Corporate Social Responsibility Report
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CSR REPORT 2012 * CORPORATE SOCIAL RESPONSIBILITY REPORT KGHM POLSKA MIEDŹ S.A. ul. Marii Skłodowskiej-Curie 48, 59-301 Lubin, Poland tel. +48 76 74 78 200, fax +48 76 74 78 500 www.kghm.pl * THE MOST ATTRACTIVE EMPLOYER IN POLAND RESPONSIBLE EMPLOYER *KGHM Polska Miedź S.A. is the winner of the Most Attractive Employer title in third edition of the Randstadt Award survey held in Poland. The high employment* standards maintained in Poland will be implemented in all KGHM Group companies worldwide. KGHM Polska Miedź S.A. Contents Introduction 4 For schools and universities 63 Letter of the President (1.1) 4 Broad Benefits Package 65 Letter of the Minister of Economy 5 Safety of employees – safe mines 66 Our Report 6 Safe mines 67 1. About KGHM – Challenges and Opportunities Education is the key (LA8) 71 of a Local Entrepreneur on Global Markets 9 KGHM Polska Miedź S.A. valued and recognised 71 Significance of Copper for Sustainable 4. Good Neighbour and Trustworthy Investor 77 Development 10 KGHM Polska Miedź S.A.is an integral part Copper Production in Poland and Worldwide 11 of the Lower Silesia local community 78 KGHM Polska Miedź S.A. Market Position 13 Dialogue on Mining Concessions 80 Company’s Business Strategy 18 Partnership with Local Authorities 82 Establishment of KGHM INTERNATIONAL LTD. 20 KGHM Polska Miedź S.A. Listens to the Needs KGHM Polska Miedź S.A. – Leader of the People in the Copper Basin (4.17) 84 of Corporate Social Responsibility 26 Towards More Robust Buildings 88 KGHM Stakeholders 28 Polish Copper Foundation Collaboration on Knowledge and Experience for the People and the Region 90 Sharing and Setting New Standards 28 Healthcare 96 (2.10) Awards received by KGHM Polska Miedź S.A. National Heritage 98 in 2012 31 Research and Development 32 Education and Sports 98 2. Efficiently Managed Business Partner 37 Art and Culture 99 KGHM Polska Miedź S.A. draws on the best Environment and Public Safety 99 management practices worldwide 38 Regional Tradition 100 Drawing on the Best Practices 38 Other Social Causes 100 Transparent management 38 The Foundation in the Eyes of the Municipalities 102 Information available to all interested KGHM Polska Miedź S.A. as a Sponsor parties (4.4) 39 and Social Investor 104 Member of the Respect Index 41 Sports 104 Transparency and Stable Management For Young People 105 Foundations 42 Culture 106 Management Board and Supervisory Board 42 Science 108 Approach to Risk Management (4.11) 43 Polish Copper Traditions 109 Integrated Management System on the Horizon 44 5. Eco-Innovator 111 Customer Focus of KGHM Polska Miedź S.A. 45 Protecting Health and Nature 113 KGHM Polska Miedź S.A. Cares For Its Suppliers 47 Environmental decision – a step towards renewal 3. Responsible Employer 51 of concessions 117 New Perspectives, New Challenges 53 Objective: energy efficiency (EN7) 119 Employment in KGHM Group worldwide 53 Renewable Energy Sources 119 Opportunities and challenges 54 Green solutions 122 First-class employer in Poland 57 Difficult Issue of Odour Emissions 125 Dialogue with the trade unions 58 Health Promotion Programme for the Local Development At Full Throttle 59 Community Members 126 For managers and employees 61 6. GRI Index (3.12) 128 Introduction Introduction Letter of the President Introduction (1.1) Letter of the President (1.1) Ladies and Gentlemen The CSR Report prepared in accordance with the Glob- al Reporting Initiative methodology is addressed to our I t is with great satisfaction and joy, that I am handing over stakeholders and presents our achievements in the area of to you the second Corporate Social Responsibility Report corporate social responsibility in 2012. of KGHM summarising our activities in the key areas linked indirectly to the Company’s business strategy and directly Since 2009, KGHM has been continuously listed in the Re- to our CSR strategy for 2012–18. spect Index of the Warsaw Stock Exchange in recognition of the Company’s transparent information policy meeting The year 2012 was an exceptional year for us as we became the expectations of the stakeholders and promoting the a global player on the market of copper and silver manu- highest standards of responsible management. facturing, following the acquisition of Quadra FNX Mining Ltd. As a result of international expansion, KGHM Polska The corporate social responsibility initiatives of KGHM are Miedź has become an owner of mining assets on three con- appreciated equally by the people in the region and by the tinents and a co-owner of Sierra Gorda world-class mining industry experts. According to surveys conducted at the development project located in Chile, one of the largest Company’s request, almost 72% of the local population deposits of copper ores worldwide. On the other hand, we acknowledge KGHM’s commitment to the social develop- continue to take care of the existing deposits and of the de- ment of the region e.g. in the area of culture, science and velopment of mining resources in Poland, as demonstrat- sports, 58% of people value investments in the region e.g. ed by the example of Głogów Głęboki-Przemysłowy invest- in hospitals and means of transport and 42% recognise our ment project which continues to proceed on schedule and pro-environmental efforts. the prospective development areas in Niecka Grodziecka near Bolesławiec. Submitting this report to you, I would like to thank all our Stakeholders for their supportive attitude and relationship Guided by the principles of sustainable development, we with KGHM Polska Miedź S.A. and all our employees for wish to continue building our future in a responsible and professional performance of their duties, in line with the predictable way and maintain a balance between the principles of corporate social responsibility and sustain- enterprise development needs, the expectations of our able development. Let me also express my deep gratitude stakeholders and the need to protect our environment. It to the team of people who, taking care of the Company’s is of particular significance in the mining industry to de- interest and the public interest, implement and execute velop good relationships with the local community and the corporate responsibility and sustainable development authorities and, in return, receive the ‘license to operate’. projects of KGHM Polska Miedź S.A. which are widely rec- KGHM’s commitment to its region manifests itself main- ognised and honoured with prestigious awards, i.e. in the ly in the maintenance of the existing jobs and creation of 2012 CSR Reports Competition organised by the Ministry new jobs, but also, in numerous local and regional initia- of Economy of the Republic of Poland and in the Top Cor- tives stimulating economic activity and contributing to the porate Philanthropists competition of the Polish Donors emergence of new businesses and growing diversification Forum for contribution to the development of corporate of the economic structure. KGHM has created the Copper philanthropy in Poland. Basin where it conducts its operations and employs over 30,000 people so we feel responsible not only for the natu- President of the Management Board ral environment but also for the local community and their wellbeing. Herbert Wirth 4 CSR REPORT 2012 Letter of the Minister of Economy Janusz Piechociński Deputy Prime Minister, Minister of Economy I am pleased to see that for a number of years, the Man- conducted by the Responsible Business Forum in 2012 agement Board of KGHM Polska Miedź S.A. has been in- (”Joint Responsibility: the Role of Innovation”) showed corporating in its business strategy the social and environ- that 97% of companies with CSR strategies had already mental aspects of its operations and the relationships with implemented state-of-the-art solutions. This means that different groups of stakeholders. CSR contributes to the growth of innovation and innovation builds competitive advantage and improves financial per- Building an image of a trustworthy business partner is formance. nowadays becoming a crucial element of the competitive advantage. It is also of significance in light of the challeng- Therefore, I truly appreciate the efforts undertaken by es posed by the modern economy the objective of which, KGHM Polska Miedź S.A. to develop a corporate social re- according to the Europe 2020 strategy, is to create favour- sponsibility strategy and actively implement its objectives. able conditions for intelligent and sustainable economic I have also been looking with great interest at the commit- growth, taking into account the needs of the society and of ment and initiatives of KGHM and the Polish Copper Foun- the natural environment. dation aimed at supporting prestigious cultural events and scientific, educational and medical institutions, saving his- Achievement of the ambitious objectives can be made eas- torical monuments and maintaining relationships with the ier by the European funds. One of the key assumptions of Polish communities abroad. the New Financial Perspective 2014–2020 is to increase innovativeness of Polish companies through revision of I am positive that the Company will attain its vision and will the business models, internal organisation systems and become a steadily growing global leader taking care of the terms of collaboration with the social partners. A survey common good and sustainable management of resources. Warsaw, 7 October 2013 5 Introduction Our Report This report is the only corporate social responsibility statement published by a mining sector company. When preparing this report, we did our best to present our operations in transparent and accurate way. We want our stakeholders to understand the business decisions we make and the opportunities and 1 threats we are facing. The second CSR Report of KGHM Polska Miedź covers the entire value chain of the Company, including the following Divisions: Lubin Mine, Polkowice-Sieroszowice Mine and Rudna Mine; Cedynia Wire Rod Plant, Głogów Smelter and Legnica Smelter; Ore Enrichment Plants, Tailings Plant, Data Center and 2 Mine-Smelter Emergency Rescue Unit.