LOTOS

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As one of the 20 largest companies listed on the Warsaw Stock Exchange, Grupa LOTOS was included in Central and Eastern Europe’s first index of social responsibility: RESPECT. November 19th 2009 marked the first listing of the new index, which then comprised 16 companies with an A rating.

RESPECT is a project which aims to promote the highest standards of responsible management. Therefore, the Company’s inclusion in the index is a confirmation that the market not only recognises but also appreciates our initiatives in sustainable development and social responsibility. The high rating proves that the LOTOS Group’s CSR strategy effectively supports the delivery of its business objectives and is appreciated by investors. That has been our long-term objective – to put in place the highest international standards of management in the areas relevant to winning social acceptance for our business. Submission to additional evaluation by the capital market is consistent with our adopted policy of transparency and reliability in relations with key stakeholders.

The process of qualifying companies to the RESPECT Index is three staged: (i) first, companies are selected against the investability criterion; (ii) then, corporate governance and investor relations criteria are applied; and (iii) finally, a company’s CSR management system is analysed. 

An investable company is one:

  • with the highest trading liquidity, i.e. one whose stock has generated the highest value of stock-exchange trading;
  • with the highest ownership dispersion, i.e. one with the highest proportion of investors each holding less than 5% of the share capital;
  • included in the WIG20, mWIG40 or sWIG80 index.

The second stage of the qualification process includes an analysis of:

  • the reporting procedures, number and severity of penalties imposed by the Polish Financial Supervision Authority and rules for implementing best practices;
  • the corporate website, scope of information disclosed on the website, its accessibility, other language versions, response time etc.

In the final stage of the assessment, a company covered by the process fills in a questionnaire confirming that it has implemented best CSR practices in managing the organisation. The questionnaire, verified by an audit firm, serves to assess the following aspects:

 

CSR policy

• CSR strategy and the company’s initiatives in the CSR area;
• Person responsible for CSR activities;
• CSR reports;
• Non-mandatory commitments, rules or codes adhered to by the company and relating directly to social, economic or environmental matters.

Management system

• System of internal control and risk management;
• Code of Ethics;
• The company’s CSR requirements for suppliers (ethics-related contractual clauses, audits);
• Dialogue with stakeholders.

Environmental management

• Environmental policy;
• Steps taken by the company to monitor and reduce the consumption of raw and other materials, fuels, energy and water;
• Non-mandatory recycling and waste segregation.

HR policy

• HR policy;
• Accident rate;
• System of non-financial incentives for employees;
• Employee satisfaction surveys.

Market and customers

• Management system for complaints and grievances;
• Code of advertising ethics;
• Management system for personal data and privacy protection;
• Penalties imposed, including for anti-competitive or monopolistic practices.

 

RESPECT Index calendar:

November 19th 2009 − Results of the first RESPECT Index survey are announced; 16 companies are included in the index.

July 2010 − Frequency and method of the survey are changed: only the most liquid companies are surveyed, semi-annually.

January 2011 − Index quotation frequency is changed from three times a day to every minute during continuous trading sessions; results of the second survey are announced; 16 companies are included in the index.

July 2011 − CSR questionnaire for professional market participants; results of the third survey are announced; 22 companies are included in the index.

January 2012 − Results of the fourth survey are announced; 23 companies are included in the index.

July 2012 − Results of the fifth survey are announced; 20 companies are included in the index.