CSR Outlook 2016+
Responsible management across the ORLEN Group is driven by our awareness of the Company’s impact on its immediate and more distant environment and predictions of its short-term effects and the brunt to be borne by future generations.
The new ORLEN Group’s CSR Strategy developed in 2014 was based on the analysis of both internal and external trends as well as wide-ranging expectations of the large and diversified circle of the ORLEN Group’s stakeholders. The CSR Strategy has been rolled out for over one year to reinforce our business, and it addresses both the Company’s needs and the challenges posed by our environment. As regards external trends, special attention should be given to the conditions which will determine the Company’s methods and principles of operation in the short- and long-term horizon. These include social developments, such as the entry of Generation Y on the labour market and the ageing of our society. Other external factors include strong international social and political pressures to keep the negative environmental impacts at a minimum. One of the effects of a dynamic development of new technologies is the stakeholders’ ability to react immediately to irresponsible actions taken by companies. Consumer awareness is also growing, as is the attention given to social responsibility of businesses. Therefore, value-based management is the key for a company to effectively manage its social and environmental risks. Obviously, adoption of high standards across the entire supply chain is a prerequisite. A responsible employer must always consider the expectations of its employees as to the respect for their rights, health and safety, and adherence to core values.
The overriding objective of the ORLEN Group’s CSR efforts is to create value both for the Group companies and for its stakeholders. Ethical, social and environmental considerations are not only ingrained in our CSR Strategy, but are, first of all, part and parcel of the Group’s day-to-day operations.
The ORLEN Group’s social initiatives are driven not only by the Company’s internal needs and the stakeholders’ expectations. First and foremost, they reinforce our business position and send a signal of the Company’s awareness of its large-scale impacts. Therefore, the Strategy considers the challenges faced by Polish businesses according to the ‘Vision of Sustainable Development of Polish Businesses until 2050’, which assumes active involvement of the business community to support Poland’s social and economic development. The document draws on the international initiative of the World Business Council for Sustainable Development and highlights key challenges and actions to be taken to achieve sustainability targets. Six priority areas identified by the World Business Council for Sustainable Development are: social capital, human capital, infrastructure, natural resources, energy, as well as the quality of the state and public institutions.
Another important document for the business, this time with a global range, is the United Nations 2030 Agenda for Sustainable Development. The Agenda was adopted in September 2015 and contains 17 general sustainable development goals and 169 specific targets focusing on elimination of poverty, combating inequalities, and preventing climate change in the 15 years’ horizon. The United Nations calls on local parliaments and governments, civic societies, as well as companies and entrepreneurs, to work towards the achievement of those goals and targets.
Future operations of companies will be also driven by the CSR standards which socially responsible businesses are expected to apply. Those standards certainly include the Global Compact, principles, which are reflected in documents such as the ‘Core Values and Standards of Conduct of PKN ORLEN S. A .’ and the Group’s current CSR Strategy. However, they also include reporting standards such as the Global Reporting Initiative, industry guidelines such as IPIECA or OECD guidance for international businesses. Both our actions and reporting practice also take account of the seven priority areas set out in the ISO 26000.
It should be also noted that in December 2014 the European Union announced that business reporting standards would be extended to include the obligation to report non-financial data. The relevant Directive is to be implemented by Member States by December 6th 2016 and come into effect as of 2017. As a result, listed companies, banks and investment funds with the headcount of more than 500 employees and total assets over EUR 20m or net turnover in excess of EUR 40m will be obliged to disclose their non-financial data, including their impact on the environment, diversity policy, respect for human rights, risk assessment, and more. Disclosure of such information is based on the comply or explain rule. PKN ORLEN has published its CSR reports since 2003, and as of 2008 they have been drawn up according to the Global Reporting Initiative standard. In 2015, the Company published its first Integrated Report.
CSR activities translate into the business dimension, and socially responsible companies are included in dedicated stock exchange indices, such as the Dow Jones Sustainability Group Indexes or FTSE4GOOD, Poland’s RESPECT Index. Ever since 2009, when the Respect Index was launched, PKN ORLEN has been included in the Index every single year, following a difficult qualification procedure. Considering the growing number of investors who find it important that a company is managed in a socially responsible and sustainable manner, focuses on the high quality of investor relations, and reports its financial data on a regular basis, inclusion in the Respect Index serves as a reference for potential investors looking for attractive and safe investments.
The ORLEN Group’s CSR strategy is based on the ‘Core Values and Standards of Conduct of PKN ORLEN’ and seeks to motivate employees to look for new ideas and innovative solutions. While supporting business, it builds a sense of shared responsibility for implementing CSR objectives within the organisation and promotes the idea of responsibility and stakeholder engagement.