- to achieve climate neutrality of the Parent Entity of the KGHM Group by 2050 in terms of Scope 1 greenhouse gas emissions (direct emissions mainly related to the company’s production activities) and Scope 2 emissions (indirect emissions related to the use of electric and thermal energy purchased on the market, while reducing such purchases as much as possible).
- the intermediate goal is to achieve total Scope 1 and 2 emissions by 30% by 2030 as compared to the 2020 emissions.
Table of contents
Environmental impact of operations
GRI
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3-3
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305-1
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305-2
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305-3
The ambition of KGHM Polska Miedź S.A. in the climate change area is to deepen communication with all key stakeholders. This approach was manifested in the adoption of the Climate Policy of KGHM Polska Miedź S.A., a strategic document addressed to both external and internal stakeholders. It aims to define the scope of the necessary process and organisational changes.
The main objectives of the Climate Policy of KGHM Polska Miedź S.A. are:
These objectives and the means of achieving them are shown in the figure below:
Greenhouse gas emissions reduction goals in KGHM Polska Miedź S.A. and main decarbonisation directions
In 2022, total Scope 1 and 2 greenhouse gas emissions reached approximately 3.2 million tonnes of eCO₂ (tonnes of carbon dioxide equivalent) in KGHM Polska Miedź S.A. of which approximately 40% are Scope 1 emissions and 60% are Scope 2 emissions. Scope 1 emissions are direct emissions primarily related to the Company’s production activities – in particular, emissions from smelting processes, emissions related to the use of motor fuels by mining vehicles and machinery in mines, and emissions related to the generation of energy from our own sources using natural gas. Scope 2 emissions are indirect emissions associated with the use of electricity and heat purchased on the market.
Comparing the emissions for 2022 to the base year, an 8.9% decrease in Scope 1 emissions and an 18.2% increase in Scope 2 emissions can be observed. The total emissions in Scopes 1 and 2 increased by 5.6% (2.9% yoy). The increase in Scope 2 emissions results from an increase in electrolytic copper consumption.
Greenhouse gas emissions in KGHM Polska Miedź S.A. in 2020-2022 [t eCO₂]
| 2022 | 2021 | 2020 (base year | Change | Change (%) | Change yoy | Change yoy (%) | |
| Scope 1 | 1288052 | 1457899 | 1413129 | -125077 | -8,9% | -169847 | -11,7% |
| Scope 2 | 1912062 | 1651717 | 1617217 | +294845 | +18,2% | +260345 | +15,8% |
| Total emissions (Scope 1 + 2) | 3200114 | 3109616 | 3030346 | +169768 | +5,6% | +90498 | +2,9% |
Direct and indirect emissions from KGHM PM S.A. divisions in 2022 [t eCO₂]
Greenhouse gas emissions in the KGHM Polska Miedź S.A. Group
In 2022, Scope 1 and 2 greenhouse gas emissions in the KGHM Polska Miedź S.A. Group amounted to a total of 4.62 million tonnes of eCO₂, of which approximately 69% were attributable to the Parent Entity. In 2022, the emissions were corrected for international companies and consequently for the entire Group, when the ownership structure of the Sierra Gorda mine was taken into account. When the 2022 Scope 1 and 2 emissions of the Group are compared to 2021, a 3.1% decline is noted.
Greenhouse gas emissions in the KGHM Polska Miedź S.A. Group [t eCO₂]
| KGHM Polska Miedź S.A. | Companies in Poland | International companies | Group | |||||
|---|---|---|---|---|---|---|---|---|
| 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | |
| TOTAL EMISSIONS (Scope 1 + 2) | 3,109,616 | 3,200,114 | 862,797 | 742,119 | 794,136 | 678,385 | 4,766,550 | 4,620,618 |
| Change yoy | 90,498 | -120,678 | -115,751 | -145,932 | ||||
| 2.9 | -14.0 | -14.6 | -3.1 | |||||
| SCOPE 1 – Direct emissions | 1,457,899 | 1,288,052 | 623,757 | 636,416 | 358,611 | 337,120 | 2,440,267 | 2,261,588 |
| SCOPE 2 – Indirect emissions | 1,651,717 | 1,912,062 | 239,040 | 105,703 | 435,525 | 341,265 | 2,326,283 | 2,359,030 |
| Including indirect equivalent emission related to heat consumption: | 0 | 4,917 | 2,957 | 0 | 0 | 4,917 | 2,957 | |
| Including indirect equivalent emission related to electricity consumption: | 1,651,717 | 1,912,062 | 234,123 | 102,746 | 435,525 | 341,265 | 2,321,366 | 2,356,073 |
Direct and indirect emissions from KGHM PM S.A. Group in 2022 [t eCO₂]
Scope 3 greenhouse gas emissions
According to the GHG Protocol A Corporate Accounting and Reporting Standard, Scope 3 includes other indirect emissions that occur along the value chain, such as from the production of raw materials or intermediate products, waste management, transportation of raw materials and products, business travel by employees or use of products by end users.
The GHG Protocol distinguishes more than a dozen categories of GHG emissions within Scope 3, i.e. those arising in the company value chain:
- Purchased raw materials and services (emissions related to the extraction and production of raw materials and services)
- Capital goods (issues related to the production of capital goods)
- Energy and fuel-related emissions not included in Scope 1 and 2
- Upstream – transport and distribution (transport and distribution of products purchased by the reporting company during the reporting period between the supplier and the reporting company by vehicles or equipment not owned or controlled by the reporting company)
- Waste generated as a result of operations (disposal and treatment of waste during the reporting period in facilities that are not owned and controlled by the reporting company)
- Business travel (business-related transport of employees during the reporting period by vehicles that are not owned or managed by the reporting company)
- Employees’ commuting (transportation of employees between their homes and their workplaces during the reporting year by vehicles not owned or operated by the reporting company)
- Upstream – leased assets (issues related to the operation of assets leased by the reporting company (lessee) during the reporting year and not covered by scope 1 and 2).
- Downstream – transport and distribution
- Processing of products sold (Processing of intermediate products sold in the reporting year to customers (e.g. manufacturers) – this calculation would require close cooperation with customers in collecting information on their emissions in Scope 1 and 2.
- Use of products sold
- End-of-life treatment of products sold
- Downstream – leased assets (handling of assets owned by the reporting company (lessor) and leased to others during the reporting year, not included in Scope 1 and 2)
- Franchises
- Investments (investment activities (including equity and long-term investments and project financing) during the reporting year, not covered by Scope 1 or 2).
A calculation of Scope 3 emissions for KGHM Polska Miedź S.A. and the entire KGHM Group was performed in 2022.
The following emission categories are included in the Scope 3 emissions balance:
- upstream activities:
- goods and services purchased,
- investment goods,
- activities related to the use of fuels and energy not included in Scopes 1 or 2 of the balance,
- transport and distribution of input streams,
- business trips,
- employees’ commuting to and from work,
- downstream activities:
- transport of output streams.
Emissions for the category of waste generated in production processes, related to their transport and treatment, have been included as emissions related to purchased services, including waste collection and transport.
Emissions associated with both the lease of assets from external companies and the lease of assets to external companies, due to their limited extent, are insignificant in the balance of greenhouse gases under analysis.
The franchise category for output streams does not apply to companies of the KGHM Polska Miedź S.A. Group.
Scope 3 greenhouse gas emissions in the KGHM Polska Miedź S.A. Group in 2022 [t eCO₂]
| KGHM Polska Miedź S.A. | Polish companies | International companies | Group | |
| SCOPE 3 – Total | 1,112,315 | 339,205 | 397,473 | 1,848,993 |
| Goods and services purchased | 748,057 | 107,160 | 275,255 | 1,130,472 |
| Investment goods | 140,336 | 108,778 | 31,073 | 280,187 |
| Fuel and energy not included in Scope 1 and 2 | 97,824 | 82,570 | 76,334 | 256,728 |
| Transport and distribution – upstream | 91,116 | 23,307 | 8,101 | 122,524 |
| Business trips | 231 | 144 | – | 375 |
| Commuting to work | 20,278 | 17,246 | 6,710 | 44,234 |
| Transport of output streams – downstream | 14,473 | 14,473 |
In Regulatory filing 5/2023 of 8 March 2023, the Management Board of KGHM Polska Miedź S.A. announced the adoption of a resolution on the adoption of the updated content of the “Climate Policy of KGHM Polska Miedź S.A.”. The deadline for the preparation of the full Decarbonisation Program of the KGHM Group, and consequently the deadline for setting climate targets for the KGHM Group, was postponed from mid-2023 to the end of 2024. The decision to postpone the deadline was taken due to the unstable situation in the energy markets, the unpredictable global economic situation and the overall impact of Russia’s aggression against Ukraine on the international situation.
Environmental Policy
GRI
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3-3
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3-3
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3-3
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Own indicator
Preventing and minimizing the environmental and climate impact and rational management of natural resources is of fundamental importance for KGHM Polska Miedź S.A. (“Company”) in respect to sustainable development, satisfaction of stakeholder expectations and accountability to future generations.
The activities of KGHM Polska Miedź S.A., including exploration and mining, processing and metallurgy, are accompanied by technical and organizational activities based on best available techniques, which mitigate our impact on the environment and climate.
Compliance with high environmental standards is critically important for maintaining the Company’s position on the competitive market of copper producers.
In its Strategy, KGHM has placed special emphasis on the sustainability of production, protection of the environment and climate, as well as adoption of Circular Economy concepts, which include increasing the share of materials originating from the secondary market.
By improving the Environmental Management Systems (EMS), which have been in place for many years and are certified in the Metallurgical Divisions, Ore Enrichment Plants and the Tailings Plant, and are based on the PN-EN ISO 14001 standard, on 12 July 2023 the Company adopted the 2nd Edition of the Environmental Policy of KGHM Polska Miedź S.A. approved by the President of the Management Board. Since 2021, the Company has continued the process of implementing an Environmental Management System at the Head Office and in the Mining Divisions also in accordance with the ISO 14001 standard to ensure that the EMS functions in the entire Company.
Completion of the implementation process in these entities is scheduled at the end of 2023, which will be confirmed by performing a group certification by an external certification body.
- ensure continuous prevention and mitigation of adverse impact on the environment and climate, through improvement and technological development of processes,
- modernise and replace machinery and prevent pollution and breakdowns,
- ensure rational use of natural resources, such as land, water, forests,
- reduce the volume of produced waste and continuously develop waste management techniques,
- reduce emissions of pollutants to air, water and soil,
- reduce greenhouse gas emissions, considering the necessary economic aspects, in accordance with the Climate Policy
- recultivate land that has been adversely affected by our activities, in accordance with land reclamation plans
- apply new solutions and innovations responsibly, taking into account their environmental and climate impact in their design and implementation,
- satisfy accepted and justified requirements and expectations of the stakeholders,
- comply with the requirements of applicable law while respecting the ethical principles in force in the KGHM Group,
- respect legally designated protected areas and ensure that any new operations or changes to existing operations are carried out lawfully within the scope of our operating licence,
- do not operate in World Heritage Sites and, where our operations are adjacent to World Heritage Sites, ensure that our activities do not compromise the safety and value of these sites,
- assess and manage threats and impacts to biodiversity and ecosystem services by implementing a hierarchy of mitigation measures,
- conduct an open and respectful dialogue with the local community and relevant authorities for the benefit of the environment and the climate,
- manage chemical substances responsibly in compliance with the EU REACH and CLP regulations. raise professional qualifications and awareness of employees in respect to the environment and climate,
- foster environmentally-friendly attitudes among staff, contractors and the local community. report transparently to all stakeholders on our actual environmental and climate impacts and progress.
The principles adopted in the Environmental Policy of KGHM Polska Miedź S.A. are complied with by all employees of the Company, as well as other persons and entities performing tasks needed for its operation.