NON-FINANCIAL

REPORT

___________________

CIECH Group

2022

KRS 0000011687

Regon: 011179878

NIP: 118-00-19-377

Share capital: 263 500 965,00 PLN (fully piad-up)

62 Wspólna Street, 00-684 Warsaw

Tel. +48 22 639 11 00

ciech@ciechgroup.com

We are providing a courtesy English translation of our Non-Financial Report which was originally written in Polish. We take no responsi-

bility for the accuracy of our translation. For an accurate reading of our Non-Financial Report, please refer to the Polish language version

of our Non-Financial Report.

5,415

Sales revenue [PLN m]

565

Net profit [PLN m]

1,033

EBITDA(Z) [PLN m]

8,093

Asset value [PLN m]

3,512

Employees

1,021

EBITDA [PLN m]

Business Segments

  NON-FINANCIAL REPORT 2022 
 
ciechgroup.com   3 
CONTENT 
LETTER BY THE PRESIDENT OF THE MANAGEMENT 
BOARD ............................................................................ 4 
CIECH GROUP ................................................................. 6 
OUR VALUES................................................................................. 7 
OUR PRODUCTS .............................................................. 8 
SODA SEGMENT ........................................................................... 8 
AGRO SEGMENT – PLANT PROTECTION PRODUCTS .................. 15 
FOAMS SEGMENT ...................................................................... 17 
SILICATES SEGMENT ................................................................... 18 
PACKAGING SEGMENT ............................................................... 19 
QUALITY AND SAFETY OF PRODUCTS ......................................... 20 
SUSTAINABLE  DEVELOPMENT STRATEGY ..................... 24 
ESG STRATEGY – “CHEMISTRY FOR A BETTER WORLD” ............. 24 
ENVIRONMENTAL AREA ............................................................. 26 
SOCIAL RESPONSIBILITY AREA .................................................... 29 
CORPORATE GOVERNANCE AREA .............................................. 30 
OUR IMPACT ON THE ENVIRONMENT ........................... 31 
GREENHOUSE GAS  EMISSIONS .................................................. 33 
AIR QUALITY ............................................................................... 42 
ENERGY ...................................................................................... 46 
WATER RESOURCES AND SEWAGE MANAGEMENT ................... 51 
WASTE AND HAZARDOUS MATERIALS ....................................... 52 
RESTORATION OF DEGRADED AREAS - RECLAMATION .............. 53 
LEGAL STATUS OF USING THE ENVIRONMENT .......................... 54 
CIECH GROUP’S OPERATIONS IN THE CONTEXT OF 
EU TAXONOMY ............................................................. 55 
RISK  MANAGEMENT .................................................... 66 
OUR EMPLOYEES AND ASSOCIATES .............................. 72 
EMPLOYEE ENGAGEMENT, CORPORATE CULTURE AND 
EMPLOYEE RELATIONS ............................................................... 72 
EMPLOYEE DEVELOPMENT ........................................................ 78 
WE CHECK THE PULSE OF OUR ORGANISATION  ........................ 80 
DEVELOPING AN ATTRACTIVE BRAND ON THE LABOUR 
MARKET ..................................................................................... 81 
INTERNAL COMMUNICATION AND EMPLOYEE 
ENGAGEMENT ............................................................................ 84 
FIGURES AND RATIOS ................................................................. 85 
SAFETY AND HEALTH OF OUR EMPLOYEES AND 
CRITICAL INCIDENT  MANAGEMENT ............................. 89 
LABOUR SAFETY MANAGEMENT ................................................ 90 
RISK ASSESSMENT ...................................................................... 95 
FIGURES AND RATIOS ................................................................. 96 
OPERATIONAL EXCELLENCE .......................................... 97 
OUR  ENVIRONMENT .................................................... 99 
MEMBERSHIP IN ORGANISATIONS ............................................. 99 
RELATIONS WITH LOCAL COMMUNITIES ................................. 101 
PUBLIC AID ............................................................................... 104 
CORPORATE      GOVERNANCE .................................... 105 
GOVERNANCE STRUCTURE ....................................................... 105 
SHAREHOLDERS OF THE CIECH GROUP .................................... 107 
BUSINESS MODEL ..................................................................... 107 
MANAGEMENT STANDARDS AND COMPLIANCE SYSTEM ........ 108 
CODE OF CONDUCT OF THE CIECH GROUP .............................. 108 
CODE OF THE BUSINESS PARTNER OF THE CIECH GROUP ........ 111 
KYC (KNOW YOUR CUSTOMER/SUPPLIER) VERIFICATION ........ 113 
LIST OF INTERNAL PROCEDURE ................................................ 114 
RULES FOR REPORTING VIOLATIONS ........................................ 115 
COUNTERACTING CORRUPTION AND FRAUD ........................... 115 
OBSERVANCE OF HUMAN RIGHTS ............................................ 116 
COMPETITION PROTECTION ..................................................... 116 
COUNTERACTING CONFLICTS OF INTEREST ............................. 116 
ABOUT THIS  REPORT ................................................. 118 
INDEXES ..................................................................... 122 
GRI CONTENT INDEX................................................................. 122 
TABLE OF COMPLIANCE WITH THE REQUIREMENTS OF 
THE ACCOUNTING ACT ............................................................. 123 
 
 
   

NON-FINANCIAL REPORT 2022

ciechgroup.com 4

LETTER BY THE PRESIDENT OF THE MANAGEMENT BOARD

DEAR SIR

OR MADAM,

I kindly encourage you to read the Non-Financial Report of the CIECH Group for 2022,

which presents the impact of our company on its environment and our initiatives in the

areas of sustainable development, environmental protection, business ethics and em-

ployee matters. Last year featured a very important moment for our organisation, the

publication of the Strategy of the CIECH Group for 2022-2024, the primary goal of which

is to build a modern chemical group ready to meet the challenges of the future, creating

value for its stakeholders.

NON-FINANCIAL REPORT 2022

ciechgroup.com 5

What is particularly of essence to me is that our new business

strategy remains consistent with the goals of CIECH's ambitious

ESG strategy and our Group's commitments towards the world

around us. I am proud that the principles of sustainable develop-

ment define the basic direction of our development - we know

the importance of our responsibility towards the planet and the

future generations to whom we will leave it. Accordingly, our fi-

nancial and economic goals are pursued in harmony with care for

natural resources and the environment and supported by a wide

range of socially important initiatives, relating both to employees

and third-party stakeholders. At the same time, we strive for full

transparency of our operations and impact on the environment,

as well as to enable our partners and external stakeholders to

continuously verify our progress on the path of energy transfor-

mation.

Our long-term environmental goals remain unchanged – to phase

out coal in our production processes by 2033 and achieve climate

neutrality by 2040. One of our strategic priorities is the energy

transformation, focusing primarily on the Soda segment. Our

plans in this area include, among others: obtaining energy from

thermal waste processing installations or the use of biomass

fuels.

We have also given strategic importance to the area of occupa-

tional safety. Our goal is to become an industry leader in this re-

gard, setting the best market standards, and our primary commit-

ment is to reduce the frequency of injuries in our plants by 30%

by the year 2024. I am happy that our “Safe CIECH” campaign run

within the Group brought spectacular results in 2022, and six of

our companies received awards for achieving the “zero injuries”

goal over the past year.

2022 was the first full year of functioning of the Code of Conduct

of the CIECH Group and the Code of the Business Partner, on the

basis of which we responsibly undertake cooperation only with

those counterparties who share our values in the area of care for

the environment, society and the highest standards of corporate

governance.

The past year was yet another one in which we faced dynamic

changes. It was not only a trial period for business, but also a test

of our humanity. The challenges related to the pandemic period

were joined by the new ones arising from the tragedy of the war

in Ukraine. Therefore, this year the social aspect of our ESG strat-

egy gained particular importance, which we implemented, among

others, by donating protective masks and mattresses produced in

our factory in Bydgoszcz to help points for refugees from Ukraine,

or by providing our neighbours with medical supplies and power

generators. We also kept participating in other initiatives, both

those important for the local communities in which we operate

and those identified by our employees.

I am pleased to emphasise that our products support the imple-

mentation of the sustainable development goals defined by the

United Nations, while remaining a symbol of the best market

quality. The prestigious International Food Standard certificate

for salt from our German evaporated salt plant, awarded in 2022,

or the fact that CIECH Pianki - as the first Polish manufacturer of

polyurethane foams - received the ISCC Plus (International Sus-

tainability and Carbon Certification) certificate, are examples of

CIECH's efforts to meet the challenges of the future. Invariably,

our basic product - soda ash - supports progress in the world's key

areas related to renewable energy sources or the development of

electromobility.

Since 2019, we have been undergoing a transformation as part of

which we consistently change the CIECH Group into a modern

holding with a global reach, acting in line with the idea of sustain-

able development, where financial and economic goals are pur-

sued in harmony with care for natural resources and the environ-

ment, and supported by a wide range of socially relevant initia-

tives, concerning both our employees and external stakeholders.

We also care about full transparency of our activities and impact

on the environment.

Presenting this report, which is a comprehensive description of

the CIECH Group's impact on its environment, I would like to

thank all our employees, partners and external stakeholders with

whom we combine our efforts to implement the idea of corporate

social responsibility.

Yours faithfully

Dawid Jakubowicz

President of the Management Board of CIECH S.A.

NON-FINANCIAL REPORT 2022

ciechgroup.com 6

CIECH GROUP

The CIECH Group is a global chemical

group of companies, focusing on promis-

ing markets.

The CIECH Group is an international, professionally managed

group, with a well-established leader position in the chemical in-

dustry in Central and Eastern Europe. It employes over three

thousand people in the European Union. It manufactures prod-

ucts that are used to create articles necessary in the daily lives of

millions of people around the world, which is why it is an im-

portant element of many branches of the economy - construc-

tion, automotive, agriculture, chemical, food and pharmaceutical

industries.

We are the second largest manufacturer of sodium carbonate

(soda ash) and sodium bicarbonate (baking soda) in the Euro-

pean Union, one of the largest manufacturers of evaporated salt

in Europe, the largest supplier of sodium silicates in Europe, the

largest Polish and one of the largest European manufacturers of

plant protection products, and a leading producer of polyure-

thane foams in Poland.

The clients of the CIECH Group are both global chemical groups

and smaller customers from Europe, Asia, North and South Amer-

ica and Africa. Our products are sold to over 100 countries around

the world. The most important market for the CIECH Group's

products is the European Union, predominantly Poland and Ger-

many, as well as the countries of Central and Eastern Europe.

The priority of the CIECH Group is the maximum adjustment of

the offer to the individual needs of the customer and the provi-

sion of the highest level of service understood as the quality of

customer service, product quality, level of logistics, product avail-

ability and delivery guarantee.

Figure 1 Geographical structure of the CIECH Group's reve-

nues in 2022

Africa

0,5%

Other

0,5%

European

Union

47%

Poland

48%

Other European

countries

Asia

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ciechgroup.com 7

As of 31 December 2022, the CIECH Group comprised 42 busi-

ness entities.

Figure 2. Structure of the CIECH Group in 2022

The strategic and operational goals

of the CIECH Group are realised within

the organisational structure based

on functional divisions, covering the func-

tions of sales, production, purchases,

and support.

The headquarter of the CIECH Group is located in Warsaw. Com-

mercial activity is carried out primarily by CIECH S.A., subsidiaries

of CIECH S.A. - domestic and foreign commercial companies and

selected production companies (CIECH Sarzyna S.A., CIECH Vitro-

silicon S.A., SDC Group, CIECH Pianki Sp. z o.o.).

Production activity is carried out by production plants, which are

also subsidiaries of CIECH S.A. Production is located in 9 produc-

tion plants, of which the five largest (two in Poland, two in Ger-

many and one in Romania) operate in the Soda segment and pro-

duce soda ash and soda derivatives (in the case of CIECH Soda Ro-

mania S.A., the plant also manufactures products of the Silicates

segment, the soda plant in Janikowo also manufactures salt prod-

ucts, and the plant in Germany produces electricity which is fur-

ther sold to third-party entities). The remaining 4 plants operating

in the Agro, Foams, Silicates and Packaging segments are located

in Poland. The production of soda at the plant in Romania was

suspended in the third quarter of 2019 (more information can be

found in our Current Report No. 40/2019).

OUR VALUES

RESPONSIBILITY

We are not indifferent to our work, because we treat CIECH as our

own business. We care about how our company is doing, how it is

developing, how it is perceived and how our associates feel in it.

This is why we take responsibility for our words and actions: for

the effects of our work, for quality, reliability, customer, and as-

sociate satisfaction, and for their safety.

We are able to look wider and further, anticipating the conse-

quences of our actions and decisions on others and identifying

risks and opportunities early enough to be able to take effective

action.

RELIABILITY

We guarantee the quality and timeliness of all our activities.

We keep our word and commitments, and we are transparent in

communication, providing reliable information. This enables us to

build relationships based on trust and to be a reliable partner for

our employees, customers, and investors.

TEAM

As the CIECH Group, we are reliable thanks to our team approach.

We trust one another, we share information and knowledge.

We care for and support one another on the way to achieving a

common goal, using the strengths of each person.

DEVELOPMENT

We know that by standing still, we are actually going backwards.

To build a stable future, we must continuously develop and move

forward. That is why we are actively looking for ways to improve

our processes, working methods and competences.

We follow trends, broaden, and deepen our knowledge, and de-

velop our skills. We are committed to the development of our em-

ployees, introduce modern tools and create an inspiring work en-

vironment conducive to development.

Subsidiaries

Parent company

Foreign

affiliate

Domestic

affiliates

Jointly

controlled

domestic entity

Jointly controlled foreign

entity

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ciechgroup.com 8

OUR PRODUCTS

We manufacture both core raw materials in inorganic chemistry

(e.g., sodium carbonate) and products with a higher degree of

processing (sodium bicarbonate, silicates, plant protection prod-

ucts). Many of our products are not used directly by consumers

but are a significant contribution to final products that support

the achievement of the United Nations Sustainable Develop-

ment Goals.

Almost 90% of our revenues come from

the sale of products whose end-use sup-

ports the achievement of the UN sustain-

able development goals

SODA SEGMENT

The Soda segment is the area with the greatest share in the

Group's financial results. In 2022, it was responsible for 77% of

the Group's EBITDA. In this segment, we manufacture sodium car-

bonate, sodium bicarbonate, salt, and other products such as cal-

cium chloride or hopcalite. In addition, we are a seller of low-

emission (gas) electricity in Germany, which serves, among oth-

ers, local system regulation and balancing.

SODA ASH

• We are the second largest producer in Europe.

• We currently produce soda ash in Inowrocław, Janikowo and Stassfurt.

• Production capacity: up to 2.6 million tonnes per year

BAKING SODA

• We are the second largest producer of baking soda in Europe.

• We manufacture it in Inowrocław and a state-of-the-art plant in Stassfurt.

• Baking soda is produced from soda ash.

• Production capacity: up to 200 thousand tonnes per year.

SALT

• Currently produced in Janikowo and the ultra-modern plant in Stassfurt

• The total production capacity for salt is approx. 1 million tonnes per year.

Including the production plant in Romania remaining in hibernation and the soda ash used in the production of sodium bicarbonate (baking soda).

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ciechgroup.com 9

SODA ASH

(SODIUM CARBONATE NA2CO3)

Sodium carbonate is one of the basic raw materials for glass pro-

duction - about half of the soda produced worldwide is used in

the glass industry. We are the second largest producer of soda

ash in Europe.

Our customers use CIECH soda to manufacture, among others:

• flat glass for construction, used in modern and effective ar-

chitecture,

• photovoltaic and solar panels,

• automotive glass, used among others in the production of

electric vehicles,

• environmentally friendly glass packaging,

• packaging vials for medicines and other glass packaging, as

well as instruments used in pharmacy and laboratories,

• environmentally friendly washing and cleaning agents.

In addition, soda ash is used in metallurgy and in the chemical in-

dustry, e.g., to produce certain types of mineral fertilisers, as well

as dyes and pigments.

There are two basic types of soda ash:

DENSE SODA

mainly used to produce glass,

LIGHT SODA

mainly used to produce loose detergents.

The main difference between light and dense soda is the bulk

density (1 tonne of light soda is of higher volume than 1 tonne of

dense soda), and the basic chemical characteristics are identical.

The type of product purchased by customers depends primarily

on the technology they use and on their individual preferences.

The CIECH Group sells soda ash both in bulk and packed in big and

smaller bags. Bulk product is transported to the customer in spe-

cial cisterns or railway wagons, and packaged product - by road

or rail transport. Soda ash is also transported by ships, in bulk or

in packages, most often loaded into containers.

BAKING SODA “SOBIC”

(SODIUM BICARBONATE - NAHCO3)

Baking soda is a product made of soda ash. It is an important phar-

maceutical product, whether used alone (e.g., for dialysis) or as

an ingredient in medicines. It is also used in the cosmetics indus-

try. We are the second largest producer of baking soda in Europe.

PHARMACEUTICAL-GRADE DIALYSIS SODA

Specially purified soda with strictly defined granulometric pa-

rameters and meeting the requirements of strict regulations

(including API certification, GMP+).

PHARMACEUTICAL-GRADE SODA

It has acid-neutralising properties, the ability to bind other

substances and cleaning properties, which makes pharma-

ceutical-grade soda widely used in the pharmaceutical and

cosmetic industries.

FOOD-GRADE SODA

A product with a wide range of applications in the food indus-

try and in households. CIECH food-grade soda that meets the

requirements of the relevant regulations regarding products

admitted to consumption (including IFS certification).

FEED SODA

Feed material used by both feed producers and individual

farmers.

INDUSTRIAL-GRADE SODA

The product is widely used in numerous industries, primarily

as a sorbent in flue gas desulfurisation installations, in the

production of detergents, as well as in the paper and chemi-

cal industries.

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ciechgroup.com 10

PRODUCTION PROCESSES OF SODIUM

CARBONATE AND BICARBONATE

The production of soda in the CIECH Group is the responsibility of

the following three companies: CIECH Soda Polska S.A. (plants in

Janikowo and Inowrocław), CIECH Soda Deutschland GmbH & Co.

KG (Stassfurt) and CIECH Soda Romania S.A. (Ramnicu Valcea –

production suspended in September 2019). Sodium carbonate is

produced in all plants and sodium bicarbonate – in Inowrocław

and Stassfurt.

Main raw materials used in the production process in the Soda

segment include limestone, salt brine, ammonia, furnace fuel

(coke or anthracite) and heat (in the form of high-quality process

steam).

Soda ash production plants are in the immediate vicinity of lime-

stone and brine suppliers - this is necessary due to the high costs

of transporting this raw material. In the case of the production

plant in Germany, we use our own deposits of both brine and

limestone. In the case of the Group's Polish plants, we have long-

term relationships with suppliers of these key raw materials. In

2022, we concluded agreements securing the supply of brine to

the production plants of CIECH Soda Polska S.A. by the end of

2035 under predictable conditions.

Coke is the so-called furnace fuel, used to burn limestone and pro-

duce carbon dioxide used in the further part of the process. Coke

is usually supplied under short or long-term contracts. In the soda

production process, coke can be replaced with anthracite, which

is slightly less efficient. In practice, we usually use a mix of coke

and anthracite, and their share depends primarily on prices and

availability on the market.

The largest component of manufacturing costs in the production

process is heat energy in the form of process steam – production

plants in Poland and Germany have their own CHP plants. The en-

ergy resource used in Inowrocław and Janikowo is hard coal, and

in Stassfurt, Germany - natural gas. Hard coal supplies are made

under both short-term and annual contracts with a fixed price or

adjusted by various indexes, and the costs of gas supplied in Ger-

many refer to the market prices of this raw material (in the case

of options - to prices under option contracts). The plant in Roma-

nia, where production has been suspended since September

2019, used process steam purchased from an external supplier.

ENERGY

• Electricity

• Process steam

Cogenerated from thermal coal or natural

gas in our own CHP plants or obtained

from an external supplier.

RAW MATERIALS

Brine

Limestone

Code or anthracite

Ammonia

CONTINUOUS CHEMICAL REACTION

• Burning limestone

• Brine purification

• Absorption

• Carbonisation

•

Filtration

• calcination

LIGHT

SODA

DENSE

SODA

BAKING

SODA

SALES

Production process

Soda monohydrate

Crushed soda

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ciechgroup.com 11

In recent years, we have been intensively developing the Soda

segment. After expanding the production capacity of the soda

plant in Inowrocław by 200 thousand tonnes per year imple-

mented in 2016, in 2020 we completed the implementation of a

several-year project to increase the production capacity of baking

soda at the plant in Germany. Currently, our German plant can

produce over 100 thousand tonnes of baking soda per year, in-

cluding the highest quality class in accordance with the require-

ments of the pharmaceutical market.

Further development in the soda area will take place mainly

through optimisation and increase in efficiency, as well as im-

provement in product quality and focus on more processed prod-

ucts. At the same time, we care about the quality of service for

existing customers, and we are intensively looking for new cus-

tomers.

PRODUCTION CAPACITY OF THE CIECH GROUP’S SODA

PLANTS

SODA SEGMENT

SODA ASH AND BAKING SODA

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ciechgroup.com 12

SALT (NACL)

Evaporated salt of which we are a producer is widely used in the

following industries:

• Pharmaceutical - as a component of pharmaceuticals. Salt

from the Stassfurt plant meets stringent purity standards for

products for medical applications. Certification is currently

underway, the completion of which will enable us to sell this

product of the highest quality and purity,

• Food - alone or as a component of supplements enriching

the diet of wild and farm animals (cows, horses, sheep,

goats, and forest animals). In this case, feed salt or in the

form of licks is enriched with minerals (copper, cobalt, sele-

nium, zinc, manganese, iodine),

• Water treatment and softening processes, thanks to which it

contributes to the reduction of water, detergent, and fuel

consumption. It also extends the life of household appli-

ances.

• Chemical industry and other branches of heavy industry -

mainly in electrolysis processes.

In 2022, we increased the scale of commercial sales of salt from

the evaporated salt production plant in Germany, launched in

2021, whose production capacity is planned at approximately

450,000 tonnes of salt annually. This means almost doubling our

production capacity, previously concentrated in Janikowo. Due to

the investment in Stassfurt, we improved the production capacity

of evaporated salt to about 1 million tonnes and found ourselves

among the largest producers in Europe, with an established posi-

tion in Central Europe and Scandinavia, and with the prospect of

expansion to Western European markets.

The salt plant in Stassfurt is one of the most modern facilities of

this type in Europe. Evaporated salt is produced there using a dif-

ferent technology than in the Polish plant. Instead of steam-

heated evaporators (MEE technology), we used a fully automated

production line based on MVR technology (evaporation of water

by supplying compressed steam). Based on Boyl's physical law,

the technology results in significant savings and increases the ef-

ficiency of salt production.

The solutions applied in Stassfurt also include the use of an effec-

tive, low-emission source of heat energy (an efficient gas-fired

CHP plant) and effective management of heat energy in the pro-

duction process, confirmed by the ENEV certificate. In addition,

the electricity used in the salt plant is 100% renewable, i.e., from

renewable energy sources. In addition, the plant has been

equipped with an optimal system for managing production waste,

which is discharged to an underground storage site. Our new

plant is equipped with a modern, fully automated high-storage

warehouse.

The advantages of the German location of the new plant are the

availability of its own sources of raw materials (brine), a low-emis-

sion and effective source of energy, and the location enabling ex-

pansion on attractive Western European markets. In 2022, we ob-

tained the prestigious International Food Standard certificate,

confirming the high quality of salt from our German salt plant.

This certificate is also held by Sól Kujawska, produced in our plant

in Janikowo.

Last year, Stassfurt salt was also recognised as compliant with the

international HACCP (Hazard Analysis and Critical Control Points)

standard to ensure food safety.

SALT PRODUCTS OF THE CIECH GROUP

TABLE SALT AND IODISED TABLE SALT

Produced from a salt solution derived from the wet exploitation

of natural salt deposits, by obtaining brine. It contains a minimum

of 99.9% sodium chloride and is widely used in the food industry.

The CIECH Group sells salt primarily in one-kilogram bags under

the Sól Kujawska brand and under private labels of food chains,

as well as in larger, 25-kilo packages targeted at business custom-

ers.

SALT WITHOUT ANTI-CAKING AGENT

Used for food production (mainly products manufactured based

on the BIO market - no anti-caking agent in such product).

AQUA PRO SALT TABLETS

Are used in water treatment systems, e.g., for the regeneration

of ion exchangers, water softeners and multifunctional filters that

capture components contributing to water hardness (calcium and

magnesium). The main recipients of salt tablets produced by the

CIECH Group are households (home water treatment), adminis-

trators of multi-family buildings (water treatment for housing es-

tates), industry (water treatment in production processes), as

well as entities such as swimming pools, car washes and hospitals.

Tablets under the Aqua Pro brand are currently produced in the

CIECH factory in Janikowo and are sold on the markets of Central

and Eastern Europe and Scandinavia. As of 2023, the brand will

also be offered as part of the portfolio of the German salt plant in

Stassfurt and distributed on the Western European markets.

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ciechgroup.com 13

FEED SALT AND SALT LICKS

Used in agriculture and in the production of animal feed. The salt

content perfectly complements the diet of farm animals, espe-

cially ruminants, with minerals. Our products are also used in

feeding forest animals as they improve the assimilation of potas-

sium, magnesium, and calcium. Feed salt is sold in the GMP+

chain (international standard for good practice in the production

and transport of feed).

CURING SALT

Nitrite curing salt (curing salt) is an irreplaceable auxiliary agent

in the production of meat and sausage products. Curing refers to

one of the oldest ways of preserving food - preservation with salt.

G-SALT GRANULATE

Used in dishwashers, since 2022 sold under the G-Salt brand. The

product is ISO 9001 and ISO 14001 certified and is widely used in

households. It extends the life of dishwashers and increases

washing efficiency, reducing the consumption of water and deter-

gents.

SALT PRODUCTION PROCESS

Evaporated salt is produced from a salt solution derived from the

wet exploitation of natural deposits of rock salt:

INDUSTRIAL SALT

Is one of the ingredients in the production of detergents, washing

powders and dyes. It is also widely used in the electrolysis pro-

cess.

WINTER SALT

Quickly and effectively dissolves salt and ice on pavements, stairs,

and driveways.

The preparation of salt products for medical applications is un-

derway (including certification).

We are currently focusing on the development of specialist prod-

ucts within the dry salt portfolio, focusing on increasing produc-

tion capacity, developing new products and sales directions.

For more information on salt products go

to ciechsol.com

BRINE

Salt solution from wet exploitation of natural

rock salt deposits

SALT EVAPORATION

A series of processes involving the evaporation

of water from the brine

WET

SALT

DRY

SALT

Production process

SALES

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ciechgroup.com 14

PRODUCTION CAPACITY OF THE CIECH GROUP’S SAL

PLANTS

SODA SEGMENT

SALT PRODUCTS

OTHER PRODUCTS OF THE SODA SEG-

MENT

As part of the Soda segment, we also make products such as:

• Calcium chloride (CaCl2) – used e.g., as an environmentally

friendly agent for road maintenance in the winter season

(de-icing) and outside it (dust removal), as a source of easily

assimilable calcium for vegetables and fruits.

• Hopcalite – used in respiratory protection devices such as

gas masks, breathing apparatus and carbon monoxide mon-

itoring devices.

• Electricity – part of the electricity generated in our Stassfurt

gas-fired CHP plant is sold on the market. Furthermore, for

additional remuneration, the CHP plant participates in stabi-

lising the power grid and balancing renewable sources.

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PRODUCTION CAPACITY OF CIECH GROUP’S PLANT PROTEC-

TION PRODUCT FACILITIES

AGRO SEGMENT

PLANT PROTECTION PRODUCTS

AGRO SEGMENT – PLANT PRO-

TECTION PRODUCTS

The CIECH Group is the largest Polish manufacturer of plant pro-

tection products and a leader on the herbicides market. In addi-

tion to the production and sale of products for the agricultural

industry, we participate in the transformation of this market. We

change and modernise the market of plant protection products

by digitising it and introducing automated solutions that facilitate

cooperation with our distributors and users of our products.

The Agro segment is the second pillar of

the CIECH Group's business, with a 14%

share in the Group's EBITDA in 2022.

Modern plant protection products that we make enable us to

safely improve the efficiency of agriculture and reduce the nega-

tive effects of agriculture on the planet:

• lead to a reduction in cultivation, reducing soil degradation

and deforestation,

• increase the efficiency of harvesting, maximising the effi-

ciency of energy and water use,

• allow for the reduction of greenhouse gas emissions by agri-

culture,

• stabilise the quality and quantity of crops,

• protect against dangerous diseases and infections (e.g., my-

cotoxins).

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OUR RESPONSIBILITY AS A MANUFACTURER OF PLANT PRO-

TECTION PRODUCTS INCLUDES:

strict adherence to quality and safety rules and regulations

conducting research on the safety of using products in accord-

ance with the highest standards

ensuring the highest quality of production processes and the raw

materials, ingredients and semi-finished products used

research and development in new products, especially the possi-

bility of achieving the desired effects with the lowest possible

dosage of active substances

market education on the principles of effective and safe use of

products.

The Polish company CIECH Sarzyna S.A. specialises in the produc-

tion and distribution of plant protection products, which is the

largest Polish manufacturer and the sales leader on the market

of herbicides (weed killers). Our competitive advantage is, among

others, one of the world's most modern installations to produce

MCPA - an effective and safe herbicide, as well as 60 years of ex-

perience in manufacturing plant protection products. CIECH

Sarzyna has a modern production plant and a laboratory with

the prestigious GLP (Good Laboratory Practice) certificate.

The full range of the CIECH Group's AGRO area includes over 150

product items (herbicides, fungicides, insecticides, growth regu-

lators and seed dressings), in various chemical groups, formula-

tions, packaging sizes, depending on the target market and forms

of application. The most famous trademarks of the AGRO brand

include: CHWASTOX, Agrosar, Tarcza Łan Extra, Labrador Extra,

Nikosar, Prokarb. In addition to European markets, we also sup-

port markets in Asia, Australia, North Africa, Latin America, and

Canada.

An example of our approach to solving problems facing the agri-

cultural sector and the use of the latest research achievements is

the creation and registration of a new plant protection product -

Halvetic, based on the innovative BGT (Better Glyphosate Tech-

nology) technology, with effectiveness confirmed in over half a

thousand studies conducted on four continents. BGT allows you

to maintain the current effectiveness of glyphosate-based prod-

ucts while reducing the dose of the active substance by half, com-

pared to current standards. Glyphosate is the most widely used

and one of the most thoroughly tested active substances used in

plant protection, approved for use in over 160 countries.

Halvetic contains built-in wetting agents and ammonium sul-

phate, generally added separately by users. This facilitates the

use of the product, reduces the risk of error, and improves the

economic aspects of the procedure.

During two years of its market expansion, Halvetic has been ap-

proved for use in 13 countries, including Poland, Slovakia, Roma-

nia, Greece, Portugal, Bulgaria, the Czech Republic and Spain. In

2023, the product will appear in other countries, including Italy

and Great Britain. We also plan to register it in Argentina and Uru-

guay, and later also in Brazil.

The new glyphosate formulation technology is in line with the

proposed assumptions of the European Commission's "From

Farm to Fork" programme, which assumes, among others, obliga-

tion to reduce the consumption of active substances in the Euro-

pean Union by 2030. In our opinion, Halvetic is the optimal com-

promise between the needs of modern agriculture and pro-eco-

logical attitudes related to the implementation of the provisions

of the European Green Deal.

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FOAMS SEGMENT

POLYURETHANE FOAMS

The CIECH Group is one of the largest suppliers of polyurethane

foams (PUR foams) on the domestic market. In 2022, the Foams

segment generated 6% of the Group's EBITDA.

Flexible polyurethane foams are used mainly in production of up-

holstered furniture and sleeping mattresses. To a lesser extent,

they are used in the automotive industry, construction industry

and textile industry.

CIECH Pianki Sp. z o.o. has many years of experience in the pro-

duction and sale of flexible PUR foams and is one of the largest

producers of PUR foams in Poland. Recipients of the company’s

products include the largest furniture and mattress manufactur-

ers in Poland and Europe. Because of physical and mechanical

properties (low specific gravity) PUR foams are sold primarily on

local markets. In Poland, the consumption of flexible polyure-

thane foams is associated largely with the national furniture in-

dustry and its high position in the international markets which is

consistently strengthening and the value of export of Polish fur-

niture keeps growing.

PRODUCTION CAPACITY OF THE CIECH GROUP’S FOAMS

PLANT

FOAMS SEGMENT

POLYURETHANE FOAMS AND PROTECTIVE MASKS

In 2022, CIECH Pianki, as the first Polish manufacturer of polyure-

thane foams, obtained the ISCC Plus (International Sustainability

and Carbon Certification) certificate. It confirms that the com-

pany meets stringent environmental standards in production,

with particular emphasis on limiting the use of petroleum-derived

raw materials, in favour of components from renewable sources

and recycled.

Work is currently underway on the use of recycled materials (re-

polyols) and plant-derived raw materials (bio-polyols) in the pro-

duction of foams.

PROTECTIVE MASKS

Using our potential and competences to support the global fight

against the COVID-19 pandemic, in December 2020 we started

the production of protective masks. We can produce about 10

million pieces of masks annually, providing high-quality protec-

tion in the FFP3 class. It took us about five months to launch pro-

duction, establish supply chains and undergo FFP2 tests and cer-

tification, which confirms our flexibility and high operational effi-

ciency.

Our masks also have the Standard 100 by Oeko-tex® certification,

which means that they are free of harmful substances in concen-

trations that have a negative impact on human health, e.g., pes-

ticides, chlorophenols, formaldehyde, allergenic dyes, prohibited

azo dyes and extractable heavy metals.

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SILICATES SEGMENT

In 2022, the Silicates segment generated almost 9% of the CIECH

Group's EBITDA, achieving a record result at the same time. This

is, among other things, the result of the temporary restoration of

production in the older furnace at the plant in Iłowa, which was

supposed to be shut down after the new silicate smelting furnace

in Żary was commissioned in 2021. This decision was the Group's

response to very high market demand.

The CIECH Group produces sodium and potassium silicates. Both

types of silicates are available in two forms - solid, offered under

the VITROSIL brand (glassy sodium and potassium silicate) and liq-

uid, offered under the VITROLIQ brand (sodium water glass and

potassium water glass).

Sodium silicates are used in the production of precipitated silica

(approx. 37% of consumption in Europe, mainly used in the tire

and cosmetic industries), detergents (approx. 17%), paper, zeo-

lites, and other industries.

The addition of precipitated silica has a positive effect on the ser-

vice life and adhesion of car tires, and reduces rolling resistance,

thus limiting fuel consumption. The popularisation of electric cars

may increase demand in the Silicate segment - due to the higher

weight of these vehicles, their tires contain a greater admixture

of silica.

After expanding the sodium silicate production capacity at the

Żary and Iłowa plants, CIECH Vitrosilicon S.A. is currently the third

largest producer of sodium silicate in Europe and the leader in the

sale of this raw material. In the Silicates segment, the CIECH

Group also operates a plant in Ramnicu Valcea in Romania.

Potassium silicates are used in the production of welding elec-

trodes, construction chemicals, including silicate paints and plas-

ters.

As part of the development of this segment, the CIECH Group fo-

cuses on the use of new applications of silicates and the develop-

ment of high-margin products.

The main raw materials used to produce silicates are soda ash

from our plants, high-quality sand obtained from a local supplier

and natural gas.

PRODUCTION CAPACITY OF THE CIECH GROUP’S SILICATE

PLANTS

SILICATES SEGMENT

SODIUM AND POTASSIUM SILICATES

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ciechgroup.com 19

PACKAGING SEGMENT

In 2022, the Packaging segment generated over 1% of the Group's

EBITDA.

CIECH Vitro Sp. z o. o. specialises in the production of lanterns

for candles and is considered the leader of the Polish market.

The offer range includes about 160 patterns of lanterns, including

lanterns for dish candles and individual patterns, dedicated

to one recipient. In terms of lanterns for grave candles, we offer

a very diverse assortment, consisting of lanterns with a large

range of dimensions and a very diverse design.

Our company is also the only manufacturer of COMFORT type jars

in Poland, jars with a glass lid and a snap-clasp closure. On a small

scale, the Company also produces typical twist-off jars intended

for food processing.

PRODUCTION CAPACITY OF THE CIECH GROUP’S PACKAG-

ING PLANT

PACKAGING SEGMENT

LANTERNS AND JARS

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ciechgroup.com 20

QUALITY AND SAFETY OF

PRODUCTS

MANAGING PRODUCT QUALITY AND

SAFETY

In accordance with the CIECH Group's strategy for 2022-2024, the

activities of the Group's companies are focused on the implemen-

tation of the following core values:

Innovation progress

Further improvement

Effective management

These values are implemented in the quality area through:

INNOVATION PROGRESS

Improvements are planned in the area of production processes,

as well as quality control, including: modernisation of existing la-

boratories, replacement of laboratory equipment and software,

as well as updating the research methodology. These activities

will make it possible to optimise the work of laboratories and

standardise in the following areas: Quality Assurance and Quality

Control for the entire Group.

FURTHER IMPROVEMENT

Valuation of positions and competences of employees of quality

departments, talent development and creation of expert teams

for project implementation and changes should both reduce the

staff turnover rate and the costs of recruitment and training for

new employees. Moreover, they should increase the assurance of

business continuity and process stability.

EFFECTIVE MANAGEMENT

Strengthening the supervisory functions as part of the CIECH

Group's certification is intended to increase control over the ac-

tivities in the companies, with particular emphasis on handling

complaints, determining and implementing recovery and correc-

tive actions, and analysing risks. The implementation of group

certification will reduce the time spent on documentation and the

number of audits in companies. An additional benefit of group

certification will be the need to standardise procedures in the

Group, which will enable standardisation in the entire area of

Quality Assurance while significantly reducing cost.

A group exchange of experiences is planned, which will allow for

a broader perspective on solving quality issues and the use of ex-

perience and good practices already operating in selected Group

companies and their implementation in others.

QUALITY AND SUSTAINABLE DEVELOP-

MENT:

We ensure a strategy based on the principles of sustainable de-

velopment by controlling, among others, the two most important

qualitative indicators, such as:

Withdrawal of products from the market:

• maintaining zero product recalls;

• maintaining the high quality of products and avoiding

threats to the security of end users.

Reducing the complaint cost indicator:

• maintaining the relation of complaint costs to revenues

below 0.2%;

• reducing the amount of waste (returned products) and

the costs of their disposal.

These assumptions also support the implementation of strategic

points such as:

• optimising customer service - reducing the time of handling

complaints;

• reliability of logistics and deliveries - reduction of the num-

ber of complaints.

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ciechgroup.com 21

In order to meet the strategic requirements of reducing the

amount of raw materials and implementing innovative processes,

we decided to expand cooperation with our suppliers and im-

prove the Supply Chain Management system. These activities are

carried out by standardising the supplier qualification path and

expanding cooperation in the implementation of new technolo-

gies at our suppliers. This will enable us to gain a competitive ad-

vantage and improve the quality of our final product. The need to

adjust the required parameters of the supplied materials and raw

materials to the maximum extent resulted in the intensification

of on-site audits and the qualification of new suppliers for the

purpose of diversification, as well as the possibility of quick ad-

justment in emergency situations.

SYSTEMS BASED ON THE PRINCIPLES OF

SUSTAINABLE DEVELOPMENT - ALREADY

IN OPERATION AND THOSE BEING IM-

PLEMENTED IN THE CIECH GROUP:

SEDEX (SUPPLIER ETHICAL DATA EXCHANGE):

Supplier Ethics Data Exchange Programme, an online system de-

signed to help companies improve the ethical performance of

their supply chain. This platform stores data on responsible busi-

ness practices and enables the sharing of ethical performance in-

formation with multiple brands and customers. The programme

has been implemented in CIECH Soda Polska, it is being imple-

mented in CIECH Sarzyna and CIECH Pianki, and ultimately imple-

mentation is expected in all production companies of the CIECH

Group. Confirmation of ethical requirements for a full member of

SEDEX is carried out by a third party audit, the so-called SMETA

(Sedex Members Ethical Trade Audit). The SMETA audit covers

environmental, health and safety aspects in the workplace as well

as work ethics and work standards.

ISO 14001:

ISO 14001 is the leading standard for environmental management

systems. It operates on the basis of international standards and

confirms the implementation of all elements aimed at minimising

the negative impact of the organisation on the environment. The

aim of implementing the environmental system based on the ISO

14001 standard in all the CIECH Group companies by the end of

2023 is to improve and perfect the effects of environmental ac-

tivities and prepare to react in the event of an ecological threat.

ISCC PLUS:

The ISCC PLUS (International Sustainability & Carbon Certifica-

tion) certificate confirms that the company meets stringent envi-

ronmental standards in the area of production, with particular

emphasis on limiting the use of petroleum-derived raw materials

in favour of components from renewable sources and recycling.

This system was certified in 2022 by CIECH Pianki.

KZR INIG:

The KZR INiG Certification System is a set of requirements that

must be met for the production of biofuels to be considered com-

pliant with the sustainable development criteria. These require-

ments concern, among others, the reduction of greenhouse gas

emissions generated in the life cycle of biofuels. Taking into ac-

count the requirements of the KZR INiG system, in the supply

chain, CIECH Soda Polska S.A. acts as a heat producer for techno-

logical and heating purposes, and certification is carried out as

part of the path: biomass fuels.

IWAY:

The IKEA Group has developed the IWAY standard to promote

basic labour rights and environmental standards with business

partners. IWAY enables the company to understand the depend-

encies in the supply chain and eliminate the risks associated with

child labour, violations of human and employee rights and envi-

ronmental pollution. Due to the positive result of the IWAY MUST

audit, CIECH Pianki can ensure that the supplied products are

manufactured in safe conditions with respect for the rights of em-

ployees and the natural environment.

STEP BY OEKO TEX :

Thanks to the modular analysis of all relevant areas of the com-

pany, such as chemical management, environmental perfor-

mance, quality management, occupational health and safety, so-

cial responsibility and environmental management, STeP certifi-

cation allows for a comprehensive and reliable analysis of the

scope of sustainable management provided by the production

plant. The certification of this standard enables CIECH Pianki to

compete in the supply chain of textile and clothing companies.

MANAGEMENT SYSTEMS WITHIN THE

CIECH GROUP

The systems implemented in the CIECH Group are based on the

requirements of the ISO 9001 standard and depending on the

needs of the Company and customer expectations, the basic re-

quirements are supplemented with specific (industry and product

related) requirements, maintaining consistency and assumptions

as well as rules established within the organisation.

The basis for setting goals and directions of activities for the pro-

cesses covered by the system requirements is the Quality Policy,

shared by all companies of the CIECH Group.

The scope of management systems implemented and recertified

in 2022 is presented in the table below.

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ciechgroup.com 22

Table 1. Certified management systems in CIECH Group com-

panies in 2022

Company

Norms/Standards

CIECH S.A.

ISO 9001; GMP+ B3; GDP API

CIECH Soda Polska S.A.

ISO 9001; ISO 14001; GMP+ B1/B2; GMP

API; IFS; KOSHER; PZH (National Institute

of Hygiene) approval certificate; v-label;

HALAL

CIECH Sarzyna S.A.

ISO 9001; ISO 14001; ISO 45001; ISO

17025; ISO 50001; WSK, GLP

CIECH Vitrosilicon S.A.

ISO 9001; ISO 14001

CIECH Vitro Sp. z o.o.

ISO 9001; ISO 14001; PZH approval cer-

tificate

CIECH Soda Romania

S.A.

ISO 9001

CIECH Soda Deutschland

GmbH

ISO 9001; GMP+; ISO 14001; ISO 50001;

KOSHER; GMP API; EXIPACKT; IFS; HALAL

CIECH Salz Deutschland

GmbH

ISO 9001; ISO 50001; HACCP; IFS; HALAL

CIECH Cargo Sp. z o.o.

ISO 9001; ISO 14001; Railway carrier

safety certificate - Parts A and B; ECM

certificate

CIECH Pianki Sp. z o.o.

ISO 9001; STeP by OEKO-TEX® certificate;

STANDARD 100 by OEKO-TEX® certifi-

cate; CIOP-PIB certificate for FFP3 masks;

PZH approval certificate; PZH certificate

Supervision over the maintenance and improvement of the sys-

tems has been entrusted to employees of the Quality Depart-

ments in individual Companies, who have the necessary

knowledge and qualifications.

Each employee undergoes obligatory training in the implemented

policies and procedures in accordance with the scope of duties

arising from the position held and responsibilities. Newly hired

employees and associates are subject to initial training in the re-

quirements of the Integrated Management System.

In all companies, independent external audits were carried out,

which confirmed the proper operation of the management sys-

tems in relation to the implemented norms and standards.

There were also no reports of non-compliance with regulations or

codes applied in the area of Product Quality, which would result

in a penalty, fine or initiation of a procedure for the withdrawal

of a product from the market.

KEY ACHIEVEMENTS IN 2022

CIECH SALZ DEUTSCHLAND

CIECH Salz Deutschland launched the IFS (International Food

Standard) certification and the kosher certificate procedure, i.e. a

certificate of compliance with Jewish law.

CIECH SODA DEUTSCHLAND

CIECH Soda Deutschland launched and successfully completed

the IFS and Halal certification audit procedure, i.e. a certificate of

compliance with Muslim law.

CIECH SODA POLSKA

CIECH Soda obtained a Halal certificate and is a Company regis-

tered in the SEDEX system with a positive outcome of the SMETA

audit.

CIECH SARZYNA

CIECH Sarzyna launched the process of registration with SEDEX

and self-assessment required for taking the SMETA audit.

CIECH PIANKI

CIECH Pianki implemented the ISCC certification.

CIECH QUALITY STANDARD (CQS)

Within the CIECH Group, the CIECH Quality Standard (CQS) pro-

gramme is in place, as part of which quality standards have been

implemented, based on the international ISO 9001:2015 stand-

ard.

BENEFITS OF THE CQS (CIECH QUALITY STANDARD) PRO-

GRAMME

FOR OUR CUSTOMERS

• Meeting the requirements of laws, standards and specifica-

tions

• Building lasting customer relations

• Faster complaint handling time

• Improved quality of products

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ciechgroup.com 23

FOR THE DEVELOPMENT OF THE COMPANY

• Maintaining talented people with valuable experience and

skills while keeping an optimal level of employment

• Involvement of all employees in the implementation of the

company’s strategy - non-financial employee motivation

FOR THE COMPANY’S FINANCE

• Plans for the optimisation of the quality control expenses

• Minimising costs related to poor quality

CHEMICAL PRODUCT MANAGEMENT

(REACH, CLP, BPR)

REGULATION (EC) 1907/2006 (REACH) - INFORMATION ON CUR-

RENT REGISTRATIONS IN THE CIECH GROUP IN 2022.

In 2022, no cases were reported of non-compliance with regula-

tions and codes applicable in the area of Chemical Products Man-

agement resulting in a penalty, fine or initiation of the product

recall procedure.

In 2022, the European Chemicals Agency (ECHA) did not issue any

binding decision ordering the performance of additional tests or

the updating of the registration dossiers of substances of which

the CIECH Group companies are registrants or co-registrants.

A spontaneous update of the registration dossiers for two sub-

stances of the soda business was submitted. The update was

mainly due to the need to adapt the chemical safety assessment

of the substance to the current requirements of ECHA and was

successfully completed.

In addition, two strategic raw materials, necessary for the Agro

segment operating activities, were registered, thus extending the

list of qualified suppliers to include entities from outside the EU.

In 2022, the CIECH Group updated all safety data sheets of its

products, adapting them to the requirements of Regulation (EU)

878/2020, amending Annex II of the REACH.

REGULATION (EC) 1272/2008 (CLP)

In 2022, notifications of information on hazardous mixtures intro-

duced to the market by the CIECH Group for new products of the

Agro segment were processed and existing notifications were up-

dated.

REGULATION (EU) 528/2012

In 2022, in the Soda segment, it was decided to abandon the reg-

istration of salt tablets used for water treatment in the electroly-

sis process.

The manufacturers of salt tablets, CIECH Soda Polska and CIECH

Salz Deuchland, continue to be entities entered in the list of active

substance suppliers published by the European Chemicals

Agency, in accordance with article 95 of the BPR - Biocidal Prod-

ucts Regulation. This means that customers who purchase

CIECH's salt tablets can register the finished biocidal product on

their own.

TASKS FOR 2023

Further improvement of financial efficiency is planned for 2023

by minimising costs related to poor product quality and by more

effective monitoring of production processes based on estab-

lished indicators (KPI).

In 2023, the CIECH Group faces new challenges related to the cov-

erage of system requirements and certification of new entities

within the Group:

• CIECH S.A. - as part of the Group certification implementa-

tion procedure, by the end of 2023 it will have obtained ISO

45001 (OHS) and ISO 14001 (Environmental Protection) cer-

tificates; additionally, as the Central Company with Inte-

grated Quality Systems, it will proceed to extend them to

other Companies as part of Group certification.

• CIECH Salz Deutschland GmbH – certification of compliance

with the requirements for the production of pharmaceutical-

grade salt as an active and auxiliary substance.

• CIECH Sarzyna Sp. z o.o. – approach to the SMETA audit and

entry into the SEDEX register as a full-fledged member.

• CIECH Pianki Sp. z o.o. – by the end of 2023, the ISO 14001

system will have been implemented; thus, the environmen-

tal systems will operate in all companies of the Group; com-

pletion of the registration process in SEDEX by successfully

completing the SMETA audit.

• CIECH Soda Polska S.A. – implementation and certification of

the KZR INIG system, i.e., the certification programme for bi-

omass and biofuels.

• CIECH Vitro Sp. z o.o. – implementation and certification of

the ISO 45001 system.

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ciechgroup.com 24

SUSTAINABLE

DEVELOPMENT

STRATEGY

ESG STRATEGY – “CHEMISTRY

FOR A BETTER WORLD”

Responsible business conduct has always been the foundation of

our activities. We believe that real value in the long run can only

be built by a responsible business that, in addition to short-term

financial parameters, cares about stability and sustainable rela-

tions with the environment - both with the natural environment,

whose resources we use, and with people inside and around our

company.

As humanity, we face huge challenges, such as fighting climate

change, caring for the well-being of a growing population, and

changing our actions and habits to leave future generations with

a planet that is a good place to live.

We believe that as an international company participating in the

global economy, we are particularly responsible for this. Business

representatives have the knowledge, skills, means and agency to

effectively influence changes for the better, and the world needs

such changes more than ever before.

In 2022, we implemented our ESG Strategy "Chemistry for a Bet-

ter World". We took actions to bring us closer to achieving the

defined and measurable goals set out in it, the goals which are

ambitious, but if we make the necessary efforts, they will become

feasible.

We know what role our industry branch plays and can play in re-

sponse to the challenges of modern times. It is a difficult industry

that uses the Earth's resources, has a strong impact on the envi-

ronment and generates high risks. Accordingly, our role is to

ensure that the benefits of our activities significantly exceed the

costs and burdens we cause.

Activities related to the management of our impact in the envi-

ronment, social and corporate governance areas are carried out

both locally and supervised or inspired by the headquarters of the

Group. The area of sustainable development management re-

ports directly to the President of the Management Board and is

coordinated by the Investor Relations and ESG Department estab-

lished for this purpose.

The CIECH Group's strategy defines eight commitments regarding

climate policy, social relations and management quality. Specific

initiatives and targets have been set for each commitment in or-

der to track progress.

Details of our ESG Strategy:

www.esgciech.com

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ciechgroup.com 25

We speed up on the path to carbon

neutralty

We decouple growth and energy

consumption

We see circularity as a key efficiency lever We put safety as a top priority

We want to be an inclusive place for

diverse talents to develop

We are a responsible part of local

communities

We join our efforts together with clients

and suppliers

We earn credibility by delivering

promises

COMMITMENTS OF THE CIECH GROUP

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ciechgroup.com 26

ENVIRONMENTAL AREA

WE SPEED UP ON THE PATH TO CLIMATE

NEUTRALITY.

The pillar of our strategy for the coming years is the energy and

business transformation, which focuses on reducing CO

emis-

sions. Our long-term goal is to be climate neutral

by 2040. On the

way to this goal, we have set several key stages with a short and

medium term of implementation:

• We intend to reduce CO

emissions by 10% by 2024 and by

33% by 2026 compared to the base year 2019.

• We have committed ourselves to completely eliminating

coal consumption from the production of electricity and

heat for the needs of production processes by 2033.

We are aware of the fact that achieving complete climate neutral-

ity will require the use of technologies that have not yet been im-

plemented on an industrial scale. We are currently analysing the

possibilities of choosing the most appropriate solution. The out-

break of war and the related increase in the prices of gas and en-

ergy fuels put further difficult tasks in the area of energy transfor-

mation on the way to decarbonisation. At the transitional stage,

the key issue for the CIECH Group will be to reduce the use of

fossil fuels, including moving away from coal and increasing the

sourcing of energy from RES.

In 2022, we continued work on the operationalisation of our en-

ergy strategy. For this purpose, we established a dedicated unit -

the Energy and Business Transformation Department, which fo-

cuses its activities on projects that improve energy and process

efficiency and reduce CO

emissions. We have started work on a

strategy to phase out coal in Poland and gas in Germany. We are

currently at the stage of determining the target, most favourable

fuel mix in our three combined heat and power plants. In Poland,

together with our partners, we plan to implement a project of a

thermal waste processing installation in Inowrocław. Another fuel

that we analyse is biomass, both in the form of "small" and "large"

co-combustion, as well as dedicated boilers.

A NEW SOURCE OF ENERGY FOR THE

PLANT IN INOWROCŁAW

The CIECH Group and EEW Energy from Waste GmBH have agreed

on the terms of cooperation in the preparation phase of the in-

vestment involving the construction of an incineration plant

("ITPO") in Inowrocław. The energy obtained from it is to partially

replace that currently produced from coal-fired boilers, thus re-

ducing the consumption of coal by the production plant in Inow-

rocław by about one third. The preparation phase is the first of

three stages of the entire project. The next two – construction

and then operationalisation of the new installation – will be spec-

ified in separate contracts in the future.

The investment preparation phase, which is to last no longer than

December 2024, assumes, among others, obtaining the necessary

administrative decisions and permits, contracting the works, as

well as obtaining financing by EEW for the construction of the in-

stallation. As part of the preparation phase, the "Report on the

impact of the project on the environment" is also prepared, which

will be reviewed by the institutions provided for in the law and

will also become the subject of social consultations. The invest-

ment will be implemented in accordance with the applicable

standards, i.e., based on the best available environmental protec-

tion technologies and the most restrictive regulations (under pain

of criminal liability and high financial penalties).

The investment will be financed by EEW, and CIECH Soda Polska

will become the purchaser of the energy generated in ITPO. A sim-

ilar solution is already in place in the German soda factory owned

by the CIECH Group, where heat from the waste incineration in-

stallation goes to the CIECH Soda Deutschland production plant.

In this manner, the German factory obtains approx. 30 percent of

energy needed for its production.

emissions (Scope 1 and 2)

(excluding CIECH Soda Romania)

93%

95%

97%

2 997

2 792

2 821

2 819

2019 2020 2021 2022

Scope 1 Scope 2

-6%

NON-FINANCIAL REPORT 2022

ciechgroup.com 27

The CIECH Group was the first of the large industrial companies in

Poland to join the Science Based Targets ("SBTi") initiative, cre-

ated, among others, by: United Nations Global Compact, Carbon

Disclosure Project, World Resources Institute (WRI) and World

Wide Fund for Nature (WWF). The Science Based Targets (SBTi)

initiative defines a methodology that supports ambitious compa-

nies in setting reduction targets and transforming business oper-

ations to match the realities of the future low-carbon economy.

The project is designed to set climate targets for individual com-

panies based on scientific knowledge and regularly monitor pro-

gress. SBTi companies aim to keep global warming below 2 de-

grees Celsius compared to the pre-industrial era, in line with the

Paris Agreement.

The main activities of the Science Based Targets initiative include:

• defining and promoting best practices in emission reduction

and defining climate neutrality goals,

• providing technical assistance and expert resources to mem-

ber companies in setting climate targets in line with the lat-

est scientific knowledge,

• bringing together a team of experts that will provide mem-

ber companies with independent assessment and validation

of objectives.

Science Based Targets is also the leader of the Business Ambition

for 1.5°C campaign, which aims to promote actions in the busi-

ness environment to limit the pace of global warming.

WE GROW WITHOUT INCREASING EN-

ERGY CONSUMPTION.

An important element of the ESG Strategy is the systematic re-

duction, on an annual basis, of the amount of energy used in pro-

duction processes and for administrative purposes. To this end,

the CIECH Group invests in the most effective technologies avail-

able and runs an energy and business transformation pro-

gramme.

It is worth noting that in 2022 we significantly increased our pro-

duction capacity:

• a new production plant, CIECH Salz, operated in the Soda

segment, systematically increasing the production capacity

of salt products,

• in the Silicates segment, a new energy-saving furnace oper-

ated throughout the year, which increased our production

capacity in the area of sodium silicates by approx. 30% (up

to approx. 240 thousand tonnes per year). The new furnace

is characterised by better performance parameters and con-

sumes less natural gas compared to the existing technology.

Despite such a significant growth in business, the consumption of

heat and electricity remained at a similar level to the previous

year. Increasing production capacity and maintaining a stable

level of energy consumption year on year was possible with our

capital expenditures in the most modern energy-saving solutions

and technologies. It is also the result of a large-scale business and

energy transformation, primarily in the largest segment of the

CIECH Group - the Soda segment. Until we introduce solutions

that allow the use of only renewable energy, reducing the energy

intensity of our production is an important element of lowering

our environmental impact. We are continually working on im-

proved energy efficiency and, as a result, reduced energy inten-

sity of production, regardless of our long-term energy strategy. In

our plants, we use heat in the form of process steam at various

stages of production. Current activities focus on reducing heat

losses, optimising process steam flows and implementing heat re-

use solutions, e.g. at another stage of the process. In 2022:

• we modernised two boilers in Janikowo, which enabled us to

significantly improve their operating parameters in terms of

the combustion process,

• we started the modernisation of the steam turbine in Jani-

kowo, which will enable our electricity cogeneration coeffi-

cient in the combined heat and power plant to increase,

• we launched a portfolio of several projects to recover steam

from the soda production process and reduce heat losses in

all three on-site CHP plants owned by the CIECH Group. By

the end of 2022, six projects have been implemented, and

more are at the design stage and under implementation.

will significantly affect the consumption of energy resources, and

thus reducing the impact on the environment.

Consumption of electricity and heat (MWh)

7 702 396

6 374 958

6 652 955

6 742 485

2019 2020 2021 2022

+1%

NON-FINANCIAL REPORT 2022

ciechgroup.com 28

CIRCULAR ECONOMY AS OUR KEY EFFI-

CIENCY LEVER.

We strive to improve efficiency in line with the idea of a circular

economy. Among our goals for the coming years is the systematic

implementation of solutions enabling us to:

• reduce water consumption in production processes,

• increase the use of waste generated in production pro-

cesses, especially soda and salt,

• increase the amount of secondary raw materials such as

glass cullet in the production of silicates and packaging,

• increase the share of environmentally friendly and recycla-

ble packaging.

In 2022, CIECH Pianki, which manufactures flexible PUR foams,

obtained the prestigious ISCC Plus Certificate (International Sus-

tainability and Carbon Certification). It confirms that the company

meets stringent environmental standards in the area of produc-

tion, with particular emphasis on limiting the use of petroleum-

derived raw materials, in favour of components from renewable

sources and secondary raw materials. Further activities are

planned with the use of raw materials of natural origin and those

from recycling.

OUR R&D FOR SUSTAINABLE DEVELOPMENT

As part of its research and development activities, the CIECH

Group conducts a number of projects, primarily in the key soda

segment, which are aimed at improving the efficiency of pro-

cesses and reducing the impact of production activities on the en-

vironment. Currently, several projects are being carried out at

various stages of advancement, which focus on the efficiency of

resource use, waste reduction and the implementation of the

idea of a circular economy. The following achievements can be

listed for 2022:

The research and development (R&D) team of the CIECH Group

developed an innovative method of recovering the so-called

waste salt, formed during the soda ash production process. The

solution implemented at the factory in Inowrocław allows for the

reduction of chloride emissions in wastewater by approx. 7.5

thousand tonnes per year and improves the energy efficiency of

the calcium chloride production process (approx. 7.5% less en-

ergy consumed per tonne). It also enables the recovery of approx.

40,000 cubic metres of brine from the production process, which

can then be reused to produce soda. The innovation also allows

for reducing the consumption of process steam, which will have a

positive impact on the amount of CO

emissions generated.

At the CIECH plant in Inowrocław, we implemented an innovative

method of ammonia absorption in the production of soda ash.

The “Carbonisation Plus” project, developed together with scien-

tists from the Nicolaus Copernicus University in Toruń (“UMK”),

increases, among others, the efficiency of consumption of raw

materials used in the technological process.

The research stage of the project related to the use of post-so-

dium lime for strengthening excavations in opencast mines, while

meeting the technical assumptions, was completed. Operational

analyses are currently underway.

We are in the final phase of construction of the CO

stream recov-

ery installation in the baking soda production process, which will

prevent the emissions of almost 5,000 tonnes of carbon dioxide.

We completed the stage of laboratory tests as part of the CO

dis-

posal project in distillation fluids. As a result of the implementa-

tion of the project, we should prevent the emissions of approx.

100 thousand tonnes of carbon dioxide after implementation in

all soda plants. Conceptual work on a pilot installation is currently

underway.

In the Foams segment, the work focused mainly on improving the

safety of products and reducing the impact of the substances

used on the environment. For instance, tests of innovative and

environmentally friendly flame retardant additives were started.

In 2022, we joined the group of investors

in the venture capital fund (VC) Emerald

Industrial Innovation Fund, specialising in

investments in start-ups that develop in-

novations supporting the idea of sustain-

able industry. At the same time, the

CIECH Group is actively looking for exter-

nal innovations through a new company -

CIECH Ventures, focusing primarily on co-

operation with young companies devel-

oping technologies related to chemistry,

sustainable industry and agriculture.

Initiation of joint projects with scientists who study methods to

reduce waste in the production of soda, establishing cooperation

with a Latvian start-up developing CO

separation technology, as

well as the first initiatives with start-ups operating in the precision

agriculture segment to improve the efficiency of agricultural pro-

duction - these are the effects of the first months operation of

CIECH Ventures, a specialist company established within the

CIECH Group.

CIECH Ventures also became an investor in the Ecobean start-up,

which developed a protected technology for processing coffee

waste into sustainable raw materials and specialised chemicals

using a scalable, technologically advanced solution that reduces

the carbon footprint and creates economic added value. The cof-

fee waste which is currently squandered is a source of many val-

uable substances. The investment in Ecobean is part of one of the

areas of activity of CIECH Ventures, i.e., waste management in ac-

cordance with the idea of a circular economy.

NON-FINANCIAL REPORT 2022

ciechgroup.com 29

SOCIAL RESPONSIBILITY AREA

WE PUT SAFETY AS A TOP PRIORITY.

Our goal is to eliminate accidents (injuries) on the premises of the

CIECH Group's plants by implementing the highest safety stand-

ards. We apply them to both employees and subcontractors with

whom we cooperate. We use tools such as Performance Manage-

ment to incorporate safety objectives as a key component in the

manager evaluation process. We also use the latest plant moni-

toring technologies that support the achievement of the "zero in-

juries" goal.

Due to the implementation of comprehensive measures aimed at

improving safety, in 2022, we had a record-low LTIF rate: 2.48

(- 51% y/y).

LTIF rate (number of injuries at work per 1 million hours

worked) in the CIECH Group in 2019-2022

WE WANT TO BE AN INCLUSIVE PLACE FOR DIVERSE TALENTS

TO DEVELOP.

In the ESG strategy, the subject of human resources management

is one of the key areas. We believe that diversity in teams contrib-

utes to better company management and positively affects busi-

ness results. Thus, our goal is to attract more women to the CIECH

Group and provide them with development opportunities. We

want to achieve a natural increase in the number of women in

managerial positions and achieve a level of at least 35% by 2030

(currently around 23%). One of the tools to support this goal is

the professional succession programme, which we want to imple-

ment by 2024.

The issue that we address in our ESG strategy is also the elimina-

tion of disproportions in the remuneration of women and men in

the same positions. We committed to reducing the differences by

50% by 2025. In 2022, the Gender Pay Gap Ratio (GDPR) de-

creased by 1.7 pp compared to the previous year.

Our ambition is to create the best place for the development of

our employees' talents based on a reward system for achieving

the set goals. We want to implement individual goals or skill ma-

trices for all employees. In 2022, we aimed to achieve this goal

by, among other things, completing the implementation of the

ABCD Model (Skills Management System for Operational Employ-

ees) in all Polish companies of the CIECH Group. In the ESG strat-

egy, we also commit ourselves to developing a culture and lead-

ership skills among managers. We have created leadership com-

petence development programmes dedicated to all managers in

the CIECH Group - Leader and LeaderGo. In 2022, 350 managers

participated in the Leader programme and 45 managers from the

top management took part in the LeaderGo programme.

WE ARE A RESPONSIBLE PART OF LOCAL COMMUNITIES.

We are aware of the important role we can play in supporting lo-

cal communities aimed at improving their quality of life. Accord-

ingly, we strive to strengthen dialogue and cooperation with local

government authorities and residents. Our goal is to support so-

cially relevant initiatives in the immediate vicinity of our produc-

tion plants, such as the "Good Neighbour" programme or sup-

porting local sports teams. We also promote education through

programmes such as the "Academy of School Talents" or "Chem-

ical Class" in Nowa Sarzyna and we offer support for young people

in education. A detailed description of our initiatives can be found

in the "Our Environment" section of this report (page 99).

5,88

5,76

5,08

2,48

2019 2020 2021 2022

-51%

NON-FINANCIAL REPORT 2022

ciechgroup.com 30

CORPORATE GOVERNANCE

AREA

WE JOIN OUR EFFORTS TOGETHER WITH CLIENTS AND SUPPLI-

ERS.

We cooperate with business partners who share our values and

thus help us to implement the idea of sustainable development.

We expect both our employees and business partners to comply

with the Code of Conduct of the CIECH Group and the Code of

Business Partner, especially in the area of human rights, environ-

mental protection and ethics. Since 2021, we have been examin-

ing the status and ESG risk among our suppliers. Our goal is to

investigate suppliers responsible for at least 70% of our spending

by the end of 2023. As of January 2023, we examined suppliers

responsible for 64% of the CIECH Group's expenses.

WE EARN CREDIBILITY BY DELIVERING PROMISES.

We strive to strengthen the credibility of the CIECH Group

through transparent reporting on the management method and

achievements in the area of sustainable development. For this

purpose, we report ESG issues and related risks according to the

most recognised reporting systems, using, among others, GRI and

SASB standards as well as the Ecovadis platform for better com-

munication with our customers as part of non-financial reporting.

In 2022, we were awarded for activities related to communication

with investors and presence on the capital market.

THE BEST ANNUAL REPORT, 2021

The jury of the 17

edition of the "The Best Annual Report" com-

petition recognised the report of CIECH S.A. for 2021 as the best

in the "Enterprises" category.

The competition is organised annually by the Institute of Account-

ing and Taxes, and its aim is to promote annual reports prepared

by companies listed on the Warsaw Stock Exchange, with the

highest utility value for investors and shareholders. CIECH has

been awarded in this competition for the seventh time.

The award for CIECH was granted for the highest level of prepa-

ration of annual consolidated financial statements in accordance

with the IFRS/IAS guidelines (International Financial Reporting

Standards or International Accounting Standards). Financial state-

ments of CIECH S.A. for years they have been gaining recognition

of the jury in this prestigious competition. In recent years, the

company has received: a distinction for the best report on activi-

ties (the 2017 edition), the 3

main prize (the 2018 edition) and

two awards from the "Rachunkowość" monthly for the greatest

progress in improving the quality of the financial statements (in

the 2019 and the 2020 editions).

“SILVER LEAF” IN THE SILVER LEAF CSR POLL COMPETITION BY

“POLITYKA”

The CIECH Group was awarded the Silver Leaf in the 11

edition

of the CSR Leafs list by Polityka - an annual poll competition or-

ganised by the "Polityka" weekly, Deloitte consulting company

and the Responsible Business Forum. The companies' approach

to their business activities from the perspective of environmental,

social and corporate governance activities was decisive in award-

ing the recognitions.

The competition aims to distinguish Polish leaders in sustainable

development and ESG. In addition, CIECH was awarded for the

implementation of best practices related to the achievement of

the Sustainable Development Goals (SDGs) - the organisers of the

initiative appreciated the implementation of our low-emission

soda transport.

ENVIRONMENTAL AREA

SOCIAL RESPONSIBILITY

AREA

CORPORATE GOVERNANCE

AREA

NON-FINANCIAL REPORT 2022

ciechgroup.com 31

OUR IMPACT ON

THE ENVIRONMENT

Sustainable development plays a key role

for the CIECH Group, taking into account

in particular the minimisation of the im-

pact of its operations on the environ-

ment. To this end, the CIECH Group

strives for the highest possible produc-

tion and energy efficiency, and conse-

quently, reduction of emissions of pollu-

tants into the atmosphere (including

greenhouse gases), improvement of the

quality of wastewater and rational man-

agement of water resources and waste

while maintaining high quality of prod-

ucts.

Environmental protection issues are a priority for the CIECH

Group. Since 2016, an Environmental Protection Policy consistent

for the entire Group has been in place in all companies. The next

step was the announcement of the ESG Strategy in May 2021, in

which the area of environmental protection is one of the main

pillars. The ESG Policy and Strategy obliges all companies belong-

ing to the Group to comply with the applicable legal regulations

in the area of environmental protection, reduction of pollutant

emissions into the environment and the amount of waste gener-

ated, rational use of natural resources and counteracting climate

change, e.g. by reducing the amount of carbon dioxide generated,

and to maintain good social relations in local communities where

business activities are conducted.

All production plants of the CIECH Group

operate on the basis of the required per-

mits and administrative decisions. In ad-

dition, most production companies have

implemented environmental manage-

ment systems in accordance with the re-

quirements of the ISO 14001 standard.

The plan is to cover all companies in the

Group with an integrated management

system in the scope of the following

standards: ISO 9001:2015, ISO

14001:2015 and ISO 45001:2018.

monitoring existing and planned

laws and regulations

identification of key environmental

aspects

planning and implementing invest-

ments contributing to environmen-

tal protection

continuous improvement aimed at

better environmental performance

environmentally friendly solutions

implemented in the CIECH Group

NON-FINANCIAL REPORT 2022

ciechgroup.com 32

The CIECH Group systematically implements investments limiting

the impact of its operations on the environment, in particular in

terms of reducing emissions of pollutants into the atmosphere.

Investments in atmosphere protection undertaken in 2022 in-

clude:

• repair of the boiler in the Heat and Power Plant in Janikowo,

• construction of a second electrostatic precipitator in Żary

and a new system for forming glassy sodium silicates,

• modernisation of the dedusting system at the monohydrate

installation in Inowrocław,

• reducing noise emissions by mounting acoustic protection at

the installation for the production of soda and the heat and

power plant in Inowrocław, as well as at the installation for

the production of salt and soda in Janikowo,

• installation of photovoltaic panels to reduce the use of en-

ergy from fossil fuels.

In addition, among the investments we carried out in previous

years, the following should be mentioned:

• reduction of dust emissions from the existing CHP plants

through the modernisation of electrostatic precipitators,

• reduction of emissions of nitrogen oxides from the owned

CHP plants through the construction of flue gas denitrifica-

tion installations in Inowrocław and Janikowo,

• reduction of sulphur dioxide emissions from the existing

combined heat and power plants by constructing a flue gas

desulfurisation unit,

• modernisation of the dedusting system at the Lime Kiln In-

stallation in Inowrocław.

In order to reduce the generated waste, improve the quality of

wastewater and sustainably use substrates and natural resources

in 2022, the following measures were taken:

• modification of the water glass filtration technology in Iłowa

resulting in the reduction of water consumption,

• modernisation of steam vent reducing devices in order to

limit steam emissions from the steam installation to the en-

vironment from the plant in Iłowa,

• reducing the amount of generated waste by recycling dust

from electrostatic precipitators to the production process,

• reducing transport waste by using reusable pallets at the

plants in Janikowo and Inowrocław,

• the use flocculants to improve the quality of the sludge,

which allowed for a significant reduction of suspended solids

in the wastewater directed to the clarifying and cooling pond

in Janikowo

In 2022, the key issue in the area of sus-

tainable products was obtaining the ISCC

Plus certificate by CIECH Pianki. Thus, a

company from the CIECH Group is the

first certified manufacturer of polyure-

thane foams in Poland. This certificate

confirms that the company complies with

stringent environmental standards in the

area of production, with particular em-

phasis on limiting the use of petroleum-

derived raw materials, in favour of com-

ponents from renewable sources and

from recycling.

Other projects aimed at, among others, reducing CO

, dust and

noise emissions, reducing energy consumption and increasing the

share of energy from renewable sources, are being implemented.

There are also plans to prepare and implement a comprehensive

Environmental Protection Strategy for the entire CIECH Group,

taking into account sustainable development, which will be aimed

at achieving ambitious goals reducing the impact of the CIECH

Group's operations on the surrounding environment.

NON-FINANCIAL REPORT 2022

ciechgroup.com 33

GREENHOUSE GAS

EMISSIONS

The CIECH Group attaches great importance to reducing gas and

dust emissions into the air. Industrial activity conducted primarily

within the main Soda segment is characterised by carbon dioxide

emissions. We feel responsible for taking action to reduce emis-

sions and stop climate change caused by greenhouse gas emis-

sions. Significant reduction of CO

emissions is one of the main

goals of the ESG Strategy and the new strategy of the CIECH

Group for 2022-2024.

emissions in 2022

as part of EU ETS

2 636 953 tCO

emissions in 2022

Scope 1 & 2

2 875 351 tCO

Scope 1 – direct emissions

Scope 2 – indirect emissions

Soda

segment

99,5%

Packaging

segment

0,5%

Scope 1

- direct emissions

96,6%

Scope 2

- indirect emissions

3,4%

From the

production of

of electricity and

heat

77,7%

From production

processes

22,1%

From fuels to means

of transport

0,1%

Scope 1

2 727 094

tCO

From the purchased

electricity

96,4%

From the purchased

heat energy

3,6%

Scope 2

96 573

tCO

NON-FINANCIAL REPORT 2022

ciechgroup.com 34

Calculation and monitoring of greenhouse gas emission sources is

a basic step on the way to reducing emissions. For the purposes

of this process, commonly used international reporting standards

were adopted - Greenhouse Gas (GHG) Protocol Corporate Ac-

counting and Reporting Standard. Currently, the CIECH Group

monitors greenhouse gas emissions using a division into Scope 1

and Scope 2. The Group's plans also include the calculation of in-

direct emissions from Scope 3.

The CIECH Group does not emit green-

house gases other than carbon dioxide.

SCOPE 1

DIRECT EMISSIONS OF THE GROUP RESULTING FROM COMBUS-

TION OF FUEL AND CARBONATES RAW MATERIALS IN SOURCES

OWNED OR CONTROLLED BY THE GROUP

In the CIECH Group, the main source of direct carbon dioxide

emissions are energy assets held in Poland and Germany, which

generate electricity and heat in the form of e.g. high parameters

of process steam for production processes:

• two coal-fired CHP plants (Inowrocław and Janikowo),

• gas-fired heat and power plant (Stassfurt),

• glass furnace (Iłowa) and silicate furnaces (Iłowa, Żary)

• gas boilers (Stassfurt, Iłowa, Żary, Ramnicu Valcea)

The source of direct emissions are also the production processes

themselves, in particular the production of soda ash and baking

soda (Inowrocław, Janikowo, Stassfurt, and until 2019, Ramnicu

Valcea), as well as the production of glass packaging (Iłowa) and

silicates (Iłowa, Żary, Ramnicu Valcea).

Apart from that, the CIECH Group is the owner or user of means

of transport emitting greenhouse gases (diesel locomotives, fleet

of passenger cars). Their impact on the total level of direct air

emissions is insignificant in comparison with the aforementioned

categories.

SCOPE 2

INDIRECT EMISSIONS OF THE GROUP RESULTING FROM THE USE

OF PURCHASED ELECTRICITY AND HEAT

The calculation of indirect Scope 2 CO

emissions is based on the

volume of electricity or heat purchased from external entities for

the purposes of own consumption within the CIECH Group. CO

emissions from energy purchased for resale have not been in-

cluded in accordance with the adopted methodology - the end-

user principle.

NON-FINANCIAL REPORT 2022

ciechgroup.com 35

We make every effort to estimate our impact on the environment as accurately as possi-

ble. In 2022, we initiated the implementation of CO

emission reporting tools using Busi-

ness Intelligence (BI) solutions, which enabled us to improve the process of mapping and

periodical monitoring of emission sources in the CIECH Group, in accordance with the as-

sumption of information management. For the purposes of this report, we have adopted

changes resulting from an internal analysis of emission sources and energy flows. As a re-

sult, we expanded the repository of carbon dioxide emission sources and reported all

tangible and the vast majority of intangible Scope 1 & 2 emission sources. In order to

maintain comparability, the data for the historical period 2019-2021 has been updated.

Possible changes are described in detail in the section on CO

emissions in individual busi-

ness segments and companies of the CIECH Group.

Carbon dioxide emissions from Scope 1 & 2 broken down by category [tCO

]

CIECH Group

2019

2020

2021

2022

Scope 1 - direct emissions, including:

2 920 868

2 641 428

2 671 490

2 727 094

from production of electricity and heat

2 144 670

2 048 266

2 083 562

2 119 355

from production processes

773 484

590 113

584 517

603 832

from consumption of fuels for means of transport

2 715

3 049

3 411

3 907

Scope 2 – indirect emissions, including:

561 906

154 156

153 784

96 573

from purchased electricity

226 116

149 896

149 068

93 059

from purchased heat

335 789

4 261

4 716

3 514

Total - Scope 1 & 2

3 482 774

2 795 584

2 825 274

2 823 667

As part of Scope 2 indirect CO

emissions from energy purchased

from an identified producer, an indicator specific to a given pro-

ducer was used (market-based approach). Such an approach was

used in the calculation of Scope 2 in CIECH Sarzyna from the Agro

segment, which partly uses energy generated in the nearby Nowa

Sarzyna Heat and Power Plant. In other cases, energy was

purchased from an unmarked producer (from the grid) - in this

case, emissions were calculated using publicly available average

emission intensity indices for individual locations (location-based

approach).

Carbon dioxide emissions from Scope 2, broken down by the calculation method used [tCO

]

CIECH Group

2019

2020

2021

2022

Market-based method

548 292

149 038

149 457

93 595

Location-based method

13 613

5 118

4 327

2 979

Total - Scope 2

561 906

154 156

153 784

96 573

NON-FINANCIAL REPORT 2022

ciechgroup.com 36

Scope 1 – direct CO

emissions

[tonnes CO

]

In 2022, the CIECH Group generated slightly more direct CO

emis-

sions compared to the previous year. The increase in direct emis-

sions results from the increase in the scale of the Group's opera-

tions. 2022 was characterised by an increase in production in the

Soda segment - the CIECH Salz production plant was already op-

erating throughout the year, gradually increasing its production

capacity. Production was also intensified at CIECH Soda Polska,

which manufactures a range of soda and salt products. In the Sil-

icates segment, a new energy-saving furnace for the production

of silicates was operating throughout the year, and, in response

to increased demand, we temporarily reactivated the extin-

guished furnace located in our plant in Iłowa. Higher production

volume y/y resulted in an increase in direct CO

emissions.

Scope 2 – direct CO

emissions

[tonnes CO

]

The level of CO

emissions in the category of indirect emissions

from purchased electricity and heat decreased by 37% year on

year. The first effects in reducing emissions are brought by invest-

ments in the installation of photovoltaic panels in several compa-

nies of the Group and energy-saving initiatives, e.g. installation of

modern and energy-saving lighting fixtures.

DIRECT CO

EMISSIONS COVERED BY THE EUROPEAN UNION

EMISSIONS TRADING SCHEME (EU ETS)

In the CIECH Group, the vast majority of direct carbon dioxide

emissions (Scope 1) are covered by the European Union Emissions

Trading Scheme (EU ETS), which covers the activities conducted

in two out of five business segments of the Group. CO

emissions

covered by the EU ETS come mainly from operations in the largest

Soda segment - predominantly from energy production and from

soda production processes, and to a lesser extent from the pro-

duction of glass in the Packaging segment.

emissions covered by the EU ETS ac-

counting for approx. 97% of direct emis-

sions (Scope 1) and approx. 93% of all re-

ported emissions (Scope 1 & 2) are sub-

ject to mandatory verification by an inde-

pendent auditor. According to article 86

of the Act of 12 June 2015 on the green-

house gas emission allowance trading

system, the CIECH Group is obliged to

submit a written report on the volume of

emissions together with a report on

the verification of emissions by an inde-

pendent third party to the National Cen-

tre for Balancing and Management of

Emissions (KOBiZE).

Carbon dioxide emissions covered by the European Union

Emissions Trading Scheme [tCO

]

CIECH Group

2019

2020

2021

2022

emissions

covered by the

EU ETS

2 850 953

2 581 694

2 592 828

2 636 953

Percentage of

direct CO

emis-

sions (Scope 1)

98%

97%

Percentage of

direct and indi-

rect CO

emis-

sions (of Scope

1 & 2)

82%

92%

93%

2 920 868

2 641 428

2 671 490

2 727 094

2019 2020 2021 2022

+2%

561 906

154 156

153 784

96 573

2019 2020 2021 2022

-37%

NON-FINANCIAL REPORT 2022

ciechgroup.com 37

Direct carbon dioxide emissions (Scope 1) in 2022, detailing

the part covered by the European Union Emissions Trading

Scheme (EU ETS) and attribution to the business segment.

Scope 1

2 727 094 tCO

Direct CO

emissions (from Scope 1) cov-

ered by the European Union Emissions

Trading Scheme (EU ETS) and the level

of coverage with free allocations of CO

emission certificates (EUA).

IN OUR ESG STRATEGY “CHEMISTRY FOR A BETTER WORLD”, WE

COMMITTED OUR-SELVES TO

We took 2019 as the reference point for our CO

emissions reduc-

tion targets, in which production levels in our business segments

were not affected by negative external factors such as the COVID-

19 pandemic in 2020, which in turn translated into a spontaneous

reduction in carbon dioxide emissions. To maintain comparability,

we have adopted the following assumptions:

• We do not include CO

emissions attributable to CIECH Soda

Romania. In 2019, the company generated significant

amounts of CO

emissions for the last time in connection

with the production of soda. Since then, the plant in Roma-

nia has been in hibernation.

• To measure the achievement of CO2 emission targets, we do

not include insignificant emissions of CIECH Salz either (ap-

prox. 0.1% of the total emissions of the CIECH Group), in

which production was launched in 2021.

For more information about the implementation of the ESG Strat-

egy in the area of CO

emission reduction go to page 24.

97%

2022

CO2 emissions

not covered by EU

ETS

CO2 emissions

covered by EU ETS

Soda

segment

96%

Packaging

segment

2 850 953

2 581 694

2 592 828

2 636 953

66%

71%

61%

55%

2019 2020 2021 2022

The volume of CO2 emissions covered by EU ETS

Free EUA allocations [%]

2 996 765

2 792 265

2 820 934

2 819 307

2019 2020 2021 2022

ESG Strategy CIECH Soda Romania & CIECH Salz

Reduction by 6%

Reduce greenhouse gas emissions in Scope 1 and 2 by

33% by 2026 compared to the base year 2019

Eliminate coal from the production of energy in its en-

tirety by 2033

Achieve net climate neutrality by 2040

NON-FINANCIAL REPORT 2022

ciechgroup.com 38

In total, the Agro, Foams, Packaging and Other and corporate

functions segments account for approx. 1.5% of the total CO

emissions of the CIECH Group from Scope 1 & 2.

DETAILED INFORMATION ON CO

EMIS-

SIONS IN INDIVIDUAL SEGMENTS AND

COMPANIES

The CIECH Group's business segments are characterised by a var-

ied level of CO

emission intensity, depending on the specificity of

the industrial activity conducted within them. From the perspec-

tive of individual segments, the key element influencing the vol-

ume of emissions is the energy intensity of production and the

presence of production processes using carbonate raw materials.

The vast majority of the CIECH Group's CO

emissions are related

to the production of soda and the energy used for its production.

Carbon dioxide emissions Scope 1 & 2 in 2022 by business

segment [%].

Carbon dioxide emissions from Scope 1 & 2 by business segment [tCO

]

emissions – Scope 1 & 2

2019

2020

2021

2022

Soda segment

3 352 081

2 691 463

2 699 261

2 694 943

Agro segment

21 063

11 218

12 318

11 527

Foams segment

1 914

1 585

1 555

1 312

Silicates segment

77 469

62 428

81 883

85 156

Packaging segment

19 350

18 834

19 455

19 192

Other segment and corporate functions

10 897

10 056

10 802

11 537

CIECH Group

3 482 774

2 795 584

2 825 274

2 823 667

SODA SEGMENT

Carbon dioxide emissions by Scope 1 and 2 categories [tCO

]

Soda Segment

2019

2020

2021

2022

Scope 1 – direct emissions, including:

2 837 236

2 568 156

2 581 477

2 626 560

From production of electricity and heat

2 094 972

2 004 343

2 029 908

2 061 738

CIECH Soda Polska

1 664 857

1 558 318

1 597 470

1 654 970

CIECH Energy Deutschland

426 834

444 677

429 609

403 383

CIECH Soda Romania

3 281

1 348

311

247

CIECH Salz

nd.

2 518

3 138

From production processes

742 264

563 813

551 569

564 822

CIECH Soda Polska

476 326

403 046

420 000

433 253

CIECH Soda Deutschland

148 880

160 767

131 569

CIECH Soda Romania

117 058

nd.

From fuels for means of transport

nd.

Scope 2 – indirect emissions, including:

514 845

123 307

117 784

68 384

Soda

segment

95,4%

Silicates

segment

3,0%

Other

1,5%

Scope 1 & 2

2 823 667

tCO

NON-FINANCIAL REPORT 2022

ciechgroup.com 39

Soda Segment

2019

2020

2021

2022

From purchased electricity

189 235

123 307

117 784

68 384

CIECH Soda Polska

149 175

121 335

116 273

67 408

CIECH Soda Romania

40 060

1 972

1 511

975

From purchased heat

325 610

nd.

CIECH Soda Romania

325 610

nd.

Total - Scope 1 & 2

3 352 081

2 691 463

2 699 261

2 694 943

CIECH SODA DEUTSCHLAND

In connection with the verification by an external company of CO

emissions from the soda production process covered by the Eu-

ropean Union Emissions Trading Scheme (EU ETS), an adjustment

was made to reduce CO

emissions reported for 2021 in category

From production processes by 7,201 tCO

and an adjustment to

increase CO

emissions in the category From production of elec-

tricity and heat by 19 tCO

CIECH SODA ROMANIA

As a result of the analysis of emission sources, a decision was

made to change the category of direct emissions and transfer

some of the CO

emissions from 2019 (3,281 tCO

) reported last

year (3,281 tCO

) and all emissions from 2020 (1,116 tCO

) from

the category From production processes to the category From pro-

duction of electricity and heat. The adjustment does not affect the

total Scope 1 CO

emissions.

As part of Scope 2, the mapping of the volumes of purchased and

resold electricity, as well as the acquired emission indexes, was

revised. As a result, a correction was made to increase the pub-

lished CO

emissions for previous years, by 7,732 tCO

in 2019,

250 tCO

in 2020 and 423 tCO

in 2021, respectively. For electric-

ity, it was decided to adopt publicly available indicators published

by Electricity Maps.

Due to the change in the segment structure of the CIECH Group,

starting from 2022, CIECH Cargo is no longer part of the Soda seg-

ment. In this report, CO

emissions assigned to CIECH Cargo in

2019-2022 are presented in the section on the Other segment, in

accordance with the current structure of the Group.

AGRO SEGMENT

Carbon dioxide emissions by Scope 1 and 2 categories [tCO

]

Agro segment - CIECH

Sarzyna

2019

2020

2021

2022

Scope 1 – direct emis-

sions

nd.

Scope 2 – indirect emis-

sions, including:

21 063

11 218

12 318

11 527

From purchased elec-

tricity

11 681

7 627

8 285

8 549

From purchased heat

9 382

3 590

4 033

2 979

Total - Scope 1 & 2

21 063

11 218

12 318

11 527

CIECH SARZYNA

CIECH Sarzyna does not generate direct CO

emissions. For pro-

duction and administration purposes, the company acquires elec-

tricity and heat. The supplier of its heat is the modern Nowa

Sarzyna Heat and Power Plant (outside the CIECH Group) located

in the immediate vicinity. In 2019-2021, in the case of electricity,

part of the energy supplies also came from the Nowa Sarzyna CHP

plant. In the calculation of indirect CO

emissions (Scope 2) from

this source, the market-based method was used, on the basis of

the emission indexes published by the Nowa Sarzyna Heat and

Power Plant. For electricity purchased from the grid, the location-

based method was adopted and publicly available CO

emission

indexes for end users published by the National Centre for Bal-

ancing and Management of Emissions (KOBiZE) were used.

In order to make the calculation as accurate as possible, CO

emis-

sions resulting from insignificant losses in energy transmission

were taken into account, and flows going outside the CIECH

Group as part of the resale of energy to housing estates in the

vicinity of the plant were precisely mapped. In order to maintain

comparability, the data for CIECH Sarzyna for previous years was

corrected.

NON-FINANCIAL REPORT 2022

ciechgroup.com 40

FOAMS SEGMENT

Carbon dioxide emissions by Scope 1 and 2 categories [tCO

]

Foams segment - CIECH

Pianki

2019

2020

2021

2022

Scope 1 – direct emis-

sions

nd.

Scope 2 – indirect emis-

sions, including:

1 914

1 585

1 555

1 312

From purchased elec-

tricity

1 116

915

872

777

From purchased heat

798

670

683

536

Total - Scope 1 & 2

1 914

1 585

1 555

1 312

CIECH PIANKI

Data for the Foams segment, to which CIECH Pianki belongs, have

been separated. In the previous report for 2021, the segment was

included in the "Other activities" section. The company does not

generate direct carbon dioxide emissions. For the calculation of

indirect Scope 2 CO

emissions, the location-based method was

adopted, on the basis of publicly available emission factors - in

the case of electricity, the national indicator for end users pub-

lished by the National Centre for Balancing and Management of

Emissions (KOBiZE) was used, while in the case of heat, the CO

emission factor was used for network heating in Bydgoszcz,

where the company is located.

SILICATES SEGMENT

Carbon dioxide emissions by Scope 1 and 2 categories [tCO

]

Silicates segment -

CIECH Vitrosilicon

2019

2020

2021

2022

Scope 1 – direct emis-

sions

67 044

56 483

72 583

82 781

From production of

electricity and heat

38 948

33 024

42 502

46 123

From production pro-

cesses

28 096

23 459

30 081

36 658

From fuels for means of

transport

nd.

Scope 2 – indirect emis-

sions, including:

10 425

5 945

9 300

2 374

From purchased elec-

tricity

10 425

5 945

9 300

4 605

From purchased heat

nd.

Total - Scope 1 & 2

77 469

62 428

81 883

85 156

CIECH VITROSILICON

Direct CO

emissions (Scope 1) in the Silicates segment, to which

CIECH Vitrosilicon belongs, come from heat generated in gas fur-

naces for the production of silicates in Iłowa and Żary, as well as

a small amount of heat produced for administrative purposes. In

addition, in the silicate production process, carbonate raw mate-

rials are burned, e.g. soda ash. The Silicates segment produces in-

organic chemicals that are not covered by the European Union

Emissions Trading Scheme (EU ETS).

For the calculation of indirect CO

emissions from Scope 2 result-

ing from the consumption of electricity purchased from third par-

ties, the emission index for end users from the publicly available

report of the National Centre for Balancing and Management of

Emissions (KOBiZE) was used.

It should be noted that in April 2021, CIECH Vitro was separated

from CIECH Vitrosilicon and assigned to a separate Packaging seg-

ment. From that moment, the purchase of electricity from exter-

nal suppliers is monitored separately for each company. In order

to present the best comparative data for previous years, the data

was updated by assigning CO

emissions to the appropriate com-

pany using the energy consumption key in 2022 (separate elec-

tricity purchase register kept for a full year for both companies).

In the case of heat, the total demand of CIECH Vitrosilicon is cov-

ered by its own production.

PACKAGING SEGMENT

Carbon dioxide emissions by Scope 1 and 2 categories [tCO

]

Packaging segment -

CIECH Vitro

2019

2020

2021

2022

Scope 1 – direct emis-

sions, including:

13 874

13 740

14 019

13 846

From production of

electricity and heat

10 749

10 899

11 152

11 494

From production pro-

cesses

3 124

2 841

2 867

2 352

From fuels for means of

transport

nd.

Scope 2 – indirect emis-

sions, including:

5 476

5 094

5 436

5 346

From purchased elec-

tricity

5 476

5 094

5 436

5 346

From purchased heat

nd.

Total - Scope 1 & 2

19 350

18 834

19 455

19 192

CIECH VITRO

The Packaging segment comprises CIECH Vitro, registered on 1

April 2021, which was separated from CIECH Vitrosilicon (Silicates

segment). The core business of CIECH Vitro is the production of

lanterns and glass packaging. This activity is covered by the Euro-

pean Union Emissions Trading Scheme (EU ETS).

As part of direct emissions, CO

emissions from gas used to gen-

erate heat in a glass furnace are reported - category "From pro-

duction of electricity and heat", and CO

emissions resulting from

the combustion of carbonate raw materials (soda ash, lime pow-

der) - category "From production processes”. The vast majority of

NON-FINANCIAL REPORT 2022

ciechgroup.com 41

these emissions are accounted for under the EU ETS. In addition,

the calculation includes insignificant amounts of CO

emissions

generated from the gas boiler in Iłowa, which are not covered by

the EU ETS.

Full records of data broken down into the Silicates and Packaging

segment are kept from the time of registration of the new com-

pany. To ensure data comparability, both in the Packaging and Sil-

icates segments, historical data was adjusted to the current struc-

ture of the CIECH Group. The data reported this year has been

updated according to the consumption key of purchased electric-

ity in 2022.

OTHER SEGMENT AND CORPORATE

FUNCTIONS

Carbon dioxide emissions by Scope 1 and 2 categories [tCO

]

Other segment and cor-

porate functions

2019

2020

2021

2022

Scope 1 – direct emis-

sions, including:

2 715

3 049

3 411

3 907

From production of

electricity and heat

nd.

From production pro-

cesses

nd.

From fuels for means of

transport

2 715

3 049

3 411

3 907

Scope 2 – indirect emis-

sions, including:

8 182

7 007

7 391

7 630

From purchased elec-

tricity

8 182

7 007

7 391

7 630

From purchased heat

nd.

Total - Scope 1 & 2

10 897

10 056

10 802

11 537

By adapting the CO

emission reporting system to the current seg-

ment structure of the CIECH Group, in this report, in the section

on the Other and corporate functions segment, the emissions of

CIECH Cargo are presented, which were included in the Soda seg-

ment in the previous year. This company generates direct emis-

sions related to the fuel used for diesel locomotives, as well as

indirect emissions related to the purchase of electricity for the

needs of the fleet of electric locomotives. In this year's report, we

expanded the repository with the amount of fuel for diesel loco-

motives that was used in siding manoeuvres. To maintain compa-

rability, the presented historical data was adjusted by increasing

the amount of CO

emissions in the Z category of fuels for means

of transport by 273 tCO

in 2019, 365 tCO

in 2020 and 462 tCO

in 2021, respectively.

From the section on other activities, the company CIECH Pianki

was also separated and presented separately in the Foams seg-

ment section.

NON-FINANCIAL REPORT 2022

ciechgroup.com 42

AIR QUALITY

Improving air quality by reducing emis-

sions is one of the key goals we set our-

selves in the environmental area. We sys-

tematically adapt our installations to new

legal obligations and tightening emission

standards. As the CIECH Group, we strive

to constantly reduce emitted pollutants.

Emission of selected compounds into the

air in 2022

(except carbon dioxide)

9 846 tonnes

In recent years, the CIECH Group has carried out several invest-

ments, especially in the Soda segment, which contribute to the

protection of the atmosphere, including:

• reduction of dust emissions from the owned CHP plants

through the modernisation of electrostatic precipitators,

• reduction of nitrogen oxides from the owned CHP plants by

building a flue gas denitrification installation using 3 levels of

catalytic inserts (in Inowrocław and Janikowo locations),

• reduction of sulphur dioxide from the owned CHP plants by

constructing a flue gas desulfurisation unit,

• modernisation of the dedusting system at the monohydrate

installation in Inowrocław,

• modernisation of the dust extraction system at the Lime Kiln

Installation in Inowrocław,

• reducing noise emissions by installing acoustic protection at

the soda production installation and the CHP plant in Inow-

rocław, as well as at the salt and soda production installation

in Janikowo,

• installation of photovoltaic panels to reduce the use of en-

ergy from fossil fuels.

The aforementioned modernisations, in line with the adaptation

of the installation to the new emission standards, in connection

with the very restrictive requirements of the BAT Conclusions for

LCPs and in connection with the completion of the TNP (in mid-

2020), significantly contributed to the reduction of individual

types of pollutants into the atmosphere.

In addition, in order to reduce emissions into the air, our installa-

tions are equipped with various atmosphere protection devices

with high pollution reduction efficiency. These devices include,

among others: wet dust collectors (efficiency of 85.5%), cyclones

and scrubbers (efficiency of 99%), multi-cyclones (efficiency of

95%), and bag filters (efficiency between 95% and 99.9%).

Measurements of air emissions in the CIECH Group are carried out

in accordance with applicable regulations and permits held. Gas

and dust emissions are monitored by installed continuous moni-

toring systems (CHP plants) and by periodic measurements at

other emitters. In addition, modern measurement systems have

been installed on the emitters, especially those related to the

Soda segment, which made it possible to monitor emissions with

greater accuracy and precision.

Nitrogen

oxides (NOx);

21,9%

Sulphur

dioxide

(SO2);

9,6%

Total dusts;

3,8%

Ammonia

(NH3);

48,9%

Carbon

monoxide CO;

15,8%

Volatile organic

compounds;

0,1%

NON-FINANCIAL REPORT 2022

ciechgroup.com 43

In 2022, at one of the thirty-two points of organized dust emission

(emissions through specially adapted emitters), located on the

premises of the production plant in Inowrocław, the dust emis-

sion standards were exceeded on the soda monohydrate installa-

tion. The reason for such exceedance was the improper operation

of the filtration systems, which were partially degraded due to

faster wear of the filters.

In September 2022, new elements of the

filtration system were delivered and in-

stalled, and in October, the installation of

nearly a thousand new filter bags and

support baskets, increasing the efficiency

of soda dust capture, was completed at

the site of the soda monohydrate instal-

lation. The first measurements of dust,

carried out by accredited laboratories af-

ter the completion of these investments,

indicated that the level of dust emission

was three times lower than the permissi-

ble standard.

The replacement of nearly a thousand filter bags and support bas-

kets is part of a comprehensive plan to reduce dust from soda

production in Inowrocław. soda dust is the result of the produc-

tion process and is safe for people, animals, and the environment,

just like the soda itself, which is used in the production of medi-

cines, food or feed.

The favourable results of dust emission measurements were also

confirmed by the laboratory of the Chief Inspectorate of Environ-

mental Protection. Irrespective of the positive results of the

measurements, the CIECH Group intends to continue the planned

programme of comprehensive measures to reduce the risk of

dust from other sources. Moreover, in December 2022, additional

measuring equipment was installed for continuous measurement

of dust emissions at the soda monohydrate installation.

Results of dust emission measurements

result range [kg/h]

0.23 – 0.63

Dust emission limits included

in the integrated permit

[kg/h]

1.726

VS.

NON-FINANCIAL REPORT 2022

ciechgroup.com 44

In 2022, the only place in the entire Inowrocław plant where the

dust limit was temporarily exceeded was the soda monohydrate

installation. The CIECH Group completed remedial actions in or-

der to reduce dusting to a level significantly lower than the level

allowed by the standards in the integrated permit held. At the

same time, in order to prevent similar situations from happening

in the future, a comprehensive plan was prepared to reduce dust

from the entire plant in Inowrocław, which will be implemented

in the coming quarters. The total value of the planned initiatives

may amount to as much as PLN 17 million by the end of 2025. The

preventive action plan, covering potential sources of dust other

than the soda monohydrate installation, includes, among others:

replacement or modernisation of filters on individual sections of

the soda production line, as well as reduction of fugitive emis-

sions, i.e., dusting from roads or ponds. Although no violations of

the standards were found in these places, the intention of the

CIECH Group is to minimise dusting throughout the factory.

WE HAVE COMPLETED THE PRIORITY REMEDIAL ACTIONS, BUT

IN ORDER TO PREVENT SIMILAR SITUATIONS IN THE FUTURE,

WE ARE IN THE PROCESS OF IMPLEMENTING COMPREHENSIVE

MEASURES TO REDUCE THE RISK OF POTENTIAL DUSTING

FROM OTHER IDENTIFIED PLACES THROUGHOUT THE INOW-

ROCŁAW PLANT.

At the end of 2022, we installed a dust meter

on the monohydrate soda installation

(the calibration process ended in January 2023)

Replacement of elements of the dust extrac-

tion system at the lime kiln installation

Replacement/modernisation of dedusting fil-

ters at the soda packaging installation and fin-

ished products warehouse

Works on slopes near ponds - reduction of

noise and dust

An 8-9 month audit by an external company in

terms of sources of dust and the impact of ex-

ternal (atmospheric) factors increasing the

level of dust from the factory

PLN 17 M Value of all initiatives as part of

the project by the end of 2025

NON-FINANCIAL REPORT 2022

ciechgroup.com 45

At the end of the year, specialist drones

examined the CIECH plant in Inowrocław

in terms of the condition of infrastruc-

ture and air quality, providing detailed

information on the condition of the air

over the Inowrocław plant.

Four drones flew over the CIECH plant in Inowrocław in early De-

cember. The flying machines created an accurate, three-dimen-

sional image of the factory, and provided comprehensive infor-

mation on the condition of the transmission infrastructure, waste

ponds and air quality. Testing with an equipped with a set of sen-

sors and precise measuring equipment will significantly support

the improvement of the plant's operation, increasing production

efficiency and reducing its impact on the natural environment.

The unmanned aerial vehicles are equipped with high-resolution

cameras, including thermal imaging, as well as precise positioning

systems and sensors for testing air quality for the presence of sus-

pended dust. The analyses provided by the drones will be an im-

portant element of the activities aimed at reducing dusting at the

Inowrocław plant.

LEGAL ENVIRONMENT:

In connection with the requirements of the Industrial Emissions

Directive (IED Directive) and the need to adapt to new, more re-

strictive emission standards, e.g., with regard to sulphur dioxide,

nitrogen oxides and particulate matter, periods have been set for

plants producing energy and steam (CHP plants) during which

these installations will have to adapt to the new emission caps.

The following periods have been distinguished:

• the period until 30 June 2020 (extension of the deadline for

adapting the LCP installation under the Transitional National

Plan (TNP)),

• the period from 1 July 2020 to 17 August 2021 (from the end

of participation in the TNP to the end of the deadline for

adapting to the new BAT Conclusions for LCPs),

• the period from 18 August 2021 (validity of the amended

BAT Conclusions for LCPs).

From 1 July 2020, power and steam generating plants are subject

to restrictive emission standards for dust emissions (20-25

mg/Nm

), sulphur oxides (200-250 mg/Nm

) and nitrogen oxides

(200 mg/Nm

) for large combustion plants (LCPs). On the other

hand, from 18 August 2021, new, very restrictive emission levels

for large combustion plants have been in force, resulting from the

new BAT Conclusions for LCPs. The new emission values are re-

spectively: for dust (15-20 mg/Nm

), sulphur oxides (130-200

mg/Nm

) and nitrogen oxides (150-180 mg/Nm

). In addition, for

sources with a nominal power of more than 300 MW, continuous

measurement of mercury emissions should be carried out. Ad-

ministrative proceedings aimed at issuing amended integrated

permits, adapted to the requirements of the BAT Conclusions for

LCPs, are currently underway. The BREF LVIC (Large Volume Inor-

ganic Chemicals) requirements are also being revised, covering,

among others, soda and salt production processes. The planned

completion of the BREF LVIC revision is 2027.

2019

2020

2021

2022

Nitrogen oxides (NOX)

1 988

1 771

1 785

2 160

Sulphur dioxide (SO

)

1 655

1 085

891

944

Total dusts

251

176

169

370

Ammonia (NH

)

4 451

2 130

2 253

4 811

Carbon monoxide CO

9 867

6 699

1 590

1 552

Volatile Organic Com-

pounds (VOCs)

Total

18 258

11 907

6 697

9 846

Soda

segment

94,7%

Silicates

segment

4,6%

Other

0,7%

9 846

tonnes

NON-FINANCIAL REPORT 2022

ciechgroup.com 46

ENERGY

Energy generated and purchased

in 2022

7 378 758 MWh

Energy sales in 2022

636 273 MWh

Energy consumption in 2022

6 742 485 MWh

ENERGY ASSETS OF THE CIECH GROUP

The CIECH Group has its own energy assets, which have been lo-

cated in the Soda segment due to technological liaisons. Produc-

tion plants in the Soda segment are the main recipient of the en-

ergy produced due to the high energy intensity of the production

processes. Two of the CIECH Group's CHP plants are located in

Poland and one in Stassfurt. Operationally, the CHP installations

are part of the technological process carried out as part of the

production of soda and salt.

SODA SEGMENT

CIECH SODA POLSKA (INOWROCŁAW & JANIKOWO)

The Inowrocław CHP plant with a total thermal power of 356

MWt, equipped with four steam boilers supplying steam to three

back-pressure turbine sets (TPP) with a total generator capacity

of 37.4 MWe. The heat generated in cogeneration comes from

the combustion of hard coal.

The Janikowo CHP Plant with a total achievable thermal power of

405.55 MWt, equipped with five steam boilers supplying steam

to five back-pressure turbine sets (TPP) with a total generator ca-

pacity of 56.0 MWe. The heat generated in cogeneration comes

from the combustion of hard coal.

The CHP plants of CIECH Soda Polska S.A. fired with hard coal

meet the environmental requirements (IED directive), thanks to

Generated

energy

90%

Purchased energy

10%

Heat energy

consumption

89%

Electricity

consumption

11%

Certificates of origin from renewa-

ble sources for 73 000 MWh of elec-

tricity in 2022.

In 2022, we installed photovoltaic

panels in five Group companies.

NON-FINANCIAL REPORT 2022

ciechgroup.com 47

the operation of the flue gas desulfurisation and denitrification

installations.

Moreover, CIECH Soda Polska as an energy company, in addition

to energy activities consisting in the generation of electricity and

heat, also acts as a distribution network operator (DNO) on its

own network.

CIECH ENERGY DEUTSCHLAND (STASSFURT)

The Stassfurt Heat and Power Plant, with a total thermal power

of 553 MWt, is equipped with two gas turbines with heat recovery

boilers and two gas boilers, and supplies one back-pressure tur-

bine set (TPP). The total installed capacity of the generators is 134

MWe. The heat generated in cogeneration comes from the com-

bustion of natural gas.

The CIECH Energy Deutschland Heat and Power plant is fired with

natural gas and meets the environmental requirements (IED Di-

rective) without the need to build additional flue gas treatment

installations.

OTHER

In 2022, we installed photovoltaic panels in five CIECH Group

companies - Sarzyna, Pianki, Vitro, Nieruchomości and Cargo.

EXTERNAL PURCHASE SOURCES OF ELEC-

TRICITY AND HEAT

CIECH SODA DEUTSCHLAND & CIECH ENERGY DEUTSCHLAND

(STASSFURT)

For the production of soda in Germany, heat and electricity sup-

plied from the REMONDIS Thermische Abfallverwertung GmbH

thermal waste processing installation located in the vicinity are

used. In 2022, the CIECH Group obtained nearly 409 GWh of heat

and electricity from this source.

CIECH SODA ROMANIA (GOVORA)

The soda plant in Romania is currently in hibernation. Until the

cessation of production, it used process steam produced in the

assets of CET Govora, which uses lignite as fuel.

CIECH SARZYNA (NOWA SARZYNA)

The production plant of the Agro segment located in Nowa

Sarzyna obtains heat from the modern Nowa Sarzyna Heat and

Power Plant (not related to the CIECH Group) located nearby,

which uses natural gas. Since 2021, heat has been purchased

through LERG S.A.

OTHER

In other cases, the source of electricity is predominantly a seller

selected in a tender or having a natural monopoly (traction en-

ergy), and the source of heat is local (network) suppliers.

ELECTRICITY ORIGIN GUARANTEES

Guarantees of origin for electricity generated from renewable en-

ergy sources are documents certifying to the end customer who

purchases them that the amount of electricity introduced into the

distribution network or transmission grid specified in this docu-

ment comes from renewable energy sources (RES).

In 2022, under the renewable energy guarantee of origin (GoO)

system, certificates were obtained for the following three compa-

nies from the CIECH Group:

• CIECH Soda Polska – certificate of origin for 69,850 MWh of

electricity from renewable sources,

• CIECH Vitrosilicon – certificate of origin for 3,150 MWh of

electricity from renewable sources.

In 2022, the CIECH Group purchased certificates of origin for

73,000 MWh of electricity from renewable sources, which pre-

vented about 52,000 tons of CO

emissions..

SALE OF ELECTRICITY AND HEAT

The Soda segment also carries out activities involving the sale and

resale of electricity and heat to third parties.

Electricity is sold primarily by CIECH Energy Deutschland, which

manages the power plant in Stassfurt. The vast majority of elec-

tricity produced there goes to external customers.

Heat is sold both by the German companies: CIECH Energy

Deutschland and CIECH Soda Deutschland, and the Polish com-

pany: CIECH Soda Polska, where the CHP plants in Inowrocław and

Janikowo are located.

Some companies from other segments sell small amounts of elec-

tricity to third parties.

NON-FINANCIAL REPORT 2022

ciechgroup.com 48

ELECTRICITY

CIECH GROUP – ELECTRICITY [MWH]

Electricity [MWh]

2019

2020

2021

2022

Generated

1 029 347

1 053 020

1 036 927

891 764

Purchased from third parties

472 505

360 478

415 075

389 010

Sold outside the CIECH Group

688 115

717 896

729 598

530 656

Consumption for own purposes

813 737

695 602

722 404

750 118

CIECH SODA POLSKA – ELECTRICITY [MWH]

Electricity [MWh]

2019

2020

2021

2022

Generated

331 194

316 374

334 168

348 574

Purchased from third parties

213 038

186 016

184 690

180 600

Sold outside the CIECH Group

18 038

17 260

18 109

15 540

Consumption for own purposes

526 194

485 130

500 748

513 633

CIECH SODA DEUTSCHLAND & CIECH ENERGY DEUTSCHLAND – ELECTRICITY [MWH]

Electricity [MWh]

2019

2020

2021

2022

Generated

698 154

736 646

702 759

543 073

Purchased from third parties

126 863

118 403

167 207

156 582

Sold outside the CIECH Group

663 192

687 326

696 104

502 718

Consumption for own purposes

161 824

167 723

173 862

196 937

HEAT

CIECH GROUP – HEAT [MWH]

Heat [MWh]

2019

2020

2021

2022

Generated

5 666 428

5 434 112

5 683 267

5 740 840

Purchased from third parties

1 329 926

344 982

355 057

357 144

Sold outside the CIECH Group

107 695

99 739

107 773

105 617

Consumption for own purposes

6 888 660

5 679 355

5 930 552

5 992 367

CIECH SODA POLSKA – HEAT [MWH]

Heat [MWh]

2019

2020

2021

2022

Generated

4 409 278

4 128 189

4 367 533

4 434 018

Purchased from third parties

Sold outside the CIECH Group

44 723

43 108

47 368

42 604

Consumption for own purposes

4 364 556

4 085 081

4 320 164

4 391 414

NON-FINANCIAL REPORT 2022

ciechgroup.com 49

CIECH SODA DEUTSCHLAND & CIECH ENERGY DEUTSCHLAND – HEAT [MWH]

Heat [MWh]

2019

2020

2021

2022

Generated

1 254 135

1 301 686

1 297 464

1 286 096

Purchased from third parties

342 076

325 587

334 789

342 269

Sold outside the CIECH Group

58 459

56 631

60 404

63 012

Consumption for own purposes

1 537 752

1 570 641

1 571 848

1 565 354

MANAGEMENT OF THE ENERGY SECTOR

As part of managing the energy sector in the CIECH Group com-

panies, the following areas are supervised:

• energy law - analysis of energy regulations affecting business

activity,

• energy and capacity market - analysing and monitoring the

energy market and the capacity (power) market on an ongo-

ing basis, as well as purchasing electricity for Group compa-

nies,

• tariffs and licences - dealing with matters related to the ap-

proval of tariffs for electricity and heat and the implementa-

tion of the tasks of the Distribution Network Operator (DNO)

of the power industry,

• strategy - participation in the development and implemen-

tation of the strategy in the area of energy within the CIECH

Group,

• supervision - supervision over the effective functioning of

the energy sector, including participation in the analysis of

current and future costs of energy, energy assets and their

optimisation (maintaining continuity of energy supplies, re-

ducing the carbon footprint and adapting to changing regu-

lations),

• energy efficiency - representing the company before the En-

ergy Regulatory Office on submitted applications for energy

efficiency certificates,

• representation - cooperation with institutions, offices, in-

dustry chambers as well as energy suppliers and recipients..

GENERATED ENERGY BY CATEGORY

Grupa CIECH

2019

2020

2021

2022

[MWH]

[GJ]

[MWH]

[GJ]

[MWH]

[GJ]

[MWH]

[GJ]

Coal

4 740 472

17 065 698

4 444 563

16 000 427

4 701 700

16 926 121

4 782 592

17 217 331

Gas

1 955 304

7 039 094

2 042 569

7 353 248

2 018 493

7 266 575

1 849 923

6 659 724

RES

318

CIECH Energy

Deutschland

6 695 776

24 104 792

6 487 132

23 353 675

6 720 193

24 192 696

6 632 604

23 877 374

ENERGY CONSUMPTION BY TYPE

Grupa CIECH

2019

2020

2021

2022

[MWH]

[GJ]

[MWH]

[GJ]

[MWH]

[GJ]

[MWH]

[GJ]

Electricity

813 737

2 929 452

695 602

2 504 168

722 404

2 600 654

750 118

2 700 424

Heat

6 888 660

24 799 174

5 679 355

20 445 679

5 930 552

21 349 986

5 992 367

21 572 523

Total

7 702 396

27 728 627

6 374 958

22 949 847

6 652 955

23 950 640

6 742 485

24 272 947

NON-FINANCIAL REPORT 2022

ciechgroup.com 50

ENERGY EFFICIENCY

An important element of the activities of the CIECH Group com-

panies is continuous improvement and increasing energy effi-

ciency. In accordance with the Energy Efficiency Act, a mandatory

audit of the company's energy efficiency is carried out every 4

years (last audit conducted in 2021). In addition, for implemented

projects that improve energy efficiency, applications are submit-

ted to the Energy Regulatory Office (ERO) for the issuance of en-

ergy efficiency certificates, the so-called white certificates traded

on the Polish Power Exchange (TGE). In 2022, energy efficiency

certificates were sold on the TGE in the total amount of 614 toe.

The sales revenue amounted to approx. PLN 1.6 million. In addi-

tion, the obligation of CIECH Soda Polska for 2021 was settled (24

toe was redeemed).

White certificates sold [toe]

Heating networks

Modernisation of lighting

541

Total

614

At the end of 2022, 382 toe of White Certificates were left in the

CIECH Soda Polska account.

White Certificates as at 31.12.2022 [toe]

Modernisation of lighting

200

Installation of apparatus and devices on raw soda and

calcination in Inowrocław

139

Lime plant – insulating covers

Total

382

The efficiency improvement programme plays an important role

in the strategic assumptions of the CIECH Group for the coming

years. The table below shows a list of applications submitted in

2022 to the ERO, which includes tasks in progress.

Requested white certificates [toe]

2022

Heat recovery expansion from the calcination process

3 354

DEMI water heater

1 520

Heat recovery for lye heating

1 439

Modernisation of the compressor system in Janikowo

1 169

Modernisation of the waste salt system

1 029

Thermal insulation of apparatus and pipelines at the

premises of CIECH Soda Polska S.A. in Inowrocław

784

Modernisation and replacement of industrial insula-

tion in Janikowo

772

DS2 apparatus isolation

142

Lime plant – insulating covers

Total

10 253

Further initiatives to improve energy efficiency, for which white

certificates can be obtained, are under analysis.

According to the RES Act, two companies of the CIECH Group fall

into the category of energy-intensive enterprises. For this reason,

in 2022 they received support under the reduced RES obligation.

For CIECH Soda Polska, the RES obligation was reduced to 60%,

and for CIECH Vitrosilicon to 80%, in the total amount of PLN 3.3

million. In order to obtain the relief for 2023, in accordance with

the RES Act, in November 2022 applications were submitted to

the ERO, together with the opinion of the statutory auditor, con-

firming the calculation of the energy intensity coefficient.

According to article 15 of the Energy Efficiency Act, CIECH Soda

Polska, as a company consuming more than 100 GWh (over 500

GWh), settles accounts with the energy supplier for the obligation

to provide electricity with white certificates. The settlement takes

place by sending a statement on the implementation of the task

showing savings in the amount of 5,803 toe, i.e. approx. 67,490

MWh. Together with the statement, confirmation of the energy

efficiency audit is submitted. 4,876 toe remain to be used in the

be issued for approx. 215 toe (the register will be reduced by this

value) corresponding to savings in energy purchase costs (white

certificates in the energy mix of 1.5%) in the amount of PLN 0.5

million.

In addition, in 2022, in accordance with the Act on the Compen-

sation System for Energy-Intensive Sectors and Subsectors, two

companies, CIECH Soda Polska and CIECH Vitrosilicon, received an

inflow of PLN 16.3 million in total related to the settlement of

2021. In order to fulfil the obligation imposed by the Act on the

Compensation System guarantees (certificates) of origin were

purchased in the amount of 73,000 MWh for PLN 0.15 million,

corresponding to at least 30% of the consumed electricity cov-

ered by compensation.

Total savings resulting from unrealised

energy purchase costs and additional rev-

enues as a result of the implementation

of tasks to improve energy efficiency for

2022 amount to PLN 22.5 million.

NON-FINANCIAL REPORT 2022

ciechgroup.com 51

WATER RESOURCES AND SEW-

AGE MANAGEMENT

Total water intake in 2022

35 960 216 m3

CIECH Group – Total water intake in 2022 by category [m3]

The goal of the CIECH Group is to continuously improve the way

it conducts business so that the water and sewage management

is carried out in an optimised and sustainable manner. The CIECH

Group companies are obliged to use water resources responsibly,

thus reducing the impact of our operations on water resources

and the environment.

For the purposes of production processes, the CIECH Group com-

panies use water abstracted from both natural sources and mu-

nicipal water supply systems. Water from natural sources is used

for production, social and living purposes, cooling and energy. In

order to reduce its consumption, our plants operate closed water

circuits, which is part of the implementation of the assumptions

of the circular economy. The use of increased water circulation in

the technological circuit is aimed at reducing water consumption

from natural sources.

Total sewage discharge in 2022

35 638 943 m3

CIECH Group - Total wastewater discharge in 2022, broken

down by category [m3]

In order to improve our water and sewage management in the

CIECH Group companies, modernisation, investment as well as re-

search and development works are planned to limit the negative

impact of operations on the environment.

In 2022, the research and development

(R&D) team of the CIECH Group devel-

oped an innovative method of recovering

the so-called waste salt, formed during

the production of sodium carbonate

(soda ash). The solution implemented at

the factory in Inowrocław allows for the

reduction of chloride emissions in

wastewater by approx. 7.5 thousand

tonnes per year. The waste salt recovery

installation launched in Inowrocław is the

result of two years of work by a team of

technologists and production specialists.

The installation also enables the recovery

of approx. cubic meters of brine sepa-

rated from the waste salt, which was pre-

viously treated as waste. Thanks to the

proprietary and innovative solution of

the CIECH Group, the emissions of chlo-

rides and the amount of sewage in the

factory in Inowrocław have been re-

duced.

Discharge of

sewage into

waters

94,6%

Discharge of

sewage to a

municipal

treatment plant

5,4%

Surface water

93,6%

Groundwater

6,3%

Municipal

water supply

systems

0,1%

NON-FINANCIAL REPORT 2022

ciechgroup.com 52

CIECH Group – Total water intake in 2019-2022 by category [m3]

CIECH Group

2019

2020

2021

2022

Surface water

41 721 743

31 905 286

32 288 603

33 666 130

Groundwater

2 931 806

2 523 176

2 443 404

2 264 075

Water supply networks

36 888

27 078

35 493

30 011

Total water intake

44 690 437

34 455 540

34 767 500

35 960 216

CIECH Group – Total wastewater discharge in 2019-2022 by category [m3]

CIECH Group

2019

2020

2021

2022

Discharge of sewage into waters

42 917 646

34 133 155

33 780 598

33 701 753

Discharge of sewage to a municipal treatment

plant

1 314 668

1 619 433

1 902 573

1 937 190

Total wastewater discharge

44 232 314

35 752 588

35 683 171

35 638 943

WASTE AND HAZARDOUS MA-

TERIALS

Total amount of waste in 2022

excluding municipal waste

528 991 tonnes

Hazardous waste is less than 0.05%

Recycled waste

529 669 tonnes

Due to the dynamically changing waste management obligations

and regulations, we continuously adapt to changes in the formal

and legal environment and strive to reduce the amount of waste

generated and manage waste and raw materials sustainably. The

CIECH Group generates waste, the main source of which is pro-

duction processes in individual plants. Waste management is car-

ried out in accordance with the permits and administrative deci-

sions held.

All companies of the CIECH Group, which are subject to the obli-

gation to register in the products, packaging and waste manage-

ment database, have appropriate registrations. Our companies

maintain current quantitative and qualitative waste records.

We also make every effort to ensure that entities cooperating

with us in waste management have the same values as the CIECH

Group, carrying out their activities in a responsible manner, with

care for the environment. The selection of entities collecting and

managing waste generated in the CIECH Group companies is pre-

ceded by a detailed analysis of current permits and administrative

decisions.

The CIECH Group implements the assumptions of a circular econ-

omy, using some of the waste it produces as secondary raw ma-

terials or materials for the reclamation of areas transformed by

human economic activity. Some of the waste we generate is sec-

ondary raw materials for other industries, for example our waste

is used in the production of cement and clinker, which enables us

to reduce the use of natural aggregates and emissions to the en-

vironment.

Waste recovered

internally;

18,3%

Waste

recovered/recycl

ed externally;

81,7%

NON-FINANCIAL REPORT 2022

ciechgroup.com 53

For the entire CIECH Group, we have set

a reduction target of limiting the amount

of generated waste by 15% by 2025.

There are also plans to increase the use

of secondary raw materials by searching

for new recipients and ways to manage

the generated post-production waste.

For this purpose, the CIECH Group con-

ducts research and development.

CIECH Group - Total amount of waste in 2019-2022, broken

down by category [tonnes]

CIECH Group

2019

2020

2021

2022

Hazardous

waste

833

589

366

185

Non-hazardous

waste (exclud-

ing municipal

waste)

1 049 671

512 442

523 569

528 806

Total amount

of waste (ex-

cluding munici-

pal waste)

1 050 504

513 031

523 935

528 991

RESTORATION OF DEGRADED

AREAS - RECLAMATION

In order to minimise the impact of our

operations on the environment, the

CIECH Group performs a number of recla-

mation works. Reclamation is a process

of restoring utility and natural values to

areas that have been transformed as a

result of human economic activity or by

natural factors.

In recent years, we have carried out reclamation works on land-

fills where, in the past, e.g. distillation sludge was stored.

Based on the administrative decisions, the works are carried out

in accordance with the assumptions of the schedule, in which the

sequence of activities related to the technical closure of the pond

with a technical mixture, and then biological reclamation with the

use of an agrotechnical mixture, plays an important role. The area

prepared in this way is finally left for self-cleaning by natural suc-

cession.

PHASE I - TECHNICAL CLOSING OF THE POND WITH A TECHNICAL

MIX.

As part of the formation of the technical layer, ashes and slag,

ash-slag mixtures and lime 09 produced in one of the CIECH Group

companies are applied on the surface of the ponds.

PHASE II - BIOLOGICAL RESTORATION WITH THE USE OF AGRO-

TECHNICAL MIX.

The agrotechnical layer is a mixture of ash and slag maintained in

a 2:1 ratio to sewage sludge. Stabilised sewage sludge is collected

from the Municipal Sewage Treatment Plant and from the Munic-

ipal Water and Sewage Company. The physical and chemical

properties of the sewage sludge used are controlled by accredited

laboratories in terms of meeting the requirements for their use

as part of reclamation works.

At the end of 2022, in accordance with

the schedule resulting from the adminis-

trative decision, we completed the land-

fill restoration process.

In 2022, we also continued other reclamation projects. One of the

examples of ongoing reclamation is the project of restoring the

area of the post-production wastewater retention reservoir. Rec-

lamation is carried out with the use of processed sewage sludge

from the municipal biological sewage treatment plant. As a result

of the works carried out, a wooded retention zone is to be created

in the reclaimed area.

NON-FINANCIAL REPORT 2022

ciechgroup.com 54

LEGAL STATUS OF USING THE

ENVIRONMENT

Companies of the CIECH Group carry out their operations based

on current administrative permits and decisions regulating the

manner and the scope of environmental use. All CIECH Group

companies operating IPPC installations have obtained integrated

permits.

List of integrated permits held by the CIECH Group companies in 2022

Company

Permit for

Validity period

CIECH Soda Polska S.A. Production Plant in Ino-

wrocław

Integrated permit for installation to manufacture soda and soda

derived products.

Indefinite

CIECH Soda Polska S.A. Production Plant in

Janikowo

Integrated permit for installation to manufacture soda and soda

derived products.

Indefinite

CIECH Soda Polska S.A. Energy Plant in Inowro-

cław

Integrated permit for heat and power station‘s installation (4 OP-

110 boilers).

Indefinite

CIECH Soda Polska S.A. Energy Plant in Jani-

kowo

Integrated permit for heat and power station‘s installation (3 CKTI

boilers and 2 OP-140 boilers).

Indefinite

CIECH Soda Deutschland GmbH & Co. KG

Integrated permit for installations to manufacture light and dense

sodium carbonate, and sodium bicarbonate.

Indefinite

CIECH Energy Deutschland GmbH

Integrated permit for the installation of a combined heat and

power plant.

Indefinite

CIECH Soda Romania S.A.

Integrated permit for installation to manufacture sodium car-

bonate.

11.09.2023

CIECH Sarzyna S.A.

Integrated permit for installations to manufacture crop protec-

tion products (MCPA i MCPP and esters from the esterification of

phenoxyacids.

Indefinite

CIECH Vitrosilicon S.A. Plant in Żary

Integrated permit for installations to manufacture sodium silicate

glass and potassium silicate glass.

Indefinite

CIECH Vitrosilicon S.A. Plant in Iłowa (CIECH Vi-

tro Sp. z o.o.)

Integrated permit for installations to manufacture water solution

of sodium and potassium silicates (water glass), glass packaging

and solid sodium silicate (glassy sodium silicate)

Indefinite

CIECH Pianki Sp. z o.o.

Integrated permit for installations to manufacture PUR foams.

Indefinite

NON-FINANCIAL REPORT 2022

ciechgroup.com 55

CIECH GROUP’S OP-

ERATIONS IN THE

CONTEXT OF EU

TAXONOMY

ABOUT THE EUROPEAN UNION TAXON-

OMY

The CIECH Group is an entity subject to the obligation to disclose

non-financial data and in accordance with the Non-Financial Re-

porting Directive (NFRD) it is subject to Regulation (EU) 2020/852

of the European Parliament and of the Council of 18 June 2020 on

establishing a framework to facilitate sustainable investment,

along with applicable delegated acts supplementing the content

of the regulation. The above regulation, hereinafter referred to as

the taxonomy of the European Union (EU) or the taxonomy, trans-

lates environmental objectives into technical screening criteria

(TSC) allowing to determine whether a given activity is environ-

mentally sustainable (in accordance with the taxonomy).

The EU taxonomy is a classification sys-

tem that defines technical classification

criteria for six environmental objectives

that determine whether an activity is en-

vironmentally sustainable.

NON-FINANCIAL REPORT 2022

ciechgroup.com 56

THE EUROPEAN UNION TAXONOMY IS BUILT AROUND SIX

ENVIRONMENTAL OBJECTIVES:

Climate change mitigation

Climate change adaptation

Sustainable use and protection of wa-

ter and marine resources

Transition to a circular economy

Pollution prevention and control

Protection and restoration of biodiver-

sity and ecosystems

The overarching goal of the EU taxonomy is to create a more sus-

tainable financing system by channeling direct investment to-

wards environmentally sustainable projects. The idea behind the

taxonomy regulation is to include ESG aspects in investment de-

cisions and, as a result, finance sustainable development. The EU

taxonomy defines the concept of environmentally sustainable ac-

tivity based on six environmental goals that support the imple-

mentation of the European Green Deal policy and the goals of the

Paris Agreement. Thanks to international standardisation, the

taxonomy protects companies and investors against the phenom-

enon of “greenwashing”.

This report presents information on key performance indicators,

i.e. revenues (Turnover KPIs), capital expenditures (CAPEX KPIs)

and operating expenses (OPEX KPIs) broken down into activities

eligible for the taxonomy and other activities not covered by the

taxonomy as at the date of publication of this report. In the fol-

lowing, we present for the first time a taxonomic disclosure in-

cluding verifications of each of the identified activities in terms of

compliance with the taxonomy.

IDENTIFICATION OF ACTIVITY

Due to the development of the taxonomy and the publication of

new delegated acts, the entire activity of the CIECH Group was

reviewed again in terms of identifying those activities that were

covered by the taxonomy at the time of preparing the report. The

analysis was carried out based on:

• Regulations 2021/2139 and 2022/1214 containing a list of

activities covered by the taxonomy along with their descrip-

tions,

• the statistical classification of economic activities in the Eu-

ropean Community, abbreviated as NACE, and the codes

that have been indicated as related in the descriptions of in-

dividual activities,

• dedicated Taxonomy Compass tool developed by the Euro-

pean Commission,

• technical qualification criteria for individual activities cov-

ered by the taxonomy.

As a result of an in-depth analysis, the last year's approach was

revised and three activities eligible for the taxonomy were identi-

fied, as presented in the table below.

Activities eligible for the so-called European Union taxonomy

Sector

Code

Activity

Description of activity

Industry

3.12.

Manufacture of

soda ash

Manufacture of sodium

carbonate, i.e. light and

dense soda ash.

Energy

4.31.

High-efficiency

co-generation of

heat/cool and

power from fos-

sil gaseous fuels

Production of heat and

electricity in cogenera-

tion in a gas-fired CHP

plant.

Transport

6.2.

Freight rail

transport

Domestic freight rail

transport.

The list of activities of significant importance in the context of the

first two environmental goals, i.e. "Climate change mitigation"

and "Climate change adaptation", includes the CIECH Group's

core activity - manufacture of soda ash (sodium carbonate). Ac-

tivities related to the production and sale of soda ash and related

products are described in more detail in the section "Our prod-

ucts".

Another identified activity is "high-efficiency co-generation of

heat/cool and power from fossil gaseous fuels". In one of the heat

and power plants owned by the CIECH Group, the basic fuel is nat-

ural gas. The gas-fired CHP plant is located in the vicinity of the

soda production plant in Stassfurt, Germany. Heat and electricity

(power) are produced there in the co-generation process. The

vast majority of the heat and electricity produced is used within

the CIECH Group for the manufacturing process of soda products.

A small part of the electricity produced is sold to third parties.

NON-FINANCIAL REPORT 2022

ciechgroup.com 57

The activity of freight rail transport was also identified, which the

CIECH Group conducts primarily for the needs of supporting the

Soda segment with a small share of services provided to third par-

ties.

Based on the analysis of the technical screening criteria, it was

decided that the description of the activity "installation, mainte-

nance and repair of energy efficiency equipment" is inappropriate

to the activity conducted by the Group. This activity was pre-

sented in the first taxonomic disclosure for 2021 under simplified

reporting. Starting from this report, the presentation of the activ-

ity "installation, maintenance and repair of energy efficiency

equipment" in the taxonomic disclosure will not be continued.

Bearing in mind the ongoing work on the taxonomy and technical

screening criteria for other environmental goals, we take into ac-

count that the list of activities identified in the CIECH Group cov-

ered by the taxonomy, as well as the scope of reporting, may

change.

ALLOCATION OF FINANCIAL VALUES

According to the regulations in force as at the date of publication

of the report and defining the key activities for the first two envi-

ronmental goals "Climate change mitigation" and "Climate

change adaptation", the share of activities eligible for the taxon-

omy in 2022 was more than half in total revenues (Turnover KPIs),

capital expenditures (CAPEX KPIs) and operating expenses (OPEX

KPIs) of the CIECH Group.

Turnover KPIs

PLN 5.4 billion

CAPEX KPIs

PLN 431.4 million

OPEX KPIs

PLN 229.3 million

For each of the identified activities, the appropriate value of rev-

enues, capital expenditures and operating expenses was assigned

in accordance with the accounting policy described in the "Con-

textual and methodological information" section. Detailed data

for each of the identified activities are presented in the manda-

tory tables which can be found on pages from 60 to 62.

The published information on allocated financial values for taxon-

omy eligible activities is based on our best interpretation of the

European Union Taxonomy Reporting Regulations.

Activities

eligible for the

taxonomy;

56%

Activities non-

eligible for the

taxonomy;

44%

Activities

eligible for the

taxonomy;

57%

Activities non-

eligible for the

taxonomy;

43%

Activities eligible

for the taxonomy;

60%

Activities non-

eligible for the

taxonomy;

40%

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ciechgroup.com 58

TAXONOMY CONFORMITY ASSESSMENT

In accordance with the schedule set out in Regulation 2021/2139,

in its report for the financial year 2022, the CIECH Group is re-

quired to publish a full taxonomic disclosure for the first time. The

key element of full reporting is the assessment according to tech-

nical qualification criteria defining environmentally sustainable

activities (in accordance with the taxonomy). Verification of com-

pliance with the technical screening criteria (TSC) was carried out

for each of the identified activities and consisted in analysing the

criteria for a significant contribution to the first two environmen-

tal objectives ("Climate change mitigation" and "Climate change

adaptation") and the criteria regarding the principles of no signif-

icant harm and meeting minimum safeguards. Based on the as-

sessment, the activity "High-efficiency co-generation of heat/cool

and power from fossil gaseous fuels" was recognised as aligned

with the taxonomy, i.e. environmentally sustainable.

Turnover KPIs

PLN 5.4 billion

CAPEX KPIs

PLN 431.4 million

OPEX KPIs

PLN 229.3 million

MINIMUM SAFEGUARDS

For the CIECH Group, an assessment was carried out in terms of

meeting the minimum safeguards, which are defined by Regula-

tion 2020/852 as “procedures implemented by an undertaking

that is carrying out an economic activity to ensure the alignment

with the OECD Guidelines for Multinational Enterprises and the

UN Guiding Principles on Business and Human Rights, including

the principles and rights set out in the eight fundamental conven-

tions identified in the Declaration of the International Labour Or-

ganisation on Fundamental Principles and Rights at Work and the

International Bill of Human Rights. Compliance with the Minimum

Safeguards was tested in accordance with the recommendations

included in the Final Report on Minimum Safeguards by Platform

On Sustainable Finance.

The CIECH Group meets the requirements of minimum safe-

guards, i.e. it operates in accordance with the Organisation for

Economic Cooperation and Development (OECD) guidelines for

multinational enterprises and the United Nations (UN) Guiding

Principles on Business and Human Rights. The CIECH Group has in

place and applies solutions and procedures that ensure:

PROTECTION OF FUNDAMENTAL HUMAN RIGHTS, WORKPLACE

RIGHTS AND CONSUMER RIGHTS

• We support and promote freedom of association within our

Group and in relations with the market environment. Ten

trade union organisations operate within the CIECH Group,

associating approx. 36% of employees.

• We have introduced and apply internal regulations ensuring

the protection of human rights and rights in the workplace,

which include, among others: the Code of Conduct of the

CIECH Group, the Procedure for Counteracting Mobbing and

Discrimination in the Work Environment in the CIECH Group,

the Occupational Health and Safety Policy of the CIECH

Group.

• We have introduced the Code of the Business Partner of the

CIECH Group and we verify suppliers in the KYC procedure in

Activities aligned

with the taxonomy;

Activities eligible for

the taxonomy but

environmentally

unsustainable;

49%

Activities non-

eligible for the

taxonomy;

44%

Activities aligned with

the taxonomy;

Activities eligible for

the taxonomy but

environmental-ly

unsustainable;

57%

Activities non-

eligible for the

taxonomy;

43%

Activities

aligned with

the taxonomy;

Activities eligible for

the taxonomy but

environmentally

unsustainable;

57%

Activities non-

eligible for the

taxonomy;

40%

NON-FINANCIAL REPORT 2022

ciechgroup.com 59

order to check whether they conduct their activities in ac-

cordance with the Code standards in terms of human rights,

environmental protection and ethics.

• We are a signatory of the Declaration of Adoption of the

Standard of the United Nations Ethics Programme. We re-

spect internationally recognised human rights and labour

standards. We support the elimination of all forms of slav-

ery, forced labour, child labour and the actual abolition of

juvenile labour.

• Neither the CIECH Group nor any of the Group's companies

have been recognised as an entity violating human or labour

rights.

COUNTERACTING CORRUPTION AND BRIBERY

• We clearly and consistently apply a zero-tolerance policy to

any fraud and corruption. The CIECH Group applies the Anti-

corruption and anti-fraud policy of the CIECH Group. The

process of counteracting fraud and corruption consists in

complying with the requirements of the policy by all employ-

ees, regardless of the type of employment contract and po-

sition held, as well as by other stakeholders.

• The Group's counterparties are bound by the Code of the

Business Partner of the CIECH Group, which addresses the

issues of zero tolerance for abuse and corruption as well as

honesty in commercial operations.

• None of the Group's companies or executives have been

convicted of corruption.

COMPLIANCE WITH APPLICABLE FAIR COMPETITION LAWS AND

REGULATIONS

• Effective and fair competition is our foundation. Compliance

with the rules of fair competition enables us to exert a posi-

tive impact on the economy and the quality of economic

turnover, and to offer our customers the highest quality

products while achieving the set business goals.

• We promote awareness of compliance with the provisions of

the Competition Law by introducing the Code of Conduct of

the CIECH Group and the Policy of Compliance with Compe-

tition Law in the CIECH Group.

• Neither the CIECH Group nor any of its executives have been

convicted of violating competition law.

COMPLIANCE WITH TAX REGULATIONS AND PROPER TAX RISK

MANAGEMENT

• In its operations, both on the local and international mar-

kets, the CIECH Group is guided by the principles of honesty

and due diligence in the area of taxes. The CIECH Group ap-

plies a tax strategy, which is a set of rules that we follow in

relation to tax burdens. Compliance with them is aimed at

ensuring effective and consistent management of the tax or-

der, tax risk, human resources and organisation in the scope

of the tax function, tax documentation and data, as well as

IT systems supporting the operation of individual areas.

• The priority in the scope of tax settlements of the CIECH

Group is given to tax security, understood as minimising the

risk of tax arrears and the risk of sanctions based on special

provisions. In order to ensure tax security, the CIECH Group

applies tax risk management procedures.

• In 2022, the tax authorities did not find any violations of tax

law standards (other than those related to the interpretation

of laws) against any member of the CIECH Group, including

in particular failure to comply with obligations imposed by

law or tax evasion. The CIECH Group attaches great im-

portance to the timely and compliant fulfilment of tax obli-

gations. Despite this, the interpretation of certain tax regu-

lations by the CIECH Group may differ from the position pre-

sented by the tax authorities, which in turn may lead to a

dispute with the tax authority. The current reports of the

CIECH Group for 2022 contain detailed information on judg-

ments and decisions issued against the CIECH Group. These

judgments were issued in 2022, however, they concern set-

tlements for earlier periods. On the other hand, the periodic

reports of the CIECH Group for 2022 contain information on

pending tax proceedings, i.e. opened and not completed in

2022.

For more information go to the Corporate Governance (page 105)

section

NON-FINANCIAL REPORT 2022

ciechgroup.com 60

Turnover KPIs for the financial year 2022

Figures in PLN thousand

Condition I: Substantial Contribution

Condition II: Do no significant harm (DNSH)

Condi-

tion III:

Activity

Code

Absolute value of revenue

TURNOVER KPIs

Share in total revenue

Climate change mitigation

Climate change adaptation

Sustainable use and protection of

water and marine resources

Transition to a circular economy

Pollution prevention and control

Protection and restoration of bio-

diversity and ecosystems

Climate change mitigation

Climate change adaptation

Sustainable use and protection of

water and marine resources

Transition to a circular economy

Pollution prevention and control

Protection and restoration of bio-

diversity and ecosystems

Minimum social safeguards

Percentage share of

taxonomy

aligned turnover

year N

Percentage share of taxonomy

aligned turnover year N

-1

Enabling activity

Transition activity

TAXONOMY ELIGIBLE ACTIVITY

A.1.

Types of environmentally sustainable activi-

ties (in accordance with the taxonomy):

High-efficiency co-generation of heat/cool

and power from fossil gaseous fuels

4.31

378 940

100%

nd.

Total A.1. Turnover from activities eligible for the

taxonomy and environmentally sustainable

(aligned with the taxonomy)

378 940

A.2.

Types of environmentally unsustainable ac-

tivities (not aligned with the taxonomy):

Manufacure of soda ash

3.12.

2 626 919

49%

100%

nd.

Freight rail transport

6.2.

12 764

100%

nd.

Total A.2. Turnover from activities eligible for the

taxonomy but environmentally unsustainable (not

aligned with the taxonomy)

2 639 683

49%

Total A (A.1. + A.2.)

3 018 623

56%

TAXONOMY NON-ELIGIBLE ACTIVITY

Total B (Other taxonomy non-eligible activities)

2 396 836

44%

Total A+B

5 415 459

100%

NON-FINANCIAL REPORT 2022

ciechgroup.com 61

CAPEX KPIs for the financial year 2022

Figures in PLN thousand

Condition I: Substantial Contribution

Condition II: Do no significant harm (DNSH)

Condi-

tion III:

Activity

Code

Capital expenditures in absolute

terms

CAPEX KPIs

Percentage share of capital ex-

penditures

Climate change mitigation

Climate change adaptation

Sustainable use and protection of

water and

marine resources

Transition to a circular economy

Pollution prevention and control

Protection and restoration of bio-

diversity and ecosystems

Climate change mitigation

Climate change adaptation

Sustainable use and protection of

water and marine resources

Transition to a circular economy

Pollution prevention and control

Protection and restoration of bio-

diversity and ecosystems

Minimum social safeguards

Percentage share of taxonomy

aligned capital expenditures

year N

Percentage share of taxonomy

aligned capita

l expenditures

year N-1

Enabling activity

Transition activity

TAXONOMY ELIGIBLE ACTIVITY

A.1

Types of environmentally sustainable activities (in ac-

cordance with the taxonomy):

High-efficiency co-generation of heat/cool and

power from fossil gaseous fuels

4.31

100%

nd.

Total A.1. Turnover from activities eligible for the taxon-

omy and environmentally sustainable (aligned with the

taxonomy)

A.2

Types of environmentally unsustainable activities

(not aligned with the taxonomy):

Manufacure of soda ash

3.12.

217 777

50%

100%

nd.

Freight rail transport

6.2.

30 065

100%

nd.

Total A.2. Turnover from activities eligible for the taxon-

omy but environmentally unsustainable (not aligned with

the taxonomy)

247 842

57%

Total A (A.1. + A.2.)

247 842

57%

TAXONOMY NON-ELIGIBLE ACTIVITY

Total B (Other taxonomy non-eligible activities)

183 589

43%

Total A+B

431 431

100%

NON-FINANCIAL REPORT 2022

ciechgroup.com 62

OPEX KPIs for the financial year 2022

Figures in PLN thousand

Condition I: Substantial Contribution

Condition II: Do no significant harm (DNSH)

Condition

III:

Activity

Code

"Operating expenses" in absolute

terms

OPEX KPIs

Percentage share of "operating ex-

penses"

Climate change mitigation

Climate change adaptation

Sustainable use and protection of

water and

marine resources

Transition to a circular economy

Pollution prevention and control

Protection and restoration of bio-

diversity and ecosystems

Climate change mitigation

Climate change adaptation

Sustainable use and protection of

water and marine resources

Transition to a circular economy

Pollution prevention and control

Protection and restoration of bio-

diversity and ecosystems

Minimum social safeguards

Percentage share of taxonomy

aligned "operating expenses"

year N

Percentage share of taxonomy

aligned "opera

ting expenses"

year N-1

Enabling activity

Transition activity

TAXONOMY ELIGIBLE ACTIVITY

A.1.

Types of environmentally sustainable activities

(in accordance with the taxonomy):

High-efficiency co-generation of heat/cool and

power from fossil gaseous fuels

4.31

7 465

100%

nd.

Total A.1. Turnover from activities eligible for the taxon-

omy and environmentally sustainable (aligned with the

taxonomy)

7 465

A.2.

Types of environmentally unsustainable activities

(not aligned with the taxonomy):

Manufacure of soda ash

3.12.

123 971

54%

100%

nd.

Freight rail transport

6.2.

5 677

100%

nd.

Total A.2. Turnover from activities eligible for the taxon-

omy but environmentally unsustainable (not aligned

with the taxonomy)

129 648

57%

Total A (A.1. + A.2.)

137 112

60%

TAXONOMY NON-ELIGIBLE ACTIVITY

Total B (Other taxonomy non-eligible activities)

92 200

40%

Total A+B

229 312

100%

NON-FINANCIAL REPORT 2022

ciechgroup.com 63

Nuclear energy or natural gas related activities

Nuclear energy related activities

The undertaking researches, develops, demonstrates and deploys, finances or is exposed to innovative electricity installations gener-

ating energy through nuclear processes with minimal waste from the fuel cycle.

The undertaking builds and safely operates, finances or is exposed to new nuclear facilities to generate electricity or process heat,

including for district heating or industrial processes such as hydrogen production, and modernises them in terms of safety, using the

best available technologies.

The undertaking safely operates, finances or is exposed to existing nuclear facilities that generate electricity or process heat, including

for district heating or industrial processes such as hydrogen production from nuclear energy, and modernises them in terms of safety.

Natural gas related activities

The undertaking builds or operates, finances or is exposed to an installation for the generation of electricity using gaseous fossil fuels.

The undertaking builds, modernises and operates, finances or is exposed to installations for the combined generation of heat/cooling

energy and electricity using gaseous fossil fuels.

The undertaking builds, modernises and operates, finances or is exposed to installations heat generation installations producing

heat/cooling energy using gaseous fossil fuels.

CONTEXTUAL INFORMATION

MANUFACTURE OF SODA ASH

As part of the activity 3.12. Manufacture of soda ash, we identi-

fied the production activity of light and dense soda ash carried

out in two companies - CIECH Soda Polska and CIECH Soda

Deutschland. In the Turnover, CAPEX and OPEX KPI counters, we

did not include values directly related to products other than light

and dense soda ash. Where necessary, the disaggregation of op-

erating expenses related to installations for the production of

soda and salt was based on an analysis of the production process,

and the distribution keys used reflect the technical specificity of

this process. The costs related to materials for repairs and reno-

vations and the costs of personnel assigned to the maintenance

function were divided according to the key of expenditure on re-

pair services. In other cases, we used a division based on the vol-

ume structure of production.

For the activity 3.12. Manufacture of soda ash, technical screen-

ing criteria were verified. According to the analysis:

• for the environmental objective "Climate change adapta-

tion", the criterion of a significant contribution was met,

• at the same time, the activity does not meet two of the cri-

teria related to the principle of no significant harm verified

for other environmental purposes.

Thus, the financial indicators assigned to this activity qualify for

the taxonomy, but are not consistent with it. The criteria that

were assessed negatively concern emission levels according to

the best available techniques (BAT) and the level of the CO

emis-

sion index indicated in the criteria. When verifying the activity of

sodium carbonate production in terms of the CO

emissivity cri-

terion, CO

emissions from the combustion of carbonate raw ma-

terials in the production process, as well as CO

emissions gener-

ated in the process of producing energy used subsequently for the

production of soda, were used in the calculations. The Group's

current strategy for 2022-2024 assumes measures aimed at re-

ducing CO

emissions related to the production of soda and en-

ergy.

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ciechgroup.com 64

HIGH-EFFICIENCY CO-GENERATION OF HEAT/COOL

AND POWER FROM FOSSIL GASEOUS FUELS

As part of the activity 4.31. High-efficiency co-generation of

heat/cool and power from fossil gaseous fuels, we identified the

activity carried out in the German CHP plant owned by CIECH En-

ergy Deutschland.

For the activity 4.31. High-efficiency co-generation of heat/cool

and power from fossil gaseous fuels, technical screening criteria

were verified. According to the analysis:

• for the environmental objective "Climate change adapta-

tion", the criterion of a significant contribution was met,

• at the same time, the activity meets all the criteria related to

the principle of no significant harm verified for other envi-

ronmental purposes.

Thus, the financial indicators assigned to this activity qualify and

are consistent with the taxonomy, i.e. sustainable environment.

FREIGHT RAIL TRANSPORT

As part of the activity 6.2. Freight rail transport, we identified do-

mestic rail transport services provided by CIECH Cargo. The Turn-

over, CAPEX and OPEX KPI counters include only values directly

related to rail transport means.

For the activity 6.2. Freight rail transport, technical screening cri-

teria were verified. According to the analysis:

• for the environmental objective "Climate change adapta-

tion", the criterion of a significant contribution was met,

• at the same time, the activity does not meet two of the cri-

teria related to the principle of no significant harm verified

for other environmental purposes.

Accordingly, the financial indicators assigned to this activity qual-

ify for the taxonomy, but are not consistent with it. The criteria

that were assessed negatively relate to the level of the CO

emis-

sion index and the issue of transporting fossil fuels, which are

transported for the needs of the Soda segment. One of the long-

term goals of the CIECH Group in the ESG Strategy is to abandon

the production of energy from coal by 2033, and as a result, to

abandon rail transport of fossil fuels.

ACCOUNTING POLICY

The data presented in the disclosure comes from the financial and

accounting system of the CIECH Group and from the financial and

management reporting systems of the Group's subsidiaries. The

consolidation procedure excludes the risk of double counting for

total revenues, capital expenditures and operating expenses,

which are the reference values for calculating percentages. To cal-

culate the percentage of each activity's KPIs in the total reference

value, data was collected, were possible, directly from financial

systems. In cases where direct allocation to individual activities

was not possible, appropriate percentage distribution keys were

used and corresponding values were assigned. In addition, in or-

der to eliminate the risk of double counting, only capital expend-

itures and operating expenses directly related to each of the iden-

tified activities were taken into account when calculating costs for

individual activities.

The definition of turnover for the purposes of Regulation

2021/2178 includes revenue recognised in accordance with the

International Accounting Standard (IAS) 1 point 82 letter (a)

adopted by Commission Regulation (EC) 1126/2008, which corre-

sponds to the definition of net revenues from the sale of products

or services provided for the purposes of the financial statements

of the CIECH Group. Thus, the basis for calculating the Turnover

KPIs are the consolidated revenues from continued operations in

2022 disclosed in the item “Net revenues from sales for continued

operations” in the consolidated financial statements for 2022.

Disclosure of the Turnover KPIs was prepared on the basis of con-

solidated data. Therefore, for individual activities, revenues from

activities conducted for own consumption within the CIECH

Group are not identified.

The basis for the calculations of the CAPEX KPIs are the total cap-

ital expenditures of the CIECH Group, which, in accordance with

Regulation 2021/2178, include costs settled on the basis of:

• IAS 16 Property, plant and equipment, point 73 letter (e)

items (i) and (iii);

• IAS 38 Intangible Assets, point 118 letter (e) item (i);

• IAS 40 Investment Property, point 76 letters (a) and (b) (in

the case of a model based on the fair value);

• IAS 40 Investment Property, point 79 letter (d) items (i) and

(ii) (in the case of a model based on the purchase price or

production cost);

• IAS 41 Agriculture, point 50 letters (b) and (e);

• IFRS 16 Leases, point 53 letter (h).

In 2022, the CIECH Group did not incur any capital expenditures

resulting from mergers or acquisitions of external entities.

Capital expenditures are presented on an accrual basis.

Operating expenses for the calculation of the OPEX KPIs, within

the meaning of Regulation 2021/2178 are direct, uncapitalised

costs related to research and development, building renovation

activities, short-term leases, maintenance and repairs, and any

other direct internal and external expenses related to the ongoing

NON-FINANCIAL REPORT 2022

ciechgroup.com 65

handling of tangible fixed assets necessary to ensure the contin-

uous and effective operation of such assets. Based on the above

definition, the costs of the CIECH Group were analysed in terms

of their relevance for the EU taxonomy. Costs related to the op-

eration and maintenance of the CIECH Group's assets were iden-

tified and classified into four main categories:

• Costs of external services, including costs of repairs and ren-

ovations, cleaning costs, technical supervision, mainte-

nance, inspections, research and development expenses,

• Personnel costs related to the repair and maintenance of as-

sets,

• Costs of materials for repairs & renovations and consuma-

bles,

• Leases and short-term rentals.

The CIECH Group did not issue, either in 2022 or in previous years,

the so-called green bonds or debt securities to finance certain

identified activities covered by the taxonomy.

The presentation currency of the disclosure regarding the activi-

ties covered by the taxonomy is the Polish zloty in accordance

with the currency adopted for the consolidated financial state-

ments. The data has been presented in thousands of Polish zlotys

(PLN thousand), unless indicated otherwise.

NON-FINANCIAL REPORT 2022

ciechgroup.com 66

RISK

MANAGEMENT

The CIECH Group strives to achieve its

strategic objectives without taking exces-

sive risks.

To this end, the Group has implemented a risk management sys-

tem through which:

• we identify threats to the achievement of our objectives,

• we define proposed actions to minimise the threats and

their impact on the objectives set,

• in the case of risks that have not yet been identified, we are

able to properly identify and assess them.

The Risk Management System of the CIECH Group is an organised

set of general principles and guidelines, defining how the risks to

which we are exposed should be managed. The objective of the

system is to lay a foundation for introducing risk management

methods, procedures, requirements and reports required for

keeping risks at an acceptable level.

The risk management system operating within the CIECH Group

is continuously developed and improved. It is an important part

of supporting day-to-day operations. This process is aimed at the

ongoing identification and mitigation of risks and the introduction

of mechanisms through which any risks affecting the value of the

CIECH Group can be properly recognised, identified and appropri-

ately mitigated so that they have a limited or neutral impact on

the achievement of strategic objectives.

We define risk as an event, action or inaction that will prevent the

CIECH Group from achieving its goals. Therefore, the risk is per-

ceived negatively, because it means a threat to the achievement

of the set goals.

The CIECH Group's risk management system is based on the fol-

lowing key principles:

Risk management process

Risk Department

Director

Executive Commit-

tee

Executives/ Risk

owners

Employees

Management

Board of CIECH SA

Supervisory Board

/ Audit Committee

NON-FINANCIAL REPORT 2022

ciechgroup.com 67

• each manager and employee of an organisational unit of an

entity belonging to the CIECH Group (including CIECH, the

Group's segments and subsidiaries) is responsible for risk

management,

• risk management is a continuous process,

• the risk, the effects of which threaten people's health and

life, is unacceptable,

• risk cannot be fully eliminated, it is an integral part of con-

ducted activity.

The existing risk management process in the CIECH Group is a

comprehensive and corporate solution. It covers the Group's en-

tities, processes and projects, and applies to all employees of the

Group. This process is an instrument to support the Management

Board in its current operating activities, while the Supervisory

Board of CIECH S.A. uses it to monitor the effectiveness of internal

control and internal audit systems.

IN THE CIECH GROUP, RISK MANAGEMENT OBJECTIVES ARE

ACHIEVED BY:

• a systematic approach to identifying all types of risk,

• supporting the allocation of resources by setting priorities

for individual types of risk,

• selection and implementation of the best risk management

strategy,

• monitoring, risk analysis and reporting taking into account

all the potential effects of existing risks.

As part of the CIECH Group's risk management process, actions

are taken regularly and on an ongoing basis. Risk management is

carried out in a two-dimensional way - vertically and horizontally,

identifying the risk not only occurring within a given entity, organ-

isational unit or process, but also the risk whose materialisation

effects influence various areas of activity, entities and processes

from the point of view of the entire CIECH Group. Only such a

comprehensive approach and understanding of risk allows effec-

tive management of various types of risk and brings measurable

benefits to the Group.

In terms of responsibility for the risk management process, a spe-

cial role is played by the key participants in this process, which are

the Management Board of CIECH S.A., the Executive Committee,

the executive staff and the Risk Department Director. The correct-

ness and effectiveness of the implemented risk management sys-

tem is monitored by the Supervisory Board and the Audit Com-

mittee, e.g. based on information from the Management Board

of CIECH S.A. on current types of risks and adequate management

methods.

The risk management process in the CIECH Group has been de-

fined and implemented in accordance with the "International

Standard ISO 31000:2018 Risk Management".

By referring to the ISO 31000 standard, the risk management pro-

cess formally regulates the approach to risk identification, analy-

sis, assessment, management, monitoring and communication

activities in the CIECH Group.

The CIECH Group strives to be perceived by its stakeholders as a

transparent organisation with high awareness and understanding

of various types of risk that may affect the achievement of goals.

Hence the comprehensive approach to risk management, focused

on identifying events that may prevent the achievement of goals.

The functioning risk management process, as one of the elements

building the Group's value, focuses on the risk categories pre-

sented below, which are crucial from the point of view of achiev-

ing the Group's goals:

• risk related to the loss of human health and life,

• operational risk that may affect the continuity of production

processes,

• legal risk,

• compliance risk,

• regulatory risk,

• strategic risk related to the impact of the environment on

the CIECH Group,

COMMUNICATION AND CONSULTATIONS

MONITORING AND REVIEWING

Handling risks Evaluating risks Analysing risks Identifying risks

Defining the con-

text

Risk assessment

NON-FINANCIAL REPORT 2022

ciechgroup.com 68

• reputation risk,

• financial risk,

• risk related to environmental protection.

The CIECH Group does not limit itself to the above risk categories

only. We make every effort to identify and verify key business risk

areas on an ongoing basis and effectively reduce them through

the built and implemented risk management process.

In 2022, the assumptions and risk management process in the

CIECH Group remained the same as in the previous year. This en-

abled the Group, with unchanged assumptions and using the ex-

isting risk management tools, to update the risk definitions in pre-

vious periods and identify new ones that appeared during the

previous year. The most important factors that defined the CIECH

Group's risks in 2022 were the situation in Ukraine and the eco-

nomic situation in Europe resulting from the conflict (fluctuations

in the prices of raw materials and services, deterioration in the

availability of raw materials, inflation). Unlike in 2020-21, the

threat to the Group and its entities was not the COVID-19 pan-

demic and the risk of interrupting the operational continuity of

the Group's production plants.

From the point of view of the implementation of the strategic

goals of the CIECH Group, the key risks identified and described

in this part of the report affected the following areas:

• Sales,

• Purchases,

• Production,

• Employees,

• OHS,

• Finance,

• Strategy,

• Environmental protection,

• Regulatory and legal

The Risk Map below presents the most

important types of risk related to the cur-

rent functioning of the CIECH Group in

2022. A detailed description of the listed

risks is provided in Note 3.4. of the Re-

port of the Management Board on the

activities of the CIECH Group in 2022.

LIKELIHOOD

high

1, 2, 5, 8, 21

medium

3, 4, 7, 11, 14, 19, 23, 24, 25

6, 10, 16, 18

low

12, 13, 15

9, 17

low

medium

high

EFFECTS

1 Risk of instability and fluctuations of prices of raw ma-

terials, materials, utilities, services

2 Risk of disrupting the availability of key raw materials

3 Risk of a decrease in sales volume and revenues

4 Risk of price instability and availability of products of-

fered by the Group

5 Risk of uncertainty and deterioration of the economic

situation on the domestic and international markets

6 Risk related to customers not accepting higher prices of

the Group's products

7 Risk of failure and unplanned downtime

8 Risk related to difficulties in reaching full production ca-

pacity by the new salt plant in Stassfurt

9 Occupational health and safety risk

10 Risk of inability to implement the strategy

11 Risk related to cyber attacks

12 Risk related to debt financing

13 Risk of inability to service existing debt and maintain

liquidity

14 Interest rate risk

15 Credit risk

16 Risk of financing through factoring

17 Risk related to underinsurance of the assets of the

Group's companies

18 Risk related to tax settlements

19 Risk of changes in laws and regulations

20 Risk related to court proceedings or other out-of-

court proceedings

21 Risk related to the need to achieve the goals of the

CIECH Group's ESG strategy and EU climate policy

22 Risk of tightening regulations related to the use of

the environment

23 The risk of permanent climate change affecting the

demand for the CIECH Group's products

24 Risk of changes in regulations and provisions regard-

ing the possibility of using specific active substances

and PPPs

25 Risk related to oversupply of cereals on the domestic

market and limitation of cereal production on the do-

mestic market

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RISKS RELATED TO CLIMATE CHANGES

In our climate change risk analysis, we followed the recommen-

dations and concept outlined by the Task Force on Climate-re-

lated Financial Disclosures (TCFD). According to the TCFD meth-

odology, risks related to climate change are divided into:

RISKS RELATED TO CHANGES AIMED AT CREATING A LOW-CAR-

BON ECONOMY:

• political and legal risk - related to, among others, regulatory

actions aimed at halting climate change and promoting ad-

aptation to these changes. This category also includes risks

related to possible liability (litigation),

• technological risk - related to technical and technological ad-

vancements and innovations supporting the transformation

of the economy into a low-emission and energy-efficient

economy,

• market risk - including, for example, changes in demand and

supply for certain raw materials, products and services in

connection with the increasing consideration by market par-

ticipants of risks and opportunities related to climate

change,

• reputation risk - related to changes in the perception of the

company by its stakeholders as a result of its activities sup-

porting or delaying the transformation towards a low-emis-

sion economy.

RISKS RELATED TO THE ACTUAL PHYSICAL IMPACT OF CLIMATE

CHANGE:

• sudden - related to events or phenomena resulting from cli-

mate change, in particular, sudden weather phenomena

(e.g. hurricanes, floods, droughts, etc.),

• chronic – related to long-term, gradual changes in climatic

conditions, e.g. average temperature, surface and under-

ground water levels, etc.

The concept of describing the impact of climate change on busi-

nesses also classifies the opportunities that arise during the trans-

formation of the economy into a low-emission economy and as a

result of the use of emerging innovations:

• efficiency in the use of raw materials,

• use of new sources and methods of electricity and heat gen-

eration,

• new products and services,

• emergence of new markets, including new segments in fi-

nancial markets,

• increased resilience.

In 2022, we mapped operational risks identified by us in the CIECH

Group with the TCFD concept, taking into account their financial

impact on our operations. According to the TCFD methodology,

the potential financial impact of risks may relate to:

• revenues,

• costs and expenses,

• assets - the amount of investment outlays,

• assets - value of fixed assets,

• assets - value of intangible assets,

• liabilities,

• financing (including the cost of capital and access to finance).

A map showing the CIECH Group's operational risks in the classi-

fication adopted by the TCFD is shown below.

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ciechgroup.com 70

Potential financial impact

Risk

Effects

Likeli-

hood

Risk

Level

RISKS RELATED TO TRANSFORMATION

Political and legal

Assets - capital expenditures, Assets - value

of fixed assets

8. Risk related to difficulties in reaching full production capacity

by the new salt plant in Stassfurt

Medium

High

Costs and expenses

18. Risk related to tax settlements

High

Medium

High

Revenue, Financing

10. Risk of inability to implement the strategy

High

Medium

High

Revenue

23. Risk of permanent climate change affecting the demand for

the CIECH Group's products

Medium

Revenues, Assets - capital expenditures, As-

sets - value of intangible assets

24. Risk of changes in laws and regulations regarding the possibil-

ity of using specific active substances and PPPs

Medium

Costs and expenses, Assets - capital expend-

itures, Assets - value of fixed assets

22. Risk of tightening regulations related to the use of the envi-

ronment

High

Revenues, Assets - capital expenditures, Fi-

nancing

21. Risk related to the need to achieve the objectives of the CIECH

Group's ESG strategy and EU climate policy

Medium

High

Liabilities

19. Risk of changes in laws and regulations

Medium

Assets - capital expenditures, Assets - value

of fixed assets

17. Risk related to underinsurance of the assets of the Group

companies

High

Low

Medium

Technological

Revenues, costs and expenses

1. The risk of instability and fluctuations in the prices of raw mate-

rials, materials, utilities and services

Medium

High

Revenues, costs and expenses

2. The risk of disrupting the availability of key raw materials

Medium

High

Assets - capital expenditures, Assets - value

of fixed assets

8. Risk related to difficulties in reaching full production capacity

by the new salt plant in Stassfurt

Medium

High

Costs and expenses, Assets - capital expend-

itures

7. Risk of failures and unplanned downtimes

High

Medium

High

Costs and expenses, Assets - capital expend-

itures, Assets - value of fixed assets

22. Risk of tightening regulations related to the use of the envi-

ronment

High

Revenues, Assets - capital expenditures, Fi-

nancing

21. Risk related to the need to achieve the objectives of the CIECH

Group's ESG strategy and EU climate policy

Medium

High

RISKS RELATED TO TRANSFORMATION

Market

Revenues, Costs and expenses

1. The risk of instability and fluctuations in the prices of raw mate-

rials, materials, utilities and services

Medium

High

Revenues, Costs and expenses

2. The risk of disrupting the availability of key raw materials

Medium

High

Revenues

4. Risk of price instability and availability of products offered by

the Group

Medium

Revenues

3. Risk of a decrease in sales volume and revenues

Medium

Revenues

5. The risk of uncertainty and deterioration of the economic situa-

tion on the domestic and international markets

Medium

High

Revenues

6. Risk related to customers not accepting higher prices of the

Group’s products

High

Medium

High

Assets - capital expenditures, Assets - value

of fixed assets

8. Risk related to difficulties in reaching full production capacity

by the new salt plant in Stassfurt

Medium

High

Assets - capital expenditures, Assets - value

of fixed assets

17. Risk related to underinsurance of the assets of the Group

companies

High

Low

Medium

Financing

12. Risk related to debt financing

Medium

Low

Financing

13. Risk of inability to service existing debt and maintain liquidity

Low

Liabilities, Financing

14. Interest rate risk

Medium

Revenues, Assets - capital expenditures, As-

sets - value of intangible assets

24. Risk of changes in laws and regulations regarding the possibil-

ity of using specific active substances and PPPs

Medium

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ciechgroup.com 71

Potential financial impact

Risk

Effects

Likeli-

hood

Risk

Level

Revenues, Assets - capital expenditures, Fi-

nancing

21. Risk related to the need to achieve the objectives of the CIECH

Group's ESG strategy and EU climate policy

Medium

High

Reputation

Revenues

4. Risk of price instability and availability of products offered by

the Group

Medium

Financing

13. Risk of inability to service existing debt and maintain liquidity

Low

Revenues, Financing

10. Risk of inability to implement the strategy

High

Medium

High

Costs and expenses, Assets - capital expend-

itures, Assets - value of fixed assets

22. Risk of tightening regulations related to the use of the envi-

ronment

High

Revenues, Assets - capital expenditures, Fi-

nancing

21. Risk related to the need to achieve the objectives of the CIECH

Group's ESG strategy and EU climate policy

Medium

High

PHYSICAL RISKS

Sudden

Revenues, Costs and expenses

2. The risk of disrupting the availability of key raw materials

Medium

High

Revenues

4. Risk of price instability and availability of products offered by

the Group

Medium

Costs and expenses, Assets - capital expend-

itures

7. Risk of failures and unplanned downtimes

Medium

Assets - value of fixed assets

17. Risk related to underinsurance of the assets of the Group

companies

High

Low

Medium

Chronic

Revenues, Costs and expenses

1. The risk of instability and fluctuations in the prices of raw mate-

rials, materials, utilities and services

Medium

High

Revenues

5. The risk of uncertainty and deterioration of the economic situa-

tion on the domestic and international markets

Medium

High

Revenues, Financing

10. Risk of inability to implement the strategy

High

Medium

High

Revenues

23. Risk of permanent climate change affecting the demand for

the CIECH Group's products

Medium

Revenues, Assets - capital expenditures, As-

sets - value of intangible assets

24. Risk of changes in laws and regulations regarding the possibil-

ity of using specific active substances and PPPs

Medium

Costs and expenses, Assets - capital expend-

itures, Assets - value of fixed assets

22. Risk of tightening regulations related to the use of the envi-

ronment

High

Revenues, Assets - capital expenditures, Fi-

nancing

21. Risk related to the need to achieve the objectives of the CIECH

Group's ESG strategy and EU climate policy

Medium

High

Liabilities

19. Risk of changes in laws and regulations

Medium

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ciechgroup.com 72

OUR EMPLOYEES

AND ASSOCIATES

EMPLOYEE ENGAGEMENT,

CORPORATE CULTURE AND EM-

PLOYEE RELATIONS

3 512 employees

+ 773 new employees

Gander Pay Gap Ratio (GPGR)

LOWER BY 1,7 PP. Y/Y

77% men

23% women

57%

10%

21%

Soda segment

Agro segment

Foams segment

Silicates segment

Packaging segment

Other segment and corporate

functions

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ciechgroup.com 73

ZdrowiejMY Programme

We build a wellbeing culture based on a number of initia-

tives related to movement and physical activity, preventive

health care and psychoeducation.

Purchasing Academy

We have launched an annual programme of training and

workshops for employees engaged in the area of purchas-

ing in the CIECH Group. In 2022, the programme covered

55 people.

ABCD model

Covering all Polish companies with the operational em-

ployee skill and development system thanks to the imple-

mentation of the model in the Packaging and in the Other

segments.

Lider & LiderGO Programmes

350 & 45 participants

More than 100 training hours

In order to respond to the needs of all Managers in our or-

ganisation, we have created three development pro-

grammes: Lider Programme, which includes dedicated pro-

grammes for team leaders and production leaders, and

LiderGO Programme - dedicated to top management.

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The goal of the CIECH Group is to build high employee involve-

ment and ensure the success of its business strategy. By combin-

ing the Remuneration and Employee Development Policy with the

Performance Management System, we are able to address our

goals even more effectively. We want the so-called winning cul-

ture, i.e. organisational culture in which we strive to be successful

together, to enter our bloodstream, and the potential that lies

dormant in employees could be fully used. The attractiveness of

our brand as a potential employer enables us to conduct effective

internal and external communication, allowing us to attract the

attention of the best candidates for the jobs we offer.

These elements are part of an integrated

system that enables us to strengthen and

integrate our organisation.

In the ESG strategy, the theme of human resources management

is one of the key areas. Our ambition is to create the best place

for the development of our employees' talents based on diverse

teams and a system of rewarding for the achievement of set

goals. We believe that diverse teams achieve better results, so at-

tracting more women and giving them the opportunity to fulfil

their full professional potential is a priority for us. We implement

measures with a view to leading to a natural increase in the share

of women in managerial positions. In 2022, we carried out a num-

ber of activities aimed at achieving our goals contained in the ESG

strategy and presented below - more information on their imple-

mentation can be found on page 29.

BUSINESS STRATEGY AND STRATEGIC GOALS OF

THE CIECH GROUP

PERFORMANCE MANAGEMENT SYSTEM

REMUNERATION AND DEVELOPMENT POLICY

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VALUES AND COMPETENCE MODEL AND BUILDING AN ORGAN-

ISATIONAL CULTURE BASED ON THEM

An integrating organisational culture that supports business ac-

tivities is one of the pillars of the CIECH Group's strategy. To sup-

port the process of building it, we have created a comprehensive

action plan for the entire organisation. We began with the first

stage in 2020, with workshops, during which, together with the

top management, we developed a list of values that fit into the

Group's business strategy and reflect the identity of our organisa-

tion. On this basis, we have constructed a model of competencies

necessary to implement and strengthen our values at all levels of

the company. We consistently build the processes of the CIECH

Group around the developed values and competences that have

become an integral part of the Code of Conduct, recruitment pro-

cesses, onboarding, performance management and development

programmes.

The values, skills and behaviours necessary to implement the

strategy were the basis for developing a competency model,

which was then adapted to the role that a specific person plays

within the organisation, i.e. employee and managerial positions

requiring team management competencies.

Our organisational culture is the subject of regular meetings of

the Management Board with dedicated teams of employees. In

addition, selected managers are responsible for the promotion of

individual values, giving an example of their application in prac-

tice. In this way, each employee has a chance to see how to im-

plement values in specific activities that they perform on a daily

basis at work.

More women in middle and senior

management

We provide fair access to employ-

ment and career development oppor-

tunities.

Goal: 35% in 2030

Elimination of differences in the level

of remuneration of women and men

The level of specialists, experts, mid-

dle managers.

Goal: reduce the gap by 50% by

2025, completely eliminate the

gap by 2030

Building a culture of rewarding for

achievements

Goal: implement individual

goals or skill matrices for all

employees by 2023

Building leadership culture and skills

Goal: include leadership assess-

ment in the evaluation of all

people managers by 2023 and

implement individual succes-

sion plans by 2024

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INTEGRATED PERFORMANCE MANAGEMENT SYSTEM

In accordance with one of the key values of our organisation,

which is Development, and as part of the new strategy for 2022-

2024, in which the HR area is one of the priority elements, in 2022

a project to revise the performance management system was car-

ried out.

Performance Management is one of the tools we use to build an

engaging work environment and organisational culture based on

performance management. The system is based on setting goals

that clearly result from the business strategy and serve its opera-

tionalisation. Performance Management is a continuous dialogue

between an employee and a manager about how to translate

business priorities into individual goals, maximise the chances of

achieving them, and how we define the expected final result. Af-

ter implementing the system and getting to know its specifics, we

noticed the possibility of better matching the system to the needs

of the organisation. In 2022, we decided to review and improve

the system.

As a result of the project and close coop-

eration with business units, new rules,

criteria and indicators were developed,

which enabled the revised system to be

more flexible, transparent and respond

to the business needs of the organisa-

tion. Changes made to the system in-

clude: reducing and unifying the number

of bonus groups, adding mandatory

Health & Safety indicators and introduc-

ing an operational efficiency indicator.

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SUCCESS FACTORS SYSTEM IMPLEMENTATION

Improving the efficiency of HR processes and their digitisation is

a challenge faced by all departments of the company. In the CIECH

Group, we focused on the implementation of the Success Factors

system, whose modules for managing Performance Management

as well as employee training and development significantly con-

tributed to improving efficiency, automating and reducing man-

ual work in the organisation.

The first module for managing the Performance Management

process, implemented at the beginning of 2022, made it possible

to move away from manual work on excel sheets, saving the time

needed to manage the process and eliminating the risk of errors.

Supervisors have easy and quick access to their team's goals, they

can cascade a goal with one click or create a group goal for all

team members.

After the successful implementation of the first module, we de-

cided to increase the effectiveness of another key process in

CIECH, which is the management of employee training and devel-

opment. Modules devoted to succession management and em-

ployee potential perfectly fit into the development of these areas

in the HR. The training management module allows for full auto-

mation of selected periodical trainings and ongoing monitoring of

the achievement of employees' development goals.

The implementation of training and development management

modules in 2022 will contribute to:

• Digitisation of the process - resignation from paper applica-

tions and email requests for participation in training.

• Automation of the flow of the training application - shorten-

ing the approval time.

• Increasing the involvement of employees and managers in

development processes by providing easier access to the

training offer.

• Increased control over timely execution of periodical train-

ings through direct access of the supervisor to information

on employee training and automatic monitoring of the train-

ing expiry date by the system.

• Optimisation of e-learning training management tools.

• Easier and faster access to L&D indicator reporting.

• More efficient management of the talent and succession

process.

• Creating a transparent and easily accessible employee devel-

opment path.

DEVELOPMENT AND STANDARDISATION

OF THE REMUNERATION POLICY

BASE SALARIES

In 2022, the process of evaluating newly created jobs in individual

companies was continued. In order to standardise the remunera-

tion policy, the basic salary scale and the table of job classification

in the key Polish companies of the CIECH Group were updated.

Changes have been made to the Remuneration Regulations. The

increase in the minimum wage for 2023 was also taken into ac-

count, and base salary ranges for operational employees at indi-

vidual skill levels were defined (ABCD Model).

BONUS SYSTEM

In 2022, the performance management system was reviewed.

During meetings with the managerial staff held in the form of

workshops, new rules were developed. Both on their basis and in

accordance with the dialogue with the Social Counterparty, the

Bonus Regulations were updated in all Polish companies of the

CIECH Group. The next step will be the implementation of bonus

rules for employees in foreign companies.

The bonus system consists of: an annual system and a quarterly-

annual system, membership of which determines the grade level

of a specific job position. The bonus principles are based on set-

ting individual and team goals as well as dialogue between the

employee and the manager. The amount of the bonus payment

depends on the level of achievement of company-wide, business

segment, team and individual goals.

In order to streamline the process of assigning and settling goals

in 2022, an IT tool was implemented – Navigator Portal, built on

the basis of SAP Success Factors technologies. Employees gained

knowledge on how to use the new tool, i.e. how to move around

and send, accept, modify and settle goals in the most efficient

way, during dedicated information training.

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EMPLOYEE BENEFITS

In the CIECH Group, we care for our employees and their family

members, providing them with access to additional benefits. A

uniform benefit offer is in place in the Polish companies of the

CIECH Group. Most companies establish company social benefit

funds, under which employees may be entitled to, among others,

self-arranged countryside holidays, allowances, Christmas bene-

fits for employees and their children.

The offer of benefits in the CIECH Group companies comprises for

instance:

• private medical care,

• life insurance packages,

• sports (membership) cards,

• insurance for children up to 26 years of age,

• access to trade-specific press,

• access to foreign language learning (online platform)

• benefits from the company’s social benefit fund,

• co-financing for the purchase of glasses.

RELATIONS WITH SOCIAL COUNTRERPARTIES

Within the CIECH Group, there are ten trade union organisations

associating approx. 36% of employees (each operating in at least

one company). We know that good cooperation with trade unions

initiates changes that may affect the state and conditions of em-

ployment in the Group. Accordingly, proper relations with the so-

cial counterparties are one of the managerial staff's priorities.

In 2022, negotiations were held with all trade union organisations

on the content of the updated Remuneration Regulations and Bo-

nus Regulations in the CIECH Group.

EMPLOYEE DEVELOPMENT

GENERAL COMPANY TRAINING

We invest in the development of our employees by providing

them with access to training, workshops, webinars, training

courses, postgraduate studies, coaching and mentoring. We

make sure that our employees can develop, gain new knowledge,

skills and experience. Each department has a specific develop-

ment budget for each year. Based on the competency model, as

well as technical and professional requirements, employees have

the opportunity to participate in training to improve their

knowledge and competencies. Depending on the subject and

scope of the training, employees have the opportunity to partici-

pate in training organised internally or by external training com-

panies.

As part of the company-wide training offer on the e-learning plat-

form, our employees can take advantage of e-learning courses

available to all in business negotiations, finance for "non-financi-

ers", the art of presentation, time management, feedback con-

versations, diversity and inclusiveness, productivity, among oth-

ers, during online meetings or creating multimedia presentations.

Managers also have the opportunity to take advantage of e-learn-

ing courses dedicated to them in team management, planning

and setting goals, delegation, giving feedback or aspects related

to labour law.

In addition to e-learning courses, we also organise a number of

stationary or online trainings in various thematic areas such as

project management, communication and cooperation, infor-

mation security, MS Excel, Power BI or language training.

PROFESSIONALISM

• What kind of manager am I?

• Planning and goal setting

• The role and control of emotions

COMMUNICATION AND COOPERATION

• Your team

• Effective communication

• Change management

DECISION-MAKING

• Recruitment process for the Manager

ENGAGING LEADERSHIP

• Conducting evaluation interviews

• ABCD development discussion

2 219

employees partic-

ipated in training

643

trainings

on offer

9 865

hours spent on

trainings

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LIDER AND LIDERGO PROGRAMMES

Lider and LiderGO are leadership competence development pro-

grammes dedicated to all managers in the CIECH Group. Created

internally by the Learning & Development Team, they are aimed

at defining consistent expectations towards managers, support in

everyday work, managing teams and own working time, and

providing practical tools. It is also a time to meet and exchange

good practices.

In order to respond to the needs of all Managers in our organisa-

tion, we have created three development programmes: Lider,

which includes dedicated programmes for Team Leaders and Pro-

duction Leaders, and LiderGO - dedicated to the Top Manage-

ment. Creating content tailored to each of the 3 groups, in which

each module is aimed at developing a specific competence, was

an interesting and engaging experience. We focused on the

blended learning formula so that participants had the oppor-

tunity to take part in live, online workshops, webinars, individual

sessions, or use e-learning.

23 traning groups in 2022

153 tranings

1000 traning hours

In 2022, 350 managers participated in the Lider Programme. We

created 23 training groups and 21 thematic modules. In 2022, we

conducted 153 trainings, which gives us nearly 1 000 training

hours. In 2023, we plan to implement new, extended modules

and periodically launch the programme for new and newly ap-

pointed managers.

45 managers from the top management

76 traning hours

In addition, 45 managers from the top management participated

in the LiderGO programme, who worked in 3 parallel groups. We

carried out several workshops thematically coherent with the

Lider Programme, which gives us nearly 76 training hours.

IMPLEMENTATION OF THE DISC D3 DIAGNOSTIC

TOOL

In 2022, we implemented the DISC D3 questionnaire as a tool to

support the work of managers with their teams. We invited the

entire Top Management group to participate in the survey. The

first step was to organise information webinars, during which

managers could learn more about the survey itself and its meth-

odology. The results of the DISC D3 questionnaire provide infor-

mation on the style of operation preferred by manager, the val-

ues behind the decisions made and how internal motivations

translate into work results. It is also information about the style

of communication preferred by manager and how it affects coop-

eration within the team. The DISC D3 questionnaire is also part of

the AC/DC session and the recruitment process for specific man-

agerial positions.

ABCD MODEL

The ABCD model is a Skills Management System for Operational

Employees (production and production-related positions), which

helps us in:

• planning work in production

• employee development

• motivating employees

• ensuring stability of production

Employees covered by the ABCD Model have a developed set of

production skills that includes all technical and soft skills corre-

sponding to the values of the CIECH Group.

The employee's skill set, i.e. the job profile, consists of four soft

skills and technical skills. Profiles also include skill expectation lev-

els on a scale of 1-4.

Thanks to the matrices for assessing the current skills of an em-

ployee in relation to the expected profile, the employee is classi-

fied into one of four levels, which are differentiated by remuner-

ation:

• A - learner

• B - independent employee

• C – very versatile person

• D - master successor

The evaluation cycle takes place once a year, which is linked to

pay rise moves. Based on the level of competence, we also plan

development activities and career paths for employees in the pro-

duction area and production-related positions.

The implementation of the ABCD Model has helped us to

strengthen the role of the masters as the lower managerial staff.

The masters and managers participated in multi-module work-

shops where they could gain and enhance their team manage-

ment, change implementation, communication and motivating

skills.

In 2022, the system covered the Packag-

ing segment and the company CIECH Ser-

wis i Remonty (the Other segment),

which closes the process of implement-

ing the ABCD Model in all our Polish com-

panies. Currently, approximately 80% of

production employees are already cov-

ered by the Skills Management System

for Operational Employees.

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ciechgroup.com 80

PROCUREMENT ACADEMY

In 2022, we launched the Procurement Academy - an annual pro-

gramme of training and workshops for all employees engaged in

the area of procurement in the CIECH Group. Over 50 people

were covered by the programme.

The purpose of the programme is mainly:

• development of key competences as an element of the im-

plementation of the assumptions of the Purchasing Depart-

ment development strategy

• addressing the needs of employees reported in the Em-

ployee Opinion Survey in terms of improving qualifications,

development opportunities and training

• increasing the level of involvement

The Procurement Academy includes training in negotiations, sup-

plier evaluation and management (supplier TCO analysis), inter-

national sales conditions (Incoterms), legal aspects related to pur-

chases and procurement project management.

After completing the training cycle with an attendance rate of

85%, employees will receive an internal certificate of completion

of the Procurement Academy at the CIECH Group.

DEVELOPMENT OF SALES FORCE IN BUSINESS SEG-

MENTS

We want to best respond to the challenges and expectations of

the changing market, including the needs of our customers, which

is why we invited 18 Key Account Managers (KAMs) from our larg-

est segments, Soda and Agro, to participate in the Development

Centre (DC) session. Each participant received individual feedback

on their strengths and areas for development. The next step will

be to plan development activities tailored to the individual needs

of DC participants.

In addition, in 2022, we implemented a development programme

for KAMs and the Sales Support Team from the Soda segment in

the area of salt products. A series of trainings and workshops was

created around effective team cooperation, customer relation-

ship management and improving sales skills.

We also continued development activities for KAMs from the

Soda segment in the area of soda products. The series of work-

shops focused on practical ways of dealing with difficult sales sit-

uations (raising prices, negotiating complaints), strengthening

sales skills based on non-price arguments and enhancing the habit

of being well prepared for business talks.

LANGUAGE PLATFORM

The Interactive Platform contains hundreds of dialogues, scenes,

exercises, ready-made templates to facilitate writing emails,

word revisions, language games, films, tests, etc. Available to our

employees, there are over 900 lessons at all levels (from basic to

advanced) in the field of general, business, travel-related lan-

guage, as well as industry and departmental dictionaries. The

platform includes a pronunciation trainer, a built-in multimedia

dictionary and other useful functionalities and gamification; it

also gives you the option of using a mobile application on

smartphones. The CIECH Group finances this form of develop-

ment of employee language competences in 100%. In 2022, it was

used by approximately 600 employees of the Group.

COACHING AND MENTORING

Responding to the individual needs of our managers, in 2022 we

conducted individual coaching sessions for 11 employees. The

processes are carried out by both external and internal coaches.

We want the coaching process to bring the expected results.

Therefore, we always start the process with a 3-way session, dur-

ing which the coach establishes the consistency of the goals of the

supervisor and the person entering the coaching process. Some

of the processes are already completed with a summary of the

goals achieved by the coachee, some are still ongoing and subse-

quent processes are successively started. In 2022, each of the

managers using coaching completed an average of 10 to 15 ses-

sions, which gives a total of about 220 hours of coaching sessions.

In addition, 5 women from our organisation started participating

in external cross-mentoring programmes, which will undoubtedly

support the achievement of their individual development goals,

enable them to gain knowledge in the area of their choice, de-

velop specific competences and support networking activities.

employees bene-

fited

from coaching

and mentoring

Each of them

had

10-15

sessions

In total

220

coaching and

mentoring hours

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ciechgroup.com 81

WE CHECK THE PULSE OF OUR

ORGANISATION

360-DEGREE EVALUATION

The 360-degree evaluation process enables us to diagnose the

level of managerial competences in the CIECH Group and provides

the necessary information to prepare an action plan for the de-

velopment of the management staff to be implemented this year.

This process takes place every year, each time we evaluate the

competences of a different managerial group. In 2022, we as-

sessed the competencies of the managerial staff at CIECH Salz.

The assessment was carried out for 9 managers of various levels,

who were evaluated by their associates, superiors and direct sub-

ordinates. The survey turnout was over 88%. After the survey was

completed and the results were compiled, individual feedback

sessions were carried out. The results of the survey are very help-

ful in designing and selecting the most appropriate development

activities for a given manager.

The following competencies are assessed: decision making,

safety, credibility, professionalism, cooperation and communica-

tion, engaging leadership, striving for development, continuous

improvement of processes.

PULSE CHECK 2021

In 2022 we organised another PULSE CHECK survey in the CIECH

Group. The aim of the survey is to check whether as a Group we

are heading in the right direction, whether the decisions made by

the Management Board are properly interpreted and support the

daily work of managers and their teams. We want to check the

"pulse of the organisation" and how to support employees on a

daily basis to make CIECH an even better place to work for them.

All managers and independent employees who coordinate pro-

jects in the Group were invited to the survey. To ensure full ano-

nymity, the survey was carried out by, in its entirety, by an exter-

nal company that has been on the market for years and special-

ises in opinion polling.

The survey was carried out electronically. It consisted of 28 ques-

tions (including 3 open-ended questions) within the following cat-

egories:

• Engagement,

• Organisational culture and image,

• Business agility,

• Change,

• Engaging leadership – Top Managerial Staff.

In 2022, the turnout in the survey was 62%. We have clearly ob-

served increases in the percentage of results in each of the afore-

mentioned categories compared to 2021:

Engagement” +5 p.p

“Change” +3 p.p

“Engaging Leadership” +8 p.p

“Organisational culture and image” +7 p.p

“Business agility” +4 p.p

The increase in employee satisfaction in all areas throughout the

year may prove that the activities we undertake as a Group are

noticed and appreciated by our employees. Based on the results

of the employee opinion survey and Pulse Check from previous

years, we are continuously implementing changes and improve-

ments that respond to the needs expressed in the surveys. The

results of the survey provide the basis for planning the most ade-

quate actions.

DEVELOPING AN ATTRACTIVE

BRAND ON THE LABOUR MAR-

KET

CLEAR RECRUITMENT RULES

Recruitment processes within the CIECH Group are based on the

adopted standards. We belong to the “Friendly Recruitment” Co-

alition, which means that we comply with the provisions of the

Code of Good Recruitment Practices.

The recruitment process is standardised for the entire Group and

involves meetings in the presence of an HR Employee and a busi-

ness representative. Depending on the grade of the position, the

recruitment processes consist of one or more stages.

A competency interview is conducted with candidates, and their

substantive knowledge and knowledge of foreign languages are

also checked. Additionally, if necessary, competency tests and

knowledge tests are carried out. An important element of the re-

cruitment process is the feedback for persons applying for a given

position, which is provided to each candidate, regardless of the

recruitment result. In communication with candidates, we are

supported by the recruitment system, thanks to which the flow of

information exchanged with candidates is monitored.

In 2022, we also introduced the Assessment Centre as an obliga-

tory stage in the recruitment of senior management and the DISC

D3 survey for this group of candidates. On the basis of the reports,

decisions are made on the selection of a candidate and planning

their further development activities in the case of employment in

the CIECH Group.

We continue the remote recruitment standard developed during

the COVID-19 pandemic. In the case of positions for which

NON-FINANCIAL REPORT 2022

ciechgroup.com 82

recruitment cannot be carried out remotely (e.g. production

area), recruitment is performed while maintaining all security

measures.

The CIECH Group cares about continuous improvement in the re-

cruitment process. Just like in the previous years, we collect valu-

able feedback from candidates participating in recruitment pro-

cesses using an anonymous online survey. The information ob-

tained helps the organisation to continuously improve its recruit-

ment standards.

All available job offers in the CIECH Group can be found on the

corporate website in the career tab at https://kari-

era.ciechgroup.com

In 2022, we introduced the Employee Recommendation Pro-

gramme in all our companies in Poland and Germany. It assumes

a cash gratification for employees who decide to recommend a

person to work in the CIECH Group. The programme applies to all

job offers available on the internal information site.

WORK PLACEMENTS AND INTERNSHIPS

In 2022, substantive internships and school work placements

were organised once again at the CIECH Group companies, giving

the opportunity to acquire knowledge and the opportunity to de-

velop in many areas. Internship is understood as a paid pro-

gramme implemented by students or graduates in organisational

units of CIECH S.A. and the Group’s companies, in the agreed

time. The internships at the CIECH Group are in line with the as-

sumptions of “Top quality internships”. The areas for which in-

terns were recruited include: Production, Finance, Logistics, IT,

R&D, Sales, Administration and Purchasing.

Each intern, acquired in the recruitment process, was assigned a

substantive tutor who was responsible for the implementation,

familiarisation with the organisational structure and activities of

the Group, monitoring the tasks performed by the intern and

providing ongoing feedback. After the end of the programme, the

supervisor was obliged to issue written references regarding the

tasks completed by the intern and the skills acquired during the

internship. However, each intern had the opportunity to provide

feedback on the implemented programme.

In 2022, as part of the CIECH STARTER

Summer Internship Programme, we in-

vited 23 interns to cooperate. The intern-

ships were organised in 20 teams in 6 lo-

cations. During the 3-month programme,

the interns also participated in 4 general

development trainings. From among the

group of interns, we have established

and continue long-term cooperation with

7 people who currently support selected

organisational units.

Additionally, we continued a programme enabling students of

many schools and universities to complete their work placement.

It is a free programme, implemented by school and university stu-

dents as part of professional practice in organisational units of

CIECH S.A. and other companies in the agreed time.

PRE-BOARDING AND ONBOARDING

The first stage of a new employee joining the organisation is the

pre-boarding process, which has been standardised for each of

the CIECH Group companies. Roles have been separated in the

process, based on responsibility for individual tasks. A future em-

ployee of the Group is provided with permanent HR and payroll

services by a dedicated employee of the Human Resources and

Payroll Department. Communication with the future employee

takes place by phone and email. At each stage of employment,

the future employee can count on the support of the HR Depart-

ment.

The CIECH Group operates an Onboarding Programme. Its objec-

tive is quick and easy adaptation of new employees by providing

them with basic knowledge about the CIECH Group, products, in-

ternal acts, development opportunities and social offer. The

Onboarding process includes training, company presentation, de-

livery of welcome kits and information on hiring a new employee

through internal communication.

In 2022, the HR Department conducted

over 40 onboarding sessions for new em-

ployees. Sessions were held at least once

a month in each company of the CIECH

Group. The onboarding process covered

over 700 new employees of the CIECH

Group

NON-FINANCIAL REPORT 2022

ciechgroup.com 83

As part of HR onboarding, meetings with managers, meetings

with the team and meetings with a dedicated supervisor are or-

ganised. During the onboarding training, trainees become ac-

quainted with the history, mission, vision and values of the com-

pany, learn about the current strategy, discuss the organisational

structure, company procedures and work rules, they are pre-

sented non-wage benefits and the rules for using them, discuss

the circulation of HR and payroll documents, IT, administrative

and finance issues, issued related to information and data man-

agement, quality, security and the adopted ESG strategy. As part

of making the onboarding process more attractive and better in-

tegrating new people, welcome packages and elements of gami-

fication with prizes are also used.

Functional onboarding, which is conducted by the new employ-

ee's supervisor and team, consists in introducing the new em-

ployee to the tasks and responsibilities of a given position, getting

to know the work culture in a given team and establishing formal

and informal relationships with co-workers. During this process,

the scope of tasks for a given position is discussed, the work plan

for the next period is presented, the team gets acquainted, and

development opportunities for a given position are presented.

The entire onboarding process has no end date - it lasts until the

new employee is completely independent in a given position and

is able to effectively navigate the everyday life of the organisa-

tion.

EMPLOYER BRANDING

The CIECH Group continuously undertakes a number of activities

related to maintaining the image of a good employer. In 2022, we

continued activities focused on the promotion of our Production

Plants. We participated in job fairs for both students and people

actively looking for employment. Our representatives of business

units and HR were able to meet directly with people interested in

joining the CIECH Group, talk about the nature of work, develop-

ment opportunities in the company and our plans for the future.

Together with universities and high schools, as well as organisa-

tions associating employers, we organised meetings for pupils,

students and people active on the labour market, during which

we presented the nature of work in the CIECH Group companies.

Once again, CIECH Sarzyna became involved in the educational

project “CIECH Days” connecting the world of business with the

academic community by organising a unique series of educational

and development meetings for students of the Rzeszów Univer-

sity of Technology. The purpose of the event is to promote the

use of chemical sciences in business and to support students in

choosing further career paths. In addition to scheduled lectures

and training sessions conducted by experts, students can also visit

the CIECH Sarzyna factory and laboratory.

In the School Complex in Nowa Sarzyna, the idea of a chemical

class is continued under the patronage of the Rzeszów University

of Technology and CIECH Sarzyna. A modern chemistry labora-

tory, attractive topics and the form of classes are designed to de-

velop students' passion for chemistry, and in the future - to open

the doors to their dream universities and enable them to find an

interesting and valuable job.

In 2022, companies located in Kujawy undertook long-term pat-

ronage cooperation with the John Paul II Complex of Chemical

and Electronic Schools in Inowrocław. As a result, students of the

school are given a chance for work placement in the quality con-

trol department. We also started a long-term partnership with

the Railway Technical School in Bydgoszcz.

REWARDS AND DISTINCTIONS

In 2022, once again we received the certificate: HR of the Highest

Quality, awarded by the Polish Association of Human Resources

Management (PSZK). The certification process is divided into two

stages, including completing a questionnaire (about 50 questions)

covering all HR processes and analysing a selected HR project.

PZSK examines the practical dimension of the HR policy and tools

used by the company (including recruitment, incentive and remu-

neration systems, employee development, internal communica-

tion, employer branding and CSR). HR of the Highest Quality is a

confirmation for employees and candidates that the company is

a good, credible and reliable employer, using the latest human

capital management solutions.

Another title that we obtained in 2022 is the Reliable Employer

and the Reliable Employer of the 20

Anniversary awarded for

all initiatives in the area of HR.

The assessment criteria are broad, they

concern every aspect of the operation of

a modern enterprise, e.g. working condi-

tions, career paths, development activi-

ties, employee evaluation model, incen-

tive systems, standards and equal treat-

ment as well as external opinions about

the company.

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ciechgroup.com 84

INTERNAL COMMUNICATION

AND EMPLOYEE ENGAGEMENT

The CIECH Group is developing dynamically and communication

activities, especially during the transformation of the organisa-

tion, are key to ensuring the sense of comfort and security of em-

ployees. We are expanding our online and offline communication

tools to reach our employees as effectively as possible in the most

convenient way for them. We currently use three communication

channels:

• online tools and platforms,

• traditional message carriers and

• direct communication.

If possible, we try to combine communication activities with ac-

tions involving employees, which translates into higher effective-

ness of communication and its positive reception.

ONLINE, DIRECT AND TRADITIONAL (OFFLINE) COMMUNICA-

TION

We regularly communicate to employees about organisational

changes taking place inside the company at all levels of employ-

ment (personnel and reorganisation changes) as well as about in-

itiatives that relate to the Group and current activities. In addition

to written communication in the form of regular mailings and in-

formation newsletters, we organise information meetings -

Global Communications Day. These are half-yearly meetings

where, in addition to a dose of information about the current re-

sults of the company and the projects we are currently imple-

menting, employees have the opportunity to ask questions to

which the speakers provide live answers.

In 2022, we organised a large event - CIECH Celebrations - sum-

marising the Group's 3-year strategy and presenting new direc-

tions for 2022-2024. The event was broadcast live to four coun-

tries and over 3 000 Group employees. In a very solemn atmos-

phere, we awarded over 50 managers of the Group, without

whose work and commitment there would be no success in re-

cent years, achieved in such demanding times.

ENGAGING EMPLOYEES AND SUPPORTING THEIR INITIATIVES

We promote a culture of mutual appreciation. We have intro-

duced a company-wide competition, the CIECH Value Hero,

where we promote employees’ attitudes in line with the Group’s

values - the CIECH Value Hero. An Employee may nominate any

other employee to this award. Nominations are made by com-

pleting a questionnaire with a descriptive justification why the

person concerned should receive an award. A separate Jury in

each of our locations, the composition of which includes employ-

ees, casts its votes. In 2022, we awarded each other 16 employees

in the Value Heroes competition.

In 2022, we returned to full-scale CIECH Fest family picnics, which

are becoming our annual tradition. In previous years, during the

pandemic, the initiative was suspended or held in a limited form

of internal employee meetings. 2022 brought the opportunity to

organise the CIECH Fest in the form of family picnics, where our

employees could have fun and integrate with their dearest ones.

This year's edition of CIECH Fest was full of attractions. We pre-

pared 5 thematic zones for our employees, an unlimited catering

zone, artistic highlights, live music and activities with prizes.

• In the "Strefa sportowych uCIECH" (Sports Fun Zone), em-

ployees were able to feel the spirit of healthy competition

and take part in football triathlon as a team, i.e. football

games, accuracy challenge and XXL table football. At the end

of each picnic, all teams were honoured on stage by the

Management Board Members.

• "Strefa Kreatywnych uCIECH" (Creative Fun Zone) showed

the possibilities of using CIECH products in a creative way.

Young and old took part, among others, in: workshops for

making pillows from CIECH foams, lanterns or fragrant

slimes, and face painting for the youngest.

• "Strefa rodzinnych uCIECH" (The Family Fun Zone) greeted

the youngest with inflatables, eurobungee and an animation

zone where parents were able to leave their children under

the care of professional animators.

• "Strefa Zdrowia" (The Health Zone) was part of the

ZdrowiejMy programme and gave the opportunity to take

advantage of on-site consultations with health specialists

such as: an ophthalmologist, cosmetologist, dietician or

physiotherapist.

• In the "Strefa Bezpieczny CIECH" (Safe CIECH Zone), employ-

ees used an accident simulator, scenario games, fire brigade

demonstrations, first aid repetitions, which also included

tasks for the youngest.

We also emphasise the traditions that our employees value. Dur-

ing Christmas, we distributed 3 500 packages to employees in Po-

land, Germany, Romania and Spain.

NEW WELLBEING PROGRAMME AND EMPLOYEE HEALTH SUP-

PORT

In 2022, we launched the ZdrowiejMY programme to build a cul-

ture of wellbeing in our Organisation and support the health of

employees.

The programme was developed with all CIECH Group employees

in mind and is based on a number of initiatives related to move-

ment and physical activity, preventive health care and psycho-ed-

ucation. It is an important step in the development of the Group's

pro-health policy. Its purpose is to develop good habits in terms

of physical and mental health care. This proprietary initiative is

also one of the elements of the implementation of CIECH's long-

term strategy, which assumes the construction of a modern and

innovative organisation, which is a friendly and attractive work-

place.

NON-FINANCIAL REPORT 2022

ciechgroup.com 85

The project was inaugurated during the series of the aforemen-

tioned summer employee picnics, "CIECH Fest". Their participants

had the opportunity to take advantage of comprehensive consul-

tations with health specialists.

In 2022, we also guaranteed our employees access to a number

of mobile diagnostic possibilities - free consultations with physio-

therapists as part of the Health Days in all locations, and as part

of the Prevention Days - ultrasound examinations of a selected

area (abdomen, breasts, testicles and thyroid gland) and ECG

tests in specially adapted cardiobuses. And all this on a stationary

basis, directly at the workplace - in our offices and production

plants.

In addition to the actual access to qualified medical personnel, we

focused on the promotion of physical activity through campaigns

and competitions in which our employees had, among others, an

opportunity to obtain funding for the proposed ideas for joint, in-

tegrating sports initiatives.

We supplemented the programme with a series of psycho-educa-

tional webinars on methods supporting healthy sleep and the im-

portance of building relationships in the workplace.

Our activities as part of the ZdrowiejMY project are one of the

elements of the CIECH Group's strategy for 2022-2024, imple-

mented under the motto "We build future-proof and modern

chemical holding that generates value for its stakeholders." The

priority of the HR area under this strategy is to strengthen positive

changes in the Group's organisational culture and to build an en-

gaging work environment in order to increase the attractiveness

of CIECH as an employer.

FIGURES AND RATIOS

2020

2021

2022

Total number of employees at the end of the period

3 415

100%

3 322

100%

3 512

100%

Breakdown by gender:

Women

804

24%

767

23%

824

23%

Men

2 611

76%

2 555

77%

2 688

77%

Breakdown by age:

Under 30

415

12%

492

15%

531

15%

30-50

1 741

51%

1 539

46%

1 643

47%

Over 50

1 259

37%

1 291

39%

1 338

38%

Breakdown by region:

Poland

2 874

84%

2 610

79%

2 779

79%

Germany

441

13%

618

19%

650

19%

Romania

Spain

Breakdown by business segment:

Soda segment

1 757

51%

1 891

57%

1 991

57%

Agro segment

248

308

339

10%

Foams segment

128

120

124

Silicates segment

106

133

126

Packaging segment

202

195

194

Other segment and corporate functions

974

29%

675

20%

738

21%

2020

2021

2022

New employees

447

100%

463

100%

773

100%

Breakdown by gender:

Women

22%

18%

221

29%

Men

350

78%

379

82%

552

71%

Breakdown by age:

Under 30

139

31%

162

35%

288

37%

NON-FINANCIAL REPORT 2022

ciechgroup.com 86

2020

2021

2022

30 - 50 years

244

55%

234

51%

374

48%

Over 50

14%

111

14%

Breakdown by region:

Poland

402

90%

284

61%

659

85%

Germany

168

36%

104

13%

Romania

Spain

2020

2021

2022

Employee departures

851

520

594

Breakdown by gender:

Women

225

26%

138

27%

149

25%

Men

626

74%

382

73%

445

75%

Breakdown by age:

Under 30

247

29%

142

27%

181

30%

30 - 50 years

341

40%

216

42%

230

39%

Over 50

263

31%

162

31%

183

31%

Breakdown by region:

Poland

368

43%

436

84%

495

83%

Germany

13%

Romania

482

57%

Spain

Age

2020

2021

2022

Total

Under 30

292

123

415

360

132

492

388

143

531

30-50

1 294

447

1 741

1 118

421

1 539

1 180

463

1 643

Over 50

1 025

234

1 259

1 077

214

1 291

1 120

218

1 338

TOTAL

2 611

804

3 415

2 555

767

3 322

2 688

824

3 512

Type of employment

2020

2021

2022

Total

Employment contract for indefinite

period

2 077

588

2 665

2 041

578

2 619

2 134

611

2 745

Employment contract for a definite

period (incl.: trial period, under-

study, practical job placement)

534

216

750

513

189

702

554

213

767

Total

2 611

804

3 415

2 555

767

3 322

2 688

824

3 512

Type of employment

2020

2021

2022

Total

Full-time

2 575

788

3 363

2 454

733

3 187

2 594

804

3 398

Part-time

101

135

114

Total

2 611

804

3 415

2 555

767

3 322

2 688

824

3 512

NON-FINANCIAL REPORT 2022

ciechgroup.com 87

Employment area

2020

2021

2022

Total

OHS

Controlling, Accounting, Finance

106

156

118

171

115

179

Power sector

167

174

161

169

160

168

Other

113

202

101

165

136

195

Investments

Quality control

163

183

156

175

165

199

Logistics/Warehouse

163

199

153

190

153

199

Environmental protection

Production

1 527

170

1 697

1 467

144

1 611

1 496

161

1 657

Sales and marketing

137

141

153

Maintenance

364

385

393

415

414

431

Purchases

Management, administration, HR,

139

145

108

193

Total

2 611

804

3 415

2 555

767

3 322

2 688

824

3 512

Employment level

2020

2021

2022

Total

Executive managers

Under 30

30-50

Over 50

Middle managerial staff

130

179

130

185

141

195

Under 30

30-50

120

116

126

Over 50

Non-production operational posi-

tions

713

508

1 221

731

493

1 224

814

468

1 282

Under 30

113

115

102

217

140

234

30-50

411

322

733

344

279

623

384

287

671

Over 50

237

138

375

272

112

384

290

377

Production operational positions

1 749

244

1 993

1 640

214

1 854

1 679

298

1 977

Under 30

259

297

242

271

245

293

30-50

773

100

873

665

763

669

139

808

Over 50

717

106

823

733

820

765

111

876

Total

2 611

804

3 415

2 555

767

3 322

2 688

824

3 512

Gender Pay Gap Ratio (GDPR)

2020

2021

2022

Operational employees – production area

-0,3%

-4,3%

-5,4%

Operational employees – areas other than production

-2,9%

-5,9%

-4,8%

Middle managerial staff and executive managers

20,3%

15,9%

2,1%

Specialists, experts, middle managers

-1,8%

-6,4%

-4,7%

All employees

-1,4%

-5,0%

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2020

2021

2022

Number of employees entitled to parental leave

3 415

3 322

3 512

Women

24%

23%

Men

76%

77%

Number of employees who had parental leave

Women

97%

71%

63%

Men

31%

37%

Number of employees who returned to work after parental leave

Women

97%

77%

64%

Men

26%

36%

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SAFETY AND HEALTH OF

OUR EMPLOYEES AND

CRITICAL INCIDENT

MANAGEMENT

People are the most important to us. The Group's priority is to

ensure the safety of our employees and suppliers, subcontrac-

tors, as well as guests visiting the Group's plants and offices. By

providing technical, organisational, and social conditions to sup-

port their health and safety, we are able to ensure continuity of

production and business development in the long term. Accord-

ing to the WHO definition, we assume that health is complete

physical, mental and social well-being, therefore safety has its

place in all our management processes, from recruitment or pur-

chasing, production and logistics areas, to the broadly under-

stood development of leaders and employees.

In the Strategy for 2022-2024, we put safety first - to become an

industry leader, we have committed to reducing the frequency of

injuries by 30% by the end of 2024.

Thanks to the implementation of comprehensive measures aimed

at improving safety, we have already achieved this goal in 2022,

recording a decrease in the LTIF rate to 2.48 (-51% y/y).

LTIF - lost time injury frequency rate - the number of "record-

able" injuries standardised to 1 million hours worked.

Six of our companies received

awards from the Management

Board of CIECH S.A. for achieving

“zero accidents” recordable

throughout 2022

Safe CIECH (internal campaign

from November 2021) - spectacu-

lar results in the first year of the

campaign

5M and 5xWhy analysis

– new tools for investigating acci-

dents and near misses

No heavy injuries in the entire

CIECH Group in 2022

The LTIF

injury ratio at 2.48 - well

below the strategic target of 3.50

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LABOUR SAFETY MANAGE-

MENT

Work safety is one of the priorities of our ESG strategy and the

business strategy of the CIECH Group. In accordance with our

Health and Safety Policy, we manage occupational safety in a sys-

temic manner and in line with the principle of continuous im-

provement. Our health and safety management system includes

a wide range of stakeholders, including visitors and subcontrac-

tors.

Our OHS Policy is based on the international ISO 45001 standard

and applies to all our stakeholders, from whom we require com-

pliance with the CIECH Group's safety standards.

This document contains, above all, an obligation to ensure safe

and hygienic working conditions in order to prevent injuries and

health ailments. To achieve this, in our Policy, we commit our-

selves to meeting legal requirements, eliminating hazards, reduc-

ing risks, and continuously improving the OHS management sys-

tem. An important element to support effective management of

the safety area is also consultation and participation of employ-

ees in making decisions related to OHS and implementing actions

resulting from such decisions.

In accordance with the principle of continuous improvement in-

scribed in the ISO Standards, we pay attention to the fact that our

management system is alive and continuously improved. Espe-

cially in today's dynamic legal, social and market environment, we

must be ready to respond to current needs and new challenges.

To ensure effective management of this area, we are also devel-

oping a Team of Health & Safety specialists.

In companies with more than 250 employees, OHS Committees

have been established that meet, as a minimum, on a quarterly

basis to discuss current occupational health and safety challenges

and plans. The meetings are attended by representatives of the

Management Board, OHS service and employees' representa-

tives, most often representatives of trade unions. Representa-

tives of the Social Labour Inspectorate also participate in, among

others, regular Health and Safety Reviews, identifying areas for

improvement in this regard, post-accident proceedings, occupa-

tional risk assessment process.

An important right of an employee, and

an obligation within the CIECH Group, is

to refrain from work if the working condi-

tions pose such a hazard that the health

or life of anyone is at risk.

We continuously monitor hazards in the work environment

through regular inspections carried out not only by OHS services,

but also as a team, with the participation of area owners (manag-

ers of organisational units) or representatives of the Maintenance

Department. Identified threats or irregularities are prioritised and

appropriate corrective actions are carried out by designated per-

sons.

2022 was the first year of the Group's new corporate strategy, the

horizon of which reaches 2024. We put safety first – we intend to

become an industry leader and reduce the incidence of injuries

by 30%.

management commitment to health and safety is-

sues,

proper perception and analysis of health and safety

risks in each process,

an effective training and development system in the

area of safety,

wherever possible, the reliance on data as a basis

for decision making,

supporting safety both from the level of investment

in infrastructure and the awareness of each person

and its impact with every day, small decisions on the

level of safety in the immediate environment.

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Thanks to the commitment of the OHS team and all employees of

the Group, not only did we achieve this ambitious goal, but we

also exceeded it already in the first year of the Strategy. However,

we do not rest on our laurels and make every effort to ensure full

safety for our employees, contractors, and guests.

In 2022, we recorded a record low LTIF

injury rate: 2.48 (-51% y/y)

Six of our companies received awards from the Management

Board of CIECH S.A. for achieving a "zero injuries" recordable re-

sult throughout 2022.

We have not recorded any fatal injuries in the Group since 2015,

and last year we did not record any serious injuries.

Regular meetings and periodic mutual visits of employ-

ees of OHS services in individual plants, aimed at ex-

changing good practices and harmonising safety stand-

ards while respecting the specificity of the Group's vari-

ous business lines.

We periodically published messages in the form of

emails and posters, strengthening the message of our 10

Safety Principles with additional attractions in the form

of, for example, quizzes for employees.

We carried out a series of trainings "See? React”, raising

awareness of responsibility for safety in the workplace,

first aid skills and risk identification.

In 2022, we implemented the 5M and 5xWhy analysis

tools for systemic analysis of injury and near miss events,

identification of causes and prevention of similar events

in the future. We communicate the results of analyses in

OHS Alerts and during meetings.

WE ARE CONDUCTING A NUMBER OF ACTIVITIES TO STRENGTHEN OUR HEALTH AND SAFETY COMMUNICATION, INCLUDING:

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We keep our workplace tidy and

clean.

We only use designated traffic routes.

We hold the handrail when ascending

and descending the stairs.

We follow the traffic regulations.

I use safety guards and safety devices

and do not conduct unauthorised re-

pairs.

I only use technically efficient and

tools and equipment in accordance

with my qualifications.

I follow the rules of safe manual han-

dling

I use safety devices and personal pro-

tective equipment appropriate to the

hazards that may occur

I follow the ban of smoking, consump-

tion of alcohol and intoxicants

I follow all safety rules when working

with dangerous substances

I come to work in a good health and

spirit!

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"SAFE CIECH" PROJECT

As part of the Safe CIECH project:

• We have updated the OHS Policy to meet the requirements

of ISO 45001. One of our companies, Ciech Sarzyna S.A. was

the first company in the Group to receive a certificate of

compliance with this standard in 2021. By 2024, we plan to

raise the certification level of our production companies to

50%.

• We refreshed 10 safety rules of the CIECH Group, which are

the basis for talks on safety, from which, among others, we

are now starting internal meetings.

• We conduct a series of trainings on risk perception and re-

acting to dangerous situations, “See? React!”. After the pilot

programme for 50 people in managerial positions from two

companies in 2021, in 2022 we extended the programme to

include the other Group entities and we trained another 238

people. The next step will be to train all employees, including

previously selected internal trainers.

• In 2022, we implemented Safety Visits carried out by repre-

sentatives of the top management in production areas,

aimed at talking to employees about safety and listening to

and taking into account the voice of each of our employees.

• We increased the number of employees of the team re-

sponsible for security at the headquarters and in individual

companies.

• We changed the structure of the OHS team, e.g., by separat-

ing in 2022 a team for management systems and a team for

training and communication.

• We developed a new, comprehensive procedure for report-

ing and analysing accidents with a focus on finding the sys-

tem root cause.

• We conducted several OHS competitions among our em-

ployees.

• We celebrate our successes together - at the beginning of

the year we always appreciate companies from the Group

that stand out with high scores in safety statistics, and now

we are expanding the scope of awards to emphasise the in-

dividual commitment of our employees.

Our activities under the #BezpiecznyCIECH (#SafeCIECH) pro-

gramme have been appreciated by external institutions - in No-

vember 2022, we were nominated for the Safe Work Leaders Fo-

rum at the Central Institute for Labour Protection.

In connection with further improvements in the coming years, we

also plan the following:

• introduction of comprehensive software gathering data

from the companies, facilitating their verification, analysis,

assignment of consistent corrective actions and their man-

agement,

• continuation of training for all employees of the Group as

part of the “See? React!”

• conducting first aid training for all employees of the Group,

• development of the training system, including the compe-

tence of leaders in the field of safety,

• improving a coherent system of inspections and internal au-

dits,

• further modernisation of production plants in the area of in-

frastructure,

• Certification of further production companies in accordance

with the ISO 45001 standard.

SAFETY TRAINING

The competences of our employees in the area of occupational

safety are of key importance to us, as they are a guarantee of

safety for themselves, associates, contractors, and therefore our

entire organisation. Therefore, in addition to mandatory training,

resulting directly from the regulations, such as introductory or pe-

riodic training, we hold a number of dedicated meetings. As far as

possible, we try to make these trainings take the form of practical

workshops, taking into account the needs of various target

groups.

In 2022, we continued the extensive

"Safe CIECH" project, under which

we focus on developing a safety cul-

ture, both in the area of the work envi-

ronment and the behaviour of our em-

ployees at each level of the organisa-

tion.

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COMPREHENSIVE COMMUNICATION IN

THE SAFETY AREA

Information on occupational health and safety is provided primar-

ily through direct meetings between supervisors and employees,

as well as the internal portal of the CIECH Group, posters, or

online meetings, depending on the group of employees con-

cerned.

We also organise periodic meetings dedicated to, among others,

discussing inspection recommendations, procedures after inju-

ries and near misses, observations e.g., during safety visits of

leaders. They are attended by key people responsible for individ-

ual areas, which allows for efficient management of assigned ac-

tivities.

After injury and near miss incidents, the so-called Safety Alerts

are prepared, as discussed during local operational meetings,

OHS Team meetings and meetings of the Management Boards of

Group companies. We start internal meetings with discussing

safety issues, and the "safety slides" prepared by the Health and

Safety Team contain current statistics and news, such as the sub-

ject of the month or the new Safety Alert.

Our main training activities in Health & Safety area in 2022 were:

• Conducting “See? React!” for all employees of the CIECH

Group, broken down by target groups:

• Top management - responsibility and care for teams,

safety visits

• Operational management - safety psychology, sense of

responsibility for the area, practical support for em-

ployee safety

• All employees - mutual care for health and life within

the team.

• Conducting first aid training for all employees of the Group -

the project started in 2022 and will be continued in 2023.

• Including in the LEADER programme the issue of responsibil-

ity for occupational safety and leadership for safety - build-

ing a safety culture based on care for employees.

• Taking over trainings conducted by external companies to

conduct them as practically as possible and with reference

to local conditions and expectations of the CIECH Group.

• Continuous improvement of the health and safety part dur-

ing the induction programme to communicate our safety ex-

pectations to new employees from the beginning of their en-

gagement.

”SEE? REACT!” is our largest training programme, fo-

cused primarily on:

Trainings are conducted taking into account the language of the

recipients - for example, trainings for contractors engaging em-

ployees from Ukraine are conducted in the presence of an inter-

preter to ensure the greatest possible effectiveness and under-

standing of our expectations and safety rules.

Training takes place during working hours. With a view to facili-

tating the participation of people working in shifts, we organise

them on varied days and times.

After the training, participants are provided with questionnaires

evaluating the entire training, including e.g., the quality of inter-

preting ambiguities or usefulness in everyday work. This supports

the assessment of contractors (if it is an external training) and ad-

justment of the scope and content in subsequent editions of pe-

riodical training.

Keeping up with the times, we introduce modern technologies,

such as VR (Virtual Reality), to OHS training. Given this type of so-

lutions, the employee is able to learn much more effectively and

faster. Under stressful conditions and in a real environment, they

will act more consciously and avoid costly errors.

Development of risk perception

competencies even despite long-

term work in the same place, similar

conditions and threats.

Responsibility of the management

for OHS and development of com-

munication skills with employees in

terms of responsibility for the work-

place, activities in the sphere of influ-

ence and developing own solutions

to improve work

Responsibility of employees for

their own work area and strengthen-

ing the feeling that all health and

safety activities are carried out for

them, so that they can return home

safely and in full health every day.

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RISK ASSESSMENT

For us, risk assessment means a compre-

hensive approach that allows minimising

the risk to the health and safety of our

employees and other stakeholders. It is

an integral part of our processes, such as

purchases or investments.

The risk assessment process is an important element of systemic

occupational health and safety management. In the CIECH Group,

we have extended it beyond the mandatory occupational risk as-

sessment. Based on global good practices, the CIECH Group is cur-

rently implementing the Risk Assessment Standard - a unified set

of processes, including risk assessment for non-routine, non-

standard works that always occur in the industry. The occupa-

tional risk assessment process has also been unified, targeting

work processes and not only formal positions.

The risk assessment process is also an important component of

the Subcontractor Safety Management Standard, as the way they

perform their work may affect the safety of our employees and

the other way round. Only effective cooperation in this area is

able to ensure a safe return home for both groups of people work-

ing for CIECH.

In order to prevent ill-considered actions and shortcuts, we have

implemented the so-called Five-step method (5S), which allows

for an effective assessment of our preparation for the safe per-

formance of work.

Occupational risk assessment is a continuous process, i.e. it is doc-

umented, reviewed and updated. The occupational risk assess-

ment process is initiated in each of the following cases:

When creating new workplaces

When introducing (technological or organisa-

tional) changes to workplaces)

A change in the applicable legal and other re-

quirements with regard to the assessed work-

places

Changes in the applied protective measures,

equipment, devices and substances

Occurrence of a near-accident or accident at

work.

The occupational risk assessment process, coordinated by repre-

sentatives of the OHS service, involves employees from a specific

area, and, if necessary, also industry experts. As part of this pro-

cess, we take into account all environmental factors and perform:

• defining general requirements for rooms/premises and

workstations,

• describing the type of work, including hazard zones,

• assessing compliance with the requirements for each job,

• describing and evaluating any hazards that may occur during

the performance of work,

• estimating the value of occupational risk and determining its

admissibility

• developing a plan of corrective and preventive actions.

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FIGURES AND RATIOS

All injuries, incidents and near misses are recorded in the IT sys-

tem, which enables tracking of ratios, results and trends in the

area of occupational safety.

Accidents at work in the countries where we operate are defined

in accordance with the requirements of local law. In order to har-

monise standards in international operations, we have imple-

mented a uniform definition and method of calculating CIECH in-

juries, the so-called recordable. It is the basis for calculating one

of our main ratios in occupational safety - LTIF.

The LTIF ratio includes all incidents in which our employees were

involved, however, it does not include injuries on the way to and

from work and injuries of subcontractors on the way to and from

work and incidents of subcontractors, which we record sepa-

rately.

CIECH (Recordable) injury – is an injury at work that:

• required professional medical assistance (except first aid

and/or administering or prescribing painkillers)

and at the same time

• whose effects caused a serious impact on the further life and

everyday functioning of the injured.

LTIF ratio calculated as the number of CIECH (recordable) injuries

per 1 million of hours worked.

Employees

2020

2021

2022

Women

Men

Total

Women

Men

Total

Women

Men

Total

Number of fatal injuries

Number of lost (working

time) injuries

Number of all reported inju-

ries

LTIF

5,76

5,08

2,48

Subcontractors

Women

Men

Total

Women

Men

Total

Women

Men

Total

Number of fatal injuries

Number of lost (working

time) injuries

Number of all reported inju-

ries

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OPERATIONAL

EXCELLENCE

In accordance with the CIECH Group's strategy for 2022-2024, as

part of the implementation of the “Build future-proof business”

goal in terms of building a cost advantage, activities in the area of

operational excellence were implemented.

The activities were concentrated in two streams:

• strengthening the Lean Manufacturing approach,

• introduction of additional management techniques to in-

crease production efficiency.

LEAN MANUFACTURING

Lean Manufacturing is a production management system in a

manufacturing company, which is designed to reduce waste and

eliminate unnecessary operations and procedures in the produc-

tion process, while providing products and services of the highest

quality expected by customers, maintaining low production costs

and using a relatively low amount of raw materials. The following

Lean Manufacturing tools were used in the CIECH Group:

• 5S - sorting, stabilisation, cleaning, standardisation, system-

atics,

• TMP (Total Productive Maintenance) - global maintenance

management,

• Visual Management – management by presenting re-

sults/stages of processes,

• SMED (Single Minutes Exchange of Die) – quick changeover

method,

• Kobetsu Kaizen - continuous rectification and improvement

of the management and production process,

• S&OP (Sales and Operations Planning) - an integrated oper-

ational planning process in the enterprise.

A Value Stream Analysis was carried out in the Packaging seg-

ment. Based on the results of the analysis, 9 initiatives were de-

fined to increase operational efficiency. These initiatives con-

cerned specific issues along with an indication of tools and prac-

tices whose implementation will allow achieving the assumed

goals:

• Improvement of communication - daily management - or-

ganization of a team of employees.

• Organisation of workstations - daily management - organisa-

tion of the 5S workplace.

• Permanent problem solving - Kobetsu Kaizen.

• Optimisation of the changeover process - SMED.

• Improvement of the production planning system - S&OP.

• Verification of quality standards - Standardisation.

• Maintaining the efficiency of machines, devices and infra-

structure. Spare parts management – TPM.

• Standardisation of work - Standardisation, Visual Manage-

ment.

• Improvement of logistics processes - Standardisation.

In the next stage, these initiatives were transformed into projects

implemented by dedicated project teams consisting of employ-

ees. In addition to the measurable goals set for individual pro-

jects, the objective of building lasting competencies in the organ-

isation that can be used in similar activities in the future was also

achieved.

A Value Stream Analysis was also carried out in the Silicates seg-

ment. Seven initiatives have been defined:

• Streamlining communication and standardising meetings.

• Effective problem solving.

• Standardisation of assortment change and cleaning.

• Development of standards for performed operations.

• Optimisation of waste management.

• Organisation of workstations and work area in the plant.

• Optimisation of maintenance and repair of installations, in-

frastructure.

Initiatives were transformed into projects and implemented

within appointed project teams.

Process optimisation activities were also carried out in the follow-

ing areas:

• Organisation of technical warehouses.

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• Optimisation of the process of loading finished products in

warehouses.

• Effective rules of cooperation with carriers.

MANAGEMENT TECHNIQUES TO INCREASE PRODUCTION EFFI-

CIENCY

In the second stream concerning the introduction of manage-

ment techniques to increase production efficiency, the following

activities were implemented:

1. Implementation of the 5S practice:

• Production areas in all production plants of the CIECH Group

in Poland were inventoried in terms of the implementation

of the 5S practice - effective and safe organised workplace.

• A team of employees has been established whose task is to

support the employees of the Ciech Group in the implemen-

tation of 5S practices.

• An operating standard for the implementation of the 5S

practice has been prepared.

• In 2022, the 5S practice was implemented in 73 areas, which

corresponds to 29% of the implementation of the total plan.

• In order to continuously improve and maintain the appropri-

ate level of 5S in the implemented areas, a process of the so-

called maintenance reviews was prepared and introduced,

the purpose of which is to systematically assess the level of

practice maintenance and assess the possibility of extending

it.

2. Building a standard and starting to implement team organi-

sation practices. The aim of this activity is to prepare team

leaders for effective team organisation through systematic

structured operational meetings, ability to work with KPIs,

submitting proposals for improvements within the PDCA

(Plan, Do, Check, Act) practice.

3. Actions have been initiated in selected production plants to

launch selected TPM (Total Productive Maintenance) ele-

ments. The activities were carried out under two pillars: Au-

tonomous Maintenance and Planned Maintenance.

4. An activity related to building structural problem-solving

competencies in the organisation was launched. It consists

of:

• Training employees in the theoretical foundations of struc-

tural problem solving.

• Preparation of application regulations.

• Implementation of the RCFA (Root cause and failure analy-

sis) IT application for the analysis of failures in production

processes and permanent elimination of their causes.

GOALS AND PLANS FOR 2023

Full implementation of the RCFA IT application

Continuation of TPM activities

Including leaders in building effective team organisa-

tion competences in the training cycle

Full launch of the process of maintaining the imple-

mented practices, the so-called Maintenance Review

Continuation of 5S implementations. The full imple-

mentation of the 5S practice will end in mid-2024

Launching a Value Stream Analysis in other business

areas

Standaryzacja pracy - budowa w organizacji kompe-

tencji w zakresie przygotowania, wdrażania i pracy

w oparciu o standardy pracy; z wykorzystaniem po-

dejścia TWI (Training Within Industry)

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OUR

ENVIRONMENT

MEMBERSHIP IN ORGANISA-

TIONS

UN GLOBAL COMPACT

The CIECH Group has been a member of the United Nations

Global Compact since 2020. By joining this initiative, the Group is

able to draw on the knowledge and experience of this interna-

tional organisation in the area of sustainable development, but

also to bring its own extensive experience related to activities for

climate protection, especially in the areas of energy and minimis-

ing the impact of production on the environment.

All UNGC principles are reflected in our internal regulations and

actively promoted among the Group's business partners. Our

partners are required to comply with our Business Partner Code,

which is evidenced by relevant clauses incorporated into the con-

tracts binding between us. The Code defines the basic principles

of respecting human rights, environmental protection, and busi-

ness ethics. This practice also results from one of the eight key

commitments of the ESG Strategy of the CIECH Group, adopted in

May 2021 - its provisions are related, among others, to willingness

to cooperate with business partners who share the Group's val-

ues and with whom it jointly implements the idea of sustainable

development.

All CIECH Group companies have joined the Declaration of Adop-

tion of the United Nations Ethical Programme Standard, thus

committing themselves to comply with international standards of

labour and human rights. As part of this commitment, the CIECH

Group will promote the freedom of association and the elimina-

tion of slavery and forced labour and will contribute to the actual

abolition of work by adolescents under the age of 18.

The employees of the CIECH Group also participate in the UN

Global Compact Network Poland Ethics Standard project, and

within its framework they co-create the Working Group for ethi-

cal standards and responsible communication. The initiative aims

to create a Responsible Communication Standard, which will be a

set of principles defining ethical information management at the

external and internal level in the organisation and will also pro-

vide tools for implementing the developed solutions.

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HUMAN RIGHTS

Businesses should:

• Comply with and support internationally recognised human rights

• Eliminate all human rights violations by the company.

LABOUR STANDARDS

Businesses should:

•

Support uphold the freedom of association and the effective recognition of the right to collective

bargaining

• Support the elimination of all forms of slavery and forced labour

• Contribute to the effective abolition of child labour

• Counteract discrimination in the employment area

ENVIRONMENTAL PROTECTION

Businesses should:

• Support a precautionary approach to environmental issues

• Undertake initiatives to promote greater environmental responsibility

• Support the development and diffusion of environmentally friendly technologies.

ANTI-CORRUPTION

Businesses should:

• Work against corruption in all its forms, including bribery and extortion.

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OTHER ASSOCIATIONS AND ORGANISA-

TIONS IN WHICH THE CIECH GROUP IS

ENGAGED:

• Association of Stock Exchange Issuers,

• Bilateral Polish-Romanian Chamber of Commerce and Indus-

try,

• Polish Chamber of Chemical Industry,

• Employers of the Republic of Poland,

• “Lewiatan” Confederation,

• “Polska Sól” (Polish Salt) Foundation,

• Polish Society for Human Resources Management,

• Chamber of Industrial Power and Energy Recipients,

• CEFIC – European Chemical Industry Council,

• The National Association of Candle and Gravelight Produc-

ers,

• Railway Business Forum,

• European Association of Flexible Polyurethane,

• Foam Blocks Manufacturers,

• SPOT System – Assistance System in the Carriage of Danger-

ous Materials,

• Polish Crop Protection Association (PSOR),

• ECCA,

• Foundation for the Development of the Rzeszów University

of Technology.

RELATIONS WITH LOCAL COM-

MUNITIES

The CIECH Group actively fulfills its mission of being a "good

neighbour" incorporated into its ESG strategy and supports local

initiatives in the environments where the Group's production

plants operate. It actively participates in the organisation of

sports and cultural events and educational programmes. These

activities take the form of sponsorship and partnership. The

Group implements charitable and volunteer projects, giving em-

ployees the opportunity to actively participate in them.

CIECH Pianki became a sponsor

of the Polonia Bydgoszcz speedway team

- a seven-time team Polish Speedway

Champion.

BYDGOSZCZ

• CIECH Cargo started a long-term cooperation with the Byd-

goszcz Railway Technical Secondary School. In 2022, stu-

dents took part in a meeting with representatives of the

company in order to learn about the details of internship of-

fers, professional development opportunities and the com-

pany's business profile.

INOWROCŁAW

• CIECH has become a sponsor of the "ZHR Przystań" Polish

Scouting Association, Kuyavian-Pomeranian District. The

sponsorship supports educational, patriotic, sports, ecologi-

cal and administrative activities carried out at Przystań

Kajakowo-Żeglarska ZHR. CIECH Soda Polska was also in-

volved in the Eko-rzeka project - Spring Cleaning of the Noteć

River at Przystań Kajakowo-Żeglarska ZHR.

• We organize regular meetings with residents and the Man-

agement Board of Osiedle Mątwy (a housing estate adjacent

to the CIECH Soda Polska production plant) to inform them

about initiatives and conduct dialogue with residents.

• We support sports initiatives in the region - during the

2021/2022 season, CIECH Soda Polska was the titular spon-

sor of the CIECH KSK Noteć Inowrocław Basketball Club. It is

a professional sports club striving for promotion to a higher

league. The matches played in Inowrocław are very popular

with the inhabitants of the city.

• CIECH Soda Polska in 2022 became a sponsor of the Mątew-

ski Noteć Football Club, operating in the immediate vicinity

of its production plant in Inowrocław. The company also

sponsored the Inowrocław "DAMY RADĘ" Beach Handball

Association, the Inowrocław "Noteć" Table Tennis Club, the

"Akro - Sól" Inowrocław Sports Acrobatics Club Association,

as well as the Inowrocław CUIAVIA Sports Club - a fourth-

league football club. All clubs and associations are socially

important sports centres for the inhabitants of Inowrocław,

and the company, by undertaking sponsorship activities,

cares for diversity in terms of sports disciplines and sports

level, while emphasising the support of children and youth

teams as part of the aforementioned activities.

• The CIECH Group became the sponsor of the Poland-Indone-

sia match as part of the Davis Cup tournament. Davis Cup is

the world's largest international tennis competition, and

thus one of the most important tournaments in this sport.

The event was held in the sports and entertainment hall of

the Sports and Recreation Centre in Inowrocław, being an

important element of the city's promotion at the regional

and national level.

• The CIECH Group provided support, among others, to the Lit-

tle Footballer Inowrocław Football Academy, the Piast Run-

ning Festival, the Second National Basketball Festival -

"Kasper Kids Cup" and the National Youth Tennis Tourna-

ment in Inowrocław. CIECH Cargo also supported the Na-

tional Sports Acrobatics Tournament for Children and Youth.

Involvement in these events reflects care for the education

and youth in the spirit of sports competition and care for

physical culture.

• CIECH Soda Polska took its patronage over two classes of a

technical secondary school with the profile of an analyst

technician at the John Paul II Chemistry-Electronics School

Complex in Inowrocław, which is another element of the

CIECH Group's wider cooperation in improving the quality of

vocational education in the Kuyavian-Pomeranian region.

The partnership will enable students to have traineeship,

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ciechgroup.com 102

and at the same time will provide the opportunity to gain

practical experience and direct contact with specialists in the

industry. The company also supported the 100th anniversary

of Primary School No. 9. In addition, in 2022, CIECH Serwis i

Remonty, together with the Mechanical and Electrical

School Complex in Inowrocław, started joint activities pro-

moting industry professions such as: mechanic, electrician,

electro-automatic technician, to name but a few, through

the organisation of apprenticeships and internships for stu-

dents and study visits of industry business representatives to

the school.

• In 2022, CIECH Soda Polska supported cultural centres and

events in Inowrocław, including Kuyavian Cultural Centre -

INO CLASSIC FESTIVAL, initiative of the Inowrocław Jan

Kasprowicz Museum and the Outdoor Exhibition Dedicated

to the 20

Anniversary of the Interwar Period and the His-

torical Festival in Inowrocła.

• The CIECH Group donated to a member of the local commu-

nity in need. In 2022, CIECH Cargo donated funds to the Or-

phanage in Orłowo (Inowrocław County).

JANIKOWO

• In 2022, CIECH Soda Polska remained the sponsor of the local

third-league football team - Unia Janikowo. The company

also supported the Janikowska ZaDyszka marathon.

NOWA SARZYNA

• CIECH Sarzyna continuously maintains its patronage over the

chemical class, which is part of the CIECH project under the

name "Chemistry connects people". In 2022, the company

donated PLN 10,000 for class development. The partners of

the project are the Rzeszów University of Technology and

the Nowa Sarzyna Town and Commune Office. As part of the

agreement, the company created a special offer for students

of the University of Technology. The laboratory regularly

hosts meetings of students who have chosen chemistry at

the advanced level with employees of CIECH Sarzyna on re-

cruitment in the chemical industry and the process of devel-

oping and registering products on individual global markets.

On 7 December 2022, the CIECH DAYS event was held - a se-

ries of educational and development meetings for students

of the Rzeszów University of Technology, organised by CIECH

Sarzyna together with the Faculty of Chemistry of the

Rzeszów University of Technology. The event was aimed at

promoting the use of chemical sciences in business and sup-

porting students in choosing further career paths.

• CIECH Sarzyna takes patronage over the Unia Nowa Sarzyna

football club.

• CIECH Sarzyna co-financed the purchase of equipment for lo-

cal authorities and allocated PLN 20,000 to restocking ponds

located in the recreational area used by employees and their

families.

STASSFURT

• We became a sponsor of the HV Rott Weiss Stassfurt hand-

ball club.

WE SUPPORT YOUNG TALENTS

"The Academy of School Talents" is a free, long-term support pro-

gramme for children of employees of enterprises from the port-

folio of companies of the initiator of the Academy - Sebastian

Kulczyk, including the CIECH Group. Programme participants will

receive help from graduates of the world's best universities in de-

veloping their talents and skills and choosing the best educational

path. Advisors from the Nativated Foundation will prepare them

for their final exams, as well as for studying at foreign universities.

The credibility of the programme is guaranteed by its partner -

the Nativated Foundation, which promotes and supports the ed-

ucation of Poles at the best universities in the United Kingdom

and the United States on a daily basis. The foundation has exper-

tise of student learning needs and school systems in the US, UK

and elsewhere.

In September 2018, the CIECH Group started recruitment for the

first year of the Academy of School Talents in its production plants

throughout the country. The intensive information campaign was

well received by employees. As a result, several dozen children of

employees applied for the programme, of which ten winners

were selected. The winner of the first edition of the Academy,

coming from Inowrocław, continues her studies at the University

of Southampton in the United Kingdom, majoring in "Biomedical

Sciences" and is still a beneficiary of the programme, receiving fi-

nancial support for the duration of her education.

Seventeen participants of the Academy of School Talents com-

pleted over 1,800 hours of lessons in the 2021/22 school year un-

der the supervision of mentors from the Nativated Foundation.

Three of this year's high school graduates have taken their final

exams and will apply for courses such as law, medicine and com-

puter science.

In 2022, the Academy of School Talents operated in an extended

formula, providing support to those already studying and organ-

ising the recruitment of new participants. Four new participants

were admitted to the Academy of School Talents.

For more information go to: www.akademiaszkolnychtalentow.pl

WE SUPPORT THE LARGEST CHARITY

FUNDRAISER IN POLAND

In 2022, the CIECH Group donated over 200 thousand top-quality

filtering masks for the organisation of the 30th Final of the Great

Orchestra of Christmas Charity (in Polish: Wielka Orkiestra

Świątecznej Pomocy). The masks reached 1633 staff members

preparing for the Final, which took place on 30 January 2022. Cer-

tified FFP3 class protective masks ensured the safety of the

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ciechgroup.com 103

organisers of the Final and 120 thousand volunteers collecting

money all over Poland.

The CIECH Group started the production of the highest quality

face masks at its production plant in Bydgoszcz in November

2020. They are manufactured in 100% in Poland, and mainly raw

materials from Polish producers were used for their production.

The complicated and meticulous certification process was also

carried out in Poland by an authorised institution - the Central In-

stitute for Labour Protection. The masks effectively protect the

respiratory system against solid and liquid particles forming aer-

osols (dusts, fumes, mists), which is confirmed by the EN 149:

2001 certificate awarded to them in the FFP2 and FFP3 protection

classes.

The Great Orchestra of Christmas Charity Foundation is an organ-

isation enjoying the greatest social trust in Poland. Founded in

1993, it has organised each year, in January, a fundraiser, the

WOŚP Finale. With the collected funds, the WOŚP Foundation

purchases and donates top-of-the-class medical equipment to

children’s hospitals in Poland. Since the beginning of its activity,

the Foundation has collected over PLN 1.7 billion to support

Polish medicine and purchased nearly 70,000 devices.

WE PROMOTE HELPING OTHERS AND

EMPLOYEE VOLUNTARY INITIATIVES

One of the initiatives by Employees are colleague fundraisers for

local organisations and institutions in need. In 2022, charity do-

nations were continued for children from the Orphanage in

Orłowo and for the charges of the “Dar Serca” Association in Jani-

kowo. The CIECH Group provided, among others, a donation to a

member of the local community in need and co-financed Anna

Grzelak's professional development towards providing medical

assistance. During the CIECH Fest picnics, employees collected

funds for selected organisations in need of help.

WE SUPPORT THE UKRAINIAN COMMU-

NITY

The CIECH Group supported the victims of the war in Ukraine. The

assistance arranged by the Group was mainly aimed at supporting

people fleeing the war - both as part of local initiatives carried out

by individual companies and from the level of the headquarters

in Warsaw.

Since the beginning of hostilities, the CIECH Group has donated

over 1,500 mattresses for the needs of refugee accommodation

points, e.g. in Warsaw, Leżajsk and Inowrocław, and equipped the

refugee aid points in Warsaw with 50,000 highest quality certified

FFP2 protective masks. The group was also involved in equipping

the refugee centre in Inowrocław (among others, by making a do-

nation to the local Caritas), purchased power generators for the

Ukrainian Caritas and donated medical equipment worth PLN

50,000 to Ukraine.

The CIECH Group intends to continue its involvement in helping

refugees, hoping to minimise the effects of the war inflicting

Ukraine.

WE SPONSOR THE MOST PRESTIGIOUS

TRIATHLON COMPETITION IN POLAND

In 2022, the CIECH Group became the titular sponsor of the Tri

Tour series of triathlon competitions and the main partner of JBL

Triathlon Poznań. CIECH Tri Tour is the most prestigious series of

triathlon competitions in the country, in which athletes compete

for the shortest total race completion time. All events included in

the series are independent, in each of them the competitors re-

ceive separate starting packages, medals and prizes, in accord-

ance with the regulations prevailing in the competition con-

cerned. As part of the competition, the CIECH Group and the

Pho3nix Foundation, together with the participants and thou-

sands of triathlon fans, collected PLN 4,500,000 for the Techno-

logically Supported Rehabilitation Centre of the Wiktor Dega Or-

thopaedic and Rehabilitation Teaching Hospital of the Karol

Marcinkowski Medical University of Poznań.

WE PROMOTE GREEN TRANSFOR-

MATION OF THE INDUSTRY

As part of the promotion and exchange of information on the

green transformation, the CIECH Group has started cooperation

with the WNP.PL portal. The result of the cooperation is the cre-

ation of the Green Index, i.e., a special zone on the portal dedi-

cated to issues related to the green transformation of industry.

CIECH is the initiator and strategic partner of this initiative. As part

of the cooperation, two Rankings of Decarbonisation Initiatives

were held. The aim of the ranking is to promote interesting, inno-

vative ways to reduce greenhouse gas emissions and save natural

resources.

For more information go to Green Index: CO

emissions in busi-

nesses and economies of European countries - link: Zielony in-

deks: emisje CO2 w firmach i gospodarkach państw Europy -

wnp.pl

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ciechgroup.com 104

PUBLIC AID

In 2022, the CIECH Group companies continued with their pro-

jects launched in previous years and co-financed from public

funds. Substantive work related to the implementation of the ma-

terial scope of the projects as well as their settlement enabled the

Group to obtain a refund in the amount of:

The CIECH Group companies receive grants for research and de-

velopment work, for the purchase of tangible fixed assets and for

adapting their investment projects to environmental require-

ments. Subsidies received by the CIECH Group companies come

mainly from the National Centre for Research and Development,

the National Fund for Environmental Protection and Water

Management, and the Ministry of Development.

In 2022, the CIECH Group companies also received de minimis aid

for training and assistance in the form of greenhouse gas emission

allocation systems.

The CIECH Group companies also use the corporate income tax

exemption in connection with investments carried out on the ba-

sis of permits to operate in Special Economic Zones or on the basis

of decisions on support within the Polish Investment Zone.

PLN 3,158 thousand

by CIECH R&D Sp. z o. o. as part of the completed project:

“Establishment of the Research and Development Centre of

CIECH R&D Sp. z o.o.”.

PLN 798 thousand

by CIECH Sarzyna S.A. for the implementation of the pro-

ject: “Development and verification in actual conditions of

a more efficient and energy-saving technology for the pro-

duction of an innovative herbicide with a reduced content

of the active substance”.

PLN 455 thousand

by Smart Fluid S.A. as part of the project: “Development

and validation in actual conditions of technology for the

production of smart materials that absorb the impact force

by using the properties of shear thickening fluids (STF)”.

PLN 526 thousand

by CIECH R&D Sp. z o.o. as part of the completed project:

“Optimisation of the production of soda and soda-derived

products through the use of concentrated CO

waste

streams together with the carbon dioxide chemisorption

process in postdistillation suspension in order to improve

the properties of post-soda lime”.

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ciechgroup.com 105

CORPORATE

GOVERNANCE

GOVERNANCE STRUCTURE

CIECH

The highest governing body of CIECH is the General Meeting

of Shareholders, the powers and authorities of which arise

from the Commercial Companies Code and the Articles of As-

sociation of CIECH. The procedure at the General Meetings of

Shareholders complies with the Regulations of the General

Meeting of Shareholders.

There is a Supervisory Board at CIECH, the powers and author-

ities of which are specified in the Articles of Association of

CIECH, and its proceedings by the Regulations of the Supervi-

sory Board. According to the Articles of Association of CIECH,

the Supervisory Board shall consist of 5 to 9 members, ap-

pointed by the General Meeting of CIECH.

The Management Board of CIECH shall consist of at least two

members appointed by the Supervisory Board. The President

of the Management Board presides over the Management

Board and coordinates its work. The President shall also have

a decisive vote in adopting resolutions – where there is an

equal number of votes for and against the resolution, the Pres-

ident of the Management Board shall have the casting vote.

CZŁONKOWIE ZARZĄDU CIECH S.A.:

DAWID JAKUBOWICZ

President of the Management Board of CIECH

S.A. since 10 September 2018

He completed a Program for Leadership Development (PLD) at

the Harvard Business School in Boston and holds the MBA title

from the Georgia State University and the University of Economy

in Poznań. A graduate of the Faculty of Economy at the University

of Economy in Poznań.

He is an esteemed expert with the international operational ex-

perience in building the value of companies from the chemical,

mining, energy, automotive and new technologies sectors. En-

listed as a qualified auditor by the National Chamber of Statutory

Auditors since 2014. In the past, he worked for international com-

pany KPMG Audyt, where he was responsible for audit of sepa-

rate and consolidated financial statements of entities from many

industries.

Scope of responsibilities in CIECH S.A. – supervision over organi-

sational units:

• HR and Administration Department

• Strategy Department

• Legal Department

• Internal Audit Department

• IR&ESG Director

• Strategic Organisational Project Department

• Public Relations Manager/Press Officer

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ciechgroup.com 106

MIROSŁAW SKOWRON

Member of the Management Board of CIECH

S.A. since 10 September 2018

He graduated from the Wrocław University of

Technology, completed an MBA programme at the Wrocław Uni-

versity of Economics, holds the MBA diploma awarded by the

Gdansk Foundation for Management Development. He com-

pleted a course of Strategic Leadership Academy at the ICAN In-

stitute, organised by the Harvard Business Review.

He is an expert with many years of experience in the energy, con-

struction and mining industries. In the CIECH Group he is respon-

sible, among others, for issues related to production, energy and

maintenance. Previously, he was among others, the president of

management boards of companies such as Przedsiębiorstwo

Budowy Kopalń S.A. forming part of the KGHM Group, Polimex-

Energetyka Sp. z o.o., Energa Elektrownie Ostrołęka S.A. and En-

erga Invest S.A., as well as PGE Elektrownia Opole S.A.

Scope of responsibilities in CIECH S.A. – supervision over organi-

sational units:

• Investment Department (including PMO and Power Engi-

neering)

• Asset and Safety Management Department (including OHS)

• Environmental Department

• Quality Management Department

• Strategic Investment Project Department (GRAIN)

• Operational Excellence

• Logistics / S&OP Department

• CIECH R&D

On 31 January 2023, Mirosław Skowron resigned from his posi-

tion of Member of the Management Board. During the next six

months, Mirosław Skowron will remain in the organisation as an

Advisor to the Management Board. His duties were distributed

among the other Members of the Management Board.

KAMIL MAJCZAK

Member of the Management Board of CIECH

S.A. since 1 June 2022

He completed a master’s degree programme in economics at the

University of Cambridge and received a bachelor degree in eco-

nomics the Warsaw School of Economics.

In 2012 – 2014, he was associated with the PriceWaterhouse-

Coopers consulting company, London, following which, in 2014 –

2018, he worked for the strategic consulting company Bain &

Company in Warsaw and Melbourne, where he advised large cor-

porate clients and private equity funds. In the period between

2018 and 2021, he was employed with Kulczyk Investments. Since

January 2019, he has been the Strategy Director at CIECH S.A.

responsible for developing and implementing the Group's strat-

egy. In the CIECH Group, he also served as the President of the

Management Board of CIECH Żywice Sp. z o.o. (2020-2021), and

since 2021, he has been a Member of the Management Board of

CIECH Ventures Sp. z o.o.

Scope of responsibilities in CIECH S.A. – supervision over the fol-

lowing competences:

• Strategy

• Business Transformation

• Corporate Research and R&D

• Corporate Development & New Ventures

• PMO

• Energy Transformation

• Competence Centre.

JAROSŁAW ROMANOWSKI

Member of the Management Board of CIECH

S.A. since 20 April 2020

A graduate of the Faculty of Management at the Poznań Univer-

sity of Economics. He has completed several prestigious courses

in international finance, risk management and business valuation.

He is a manager with long-standing experience in managing global

organisations. An expert in the field of international trade, financ-

ing and project development. For years, associated with the raw

materials sector. In 2003-2006 and 2017-2020, he served as Vice-

President of the Management Board, Chief Financial Officer at

Tele-Fonika Kable S.A. In 2002 - 2016, he was associated with

KGHM Polska Miedź S.A., holding the positions of: General Direc-

tor for Finance, General Director for Sales and Hedging, and from

2013 to 2016, he was the First Vice-President of the Management

Board of KGHM Polska Miedź S.A.

Scope of responsibilities in CIECH S.A. – supervision over organi-

sational units:

• Controlling Department

• Finance Management Department

• Accounting Department

• Tax Department

• Risk Department

• Branches (PL, DE, RO)

• Purchasing Department

• IT Department

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ciechgroup.com 107

SHAREHOLDERS OF THE CIECH

GROUP

Since 2014, the main shareholder

of CIECH S.A. is a long-term strategic

investor - Kulczyk Investments.

It is an international investment group

specialising in initiating and executing

transactions on markets with the great-

est growth potential.

Figure 3. Shareholding structure of CIECH S.A. as at the date

of publication of this report

CIECH S.A. shares debuted on the Warsaw Stock Exchange on 10

February 2005. On 23 August 2016, CIECH S.A. shares were admit-

ted to trading on the Frankfurt Stock Exchange and are listed on

the regulated market there.

Table 2. Basic information on CIECH S.A. shares

2020

2021

2022

Number of shares (pcs.)

52 699

909

52 699

909

52 699

909

Closing price on the last trading

day of the year (PLN)

32,2

42,0

41,5

Company capitalisation at the

end of the year (PLN million)

1 697

2 213

2 185

Maximum price in the year (PLN)

41,7

51,7

46,1

Minimum price in the year (PLN)

21,1

29,5

29,8

Average trading volume per ses-

sion on the WSE (number of

shares)

85 042

96 822

60 404

2020

2021

2022

Average trading value per ses-

sion on the WSE (PLN thousand)

2 702

3 801

2 293

BUSINESS MODEL

We operate based on the Constitution of the CIECH Group,

adopted by the Management Board in March 2019. The Constitu-

tion is the highest-ranking internal legal act applicable to entities

belonging to the CIECH Group, it is a specific agreement between

the companies of the Group. The Constitution creates the foun-

dations of the management system directing our activities to

achieve the common interest. The interest is a benefit achieved

not at the level of individual companies, but at the level of the

Group - through the implementation of common strategic goals

by CIECH, Business Units and Companies that are not part of Busi-

ness Units or constitute independent Business Units. The interest

of the CIECH Group is consistent with the interest of CIECH share-

holders.

CONSTITUTION:

• governs mutual relations between entities of the CIECH

Group

• identifies the sources of applicable regulations to which all

entities of the CIECH Group shall adhere,

• sanctions the CIECH Group,

• introduces a BU-centric management model,

• enables the adoption and implementation of Corporate Doc-

uments in CIECH Group companies.

The main benefit of the Constitution is the introduction of a BU-

centric management model. Business Units conduct operational

activities based on product specialisation, and CIECH has a strate-

gic and holding role. The established Shared Services Centre

(CIECH Services Sp. z o.o.) runs an auxiliary activity for the entire

CIECH Group. In the BU-centric management system, decisions

are made in Business Units or companies that are not a Business

Unit and not part of any Business Unit, with the advisory and rec-

ommending participation of CIECH structures.

The benefits of the Constitution are corporate documents com-

mon to all companies of the CIECH Group, such as policies, regu-

lations and general procedures. Corporate documents are pre-

pared by CIECH, adopted by the Management Board and then im-

plemented directly in the companies of the Group. Corporate

Documents define: the rules of organisation and conduct in the

business process, the rules of supervising business processes, the

scope of duties, tasks, and competences in business processes.

One of the main Corporate Documents is the DoA (Delegation of

Authorities) (“DoA”) Matrix. The DoA is an instrument used to

support and monitor key business decisions within Business Units

and Companies. The DoA defines the catalogue of key issues and

the thresholds that require the participation of individual govern-

ing bodies and individuals in the decision-making process. Each

Allianz OFE

Other

shareholders

37%

NN OFE

KI Chemistry

SARL

51%

NON-FINANCIAL REPORT 2022

ciechgroup.com 108

company of the CIECH Group has its individualised Delegation of

Authorities Matrix.

The Constitution defines the creation of collegiate bodies of the

CIECH Group. Collegiate Bodies are appointed to carry out perma-

nent tasks or specific projects or ad hoc tasks. The following per-

manent collective bodies operate in the CIECH Group: Executive

Committee, Remuneration and Appointment Committee, Pur-

chasing Committee and Investment Committee. Collegiate bodies

have advisory and decision-making powers. Their decisions are

binding on the Business Units and the companies of the CIECH

Group.

The main permanent collegiate body is the Executive Committee.

It is a collegiate body including members of the Management

Board of CIECH, directors of the largest Business Units and direc-

tors of key CIECH departments. The main tasks of this Committee

are:

• defining guidelines, goals and assumptions for the strategy

of the CIECH Group and the strategy of Business Units and

companies of the CIECH Group and issuing recommenda-

tions to the Management Board of CIECH regarding the ap-

proval of these strategies,

• support for the Management Board of CIECH in the supervi-

sion of Business Units and companies of the CIECH Group,

• assessment of strategic risks and defining preventive and

corrective actions, contingency plans in case these risks

should materialise.

MANAGEMENT STANDARDS

AND COMPLIANCE SYSTEM

We strive to set standards in the area of modern management,

innovation, high-quality products and cooperation with custom-

ers and business partners.

We operate in accordance with the idea of sustainable develop-

ment, where economic, social, and environmental issues are a

key element of our business strategy, with particular emphasis on

such areas as:

• relations with employees,

• occupational health and safety,

• environmental protection,

• counteracting unlawful behaviour, including corruption.

These rules are set out in the Code of Conduct of the CIECH

Group, which describes in detail the standards of conduct of the

Group and its employees in individual areas.

The activities undertaken by the CIECH Group are supported by

the implemented management system procedures based on in-

ternational standards, ISO norms and numerous internal regula-

tions.

The Compliance system has been operating in the CIECH Group

since 2018. It is a set of procedures and systems designed to pre-

vent legal risks. The Compliance System is designed to counteract

the legal risk of non-compliance with the law and internal regula-

tions of the CIECH Group. It includes continuously updated poli-

cies and procedures regulating labour, social, environmental, hu-

man rights, anti-corruption and irregularity reporting issues. The

Compliance system is continuously updated to the dynamic regu-

latory changes and changes in the management system of the

CIECH Group.

The Compliance Department of the CIECH Group conducts initial

and regular training in:

• rules of the Code of Conduct of the CIECH Group,

• rules of the Code of the Business Partner of the CIECH Group,

• rules of MAR information obligations,

• Management System in the CIECH Group,

• The KYC Procedure of the CIECH Group,

• Anti-fraud and anti-corruption policy of the CIECH Group,

• Procedure of offering and accepting gifts and invitations

within the CIECH Group,

• Use of the anonymous violation reporting channel.

CODE OF CONDUCT OF THE

CIECH GROUP

Since 2021, the new Code of Conduct of the CIECH Group has

been in force. The Code is based on 4 fundamental values: re-

sponsibility, reliability, team, and development. It also describes

patterns of behaviour that are addressed to all employees and as-

sociates of our Group - regardless of the form of the concluded

contract. The provisions of the Code are also addressed to our

business partners and shareholders because we are convinced

that common values and principles constitute the foundation for

effective cooperation and sustainable development based on re-

spect for law and honesty. The Code is a guideline for all decisions

made at each level of our Group. Accordingly, internal policies

and procedures are based on the provisions of the Code, creating

a unified system of corporate documents. Below we present the

core values of the CIECH Group contained in the Code of Conduct

of the CIECH Group.

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WE CARE ABOUT OUR PEOPLE

WE OBSERVE AND SAFEGUARD HUMAN RIGHTS

The human being is of essence to us. Therefore, we attach great

importance to business ethics, which is permanently inscribed in

our strategy and everyday work. We are proud to be a signatory

of the United Nations Global Compact declaration. We adhere to

internationally recognised human rights and labour standards.

Within our Group and in relations with the market environment,

we support and promote freedom of association. We support the

elimination of all forms of slavery, forced labour, child labour and

the actual abolition of juvenile labour.

SAFETY AT WORK IS THE HIGHEST PRIORITY TO US

We care about the health and safe working conditions of our

employees, customers, suppliers and subcontractors provid-

ing us with their services or staying on the premises of our

plants. We are guided by the following two fundamental prin-

ciples:

• zero tolerance for people who violate occupational health

and safety regulations and standards, and

• ensuring high OHS standards.

We are continuously improving our activities in the area of occu-

pational health and safety, among others, by modernising our

production technology, taking into account, first of all, our em-

ployees’ safety. We systematically raise the awareness and qual-

ifications of our employees in work safety, striving to eliminate

accidents/injuries at work and occupational diseases. We pro-

mote the participation and involvement of employees in the con-

tinuous improvement of our occupational health and safety sys-

tem, as well as in preventing potentially accidental events (near

misses). The high health and safety standards that we have put in

place apply not only to our employees, but also to our suppliers,

subcontractors and any other individuals staying on our premises.

WE ENSURE A FRIENDLY WORK ENVIRONMENT, FREE FROM

MOBBING AND OTHER FORBIDDEN BEHAVIOUR

Together, we build friendly and partner relations. We have the

common responsibility for professional behaviour to ourselves

and others. We listen to and appreciate our associates, we re-

spect their opinions and decisions, even if they differ from ours.

We create a work environment free from any mobbing, humiliat-

ing, ridiculing or isolating behaviour. We promote the principles

of equal treatment in the recruitment, employment, remunera-

tion and promotion of our employees. We take care of the dignity

and friendly working environment for each employee, showing

them due respect regardless of their religion, skin colour, beliefs,

gender, sexual orientation or age.

We have zero tolerance for alcohol and intoxicants in the work-

place

Work requires conscious thinking and the ability to respond

quickly as the safety of other associates or our business partners

depends on it. We do not tolerate alcohol or drugs in the work-

place, either their consumption or being under their influence at

the time and place designated for carrying out official duties.

WE CARE ABOUT OUR WORLD

WE RESPECT THE NATURAL ENVIRONMENT

We are part of the chemical industry, which is of great benefit to

mankind, but at the same time, there is some price involved,

namely its impact on the environment. This means that while run-

ning our business, we remember about responsibility for the fate

of future generations and our planet. Accordingly, we strive to

eliminate any negative environmental effects of our operations,

and where possible, to minimise them. We make every effort to

ensure that our actions are fully consistent and harmonious with

the idea of environmental protection. We observe generally ap-

plicable environmental protection laws and, where possible,

adopt more restrictive internal standards. We understand the im-

pact of greenhouse gases on the climate and that is why we are

implementing ambitious projects aimed at minimising emissions

and full decarbonisation in the future. We minimise environmen-

tal protection risks, among others, by reducing the use of natural

resources and energy, eliminating or reducing the amount of

harmful emissions, by-products of production processes and

waste. We use water in a sustainable manner, minimising its con-

sumption and taking care of the quality of local resources.

WE SUPPORT LOCAL COMMUNITIES

We care for local communities wherever our production plants

are located. We are aware of our importance as an employer and

work together with local authorities, NGOs and residents to im-

prove their life quality. Our objective is developing good neigh-

bourly relations based on open dialogue, consultation and collab-

oration. We engage in employee volunteering for local initiatives,

and as a Group, we support socially significant initiatives in our

immediate environment.

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WE CARE ABOUT OUR GROUP

WE IMPROVE OURSELVES

We are prepared to make bold choices and decisions in line with

our values and the Code. We are continuously expanding our

knowledge and experience to achieve excellence in the chemical

industry. We strive to apply the best practices in all areas of our

operation, while not forgetting about innovative solutions.

WE ENSURE COMPLIANCE

We proactively learn about and comply with applicable laws, in-

ternal regulations as well as industry and ethical standards – both

in social and professional relations. Compliance with legal re-

quirements and ethics in all areas of our Group's operations has

a positive effect on our work, regardless of the tasks performed

and the place in the structure of our Group.

WE PROTECT OUR GROUP’S INFORMATION AND SECRETS

Confidential information plays a special role in our Group's busi-

ness strategy, and any loss, destruction of, or access to, such in-

formation by unauthorised individuals may give rise to very seri-

ous consequences. We exercise particular care when accessing

and processing trade secrets, personal data, expertise (know-

how) of our Group and confidential information within the mean-

ing of the public trading regulations. We protect our data against

different types of threats, in particular, those related to cyber-

crime.

WE USE OUR COMPANY ASSETS IN A RESPONSIBLE WAY

We protect the assets and resources of our Group entrusted to us

against damage, destruction, theft or loss. We use the assets of

our Group responsibly because we are aware that they have been

made available to us in order to attain specific business goals. We

use the Group's assets made available to us for personal purposes

to a minimum necessary extent, in line with the Group's internal

regulations. We never use the Group's assets entrusted to us for

our personal gain or for competitive activity.

WE DO NOT TOLERATE ANY FRAUD OR CORRUPTION

We clearly and consistently apply a zero-tolerance policy to all

fraud and corruption. We show honesty in our business opera-

tions and in our daily duties, in relations with our business part-

ners and state and local government officials, in all countries in

which we operate. We also expect honesty and compliance from

our business partners, with whom we work together to develop

best practices to protect the trust, value and reputation of our

Group.

WE COMPLY WITH STOCK EXCHANGE TRADING REGULATIONS

AND GOOD PRACTICES

CIECH S.A. is a company listed on the stock exchange of the War-

saw Stock Exchange and Die Börse Frankfurt. We comply with

Polish and international securities regulations and good practices

in the scope of stock exchange trading. We pursue a transparent

information policy, ensuring equal access to information. We

strive for the financial market to effectively assess the prospects

and risks of our business in the long term, and that is why we are

running a proactive dialogue with analysts, our shareholders, and

potential shareholders, as well as other representatives of the fi-

nancial market.

WE CARE ABOUT OUR BUSINESS PART-

NERS

WE COUNTERACT CONFLICTS OF INTERESTS

A conflict of interest may jeopardise the impartial and objective

performance of official duties for our Group. We take measures

with a view to identifying, explaining and managing cases of con-

nections, relationships, contacts, evidence of gratitude as well as

transactions or any other commitments that may affect, either di-

rectly or indirectly, the loyalty and impartiality of decisions made

by our employees. We disclose the possibility of a conflict of in-

terest to the immediate supervisor or the Ethics Committee of the

CIECH Group in order to make an objective and fair decision

aimed at eliminating or solving the problem.

WE REPORT DOUBTS AND VIOLATIONS

CONTACT WITH THE IMMEDIATE SUPERVISOR

As part of everyday duties and professional situations, doubts, di-

lemmas and questions may arise. There may also be situations in

which we find a violation of ethical principles, law or internal reg-

ulations. In any doubt, we contact our immediate supervisor who

has the adequate knowledge and experience in this regard. We

report violations only in good faith. When reporting doubts or

identified violations, we act in line with the values of our Group.

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CODE OF THE BUSINESS PART-

NER OF THE CIECH GROUP

The CIECH Group companies place special emphasis on sustaina-

ble development and responsible business issues. We are aware

of our role in the local environment and the impact we have on

the activities and lives of our stakeholders. We are also aware of

our impact on the natural environment. Products manufactured

by the CIECH Group contribute to the implementation of the UN

Sustainable Development Goals, and our objective is to focus on

strengthening positive, and reducing negative, effects of our op-

erations. We strive towards the long-term, sustainable develop-

ment of the CIECH Group, which will benefit all our stakeholders:

employees, customers, suppliers, neighbours, owners, as well as

future generations. We collaborate with people, institutions and

organisations that share our approach to doing business. Accord-

ingly, we expect our business partners to help us achieve our sus-

tainable development and responsible business conduct objec-

tives and to identify with the values and principles we have

adopted.

The Code of the Business Partner of the CIECH Group (the

“Code”) sets the minimum standards of conduct for: business

partners of the CIECH Group companies, in particular: suppliers,

contractors, distributors, recipients, sellers, service providers,

other counterparties and entities with the help of which business

partners perform business tasks in relation to the companies of

the CIECH Group (“Partners”). The condition for starting and con-

tinuing the business relationship of a CIECH Group company with

Partners is confirmation by the Partners and adoption of the prin-

ciples set out in the Code. The provisions of the Code apply to the

company, members of governing bodies, employees and associ-

ates of our Partners.

HUMAN RIGHTS AND LABOUR STAND-

ARDS

HUMAN RIGHTS

We expect our Partners to observe human rights, both in the con-

text of working conditions of their employees and in business. All

employees and associates of our Partners are treated in a fair, re-

spectful and dignified manner.

OCCUPATIONAL HEALTH AND SAFETY

We expect our Partners to provide their employees and associ-

ates with a safe workplace and comply with all applicable occupa-

tional health and safety standards and regulations. All employees

and associates receive the adequate workplace instructions, incl.

information on the OHS conditions and requirements, protective

measures, and they are provided with appropriate training. Our

ultimate goal is zero accidents/injuries at work.

NO DISCRIMINATION

We expect our Partners not to discriminate, or tolerate any form

of discrimination, against any person based on their gender, race,

ethnicity, nationality, religion, beliefs, disability, age, sexual ori-

entation, health, political beliefs, marital status or membership in

organisations.

NO MOBBING

We expect our Partners not to use, or tolerate any forms of, mob-

bing, harassment, incl. sexual harassment, and to have imple-

mented procedures preventing any type of unlawful behaviour.

PROHIBITION OF FORCED AND SLAVE LABOUR

We expect our Partners not to use any form of slave or forced

labour, both in Poland and abroad. The work carried out by our

Partners' employees is undertaken voluntarily and may be termi-

nated by them on this basis.

NO CHILD LABOUR

We expect our Partners not to use child labour in any form and to

contribute to the actual abolition of any form of juvenile labour.

When and if we employ any young people, their engagement with

our companies complies with the law.

RIGHT OF ASSOCIATION

We expect our Partners to recognise the employees’ right to as-

sociate and organise and respect this right.

NO TOLERANCE FOR ALCOHOL AND INTOXICANTS IN THE

WORKPLACE

We expect our Partners to not tolerate the presence of any alco-

hol and intoxicants in the workplace.

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RESPECT FOR THE NATURAL ENVIRON-

MENT

COUNTERACTING CLIMATE CHANGES CAUSED BY GREENHOUSE

GAS EMISSIONS

We expect our Partners and their suppliers to counteract climate

changes caused by greenhouse gas emissions, among others, by

reducing these emissions and increasing the efficiency of energy

use. We have adopted ambitious decarbonisation targets to slow

down and ultimately stop the negative climate changes caused by

the emission of greenhouse gases into the atmosphere – we in-

tend to achieve carbon neutrality by 2040.

MINIMISING OTHER ENVIRONMENTAL RISKS

We expect our Partners to minimise other risks related to envi-

ronmental and climate protection, among others, by reducing

other harmful emissions, protecting water quality and resources,

pursuing a policy of rational waste management and thus striving

to ensure that their economic and social activity is environmen-

tally and climate-friendly and contributes to the prevention and

reduction of any negative phenomena in its functioning.

COMPLIANCE WITH ENVIRONMENTAL LAWS AND REGULA-

TIONS

We expect our Partners to comply with the provisions of environ-

mental protection law, in particular, to have all permits and li-

cences required by law and related to their operations, and to ful-

fil all operational and reporting obligations resulting therefrom.

CONDUCTING ECONOMIC ACTIVITY

ETHICAL CONDUCT OF OPERATIONS

We expect our Partners to apply the principles of ethical conduct

in each area of their business and to strive to implement solutions

that build awareness of ethical principles of conduct in the work-

place among their employees and associates.

COMPLIANCE WITH LAW

We expect our Partners to comply with all applicable local and

international laws. In the event that the provisions of local law are

less restrictive than the principles of the Code, we expect our

Partners to apply the principles set out in the Code.

FAIR COMPETITION AND ANTITRUST LAWS

We expect our Partners to act in compliance with all applicable

competition protection regulations, for example, by abstaining

from dumping prices, price fixing or other unlawful arrange-

ments.

COMPLIANCE WITH INTERNATIONAL SANCTIONS

We expect our Partners to comply with international sanctions

imposed on countries, economic operators or natural persons,

and not to conduct any economic activity violating international

restrictions.

ZERO TOLERANCE FOR FRAUD AND CORRUPTION

We expect our Partners to apply a zero-tolerance policy to any

fraud and corruption, regardless of its form. Our partners may

not, directly or indirectly, offer or accept any undue advantage or

promise thereof, including material, financial and personal bene-

fits, unauthorised gifts, etc., in exchange for a specific act or omis-

sion.

HONESTY IN COMMERCIAL ACTIVITIES

We expect our Partners to show honesty in their business activi-

ties, and as part of their daily duties, in relations with their cus-

tomers, counterparties, suppliers and associates.

INFORMATION SECURITY

We expect our Partners to implement and maintain high infor-

mation security standards to enable us to effectively protect con-

fidential information, including any trade/business secrets.

COUNTERACTING CONFLICTS OF INTERESTS

We expect our Partners to avoid and counteract any conflict of

interest that could weaken their credibility, or our trust, or the

trust of third parties in the CIECH Group companies. We expect

our Partners to report any situations that may indicate a conflict

of interest and any cases in which employees or individuals rep-

resenting the CIECH Group companies participate in the Partner's

enterprise or are in any way related to them.

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COLLABORATION FOR SUSTAINABLE DE-

VELOPMENT

We encourage our Partners to work together in order to achieve

the goals and strengthen the values described in the Code, in par-

ticular, in the area of exchanging experience, best practices and

implementing joint activities and projects. We are convinced that

the Sustainable Development Goals can only be attained if all in-

terested parties actively collaborate with one another.

AUDITS

We reserve the right to verify compliance with the standards de-

fined in the Code using internal or external control mechanisms

and to request changes that have been identified during con-

ducted audits.

REPORTING VIOLATIONS

We expect our Partners to report any suspected violations of the

Code using one of the available channels, including anonymous.

KYC (KNOW YOUR CUS-

TOMER/SUPPLIER) VERIFICA-

TION

Starting from October 2021, we verify our suppliers using the KYC

Procedure. The KYC verification complements, supplements and

at the same time confirms the application of the CIECH Group

standards, described in item 8.4 (The Code of the Business Part-

ner of the CIECH Group). Through the KYC procedure, we verify

and confirm that our Partners conduct their activities in accord-

ance with the standards of the Code of the Business Partner of

the CIECH Group, especially in the area of human rights, environ-

mental protection and ethics. The KYC verification of our partners

is the fulfilment of one of the obligations that we included in the

CIECH Group ESG Strategy - "we introduce ESG to our purchasing

procedures - we will examine the status and ESG risk of suppliers

responsible for at least 70% of our expenses by 2023". As of Jan-

uary 2023, the ESG status of suppliers responsible for 64% of the

CIECH Group's expenses was verified.

At the Soda segment, we conduct a KYC verification of Partners

with an annual turnover of ≥ PLN 4 million net or with a transac-

tion value of ≥ PLN 4 million net. In other Business Units and com-

panies, we conduct a KYC verification of Partners with an annual

turnover of ≥ PLN 2 million net or with a transaction value of ≥

PLN 2 million net.

The condition for establishing cooperation with a Partner (conclu-

sion of a contract/annex, placing an order or acceptance of an of-

fer) is a positive KYC result, which is entered in the KYC Base. The

condition for the conclusion of a contract/annex, placing an order

or acceptance of an offer of the Partner entered in the Customer

Base is a positive KYC result. Entities with a negative KYC result

are also entered into the KYC Database. The validity period of the

Partner's KYC verification result depends on the KYC risk assess-

ment and is 6, 12 or 24 months.

In the KYC verification process, we ask Partners to complete the

KYC Form, which has been divided into the following parts:

• General issues - in this section we ask, among others, about

registration data, industries in which the Partner conducts

business, quotations of the Partner's shares on stock ex-

changes, composition of the Partner's group.

• Sanctions - in this section we ask, among others, about the

Partner's activities in the markets covered by international

sanctions, conducting business with persons who are subject

to international sanctions.

• Ethical conduct of business - in this section we ask about

compliance with individual standards of the CIECH Group,

specified in the Code of the Business Partner of the CIECH

Group.

• Principles of ethical business conduct - in this part we ask the

Partner, among other things, to attach its codes of conduct

or its codes of the business partner.

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• Target for reducing CO

emissions - in this section we ask,

among other things, to provide a target for reducing CO

emissions.

• Proceedings related to the ethical conduct of business activ-

ity - in this part, we ask for answers to questions regarding

the proceedings conducted, among others, against the part-

ner or members of its bodies, regarding, among others, mo-

nopolistic practices, prohibited employment practices (mob-

bing, discrimination, youth labour, slave labour), money

laundering and terrorist financing, bribery, or corruption.

In 2022, we verified 132 Partners, all

Partners received a positive KYC result.

For 52 Partners the period of validity of

the KYC result is 24 months, for 80 Part-

ners this period is 12 months. Currently,

there are 187 positively verified and 1

negatively verified entities in the KYC Da-

tabase. The result of the KYC verification

of a given Partner, within the validity pe-

riod, is valid for all companies of the

CIECH Group.

LIST OF INTERNAL PROCEDURE

EMPLOYEE AREA

• Code of Conduct of the CIECH Group,

• Code of the Business Partner of the CIECH Group,

• Information Security Policy of the CIECH Group,

• Procedure - Regulations of the operation of the Ethics Committee of the CIECH Group,

• Anti-fraud and anti-corruption policy of the CIECH Group,

• Procedure - offering and accepting gifts and invitations within the CIECH Group,

• Procedure - Counteracting mobbing and discrimination in the work environment within the CIECH

Group,

• Occupational Health and Safety Policy of the CIECH Group,

• Procedure - managing inspections of authorised bodies, services and authorities,

• Procedure for reporting violations of law, internal regulations and ethical standards applicable within

the CIECH Group,

• Detailed rules and procedure for compliance with the obligation of sobriety by employees within the

CIECH Group.

SOCIAL AREA

• Code of Conduct of the CIECH Group,

• Code of the Business Partner of the CIECH Group,

• Policy of Compliance with Competition Law within the CIECH Group,

• Intellectual Property Protection Policy of the CIECH Group,

• Information Protection Policy of the CIECH Group,

• Policy of Counteracting Conflicts of Interest within the CIECH Group,

• Anti-fraud and anti-corruption policy of the CIECH Group,

• Procedure - managing inspections of authorised bodies, services, and authorities.

ENVIRONMENTAL AREA

• Code of Conduct of the CIECH Group,

• Code of the Business Partner of the CIECH Group,

• Environmental Protection Policy of the CIECH Group.

RESPECT FOR HUMAN

RIGHTS

• Code of Conduct of the CIECH Group,

• Code of the Business Partner of the CIECH Group,

• Intellectual Property Protection Policy of the CIECH Group,

• Information Protection Policy of the CIECH Group,

• Procedure - Counteracting mobbing and discrimination in the work environment within the CIECH

Group,

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• Procedure for reporting violations of law, internal regulations and ethical standards applicable within

the CIECH Group.

ANTI-CORRUPTION

• Code of Conduct of the CIECH Group,

• Code of the Business Partner of the CIECH Group,

• Policy of Compliance with Competition Law within the CIECH Group,

• Policy of Counteracting Conflicts of Interest within the CIECH Group,

• Anti-fraud and anti-corruption policy of the CIECH Group,

• Compliance Policy of the CIECH Group,

• Procedure- offering and accepting gifts and invitations within the CIECH Group,

• Procedure for reporting violations of law, internal regulations, and ethical standards applicable within

the CIECH Group,

• Procedure - rules for monitoring and reporting Compliance Obligations within the CIECH Group,

• Procedure- Regulations of the operation of the Ethics Committee of the CIECH Group.

RULES FOR REPORTING VIOLA-

TIONS

The CIECH Group has implemented and maintains a Procedure for

reporting violations of law, internal regulations/procedures, and

ethical standards applicable within the Group.

The procedure describes the rules for reporting any violations of

law, internal regulations/procedures and ethical principles pre-

vailing within the Group, in particular those contained in the Code

of Conduct of the CIECH Group. Violation is understood as an ac-

tual or potential activity contrary to the law, regulations/proce-

dures or ethical standards as in force within the CIECH Group. We

provide fully anonymous and open communication channels for

reporting such violations. Such fully anonymous reporting chan-

nel is provided by: Linia Etyki Sp. z o.o. This reporting channel en-

ables contact with the whistleblower, while maintaining a fully

anonymous nature of the notification report and any correspond-

ence. The reporting channel is run, among others, in Polish, Eng-

lish, German and Romanian.

Each employee or associate, intern, volunteer, individual partici-

pating in the recruitment process, customer, shareholder, and

member of governing bodies of companies of the CIECH Group

may report a violation in any matter which, in the whistleblower’s

opinion, constitutes or may constitute a breach. In addition, any

business partner of any company from the Group may also report

the violation referred to above. We ensure the protection and an-

onymity of the whistleblower. In special cases, the CIECH Group

protects the whistleblower who is an employee of the CIECH

Group against the action of the management, employees or any

other persons violating the employee’s rights, privacy or any

other forms of retaliation. The process of reporting violations and

providing information related to the examination of a violation

report, analysis of violations and carrying out the explanatory

proceedings shall be strictly confidential.

Explanatory proceedings in cases of violations of laws and regula-

tions are carried out by the Compliance Officer of the CIECH

Group, and in cases of violations of ethical principles and conflicts

of interest – by the Ethics Committee of the CIECH Group, and

when it comes to mobbing/discriminatory behaviour by the Com-

mittee for Counteracting Unlawful Conduct. In 2022, 1 violation

notification report was received.

COUNTERACTING CORRUPTION

AND FRAUD

As an active participant of business transactions, we apply a policy

of zero tolerance for any fraud and corruption, promoting activi-

ties based on ethical values and attitudes and compliance with

the law regulating the issues of counteracting fraud and corrup-

tion wherever we conduct business. This approach builds and

strengthens the reputation of the CIECH Group as a reliable part-

ner acting in a responsible and transparent manner, gaining a

competitive advantage based solely on market criteria: quality,

price and through the innovative nature of the products, services

and solutions offered. Any abuses, including corrupt behaviour,

involve the risk of legal, financial and image liability by the Com-

pany, the management of the CIECH Group, and the employees

themselves.

An anti-fraud and anti-corruption policy has been implemented

which applies within the CIECH Group. As an appendix to this pol-

icy, the Group has developed a procedure for offering and accept-

ing gifts within the CIECH Group. The process of counteracting

fraud and corruption consists in compliance with the require-

ments of this policy by all employees, regardless of the type of

employment contract concluded and the entrusted position, as

well as other stakeholders, including associates, suppliers, sub-

contractors and counterparties.

Under the Procedure for offering and accepting gifts, we do not

give any gifts to government officials. Giving or receiving a gift, as

part of a business relationship, with a value exceeding PLN 200

gross, requires the consent of the immediate supervisor and the

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Compliance Officer of the CIECH Group. Giving and receiving a gift

with a value exceeding PLN 200 gross must be recorded. The rel-

evant gift register is maintained by the Compliance Officer of the

CIECH Group.

CIECH Group employees may not accept any gifts, and in particu-

lar:

• from any counterparty or its related entities during negotia-

tions, in connection with ongoing or planned negotiations,

• from any counterparty or its related entities in connection

with the performance of the contract, including in particular,

in connection with the work acceptance or work perfor-

mance confirmation.

Employees who are responsible for making a decision in a specific

case or participate in any capacity in the decision-making process

related to a specific case, due to their role or official position, may

not accept any gifts from counterparties associated with the case.

We require our counterparties to accept anti-corruption clauses

when entering the tender procedure or when concluding con-

tracts, in which they oblige themselves to adopt the Anti-Fraud

and Anti-Corruption Policy of the CIECH Group.

OBSERVANCE OF HUMAN

RIGHTS

Within the CIECH Group, we place emphasis on promoting ethical

values and behaviour aimed at observance of human rights

among our stakeholders, predominantly our employees and

counterparties. Accordingly, all companies of the Group joined

the Declaration of Adoption of the Standard of the United Nations

Ethical Program, thus committing themselves to comply with in-

ternationally recognised human rights and labour standards, ac-

cording to which they shall, in particular, support and promote

the freedom of association within the CIECH Group and in rela-

tions with the market environment, support the elimination of all

forms of slavery and forced labour and contribute to the effective

abolition of work by adolescents under the age of 18.

• We comply with all applicable laws in terms of working

hours, overtime, pay and other employer’s benefits. Wages

and salaries are paid in a timely manner, in accordance with

the applicable “Remuneration Regulations”.

• We give our employees the freedom to join or withdraw

their membership in trade unions and/or employee repre-

sentation of their choice.

• We appreciate a diverse, inclusive work environment, and

do not discriminate against, or tolerate any discrimination,

on the basis of gender, age, race, religion, disability, sexual

orientation, origin or any other characteristic protected by

law.

• We do not use any type of forced labour. Employees have

control over their identity documents and do not pay any

fees related to obtaining or maintaining their employment.

• Using any physical and/or mental force, including mobbing,

is prohibited.

COMPETITION PROTECTION

The Policy of Compliance with Competition Law within the CIECH

Group defines rules aimed at protecting fair and healthy compe-

tition. In particular, as part of the observance of the principles of

fair competition:

• we avoid making any kind of arrangements, without the con-

sent and knowledge of our Legal Department, with entities

from outside the CIECH Group, in the scope of pricing, sales

and offer policies, production volume, costs and expenses as

well as sales method. This restriction shall also apply to any

contacts and information provided to all types of industry or-

ganisations, chambers of commerce, as well as expressing

opinions on any other economic operator in a non-substan-

tive manner,

• we treat as confidential any information on the pricing, sales

and offer policies, and those that may be used to limit free

competition, such as planned price changes, interest in par-

ticipating in any tender and the content of the tender offer,

and

• we treat our customers and counterparties in a fair and re-

spectful manner. We exclude practices of unjustified privi-

leging or blocking or limiting access to products from the

CIECH Group’s offer.

COUNTERACTING CONFLICTS

OF INTEREST

The Policy of Counteracting Conflicts of Interest within the CIECH

Group defines the rules of procedure aimed at excluding the pos-

sibility of a conflict of interest from the business operations of our

Group. We assume that an employee is in a conflict of interest if,

when acting for their own benefit or for the benefit of any other

person or entity to whom they are obliged, they act against the

interests of the CIECH Group. Such circumstances may threaten

the employee’s impartial and objective performance of official

duties for the CIECH Group due to family, financial, personal,

emotional reasons, as well as political affiliations, economic inter-

ests, or any other situation the existence or occurrence of which

is or may be detrimental to our Group.

In some cases, a conflict of interest may also be regarded as a

manifestation of corrupt behaviour. Accordingly, we take all steps

in order to identify, clarify and manage cases of connections, re-

lations, contacts, evidence of gratitude, as well as transactions or

any other undertakings that may affect, directly or indirectly, the

loyalty and impartiality of decisions made by the employees of

the CIECH Group.

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Where a conflict of interest exists, each employee shall immedi-

ately disclose such circumstances to their immediate supervisor

or the Ethics Committee of the CIECH Group in order to make an

objective and fair decision aimed at eliminating or solving the

problem.

We require our counterparties to accept conflict of interest

clauses when entering into contracts with them.

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ciechgroup.com 118

ABOUT THIS

REPORT

METHODOLOGIES FORMING THE BASIS

FOR PREPARATION OF THIS REPORT

The non-financial report of the CIECH Group for 2022 is our sixth

report in which we comprehensively present our impact in the

social, employee and environmental areas. The previous non-fi-

nancial report of the CIECH Group for 2021 was published on 29

March 2022. The report was prepared in accordance with the in-

ternational non-financial reporting standard, Global Reporting In-

itiative, in the Core Compliance option. In addition, the Report in-

cludes TCFD (Task Force on Climate-related Financial Disclosures)

indicators.

This report also provides information on the implementation of

the principles of the UN Global Compact (Communication on Pro-

gress) and refers to the Sustainable Development Goals (SDGs).

The report has not been subjected to any external audit by an in-

dependent verifier/auditor.

OUR STAKEHOLDERS AND THE MANNER

OF INTERACTING WITH THEM

One of the foundations of the CIECH Group's operations is estab-

lishing and maintaining lasting and effective relationships with

numerous groups of internal and external stakeholders. When

conducting our business, we exert a significant impact, both

short- and long-term, on our closer and further environments. To

assess this impact, we engage in dialogue with our stakeholders

and obtain information on issues which are of interest to them.

Investors Employees

Customers Suppliers

Future Generations

Local Communities

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ciechgroup.com 119

MATERIALITY ANALYSIS

We carry out an analysis to determine which issues are of essence

to our stakeholders, and then openly inform them about our ac-

tivities in these areas and take their expectations into account.

In order to structure and organise our approach to stakeholder

relevant issues, we have adopted the methodology and concept

developed by SASB (the Sustainability Accounting Standards

Board, currently, the International Sustainability Standards

Board), which identified the most important ESG areas that

should be reported. In addition, we analysed our interaction with

different stakeholder groups and reviewed documents published

by our stakeholders and their representative institutions.

Forms of dialogue and obtaining feedback on areas of areas of essence to our stakeholders

Stakeholder

group

Group characteristics

Forms of dialogue and obtaining feedback

Investors

• individuals and institutions that have engaged, or are consid-

ering investing their capital, in the CIECH Group: sharehold-

ers (institutional and individual), potential shareholders as

well as banks and other institutions on the debt capital mar-

ket

• individuals and institutions intermediating and supporting

active participants of the financial market in the analysis and

execution of investment decisions: brokerage houses and of-

fices, industry-specific and financial media

• institutions organising and supervising the financial market,

managing its infrastructure, and participating in the process

of establishing regulations such as: the Stock Exchange, the

Polish Financial Supervision Authority and the Association of

Stock Exchange Issuers

• Information obtained through direct contacts

• Analysis of ESG surveys and questionnaires received by

the CIECH Group

• Analysis of international non-financial reporting stand-

ards, especially GRI, SASB and TCFD

• Analysis of the existing and proposed regulations and

codes of good practice on the Polish market and abroad

Employees

• Individuals employed by the CIECH Group companies, re-

gardless of the type and place of employment and position

held

• In some cases, also individuals employed by suppliers and

subcontractors of the CIECH Group (e.g., working at our pro-

duction plants)

• Potential employees

• Former employees, especially people who retired from

CIECH

• Direct contacts

• Employee opinion survey

• Dialogue with trade unions and employee representa-

tion bodies

• Interactive communication day events providing em-

ployees with ability to directly ask questions to the

Management Board

• Other internal communication tools

Customers

• Current, potential and former customers

• In some cases, also our customers’ clients

• Direct contacts

• Analysis of ESG inquiries, questionnaires and surveys re-

ceived by the CIECH Group

• Customer ESG strategies and reports

• Documents published by industry organisations in which

our customers participate

Suppliers

• Suppliers, service providers and subcontractors

• Direct contacts

• ESG strategies and reports of our suppliers

• Dialogue on compliance with our Code of Business Part-

ners and ESG standards by our suppliers

Local communi-

ties

• Communities at the locations of our production facilities

• Local authorities and local public administration

• Direct contacts

• Consultation processes

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ciechgroup.com 120

Stakeholder

group

Group characteristics

Forms of dialogue and obtaining feedback

Future genera-

tions

• All individuals and institutions who will be our stakeholders

in a long, at least several decades, time perspective.

• Represented through long-term policies of governments, in-

ternational and supranational organisations and the activi-

ties of local, regional and global NGOs

• Analysis of programme documentation and communica-

tions from governments, international organisations,

and supranational NGOs.

• Tracking the results of scientific research and technical

progress in areas like the activities of the CIECH Group

PROCESS

In order to prioritise the areas included in the ESG, we carried out

a detailed materiality analysis. The analysis was performed in De-

cember 2020, and we used it when preparing the reports for 2021

and 2022.

When analysing materiality, we applied the SASB approach.

ESG area materiality analysis

in the CIECH Group

Scope of analysis

As a basis, we adopted the list of ESG areas in the

SASB Standards for the „Resource Transformation”

sector and the chemical industry, which we re-

viewed in terms of the specifics of the CIECH

Group

OUR STAKEHOLDERS’ INTERESTS AND CONCERNS

We verified the level of interest/concern of all

stakeholder groups in particular ESG areas.

FINANCIAL IMPACT AND RISK ASSESSMENT

We assessed the impact of individual ESG areas on:

Revenues/Expenses

Assets/Liabilities

Capital expense/Risk profile

OTHER FACTORS

We also considered: trends in the legal environ-

ment, current and future norms and standards in

our industry and factors influencing long-term

competitiveness, as well as opportunities for inno-

vation.

NON-FINANCIAL REPORT 2022

ciechgroup.com 121

RESULTS OF THE ANALYSIS

Based on the materiality analysis described above, we have se-

lected four areas of priority materiality and eight areas of high

materiality.

Areas of priority materiality:

• Greenhouse gas emissions (GHG Emissions)

• Energy management

• Water and Wastewater management

• Employee Health and Safety and Critical Incident Risk Man-

agement

Areas of high priority:

• Air Quality

• Waste and Hazardous Material Management

• Community Relations

• Employee Engagement, Corporate Culture and Labour Rela-

tions

• Product Quality and Safety

• Business Ethics

Priority materiality areas are of great interest to our stakeholders

or have a great impact on our current or future financial results.

High materiality areas are also of interest to our stakeholders and

have a financial impact, however, at a level noticeably lower than

priority areas. The priority and high materiality areas are pre-

sented in this report.

Those areas which do not classify as priority or high materiality

areas have not been described in this report. This does not entail

that they are not significant for the operations of the CIECH

Group. It only means that according to our assessment, their

presentation in this report would bring little benefit or informa-

tive value for our stakeholders.

CHANGES IN RELATION TO THE PREVI-

OUS VERSION

The materiality analysis of the CIECH Group remains unchanged

compared to 2021.

NON-FINANCIAL REPORT 2022

ciechgroup.com 122

INDEXES

GRI CONTENT INDEX

GRI Standard

Title

Page

102-1

Name of the organization

102-2

Activities, brands, products, and services

8-19

102-3

Location of headquarters

102-4

Location of operations

6-7

102-5

Ownership and legal form

105-127

102-6

Markets served

102-7

Scale of the organization

2, 6, 7, 107

102-8

Information on employees and other workers

72-88

102-9

Supply chain

10, 13, 17, 19

102-10

Significant changes to the organization and its supply chain

n/a

102-11

Precautionary Principle or approach

Is not applied

102-12

External initiatives

102-13

Membership of associations

99-101

102-14

Statement from senior decision-maker

4-5

102-15

Key impacts, risks, and opportunities

24-30

102-16

Values, principles, standards, and norms of behavior

7, 107-117

102-17

Mechanisms for advice and concerns about ethics

115

102-18

Governance structure

105-106

102-19

Delegating authority

105-106

102-20

Executive-level responsibility for economic, environmental, and social topics

24, 105-106

102-24

Nominating and selecting the highest governance body

105

102-40

List of stakeholder groups

119-120

102-41

Collective bargaining agreements

102-42

Identifying and selecting stakeholders

118-120

102-43

Approach to stakeholder engagement

118-120

102-44

Key topics and concerns raised

119-121

102-45

Entities included in the consolidated financial statements

102-46

Defining report content and topic boundaries

118,120

102-47

List of material topics

121

102-48

Restatements of information

35-52

102-49

Changes in reporting

121

102-50

Reporting period

118

102-51

Date of most recent report

118

102-52

Reporting cycle

118

102-53

Contact point for questions regarding the report

125

102-54

Claims of reporting in accordance with the GRI Standards

118

NON-FINANCIAL REPORT 2022

ciechgroup.com 123

TABLE OF COMPLIANCE WITH THE REQUIREMENTS OF THE AC-

COUNTING ACT

GRI Standard

Title

Page

102-55

GRI content index

122-123

201-4

Financial assistance received from government

104

205

Anti-corruption

115-116

206

Anti-competitive behavior

116

302

Energy

46-50

302-1

Energy consumption within the organization

48-50

302-4

Reduction of energy consumption

303

Water and effluents

51-52

303-1

Interactions with water as a shared resource

303-2

Water withdrawal

51-51

303-3

Water discharge

51-52

305

Emissions

32-45

305-1

Direct (Scope 1) GHG emissions

33-41

305-2

Energy indirect (Scope 2) GHG emissions

33-41

305-5

Reduction of GHG emissions

35-36

305-7

Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions

42-45

306-1

Waste generation and significant waste-related impacts

52-53

306-2

Management of significant waste-related impacts

52-53

306-3

Waste generated

52-53

308-1

New suppliers that were screened using environmental criteria

113-114

401

Employment

72-88

401-1

New employee hires and employee turnover

85-87

401-2

Benefits provided to full-time employees that are not provided to temporary or part-time employees

403

Occupational health and safety

89-98

403-1

Occupational health and safety management system

90-92

403-2

Hazard identification, risk assessment, and incident investigation

403-4

Worker participation, consultation, and communication on occupational health and safety

93-94

403-5

Worker training on occupational health and safety

403-8

Workers covered by an occupational health and safety management

system

403-9

Work-related injuries

404-2

Programs for upgrading employee skills and transition assistance programs

78-80

Issue

Page

Description of the business model

107

Key non-financial performance indicators

2, 35-41, 42-45, 48-50, 51-54, 85-88,96

Description of policies and outcomes of their application with regard to the following issues:

Social

99-104

Employee-related

72-88

Natural environment

31-53

Observation of human rights

116

Counteracting corruption

115-116

Non-financial risks and description of risk management

66-71

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ciechgroup.com 124

STATEMENT OF

THE MANAGE-

MENT BOARD

This non-financial report of the CIECH Group for 2022 was

approved by the Management Board of the Company

on 23 March 2023.

Warsaw, 23 March 2023.

(signed on the polish original)

Dawid Jakubowicz

Jarosław Romanowski

Kamil Majczak

President of the Management Board

of CIECH Spółka Akcyjna

Member of the Management Board of CIECH

Spółka Akcyjna

Member of the Management Board

of CIECH Spółka Akcyjna

For more information on the content described in

this report, please contact our Investor Relations

and ESG Department employees:

Magdalena Cumanis

magdalena.cumanis@ciechgroup.com

Anna Zieja

anna.zieja@ciechgroup.com

Natalia Wojnarowska

natalia.wojnarowska@ciechgroup.com.