Integrated Report of KGHM Polska Miedź S.A.
and the KGHM Polska Miedź S.A. Group
for 2020

Foundations, sponsorship and CSR activities in the KGHM Polska Miedź S.A. Group

KGHM is a “good neighbour and trustworthy investor”. It supports local communities, social organisations and institutions related to science, culture and sport. It promotes an active lifestyle and helps people in need.

The year 2020 taught us how to deal with unexpected situations. The “Copper Heart” employee volunteerism program has been operating in KGHM POLSKA MIEDŹ S.A. since 2014 and this year it showed that we can count on the noble hearts of KGHM employees. In 2020, the volunteers, while complying with the sanitary requirements, supported senior citizens, prepared food parcels and collected money for those in need. This required exceptional commitment.

Lidia Marcinkowska-Bartkowiak
Executive Director for Communication

One of the pillars of our efforts in the area of corporate social responsibility is the KGHM Polska Miedź Foundation which is engaged in pro publico bono and charitable activities. It helps in performance of socially useful projects, and it supports the people who are experiencing hardships.

KGHM Polska Miedź Foundation

The KGHM Polska Miedź Foundation was established in 2003 to continue the tradition formed over many years of pro publico bono activity conducted by its Founder, i.e. KGHM Polska Miedź S.A. and implement local and regional initiatives and projects with a national and global reach. The Foundation’s day-to-day activities are informed by the values held by the Founder, which include zero harm, teamwork, results driven, accountability and courage. The basis for the operation of the KGHM Polska Miedź Foundation are financial and material donations granted to:

  • individuals in the field of health care and natural disaster relief;

 

  • institutions for project execution.

The projects pursued by the KGHM Polska Miedź Foundation in 2020 were a natural continuation of its activities to date and a result of program changes agreed in the course of consultations between the Management Board and the Supervisory Board of the Foundation and the corporate bodies of the Founder, KGHM Polska Miedź S.A. The Foundation’s activities focused on granting donations and overseeing how they are spent as well as on running social support programs. The commitments undertaken by the Foundation in 2020 were carried out with utmost care, following an in-depth analysis of the submitted requests and with a detailed consideration of the capacity to help, in pursuit of the Foundation’s goals in four main areas:

Health and safety
Sports and recreation
Culture and tradition
Science and education

In 2020, the KGHM Polska Miedź Foundation made every effort to identify various social needs, in line with the assumptions of its articles of association and within its capabilities. The support, in the form of monetary and material donations, reached the total amount of PLN 25,097,363.68, of which

390
institutions received
PLN 24,393,753.09
sum of donations

and:

74
individuals
PLN 703,610.59
sum of donations

as shown in detail in the table below:

Financial support awarded by the KGHM Polska Miedź Foundation in 2020

No. AREA Donations

Amount awarded PLN

Number projects/individuals
DONATIONS FOR INSTITUTIONS 24,393,753.09 390
1. HEALTH AND SAFETY 8,314,769.20 69
1.1. “COVID-19 Countermeasures” Campaign 2,419,517.91 134
2. SCIENCE AND EDUCATION 3,501,217.16 51
3. SPORTS AND RECREATION 2,027,508.51 35
4. CULTURE AND TRADITION 8,130,740.31 101
DONATIONS FOR INDIVIDUALS 7 ,030,59 74
1. HEALTH CARE 7,030,59 74
2. SOCIAL ASSISTANCE
TOTAL DONATION AMOUNT PLN 25,097,363.68

Within the “Health and Safety” area, the KGHM Polska Miedź Foundation provides financial support to healthcare institutions and private individuals. Most of the funds are used to purchase state-of-the-art equipment and specialist medical apparatuses for hospitals, rehabilitation centres and other healthcare facilities. This resulted in significant improvement of quality and effectiveness of pro-health prophylaxis. As regards health protection, the Foundation’s activities are not reduced merely to provision of equipment to healthcare facilities but it also finances preventive examinations for residents as well as initiates and supports projects promoting blood donation and hemotherapy, and co-funds scientific conferences in the field of medicine. Individuals receive financial aid from the KGHM Polska Miedź Foundation for health care, including in particular: purchase of hearing aids and wheelchairs, medicines, surgical treatment, including treatment abroad, and inpatient rehabilitation.

With the wellbeing and safety in view, the KGHM Polska Miedź Foundation is involved also in numerous projects and actions related to public safety. Modern rescue and fire-fighting equipment and special vehicles for local emergency rescue facilities, e.g. fire and police stations. State-of-the-art equipment contributes to increased safety and enables efficient operation of institutions that protect our life, health and property. As part of its social activity, the KGHM Polska Miedź Foundation tries to counteract social exclusion of people and families that found themselves in a difficult life situation. Cash donations are made for projects related to organisation of Christmas actions for those in need, e.g. Christmas Eve for the homeless or gifts for children.

In 2020, due to the epidemic situation related to the spread of SARS-CoV-2 virus, “Health and Safety” became the priority area of the KGHM Polska Miedź Foundation’s operations. The majority of donations was granted in this area. 74 individuals received funds in the total amount of PLN 703,610.59 and co-financing was provided to 69 projects in the total amount of PLN 8,314,769.20.

Moreover, concerned about the safety and health of the society, the Foundation’s Management Board initiated the “COVID-19 Countermeasures” Campaign in 2020, assuming the purchase and in-kind donation of means necessary for preventing, counteracting and fighting the SARS-CoV-2 virus and COVID-19. In-kind donations with the total value of PLN 2,419,517.91 were provided to 134 institutions, including:

  • 16 voivodeship offices, which forwarded the received in-kind donations to 1,038 institutions operating in individual voivodeships,
  • – 22 voivodeship or poviat hospitals and healthcare facilities,
  • complexes of schools located in the Copper Basin,
  • 44 city and municipal social assistance centres and local authority units, Caritas branches, social assistance homes, hospices, foundations and other entities caring for the elderly and disabled and acting for the benefit of local communities.

The following were given as part of in-kind donations:

  • 107,810 litres of Nitrosept disinfectant,
  • 440,880 sachets of Nitrosept disinfectant,
  • 43,800 protective masks,
  • 1,485 protective suits,
  • 250 medical visors,
  • 20 protective goggles,
  • 3 ventilators.

For the purpose of preventing, counteracting and fighting the COVID-19 contagious disease, the financial donations given to institutions were related to financial support for the purchase of specialist equipment, i.e. ventilators, patient monitors, oxygen cylinders, the provision of equipment for the diagnostic line for laboratory tests, thermal imaging cameras, equipment of performance of tests to increase the diagnostic capacities, and for the purpose of personal protective equipment, provision of additional meals to healthcare practitioners, support for seniors during the COVID-19 pandemic in the form of packages with food products, consumer chemicals and medical products.

In the “Science and Education” area, the KGHM Polska Miedź Foundation focuses on promoting these domains. Support from the KGHM Foundation is received by educational facilities, which purchase teaching aids for the received funds, thereby contributing to an increased education level. Scientific projects supported by the Foundation include also scientific publications or organisation of scientific conferences, contests, as well as educational and integration classes for children and youth.

Science and education is the area of comprehensive actions of the KGHM Polska Miedź Foundation to support the development of education, science, and economy based on knowledge, innovation, social capital, and learning society. As part of a broad range of initiatives, the amount of PLN 3,501,217.16 was spent to run 51 projects in 2020.

In the “Sports and Recreation” area, the KGHM Polska Miedź Foundation supports all actions for the development of physical activity of young people undertaken by local institutions, associations and sports clubs. The cash donations provided by the Foundation enabled the purchase of sports equipment and delivery of numerous sport training courses, various tournaments and competitions, and establishment of new recreational and sports facilities, such as outdoor gyms. Moreover, some of the funds were dedicated to co-funding the organisation of summer and winter holidays for children and youth by local divisions of the Society of the Friends of Children (TPD), the Polish Scouting and Guiding Association (ZHP), associations, orphanages, and churches. The participants are mainly children and youth from underprivileged, dysfunctional, and poor families, who, thanks to the Foundation’s support, have the opportunity to go to the seaside or the mountains for the first time in their lives and learn about another culture.

Sports and recreation is the area of operation for the KGHM Polska Miedź Foundation which supports all sports initiatives and popularizes social attitudes and behaviours based on values propagated by physical culture and sport. In 2020, the amount of PLN 2,027,508.51 was expended on the execution of 35 projects.

The Foundation considers popularisation of physical culture and sport as well as education in preventive health care an important field of social life and therefore intends to continue activities promulgating an active and healthy lifestyle.

The “Culture and Tradition” area is a very important part of the KGHM Polska Miedź Foundation’s activities, in which the Foundation supports projects cultivating mining and smelting traditions, commemorating Polish cultural and historical heritage and strengthening local cultural identity at the local, regional and national levels. The supported projects entail rescuing cultural heritage and tradition and contribute to a considerable improvement of the condition of many historic buildings, even saving some from collapse. To support culture and art, the KGHM Polska Miedź Foundation also provides financial aid to diverse artistic and cultural events organised by various associations, cultural societies, cultural centres and museums.

The Foundation respects the cultural heritage of previous generations, as it forms the basis for building identity; its overriding value is supporting traditions of communities and traditions cultivated by various social, religious and cultural groups. In 2020, it co-financed 101 projects in the area of culture and tradition with the total amount of PLN 8,130,740.31.

KGHM Polska Miedź S.A. Health Promotion And Environmental Hazards Prevention Program

The program has been implemented for four years in cooperation with an external company. In 2020, PLN 127,520.00 was allocated to this program, which supported 49 people from towns neighbouring the future Southern Quarter of the Żelazny Most Tailings Storage Facility, who took winter vacation in February 2020.

Because of the epidemic situation in Poland and the spread of the SARS-CoV-2 virus, in the 2020/2021 school year, the Management Board of the KGHM Polska Miedź Foundation suspended the organisation of group prevention and health trips for children and youth as part of the Foundation’s statutory activity and the Health Promotion and Environmental Hazards Prevention Program. The measures undertaken by the Foundations resulted from its care for the safety and health of the participants, their families and all the people involved in the organisation of prevention and health trips for children and youth.

In connection with the significant interest shown both by the participants and the local community, the Management Board of the Foundation hopes that, in the academic year 2021/2022, it will be able to restore the program, which has been a long-term staple of the KGHM Polska Miedź Foundation’s statutory activity.

More information on the activity and projects of the KGHM Polska Miedź Foundation may be found at foundations site. 

Revimine innovation and cultural heritage foundation

The Revimine Foundation was established in 2014 by KGHM Polska Miedź S.A. In 2020, the foundation supported undertakings counteracting the effects of the SARS-CoV-2 virus epidemic, social initiatives in the Copper Basin area, local tourism by launching the naMIEDZI mobile app and development of competences of young people entering the labour market.

Sponsorship

KGHM’s sponsorship strategy is closely associated with the activity pursued in the area of Corporate Social Responsibility (CSR) and assumes that most funds will be allocated to the performance of the planned actions for promoting the Company and the region on the one hand and for supporting valuable cultural, sports, scientific, and social initiatives and undertakings contributing to Lower Silesia marking its presence on the map of Poland and Europe on the other hand.

Efficient operation of important cultural or scientific institutions today depends largely on the support from sponsors. Without support from companies such as KGHM, many valuable projects would have no chance of successful completion.

The areas falling within the scope of KGHM Polska Miedź S.A.’s sponsorship activity are culture, science, and sports.

The Company considers sport an important area of social life and therefore it supports both top-class professional sports and amateur sports. As the largest employer in the region, it appreciates the significance of sport in forming the culture of leisure for adults and its educational role for youth. The Parent Entity is the major sponsor and at the same time the owner of Zagłębie Lubin S.A., a football team playing in the top Polish football league (which is the top league in Poland).

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

KGHM Polska Miedź S.A. is perceived as a patron of culture and art. It participates in organisation of significant projects addressed to the society in the region and the whole country and takes patronage over them. In 2019, KGHM took patronage over the Royal Castle in Warsaw, which was inaugurated by the exhibition “To rule and to dazzle. Jewels and jewellery in Poland in the 16th and 17th centuries”. The patronage was continued in 2020.

As regards science, KGHM Polska Miedź S.A. supports higher education institutions and scientific institutes, thus tightening cooperation and building a bridge between the industry and the academia. The Company provides financial and subject-matter aid to projects thematically related to the problems solved to meet the needs of KGHM and the region.

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

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

Amounts granted by KGHM Polska Miedź S.A. through its Sponsorship function in 2020, by area:

28,977,000

Sport

6,357,000

Culture

1,477,110

Science

36,811,110

Total

The amount spent by the KGHM Group companies (excluding the Parent Entity) as part of its Sponsorship activity in 2020 was:

Companies in Poland KGHM International Total
Sponsorship 64,546 61,692 126,238
Donations 902,797 470,235 1,373,032
Total 967,343 531,927 1,499,270

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