Local communities are a very special category of stakeholders. As part of our strategic approach to managing relations with this group of stakeholders, we respond to the real needs and expectations of individual communities, and we support their economic growth.

Local communities, or to be more precise "effective cooperation with social and business partners based on the principles of partnership and dialogue", constitute one of the 6 pillars of the Sustainable Development and Corporate Social Responsibility Strategy of the PGNiG Capital Group. The strategy is correlated with the Group's other strategic documents: the business strategy of the PGNiG Capital Group updated in 2014, and the strategy for building social dialogue and conducting social debate concerning shale gas exploration, which is based on Stakeholder Engagement Standard AA1000SES (more information about social dialogue strategy are available in our previous CSR Report 2013 - chapter  7.2.3). Detailed information about our approach to sustainable development and social dialogue is available here.

PGNiG is aware that its operations influence selected communities, and it regularly monitors the effectiveness of the relevant protective measures. The undertaken initiatives are evaluated, and the results constitute a valuable source of knowledge for our organization which enables us to improve the applied tools and revise our social dialogue policy. PGNiG continues to monitor its operations, the welfare of local communities and the local business environment. After the local elections of 2014, the company decided to stage meetings with the new authorities of the municipalities in which it operates. The meetings were scheduled for the first half of 2015.

PGNiG fully complies with its legal obligations when building relations with local communities. In Poland, where our operations are most likely to affect selected regions, local communities' rights are protected by the Act of 3 October 2008 on releasing information about the environment and environmental protection, the community's involvement in environmental protection and environmental impact statements. In its efforts, PGNiG goes beyond the statutory requirements to provide local communities with access to knowledge and education.

Our local initiatives are geared towards achieving the goal of our sustainable development strategy, which is to establish effective cooperation with social and business partners based on the principles of partnership and dialogue. PGNiG makes every effort to identify a given community's current needs and expectations. Before launching operations in a given location, we meet with the local authorities and residents to answer any questions regarding our business.

We have a highly customized approach to every community. The number of meetings, consultations and workshops is determined by local residents' needs. In our communication, we rely on social dialogue as a tool for articulating and exploring the needs and expectations of local community members.

PGNiG builds good neighborly relations by supporting schools, road construction projects and sponsoring important events in the local arena. As a good neighbor, we feel responsible for preserving a given region's unique customs, traditions and heritage. Our communication efforts also involve educational activities and the provision of vital information which will enable local residents to understand our operations.

Our employees are a very important part of local communities where they play the role of PGNiG's informal ambassadors. Their direct involvement in local initiatives, membership in employee councils and trade unions significantly contributes to the community's growth.

Social dialogue concerning shale gas exploration in Poland is an important part of our efforts to build good relations with local communities.
In 2014, PGNiG continued educational measures initiated with the aim of establishing social dialogue. The company's website at www.polishshalegas.pl is an important platform for communication which features vital information about shale gas exploration, the company's presence in Polish municipalities and general information about the applied technology and PGNiG's operations on domestic and foreign markets.

Social dialogue concerning shale gas exploration also involves meetings with local community representatives, including local authorities, residents and non-governmental organizations. Direct communication is established to increase local communities' awareness about our operations, to educate them about shale gas exploration, build valuable relations based on trust, and initiate cooperation that relies on honest and transparent two-way communication.

The key measures undertaken by PGNiG in 2014 in the process of managing communication with local communities regarding shale gas exploration operations in Poland are presented in the below chart.

PGNiG's commitment to local affairs also involves charity work, and the relevant activities and services are provided by PGNiG's Ignacy Łukasiewicz Foundation.

The Foundation supports projects and initiatives in the area of culture, national heritage, education in basic and technical sciences, sports and competition as behavioral tools for motivating children and adolescents, as well as health protection. Most of the Foundation's projects are carried out in collaboration with program partners to ensure that our aid is used as effectively as possible and that it reaches beneficiaries in greatest need across Poland.

The Foundation implemented the following programs in 2014:

• STUDENT VOLUNTEERS

PGNiG's Foundation is a long-standing strategic partner of the Projector – Student Volunteers program initiated by the Polish-American Freedom Foundation and implemented by the Volunteering Development Foundation. As part of the program, student volunteers run educational activities for children who live in small towns (with a population below 20,000) and villages. The aim of the program is to create equal educational opportunities for Polish children and adolescents.

The Young Nobel educational campaign was launched in 2010. The campaign encourages children and youths from small towns and rural areas to expand their knowledge of science. Student volunteers teach classes, run presentations and workshops in chemistry, physics, astronomy, biology, geography, computer science, forensic science, mathematics and mechatronics.
The 5th campaign covered 967 projects involving around 15,500 students, and it featured 12 Educational Picnics.
Volunteers participated in a film competition. In 2014, more than 500 student volunteers contributed to the program.

• SCHOLARSHIP FUND

One of the Foundation's key statutory goals is to promote and support special achievements in basic and technical sciences among children and adolescents. Contemporary youths have a waning interest in technical sciences, and to address that problem, the Foundation's Board has created the Scholarship Fund to promote the most hard-working and talented students and to motivate them to deepen their knowledge and expand their horizons.
In 2014, the Foundation awarded 32 scholarships totaling PLN 115,000.

• SCHOOLS SPONSORED BY THE IGNACY ŁUKASIEWICZ FOUNDATION

In 2014, the Foundation donated funds to schools for extracurricular activities and purchases of teaching aids. The initiative prompted partner schools to stage a total of 2000 class hours which were attended by around 3500 students. The funds were also used to organize field trips for children and adolescents.

The reported initiatives and programs targeting local communities are only a fraction of PGNiG Capital Group's commitment to furthering the growth of areas where it operates. PGNiG SA's branches and Capital Group companies implement a wide range of projects engaging members of local communities. Around 30 such initiatives were undertaken in 2014, and they have been described in the good practice report of the PGNiG Capital Group. Detailed information about all CSR activities initiated on behalf of local communities in 2014 is available here. 

PGNiG also supports initiatives that promote stable and harmonious economic growth of regions and improve the quality of life of present and future generations in areas where it operates. Before a given project is approved for funding, it is consulted with the local authorities, local residents and social partners to ensure that it complements other measures aiming to build good relations with the local community.

In 2014, PGNiG launched regional development projects worth more than PLN 250,000. Those funds were used to purchase medical equipment for health service facilities, sports equipment to promote physical activity in local communities, teaching aids for schools, and they were invested in projects aiming to improve local safety standards. All financed initiatives were pro bono projects.

The leading projects initiated by PGNiG in 2014 with the aim of promoting the development of local infrastructure and providing services to local communities are presented below.

In the process of building good neighborly relations, PGNiG makes every effort to address issues that are vital for local communities and to work out effective compromises that enable both parties to coexist peacefully on a given territory.

Yet despite our best efforts, we are not always able to identify and comply with all of our stakeholders' expectations, which can breed conflict between the local community and the company. In difficult situations, we do our best to find solutions that are satisfactory for both parties.
Owing to its effective policy of social dialogue, PGNiG was a party to only three minor disputes with representatives of local communities in 2014. We made every effort to arrive at a positive solution to all conflicts.

Sponsoring projects are important tools for building relations with our stakeholders.

Since 2010, PGNiG has been the Strategic Sponsor of Polish Handball. Over the past five years, we have been actively supporting Polish Women's and Men's Senior National Teams, Youth National Teams, the Handball Super League and the Polish Women's and Men's Championships.

PGNiG is also actively involved in other handball-related projects. In 2014, the PGNiG Ignacy Łukasiewicz Foundation launched the PGNiG Little Champions' Academy. The project aims to create physical fitness opportunities for grade school students by deepening their interest in handball. Classes are taught by qualified coaches as part of an innovative training system modeled on Danish and German solutions.

In the past two years, PGNiG organized elimination tournaments for the Polish Beach Volleyball Championship. Beach volleyball, an exhibition sport, has been steadily garnering popularity among both athletes and fans in Poland. It will be an official sports event during the World Games 2017 in Wrocław.

PGNiG participates in a variety of events that leave a lasting mark on Polish art and culture in both the national and local dimension. We support initiatives that benefit local communities. PGNiG is the official sponsor of the Polonia Theater and Och Theater in Warsaw, Stary Theater in Lublin, and 6. piętro Theater in Warsaw.

With the aim of educating future generations of highly qualified workers for various segments of the national economy, including the gas and oil industry, PGNiG actively participates in scientific initiatives that promote knowledge transfer, such as congresses, conferences and symposia. We work with numerous universities, including the AGH University of Science and Technology in Kraków, Warsaw University of Technology, and the University of Gdańsk.

In 2014, the Management Board of PGNiG adopted the PGNiG Capital Group's Sponsorship Strategy for 2015-2016 and the Principles for managing sponsorship activities in the PGNiG Capital Group. Both documents will improve the management and cohesion of sponsorship projects launched by members of the Capital Group.

Friendly Match Poland - Denmark, 20 June 2015, Kraków, foto Grzegorz Trzpil

„Play it again, Sam” performed at the Teatr 6.piętro. Photo: Rafał Latoszek.