Support for local initiatives

JSW Group is very strongly embedded in the region in which it operates. Hard coal mining has been and continues to be a major part of Silesian culture. Local traditions and customs are related to it, it sets educational directions at near-by universities and the level of local well-being depends on it. This is why mining is perceived as a craft rather than a job.

The mining industry is also a key employer and a key payer of taxes and other fees related to concessions and deposit exploitation. These funds go to local budgets, making development and investments possible. JSW Group is also a sponsor and patron of local sports teams and events of importance to the local community.

Dialogue with local communities and local governments

In 2019, JSW's dialogue with local authorities in municipalities where the Group operates was similar to that in previous years. Contacts with authorities in municipalities where coal mining takes place are maintained directly by Labour Directors at each of the mines, while in other municipalities dialogue was conducted by an employee from JSW's Management Board Office. In 2019, a Coordinator for Contacts with Local Government was designated for cooperation with local authorities in municipalities where the Group's companies operate.

JSW Group's management strive for greater openness in relations with local communities, which includes the idea to initiate cyclical meetings between JSW's Management Board and local government officials in municipalities where JSW operates. These meetings would be aimed at presenting JSW Group's plans for the nearest future in the following areas:

• employment (planned recruitment, employee profiles, cooperation with vocational schools and universities in the region),
• underground work planned for the year, including areas where mining will be taking place and where surface deformations and mining damages may be expected,
• planned work at the surface, including extractive waste management, shaping the landscape / rehabilitating land degraded by mining damages, as well as extractive waste management facilities and their use,
• analysis of mining damages, preventive works, repairs and compensations.

JSW Group’s management approach toward local communities and their heritage involves a commitment to open dialogue with local community representatives and to incorporating their opinions in decision-making processes in situations where decisions might have an impact on these communities. These activities are conducted by designated organisational units. This is why it is possible to maintain a continuous dialogue mechanism between JSW's Management Board and local government units as representatives of local communities. It also includes a mechanism for reporting, recording and representing complaints.

A good example of putting this philosophy into practice may be the participation of JSW representatives in the works of coordination teams operating under the auspices of the Director of the District Mining Authority in Gliwice. These meetings are held twice a year in the Gierłatowice, Knurów and Mikołów municipalities. Representatives from mines, the District Mining Authority and local government officials attend. The subjects concern current plans regarding exploitation, expected and observed mining damages as well as corrective and preventive actions taken.

In 2019, the meetings were held as planned in each town and constituted a good moment for presenting what each of the mines accomplished and what its plans were for the next six months with regard to mining damages. These meetings are also a good moment for agreeing on certain issues related to the rectification of mining damages caused by mine operations.

Relations with trade unions

At the end of 2019, JSW Group had 132 trade unions (31 December 2018: 129). The total number of trade union members exceeds the number of employees at the Group because an employee may belong to more than one union. At 31 December 2019, trade union membership was 37 202 people, bringing the rate of unionisation to 121.5%.

JSW's cooperation with trade unions is regulated by "Rules for mutual cooperation between JSW's Management Board and trade unions," adopted on 14 November 2019.

At the end of 2019, JSW had 64 trade unions (31 December 2018: 66). The total number of trade unions members at 31 December 2019 was 32 648, giving a rate of unionisation of 145.5% for JSW.

In 2018, in accordance with the Program for hard coal mining in Poland, JSW's Supporting Steering Committee was appointed, consisting of four representatives from JSW's Management Board, representing the employer, and four trade unions representatives, representing the employees. The Supporting Steering Committee's tasks included providing support for the Mining Steering Committee.

Local community engagement

Last year, JSW Group systematised its activities in the area of local community engagement, clearly defining and emphasising: long-term in-house community programmes, corporate philanthropy and sports sponsoring. In-house community programmes are managed by the CSR Team. Charitable activities are coordinated by the independent JSW Foundation. Donations from JSW SA to external entities are handled by the Organisation and Management Office.

Another accomplished ambition, initially declared in the Sustainable Development Strategy 2017-2020, was to focus social efforts, especially charity, in areas where our entities operate: Jastrzębie-Zdrój, Mszana, Świerklany, Pawłowice, Suszec, Żory, Czerwionka-Leszczyny, Ornontowice, Knurów, Pilchowice, Gliwice, Gierałtowice, Mikołów, Radlin, Zabrze and Dąbrowa Górnicza.

JSW Group consistently emphasises support for kids and youth, attempting to support interesting, innovative and effective solutions in areas such as:

• education,
• health,
• ecology,
• culture and sports,
• help for the most vulnerable in the region.

In 2019, JSW Group's expenditures on charitable activities reached PLN 17.9 million, of which PLN 16.0 million was provided to JSW Foundation, which constituted 89.45% of the total amount spent on charity in 2019.

In-house community programs

Notable in-house community programs include the JSW Mine of Knowledge and the program JSW for Kids .

The lead idea for the JSW Mine of Knowledge program is education, mainly in exact sciences and the widely-defined ecology. Lecturers at the JSW Mine of Knowledge want to stimulate passion in children for learning about the world, experiencing and discovering. This project is intended to develop kids' talents and make equal opportunities in access to modern and interesting forms of extracurricular activities.
In 2019, the following were accomplished at the JSW Mine of Knowledge:

• Interactive exhibitions and workshops (all day long, all participants aged 3-12 and their guardians participated in scientific exhibits and workshops - painting jute bags, creating placards from recycled paper. In addition, the organiser, JSW, invited residents to an exhibition of more than 20 interactive show-pieces depicting the laws of nature and physics and an exhibit of educational boards),
• Contents for schools for an ecological educational campaign (ended with scientific exhibits by awarded schools),
• Urban Game for the region's residents (task subjects: ground temperature, salvaging food, protecting bees),
• Scientific exhibits and ecological workshops,
• Great Science Picnic at JSW's headquarters (5 000 participants).

In 2019, the JSW Mine of Knowledge had 2 320 direct and 55 538 indirect beneficiaries of JSW's social activities.

The JSW for Kids program is addressed to children in need. JSW sponsors three orphanages - in Jastrzębie-Zdrój, Pszczyna and Cieszyn. Art workshops, educational trips, JSW employees' volunteering campaigns, equipment for talented children are just some of the activities that Jastrzębska Spółka Węglowa organises for these orphanages. These activities are in line with JSW Group's Sustainable Development Strategy 2017-2020, pursuant to which aid is directed to where it is needed the most. On JSW's end, CSR programs are coordinated by the CSR Team. Thanks to JSW's support, so far over 130 kids from orphanages had the opportunity to take several trips to various parts of Poland, scientific picnics, workshops and meetings with JSW Group employees. JSW wants to show that it is a company which cares about those in need, engages its employees in useful and socially acceptable initiatives, shares its earnings with the local community by helping those in need, promoting values and being a good and responsible neighbour.

Local community investments

JSW Group also strives to meet the expectations of local communities, in as far as its budget allows. Three new initiatives in 2019 joined an outdoor gym and a city bike station built in 2018 in Jastrzębie-Zdrój.

An apiary was financed in 2019, intended to protect bees and educate.

Support for sports

JSW treats sports as a very important domain of community life, which is why it supports both top-level professional and amateur sports. Through promotion, it supports the region's development, builds positive relations with local communities and garners public recognition and sympathy. This is how JSW builds its reputation and perception as a worthy business partner and an attractive employer. In 2019, JSW's expenditures on promotional activities reached PLN 18.4 million, and PLN 23.3 million in 2018.

Along with the sponsored sport clubs (KS Jastrzębski Węgiel, JKH GKS Jastrzębie, GKS 1962 Jastrzębie, GKS Pniówek 74), JSW is also involved in promoting sports among children and youth. This is a matter of long-term thinking, directly derived from the business field.