Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Anti-Corruption
• Sustainable Development

Environmental Achievements

• Implementation of Climate Policy aimed at achieving climate neutrality by 2050, with an intermediate goal of reducing Scope 1 and Scope 2 emissions by 30% by 2030 (compared to 2020).

Social Achievements

• Not disclosed

Governance Achievements

• Implementation of ISO 37001 Anti-Corruption Policy.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts and regulatory changes related to emissions.
• Maintaining stable copper production while adapting to changing market conditions.

Mitigation Strategies

• Development of internal zero-emission and low-emission sources, improved energy efficiency, purchase of renewable energy sources (RES) under PPA contracts, admixture of hydrogen in technological processes, and implementation of electromobility projects.
• Implementation of the Deposit Access Program to maintain output in Poland.
• Modernization of Głogów I Tankhouse and other facilities to improve efficiency and reduce environmental impact.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD Recommendations

Certifications: ISO 14001, ISO 37001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7
• Goal 12
• Goal 13

The Climate Policy directly supports the achievement of these UN Sustainable Development Goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Economic Award of the President of Poland
• Company of the Year in Central-Eastern Europe
• Amber of the Polish Economy 2021
• The Best of the Best – The Best Annual Report 2020
• Globee Business Awards – Gold and Bronze
• Polish Company of the Year 2020

Environmental Metrics

ESG Focus Areas

• Energy
• Ecology
• Safety
• Sustainability
• Prosociality

Environmental Achievements

• Increase in the share of own energy in consumption from 22% in 2020 to a minimum of 50% in 2030 (ca.1.5TWh)
• Reduction of estimated CO2 emissions resulting from electricity consumption from 1.9 million tons in 2019 to 1 million tons in 2030
• 30% emission reduction by 2030

Social Achievements

• Aiming at zero accidents, TRIR, and occupational diseases among KGHM employees and contractors by 2030
• Increasing the capabilities of the healthcare system and helping people in need by supporting valuable projects improving the quality and safety of life provided through KGHM Polska Miedź Foundation (PLN 7m in 2020 to PLN 11.5m in 2030)
• Unleashing the potential of employees and engaging KGHM to pro-social activities. Active promotion of important activities bringing added value to local communities and strengthening the positive image of Poland on the international arena (PLN 38.5m in 2020 to PLN 48m in 2030)

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Climate Change
• Social
• Governance
• Safety

Environmental Achievements

• Sierra Gorda mine operating exclusively on power provided by RES (Renewable Energy Sources)
• Reduction in estimated CO2 emissions resulting from electricity consumed by 1.0 mln tonnes of eCO2 (compared to 1.6 mn tonnes in 2020)
• Scope 1 and 2 greenhouse gas emissions by KGHM Polska Miedź S.A. amounted to around 3.2 million tonnes of eCO2 in 2022
• Deposition of compacted (de-watered) tailings enables the return of significant amounts of water into processing and around 5-times less water needing to be stored

Social Achievements

• 244 employees of KGHM joined the CUdowni Rodzice (Wonderful parents) program
• More than 800 participants in sport-related meetings for parents
• More than 4,000 beneficiaries of preventative programs
• More than 10,000 took advantage of indirect and direct assistance under the Depression Prevention Program
• 269 hours dedicated to advancing volunteer projects
• 163 actions involving volunteers, with 1,229 employee volunteers participating
• LTIFR (Lost Time Injury Frequency Rate): 4.28; TRIR (Total Recordable Incident Rate): 0.43%

Governance Achievements

• Submission of an application to issue technical connection conditions for a RES project (88MW)
• Submission of an application to build a small modular reactor power plant (SMR) in Poland
• KGHM monitors and calculates Scope 1, 2 and 3 emissions. Data on Scope 1, 2 and 3 emissions by the entire KGHM Group in 2022 were published in the CDP Climate report

Climate Goals & Targets

Environmental Challenges

• Lower copper prices due to global economic slowdown
• Cost pressures due to global inflation
• Lower demand for copper rod and wire in Q2 2023 due to global shutdowns in construction and energy
• Impact of Russia's aggression against Ukraine on food security, energy prices, and access to fertilizers

Mitigation Strategies

• Continuous monitoring of the international economic situation to assess potential negative impact and take anticipative actions
• Focus on financial stability: basing the Group’s financing structure on long-term instruments, shortening the cash conversion cycle, management of market and credit risk
• Development of internal zero-emission and low-emission sources, improvement of energy efficiency, purchase of RES energy under PPA contracts
• Implementation of electromobility projects, advanced production technology, utilization of CCU and CCS technology

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Seizing opportunities arising from the energy transformation

Reporting Standards

Frameworks Used: CDP Climate

Certifications: ISO 45001:2018

Environmental Metrics

ESG Focus Areas

• Climate Change
• Employee Safety
• Renewable Energy

Environmental Achievements

• Own generation sources, including RES, covered 21.29% of KGHM Polska Miedź S.A.’s total power needs in H1 2024.
• 100% of electricity generated by RES in the Sierra Gorda mine since January 2023.

Social Achievements

• 695 hours dedicated to advancing volunteer projects; 66 actions involving 435 employee volunteers; 163 volunteer projects.
• Reduction in workplace accidents by 28.8% in 2020, 22.5% in 2021, and 9.7% in 2022 (y/y). Awarded Leader’s Gold Card of Workplace Safety.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Increase in workplace accidents by 16.9% in 2023 and 96 vs 65 confirmed accidents in H1 2024 compared to H1 2023.
• Lower copper content in ore and lower metal recovery at Sierra Gorda mine.

Mitigation Strategies

• Additional actions launched to reduce workplace accidents.
• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 45001:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Leader’s Gold Card of Workplace Safety (2020, 2021, 2022)