The KGHM Group perceives the occurrence of significant climate changes caused by an increase in average temperatures. We are also aware of the fact that the main cause of this process is the growing emission and accumulation of greenhouse gases (GHG) in the atmosphere (according to the IPCC scientific consensus). This disturbed the natural circulation of these gases, consisting in their emission being balanced by the level of assimilation in the environment. As a result, in particular in recent years, we have observed an increased dynamics of the so-called greenhouse effect. These phenomena cause the occurrence of dynamic weather events (thunderstorms, rainstorms, hurricanes, droughts) and climate changes (increase in the average annual temperature, decrease in the average precipitation, and further lowering of water tables as well as the progressing steppe formation).
Feeling responsible for the way of conducting its business activity, the KGHM Group is commencing work on slowing down the pace of the adverse climate changes. By this, we are joining global actions of the international community as well as individual countries and companies aiming to achieve the sustainable development goals which are part of the so-called 2030 Agenda for Sustainable Development adopted by the UN.
We will ultimately perform these actions in a fully systematic manner, as recommended in the Communication of the European Commission. It has established guidelines on non-financial reporting: Supplement on reporting climate-related information (2019/C 209/01), including an Annex on Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), in the part applicable to the Metals and Mining sector. Despite the non-compulsory, till now, nature of the documents listed above, the Group commenced work for the introduction of the resulting systematic actions and reporting method.
Their point of departure was to determine the significance of the information related to climate for the KGHM Group. Based on the guidelines set by the experts from the AGH University of Science and Technology and using a reporting factor significance examination tool, we have determined the level of significance of the information related to climate to be very high for the KGHM Group. We have also pointed out that its significance will continue at the same level in the short, medium, and long term as well as in the entire value chain of the KGHM Group.
Defining each timeframe, we have assumed the following: