Sustainable development
and social responsibility

Sustainable development is a philosophy which combines an aim to achieve strong economic performance with concern for the social and natural environment.

NATURAL ENVIRONMENT

KEY ENVIRONMENTAL INVESTMENTS

The installations of flue-gas desulfurization and reduction of nitric oxide emissions were started up in EC Wrocław in order to comply with the EU Directive on industrial emissions in force from 1 January 2016. These investments considerably influenced the improvement of air quality – emission of sulphur oxides decreased 5 times, and emission of nitric oxides decreased 3 times.

The demolition of 120 meter high concrete chimney dated 1971 was part of agreement between KOGENERACJA S.A. and municipal authorities during the flue-gas desulfurization installation construction. The chimney was supposed to be put out of order after the modern installations starting-up.

The demolition works started in May 2017 and was divided in two stages. First, the inside layer of a chimney was removed. Then, the platform was installed inside together with the dedicated crusher which disassembled the walls piece by piece. This way of demolition was chosen as it was executed next to running site installations of CHP Wrocław site.

The chimney demolition works were accomplished within five months. This project was one of the biggest challenges for the Company due to its complexity and as it had to be effectuated with no perturbation for the site production operations.

 

ACTIONS FOR BIODIVERSITY

Together with external institutions, KOGENERACJA delivered the following initiatives in the area of environmental education:

• The programme titled Connecting Wrocław’s historical buildings to the heating network under the KAWKA programme. KAWKA is a programme funded by the National Fund for Environmental Protection and Water Management (NFOŚiGW) and local authorities that seek to eliminate low emission sources and improve air quality in Wrocław.
• The promotion of network heat as the best alternative to coal-fired furnaces and disseminated knowledge about the negative effects of low emissions, including via trainings for building managers, meetings with housing communities and participation in events organised in the Nadodrze residential district (where the EC Wrocław is located and where there are many buildings that use solid fuel furnaces).
• Continuation of cooperation with the Lower Silesian Ecological Club (lessons on environmental protection in Wrocław's primary and lower secondary schools, ecological workshops for school students devoted to the environmental aspects of network heat, co-organisation of the Ecological Competition for students from Wrocław’s lower secondary schools).

COOPERATION WITH HOUSING COOPERATIVES AFTER OBTAINING WHITE CERTIFICATES

KOGENERACJA S.A. continued its efforts to improve the energy efficiency of both its own assets and those of heat end users. The projects were carried out in following areas: modernisation of heating networks and pipes, modernisation of the compressor facility, buildings energy efficiency improvement by modernisations, modernisation of the industrial site, replacement of low-efficiency heat sources as well as conversion of local low-efficiency heat sources into modern substations.

In 2017, KOGENERACJA S.A. continued its efforts to improve the energy efficiency of both its own assets and those of heat end users. 6 collective applications were presented in order to obtain the energy efficiency certificates in the tendering procedure announced by the President of the Energy Regulatory Office. The total value of applications amounted to 490 toe [tonnes of oil equivalent], including 244 toe for improvement of energy using in Company’s assets. The projects (effectuated and planned) include: modernisation of lighting and work power equipment, energy efficiency improvement as well as replacement of old low-efficiency heat sources.

SOCIAL ENVIRONMENT

OUR VALUES

The Company’s social responsibility follows the principles of Sustainable Development and is embodied by the PGE Group Values: Respect, Responsibility and Solidarity.

* Programme of Aid for Socially Sensitive Customers for the residents of Wrocław and Siechnice. The basis of the programme is the agreements with the authorities of Wrocław and the Siechnice Municipality signed in 2017. KOGENERACJA S.A. supports its customers in paying their heat bills. The programme is addressed to persons in difficult financial conditions and to care and educational facilities that have heat purchase contracts with the Wrocław-based heat producer. The distribution of funds is decided by the local Social Aid Centres.

ETHICS COUNCIL

Composed of representatives of the Company’s employees, the Ethics Council has been in operation since 2004. It is a social organisation that operates outside the Company’s formal structures. The task of the Ethics Council is to promote ethical attitudes and behaviour among employees.

In January 2018, the Management Board of KOGENERACJA S.A. adopted the PGE Polska Grupa Energetyczna Group’s Code of Ethics. A Corruption and fraud prevention policy and Anti-bullying regulations have also been implemented.

RESPECT INDEX

The Warsaw Stock Exchange announced the new composition of its responsible companies index on 14 December 2017. KOGENERACJA S.A. was named among the most socially responsible businesses on the Warsaw Stock Exchange for the eight time running.

OTHER INITIATIVES

The Company was among the 38 companies awarded by the Polityka weekly with the White Leaf of CSR, in the sixth ranking of socially responsible companies published in 2017. The award is conferred on the companies that declare implementation of all the key management categories recommended by ISO 26000 and constantly improve their operations in this regard to manage the impact of their organisations more effectively.

As a member of the UN Global Compact since 2014, KOGENERACJA S.A. has undertaken to promote, adopt and apply, in all spheres of its activity, the standards and principles applicable to human rights, labour, environment and anti-corruption.

JÓZEF PUPKA FOUNDATION

Established in 2005 in honour of the first President of KOGENERACJA S.A., the Józef Pupka Foundation pursues a mission of helping talented college and university students from financially disadvantaged backgrounds and promoting education among young people whose access to educational opportunities is limited. In 2017, the Józef Pupka Foundation awarded scholarships to 24 Polish students.

FINANCIAL SUPPORT

In 2017, the Company provided financial support to the following social, scientific, economic and industry organisations:

1. Support Programme for Vulnerable Customers
   • the Municipalities of Wrocław– Vulnerable Customers
   • the Municipalities of Siechnice – Vulnerable Customers
   • the Siemacha Foundation
   • the Agora Foundation – Santa Claus Factory
   • Polish Humanitarian Action
   • „Together with a child” Association
   • Spring Association „Noble Parcel”
   • Wrocław Centre of Care and Education
   • Homo - Sacer Foundation
2. Protection and promotion of health and healthy, active lifestyle
   • the Lower Silesian Integration Forum
   • the KARAN Foundation for Helping Addicted Persons
   • the Energetyk Seniors Association
   • the Rescuing children with cancer Foundation
   • the Polish Society of Fight against Cystic fibrosis
   • the Care and Concern Foundation
   • the Sports and Tourism Association in KOGENERACJA S.A.
3. Supporting the education of young people in financial difficulties
   • the Józef Pupka Foundation
   • the Youth Social Therapy Centre no. 2 in Wrocław
4. Organisations for integration of the disabled
   • Educational project Together we change the world with the L’Arche
   • the L’Arche Foundation (help people with intellectual disabilities)
   • the A Jednak Association (help children with cerebral palsy)
5. Other organisations
   • the Mining Family Foundation
   • the Wroclaw University of Technology Foundation

PROMOTING ACCESS TO ENERGY AND ECO-EFFICIENCY

• The Company is seeking to attract new customers to its district heating network. We offer to supply both new and existing residential buildings, as well as small and large enterprises, with heat through the district heating system in Wrocław and the Municipality of Siechnice as an alternative to heat sources such as oil, gas and coal.
• Our priority is to connect coal-heated buildings to the district heating network. Conversion to district heating contributes to reducing low-stack emissions in city centres by eliminating emissions of exhaust fumes and dust from local sources.
• In 2017, the Company has continued the energy efficiency support projects. Within the 5th tendering procedure announced by the President of the Energy Regulatory Office, we obtained 8925 toe [tonnes of oil equivalent] savings due to efficiency improvement, including 7706 toe for external projects and 1219 toe for projects that have been completed on the own assets. We have also presented 6 applications of ca. 490 toe of savings per year.
• We are also engaged in activities aimed at reducing heat transmission losses and increasing the reliability of supply. These activities include the following:
  • Upgrading company facilities and district heating networks in the Siechnice Commune
  • Upgrading company power grids and the SN 20 kV switchgear station at EC Zawidawie

TRIPARTITE AGREEMENT FOR SUSTAINABLE DEVELOPMENT OF WROCŁAW

In 2017, KOGENERACJA S.A., Fortum and the Wrocław authorities were working together on the local heat market within the Sustainable Development Partnership Agreement. The cooperation of these entities was focused mainly at counteracting the impact low emission.

The contracting parties have worked to implement projects that will increase the availability of district heating to residents, i.e. support of Municipality, Fortum and KOGENERACJA for housing associations in the process of replacing the individual furnaces in the buildings for the new installations of central heating and hot tap water. Larger access to network heat will work to improve air quality in the city.