Sustainable development and social responsibility

Partnership

• We undertake pro-active steps and measures to provide support in relation to the planned restructuring.
• We prepare ourselves for the generational change i.e. Ready for the Future.
• We track people’s opinions and attitudes (Employee Survey 2018).
• We cooperate with four Trade Unions representing our workforce.
• We finance the Employee Pension Scheme.
• We co-finance the activities of the Association of Seniors whose members are retired employees of KOGENERACJA S.A.
• We engage our existing and retired employees in the organization of the Open Door Day.
• We cooperate with the KARAN Association in Wrocław as part of the program of providing assistance and support to persons who are addicted to psychoactive substances.
• We counteract social exclusion through the following initiatives:
  • - Program of Assistance for Socially Vulnerable Buyers*
  • - Support for the SIEMACHA Association working with teenagers from underprivileged communities,
  • - Educational support and preferential energy supply to the Social Therapy Center for Youth no. 2 in Wrocław, in cooperation with the MiserArt Foundation (bread baking workshops, screen printing workshops)
  • - Cooperation with the Józef Pupka Foundation offering support to gifted students in a difficult financial situation.
• Engagement of employees in charity and volunteering initiatives:
  • - The Club of Honorary Blood Donors “Kropelka” at KOGENERACJA S.A. (three campaigns, around 38 liters of blood collected, 47th anniversary celebrated in 2018); receipt of a Certificate for a Company Promoting Blood Donorship from the Ministry of Health.
  • - Charity events originated by employees e.g. a campaign for Poles living in the Eastern Borderlands.

Development

• We carry out the annual performance evaluation which serves as the basis for the Annual Training Plan,
• We help people with disabilities to remain active by:
  • - Educating children in Wrocław schools in partnership with the L’Arche Foundation – staging puppet performances dealing with the issue of disabilities; in 2018, there 3,000 children from Wrocław attended performances held at schools, pre-school facilities and educational centers.
  • - Assuming patronage over the International Wheelchair Tennis Tournament Wroclaw Cup – in 2018, the 26th edition of the tournament took place.
• We stimulate the activity of local communities:
  • - “Wrocław – łączy nas ciepło” [Wrocław Connected by Heat] – commencement of cooperation with the Open Mind Foundation regarding an educational program for children teaching them how to fight smog in the city;
  • - A tree planting campaign as part of the project called ‘100,000 tress for the 100th Anniversary of Poland’s Independence”

Responsibility

• We maintain the highest Health & Safety Standards by means of:
  • - Awareness-raising programs for employees, subcontractors and guests
  • - On-site management visit
  • - Daily Safety News
  • - Nominating the “Safe Employee of the Quarter/Year” in the Company
  • - Promoting the OSHA Campaign
• We promote healthy lifestyle among employees, including:
  • - Offering a package of additional medical services (as part of the tripartite cooperation between the insurer, medical center and KOGENERACJA S.A.)
  • - Sports and Travel Association
  • - other pro-health activities
• We plan for and ensure the security of electricity and heat supplies.
• We take steps to improve the air quality in Wrocław by participating in the KAWKA+ program (replacement of old furnaces with network heat).
• We educate local communities by running wide-scale communication campaigns about our environment-friendly generation processes through the following activities:
  • - Open Door Days when our production plants are visited by members of the public who also take part in special environmental education events; the 21st edition of the Open Door event took place on 5 October 2018 at EC Wrocław.
  • - Workshops for secondary school students organized in partnership with the Lower Silesian Ecological Club.

* Program of Assistance to Socially Vulnerable Customers for the residents of Wrocław and Siechnice. The program is implemented under agreements signed with the authorities of Wrocław and Siechnice Municipality signed in 2016. KOGENERACJA S.A. supports the customers in the payment of their heat bills. The program is addressed to individuals in financial distress and to educational and social support institutions who have signed heat purchase contracts with the Wrocław-based heat producer. The decision about the allocation of the financial assistance is made in partnership with the Social Welfare Centers.

Ethics Council

The Ethics Council composed of representatives of the Company’s employees has been in operation since 2004. It is a social body that operates outside the Company’s formal structures. The task of the Ethics Council is to promote ethical attitudes and behavior among employees.

In January 2018, the Management Board of KOGENERACJA S.A. adopted the PGE Group’s Code of Ethics.

In February 2018, the Anti-Corruption Policy of the PGE Group was implemented and the terms of cooperation with third parties are set out in the Code of Conduct for Business Partners.

In May 2018, the Company adopted a General procedure of reporting and dealing with non-conformances and of the protection of whistle blowers.

Respect index

On 14 December 2017, the Warsaw Stock Exchange announced the new composition of its responsible companies index. KOGENERACJA S.A. was named among the most socially responsible businesses on the Warsaw Stock Exchange for the eight time running.

Oher initiatives

As a member of the UN Global Compact since 2014, KOGENERACJA S.A. has undertaken to promote, adopt and apply in all areas of its activity, all applicable standards and principles in the area of human rights, labor rights, environment and anti-corruption.

Józef Pupka Foundation

Established in 2005 in commemoration of the first President of KOGENERACJA S.A., the Józef Pupka Foundation pursues a mission of helping talented college and university students from financially disadvantaged backgrounds and promoting education among young people whose access to educational opportunities is limited. In 2017, as part of its statutory activities, the Executive Board of the Józef Pupka Foundation evaluated 28 applications and awarded scholarships to 24 Polish students who satisfied the formal criteria applied by the Foundation.

Financial support

In 2018, the Company provided financial support to the following social and charity organizations:

1. Support Program for Socially Vulnerable Customers
   • Municipality of Wrocław – Socially Vulnerable Customers
   • Municipalities of Siechnice – Socially Vulnerable Customers
   • Spring Association: The Noble Parcel campaign
   • Wrocław Centre of Care and Education
   • Homo - Sacer Foundation
   • Albertówka Foundation
2. Protection and promotion of health and healthy, active lifestyle
   • Lower Silesian Integration Forum
   • KARAN Foundation for Helping Addicted Persons
   • Energetyk Seniors Association
   • Rescuing Children with Cancer Foundation
   • Polish Fishing Association – Local Fishing Club no. 42 in Siechnice
   • Sports and Tourism Association in KOGENERACJA S.A.
3. Supporting the education of young people in difficult financial situation
   • The Józef Pupka Foundation
   • Youth Social Therapy Centre no. 2 in Wrocław
4. Integration and activization of the disabled
   • Educational project “Let’s Change the World Together” in partnership with L’Arche Foundation
   • Lower-Silesian Society of Disabled Athletes “AKTYWNI”
   • Siepomaga Foundation
   • “A Jednak” Association
5. Other organizations
   • EKOSTRAŻ Animal Rights Association
   • Voluntary Fire Brigade in Siechnice
   • Polish Foundation of the Knights of Malta.

Promoting access to energy and eco-efficiency

• The Company wants to attract new customers for its district heating network. Under our proposal addressed to both new and existing residential buildings, as well as small businesses and large enterprises, we offer supply of heat through the district heating system in Wrocław and the Municipality of Siechnice as an alternative to heat sources such as coal, oil or gas.
• Our priority is to connect to our district heating network buildings heated with high-emission coal-fired furnaces. Conversion to district heating contributes to reducing low-stack emissions in city centers by eliminating emissions of exhaust fumes and dust from local sources.
• In 2018, the Company continued to implement projects aimed at raising the energy efficiency of its own generation processes by reducing the volume of energy consumed. The air compression unit was modernized i.e. the old compressors were replaced and the pump and fan engines were upgraded.
• We are also engaged in activities aimed at reducing heat transmission losses and increasing the reliability of supply. These activities include the following:
  • - upgrading our facilities and district heating networks in Siechnice
  • - modernizing the company’s power grids and the SN 20 kV switchgear station at EC Zawidawie

Tripartite agreement for sustainable development of Wrocław

In 2018, KOGENERACJA S.A., Fortum and the Wrocław authorities were working together on the local heat market under the executed Sustainable Development Partnership Agreement. The cooperation between the entities focused mainly on combating low-stack emission. The parties made joint efforts to increase the availability of district heating to residents. The Municipality of Wrocław continued the process of removal of old furnaces from residential buildings within the framework of the KAWKA+ Subsidy Program while Fortum and KOGENERACJA S.A. supported housing associations in the process of building new district heating and hot water installations in the buildings.

In Siechnice, thanks to the expansion of the district heating network by KOGENERACJA S.A., connecting new buildings to the heat distribution system and completing new investments, the number of end-users of network heat went up to more than 70% of demand for heat in the city. Such a change has a significant impact on the reduction of low-stack emissions and, consequently, improvement of the residents’ life quality.