Consolidated non-financial statement Environmental aspects of operation

Materials

GRI No. AREA
EN 1 Used raw materials/materials by weight and volume
Oil processing [tonnes]
Specification 2005 2006 2007  2008 2009
Total oil 4,836,900 6,098,600 6,156,431 6,203,414 5,461,540
Raw materials and components 1,088,605 1,146,989 1,699,034
Improvers 2,052 1,825 2,229
GRI No. AREA
EN 2 Percentage of materials stemming from recycling used in the production process

Due to the nature of Grupa LOTOS operations, it may use recycled products only to a limited extent. Each of the LOTOS Group companies involved in production activity is subject to the statutory obligation of disposing of the used material for recycling via external Recycling Organizations. However, the potential of reuse of the recycled products is also very limited in this case.

Energy

GRI No. AREA
EN 3 Direct energy consumption by original energy sources
Specification u.o.m. Direct, purchased sources of energy Direct, produced sources of energy Direct, sold sources of energy Direct, total consumption of energy
Natural gas GJ 801,742 801,742
Fuel gas GJ 6,092,455 6,092,455
Fuel oil HSFO GJ 2,553,180 2,553,180
Fuel oil LSFO GJ 3,694,288 3,694,288
Electricity GJ 6,912 -6,912
Thermal energy GJ 25,442 -25,442
Total GJ 4,496,030 8,645,635 32,354 13,109,311
GRI No. AREA
EN 4 Indirect energy consumption by original sources of energy


Specification
Unit of measure Average-advanced purchased energy
Electricity GJ 963,277


GRI No.
AREA
EN 5 Volume of energy saved through maintenance/overhauls of infrastructure and the improved energy efficiency of tools used before

In 2009, an IT system of energy consumption visualization and optimization – Visual Mesa by Soteica – was launched at the refinery in Gdańsk. The programme provides non-stop monitoring of the power infrastructure of the refinery – the systems of gas and fuel oil as well as process steam – and suggest changes to the power system based on optimization algorithms, which result in the reduced costs of operations. It is difficult to estimate the impact of the programme for optimising the energy system of the refinery on the savings in energy consumption, because 2009 was the year of continuous changes in the power system – new production systems were started together with new elements of the power media and auxiliary system. It is not possible to estimate the energy consumption had the system not been introduced. According to estimates before the launch, the optimization reduces energy consumption by 2-3%, which for 2009 would mean the reduction of energy consumption by almost 300,000 GJ, i.e. burning about 6,800 tonnes of fuel oil less.

GRI No. AREA
EN 6 Initiatives undertaken to provide products and services that are energy efficient and based on renewable energy and reductions of power requirements due to such measures

Fuel products produced by Grupa LOTOS are composed according to the requirements of the National Index Target concerning the share of renewable raw materials in road fuels. Both gasoline and diesel oil contain biocomponents produced with renewable sources. A scientific discussion continues about the impact of biocomponent application on the reduction of emission, therefore Grupa LOTOS will introduce the Life Cycle Assessment ( LCA ) analysis, which tests energy consumption during the whole production chain.

Water

GRI No. AREA
EN 8 Total water consumption by sources
[m3] 2005 2006 2007 2008 2009
underground 136,065 168,110 144,907 179,735 209,147
surface 2,252,811 2,559,165 2,598,158 2,520.,603 3,557,093
Total 2,388,876 2,727,275 2,743,065 2,700,338 3,766,240
NR GRI AREA
EN 9 Water sources depleted due to excessive consumption

Grupa LOTOS does not affect significantly any sources of surface water, i.e. it does not exceed the value of so-called unalterable flow in the Motława River (0.56 m3/s). The average water consumption is below 5% of the average flow in the river.

GRI No. AREA
EN 10 Percentage and total volume of treated and recycled water
[m3] 2005 2006 2007 2008 2009
Production of process water from treated sewage 989,710 801,575 891,708 845,397 870,230

Biodiversity

GRI No. AREA
EN 11 The location and area of owned, leased or rented land located in protected land or land of high value in terms of biodiversity outside the protected areas or adjacent to such areas

Detailed information on the locations and areas of owned, leased or rented by Grupa LOTOS and commercial companies of the LOTOS Group land located in protected areas or land of high value in terms of biodiversity outside the protected areas or adjacent to such areas is available on the website of Grupa LOTOS.

GRI No. AREA
EN 12 Description of material impact of operation, products and services on biodiversity of protected areas and areas of high biodiversity outside protected areas

The proper use of Grupa LOTOS products does not cause any material impact on the environment.

GRI No. AREA
EN 14 Strategy, actions and management plan for the impact on biodiversity

No negative impact of the production activity by Grupa LOTOS has been found on the biodiversity level in the land, fresh water an sea environment. Actions taken by the commercial companies of the LOTOS Group have been presented on the website of Grupa LOTOS.

GRI No. AREA
EN 15 Number of species listed in the Red Book of the International Union for Conservation of Nature and the domestic lists of endangered species identified on the area affected by the organization according to the level of extinction hazard

The operation of Grupa LOTOS does not cause any hazard to species listed in the Red Book of IUCN.


Emission, sewage and waste

GRI No. AREA
EN 16 Total direct and indirect emission of greenhouse gases by weight
Emission [thousand tonnes / year]
2005 2006 2007 2008 2009
CO2 979 1,154 1,153 1,135 1,121
GRI No. AREA
EN 18 Initiatives taken to reduce the emission of greenhouse gases and the effects

Grupa LOTOS has taken several initiatives to achieve this aim, namely:

  • computer system of energy consumption visualization and optimization,
  • recovering and reusing flared gases – the initial stage is being implemented (concept, profitability, etc.),
  • analysis of the potential application of CO2 sequestration techniques combined with the operation of LOTOS Petrobaltic, and
  • introducing natural gas to the power supply system of Grupa LOTOS.
GRI No. AREA
EN 19 Emission of substances that deplete the ozone layer by weight

Grupa LOTOS does not use or emit any substances that deplete the ozone layer.

GRI No. AREA
EN 20 Emission of NOx and SOx compounds and other material compounds emitted to air by type and weight
Emission [tonnes/year]
2005 2006 2007 2008 2009
SO2 6,216 4,859 4,808 5,022 4,170
Maximum acceptable value of SO2 8,256 8,256 6,056 6,056 6,470
NO2 1,442 1,601 1,583 1,317 1,132
Maximum acceptable value of NO2 2,262 2,262 2,262 2,095 2,405
Dust 339 364 282 306 220
/Dust from the power plant 97 94 82 86 84
Maximum value of dust / maximum value for the power plant 448 - - - 521
163 163 163 163 209
GRI No. AREA
EN 21 Total volume of discharged sewage by quality and target destination
Volume of discharged sewage [m3]
Receiver 2005 2006 2007 2008 2009
Rozwójka 3,837,217 3,960,830 3,873,534 3,294,540 4,083,604
Martwa Wisła 379.080 724,249 1,094,220
Total 3,837,217 3,960,830 4,252,614 4,018,789 5,177,824

Parameters of treated sewage discharged to the receivers from Grupa LOTOS by years were as follows:

Rozwójka
2005 2006 2007 2008 2009
pH 7.9 7.9 7.8 -- --
maximum acceptable values 6.5 – 9.0 6.5 – 9.0 6.5 – 9.0 -- --
BZT [mg O2/dm3] 11.6 7.4 7.5 -- --
maximum acceptable value 15 20 20 -- --
ChZT [mg O2/dm3] 46.3 43.4 50.9 -- --
maximum acceptable value 70 100 100 -- --
General suspensions [mg /dm3] 12.1 7.2 7.3 9 9.6
maximum acceptable value 30 35 35 35 35
Volatile phenols [mg /dm3] 0.011 0.009 0.011 -- --
maximum acceptable value 0.3 0.08 0.08 -- --
Substances extracted with oil ester [mg /dm3] 1.1 1.1 2.2 -- --
maximum acceptable value 40 40 40 -- --
Oil hydrocarbons [mg /dm3] -- 1.7 1.25 1.54 1.64
maximum acceptable value -- 5 5 5 5
General nitrogen [mg N/dm3] 6.8 5.7 4.9 -- --
maximum acceptable value 25 25 25 -- --
General phosphorus [mg P/dm3] 0.65 0.5 0.4 -- --
maximum acceptable value 2.5 2.5 2.5 -- --
Sulphides[mg S/dm3] 0.027 0.008 0.01 -- --
maximum acceptable value 0.2 0.16 0.16 -- --
Nickel [mg Ni/dm3] -- 0.0158 0.0127 -- --
maximum acceptable value -- 0.4 0.4 -- --
Vanadium [mg V/dm3] -- 0.066 0.0243 -- --
maximum acceptable value -- 1.6 1.6
Aluminium [mg Al/dm3] -- 0.0712 0.0867
maximum acceptable value -- 2.4 2.4
Martwa Wisła
2005 2006 2007 2008 2009
pH -- -- 7.5 7.9 7.5
maximum acceptable value -- -- 6.5 – 9.0 6.5 – 9.0 6.5 – 9.0
BZT [mg O2/dm3] -- -- 2.6 3.9 5.5
maximum acceptable value -- -- 20 20 25
ChZT [mg O2/dm3] -- -- 56.4 54.8 51.5
maximum acceptable value -- -- 100 100 125
General suspensions [mg /dm3] -- -- 5.6 8.6 12.5
maximum acceptable value -- -- 35 35 35
Volatile phenols [mg /dm3] -- -- 0.002 0.003 0.005
maximum acceptable value -- -- 0.08 0.08 0.1
Substances extracted with oil ester [mg /dm3] -- -- 2.7 1.2 1.21
maximum acceptable value -- -- 40 40 50
Oil hydrocarbons [mg /dm3] -- -- 1.1 0.51 0.73
maximum acceptable value -- -- 5 5 5
General nitrogen [mg N/dm3] -- -- 3.1 4 4.3
maximum acceptable value -- -- 25 25 30
General phosphorus [mg P/dm3] -- -- 0.4 0.4 0.9
maximum acceptable value -- -- 2.5 2,5 3
Sulphides [mg S/dm3] -- -- 0.004 0.01 0.01
maximum acceptable value -- -- 0.16 0.16 2
Nickel [mg Ni/dm3] -- -- 0.0124 0.0089 0.0548
maximum acceptable value -- -- 0.4 0.4 0.5
Vanadium [mg V/dm3] -- -- 0.0296 0.0254 0.0679
maximum acceptable value -- -- 1.6 1.6 2
Aluminium [mg Al/dm3] -- -- 0.032 0.0383 0.0420
maximum acceptable value -- -- 2.4 2.4 3.0

In 2005–2007 (first half year) the precipitation and drainage waters as well as production sewage, oiled water and sanitary seweage, after treatment, were discharged with one outlet to the receiver, i.e. the Rozwójka River. In the second half of 2007, the discharged streams were separated. The precipitation and drainage water is discharged to the Rozwójka River, while the production sewage, sanitary sewage and oiled water, after treatment, is discharged to the Martwa Wisła.

GRI No. AREA
EN 22 Total weight of waste by type and disposal method
Year 2005 2006 2007 2008 2009
Waste produced in year 8,280 8,294 9,100 8.,06 10,305
including:
Hazardous waste 4,327 3,919 4,151 4,126 4,242
Waste other than hazardous 3,953 4,375 4,949 4,680 6,063
Waste stored as of the end of the previous year 4,672 3,882 3,446 3,680 3,367
Total: waste to be managed during the year 12,952 12,176 12,546 12.,486 13,672
Maximum acceptable value (data from the integrated permit) 57,991 57,991 57,991 57,991 89,627
Recycled waste (recycling) 8,012 8.,69 8,765 8,964 10,215
Neutralized waste, including: 1,058 361 101 155 1,243
Incineration 36 99 966
Disposal to a storage facility 65 56 277
Waste stored at the site as of the end of the year 3,882 3,446 3,680 3,367 2,214
including:
hazardous 1,249 1,119 970 988 953
other 2,633 2,327 2,710 2,379 1,261
GRI No. AREA
EN 23 Total number and volume of material leakage

In 2009, out of 16 failures that occurred, there was one of significance for the environment, namely the leakage of product/diesel oil due to the criminal drill on the pipeline transporting the product to the port. It is not possible to determine the volume of diesel oil that leaked. The scale of the event and the method of repairs were determined.

GRI No. AREA
EN 24 Weight of transported, imported, exported and processed waste classified as hazardous (according to Annexes I, II, III and VIII of the Basel Convention) and the percentage of waste in transboundary movement

In 2009, Grupa LOTOS exported 286,768 tonnes of hazardous recycled waste. Moreover, 4,277 tonnes of hazardous waste were disposed of domestically, including 3,330 tonnes to be recycled and 947 tonnes to be neutralized.

GRI No. AREA
EN 25 Type, size, protective status and importance for biodiversity of water regions and habitats that are affected significantly by water discharged by the organization and leakage

The receivers of water and sewage from Grupa LOTOS do not hold the status of protected water regions. There is no hazard for the biodiversity in these receivers.

Products and services

GRI No. AREA
EN 26

Initiatives aimed at minimising the impact of products and services on the environment and the effect of such initiatives

Initiatives aimed at limiting the negative impact of products and services on the environment, due to the nature of the business, are taken by individual companies of the LOTOS Group, in particular by: LOTOS Asfalt, LOTOS Oil, LOTOS Paliwa, LOTOS Parafiny and LOTOS Kolej. Projects implemented by the entities of the LOTOS Group have been presented on the website of Grupa LOTOS.

GRI No. AREA
EN 27 Percentage of recovered materials from the sold products and their packaging by categories of materials

According to the Act of 11 May 2001 on the obligations of entrepreneurs within management of certain waste and the product charges and the deposit charges, the management relative to recovery and recycling of packaging waste and used products as well as the recovery and regeneration of lubricating oils as falling under obligations of selected companies within achieving the aforementioned required levels, have been transferred to specialist recycling organizations. The detailed data for 2009 concerning the fulfilment of the waste management by the commercial companies of the LOTOS Group have been presented on the website of Grupa LOTOS.

Compliance

GRI No. AREA
EN 28 Value of material fines and the total value of non-financial sanctions for non-compliance with laws and regulations concerning environmental protection

No cases of violations of and/or non-compliance with environmental laws and regulations by Grupa LOTOS occurred in the period given analysed.

Transport

GRI No. AREA
EN 29 Material impact on the environment due to transport of products, other goods and materials used in the operation of the organization and the transport of employees

Commercial companies of the LOTOS Group contract the transport of their products from specialist companies. The description of the procedures and requirements applied when ordering such services by individual companies has been detailed on the website of Grupa LOTOS.

Outlays on environmental protection

GRI No. AREA
EN 30 Total expenses on environmental protection and investments by type
Costs incurred by exploiting the right to use the environment for economic purposes incurred by Grupa LOTOS
Emissions [thousand PLN]
2005 2006 2007 2008 2009
Emission to air 3,594 3,518 3,521 3,181 3,046
Water intake 87 109 100 113 211
Sewage discharge 295 266 280 213 254
Total 3,940 3,893 3,902 3,508 3,511
Investment outlays on environmental protection incurred by Grupa LOTOS:
Outlays [thousand PLN]
2005 2006 2007 2008 2009
Total investments 246,123 284,104 858,462 1,910,687 2,271,034
Environmental investments 7,265 34,387 99,880 224,723 138,818