SUSTAINABILITY REPORT 2016 Vision to Be a Leading Oil Refiner and Oil Products Marketing Enterprise in Greece and the Wider Region
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SUSTAINABILITY REPORT 2016 VISION To be a leading oil refiner and oil products marketing enterprise in Greece and the wider region. CORPORATE MISSION To conduct our business operations To meet our customers’ needs responsibly To function reliably, swiftly and flexibly so as to increase the company’s corporate and effectively, while expanding our in our relationship with employees, value for the benefit of all stakeholders share in the domestic market. customers, suppliers, and the general -shareholders, personnel, customers, public, by making use of practices that suppliers, associates and partners, as well as demonstrate responsibility and integrity, the local and greater community- applying as well as respect for people technological and commercial innovations. and the environment. STRATEGIC GOALS Maximising the profitability of all the Maximisation and optimisation of sales, Striving for the highest standards of Health companies of the Group and overall financial by effectively marketing our products and and Safety, Environmental protection and performance. exploiting opportunities in our three markets Quality, through the application of technical, (domestic, aviation-marine bunkering, and operational and organisational innovations export), for achieving the best possible and improvements. profitability. OUR VALUES 1 Integrity 2 Efficiency 3 Social responsibility • Respect for laws and regulations. • Achieving set targets. • Respect for all stakeholders. • Applying business ethics and • Creating value for shareholders • Respect for the environment and the principles of corporate governance. and society. commitment for sustainable growth. • Honest and open communication. • Servicing customers’ needs. • Priority for Health and Safety. • Credibility and respectability in • Providing a safe, stimulating • Ensuring that the companies of the all kinds of business relations. and reciprocal workplace. Group are active and responsible • Continuous improvement corporate citizens, respecting the local and promotion of learning and innovation. community and society as a whole. OUR PRINCIPLES Respect for our people Respect for the environment Transparency We recognise the value of our people We recognise the value of our natural We operate professionally and responsibly, and we promote their personal environment and the necessity for sustainable strictly implementing the principles of business development, while offering competitive development and commit ourselves to the ethics and corporate governance. terms of employment, within a working implementation of effective operational environment of respect and mutual trust. procedures and technology for its protection. We respect human and labour rights and give first priority to workplace Health and Safety assurance. Sustainability Report 2016 2 The growth of YEARS MOTOR OIL: MOTOR OIL Important 45 milestones 1996 2001 Purchase of 50% of Increase of the company’s 1972 the company’s shares equity capital through by Saudi Arabian Oil public offer of shares Commissioning 1978 1984 Company (Saudi Aramco). and listing on the Athens of the refinery. It comprises Stock Exchange. a Crude Oil Distillation Commissioning of the Construction Relocation of the Head Unit, a base oils production Catalytic Reformer Unit for of a Power Plant, Office to a modern Offices Upgrading of the Lubes unit and port facilities. gasoline production. burning fuel gas. Complex in Maroussi. Vacuum Distillation Unit. 1975 1980 1993 2000 2002 Construction completion Commissioning of the ISO 9002 Construction of new units Acquisition of 100% of the 100,000 barrels/day Catalytic Cracking Unit quality certification and upgrading of the Naphtha of the retail oil marketing Crude DistillationComplex. (for converting fuel oil for the entire range of the Reformer into a continuous company AVIN OIL. to higher added value company’s commercial and 103-octane number catalyst Construction completion products). manufacturing activities. regeneration unit for the of the 1.5 million cubic production of fuels conforming metres tank farm. to EU specifications. New Central Control Room and installation of a Distributed Control System. Certification of the Environmental Management System, according to ISO 14001:1996. 3 SUSTAINABILITY REPORT 2016 2010 Commissioning of the new 2014 60,000 barrels/day Crude Distillation Unit, and of two Acquisition of 100% additional Sulphur Recovery ofthe retail oil marketing Units, of a combined company Cyclon A.B.E.E. 170 ΜΤ/day sulphur production capacity. Recertification of the Quality Management Completion of the System according to acquisition of the shares the ISO 9001:2008, of the companies the Environmental SHELL HELLAS S.A. Management System (renamed to Coral S.A.), according to 2004 2006 2008 and SHELL GAS A.E.B.E.Y. ISO 14001:2004 and (renamed to Coral GAS the Health and Safety Commissioning Certification of the Certification of Health A.E.B.E.Y.), as well as of 49% Management System, of the new Truck Loading refinery’s Chemical and Safety Management of the aviation fuels trading according to Terminal at the refinery. Laboratory, according System, according to company. OHSAS 18001:2007. to ISO 17025:2005 OHSAS 18001:2007. 2005 2007 2009 2011 2016 The Hydrocracker Increase of the Registration of the Completion of the MOTOR OIL achieves Complex is commissioned, participation in the share th company in the Hellenic construction of 5 gas record sales for facilitating the production capital of OFC AVIATION Register of EMAS turbine in refinery’s power the ninth year in a row of “clean fuels” conforming FUEL SERVICES S.A. (Eco-Management and cogeneration plant, which now (13 million MT). to European Union Audit Scheme). Issue from 28.0% to 92.06%. has a total capacity of 85MW. specifications. of the first voluntary Environmental Statement, Entry into natural gas Construction completion of Repurchase of conforming with trading in collaboration KORINTHOS POWER S.A Saudi Aramco’s stake EU Regulation with MYTILINEOS S.A. power plant, located in in the company. EMAS ER 761/2001. the MOTOR OIL refinery premises. Management Message For the Motor Oil Group, 2016 was a very good year in terms of financial results. The refining market conditions were such that created the base for high refinery margins, which in combination with a steadily strong US dollar, allowed for a -record breaking- high profitability. In 2016 we achieved, for the ninth year in a row, record sales, 77.9% of which headed for exports. On a Group consolidated level, our operating profitability reached 604 million euros and our net Group profits reached 298 million euros. The total evaluation of our social product reached 662.4 million euros. Despite the challenges of the economic environment in our country, sustainable development and value creation continued to form our fundamental course of action. For us, it is a basic priority to be able to support our customers, our employees but also the greater society. With more than 1.900 employees in our Group, we constantly strive to offer a fair and safe working environment that supports personal and professional growth and development. In this context we managed to run training programs that amounted to 21,000 man-hours. We continued to place utmost importance in the implementation of an integrated management system for Health, Safety, Quality and the Environment. In this context we spent 32.9 million euros for Safety and 24 million euros for the Environment in investments, improvements and operating expenses. Regarding the society, we remained focused in our efforts to help support and facilitate the negative consequences of the economic crisis in Greece. We continued our initiatives regarding the planning and roll out of targeted solutions, especially for sensitive groups that are affected particularly harshly by the crisis and also the local communities residing near our installations. All the above were achieved due to the valuable contribution of our Groups’ employees. Every day they reconfirm their dedication to our goals and to our vision for a balanced and long-term growth. This current version of the “Sustainability Report 2016” is the fifteenth such report, which describes in detail our Group’s activities. The structure of the Report is based on the materiality analysis of all the topics raised by our stakeholders, following the guidelines of the Global Reporting Initiative under the G4 scheme. In this context, this Report serves as our “Communication on Progress” on the basis of our commitment to disclose information according to the principles of the UN Global Compact, which we endorse and support. As a leading company in the Greek energy sector, we remain ready to respond to the ever-increasing needs of our challenging economy. At the same time, we continue to gaze into the future with optimism and we create constant and long-term value for all the stakeholders groups involved. Motor Oil Group Management 6 Contents i Vision, Mission, Strategic Targets, Values and Principles ii Key Group data for 2016 2 The growth of MOTOR OIL: Important milestones 5 Management Message 6 Contents 9 On the Sustainability Report 2016 Identity and Corporate 10 Responsibility 12 Profile of the Motor Oil Group 13 The Refinery 14 Results 2016 15 Corporate Governance 17 Participation in International - National Agencies and Networks 17 Awards & Recognition 18 Managing Corporate Responsibility 19 Responsible Growth and Investments 21 Responsibility for the Environment, Health and Safety 21 Responsible Quality