Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable development
• Occupational health and safety
• Social responsibility
• Environmental protection
• Corporate governance

Environmental Achievements

• Implemented Integrated Management System including ISO 9001:2008, ISO 14001:2005, and BS OHSAS 18001:2007.
• Successfully completed renewal audit of Integrated Management System by TÜV SÜD.
• Recognised as one of the socially responsible companies listed on the Warsaw Stock Exchange (RESPECT INDEX) for the second consecutive year.
• Implemented measures to reduce material consumption (e.g., double-sided printing, energy-saving lights).

Social Achievements

• Employed over 300 new employees, particularly engineers and specialists.
• Implemented new remuneration regulations with incentive systems.
• Recognised by the Central Institute for Labour Protection as one of the Leaders in Safety at Work.
• Implemented occupational safety management system compliant with PN-N-18001 (OHSAS).

Governance Achievements

• Completed organisational and legal restructuring process.
• Implemented a new contract-focused organisational structure.
• Improved contract management with monthly meetings with contract directors.
• Improved claim management with a uniform claim policy.

Climate Goals & Targets

Environmental Challenges

• Significant delay of the Financial Framework 2014-2020 in public tenders.
• Growing competition in the rail and road construction market.
• Contract completion risks (administrative delays, material price changes, subcontractor issues, cost underestimation).
• Financial risks (availability of funding, liquidity).

Mitigation Strategies

• Optimised the Company's organisational structure (reducing jobs).
• Implemented a modern contract management system.
• Monitors capital structure using debt ratios.
• Monitors cash at hand and maintains debt and financial liquidity at a safe level.
• Develops long- and short-term analyses and forecasts for cash requirements.
• Implemented measures to counteract corruption risks (Anti-corruption and Anti-bribery Programme).

Supply Chain Management

Responsible Procurement

• Procurement platform (auctions, requests for proposal)
• Framework agreements
• Supplier selection criteria (price, timeliness, warranty, payment date)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines

Certifications: ISO 9001:2008, ISO 14001:2005, BS OHSAS 18001:2007, PN-EN ISO 3834-3:2007

Third-party Assurance: Deloitte Audyt spółka z ograniczoną odpowiedzialnością sp. k.

Awards & Recognition

• SEP President’s Medal
• Chamber of Commerce award (Urban Transport)
• Józef Nowkuński prize

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Occupational health and safety
• Social and employee aspects
• Ethics and prevention of corruption

Environmental Achievements

• Reduction in SO2 emissions to the air by 0.5% compared to the previous year
• Year-on-year reduction in electricity consumption through purchasing power tools and equipment with reduced electricity consumption, using energy-saving light bulbs and fluorescent lamps

Social Achievements

• Implemented Onboarding process to reduce employee turnover and increase employee involvement, job satisfaction, and productivity
• Over 16,600 hours of employee training (45.7% increase from 2018)
• Reduction in accidents at work

Governance Achievements

• Implemented compliance procedures and provided training on anti-corruption and counteracting unwanted behavior in the workplace
• Established a Person of Trust to support employees reporting unwanted behavior

Climate Goals & Targets

Environmental Challenges

• Unstable supply of contracts in the infrastructure project market
• Above-average increase in prices of materials and subcontractors
• Shortages on the labor market
• Failure to implement the contract revaluation system
• Problems with settling contractual claims
• Liquidity problems
• Difficulties in securing larger contracts due to liquidity problems and timely project implementation limitations
• Risk of disruption of operations related to the COVID-19 virus

Mitigation Strategies

• Financial restructuring and attracting a new, stable shareholder
• Acquired new financial instruments worth more than PLN 400 million, refinancing program totaling PLN 1.2 billion
• Signed new contracts worth over PLN 750 million
• Active liquidity management policy (monitoring liquidity, focusing on financing terms, maintaining low receivables, managing inventories, shortening invoicing period)
• Active participation in tender procedures
• Strengthening the position on the Polish market for construction and assembly services in the railway sector
• Strengthening the Group's position on other markets (Germany, Ukraine)
• Diversification of the Group's business
• 10% reduction in working hours for employees to reduce costs (until June 30, 2020)
• Suspension of bonuses, awards, allowances, and severance pay; reduction in overtime and company car use; reduction in social benefits fund contribution

Supply Chain Management

Responsible Procurement

• Procurement platform (auctions, requests for proposal); framework agreements; criteria include price, timeliness of deliveries, guarantee period, payment terms; 'Principles of Cooperation with Suppliers and Subcontractors by Trakcja PRKiI' document available on company website.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001, OHSAS 18001 (ISO 45001 certification scheduled for July 2020), PN-EN ISO 3834-3:2007

Third-party Assurance: BDO spółka z ograniczoną odpowiedzialnością sp. k.

Awards & Recognition

• Safe Work Leader's Silver Card
• First place in the 'Build Safely' competition
• Distinction in the 'Build Safely 2019' competition
• Third place in the 'Improvement of working conditions' competition