With the stakeholders’ growing expectations, high accountability and responsibility standards across the entire supply chain, and management of social and environmental risks in mind, we consider our impacts on the business environment already at the stage of planning business activities.
Accountability and responsibility, which have an economic impact on stakeholders, manifest themselves, first and foremost, in a company’s adherence to its legal obligations. The ORLEN Group companies pay taxes which contribute to the development not only at a local level, but also at the national and international levels. In 2015, PKN ORLEN alone paid taxes for a total amount of PLN 27bn, of which PLN 159m in taxes was paid in Płock, home to PKN ORLEN’s Production Plant. ORLEN Upstream, which leases land for its drilling operations, is another good example: taxes paid in 2015 on that account reached PLN 200m. The company does not pay any direct taxes to municipalities; instead, it pays indirectly, by refunding costs related to land and property taxes paid by owners of the land. The amount of taxes paid by the Inowrocław-based IKS SOLINO exceeded PLN 11m, while the UNIPETROL Group operating in the Czech Republic paid more than CZK 42m in taxes in 2015.
The ORLEN Group is also a major employer, with the current headcount close to 20 thousand people. A noteworthy fact is that the Group created nearly 4 thousand jobs in the Czech Republic and over 1.5 thousand jobs in Lithuania. Additional jobs are created as part of investments, repairs and other work undertaken for the ORLEN Group companies.
Partnership with local suppliers also contributes to the development of local communities. By using local services, the ORLEN Group reinforces the market and business in its close neighbourhood. In 2015, PKN ORLEN spent 4% of its total expenditure on products and services offered by Płock-based companies
The ORLEN Group’s membership of various organisations and associations also has an impact on its environment. Some of those activities are crucial for the development of our industry. Polish Organisation of Oil Industry and Trade (Polska Organizacja Przemysłu i Handlu Naftowego, POPiHN) makes its standpoint on matters important for the industry and presents the industry’s opinion to Polish public administration authorities. Therefore, it contributes to the shaping of legal framework for the Polish oil industry. Both directly and through POPiHN, PKN ORLEN participated in the legislative process concerning the use of waste-derived bio-components meeting the Sustainable Development Criteria. Through its membership of the Polish Chamber of Industrial Power and Energy Consumers (Izba Energetyki Przemysłowej i Odbiorców Energii) and the Forum of Electricity and Gas Consumers (Forum Odbiorców Energii Elektrycznej i Gazu), PKN ORLEN is also actively involved in the legislative process shaping the future of European and Polish energy markets, focusing especially on the conditions necessary to secure good long-term prospects for the operation and development of industrial companies in Poland, particularly in the area of energy security and energy-related costs.
Membership of the Polish Chamber of Chemical Industry (Polska Izba Przemysłu Chemicznego, PIPCH) allows us to participate in discussions on planned legislative changes and influence Polish regulations pertaining to the chemical sector. It additionally gives us the opportunity to participate in the development of EU laws through involvement in the work of CEFIC (European Chemical Industry Council).
Membership of the Polish Confederation of Private Employers Lewiatan (Konfederacja Lewiatan) involves collaboration with other entrepreneurs, consultants and experts in order to formulate opinions on existing legislation and positions on proposed new laws. Moreover, through PKPP Lewiatan, PKN ORLEN is able to participate in the work of Business Europe's energy group, which enables us to voice our interests at the European level.
Of all the European trade associations to which we belong, PKN ORLEN considers its membership of the European Petroleum Refiners Association to be of particular importance. The organization brings together companies controlling nearly 100% of the European Economic Area’s oil processing capacities. The Association contributes to developing a policy ensuring safe and sustainable production, supply and use of petroleum products, by lending expert support to relevant EU bodies, domestic authorities and the public. It also concentrates on research and development efforts to provide objective data on the impact of the European oil industry on the natural environment. Further, it helps oil companies take appropriate technical measures to implement the REACH system, counteract climate change through the ETS system, introduce vegetable oil fuels and reduce emissions of harmful substances produced when petroleum products are processed and used.
About thirty ORLEN Group companies have declared their involvement in CSR activities. To improve the quality of life of local populations, programmes dedicated to local communities have been established, such as those in Płock and Włocławek. The Group companies lend a helping hand to solve problems of their local communities, particularly in the areas of healthcare, safety, and education. ORLEN Group companies also support projects promoting arts and culture, amateur and professional sports, and development of urban infrastructure. The underlying principle is that the Group companies should help eliminate the most pressing problems of their respective communities. Inter-sectoral partnerships are one form of such support. PKN ORLEN is one of the founders of the Fundusz Grantowy dla Płocka Foundation, and our representatives are actively involved in its activities. The Foundation promotes and provides co-funding for local NGOs’ initiatives. Similar objectives are pursued by the Fundusz Grantowy Dobrego Sąsiedztwa dla Ostrowa Wielkopolskiego Association, which was established by the Town of Ostrów Wielkopolski, the Municipality and Town of Odolanów, and the Municipality of Ostrów Wielkopolski. The wide array of CSR activities undertaken by ANWIL was extended in 2014, when the ‘ANWIL for Włocławek’ Foundation was established. The Foundation’s budget is to be used for the financing of local initiatives. ORLEN Upstream engages in community outreach initiatives in all of its licence areas. The company supports local sports organisations, educational and social projects, and participates in PKN ORLEN’s safety programme by co-financing purchases of equipment for local firefighting units. In its area of operation, ANWIL is also involved in the same programme of supporting firefighters.
The ORLEN Dar Serca Foundation, established in 2001, fulfils the social responsibility mission of its founder, PKN ORLEN. The Foundation has partnered with more than 300 Family Group Homes which take care of 2,500 children all around Poland, is involved in scholarship programmes, and engages in projects focusing on safety, cultural, and other initiatives. Local communities are important beneficiaries of its activities. Under the ‘PKN ORLEN Charitable Giving Policy’, the ORLEN Group may participate in CSR activities at the corporate level, through the Foundation. And they are eager to do so. In 2015, 11 companies contributed more than PLN 600 thousand for charitable purposes.
To complement the CSR projects pursued by Group companies, the ORLEN Group’s employees engage in various volunteering activities, as an expression of their social awareness. 2015 saw the implementation of 54 volunteering projects involving around 2,500 Group employees.