Integrated Report
2022

Social and relational capital

The KGHM Polska Miedź Group's singling out of social and relational capital and the Group's management of this capital shows that it pays special attention to issues of social responsibility, including helping society, mainly local communities, and treats the issue of having full social license to operate as extremely important.

Social and relationship capital is defined within the Group as practices, connections and relationships within and between communities, stakeholder groups, etc., and the ability to exchange information to enhance individual and collective well-being. It includes shared norms, values and behaviours, key relationships with stakeholders, especially external ones, trust and willingness to commit to building and protecting them, intangible values related to the entity’s brand and reputation, and public approval of the Group and its constituent companies.

Key indicator data on the social and relational capital of the KGHM Polska Miedź Group:
No. Indicator name Value
31.12.2021 31.12.2022
1 Maintaining position in WIG-ESG (previously the RESPECT Index) YES YES
2 Maintaining its position in the FTSE4Good Index Series YES YES
3 0% investment activity without a social dialogue policy YES YES
5 Sponsorship and charitable activities in building corporate social responsibility [sponsorship expenses for the purposes of the Company’s promotion and regional support, i.e. sports/culture/science] [PLN million] 36 063 822.45 51 591 725.82

The KGHM Polska Miedź Group is a global group, open to development aimed at ensuring its stable operation for many decades to come for the benefit of present and future generations. It is also for this reason that prosociality is one of the important elements of its strategy. 

An expression of our concern for stakeholders, including external stakeholders, is the creation and continuous development of our ESG section under Investors tab on corporate website of the parent entity’s – KGHM Polska Miedź S.A., which is dedicated to the ESG issues in a broad sense and facilitates access to a broad scope of information related to non-financial and integrated reporting by the company. 

The approach of KGHM Polska Miedź S.A. to the social area is defined, among others, by the provisions of the Human Rights Policy. The company continues its dialogue with local governments and communities located in areas where KGHM’s activities may have an impact. This dialogue also concerns the protection of human rights.

The reduction of all risks to local communities resulting from KGHM’s activities is a priority (including the reduction of the risk of compromising the right to health through consistent implementation of the Climate Policy and the Environmental Policy).

KGHM actively supports the development of local communities and respects their culture by respecting the rights of indigenous peoples (which is of great importance in the case of the international companies of the Group).

Highlights of social and relational capital management in 2022 in the context of 2021:

  • social dialogue  (KGHM is a key employer in the Lower Silesia region, but it is also an active driver of social life. Among other things, the Company implements programs promoting health, sports, culture, education or environmental hazards prevention projects. In 2022, KGHM organised four conferences for local governments in cooperation with the Employers’ Organization of Polish Copper. In addition, in 2022, cyclical business breakfasts with local governments were organised, during which an intersectoral dialogue was held with representatives of local government authorities and non-governmental organisations, discussing, among others: proposals for joint initiatives in socially important areas, e.g. prevention activities in such areas of support as: mental health of the region’s residents, risky behaviour of children and young people or family foster care. In 2022, the local governments of the Copper Basin received once again the financial support from KGHM. In total, PLN 3.5 million has been allocated for, among others, the modernisation of village community centres, the retrofitting of playgrounds or projects related to the implementation of preventive healthcare. In the municipality of Rudna, financial support from KGHM enabled the purchase of a transport ambulance. A number of health checks in endocrinology, nephrology or eye examinations were successfully carried out in Głogów. The Kotla municipality purchased equipment for playgrounds and sports and recreation areas for inhabitants. In Legnica, on the other hand, the “My Seventh Heaven” campaign was conducted, supporting a healthy lifestyle and promoting outdoor activity. In the municipality of Lubin, chess classes for children and environmental protection education lessons were continued. In the municipality of Jerzmanowa, swimming pool trips for primary school children were subsidised,
  • CUdowni rodzice (Wonderful Parents) (on the occasion of the birth of a child, written congratulations were given to the employees in a personalised letter, as well as an inspirational book on parenting matters and some small gifts. In 2022, 457 employees benefited from this form of appreciation),
  • 18.5 thousand employees of KGHM Polska Miedź S.A. and 18 companies of the KGHM Group took part in the Dwie godziny dla rodziny (Two Hours for the Family) campaign on the occasion of International Family Day. Activities included the launch of the second edition of the Depression Prevention and Mental Health Promotion Program and the support for mental health projects – their beneficiaries were the inhabitants of the Copper Basin (over 8 thousand people)),
  • Copper Basin NGO Academy (as part of the initiative, of which KGHM is a member, the Group deepened its cooperation with institutions responsible for family foster care. In addition, a number of activities aimed at promoting foster parenthood were carried out. Co-financing of training courses for partner NGOs was also continued),
  • naMIEDZI application (the aim of the application is to promote active lifestyles and expand the knowledge of Copper Basin residents on local tourist attractions. In 2022 new routes were added to it, some of which were created by employees of KGHM Polska Miedź S.A. as part of a holiday competition. The application currently contains 33 routes, and more than 380 points on the map, including places directly related to Polska Miedź),
  • Copper Heart (employee volunteerism program at KGHM POLSKA MIEDŹ S.A. As part of the program, six official collections for the benefit of those in need were conducted in 2022: 4 campaigns promoting active lifestyles combined with charitable actions, 3 educational projects, 2 peer financial collections for the benefit of colleagues in need),
  • supporting runners as part of the Summer Piast Race,
  • aid for refugees from Ukraine,
  • campaigns for children from the orphanage in Wilkowo,
  • popularization of cancer prevention (in 2022, KGHM once again engaged in activities to popularize breast cancer prevention. As part of the traditional pink October, most of KGHM Polska Miedź S.A.’s Divisions were illuminated in pink and the ladies working in the company received a small gift and a commemorative card to remind them of the importance of preventive examinations. The card contained practical information, including telephone numbers to register for preventive screening for early detection of breast cancer. To emphasise solidarity with the idea behind the campaign, on 22 October 2022, employees of KGHM Divisions added pink elements to their clothing. KGHM also reminded the male part of the staff about screening for early detection of testicular cancer),
  • Copper Rivalry (support of sports through donated annual scholarships to athletes for exemplary sports achievements. In 2022, such support was provided to 27 athletes from all over Poland, including 14 from the Copper Basin itself),
  • ECO-Health (the program undertakes projects and initiatives promoting preventive health care among inhabitants of the Copper Basin, an active lifestyle, physical activity and recreation, in order to care for the health of the children, adults and the elderly. The program’s efforts to advance include regular activities: Nordic Walking for adults, recreational gymnastics for elderly citizens, and swimming lessons for children), To date, more than 250 people have benefited from it,
  • expenditure on trade unions (in 2022, they amounted in total to PLN 14,334,146, including remuneration plus overhead of trade union activists released from the obligation to work of PLN 13,526,463),
  • public engagement during the war in Ukraine (the KGHM Polska Miedź Group was involved in helping those in need. KGHM Polska Miedź S.A. and the companies of the KGHM Group have demonstrated huge involvement in aid activities from the very beginning of the war conflict in Ukraine. Having witnessed the atrocities against the Ukrainian population and the great wave of refugees seeking refuge in Poland, the Group companies decided to do everything to provide them with shelter and basic living conditions in this difficult situation. For five months, every day, up to 10 thousand meals were served to Ukrainians arriving in Warsaw. Over the entire period of the tent’s operation, a total of more than 500 thousand meals were served. Aware of how important safe shelter is for every refugee, the KGHM Group provided buildings and accommodation for those forced by war to leave their own homes. More than 300 refugees were placed in temporary accommodation centres in Lower Silesia, Lubuskie and Podlaskie. 150 refugees were also accommodated in spa resorts owned by a KGHM Group company. Also noteworthy is the fact that many KGHM Polska Miedź employees offered shelter to refugees gratuitously, in their own homes. In addition, more than 750 beds/mattresses with sets of duvets and bedding were donated to the accommodation points existing in 25 local governments.

In response to the needs of refugees from Ukraine, the „We Together” Assistance Centre was launched in Lubin, whose tasks included assistance in finding accommodation, support in translation and legal and medical issues, and coordinating contacts with local governments, Caritas and other NGOs in the region. At subsequent stages of its assistance activities, KGHM Polska Miedź S.A. also supported the Polish language courses and the promotion of vaccination campaigns against communicable diseases among Ukrainian refugees),

  • activity of the KGHM Polska Miedź S.A. Foundation (in 2022, the activity of the KGHM Polska Miedź Foundation was focused on granting donations and overseeing how they are spent as well as on running the program. The commitments undertaken by the Foundation were carried out with the utmost care, thorough analysis of the submitted requests and with a detailed consideration of the capacity to help. In 2022, the Foundation continued to develop its operations, pursuing its statutory goals in four areas: health and safety, science and education, sports and recreation, culture and tradition. In 2022, the KGHM Polska Miedź Foundation made every effort to identify various social needs, in line with the assumptions of its articles of association and within its capabilities. Support was granted in the form of cash donations in a total amount of PLN 36,684,034.56, including PLN 35,185,924.53 for the performance of 430 projects and PLN 1,498,110.03 for 158 private individuals),
  • sponsoring activity (the areas of sponsoring activities of KGHM Polska Miedź S.A. are culture and social affairs, science and sport). The most important functions of sponsorship include support in the implementation of strategic investments, communication with local and regional authorities, reaching target groups with the desired image and building positive associations with the corporate brand. 2022 was a continuation of the implementation of the above assumptions.

This commitment is expressed among others by the granting of certificates to two of our metallurgical plants under the prestigious Copper Mark program. To ensure the highest due diligence, transparency and compliance with best practice for listed companies, the Investor Relations Team also regularly provides responses to surveys, questionnaires or information requests regarding ESG, among others: Sustainalytics, CDP, FTSE Russell, MSCI, WOOD, Refinitiv, Vigeo Eiris and BlackRock.

In the summation of Carbon Clean 200TM for 2022, the parent entity was recognised in a ranking of 200 companies globally which, in the opinion of the authors of the ranking (Corporate Knights and As You Sow) which make the greatest efforts towards protecting the environment and counteracting climate change, at the same time earning more than 10% of so-called green revenues.

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