Our report

This publication was prepared in accordance with the international Global Reporting Initiative Standards (GRI Standards) for non-financial reporting: Core option. The TCFD recommendations concerning disclosure of climate-related information as well as selected indicators from the ESG reporting guidelines of the Warsaw Stock Exchange were also applied. The content and layout of this report are also based on relevant recommendations of the International Integrated Reporting Council (IIRC).

Report scope and boundary, applicable standards and guidelines

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This report describes the non-financial activities and performance of the four key companies of the Grupa Azoty Group:

• Grupa Azoty S.A. of Tarnów (the parent);
• Grupa Azoty Zakłady Azotowe Kędzierzyn of Kędzierzyn-Koźle (Grupa Azoty Kędzierzyn; ZAK);
• Grupa Azoty Zakłady Azotowe Puławy of Puławy (Grupa Azoty Puławy);
• Grupa Azoty Zakłady Chemiczne Police of Police (Grupa Azoty Police).

In addition to the companies listed above, the consolidated financial statements of the Grupa Azoty Group cover seven other companies (subsidiaries of Grupa Azoty): COMPO EXPERT Holding GmbH, Grupa Azoty ATT Polymers GmbH (Guben, Germany), Grupa Azoty Polskie Konsorcjum Chemiczne Sp. z o.o. (Tarnów, Poland), Grupa Azoty Koltar Sp. z o.o. (Tarnów, Poland), Grupa Azoty Kopalnie i Zakłady Chemiczne Siarki Siarkopol S.A. (Grzybów), Grupa Azoty Folie Sp. z o.o. w likwidacji (in liquidation), and Grupa Azoty Compounding Sp. z o.o. 

Financial data in this report was taken from the consolidated financial statements of the Grupa Azoty Group.

Review of the report

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In order to exercise utmost care, we have engaged Deloitte’s Sustainability Consulting Central Europe Team to assist in the preparation of this report. Approximately 116 employees of the four key Group companies were involved in the data collection process. The report was also subject to an independent third-party review by KPMG.

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Besides the ownership changes described in the ‘About the Grupa Azoty Group’ section, there were no other significant changes in the size, structure or value chain of the Group in the reporting period. The following data was restated relative to the Grupa Azoty Group’s integrated report for 2020: 102-8 (update of the total workforce) and 302-1 (update of direct and indirect energy consumption by the organisation). In addition, there were changes in the reporting methodology or presentation of GRI disclosures: 405-2 (‘Management Board’ item removed from employee categories) and 201-4 (change in the classification of financial support).

There were no significant changes in material topics identified relative to the previous year’s report.

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We want to know your opinion about the report and the scope of information you would like us to provide in its next edition. To share your opinion and to request a copy of the report, please send a message to katarzyna.kapustka@grupaazoty.com

Media enquiries: Grupa Azoty Press Officer rzecznik@grupaazoty.com

Investor enquiries: Investor Relations Team ir.tarnow@grupaazoty.com 

Report drafting process

1. Identification

The drafting process was based around key strategic pillars for 2021–2030 identified by the Grupa Azoty Group in 2021.

Additionally, we relied on the findings of a dialogue session conducted in 2018 with the Group’s key external stakeholders, including social institutions, business partners, farmers and public cultural centres. In 2019, we carried out additional surveys among stakeholders and performed an internal analysis of reports prepared by international rating agencies. 

2. Prioritisation

In 2018, 2021 and 2022, we conducted anonymous surveys among our employees and external stakeholders. This year's survey covered the new ESG strategy of the Grupa Azoty Group, based on five key strategic pillars: The Grupa Azoty Group’s ESG strategy is organised around five strategic pillars: climate and environment, sustainable products, sustainable supply chain, immediate environment, safe and friendly workplace. The questionnaire was completed by 353 external and internal stakeholders.

Topics identified by stakeholders in the most recent survey were then prioritised by the Group on the basis of matters raised in the previous stakeholder surveys and interviews with the Group’s management team.

3. Validation

During a meeting with representatives of the Grupa Azoty Group, the first two stages of defining the report content were summarised and a final list of material topics was confirmed.

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For the Grupa Azoty Group’s external stakeholders, the most relevant topics to be reported include:

1. Fair and solid relationships with business partners
2. Health and safety
3. Energy efficiency (e.g. reduction of energy consumption)
4. Innovative and environmentally-friendly production
5. Energy transition (e.g. shift to renewable energy sources)

For the Grupa Azoty Group’s employees, the most relevant topics to be reported include:

1. Conditions of employment
   2.Health and safety
   3.Career development, training
   4.Energy efficiency (e.g. reduction of energy consumption)
   5.Fair and solid relationships with business partners

The prioritisation process determined the materiality of relevant aspects for the Grupa Azoty Group and its stakeholders (i.e. low, medium and high), as shown in the diagram below. The following aspects are addressed in individual sections of this report.

Materiality matrix

1. Decarbonisation and emissions reduction
2. Energy transition (e.g. shift to renewable energy sources)
3. Energy efficiency (e.g. reduction of energy consumption)
4. Circular economy and reduction of resource consumption
5. Green products
6. Sustainable agriculture and raw material sourcing
7. Support for business partners in ensuring compliance with the Codes 
8. Supplier selection and evaluation criteria incorporating ESG aspects
9. Collaboration with business partners (joint development of sustainable solutions)
10. Impact on the development of local markets
11. Support to local communities 
12. Dialogue with local community representatives
13. Health and safety
14. Equality, diversity, openness
15. Career development, training