As part of its efforts to protect human rights, the Company has undertaken to draw up a Human Rights Protection Policy, which is the next step after KGHM’s Declaration on the Protection of Human Rights (SDG 5, 10). Because of the broad international scope of its operations, cultural differences and the specific nature of the industries in which it operates, the Group has long conducted a variety of human rights protection activities, such as: counteracting discrimination, not using forced labour (including child labour and slavery), respecting women’s rights and equal pay principles, caring for the natural environment and conducting its activities with respect for the rights of the First Nations – in accordance with the applicable normative acts. Work is currently pending to ensure consistency and comprehensiveness of these activities.
Sustainability and climate action in the strategy of KGHM Polska Miedź S.A.
KGHM Polska Miedź S.A. is a global company, open to development aimed at ensuring its stable operation for many decades to come for the benefit of present and future generations.
KGHM has adopted a focus on the concept of sustainability, protection of the environment and climate – both to prevent climate change and to effectively adapt to climate change. This is reflected in the internal regulations adopted within the Company and in the action it undertakes. For example, KGHM’s strategy is executed based on the sustainable development concept, with special focus on its commitment to health and safety, environment and community.
The chart below presents the Sustainable Development Areas of KGHM Polska Miedź S.A.
Sustainable development areas of KGHM Polska Miedź S.A.
KGHM pursues far more of the sustainable development goals (SDGs) presented in the 2030 Agenda for Sustainable Development adopted by the UN in 2015 than just those considered typical for companies in its sector. The goals pursued by KGHM Polska Miedź S.A. are presented in the following diagram:
UN Sustainable Development Goals for 2015-2030 implemented by KGHM Polska Miedź S.A.
Positive aspects of KGHM’s operations drive economic growth in the region, through ensuring good jobs and development of cooperating companies, increasing the well-being of its communities (SDG 8), efforts to broaden access to health care (SDG 3), decent work and education (SDG4), development of employees, benefits and training. KGHM addresses its activities to employees and their families, but it also cares for all residents of the region, contributing to the equality of opportunities in many aspects of life (SDG 10, 11).
Best practice
Other objectives pursued by the Company include responsible consumption and innovative production (SDG 12). KGHM is striving to ensure that the entire core production line is optimized, safe, innovative and sustainable, seeking methods for its continuous improvement, also through innovation, research and development activities (SDG 9). The Company is trying to focus its activities also on: efficient resource management (while striving to eliminate waste in accordance with the Circular Economy idea), reclamation of land and maintenance of biodiversity in post-mining areas (SDG 15).
The activities undertaken by KGHM Polska Miedź S.A. reflect the sustainable value chain, as presented in the chart below:
KGHM Polska Miedź S.A.’s sustainable value chain
On 16 November 2021 the Management Board of KGHM Polska Miedź S.A. passed a resolution on the adoption of the Climate Policy of KGHM Polska Miedź S.A. – a document setting forth the Company’s goals as regards the reduction of greenhouse gas emissions over the timeframe of 2030 and 2050 as well as the scope and extent of changes required for its achievement. The scope and impact of the Climate Policy encompasses KGHM Polska Miedź S.A., which will subsequently transfer its principles to its subsidiaries. The primary goal of the Climate Policy of KGHM is for the Parent Entity of the KGHM Polska Miedź S.A. Group to achieve climate neutrality by 2050 with respect to Scope 1 greenhouse emissions – direct emissions primarily related to the Company’s production activities, and Scope 2 – indirect emissions associated with the use of electricity and heat acquired from the market, with their maximum possible reduction. The intermediate target is to reduce total Scope 1 and Scope 2 emissions by 30% by 2030, compared to the emission levels of 2020. The reduction targets for the entire KGHM Group will be published no later than in the first half of 2023. The Company will intensify its carbon reduction activities and launch new initiatives in this area; the newly adopted Climate Policy will be used to structure them. The Climate Policy of KGHM Polska Miedź S.A. will support directly the implementation of UN Sustainable Development Goals in the following areas:
- SDG 7 – to ensure access to stable, sustainable and modern energy for everyone at an affordable price,
- SDG 12 – to provide sustainable patterns of consumption and production,
- SDG 13 – to take urgent action to combat climate change and its impacts.
The new KGHM Strategy to the year 2030 also identifies climate objectives associated with the reduction of CO₂ emissions by KGHM, which are consistent with those named in the Climate Policy of KGHM Polska Miedź S.A., a document complementary to the Strategy, and consistent with the climate objectives for 2030 and 2050, which is shown in the illustration below:
Greenhouse gas emission reduction goals of KGHM Polska Miedź S.A. and key carbon reduction directions
Every year KGHM introduces solutions manifesting its commitment to operations consistent with the idea of circular economy. One of the ways of using waste materials to pursue circular economy is the production of road construction aggregate from copper slag.
The Strategy of the KGHM Polska Miedź S.A. Group assumes that a stable level of copper production would be maintained in Poland and internationally, also based on increased processing of third party materials and recycled copper. Given the limited sources of copper ore, the acquisition of raw material by recycling copper scrap has become an important element of the Group’s activities. It is the ambition of KGHM to increase the recycling of scrap metal to reuse it in accordance with the Circular Economy concept.
Best practice
KGHM has taken decisive actions towards electromobility through the gradual and consistent replacement of its own transport fleet with zero-emissions electric vehicles, but above all through the development of ultra-fast charging stations available to the public in the Copper Basin area. In addition, as part of actions for protection of the environment and climate as well as the health and working comfort of the employees, the Company is engaged in work aimed at reducing emissions from engines of mining machines.
The priority for KGHM is to acquire energy from its own sources and renewable sources. In 2021, electricity produced in Gas-Steam Combined Cycle Units and other own energy sources covered 18.7% of KGHM’s overall electricity needs. The Company also continued programs of development of renewable energy sources.
In order to minimize the negative environmental impact of metallurgical technologies and maintain fully operational equipment protecting the environment, the Company has successfully adapted the units to the BAT Conclusions for the non-ferrous metals industry, including limitation of arsenic emissions. The metallurgical emission reduction parameters achieved as a result of investment projects are much better than the levels required by the law.
