Climate policy of KGHM Polska Miedź S.A.

Due to the nature of its activities, KGHM Polska Miedź S.A. is one of the most energy-intensive enterprises in Poland. At the same time, the company has for years been successfully striving to reduce its impact on the environment, which is reflected, among others, in the reduction of sulphur and dust emissions by over 99% in just over thirty years.

At present, in accordance with earlier announcements contained, among others, in the 2019 Non-Financial Report, KGHM Polska Miedź S.A. is preparing its Climate Policy, which will set the main directions for decarbonisation activities of the Company and the entire Group. The final version of the document will be adopted by the end of 2021.

KGHM Climate policy

What is KGHM's Climate Policy?

The Climate Policy will be a directional document, aimed at indicating the climate-related activities of KGHM Polska Miedź S.A. and adjusting the Company to their implementation. It stipulates, among others:

  • the level of greenhouse gas emissions to date and the ambition to reduce them by 2030 and 2050;
  • key areas and levers to reduce emissions;
  • other pro-climate measures to accompany emission reductions;
  • recommendations on the implementation of the Climate Policy's declarations and suggestions.

What will the development and implementation of the Climate Policy bring to the company?

Due to the development and implementation of the Climate Policy, KGHM Polska Miedź S.A:

  • will once again confirm its far-reaching ambitions to reduce the company's environmental footprint;
  • will comply with the latest standards defined by the Good Practices of Companies Listed on the WSE;
  • will strengthen its market position, being able to better position its products;
  • will better adapt to changes in the environment resulting from increased energy prices and CO2 emission allowances;
  • will significantly contribute to the decarbonisation of the entire Polish economy (as one of the most energy-intensive companies in the country);
  • will meet the growing expectations of financial markets, shareholders and investors;
  • will ensure further improvement of living and working conditions in the Copper Belt and in Lower Silesia as a whole.

How is the work on the Climate Policy being carried out?

Work on the project is carried out by the Steering Committee and the Operational Team for Development and Implementation of the Climate Policy of KGHM Polska Miedź S.A., appointed by official instructions of the President of the Management Board, as well as by sub-groups dealing with specific issues. Each of them is made up of a group of several to as many as several dozen people, representing both management staff and experts in particular areas of the company's and the Group's operations.

Their work is carried out in parallel in eight streams, dedicated to issues related to different aspects of the project - from direct emissions issues to topics in the areas of management and communication.

The current phase of preparation has been preceded by lengthy and multi-faceted regulatory and strategic analyses since 2019. They have shown that, in the context of the political ambitions of the European community as expressed, among others, in the form of the European Green Deal, climate issues will have a key impact not only on the environment, but also on a company's competitiveness in international markets and on the economics of production. At the same time, all information and data related to greenhouse gas emissions issues were collected, aggregated and processed. All this work has made it possible to estimate the scale of the project and create a preliminary work plan for it. This schedule included familiarising key company personnel with the challenges and opportunities of this type of project and the approach to climate protection taken by our competitors in the non-ferrous metals industry.

The principal stage of work on the Climate Policy of KGHM Polska Miedź S.A. was therefore inaugurated by a special workshop, during which senior managers were able to become acquainted with the conditions for implementation of the project, the schedule of work carried out during the project, and the role of individual organisational units in the entire process.

In this phase of work we are supported by the project consultant Ernst & Young sp. z o.o. Consulting sp. k. The company is the Polish representative of EY, one of the world's largest providers of consulting, audit and risk management services.