The Integrated Report of the LOTOS Group for 2021 was prepared in accordance with the Global Reporting Initiative (GRI) Standards in Core version and with the Accounting Act (Article 49b and Article 55 paragraphs 2b–2e). This report differs from those for previous years due to the application of selected GRI indicators in the version from 2018). The report also takes into account the Task force on Climate-related Financial Disclosures (TCFD) guidelines on environmental reporting. The TCFD recommendations were developed by a group appointed by the Financial Stability Board (FSB) and are the most widely accepted guidelines, supported by financial institutions, addressed to companies for reporting climate change issues. No adjustments were made in the report with respect to the contents of previous reports. The report has not been subject to external verification.
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The Integrated Annual Report of the LOTOS Group provides stakeholders with accurate and complete information on our activities. The report is prepared by Grupa LOTOS on an annual basis, in the form of an integrated report. This report contains information for the period from 1 January 2021 to 31 December 2021. The most recent integrated report was published in June 2021. The previous non-financial statement of Grupa LOTOS and the LOTOS Group was published on 12 March 2021.
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In order to select the indicators, a materiality analysis was carried out, taking into account the opinions of both external and internal stakeholders. The analysis was conducted in February 2022. The statement includes topics of particular importance to the Company’s environment. The Company’s stakeholders completed online surveys. The survey made it possible to indicate topics that were particularly important to individual groups. The topics rated highest by the stakeholders were included in the content of the report. Nearly 200 representatives of employees, business partners, analysts, media, and research centers were invited to participate in the survey. Additional information on the LOTOS Group’s business activities, financial results and social and environmental activities is available at lotos.pl and www.odpowiedzialny.lotos.pl
Significant aspects important to the Company and the environment included in the 2021 report.
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Significant aspects important to the Company and the environment included in the 2021 report
| Topic | Company’s perspective | Stakeholders’ perspective |
|---|---|---|
| Financial performance | 4.4 | 4.6 |
| Preventing corruption (training, identification and resolution of possible incidents) | 3.8 | 3.9 |
| Activities for preventing unfair competition and anti-trust measures | 3.8 | 3.8 |
| Raw materials and consumables used by the company | 4.1 | 3.8 |
| Energy consumption, ways to reduce energy use | 4.3 | 4.1 |
| Water intake and consumption, information on waste water discharge | 4.1 | 3.8 |
| Greenhouse gas emissions and ways to reduce them | 4.2 | 3.9 |
| Activities preventing climate change (in a broader perspective, plans, strategies) | 3.9 | 4.0 |
| Environmental compliance | 4.0 | 3.6 |
| Information on waste and ways of waste management | 4 | 3.7 |
| Employment in the company (employee turnover, benefits) | 4.2 | 4.4 |
| Occupational health and safety | 4.3 | 4.2 |
| Employee training and education, and support | 4.3 | 4.3 |
| Diversity and equal opportunities for women and men with regard to access to positions and remuneration | 4.1 | 3.5 |
| Communication with employees (including the Management Board informing employees about issues important to the company) | 4.3 | 4.4 |
| Engagement of the local community in social activities carried out by the company | 3.6 | 3.8 |
| Company’s activities for society, local market, infrastructure etc. | 3.7 | 3.9 |
| Preparation for civil emergencies, including procedures and resources | 4 | 4.1 |
| Health and safety of clients | 3.8 | 3.6 |
Source: Company
Additional information on the LOTOS Group’s business activities, financial results and social and environmental activities is available at www.lotos.pl and www.odpowiedzialny.lotos.pl The report is available at: https://raportroczny.lotos.pl/.
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Correspondence should be addressed to the Company’s principal office address:
Grupa LOTOS S.A., ul. Elbląska 135, 80-718 Gdańsk
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Questions can be sent to the External Communication Department of Grupa LOTOS S.A. at the following address: media@grupalotos.pl or by phone at: (58) 308 72 29
Compliance with the Accounting Act
| Accounting Act requirement | Section |
|---|---|
| Bussines model (Article 49b sec. 2 item 1) | 13.2.1. |
| Key Non-Financial Performance Indicators (Article 49b sec. 2 item 2): | 13.1. |
| Policies in non-financial areas and their results (Article 49b sec.2 item 3): | |
| enviroment area | 13.3. |
| employee area | 13.5. |
| social area | 13.4. |
| human rights area | 13.4.6 |
| anti-corruption area | 13.5.2. |
| Due diligence procedures (Article 49b sec. 2 item 4) | 13.5.3 |
| Significant non-financial risks and how they are managed (Article 49b sec. 2 item 5) | 13.3.3. |
Source: Company
GRI Index
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| Indicator category | Indicator | Description | Place in the report |
|---|---|---|---|
| GRI-102: General disclosures | |||
| 1. Organizational profile | 102-1 | Name of the organization | |
| 102-2 | Activities, brands, products, and services | ||
| 102-3 | Location of headquarters | ||
| 102-4 | Location of operations | ||
| 102-5 | Ownership and legal form | ||
| 102-6 | Markets served | ||
| 102-7 | Scale of the organization | ||
| 102-8 | Information on employees and other workers | ||
| 102-9 | Supply chain | ||
| 102-10 | Significant changes to the organization and its supply chain | ||
| 102-11 | Precautionary principle | ||
| 102-12 | External initiatives adopted by the organization | ||
| 102-13 | Membership in associations | ||
| 2. Strategy | 102-15 | Key impacts, risks, and opportunities | |
| 3. Ethics and integrity | 102-16 | Values, principles, standards, and norms of behavior | |
| 102-17 | Internal and external mechanisms for obtaining advice on ethics and legal issues as well as matters relating to the integrity of the organisation | ||
| 4. Governance | 102-18 | Governance structure | |
| 102-19 | Delegating authority | ||
| 102-20 | Executive-level responsibility for economic, environmental, and social topics | ||
| 102-22 | Composition of the highest governance body and its committees | ||
| 102-23 | Chair of the highest governance body | ||
| 102-24 | Nominating and selecting the highest governance body | ||
| 102-28 | Evaluating the highest governance body’s performance | ||
| 5.Stakeholder engagement | 102-40 | List of stakeholder groups | |
| 102-41 | Percentage of all employees covered by collective bargaining agreements | ||
| 102-42 | Identifying and selecting stakeholders | ||
| 102-43 | Approach to stakeholder engagement | ||
| 102-44 | Key topics and concerns raised | ||
| 6.Reporting practice | 102-45 | Entities included in the consolidated financial statements | |
| 102-46 | Defining report content and topic boundaries | ||
| 102-48 | Restatements of information | ||
| 102-49 | Changes in reporting | ||
| 102-50 | Period covered by report | ||
| 102-51 | Date of most recent report | ||
| 102-52 | Reporting cycle | ||
| 102-53 | Contact person | ||
| 102-54 | Claims of reporting in accordance with the GRI Standards | ||
| 102-55 | GRI content index | ||
| 102-56 | External assurance | ||
| Specific disdosures on material topics | Degree of reporting | Place in the report | ||
| Economic aspects | ||||
| GRI 201 Economic Performance | 103-1 | Explanation of the material topic and its boundary | ||
| GRI 103: Management Approach | 103-2 | The management approach and its components | ||
| 103-3 | Evaluation of the management approach | |||
| 201-2 | Financial implications and other risks and opportunities due to climate change | Full | ||
| GRI 202 Market presence | 103-1 | Explanation of the material topic and its boundary | ||
| GRI 103: Management Approach | 103-2 | The management approach and its components | ||
| 103-3 | Evaluation of the management approach | |||
| 202-1 | Ratios of standard entry level wage by gender compared to local minimum wage in main business locations | N/A | ||
| GRI 203 Indirect economic impact | 103-1 | Explanation of the material topic and its boundary | ||
| GRI 103: Management Approach | 103-2 | The management approach and its components | ||
| 103-3 | Evaluation of the management approach | |||
| 203-2 | Indirect Economic Impacts | Full | ||
| GRI 205: Anti-Corruption | 103-1 | Explanation of the material topic and its boundary | ||
| GRI 103: Management Approach | 103-2 | The management approach and its components | ||
| 103-3 | Evaluation of the management approach | |||
| 205-1 | Operations assessed for risks related to corruption | Full | ||
| 205-2 | Communication and training about anti-corruption policies and procedures | Partial | ||
| 205-3 | Confirmed incidents of corruption and actions taken | Full | ||
| GRI 206-1 Anti-Competitive Behavior | 103-1 | Explanation of the material topic and its boundary | ||
| GRI 103: Management Approach | 103-2 | The management approach and its components | ||
| 103-3 | Evaluation of the management approach | |||
| 206-1 | Legal actions for anti-competitive behavior, anti-trust, and monopoly practices | Full | ||
| Ethical supply chain | ||||
| GRI 301 Materials | 103-1 | Explanation of the material topic and its boundary | ||
| GRI 103: Management Approach | 103-2 | The management approach and its components | ||
| 103-3 | Evaluation of the management approach | |||
| 301-1 | Materials used by weight or volume | Full | ||
| GRI 302 Energy | 103-1 | Explanation of the material topic and its boundary | ||
| GRI 103: Management Approach | 103-2 | The management approach and its components | ||
| 103-3 | Evaluation of the management approach | |||
| 302-1 | Energy consumption within the organization | Full | ||
| 302-3 | Energy intensity | Full | ||
| 302-4 | Reduction of energy consumption | Full | ||
| GRI 303 Water and effluents | ||||
| GRI 103: Management Approach | 103-1 | Explanation of the material topic and its boundary | ||
| 103-2 | The management approach and its components | |||
| 103-3 | Evaluation of the management approach | |||
| 303-1 | Interactions with water as a shared resource | Full | ||
| 303-2 | Management of water and water consumption | Full | ||
| 303-3 | Water withdrawal | Full | ||
| 303-4 | Water discharge | Full | ||
| GRI 304 Biodiversity | 103-1 | Explanation of the material topic and its boundary | ||
| GRI 103: Management Approach | 103-2 | The management approach and its components | ||
| 103-3 | Evaluation of the management approach | |||
| 304-1 | Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas | Full | ||
| GRI 305 Emissions | 103-1 | Explanation of the material topic and its boundary | ||
| GRI 103: Management Approach | 103-2 | The management approach and its components | ||
| 103-3 | Evaluation of the management approach | |||
| 305-1 | Direct (Scope 1) GHG emissions | Full | ||
| 305-2 | Energy indirect (Scope 2) GHG emissions | Full | ||
| 305-4 | GHG emissions intensity | Full | ||
| 305-5 | Reduction of GG emissions | Full | ||
| 305-6 | Emissions of ozone-depleting substances (ODS) | Full | ||
| 305-7 | Nitrogen oxides (NOX), sulfur oxides (SOX), and other | Full | ||
| GRI 306 Waste | 103-1 | Explanation of the material topic and its boundary | ||
| GRI 103: Management Approach | 103-2 | The management approach and its components | ||
| 103-3 | Evaluation of the management approach | |||
| 306-1 | Water discharge | Not applicable | ||
| 306-2 | Waste by type and disposal method | Partial | ||
| 306-3 | Waste generated | Full | ||
| OG7 | The amount of drilling waste (drilling fluid and drill cuttings) generated and how it is handled and disposed of | |||
| GRI 307 Environmental Compliance | 103-1 | Explanation of the material topic and its boundary | ||
| GRI 103: Management Approach | 103-2 | The management approach and its components | ||
| 103-3 | Evaluation of the management approach | |||
| 307-1 | Non-compliance with environmental laws and regulations | Full | ||
| Social aspects | ||||
| GRI 401 Employment | 103-1 | Explanation of the material topic and its boundary | ||
| GRI 103: Management Approach | 103-2 | The management approach and its components | ||
| 103-3 | Evaluation of the management approach | |||
| 401-1 | Total number and rate of new employee hires and rate of employee turnover by age group, gender and region | Full | ||
| GRI 402 Labor/Management Relations | 103-1 | Explanation of the material topic and its boundary | ||
| GRI 103: Management Approach | 103-2 | The management approach and its components | ||
| 103-3 | Evaluation of the management approach | |||
| 402-1 | Minimum notice periods regarding operational changes | Full | ||
| GRI 403 OHS | 103-1 | Explanation of the material topic and its boundary | ||
| GRI 103: Management Approach | 103-2 | The management approach and its components | ||
| 103-3 | Evaluation of the management approach | |||
| 403-1 | Occupational health and safety management system | Full | ||
| 403-2 | Hazard identification, risk assessment, and incident investigation | Full | ||
| 403-3 | Occupational health services | Full | ||
| 403-4 | Worker participation, consultation, and communication on occupational health and safety | Full | ||
| 403-5 | Worker training on occupational health and safety | Full | ||
| 403-6 | Promotion of worker health | Full | ||
| 403-7 | Prevention and mitigation of occupational health and safety impacts directly linked by business relationships | Full | ||
| 403-8 | Workers covered by an occupational health and safety management system | Full | ||
| 403-9 | Work-related injuries | Full | ||
| 403-10 | Work-related ill health | Full | ||
| GRI 404 Training and Education | 103-1 | Explanation of the material topic and its boundary | ||
| GRI 103: Management Approach | 103-2 | The management approach and its components | ||
| 103-3 | Evaluation of the management approach | |||
| 404-1 | Average hours of training hours per year per employee | Full | ||
| 404-2 | Programs for upgrading employee skills and transition assistance programs | Full | ||
| 404-3 | Percentage of employees receiving regular performance and career development reviews | Full | ||
| GRI 405 Diversity and Equal Opportunity | 103-1 | Explanation of the material topic and its boundary | ||
| GRI 103: Management Approach | 103-2 | The management approach and its components | ||
| 103-3 | Evaluation of the management approach | |||
| 405-1 | Diversity of governance bodies and employees | Full | ||
| GRI 406 Local Communities | 103-1 | Explanation of the material topic and its boundary | ||
| GRI 103: Management Approach | 103-2 | The management approach and its components | ||
| 103-3 | Evaluation of the management approach | |||
| 406-1 | Total number of incidents of discrimination and corrective actions taken | Full | ||
| GRI 416 Health and Safety of Clients | 103-1 | Explanation of the material topic and its boundary | ||
| GRI 103: Management Approach | 103-2 | The management approach and its components | ||
| 103-3 | Evaluation of the management approach | |||
| 416-1 | Assessment of the health and safety impacts of product and service categories | Full | ||
| Process-Related Security | ||||
| GRI 416 Customer Health and Safety | OG13 | Number of process safety incidents, by type of activity | ||
Compliance with TCFD recommendations
| Recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) | Section |
|---|---|
| CORPORATE GOVERNANCE | |
| Description of the management board’s oversight of climate-related risks and opportunities | Climate change strategy |
| Description of the management board’s role in assessing and managing climate-related risks and opportunities | Climate change strategy |
| STRATEGY | |
| Description of the climate-related risk and opportunities the organization has identified in the short, medium and long term | Opportunities and risk associated with climate change |
| Description of the impact of climate-related risks and opportunities on he organization’s business operations, strategy and finances. | Opportunities and risk associated with climate change |
| Description of the resilience of the organization’s business model and strategy under various climate-related scenarios (including a scenario that includes an increase in average temperatures of two degrees Celsius or less) | Issue not reported |
| RISK MANAGEMENT | |
| Description of processes for identifying and assessing climate-related risks. | Opportunities and risk associated with climate change |
| Description of processes for managing climate-related risks. | Opportunities and risk associated with climate change |
| Description of how the processes for identifying, assessing and managing climate-related risks are integrated into the organization’s overall risk management | Opportunities and risk associated with climate change |
| INDICATORS AND TARGETS | |
| Indicators used by the organization to assess climate-related risks and opportunities in accordance with its risk management strategy and processes. | Opportunities and risk associated with climate change |
| Scope 1, 2 and, if relevant, 3 greenhouse gas emissions and description of associated risks. | Atmospheric emissions |
| Description of the organization’s stated objectives for managing climate-related risks and opportunities and the results of meeting those objectives. | Climate change strategy |
