Reporting methodology

This Report, with the accompanying indicators for 2014, covers the company KGHM Polska Miedź S.A. To ensure the high usefulness of the Report, in various sections qualitative and financial data for the KGHM Group was also reported.

This Integrated Report for 2014 was prepared in compliance with the guidelines of the International Integrated Reporting Council (IIRC) and the Global Reporting Initiative (GRI). This year a higher version of GRI guidelines was used – the G4 version, core level. The reporting process at KGHM is performed in a yearly cycle. The year 2014 saw no significant changes in the structure, ownership status or value chain at KGHM. The Report contains an adjustment to the G4-EN13 indicator. There was a decrease in direct emissions due to a decrease in the generation of physical and chemical emissions (process emissions). The Report was not verified externally.

The process of defining content specified in the Report was carried out pursuant to the guidelines of the International Integrated Reporting Council (IIRC) and of the Global Reporting Initiative.

The Report was divided into several stages:

  • Identification of material sustainable development issues adequate for the Company
  • Prioritization of material sustainable development issues
  • A validation workshop attended by senior management

The basis for identification of sustainable development issues was a workshop attended by KGHM’s senior management . As a result, material issues were identified from the perspective of business and sustainable development objectives.

While working on the 2014 GRI G4-compliant Integrated Report, a key aspect was to learn about stakeholders’ expectations towards KGHM in order to prepare a report which is useful for its readers.

Key KGHM Polska Miedź S.A stakeholder categories

Key KGHM stakeholder categories
Employees, including trade unions
Local government
Local communities
Regulators – supervisory and inspection authorities
Current and potential customers, contractors
Shareholders and the capital market environment
Research and scientific institutions
Mass media
National government
Non-governmental organisations (NGOs)
European Union (EU) administration
London Stock Exchange (LSE)
Peers Polish and international industry and professional organisations

Stakeholder map

The Company was keen to understand the stakeholders’ perspective. For this purpose a questionnaire was developed and a survey was carried out. The vast majority of respondents (94 percent) admitted that when making investment decisions or conducting analysis and research projects they pay attention to non-financial information.

More than half of the respondents (53 percent) graded the previous 2013 Integrated Report, published in August 2014, as “good” or “rather good”. The respondents also expressed their expectations towards this year’s publication. The Report’s topics were selected and validated during the meeting with senior management. During the meeting major items to be put into the Report were discussed and, based on the materiality principle, topics for publication were selected.

The major issues included:

  • The level of copper and silver resources and the outlook for the mining operations
  • Development of the resource base
  • Improvement in production efficiency
  • Investment activities
  • Securing financial stability for KGHM

The table below presents a list of the key aspects reported along with the limits of their impact.

Key reported aspects

GRI aspectIssue defined during dialogue processGRI indexAffected entity
Financial performance Securing financial stability for the Company G4-EC1, G4-EC2, G4-EC4 KGHM Polska Miedź S.A.
Market presence Wages and salaries G4-EC5 KGHM Polska Miedź S.A.
- The amount of copper and silver resources, mining operations outlook - KGHM Polska Miedź S.A. KGHM International LTD.
- Development of resource base - KGHM Polska Miedź S.A. KGHM International LTD.
- Improvement in production efficiency - KGHM Polska Miedź S.A.
Indirect economic impact Investment activities G4-EC7 KGHM Polska Miedź S.A.
- Securing financial stability for the Company - KGHM Polska Miedź S.A.
- Approach to reducing operating costs (C1 costs) - KGHM Polska Miedź S.A.
- Implementation of new technologies - KGHM Polska Miedź S.A.
Natural environment
Materials Environmental protection activities G4-EN1 KGHM Polska Miedź S.A.
Energy Environmental protection activities G4-EN3, G4-EN6 KGHM Polska Miedź S.A.
Water Environmental protection activities G4-EN8, G4-EN9, G4-EN10 KGHM Polska Miedź S.A.
Biodiversity Environmental protection activities G4-EN11, G4-EN12, G4-MM1, G4-MM2 KGHM Polska Miedź S.A.
Emissions Emissions, waste water/effluents, tailings G4-EN15, G4-EN16, G4- EN19, G4-EN21 KGHM Polska Miedź S.A.
Waste water/effluents and tailings Emissions, waste water/effluents, tailings G4-EN22, G4-EN23 KGHM Polska Miedź S.A.
Compliance with regulations Compliance with regulations G4-EN29 KGHM Polska Miedź S.A.
General (environmental expenditures and investments) Environmental protection activities G4-EN31 KGHM Polska Miedź S.A.
Complaints Environmental protection activities G4-EN34 KGHM Polska Miedź S.A.
Working conditions
Employment Quality of human capital, ensuring compliance with human rights G4-LA1, G4-LA2, G4-LA3, G4-MM4 KGHM Polska Miedź S.A.
Professional Health and Safety (PHS) Occupational Health and Safety (OH&S) G4-LA6, G4-LA7, G4-LA8 KGHM Polska Miedź S.A.
Education and training Quality of human capital G4-LA9, G4-LA11 KGHM Polska Miedź S.A.
Diversity and equal opportunities Diversity G4-LA12 KGHM Polska Miedź S.A.
Social and public aspects
Local community Relations with local communities G4-SO1, G4-MM6, G4-MM7, G4-MM9 KGHM Polska Miedź S.A.
Anti-corruption policy Anti-corruption policy G4-SO3, G4-SO5 KGHM Polska Miedź S.A.
Breaching rules of free competition Risk management G4-SO7 KGHM Polska Miedź S.A.
Compliance with regulations Risk management, compliance with regulations G4-SO8 KGHM Polska Miedź S.A.
Product liability
Product and service labelling Building of relations with Customers G4-PR5 KGHM Polska Miedź S.A.
Marketing communication Building of relations with Customers G4-PR7 KGHM Polska Miedź S.A.