ORLEN releases its climate policy
The ORLEN Group’s energy mix until 2030, contribution of the carbon storage technology to reducing emissions as well as specific measures the Group will take to prevent and mitigate climate change-related risks are just some topics addressed by the Group’s climate policy that has just been released to the public. The document paints a comprehensive picture of the ORLEN Group’s approach to managing climate-related issues and systematises its existing initiatives in this area.
“ORLEN leads the energy transition in Poland, setting the relevant benchmarks. One of them is the ORLEN Group Climate Policy, which we have just published to detail our efforts towards climate neutrality by 2050. We pledged to achieve this target three years ago, as the first of Central Europe’s fuel and energy companies. The fact that we have now adopted a climate policy confirms to our investors that we are a reliable partner consistently pursuing its goals, not only to ensure the energy security for Central Europe, but also to protect the environment and promote alternative energy sources,” says Daniel Obajtek, CEO and President of the PKN ORLEN Management Board.
In 2021, the Management Board of PKN ORLEN adopted the ORLEN Group Sustainable Development Strategy for 2021–2023, in which it committed to develop a climate policy. At the end of 2022, the Group extended its environmental reporting framework to include Scope 3 emissions, which allow it to quantify greenhouse gas emissions across the value chain. As a result, the Group is able to disclose its total carbon footprint. In February 2023, ORLEN updated its business strategy while raising its emission reduction targets. By 2030, the Group wants to cut CO2e emissions in Upstream, Refining and Petrochemicals by 25%, reduce CO2e/MWh emissions in the Energy segment by as much as 40%, and achieve a 15% reduction in net carbon intensity (NCI) of energy products sold.
“Our updated strategy already covers all assets included into the Group as a result of the business acquisitions we completed last year. In addition, we have meaningfully raised our intermediate targets to reduce carbon emissions, which will make us step up the efforts in combating climate change. The ORLEN Group Climate Policy explains how we embraced these new, more ambitious targets and, just as importantly, how we envisage our path to achieving them. Despite the rapidly changing organisational and regulatory environment, we have drawn up a comprehensive document in which we show that we have the knowledge, experience and resources to be a responsible change leader,” says Iwona Waksmundzka-Olejniczak, Management Board Member for Strategy and Sustainability, Climate and Sustainability Officer.
The ORLEN Group Climate Policy sets out the specific measures taken by the Group on the road to carbon neutrality. It describes in detail how the decarbonisation targets are pursued and how the climate oversight function has been set up within the organisation. It specifies, among others, the responsibilities of the Climate and Sustainability Council and the Climate and Sustainability Officer. The function of the Climate and Sustainability Officer (and Chair of the Council) has been assigned to the Management Board Member responsible for Strategy and Sustainability. An important part of the Policy is the analysis of climate-related risks and opportunities. It discusses physical risks (such as rising temperatures and extreme weather conditions) that are materialising due to climate change, as well as transition risks, that is organisational and business changes that must be effected for the Group to grow and remain competitive beyond 2030. The publication also examines opportunities presented by low- and zero-carbon energy and sustainable mobility.
The ORLEN Group Climate Policy has been developed in accordance with the guidelines of the TCFD (Task Force on Climate-Related Financial Disclosures), a group established in 2015 by the Financial Stability Board, an international body that monitors and makes recommendations about the global financial system. These recommendations, widely accepted and endorsed by financial institutions, are designed to promote consistency among companies in reporting on climate change issues. Plans for the coming years include updating the climate policy, as well as periodic reporting on the progress in delivery of the decarbonisation targets.
The material can be found at www.orlen.pl/pl/zrownowazony-rozwoj/odpowiedzialnosc-za-klimat/Polityka-klimatyczna-Grupy-ORLEN