Corporate Social Responsibility Strategy (KGHM CSR) update

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1 Pokłady Layers of possibilities możliwości Corporate Social Responsibility Strategy (KGHM CSR) update (support strategy three pillars of Business Strategy for the years with perspective to 2040)

2 About the CSR strategy in KGHM The following slides present the Corporate Social Responsibility Strategy of KGHM for the years Respective goals of the CSR strategy have been defined in such a way so that they support the realization of the business strategy of KGHM. Measures of realization linked to GRI have been assigned to the objectives and actions. Departments responsible for realization of respective goals have been pointed out. This document will be further supplemented with a detailed implementation schedule, strategy implementation management scheme, and monitoring and assessment rules within KGHM S.A. and KGHM I. The strategy is based on: The results of the analysis of the social responsibility activity of KGHM ISO guidance on social responsibility, guidelines of the International Council on Mining and Metals The strategy drawn up on the basis of The Ten Principles of the UN Global Compact Sustainable development reporting guidelines of the Global Reporting Initiative (G4) Consultations with the management, local communities, employees and key stakeholders Best market practices (benchmarking against top global mining companies) KGHM Corporate Values

3 KGHM CSR Strategy is an integral part of the company s Global Business Strategy for with perspective to 2040 EBITDA at the level of PLN 7 billion in 2021 and EBITDA margin of the Capital Group on average above 20% in Executive Strategies Development of Domestic and Foreign Assets Production and Safety Coherent Organization Corporate Social Responsibility Support Strategies Innovations Financial Stability

4 CSR Strategy is based on corporate values Courage We face new challenges in a well thought-out manner Accountability We are jointly responsible for the actions taken for the benefit of our stakeholders Results-driven We achieve results while being focused on the long-term success of KGHM Teamwork For us, cooperation is the basis of success Zero harm We are all jointly responsible for our safety The CSR Strategy is based on KGHM s Code of Ethics. Our values are an integral element of the Code of Ethics.

5 Stakeholders Clients Suppliers Shareholders and capital partners R&D institutions Local communities Local authorities Employees and Trade Unions National authorities Media EU institutions Non-governmental organizations Market regulators Stock exchange Market organizations Peers

6 KGHM CSR Strategy for the years Building the image of the KGHM Polska Miedź S.A. Capital Group as one that cares about health and the environment Improving the efficiency of internal and external communications of the KGHM Polska Miedź S.A. Capital Group Strengthening the image of the KGHM Polska Miedź S.A. Capital Group Establishing cooperation with local communities and internal stakeholders Maintaining the position of a responsible employer Strengthening the position of a trusted and stable business partner

7 Corporate Social Responsibility MAIN OBJECTIVE: Strengthening the image of the KGHM Polska Miedź S.A. Capital Group ORGANIZATIONAL O B J E C T I V E S: Establishing cooperation with local communities and internal stakeholders Initiative Strengthening the position as a trusted and stable business partner Initiative Maintaining the position of a responsible employer Initiative Building the image of the KGHM Polska Miedź S.A. Capital Group as one that cares about health and the environment Initiative Improving the efficiency of internal and external communications of the KGHM Polska Miedź S.A. Capital Group Initiative Standardizing global approach dialogue with internal and external stakeholders and communities of interest Strengthening the relations with business partners Maintaining the position of a responsible employer, internally and externally, as well as strengthening the position of a leader in occupational safety Strengthening the position of the KGHM Group as an environmentally conscious company who cares about the protection and wellbeing of its surrounding environment and communities Creating a communication policy of the KGHM Group Strengthening the sense of belonging of KGHM Group employees and building a system to guide actions and behaviours throughout the organization

8 Strategic objectives Establishing co-operation with local communities and internal stakeholders AIMS: Development of the principles of long-term cooperation in the field of social engagement. Establishment of the principles of dialogue with local communities and gaining social approval (license to operate ) on the basis of industry best practice. Introduction of uniform and transparent rules of charity and sponsorship building the position of being leader who cares for the common good. Development of programs of community engagement for better understanding of the expectations of the stakeholders and responding to their needs. Supporting key KGHM investment processes at all stages of development.

9 Strategic objectives Strengthening the position of a trusted and stable business partner AIMS: Increased promotion of KGHM by participating in national and international industrial initiatives (scope of sustainability) Communication support in maintaining and developing trade cooperation with long-time and stable partners Development of inter-sectorial cooperation Becoming the investor of choice due to the compliance with sustainable development rules Respect for human rights and taking the expectations of local communities into account

10 Strategic objectives AIMS: Maintaining the position of a responsible employer Promoting voluntary activities aimed at increasing the employees engagement at the level of the Capital Group Building the reputation of a responsible employer Implementing the principles of the Health and Safety policy Carrying out business based on the highest standards of employee dialogue Becoming a leader in the industry with regard to occupational health and safety, employment and remuneration stability, and continuous training of employees long life learning Promoting transparency based on corporate governance and ethics, in particular the respect for human rights

11 Strategic objectives Building the image of the KGHM Polska Miedź S.A. Capital Group as one that cares about health and the AIMS: environment Implementing: Health Promotion and Environment Hazard Counteracting, ECO-Health/ initiatives for environmental protection Strengthening the role and activity of KGHM in the field of environmental protection Developing programs and initiatives to improve environmental performance (greenhouse gas emission reductions, biodiversity conservation, energy efficiency, waste management, mine closure planning, and water use and protection) Department of Communication and CSR

12 Strategic objectives Improving the efficiency of internal and external communications of the KGHM Polska Miedź S.A. Capital Group AIMS: Standardization of the principles of communication and behaviour inside and outside the KGHM Capital Group Organization of coordinated Public Relations of the KGHM Capital Group at the international level Improvement of internal communication in the KGHM Group Polska Miedź S.A. and KGHMI Standardization and consolidation of reporting tools in key companies of the KGHM Group Building an international educational system in the field of sustainability

13 CSR tools KGHM Polska Miedź S.A. sponsorship and foundationsi Fundacje KGHM is an active supporter and community partner in the areas of sports, arts, culture and education KGHM intends to consistently support, co-organize and hold honorary patronage over significant events at the local, national and international level KGHM Polska Miedź Foundation - Oriented towards the implementation of the following programs: Science and education Health and safety Sport and recreation Culture and traditions Revimine Foundation - Established to carry out the revitalization of post-mining facilities and keep the mining heritage for the next generations

14 CSR tools KGHM International KGHM is an active member of the Mining Association of Canada and is fully subscribed to its Towards Sustainable Mining (TSM) program. TSM consists of a set of tools and indicators to guide and measure performance in the areas of: Safety and Health Aboriginal and Community Outreach Biodiversity Crisis Preparedness Energy and Greenhouse Gas Emissions Management Tailing Management

15 CSR tools - programs The Copper Heart is a global voluntary employee work program under which our staff engage in projects benefiting local communities, supporting people in need or working for the environment Innovation Zone is a tool to support the process of developing leaders who should be able to face the challenges of efficient business management at the international level. The program aims at building an innovative culture within the company. EKO-Health is a program promoting pro-health and ecological activities

16 Thank you for your attention