Environmental management
Environmental protection is an integral part of our approach to sustainable development because we know this is what our customers, suppliers and local communities expect.
Environmental protection is an integral part of our approach to sustainable development because we know this is what our customers, suppliers and local communities expect. Environmental management at the Grupa Azoty Group is part of the integrated management system, and one of its priorities is to minimise environmental losses. All the Group companies (except for Grupa Azoty Koltar ) have implemented an environmental management system conforming to the ISO 14001 standard, which supports the activities related to environmental protection and prevention of contamination. The system also requires the companies to assess compliance of their activities with applicable laws and other standards, and to pursue continuous improvement of the environmental protection methodologies they apply.
1 An environmental management system has not been implemented as this is not mandatory for Grupa Azoty KOLTAR Sp. z o.o. Grupa Azoty KOLTAR Sp. z o.o. has signed a contract with a third party for the provision of environmental protection services that include preparation of reports, reporting, representation of the company before environmental protection authorities, supervision of waste and packaging management, review of the results of analyses and measurements, and monitoring of the performance of obligations under applicable decisions and agreements.
In 2022, Grupa Azoty S.A. plans to put an Environmental Policy in place that would define the Grupa Azoty Group as an organisation focused on clean production, striving to reduce consumption of natural resources, driving a continuous effort to reduce consumption of raw materials and utilities, minimising pollutant emissions and efficiently managing waste.
We make every effort to ensure compliance with relevant laws and permits. In the event of any breach – resulting in penalties or increased fees – we always implement corrective actions at the companies.
But our ambitions go beyond compliance with the law. In our Strategy we have set a path for our climate neutrality and energy transition known as ‘Green Azoty’. We take measures to reduce emissions, and we have adopted a decarbonisation programme that will be combined with the development of renewable and emission-free energy sources. We aim to cut the share of electricity from burning coal to less than 50% of total energy consumed in 2030 and achieve carbon neutrality by 2050.
BEST PRACTICE
Grupa Azoty S.A. and the Province of Kraków will closely cooperate to protect air and climate as part of the project ‘LIFE EKOMAŁOPOLSKA – Implementation of the Regional Action Plan for Climate and Energy’. In 2021, we signed an agreement with the local authorities declaring our commitment to achieving climate neutrality in production processes and activities carried out in the Małopolska Region by 2050.
Executive-level responsibility for economic, environmental, and social topics. We have divided responsibilities in these areas at the leading Group companies in the following way:
Grupa Azoty S.A.:
- economic matters: Head of the Corporate Finance Department and Head of the Corporate Controlling Department
- social matters: Head of the Corporate Organisation and Human Resources Department
- environmental matters: Head of the Corporate Technology and Energy Department
Grupa Azoty Kędzierzyn:
- economic matters: Head of the Finance Department, Head of the Controlling Department
- social matters: Head of the Management and Human Resources Department
- environmental matters: Head of the Safety Department
Grupa Azoty Puławy:
- economic matters: Head of the Finance Division/Chief Controller
- environmental matters: Head of the Support Division
- social matters: Head of the Human Resources Division/ Head of the Corporate Division
Grupa Azoty Police:
- economic matters: Head of the Finance Department and Head of the Controlling Department
- environmental matters: Head of the Plant Safety Department and the Project Manager for GHG Emissions, Technological and Environmental Analysis
- social matters: Head of the Human Resources and Management Department.
Persons in these roles report directly to the management board.
BEST PRACTICE
In 2021, Grupa Azoty Kędzierzyn and Grupa Azoty Puławy had certification for their Responsible Care Framework Management System (implemented under the Odpowiedzialność i Troska® programme) extended until 2025, confirming the Group’s compliance with the guidelines issued by the European Chemical Industry Council and with the principles and criteria of the Polish Chamber of Chemical Industry.
The Responsible Care Programme, adopted in Poland in 1992 under the name ‘Odpowiedzialność i Troska’, is an international initiative of the chemical industry, supervised in Poland by the Polish Chamber of Chemical Industry. The programme enables chemical companies to integrate joint projects in the fields of health, process safety and environmental protection. Grupa Azoty Kędzierzyn has implemented the programme since 1994. Some of the positive changes delivered by the programme since its inception include:
- reduction of overall air emissions of pollutants – by ca. 80%,
- reduction of the water abstraction level – by more than 53%,
- reduction of the wastewater discharge level – by more than 55%,
- reduction of landfilled waste – by over 90%,
- reduction of the load of organic compounds discharged into the Oder River – by over 70%,
- reduction of the load of ammoniacal nitrogen in discharged wastewater – by over 99%.
Grupa Azoty Puławy has implemented the programme since 1995. Some of the positive changes delivered by the programme since its inception include an over 75% reduction in air emissions of pollutants, an over 40% reduction in water abstraction, and a ca. 90% reduction in waste going to landfill.
Our Group is the largest hydrogen producer in Poland and a major one in Europe. Our production accounts for over 35% of all domestic hydrogen output, and Polish production is, notably, the third largest in Europe2.
We naturally plan to engage in the development of a hydrogen market and participate in the implementation of the European Union’s hydrogen strategy. These efforts will be aided by our membership in the European Clean Hydrogen Alliance, which we joined in 2021. We are carrying out economic and technical analyses of electricity production from renewable sources, which in the long term will reduce the carbon footprint of our production processes and allow us to produce green hydrogen through electrolysis using renewable power. Our membership in the Alliance gives us an opportunity to form partnerships with key players in the energy sector, as well as to exert a tangible impact on shaping Europe’s hydrogen market.
In 2021, Grupa Azoty, PKP Cargo and PESA declared their intent to cooperate in advancing zero-carbon rail freight transport. We want to jointly implement research and development projects seeking to find optimum ways to use hydrogen to power rail vehicles and develop methods for transporting hydrogen and refuelling rail vehicles. Creating hydrogen fuel transport, storage and refuelling infrastructure is vital in facilitating the development of rail transport using hydrogen propulsion in Poland. The letter of intent signed during the TRAKO International Railway Fair opens a new chapter of the joint effort to work out optimal solutions in these fields based on the partners’ previous experience.
We believe our fuel cell based hydrogen technologies can provide efficient propulsion for rolling stock and contribute to advancing production of hydrogen and ammonia from renewable energy sources as a fuel for rail transport.
Given the size of demand for hydrogen-powered rail vehicles, the development of hydrogen technologies for rail transport could be a major catalyst of accelerated uptake of hydrogen as a fuel across all transport modes. This would be of great importance to the entire Polish economy considering the European Green Deal implemented by the European Commission, seeking to reduce CO2 emissions in transport by 30% by 2030, and to achieve climate neutrality in the European Union by 2050.
Our Group signed the letter of intent to build the Lower Silesian Hydrogen Valley during the 30th Economic Forum in Karpacz in 2021. The signatories declared their intention to cooperate in creating a business, technology and R&D environment that would promote development of the Lower Silesian Hydrogen Valley. The letter of intent aims to create conditions for and foster collaboration in the development of hydrogen technologies in Poland. Prepared by the Ministry of Climate and Environment in cooperation with representatives of the public and private sectors, the document defines measures to be undertaken to develop a full value chain of hydrogen economy based on Poland’s contribution, including solutions developed by Polish science and R&D industry as well as Polish implementations and patents. Under the agreement, the implementation and development of the hydrogen economy in Poland will be accompanied by several dozen measures comprising four strategic objectives to be achieved by 2030.
Grupa Azoty S.A.
- In 2022, the Company received a decision of the Provincial Inspector for Environmental Protection imposing a fine of PLN 70.92 per day for the period from mid-September to the end of December 2021 for exceeding permitted noise emission levels. Proceedings to determine an annual fine were pending at the date of this report.
Grupa Azoty Puławy
- An analysis of data from the continuous emissions monitoring system at the on-site CHP plant showed instances of exceeding the permitted emission levels for sulfur dioxide, nitrogen oxides and particulate matter in 2020. As a consequence, in March 2021 the Lublin Provincial Inspectorate for Environmental Protection imposed a fine of PLN 5,573,283 on the company. Given projects implemented to remove the causes of the fine, on June 2nd 2022 the due date for payment of the fine was postponed at the request of the company until December 31st 2023 – in the case of nitrogen oxide emissions, and until March 31st 2024 – in the case of emissions of sulfur dioxide and particulate matter from fuel combustion.
- An analysis of data from the on-site CHP plant showed instances of exceeding the permitted emission levels for sulfur dioxide, nitrogen oxides and particulate matter in 2021. No fines were imposed on the company for exceeding the limits as at June 30th 2022.
Grupa Azoty Kędzierzyn
- In 2021, Grupa Azoty Kędzierzyn was charged a fee of PLN 4,240,590 for air emissions of pollutants from a fuel combustion unit that were not compliant with the terms of the integrated permit. The fee follows from a change in the concept for an upgrade of the in-house CHP plant (the New Energy Concept), which is based on an innovative project to use heat from ammonia production and which would enable old coal-fired units to be shut down and coal to be partially replaced by gas fuel. The New Energy Concept fits into the decarbonisation and climate neutrality strategy and with the European Green Deal. It also supports Poland’s long-term economic objectives defined in the ‘Development Directions of Energy Innovations’, which will be pursued in 2021–2050 through activities enhancing the competitiveness of the Polish chemical and energy sectors. Also, the New Energy Concept will help improve the condition of the natural environment in the region where the company operates. The due date for payment of the fee was postponed by a decision of the Opole Province Marshal until April 2024 based on a schedule of corrective measures.
Grupa Azoty Police
- In 2021, the Provincial Inspectorate for Environmental Protection carried out an inspection of compliance with environmental laws and administrative decisions. It covered the fuel combustion unit and the titanium white production unit. The inspection found that the terms and conditions of the permit to use the environment were breached, including through excessive SO2, NOX and total particulates emissions from the emitter of the EC II CHP plant. No administrative proceedings were initiated in the case as at the date of this report. No irregularities were recorded for the titanium dioxide production unit.
No administrative or judicial sanctions were imposed in 2021 on the other Grupa Azoty Group companies (including Grupa Azoty Police) for non-compliance with environmental regulations. No environmental disputes were brought against the companies in 2021.
Monetary value of fines for non-compliance with environmental laws and/or regulations [PLN]
| 2020 | 2021 | |
|---|---|---|
| Grupa Azoty KĘDZIERZYN | 0 | 4,240,590 |
| Grupa Azoty POLICE | 0 | 0 |
| Grupa Azoty PUŁAWY | 5,573,283 | 0 |
| Grupa Azoty S.A. | 0 | 0 |
| Total | 5,573,283 | 4,240,590 |
