Taxonomy

The EU Taxonomy as a classification system has established a list of environmentally sustainable economic activities. An environmentally sustainable activity is one that makes a substantial contribution to one or more of the following six environmental objectives:

• 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 biodiversity and ecosystems.

Moreover, such activities may not cause any significant harm to any of the other objectives (the ‘do no significant harm’ principle), while ensuring that the minimum safeguards are complied with. The criteria for making a substantial contribution to one or more of the six environmental objectives and the ‘do no significant harm’ principle are defined through the technical screening criteria laid down in the Taxonomy delegated acts (Delegated Regulation 2021/2139 and Delegated Regulation 2022/1214), while the minimum safeguards include the implementation of due diligence procedures as defined by 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 conventions identified in the International Labor Organization’s Declaration on fundamental principles and rights at work and the principles and rights set forth in the International Charter of Human Rights.

Pursuant to Article 10(4) of Delegated Regulation 2021/2178, an analysis of the Taxonomy alignment is required with respect to Taxonomy disclosures published as of January 1st 2023 and covering information for 2022. Mandatory disclosures of non-financial undertakings refer to key performance indicators and accompanying information as defined in Annexes I, II and XII to the Regulation. Key performance indicators refer to the proportion of the Taxonomy-aligned economic activities, Taxonomy-eligible activities that are not Taxonomy-aligned, and Taxonomy-non-eligible activities within the three indicators:

• turnover,
• capital expenditures (CapEx),
• operating expenses (OpEx).

Disclosures regarding the Taxonomy alignment cover, at the date of this report, only the first two environmental objectives, i.e. climate change mitigation and climate change adaptation, for which the delegated acts establishing the technical screening criteria and the ‘do no significant harm’ principle have been published. Qualitative disclosures on accounting policies, assessment of compliance with Regulation 2020/852, and contextual information are also required.

Accounting policies

Key performance indicators include: the proportion of the Taxonomy-aligned economic activities, Taxonomy-eligible activities that are not Taxonomy-aligned, and Taxonomy-non-eligible activities in total turnover, capital expenditures (CapEx) and operating expenses (OpEx), hence the key importance of correct calculation of the numerator and denominator of these indicators.

Pursuant to Annex I to Delegated Regulation 2021/2178, as part of disclosures regarding accounting policies, non-financial undertakings should explain how turnover, capital expenditures (CapEX) and operating expenses (OpEx) were determined and allocated to the numerator, and the basis on which the turnover, capital expenditures and operating expenses were calculated, including any assessment in the allocation of revenues or expenditures to different economic activities. The Grupa Azoty Group’s accounting model is compliant with the International Accounting Standards and the International Financial Reporting Standards (IAS/IFRS) endorsed by the European Union, which are expressly referred to in Delegated Regulation 2021/2178. This enabled correct identification of the amounts (expressed in figures) comprising the denominator of the key performance indicators for turnover, capital expenditures (CapEX) and operating expenses (OpEx) and then, within each of these indicators, the allocation of the value of Taxonomy-aligned activities (numerator) and that of Taxonomy-eligible activities that are not Taxonomy-aligned, and Taxonomy-non-eligible activities. 

This is how Delegated Regulation 2021/2178 describes the three key performance indicators for turnover, capital expenditures (CapEx) and operating expenses (OpEx):

Turnover

The denominator includes revenue consistent with the disclosure in the consolidated financial statements as at December 31st 2022. Revenue recognised in accordance with International Accounting Standard (IAS) 1.82(a) is considered turnover as defined in Article 2(5) of Directive 2013/34/EU of the European Parliament and of the Council of June 26th 2013, which defines it as “the amounts derived from the sale of products and the provision of services after deducting sales rebates and value added tax and other taxes directly linked to turnover”.

The numerator equals to the part of net turnover derived from the sale of products or the provision of services, including intangibles, associated with Taxonomy-aligned economic activities. 

The numerator equals to the part of net turnover derived from the sale of products or the provision of services. 

Capital expenditures (CapEx)

The denominator covers additions to tangible and intangible assets during the financial year considered before depreciation, amortisation and any re-measurements, including those resulting from revaluations and impairments, for the relevant financial year and excluding fair value changes. The denominator also includes additions to property, plant and equipment and intangible assets resulting from business combinations. Also under this item the Group recognises increases in right-of-use assets resulting mainly from its entry into new lease contracts as a lessee and additions to property classified by the Group as investment property. 

The individual values are presented in the consolidated financial statements as at December 31st 2022 in the following line items: Property, plant and equipment (note 9) and Intangible assets (note 12): increase due to purchase, production, commissioning, decrease due to commissioning; Investment property (note 11): increase due to purchase, production, subsequent expenditure, increase due to accounting for business acquisition, decrease due to commissioning; Right-of-use assets (note 10): increase due to execution of new contracts, decrease due to commissioning.

The numerator equals to the part of capital expenditures (CapEx) related to assets or processes associated with Taxonomy-aligned economic activities, related to the purchase of output from Taxonomy-aligned economic activities, or when it is part of a plan to expand the undertaking’s Taxonomy-aligned economic activities or to upgrade Taxonomy-eligible economic activities to render them Taxonomy-aligned. 

Operating expenses (OpEx)

The denominator covers direct non-capitalised costs that relate to research and development, building renovation measures, short-term lease, maintenance and repair, and any other direct expenditures relating to the day-to-day servicing of assets of property, plant and equipment by the undertaking or third party to whom activities are outsourced that are necessary to ensure the continued and effective functioning of such assets.

The denominator does not include any other expenditures in the other direct expenditures category.

The numerator equals to the part of operating expenses (OpEx) related to assets or processes associated with Taxonomy-aligned economic activities, related to the purchase of output from Taxonomy-aligned economic activities, or when it is part of a plan to expand the undertaking’s Taxonomy-aligned economic activities or to upgrade Taxonomy-eligible economic activities to render them Taxonomy-aligned.

Assessment of compliance with Regulation 2020/852

Mandatory EU Taxonomy disclosures apply to undertakings that meet the criteria specified in Article 19a or 29a of Directive 2013/34/EU. As an entity that is subject to the obligations under the Directive and prepares non-financial reports in accordance with the Accounting Act, the Grupa Azoty Group is obliged to make Taxonomy disclosures for 2022. The reporting of Taxonomy disclosures by the Group is compliant with Regulation 2020/852 and the three delegated acts: Delegated Regulation 2021/2139, Delegated Regulation 2021/2178 and Delegated Regulation 2022/1214.

In order to make the disclosures and calculate the required key performance indicators, the Grupa Azoty Group performed a two-stage analysis. 

In the first stage, Taxonomy-eligible economic activities were identified. While performing the analysis, the Group relied on the previous year’s experience, when it was obliged to disclose eligibility information pursuant to Article 10 of Commission Delegated Regulation (EU) 2021/2178 – in the case of Grupa Azoty, these were disclosures covering the period January 1st–December 31st 2021. Similarly to the previous year, all activities described in the Delegated Regulations were analysed in terms of the Group’s revenues. Descriptions of economic activities contained in Delegated Regulation 2021/2139 (establishing the technical screening criteria for the activities as laid down therein) and Delegated Regulation 2022/1214 (establishing the technical screening criteria for nuclear energy and fossil gas activities) were used to identify turnover from eligible activities. As revenues were analysed at the level of individual Group companies, each revenue item was used only once. For the purposes of calculating the key performance indicators for capital expenditures and operating expenses (CapEx and OpEx KPIs), the relevant expenditures on assets and processes were analysed and the associated business activities, as described in Delegated Regulation 2021/2139 and Delegated Regulation 2022/1214, were identified. As the analysis was conducted individually for each item of the expenditures at all the Group companies, no item of the expenditures was used more than once. 

In the second stage, the Taxonomy-eligible economic activities identified within the key performance indicators for turnover, capital expenditures (CapEx) and operating expenses (OpEx) were assessed for compliance with the technical screening criteria and the ‘do no significant harm’ principle, and it was determined whether the requirements for minimum safeguards were met. The analysis conducted individually for each item within the key performance indicators for turnover, capital expenditures (CapEx) and operating expenses (OpEx) at all of the Grupa Azoty Group companies ensures that each item of revenues, capital expenditures and operating expenses was used in the calculations only once.

The activities identified by the Grupa Azoty Group as Taxonomy-aligned were matched to one of the two environmental objectives covering the technical screening criteria, i.e. climate change mitigation or climate change adaptation. However, as the Grupa Azoty Group companies reported the key performance indicator for capital expenditures (CapEx), it was noted that activity 5.1. related to the construction, extension and operation of water collection, treatment and supply systems makes a substantial contribution to two environmental objectives. The analysis found that activity 5.1. carried out within that scope by the Grupa Azoty Puławy Group made a substantial contribution to climate change mitigation, while activity 5.1. carried out within that scope by the Grupa Azoty Police Group made a substantial contribution to climate change adaptation. Otherwise, the activities reported by the Grupa Azoty Group companies made a substantial contribution to the environmental objective of climate change mitigation.

Analysis of the Grupa Azoty Group’s activities for the EU Taxonomy alignment

The Taxonomy-aligned economic activities have been identified at the following companies of the Grupa Azoty Group:

• Grupa Azoty S.A.
• Grupa Azoty Zakłady Azotowe Puławy S.A.
• Grupa Azoty Koltar Sp. z o.o.
• Grupa Azoty Zakłady Azotowe Kędzierzyn S.A.
• Grupa Azoty Zakłady Chemiczne Police S.A.
• Grupa Azoty Kopalnie i Zakłady Chemiczne Siarki Siarkopol S.A.
• Grupa Azoty Jednostka Ratownictwa Chemicznego Sp. z o.o.
• Grupa Azoty Zakłady Fosforowe Gdańsk Sp. z o.o.

Company-specific data was collected and analysed by departments responsible for reporting data by business line. Responsibility for the data collection and aggregation rested with the Consolidation Unit of the Group’s Corporate Controlling Department. 

The analysis for compliance with the requirements of the technical screening criteria and the ‘do no significant harm’ principle was carried out by the same departments and business units responsible for reporting the Group entities’ data which, in their preliminary analysis, confirmed the Taxonomy-eligibility of the activities concerned. In order to consider an activity Taxonomy-aligned, it was necessary to perform a climate risk and vulnerability assessment. In the case of economic activities assessed for making a substantial contribution to climate change mitigation, the climate risk and vulnerability assessment was a condition for meeting the ‘do no significant harm’ principle. As for economic activities assessed for making a substantial contribution to climate change adaptation, the climate risk and vulnerability assessment was a condition for meeting the substantial contribution criterion. The assessment was performed by the departments responsible for reporting at individual Grupa Azoty Group companies. Each of the economic activities was analysed in terms of contributing to one of the two environmental objectives in the context of the twenty-eight physical climate risks defined in Appendix A to Delegated Regulation 2021/2139. In the first stage of the climate risk assessment, a list of climate-related threats affecting the activities subject to assessment was identified and determined to be adequate. Threats that do not occur at the location of the economic activities subject to assessment for the Taxonomy alignment, as well as threats that occur at the location but do not affect any of the elements of the system enabling the conduct of activities subject to assessment, were excluded from the list. In the second stage of the risk and vulnerability assessment, the entities assessed the materiality of the consequences of materialisation of each relevant risk on the economic activities subject to assessment. The analysis was performed over two time horizons, as required by the Regulation: up to 10 years and from 10 to 30 years. None of the identified risks was assessed as ‘high’, i.e. material. In most cases, the risk was assessed as ‘low’ and only occasionally as ‘moderate’. 

The activities identified by the Grupa Azoty Group make a substantial contribution to climate change mitigation and climate change adaptation. Therefore, the climate risk assessment concerned satisfaction of the criteria for the ‘do no significant harm’ principle (in the case of climate change mitigation) and substantial contribution (in the case of climate change adaptation).

Analysis of the Grupa Azoty Group’s activities 

The manufacturing and selling activities of the Grupa Azoty Group are conducted by five segments:

• Agro Fertilizers,
• Plastics,
• Chemicals,
• Energy,
• Other Activities.

The principal business of the Group, i.e. the manufacture of mineral and compound fertilizers, is not captured in the Taxonomy classification. Although the NACE code for fertilizer manufacturing activities is described in the Delegated Act, Grupa Azoty has adopted a conservative approach and has not classified revenues from the manufacturing of mineral and compound fertilizers as Taxonomy-aligned. This approach followed a recommendation from the European Commission set out in the December 2021 and February 2022 Taxonomy FAQ documents, which indicate the need to examine the compatibility of activities with the activity description in the Delegated Act and not to regard NACE codes as the sole determinant of the Taxonomy alignment.

It should be noted, though, that the manufacture of the main components for the production of mineral and compound fertilizers (i.e. ammonia and nitric acid) by some Group companies for use by other (intragroup revenues eliminated on consolidation) is consistent with the activities defined in Taxonomy delegated acts. Therefore, the Taxonomy disclosures included, on a non-mandatory basis, information that external revenues from sale of mineral and compound fertilizers based on ammonia and nitric acid (feedstocks included in Taxonomy delegated acts) in 2022 were PLN 13,020 million.

Calculation of key performance indicators

Turnover

• Having gone through all the required steps to identify Taxonomy-aligned activities, we determined that the Grupa Azoty Group’s net revenue is not derived from such activities. Neither the Grupa Azoty Group nor its member groups Grupa Azoty Police and Grupa Azoty Puławy identified any Taxonomy-aligned turnover. Concurrently, Taxonomy-eligible economic activities have been identified; the key ones include:
  • From the perspective of the Grupa Azoty Police Group:
    • activity 3.15. Manufacture of ammonia (more than PLN 585 million, or almost 100% of the turnover classified by the Grupa Azoty Police Group as Taxonomy-eligible) carried out through the production and sale of anhydrous ammonia with a wide range of applications in the chemical and pharmaceutical industries and refrigeration; The Grupa Azoty Police Group recognises this revenue in accordance with IFRS 15 Revenue from Contracts with Customers, with a major part of these activities being directed to other related parties (i.e. other companies of the Grupa Azoty Group which are not part of the Grupa Azoty Police Group); The turnover KPI denominator for the Grupa Azoty Police Group is PLN 5,350 million.
• From the perspective of the Grupa Azoty Puławy Group:
  • activity 3.15. Manufacture of ammonia (nearly PLN 88 million, or almost 91% of the turnover classified by the Grupa Azoty Puławy Group as Taxonomy-eligible) carried out, as described above, through the production and sale of ammonia by the Agro segment (product used in the chemical industry to manufacture fertilizers and to saponify fats and oils); The Grupa Azoty Puławy Group recognises this revenue in accordance with IFRS 15 Revenue from Contracts with Customers, with a predominant part of these activities being directed to other related parties (i.e. other companies of the Grupa Azoty Group which are not part of the Grupa Azoty Puławy Group); The turnover KPI denominator for the Grupa Azoty Puławy Group is PLN 8,899 million.
• From the perspective of the Grupa Azoty Group as a whole:
  • activity 4.9. Transmission and distribution of electricity (nearly PLN 308 million, or more than half of the turnover classified by the entire Grupa Azoty Group as Taxonomy-eligible) carried out mainly by the subsidiary Grupa Azoty Zakłady Azotowe Kędzierzyn S.A., which enters into comprehensive contracts for the sale of electricity and electricity distribution services (it purchases high-voltage electricity and sells it after conversion over medium and low-voltage grids); the subsidiary recognises this revenue in accordance with IFRS 15 Revenue from Contracts with Customers, and the concluded contracts usually contain two performance obligations (the sale and distribution of electricity) within the meaning of the aforementioned standard, the distribution part being thus separated;
  • activity 3.15. Manufacture of ammonia (just under PLN 131 million, or approximately 23% of the turnover classified by the entire Grupa Azoty Group as Taxonomy-eligible) carried out primarily by the Grupa Azoty Police Group and Grupa Azoty Puławy Group (the part relating to sales outside the Grupa Azoty Group), as described above;

The turnover KPI denominator for the entire Grupa Azoty Group is PLN 24,658 million.

Capital expenditures (CapEx)

• Having gone through all the required steps to identify Taxonomy-aligned activities, we determined there is capital expenditure at the Grupa Azoty Group substantially contributing to an environmental objective and meeting the technical screening criteria, while not causing significant harm to any other environmental objectives. Such capital expenditure is capital investment associated with:

• From the perspective of the Grupa Azoty Police Group:
  • activity 5.1. Construction, extension and operation of water collection, treatment and supply systems (more than PLN 13 million, or almost all capital expenditure classified by the Grupa Azoty Police Group as Taxonomy-aligned), recognised as making a substantial contribution to the environmental objective of climate change adaptation; projects carried out included an upgrade of the intake pumping station for cooling water and a project to make the production of demineralised water independent of variable salinity of the Oder River, and were accounted for mainly in accordance with IAS 16 Property, Plant and Equipment. The CapEx KPI denominator for the Grupa Azoty Police Group is PLN 212 million.

• From the perspective of the Grupa Azoty Puławy Group:
  • activity 5.1. Construction, extension and operation of water collection, treatment and supply systems (just under PLN 2 million, or approximately 81% of the capital expenditure classified by the Grupa Azoty Puławy Group as Taxonomy-aligned), that is primarily capital assets (accounted for mostly in accordance with IAS 16 Property, Plant and Equipment) necessary to carry out water collection, treatment and distribution activities (projects carried out in 2022 included extensions of the water demineralisation and decarbonisation stations and an upgrade of the decarbonised water pumping station, which made a substantial contribution to the environmental objective of climate change mitigation); The CapEx KPI denominator for the Grupa Azoty Puławy Group is just under PLN 470 million.

• From the perspective of the Grupa Azoty Group as a whole:
  • activity 4.15 District heating / cooling distribution (more than PLN 17 million) and 4.25. Production of heat / cool from waste heat (more than PLN 8 million), which combined account for approximately 47% of the capital expenditure classified by the entire Grupa Azoty Group as Taxonomy-aligned, relating to investment in the Energy segment of the Grupa Azoty Group’s parent (generation of energy, in this case heat, for sale and distribution services; in the case of 
  • activity 4.15. – projects included an upgrade of the hot water network and thermal insulation of the steam pipeline, in the case of activity 4.25. – they included the construction of a neutralisation and precipitation unit) – expenditure incurred primarily on capital assets, accounted for in accordance with IAS 16 Property, Plant and Equipment;
  • activity 5.1. Construction, extension and operation of water collection, treatment and supply systems (over PLN 15 million, or almost 29% of capital investments classified by the entire Grupa Azoty Group as Taxonomy-aligned), carried out primarily by the Grupa Azoty Police Group and the Grupa Azoty Puławy Group (as described above);
  • activity 4.9. Transmission and distribution of electricity (close to PLN 6 million) and 4.1. Generation of electricity using solar photovoltaic technology (more than PLN 4 million), which combined account for nearly 19% of the capital expenditure classified by the entire Grupa Azoty Group as Taxonomy-aligned, relating mainly to purchases of capital assets by the subsidiary Grupa Azoty Zakłady Azotowe Kędzierzyn S.A. engaged (as one area of its business activities) in the sale and distribution of electricity, as already described in the section on the Grupa Azoty Group’s turnover (again, the expenditure is mostly accounted for in accordance with IAS 16 Property, Plant and Equipment).

The largest capital investments (not classified as Taxonomy-aligned but classified as Taxonomy-eligible), accounting for about 74% of total Taxonomy-eligible activities (more than PLN 1,459 million out of a total of approximately PLN 1,971 million) were made primarily by the subsidiary Grupa Azoty Polyolefins S.A. as part of activity 3.17. Manufacture of plastics in primary form, in relation to the Polimery Police project (which is designed as Central and Eastern Europe’s largest propylene and polypropylene plant operating its own marine terminal). The investments were made largely on machinery, accounted for in accordance with IAS 16 Property, Plant and Equipment.

The CapEx KPI denominator for the entire Grupa Azoty Group is PLN 3,001 million.

Operating expenses (OpEx)

• Having gone through all the required steps to identify Taxonomy-aligned activities, we determined that the amounts of operating expenses substantially contributing to an environmental objective and meeting the technical screening criteria, while not causing significant harm to any other environmental objectives, are very small in relation to both total operating expenses (defined in the same way as in Delegated Regulation 2021/2178 and used as the denominators of relevant key performance indicators) and the Taxonomy-eligible operating expenses. Accordingly:
  • From the perspective of the Grupa Azoty Police Group – there are no Taxonomy-aligned operating expenses; The OpEx KPI denominator for the Grupa Azoty Police Group is PLN 35 million.
  • From the perspective of the Grupa Azoty Puławy Group – there are no Taxonomy-aligned operating expenses; The OpEx KPI denominator for the Grupa Azoty Puławy Group is PLN 134 million.
  • From the perspective of the entire Grupa Azoty Group, a total amount of just over PLN 0.1 million was classified as Taxonomy-aligned, incurred in connection with activity 4.15. District heating / cooling distribution, and 4.25. Production of heat / cool from waste heat, which is associated with environmentally sustainable capital expenditures (CapEx; as described above) and incurred within these two categories by the Grupa Azoty Group’s parent;

At the entire Grupa Azoty Group, the total amount of Taxonomy-eligible but not Taxonomy-aligned operating expenses is approximately PLN 42 million. The key activity (accounting for nearly PLN 20 million, or 48% of the total Taxonomy-eligible operating expenses) is 3.15. Manufacture of ammonia, which is related to the maintenance of machinery used to manufacture anhydrous ammonia. The manufacture and sale of this gas (as described in the section on the key performance indicator for turnover) account for virtually the entire turnover of the Grupa Azoty Police Group and the Grupa Azoty Puławy Group classified as Taxonomy-eligible (of which the largest expenses are incurred by the Grupa Azoty Puławy Group on maintenance of this activity).

The OpEx KPI denominator for the entire Grupa Azoty Group is PLN 323 million.

Minimum safeguards

In 2022, the Grupa Azoty Group conducted its operations in compliance with the minimum safeguards referred to in Article 18 of Regulation 2020/852. Compliance with the minimum safeguards was assessed by reference to recommendations of the Platform on Sustainable Finance, which proposes two criteria indicating non-compliance with the minimum safeguards: 

1. no adequate human rights due diligence processes established by an undertaking,
2. the undertaking found in breach of human rights and other relevant principles.

Re. 1) The Grupa Azoty Group has human rights due diligence processes in place, as outlined in the United Nations Guiding Principles for Business and Human Rights and the OECD Guidelines for Multinational Enterprises:

• The Group’s approach to human rights and labour rights is defined in the Code of Ethical Conduct, the Anti-Corruption Code and the Anti-Workplace Bullying and Anti-Discrimination Policy. Suppliers are also expected to respect human rights in accordance with the Grupa Azoty Group’s Trading Partners Code of Conduct. Furthermore, the Group companies comply with the relevant supplier codes of conduct and ethics codes, adapted to their particular circumstances (with respect to contact details of compliance officers, etc.). For more information on the commitment to respect for human rights, see section 7 of this report 7. Our management approach – Ethics and values
• The following material risks of human rights and labour rights abuses have been identified in the Grupa Azoty Group’s Enterprise Risk Register:

•       risk of human rights violations at work,

•       risk of accidents at work, occupational ill-health and other threats,

•       risk of infringing on or interfering with employees’ right to freedom of association and collective bargaining,

•       risk of violation of ethical principles and standards.

This due diligence approach allows us to integrate human rights issues into our daily risk management activities. While the risk approach remains fundamentally consistent across the Group, there may be potential variations between individual companies, in the assessment of the probability associated with specific risks and the methods employed for risk mitigation. 

• The Group takes preventive measures to address those risks, as described in section 2.5. Risk management of Non-financial statement of the Grupa Azoty Group 2022
• The Group routinely assesses the effectiveness of the measures it has implemented. With respect to the social risks listed above, key risk indicators (KRI) were defined in September 2022, subject to periodic measurement. In addition, the risks are subject to quantitative risk analysis on an annual basis and updated, if needed. Tracking of the effectiveness of our approach to labour rights is also incorporated into our integrated management systems. For more information on the standards underpinning our management systems at individual companies, including OHS standards, see section 2.4. Integrated management systems of Non-financial statement of the Grupa Azoty Group 2022
• The Group has established procedures for reporting misconduct and other concerns (the Whistleblowing Policy provides a Group-wide framework for making such reports). Concerns can also be reported via channels available at individual companies. A whistleblower can be an employee, trading partner or any other person.
• The Group has follow-up and corrective procedures in place – all reports are investigated as a collective effort, and optimal solutions are devised to eliminate or minimise adverse human rights and labour rights impacts, also under the Anti-Workplace Bullying and Anti-Discrimination Policy. There are also whistleblower policy implementation teams and OHS teams at individual companies.

Re 2) In 2022, no final court decisions were issued that would confirm that Grupa Azoty S.A. or its subsidiaries (companies providing input data for this report) had violated or infringed on human rights, labour rights, tax law, fair competition law, or anti-corruption regulations. The OECD National Contact Points received no reports concerning the Group or its member companies and found no violations of the OECD Guidelines for Multinational Enterprises on the part of the Group or its member companies. No allegations from the Business and Human Rights Resource Centre have been made against the Group in the past two years.

Grupa Azoty

Grupa Azoty

Grupa Azoty

Grupa Azoty Police Group

Grupa Azoty Police Group

Grupa Azoty Police Group

Grupa Azoty Puławy Group

Grupa Azoty Puławy Group

Grupa Azoty Puławy Group

In accordance with Article 8(6)–8(8) of Delegated Regulation 2022/1214, the Grupa Azoty Group makes relevant disclosures concerning its nuclear energy and fossil gas activities. 

The Grupa Azoty Group has exposure to fossil gas activities as it operates fossil gas-fired combined heat/cooling and power generation plants. Entities of the Grupa Azoty Group – including Grupa Azoty S.A. (Tarnów) and Grupa Azoty Zakłady Azotowe Kędzierzyn S.A. – operate CHP plants where the concurrent production of heat and electricity takes place. As part of the analysis of Taxonomy-eligible and aligned activities, the Grupa Azoty Group identified no turnover, capital expenditures or operating expenses related to fossil gas activities for 2022. Given that completion of the gas-fired boiler project and its placement in permanent service are only scheduled for 2023, the relevant disclosures do not include information on the project.

Relevant disclosure tables for the entire Grupa Azoty Group including data for the Grupa Azoty Puławy Group and the Grupa Azoty Police Group and containing the key performance indicators (turnover, CapEx and OpEx) for nuclear energy and fossil gas activities are provided below.

1. Nuclear energy and fossil gas activities

2. Taxonomy-aligned economic activities (denominator)

2. Taxonomy-aligned economic activities (denominator)

3. Taxonomy-aligned economic activities (numerator)

3. Taxonomy-aligned economic activities (numerator)

4. Taxonomy-eligible economic activities that are not Taxonomy-aligned

5. Taxonomy non-eligible economic activities