Integrated Annual Report 2020

Activities for local communities

Relationships with local communities living in our areas of influence are an important element of the LOTOS Group’s social responsibility.

We feel responsible for these communities. More information about projects for local communities is included in the section dedicated to volunteer initiatives.

Key programmes implemented by the LOTOS Group:

Since 2004, at the initiative and with the support of the Polish Ski Federation, we have been organising the National Programme for the Development of Ski Jumping and Nordic Combined, LOTOS Looking for the Master’s Successors. It is the largest sport and social project in the history of Polish skiing. All major clubs in Poland with a ski jumping and Nordic combined section are involved in the programme. As part of the programme, LOTOS Cup competitions also take place. The training programme aims at searching for young talents, supporting their development, equal opportunities and eliminating deficits in the area of sports.

One of the biggest football training programmes in Poland. The project was launched in 2012. As part of the Football Future with LOTOS programme, young football players and coaches are able to develop their skills at the LG Football Academy and at one of the 15 football centres. The programme’s mission is not only to acquire skills, but also to shape a pro-health and patriotic attitude. The Grupa LOTOS sponsors, among other things, purchase of sports equipment, football camps, salaries of coaches, rental of pitches and sports scholarships for the most talented players.

In 2009, the Polish Tennis Association (PZT), following the trends of the International Tennis Federation (ITF), introduced the “Tennis 10” programme for children aged 5–10. In 2019, the National Tennis Popularisation Programme — LOTOS Rackets (NPUT — LOTOS Rackets) was established. It is the third programme implemented thanks to cooperation with the LOTOS Group, one of the largest support programmes in Polish sports and the largest one in Polish tennis. Thanks to NPUT — LOTOS Rackets, the PZT continuously gains players in subsequent age categories from U10 through U12, U14, U16 up to the LOTOS PZT Team, which includes, among others, the current Polish Champions — Magdalena Fręch and Kacper Żuk. The National Tennis Popularisation Programme ensures programme stability and development of children and young people in sports. It is an investment in the best players, including from less affluent families.

The National Tennis Popularisation Programme — LOTOS Rackets supports more than 100 clubs. During each of the previous three editions of the National Tennis Day, also supported by the LOTOS Group — the flagship project of the Polish Tennis Association — children from the National Tennis Popularisation Programme — LOTOS Rackets were the largest group (always comprising more than half a thousand people).

The LOTOS programme — Masters in seatbelts, carried out since 2014, familiarises car passengers with safety rules, good habits concerning the correct fastening of seatbelts, as well as installation of child safety seats. Since the programme was launched, more than 8 thousand individual coaching sessions for drivers and passengers have been provided.

In 2020, the first pilot edition of the new Masters on the road programme was also organised. It is a multi-aspect programme aimed at educating and involving young drivers in efforts to improve road safety. The ambassador of both programmes is the World Rally Championship runner-up, Kajetan Kajetanowicz.

Talents from Czechowice-Dziedzice, a town with passion, is a joint undertaking of the Grupa LOTOS, the LOTOS Foundation and the municipality of Czechowice-Dziedzice. It is addressed to primary school students who are interested in humanities and arts or exact sciences. The aim of the programme is to encourage students to expand their knowledge on their own and to shape project-oriented way of thinking.

Since 2013, the Grupa LOTOS has been a patron of the E(x)plory programme, organised by the High Tech Foundation, Poland’s largest initiative that supports talented young people in implementing innovative scientific projects and promotes their achievements on a global level. Since the programme was launched, a community of more than 2,400 young innovators has been created, who submitted more than 1,500 scientific projects and inventions to the E(x)plory competition. The unique value of E(x)plory is direct contact between young talents and scientific, business and social innovation experts. E(x)plory ensures talent development through traineeship, mentoring and grant programmes and searches for talents through by organising E(x)plory Festivals in schools and regions. During 9 edition, 59 events for enthusiasts of innovation and new technologies have taken place. More than 40 thousand people took part in them.

Since 2009, the Grupa LOTOS has been organising the Direction Baltic Programme together with the partners: the Gdańsk University Development Foundation, the UG Maritime Station in Hel and the UG Biological Station in Sobieszewo. The Programme includes measures to conserve the biodiversity of the Baltic Sea, including the endangered species of the harbour porpoise, known as the “Baltic dolphin”, and the grey seal. In addition, a lot of emphasis has been placed on environmental protection education and spreading awareness of the issue of plastics and micro-plastics in the Baltic Sea.

In addition to the indisputable benefits of the development of motorization, we must also deal with the negative consequences of this phenomenon, which are accidents. One of the challenges we have taken on with the LOTOS Group is to support young drivers in improving their skills. The basic pillar of our activity is a continuous driving training.

The „Masters of the Road” program is dedicated to people who have just passed the driving test. We want to appreciate the skills they have acquired so far and maintain the positive habits, they have developed during the course. People, who have driving license for maximum two years, can also improve their skills with us. The training is free of charge, provided with experienced driving instructors. Some valuable prizes to win are available for the future „Masters of the Road”.

Jacek Zalewski
Krajowe Centrum Bezpieczeństwa Ruchu Drogowego

Headed for the Baltic is an educational programme run by Grupa LOTOS in partnership with the University of Gdańsk Development Foundation and the Professor Krzysztof Skóra Marine Station of the University of Gdańsk. We staged a number of awareness raising and educational events together in 2020 to promote knowledge about the Baltic Sea and its inhabitants. Information on the presence of plastic in the marine environment, biology, ecology, threats to and the need for conservation of the harbour porpoise and the seal reached over 200,000 people via the Internet. We helped raise awareness of the need to protect marine wildlife among over 170,000 visitors to the seal sanctuary in Hel.

Monika Selin
Coordinator of the FRUG Blue School Educators Team at the Professor Krzysztof Skóra Marine Station of the Institute of Oceanography, University of Gdańsk.

We ran our flagship Explory 2020 project, which is dedicated to promoting young scientists and their achievements, fully online, which was a great challenge but also put the wind in our sails. Together with Explory’s patron Grupa LOTOS we prepared five online events for 9,589 participants and created over 200 educational videos, attracting more than 30,000 viewers of Explory events online. Young innovators participating in the Explory Competition did a great job preparing and presenting their projects online. I believe that together we can meet any challenge.

Joanna Gogolińska
Advanced Technology Foundation

We support Polish scientists

The Grupa LOTOS’s Arctic fuel will help Polish scientists in Spitsbergen in their research on climate change. This is the result of winning the tender for the supply of fuel to the Polish Academy of Sciences (PAN). 70 thousand litres of diesel fuel with improved low temperature properties will reach the Polish Polar Station — Hornsund in Spitsbergen. LOTOS and the Polish Academy of Sciences have been cooperating for many years. The concern’s representatives have taught scientists, among others, how to operate marine research equipment. PAN members, in turn, analyse how nature is changing and how to protect the environment.

of diesel fuel will reach the Polish Polar Station — Hornsund in Spitsbergen

Involvement in other Group companies

During the second half of the year, LOTOS Paliwa assisted children suffering from cancer as part of the “Golden Ribbon” campaign, organised by the “Cape of Hope” Foundation and the “Help for Children with Cancer” Foundation. PLN 0.10 from each cup of coffee purchased at LOTOS petrol stations between 22 September and 21 November was allocated to support the effective treatment of children with cancer. The initiative was accompanied by an information campaign promoting coffee purchase at LOTOS stations. Thanks to this, over PLN 100 thousand was donated in support of ill children.

Activities of LOTOS Kolej in 2020:

  • Cash donation for St. Bridget’s Church in Gdańsk to organise a concert — LOTOS Kolej made a cash donation for St. Bridget’s Church in Gdańsk to organise the Christmas Carol Concert, featuring the band Golec uOrkiestra. The concert was organised for the residents of Gdańsk, primarily the less affluent, seniors, large families, i.e. for social groups who cannot afford to participate in paid cultural events (attending the concert was free).
  • A cash donation for less affluent railway employee families — LOTOS Kolej, together with the LOTOS Foundation, participated in a charity campaign organised by the Foundation of the PKP Group. By making a cash donation, the company supported ten less affluent families of railway employees by providing them with funds for the purchase of computers with appropriate software that enabled the children to participate in school activities remotely.
  • An in-kind for the State Fire Services in Poznań — LOTOS Kolej is aware that in order for railway travel to be safe, appropriate equipment of emergency services must be ensured. To express its gratitude for eliminating the risk of fuel leakage, the company made an in-kind donation for the State Fire Services station in Poznań in the form of specialised equipment for retrofitting fire engines and helping in rescue operations (including an inspection camera, webbing or adapters).
  • Children’s Day Competition My own train LOTOS Kolej — since 2010, the Railway Technology Day has been organised every year at LOTOS Kolej on Children’s Day, with more than 1,000 participants. In 2020, due to the coronavirus pandemic, it was impossible to organise the event, but the company held the My own train LOTOS Kolej competition, during which children of the employees of the entire LOTOS Group could send their works of art. The winners visited the Train Driver Training Centre with Pomerania’s state-of-the-art railway vehicle simulator.

LOTOS in the fight against the coronavirus

2020 was a challenging year for both business and social activities. It was the result of the global coronavirus pandemic and the changes it caused. In order to be able to provide customers with uninterrupted access to its services in a safe and responsible manner, LOTOS had to quickly implement new action plans. Thanks to prompt reaction and efficient performance of tasks by our employees, LOTOS petrol stations remained available throughout this time and, above all, safe for our customers. At this difficult point in time, the concern also decided to support the Polish healthcare system and people directly involved in the fight against the pandemic — medical and uniformed services. In a show of solidarity, all the State-owned companies actively and joined in the fight against the spread of the coronavirus epidemic. These campaigns were coordinated jointly with the Ministry of National Assets. Moreover, LOTOS did not forget about its business partners and offered them special facilities.

Safety at LOTOS stations

The network of LOTOS stations comprises more than 510 facilities operating all over Poland. As soon as the state of epidemic emergency was announced, LOTOS Paliwa took steps to ensure continued operation of all the stations. First of all, it was extremely important to ensure the safety of customers and employees. Procedures were implemented on an ongoing basis in accordance with the regulations and requirements of the Ministry of Health, such as the need to use disposable gloves when filling up the car.

As early as in the first days of the epidemic, sales without the need to enter the station building introduced at most LOTOS petrol stations. Where this was not possible, Plexiglas dividers were installed, separating the checkout area from the store. Safe distances were set and the number of customers who can be inside the store at the same time was limited. The employees had sanitiser liquid and masks at their disposal. Disposable gloves were available for both employees and customers. The concern made sure that the network of LOTOS stations was equipped with the necessary safety measures for its customers and employees on an ongoing basis. In order to ensure the maximum safety when establishing work schedules, the principle of no contact during change of teams was introduced.

The biggest challenge for IT in 2020 was to ensure effective remote working arrangements with access to key business and production systems. We swiftly implemented state-of-the-art VPN-based solutions, qualified signature and MS Teams platform with advanced security features and group work support. We adapted the IT infrastructure and support processes to the new business environment.

We launched an IT business model optimisation project to further consolidate the IT function across the Group, drive efficiency and deepen the IT service model. We commenced work on a digital transformation strategy for the Group. We also implemented projects to ensure security and continuity of operations and secure operation of critical applications, such as the rail logistics system. We implemented the LDAR project, awarded first place in the Industry 4.0 leader category of the Gazeta Bankowa monthly’s TechnoBiznes 2021 competition. Completing all these tasks under very challenging conditions further consolidated our team and contributed to building lasting relationships with various business units across the company.

Piotr Stępniewski
IT Management Director

The Grupa LOTOS also launched the #razemraźniej [#merriertogether] initiative. It was a series of posts, implemented by the Grupa LOTOS HR staff, associated with psychological themes (including stress management techniques, teleworking, finding satisfaction in home office work, staying in shape without leaving home).

During the epidemic, the B2B 24 service, which was launched last year and minimises direct contact, proved to work very well. It enables fully self-service purchase of fuel with personal collection. The service is intended for LOTOS franchisees and B2B customers who purchase fuels on a wholesale basis. The web portal created for this purpose enabled complete automation of the service, from the order to the issue of an electronic invoice.

Activities of the Grupa LOTOS

is a campaign by the Grupa LOTOS, the LOTOS Foundation and, at the same time, the concern’s initiative to combat the pandemic. Starting from 1 May, drivers refuelling at LOTOS stations were able to allocate their points from the Navigator programme to coronavirus treatment research. The campaign participants included, among others, athletes and cultural institutions with which the concern cooperates. From the very beginning of the pandemic, the Grupa LOTOS carried out a number of activities aimed at assisting medical institutions and uniformed services. The concern decided to expand its activities and support all Poles staying in their homes due to the ongoing situation — hence the #wDomuTezJestNAJ [#HomeIsAlsotheBEST] campaign.

One of the elements of the campaign was the launch of street-art murals, portraying fragments of life taken away by the epidemic, by the Grupa LOTOS. The five murals located in Gdańsk, Krakow, Poznań, Warsaw and Wrocław presented everyday, ordinary emotions, the expression of which was made so difficult by the coronavirus. Each mural featured symbols of the pandemic — gloves, a mask, face shield, overalls or a tablet. The authors’ common vision juxtaposed the images of ordinary life with out-of-place yet currently necessary objects. The project was the result of cooperation between Polish painters, graphic designers and illustrators.

LOTOS Oil, which produces and distributes oils and lubricants, implemented an aid scheme designed to support its counterparties during the coronavirus pandemic. The Together into the future programme provided for a number of solutions, ranging from the availability of sanitiser liquid to changes in the distribution agreements. At the same time, the company expanded its product portfolio by adding new oils available at lower prices.

The COVID-19 pandemic significantly affected the Polish economy market. LOTOS Oil’s Together into the future aid scheme was developed in the hope of stabilising market conditions and restoring financial liquidity for many companies. As part of the scheme, a number of options for the company’s counterparties were created, in particular associated with the distribution agreement. One of them is the possibility of wholesale purchase of LOTOS Quazar or AURUM motor products with a promotional bonus in the form of vouchers that counterparties could use for food, sanitary, catering or electronic purchases. Entrepreneurs had as many as 100 days to pay their liabilities for the promotional purchase.

  • At the beginning of the pandemic, funds amounting to PLN 5 million were handed over, through the LOTOS Foundation, to four selected medical facilities in Pomorskie and Zachodniopomorskie provinces: the University Centre for Maritime and Tropical Medicine in Gdynia, the Nicolaus Copernicus Provincial Hospital in Koszalin, 7th Navy Hospital with a SPZOZ Outpatient Clinic in Gdańsk and the Independent Public Provincial Integrated Hospital in Szczecin.
  • Six medical facilities from Pomerania received cars from the Grupa LOTOS at their disposal. The purpose of the vehicles was to transport patients, medical samples and materials.
  • 1,500 litres of sanitiser liquid were handed over to the Provincial Emergency Services Station in Szczecin. This helped to secure the operation of the station. All this was done to ensure the safety of employees and patients during a period of intensified activity associated with the fight against the coronavirus. The donation for the emergency services in Szczecin was another initiative by LOTOS Paliwa supporting the actions of sanitary and uniformed services involved in the fight against the coronavirus.
  • In November, according to the decision of Prime Minister Mateusz Morawiecki, LOTOS also became involved (as an investor) in the construction of a temporary hospital in the AMBEREXPO halls in Gdańsk. Within the Grupa LOTOS, there was a team which, in agreement with the voivode, the city, International Gdańsk Fair and the patronage hospital (COPERNICUS Podmiot Leczniczy) determined on the details of the investment. A facility capable of admitting ultimately up to 400 patients combating the coronavirus was ready in early February. The hospital was opened on 8 March 2021. It proved an important safety buffer for the whole system during the peak of the third wave of the pandemic.
  • The Grupa LOTOS handed over several hundred masks to the Provincial Police Headquarters in Gdańsk. The police officers distributed them among tourists and residents at the Sopot pier during the summer holidays. They reminded people about the obligation to cover their mouth and nose in places where a distance of 1.5 m cannot be maintained.
  • As part of the campaign, the Grupa LOTOS and LOTOS Paliwa supported all officers on duty working at the Polish border. As a result of the threat posed by the coronavirus, checks at the Polish border were reintroduced. Officers — uniformed or in marked vehicles — were entitled to a free hot drink or Dynamic beverages at selected LOTOS stations. Similar activities were carried out for the Polish Army, the Emergency Services, the Fire Services, the Police, the City Guard or Customs and Tax Services. They received coffee, tea, hot chocolate or a Dynamic energy drink.
  • The beneficiaries also included the 7th Pomeranian Brigade of the Territorial Defence Force — at selected stations, soldiers from that formation could refuel free-of-charge. Ambulances and other vehicles from 19 single-name infectious disease hospitals were also refueled for free. The concern donated PLN 2 million to these facilities in the form of fuel cards.

In total, the concern allocated PLN 12 million to the fight the pandemic (February 2021).

[LOTOS Paliwa handed over 400 cards with a total value of PLN 2 million, thanks to which ambulances and other vehicles from the selected facilities were able to refuel free-of-charge at every LOTOS station in Poland.

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