Letter from the President of the Management Board

The role of the JSW Group, especially at the time of transition towards climate neutral economy is unique – not only for Polish but also for European economy. Coking coal has been identified as one of the 30 critical raw materials for the European Union, i.e. raw materials of strategic economic importance and entailing a high supply risk. This represents to us the proof of the JSW Group’s importance to the EU economy.

Given the scale and scope of the negative impact of our operations, we are particularly focused on taking measures to reduce adverse climate and environmental impacts. Our responsible approach is reflected by the adoption of the JSW Group’s Environmental Strategy, in which we set ambitious goals including a 30% carbon footprint (Scope 1 and 2) reduction by 2030 relative to 2018, and the achievement of climate neutrality by 2050. In this way, we demonstrate a responsible approach to our operations and care for the future of our planet.

In 2022, we have undertaken a number of activities for which we have been many times recognized. We have started, for the first time, reporting on climate issues in the international CDP rating and received a high "C" rating, ahead of all mining companies in Poland. Jastrzębska Spółka Węglowa S.A. was also ranked among the most climate-conscious companies in the 4th edition of the Company Climate Awareness Survey, which awarded JSW fourth place among 152 listed companies. We have developed Methane Emissions Reduction Programs with a budget of EUR 23 million. The first project, the Methane Emissions Reduction Program, received a record subsidy of EUR 11 million. This is the largest EU grant to go to the Polish mining industry. As a result, the JSW-owned Pniówek mine will have the world's first dedicated installation for reduction of methane emissions into the atmosphere from abandoned areas of a working mine.

Nor do we lose sight of our immediate surroundings as we follow our good neighbor policy. We respond to and address the needs of our stakeholders on an ongoing basis. We take a number of initiatives to support local communities, which are appreciated by expert organizations active in the field of promoting and initiating best practices in sustainable development and corporate social responsibility. In turn, the JSW Foundation supports the most needy in our region. In 2022, the Foundation supported 251 projects, allocating an amount of PLN 6.5 million.

Our ongoing ambition is to strive to be as sustainable a company as possible, and this is reflected in the many activities and initiatives we undertake, which are outlined in this report.

In 2023 Jastrzębska Spółka Węglowa is celebrating its 30th anniversary. The success we have achieved amply demonstrates what a good decision it was to establish JSW S.A. 30 years ago. The three decades of our Company’s history illustrate the pace and directions of development of the global and economic economy based on steel.