Grievance mechanism for workers  Health & safety?

7. Occupational Health and Safety Data Please provide the name and Marcin Trochimowicz, Head of Occupational Health & Safety contact details for your Health Division and Safety manager: Telephone: (+48) 77 481-22-53 Mobile: (+48 695-380-826) [email protected] Direct Contracted Direct Contracted employees workers employees workers Number of man- 2,605,491 Number of 0 0 hours worked this Fatalities7: reporting period: Budget spent on PLN 1,883,920 Number of 0 0 OHS in this period disabling injuries: (total amount and currency): OHS training 1,049 Number of Lost 0 - provided in this Time Incidents period in person- (including days: vehicular): Number of lost 826 Number of cases 0 workdays resulting of occupational from incidents: disease: Number of sick 21,881 days: Accident causes (falling, heavy loads, struck by object, contact with energy source etc.): Contact with sharp edge, contact with caustic substance, load on muscular system, fall on the same level.

Please provide details of any fatalities or major accidents that have not previously been reported to EBRD, including total compensation paid due to occupational injury or illness (amount and currency): No such occurrences Please summarise any emergency prevention and response training that has been provided for company personnel during the reporting period: Employees at Grupa Azoty ZAK S.A. receive emergency prevention and response training during periodic OHS drills in compliance with the P-03/C Procedure. The Chemical Rescue Division also gives training on these matters to the Divisional Chemical Rescue Team (100 people) operating at Grupa Azoty ZAK S.A. Please summarise any emergency response exercises or drills that have been carried out during the reporting period:

In 2014, the Chemical Rescue Division organised and conducted 12 emergency response exercises at Grupa Azoty ZAK S.A., on the premises of the Divisions/Units exposed to the highest risk of incident occurrence. The exercises were attended by employees from individual Divisions, the Rescue Team of the Chemical Rescue Division, Divisional Chemical Rescue Team, Gwarant (a personal and property security services provider), Falck Medycyna (healthcare provider) and Company Shift Dispatchers. In 2014, exercises were conducted at the Aldehyde, Ammonia and Urea Divisions. Additionally, at noon on the first Tuesday of each month the Company Shift Dispatcher announces a second degree drill alarm. On a daily basis, the Company Shift Dispatcher also runs operating tests of the emergency channel (the most important communication means during rescue operations at Grupa Azoty ZAK S.A.).

8. Stakeholder Engagement Please provide the name and contact details for Alicja Górska your external relations or community Head of the Investor Relations and Public engagement manager: Relations Office, Press Officer of Grupa Azoty ZAK S.A. Telephone: +48 774812635, +48695380892

Please provide information on the implementation of the stakeholder engagement plan agreed with EBRD and summarise interaction with stakeholders during the reporting period, including:  meeting or other initiatives to engage with members of the public or public organisations during the reporting period,  information provided to members of the public and other stakeholders during the reporting period relating to environmental, social or safety,  coverage in the media,  interaction with any environmental or other community groups. Please describe any changes to the Stakeholder Engagement Plan agreed with EBRD:

The Company takes care to ensure clarity and consistency in communicating with its market environment, and the local community and media. The Company announces all material events and activities through the media by maintaining contacts with journalists and publishing information and accounts of events and activities in the media. The Company has in place a consistent visual identity system and advertising design ensuring recognition in advertising and promotional campaigns, as well as in contact with the media and the Company's environment.

In its dialogue with stakeholder groups, the Company uses various communications tools:

- dialogue with employees: intranet, Company bulletin, email, company memos and letters, Integrated Management System messages and directives, staff meetings, staff meetings with the Management Board, meetings of foremen with the CEO, team bonding events, external tools: Facebook, Twitter, nation-wide and local media; - social dialogue forum: monthly meetings of the Company Management Board and HR Director with trade unions and social labour inspectors; - retired employees: meetings of the Senior Citizens Club with the Company Management Board held at least biannually; - the media: quarterly press meetings on the Company's ongoing operations, additional press briefings and events, press releases, information in the 'Media' section on the Company website and regular contact with the Company press officer;; - local community: local media (press articles and releases, radio programmes etc.), GRI annual report with a supplement on local activities, distributed through the media and the Company's website, Radio ZAK programme for the local community, Facebook, Twitter; - customers and suppliers: regular meetings with customers, leaflets, advertising brochures, POS materials, workshops, seminars, conferences, Customer Service Office, regular contacts of sales managers and directors with customers, and fertilizer and oxoplast product websites.

9. Community Development Please summarise any social or community development / investment initiatives undertaken by the company during the reporting period, and any associated expenditure:

Report on the performance under the Plan of Social and Sponsorship Activities at Grupa Azoty ZAK S.A. In 2014, Grupa Azoty ZAK S.A. was involved in CSR activities under social and sponsorship agreements. Supported areas included:  amateur sports,  cultural initiatives,  education and schooling,  environmental initiatives,  research programmes and initiatives to promote regional development,  initiatives to promote protection of life and health and support disabled persons,

 CSR initiatives.

The total funding for these areas amounted to PLN 372,695.68.

In 2014, Grupa Azoty ZAK S.A. also gave donations for initiatives related to:

 health protection and promotion,  ecology, animal welfare and protection of natural heritage,  holidays for children and the youth,  support for disabled persons,  religious organisations,  culture, arts, and protection of cultural property and national heritage,  science, higher education, schooling, and education systems,  charity,  helping the Polish diaspora and Poles abroad,  supporting and promoting physical education,  providing social assistance to families and individuals in difficult life circumstances and promoting equal opportunities among such families and individuals.

The total funding for these areas was PLN 60,000.

Grupa Azoty Zakłady Chemiczne Police S.A.

1. Company Details Company Name: Grupa Azoty Zakłady Chemiczne Police S.A. Company Address: 72-010 Police, ul. Kuźnicka 1 Country: Poland, Province of Szczecin Town/Location: Police Company authorized representative: Krzysztof Klein I certify that the data contained in this report completely and accurately represents operations during this reporting period.

Signature: Title: Head of Technical Safety Department Date: April 15th 2015 Contact details: Krzysztof Klein Telephone: (+48) 91 317-18-70 Mobile: (+48) 519-501-430 Email: [email protected]

Please provide key data on the Company performance, as well as production levels at each plant. For each of the 7 large plants please provide: The data will be provided after its publication.

Key performance indicators in terms of energy use, emissions, natural resource use, and carbon emission

Grupa Azoty Police

Item YTD

2014 [PLN '000] 2013 performance

Revenue 2,467,443 2,376,763 Profit/(loss) on sales 13,686 86,906 EBIT 57,184 101,121 EBITDA 136,055 184,064 Net profit/(loss) 42,155 82,677

Number of staff employed and any change in employment over past 3 years

As at Dec 31 2014 As at Dec 31 2013 As at Dec 31 2012 Number of direct employees: 2,380 2,395 2,295

Provide information on permits and status of compliance of each subsidiary with IPPC/IED Grupa Azoty Zakłady Chemiczne Police S.A. monitors changes to environmental protection regulations and takes measures to ensure continuous compliance. The Company takes part in public consultations

57 announced by the Ministers of the Environment and the Economy, voicing its comments on draft legislation. The IED has introduced new requirements for the titanium white production plant. The requirements are laid down in relevant regulations pursuant to the Environmental Protection Law.

To satisfy the requirements resulting from IED transposition, continuous monitoring was implemented at the titanium white production plant in January 2015, compliant with the new regulation. Investments and overhauls of dust removal and desulfurization units are nearing completion, and will ensure the units' compliance with the new emissions standards. Work also commenced on installing flue gas treatment facilities at CHP Plant II (EC II) to bring the unit in compliance with IED requirements (2016). To date, no BAT conclusions have been issued for the installations of Grupa Azoty Zakłady Chemiczne Police S.A. The period for adapting production installations to the emission requirements specified in the BAT conclusions is four years. The Company monitors compliance with best available technique requirements on an on-going basis. The majority of the industrial processes used by Grupa Azoty Zakłady Chemiczne Police S.A. meet the criteria of best available techniques, including the requirements laid down in Art. 143 of the Environmental Protection Law.

INTEGRATED PERMIT On January 9th 2014, pursuant to the decision of the Marshal of the Province of Szczecin, Ref. No. WOŚ.II.7222.13.9.2013.MG, the Company obtained a new integrated permit for the operation of the installations situated at the Grupa Azoty Zakłady Chemiczne Police S.A. plant. On September 26th 2014, following the amended Environmental Protection Law's coming into force, the Marshal Office reviewed the integrated permit and issued decision No. WOŚ.II.7222.20.2.2014.MG, extending the validity of the decision for an indefinite period.

Following a review, an application to change the integrated permit, along with the Baseline Report, were filed (in accordance with the Act Amending the Environmental Protection Law and Certain Other Acts of July 11th 2014, Dz.U.2014.1101).

On December 30th 2014, by virtue of the decision of the Marshall of the Province of Szczecin (Ref. No. WOŚ.II.7222.54.11.2014.MG), an amendment to the integrated permit was obtained and the Baseline Report was approved. New obligations, as set forth in the Environmental Protection Law and in some other acts (Dz.U of 2014, item 1101) with regard to monitoring the condition of soil and groundwater, will be performed by annual assessment of risk based on the ‘Assessment of contamination risk regarding soil and groundwater’ scheme, approved by the Marshal Office.

OTHER ADMINISTRATIVE DECISIONS In 2014, the Company obtained the following administrative decisions:  Decision of the Governor of the Province of Szczecin of January 9th 2014, Ref. No. WOŚ.II.7241.62.2.2013.BK, approving the iron sulfate (II) landfill site operating instruction and establishing security for claims in the form of an insurance policy covering the iron sulfate and the phosphogypsum landfill sites;  Decision of the Governor of the Province of Szczecin of January 9th 2014, Ref. No. WOŚ.II.7241.63.2.2013.BK, approving the phosphogypsum landfill site operating instruction and establishing security for claims in the form of an insurance policy covering the iron sulfate and the phosphogypsum landfill sites;  Decision No. 70/2014 of the Governor of the Province of Szczecin of February 24th 2014, Ref. No. AP-1.7840.18.393-4.2013.RS, approving the planning permission documentation and granting a building permit for the alteration of a floodbank with accompanying infrastructure as part of the project ‘Repair of the Floodbank around the Police Phosphogypsum Landfill Site’;  Decision of the Inspectorate of Environmental Protection for the Province of Szczecin of March 24th 2014, No. 46/2014/EMA, Ref. No. WI.OD 0933/33-4.12/2011, amending the

decision specifying the scope and schedule of actions required to remove the sources and effects of identified environmental threats related to operating an iron sulfate (II) landfill site.

 Decision of the Police County Governor of June 18th 2014, Ref. No. SR.6531.1.2014.KS, approving the hydrogeological documentation identifying usable reserves at the underground water intake from quaternary formations, comprising one S-1 well, at the iron sulfate landfill site operated by Grupa Azoty Zakłady Chemiczne Police S.A. in Police.  Decision of the Marshal of the Province of Szczecin of August 22nd 2014, Ref. No. WOŚ.II.7322.24.4.2014.MU – granting a water permit to build hydro-engineering structures and facilities (14 well enclosures together with water intake equipment at the iron sulfate landfill site operated by Grupa Azoty Zakłady Chemiczne Police S.A. in Police) as part of the project ‘Construction of an aquifer groundwater treatment system at the iron sulfate landfill site - stage I’.  Decision of the Marshal of the Province of Szczecin of October 31st 2014, Ref. No. WOŚ.II.7322.22-5.2014.PM granting a water permit to build a hydro-engineering structure, the S-1 well, at the iron sulfate landfill site and to abstract groundwater using the S1 deep water well.  Decision of October 28th 2014, Ref. No. WOŚ.II.7225.7.1.2014.IB, on amending the permit for greenhouse gas emissions from the ammonia production unit,  Decision of October 28th 2014, Ref. No. WOŚ.II.7225.8.1.2014.IB, on amending the permit for greenhouse gas emissions from the fertilizer production unit,  Decision of October 28th 2014, Ref. No. WOŚ.II.7225.9.1.2014.IB, on amending the permit for greenhouse gas emissions from the titanium white production unit,  Decision of October 28th 2014, Ref. No. WOŚ.II.7225.6.1.2014.IB, on amending the permit for greenhouse gas emissions from CHP Plant I (EC I).

Reporting period: 2014

2. General Is the project materially compliant Yes [X] If No, please provide details of any material non- with all relevant EBRD Performance No [ ] compliances: Requirements (taking account of agreed action plans, exemptions or derogations)? Is the project materially compliant Yes [X] If No, please provide details of any material with all applicable environmental and No [ ] non-compliances: social laws and regulations? Have there been any accidents or Yes [X] If yes, please describe, including details of incidents that have caused damage to No [ ] actions to repair and prevent reoccurrence: the environment, brought about injuries or fatalities, affected project At one of the plant's units, a Remech employee labour or local communities, affected suffered a fatal accident. cultural property, or created Remedial measures: liabilities for the company? - 'Inspection of access to production units containing hazardous substances'. The instructions provide for a system of identification of persons not directly involved in the operation of the unit (equipment operators and foremen) who enter the unit's premises; - an additional ammonia detection device with a warning signalling system was installed; - additional security blockages were introduced in the MAP/ammonium sulfate production process; - inspection and maintenance of bolts, gate valves and the MAP production unit; - verification of training programmes, ensuring minimum staffing levels. Have there been any changes to Yes [ ] If yes, please describe: environment, social, labour or health No [x] and safety laws or regulations that have materially affected the company?

How many inspections did you receive Number: 3 Please provide details of these visits, including from the environmental authorities number and nature of any violations found: during the reporting period?  In the first half of 2014, the Szczecin Provincial Inspectorate for Environmental Protection carried out two inspections at the Company:

- an inspection of compliance with environmental protection regulations and administrative decisions related to the operation of the phosphogypsum landfill site, - a triggered inspection performed following an accident at work to assess the operation of the system for preventing major industrial accidents at an upper-tier establishment.

 In the second half of 2014, the Szczecin Provincial Inspectorate for Environmental Protection, in cooperation with the National Labour Inspectorate and the County Headquarters of the National Fire Service in Police, carried out a scheduled comprehensive inspection at the Company, designed to:

- verify compliance with applicable regulations and administrative decisions by operators discharging wastewater to water or ground; - verify compliance with environmental protection regulations on air emissions of substances and heat; - verify the quality of data provided by the operators as part of the National Pollution Release and Transfer Register; - verify the regulations on the content of sulfur in heavy fuel oil used by fuel combustion plants; - verify the implementation of measures to prevent major industrial accidents; - verify how priority agglomerations fulfil the objectives provided for in the 2010 National Wastewater Treatment Programme (KPOSK 2010). No violations or irregularities were identified in the course of the inspections carried out in 2014. How many inspections did you receive Number: 4 Please provide details of these visits, including from the health and safety authorities National number and nature of any violations found: during the reporting period? Sanitary Inspectorate National Fire Service – no irregularities – 3 identified National National Sanitary Inspectorate – 8 irregularities Fire Service – 1 identified

How many inspections did you receive Number: 4 National Labour Inspectorate – 21 orders, 22 from the labour authorities during the requests contained in Statements. reporting period? The Company was ordered to take specific corrective actions. All rulings and the requests presented in the Statements were complied with in a timely manner. The National Labour Inspectorate was provided with information on the implementation of each request in accordance with specified deadlines. Have these visits resulted in any Yes [ ] If yes, please describe, including status of penalties, fines and/or corrective No [X] implementing corrective actions to address any action plans? violations found: Has the Company engaged any Yes [X] Contractors were engaged to: contractors for project-related work No [ ]  take samples and measure concentrations of in the reporting period? soluble forms of heavy metals: zinc, lead, nickel, chromium and antimony in the water from the piezometers of the monitoring network of the Iron Sulfate Landfill Site. The contractor holds accreditation No. AB 283 from the Polish Centre for Accreditation (Polskie Centrum Akredytacji);  take geodetic measurements of the landfill sites. The contractor holds the relevant professional licences and certifications required to carry out the work;  construct deep wells with a pump system for decontamination of the aquifer of the Iron Sulfate Landfill Site. The contractor holds the relevant professional licences and certifications required to carry out the work.

Have any operations been reduced, Yes [ ] If yes, please describe: temporarily suspended or closed down No [X] due to environmental, health, safety or labour reasons?

Please describe any environment or social programmes, initiatives or sub-projects undertaken during the reporting period to improve the company's environmental or social performance and/or management systems: 1. Grupa Azoty Zakłady Chemiczne Police S.A. pursues the 'Responsible Care' programme, which aims to gradually reduce the environmental footprint and improve human safety. Various 'green' initiatives implemented under the Programme have become a permanent part of Company environmental strategy. Account of the activities undertaken in 2013 The following tasks scheduled for execution were completed in 2014: 2. Replacement of the 0.8 MPa steam supply to the evaporator station with a 0.3 MPa steam supply at the phosphoric acid production unit. The project will improve the Company's steam management and reduce electricity purchases. 3. Alteration of the unloading station for sulfur road tankers (work related to air-tight sealing of the unloading process) − task in progress. Once the task is completed, it will improve OHS conditions at the workplace and reduce local sulfur emissions during unloading operations. 4. Purchase and assembly of the second 63-7 roller mill facility − task in progress. The planned effects, i.e. reduction of dust emissions, reduction of electricity consumption in the calcite milling process, and reduction of noise emission will be achieved once the project is completed. 5. Upgrade of the liquid sulfur unloading stations for top-loaded rail tank cars − task in progress. Once the project is completed, work and OHS conditions during the operation of the facility will improve. 6. Execution of a ventilation system for the phosphogypsum trestle − task in progress. The project will improve work conditions and the technical safety of belt conveyors, reduce surface icing in winter and humidity, which will have a positive effect on the technical condition of belt conveyors and trestle structure. 7. Upgrade of the security system on the post-hydrolytic acid and phosphoric acid pipelines through such measures as the introduction of additional local shielding. The pipelines have been designed to avoid the locations where the personnel are frequently present. The completion of the project enhanced the safety of the Fertilizers Business Unit employees. 3. Under the BSC programme, the Company also monitors and updates its occupational and environmental safety indicators. 4. In recognition of its dedication to ensuring safety, the Company has received such awards as:  Gold Card of Safe Work Leader (Złota Karta Lidera Bezpiecznej Pracy),  Responsible Care Framework Management System Certificate 5. Expenditure on environmental protection projects in 2014 was PLN 88,500 thousand.

Attached hereto.

4. Environmental Monitoring Data for each of the key subsidiaries The information required in this section can be extracted from a CSR report, or a full CSR report can be attached.

Please provide the name and contact Magdalena Rabe details for your environmental manager: [email protected] Parameter2 Value3 Unit Compliance Status4 Comments5 Wastewater Treated industrial 35,583,014 m3 compliant with the integrated permit wastewater Treated municipal 1,462,729 m3 compliant with the integrated permit wastewater Total wastewater 37,045,743 m3 compliant with the integrated permit Spent cooling water 131,559,26 m3 compliant with the integrated permit and rainwater Biological Oxygen 137,703.3 kg/year compliant with the integrated permit Demand (BOD) Chemical Oxygen 43,881.9 kg/year compliant with the integrated permit Demand (COD) Suspended solids 151,082.2 kg/year compliant with the integrated permit Phosphorus 614.3 kg/year compliant with the integrated permit Ammoniacal 133,532.9 kg/year compliant with the integrated permit nitrogen Heavy metals 634.68 kg/year compliant with the integrated permit [Other] phenols 8.8 kg/year compliant with the integrated permit Air emissions Per each Mg In 2014 major point source

SO2 Unit: ammonia 8.20 compliant with the integrated permit production unit

titanium 159.84 compliant with the integrated permit white production unit

mineral 1.25 compliant with the integrated permit fertilizers production unit

sulfuric acid 757.68 compliant with the integrated permit production unit

fuel 1,672.15 compliant with the integrated permit combustion unit (capacity above 50 MW)

Nitrogen oxides Unit: Mg (NO2)

ammonia 198.89 compliant with the integrated permit production unit

titanium 54.331 compliant with the integrated permit white production unit

mineral 13.69 compliant with the integrated permit fertilizers production unit

sulfuric acid 63.22 compliant with the integrated permit production unit

fuel 759.73 compliant with the integrated permit combustion unit (capacity above 50 MW)

Particulates Unit: Mg ammonia 0.20 compliant with the integrated permit production unit

titanium 24.56 compliant with the integrated permit white production unit

phosphoric 26.92 compliant with the integrated permit acid production unit mineral 207.90 compliant with the integrated permit fertilizers production unit

urea 99.82 compliant with the integrated permit production unit sulfuric acid 1.48 compliant with the integrated permit production unit

fuel 115.27 compliant with the integrated permit combustion unit (capacity above 50 MW)

CO2 Unit: Mg

ammonia 673,002 compliant with the integrated permit production unit

titanium 31,642 compliant with the integrated permit white production unit

mineral 43,130 compliant with the integrated permit fertilizers production unit

urea 13,303 compliant with the integrated permit production unit sulfuric acid 1,156 compliant with the integrated permit production unit

fuel 607,700 compliant with the integrated permit combustion unit (capacity above 50 MW) Other Parameters Noise According to meter readings, noise emissions are within permitted levels and comply with the Integrated Permit. [Other] Solid waste Please provide details of the types and amounts of solid wastes generated by the project. Indicate where wastes are classified as hazardous. Indicate the final re-use, recycle or disposal method for each waste type.

Type and amount of solid waste generated by Grupa Azoty Zakłady Chemiczne Police S.A. in 2014

Weight of waste Item Waste code Waste type generated [Mg] Solid salts and solutions other than those mentioned 1. 06 03 14 9,3 in 06 03 11 and 06 03 13 Sludges from onsite effluent treatment other than 2. 06 05 03 366,390.0 those mentioned in 06 05 02 3. 06 06 99 Wastes not otherwise specified 83.4 Phosphogypsum mixed with slags, bottom ash and 4. 06 09 81 boiler dust (excluding boiler dust mentioned in 10 01 1,708,266.8 04) 5. 06 11 83 Waste iron sulfate 78,336.3 Bottom ash, slag and boiler dust (excluding boiler 6. 10 01 01 881.4 dust mentioned in 10 01 04) 7. 10 01 02 Coal fly ash 592.0 8. 15 01 01 Paper and cardboard packaging 27.1 9. 15 01 02 Plastic packaging 147.7 10. 15 01 03 Wooden packaging 225.4

11. 15 01 05 Composite packaging 0.2 12. 15 01 07 Glass packaging 0.3 Packaging containing residues of or contaminated by 13. 15 01 10 N dangerous substances (i.e. Toxicity Class I: very toxic 3.640 and Class II: toxic crop protection chemicals) Absorbents, filter materials, wiping cloths and 14. 15 02 03 protective clothing other than those mentioned in 15 2.2 02 02 Discarded equipment containing hazardous 15. 16 02 13 N components (1) other than those mentioned in 16 02 0.338 09 to 16 02 12 Discarded equipment other than that mentioned in 16. 16 02 14 38.7 16 02 09 to 16 02 13 Components removed from discarded equipment 17. 16 02 16 11.2 other than those mentioned in 16 02 15 18. 16 06 01 N Lead batteries 4.780 19. 16 06 04 Alkaline batteries (except 16 06 03) 0.1 Mixture of concrete, bricks, tiles and ceramics other 20. 17 01 07 21.6 than those mentioned in 17 01 06 21. 17 04 02 Aluminium 9.5 22. 17 04 05 Iron and steel 1,193.7 23. 17 04 11 Cables other than those mentioned in 17 04 10 23.1 24. 19 09 02 Sludges from water clarification 1,082.3 25. 19 09 03 Sludges from decarbonation 30.6 26. 19 12 07 Wood other than that mentioned in 19 12 06 0.4 N − hazardous waste

Type and amount of solid waste recovered by units and equipment operating at Grupa Azoty Zakłady Chemiczne Police S.A. in 2014

Waste Recovery Item Waste code Waste type weight process R [Mg] Solid salts and solutions other than those 1. 06 03 14 8.0 R5 mentioned in 06 03 11 and 06 03 13 Sludges from onsite effluent treatment other 2. 06 05 03 366,390.0 R5 than those mentioned in 06 05 02 3. 06 11 83 Waste iron sulfate 1,612.4 R5 Bottom ash, slag and boiler dust (excluding 4. 10 01 01 881.4 R5 boiler dust mentioned in 10 01 04) 5. 12 01 01 Ferrous metal filings and turnings 771.1 R4 6. 12 01 99 Wastes not otherwise specified 2,519.0 R4 Soil and stones other than those mentioned 7. 17 05 04 313.2 R5 in 17 05 03 8. 19 09 02 Sludges from water clarification 1,082.3 R5 9. 19 09 03 Sludges from decarbonation 30.6 R5

Type and amount of solid waste transferred to third parties for recovery in 2014

Waste weight Item Waste code Waste type [Mg] 1. 06 11 83 Waste iron sulfate 73,795.1 2. 10 01 02 Coal fly ash 592.0 3. 15 01 01 Paper and cardboard packaging 27.1 4. 15 01 02 Plastic packaging 147.7 5. 15 01 03 Wooden packaging 222.7 6. 15 01 05 Composite packaging 0.2

Packaging containing residues of or contaminated by 7. 15 01 10 N dangerous substances (i.e. Toxicity Class I: very toxic 3.640 and Class II: toxic crop protection chemicals) Discarded equipment containing hazardous 8. 16 02 13 N components (1) other than those mentioned in 16 02 0.017 09 to 16 02 12 Discarded equipment other than that mentioned in 9. 16 02 14 38.4 16 02 09 to 16 02 13 Components removed from discarded equipment 10. 16 02 16 7.5 other than those mentioned in 16 02 15 11. 16 06 01 N Lead batteries 4.780 12. 16 06 04 Alkaline batteries (except 16 06 03) 0.1 13. 17 04 02 Aluminium 10.5 14. 17 04 05 Iron and steel 1,239.6 15. 17 04 11 Cables other than those mentioned in 17 04 10 23.0 16. 19 12 07 Wood other than that mentioned in 20 01 37 0.4 N − hazardous waste

Types and quantities of waste transferred to natural persons or non-business organisations to be used for their own needs in 2014:

Waste weight Item Waste code Waste type [Mg] 1. 17 04 05 Iron and steel 0.3

Type and amount of solid waste disposed of by units and equipment of Grupa Azoty Zakłady Chemiczne Police S.A. in 2014

Waste Disposal process Item Waste code Waste type weight (D) Solid salts and solutions other than 1. 06 03 14 those mentioned in 06 03 11 and 06 03 1,015.1 D9 13 Phosphogypsum mixed with slags, 2. 06 09 81 bottom ash and boiler dust (excluding 1,708,266.8 D5 boiler dust mentioned in 10 01 04) Carbide residue not containing 3. 07 01 80 dangerous substances (other than 97.4 D9 listed in 07 01 08) Concrete waste and rubble from 4. 17 01 01 179.9 D5 demolition and repair 5. 17 01 02 Bricks 110.3 D5 Mixture of concrete, bricks, tiles and ceramics other than those mentioned 6. 17 01 07 28.2 D5 in 17 01 06 N − hazardous waste

Type and amount of solid waste transferred to third parties for disposal in 2014

Item Waste code Waste type Waste weight [Mg] 1. 06 06 99 Wastes not otherwise specified 193.1 Absorbents, filter materials, wiping cloths and 2. 15 02 03 protective clothing other than those mentioned in 15 2.200 02 02 N − hazardous waste

5. Resource Usage and Product Output Measurement Parameter Value Comments6 Unit Fuels used Natural gas 517,030 TCM Hard coal 306,316 Mg Lignite Not applicable Grid electricity 290,112 MWh Heat purchased 726,223 GJ Feedstocks and raw materials consumed

Phosphate rock 796,376 Mg

Sulfur 194,166 Mg

Sulfuric acid from 277,061 Mg external sources

Ilmenite 64,860 Mg

Slag 18,281 Mg

Potassium chloride 266,662 Mg

Potassium sulfate 10,836 Mg

Ammonium sulphate from external 31,966 Mg sources

Magnesite 33,827 Mg Product output

Two-component 244,071 Mg fertilizers

Compound 686,384 Mg fertilizers

Urea 362,485 Mg

AdBlue 82,863 Mg

Titanium white 36,001 Mg

6. Human Resources Management Please provide the name and contact details for your Roman Cygan;[email protected] Human Resources manager: Total Recruited in this Terminated in this As at Dec 31 2014 reporting period reporting period Number of direct 91 employees: 2,380 106 Number of contracted 0 workers: 0 0 Were there any collective Yes [ ] If yes, please describe the redundancy plan, including redundancies during the reporting No [x] reasons for redundancies, number of workers period? involved, how they were selected, consultation undertaken, and measures to mitigate the effects of redundancy: Are any redundancies to the Yes [ ] If yes, please describe the redundancy plan, including workforce planned for the next No [x] reasons for redundancies, number of workers year? involved, and selection and consultation process:

Were there any changes in trade Yes [ ] If yes, please provide details, and summarise union representation at Company No [x] engagement with trade unions during reporting facilities during the reporting period: period? Were there any other worker Yes [ ] If yes, please provide details and summarise representatives (e.g. in the No [x] engagement with them during reporting period: absence of a trade union)? Were there any changes in the Yes [ ] If yes, please provide details: status of Collective Agreements? No [x] Have employees raised any Yes [ ] If yes, please state how many, split by gender, grievances with the project during No [x] summarise the issues raised in grievances by male the reporting period? and female staff and explain how the Company has addressed them: Have employees raised any Yes [ ] If yes, please state how many, split by gender, complaints about harassment or No [x] summarise the issues raised by male and female bullying during the reporting staff and explain how the Company has addressed period? them: Have there been any strikes or Yes [ ] If yes, please summarise nature of, and reasons for, other collective disputes related No [x] disputes and explain how they were resolved: to labour and working conditions at the Company in the reporting period? Have there been any court cases Yes [x] If yes, please summarise the issues contested related to labour issues during the No [ ] and outcome: reporting period? Court cases pending during the reporting period have not been resolved yet. Have there been any changes to Yes [x] If yes, please give details, including of any new the following policies or terms and No [ ] initiatives: conditions during the reporting period in any of the following During the reporting period, an agreement was areas: concluded with the trade unions concerning systemic  Trade union recognition, and individual pay rises in the reporting year.  Collective Agreements,  Non-discrimination and equal opportunities for all,  Equal pay for equal work,  Gender equality,  Bullying and harassment, including sexual harassment,  Employment of young workers under 18,  Wages and salaries (for regular and overtime hours),  Overtime,  Working hours,  Flexible working / work-life balance,  Grievance mechanism for workers,  Health & safety?

7. Occupational Health and Safety Data Please provide the name and Marta Szczucka - Kulig, Head of the OHS and Prevention Office, contact details for your Health email: [email protected] and Safety manager: Direct Contracted Direct Contracted employees workers employees workers Number of man- Number of 3,635,675.85 0 0 0 hours worked this Fatalities7: reporting period: Budget spent on Number of PLN 6,995.81 0 0 0 OHS in this period disabling injuries: thousand (total amount and currency): OHS training Number of Lost 1,702.5 0 18 0 provided in this Time Incidents period in person- (including days: vehicular): Number of lost Number of cases 757 0 0 0 workdays resulting of occupational from incidents: disease: Number of sick 23,870 0 days: Accident causes (falling, heavy loads, struck by object, contact with energy source etc.): - fall on the same level – due to ice or soiled surfaces − 6 - falls from stairs, ladder − 3 - contact with chemical substances – 5 - struck by a falling or moving object – 3 - fall from heights - 1

In the reporting period, Company employees did not suffer any fatal or serious accidents.

Please summarise any emergency prevention and response training that has been provided for company personnel during the reporting period:

The Company provides emergency prevention and response training (accidents, fires, chemical plant accident or other emergencies), general introductory training for employees and sub-contractors, introductory position-specific training, as well as periodic and supplementary training.

Please summarise any emergency response exercises or drills that have been carried out during the reporting period:

The on-site and equipment training sessions for chemical and technical rescue teams which were carried out in the period under review included: 17 on-site training sessions and 36 analyses from those sessions, 46 equipment training sessions for chemical rescue teams, 10 training sessions for technical rescue teams, 2 evacuation drills for office buildings (S-6 and 512), 2 evacuation drills for injured persons from vessel’s holds (Seaport − with the participation of the National Fire Service, Barge Port).

8. Stakeholder Engagement Please provide the name and contact details for Krzysztof Zajdel; your external relations or community [email protected] engagement manager: Please provide information on the implementation of the stakeholder engagement plan agreed with EBRD and summarise interaction with stakeholders during the reporting period, including:

 meetings and other initiatives to engage with members of the public or public organisations during the reporting period,  information provided to members of the public and other stakeholders during the reporting period relating to environmental, social and safety matters,  coverage in the media,  interaction with any environmental or other community groups. Please describe any changes to the Stakeholder Engagement Plan agreed with EBRD:

In 2014, Grupa Azoty Zakłady Chemiczne Police S.A. and other Grupa Azoty Group companies released their first integrated report, which in addition to presenting the financial performance in 2013, also explored their CSR and environmental initiatives. The report is yet another component of CSR activities. Each company covered by the report presented its involvement in regional development efforts separately. Initiatives aimed to support the development of education, sports and culture, as well as the declarations for 2014 and settlements for 2013 made under the Responsible Care programme, were presented in the regional brochures. In 1996, Grupa Azoty Zakłady Chemiczne Police S.A. joined the Responsible Care programme and was the first chemical sector company in the region that undertook measures to meet its requirements, which include gradual reduction of the environmental footprint and human safety improvement. Various 'green' initiatives implemented as part of the programme have become a permanent part of the Company's environmental strategy. For instance, the Chemical Sector Environmental Forum initiated as part of the Responsible Care programme is a major event for all domestic chemical sector companies. The Forum is an annual meeting of the management staff of chemical, distribution and recycling companies, as well as academics, public administration representatives, and environmental protection experts. Important environmental protection and OHS issues are discussed during these meetings in the context of the Responsible Care initiative. Implementation of EU regulations into Polish environmental protection law is another important topic at the meetings. Finally, participation in the programme facilitates the exchange of specialist industry knowledge. The ‘Catch the Hare’ competition has become a permanent fixture in the life of Grupa Azoty POLICE employees. Since 2013, children of those employed at companies taking part in the Responsible Care programme have also had the opportunity to participate in the ‘Catch the Hare – Junior’ competition. Grupa Azoty Zakłady Chemiczne Police S.A. wins awards in both contests each year, which shows the considerable talent of its employees. For many years, Grupa Azoty Zakłady Chemiczne Police S.A. has been tightening its ties with the local community, for example by collaborating with the local media. Thanks to ‘News from Grupa Azoty Zakłady Chemiczne Police S.A.’, a programme broadcast twice a month, residents of Police have access to the latest information on the Company, can learn about cultural events supported by Grupa Azoty POLICE and watch sports teams sponsored by the Company. Apart from the local TV station, the Company also communicates with the community through local press. The Company regularly publishes materials on its local and Poland-wide operations in ‘Wieści Polickie’ and ‘Magazyn Policki’ magazines. Through these articles, residents of Police also learn about other companies of the Grupa Azoty Group. The Company also publishes press releases and organises press conferences, where important events are thoroughly discussed. In addition, the Company puts emphasis on communicating with its employees, who account for a significant portion of the local community. Grupa Azoty POLICE has its own news bulletin, radio station, and Internet and intranet websites. The bulletin focuses principally on occupational health and safety issues relevant to both Company employees and operations. Biographical notes are also published there, shedding light on newcomers and those who have already achieved success in the Company or displayed particular commitment or creativity. The radio station broadcasts programmes about events taking place at the Company and employee matters, as well as interviews with the management. The station is also a source of information on issues important to the entire Group. As an internal tool for communicating with employees, the intranet is a database of knowledge on matters related strictly to work at the Company,

72 as well as a platform where invitations to local sports and cultural events are published. It is also there that information on new projects and competitions for employees is published to promote safe work practices, increase employee involvement and encourage positive relationships between staff members. The website is used to communicate information vital not only to the local community, but also to other stakeholders (including employees, customers, shareholders, and journalists).

In 2014, there were no complaints about the plant's operations, nor were any environmental penalties imposed.

9. Community Development Please summarise any social or community development / investment initiatives undertaken by the company during the reporting period, and any associated expenditure:

Like in previous years, a wealth of CSR initiatives was organised in 2014. Grupa Azoty POLICE once again supported a variety of cultural and sports events, and promoted scientific development by sponsoring conferences and publications. Focusing on forging positive relationships with its environment, the Company did not forget Police's youngest residents and backed up various initiatives in support of environmental education. As in previous years, the Company collaborated with local authorities and the Municipal Culture Centre in co- organising the International Police Day - Chemist Day celebrations, which have become a permanent fixture in the local community's calendar.

In 2014, Grupa Azoty Police spent PLN 1,032,400 on local social initiatives and donations.

Zakłady Azotowe Chorzów S.A.

1. Company Details Company Name: Zakłady Azotowe Chorzów S.A. Company Address: ul. Narutowicza 15; 41 – 503 Chorzów, Poland Country: Poland Town/Location: Chorzów; Upper Silesia Authorised Representative: 1) Katarzyna Wałęga 2) Lidia Jończyki

I certify that the data contained in this report completely and accurately represents operations during this reporting period.

1) …………………………………………….. Signature

Title: Member of the Management Board, Chief Commercial Officer

2) …………………………………………….. Signature

Title: Commercial Proxy, Chief Financial Officer Date: April 27th 2015

Contact Details: Telephone: (+48) 785-780-408 Email: [email protected]

Please provide key data on the Company performance, as well as production levels at each plant. For each of the 7 large plants please provide:

Zakłady Azotowe Chorzów S.A. Item YTD

[PLN '000] 2013 2014

Revenue 42,344 45,060 Profit/(loss) on sales -1,393 -1,572 EBIT -1,500 -3,982 EBITDA 190 -1,642 Net profit/(loss)* -896 -1,121

As at Dec 31 2012 As at Dec 31 2013 As at Dec 31 2014 Number of direct employees: 144 183 191 Number of contracted workers: - - -

Information on the integrated permit and other permits in the reporting period 2014:  Decision of the Marshal of the Province of Katowice of November 26th 2014, Ref. No. 2587/OS/2014, amending decision of the Governor of the Province of Katowice of December 27th 2007, Ref. No. ŚR-III-6618/147/21/0, granting an integrated permit for the potassium nitrate production unit – validity of the permit extended for an indefinite term

 Decision of the Marshal of the Province of Katowice of December 2nd 2014, Ref. No. 2769/OS/2014, amending: decision of the Marshal of the Province of Katowice of August 22nd 2013, Ref. No. 1848/OS/2013, for the facility for processing of technical-grade animal fats into distilled fatty acids – validity of the permit extended for an indefinite term

Decisions from previous years:  Decision No. ŚR-II-6618/PZ/147/8/06 by the Governor of the Province of Katowice, issued on May 7th 2007 (as amended), granting an integrated permit for the potassium nitrate production unit  Decision No. 1848/OS/2013 by the Marshal of the Province of Katowice, issued on August 22nd 2013, granting an integrated permit to Zakłady Azotowe Chorzów S.A. of Chorzów for the installation processing technical-grade animal fats and vegetable oils into distilled fatty acids and stearine, located within the premises of Zakłady Azotowe Chorzów S.A. at ul. Narutowicza 15 in Chorzów  Decision No. 528/OS/2013 by the Marshal of the Province of Katowice, issued on February 22nd 2013, amending Decision No. 3690/OS/2010, granting a water-law permit to Zakłady Azotowe Chorzów S.A. for the discharge of industrial wastewater containing substances particularly harmful to the water environment into the sewerage system of the Siemianowice Śląskie Municipality

2. General Is the project materially compliant Yes [X] If No, please provide details of any material non- with all relevant EBRD Performance compliances: Requirements (taking account of agreed action plans, exemptions or derogations)? Is the project materially compliant Yes [X] If No, please provide details of any material with all applicable environmental and non-compliances: social laws and regulations? The project ( 6.2) is compliant with all applicable environmental and social laws and regulations.

Have there been any accidents or No [X] incidents that have caused damage to the environment, brought about injuries or fatalities, affected project labour or local communities, affected cultural property, or created liabilities for the company? Have there been any changes to Yes [X] If Yes, please describe: environment, social, labour or health Act Amending the Environmental and safety laws or regulations that have Protection Law of July 11th 2014 materially affected the company? (Dz.U. item 622) How many inspections did you receive Number: 1 December 8th 2014: National Fire Service from the environmental authorities inspection to verify compliance with fire during the reporting period? protection regulations and assess the risk of a major industrial accident. Decision: to complete the external fire hydrant assembly, install a self-closing mechanism at fire doors, assess the risk of explosion at battery-electric truck charging stations, ensure proper labelling of fire extinguishers, supply missing signature. The decision was implemented.

How many inspections did you receive Number: 2 Inspections by the National Labour Inspectorate from the health and safety authorities – 2 during the reporting period? 1st inspection regarding a collective accident at the Fats Processing Division. Following the inspection, an instruction including 8 orders and a statement including 13 items were issued. The orders and the statement were related to the operation of the newly-created Fats Processing Division and concerned: - improvement of overall safety in explosion risk areas - mitigation of occupational risk associated with chemical factors.

2nd inspection involved verification of compliance with the orders and statements issued after the 1st inspection. A statement including 1 item was issued after the inspection. How many inspections did you receive Number: 2 Same as above from the labour authorities during the reporting period? Have these visits resulted in any No [X] If Yes, please describe, including status of penalties, fines and/or corrective implementing corrective actions to address any action plans? violations found: Has the Company engaged any No [X] If Yes, please state for which types of work, contractors for project-related work in and how the company has monitored the the reporting period? compliance of contractors with EBRD Performance Requirements and the Environmental and Social Action Plan: No [X] If Yes, please provide details, including how the Were any of the violations stated above Company is ensuring that corrective actions are the responsibility of contractors? implemented by the contractor?

Have any operations been reduced, No [X] If Yes, please describe: temporarily suspended or closed down due to environmental, health, safety or labour reasons? Please describe any environment or social programmes, initiatives or sub-projects undertaken during the reporting period to improve the company's environmental or social performance and/or management systems:

No such programmes or projects were undertaken.

No expenditure was made.

4. Environmental Monitoring Data for each of the key subsidiaries The information required in this section can be extracted from a CSR report, or a full CSR report can be attached. Please provide the name and contact Zakłady Azotowe Chorzów S.A. has no details for your environmental manager: Environmental Protection Department. Stanisław Bielecki, Environmental Protection Specialist, Head of the Water and Wastewater Division, Fire Inspector and Environmental Protection Specialist Telephone: (+48) 32 736-22-28. Email: [email protected] Parameter2 Value3 Unit Compliance Status4 Comments5 Wastewater After WWTP modernisation Total wastewater 353 m3/d 580 m3/d generated Biochemical Oxygen Demand (BOD) 44.1 mgO2/l 25 19.6 Chemical Oxygen Demand (COD) 127 mgO2/l 125 58.3 Suspended solids 37 mg/l 35 23

Phosphorus 1 mg/l 2 1 Nitrates 3.4 mg/l 30 1.5 Heavy metals - [Other] pH 8.25 6.5 – 9.5 8

Parameter Value Unit Compliance Comments Status Air emissions Per each major point source Mg/Nm3 Not Boilers given in applicable 3 mg/m u to projects

3 mg/m u K1 K2 K3 K4 K1,K2,K3 = 3 SO2 693.05 756.67 769.99 1,255.99 mg/m u 850 K4 = 1,500

3 Nitrogen oxides (NOx) 305.70 306.91 339.40 327.73 mg/m u 400

3 Particulates 5.48 4.83 3.22 82.13 mg/m u K1,K2,K3 = 50 K4 = 100

3 CO 34.23 25.72 32.88 410.96 mg/m u CO2analysis is not carried out Other parameters Noise does Noise 34.5 – 42.8 LAeg[dBA] 45-55 not exceed permitted

levels Other Waste Volume Unit

Wastes containing Mg 06 10 02* dangerous substances 160.026

Wastes not otherwise 132.195 Mg 06 10 99 specified

Sludges from onsite effluent treatment 59.65 Mg 07 06 12 other than those mentioned in 07 06 11

Bleaching earth from 49.08 Mg 07 06 80 oil refining

Wastes not otherwise 34.09 Mg 07 06 99 specified

Bottom ash, slag and boiler dust (excluding 888 Mg 10 01 01 boiler dust mentioned in 10 01 04)

Welding wastes 0.002 Mg 12 01 13

Mineral-based non- chlorinated engine, 0.015 Mg 13 02 05* gear and lubricating oils

Other emulsions 0.010 Mg 13 08 02*

Paper and cardboard 0.120 Mg 15 01 01 packaging

Plastic packaging 13.495 Mg 15 01 02

Absorbents, filter materials (including oil filters not otherwise specified), wiping 0.140 Mg 15 02 02* cloths, protective clothing contaminated by dangerous substances (e.g. PCB)

Absorbents, filter materials, wiping cloths and protective clothing 2.600 Mg 15 02 03 other than those mentioned in 15 02 02

Discarded equipment containing hazardous components (1) other 0.040 Mg 16 02 13* than those mentioned in 16 02 09 to 16 02 12

Components removed from discarded 0.134 Mg 16 02 16 equipment

Laboratory chemicals (e.g. chemical reagents) consisting of or containing dangerous 1.725 Mg 16 05 06* substances, including mixtures of laboratory chemicals

Iron and steel 339.92 Mg 17 04 05

Sludges from treatment 122.82 Mg 19 08 05 of urban waste water

Grease and oil mixture from oil/water 13.620 Mg 19 08 09 separation containing edible oil and fats

Types and quantities of waste subject to recovery outside the installations and equipment:

Item Waste Waste type Waste weight Recovery process R code [ Mg ] Bottom ash, slag and boiler dust ex 10 01 1 (excluding boiler dust mentioned in 10 01 265.18 R-14 01 04)

Types and quantities of waste transferred to natural persons or non-business organisations to be used for their own needs:

Item Waste Waste type Waste weight Recovery process R code [ Mg ]

In 2014, no waste was transferred to natural persons or non-business organisations to be used for their own needs.

5. Resource Usage and Product Output Measureme Parameter Value Comments6 nt Unit Fuels used Heavy fuel oil 198,4 Mg Crude oil 0 Natural gas 275,6 TCM Hard coal 5378,5 Mg Lignite 0 Grid electricity 4942 MWh Heat purchased 0 Feedstocks and raw materials consumed Nitric acid 3966,520 Mg (potassium nitrate) Nitric acid (calcium 632,52 Mg nitrate) Potassium carbonate 5224,97 Mg (potassium nitrate) Quick lime and 303,330 Mg slaked lime Product output Potassium nitrate 6035,775 Mg Calcium nitrate 1569,0 Mg

6. Human Resources Management Please provide the name and contact details for your Małgorzata Opoka Human Resources manager: Telephone: (+48) 32 73-62-031 Email: [email protected] Recruited in this Terminated in this Total reporting period reporting period Number of direct 191 32 20 employees: (as at Dec 31 2014) Number of contracted workers: - - - Were there any collective No [X] If Yes, please describe the redundancy plan, redundancies during the reporting including reasons for redundancies, number of period? workers involved, how they were selected, consultation undertaken, and measures to mitigate the effects of redundancy: Are any redundancies to the No [X] If Yes, please describe the redundancy plan, including workforce planned for the next reasons for redundancies, number of workers year? involved, and selection and consultation process: Were there any changes in trade Yes [X] In 2014, there was a change in the position of chair of union representation at Company the ZOZ NSZZ Solidarność Zakładów Azotowych S.A. facilities during the reporting Grupa Puławy trade union, as the previous chair's period? term of office expired.

Were there any other worker No [X] If Yes, please provide details and summarise representatives (e.g. in the engagement with them during reporting period: absence of a trade union)? Were there any changes in the No [X] If Yes, please provide details: status of Collective Agreements?

Have employees raised any No [X] If Yes, please state how many, split by gender, grievances with the project during summarise the issues raised in grievances by male the reporting period? and female staff and explain how the Company has addressed them: Have employees raised any No [X] If Yes, please state how many, split by gender, complaints about harassment or summarise the issues raised by male and female bullying during the reporting period? staff and explain how the Company has addressed them: Have there been any strikes or No [X] If Yes, please summarise nature of, and reasons for, other collective disputes related to disputes and explain how they were resolved: labour and working conditions at the Company in the reporting period? Have there been any court cases Yes [X] During the reporting period, there was one court related to labour issues during the case relating to labour issues. The proceedings, reporting period? which concern reinstatement to employment following disciplinary action, were instigated in December 2014 and are pending. Have there been any changes to No [X] If Yes, please give details, including of any new the following policies or terms and initiatives: conditions during the reporting period in any of the following areas:  Trade union recognition  Collective Agreements  Non-discrimination and equal opportunities for all  Equal pay for equal work  Gender equality  Bullying and harassment, including sexual harassment  Employment of young workers under 18  Wages and salaries (for regular and overtime hours)  Overtime  Working hours  Flexible working / work-life balance  Grievance mechanism for workers  Health & safety?

7 . Occupational Health and Safety Data Please provide the name and Krystian Szafraniec, OHS Officer contact details for your Health Telephone: (+48) 32 73-62-101 and Safety manager: Email: [email protected] Direct Contracted Direct Contracted employees workers employees workers Number of man- 322,566 0 Number of 0 0 hours worked this fatalities7: reporting period:

Budget spent on PLN 284,000 0 Number of 0 0 OHS in this period disabling injuries: (total amount and currency): OHS training 4 0 Number of lost 0 0 provided in this time incidents period in person- (including days: vehicular):

Number of lost 99 0 Number of cases 0 0 workdays resulting of occupational from incidents: disease: Number of sick 2,261 days 0 days: Accident causes (falling, heavy loads, struck by object, contact with energy source etc.):

 Failure by the injured person to exercise caution while handling the cross-bar of the hoist – 1 accident  Failure by the injured person to exercise caution while entering a locomotive – 1 accident  Structural and technical defect of the 1900 fat purification unit consisting in failure to neutralise sulfuric acid – 1 accident

No such events occurred.

Please summarise any emergency prevention and response training that has been provided for company personnel during the reporting period:

In 2014, the Company did not hold any emergency prevention and response training for its personnel.

Please summarise any emergency response exercises or drills that have been carried out during the reporting period:

In the reporting period, there was a siren sounding exercise on August 1st 2014 (commemoration of the anniversary of the Warsaw Uprising).

8. Stakeholder Engagement Please provide the name and contact details Grzegorz Cygan for your external relations or community Head of the Asset and Investment Department engagement manager: Telephone: (+48) 32 73-62-019 Mobile: (+48) 515-033-577 Email: [email protected] Please provide information on the implementation of the stakeholder engagement plan agreed with EBRD and summarise interaction with stakeholders during the reporting period, including:  meeting or other initiatives to engage with members of the public or public organisations during the reporting period  information provided to members of the public and other stakeholders during the reporting period relating to environmental, social or safety issues  coverage in the media  interaction with any environmental or other community groups Please describe any changes to the Stakeholder Engagement Plan agreed with EBRD:

Zakłady Azotowe Chorzów S.A. have no Stakeholder Engagement Plan.

There were no such issues.

9. Community Development Please summarise any social or community development / investment initiatives undertaken by the company during the reporting period, and any associated expenditure:

In 2014, Zakłady Azotowe Chorzów S.A. donated PLN 21,500.00 to organisations whose statutory mission includes charity, cultural, sporting, academic, educational and health protection activities.

GZNF FOSFORY Sp. z o.o.

1. Company Details Company name: GZNF FOSFORY Sp. z o.o. Company address: ul. Kujawska 2, 80-550 Gdańsk, Poland Country: Poland Town/Location: Gdańsk Company authorised representative: Waldemar Kolanowski I certify that the data contained in this report completely and accurately represents operations during this reporting period. Signature:

Title: Date: April 15th 2015 Contact Details: Telephone: (+48) 58 34-38-375 Mobile: 669 600 372 Email: [email protected]

Please provide key data on the Company performance, as well as production levels at each plant. For each of the 7 large plants please provide:

Fosfory Item YTD

[PLN '000] 2013 2014

Revenue 240,765 223,500 Profit/(loss) on sales -4,411 5,300 EBIT - 3,920 8,105 EBITDA 7,829 19,080 Net profit/(loss)* -1,567 5,508

Key performance indicators in terms of energy use, emissions, natural resource use, and carbon emission

Number of staff employed and any change in employment over past 3 years

As at Dec 31 2012 As at Dec 31 2013 As at Dec 31 2014 Number of direct employees: 274 271 267 Number of contracted workers: 45 0 0

Provide information on permits and status of compliance of each subsidiary with IPPC/IED

Reporting period: 2014

2. General

Is the project materially compliant Yes [ ] If No, please provide details of any material non- with all relevant EBRD Performance No [ ] compliances: Requirements (taking account of agreed action plans, exemptions or derogations)? Is the project materially compliant Yes [ ] If No, please provide details of any material with all applicable environmental and No [ ] non-compliances: social laws and regulations? Have there been any accidents or Yes [ ] If Yes, please describe, including details of incidents that have caused damage to No [ ] actions to repair and prevent reoccurrence: the environment, brought about injuries or fatalities, affected project labour or local communities, affected cultural property, or created liabilities for the company? Have there been any changes to Yes [ ] If yes, please describe: environment, social, labour or health No [ ] and safety laws or regulations that have materially affected the company? How many inspections did you receive Number: 1 Please provide details of these visits, including from the environmental authorities number and nature of any violations found: during the reporting period? No violations were found. How many inspections did you receive Number: 1 Please provide details of these visits, including from the health and safety authorities number and nature of any violations found: during the reporting period? How many inspections did you receive 1. Insufficient workplace lighting of some work from the labour authorities during the stations. reporting period? The irregularities were removed in 2014. Have these visits resulted in any Yes [ ] If Yes, please describe, including status of penalties, fines and/or corrective No [ ] implementing corrective actions to address any action plans? violations found: Has the Company engaged any Yes [ ] If Yes, please state for which types of work, and contractors for project-related work No [ ] how the company has monitored the compliance in the reporting period? of contractors with EBRD Performance Requirements and the Environmental and Social Action Plan:

Yes [ ] If Yes, please provide details, including how the Were any of the violations stated No [ ] Company is ensuring that corrective actions are above the responsibility of contractors? implemented by the contractor?

Have any operations been reduced, Yes [ ] If Yes, please describe: temporarily suspended or closed down No [ ] due to environmental, health, safety or labour reasons? Please describe any environment or social programmes, initiatives or sub-projects undertaken during the reporting period to improve the company's environmental or social performance and/or management systems:

There were no such programmes, initiatives or sub-projects.

Not applicable.

4. Environmental Monitoring Data for each of the key subsidiaries This information can be from the CSR report, or CSR report attached. GZNF FOSFORY Sp. z o.o. has no CSR policy in place. Please provide the name and contact details for your environmental manager:

Compliance Status4 Permitted value in line with: 1. integrated permit ŚR/Ś.IX.6619/5/05/06/07; DOOŚoa-7633/56/2/07/08/ar, Parameter2 Value3 Unit Comments5 effective until Jul 31 2014

2. integrated permit DROŚ-SO.7222.45.2013/2014.BA effective until Aug 1 2014 Wastewater Total 10,329,217 TCM per until Jul 31 2014 18,133,200 Spent cooling wastewater year m3/year water accounts generated for the bulk of from Aug 1 2014 26,532,000 wastewater m3/year generated. No exceedance of the permitted Sanitary values was found. wastewater and industrial wastewater from fertilizer production are redirected to fertilizer production units. Biochemical Oxygen Demand (BOD) - -

GZNF FOSFORY Sp. z o.o. does not None Chemical monitor BOD and COD. Oxygen Demand (COD) - -

Suspended average 20.4 mg/l 35 mg/l None solids max 33.3 No exceedance of the permitted single measurement or average annual values was found.

Phosphorus average 0.93 mg/l until Jul 31 2014 5 mg/l None max 1.59 No exceedance of the permitted single measurement or average annual values was found. Nitrates - - GZNF FOSFORY Sp. z o.o. does None not monitor nitrates. Heavy metals - - GZNF FOSFORY Sp. z o.o. does None not monitor heavy metals. Petroleum average 0.38 mg/l 15 mg/l None hydrocarbons max 1.30 No exceedance of the permitted single measurement or average annual values was found. Fluorides average 0.77 mg/l until Jul 31 2014 15 mg/l None max 1.20 No exceedance of the permitted single measurement or average annual values was found. pH average 7.7 - until Jul 31 2014 6.6-9.0 None min 6.8 No exceedance of the permitted max 8.2 single measurement or average annual values was found. Temperature average 13.6 °C 35°C None max 24.5 No exceedance of the permitted single measurement or average annual values was found. Air emissions

Type of Major point Mg/year substance source

SO2 Manufacture of 45.74 until Jul 31 2014 315.00 None fertilizers Mg/year from Aug 1 2014 157.40 Mg/year No exceedance of the permitted values was found. Manufacture of 3.56 until Jul 31 2014 200.00 None sulfuric acid Mg/year from Aug 1 2014 156.50 Mg/year No exceedance of the permitted values was found. Boiler house 0.00 No permitted values have been In 2014, the defined. boiler house was not operational. Nitrogen oxides Manufacture of 36.86 until Jul 31 2014 59.72 None (NOX) fertilizers Mg/year from Aug 1 2014 157.40 Mg/year No exceedance of the permitted values was found. Boiler house 1.20 No permitted values have been In 2014, the defined. boiler house was not operational.

Particulates Manufacture of 16.80 until Jul 31 2014 93.45 None fertilizers Mg/year from Aug 1 2014 35.15 Mg/year No exceedance of the permitted values was found. Boiler house 0.00 No permitted values have been In 2014, the defined boiler house was not operational. Packing facility 0.16 0,50 Mg/year None No exceedance of the permitted values was found.

CO2 Boiler house 0.00 No permitted values have been In 2014, the defined. boiler house was not operational. Fluorine Manufacture of 0.70 until Jul 31 2014 9.45 Mg/year None fertilizers from Aug 1 2014 6.16 Mg/year No exceedance of the permitted values was found. CO Manufacture of 3.60 until Jul 31 2014 5.49 Mg/year None fertilizers from Aug 1 2014 8.94 Mg/year No exceedance of the permitted values was found. Boiler house 0.00 No permitted values have been None defined. Sulfuric acid Manufacture of 4.40 until Jul 31 2014 10.00 None sulfuric acid Mg/year from Aug 1 2014 12.18 Mg/year No exceedance of the permitted values was found. Other Parameters

Noise Process 44-60 [dB] Daytim downtime e Production 47-61 [dB] Permitted noise levels for run residential areas. Noise emissions Night Process 40-50 [dB] from the premises of GZNF have None time downtime no impact on the neighbouring Production 50-58 [dB] residential areas. run

Solid waste Waste type Quantity of Waste code generated waste *hazardous waste [Mg] Rubber waste from 07 02 80 0.13 None production unit overhaul Welding wastes 12 01 13 0.026 None Wastes not otherwise 12 01 99 2.500 None specified (waste sand

remaining after vapour anceof the

blasting) found. Mineral-based non- 13 02 05* 2.380 None

chlorinated engine, gear permittedvalues was and lubricating oils Noexceed Plastic packaging 15 01 02 9.550 None

Wiping cloths, filters, 15 02 02* 0.920 None oil-soaked protective clothing Absorbents, filter 15 02 03 0.290 None materials, wiping cloths (filter cloths) Discarded equipment 16 02 13* 0.161 None containing hazardous components other than those mentioned in 16 02 09 to 16 02 12 (fluorescent lamps and computer monitors) Discarded equipment 16 02 14 0.755 None other than those mentioned in 16 02 09 to 16 02 13 (computers, copy machines, fax machines and other discarded electric devices) Components removed 16 02 16 0.066 None from discarded equipment other than those mentioned in 16 02 15 (electronic waste) Linings and refractories 16 11 06 5.800 None from non-metallurgical processes other than those mentioned in 16 11 05 Steel from discarded 17 04 05 92.246 None equipment Cables other than those 17 04 11 0.924 None mentioned in 17 04 10 Please provide details of the types and amounts of solid wastes generated by the project. Indicate where wastes are classified as hazardous. Indicate the final re-use, recycle or disposal method for each waste type.

5. Resource Usage and Product Output Measuremen Parameter Value Comments6 t Unit Fuels used 5,290 Mg Mazut is the fuel used Crude oil Natural gas Not applicable Hard coal Lignite Grid electricity 17,173 MWh None Heat purchased not applicable not applicable None Feedstocks and raw materials consumed sulfur 26,050 Mg None soda lye 829 Mg None ascorbic acid 2,507 Mg None sulfuric acid 11,380 Mg None phosphoric acid 14,853 Mg None (100%P2O5) phosphate rock 93,722 Mg None ammonium sulfate 23,518 Mg None

90 potassium chloride 38,820 Mg None magnesite 4,085 Mg None zinc sulfate 104 Mg None boron calcite 250 Mg None Product output manufacture of 184,340 Mg None fertilizers 6. Human Resources Management Please provide the name and contact details for your Violetta Wuczyńska Human Resources manager: Head of the HR and Organisational Department Telephone: (+48) 58 34-38-250 Mobile: 669-600-426 Email: [email protected] Recruited in this Terminated in this Total reporting period reporting period Number of direct 267 18 22 employees: Number of contracted 0 0 0 workers: Were there any collective Yes [ ] If Yes, please describe the redundancy plan, redundancies during the reporting No [X] including reasons for redundancies, number of period? workers involved, how they were selected, consultation undertaken, and measures to mitigate the effects of redundancy: Are any redundancies to the Yes [ ] If Yes, please describe the redundancy plan, including workforce planned for the next No [X] reasons for redundancies, number of workers year? involved, and selection and consultation process: Were there any changes in trade Yes [ ] If Yes, please provide details, and summarise union representation at Company No [X] engagement with trade unions during reporting facilities during the reporting period: period? Were there any other worker Yes [X] If Yes, please provide details and summarise representatives (e.g. in the No [ ] engagement with them during reporting period: absence of a trade union)? There is an Employee Council at the Company, established pursuant to the Act on the Provision of Information to and Consultations with Employees of April 7th 2006. Were there any changes in the Yes [ ] If Yes, please provide details: status of Collective Agreements? No [X] Have employees raised any Yes [ ] If Yes, please state how many, split by gender, grievances with the project during No [X] summarise the issues raised in grievances by male the reporting period? and female staff and explain how the Company has addressed them: Have employees raised any Yes [ ] If Yes, please state how many, split by gender, complaints about harassment or No [X] summarise the issues raised by male and female bullying during the reporting staff and explain how the Company has addressed period? them: Have there been any strikes or Yes [ ] If Yes, please summarise nature of, and reasons other collective disputes related No [X] for, disputes and explain how they were resolved: to labour and working conditions at the Company in the reporting period?

Have there been any court cases Yes [X] If Yes, please summarise the issues contested related to labour issues during the No [ ] and outcome: reporting period? Two court cases were pending in the reporting period − one court case concerning grounds for employment contract termination, and one on the manner of employment contract termination. In 2014, one of the cases was concluded. The Court dismissed the Employee's complaint in whole and upheld the Employer's position. Have there been any changes to Yes [ ] If Yes, please give details, including of any new the following policies or terms and No [X] initiatives: conditions during the reporting period in any of the following areas:  Trade union recognition  Collective Agreements  Non-discrimination and equal opportunities for all  Equal pay for equal work  Gender equality  Bullying and harassment, including sexual harassment  Employment of young workers under 18  Wages and salaries (for regular and overtime hours)  Overtime  Working hours  Flexible working / work-life balance  Grievance mechanism for workers  Health & safety?

7. Occupational Health and Safety Data Please provide the name and Michał Treska contact details for your Health OHS Officer and Safety manager: Telephone: (+48) 669-600-416 Email: [email protected] Direct Contracted Direct Contracted employees workers employees workers Number of man- Number of hours worked this 452,126 0 Fatalities7: 0 0 reporting period: Budget spent on Number of OHS in this period disabling injuries: PLN 360,000 0 0 0 (total amount and currency): OHS training Number of lost provided in this time incidents 142 0 2 0 period in person- (including days: vehicular):

Number of lost Number of cases workdays resulting 114 0 of occupational 0 0 from incidents: disease: Number of sick 26,992 0 days: Accident causes (falling, heavy loads, struck by object, contact with energy source etc.):

Caught by moving object, muscle strain due to excessive physical effort.

No fatal or major accidents occurred.

Please summarise any emergency prevention and response training that has been provided for company personnel during the reporting period:

In 2014, drills were carried out together with the Gdańsk Municipal Office Security and Emergency Management Division to assess the Company's emergency preparedness to industrial accidents and to test the methods of reporting emergencies to the Municipal Data Analysis and Emergency Centre.

Please summarise any emergency response exercises or drills that have been carried out during the reporting period:

In Q1 2014, drills were carried out together with the Gdańsk Municipal Office Security and Emergency Management Division to assess emergency preparedness and test emergency reporting systems.

8. Stakeholder Engagement Please provide the name and contact details for GZNF FOSFORY Sp. z o.o. does not employ an your external relations or community external relations or community engagement engagement manager: manager. Tasks of the external relations or community engagement manager are performed by relevant units (OHS and Environmental Protection). Please provide information on the implementation of the stakeholder engagement plan agreed with EBRD and summarise interaction with stakeholders during the reporting period, including:  meeting or other initiatives to engage with members of the public or public organisations during the reporting period  information provided to members of the public and other stakeholders during the reporting period relating to environmental, social or safety issues  coverage in the media  interaction with any environmental or other community groups Please describe any changes to the Stakeholder Engagement Plan agreed with EBRD:

GZNF FOSFORY Sp. z o.o. has no CSR policy in place but, given its production activities, follows CSR objectives in its operations.

No complaints were received.

9. Community Development Please summarise any social or community development / investment initiatives undertaken by the company during the reporting period, and any associated expenditure:

In May 2014, as part of its community outreach initiatives, the Company organised a presentation of an environmental review of the Wiślinka phosphogypsum landfill site at the Provincial Office of Gdańsk. A HELCOM delegate, the Chief Inspector for Environmental Protection and the representatives of the local authorities and environmental organisations were invited to participate in the event.

Grupa Azoty Jednostka Ratownictwa Chemicznego Sp. z o.o.

1. Company Details Company Name: Grupa Azoty Jednostka Ratownictwa Chemicznego Sp. z o.o. Company Address: ul. Kwiatkowskiego 8, 33-101 Tarnów, Poland Country: Poland Town/Location: Tarnów Company authorized representative: Artur Maciejczyk I certify that the data contained in this report completely and accurately represents operations during this reporting period. Signature:

Title: President of the Management Board Date: April 15th 2015 Contact Details: Telephone: (+48) 14 637-37-93 Email: [email protected]

Please provide key data on the Company performance, as well as production levels at each plant. For each of the 7 large plants please provide:

Grupa Azoty Jednostka Ratownictwa Chemicznego Sp. z o.o.

Item YTD

[PLN '000] 2013 2014

Revenue 35 ,583 35,173 Profit/(loss) on sales 64 1,119 EBIT 27 661 EBITDA 3,795 4,206 Net profit/(loss)* 739 772

Key performance indicators in terms of energy use, emissions, natural resource use, and carbon emission Number of staff employed and any change in employment over past 3 years

Number of staff employed and any change in employment over past 3 years

As at Dec 31 2012 As at Dec 31 2013 As at Dec 31 2014 Number of direct employees: 293 232 225 Number of contracted workers: - - -

Provide information on permits and status of compliance of each subsidiary with IPPC/IED

- Decision of the Governor of the Province of Opole of December 13th 2006, Ref. No. ŚR.III.AS-6610-1- 30/06, as amended, granting an integrated permit to operate installations manufacturing, with the use of chemical processes, organic chemistry products and semi-finished products, i.e. WAXES, MELAMINE RESIN, and VARIOUS ORGANIC PRODUCTS - Decision of the Governor of the Province of Kraków of April 27th 2007, Ref. No. ŚR.XI.AJ.6663-11-06, as amended, granting an integrated permit for the 'Czajki I' and 'Czajki II' landfill sites - Decision of the Governor of the Province of Kraków of April 25th 2007, Ref. No. ŚR:XI.AJ.6663-6-06, as amended, granting an integrated permit for the 'Za Rzeką Biała' landfill site - Decision of the Governor of the Province of Kraków of May 24th 2007, Ref. No. ŚR.XI.AJ.6663-10-06, as amended, granting an integrated permit for the 'AN II' landfill site - Decision of the Marshal of the Province of Kraków of August 5th 2013, Ref. No. SR-III- 1.7222.1.2013.AG, as amended, granting an integrated permit for a landfill for storing hazardous waste containing asbestos - sector AB-1-1

Reporting period: 2014

2. General Is the project materially compliant Yes [x] If No, please provide details of any material non- with all relevant EBRD Performance No [ ] compliances: Requirements (taking account of agreed action plans, exemptions or derogations)? Is the project materially compliant Yes [x] If No, please provide details of any material with all applicable environmental and No [ ] non-compliances: social laws and regulations? Have there been any accidents or Yes [ ] If Yes, please describe, including details of incidents that have caused damage to No [x] actions to repair and prevent reoccurrence: the environment, brought about injuries or fatalities, affected project labour or local communities, affected cultural property, or created liabilities for the company? Have there been any changes to Yes [x] If Yes, please describe: environment, social, labour or health No [ ] and safety laws or regulations that On September 5th 2014, the Act Amending the have materially affected the company? Environmental Protection Law and Certain Other Acts of July 11th 2014 came into force.

How many inspections did you receive Number: 2 Please provide details of these visits, including from the environmental authorities number and nature of any violations found: during the reporting period? In 2014, two inspections were carried out by the Provincial Inspectorate for Environmental Protection (one scheduled inspection and one triggered inspection). The triggered inspection was performed to address the odour nuisance caused by the ‘Za Rzeką Biała’ landfill site. The odour nuisance was associated with the municipal sludge (from the wastewater treatment plant in Nowy Targ) stored at the site. The company purchased special anti- odour formulations to neutralise the unpleasant smell and increased the amount of hydrated lime fed into sludge.

The second inspection comprised four audit cycles, which pertained to the performance of tasks set for Regional Municipal Waste Treatment Installations (RIPOKs), RIPOK substitute installations, reporting under the National Pollution Release and Transfer Register, and treatment of waste, including hazardous waste. No violations or irregularities were identified in the course of the inspection.

How many inspections did you receive Number: 2 Please provide details of these visits, including from the health and safety authorities number and nature of any violations found: during the reporting period? The National Sanitary Inspectorate carried out one inspection concerning working conditions. No post-inspection decisions were issued.

The National Fire Service carried out one inspection and issued two decisions concerning preparation of a fire safety procedure for the ‘Za Rzeką Biała’ landfill site, including its waste sorting plant. The decisions were implemented in a timely manner. How many inspections did you receive Number: 1 Please provide details of these visits, including from the labour authorities during the number and nature of any violations found: reporting period? The National Labour Inspectorate carried out one inspection and issued a ruling that an assessment be carried out to measure the concentration of asbestos dust at work stations during the dismantling of asbestos building materials. The ruling was implemented in a timely manner.

Have these visits resulted in any Yes [ ] If Yes, please describe, including status of penalties, fines and/or corrective No [X] implementing corrective actions to address any action plans? violations found: Has the Company engaged any Yes [ ] If Yes, please state for which types of work, and contractors for project-related work No [X] how the company has monitored the compliance in the reporting period? of contractors with EBRD Performance Requirements and the Environmental and Social Action Plan:

Yes [ ] If Yes, please provide details, including how the Were any of the violations stated No [X] Company is ensuring that corrective actions are above the responsibility of contractors? implemented by the contractor?

Have any operations been reduced, Yes [ ] If Yes, please describe: temporarily suspended or closed down No [X] due to environmental, health, safety or labour reasons? Please describe any environment or social programmes, initiatives or sub-projects undertaken during the reporting period to improve the company's environmental or social performance and/or management systems: - Please indicate the level of associated expenditure (capital expenditure and operating expenditure), and whether this relates to the requirements of the Environmental and Social Action Plan, or to any other initiative: -

4. Environmental Monitoring Data for each of the key subsidiaries The information required in this section can be extracted from a CSR report, or a full CSR report can be attached.

Please provide the name and Dagmara Dalida contact details for your Email:[email protected] environmental manager: Telephone: (+48) 698-930-317, (+48) 14 637-27-30, extension 26 Parameter2 Value3 Unit Compliance Status4 Comments5 Wastewater Decision of the Marshal of the Decision granting a Province of Kraków of December 18th water-law permit 2013, Ref. No. SR- for special use of IV.7322.1.32.2013.MG water – discharge of wastewater from the ‘Za Rzeką Biała’ landfill site (Syfon II) to the Biała river and discharge of stormwater from the ‘Za Rzeką Biała’ landfill site to Rów Chyszowski.

Total wastewater 40,155 m3 generated

Biochemical 113,237 kg Oxygen Demand (BOD) Chemical Oxygen 433,674 kg Demand (COD) Suspended solids 570,201 kg Phosphorus - - Nitrates 78.70 kg Heavy metals 0.441 kg [Other] Air Per each Mg/Nm3 emissions major point source

SO2 69.24 kg Nitrogen oxides - - (NOX) Particulates - -

CO2 - - Other Parameters Xylene 81.22 kg 1. Decision of the Governor of the Province Decision of of Kraków of December 22nd 2004, Ref. the Governor No. ŚR.XIV.JI.6610-5-04 – permitting of the release into the air of gases and dusts from Province of gas cylinder certification rooms. Kraków of December 22nd 2004, Ref. No. ŚR.XIV.JI.661 0-5-04 – expired on November 4th 2014. The 2. Decision of the Governor of the Province installation of Opole of December 13th 2006, Ref. No. was ŚR.III.AS-6610-1-30/06, as amended, registered. Methoxypropanol 14.58 kg granting an integrated permit to operate Methyl isobutyl 4.32 kg installations manufacturing, with the use ketone of chemical processes, organic chemistry Butanol 21.30 kg products and semi-finished products, i.e. Benzene 0.03 kg WAXES, MELAMINE RESIN, and VARIOUS Butan-1-ol 0.3 kg ORGANIC PRODUCTS, Aliphatic 25.5 kg hydrocarbons Carbon monoxide 866.145 kg Noise - - [Other] - - Solid waste Please provide details of the types and amounts of solid wastes generated by the project. Indicate where wastes are classified as hazardous. Indicate the final re-use, recycle or disposal method for each waste type.

Type and amount of solid waste generated

Weight of waste generated [Mg] Ite Waste code Waste type m Weight of waste Handling

Animal-tissue waste classified as material of specific and high risk, including waste from Transferred to a 1 02 02 81 1.2 manufacture of meat and third party bone fodders other than mentioned in 02 02 80 Transferred to a 2 06 13 03 Carbon black 146.1 third party Bottom ash, slag and boiler dust from co-incineration Transferred to a 3 10 01 15 42,849.2 other than those mentioned third party in 10 01 14 Other engine, gear and Transferred to a 4 13 02 08* 1,580 lubricating oils third party Paper and cardboard Transferred to a third 5 15 01 01 packaging 1.0 party

Transferred to a 6 15 01 02 Plastic packaging 2.4 third party Transferred to a 7 15 01 04 Metallic packaging 0.1 third party Discarded equipment other Transferred to a 8 16 02 14 than that mentioned in 16 4.7 third party 02 09 to 16 02 13 Laboratory chemicals (e.g. chemical reagents) consisting of or containing dangerous substances, Transferred to a 9 16 05 06* 0.007 including mixtures of third party laboratory chemicals

Wastes not otherwise 10 16 07 99 2.0 D9 specified Construction materials 11 17 06 05* 1,001.315 D5 containing asbestos Other wastes containing viable micro-organisms or their toxins, as well as other entities capable of Transferred to a 12 18 02 02* transferring their genetic 3.236 third party material, which are known or reasonably believed to cause disease in man or other living organisms Solidified wastes other than 13 19 03 07 77.7 D5 those mentioned in 19 03 06 Sludges from non-biological treatment of industrial 14 19 08 14 221.8 D5 wastewater other than those mentioned in 19 08 13 Transferred to a 15 19 12 01 Paper and cardboard 28.8 third party Transferred to a 16 19 12 02 Ferrous metal 70.5 third party Transferred to a 17 19 12 03 Non-ferrous metal 4.4 third party

Transferred to a 18 19 12 04 Plastic and rubber 70.0 third party

Transferred to a 19 19 12 05 Glass 18.3 third party Minerals (for example sand, 20 19 12 09 552.9 R5 stones) Other wastes (including mixtures of materials) from mechanical treatment of 21 19 12 12 wastes other than those 6,891.7 D5 mentioned in 19 12 11

5. Resource Usage and Product Output

Measurement Parameter Value Comments6 Unit Fuels used Natural gas 39 m3 Hard coal Mg Lignite Grid electricity 1,949,420 kWh Heat purchased 6,229 GJ

Feedstocks and raw materials consumed

not applicable kg

Product output Waxes + wosken 39.55 Mg

6. Human Resources Management Please provide the name and contact details for your Human Resources manager: Terminated in Recruited in this Total this reporting reporting period period

Number of direct employees: 225 8 15

Number of contracted - - - workers:

100

Were there any collective redundancies Yes [ ] If Yes, please describe the redundancy plan, during the reporting period? No [X] including reasons for redundancies, number of workers involved, how they were selected, consultation undertaken, and measures to mitigate the effects of redundancy: Are any redundancies to the workforce Yes [ ] If Yes, please describe the redundancy plan, planned for the next year? No [X] including reasons for redundancies, number of workers involved, and selection and consultation process: Were there any changes in trade union Yes [ ] If Yes, please provide details, and summarise representation at Company facilities No [X] engagement with trade unions during reporting during the reporting period? period: Were there any other worker Yes [ ] If Yes, please provide details and summarise representatives (e.g. in the absence of a No [X] engagement with them during reporting trade union)? period: Were there any changes in the status of Yes [ ] If Yes, please provide details: Collective Agreements? No [X] Have employees raised any grievances Yes [ ] If Yes, please state how many, split by with the project during the reporting No [X] gender, summarise the issues raised in period? grievances by male and female staff and explain how the Company has addressed them: Have employees raised any complaints Yes [ ] If Yes, please state how many, split by about harassment or bullying during the No [X] gender, summarise the issues raised by male reporting period? and female staff and explain how the Company has addressed them: Have there been any strikes or other Yes [ ] If Yes, please summarise nature of, and collective disputes related to labour and No [X] reasons for, disputes and explain how they working conditions at the Company in the were resolved: reporting period? Have there been any court cases related Yes [ ] If Yes, please summarise the issues to labour issues during the reporting No [X] contested and outcome: period?

101

Have there been any changes to the Yes [ ] If Yes, please give details, including of any new following policies or terms and conditions No [X] initiatives: during the reporting period in any of the following areas:  Trade union recognition  Collective Agreements  Non-discrimination and equal opportunities for all  Equal pay for equal work  Gender equality  Bullying and harassment, including sexual harassment  Employment of young workers under 18  Wages and salaries (for regular and overtime hours)  Overtime  Working hours  Flexible working / work-life balance  Grievance mechanism for workers  Health & safety?

7. Occupational Health and Safety Data Please provide the name and Jarosław Mirek contact details for your Health Email: [email protected] and Safety manager: Telephone: (+48) 728-463-197, (+48) 14 637-27-30, extension 43 Direct Contracted Direct Contracted employees workers employees workers Number of man- Number of hours worked this 368,844 fatalities7: 0 0 reporting period: Budget spent on Number of OHS in this period 411,617.27 disabling injuries: 0 0 (total amount and currency): OHS training Number of lost provided in this time incidents 119 0 1 1 period in person- (including days: vehicular): Number of lost Number of cases workdays resulting 44 0 of occupational 0 0 from incidents: disease: Number of sick days: 0 0

102

Accident causes (falling, heavy loads, struck by object, contact with energy source etc.):

Elements of the bicycle an employee was riding were insufficiently durable, which resulted in a fall.

Not applicable

Please summarise any emergency prevention and response training that has been provided for company personnel during the reporting period:

The training was carried out by staff managers as part of monthly scheduled job re-training sessions.

Please summarise any emergency response exercises or drills that have been carried out during the reporting period: On November 13th 2014 – simulation of electrical overload at the switchgear of the raw sewage pumping station, which could result in excessive sewage levels at the wet well, bringing production units to a halt. Measures taken: the overflow valve was opened and motor pumps were prepared to pump out the sewage. The measures taken were assessed as effective. On November 25th 2014 – simulation of sulfuric acid storage tank leakage. Description of hazards: risk of eye injury, skin irritation, and respiratory irritation. Measures taken: use of personal protective equipment; protective glasses, gloves, acid-proof clothing, gas masks. A protected zone was established near the tank. Assessment of effectiveness: protective measures taken in accordance with the sulfuric (VI) acid SDS were assessed as effective and appropriate.

8. Stakeholder Engagement Please provide the name and contact details for your external relations or community engagement manager: Please provide information on the implementation of the stakeholder engagement plan agreed with EBRD and summarise interaction with stakeholders during the reporting period, including:  meeting or other initiatives to engage with members of the public or public organisations during the reporting period  information provided to members of the public and other stakeholders during the reporting period relating to environmental, social or safety issues  coverage in the media  interaction with any environmental or other community groups

Please describe any changes to the Stakeholder Engagement Plan agreed with EBRD:

9. Community Development Please summarise any social or community development / investment initiatives undertaken by the company during the reporting period, and any associated expenditure: -

103

ENVIRONMENTAL AND SOCIAL ACTION PLAN

Table 0.1 Project Wisła, Grupa Azoty Poland Environmental, Social, Health and Safety (ESHS) Action Plan:

GRUPA AZOTY S.A.

No. Action Environmental risks, liabilities/benefits Legislative Requireme Action to be Target and Comment requirement/ nt/Resourc completed by evaluation Best practice es end of year criteria for successful implementation 0. General − Management, Environmental, and OHS issues – management at the corporate level at Grupa Azoty 0.1 Develop and implement a new EHS performance control, maintain Best practice, Internal Ongoing; Conduct The resulting management structure, minimum EHS risk at corporate level the Bank's resources planned to be operations in line new structure including EHS issues, as part of Performance completed by with Polish and EU will be the merger of the Azoty and Requirements the end of 2013 legal requirements presented in an Puławy Groups. (PRs) (1, 2, 3 and follow the appropriate and 10) Bank's PRs internal (particularly 1, 2, executive order 3 and 10) of the group management The Grupa Azoty Group is an international corporation integrating European chemical sector companies, with its own research, development, logistics and technical facilities. Grupa Azoty S.A. is the Parent of the Group, responsible for its strategy and corporate governance. In 2013, in connection with the inclusion of Puławy and Siarkopol assets (2014) in the Grupa Azoty Group, a new management model was prepared and implemented at the Group. The corporate governance at the Grupa Azoty Group is guaranteed by corporate management bodies of Grupa Azoty S.A.: the General Meeting of Shareholders, the Supervisory Board, and the Management Board. In line with the Grupa Azoty Group Strategy for 2013–2020, the management model's primary objective is for the Group to grow value by operating as a single corporate organism. In line with the model's assumptions, the functions offering most synergies are centralised and main business processes are managed at the Group level, with the identities of Grupa Azoty Group companies preserved. In July 2013, the Management Board of Grupa Azoty S.A. approved the assumptions for a new model of the Group’s management, built on a process- based division of powers and responsibilities between Grupa Azoty Management Board members. The aim of the new management model is to ensure implementation of the Grupa Azoty Group's Strategy, exploitation of synergies, and successful and effective execution of the decisions of the Grupa Azoty Management Board, while preserving the identities of the subsidiaries. The pillars of the new management framework are process leaders (individual members of the Grupa Azoty Management Board responsible for their respective processes), defined decision paths, decision-making transparency, and an incentive system, which ensure direct execution and communication of the developed strategy and strategic objectives. Members of the Grupa Azoty S.A. Management Board are process leaders with uniform decision-making powers to prepare organisational and HR 104 decisions (appointments and setting targets), which are then approved by the Grupa Azoty Management Board or the management boards of subsidiaries. President of the Management Board exercises overall supervision of the Group at the corporate level. In its performance of Group management functions and supervision of the business segments and support functions, the Grupa Azoty Management Board is supported by the Grupa Azoty Council, standing advisory and consultative committees, committees responsible for process and project management, as well as Corporate Departments and Offices, and decision-making positions at the Corporate Centre. In accordance with the management model implemented at the Grupa Azoty Group, main corporate business processes are managed at the Group level, while the organisational units of the Corporate Centre, including Corporate Departments and Offices of the Parent (Grupa Azoty S.A.) play a dual role and are responsible for managing business areas and processes inside the Parent as well as for performance of corporate functions, including through management of the main corporate business processes. The model adopted for the Grupa Azoty Group's structure and governance, known as cross-management, envisages an interdependent management system based on a vertical and horizontal organisational structure configuration, consisting of 21 main corporate business processes of the Group.

The functioning of the management model of the Grupa Azoty Management Board and of the subsidiaries’ management boards is further reinforced by the following principles adopted at the Group:  the Grupa Azoty Group management model provides for preserving the subsidiaries' identity, location and legal autonomy  the Grupa Azoty Group management model provides for centralising the functions offering most synergies, economies of scale, and specialisation  the Grupa Azoty Group management model is a 'joint operation model' relying on the following basic principles:  the Grupa Azoty Group operates like a single entity based on its four key companies  Members of the Grupa Azoty Management Board – the leaders of main corporate business processes – ensure joint operation to achieve strategic and financial goals of the Grupa Azoty Group by driving the effects of business processes at the Group  at the Grupa Azoty Group, opinions of the management boards of Group subsidiaries are taken into account when making decisions with a material effect on the subsidiaries' financial performance; if no agreement can be reached between a process leader and subsidiaries’ management boards, the decision is made by the Grupa Azoty Management Board  all activities and decisions at the Group are transparent to all parties involved

As part of the Organisational and Cultural Integration at the Grupa Azoty Group project, related to the implementation of the Grupa Azoty Group management model, the Group introduced Level 1 Main Corporate Business Processes Management Guidelines (defined exclusively at Grupa Azoty's Corporate Centre), which include in particular: 1. Strategic management and strategic planning 2. Strategic project management 3. M&A management 4. Business environment management 5. Corporate governance and corporate supervision 6. Compliance and audit 7. Communication 8. Integration and production coordination management 9. IT management 10. Risk management

105 as well as Level 2 Main Corporate Business Processes Management Guidelines (defined at the level of both Grupa Azoty and its subsidiaries), which include in particular:

1. Controlling, planning and budgeting 2. Preparation and execution of investments in property, plant and equipment 3. R&D and product portfolio management 4. Marketing and sales management 5. Customer service quality management 6. Repair and maintenance 7. Environmental and technical safety 8. Logistics and supply chain management 9. Strategic feedstocks procurement management 10. Financial management 11. HR management The Grupa Azoty Process Book was also implemented, stipulating general rules applicable to the Main Corporate Business Processes Management Guidelines. The Guidelines were consulted with relevant process administrators and approved by process leaders.

Below is presented a short description of the actions and initiatives related to the implemented management model, which were taken as part of the consolidation process with respect to a number of organisational, formal and legal issues.

Formal and legal issues:  adoption of a new Grupa Azoty Group management model, identification of 21 main business processes at the Group, and appointment of business process leaders and administrators for the entire Group  adoption and implementation of the amended Grupa Azoty Group Strategy for 2013–2020  adoption and implementation of the ICT Strategy of the Grupa Azoty Group for 2014–2016  new division of responsibilities among Management Board members − Resolution No. 467/IX/2014 and Resolution No. 639/IX/2014 (additional provisions)  adoption of new Rules of Procedure for the Management Board  adoption of Rules of Procedure for the Grupa Azoty Group Council and nomination of members of the management boards of the Parent and its subsidiaries to serve on the Council  adoption of the amended Grupa Azoty Group Corporate Ownership Policy and its implementation at subsidiaries  harmonisation of the Articles of Association of key subsidiaries – uniform powers of the governing bodies  adoption and implementation of harmonised Rules of the Annual Bonus Scheme for members of the management boards of subsidiaries  preparation of uniform rules of remuneration for members of the management boards of subsidiaries, along with a proposal to regulate non- compete practices at the Grupa Azoty Group  preparation and implementation of an MBO system for members of the Parent's Management Board and Incentive Scheme Rules for N-1 managers  preparation and implementation of the amended Grupa Azoty Group Accounting Policies  adoption of the Grupa Azoty Group Corporate Management Policy

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 preparation and implementation of the Instruction on Compliance with Disclosure Requirements at the Grupa Azoty Group  preparation and implementation of amended Grupa Azoty Group Information Policy  appointment of the Grupa Azoty Group Development Committee and definition of its powers and authority  update of internal regulations on Grupa Azoty Group rebranding  preparation and implementation of corporate governance principles for the Grupa Azoty Group's ICT operations  preparation and implementation of the Grupa Azoty Group Policy on Social and Sponsorship Activities and rules of its operation at the Group  preparation and implementation of the Grupa Azoty Group Charitable Giving Policy  preparation and implementation of the Grupa Azoty Group Scholarship Policy  preparation and implementation of Internal Audit Standards for the Grupa Azoty Group and Grupa Azoty S.A. Internal Audit Rules  preparation and implementation of current report review procedures for the Grupa Azoty Group  preparation and implementation of the Organisational Rules of Grupa Azoty S.A.  preparation and implementation of the Grupa Azoty Group Code of Ethical Conduct  preparation and implementation of the Code of Organisational Culture – The Grupa Azoty Group Organisational and Management System  preparation and implementation of the Financial Risk Management Policy for the Grupa Azoty Group  preparation and implementation of guidelines on submitting investment plans and preparing investment projects at Grupa Azoty Group companies  preparation and implementation of Main Corporate Business Processes Management Guidelines,  preparation and implementation of the Strategy of Technical Maintenance and Asset Life Cycle Management at the Grupa Azoty Group

Organisational issues:  appointment of the Grupa Azoty Group Council  appointment of business process leaders and administrators for the entire Group and appointment of corporate process managers for all 21 processes identified in the Group's management model  establishment of the Procurement Committee for the purpose of implementation of the strategy for key procurement areas at the Group  establishment of the Trade Committee to ensure harmonised management of the Agro segment across the Group  establishment of the Gas Procurement Committee for the Grupa Azoty Group and establishment of strategic, operational and technical teams across the Group to optimise gas procurement  resumption of work by the Ammonia Team at the Grupa Azoty Group  establishment of the Management Systems Integration Team at the Grupa Azoty Group  restructuring of the Corporate Fertilizer Sales Department and preparation and implementation of a new scope of powers of attorney for the Department's management  modification of the organisational structure of the Corporate Procurement and Logistics Department by establishing the Corporate Procurement Department and the Corporate Logistics Department  establishment of the Plastics Segment based on Tarnów and Puławy assets  establishment of a team to implement the Rail Transport Logistics Integration at the Grupa Azoty Group project  expansion of the IT Steering Committee to include representatives of Grupa Azoty Zakłady Azotowe Puławy S.A  establishment of the Fire Protection Team at the Grupa Azoty Group  establishment of project structures to implement the e-commerce project at the Grupa Azoty Group

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 establishment of project structures to implement the Operational Excellence Programme  establishment of project structures to draft the Operationalisation of Grupa Azoty Group's Strategy document  implementation of a new structure: Corporate Finance Department, Corporate Strategy and Development Department, Corporate Strategic Marketing Office and Corporate ICT Office  establishment of project structures to implement the Organisational and Cultural Integration at the Grupa Azoty Group project  establishment of ICT project teams for IT integration and development, ICT security, and telecommunications development  establishment of an Expert Committee and a Task Team on the development of a joint HR strategy for the Grupa Azoty Group

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0.2 As part of new EHS management Following completion of the merger, the EBRD PR 1 and Internal Ongoing Regular certification structure – maintain and further Company will maintain EHS management best practice resources of EHS management develop existing EHS systems and develop them throughout the systems management systems (such as Company structure, at both Group and ISO 14001, OHSAS 18001, etc.), subsidiary level. Goal: obtain ISO and by 2015 develop and 51001 certification implement an energy The Company will also address energy in 2015 management system for the efficiency at Group and subsidiary level, Group in line with ISO 51001. and implement an energy management system to reduce energy intensity The target is to achieve a 10% through BAT implementation and reduce energy intensity reduction by carbon emissions. 2016 compared with 2012, with a long-term goal of a 15% reduction. The key Grupa Azoty Group companies have implemented and maintain management systems based on specifications of international standards. In addition to quality, environmental, and OHS management systems, a food safety management system and laboratory management systems are in place at some of the companies. The companies covered by this report have implemented and maintain management systems and hold certificates issued by certification authorities, confirming compliance with the requirements of the standards listed below, in particular the specified EHS standards: Grupa Azoty S.A.  ISO 9001:2008 (valid until June 30th 2015)  ISO 14001:2004 (valid until June 14th 2017)  ISO PN-N 18001:2004 (valid until January 31st 2017)  BS OHSAS 18001:2007 (valid until January 31st 2017)  ISO 22000:2005 (valid until October 31st 2017)  Product Stewardship certificate (valid until May 24th 2017)

Grupa Azoty ZAK S.A.  ISO 9001:2008 (valid until February 13th 2017)  ISO 14001:2004 (valid until February 13th 2017)  ISO PN-N 18001:2004 (valid until February 13th 2017)  BS OHSAS 18001:2007 (valid until February 13th 2017)  Product Stewardship certificate (valid until May 24th 2017) 

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Grupa Azoty Zakłady Chemiczne POLICE S.A.  ISO 9001:2008 (valid until October 19th 2015)  ISO 14001:2004 (valid until October 19th 2015)  ISO PN-N 18001:2004 (valid until November 6th 2017)  BS OHSAS 18001:2007 (valid until January 17th 2018)  ISO 22000:2005 (valid until November 13th 2016)  ISO 50001:2011 (valid until January 12th 2017)  Product Stewardship certificate (valid until May 24th 2017)

Grupa Azoty Zakłady Azotowe PUŁAWY S.A.  ISO 9001:2008 (valid until March 6th 2016)  ISO 14001:2004 (valid until March 6th 2016)  ISO PN-N 18001:2004 (valid until March 6th 2016)  Product Stewardship certificate (valid until May 24th 2017)

Zakłady Azotowe Chorzów S.A.  ISO 9001:2008 (valid until December 1st 2017)  Food Safety Management System – valid for an indefinite period based on a certificate

GZNF Fosfory S.A.  ISO 9001:2008 (valid until September 30th 2017)

Grupa Azoty JRCh Sp. z o.o.  ISO 9001:2008 (valid until January 18th 2016)  ISO 14001:2004 (valid until January 18th 2016)  ISO PN-N 18001:2004 (valid until January 25th 2018)

In 2014, external audits were carried out at Grupa Azoty Group companies by the relevant certification authorities. In the reporting period, recertification audits were carried out in specified areas at some of the companies, including:  a food safety management system audit was successfully completed at Grupa Azoty S.A.;  recertification was obtained for Grupa Azoty Zakłady Chemiczne Police S.A.’s OHS management system. In 2014, the Management Systems Integration Team established at the Grupa Azoty Group continued its efforts to work out a common approach to regulating selected issues. The Team works with representatives of Grupa Azoty S.A., Grupa Azoty Zakłady Azotowe Kędzierzyn S.A., Grupa Azoty Zakłady Chemiczne Police S.A., Grupa Azoty Zakłady Azotowe Puławy S.A., Grupa Azoty Polskie Konsorcjum Chemiczne Sp. z o.o., Grupa Azoty ATT Polymers GmbH, Grupa Azoty Koltar Sp. z o.o., and Grupa Azoty KiZCHS Siarkopol S.A. During the reporting period, some of the Group companies satisfied the requirements of the Product Stewardship programme and, following an external audit completed with a positive result, received relevant certificates. The companies also implemented a basic framework for the enterprise risk management system. 110

0.3 As part of EHS management, the EHS performance control, maintain minimum Best practice, Internal Ongoing; planned Annual financial The result/new Company will develop its own EHS risk at corporate level Bank's PRs resources to be completed report with system procedure for assessing EHS by the end of a transparent presented in an provisions and contingent The system will then be audited and reviewed 2013 estimation of appropriate by an independent financial auditor. If liabilities to enable: potential internal necessary, the procedure will be updated to a) their initial assessment, and enable an appropriate assessment of extraordinary executive order b) annual verification of their environmental liabilities and contingent threat to the of the Group amount in accordance with liabilities. environment management IFRS. Technical, financial and legal departments of An initial assessment will be the Company will be involved in the process. made in 2013 in the consolidated Appropriate legal advice will need to be profit and loss account and in obtained.

updated financial statements The Consultant believes that the current accounting for the provisions and provision for soil and underground water contingent liabilities. clean-up is insufficient and should be increased (in particular for costs of mercury The system will be verified by clean-up in Tarnów, as well as demolition an independent qualified work). An initial assessment by Environ is that auditor as part of financial a provision of EUR 10m should be made in the audit. annual financial statements for costs related to the Wisła landfill site as well as for additional contingent liabilities related to mercury clean-up in Tarnów. However, this needs to be verified. Revaluation of provisions on the basis of information obtained from the technical services is performed at least once a year. A relevant procedure for review of provisions is being prepared.

As at the end of 2014: 1. Discounted value of the provision for demolition work was PLN 7,612,730 2. Discounted value of the provision for site restoration was 16,075,030 3. The provisions were presented in the financial statements for 2014, in Note 21 – Other Provisions under ‘Provision for environment protection, including site restoration’ and ‘Provision for demolition of mercury electrolysis plant’, and were verified by KPMG Audyt Sp. z o.o. in the course of the ongoing audit.

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0.4 The Company will maintain The technical basis for the recognition IFRS, EBRD, EU External Recognition of Summary in adequate provisions and of a provision or contingent liability will Directive consultant/ provisions and annual report contingent liabilities in the be subject to a full technical review by requirements auditor regular Information in annual financial statements for an appropriate independent technical revaluation of annual report reasonably anticipated costs. adviser in 2015. The scope of work will provisions and The provisions and contingent be agreed with the financial auditor. contingent liabilities will be audited and liabilities updated as part of a financial As part of a financial audit, an audit every three years to independent auditor will approve the ensure that adequate provisions. provisions are maintained and environmental, health and The purpose of the provisions is to: safety liabilities are correctly  ensure that all regulatory assessed, quantified and requirements, including periodic reflected in the financial orders or demands by statements. environmental authorities, are complied with The provisions need to be  ensure availability of a provision for independently reviewed by liabilities related to the closure and technical advisers every three post-closure of the landfill site, and years. The review, including a  ensure that all other legal technical opinion on the requirements or requirements provisions and contingent necessary to manage potential liabilities, will take place every environmental liabilities are three years, or in the event of complied with. any material change to accounting assumptions, or as required by accounting advisers.

Adequate provisions are maintained and verified by a financial auditor. In 2013–2014, no audit was carried out by technical advisers.

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0.5 In the event of a site closure or For any such site, the Company: IFRS Internal 2013 onwards Annual report for divestiture the Company will  will maintain a financial mechanism resources/ the shareholders undertake an environmental to implement a remediation plan in accounting/ assessment to identify its case of contamination, as well as a consultant environmental or social plan for closure or post-closure of the liabilities or commitments prior site, including a landfill site, or to the closure/divestiture. This restructuring or retrenchment, to the will include, if needed, extent that, in the event of a retrenchment plans to ensure divestiture, the liability and cost are compliance with the EBRD not placed on the buyer, in a manner Performance Requirement 2, which will ensure that any related and development and liabilities do not revert to the implementation of remediation Company, its shareholders or its plans based on a site-specific parent, and risk assessment to limit risk to  will agree on the financial mechanism the environment and humans with the parent prior to the closure or from contamination that is or divestiture. may be present at or originate from the site or result from the Company’s activities.

The Company does not plan to close or divest of a site in the near future. An environmental assessment is carried out when individual installations are decommissioned or disposed of. The financial statements are audited by an independent auditor. In 2014, the audit was carried out by KPMG, and an unqualified opinion was issued.

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0.6 Develop a new Corporate Social impact control, maintain Best practice, Internal Ongoing; planned Information in the Social Responsibility (CSR) minimum CSR in accordance with GRI Bank's PRs (PR resources to be completed annual report programme for the entire (Global Reporting Initiative) guidelines 1, 2, 4 and 10) in 2015 Links to CSR report Grupa Azoty Group. Initiative). A CSR programme has been developed by Puławy.

The programme will include definition of KPIs (Key Performance Indicators), such as energy use and carbon intensity, as well as LTI (Lost Time Incidents) and overall EHS performance.

On August 14th 2014, the Grupa Azoty Group's first integrated report was announced at a conference in Warsaw. It was for the first time that the Group's four strategic companies presented a common integrated report. The report had been prepared in accordance with the ‘core’ option of the latest GRI G4 Guidelines as the annual report for 2013. In order to define the scope of CSR reporting, an Expert Committee for CSR was appointed in 2013, composed of Grupa Azoty employees. Data collection and processing activities were performed by nearly one hundred employees representing all four companies. The working groups’ efforts were additionally supported by external experts (Deloitte, KPMG and GRI). During preparation of the report, key importance was attached to identifying the existing challenges and the expectations that stakeholders and other entities may have towards the Grupa Azoty Group, as well as to identifying all events which had a material effect on the Group in 2013. Out of several dozen entities comprising the Grupa Azoty Group, the report covers four key companies: Grupa Azoty S.A. of Tarnów (Parent), Grupa Azoty Zakłady Azotowe Puławy S.A., Grupa Azoty Zakłady Azotowe Kędzierzyn S.A., and Grupa Azoty Zakłady Chemiczne Police S.A. These are the largest Group companies in terms of revenue and headcount. Given the scale and nature of their business, they also have the greatest impact on the social and natural environment.

As the report contains detailed information important to the Group and its environment, analyses were carried out to identify aspects of low, medium and high relevance. The report only covers those issues which were deemed highly relevant. These relate to occupational health and safety, environmental protection, materials used, preventing discrimination and corruption, local communities, water and wastewater management, waste management, transport, and customer health and safety. The report also contains information on employee development, education support, marketing communication, and public policy. Identifying the Grupa Azoty Group's stakeholders, i.e. persons and entities which the Group affects and which can influence the Group, was an important step in preparing the report. Key stakeholders include the Group's employees, customers, local communities, research and development institutions, shareholders, public authorities, trade unions, local governments, the State Treasury, banks, and financial institutions.

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In addition to the report, four regional brochures were published for the companies in Tarnów, Kędzierzyn-Koźle, Puławy, and Police. Each company covered by the report presented its involvement in regional development efforts separately. The regional brochures included a description of initiatives aimed at supporting the development of education, sports and culture, as well as declarations for 2014 and an account of tasks performed in 2013 under the Responsible Care programme. The report was published in Polish and English, while the brochures were only available in Polish. The publications are available at:

–http://grupaazoty.com/doc/71773610/raport_grupa_azoty_za_2013_en.pdf –http://static.grupaazoty.com/files/748eb4a4/informator_grupa_azoty_sa_2013.pdf –http://static.grupaazoty.com/files/99d6ece7/informator_grupa_azoty_zak_2013.pdf –http://static.grupaazoty.com/files/77819374/informator_grupa_azoty_pulawy_2013.pdf –http://static.grupaazoty.com/files/a5ae2664/informator_grupa_azoty_police_2013.pdf

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0.7 Provide a report to the Bank on Provide an update on the road map for Legislative Internal BAT Assessment Information in the the status of implementation of maintaining compliance with the requirements resources in 2015 annual report on IED and EU ETS requirements by Industrial Emission Directive by all Grupa and best progress Grupa Azoty as part of annual Azoty Group production plants. practice reports to EBRD. In 2015, provide an A schedule for an independent audit of executive summary The report also includes IED BAT compliance will be developed in of the BAT information on the status of 2015, taking into account compliance Assessment and projects in progress and projects post-2016. ESAP planned to ensure compliance implementation to after 2016. Provide information in the annual report the Bank. on any material instances of non- An independent audit is to be compliance, accidents/incidents, or undertaken in 2015. investment needs as agreed with regulators.

On December 18th 2013, Grupa Azoty S.A. informed the Marshal of the Province of Kraków that it would like to take advantage of the derogation for 17,500 operating hours for emission sources at the company's CHP plant after January 1st 2016.

In 2014, Grupa Azoty S.A. began work on constructing a flue gas desulfurization unit and a flue gas denitration unit. The projects have been undertaken to ensure compliance of the Company's industrial combustion sources with the requirements laid down in the Minister of Environment's Regulation on Emission Standards for Installations of April 22nd 2011 and the Industrial Emissions Directive. The projects will involve upgrading the existing EC II CHP plant infrastructure and bringing the K5 boiler to compliance with the new, more restrictive NOx, SO2and dust emission requirements to be observed by industrial combustion sources.

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0.8 Ensure that Grupa Azoty has Ensure ongoing compliance with IPPC and Legal Internal Ongoing Provide update on valid IPPC/IED permits and is in IED requirements resources status in the annual compliance with Polish and EU report submitted requirements. to the Bank

Grupa Azoty S.A. currently operates pursuant to the following decisions:

 Decision of the Marshal of the Province of Kraków of June 20th 2012, Ref. No. SR-II-1.7222.1.1.2012, granting an integrated permit to Zakłady Azotowe w Tarnowie-Mościcach for the Hydrogen Unit, valid for an indefinite term (permit amended by Decision of December 3rd 2014, Ref. No. SR-II-1.7222.2.13.2014)  Decision of the Governor of the Province of Kraków of February 16th 2007, Ref. No. ŚR.XIV.JI.6663-6-05, granting an integrated permit to Zakłady Azotowe w Tarnowie-Mościcach for the Park Infrastruktura Complex, valid for an indefinite term (permit amended by Decision of July 29th 2011, Ref. No. SR-II-1.7222.1.3.2011, Decision of September 11th 2012, Ref. No. SR-II-1.7222.1.7.2012, and Decision of December 3rd 2014, Ref. No. SR- II-1.7222.2.17.2014)  Decision of the Governor of the Province of Kraków of April 17th 2007, Ref. No. ŚR.XI.JI.6663-3-06, granting an integrated permit to Zakłady Azotowe w Tarnowie - Mościcach for the POM Manufacturing and Compounding Complex, valid for an indefinite term (permit amended by Decision of July 29th 2011, Ref. No. SR-II-1.7222.1.1.2011 and Decision of December 3rd 2014, Ref. No. SR-II-1.7222.2.14.2014)  Decision of the Governor of the Province of Kraków of July 29th 2011, Ref. No. SW.II.1.AJ.7673-10/09, granting an integrated permit to Zakłady Azotowe w Tarnowie - Mościcach for the Technical Grade Nitric Acid Unit, Calcium Ammonium Nitrate and Ammonium Nitrate Unit, Nitrogen Fertilizer Granulation Unit, and Dolomite Milling Unit, valid for an indefinite term (permit amended by Decision of December 3rd 2014, Ref. No. SR-II-1.7222.2.15.2014)  Decision of the Governor of the Province of Kraków of March 22nd 2007, Ref. No. ŚR.XI.JI.6663-4-06, granting an integrated permit to Zakłady Azotowe w Tarnowie - Mościcach for the PTFE and Fluorine Compounds Unit, valid until December 31st 2016  Decision of the Marshal of the Province of Kraków of December 1st 2010, Ref. No. SW.II.1.AJ.7673-11/08, granting an integrated permit to Zakłady Azotowe w Tarnowie - Mościcach for the Caprolactam and Polyamide Units, valid until December 31st 2016 (permit amended by Decision of July 29th 2011, Ref. No. SR-II-1.7222.1.2.2011, Decision of February 16th 2012, Ref. No. SR-II-1.7222.1.2.2012, Decision of June 20th 2012, Ref. No. SR- II-1.7222.1.5.2012, Decision of October 21st 2013, Ref. No. SR-II-1.7222.1.3.2013. - [WKS], and Decision of December 3rd 2014, Ref. No. SR-II- 1.7222.2.16.2014 - [WKS], valid for an indefinite term)  Decision of the Marshal of the Province of Kraków of March 16th 2009, Ref. No. SW.II.1.JI.7673-6/08, amending the integrated permit granted to Zakłady Azotowe w Tarnowie - Mościcach for the Caprolactam and Polyamide Units (with respect to the Natural Polyamide Unit), valid until December 31st 2016  Decision of the Governor of the Province of Kraków of December 29th 2014, Ref. No. SR-II-1.7221.2.2014, granting permit for release of gases and dusts into the air to Grupa Azoty S.A., valid until December 28th 2024  Notification of the EC II CHP plant Water Treatment Unit and the Modified Plastics Facility of November 24th 2014

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 Decision of the Marshal of the Province of Kraków of September 13th 2012, Ref. No. SR-II-1.7225.1.2012 , granting permit for participation in the European Union Emissions Trading System to the CHP plant located on the premises of Zakłady Azotowe w Tarnowie – Mościcach, valid until September 12th 2022, amended by the Decision of December 20th 2012 (with an attachment thereto), Ref. No. SR-II-1.7225.4.2012, Decision of August 20th 2013 (with an attachment thereto), Ref. No. SR-II-1.7225.1.2013, Decision of December 23rd 2013, Ref. No. SR-II-1.7225.5.2013, and Decision of December 31st 2014, Ref. No. SR-II-1.7225.3.2014, complete with a monitoring plan, all issued by the Marshal of the Province of Kraków  Decision of the Marshal of the Province of Kraków of June 30th 2011, Ref. No. SR-II-1.7225.1.2.2011, granting permit for participation in the European Union Emissions Trading System with respect to greenhouse gas emissions from the units manufacturing nitric acid, ammonia and organic chemicals in bulk by way of cracking, reforming, oxidation or similar processes, with a daily production capacity exceeding 100 Mg, valid until June 29th 2021, amended by Decision of December 20th 2012 (with an attachment thereto), Ref. No. SR-II-1.7225.5.2012, Decision of December 20th 2013, Ref. No. SR-II-1.7225.2.2013, and Decision of December 30th 2014, Ref. No. SR-II-1.7225.4.2014, complete with a monitoring plan, all issued by the Marshal of the Province of Kraków  Decision of the Mayor of Tarnów of January 13th 2003, Ref. No. WGK.B-III.6210/16/02/03, granting permit for collective water supply and collective wastewater discharge, with an indefinite term  Decision of the Governor of the Province of Kraków of December 30th 2014, Ref. No. SR-IV-1.7322.1.28.2014.MG, granting permit for special use of water – abstraction of underground water from an intake located in Tarnów-Mościce, valid until December 31st 2034  Decision of the Governor of the Province of Kraków of December 29th 2005, Ref. No. ŚR.XIV.MGą.6811-31-05, granting permit for special use of water – abstraction of surface water from the Dunajec river, valid until December 31st 2025  Decision of the Governor of the Province of Kraków of June 9th 2011, Ref. No. SR-IV-1.7322.1.10.2011.MG, granting permit for discharge of wastewater containing substances particularly harmful to the water environment into the sewerage system of Zakład Oczyszczania Ścieków T.W. Sp. z o.o., valid until June 8th 2015  Decision of the Marshal of the Province of Kraków of November 21st 2013, Ref. No. SR-IV-1.7322.1.26.2013.MG, granting permit for discharge of wastewater to surface waters, valid until December 31st 2017  Decision Ref. No. SR-IV.1.7328.1.2013.MG, establishing a protected zone for water intakes  Decision Ref. No. OS.VI.5/6210/5270/2/95 – water-law permit for use and maintenance of the weir on the Dunajec river, valid until December 31st 2015  Decision of the Marshal of the Province of Kraków of December 22nd 2010, Ref. No. SW.III.1.AG.7650-12/10, granting permit to Zakłady Azotowe w Tarnowie - Mościcach S.A. for waste generation and recovery, valid until December 21st 2020 (amended by Decision of July 25th 2011, Ref. No. SR- III-1.7221.10.2011.AG)  Resolution of the Provincial Assembly of the Province of Kraków of October 25th 2010, No. LI/833/10, establishing Industrial Zone at ZAT S.A. (Official Journal of the Province of Kraków, No. 580/2010, item 4475)

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0.9 Develop and implement a The corporate (and site-specific) SEP will Best practice 2013 The SEP to be The NTS is to be corporate (Grupa Azoty) outline the Company's public EBRD PRs amended/updated a standalone Stakeholder Engagement Plan communication policy and commitments, every three years document in (SEP) in line with EBRD PR 10. including the grievance mechanism, or earlier, as accordance with indication of contact persons and needed the EU EIA For any new investment where indication of project information Directive, and an EIA is required by Polish availability Please provide a include Authorities, publish the Non- copy of the NTS information on Technical Summary (NTS) on (link to web site) the project, the Internet. in the annual impacts and report and as a mitigation Ensure that the EIA process is summary of any actions, undertaken in accordance with stakeholder presented in a EU and Polish requirements. engagement concise and associated with meaningful way the EIA process

In 2014, Grupa Azoty S.A. filed an application for the permit to release gases and dusts into the atmosphere, which prior to the issuance of the relevant permit was available for inspection at the Marshal Office of the Province of Kraków, while information on the pending administrative proceedings was published on Grupa Azoty S.A. information boards. The same procedure was followed in the case of applications for integrated permits for other units. The decision on environmental conditions was issued in accordance with the same procedure as above (e.g. a new fertilizer storage facility, upgrade of Cooling Unit 1). Information on safety at Grupa Azoty S.A. was published on the Company's website (http://tarnow.grupaazoty.com/pl/media/publikacje/23) and was also distributed among 122 interested businesses, schools, and institutions.

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0.10 Periodic ESHS audits (every Review status of operations Best practice As part of Report for the Report for the three years) to review the BAT Management Bank as part of progress in ESAP Assessment Board and EBRD 2015 report implementation, compliance in 2015 status and requirements to meet EU environmental standards.

The first report will be part of BAT Assessment.

In line with the Strategy, the company focuses on continuous adaptation of product quality and product range to customer requirements, continuous product improvement with the use of innovative technology, and reduction of production costs through modernisation of key production lines. To ensure lasting and effective customer relations and become the first-choice supplier, the company makes every effort to offer top quality products. The pursuit of strategic objectives is based on management systems consistent with the highest international standards. Also, pursuant to environmental protection regulations, the company holds valid integrated permits to operate all its production installations, which define the company's obligations under applicable laws. BAT Assessment for individual installations was made in the applications for integrated permits for the IPPC installations and will be made in the applications for integrated permits for new installations (e.g. the new granulation plant and polyamide unit). The analysis confirmed the compliance of Grupa Azoty S.A.'s existing units with BAT. For information on EHS audits, see Section 1.1.

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0.11 Develop contaminated land Compliance with the regulations and Legislative As soon as Soil or Regular management plan – this should remediation programmes requirement possible underground monitoring results include identification and water surveys or for each inventory of contaminated monitoring contaminated site lands, control measures and results remediation plan. Identification should cover areas around production plants

Grupa Azoty S.A. carried out surveys to find if there are contaminated areas within its premises. The surveys enabled the Company to make an inventory of contaminated areas. Mercury contamination was found at the decommissioned Mercury Electrolysis Unit – spreading of the contamination is monitored with the use of piezometers located in the contaminated area. No contamination of underground water was detected. The task will be continued as part of a baseline report concerning the Company's premises.

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1. Site Specific Management, Environmental, Health and Safety Management No. Action Environmental risks, liabilities/benefits Legislative Requiremen Action to be Target and Comments requirement/ t/Resources completed by evaluation Best practice end of year criteria for successful implementation 1.1 Introduce newly developed In order to maintain comprehensive Compliance Management 2013–2014 EHS Management Include each Environmental, Health and management systems within the with EBRD and time or System has a clear facility into Safety Management Systems at company it is necessary to implement PR 1 consultant structure defining existing EHS all Grupa Azoty production the newly developed EHS systems at all fees responsibilities management plants production plants. Maintaining efficient Compliance and formalised systems and comprehensive environmental and with leading operational social management systems is the best companies' procedures method of dynamic and continuous EHS (ZA Tarnów performance improvement at the and ZA company. Puławy) It allows the organisation to identify, standards avoid, minimise and mitigate potential EHS risks and impacts. The EHS Management System needs to include activities undertaken by contractors and other third parties (plant engineering and maintenance staff) as well as other plant staff. The system should include an EHS training programme for all employees and contractors.

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On a site-specific basis, for an individual plant, i.e. Grupa Azoty S.A.

Grupa Azoty S.A. pursues a Corporate Management Policy which guarantees that the Company's strategic goals are achieved in reliance on an integrated management system consistent with international standards. Grupa Azoty S.A. holds the following management system certificates related to the indicated area:  environmental management system certificate confirming the system's compliance with the ISO 14001:2004 standard (valid until June 14th 2017)  occupational health and safety management system certificate confirming the system's compliance with the PN-N 18001:2004 standard (valid until January 31st 2017)  occupational health and safety management system certificate confirming the system's compliance with the OHSAS 18001:2007 standard (valid until January 31st 2017)  the Responsible Care Framework Management System certificate confirming system’s compliance with the guidelines of the European Chemical Industry Council (valid until December 31st 2017)  food safety management system certificate confirming the system's compliance with the ISO 22000:2005 standard (valid until October 31st 2017)  Product Stewardship certificate (valid until May 24th 2017)

In 2014, recertification audits were carried out at Grupa Azoty S.A. for its food safety management system and environmental management system. The audits were completed with positive results and the certificates were extended.

The implemented systems are continuously improved. The Company adopts improvement programmes for a given year, covering, among other things, issues determining improvement in the EHS area. The manner of proceeding in this respect has been described in a management systems procedure that has been put in place. The Company has also implemented a procedure concerning identification of environmental aspects and selection of material aspects. Another procedure in place at the Company is Monitoring and Environmental Measurements. The following procedures apply with respect to OHS management: Managing Occupational Risk and Monitoring Occupational Health and Safety. These tools describe the rules of identifying, assessing and managing environmental and OHS issues with a view to minimising related risks. The procedures and other internal regulations adopted by the Company take into account the activities of the employees, contractors and other third parties, as well as their training. In addition, the companies engage in other pro-environmental campaigns and programmes, such as the International Bird Day, World Environment Day, International Day for the Preservation of the Ozone Layer, World Food Day, as well as contests – ‘Catch a Hare’ and ‘Catch a Hare – Junior’.

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------Please describe any environmental or social programmes, initiatives or sub-projects undertaken during the reporting period to improve the company's environmental or social performance and/or management systems: ------One of the most important programmes in which the Group companies participate is the Responsible Care programme. This initiative, which was first created in Canada in 1984, has for nearly three decades been supporting the building of such operational systems for chemical companies which reduce their environmental impact, enhance the safety of their manufacturing processes, and encompass preventive health management. The following Grupa Azoty Group companies: Grupa Azoty S.A., Grupa Azoty Zakłady Azotowe Kędzierzyn S.A., Grupa Azoty Zakłady Azotowe Puławy S.A., and Grupa Azoty Zakłady Chemiczne Police S.A., are actively engaged in the implementation of the programme, which is proof of their deep commitment to voluntary activities that foster sustainable development. Each year the companies submit declarations specifying the measures they will implement as part of the Responsible Care programme to improve their care for the environment, process safety, and protection of their employees' health. Grupa Azoty S.A., Grupa Azoty Zakłady Azotowe Kędzierzyn S.A., Grupa Azoty Zakłady Azotowe Puławy S.A., and Grupa Azoty Zakłady Chemiczne Police S.A., have been certified as Responsible Care organisations, implementing the programme in line with the rules and criteria included in the Programme guidelines approved by the Polish Chamber of Chemical Industry (PIPC). The Responsible Care Framework Management System Certificates are held by Grupa Azoty S.A., Grupa Azoty Zakłady Azotowe Kędzierzyn S.A., Grupa Azoty Zakłady Azotowe Puławy S.A., and Grupa Azoty Zakłady Chemiczne Police S.A. Also as part of the Programme, certain key indicators are registered, related to the protection of the environment and health, process safety (including safe distribution of chemicals) and work safety. The overriding idea of the Programme is that a business should be operated based on solid and reliable foundations enabling sustainable development, such as:  economic effectiveness  care for the environment (protection of natural resources, gradual mitigation of the environmental impact, efficient use of resources)  social equilibrium (improving the quality of life of local communities, engagement in popularisation of environmental education) Companies of the Grupa Azoty Group hold various competitions organised by the Secretarial Office of the Responsible Care Programme (see section above for details). For instance, the Chemical Sector Environmental Forum initiated as part of the Responsible Care programme is a major event for the domestic chemical sector companies. Every year, managers from chemical, distribution and recycling companies, academics, public administration representatives, as well as environmental protection experts, meet to discuss key issues. Important environmental protection and OHS issues are addressed during speeches and discussions, in the context of the Responsible Care initiative. Implementation of EU regulations into Polish environmental protection laws is a very important topic raised during the forum. The Chemical Sector Environmental Forum has a long-standing tradition and every year attracts many participants from the Polish chemical industry. At the 11th Chemical Sector Environmental Forum held in October 2014, Grupa Azoty S.A. received a statuette to mark 20 years of its involvement in the Responsible Care programme.

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1.2 Provide annual reports on EHS Aspects to be considered for the content Best practice/ Internal Annually, Expand existing Provide annual performance to the EBRD and of the annual report: compliance resources published in the shareholder reports on other shareholders.  general information on the project with EBRD PRs first quarter of reporting system Environmental, status within the Group the following Social, Health A general (brief) summary of  information on the overall year and Safety environmental and social environmental performance and (ESHS) issues to be provided on the compliance First report in performance to website.  summary of KPIs, including energy 2014 the EBRD and intensity and carbon emission for other For any new project that each subdivision shareholders requires an EIA under Polish  summary of any areas of material law, a Non-Technical non-compliance with A general Summary (NTS) will be environmental regulations, or (brief) summary provided on the Internet. material breach of the relevant of permit levels environmental  information on any material fines and social or other material penalties or issues to be pending court cases related to ESHS provided on the matters website  general information on ESAP implementation  summary of any regulatory changes related to environmental or social aspects

The EHS report was prepared in 2014. EHS information is included in the EBRD report and in the account of ESAP implementation, whose full version is available to other stakeholders on the Grupa Azoty website. In addition to publishing a report according to EBRD guidelines, Grupa Azoty also prepared an integrated report for 2013 in accordance with Global Reporting Initiative's G4 guidelines, which was then audited by external auditors. The GRI report is also available on the Company's website, and its hard copies have been sent to the Group's key stakeholders.

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1.3 Set up a procedure to process Early identification of problems and Best practice Operational 2013 Management Set up a complaints and grievances to public grievances to ensure timely and costs of reports on procedure to enable meaningful public implementation of solutions compliance information grievance process consultation and information with EBRD and office procedures complaints and process, in particular with PR 10 application grievances to regard to potential historical requirements enable environmental impact (e.g. meaningful Wiślinka landfill site in Gdańsk). public consultation The potential environmental and information and social risk is treated as a process significant issue of concern.

Grupa Azoty S.A. has prepared and implemented a procedure for handling complaints and grievances in the form of Internal Order No. 49/2010.

2. Actions required to achieve compliance with national EHS legal requirements and EU Environmental standards – Grupa Azoty S.A. No. Action Environmental risks, liabilities/benefits Legislative Requireme Action to be Target and Comments requirement/ nt/Resourc completed by evaluation Best practice es end of year criteria for successful implementation 2.1 Monitoring of environmental Record consumption of raw materials, Legislative Internal Ongoing/ad-hoc Statement of Achieve impacts of all operated fuels and energy, air emission, water obligation, best resources and periodic compliance in the environmental production installations. consumption, amounts of generated practice/intern reports annual report impacts in line wastes al resources with the design, Reference to BAT environmental requirements. Regularly evaluate operational efficiency guarantees and to minimise resource consumption and standards, waste generation identify room for improvement

Submit report to the Bank

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The Company records consumption of raw materials, fuels and energy, air emissions, water consumption, and amounts of generated waste. Data on the scale of environmental impact is entered into the Plant's Environmental Pollution Data Bank system (Zakładowy Bank Zanieczyszczeń Środowiska), used to prepare reports for the Marshal Office of Kraków and ad hoc reports for the Company's internal needs and for the needs of external institutions. Furthermore, reports are prepared for the National Database for Emissions of Greenhouse Gases and Other Substances, and the National Pollution Release and Transfer Register. Assessment of compliance with BAT requirements is performed as part of reviews of the integrated permits held by Grupa Azoty S.A.

2.2 Complete planned The Sulfuric Acid Unit is Best practice Internal Ongoing/ad-hoc Provide update on investments, such as the undergoing modernisation and the Legal resource and periodic BAT compliance as Sulfuric Acid Unit investment will help achieve BAT requirements s reports part of 2015 BAT modernisation, to ensure compliance /BAT Assessment compliance with BAT.

Upgrade of Sulfuric Acid Unit was a replacement and upgrade project involving delivery and installation of a new contactor system with heat exchangers and economisers, as well as a sulfur furnace with a waste heat boiler. The benefits of the project include improved environmental performance, increased steam output, and higher production capacity of the unit. The project was completed in October 2013. The total cost was PLN 64m.

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2.3 Complete the planned Reduce environmental impact in line Legislative Investment By 2016 Obtain an modernisation of energy with IED requirements (Annex V to IED). requirements, needs appropriate generation installations to The investment will include a deNox best permit allow post 2016 compliance. unit, an FGD unit, and a more efficient management dust collector, in connection with BAT practices, Provide update on Emission parameters to be requirements. Bank's PRs the investment achieved: project in the 3 200 mg/m for SO2 As part of Energy Audit and BAT annual report, 200 mg/m3for NOx Assessment, other carbon reduction selected 20 mg/m3for PM measures will be considered. technology and target emissions

Publish NTS for the investment project and provide a copy/web link to the Bank as part of the annual report

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In 2014, Grupa Azoty S.A. began work on constructing a flue gas desulfurization unit and a flue gas denitration unit. The projects have been undertaken to ensure compliance of the Company's industrial combustion sources with the requirements laid down in the Minister of Environment's Regulation on Emission Standards for Installations of April 22nd 2011 and the Industrial Emissions Directive. The projects will involve upgrading the existing CHP II infrastructure and bringing the K5 boiler to compliance with the new, more restrictive NOx, SO2 and dust emission requirements to be observed by industrial combustion sources.

As a result, the amount of pollutants released into the environment by the Company's combustion sources will be reduced, improving air quality. The flue gas desulfurization unit and flue gas denitration unit to be constructed at Grupa Azoty S.A. are co-financed with the funds of the Norwegian Financial Mechanism 2009– 2014. Completion of the projects is planned for 2016. The projects are planned for 2014–2016. The tender procedure for the projects was completed in 2014. Capital expenditure of PLN 746 thousand was incurred in 2014.

In accordance with Art. 33 of Directive 2010/75/EU of the European Parliament and the Council of November 24th 2010 on industrial emissions (integrated pollution prevention and control) (IED) and the Ministry of Environment's letter No. DOPndt-076-40/36875/13/MJ of September 17th 2013 concerning submission of a declaration with respect to derogation from the more restrictive emission standards introduced under the Directive, Grupa Azoty S.A. declared that it would like to take advantage of the derogation for 17,500 operating hours for emission sources at the company's CHP plant after January 1st 2016. The Company's declaration refers to the following emission sources comprising a fuel combustion installation: the K1 and K3 Boilers – emission source NE/EPK/1, and the K4 and K5 Boilers – emission source NE/EPK/2, which are to be shut down or upgraded to meet the standards applicable to new installations.

2.4. Complete the planned Reduce environmental impact in line Legislative Investment 2015 Obtain an modernisation of WWTP. with IED requirements; currently, the requirements, needs appropriate required quality parameters are best permit achieved only through wastewater management dilution. practices, Bank's PRs

Grupa Azoty S.A. uses two wastewater treatment plants. The Central Wastewater Treatment Plant treats inorganic industrial wastewater, and the Biological Wastewater Treatment Plant processes wastewater streams which contain organic substances. Currently, a project to build a new Biological Wastewater Treatment Plant at Grupa Azoty S.A. is being analysed. Its purpose would be to ensure continuity of treatment of the industrial wastewater generated at Grupa Azoty S.A. and reduce wastewater treatment costs. It is planned that the project would comprise the construction a new wastewater treatment plant to replace the existing Biological Wastewater Treatment Plant, built in the 1960s. Its implementation would ensure continuity of treatment of the industrial wastewater generated at Grupa Azoty S.A. and elimination of charges for discharge of wastewater into a sewage system (which would be avoided if the option envisaging discharge into the Biała river is chosen). The project is currently at the preparation stage. An initial feasibility study has been prepared, which is planned to be updated in 2015–2016. At the present stage of work, expenditure on the project implementation is estimated at about PLN 42m.

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2.5 Prepare a plan (including Reduce environmental impact in line Legislative Internal and 2015 Report on soil and budget) and conduct with IED requirements. This will enable requirements, external underground water investigations of soil and an assessment of baseline conditions and best resources status groundwater. identification of potential receptor management impacts. practices, Bank's PRs

A budget has been planned for 2015 to cover the costs of a baseline report. Bids are now being accepted to select the entity which will prepare the baseline report.

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GRUPA AZOTY ZAKŁADY AZOTOWE PUŁAWY S.A.

3. Actions required to achieve compliance with national EHS legal requirements and EU Environmental standards – Grupa Azoty Zakłady Azotowe Puławy S.A. No. Action Environmental risks, liabilities/benefits Legislative Requireme Action to be Target and Comments requirement/ nt/Resourc completed by evaluation Best practice es end of year criteria for successful implementation 3.1 Complete the planned Reduce environmental impact in line Legislative Investment 2015 Obtain an modernisation of energy with IED requirements requirements, needs appropriate generation installation to best permit for the ensure that the requirements As part of BAT Assessment and management new facility of Annex V to IED are met by assessment of compliance with energy practices, 2016. management systems, asses further Bank's PRs Update carbon reduction options information on Emission parameters to be the investment achieved: project in the 3 200 mg/m for SO2 annual report, 200 mg/m3for NOx selected 20 mg/m3for PM technology and target emissions

Publish NTS for the investment project and provide a copy/web link to the Bank as part of annual report

In mid-2013, a flue gas desulfurization unit was commissioned for use at the company’s CHP plant, where the gas is treated using the ammonia-based 3 wet method. The FGD unit permitted the company to bring down its emissions to the target levels of 200 mg of SO2 /Nm and below 20 mg of dust/Nm3. The first stage of the project Reduction of NOx Emissions from Boilers No. 4 and No. 5 at the Company CHP Plant was completed, resulting in a reduction of NOx emissions from boilers No. 4 and No. 5 to 350 mg/Nm3. In 2015, optimisation work will be performed using selective non-catalytic NOx reduction method (SNCR). The tests performed to date indicate that with this method NOx concentration in flue gas will be reduced to the target level of below 200 mg NOx/Nm3.

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3.2 Complete the planned Reduce environmental impact in line Legislative Investment 2015 Obtain an modernisation of WWTP. with IED requirements; currently, the requirements, needs Since there are appropriate required quality parameters are best no clear legal permit for the achieved only through wastewater management requirements new facility dilution** practices, (no BAT Bank's PRs conclusions), the completion has been postponed until 2019/2020

Grupa Azoty Zakłady Azotowe Puławy S.A. commenced work to improve the operation of its wastewater treatment system. By virtue of Resolution No. 18/2015 of January 20th 2015, the Management Board of Grupa Azoty Zakłady Azotowe Puławy S.A. appointed a task team for comprehensive industrial wastewater treatment at Grupa Azoty Zakłady Azotowe Puławy S.A. The team is responsible for coordinating work related to the process of adjusting waste water management at the plant to meet the future emission standards. Following the analysis of the above information, the team presented the proposed scope of work to be done in the next period. In accordance with the proposed outline, the schedule of work will be prepared in the first half of 2015, specifying the activities to be performed in order to meet the legal requirements concerning the quality of discharged wastewater by 2019. Potential construction of the Central Biological Wastewater Treatment Plant is scheduled for 2017–2019. ** In accordance with current environmental protection regulations, spent cooling water is classified as industrial wastewater, thus the Company does not dilute wastewater.

3.3 Prepare a plan (including Reduce environmental impact in line Legislative Internal and 2015 Report on soil Soil and budget) and conduct soil and with IED requirements. This will enable requirements, external and underground underground underground water an assessment of baseline conditions best resources water status water assessment and identification of potential receptor management assessment impacts (both on humans and the practices, required under natural environment) Bank's PRs IED

In order to comply with the requirements of the Industrial Emissions Directive with respect to preparation of a baseline report, the Company commissioned preparation of its baseline report on the contamination of soil and groundwater with hazardous substances. The baseline report covers all installations of Grupa Azoty Zakłady Azotowe Puławy S.A. In relation to the Company's project to construct a new unit for the production of solid fertilizers based on urea and ammonium sulfate (PULGRAN), in December 2014 an application for a relevant amendment to the company’s integrated permit was filed with the Marshal Office, together with the baseline report on the contamination of soil and groundwater, as required by law.

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3.4 Review data on nitrate This will facilitate proper assessment of Best practice Internal 2015 Submit report pollution of the forested areas potential environmental issues associated resources in the vicinity of the plant. with historical off-site nitrate Summarise this in a report contamination assessing historical, current and future impacts and determining whether the existing monitoring system is appropriate.

The testing and measuring activities of Grupa Azoty Zakłady Azotowe Puławy S.A. cover a wide range of environmental components. The company monitors:  air quality (pollutant concentrations) around the company  level of air pollution emissions  amount and type of generated waste  amount of surface and underground water abstracted  amount and quality of discharged wastewater  noise emission  condition of soil and vegetation.

The monitoring data shows that the company has been consistent in reducing all of its emissions over the decade or so, achieving a significant reduction in comparison to the 1980s levels. The reduction has been the most substantial in the case of dust from fuel combustion (down ca. 99%) and fertilizer dust with nitrate and other content (down ca. 89%). Nitrate content in underground waters (and thus in the soil) in the vicinity of the company's facilities has visibly decreased, as demonstrated by a substantial reduction in nitrate concentration in deep well No. 3, down to a level typical of the soil type.

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GRUPA AZOTY ZAKŁADY AZOTOWE KĘDZIERZYN S.A.

4. Actions required to achieve compliance with national EHS legal requirements and EU environmental standards – Zaklady Azotowe Kędzierzyn No. Action Environmental risks, liabilities/benefits Legislative Requireme Action to be Target and Comments requirement/ nt/Resourc completed by evaluation Best practice es end of year criteria for successful implementation 4.1 Complete the planned Reduce environmental impact in line Legislative Investment 2015/2016, with Obtain an construction of energy with IED requirements. requirements, needs derogations appropriate permit generation installations to best under IED for the new facility ensure compliance with IED The Company is considering new coal- management Update information post 2016. fired units to replace old units. Any practices, on the investment new units must comply with IED. Bank's PRs project in the Emission parameters to be annual report, achieved: selected technology 3 200 mg/m for SO2 and target 200 mg/m3for NOx emissions 20 mg/m3for PM Publish NTS for the investment project and provide a copy/web link to the Bank as part of the annual report

The project's deadline has not been reached. A number of stages have been scheduled for the project, including:  2014–2016: construction of a coal-fired boiler house with a capacity of 140 Mg/h, installation of a 25 MWe pass-out and condensing turbine, and construction of a control centre  2017–2021: construction of a second coal-fired boiler with a capacity of 140 Mg/h and a gas and oil-fired boiler house with a capacity of 2 x 70 mg/h The following elements were completed in 2013/2014:  feasibility study was carried out  Terms of Reference were prepared and the procedure to select a contractor was launched  Environmental Impact Assessment Report was prepared, and the company applied for and obtained the decision on environmental conditions  Construction plans and specifications were prepared, and the relevant decision was obtained  The company applied for a derogation under the IED with respect to its existing boilers  Site for the construction of the new CHP plant was prepared

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4.2 Complete the reclamation of Reduce environmental impact Legal Internal Ongoing the old waste landfill site and requirement/ and continue monitoring of waste best external storage conditions. management resources practice

In 2013, reclamation of sewage sludge landfill site at the Piskorzowiec Wastewater Treatment Plant was completed. In accordance with the approved schedule, the sewage sludge landfill site at the Central Mechanical and Biological Wastewater Treatment Plant will undergo reclamation in 2014–2016. In 2014, the company chose the contractor for this project and executed a relevant agreement. Work scheduled for 2015 includes:  removing the vegetation covering the landfill site  constructing temporary roads  preparing the system for the pump-out of water,  extraction and transport of ashes  preparation of appropriate layers, sowing, and cleaning

All landfill sites, including inactive and reclaimed sites, are monitored to ensure compliance with the permits held.

4.3 Prepare a plan and potential Reduce environmental impact Best Internal and Action plan and Prepare a plan and budget for removal of management external the potential potential budget for redundant/not operated practice resources budget to be removal of installations/buildings and decided in 2013 redundant/not structures. operated installations/buildin gs and structures

Grupa Azoty Zakłady Azotowe Kędzierzyn S.A. has a Restructuring Programme in place, approved by a Management Board resolution in April 2010. The Programme includes demolition of redundant buildings and structures in 2010–2018. The required funds are allocated in each year's budget.

The expenditure on demolition was approximately PLN 3.2m in 2014 (total demolition cost under actions 4.1 and 4.3).

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GRUPA AZOTY ZAKŁADY CHEMICZNE POLICE S.A.

5. Actions required to achieve compliance with national EHS legal requirements and EU environmental standards − Grupa Azoty Zakłady Chemiczne Police S.A.

No. Action Environmental risks, liabilities/benefits Legislative Requireme Action to be Target and Comment requirement/ nt/Resourc completed by evaluation Best practice es end of year criteria for successful implementation 5.1 Complete the planned Reduce environmental impact in line Legislative Investmen 2015/2016 Obtain an modernisation of energy with IED requirements requirements t needs appropriate generation installations to , best permit for the ensure compliance with Annex Asses further methods of reducing management new facility V to IED. energy intensity and carbon emissions practices, from energy installations as part of the Bank's PRs Update Emission parameters to be project and future BAT Assessments information on the achieved: investment 3 200 mg/m for SO2 project in the 200 mg/m3 for NOx annual report, 20 mg/m3 for PM selected technology and target emissions

Publish NTS for the investment project and provide a copy/web link to the Bank as part of the annual report

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Both OP-230 boilers have been revamped. Revitalisation of the OP-230-1 boiler (the second one) was completed in December 2014. The boilers were equipped with a denitration system, based on a modernised furnace with low-emission burners (primary method of denitration) and SNCR technology, involving injection of urea solution into flue gas from the boiler in order to reduce NOx (secondary method). Both boilers were equipped with flue gas recirculation system, which is an integral part of the denitration system. Currently, optimisation work is performed on both revitalised boilers. The optimised flue gas denitration unit will be fully commissioned at the end of 2015. A contract for the installation of MET-licensed ammonia-based flue gas desulfurization units on both boilers was signed with the contractor responsible for the front-end engineering design. Construction plans and specifications were prepared. In March 2015, a tender procedure will be initiated to select a contractor to perform construction work related to the flue gas treatment unit. The planned start-up of the flue gas treatment unit will be in the second half of 2016. Expenditure incurred in 2014 was PLN 61,186 thousand. 5.2 Monitor environmental impacts Reduce environmental impact of landfill Legislative Own Ongoing Summary of the of landfill sites and continue sites requirements, resources action plan in the planned technical expansion. best and annual report Develop long-term action to further management investments monitor and reduce impact of the landfill practices, site as part of BAT Assessment in 2015 Bank's PRs The environmental impact of the landfill sites is monitored in accordance with the decision of the Marshall of the Province of Szczecin, approving the iron sulfate landfill site operating instruction (Ref. No. WOŚ.II.7241.62.2.2013.BK, dated January 9th 2014), and the decision of the Marshall of the Province of Szczecin, approving the phosphogypsum landfill site operating instruction (Ref. No. WOŚ.II.7241.63.2.2013.BK, dated January 9th 2014). As part of the efforts aimed at reducing the iron sulfate landfill site's environmental impact, a network of deep wells was constructed at the site, with a pump system for decontamination of the aquifer. 5.3 Complete modernisation of Reduce environmental impact of the HFO Legislative Investment Conceptual Summary in the heating oil storage base – (heavy fuel oil) storage areas. The HFO requirements, needs design with annual report planning/budgeting stage storage must be modernised. best budget to be management confirmed by practices, the end of 2013 Bank's PRs and implemented by the end of 2016 The following work was completed: installation of tank bunds for F3 and F4 storage tanks (light fuel oil), installation of tank bunds for F5 and F6 storage tanks (heavy fuel oil), construction of stormwater drainage system, installation of I&C system for measuring oil levels in the tanks, as well as testing of tank truck earthing continuity during oil unloading. The task has been completed, expenditure incurred: PLN 1,355,850.

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5.4 Prepare a plan (including Reduce environmental impact in line with Legislative Internal and 2015 Report on soil and budget) and conduct soil and IED requirements requirements, external underground water underground water assessment. best resources status management practices, Bank's PRs The Company commissioned a baseline report for Grupa Azoty Zakłady Chemiczne Police S.A. to meet the new requirements introduced by the IED. On December 30th 2014, by virtue of a decision of the Marshall of the Province of Szczecin (Ref. No. WOŚ.II.7222.54.11.2014.MG), an amendment to the integrated permit was obtained, and the baseline report was approved. New obligations with regard to the monitoring of the condition of soil and groundwater, as set forth in the Act Amending the Environmental Protection Law and Some Other Acts of July 11st 2014 (Dz.U of 2014, item 1101), will be performed through an annual assessment of risk, based on the Assessment of Soil and Groundwater Contamination Risk approved by the Marshal Office.

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ZAKŁADY AZOTOWE CHORZÓW S.A.

6. Actions required to achieve compliance with national EHS legal requirements and EU environmental standards – Zakłady Azotowe Chorzów S.A. No. Action Environmental risks, liabilities/benefits Legislative Requireme Action to be Target and Comments requirement/ nt/Resourc completed by evaluation Best practice es end of year criteria for successful implementation 6.1 Prepare a plan (including Reduce environmental impact in line Legislative Internal 2015 Summary of budget) and conduct soil and with IED requirements requirements and conclusions in surface water assessment. , best external the 2016 annual management resources report practices, Bank's PRs

No action was undertaken in 2014. No expenditure was made in 2014.

6.2 Prepare a modernisation plan Reduce environmental impact in line Legislative Investment 2015 Provide update in for WWTP, prepare the design with IED requirements; currently, the requirements needs the annual report and implement the plan to required quality parameters are , best ensure compliance with IED. achieved only through wastewater management Obtain IED permit dilution practices, and ensure Bank's PRs compliance post 2016

Modernised wastewater treatment plant was placed in service on June 30th 2014. Total capital expenditure was PLN 2,536,210.

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GDAŃSKIE ZAKŁADY NAWOZÓW FOSFOROWYCH FOSFORY SP. Z O.O.

7. Actions required to achieve compliance with national EHS legal requirements and EU environmental standards − GZNF Fosfory No. Action Environmental risks, liabilities/benefits Legislative Requireme Action to be Target and Comment requirement/ nt/Resourc completed by end evaluation Best practice es of year criteria for successful implementation 7.1 Complete an environmental risk Reduce environmental impact in line with Legislative Internal and End of 2013 – Risk assessment assessment for underground IED requirements and Bank's PRs requirements, external prepare the and action plan water from the historic landfill best resources action plan and site. The landfill site is situated in a sensitive management preliminary Summary of both location. This could result in practices, budget in the annual Based on the risk assessment contamination of the deeper aquifers Bank's PRs, EU report and surveys, develop an action used by the Town. Environmental Contingent plan for long-term monitoring Liability liabilities/provisio and actions to reduce risk of A comprehensive risk assessment needs to Directive ns in annual contaminating underground be performed, and investments must financial water and aquifers. reduce impacts. General reclamation of statements until the site must be carried out and a landfill 2013 A budget for the actions needs site management system must be put in to be developed. place. Risk assessment by 2015

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1. The phosphogypsum landfill site in Wiślinka has been closed since December 31st 2009. The landfill site was closed pursuant to the Marshal of the Province of Gdańsk's decision, and the closing process was carried out in accordance with closure plans providing for technical reclamation and in accordance with a biological reclamation plan. The closure was supervised by authorised technical specialists and environmental protection services from the Marshal Office of the Province of Gdańsk. The closed landfill site is supervised by national environmental protection bodies and monitored in accordance with applicable regulations. 2. IED requirements do not apply to the phosphogypsum site in Wiślinka, which was closed pursuant to the Marshal of the Province of Gdańsk's decision. It has a closed site status, no new waste is delivered, and the site is subject to monitoring. 3. In April 2014, an environmental review of the closed phosphogypsum landfill site in Wiślinka was submitted at the Marshal Office and the Provincial Inspectorate for Environmental Protection (WIOŚ) of Gdańsk. According to the review, the impact of the landfill site on the environment is not significant. 4. Since August 2014, pursuant to the decision of August 1st 2014 (Ref. No. DROŚ-SO.722.45.2013/2014.BA) granting an integrated permit to the company, the effluents from the retention reservoir have been transferred to GZNF for recycling. 6,083 Mg of effluents were redirected by the end 3 of 2014, and thus approximately 92 Mg of phosphorus in P2O5equivalent was removed from the landfill site in 2014. Under the permit, 24,000 m of effluents may be transferred annually. The transfer and recycling of effluents containing phosphates will accelerate the process of reclaiming the site and restoring it to its original condition.

The company has set up a provision for reclamation and securing of the closed phosphogypsum site in Wiślinka. As at December 31st 2014, the provision was PLN 7,312,212.41. The maintenance, reclamation and monitoring of the landfill site is financed exclusively with the company's own funds.

7.2 Set up a procedure to process Identification of problems and public Best practice Operational 2013 Management complaints and grievances to complaints in order to implement and costs of reports on enable meaningful public solutions designed to improve the public compliance information application of the consultation and information perception of the Wiślinka landfill site with EBRD and office complaints process with regard to historical PR10 procedure and current EHS impact of the requirements Wiślinka landfill site in Gdańsk. Summary of systems in the annual report to the Bank

The company has a procedure in place for managing grievances and complaints in accordance with the ISO 9001 standard under the management system used by the company. Grievances, complaints or other comments can be submitted using a contact form available on the company's website. Any important events are reported by the company on its website. Over the past few years, the company received no grievances or complaints with respect to its production facilities in Gdańsk or the closed landfill site in Wiślinka.

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7.3 Prepare a plan (including Reduce environmental impact in line Legislative Internal 2015 Report on soil and budget) and conduct soil and with IED requirements requirements, and underground surface water assessment best external water status within the plot. management resources practices, Bank's PRs 1. The company has set up a provision for reclamation and securing of the closed phosphogypsum site in Wiślinka. As at December 31st 2014, the provision was PLN 7,312,212.41. The maintenance, reclamation and monitoring of the landfill site is financed exclusively with the company's own funds. 2. Surface water quality assessment The company carries out surface water quality testing in accordance with the Monitoring Plan for the closed phosphogypsum landfill site in Wiślinka, as approved by the Marshal of the Province of Gdańsk. Quality tests are also carried out by the Provincial Inspector for Environmental Protection. 3. Soil and vegetation quality evaluation in the phosphogypsum landfill site's surrounding area Soil and vegetation quality testing was carried out in the protection zone of the phosphogypsum landfill site in Wiślinka as well as on the agricultural land beyond that zone. The assessment was carried out by independent specialist bodies:  Agricultural University and Technological University of Wrocław  National Agrochemical Station in Gdańsk. According to the assessment, the landfill site poses no threat to the natural and agricultural environment of Wiślinka. 4. In 2014, the Company began removing the effluents from the retention reservoir of the closed phosphogypsum landfill site in Wiślinka. As a result, the impact of the landfill site on the natural environment has been reduced, and the process of reclamation has been accelerated.

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GRUPA AZOTY JRCH SP. Z O.O.

8. Actions required to achieve compliance with national EHS legal requirements and EU environmental standards − JRCh Jednostka Ratownictwa Chemicznego (Tarnów/Kędzierzyn) No. Action Environmental risks, liabilities/benefits Legislative Requireme Action to be Target and Comments requirement/ nt/Resourc completed by evaluation Best practice es end of year criteria for successful implementation 8.1 Monitor environmental Record consumption of raw materials, Legislative Internal Ongoing/ad-hoc Summary in the impacts of the operating fuels and energy, air emission, water obligation, resources and periodic annual report to production unit (Chemzak in consumption, and amounts of best reports the Bank Kędzierzyn) generated waste practice/inter nal resources Reference to BAT Regularly evaluate operational requirements efficiency to minimise resource consumption and waste generation

Consumption of raw materials, fuels and energy, air emissions, water consumption, and amount of waste generated are recorded. The process units are regularly evaluated for efficiency to minimise raw material consumption and waste generation. The operation of the process units does not violate environmental standards beyond the owner's premises. The environmental impact of the process units is monitored in accordance with the integrated permits.

Requirements:  Decision of the Governor of the Province of Opole of December 13th 2006 (Ref. No. ŚR.III.AS-6610-1-30/06). Integrated permit for installations manufacturing, with the use of chemical processes, organic chemistry products or semi-finished products, i.e. WAXES, MELAMINE RESIN, and VARIOUS ORGANIC PRODUCTS  Decision of the Marshal of the Province of Opole of December 20th 2012 (Ref. No. DOŚ.7222.64.2012.HM) on change of the manager of the company operating the above units from Chemzak Sp. z o.o. to GA JRCh Sp. z o.o.

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8.2 Monitor environmental impact Reduce environmental impact Legislative Own Ongoing Summary in the of non-hazardous waste requirements, resources annual report to landfill sites and preparation best and the Bank of a programme of their management investment closing and reclamation practices, s (Czajki, Za Rzeką Biała) Bank's PRs

Reduce environmental impact:  on air quality:  maintaining transport roads in clean condition  correct organisation of extraction work  sprinkling transport roads with water during periods of high temperatures to suppress dust  on noise pollution:  limiting transport vehicle traffic and machine operation at the landfill site to a necessary minimum  using equipment which is in good working order  carrying out extraction activities during daytime only  on underground water:  maintaining sludge supernatant pumping house in continuous working order  maintaining drains, culverts, perimeter trenches, and drainage systems in good condition

The environmental impact monitoring of the Czajki and Za Rzeką Biała landfill sites is carried out in accordance with the integrated permits. Requirements:  Decision of the Governor of the Province of Kraków of April 27th 2007 (Ref. No. ŚR.XI.AJ.6663-11-06), as amended, granting an integrated permit for the Czajki I and Czajki II landfill sites. The decision is valid for an indefinite term.  Decision of the Governor of the Province of Kraków of April 25th 2007 (Ref. No. ŚR.XI.AJ.6663-6-06), as amended, granting an integrated permit for the Za Rzeką Biała landfill site. The decision is valid for an indefinite term.

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8.3 Monitor environmental impact Reduce environmental impact Legislative Own Final closing Summary in the of the old hazardous waste requirements, resources and annual report to landfill site and prepare a Design document/(technical and best and implementatio the Bank programme for its reclamation financial) concept for the planned management investment n of the (AN2 landfill) reclamation with a future monitoring practices, s reclamation programme Bank's PRs programme: 2013/14

The environmental impact monitoring of the AN II landfill sites is carried out in accordance with the integrated permit. The machinery and equipment at the landfill site ensure its proper functioning. The solutions in place at the site enable secure waste storage, in full compliance with legally required emission and environmental standards.

Requirement:

Decision of the Governor of the Province of Kraków of May 24th 2007 (Ref. No. ŚR.XI.AJ.6663-10-06), as amended, granting an integrated permit for the AN II landfill site. The decision is valid for an indefinite term.

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