18.12.2023

ORLEN unveils its new sustainability strategy

ORLEN has unveiled its Sustainable Development Strategy for 2024–2030. The document outlines the organisation’s strategy and goals for minimising climate impact, promoting environmental stewardship, enhancing working conditions, fostering local community engagement, and embracing responsible governance. A significant element of the strategy is the Just Transition Programme for local communities in transition-impacted areas. The implementation of the ESG objectives is poised to enhance the ORLEN Group’s competitive standing, mitigate business risks, and foster the sustained creation of shareholder value.

‘Sustainability pays off. Hence our aspiration to be the regional sustainability leader. By adopting and executing our new comprehensive sustainability strategy, we provide additional assurance to our investors that we are a trustworthy and reliable partner, and for us the strategy is an opportunity for continuous development. We steadfastly pursue our goals, securing energy stability for Central Europe, while concurrently prioritising environmental stewardship, fostering positive relations with our external stakeholders, and ensuring safe working conditions for all employees. Through responsible actions, we can enhance our ability to secure financing for further strategic projects, particularly those related to the development of renewable energy. This strengthens our market position, aligning with our goal to become a carbon-neutral company by 2050,’ said Daniel Obajtek, CEO and President of the ORLEN Management Board.

The ORLEN Group’s Sustainable Development Strategy for 2024–2030 addresses the most pressing market and regulatory challenges of today, focusing on climate change, biodiversity protection, social relations, and the geopolitical and economic landscape.

Built on five key pillars, the strategy outlines targets that align directly with the UN Sustainable Development Goals and the EU ESRS reporting standards. This not only supports a comprehensive approach to responsible business conduct but also ensures detailed and transparent sustainability reporting in line with the CSRD and other regulatory requirements.

Climate

The ORLEN Group was the first energy company in Central Europe to have declared its ambition to achieve a net zero carbon footprint by 2050. The Group will reduce emissions in the refining, petrochemical and upstream segments by 25% (relative to 2019 levels) by 2030. In addition, it will cut carbon intensity in the energy segment by 40%, and net carbon intensity for total energy sold by the ORLEN Group by as much as 15%.

Delivery of these targets will be supported primarily by accelerating investment in zero- and low-carbon energy generation sources (including the first offshore wind farm with a capacity of 1.2 GW), improving the efficiency of existing assets, and investing in the construction of carbon capture and transport infrastructure. By 2035, the Group plans to discontinue heat and electricity generation using coal-fired assets, largely replacing them with advanced low-emission technologies.

Environment

ORLEN consistently explores innovative solutions that would bolster its competitive standing with a positive impact on the environment. This is why, aligned with its strategic direction, the Group will formulate a comprehensive action plan dedicated to preserving biodiversity within its operating areas. Simultaneously, a unified policy for sustainable water and wastewater management will be put in place across the Group. ORLEN is already effectively implementing the principles of a circular economy, with Blue Bridge as a key investment project. It will involve secondary treatment to further purify wastewater streams coming from the treatment plant operated by Wodociągi Płockie until they achieve the quality of process water and their subsequent reuse at ORLEN’s Production Plant in Płock, located about 5 km from the wastewater discharge point. This would reduce the amount of water taken from the Vistula River for use in selected plant processes by about 25%.

The ORLEN Group will also construct a waste incineration facility (ITPON) for hazardous waste of medical and veterinary origin, with an annual capacity of at least 50,000 tonnes, which will play a crucial role in eliminating hazardous substance landfills in Poland. In addition, PGNiG Termika, a company of the ORLEN Group, is planning to convert 40 hectares of industrial land in Warsaw into green space by 2025, with a beneficial effect on biodiversity. Consistent efforts are also under way to enhance the environmental friendliness of car washes at ORLEN service stations, targeting a 30-60% reduction in water usage and a 20% reduction in chemicals by 2030.

Employees

For years, ORLEN has consistently ranked among the region’s top employers. In line with its new sustainability strategy, the Group will redouble its commitment to the highest standards in working conditions and occupational safety, while tailoring its upskilling offerings to individual needs of its employees. Ongoing initiatives, including those promoting cancer prevention and employee volunteerism, which currently engage 3,000 employees benefiting 25,000 individuals, will be continued.

Communities

A good corporate citizen should actively support society, and ORLEN is dedicated to fulfilling this role as a responsible business, employer, and neighbour. A key initiative in the years ahead, in line with its strategy, will be the Just Transition Programme, addressing the social needs of residents in areas affected by the transition to a low- and zero-carbon economy.

ORLEN is presently engaged in various projects that not only support local communities but also mobilise residents to participate. This includes sponsorship of children and youth sports, involving approximately 300,000 children from across Poland annually in sports initiatives facilitated by ORLEN Group companies. Since 2018, the My Place on Earth project has awarded grants totalling PLN 11m to nearly 1,300 organisations, primarily in rural areas. For two decades, ORLEN has also supported State Fire Service and Voluntary Fire brigades, providing grants totalling PLN 21m to purchase vehicles, drones, and fire suits, among other necessities.

Governance

As part of its corporate governance policy, ORLEN remains committed to transparent relations with its key stakeholders. In the coming years, it will implement measures facilitating due diligence throughout the Group’s value chain, to ensure that trading partners, suppliers, and other stakeholders also adhere to the principles of sustainability. Intensified efforts will be directed towards developing a central model for managing cyber security within the Group. Furthermore, the Group will strive to uphold human rights throughout its value chain, fostering social cohesion and equity.

More details about ORLEN Group Sustainability Strategy for 2024-2030