The KGHM Polska Miedź S.A. Group is a global Company with rich mining and metallurgy traditions, open to new directions of development. At the present moment, due to its size, the KGHM Polska Miedź S.A. Group affects the well-being of communities, regions and even countries, and our values allow us to achieve the foregoing objectives in a wise and responsible manner.

In its relations with clients, employees, external partners and local communities, the KGHM Polska Miedź S.A. Group complies with the laws which are in effect in the countries where it carries out its operations. The Group also complies with voluntary obligations resulting from ISO and ASTM standards as well as from membership in international organizations such as the International Copper Association, European Precious Metals Federation, Eurometaux, Euromines, London Bullion Market Association, European Technology Platform on Sustainable Mineral Resources, European Innovation Partnership, Federation of European Mineral Programs, and domestic organizations, including: the Polish Association of Listed Companies, Stowarzyszenie Inżynierów i Techników Metali Nieżelaznych [Association of Non-Ferrous Metals Engineers and Technicians], Economic Chamber of Non-Ferrous Metals and Recycling, Polish Committee of the World Mining Congress, Polish-Canadian Chamber of Commerce, Polish Chamber of Commerce for High Technology, and the Employers’ Organization of Polish Copper. The KGHM Polska Miedź S.A. Group does not participate in undertakings which involve breaking the law and putting its reputation at risk.

The rules:

  • Compliance with the regulations of the commonly binding law as well as the internal regulations in effect in KGHM.
  • Compliance with both the obligations contemplated in the agreements, and verbal promises made to our clients, suppliers and social partners.
  • Reliable performance of assigned duties.
  • The KGHM Group does not offer or accept bribes or other material or personal benefits; and does not enter into cooperation with companies of doubtful reputation.

The KGHM Polska Miedź S.A. Group. takes responsibility for the quality of products and services

The KGHM Polska Miedź S.A. Group requires observance of the “zero tolerance for corruption” principles in mutual relationships. It puts special focus on transparency of transactions. It monitors the supply chain and product life. Business partners of the KGHM Polska Miedź S.A. Group are evaluated with regard to corruption risk. Business is conducted only with entities of proven reputation.

Thanks to appropriate procedural arrangements, the KGHM Polska Miedź S.A. Group prevents money laundering and the financing of criminal activities, including terrorism.

It specifically protects the personal data of its partners as well as commercial, technical or organizational information entrusted to it. The KGHM Polska Miedź S.A. Group is guided by the principles of fair competition.

The Corporate Social Responsibility Strategy regulates the KGHM Polska Miedź S.A. Group’s approach to achieving the position of a trusted and stable business partner through:

  • extensively promoting KGHM in domestic and international industry initiatives (related to sustainable development),
  • communication support in maintaining and developing trade cooperation with long-term and stable partners,
  • development of cross-sectoral cooperation,
  • attaining the position of the “investor of choice” thanks to compliance with the principles of sustainable development,
  • respecting human rights and expectations of local communities.
Activities on behalf of society

KGHM Group’s competition law policy

The KGHM Group has in place a Competition Law Policy. Its purpose is to establish the operational framework for the system that will enable the Group to ensure compliance with the competition laws prevailing in all the countries in which we operate.
Activities on behalf of society

Responsible supply chain policy

The KGHM Polska Miedź S.A. Group has a Competition Law Policy. Its purpose is to establish the operational framework for the system that will enable the Group to ensure compliance with the competition laws prevailing in all the countries in which we operate.

The KGHM Group complies with the highest standards of production and business ethics. We are guided by those principles across our value creation chain, which is reflected in the Code of Ethics of the KGHM Group. We are fully aware of the fact that selection of responsible suppliers, especially as regards the sourcing of conflict minerals (such as gold, tin, tungsten and tantalum) and silver, is of key importance for conducting operations oriented towards sustainable development. The foregoing issues are regulated in the Responsible Supply Chain Policy. Its purpose is not only to guarantee the selection of only responsible suppliers, especially with respect to the so-called conflict minerals (gold, tin, tungsten and tantalum) and silver, but also to ensure that the goods and services procured by us do not contribute to financing terrorism and are manufactured or provided in compliance with basic human rights, labor standards, standards of environmental protection and preventing corruption.
The Parent Company has fully implemented the internal responsible gold and silver supply chain management system which is comprised of the Responsible Supply Chain Policy in the KGHM Group and the Responsible Bullion Supply Chain Audit Procedure in KGHM Polska Miedź S.A. The system is subject to independent external audit to ensure its compliance with LBMA Responsible Gold Guidance and the LBMA (The London Bullion Market Association) certification.

In order to ensure compliance with the due diligence principles, the KGHM Group has implemented the internal system of responsible supply chain management which is comprised of the scope of the system’s application, the system’s organization, the participants of the process, the criteria for acknowledging a business relationship as being a high risk relationship, the supply chain audit process (taking into account the procedure of business partner reliability assessment), transaction monitoring, documentation storage and employee training. The management of the process has been entrusted to the Corporate Risk and Compliance Management Department Head, reporting directly to the Company’s Management Board. KGHM has also set up an e-mail address conflict.minerals@kghm.com to which any comments and observations related to the gold supply chain may be sent by employees, business partners and other stakeholders.

In 2018, all suppliers passed the Responsible Ore Supply Chain Audit Procedure with a positive result.

Activities on behalf of society

Social dialogue and cooperating with local communities

Approach to management in the area of relations with market stakeholders – wherever we operate or intend to operate, we hold meetings with local authorities. Due to the fact that KGHM Polska Miedź S.A. conducts its operations on several continents, it encounters various cultures and interacts with local indigenous communities. Maintaining proper relations is one of our priorities. We always act in accordance with the law and we care for KGHM’s reputation.

The Corporate Social Responsibility Strategy regulates the KGHM Group’s approach to forging collaboration with local communities and internal organizations through:

  1. building the principles of long-term cooperation for social engagement,
  2. determining the principles for conducting dialogue with local communities and gaining social approval for running the business (“license to operate”) on the basis of best business practices,
  3. implementing uniform and transparent principles governing charitable activities and sponsorship – building the position of a global leader who cares about the common good,
  4. creating social involvement programs to better understand the stakeholders’ expectations and respond to their needs,
  5. supporting KGHM’s key investment processes at all stages.

Approach to management in the area of relations with local communities – in every area in which we operate, we feel responsible for local communities, and we analyze the social and cultural aspects of our impact

As part of the social dialogue, KGHM Polska Miedź S.A. cooperates with the municipalities of the Copper Basin in, among others, their development strategies, it supports their growth through payment of taxes or hiring residents of adjacent towns and implements a number of social Agreements aimed at improving the living standard of the residents. The Company’s representatives participate in meetings and sessions of city and town Councils, and in events organized by local governments. Every year, the mayors of municipalities, towns and cities participate in festivities organized to commemorate Miner’s Day and the Metallurgy Worker’s Day. The parent company sponsors events organized by municipalities, grants support from the budget of the KGHM Polska Miedź Foundation, finances children’s summer and winter holidays, sponsors environmentally-oriented camps (the “Green School” program) and trips to the swimming pool.

In 2017, as part of our collaboration in the extension of the Żelazny Most Tailings Storage Facility to include a Southern Quarter, we signed Memoranda of Agreement with the municipalities of Rudna and Grębocice, which provide for funding until 2019 tasks in the following areas: children’s holidays, healthcare, spa holidays for adults, revitalization of parks and leisure areas, cleaning ditches, securing rivers, protection of soil and crops from harmful impacts of the industry, and protection of cultural heritage sites. A Memorandum of Agreement was signed with the Polkowice municipality for cooperation with KGHM in the following areas: organization and co-funding of summer and winter holidays for children and youth, healthcare, protection of soil and crops, identifying alternative heating solutions, wider Internet and mobile telephony access, support in preparation of recruitment processes conducted by KGHM and ensuring safety of the local communities directly adjacent to Żelazny Most.

In March 2018, a tripartite Memorandum of Agreement was signed between KGHM, Miedziowe Centrum Zdrowia (a health care center) and the Municipality of Głogów for conducting specialist research among residents with an increased level of arsenic.  
Since 2017, negotiations continued with the Municipality of Żukowice regarding the construction of the GG-2 shaft. In October 2018, a memorandum of agreement was signed in which, in addition to financial resources for the development of the municipality, KGHM will provide health care to residents and recreational cards.

This figure shows the results of the above activities.

The richest municipalities of Lower Silesia (ranking in Poland given in brackets):

Source: https://wroclife.pl/nasze-miasto/najbogatsze-gminy-dolnego-slaska-2017/

In June 2018, the Government of Canada, through the Governor-in-Council (Cabinet), issued a negative decision regarding the implementation of the Ajax project due to its anticipated significant adverse environmental impact.

Decisions were made in the process of environmental impact assessment which included the substantial involvement of provincial and federal government agencies, indigenous groups and a broad range of stakeholders, including thousands of representatives of local communities.

In 2018, work related to necessary monitoring and security of existing infrastructure were carried out.

Activities on behalf of society

Foundations, sponsorship and CSR activities

KGHM is a “good neighbor and trustworthy investor”. We support local communities, social organizations and institutions related to science, culture and sport. We promote an active lifestyle and help people in need.

KGHM Polska Miedź Foundation

The KGHM Polska Miedź Foundation was established in 2003 to continue long traditions of pro publico bono activities conducted by its Founder – KGHM Polska Miedź S.A., and to implement local and regional initiatives and projects of national and global reach.

The Foundation supports important social initiatives and interesting projects in the following four areas: health and safety, science and education, sports and recreation, and culture and tradition.

After three years’ of operation, it obtained the status of a public benefit organization, while in 2008 it expanded its activities to include donations for natural persons, previously supported by the Charity Committee of KGHM.

A determinant of the Foundation's day-to-day activities are the values held by the Founder, which include security, cooperation, results orientation, responsibility and courage. The basis for the operation of the KGHM Polska Miedź Foundation are financial and material donations granted to:

  • individuals in the field of health protection and assistance to victims of natural catastrophes and disasters; 
  • Institutions for project execution 

In 2018, the Foundation supported many valuable activities, and yet it was not able to meet the growing needs of the environment and society. The level of aid granted to the institutions accounted for 29% of all applications registered, and in the case of support for individuals, it was 23%. 

The projects planned for 2019 are a natural continuation of the Foundation's activities to date and the result of program changes determined in the course of mutual arrangements between the Management Board and the Foundation Council and the authorities of KGHM Polska Miedź S.A. – the Founder. The assumptions are based on an analysis taking into account the needs of the inhabitants of the Copper Basin, Lower Silesia and all of Poland as regards health and safety, sports and recreation, culture and tradition and science and education. 

The activity of the KGHM Polska Miedź Foundation in 2019 will continue to focus on granting donations and controlling their spending as well as on running programs and courses. The commitments undertaken by the Foundation will be carried out with the utmost care, thorough analysis of the submitted requests and with a detailed consideration of the capacity to help. 

As in previous years, applications for donations will be accepted by the Foundation Office, while they will be examined at meetings of the Foundation Board. 

The most important result values related to the statutory activity of the KGHM Polska Miedź Foundation in 2018 are as follows:

Health and safety

are the strategic area of operation for the KGHM Polska Miedź Foundation. In 2018 funding was provided for the implementation of 74 projects, amounting to PLN 3,686,410.00 and 175 individuals were granted donations amounting to PLN 1,499,880.67.

Sports and recreation

is the area of operation for the KGHM Polska Miedź Foundation which was the most popular one among the Foundation’s beneficiaries in 2018. PLN 4,570,032.10 was spent for the implementation of 171 projects.  
The Foundation considers sport and recreation an important field of social life and therefore intends to continue activities promoting an active and healthy lifestyle.

The Foundation

respects the cultural heritage of previous generations. In 2018 alone funding was provided for 150 projects in the area of culture and tradition, in total amounting to PLN 8,263,551.65.
In 2019, the Foundation intends to support projects consisting in commemorating and promoting Polish cultural or historical heritage as well as strengthening local cultural identity and participation in culture at the local, regional, national and global level.

Science and education

is the area of operation for the KGHM Polska Miedź Foundation for which in 2018 PLN 2,565,532.33 was spent for the implementation of 74 projects.
In 2019, the Foundation intends to conduct comprehensive activities supporting the development of education, science as well as the industry and higher education sector. It will promote innovation in education and the need for education in line with trends observed in the labor market.  More information on the activity and projects of the KGHM Polska Miedź Foundation may be found at http://www.fundacjakghm.pl/

In 2014, KGHM Polska Miedź S.A. created Revimine Foundation whose main goal is the implementation of activities protecting cultural heritage and metallurgical traditions of the Copper Basin. The Foundation supports projects and initiatives aimed at technical, environmental and social regeneration of post-industrial areas excluded from exploitation.

Since 2016, KGHM Polska Miedź S.A. together with over a dozen other major Polish enterprises from key sectors of economy, is a founder of the Polish National Foundation. More about PFN at https://www.pfn.org.pl

Sponsorship

The Parent Company is a patron of culture and science. It supports both local and nationwide initiatives. It regularly supports a number of sports initiatives addressed both to children and to adults. It provides financing for professional and amateur sports activities. Hence the cooperation of KGHM Polska Miedź S.A. with swimmer Radosław Kawęcki.

The Parent Company is the major sponsor (owner) of Zagłębie Lubin – a football team from Ekstraklasa, the top Polish professional league, but the company also supports handball or volleyball clubs (teams playing in top league games in Poland).

For years, KGHM Polska Miedź S.A. has been one of the sponsors of “Bieg Piastów”, a cross-country skiing marathon, in Jakuszyce. KGHM also supports other running events – “Cross Straceńców” (Cross-Country Race of Desperados), the New Year running and walking event in Głogów, the Wolf’s Trail Run to commemorate Polish “cursed soldiers”, as well as local sports organizations whose members include employees of the KGHM Group.

To ensure transparent rules of taking decisions to support a given project, offers are analyzed by the Sponsorship Committee. Decisions issued by the Committee are recorded in a report, which is approved each time by the President of the Management Board of KGHM Polska Miedź S.A.

The sponsorship activity of the KGHM Group is subject to regulations given in the Sponsorship Policy of KGHM Polska Miedź S.A. and the procedure of obtaining an opinion from the Sponsorship Committee.

Amounts granted in 2018 by KGHM Polska Miedź S.A. as part of its Sponsorship per area:

AreaAmounts granted (PLN)
Sport
22 289 270,00
Culture5 514 214,75
Science1 826 500,00
Total29 629 984,75

The amount granted in the KGHM Group (without the Parent Company) as part of its Sponsorship activity in 2018 was: PLN 5,409,972.

KGHM Polska Miedź S.A. CSR Programs

Social responsibility and sustainable development are important elements of business operations today. A Company that cares for the development of its own organization must take into account activities aimed at achieving a balance between its profitability and the broadly understood social interest.
The CSR is particularly important in the mining industry. Due to the specificity of their operations, Companies like KGHM have a special responsibility for the implemented projects.
In implementing the mission of social responsibility, the Company is aware that a stable and prosperous future is marked by good relations with all its stakeholders. Hence the need for a continuous dialogue with our stakeholders, which allows renewing the “operating license”, so important for the Company, and manifested by the social acceptance of its business activity.

EKO Zdrowie [ECO Health]

The EKO-Zdrowie program was launched over 4 years ago as part of the Company’s social responsibility efforts.
Pro-health projects implemented as part of the EKO-Zdrowie program are addressed to the largest possible number of recipients of different age. By such a wide range of program activities, KGHM is striving to achieve a balance between the business interest and the social interest of the environment in which the company operates. The health-promoting activities of the Program include cyclic Nordic Walking Activities for adults, recreational gymnastics for Seniors 60+ and swimming lessons for children. The Nordic Walking project is addressed to people over 40 years of age. It assumes cyclic activities with the participation of qualified and experienced instructors in various cities and towns of the Copper Basin.(Measure: so far, the 7 editions of the activities gathered over 1,000 participants.)

In the autumn of 2018, the next edition of swimming lessons in five towns of the region took place. The swimming learning program offered regular lessons of swimming basics for children aged 5-10. Classes were held in indoor swimming pools in several towns of the Copper Basin. Over 350 children participated in them, developing their basic swimming skills under the supervision of qualified instructors from swimming clubs in the region, licensed by the Polish Swimming Association. (Measure: so far, the 7 editions of the swimming classes gathered 2,000 children.)

In addition to the above projects, in autumn 2018 KGHM Polska Miedź S.A. implemented a recreational gymnastics class for Seniors 60+, in which specialist hammocks were used. The project gathered 90 people in two cities: Lubin and Legnica (45 people each), from October to December. (Measure: so far, 1 edition of the class has been held, which gathered 90 participants aged 60+.)

Volunteering "Copper Heart"

We are particularly proud of our global employee volunteering program. Our program has already been in place for several years and, thanks to the commitment of our employees, we have carried out dozens of major projects and activities as part thereof. We have helped those in need and, at the same time, released huge amounts of positive energy and capabilities. The benefits of the volunteering program are not only a positive image of the Company but also highly-motivated employees. Moreover, thanks to their participation, volunteers develop their own competencies, including leadership skills, teamwork, communication, and analytical or problem-solving skills. Such development
pays off in the workplace. Volunteering strongly integrates us and strengthens our identification with the Company.
The “Copper Heart” employee volunteering program is in place at KGHM Polska Miedź S.A. For years, there have been individual initiatives of employees to
spontaneously help others by sharing skills, competencies, knowledge and professional experience. Such initiatives have now been integrated and enjoy support at Group level. Our “Copper Heart” program proves that combining
social activities and an opportunity to pursue one’s own interests is an excellent idea. Our program involves active participation in activities supporting local communities and environmental protection projects.

PDF Version

Download KGHM Sustainable Report 2018 in PDF

Download