Report scope and boundary, applicable standards and guidelines

This report was prepared in the Core version.[102-52] It presents data for two years (2016–2017), unlike the previous reports, which covered annual periods.

Report scope and boundary, applicable standards and guidelines

[102-45] This report describes the non-financial activities and performance of the four key companies of the Grupa Azoty Group:

• Grupa Azoty S.A. of Tarnów (the parent),
• Grupa Azoty Zakłady Azotowe Kędzierzyn of Kędzierzyn-Koźle (Grupa Azoty Kędzierzyn; ZAK),
• Grupa Azoty Zakłady Azotowe Puławy of Puławy (Grupa Azoty Puławy),
• Grupa Azoty Zakłady Chemiczne Police of Police (Grupa Azoty Police).

In addition to the companies listed above, seven other companies are included in the consolidated financial statements (subsidiaries of Grupa Azoty S.A.): Grupa Azoty ATT Polymers GmbH (Guben, Germany), Grupa Azoty Polskie Konsorcjum Chemiczne Sp. z o.o. (Tarnów), Grupa Azoty Koltar Sp. z o.o. (Tarnów), Grupa Azoty Kopalnie i Zakłady Chemiczne Siarki Siarkopol (Grzybów), Grupa Azoty Folie Sp. z o.o., Grupa Azoty Compounding Sp. z o.o. and Navitrans Sp. z o.o. (Gdynia, an indirectly controlled subsidiary). The financial data in this report have been taken from the consolidated financial statements of the Grupa Azoty Group.

[102-56] In order to exercise due care, a third-party expert (Deloitte Advisory Sp. z o.o.) was engaged to assist in the preparation of this report, which was then verified by an independent auditor Ernst & Young Audyt Polska Sp. z o.o. Sp. k.

Financial data sourced from the financial statements have been audited by independent auditors (by KPMG Audyt Sp. z o.o. in 2016, and by EY Audyt Polska Sp. z o.o. Sp.k. in 2017).

Approximately 70 employees of the four key Group companies were involved in the process of collecting data.

[102-49] The report scope and boundary, as well as methods of measurement, were not subject to any major changes.

Report drafting process

[102-46] In late February and early March 2018, we carried out an anonymous survey among our employees. Covering 417 employees, the survey was designed to gauge their opinions about key areas of the Grupa Azoty Group’s responsibility towards its environment. The survey was anonymous and lasted 15 days (from February 27th to March 13th 2018). Additionally, on February 27th 2018, a dialogue session was held in Tarnów. It was attended by representatives of Grupa Azoty S.A.’s key external stakeholder groups:

• the municipal authorities,
• the county authorities,
• public cultural centres,
• social institutions,
• trading partners,
• customers,
• farmers.

During the meeting, aspects of low, medium and high relevance were identified. The aspects of low relevance, providing no measurable added value for the organisation and recipients of this report, were disregarded.

This year’s report covers the following non-financial aspects: