ORLEN ORLEN Group 2017
Integrated Report

Integrated Management System and Key Policies

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The ORLEN Group supplies highest-quality products to its customers, while striving to make its operations as neutral to the natural environment as possible, to achieve superior energy efficiency, and to maintain high OHS and information security standards.

Integrated Management System

To deliver on that promise, the Group has the Integrated Management System (IMS) in place. The IMS comprises:

The scope and rules governing the operation of the Integrated Management System are defined in:

  • The Management Systems Book, which defines and describes the individual system processes.
  • System procedures approved by the President of the Management Board – Chief Executive Officer/ Members of the Management Board.
  • Operational procedures/instructions, approved by Directors/Managers, for the processes/areas they supervise.

PKN ORLEN applies a process-based approach, involving identification of the processes which are necessary to ensure compliance of its products and services offered to customers with relevant requirements, while maintaining pro-environmental production methods and pro-environmental approach, and minimising the environmental impact, continuously improving the safety of working conditions, and meeting requirements in all areas relevant to the security of information processed by the Company. In line with a risk-based approach, process owners are responsible for identifying threats (risks) and opportunities that can potentially affect the operation and efficiency of the processes – meeting customers’ requirements and taking appropriate and ‘adequate’ measures. The internal audit system is operated in line with the process-based approach. The improvement measures we take cover internal and external factors and identify opportunities that can be tapped into by the organisation. Any improvements to the Integrated Management System are decided on by the Company’s senior management, in line with the IMS supervision procedure. The procedures in place specify how particular activities are to be carried out in each area.

The precautionary principle, environmental damage prevention and effective workplace safety and information security management are ensured through standardisation and implementation of systemic mechanisms, which also include preventive measures. The precautionary principle is supported by systemic mechanisms that pre-emptively address potential irregularities and are based on process analysis and elements of risk and opportunity assessment. In keeping with the precautionary principle, when conducting business we take measures to prevent any environmental damage.

In 2017, the following key projects were completed with respect to the Integrated Management System:

  • Improvements were made to PKN ORLEN’s certified Integrated Management System.
  • Cooperation with certification bodies with respect to Management Systems supervision continued.
  • Implementation of ICAO guidelines was continued to ensure appropriate quality of the JET A-1 fuel in the logistics chain.
  • Further work was undertaken to implement the Energy Management System based on the ISO 50001 standard.
  • Work was continued to receive certification of the RBI Management System.
  • Integration of the Information Security Management System and the ISMS documentation at PKN ORLEN and selected ORLEN Group companies commenced.
  • Preparations began for conducting information security audits at companies with the IMS in place.
  • The Food Safety Management System was maintained and improved.
  • The ISMS model based on ISO/IEC 27001 was implemented at selected ORLEN Group companies.

Audits − external and internal verification of the Integrated Management System

In 2017, auditors from Bureau Veritas Polska (BV) carried out a surveillance audit of the Integrated Management System with respect to the following Management Systems: Quality Management System, Environmental Management System, Occupational Health and Safety Management System, and Information Security Management System. The audit covered selected fuel terminals (Widełka, Lublin), the production plant and administrative units in Płock as well as selected service stations. Correctness of the System operation was confirmed, and the validity of the certificates of compliance of the Integrated Management System with the requirements of the PN-EN ISO 9001:2009, PN-EN ISO 14001:2005, PN-N-18001:2004, and PN-ISO/IEC 27001:2014 standards was extended. The audit did not reveal any instances of non-compliance. In addition, Bureau Veritas Polska’s auditors carried out a certification audit in accordance with the Renewable Energy Directive.The audit did not reveal any instances of non-compliance, and a certificate of compliance with the Renewable Energy Directive / ISCC EU Certification System was obtained. In 2017, the auditors from the Quality Certification Centre of the Military University of Technology – Poland’s only certification body authorised to issue certificates of compliance with NATO standardisation documents – conducted a surveillance audit of the AQAP-2120 Quality Management System. The audit covered the Płock-based organisational units involved in the manufacture and distribution of motor and aviation fuels. The audit did not reveal any instances non-compliance and the compliance certificate for the AQAP-2120 Quality Management System was extended. Auditors from Polskie Centrum Badań i Certyfikacji S.A. (PCBC) carried out a certification audit of the Production Control System. The audit did not reveal any instances non-compliance, two observations were made, and the compliance certificates for the PCS were maintained.

In 2017, there were 572 internal audits, 14 audits of compliance of the CO2 emissions monitoring system, 13 audits at product vendors and service providers, and 10 audits of the ISCC.

Certificates issued to PKN ORLEN

Management Systems at ORLEN Group companies

In 2017, work continued to standardise Management Systems across the ORLEN Group with a view to harmonising the management model with PKN ORLEN’s growth strategy, in which Value creation, People, and Financial Strength remain the pillars of growth until 2021.
In 2017, the Group companies implemented IMS initiatives designed to optimise this area, based on the Management System Guidelines for the ORLEN Group and the certification timetable for their respective Management Systems.
The IMS policies are in place at the following key companies of the ORLEN Group: ORLEN Lietuva, Grupa UNIPETROL, ANWIL, Basell ORLEN Polyolefins, ORLEN Laboratorium, ORLEN EKO, ORLEN Asfalt, ORLEN Serwis, ORLEN Upstream, IKS Solino, ORLEN KolTrans, ORLEN OIL, ORLEN Administracja, ORLEN Paliwa, ORLEN Południe, ORLEN Centrum Serwisowe, ORLEN Aviation, ORLEN Centrum Usług Korporacyjnych, and ORLEN Ochrona.

Overview of key policies and their outcomes with respect to non-financial matters

  1. SOCIAL POLICIES

The policies and internal regulations concerning social issues include:

  • Core Values and Standards of Conduct, offering guidance on relations with customers, shareholders, local communities, trading partners, competitors and other external stakeholders. The document has been implemented at all companies of the ORLEN Group.
  • CSR Strategy for 2015–2017, assuming value growth aligned with the interests of external stakeholders and relying on sustainable and responsible use of resources. The strategy is implemented in three areas: Organisation (building long-lasting relations with employees), Close Environment (developing social conscience and responsibility in trading partners and customers through sharing best practices and knowledge, and implementing most exacting standards), Distant Environment (implementing the strategy, promoting innovation and setting top industry standards in business ethics and environmental protection).
  • Charitable Giving Policy, setting the directions of charitable activities, in accordance with two priorities: ORLEN for life and health (supporting medical and professional institutions, healthcare facilities, professional and voluntary rescue services and entities working to improve road safety) and ORLEN for education and youth development (supporting educational and science initiatives, young talents, and foster families). The support is offered directly by the ORLEN Group and indirectly, through the ORLEN GIFT FROM THE HEART Foundation, the ANWIL for Włocławek Foundation, and the Unipetrol Foundation.
  • Supplier Code of Conduct, implemented across the ORLEN Group and including standards to follow when selecting suppliers, e.g. considering whether the supplier ensures safety in the workplace, cares for the health of employees, offers fair and non-discriminatory working conditions, and respects human rights.
  • Restructuring agreement with trade unions, defining the rules of cooperation between social partners in restructuring processes and the employees’ rights in such processes.
  • Marketing Code, dealing with such issues as advertising, promotion, sales, sponsorship and image building. It is an important element of the marketing communication in developing relationships with stakeholders.

The objective of the above policies is to constantly strengthen the sense of shared responsibility for implementing CSR ideas within the organisation and promote stakeholder responsibility and engagement.

  1. EMPLOYEE RELATION POLICIES

The existing policies and internal regulations regarding employee relations include:

  • Core Values and Standards of Conduct – providing for such issues as occupational health and safety, fair and friendly working conditions, communication and cooperation, as well as equal employment, promotion, development and in-service training opportunities.
  • Collective Bargaining Agreements and Work Rules – Collective Bargaining Agreements of those ORLEN Group companies in Poland that have executed such documents, and all companies' Work Rules have been prepared in accordance with the applicable regulations and the relevant standard adopted at PKN ORLEN. The Collective Bargaining Agreements are entered in the registers kept by the competent Regional Inspectors of the National Labour Inspectorate. In 2017, the following ORLEN Group companies had Collective Bargaining Agreements in place: ORLEN Asfalt, Basell Orlen Polyolefins, ORLEN Aviation, ORLEN Laboratorium, ANWIL, IKS Solino and ORLEN Centrum Usług Korporacyjnych. Collective Bargaining Agreements have been also executed at companies of the Unipetrol Group and ORLEN Lietuva. Those companies that have not executed Collective Bargaining Agreements, have Remuneration Rules in place; in the case of companies based in the Republic of Poland, the Remuneration Rules have been drafted in accordance with the provisions of Part III of the Polish Labour Code.
  • The ORLEN Group’s Human Resources Management Policy for 2013–2017 – it defines the key priorities and tasks in the HR area, in line with PKN ORLEN’s strategy. The policy explains how corporate culture is to be built within the Group and describes HR processes and tools, as well as employment efficiency management.
  • Bonus System Rules – the PKN ORLEN Management Board, Management Boards of other ORLEN Group companies, as well as directors reporting directly to the Management Board and PKN ORLEN employees are covered by bonus systems. The key positions at the ORLEN Group are rewarded based on the annual bonus system: the bonus is granted for achieving individual qualitative and quantitative targets, which are reviewed after the end of the year for which they were set. Other PKN ORLEN employees are rewarded based on one of the following three bonus systems: a quarterly/annual, quarterly, or monthly system. In 2017, the bonus system rules for members of the PKN ORLEN Management Board and the Management Boards of other ORLEN Group companies were adjusted to meet the requirements of the Act on Rules of Remunerating Persons who Manage Certain Companies of June 9th 2016. For detailed information on the remuneration and bonus policies for members of the PKN ORLEN Management Board, refer to the Directors' Report on the ORLEN Group's operations in 2017.
  • Corporate Social Benefit Activity Rules –define the scope of social benefits and the rules for granting such benefits to the current and former employees of PKN ORLEN and its subsidiaries covered by agreements on the joint social benefits programme, as well as the employees’ family members. Additionally, PKN ORLEN offers a uniform employee benefits package to employees of all ORLEN Group companies participating in the joint social benefits programme.
  • Employee Pension Plan – guarantees additional financial resources to PKN ORLEN employees, to be used during future retirement. The basic contribution under the scheme is financed by the Employer.
  • Policy for Supporting Employees in Difficult Personal Circumstances – this policy defines the rules for supporting employees affected by difficult personal circumstances, in line with the ‘Core Values and Standards of Conduct’ applicable at the Group. While providing support, the employer takes into account the type of occurrence, type and scale of damage or loss, and personal and financial situation of the affected employee. Depending on the above criteria, the employee may be provided with financial, medical, psychological or legal assistance.
  • Internal Order on Programmes Dedicated to Employees, Their Families and Former Employees – sets out the rules governing activities addressed to employees celebrating their long service or those retiring, as well as pensioners celebrating their 70th, 75th, 80th, 85th and following birthdays. As part of the Family-Friendly Employer programme, employees who are parents are offered benefits such as additional days off to take care of a child, child admission to the nursery, gifts to parents of a new-born baby, etc.
  • Comprehensive Prevention System – the principal element of the OHS Management System, which consists of internal organisational documents related to occupational health and safety, fire and chemical safety, radiation, technical and process safety.
  • Policy Defining the Work Conditions and Rules for the Disabled – the objective of this policy is to provide the disabled with equal opportunities in the workplace, taking into account the type and degree of disability, enabling disabled persons to obtain and maintain adequate employment, return to work, receive promotion, as well as support the disabled in independent living and their integration with other employees.

The policies implemented at the ORLEN Group are designed to promote a friendly and safe work environment, as well as a modern management culture. We promote solutions that facilitate maintaining a good work-life balance. Our personal development initiatives, employee benefits, the wide range of training courses, and knowledge sharing culture are highly rated not only by employees themselves, but also by independent expert panels, which invariably distinguish PKN ORLEN as Poland's leading employer (for instance: top position in the ranking of ‘Most Sought-After Employers in the Opinion of Professionals and Managers', ‘The World’s Most Ethical Company’ title, and ‘Top Employer Polska’ certificate).

  1. ENVIRONMENTAL POLICIES

The key internal regulations and system procedures in the area of environmental protection include:

  • Procedure for environmental monitoring and keeping records of the Responsible Care Programme indicators – ensures proper monitoring of air, groundwater on and in the vicinity of the premises of the Płock production plant and on the premises of fuel terminals, as well as of sewage generated at fuel terminals. Records of the Responsible Care Programme indicators are kept as part of the Responsible Care Framework Management System implemented at the Group.
  • Integrated permits for petrochemical, refining and CHP units in Płock and the PTA plant in Włocławek, as well as an auxiliary unit of wastewater treatment plant located on the premises of the Płock production plant.
  • CO2 procedure – lays down the principles of the carbon dioxide emission monitoring and reporting system.
  • Waste management procedure – defines activities related to recording, storage, collection and disposal of waste generated in refining, power generation, storage, auxiliary and security processes.

The key ORLEN Group companies have Integrated Management Systems in place, which include an Environmental Management System implemented and maintained in accordance with the ISO 14001 standard as their integral part. The Group companies also follow Environmental Management System Policies, providing for an obligation to protect the environment, which includes pollution prevention, and other specific obligations relevant to the operations of individual companies. These policies also include a requirement to comply with the law and other external and internal requirements.

Environmental Management Systems ORLEN Group companies
ISO 14001 certification PKN ORLEN; ORLEN Lietuva Group; UNIPETROL Group; ANWIL; Basell ORLEN Polyolefins; ORLEN Południe Group; ORLEN Oil, ORLEN Paliwa; ORLEN Asfalt; ORLEN Serwis; ORLEN Upstream; ORLEN Laboratorium; ORLEN Eko; IKS Solino; ORLEN KolTrans; ORLEN Administracja; ORLEN Centrum Serwisowe.
Elements of the environmental management system implemented as part of the JIG industry standards requirements ORLEN Aviation Sp. z o.o.
Implemented environmental protection principles, including on waste management control ORLEN Centrum Usług Korporacyjnych; ORLEN Ochrona.
  1. HUMAN RIGHTS POLICIES

The human rights policies and internal regulations include:

  • Core Values and Standards of Conduct – primarily a guide to internal relations as well as relations with the Company’s external stakeholders, including trading partners, local communities, the natural environment and competitors. The document contains overall guidance on ethics-related matters, including fair treatment of all employees and customers regardless of their age, sex, position, religion, nationality, convictions or beliefs, as well as provisions on the obligation to comply with the rules of fair competition, transparency of business activities, mutual respect, and professionalism.
  • Ethics Officer monitors compliance with the ‘Core Values and Standards of Conduct’, guarantees that employees, employers and all stakeholders can freely report violations, and helps in difficult labour issues.
  • Collective Labour Agreement – defines the conditions which should be met by the substance of an employment relationship, and the rules of remunerating and granting other benefits to employees. ORLEN Group Report on Non-Financial Information of ORLEN Group and PKN ORLEN S.A. for the year 2017 18.
  • Workplace Bullying Policy – implemented at PKN ORLEN in 2017 and disseminated among the ORLEN Group companies for implementation, it sets out the rules to be followed when an instance of workplace mobbing has been reported and defines the rights and obligations of employees in such situations.
  • CSR Strategy for 2015–2017 – as part of the initiatives in the ‘Organisation’ area, activities were undertaken to build lasting relations with employees based on diversity, and to ensure good work-life balance.

The ORLEN Group’s policies covering broadly meant human right matters are designed to support development of culture based on trust and fair treatment of everyone regardless of sex, age, job position, length of service, trade union membership, religion, nationality, belief, physical appearance or sexual orientation. In 2017, for the fourth year running, PKN ORLEN received the prestigious title of ‘The World’s Most Ethical Company’, awarded by an independent international panel of experts at the US Ethisphere Institute.

  1. ANTI-CORRUPTION AND ANTI-BRIBERY POLICIES

The anti-corruption and anti-bribery policies and internal regulations include:

  • Core Values and Standards of Conduct – describing standards of conduct in situations related to accepting or offering benefits representing financial gain.
  • Enterprise Risk Management Policy and Procedure – aimed at maintaining risk within set limits.
  • Rules of Control Procedures Performed by the Audit, Control and Enterprise Risk Management Office – they define the rules of internal control at PKN ORLEN and its subsidiaries. The rules provide for all aspects of the process with regard to rationale for particular activities, good management, reliability, legality, organisational efficiency and correct conduct.
  • ORLEN Group Regulatory Risk Management Policy – governs regulatory risk management processes resulting from existing or proposed legal acts, excluding tax risks.
  • Anonymous Misconduct Reporting System – the system provides a framework for identifying potential irregularities and instances of misconduct, which can be reported via indicated information channels.
  • Corporate Governance Policy – it includes instructions on the selection of candidates for members of the ORLEN Group companies' governing bodies and the rules for setting and reviewing Individual Bonus-Related Tasks for members of the management boards of ORLEN Group companies. It provides for full corporate supervision over the ORLEN GIFT FROM THE HEART Foundation.
  • Rules for Managing the Risk of Losing Information Security Attributes – information and guidelines on the process of managing the risk of losing security attributes.
  • Supplier Code of Conduct – defines ethical standards that must be met by the ORLEN Group suppliers, includes guidance on activities related to counteracting corruption, and promotes high ethical standards in business activities.

The purpose and effect of the above policies is prevention of all forms of corruption and putting in place preventive practices within the organisation and in the supply chain. If any form of corruption is identified, decisive steps are taken to remedy the situation and prevent further incidents of this type.



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