Climate Policy of KGHM Polska Miedź S.A.

KGHM Polska Miedź S.A. is an enterprise operating in accordance with the principles of social responsibility and undertaking initiatives to mitigate its impact on the environment. The concept of sustainable development, including in particular the conservation of the natural environment, is one of the most significant principles guiding the Company’s activities.

KGHM Polska Miedź S.A., as one of the world’s leaders in the production of copper and silver, intends to continuously and consciously develop its activities in accordance with the principles of sustainable development and responsible business, conducting its operations in a manner which takes into account both the impact of the organisation on the climate and the impact of climate change on the Company.

These objectives and the means of achieving them are shown in the figure below.

In 2021 total Scope 1 and 2 greenhouse gas emissions by KGHM Polska Miedź S.A. amounted to around 3 million tonnes of eCO2 (tonnes of carbon dioxide equivalent). As a result of full implementation of GHG protocol, emissions in 2020, which at the same time is the base year for the reduction goals defined in the Climate Policy, were re-calculated. Comparing emissions in 2021 to those of the base year, we can see a slight increase in Scope 1 and 2 emissions. Total Scope 1 and 2 emissions increased by 2.62%. The small increase in Scope 1 and 2 emissions was due to higher electrolytic copper production. In comparing the greenhouse gas emissions ratio we can however see a slight decrease in emissions intensivity despite the increase in electrolytic copper production.

Greenhouse gas emissions by KGHM Polska Miedź S.A [tonnes of eCO₂]

The Climate Policy will be followed by the Decarbonisation Program of the Group, which will provide details on how the Climate Policy’s goals will be attained, as well as total capital expenditures on the realisation of activities aimed at reducing the emission of greenhouse gases.

In 2021 total Scope 1 and 2 greenhouse gas emissions by the KGHM Group amounted to 5.18 million tonnes of eCO2, of which around 60% was atributable to the Parent Entity (KGHM Polska Miedź S.A.). Emissions for the Group were calculated for the first time. Because of this, the year 2021 was set as the base year for monitoring changes in greenhouse gas emissions in the KGHM Group.

Information on Scope 3 greenhouse gas emissions for 2021 for KGHM Polska Miedź S.A. and the entire KGHM Group will be published in the fourth quarter of 2022.

The Resolution on the acceptance for application of the Climate Policy of KGHM Polska Miedź S.A. was the culmination of work which, in accordance with the announcements contained, among others, in the 2019 Report on Non-Financial Information of KGHM Polska Miedź S.A. and the KGHM Polska Miedź S.A. Group, had already been underway for more than two years. The multi-faceted regulatory and strategic analyses initiated at the time had shown that the European Community’s climate ambitions would have a key impact not only on the environment, but also on the Company’s competitiveness in international markets and on its production economics. At the same time, all information and data related to the Company’s greenhouse gas emissions issues were collected, aggregated and processed. All these activities made it possible to estimate the scale of the project and to create a preliminary work plan for it. In the next phase of work, the Company obtained the support of a renowned project consultant. The cooperation with the advisor was inaugurated by a special workshop, during which senior managers were able to learn about the conditions of project implementation, the work schedule and the role of individual organisational units in the entire process. This phase was carried out in a project group format, consisting of an Operational Team and a Steering Committee that reviewed the work of the various project streams. The project structure and personnel composition were set based on an Order of the President on the development and implementation of the Climate Policy of KGHM Polska Miedź S.A. Each project stream of the Operational Team consisted of a group comprising several to as many as several dozen persons, representing both management personnel and experts from specific areas of the Company’s and the KGHM Group’s operations. The streams were dedicated to issues related to different aspects of the project – from issues directly related to emissions, to topics in the areas of management and communication.