INTEGRATED ESG
REPORT 2020

Gas exploration and production projects are an important topic addressed through dialogue with local communities. Cooperation with local communities is mutually beneficial. PGNiG is given the opportunity to understand the expectations of residents living near the planned project areas, whereas members of the local communities gain a deeper insight into the role and intended purpose of the project.

In order to promote mutual understanding between the parties, the PGNiG Group works with its partners in a reliable and structured fashion, with due regard paid to stakeholder expectations. The social dialogue undertaken before and during project execution permits the project owner to adapt to the circumstances and stakeholder expectations. It also helps local communities better understand the intention and purpose of the project. Before any activities commence on the project site, discussions and consultations are undertaken with local authorities, NGO representatives, and local residents. The PGNiG Group runs awareness and education initiatives to promote the understanding of a project, its acceptance, and shared responsibility. This supports infrastructure development efforts, local community organisations as well as science, culture, sports and environment protection initiatives.

They are carried out mainly through the PGNiG Foundation. The Foundation’s projects addressed to local communities in 2020 included:

  • Support for flood victims in the Province of Rzeszów –purchase and delivery of household appliances to affected families. The aid was provided to nearly 260 families from 14 municipalities.
  • Support for more than 70 Voluntary Fire Brigade units –cash donations for purchase of life- and health-saving equipment.
  • Completion of the ‘Eko Skawina’ project consisting in thermal upgrading of houses for the poorest families in the Municipality of Skawina.
  • Vehicle for carrying passengers with disabilities – the Foundation has a car for transporting passengers with disabilities and senior citizens, including current and former employees of the Group and veterans. The car’s drivers have been properly trained in the provision of first aid. The vehicle had been used to transport people and veterans for treatments, rehabilitation, medical visits, events, etc.
  • Energy from Honey – on the premises of PGNiG at ul. Kasprzaka 25 in Warsaw, given the availability of land and close proximity of green areas, an educational apiary has been set up and gradually expanded, currently consisting of 25 hives. The project combines environmental protection with educational elements. In 2020, another apiary (of 16 hives) was set up by the PGNiG Group in Warsaw at the Siekierki CHP Plant (PGNiG Termika). The PGNiG Foundation is responsible for day-to-day care of the apiaries, which house a total of approximately two million bees in the urban environment.

The Foundation also supported many initiatives aligned with the objectives specified in its statutes. An important one was a financial donation to the Ignacy Łukasiewicz Museum of Oil and Gas Industry Foundation in Bóbrka to support the museum’s activities. Being one of its main sponsors, PGNiG supports the cradle of the oil industry − the oldest operating petroleum production site, as well as the heritage of the magnificent Polish inventor and philanthropist Ignacy Łukasiewicz.

Scholarships were paid to the children of employees who died tragically while in service for the PGNiG Group and to talented young people to honour their educational achievements in the ‘Hooked on Science’ programme created by PGNiG Termika. In 2020, 12 pupils and students received scholarships financed by the Foundation.

Exalo has its own scholarship programme ‘We Foster Young Talent’ for children of employees who are top performers at school.

In addition to the projects carried out together with the Foundation, the PGNiG Group runs its own initiatives. Among many projects implemented by the PGNiG Group companies, in addition to the ‘To Be Like Ignacy’ educational programme, is the title sponsorship of Superliga. Internship opportunities are provided as part of the PGNiG Youth Academy: GeoTalent and Deposits of Career. PGNiG is also committed to preserving and providing access to the historical heritage, which not only constitutes a vital part of the Company’s history, but also gives testimony to the development of science and technology in Polish industry.

Local CSR initiatives implemented by the PGNiG Group in 2020 (not related to the fight against the pandemic) included

In Pakistan, PGNiG implements a community outreach and social investment programme, based on the belief in the need to cooperate with and support local communities with a view to improving their standard of living and meeting community needs through various social welfare initiatives. Moreover, the Social Investment Programme is based on a multi-directional strategy of allocating funds to different sectors and areas, which offer the best opportunities to deliver sustainable benefits for the community. PGNiG assumed a mandatory social welfare commitment, following the execution of the Kirthar exploration lease contract in 2005.

In Pakistan, PGNiG engages in matters concerning its stakeholders, both in the area of its operations and beyond. It works very closely with local communities and actively engages them at all project levels, i.e. from the creation of jobs and entrepreneurship development opportunities, to raising their living standards, to improvement of the healthcare and education systems. PGNiG also liaises with local authorities, politicians and public sector representatives to ensure efficient use of both mandatory and optional funds and establish long-term partnerships with the local communities.

In 2020, the PGNiG Operator Branch in Pakistan received the ‘Annual Environment Excellence Award’ from the Pakistani National Forum for Environment and Health (NFEH). The award was given in recognition of the successful implementation of a comprehensive CSR programme, including community and environmental initiatives.

The branch was awarded for a programme carried out in the Kirthar licence areas, where it engages in exploration and production from two natural gas fields – Rehman and Rizq. The following projects were completed by the branch as part of the programme:

  • planting of over 2,000 trees at the Rehman facility site, which will provide habitats for wild birds and contribute to air quality improvement, reduction of temperature and greenhouse gas emissions, and prevention of soil erosion,
  • launch of a wastewater treatment facility and development of green areas at the Rehman production plant’s backyard,
  • support of projects related to the supply of drinking water to the local community,
  • development of road infrastructure and a medical care facility in Tando Rahim Khan providing free medical and ophthalmic care,
  • training of local contractors and providing them with opportunities to work for the branch with a view to stimulating economic growth and improving the living conditions of local people,
  • organising of more than 50 meetings with local residents in order to draw their attention to major environmental protection challenges.

Annual Environment Excellence Awards (AEEA) – the main objective of the AEEA programme is to recognise and promote organisations that particularly contribute to environmental protection, emission reduction and control of waste disposal and pollution processes, thus protecting national and regional ecosystems. The award is given to entities perceiving sustainable development as a basis for carrying out their activities without detriment to the environment or natural resources, in a friendly coexistence with local communities.

The National Forum for Environment and Health (NFEH) is the originator and organiser of the programme. NFEH is a Pakistani non-profit organisation set up to promote the knowledge about nature protection, in particular among children and youth. The entity is engaged in active talks with local decision-makers, promoting sustainability principles as an essential element of implemented projects and investments. Established in 1999, NFEH is an organisation associated with the United Nations Environment Programme (UNEP).

In February 2021, the PGNiG Pakistan Branch received the ‘13th Annual CSR Award’ from NFEH in recognition of the successful implementation of a comprehensive CSR programme, encompassing various community and environmental initiatives. The Operator Branch was distinguished for its CSR programme run in Dadu District, Sindh Province (southern Pakistan).

As part of a voluntary employee campaign, on September 18th 2020, PGNiG Head Office employees took part in the ‘Clean the World’ campaign in the Drewnica Forest Division. On the same day, an all-Poland #PLANting campaign was launched, where volunteers received coniferous tree seedlings and planted a commemorative common oak tree in front of the Forest Division headquarters.

Drewnica is a forest division situated to the north-east of Warsaw. It covers four counties and 14 municipalities, including the city of Warsaw and four of its districts. Since two-thirds of its territory in located in the Warsaw conurbation, it is a popular walking and biking area among local residents. Regrettably, not all of them leave the place clean and tidy. As part of the 2020 ‘Clean the World’ campaign, nearly twenty PGNiG volunteers cleaned a part of the Drewnica Forest Division reducing the amount of litter on that green area.

The initiative was as an opportunity for employee integration. Several participants from the Company and more than a dozen fans as well as a newsletter-based communication drive were an integrating element and helped promote a healthy lifestyle. Proceeds raised from the event were donated to sick children under the care of the Wrocław University of Technology’s Manus Foundation.

Good relations with local communities and local governments as well as proactive and reliable information campaigns help minimise the risk of community protests and of the Company’s negative image. Local governments and other representatives of local communities have opportunities to participate in the decision-making process and to influence investment projects carried out in their area and the benefits they can bring. Media (social, local, regional and national) create a fair image of the Company. The appearance of PGNiG at new locations does not meet with aversion or concerns.

In 2020, information campaigns were carried out in 10 municipalities (in the Provinces of Rzeszów, Kraków, Zielona Góra and Poznań) where the Geology and Hydrocarbon Production Branch was engaged in exploration work. They included information on the websites of municipal offices, local press releases and presentations for the municipal authorities to address their concerns and questions about the work being carried out.

  • Przemyski Klub Biegacza the Przemyśl Runner Club). Since 2019, PGNiG has sponsored various street run events. In 2020 these were: Zimowa Karpacka Piątka, ca. 250 participants – Przemyśl, February 23rd 2020, and Przemyska Dycha, ca. 500 participants – Przemyśl, September 20th 2020.
  • Stowarzyszenie Rozwoju Sportu “Przemyśl” (the Przemyśl Sport Promotion Association). Since 2018, PGNiG has sponsored a handball team of Przemyśl, contract term – 2018-2020. In 2020, the team played 20 games, with approximately 3,700 fans in the stands.
  • Sanocki Klub Tenisowy (the Sanok Tennis Team) – ‘Sanok Championship’ tournament for players from the Province of Rzeszów and all Poland, played within several age groups. The event was open both to amateur and professional players.
  • Sanocki Klub Łyżwiarski GÓRNIK (the GÓRNIK Sanok Ice Skating Team) – support for the club’s activities, consisting in participating in competitions and their organisation in the 2020 season. The club also organises training camps and test competitions in Poland and elsewhere in Europe (Germany, the Netherlands, Italy). As suggested by its name, the club has been established under the auspices of PGNiG’s Sanok Branch, and its members are aged between 6 and 21. For years, the club members have successfully competed both at nationwide and international levels.

for instance:

  • Roman Catholic Parish of Saint Stanislaus the Martyr in Przemyśl. 2019–2020 supporting the organisation of cultural events for pupils and students (PGNiG’s sponsorship), in 2020 the ‘Bosco kolędować Jezusowi’ Christmas songs and carols competition, 166 performers from several provinces and 240 supporters
  • Sanok Musical Association – the ‘Sanok 2020 International Accordion Spring’ – concerts and meetings of young musical talent.
  • Sanok Community Centre – ‘Jazz Stars at the Sanok Community Centre’ – a nationwide music festival with a long tradition, attended by special guests from abroad. The festival features performances by jazz musicians.
  • PRO ARTIS Association – the ‘Organ and Chamber Music Festival’ organised as part of the 1st Organ Music Days Sanok 2020.
  • Sanok Motorbiker Association – the ‘Sanok 2020 Motorbikers’ Rally’ – a family open-air event that features dancing performances, raffles, games for children and rock concerts. The events are always accompanied by handicraft exhibitions, medical emergency demonstrations, auctions for the sick and disabled, and promotion of road traffic safety. They also provide an opportunity to promote the tourist and cultural attractions of the Rzeszów region.

Through:

  • Partnership with the Mogilno Community Centre – supporting cultural education and educating through art.
  • Supporting environmental, safety, culture and sports initiatives in the Municipality of Kosakowo, including cooperation with the Yacht Club Rewa Association in promoting water sports, and encouraging good boating practice among children and teenagers.
  • Partnership with the Sound of Liberty Foundation – musical education of children and teenagers, celebrating momentous events for the country and region, and promoting singing and music, both locally and beyond.

A rescue and eco patrol on the waters of the Puck Bay using a Rigid Inflatable Boat. For the first time during the entire 2020 summer season, the cooperation between GSP and the Mechelinki Marine Training Base Association led to the establishment of a rescue team composed of qualified life guards who patrolled the Bay, seeking to ensure safety and protect the environment in the area. The new rescue boat was docked at a marina in Mechelinki.

In which PGNiG TERMIKA is a Partner. The purpose of the campaign, lasting until the end of March 2021, is to encourage people to save heat and to promote pro-environmental behaviour. Lowering room temperature to 20 ºC saves a lot of money and reduces heat consumption.

Programme for children of Exalo’s employees. Workshops for children designed to promote their interest in what the company does, develop the youngest children’s creativity and encourage their interest in sports activities. It promotes the sense of responsibility and the awareness of interdependence between exploration and drilling operations and the natural environment. The programme also supports the Company’s growth vision and its role in the national economy.

(Gift parcels for young hospital patients, financial support in organising summer holidays for children from disadvantaged families, co-financing of renovation of the Polish Diaspora House – a children’s holiday centre, co-financing of the Polish Football Cup of Children from Care Homes) – PGNiG Termika.

Preparation by PGNiG Gazoprojekt employees of more than 30 presents for children from disadvantaged families under the care of Caritas Polska.

Every year, staff of the PGNiG CSR Department organise a Christmas collection drive for a selected cause. In 2020, in partnership with PGNiG Superliga, PGNiG employees provided support for children’s homes and foster families. The initiative was joined by employees of the Company’s Head Office and Branches, as well as by members of men’s and women’s teams playing in the Superliga handball league. All of them worked to help 37 family group homes and foster families. 11 sports clubs, including Superliga employees, took active part in the campaign.

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