R+D+I Strategy

In terms of developing the innovation area, since 2018 JSW has in place its R&D&I Strategy for the JSW Group, which presents the assumptions regarding the desired synergies between business objectives and innovation.

The Group's strategy for the development of the innovation area defines the actions necessary to achieve the highest efficiency in the innovation area. It is the response to evolving the market, technological and regulatory conditions in which a modern company in the mining sector must operate.

The R&D&I Strategy identifies three major objectives for the Group’s R&D&I activity:

  • developing core business,
  • diversifying business areas,
  • building its image as an innovative company.

Strategy assumptions

Attaining the specified objectives will make it possible to retain its competitive edge, curtail the prevailing risks and enhance the market value of the Group’s companies. The execution of the R&D&I Strategy is predicated on 3 pillars:

  • coordinating innovative actions,
  • ensuring a suitable level of financing from internal and external sources,
  • cooperating with domestic and international innovation ecosystems.

Through the execution of the R&D&I Strategy the Group focuses principally on running projects in the following scope:

Improving efficiency

Quality

Safety

Environmental protection

In addition, as part of the Group’s product diversification, the Parent Company initiates and coordinates research and development work in collaboration with its subsidiaries including JSW Nowe Projekty, CLP-B and external partners (scientific research institutions) to look for solutions aligned to the current EU energy transition.

The JSW Group’s strategy for developing the innovation area (R&D&I) determines the ultimate Group development model. The basic tools include:

  • The system for evaluating and prioritizing R&D&I projects, which sets out the rules for selecting R&D&I projects for implementation from among the proposals received.
  • the methodology for carrying out R&D&I projects, which introduces mechanisms to monitor how and how efficiently the project is being implemented and the rationale for its continuation at different stages of its life cycle.
  • the R&D&I funding system, which identifies potential sources of funding for R&D&I projects based on their characteristics.

Additionally, the following bodies were in place in 2022 to increase the control over and transparency of R&D&I processes:

  • Scientific Council, with the main responsibility of recommending key research areas for the JSW Group through the Strategic Research Agenda, and supporting its relationships in the academic ecosystem.
  • Innovation Project Evaluation Committee (KOPI) and Strategic Innovation Project Evaluation Committee (KOSPI), which play a key role in evaluating projects both at the initial selection stage and at later stages of their life cycles. These committees include representatives of business units, JSW S.A.’s corporate divisions and JSW Innowacje (now JSW Nowe Projekty), with external experts are added as required.

All R&D&I projects follow a transparent path with decision gates after each stage – from project acquisition and kick-off, through the research phase, to development work, preparation of implementation and finally to implementation and commercialization efforts.

A project implementation path is as follows:

One of the priority tasks in the development and innovation area was to implement the objectives of the Research Agenda, a document, which was updated annually and defined the company's R&D needs, addressed the vision and implementation of the intended development goals, and allowed for effective evaluation and categorization of R&D projects.

In 2022, the Research Agenda named the following key areas of R&D efforts:

  • mining, energomechanical and technological projects,
  • projects related to the elimination of natural hazards,
  • environmental protection, revitalization and waste management,
  • coke and carbochemical projects,
  • diversification of operations,
  • exploring and creating new project initiatives.

An effective innovation policy requires close collaboration with the ecosystem, whose members can offer their expertise to support the activities undertaken by the JSW Group. Such collaboration has taken place at various stages of projects carried out with relevant partners. This includes cooperation with universities, research institutes and heavy industry companies.

Successfully completed R&D projects will be transformed from cost centers to revenue sources for the Group through activities aimed at the commercialization of the know-how created.