Climate Change Data

Environmental Metrics

ESG Focus Areas

• People
• Environmental
• Social
• Governance

Environmental Achievements

• Reduced total water withdrawal by 17.9% (from 80,482 m3 to 66,047 m3)

Social Achievements

• Increased employee number by 29% (from 1,988 to 2,564)
• Implemented various community engagement programs (charity collections, workshops, donations)
• Launched the Social and Civic Competence Building Studio project (employee volunteering)

Governance Achievements

• Implemented Integrated Management Systems (IMS) consistent with business profiles
• Established Audit Committee, Strategy and Investment Committee, and Nomination and Remuneration Committee
• Implemented Anti-Corruption Policy

Climate Goals & Targets

Environmental Challenges

• Risk of potential increase in social expectations regarding the scale of the Group’s involvement
• Risk of employees being reluctant to commit to new social projects
• Risk of occupational accidents
• Risk of non-compliance with local or international labour laws or regulations
• Risk of recruiting inadequately qualified staff
• Risk of staff shortages
• Risk of production staff turnover
• Risk of incurring costs of staff training which will not translate into employees fully or effectively applying their newly gained skills or know-how
• Risk related to the generation gap in the labour market
• Risk of shortage of foreign workforce who could work in Poland
• Risk of uneven integration of employees from different FAMUR Group companies, branches, or plants
• Risk of employee solicitation by competitors
• Risk related to competition from other FAMUR Group companies
• Risk of deterioration of the FAMUR Group’s image due to negative portrayal of the traditional mining industry in the media
• Potential violations of human rights in operations and supply chain
• Risk of corruption
• Risk of inadequate diversification of revenue sources
• Risk of deterioration in mining companies' financial position and insolvency of mines
• Risk of macroeconomic volatility
• Risk of changes in the global energy market

Mitigation Strategies

• Considered consistency with overall sponsorship policy and business areas when selecting community engagement projects
• Early probing to determine the extent to which new initiatives will appeal to the employees
• Due diligence procedures to support the ‘zero accident’ policy
• HR department monitors changes in employment-related legislation
• Recruitment processes take account of specific requirements for a given job
• Wide-ranging and effective recruitment processes
• Tailored training programs to the actual needs of its plants
• Development programmes to fill vacancies resulting from the generation gap
• Various measures to retain valuable employees and address staff shortages
• Activities to develop the skills of employees from across the Group companies and branches
• Enhancing employee loyalty and attractiveness of the Group as an employer
• Planning a single Group-wide recruitment process
• Efforts to create a positive media image of the company and the industry
• Comprehensive Diversity Policy and Policy for Counteracting Discrimination and Workplace Bullying
• Comprehensive Human Rights Policy
• Comprehensive Anti-Corruption Rights Policy
• Diversification of product range and development of portfolio of products and services
• Expansion on foreign markets (GO GLOBAL programme)

Supply Chain Management

Supplier Audits: Periodic evaluation and qualification of suppliers representing at least 0.1% of the value of total annual supplies

Responsible Procurement

• Inclusion of environmental criteria in supplier evaluation procedures (certified Environmental Management System, use of environmentally friendly solutions, application of internal environmental policies)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 6: Clean Water and Sanitation
• Goal 9: Industry, Innovation and Infrastructure
• Goal 12: Responsible Consumption and Production
• Goal 16: Peace, Justice and Strong Institutions

Activities supporting the achievement of these goals are detailed in the report

Sustainable Products & Innovation

• Smart Mine project (automated mining systems)

Awards & Recognition

• Investor Without Borders
• Economic Patriotism Index award
• Golden Payer Certificate
• Best-Performing CEOs 2017
• One Who Changes Polish Industry award
• Silver medal at the iENA trade fair

Environmental Metrics

ESG Focus Areas

• Employees
• Local Communities
• Natural Environment
• Management of the Organisation

Environmental Achievements

• Reduced carbon dioxide emissions by 24% (from 641,661 kg to 489,271 kg)
• Reduced total water withdrawal by 11% (from 66,047 m3 to 58,893 m3)

Social Achievements

• Launched Social and Civic Competence Building Studio project, involving 300 employees in 5 CSR projects benefiting 550 people.
• Implemented various training and health promotion projects for employees and their families, including private medical care.

Governance Achievements

• Implemented Integrated Management Systems (IMS) consistent with business profiles, including ISO 14001 and OHSAS 18001 standards.
• Established Audit Committee, Strategy and Investment Committee, and Nomination and Remuneration Committee.

Climate Goals & Targets

Environmental Challenges

• Risk of occupational accidents
• Risk of non-compliance with labor laws
• Risk of recruiting inadequately qualified staff
• Risk of staff shortages
• Risk of production staff turnover
• Risk of incurring costs of staff training without effective application of skills
• Risk of generation gap in the labor market
• Risk of shortage of foreign workforce
• Risk of uneven integration of employees from different Group companies
• Risk of employee solicitation by competitors
• Risk of competition from other FAMUR Group companies
• Risk of deterioration of FAMUR’s image due to negative portrayal of the mining industry
• Risk of limited staff availability due to unforeseen events (epidemics)
• Environmental risks associated with waste generation, air emissions, and the need to adapt to changing climate policy
• Social risks related to increasing social expectations and employee reluctance to commit to new projects
• Business model risks related to the cyclical nature of the mining sector, reduced revenue diversification, and macroeconomic instability

Mitigation Strategies

• Due diligence procedures to support a ‘zero accident’ policy
• Monitoring changes in employment-related legislation
• Recruitment processes considering specific job requirements and skills tests
• Wide-ranging recruitment processes and communication of job offers
• Tailoring training programs to plant needs and employee selection
• Employee development programs, including assessment of learning progress
• Solutions for employees nearing retirement to enable continued professional activity
• Recruitment of foreign employees with integration programs
• Activities to develop skills of employees across Group companies
• Enhancing employee loyalty and attractiveness of the Group as an employer
• Single Group-wide recruitment process
• Efforts to create a positive media image of the company and the industry
• Substitution procedures within business units to ensure information flow
• Dividing employees into task teams in different locations, including remote work
• Temperature screening and provision of electronic thermometers
• Limiting physical access of third parties
• Internal instructions for waste management and permits for waste generation
• Permits for air emissions
• Tracking changes in EU climate policy and legal requirements
• Considering project consistency with sponsorship policy and business areas
• Early probing to determine appeal of new initiatives
• GO GLOBAL international expansion program
• Industry 4.0 project
• Comprehensive Environmental Policy and periodic reviews

Supply Chain Management

Supplier Audits: Periodic evaluation of suppliers representing at least 0.1% of total annual supplies

Responsible Procurement

• Supplier Code of Conduct (implemented March 2020)
• Due diligence procedures to eliminate risk of carousel fraud
• Environmental criteria in supplier evaluation

Climate-Related Risks & Opportunities

Transition Risks

• Need to adapt operations to changing climate policy

Reporting Standards

Frameworks Used: GRI Standards (2016, core option)

UN Sustainable Development Goals

• Goal 8
• Goal 9
• Goal 12
• Goal 4
• Goal 5
• Goal 3
• Goal 7
• Goal 6
• Goal 17

Activities supporting sustainable economic growth, quality education, gender equality, health, energy, water, infrastructure, consumption patterns, and partnerships

Sustainable Products & Innovation

• Smart Mine technologies (automated mining systems, smart conveyor systems, automated drilling systems, diagnostics and prediction systems)

Awards & Recognition

• Rzeczpospolita daily’s TOP 500 LIST (144th in 2019)
• Rzeczpospolita daily’s TOP 2000 LIST (164th in 2019)
• Wprost weekly’s ranking of Poland’s 200 Largest Companies (69th in 2019)
• Wprost weekly’s ‘The Polish Cheetahs’ ranking (6th in 2019)
• Wprost weekly’s ‘Poland’s Ambassadors’ ranking (50th in 2019)
• 1st place in ‘Innovative Technology’ category of ‘Katowice 2019 Innovative Product & Technology’ competition (Elgór+Hansen)
• ‘Employee-Friendly Employer’ title (FAMUR S.A. GLINIK Branch)
• 3rd place for Mirosław Bendzera in the ranking of the most effective CEOs of mWIG40 companies

Environmental Metrics

ESG Focus Areas

• Employee well-being
• Community engagement
• Safety
• Environmental protection
• Sustainable Development Goals

Environmental Achievements

• Implemented ISO 14001 Environmental Management System
• Rational waste management, including waste reclamation and recycling
• Introduced changes to applied environmentally friendly technologies
• Rational management of energy and water
• Efficient management of hazardous substances and reduction of emissions of substances harmful to the environment

Social Achievements

• Supported medical services through cash and non-cash donations
• Adapted working arrangements to protect employees and their families
• Provided computer equipment for children's remote learning
• Implemented various CSR programs engaging 300 employees
• Donated over PLN 1.3m to hospitals

Governance Achievements

• Implemented Anti-Corruption Policy
• Developed Code of Ethics
• Established Internal Audit Department
• Complied with corporate governance rules laid down in the ‘Best Practice for WSE Listed Companies 2016’
• Adopted Diversity Policy

Climate Goals & Targets

Environmental Challenges

• Major drop in orders due to COVID-19 pandemic and market conditions
• Force majeure declarations by trading partners
• Restrictions on cross-border movement
• Difficult conditions in the Polish coal mining industry
• Declining demand for products due to Poland's energy transition

Mitigation Strategies

• Implemented cost optimization plans
• Adjusted production capacities and operating assets
• Implemented a 20% reduction in remuneration and working time
• Liquidated two production plants
• Adopted new strategic directions focusing on green transition

Supply Chain Management

Supplier Audits: Periodic evaluation of suppliers representing at least 0.1% of total annual supplies

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Transition Risks

• Need to adapt operations to rapidly changing climate policy

Reporting Standards

Frameworks Used: GRI Standards (core option)

Certifications: ISO 14001

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 6: Clean Water and Sanitation
• Goal 9: Industry, Innovation and Infrastructure
• Goal 12: Responsible Consumption and Production
• Goal 16: Peace, Justice and Strong Institutions

Activities supporting the achievement of these goals through CSR initiatives

Awards & Recognition

• Rzeczpospolita daily’s TOP 500 LIST
• Largest exporters
• CAPEX projects
• Poland’s Largest Companies
• Diamonds of Polish Economy 2019
• Polish Cheetahs ranking

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• In early 2023, Grenevia Group declared a reduction of greenhouse gas emissions (Scopes 1 and 2) by 40% by 2030 compared to 2021 and achieving approximately 70% of Group revenue from sources other than the energy coal sector by 2024 through the development of new segments.

Social Achievements

• In January 2023, the company published the Grenevia Group's Sustainable Development Strategy for 2023-2030, which formalizes strategic goals in the ESG area, including equal opportunities, proper working conditions, respect for employee rights, dialogue with local communities, and customer relations.

Governance Achievements

• On December 18, 2017, the Management Board adopted and implemented a diversity policy in the Grenevia Group, aiming for diversity in gender, education, age, and professional experience in selecting company authorities and key managers.

Climate Goals & Targets

Environmental Challenges

• Limited application of several principles in the Good Practices of Companies Listed on the Warsaw Stock Exchange 2021, particularly regarding communication with investors, board diversity, and executive compensation.

Mitigation Strategies

• The company is working to improve its practices in the areas where it has limited application of the principles, such as improving communication on the website and striving for greater diversity in the board.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability

Governance Achievements

• Completion of work and announcement of Group sustainability strategy (ESG) in Jan 12 2023

Climate Goals & Targets

Environmental Challenges

• Market uncertainty due to energy price cap regulation and onshore wind power
• Declining availability of connection capacity for RES in Poland
• Failure to finalize PV sale agreement with Alternus
• Costs of dynamic growth of PV project portfolio in Poland, development of PV structures and projects in Germany
• Higher component prices and recognised provisions in e-mobility segment
• Sustained pressure from Chinese manufacturers in mining machinery segment

Mitigation Strategies

• Process optimization and cost reduction measures for PV projects
• Implementation of European Supply Chain strategy to minimise risk of supply chain disruption in e-mobility segment
• Further development of wind turbine gearbox repair and maintenance services
• Intensive search for buyers for completed PV farms
• Expansion into foreign markets for PV projects
• Start of building own portfolio of PV farms oriented towards production and sale of electricity (IPP)

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Green transition
• Sustainability

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• UN Sustainable Development Goals

The strategy directly supports the UN Sustainable Development Goals, reinforcing the Group’s commitment to solving global problems.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Business Transformation
• Energy Transition
• Circular Economy
• Corporate Governance
• Employee Development
• Community Engagement

Environmental Achievements

• By the end of 2024, approximately 35% of energy will come from RES

Social Achievements

• Boosting education and development of employees and local communities
• Developing an organisational culture that promotes equality and diversity

Governance Achievements

• Implementing best international practices in corporate governance, risk management and relations with business partners

Climate Goals & Targets

Environmental Challenges

• Reducing reliance on the thermal coal sector

Mitigation Strategies

• Developing new business segments supporting energy transition

Supply Chain Management

Responsible Procurement

• Grenevia Sustainability Code

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainable business transformation
• Energy for transition
• Modern products and business models
• Efficient and responsible organisation
• Employees and society as a key component of climate transition

Environmental Achievements

• Implementation of a mechanism to calculate the carbon footprint in Scopes 1 and 2 for the Group, with calculations for 2022 and 2021
• Development of calculators to measure avoided emissions for PST and IMPACT
• Development of forms for fleet inventory-taking and emission reduction calculations for the selected replacement scenarios
• Implementation of circular economy practices: establishing teams across segments to assess the level of product standardisation and explore opportunities for material reuse

Social Achievements

• Joining the United Nations Global Compact
• Commencement of ESG training and webinars for all employees
• Launch of the Whistleblowing and Criminal Compliance project across all segments
• Initiation of supplier meetings as a part of our continuous dialogue with stakeholders across the Grenevia Group

Governance Achievements

• Establishment of an ESG Steering Committee, comprised of Segment Leaders and the CEO of Grenevia SA, along with the appointment of ESG Coordinators across the segments of the Grenevia Group

Climate Goals & Targets

Environmental Challenges

• Diminished investments noted in international markets, with continued price pressure from Chinese manufacturers
• Lower Q2 2023 revenue compared to Q1 2023, primarily due to the postponement of customer acceptance processes, largely stemming from delays in the launch of e-mobility subsidy programmes
• Higher costs of key components purchased in 2022 (to ensure continuity of order fulfilment)

Mitigation Strategies

• FAMUR halted its bidding activities within the Russian and Belarusian markets and initiated asset divestment in Russia
• Continued efforts to ensure a stable supply chain of key components → Cell supplier market analysis, selection and initiation of discussions with potential suppliers to ensure multiple sourcing (cooperation agreement with Freyr, negotiations with a major European cell manufacturer)
• No risk of these components going unused

Supply Chain Management

Responsible Procurement

• By the end of 2025, 70% of our key supplier relationships will be based on the Grenevia Sustainability Code

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact