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.

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 the industry are mainly related to the European Commission's European Green Deal, which sets the ambitious target of reaching climate neutrality in the European Union by 2050

This target requires the Group to take strategic action, also in the field of research and development, incorporating these perspectives. This is a development opportunity in the following areas:

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

Strategic assumptions

Innovative solutions across the coal and coke product chain are tested and implemented within the framework of the R+D+I Strategy and Policy. This applies both to the Company's core business segments and areas supporting the Group's operations, such as: emission reduction and economic use of methane, maintenance and production of machinery and equipment (JZR), research and analysis (CLP-B), water desalination, land rehabilitation and pro-environmental activities (PGWiR).

In addition, as part of product diversification, JSW, in cooperation with other Group entities, JSW Innowacje and external partners (research institutions), seeks opportunities for increased use of waste, mine water, methane from ventilation air and coal derivatives, for the implementation of projects compliant with circular economy assumptions and the current EU energy transition. Irrespective of the establishment of JSW Innowacje within the Group, current rationalisation activities are conducted on the basis of the binding "Rules of procedure for invention projects at JSW S.A."

JSW aims to develop a policy of supporting rationalisation and inventiveness in the broadest sense, by undertaking activities intended to popularise inventive issues that support innovation processes and constitute a source of additional economic benefits. The process launched in 2021 (work on new regulations) will continue in the following years along with the development of a culture of innovation and knowledge sharing.

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

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.

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.