R+D+I strategy

Challenges

JSW Group's strategy for developing the innovation area constitutes a response to the changing market, technological and regulatory conditions in which a modern extractive-industry enterprise must operate.

Given the globalisation of trade in coking coal and coke, being the EU leader in their production does not shield JSW Group from challenges brought on by the market environment, rather forcing us to become a company that sets development directions for the entire industry.

The mining sector's key challenges include a reduction in production costs by improving operational efficiency, continuous improvements in product quality and incorporating challenges related to safety, environmental protection and social responsibility in all aspects of the business. Mining companies' notion of social responsibility as regards occupational safety and environmental protection is aided by the ever stricter legal requirements, which also contribute to the need to develop modern technologies for the mining and producing of coal and coke.

Business development understood as building JSW Group's value based on diversified operations, spanning both the core business and supporting activities, requires constant reviewing and evaluating of the available technologies and investing in new research directions. New challenges for us are mainly related to the European Commission's European Green Deal, which sets out ambitious targets for reaching the EU's climate neutrality.

These targets require the Group to undertake strategic activities in line with the relevant perspectives, which constitute an opportunity for sustainable development in the following areas:

  • circular economy,
  • energy efficiency and reduction in environmental impact through optimal use of own energy resources.

One of the key strategy elements is the digitalisation of production and technological processes in the coke extraction and production area. JSW Innowacje - JSW Group's research and development arm - aside from increasing efficiency in coal mining and coke production is also working on modern solutions related to resource and waste management and innovative solutions for the rehabilitation of JSW Group's post-industrial land.

In order to clearly define all tasks and processes related to R+D+I projects, JSW Group has an R+D+I Policy in place, which:

  • describes the process for commencing, conducting, reporting and financing R+D+I projects at JSW Group,
  • indicates documents based on which the process for commencing, conducting, reporting and financing R+D+I projects at JSW Group is performed,
  • identifies organisational units involved in processes: commencing, conducting, reporting and financing R+D+I projects at JSW Group,
  • defines competences and scopes of responsibility for each organisational unit involved in JSW Group's R+D+I processes.

Strategic assumptions

The aim of the R+D+I strategy is to search for and explore the best solutions for JSW Group in the field of research, development and innovations. The knowledge that comes from this makes it possible to further optimise production processes, and all of these efforts are intended to achieve the fundamental objective of R+D+I, which is to enhance JSW Group's competitiveness in the long run.

Innovations are implemented in four key thematic areas:

performance

Quality

Safety

Social and Environmental Responsibility

The Strategy is being implemented through the following activities:

  • Conducting research and development projects in cooperation with external partners,
  • Coordinating pre-implementation works necessary for introducing new technologies to the Group's operations,
  • Commercialising the effects of completed innovative projects with strong market potential,
  • Initiating and supporting activities that are building an innovation culture.

One of the assumptions of the R+D+I policy is an appropriate categorisation of projects that are aligned with the policy. This categorisation is as follows:

Strategic R+D+I Projects - projects where JSW Group companies' investment is estimated at PLN 10 million or more.

Innovative R+D+I Projects - projects where JSW Group companies' investment is estimated at between PLN 0.25 million and PLN 10 million.

Innovative Projects also include projects where JSW Group subsidiaries' investment is lower than PLN 0.25 million but where more than one of the Group's companies or business units are involved.

Projektami Innowacyjnymi są także projekty, których wartość środków do zaangażowania przez spółki zależne Grupy  jest mniejsza niż 0,25 miliona zł, ale projekt zakłada udział więcej niż jednej spółki lub jednostki biznesowej Grupy JSW.

Local R+D+I Projects - projects with an estimated value of below PLN 0.25 million that are implemented by one JSW Group company or business unit.