Support for local initiatives

The Group has very strong links to the region in which it operates. The hard coal mining industry has built and continues to build the culture of Upper Silesia. Involvement of the Group companies in the activity of the social and industry organizations and associations is an important element of strengthening the sustainable and responsible business. Rebuilding and nurturing relations with local communities, including local governments, based on trust and openness is an equally important aspect. The Group focuses on cooperation and joint undertakings, taking account of the impact of its business decisions on local communities and works with the local governments on investment projects and education. Bearing in mind the specificity of the Group’s operations, eliminating and/or mitigating their negative impact is a very important element in building long-term relations with the local community.

Within their business activity, individual Group companies monitor the nature and scale of their impact on their surroundings on an ongoing basis, seeking the technology, process and other solutions that would allow them to eliminate or limit their negative impact, which varies across companies and plants. For example, mine operations cause land deformations and contribute to mining damage. Therefore, mining operations are carried out in the way that limits the occurrence of such damage. Additional projects are successively implemented to enable increasingly effective capture of methane from the mines and its commercial use for energy production, significantly contributing to a reduced demand for energy from external providers while significantly lowering carbon footprint. In 2021, JSW created a special website about methane and its economic use in the JSW’s plants. The website provides information on the actions taken by JSW with a view to reducing methane emissions into the air. The website’s intended readers are decision-makers and opinion leaders, both in Poland and across Europe, involved in issues related to efforts aimed at reducing methane emissions.

Coal mining also entails extraction of the rocks that accompany coal seams, which must then be stored, or the need to pump out salt water from the mine. To reduce the negative impact, a mine water desalination plant has been operating for years in Dębieńsko, producing rock salt from such water. In 2021 the Dębieńsko plant sold more than 68 k tons of salt, including evaporated edible salt and salt for industrial purposes. Thanks to the mine water desalination and the production of high-grade edible salt, the amount of salt discharged to the environment is radically reduced.

One of the most significant risks related to the Group’s operations is the threat of lack of social acceptance for the current and future operations. As the decarbonisation policy gains momentum, all carbon-based processing technologies are increasingly perceived as a highly environmentally harmful activity both for the natural and human environment. This is why the Group places a special emphasis on sustainable development and circular economy (zero-waste production) in its common CSR policy.

Our companies also recruit employees from the local communities. On the one hand, the local community is where JSW Group recruits its employees. This is well supported by the fact that in 2021 one-fourth (24.8%) of JSW Group's managers were residents of the municipality in which his/her company is head-quartered. For JSW, this was 11.9%, i.e. the percentage of managers who are residents of Jastrzębie-Zdrój or municipalities where JSW's facilities, including the mines, are located. Keeping in mind that Silesia is basically one big agglomeration, practically all managers and workers in Silesia are recruited from the community. On the other hand, this means jobs and fair remuneration for the local community. Cash transfers, for example in the form of salaries, go toward household budgets and then stimulate consumption and make it possible for the entire community to develop, involving in this industries that are completely unrelated to mining and coking activity. To put it in simpler terms, members of miners' families spend money on buying all kinds of goods and services - such as car repairs, haircuts, etc.

Dialogue with local communities and local governments

The local community has been the focal point of the organisation's extensive community engagement programs over the years. It is at the local level that an informal social licence to operate is issued and can be revoked. Activities addressing the local community have the form of charitable assistance (implemented by JSW Foundation), proprietary social programs (run by JSW) and some are also connected with the support of sport (JSW).

From a managerial viewpoint, compensating communities for the nuisance associated with operations that cannot be eliminated or reduced is crucial. This is focused primarily on the areas (municipalities) where JSW Group conducts its business activity and exerts influence.

The management approach to local communities and their heritage involves JSW Group's 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, which makes it 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.

In the area of relations with local communities the Group companies undertake to:

• maintain an open dialog with the representatives of the local community and local government units,
• have their representatives participate in meetings of teams communicating with oversight from the District Mining Office in terms of issues related to mining damages,
• provide a mechanism for reporting, recording and representing complaints,
• focus social and charitable activity on local communities,
• support protection of the heritage and tradition of the local community,
• conduct mining operations in a manner mitigating the adverse impact on the land surface,
• offset the losses incurred through the regular remediation of damages caused by the operation of the mine,
• avoid the necessity of relocation of the residents, and if properties have to be bought out, take relevant actions, proposing a fair compensation for the properties,
• support social investments in location education, aimed at inclusion of the residents and ensuring their participation in the social and economic development of the Group,
• refrain from foreign expansion in a situation where the legal culture of the target country would create a significant risk of breaking human rights, including the rights recorded in the United Nations Declaration on the Rights of Indigenous Peoples.

JSW’s dialogue in 2021 with the governments of the municipalities in which the Group operates followed the same course as in previous years. Contacts with the local authorities in whose area coking coal is mined is maintained directly by Directors for Labor of individual mines. In municipalities in whose area JSW’s mines operate, dialogue is coordinated by the Property Management Team in the JSW Management Board Office. The Property Management Team also coordinates the scope of affairs associated with the process of discontinuing the extraction and consumption of coal giving consideration to the needs and concerns of the communities residing in coal areas (execution of the program entitled Just Transition). As part of this dialogue, periodic meetings are held to discuss various matters, problems and expectations of the local government authorities. They most frequently entail the local governments’ requests for JSW’s financial support for local initiatives and various campaigns and projects. The JSW Foundation handles this scope to the extent possible. Its tasks include, among others, assisting and supporting local governments in the areas where Group companies conduct operations, regarding financial support for different initiatives executed by the local governments and non-governmental organizations. JSW also supports the local community by giving donations in the form of medical equipment and fixed assets (unnecessary mining equipment) for the purposes of local associations, museums and volunteer fire brigades.

Relations with trade unions

As at 31 December 2021, there were 137 trade union organizations in the Group (135 trade union organizations at as 31 December 2020). Given that an employee may be affiliated with several unions, the total number of trade union members exceeds the number of the Group’s employees, and as at 31 December 2021 stood at 38,220, which translates into the union membership ratio of 124.4%.

The Principles of Mutual Cooperation Between the Management Board of JSW SA and Trade Union Organizations Operating in JSW SA, adopted on 14 November 2019, set out the basis of cooperation with trade union organizations in the Parent Company.

As at 31 December 2021, there were 66 trade union organizations in the Parent Company (65 at as 31 December 2020). The number of trade union members stood at 32,939, which translates into the JSW union membership ratio of 150.5%.

In 2018, in accordance with the provisions of the Program for the Hard Coal Mining Sector in Poland, an Auxiliary Steering Committee was appointed in JSW, composed of 4 representatives of the JSW Management Board representing the employer and 4 representatives of representative trade unions representing the social side. The duties of the Auxiliary Steering Committee include supporting the work of the Mining Steering Committee.

MATERIAL DISPUTES INITIATED BY THE SOCIAL PARTNER AND RELATIONS WITH SOCIAL PARTNERS IN JSW IN 2021

Motion submitted by the Representative Trade Union Organizations in JSW concerning a wage hike in 2020

In their letter of 21 February 2020 the Representative Trade Union Organizations of JSW, i.e. ZOK NSZZ “Solidarność” JSW, ZZ Kadra Pracowników JSW and Federacja ZZG JSW submitted a motion to raise the base salary rates in JSW by 6%. Two meetings have been held on this subject to date, but no agreement has been reached. The Parent Company’s economic position was discussed during these meetings and the problems associated with JSW’s liquidity were presented. Production and commercial issues were also discussed. The trade union organizations and the JSW Management Board have suspended the talks on the pay hike under way since 4 March 2020. The parties were supposed to return to the talks when the threat associated with the coronavirus pandemic passes.

Motion submitted by the trade union organizations “Jedność” and “POPIS” concerning the salary increase

On 24 February 2020 the Jedność and POPIS trade unions submitted a motion to the JSW Management Board for a salary increase in JSW in 2020 of 8% starting from 1 January 2020. In its reply of 9 March 2020 the JSW Management Board advised the trade union organizations that on account of JSW’s challenging economic position the Management Board is not capable of fulfilling the motion. Moreover, the Management Board advised that it conducted talks with the Representative Trade Union Organizations on the salary increase in 2020 which, due to the threat associated with the coronavirus pandemic, were suspended.

Demand submitted by the Company Coordination Organization WZZ “Sierpień 80” JSW pertaining to raising the personal classification rates

In its letter of 9 March 2020 the Company Coordination Organization WZZ “Sierpień 80” demanded an increase in the personal classification rates by 8% on a gross basis as of 1 January 2020. At the same time, this trade union organization pointed out that this letter should be treated as the beginning of a collective dispute and that it expects the fulfillment of the foregoing demands within 7 days of receipt of this motion. In its letter of 17 March 2020 the JSW Management Board advised the trade union organization that due to the exceptional situation associated with the coronavirus pandemic talks concerning this demand were to be resumed when the pandemic threat passes.

Motion submitted by the Kadra Trade Union of JSW KWK Budryk concerning a salary increase

In its letter of 10 March 2020 the Kadra Trade Union JSW KWK Budryk requested an increase in the personal classification rates for all vocational groups in all of JSW’s mines to the projected level of a 9% salary increase. In its letter of 17 March 2020 the JSW Management Board advised the trade union organization that on account of the COVID-19 pandemic threat talks concerning the salary increase were to take place when the threat related to the pandemic passes.

Bearing this in mind, on 13 September 2021, a Salary Agreement was executed between the JSW Management Board and the Representative Trade Union Organizations exhausting the demands for salary increases in 2020 and 2021. The details of the concluded agreement are presented below, as well as in Current Report No. 30/2021.

Collective bargaining agreement entered into under Article 9 § 1 of the Labor Code

In their letter of 22 January 2021 the Representative Trade Union Organizations of JSW, i.e. ZOK NSZZ “Solidarność” JSW, ZZ Kadra Pracowników JSW and Federacja ZZG JSW submitted to the JSW Management Board a demand to hold a meeting to sign an agreement extending the employment guarantee period for JSW employees for at least 5 years. In connection with discrepancies of stances on this issue, on 28 March 2021 the Representative Trade Union Organizations of JSW resubmitted to the JSW Management Board a demand to hold a meeting to sign an agreement extending the employment guarantee period for JSW employees for 10 years. At the same time, in their letter of 28 March 2021 the Representative Trade Union Organizations of JSW informed the JSW Management Board of appointing the JSW Protest and Strike Committee.

On 30 March 2021, the JSW Management Board adopted a resolution concerning extension of the term of the employment guarantee for JSW employees for another 10 years. The terms and conditions of the employment guarantee were signed at the meeting on 31 March 2021 by the JSW Management Board and the Representative Trade Union Organizations of JSW in the Collective bargaining agreement entered into under Article 9 § 1 of the Labor Code, which guarantees employment to all JSW employees for 10 years, counting from the date of the agreement. In addition, it guarantees that the existing terms of the employment contracts entered into with employees of JSW units will not be amended or terminated until registration and implementation of a uniform CCBA for JSW Employees.

With reference to the Collective Agreement signed on 31 March 2021 and in connection with the different terms of employment contracts of JSW employees employed before 1 February 2012 and the employees employed after 1 February 2012, in the letter of 15 April 2021, the Representative Trade Union Organizations of JSW asked the President of the JSW Management Board for an urgent meeting to discuss the area in which the employee rights need to be equalized, i.e.: equalizing the base salary rate for employees employed in different periods (before and after February 2012), equalizing the name and value of the seniority allowance (Miner’s Charter), equalizing the method of settlement of the base salary (daily/monthly base salary), granting the right to the jubilee bonus to employees whose employment contracts were entered into after February 2012, equalizing the discretionary salary elements (currently up to 30%) in the contracts entered into before February 2012, equalizing the rules and amount of granting pension severance pays in both employment contract groups, equalizing the amount of benefits for work at night and in hazardous conditions.

The JSW Representative Trade Union Organizations were invited to a meeting with the JSW Management Board to discuss the above issues on 19 April 2021. During the meeting the social side asked for: equalizing the job and base salary rate valuator, changing the name “Seniority Allowance” in the new contracts for “Miner’s Charter”, change of the method of remunerating employees on white collar positions from the existing daily rate to a monthly rate, introduction of the right to a jubilee bonus to new employment contracts for all employees and unifying the rules of its payment in JSW units, equalizing the discretionary elements, rules and amount of granting pension severance pays and equalizing the amount of benefits for work at night and in hazardous conditions. In addition, with regard to all the aforementioned items, the Management Board ordered the Compensation Policy Team to prepare, by 15 May 2021, a calculation of the costs in the case of introduction of the requested issues and present them to the JSW Management Board and the Social Side. As the date of introduction of the unified compensation terms was not agreed, the JSW Representative Trade Union Organizations demanded that all of the raised issues be executed by 30 April 2021.

On 11 June 2021, a meeting was held with the Representative Trade Union Organizations at JSW, during which:

• The Trade Unions challenged the cost calculation provided and requested an actual costing based on the demand presented in the collective dispute.
• The Trade Unions proposed starting the implementation of the presented demands with standardization of such elements as: retirement and disability severance pay, jubilee awards, night allowance, allowance for work in onerous conditions for employees on "old contracts" which account for about 75% of all contracts.
• The parties agreed that for the next meeting, the employer will prepare a breakdown of the items subject to standardization under the old contracts by cost gradation.

The Trade Unions expected the JSW Management Board to present its position at the next meeting.

Collective dispute over the implementation of the 2020 wage increase agreement

In connection with online publication, by the Trade Unions, of the agreement entered into between JSW and the Representative Trade Union Organizations on the salary increase in 2020, which was not subject to the deliberations of the Management Board, it was necessary to clarify the legal and factual circumstances regarding the aforementioned agreement. In addition, by the letter of 8 April 2021, the Representative Trade Union Organizations at JSW requested the implementation of the said agreement. Based on the decision of the JSW Management Board of 16 April 2021, a task force made up of Law Firms was appointed to clarify the legal and factual circumstances regarding the agreement between JSW and the Representative Trade Union Organizations on the salary increase in 2020.

In their letter of 5 May 2021, the Representative Trade Union Organizations requested that the JSW Management Board implement the 2020 salary agreement. At the meeting on 20 May 2021, the Management Board provided the Trade Unions with an excerpt of the declassified part from the report of the Task Force to clarify the legal and factual circumstances regarding the agreement between the JSW Management Board and the Representative Trade Union Organizations on the salary increase in 2020 and the JSW Management Board's statement on the demand of JSW’s Representative Trade Unions concerning the implementation of the agreement on salary increase in 2020 stating that:

• in view of the significant discrepancies resulting from the established facts, it cannot be determined unequivocally whether the agreement was actually concluded and thus has legal effect,
• implementation, by the JSW Management Board, of the agreement and the resulting financial expectations without an unambiguous and objective clarification of the existence and legal effectiveness of the agreement - which can only be done by an independent and autonomous Common Court with the appropriate instruments at its disposal - carries a significant risk of criminal liability for the Management Board,
• implementation of the above agreement would have far-reaching financial consequences of at least several hundred million zlotys, which may lead to termination of the loan agreements concluded by JSW with the Polish Development Fund,
• implementation of the above agreement may therefore only take place if its existence and validity in a legal sense are objectively confirmed.

The trade unions asked for a break in the negotiations by citing the need to obtain the opinion of the Law Firms on the issue of the undisclosed content of the Task Force's report. At the next meeting, on 15 June 2021, the parties presented their positions. Due to the discrepancy of their positions, a discrepancy report was drawn up.

On 18 June 2021, the Employer informed the National Labor Inspectorate of the collective dispute and also requested the appointment of a mediator from the list established by the minister responsible for labor. By way of letter of 30 June 2021 the Minister of Development, Labor and Technology advised that Mr. Jerzy Bernard Nowak had been appointed as a mediator in the collective dispute.

On 6 September 2021, mediation began with respect to the collective dispute on the validity of the 2020 Salary Agreement between: Representative Trade Union Organizations and the Employer – JSW in the presence of the Mediator appointed by the Ministry of Development, Labor and Technology Mr. Jerzy Bernard Nowak. During the first meeting the parties to the dispute presented their positions.

At a subsequent mediation meeting on 13 September 2021, the parties to the dispute signed a Salary Agreement pursuant to which:

• effective 1 September 2021, new base salary rate tables higher than existing salary rates by 1.6% are being implemented, which, together with a 3.4% base salary increase effective as of July 2021, will lead to a 5% increase in salary rates,
• on 1 October 2021, employees who were employed as at 31 August 2021 will be paid a one-off bonus in the amount of PLN 4,300 gross – for those employed underground, PLN 3,500 gross – for those employed in the Coal Preparation Plant and PLN 3,100 gross – for other employees.
• In addition, the parties agreed that as of 1 October 2021, the value of the meal and the supportive meal will be PLN 21 per day worked.

In total, the estimated cost of the Memorandum of Agreement in 2021 is PLN 139.3 million.

The signed Salary Agreement concluded the mediation of the collective dispute of 5 May 2021 regarding the validity of the 2020 salary increase agreement and at the same time concluded the 2021 salary increase negotiations.

Request from the Representative Trade Union Organizations of JSW of 7 June 2021

On 7 June 2021, the Representative Trade Union Organizations of JSW submitted a request to increase the salaries for all JSW employees by 6% starting from 1 July 2021. At the same time, as there have been no salary increases in JSW since 2019, the Representative Trade Union Organizations of JSW request a one-off compensation payment in the amount of PLN 5,000 for underground employees, PLN 4,000 for employees of the coal preparation plants and PLN 3,500 for employees working on the surface and administration employees.

On 16 June 2021, negotiations were held between Management Board representatives and the Trade Unions, during which the Representative Trade Union Organizations presented a justification of the demands made. The Employer stated that due to the weight of the demands presented and their potential impact on JSW's financial standing, additional arrangements are necessary with the full Management Board in order to take a position on the payroll demands. The Salary Agreement signed on 13 September 2021 concluded the negotiations for salary increases in 2021.

Letter of 27 December 2021 from JSW’s Representative Trade Union Organizations

In the letter of 27 December 2021 JSW’s Representative Trade Union Organizations requested that the JSW Management Board arrange a meeting on a salary hike as part of implementing JSW’s payroll policy. Its purpose was to present and discuss the proposed pay raise for 2022. Two meetings were held on this subject matter and on 28 January 2022 the JSW Management Board and JSW’s Representative Trade Union Organizations signed an agreement on implementing JSW’s payroll policy in 2022.

The base pay rates were raised under the agreement as of January 2022 for all JSW employees by 10% while the value of preventive meals was raised from PLN 21 to PLN 30 per day. In later years the value of these meals will be determined on the basis of the average wage in the business sector net of profit-sharing announced by the President of the Statistics Poland. The value of the meal will represent 0.5% of the wage above for Q4 of the previous year. This agreement exhausts all of the claims for raising pay and employee benefits in 2022 as of the date of its signing.

MATERIAL DISPUTES INITIATED BY THE SOCIAL PARTNER AND RELATIONS WITH SOCIAL PARTNERS IN OTHER GROUP COMPANIES IN 2021

Local community engagement

Social commitment in numbers:

• 4 family and science picnics
• 120 participants of workshops in orphanages
• 146 pieces of computer equipment for 10 educational institutions
• 1,038 scholarships funded by JSW
• 2 programs authored by JSW Group

JSW Group implements long-term internal community programs, charitable campaigns and sports sponsorships. Internal community programs are managed by the CSR Team, which comprehensively coordinates the management of social responsibility at JSW Group. Charitable work is operationally managed by JSW Foundation. Donations from JSW SA to external entities are handled by the Organisation and Management Office. These activities are performed on behalf of the entire group, i.e. all companies and sites that are a part of it.

In accordance with the sustainability strategy, social activities, especially charity campaigns, focus on areas where JSW Group's facilities are located or areas that may be affected by JSW Group. JSW Foundation's statute unequivocally states that it engages in useful public and social activity within the following municipalities: Jastrzębie-Zdrój, Mszana, Świerklany, Pawłowice, Suszec, Żory, Czerwionka-Leszczyny, Ornontowice, Knurów, Pilchowice, Gliwice, Gierałtowice, Mikołów, Radlin, Zabrze and Dąbrowa Górnicza. They are therefore related with the presence and operation of these plants in the local communities.

For many years, JSW Group has been consistently emphasising support for kids and youth. It tries to support interesting, innovative and effective solutions in domains such as education, health, ecology, culture and sports, as well as help for those most in need in the region. Projects that are narrowly focused on the needs and expectations of a specific community, ecological activities, social campaigns and employee programs promoting active lifestyle or volunteering are being implemented. JSW is also involved in promoting sports among children and youth, local communities and promotes fair and ethical competition.

Internal community programs

The key program authored by JSW Group is the JSW Mine of Knowledge (Kopalnia Wiedzy JSW) and JSW for Kids ( JSW Dzieciom) , which initiates further innovative projects. This are unique programs addressed to children and youth. Creative ideas, social initiatives and actions to improve our world that get entire families involved.

JSW Mine of Knowledge

JSW Mine of Knowledge focuses on education, mainly in exact sciences and the widely-defined ecology, and more. 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.

The COVID-19 pandemic has revealed new urgent needs. The weeks-long isolation and the shift to online schooling particularly affected children. In order to make remote teaching more diverse, JSW launched an educational website: nowakopalniawiedzy.pl. Tens of educational materials were made available there, explaining in an accessible fashion fascinating topics such as the use of hydrogen, responsible consumption, the importance of coking coal for the economy, electromobility, and many more. These were accompanied by interesting, extensive quizzes. The website was created by JSW's employees and cooperating sports clubs. Thanks to the partners, it was possible to publish valuable video materials promoting sports, language learning and a healthy lifestyle.

JSW for Kids

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.

The COVID-19 pandemic has reduced the spectrum of possible activities, but it has also demonstrated many other urgent needs. This includes remote learning, which requires children to have a computer. Inevitably, orphanages did not have a sufficient quantity of computers.

Despite the pandemic, when there were fewer infections and holiday trips under the sanitary regime were permitted, it was also possible to organise winter as well as summer camps for children from all three orphanages. 125 kids participated in these in total.

In 2021, JSW Group also engaged in a number of other activities for employees and local communities useful during the pandemic:

• VIRTUAL TRAINING FOR RESIDENTS
  JSW Szkolenie i Górnictwo, a company belonging to Jastrzębska Spółka Węglowa, organised virtual training in premedical aid. The training was addressed both to JSW employees and their families, but also to any willing resident of the Silesian Voivodeship. Training was held throughout June 2021. The program included training in first aid for children, youth and adults. Thanks to hands-on classes, the trainees learnt how to properly respond in the event of a threat to life or health. Under the watchful eye of a Virtual Reality instructor, they had the opportunity to use an application where, using a training phantom, they practised the necessary procedures to save life and health. Nearly 500 people participated in the free training.
• IMPROVEMENTS IN TIMES OF PANDEMIC
  IT Systems, a company belonging to JSW SA, has created a system for recording tests and notifications during a global pandemic (SMS-sender and Covtest). In an epidemic state, a quick and effective flow of information is very important, ensuring that information reaches as many recipients as possible. The number of employees at JSW S.A. facilities without email addresses is very large so the surest way to provide them with information is to send an SMS message. Employees receive regular information from the crisis team on issues such as remote work, the number of infections in the company, the introduced restrictions, etc.
  Covtest is an application enabling registration of results of coronavirus tests performed at JSW. Test results are recorded, the application also has the functionality of generating reports on the number of infections, healthy people and quantitative distribution of infections in the company's organisational structure. In addition, a report on quarantined and recovered patients was a very useful feature.
• OCCUPATIONAL DEVELOPMENT IN MINING
  JSW Szkolenie i Górnictwo together with the AGH University of Science and Technology in Kraków has been implementing the "Occupational Development in Mining" project since 2021.
  The main objective of the experts developing and implementing the project was a broad development campaign. The target group is people at risk of redundancy, those scheduled for redundancy or laid off for reasons not attributable to employees, as well as people leaving agriculture. The project aims to increase the professional activity of the inhabitants of the Silesian voivodeship. Participants can count on training in interpersonal communication, dealing with stress, time management, and negotiations. Participants will also be offered post-graduate studies, traineeships, qualifying vocational courses, language and IT courses.
• INNOVATIVE METHODS FOR TRAINING STAFF IN PANDEMIC
  JSW Szkolenie i Górnictwo has launched a state-of-the-art VR workshop where training sessions and workshops are held at 16 prepared workstations, mainly for testing purposes. Employees have the opportunity to take part in the screening of the 360-degree film "Wirtualno gruba", which was created as part of the development of a VR application for health and safety training. With the use of VR goggles, they have the opportunity to visit the mine underground and look at the work in various departments. The training workshops also include hands-on activities using the Cyber Fire and Blasting applications. The use of VR in mining allows miners to acquire and practice the correct responses in emergency situations in a controlled, safe environment. It allows for the simulation of conditions in a mine during especially hazardous work.
• THE "SAVE THE BEES" PROJECT
  JSW Group gives priority to initiatives related to the protection of nature and its resources, hence the concept of implementing the project "Save the bees - they can live among us" associated with the establishment of an apiary. This initiative is a component of JSW Group’s development program for revitalisation, reclamation and rational management of mining areas. JSW, implementing the concept of ecological management of industrial areas, decided to implement a program to protect these beneficial insects and produce honey from the apiary in Jastrzębie, corresponding with an educational program.
  In the beautiful apiary, in addition to the beehives, there is also an educational trail for the youngest school children and kindergarten children in the region. According to the adopted assumption, the "Save the Bees" apiary establishes a local educational centre, and the accompanying activities are of a supporting nature. During lectures in the apiary, young people have the opportunity to acquire knowledge about the structure of the hive, the use of bee products and to learn about the customs of the hive and the hierarchy of the bee family.

ACTIVITY OF THE JSW FOUNDATION

The JSW Foundation, established by the Group at the end of 2018, continues the cooperation conducted in the entire area of the Group’s operation. The Foundation was set up to conduct and support public and socially beneficial activity where JSW operates by collaborating with local governments and supporting local initiatives. The JSW Management Board has elected to create this organization to strengthen the Group’s image as a company espousing the principles of corporate social responsibility and demonstrating its charitable commitment. The foundation was established and founded by JSW. The JSW Foundation focuses its activity on 16 municipalities where JSW conducts its operations, supporting initiatives in four areas: culture and tradition, leisure, science and education and health and safety.

In 2021 the JSW Foundation conducted its operations as laid down in its articles of association by using the funds donated by the Founder in 2019 and 2020. It allocated PLN 2.9 million to the execution of 83 projects requested by local institutions and/or organizations in four areas

The following activities were carried out as part of 83 initiatives:

• 24 projects supporting sports in various disciplines such as football, ice hockey, cycling, judo, futsal, girls' basketball, horse riding, tennis, volleyball, table tennis, chess and handball received funding.
• the organisation of the Preschooler Olympics LaszkaCup, in which over 250 children from the kindergartens of Jastrzębie participated, was also co-financed. During the event, young players as representatives of their kindergartens competed in floorball, and other kindergarteners took part in competitions and games organised by game leaders.
• 12 educational establishments received support, including to subsidise school laboratories, purchase teaching aids, modernise playgrounds and equip community centres.
• 8 cultural events concerning topics such as Silesian traditions, integration days for the disabled, summer circus shows and workshops, illusion and animation, as well as selection of the city's talents, received support from JSW Foundation.
• the purchase of 3 AED defibrillators for people using the Iron Cycle Trail was subsidised.

Support for sports

JSW Group has been supporting professional and amateur sports for many years. Sport and involvement in it have become an element of JSW's culture and a distinct feature of the JSW brand. As the largest employer in the region JSW feels responsible for supporting popular disciplines that have long traditions in the region in which JSW Group operates.

All sponsorship contracts were valued at more than PLN 13.8 million in 2021.

Successful sports clubs reinforce the development of business potential, positive corporate image and make it possible to reach important communities with messaging. Sport plays a very important role in JSW's sponsorship activities. For years, JSW SA has focused on sports that best reflect the Company's character and evoke positive emotions among fans, hence the decision to sponsor mainly such sports as volleyball (KS Jastrzębski Węgiel), hockey (JKH GKS Jastrzębie), football (GKS Jastrzębie and GKS 74 Pniówek), and handball (Miejskie Towarzystwo Sportowe Żory).  

Apart from supporting professional sport, JSW also supports sports projects for children and youth. The flagship project is the Jastrzębski Węgiel Talent Academy, which is a kind of a breeding ground for volleyball talents. It was established on the basis of a shared vision by Jastrzębska Spółka Węglowa and the volleyball club KS Jastrzębski Węgiel, providing for modern activities for the development of sports in the region. In 2021, an agreement was signed with the Polish Volleyball Federation, based on which a system of Central Academic Volleyball Centres will be created, and the club within the Academy will be one of the elements of this system. The Academy has thus become the first volleyball club in Poland to enter the Polish association’s training structure. The Academy has existed since 2012 and is a springboard to PlusLiga. For two years, the club has been running its own sports school team. Now, it will complete the training process with agreements with universities, including the AWF in Katowice. The first student of the Academy to break through to the first team of Jastrzębski Węgiel was Jakub Popiwczak. For several years, he has been the basic libero of the senior team and this year's Polish champion in the colours of Jastrzębski Węgiel. During the 9 years of activity, young adepts of the Academy have won almost 60 medals at the voivodeship, national and international level.