Integrated Report of Grupa Azoty 2022

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[IR – Presentation of results] [3-3]

We support initiatives, associations and groups that share our ethical values. Every year, we take part in organising hundreds of small and large events which provide local residents with entertainment, education, raise their patriotic awareness, or simply offer them opportunities to enjoy leisure time with their families and friends. We support athletes, sports fans, students, teachers, artists and other groups.

We also instil CSR ideas into our corporate culture, especially through development of our employee volunteering programme dedicated to helping social institutions.

BEST PRACTICE

Employee volunteering

In 2022, we ran edition one of the Employee Volunteering Programme, which was inspired by Green Azoty, the Group’s strategic project aimed to develop green products and technologies. Project participants could engage in activities for the local communities, such as projects to develop a specific green area, help arrange a vegetable garden, create serene spaces at a cultural centre, promote a healthy lifestyle, or revamp rooms in kindergartens or schools.

Ten environmental projects initiated in the first edition of the programme engaged over 100 individuals. The volunteers created a vegetable garden with a rainwater retention system on the premises of a kindergarten in Puławy or installed more than 90 nesting boxes and insect houses in the municipality of Police. In 2022, a sensory minigarden was built for people with intellectual disabilities at the Centre for Children with Special Educational Needs in Wierzchosławice-Dwudniaki, and bicycle repair stations were installed in Bierawa and Dziergowice (county of Kędzierzyn-Koźle).

Image-building activities with a countrywide or international reach, which boost the public perception of the Grupa Azoty Group, are carried out by the Group’s dedicated corporate department based in Tarnów. Each of the companies has in place appropriate social, sponsorship, CSR and donation policies.

[203-1] [own disclosure]

Social and sponsorship activities are governed by the Grupa Azoty Social and Sponsorship Policy, Grupa Azoty Donation Policy, Charity Policy, Grupa Azoty Group CSR Policy, and additional internal documents. All projects undertaken by the four key companies making up the Grupa Azoty Group are carried out with the local community involvement, taking into account impact assessment or development programmes.

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The formal basis for our social activities is the Charity Policy, introduced in 2022 to replace the Donation Policy. The Charity Policy is a declaration of our overall attitude, fostering openness to the world around us and other people, as well as a commitment to help those in need. Seeking to be guided by the wellbeing of local communities but also by specific rules, the Grupa Azoty Group developed the Policy as a set of directions to be followed when making corporate donations.

The Group companies prepare quarterly reports on the performance of their plans covering social and sponsorship activities and submit them to Grupa Azoty S.A., which, at the Supervisory Board’s request, presents a report on their implementation. The companies provide the Supervisory Board with a report on their sponsorship engagements to fund professional sports, along with other pertinent information regarding any terminated engagements and potential future partnerships. The selected information is then made public, in accordance with the Articles of Association, in the Directors’ Report.

[own disclosure]

Total donations to social causes (PLN)

	2021	2022
Grupa Azoty S.A.	332,109	1,261,000
Grupa Azoty PUŁAWY	900,252	1,412,754
Grupa Azoty POLICE	569,457	989,162
Grupa Azoty KĘDZIERZYN	509,178	827,373
Total	2,310,996	4,490,289

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In accordance with the Grupa Azoty Group Charity Policy, no political contributions were made directly or indirectly in 2022.

We indirectly support local communities through infrastructure investments and local tax payments. In 2022, total taxes on the operations of the largest Group companies exceeded PLN 132 million.

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The Grupa Azoty Group exerts indirect economic impacts on many aspects of the economy. The companies operating our production plants are among the largest employers in their regions, while the taxes we pay help finance projects benefiting local communities. Through innovative practices promoted in agriculture, the Grupa Azoty Group also contributes to furthering the objectives of the European Green Deal with respect to agriculture. For more details, see Innovations in 2022.

Amount of local taxes, by category (PLN)

	Grupa Azoty S.A		Grupa Azoty PUŁAWY		Grupa Azoty POLICE		Grupa Azoty KĘDZIERZYN		Total
	2021	2022	2021	2022	2021	2022	2021	2022	2021	2022
Property tax	21,049,333	23,399,879	40,805,715	44,487,011	35,115,894	36,427,870	27,230,205	28,078,848	124,201,147	132,393,608
Forestry tax	0	0	2,567	2,986	492	530	7	7	3,066	3,523
Vehicle tax	0	0	26,054	26,982	3,122	4,806	6,509	6,509	35,685	38,297
Agricultural tax	1,187	1,246	0	0	3,051	3,185	49	52	4,287	4,483
Total	21,050,520	23,401,125	40,834,336	44,516,979	35,122,559	36,436,391	27,236,770	28,085,416	124,244,425	132,439,911

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Investments and services for infrastructure development with positive impacts on local communities in 2022

	Name of significant infrastructure investment	Cost – value (PLN)	Type of support
Grupa Azoty S.A.	Higher Theological Seminary in Tarnów – renovation of the Seminary building	20,000	COMMERCIAL
	Voluntary Fire Brigade in Biała – partial financing of the construction of a new fire engine garage	5,000	PRO BONO
	Voluntary Fire Brigade in Zwiernik – partial financing of the construction of a playground	19,000	PRO BONO
	Voluntary Fire Brigade in Przecław – partial financing of energy retrofit of a building	15,000	PRO BONO
Grupa Azoty PUŁAWY	-	0	-
Grupa Azoty POLICE	Cedynia Culture and Sports Centre – financing of revitalisation of the site surrounding the Monument to Polish Victory at the Oder River, located on Góra Czcibora between Cedynia and Osinów Dolny, and a commemorative plaque to mark the 1050th anniversary of the Battle of Cedynia	199,000	PRO BONO
Grupa Azoty KĘDZIERZYN	Command of the State Fire Service in Kędzierzyn-Koźle: Purchase of firefighting helmets	18,000	PRO BONO
	County of Kędzierzyn-Koźle – partial financing of the repair of sections of the 1477 O and 2056 O county road ul. Mostowa in Kędzierzyn-Koźle	300,000	PRO BONO
	Volunteer Fire Brigade in Długomiłowice: Financial support to purchase an AED to serve the brigade	5,400	PRO BONO
Total		616,400

The Grupa Azoty Group has adopted a strategic and systematic approach to social responsibility and stakeholder engagement. Our companies are active participants of the local community life, providing support where it is most needed. Our activities are linked directly to the objectives of our ESG strategy, forming part of the Grupa Azoty Group Strategy for 2021–2030. Social well-being is very high on our agenda: initiatives we undertake to promote it are included the strategy’s immediate environment pillar, whose objectives are aligned with the UN Sustainable Development Goals 2030.

Activities within these areas are governed by our Social and Sponsorship Policy, which requires that they meet the following criteria:

investments benefiting the local community, solving social issues, providing charitable assistance in the form of cash or non-cash donations and services, addressed directly to the communities or to charitable organisations, NGOs and non-profit organisations,
social and sponsorship projects related to local initiatives, often with a supraregional, even international, media coverage,
nationwide and international social and sponsorship projects, going beyond local initiatives,
building a positive image of the Group as a people and environmentally friendly business,
building the Group’s and its companies’ image as socially responsible businesses supporting local initiatives,
promoting the Grupa Azoty brand by increasing its recognition among those who are not the Group’s clients or customers buying its products,
communicating the Grupa Azoty Group’s message to its material stakeholders, with a focus on the importance of high standards of projects and initiatives implemented by the Group,
building the Group’s and its companies’ reputation, recognition and favourable perception among the public, particularly in terms of the Group’s positive role in solving social and environmental issues of the contemporary world,
enhancing perception of the regions where the Group operates as attractive places to live, work, pursue passions and fulfil ambitions; offering young people and children the best possible education, health and wellbeing opportunities,
supporting promotional and commercial activities.

The Group has also implemented the CSR Policy, a framework governing its corporate social responsibility initiatives. These initiatives focus on the following areas:

environmental protection,
promotion of knowledge, in particular through conferences, seminars and congresses concerning the broadly based chemical sector and agriculture,
science and education with particular emphasis on sciences related to the Grupa Azoty Group’s business and development of new technologies,
amateur sport and recreation, including individual sports, sports of children, youth and disabled people,
supporting economic development, including entrepreneurship,
other initiatives supporting the development of local communities,
activities supporting European integration and fostering international contacts and cooperation,
cultural activities, also in the area of mass culture, arts, and preservation of cultural goods and traditions.

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CENTRAL-LEVEL PROJECTS

The Grupa Azoty Group enhances its brand recognition by supporting Poland’s top athletes. Partnering with a number of nationwide sports events, the Group is best known for its engagement as the Main Partner with the Polish Skiing Association. That has supported the Polish ski jumping team for many years now. The Group’s support for winter sports takes various forms, including individual sponsorship contracts (Piotr Żyła, Jakub Wolny) or acting as the main sponsor of major sporting events in Poland (the FIS Ski Jumping World Cup competitions in Wisła and Zakopane).
The Grupa Azoty Group is a sponsor of Malwina Kopron, a female hammer thrower and bronze medallist of the 2021 Olympic Games.

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In 2022, Grupa Azoty S.A. allocated approximately PLN 580 thousand to sponsorship and social initiatives.

Development of the region

The Grupa Azoty Group provided support to numerous organisations, including Voluntary Fire Brigades, the Grupa Azoty S.A. Branch of the Polish Tourist and Sightseeing Society (PTTK) in Tarnów-Mościce, the KANON Association, the KANA Catholic Youth Education Centre, and the AZOTY Sports Association of Tarnów.

Development of education

Continued long-term partnership with the Technical School Complex in Tarnów as part of which the company hires up to ten students every year, organises job training opportunities and provides assistance in preparing classes, arranging trips and submitting applications for EU funds.
Cooperation with the Polish Olympians Primary Sport School No. 20 in Tarnów.
Cooperation with scientific institutions and academic centres.

Development of sports

In 2022, Grupa Azoty S.A. provided support to:

Roleski Grupa Azoty PWSZ Tarnów Club (volleyball),
Grupa Azoty Unia Tarnów (handball),
ZKS Unia Tarnów Sports Club (football),
Unia Tarnów Żużlowa Sportowa Spółka Akcyjna (speedway).

Grupa Azoty S.A. has under its patronage Poland’s largest equestrian event Cavaliada Tour in Poznań. Last year, the tournament comprised 26 competitions, which attracted almost 600 contenders from more than 16 countries.

Best practice

Grupa Azoty S.A. announced the first edition of its Grupa Azoty START programme, designed to develop the next generation of athletes and raise young talent through sports and healthy rivalry, with due care taken to foster mutual respect, integrity and respect for fundamental values, particularly those stemming from the principles of fair play. Total financial support of over PLN 370 thousand went to 32 entities in six provinces. The funding was granted to schools and organisations providing sports activities and training to children and youth between the ages of 5 and 19.

Development of culture

In 2022, Grupa Azoty S.A. provided support to:

ArtContest Artistic Association of Tarnów (Grupa Azoty International Jazz Contest),
Paderewski Centre in Kąśna Dolna,
Krzysztof Penderecki European Centre for Music in Lusławice,
Mościce Art Centre,
Royal Castle in Warsaw – Museum. The Residence of Kings and the Republic of Poland (a donation to expand the art collection of the Royal Castle in Warsaw).

Protection of life and health

Grupa Azoty S.A. provided support to:

Polish Red Cross Club of Honorary Blood Donors at Grupa Azoty S.A.,
Ich Lepsze Jutro (For a Better Tomorrow) Association,
START Sports Association for People with Disabilities of Tarnów,
Caritas of the Tarnów Diocese and Caritas of the Kraków Archdiocese.

Grupa Azoty S.A. supported those in need by participating in another edition of the Noble Gift campaign. Our employees prepared Christmas gifts for three families in need. The gifts contained home appliances, food, clothing, children’s toys, school supplies, and sweets.

Environmental protection initiatives

Wildflower meadow and beehives in green areas surrounding the Research and Development Centre of Grupa Azoty S.A. in Tarnów, prepared by students of the General Secondary and Technical School Complex in Wojnicz.

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Donations of Grupa Azoty Puławy totalled PLN 1.4 million, with the key beneficiaries including the Voluntary Fire Brigade in Stary Bidaczów, CHEMIK Society for the Promotion of Physical Culture of Puławy, Roman Catholic Parish of the Assumption of the Blessed Virgin Mary in Puławy, Caritas of the Lublin Archdiocese, and Caritas of the Zamość and Lubaczów Diocese.

Sports and healthy lifestyle

In 2022, Grupa Azoty Puławy supported professional and amateur athletes. Support was provided to the following organisations:

Azoty-Puławy Handball Club – a team with an excellent track record, currently playing in the PGNiG Superliga handball league, a six-time bronze medallist of the Polish Handball Championship. In 2022, the team came fourth in the ranking table,
Wisła Puławy Sports Club with a senior football team competing in the second league in the 2021/2022 season. The team ranked fifth in the autumn round of the 2022/2023 season,
Speedway Motor Lublin, a speedway team competing in the PGE Ekstraliga league, the 2022 Polish championship winner,
MKS Padwa Zamość – a handball team playing in the first central league,
LKPS Lublin – Friends of Volleyball Club of Lublin, who competed in the Plus Liga premier league in 2022. In 2022, the team came ninth in the ranking table;
Powiślak Końskowola Sports Club – an old boys’ football team competing in the 4th Lublin league, group 1.

Grupa Azoty Zakłady Azotowe Puławy S.A. contributed to the organisation of martial arts events: STRIFE 2 (Mixed Martial Arts Gala) and Lubelska Gala Sportowa TFL24. The company signed a sponsorship deal with a mixed martial arts fighter Łukasz Siwiec, a resident of Puławy, who won the championship belt of Babilon MMA.

The company also supported initiatives where sports activities were combined with the promotion of patriotic and civic attitudes: Bieg Tropem Wilczym (Wolf’s Trail) running event, Bieg Solidarności Lubelski Lipiec 1980 (Lublin Solidarity 1980) running event, and Bieg z Flagą o Puchar Marszałka Województwa Lubelskiego (Run with the Flag – the Lublin Province Marshal Cup) running event.

In 2022, Grupa Azoty Puławy supported amateur athletes by providing funding to sports clubs associated within the Puławy Sports Academy (under a community outreach through sports initiative dedicated to children playing football) and employee sports clubs (Chemik Society for the Promotion of Physical Culture of Puławy and the Company Branch of the Polish Tourist and Sightseeing Society (PTTK)).

Collaboration with the Marie Curie-Skłodowska Technical School Complex in Puławy provided students with job training opportunities at the company;
Collaboration with the Puławy Science and Technology Park in organising ‘Santa Claus Joy Show – Chemistry Wonderland’, a popular science event for children and youth;
Prizes for students participating in art, literature and environmental competitions run by local kindergartens and primary schools.

Continued partnership with the Dom Chemika Puławy Culture Centre, Lublin Music Theatre, Vistula Museum in Kazimierz Dolny as well as St. John the Baptist and St. Bartholomew Roman Catholic Parish in Kazimierz Dolny in the organisation of summer organ concerts;
Sponsoring the ‘Passion’ art show performed to mark Easter celebrations held at the Łuczkowski square in Chełm in 2022;
Sponsoring the Sound of Words music and theatre festival in Lublin. Its 2022 edition was held under the slogan ‘No to War’ and was an artistic expression of protest against the war in Ukraine;
Supporting initiatives seeking to preserve and promote national traditions, including the Mounted Rifles Festival in Hrubieszów and the Polish Weaponry Festival in Janów Lubelski;
Supporting important rural community events, including a provincial harvest festival held by the Centre for the Meeting of Cultures at the Radawiec airfield, a county harvest festival in Góra Puławska, Maliniaki Festival in Urzędów, and Kozirynek Fair 2022 in Radzyń Podlaski.

Charitable activities

Financial and in-kind assistance to counter the effects of the war in Ukraine, provided to institutions involved in organising professional aid to Ukraine and its citizens: Caritas of the Zielona Góra Archdiocese, Caritas of the Zamość-Lubaczów Diocese in Zamość, and the Government Agency for Strategic Reserves;
Patronage of:
- the Lessel Festival – a series of concerts held in Puławy;
- the National Festival of School Anthems;
- the Christmas Carol Concert in Goraj;
- the Blacksmith Art Fair blacksmithing workshops;
Supporting renovation of the historical Czartoryski family’s chapel in Puławy;
Supporting an archaeological project in the village of Opoka initiated by the Końskowola Parish Association for the Protection of Cultural Heritage;
Involvement in the construction of a monument to Crown Grand Hetman Stanisław Żółkiewski;
Assisting in the organisation of the ‘Discover Zofia Kossak on the 100th Anniversary of Her Literary Debut’ conference;
Co-organisation of the St Nicholas Procession in Lublin.

Health protection

Provision of funding to the Gift of Life Honorary Blood Donors Club that promotes the idea of honorary blood giving;
Supporting employees and their relatives who struggle financially or face other personal challenges due to health conditions.

Safety

Financial support of volunteer fire brigades.

Support to local communities

Running a campaign to collect Christmas gifts in partnership with the Municipal Social Welfare Centre;
Collecting plastic bottle caps for charity, at the request from the Puławy hospice;
Planting of trees and shrubs in the vicinity of the historical Villa Samotnia in Puławy as part of an employee volunteering project run jointly with the Friends of Puławy Association;
Regular blood donation drives organised by the Gift of Life Honorary Blood Donors Club.

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The total amount of donations from Grupa Azoty Police was close to PLN 990 thousand.

Social campaigns

Continued cooperation with the Useful Ones Social Cooperative supporting individuals with disabilities;
Providing support to the Social Harmony Association, which helps people with mental disorders, the elderly, individuals with disabilities and addictions and their families.

Supporting employees

Providing warning vests and reflective bands for employees commuting to work at the company's plant;
Holding art and photography competitions for employees and their children;
Organising pre-medical first aid training.

Support to sports

Sponsorship of the Chemik Police Female Volleyball Club – in the 2021/2022 season, the Grupa Azoty Chemik Police team won Poland’s Championship for the tenth time;
Agreement with the Chemik Police Football Club, which started playing in the 4th league in the 2021/2022 season; The club also runs the certified Police Youth Football Academy training the youngest residents of Police, including children of the company’s employees;
Providing support to the Champion Student Sports Club, whose members are table tennis players of various ages;
Partnering in the organisation of running events: the ‘Wild Weekend’, 3rd Janusz Korczak Run, 2nd Independence Run, and Santa Claus Run;
Acting as a partner of Energy CUP 7, a Brazilian ju-jitsu tournament for children and youth;
Acting as a partner of the Santa Claus National Mini Volleyball Tournament in the Girls Triples and Boys Triples categories;
Sponsorship of the ‘Quests’ educational field games.

Support to culture and mass events

Acting as a partner of the True Musicians Tournament;
Organising the Chemist Day, a festival for the company’s employees and their families, held as an open event together with the Police Day;
Organising the Gala of Merit to honour the company’s outstanding employees.

Support to national traditions

Continued partnership with the Foundation for Polish Values, which supports Poles living in the former eastern borderlands.

Health promotion initiatives

Providing support to the Polish Association of Voluntary Blood Donors – the Henri Dunant Voluntary Blood Donors Club of Police; in 2022, 138 volunteers donated over 60 litres of whole blood during six blood donor sessions hosted on the company’s premises.

Support to the Feliks Nowowiejski State Music School Complex in Szczecin, to be used to fund awards for winners of the 9th West Pomeranian Clarinet Festival;
Support for the treatment of a child of a company employee and for Police residents;
Support provided to company employees to help them participate in sports competitions;
Financial support for the activities of Caritas of the Szczecin-Kamień Archdiocese;
Prizes for winners of the 45th Agricultural Knowledge and Skills Competition;
Prizes for winners of the ‘Logistics through the Camera Lens’ photography competition organised by the Witold Pilecki Economic High School in Szczecin;
Support to the NSZZ Solidarność trade union, to be used to organise rescue service training;
Funding prizes for winners of the Mathematics in Focus International Photography Competition organised by the University of Szczecin;
Partial financing of revitalisation of the site surrounding the Monument to Polish Victory at the Oder River;
Partial financing of a chemical laboratory at Władysław Orkan School Complex No. 2 in Szczecin;
Support to the local ‘Rybak Trzebież’ sports club;
Support to the Basilica of St. John the Baptist Foundation in Szczecin – Remembrance and Gratitude in organising the premiere performance of Victrix Regina Poloniae;
Support to the NSZZ Solidarność trade union’s West Pomeranian Region to help it finance the construction of a monument to commemorate participants of the 1971 strikes in Szczecin;
Support to the Polish Association of the Blind’s West Pomeranian Region;
Support to a successful female weight lifter from the Municipality of Police;
Support to the Police Association of the University of the Third Age, whose members include retired employees of Grupa Azoty Police;
Support to the ‘Associaca Arte Cultura Capoeira’ sports club in Police;
Support to the Queen of Apostles Hospice in Tarnów.

Partnerships with educational institutions

Agreement with the Ignacy Łukasiewicz School Complex in Police, including organisation of apprenticeships for students and industry training for teachers;
Agreement with School Complex No. 2 in Szczecin, which has started a new programme to train future laboratory technicians;
Organising specialist training and joint expert teams as part of an engagement with the Faculty of Environmental Management and Agriculture at the West Pomeranian University of Technology in Szczecin;
Collaborating with the Faculty of Electrical Engineering at the West Pomeranian University of Technology in Szczecin;
Cooperation agreement with the Academy of Applied Sciences of the University of the Common Knowledge Society and the Poznań University of Technology.

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Partnerships with educational institutions

Assistance in the organisation of the 10th Chemistry Masterminds Interschool Chemical Competition at the company’s patronage School Complex No. 3 in Kędzierzyn-Koźle;
Organising a competition for innovative technological and technical projects along with the Marian Górny Prize;
Assistance for the Youth Brass Orchestra and the establishment of a patronage class for students learning to be inland navigation technicians at the Inland Navigation School Complex in Kędzierzyn-Koźle;
Three scholarship programmes, with 15 scholarships awarded in 2022:
- for students of the chemistry class at Nicholas Rej School Complex No. 3 in Kędzierzyn-Koźle;
- for students learning to become inland navigation technicians at the Heroes of Westerplatte Inland Navigation School Complex in Kędzierzyn-Koźle;
- for students of agricultural classes at the Władysław Szafer Agricultural Education Centre in Głubczyce;
for undergraduate and graduate students participating in the Grupa Azoty Brand Ambassador programme.

Entrepreneurship promotion initiatives

Assistance in the organisation of the 1st Regional Innovative Solutions – Innovation 2022 Conference ‘Innovation of the Opole Province in the new Green innovations in industry and agriculture programming period’, organised by the Opole Centre for Economic Development – a special issue of the Chemical Industry magazine published as part of the post-conference publications dedicated to Grupa Azoty Kędzierzyn;
Support for:
- 8th Logistics Scientific Conference in Opole;
- 5th Symposium on Biotransformations for the Pharmaceutical and Cosmetic Industry in Kroczyce;
- 10th Congress of Chemical Technology in Wrocław;
- 8th DISE Energy Congress;
- ETCC2022 – European Technical Coatings Congress;
- 28th Business Meetings in Ostrava.

Support for national traditions

Assisting in the organisation of the Patriotic Week in Kędzierzyn-Koźle, in partnership with the Museum of the Koźle Region;
Co-organising the celebrations of the National Day of the Silesian Uprisings on Góra Świętej Anny, organised by Wojciech Ciura Senior.

Support for culture and cultural events

Support for the celebrations of the Dutchy of Koźle Days combined with the Cadet Day in Kędzierzyn-Koźle, organised by the Opolskie Orlęta Foundation;
Assistance in organising the Day of the City of Kędzierzyn-Koźle, the Book Fair on the Oder and the Fluent Reading campaign;
Co-organisation of a star unveiling ceremony on the Polish Song Stars Walk of Fame as part of the 2022 National Polish Song Festival in Opole;
Sponsorship of the 24th ArtCup Equestrian Stars Championship cultural and sporting event organised by LKJ Lewada in Zakrzów;
Support for the Water and Fire Festival in Nysa;
Financial and expert assistance in the publication of the 23rd volume of the Kędzierzyn-Koźle Sketches;
Assistance in the organisation of the 27th Kędzierzyn-Koźle Scientific Seminar entitled ‘Kędzierzyn-Koźle. The city of borderlands – borderlands in the city. Historical experience and contemporary times’.

Support for environmental activities

Implementation of the Responsible Careprogramme since 1994.