Non-Financial Statement 2020
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Non-financial statement of the Grupa Azoty Group for the 12 months ended December 31st 2020 1. Introduction 2. Management area 2.1. Structure of the Grupa Azoty Group 2.2. Business strategy and key financials 2.3. Key performance indicators 2.4. Sustainable development 2.5. List of certified management systems 2.6. Risk management 3. Environmental area, climate impact 3.1. Direct and indirect impact: feedstock and materials 3.2. Direct and indirect energy consumption within the organisation 3.3. Total water abstraction and information on recycled or reused water 3.4. Reduction of energy consumption 3.5. Biodiversity 3.6. Substances emitted to the atmosphere 3.7. Carbon footprint 3.8. Waste and waste management methods 3.9. Monetary value of fines and other sanctions 3.10. Mitigation of environmental impacts of products and services 4. Human resources 4.1. Diversity 4.2. Employment 4.3. Remuneration 4.4. Additional benefits 4.5. Occupational health and safety 4.6. Staff training 4.7. State Fund for Rehabilitation of the Disabled 4.8. Employee relations and freedom of association 5. Social and sponsorship policy 5.1. Rules governing community engagement at the Grupa Azoty Group 5.2. Supporting efforts to fight COVID-19 6. Ethics management (counteracting corruption and bribery, respect for human rights) 7. Product quality, production, storage and transport safety, and safety related to the impact of chemical substances and mixtures on humans 1. Introduction This non-financial statement for 2020 presents data and indicators for Grupa Azoty S.A. and the Group in which Grupa Azoty S.A. is the parent (“Grupa Azoty”, the “Grupa Azoty Group”, and the “Group”). In accordance with the Accounting Act, Grupa Azoty S.A. is subject to regulatory obligations at the level of: 1. The Grupa Azoty Group, 2. The Grupa Azoty Zakłady Azotowe Puławy S.A. Group (the “Grupa Azoty Puławy Group”, the “Puławy Group”) and the parent Grupa Azoty Zakłady Azotowe Puławy S.A. (“Grupa Azoty Puławy”), 3. The Grupa Azoty Zakłady Chemiczne Police S.A. Group (the “Grupa Azoty Police Group”, the “Police Group”) and the parent Grupa Azoty Zakłady Chemiczne Police S.A. (“Grupa Azoty Police”). The qualitative and quantitative data is presented according to this breakdown. This non-financial statement has been prepared in accordance with the guidelines contained in Directives of the Eu- ropean Parliament and of the Council (2014/95/EU and 2013/34/EU) and in the Accounting Act, concerning disclosure of non-financial information. 2. Management area The management process at the Grupa Azoty Group is carried out in a responsible manner with a view to achieving sustainable development, materialising in an in- tegrated approach to social, economic and environmental aspects. Create value for Grupa Azoty and the national economy by delivering safe, useful Mission and innovation-driven chemical products Deploy state-of-the-art, comprehensive chemical industry solutions that meet Vision stakeholder expectations Key products and services The Grupa Azoty Group’s business is divided into the following five segments: 1. Agro Fertilizers This is the key area of the Grupa Azoty Group’s business. The segment manufactures mineral nitro- gen, nitrogen-sulfur, nitrogen-phosphorus, compound, and speciality fertilizers. This group also in- cludes ammonia and other nitrogen-based intermediate products. The segment’s manufacturing activities are conducted by the companies based in Tarnów, Puławy, Kędzierzyn, Police, Gdańsk, Chorzów, as well as Germany and Spain. The Grupa Azoty Group is Poland’s largest and European Union’s second largest manufacturer of mineral fertilizers. 2. Plastics The Plastics segment accounts for the second largest share in the Grupa Azoty Group’s total sales. Its product portfolio includes: Tarnamid®, Alphalon® (trade names of polyamide 6), Tarnoform® (trade name of polyacetal (POM)), as well as polyamide 6- and polyacetal-based modified plastics. The Group is the leading manufacturer of PA6 in Poland and the third largest producer of this polyamide in the European Union. The principal investment project among the Grupa Azoty Group’s ongoing projects – a new polypropylene production unit being built as part of the Polimery Police strategic investment project – will be presented in this segment. 3. Chemicals This segment comprises the following business segments: OXO products (OXO alcohols, plasticisers), pigments (titanium white), melamine, as well as smaller product groups, perceived by the market as less homogenous: technical grade urea, sulfur, catalysts and others. They are manufactured in Kędzierzyn, Puławy, Police, and Grzybów. The Group is a major manufacturer of melamine globally and the third largest in the European Union. As regards OXO products, the Group is the only manu- facturer of OXO alcohols in Poland and the fifth largest in the European Union. The Group is Poland’s only producer of titanium white. 4. Energy Grupa Azoty Group’s main production plants operate their own electricity and heat generating units. Given that Grupa Azoty Group companies operate their own energy distribution networks and captive generation has a major role in the base chemicals business, the Grupa Azoty Group identi- fies Energy as a separate auxiliary internal segment. 5. Other Activities The Other Activities segment comprises laboratory services, rentals, maintenance and other ser- vices (automation, design, repairs, etc.), logistics, infrastructure management, environmental pro- tection, and research. Relevant geographical markets: Most of the Grupa Azoty Group’s products are sold in Poland, with exports going mainly to EU member states, in particular Germany, the United Kingdom, the Czech Republic, Italy, France, and Belgium. Fertilizers and chemicals (urea and OXO alcohols) are the key product groups sold in the domestic market. Products exported to EU countries include mainly fertilizers (such as Saletrosan® 26, Ammonium Sulfate AS21, Salmag®, Pulan®, RSM®, Polifoska®), plastics and OXO alcohols, whereas products exported to Asia – polyamide PA-6. Fertilizers manufactured by the Grupa Azoty Group are also sold in South American markets. 2.1. Structure of the Grupa Azoty Group Over the last few years, Grupa Azoty S.A. successfully consolidated Poland’s largest chemical plants with an aim of harnessing their combined potential to deliver a common strategy, and acquired the COMPO EXPERT Group, a global manufacturer of speciality fertilizers selling its products to nearly a hundred countries, thus strengthening the Group’s position among Europe’s largest chemical companies. The Grupa Azoty Group includes Grupa Azoty Polyolefins S.A., owner of the Polimery Police project, one of the largest investment projects in the chemical industry expected to make Poland one of Europe’s leading polypropylene producers. The project will result in the construction of a petrochemical complex centred around: a PDH propylene unit (with an annual production capacity of 400,000 tonnes), a polypropylene unit (with an annual production capacity of 437,000 tonnes) with a logistics base. The chemical complex will also feature a handling and storage terminal (gas port) and auxiliary systems. The Grupa Azoty Group includes more than 50 businesses which distribute their products mainly to the European Union, South America, Asia, Africa and North America. A vast majority of our produc- tion capacities are located in Poland, with some production plants in Germany and Spain. Three group companies – Grupa Azoty S.A., Grupa Azoty Puławy and Grupa Azoty Police − are listed on the Warsaw Stock Exchange. The parent – Grupa Azoty S.A. www.tarnow.grupaazoty.com Grupa Azoty S.A. is engaged in manufacturing and trading in engineering plastics, engineering plas- tics intermediates and nitrogen fertilizers, as well as related services. The Company operates its own research facilities. It concentrates both on research into new products and technologies, and on advancing existing products. Grupa Azoty S.A.’s registered office is located in Tarnów. Grupa Azoty S.A. has been listed on the Warsaw Stock Exchange since June 30th 2008 and is included in the WIG, WIG30, mWIG 40, WIG-Poland, WIG-CHEMIA and WIG.MS-PET indices. It is also repre- sented in some foreign indices. The company is subject to non-financial reporting requirements under the Accounting Act of Sep- tember 29th 1994, and its non-financial information is presented in this statement. As at December 31st 2020, the Grupa Azoty Group comprised Grupa Azoty S.A. as the parent, and its subsidiaries and associates: Diagram 1. Structure of the Grupa Azoty Group Source: Company data. Grupa Azoty S.A.’s direct subsidiaries: Grupa Azoty Zakłady Azotowe Puławy Spółka Akcyjna (“Grupa Azoty Puławy”) www.pulawy.grupaazoty.com The company is the largest supplier of nitrogen fertilizers for Polish farmers and the second largest player on the EU market of granular urea, ammonium nitrate, ammonium sulfate, and urea-ammo- nium nitrate solution (UAN). The Puławy plants are Poland’s only and Europe’s third largest manu- facturer of melamine, Poland’s only producer of hydrogen peroxide and a major producer of capro- lactam. Grupa Azoty Puławy has been listed on the Warsaw Stock Exchange since November 2005. The company is subject to non-financial reporting requirements under the Accounting Act of Sep- tember 29th 1994, and its non-financial information is presented in this statement. Grupa Azoty Zakłady Chemiczne Police Spółka Akcyjna (“Grupa Azoty Police”) www.zchpolice.grupaazoty.com Grupa Azoty Police is a major manufacturer of compound and nitrogen fertilizers, as well as pig- ments (titanium white). Grupa Azoty Zakłady Chemiczne Police S.A. has been listed on the WSE since September 2005. Grupa Azoty Police is subject to non-financial reporting requirements under the Accounting Act of September 29th 1994, and its non-financial information is presented in this statement. Grupa Azoty Zakłady Azotowe Kędzierzyn Spółka Akcyjna (“Grupa Azoty Kędzierzyn”, “Grupa Azoty ZAK”) www.zak.grupaazoty.com The company’s two business pillars are nitrogen fertilizers and OXO products (OXO alcohols and plasticizers used in the production of plastics).