GOVERNANCE

Corporategovernance

PKN ORLEN ensures easy and equal access to published information using various communication tools.

As a company listed on the Warsaw Stock Exchange, we apply all the principles included in the Code of Best Practice for WSE Listed Companies 2016.

We are also developing the ‘ORLEN IN YOUR PORTFOLIO’ programme, including the Investment Academy. The programme, launched in 2018, is dedicated to retail investors. In 2020, the project was joined by a sixth brokerage house, and now brings together brokerages that, combined, operate 60% of investment accounts in Poland.

Corporate governance-related issues are discussed in the ‘Corporate governance’ section of the Integrated Report. The section contains the following information:

IntegratedManagement System

We operate on the basis of the Integrated Management System, which comprises the following systems:

Quality Management System based on the PN-EN ISO 9001 and AQAP 2110 standards;
Environmental Management System based on the PN-EN ISO 14001 standard;
Occupational Health and Safety Management System based on the PN-EN ISO 45001 standard;
Energy Management System (SZEn) based on ISO 50001;
Information Security Management System based on PN-ISO/IEC 27001;
International Sustainability & Carbon Certification System (ISCC EU);
Sustainability Certification System for Biomass and Biofuels (KZR INiG);
Factory Production Control System (ZKP);
HACCP Food Safety Management System compliant with Codex Alimentarius standard;
Quality Management System based on the PN EN ISO/IEC 17025 standard (in place at all the organisational units which conduct research or tests using methods that require approval by the Office of Technical Inspection (UDT));
Risk Based Inspection Management System (RBI).

These systems meet the highest international management standards and are applied by the company in its day-to-day efforts to ensure professional customer service and maintain top health protection and environmental standards.

In 2020, PKN ORLEN was subject to a periodic external audit. As a result, the Company obtained certificates of compliance with international standards for its activities.

For information on the Integrated Management System, see ‘Integrated Management System’.

CollectiveBargaining Agreement

The Collective Bargaining Agreement is a social contract, being a source of labour law, that has been reached through negotiations between the Employer and Trade Unions. It is an HR constitution of sorts that sanctions a motivating and coherent remuneration and bonus system, sets standards for Employer-Employee relationships and provides norms governing an equal partnership between the Employer and Trade Unions.

Counteractingcorruption and bribery

The ORLEN Group has in place effective functional control, risk management and compliance supervision systems, as well as an internal audit and control function. The simultaneous operation of all those systems and functions allows the Group to exercise ongoing and effective supervision to prevent corruption, illegal bonuses or conflicts of interests.

PKN ORLEN is committed to building an ethical work environment. In May 2021, the ‘Core Values and Standards of Conduct of PKN ORLEN’ were replaced by a new
Code of Ethics. The document presents the key considerations relating to ethics at the Company. The Code of Ethics defines the values and standards of conduct which ORLEN Group employees undertake to respect: Responsibility, Progress, People, Energy and Dependability. These values have not changed.

In 2018, the ORLEN Group adopted an Anti-Corruption Policy and appointed an Anti-Corruption Compliance Officer. Our trading partners, when entering into business relationships with PKN ORLEN, are required to become familiar with the policy and rules for counteracting corruption.

For key policies and procedures governing prevention of corruption and bribery at the ORLEN Group, as well as a description of key activities, see ‘Counteracting corruption and bribery’.

Diversity indicators

Composition of governance bodies and breakdown of employees per employee category according to gender, age group and other indicators of diversity

Integrated Management SystemExternal and internal audits of Integrated Management System at PKN ORLEN

Description	UoM	2020	2019	2018	2017	2016	2015	GRI Indicator
Internal audits	number	535	513	537	572	496	584	GRI 102-11
Audits of correct monitoring of CO2 emissions	number	15	15	14	14	15	15
Audits at product vendors and service providers	number	13	8	19	13	15	15
ISCC audits	number	7	7	7	10	6	5

Risk ManagementEnterprise Risk Management System (ERM)

Description	UoM	2020	2019	2018	2017	2016	2015	GRI Indicator
Risks assessed at PKN ORLEN and other ORLEN Group companies covered by ERM	number	1,171	1,185	1,129	1,557	527*	675*	GRI 102-15
Areas assessed:
control mechanisms	number	2,800	2,806	2,921	4,001	1,251*	1,280*
business processes	number	316	345	301	298	83*	85*