Bogdanka with new ESG Strategy. The Company is committed to a fair and sensible transformation
The Company has announced a new ESG Strategy for 2025-2030 with an outlook to 2035. The document sets out the Company's key Environmental, Social and Governance (ESG) objectives and activities, responding to the challenges of the energy transition, regulatory changes and stakeholder expectations.
ESG Strategy is an integral element of LW Bogdanka's updated development strategy. It has been developed following an in-depth analysis of the regulatory, market and social environment and a series of workshops with management and ESG experts. It takes into account e.g., the requirements of the CSRD directive of the ESRS standards, the results of the double materiality analysis (DMA), as well as the strategic development directions of the Enea Group.
An ESG Strategy is not just a formal document, but a real commitment to our environment. It shows that Bogdanka wants not only to survive the period of transformation, but to actively co-create it. Responsibility and absolute maintenance of a high level of safety towards people and the environment, along with well-considered investments ensuring the preservation of jobs in the Region. We assume a coordinated policy to improve mining and non-mining qualifications, correlated with extraction and transformation plans,
– stresses Zbigniew Stopa, President of the Management Board of LW Bogdanka.
Eight programmes – one objective: sustainable development
The new ESG Strategy comprises 8 strategic programmes described in 26 operational initiatives, the implementation of which has been linked to the business strategy and non-financial reporting requirements. All programmes can be grouped into environmental ('Optimising the Impact of Infrastructure', 'Used Resources', 'Effective for the Climate'), supporting employees and the nearest communities ('Best Personnel', 'Safe Workplace', 'Employee Wellbeing'), and programmes from the area of responsible and modern management (‘Leader of Change’, ‘Innovation and Development’).
Our approach combines the stability of our core business with the development of new competencies and projects that will support our Group and local communities for decades to come. ESG objectives support the development of entrepreneurship in the Lublin region and the creation of jobs in low-carbon sectors, which is a direct result of our business strategy. We will design and implement solutions to ensure responsibility in new branches of LW Bogdanka's development,
– says Sławomir Krenczyk, Deputy President of the Management Board for Development.
ESG as a compass for change and a management tool
The new strategy is a response to the growing expectations of financial institutions, investors and business partners, for whom compliance with ESG is becoming a condition for cooperation and access to capital.
Transformation does not mean abandoning the core business but adapting it to new realities. As a coal producer, we are still responsible for the country's energy security. However, our emphasis will be on ensuring that the extraction process has as little impact as possible on environmental aspects and does not generate damage. With the use of modern technologies, experienced practitioners and the knowledge of the scientists we work with, this is possible,
– points out Bartosz Rożnawski, deputy President of the Management Board for Production.
The strategy was built on the basis of an analysis of foundational data within the organisation and the external environment – e.g., ESG legislation. Extensive internal and external consultation has also taken place to ensure that the strategy meets the requirement for usability and relevance.
Social and local context: responsibility towards the region
Bogdanka is consistently strengthening its social influence in the region. The ESG Strategy includes a number of measures to support a fair transition and limit its negative consequences – including social exclusion of the post-mining regions' inhabitants.
Each project implemented as part of the Strategy must meet at least 3 of the 8 cross-cutting CSR criteria, such as impact on increasing workplace safety, stakeholder education, employee volunteering, or cooperation with partner schools.
Such a comprehensive approach to environmental, social and management activities will simplify compliance with financial and non-financial reporting obligations but will also improve the results of external audits and ratings in which we are analysed. The chosen, specific and ambitious indicators of success will help our stakeholders to assess the effectiveness of the implementation of ESG strategy, and for us to communicate the organisation's impact on the environment,
– highlights Artur Wasilewski, Deputy President of the Management Board for Economic and Financial Affairs.
What’s next? Implementation, monitoring and reporting
Implementation of the Strategy will be carried out according to the operational plan, involving the established ESG Committee and dedicated project teams. Measurable targets and indicators (KPIs), schedules, as well as a system for monitoring and annual reporting of results through sustainability reporting will be implemented.
Lubelski Węgiel Bogdanka S.A. is a leading hard coal producer in Poland that stands apart from its peers in terms of its modern and efficient mining. It is one of the largest Polish hard coal mines. Lubelski Węgiel Bogdanka S.A. chiefly conducts mining operations in terms of hard coal extraction, enrichment and sales. It supplies this raw material mainly to industrial offtakers. Supply contracts are long-term, and the product is sold to the commercial power sector and the industrial power sector.
The company has been listed on the Warsaw Stock Exchange since June of 2009. In August 2022, Lubelski Węgiel Bogdanka S.A. returned to listing on the WIG-ESG Index.
Since October of 2015 Bogdanka has been a member of the Enea Group, the second largest player on Poland’s electrical power market in terms of the generation of electricity, which manages the entire value chain on the electricity market ranging from fuel to the generation of electricity, distribution, sales (supply) and customer service.