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|
|Regulators – supervisory and inspection authorities|
|Current and potential customers, contractors|
|Shareholders and the capital market environment|
|Research and scientific institutions|
|Non-governmental organisations (NGOs)|
|European Union (EU) administration|
|London Stock Exchange (LSE)|
|Peers Polish and international industry and professional organisations|
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 aspect||Issue defined during dialogue process||GRI index||Affected 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.|
|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.|
|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 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.|