Annual Environmental & Social Report 1. Company Details Company Name: Grupa Azoty S.A. Company Address: Ul. Kwiatkowskiego 8
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Annual Environmental & Social Report 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: Wojciech Wardacki I certify that the data contained in this report completely and accurately represents operations during this reporting period. Signature: Wojciech Wardacki Title: President of the Management Board Date: April 26th 2017 [stamp reading: “PRESIDENT OF THE MANAGEMENT BOARD Wojciech Wardacki” and signature] Contact Details: Telephone: 14 637-32-03 Mobile: E-mail: [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: Item CUMULATIVE [PLN '000] 2015* 2016 restated Revenue 1,768,984 1,552,332 Profit/(loss) on sales 32,437 -7,521 EBIT 4,355 -29,179 EBITDA 95,469 64,858 Net profit/(loss) 209,055 224,775 * In the reporting period, the presentation of financial statements was changed to improve the presentation of information on the effect of certain transaction types on the Company's assets and financial position. The comparative data has been appropriately restated. Key performance indicators in terms of energy use, emissions, natural resource use, and carbon emission See Sections 4 and 5. Number of staff employed and any change in employment over past 3 years As at Dec 31 As at Dec 31 As at Dec 31 2016 2014 2015 Number of direct employees: 2,088 2,077 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 dated June 20th 2012, Ref. No. SR-II- 1.7222.1.1.2012, granting an integrated (IPPC) 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 dated February 16th 2007, Ref. No. ŚR.XIV.JI.6663-6-05, granting an integrated (IPPC) 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, Decision of December 3rd 2014, Ref. No. SR-II-1.7222.2.17.2014 and Decision of December 31st 2015, Ref. No. SR-II-1.7222.2.1.2015); Decision of the Governor of the Province of Kraków dated April 17th 2007, Ref. No. ŚR.XI.JI.6663- 3-06, granting an integrated (IPPC) 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 dated July 29th 2011, Ref. No. SW.II.1.AJ.7673-10/09, granting an integrated (IPPC) 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 and Decision of August 16th 2016 Ref. No. SR-II.7222.2.8.2016); Decision of the Governor of the Province of Kraków dated March 22nd 2007, Ref. No. ŚR.XI.JI.6663- 4-06, granting an integrated (IPPC) permit to Zakłady Azotowe w Tarnowie - Mościcach for the PTFE and Fluorine Compounds Unit, valid until December 31st 2016; Decision of the Governor of the Province of Kraków dated July 17th 2007, Ref. No. ŚR.XIV.JI.6663- 2-06, granting an integrated permit to Zakłady Azotowe w Tarnowie - Mościcach for the Caprolactam and Polyamide Manufacturing Units, valid until December 31st 2016, amended entirely by Decision of the Marshal of the Province of Kraków dated December 1st 2010, Ref. No. SW.II.1.AJ.7673-11/08 (part I, part II, and part III) (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 dated March 16th 2009, Ref. No. SW.II.1.JI.7673- 6/08, amending the integrated (IPPC) permit granted to Zakłady Azotowe w Tarnowie - Mościcach for the Caprolactam and Polyamide Manufacturing Units (with respect to the Natural Polyamide Unit), valid until December 31st 2016; Decision of the Governor of the Province of Kraków dated December 29th 2014, Ref. No. SR-II- 1.7221.2.2014, granting permit for the release of gases and dusts into the air to Grupa Azoty S.A., valid until December 28th 2024; Notification of Grupa Azoty S.A.'s EC II CHP Plant Water Treatment Unit and Modified Plastics Facility of November 24th 2014 to the Marshal of the Province of Kraków, Ref. No. TB/JK/1034/2014; Decision of the Marshal of the Province of Kraków dated September 13th 2012, Ref. No. SR-II- 1.7225.1.2012, granting permission to participate in the European Union Emissions Trading Scheme to the CHP Plant located on the premises of Zakłady Azotowe w Tarnowie – Mościcach, valid until September 12th 2022, amended by Decision of December 20th 2012 (with an appendix thereto), Ref. No. SR-II-1.7225.4.2012, Decision of August 20th 2013 (with an appendix 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, together with a Monitoring Plan, and Decision of July 16th 2015, Ref. No. SR-II-1.7225.1.2.2015, together with a Monitoring Plan, all issued by the Marshal of the Province of Kraków; Decision of the Marshal of the Province of Kraków dated June 30th 2011, Ref. No. SR-II- 1.7225.1.2.2011, granting permission to participate in the European Union Emissions Trading Scheme 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 appendix 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, together 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 dated 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 point located in Tarnów-Mościce, valid until December 31st 2034; Decision of the Governor of the Province of Kraków dated 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 Marshal of the Province of Kraków dated May 27th 2015, Ref. No. SR-IV- 1.7322.1.6.2015.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 2019; Decision of the Marshal of the Province of Kraków dated 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 of the Marshal of the Province of Kraków dated July 1st 2015, Ref. No. SR-IV- 1.7222.1.2015, granting an integrated (IPPC) permit to Grupa Azoty S.A. for the Central Wastewater Treatment Plant, with an indefinite term; Decision Ref. No. SR-IV.1.7328.1.2013.MG, establishing a protected zone for water intake points; Decision of the Marshal of the Province of Kraków dated January 20th 2016, Ref. No. SR-III- 1.7244.4.9.2015.AG, permitting Grupa Azoty S.A. to collect and process waste, valid until January 19th 2026; 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: 2016 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 Conclusions are described in the documentation labour or local communities, affected of accidents and incidents, in compliance with cultural property, or created the applicable law.