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Together 2013-2014 KMG International Sustainability Report Getting further together 2013-2014 KMG International Sustainability Report 01 02 03 04 05 06 07 Introduction Who We Are Our People Environment Community Marketplace Appendix Message From Our CEO 3 Our Operations 8 Our Approach 18 Strategic 26 Our Approach 36 Supply Chain 44 Abbreviated 48 Interview With Our 4 Major Projects and 10 Human Resources 19 Environmental Investments in the 37 Quality and Customer 45 Financials INTRODUCTION Senior Vice President Achivements Management Objectives Community Management Glossary 49 Corporate Governance 6 About This Report 12 Training and Career 23 Major Achievements 27 Joint Partnerships 40 Controls and 46 Third-Party Opinion 50 Our Stakeholders 12 Development in 2013-2014 Employee 41 Monetary Fines GRI Annex 51 Materiality Assessment 13 Occupational Health 24 Environmental 28 Engagement Legal Actions 46 Stakeholder 59 Code of Conduct 14 and Safety Indicators Awards 42 Feedback Form Code of Ethics 15 Future Objectives 42 Reporting Team 61 Memberships and 16 Contacts 61 Affiliations Notes 62 2013-2014 KMG INTERNATIONAL SUSTAINABILITY REPORT | SUSTAINABILITY 2013-2014 KMG INTERNATIONAL 2 3 Message From Our CEO Based on sound corporate governance, a We care deeply about the economic, career programs. comprehensive compliance network, and a environmental and social impact of our activities Furthermore, our responsibility towards preventive risk management framework, we on our employees, stakeholders and community has been translated into numerous strive to conduct our business in accordance communities where we are active. Therefore, we projects which have contributed to the with the highest ethical standards and in full have continued widespread tracking of specific development of the areas where we operate, compliance with applicable laws. measures related to energy, water, waste, either through the Together for Each and Even though this is KMG International’s first material use and community support so that we Everyone program in Romania and Republic of stand-alone Sustainability Report, our past can better analyze and improve our Moldova, or through direct contributions of achievements over the years in terms of performance. The challenges we faced led us to employees, sponsorship of sports activities sustainability stand witness to our commitment intensify our efforts and the results are more (support for the Montpellier football team in and the strategic focus we have placed in proof of our responsibility and commitment to France; in Georgia – we endorse the national K1 ensuring the durable development of our Group all of our stakeholders. champion Giga Chikadze and 13-year-old tennis and our communities. We are constantly improving our environmental player Ani Shanidze) cultural events (partner of With over 7,500 employees in 12 main One of the key recent developments, of which policy, in order to reduce potential damage and George Enescu International Festival and markets, we are running operations we are proud, is the fact that, following a highly pollution and ensure we can keep the Contest) and educational activities. in refining, petrochemical production, complex revamping and upgrade program at environment as clean as possible for current and We bring our sustainability expertise to every retail, trading, upstream and industrial Petromidia Refinery, KMG International has future generations. Thus, we have managed to activity and project we undertake. From safe reduce our SO2 emissions by 90.63% and services. This diversity helps us gain a become the first local fuel producer to align to work practices, energy efficiency and carbon the Euro 5 fuel emissions standard and the improved our waste recovery rate, reaching a management to anti-corruption practices and unique perspective on the opportuni- refinery improved its overall energy efficiency. percentage of 97.7%. Also, one of our major community involvement, we have established ties created by growth and develop- performances is represented by the alignment Safety is a core principle at KMG International processes and best practices to guide our to the national and European environmental ment of the business cycle, as well as and the success of every activity we undertake is operations. requirements with regard to the emissions of the economic, environmental and so- measured by our ability to conduct our work We here at KMG International are committed to sulfur oxides, nitrogen oxides and dust. safely every day. We are committed to continually improving our sustainability cial challenges and their impact on our Additionally, we have obtained significant continually improving our health and safety practices and performance, as it benefits not activity. We gain first-hand experience reductions in wastewater discharged and total practices and procedures, and to enhancing only our stakeholders and our business, but of the interdependencies and the cru- waste, of 25% and 32.26% respectively. training on specific preventive actions. Thus, our mainly the community. cial need for collaboration between the KMG International employees are our most internal policies and crisis procedures are Our 2013-2014 Sustainability Report – Getting important asset and that is why we have wide range of stakeholders involved updated periodically and our people are Further Together - details our economic, focused extensively in improving their working in our operations. Our sustainability provided with comprehensive trainings every environmental and social commitments and environment, as well as their professional year, so as to minimize the potential health and captures our relationship with the world. I practices are built on this understand- expertise and prospects. In this direction, we safety risks posed by the nature of our activities. warmly invite you to read our report and learn ing, deeply ingrained in the way we do began the implementation of a comprehensive One of our most prized achievement to date is more about how KMG International is working business. human resources management system to that our safety indicators have shown a positive towards achieving global economic growth and identify skill gaps and provide development evolution and KMG International recorded no development, while supervising and managing opportunities for employees that support our Zhanat Tussupbekov fatal incident in any of its areas of operations issues that could impact our stakeholders. since 2010. business strategies. As of 2014, all of our Chief Executive Officer employees are included in performance and 2 3 Interview With Our Senior Vice President What does sustainability represent to you? and waste, but we also became the first local What were the special focus areas of sus- This is the age of sustainable development, fuel producer to align to Euro5 fuel emissions tainability work in 2013 and 2014? What is when financial performance relies on the envi- standard. However, we have not only invested the nature of the projects unfolded in these ronmental and social impact of corporations. in the technical aspects of our business, but also areas throughout the reporting period? Corporate responsibility is an investment and in our people and the community we operate At Group level, there are plans and budget al- must never be regarded as a burden for the in. Our internships and career development pro- locations for environmental protection projects company, while various programs developed in grams, as well as our CSR platform have grown in each business unit – retail, refining, corporate the fields of education, environment protection tremendously, providing better opportunities governance – which are both technical (invest- and community development bring added and a better future for numerous people. ments in technology) and CSR, aimed at both value. Sustainability is one of the major pillars of our increasing awareness and providing efficient I believe sustainability stems from responsibility. business strategy and we intend to go further. solutions to environmental issues as well as at More specifically, we have the responsibility supporting the harmonious development of the communities we operate in. and obligation to future generations to control How do you address sustainability issues INTRODUCTION the impact we have on the environment and To be brief, I will exemplify some of the projects with your stakeholders? society. supporting our sustainable development which One of our guiding principles is transparency marked the mentioned period. In terms of Our business is part of society and needs to play regarding our performance, and we find it espe- technical projects, in 2014, Rompetrol Rafinare fi- its part in shaping it, providing employment cially important for sustainability. I strongly believe sustainability stems and opportunities to people, providing efficient nanced a project for the installation of a particle Working in an industry that uses finite natural from responsibility. More specifically, solutions and high-end products while satisfying reduction system at the Catalytic Cracking Unit, resources, we know that the way we secure our the needs of all our stakeholders. with the purpose of reducing emissions. we have the responsibility and obliga- feedstock, develop our people and manage Moreover, we can proudly announce that follow- tion to future generations to control the our product portfolio will not only impact the ing the upgrade in Petromidia Refinery, we are How does your sustainability strategy link environment and society, but also
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