RISKS
Map of ESG risks and opportunities
Go to GRI STANDARD index
[103-2]
[306]
[403-2]
[403-7]
[413-2]
ESG (environmental, social and governance) risks table
Environmental risks identified at the Grupa Azoty Group
| TCFD risk category | Risk name and definition | Risk response |
|---|---|---|
| Climate change risks, both relating to the company’s impact on climate and the effects of climate change on the company | Steps have been taken to assess risks associated with the environmental impacts of the Group’s business both in its day-to-day operations, and in terms of its medium- and long-term objectives. A review of the business model resilience has been initiated, taking into account the target levels of emissions and pollutant concentrations. The Group’s newly developed Strategy prioritises innovation and advancements in sustainable development. Grupa Azoty S.A. perceives business opportunities in the evolving landscape of environmental and climate consciousness. The risk identification process goes beyond recognising challenges, as it also actively explores opportunities. These include the potential to secure funding for innovative technology projects or the development of environmentally friendly products. Simultaneously, potential avenues for enhancing energy efficiency and cost effectiveness have been discerned. Measures have been taken to address challenges related to the identified risks and opportunities in the light of upcoming changes and their ultimate integration within the enterprise risk management system. | |
| Climate-related risks: physical – acute risks | Risk of extreme weather and natural disasters resulting from the physical effects of climate change Risk of violent storms, floods, heat waves, hurricanes, tornadoes, lightning strikes, other weather events and natural disasters resulting from the physical effects of climate change | |
| Climate-related risks: transition – technology risks | Risk of inability to conform to the requirements of a low-carbon economy and achieve decarbonisation targets within the set time frame Risk of the occurrence of technological process-related, organisational or economic factors hindering the reduction of CO2 emissions to the extent mandated by regulations | |
| Climate-related risks: transition – market risks | Risk of a decline in fertilizer sales due to physical climate change - Risk of a decline in fertilizer sales and not achieving the expected revenue level due to unstable weather conditions, changes in plant growing periods due to increased temperatures, water shortages and intensification of the water cycle (summer heat waves, drought, torrential rains and flooding, storms), and the occurrence of extreme weather events (such as hail storms, hurricanes, severe frost), which may compromise the purchasing power of farmers | |
| Climate-related risks: transition – market risks | Risk of a decline in sales of chemicals due to market constraints and shifts in consumer behaviour as a result of more widespread adoption of pro-environmental attitudes Risk of a decline in product sales and not achieving the expected revenue level in the chemicals segment due to market constraints and lower demand reflecting more widespread adoption of sustainable consumption and environmental awareness | |
| Climate-related risks: transition – market risks | Risk of a decline in sales of certain plastic materials as a result of tighter requirements on plastic recycling and shifts in consumer behaviour as a result of more widespread adoption of pro-environmental attitudes Risk of a decline in product sales and not achieving the expected revenue level in the plastics segment due to increasing customer requirements prompted by attitudes of responsibility for environmental damage, including waste, caused by products throughout their life cycles and lower demand reflecting more widespread adoption of sustainable consumption | |
| Climate-related risks: physical – acute and chronic risks | Risk of increased exposure to failures, accidents and stoppages of production facilities and technological constraints resulting from physical effects of climate change Risk of failures, accidents and stoppages of production facilities due to violent storms, floods, heat waves, hurricanes, tornadoes, lightning strikes, other weather events and natural disasters resulting from the physical effects of climate change and the need to adapt industrial infrastructure and production technologies to climate change. | The Grupa Azoty Group companies have been classified as upper tier establishments (UTE). The Group has developed and put in place accident prevention programmes, and monitored and implemented legal safety requirements, including those arising from the SEVESO III Directive. Detailed contingency analyses are carried out based on the accident prevention manual and the contingency analysis approach. Technical risks are reviewed with respect to the operation of production assets and the thermodynamic status of selected machinery. Contingencies are prevented at the Grupa Azoty Group by ongoing monitoring of hazards in technological processes and operation of machinery and equipment, coupled with monitoring of hazards in storage and transport operations. |
| Risk related to transporting dangerous goods and risk of changes in regulations and/or ADR and RID exemptions Risk associated with the transport of dangerous goods and the possibility that state authorities may impose additional restrictions on the transport of dangerous substances or political decisions may lead to temporary or permanent shutdowns of transport infrastructure used by the company. | As a result of their activities, state authorities impose restrictions on the transport of dangerous substances, which may result in temporary or permanent unavailability of parts of the transport infrastructure used by the company. In order to minimise any adverse events, deliveries of dangerous goods are monitored on an ongoing basis pursuant to an internal regulation governing the transport of dangerous goods. In addition, contracts with companies that rent their rolling stock and with carriers licensed and equipped to carry out transport operations include appropriate provisions on the carriage of dangerous goods. | |
| Climate-related risks: transition – market risks | Risk related to the management of CO2 emission allowances Adverse impact of prices prevailing on the market of CO2 emission allowances within the EU ETS attributable to a limited amount of allowances put on the market, which are needed to offset CO2 emissions | The management of CO2 emission allowances at the Grupa Azoty Group is supervised by the internal EU ETS Management Committee and the EU ETS Executive Team, based on the CO2 emission allowance trading policy. Allowances are purchased according to an annual purchasing plan, following a recommendation from the EU ETS Committee and the Financial Committee. The EU ETS Management Committee, which supervises the common model for managing CO2 emission allowances at the key Group companies, tracks the implementation of purchasing plans and price developments of CO2 emission allowances. In addition, the EU ETS Executive Team keeps monitoring the market prices of allowances and analyses both short- and long-term price trends. |
| Risk related to the manufacture and storage of hazardous materials Risk involved in the management of hazardous materials and potential threats to the environment, life, health or property, or risk of other damage. | Detailed process risk analyses are carried out at the Grupa Azoty Group on a regular basis under the emergency prevention programme. Chemical Safety Reports are prepared for upper tier chemical plants at least once every five years. The Group promptly responds to any changes in regulations applicable to the production and storage of hazardous materials. | |
| Risk related to fire safety Risk that, as a result of a fire, the company’s assets will be damaged or destroyed, or that its operating activities will be curtailed or halted. | The in-house chemical rescue units responsible for the oversight of fire-fighting activities at the Grupa Azoty Group companies have fire-fighting and rescue equipment to extinguish fires and remove other localised hazards and effects of natural disasters. The Group operates an automated hazard reporting system and fire prevention system, which enables continuous fire safety oversight. | |
| Climate-related risks: transition – technology risks | Risk related to energy consumption and use, and compliance with the ISO 50001:2018 standard Risk that the company in the course of its operations will fail to take measures designed to improve its energy performance. | The Grupa Azoty Group consistently improves its processes and implements energy saving initiatives by using innovative solutions and conducting energy audits. In 2021, the Group carried out an energy review under the ISO 50001:2018 system, which helped it gather complete information on energy consumed by the organisation. |
| Climate-related risks: transition – technology and policy risks | Risk related to the monitoring and management of direct and indirect emissions of greenhouse gases and other air pollutants Risk that the company will emit excessive volumes of greenhouse gases and other air pollutants, including the risk of exceeding the emission limits specified in environmental decisions. Risk of failure to take sufficient measures to reduce emissions. | In line with the clean air commitment, the Group companies constantly monitor the volumes of air pollutants emitted by their plants. Measurements are made at intervals specified in the relevant integrated pollution prevention and control permits and reflected in the annual pollutant emission measurement schedules. All the companies operate on the basis of appropriate permits and submit their mandatory reports to external supervisory authorities in a timely manner. |
| Risk related to monitoring and management of water consumption and wastewater disposal Risk that the company will use excessive volumes of water in the course of its operations, or that the volumes or quality of wastewater discharged by the company are not compliant with the relevant permits, or that the company will not take sufficient measures to reduce its water consumption. | The Grupa Azoty Group keeps monitoring the Water Law for any amendments tightening the existing standards or introducing new requirements applicable to the company with respect to water abstraction and wastewater discharge. The Group holds all relevant legal permits regarding water and wastewater management. When designing process units and applying for permits, the Group companies estimate and account for the effect of the unit/equipment on the volume of pollutants released into the environment. The volumes and quality of wastewater discharged and water abstracted are analysed on an ongoing basis. The Grupa Azoty Group promptly responds to any relevant regulatory changes. | |
| Risk related to waste monitoring and management Risk that the company will generate and store in the course of its operations volumes of waste that are incompliant with the relevant permits/decisions and that it will not take sufficient measures to reduce the volumes of generated waste or to reuse waste. | During design work on the Group’s units and in the applications for integrated pollution prevention and control permits, the unit’s effect on the amount of generated waste is taken into account. The Grupa Azoty Group holds all legal permits related to waste management and promptly responds to any regulatory changes in the area of waste management. | |
| Risk of land pollution and related costs Risk that the company’s operations will lead to land pollution, requiring remediation, rehabilitation or reclamation measures. | The Grupa Azoty Group holds all relevant legal permits regarding soil contamination. To mitigate the risk of soil pollution, underground water on legacy pollution sites is monitored and places where hazardous substances are loaded, unloaded and stored are inspected. A detailed assessment is carried out based on the type and quantity of substances in a process unit and the measures taken to prevent the substances from polluting the soil. The Grupa Azoty Group promptly responds to any regulatory changes in the area of land pollution requirements. | |
Risk related to the use of radioactive substances Risk that radioactive substances used by the Group may adversely affect the health or life of employees or individuals present in the area of their potential impact, or that legal conditions for their use may not be met. | In order to eliminate the risk, all radioactive sources in operating apparatus are placed inside working transport containers with built-in locks preventing easy removal of the source without using special keys; the containers are screwed to a supporting structure. Radioactive sources used in process units operating in open space are additionally secured using padlocks with patented lock systems. All apparatus with radioactive sources has output signals incorporated in the units’ computer systems. During unit shutdowns or overhaul work in the immediate vicinity of radioactive sources, these sources are placed inside working transport containers in the isotope storage room. Once a year, drills are carried out at the Grupa Azoty Group to review and update the contingency plan in the event of a radiological emergency, with sealed radioactive sources used during such drills. | |
| Risk related to monitoring and managing of environmental noise levels Risk that the company will generate excessive noise emissions in the course of its operations and that it will not take sufficient measures to reduce noise levels. | During the unit design phase, equipment with appropriate parameters is selected and the location of the unit is chosen after considering the environmental impact of related noise emissions. The Group holds all legal permits regarding environmental noise. In the existing units, soundproofing cabins and acoustic silencers have been installed. In accordance with the integrated pollution prevention and control permits, the Group companies regularly monitor and analyse the measurements of noise emitted to the environment. The Grupa Azoty Group promptly responds to any regulatory changes relating to noise emissions. | |
| Climate-related risks: transition – policy risks | Policy risk arising from the climate transition occurring through implementation of the European Green Deal reforms Risk of more stringent legal requirements under the European Union’s climate policy | The Group continuously monitors projects and proposals of administrative bodies regarding new legislation or changes to the existing laws. The Group is actively involved in the work of registration consortia and European associations, and partners with Polish institutions to respond to upcoming changes in legislation. The Group conducts analyses of the risks associated with emerging regulatory trends, draft amendments, or proposed new regulations. Each regulatory development is examined by the Group to gain an understanding of its potential impact on the Group’s operations and the products it brings to the market. Amendments to EU directives and regulations applicable to the Group's key manufacturing and trading activities give rise to a potential risk that the use of the company's products by customers in the EU countries may be restricted. |
| Risk of adverse impacts on biodiversity and wild natural habitats Risk that the company’s operations will lead, directly or indirectly through its supply chain, to loss of biodiversity and destruction of wild fauna and flora. | The Group has not identified any material direct or indirect impact of its operations on biodiversity. The Group mitigates its impact on biodiversity and wildlife by conducting its operations in a responsible and environmentally sound manner. | |
| Risk of obtaining invalid test results or of failure to perform environmental and workplace pollution tests Risk of obtaining invalid results (in the context of validation of results in compliance with ISO/IEC 17025) of environmental and workplace pollution tests due to laboratory error, lack of necessary equipment, equipment failure or personnel shortages. Risk of failure to obtain the required accreditation for tests performed. | The Grupa Azoty Group has applied a process-based approach to managing environmental issues relying on interactions compliant with relevant procedures. The system of responsibility and accountability for managing key activities of the Group defines an approach where incompatibilities, opportunities and threats are analysed in terms of action needed. |
Social risks identified at the Grupa Azoty Group
Social risks identified at the Grupa Azoty Group pertain to the operations of Grupa Azoty S.A., Grupa Azoty Police, Grupa Azoty Puławy and Grupa Azoty Kędzierzyn-Koźle in Poland.
| Risk name and definition | Risk response |
|---|---|
| Risk of human rights violations at work Risk of violating the right to personal dignity, non-discrimination in employment/access to promotion, pay rise and training, fair remuneration, equal remuneration for equal work, paid leave, rest and free time, family life. | The Grupa Azoty Group diligently adheres to all provisions outlined in the Labour Code. The Group has implemented the Grupa Azoty Group Code of Ethical Conduct, the Whistleblowing Policy, and the Anti-Workplace Bullying and Anti-Discrimination Policy. Regular staff training sessions are conducted to enhance awareness among employees regarding human rights and their potential violations. Transparent and uniform rules for employee development, personnel changes and recruitment processes at the Grupa Azoty Group have been guaranteed through relevant procedures. To govern remuneration practices, there is a collective bargaining agreement in place. |
| Risk of failure to meet expectations of the public Risk of the company taking outreach initiatives that are not compatible with stakeholder needs due to lack of dialogue with the local community. | The Group has implemented and applies the Social and Sponsorship Policy, the Donation Policy and Donation Rules, the CSR Policy and the Communication Policy. Regular dialogue is maintained with local communities, meetings are held between the company’s management and local government representatives, and media monitoring with perception surveys are conducted. |
| Risk related to misalignment of shareholder interests Risk that divergence of interests among shareholders will lead to hindering and slowing down decision-making processes attributed to corporate bodies (exercising veto rights, challenging resolutions) | The Grupa Azoty Group adopted a Declaration of Compliance with Corporate Governance Principles and Best Practice for WSE Listed Companies 2016. The transparent information policy ensures that any strategic intentions are effectively communicated, while the up-to-date corporate website offers easy and clear access to all materials submitted for consideration by the General Meeting. Measures have been taken to cap the voting right at one-fifth, except for the State Treasury votes, in line with the provisions of the Grupa Azoty S.A. Articles of Association. In order to minimise this risk, Management Board plans with reasons are presented and conferences are held for investors and brokerage houses. In addition, presentations for investors and publications of current reports are prepared, with complete information published on the company’s website. |
| Risk of personal data breach | The Group continuously monitors compliance with the rules of personal data protection and personal data processing safeguards implemented at workstations. Personal data is processed pursuant to outsourcing agreements for data processing, which is the responsibility of the owner of the IT system processing the personal data and/or the process. In the case of a joint controllership agreement, the responsibility rests with the owner of the IT system processing the personal data and/or the process by means of which the data is processed, and the data is jointly controlled by two or more operators. The relevant contractual provisions governing personal data processing are based on the Grupa Azoty Group’s manual on contracting and contract performance. GDPR privacy notices, consent clauses and privacy policies are created on an ongoing basis to address the business needs, satisfying the information requirements under GDPR. Any arrangements in this respect are made at the level of the Data Protection Committee of Grupa Azoty. |
| Risk of infringing on or interfering with employees’ right to freedom of association and collective bargaining Risk of infringing on or interfering with employees’ rights to freedom of association or their right to strike, organise and bargain collectively. Risk of industrial disputes. | The Grupa Azoty Group does not prevent employees from forming labour union organisations, and there are a number of trade unions active at the Group. Labour relations are based on partnership and respect between the parties, and reflect the provisions of the collective bargaining agreement. The trade unions have been granted the use of the employer’s property. |
| Risk of accidents at work, occupational ill-health and other threats Risk of accidents at work (e.g. during production or transport) that may endanger human health and safety, cause damage to property, environmental pollution, reputational losses for the company or other adverse consequences, as well as risk of occupational ill-health and resulting indirect or direct financial impacts for the company | The OHS staff at the Grupa Azoty Group carry out regular on-site inspections and participate in accident and emergency teams. Any near-miss event reported by employees in electronic or paper form is reviewed by the OHS function. A register of hazards, near-miss incidents and ‘STOP Accidents’ observations is kept and updated on an ongoing basis in an online database. In order to prevent any dangerous situations, the Grupa Azoty Group companies share information by posting conclusions from the investigation of near-miss incidents on an online platform. |
| Risk of loss of employees with competencies of key importance to the Company due to a high attrition rate Risk of failure to secure availability of personnel with relevant competencies to carry out day-to-day operations and development projects as a result of difficulties in hiring and retaining staff or employees retiring. | In order to ensure the highest standards across all areas of its operations, the Group offers an attractive employee proposition in terms of pay, training opportunities and non-pay benefits. |
| Risk to employee health and safety arising from widespread incidence of communicable diseases Risk that the health and life of employees on areas covered by the Grupa Azoty Group’s operations may be threatened by an epidemic or epidemic emergency (within the meaning of Art. 2 of the Act on Preventing and Combating Infections and Infectious Diseases in Humans of December 5th 2008) or a natural disaster (within the meaning of Art. 3.1.3 of the Act on the State of Natural Disaster of April 18th 2002). | In connection with the spread of the SARS-COV-2 pandemic in Poland and globally, a number of mitigation measures were identified and planned. Work organisation was changed at the Grupa Azoty Group to reduce contact between employees. The measures taken included: a ban on meetings, procedures for changing work patterns so that employees working one shift did not come into contact with those working the next, working from home, procedures in the event of a confirmed infection, testing employees for COVID-19. Grupa Azoty also established a COVID-19 crisis management team to continuously monitor the situation, make decisions on preventive measures and issue guidelines on what steps to take. Moreover, epidemiological forecasts issued by central authorities, the National Sanitary Inspectorate, the Ministry of Health and the Sanitary Inspectorate are monitored on a regular basis. |
Governance risks identified at the Grupa Azoty Group
| Kategoria ryzyka wg TCFD | Nazwa ryzyka wraz z definicją | Odpowiedź na ryzyko |
|---|---|---|
| Risk of violation of ethical principles and standards Risk of violations of the code of ethical conduct, anti-corruption policy, conflicts of interest policy, whistleblowing policy and gift policy | The Group has implemented and applies the Grupa Azot Code of Ethical Conduct, the Trading Partners Code of Conduct, the Anti-Corruption Code, the Whistleblowing Policy, the Conflicts of Interest Policy, and the Gift Policy. Regular staff training is provided to increase awareness among employees of potential misconduct. The Group operates a Compliance Management System. | |
| Climate-related risks: transition – policy and legal risks | Risk related to investor relations and compliance with disclosure requirements Risk that the company will not comply with its obligations resulting from stock market listing | To ensure uniform legal interpretation of disclosure requirements and uniform compliance, the Grupa Azoty Group companies that are stock issuers use the services of the same legal advisor with respect to their disclosure obligations. A uniform information policy ensures oversight of information flow and communication processes across the Grupa Azoty Group, in line with the adopted management model. To improve the effectiveness of efforts taken, training on disclosure requirements and information policy is held and electronic mail is monitored on a continual basis by persons whose email addresses have been identified as the addresses to be used for providing notifications with respect to the Group’s information policy. |
| Climate-related risks: transition – reputation risks | Reputational risk related to ineffective communication of social initiatives and ESG projects Risk related to negative perception of the company by the public and downgrades of ESG ratings due to insufficient disclosures, incomplete reporting of ESG activities and insufficient preventive measures to counter the chemical sector’s stigmatisation. | To mitigate negative activity, the Group has implemented internal rules and regulations governing its social and sponsorship policies as well as a communication policy incorporating the Group’s rules on image building. In addition, the contracts and agreements contain appropriate provisions to safeguard the interests of third parties, the parties' representations, and anti-corruption and confidentiality rules. Should trading parties fail to comply with their terms and conditions, the following steps can be taken: imposing contractual penalties, taking legal action, terminating cooperation or performing inspections/audits. |
| Risk related to negative impact on the company brand Risk of negative perception of the company by the public and media. Loss of the brand reputation | Grupa Azoty S.A. monitors the media, responds to press inquiries, and develops communication concepts for image-building projects (e.g. core business, CSR and sponsorship), taking into account the internal and external communication procedure and the Grupa Azoty Group communication policy. |
Climate-related opportunities table, according to TCFD
Resource efficiency
| TCFD examples | Opportunity response | |
|---|---|---|
| a | The Grupa Azoty Group continuously improves its processes and implements energy saving initiatives by using innovative solutions and conducting energy audits. In 2021, the Group carried out an energy review under the ISO 50001:2018 system, which helped it gather complete information on energy consumed by the organisation. An upgrade of the hot water network is currently in progress. The project will help reduce heat losses in transmission pipelines and ensure security of heat supplies to customers. The implementation of the New Energy Concept is under way. Benefits will include lower demand for electricity and steam required in industrial processes and partial replacement of coal with gas in steam production. A range of projects are being carried out to reduce heat consumption, such as the construction of a turbine generator which will enable the use of waste heat for electricity generation. Moreover, Grupa Azoty Kędzierzyn is implementing a key project aimed at ensuring the company’s energy security and good prospects for the future, and at driving down the consumption of primary raw materials, curbing carbon dioxide emissions, and energy intensity of the company’s core production. The new power generation concept will be based largely on the use of process heat from chemical installations. |
Energy sources
| TCFD examples | Opportunity response | |
|---|---|---|
| a | The Grupa Azoty Group will work towards becoming an emission-free energy producer by 2030. The majority of renewable energy investments will involve the Group’s own assets, but engaging in third-party project also remains an option. In line with the adopted objectives, the total capacity of new renewable energy sources is expected to reach ca. 300 MW by 2030. The Group expects that the planned projects will allow it to save more than PLN 200 million per year on electricity purchases, and the average share of renewables in the energy mix will reach 40%. |
Products and services
| TCFD examples | Opportunity response | |
|---|---|---|
| a | As part of its innovation strategy, the Grupa Azoty Group will focus on innovation across the following four areas: innovative projects, enhancement of the innovation system, support for corporate projects and innovation geared towards minimising the impact of policy risks. The goal will be to deliver high quality new or improved products and to maintain a long-term competitive advantage. The required expenditure on research, development, pilot plants and innovation at the Grupa Azoty Group in 2030 is estimated at 2–3% of the Group’s revenue. |
| b | Biodegradable coatings for granular fertilizers being developed in collaboration with Compo Expert, fertilizers for application in forest areas, urease and nitrification inhibitors and fertilizer formulas enriched with micronutrients from utilised waste streams. Speciality fertilizers reduce losses of nutrients, and the efficiency of such products is 50% higher than that of traditional ones, with fertilizer application reduced by 20%. | |
| c | Market roll-out of the Fosfarm product line, comprising modern and environmentally friendly NPK fertilizers manufactured in accordance with the principles of sustainable development, including circular economy. | |
| e | The Grupa Azoty Group is the first of Central and Eastern Europe’s producers to offer fully biodegradable plastics. Grupa Azoty S.A. launched a pilot line for the production of thermoplastic starch with an annual capacity of 300 tonnes. It uses a proprietary technology (patented in 2020) for manufacturing biodegradable polymers to be used by the packaging industry of the future. | |
| f | Implementation of the technology for recycling polymer plastics (polyolefins, polyamides) or recovery of phosphorus and potassium from alternative sources. | |
| g | Production of polyamide 6 and its compounds – materials used by the automotive industry to reduce the weight of cars and thus fuel consumption. |
Markets
| TCFD examples | Opportunity response | |
|---|---|---|
| a | Key initiatives undertaken in the energy area will be a cornerstone of Green Azoty, the Group’s flagship project. The Group is performing economic and technical analyses of electricity production from its own renewable sources. The aim is to reduce the carbon footprint of products and decarbonise the Group’s processes. As a member of the European Clean Hydrogen Alliance, in the coming years the Grupa Azoty Group will actively participate in the EU’s legislative work related to the classification of green hydrogen. The company is an active member of the Hydrogen Agreement, developing a framework for the national hydrogen economy within individual working groups. Grupa Azoty is also a member of the European Clean Hydrogen Alliance, a project launched by the European Commission, which aims to deploy hydrogen as an alternative energy carrier in Europe. The Group is running a number of development initiatives, including projects focused on fuel-cell hydrogen technologies. Its solutions may be instrumental in providing an efficient source of power for rolling stock and developing hydrogen and ammonia production from renewable energy sources that could serve as a railway fuel. Key initiatives undertaken in the energy area will be a cornerstone of Green Azoty, the Group’s flagship project. The Group is performing economic and technical analyses of electricity production from its own renewable sources. The aim is to reduce the carbon footprint of products and decarbonise the Group’s processes. As a member of the European Clean Hydrogen Alliance, in the coming years the Grupa Azoty Group will actively participate in the EU’s legislative work related to the classification of green hydrogen. The company is an active member of the Hydrogen Agreement, developing a framework for the national hydrogen economy within individual working groups. Grupa Azoty is also a member of the European Clean Hydrogen Alliance, a project launched by the European Commission, which aims to deploy hydrogen as an alternative energy carrier in Europe. The Group is running a number of development initiatives, including projects focused on fuel-cell hydrogen technologies. Its solutions may be instrumental in providing an efficient source of power for rolling stock and developing hydrogen and ammonia production from renewable energy sources that could serve as a railway fuel. |
| b | In accordance with the European Green Deal, a significant part of the Grupa Azoty Group’s research and development resources will be geared towards climate neutrality targets. As part of Green Azoty, the Group will also implement projects in areas such as electric mobility, i.e. development of fuel cells and materials used in their production. In addition, the Group is exploring the feasibility of SMR (Small Modular Reactors) as a stable source of zero-carbon energy. Such reactors could help stabilise the Grupa Azoty Group’s energy mix and guarantee a competitive price of energy utilities. |
