Environmental performance
Sustainable development
The Grupa Azoty Group considers sustainable development issues to be of strategic importance. Relying on the “Azoty Tarnów Group Strategy for 2012-2020”, the Group is following a strategy of sustainable development and corporate social responsibility based on the model solution adopted in the Parent.
The strategic approach dictates how the Grupa Azoty Group will drive value for stakeholders while pursuing its economic goals. Sustainable development is managed on the strategic level, which contributes to streamlining processes in the Group’s key operating areas
The Grupa Azoty Group is a large-scale business spanning many countries, therefore its activities are reported in a systematic, transparent and reliable manner in annual reports and environmental impact reports.
The implementation of corporate social responsibility principles rests on three pillars.
The strategic objectives of the Grupa Azoty Group in the “sustainable production” area are to:
1. Reduce the environmental impact of the Group companies,
2. Foster partnerships with research institutions,
3. Raise environmental awareness,
4. Develop sustainable products,
5. Continue the engagement in improving workplace,
6. Plant safety and maintain the dialogue with their external stakeholders.
The strategic objectives of the Grupa Azoty Group in the “dialogue and relationship building” area are to:
1. Promote the development of local communities,
2. Define the forms of dialogue with each of the key stakeholder groups,
3. Maintain effective communication relating to sustainable development,
4. Build a culture of ethics.
The strategic objectives of the Grupa Azoty Group in the “workplace” area are to:
1. Improve employee satisfaction,
2. Improve workplace safety and health protection,
3. Provide staff development opportunities.
Respect Index
The Parent has been a constituent of the RESPECT Index since November 19th 2009, which stands as a testament to the Grupa Azoty Group’s care for sustainable development and responsible management.
The selection of companies to be included in the Index is made in a three-stage process. The criteria evaluated in the selection process include financial standing, strategy, management processes, environmental factors, human resources policy and employee relations, as well as market impact and customer relations. In 2015, the Parent participated in yet another evaluation of corporate social responsibility in public companies and was once again awarded a diploma as a Respect Index constituent.
Management standards
In April 2013, the Grupa Azoty Group introduced the Enterprise Management Policy. The Policy defines the general plans and directions for the Group. The amended Enterprise Management Policy sets out the mission, vision and strategic objectives of the Group companies implemented based on management systems compliant with the highest international standards.
To accomplish this mission, the following strategic objectives have been set:
- Increasing the scale of operations in core areas through organic growth, alliances and M&As, both in Poland and abroad,
- Advancing integration within the Group to maximise operating synergies,
- Reducing the Group’s sensitivity to energy costs through the use of technological and energy-efficient solutions,
- Reducing the Grupa Azoty Group’s sensitivity to changing economic cycles and prices of natural gas and petrochemical commodities by extending product chains,
- Reducing production costs through upgrades of key production lines,
- Building stable and effective customer relations, increasing the brand awareness of leading products of the Group, and optimising product logistics and distribution,
- Improving the effectiveness of key processes and of knowledge gathering and management,
- Continuously adapting product quality to customer requirements,
- Horizontal diversification, leveraging synergies with the existing product portfolio,
- Continuous product and service improvement using innovative technologies.
The Group companies pursue strategic objectives based on management systems conforming to the highest international standards. Operating priorities, such as high quality, care for technical safety and the environment, health safety of food, reducing environmental losses, giving priority to customers, are all efficiently monitored and ensure effective management.
In its operations, the Grupa Azoty Group complies with all applicable laws and regulations and strives to constantly improve the results of its operations and minimise the risks associated with it.
Management systems
The Grupa Azoty Group pursues a Management Policy which guarantees that strategic goals are achieved in reliance on an integrated management system consistent with international standards.
The operating priorities: high quality and care for technical safety and the environment, are all efficiently monitored and facilitate effective management. The Integrated Management System is structured around the following principles assuming giving priority to customers, reducing environmental losses and mitigating the risk of hazards, and continuous improvement.
The Parent has implemented:
- Quality Management System compliant with the ISO 9001:2008 standard,
- Environmental Management System compliant with the ISO 14001:2004 standard,
- Occupational Health and Safety Management System compliant with the PN-N-18001:2004 and BS OHSAS 18001:2007 standards,
- Food Safety Management System compliant with the ISO 22000:2005 standard,
- PN-EN ISO/IEC 17025:2005 Management System (general requirements for the competence of testing and calibration laboratories),
- Automotive Industry Quality Management Standard implemented in accordance with the ISO/TS 16949:2009 standard,
- Responsible Care Framework Management System compliant with the guidelines of the European Chemical Industry Council,
- Management Standard compliant with the Fertilizers Europe Product Stewardship Standard,
- Corporate risk management system in 2014.
Safety
The Group’s business requires compliance with the most exacting safety standards, which minimise the risk of industrial incidents. Relevant solutions applied across the Group ensure appropriate conditions for the manufacture, storage, transport and distribution of substances to meet the natural environment protection requirements. The Group companies operate in the chemical industry and are classified as facilities with a high risk of a serious industrial incident. Being aware of the possible consequences of their operations, the Group companies strive to mitigate their negative environmental impact.
The companies have devised and implemented appropriate incident prevention programmes, and safety matters are subject to regular reporting. Moreover, rescue plans and safety management systems are in place for the Group facilities. Given the nature of its business, the Grupa Azoty Group is subject to the requirements of the Environmental Protection Law, the Water Law, the Waste Act, and other regulations on environmental protection, OHS and fire safety. The legislation imposes certain obligations on Group companies with respect to production activities, investment projects, site restoration and creating appropriate conditions for the manufacture, storage, transport and distribution of products. In 2014, the Parent updated, and adapted to the current legal requirements, the Safety Report − General Section with analyses of process risk for units posing a major risk of serious chemical plant failure, Internal Rescue Operation Plan, Industrial Accident Prevention Programme and High Risk Establishment Notification. The documents were approved in 2015 by the Province Commander in Chief of the National Fire Service. Following the implementation of the Seveso III Directive and the amendment of the Environmental Protection Law, the “Grupa Azoty S.A. Safety Guidelines” have been updated.
The Group companies operate appropriate organisational and technical safety measures, such as CCTV systems, safeguards, and procedures for incident prevention and mitigation of consequences. The Grupa Azoty Group maintains well-trained fire services capable of leading effective rescue operations, with additional support from chemical rescue teams and other services.
REACH
The Grupa Azoty Group companies adhere to the regulations that require thorough testing for hazardous properties of all marketed chemical substances, as well as introduction of usage rules and, in justified cases, usage restrictions and bans.
As of January 1st 2007, the REACH Regulation obliges all European producers and importers of chemical substances to register them. Furthermore, authorisations are necessary to use certain substances of very high concern. To register a substance, producers and importers must submit appropriate documentation, including test results and a chemical safety assessment, to the European Chemicals Agency (ECHA).
Pursuant to applicable regulations, the Group’s products are treated as chemical substances or mixtures and are subject to Regulation (EC) No. 1907/2006 REACH. These regulations commit producers to properly asses the safety of produced substances. Substances cannot be marketed without prior registration according to REACH.
The Group has fulfilled its obligation to register all substances it manufactures. To this end, the companies have prepared and published documents conforming to the REACH Regulation requirements for all marketed products and update them whenever required. The registration required a risk assessment which, in the case of hazardous substances (e.g. fertilisers, chemicals, monomers), was based on a broad range of laboratory tests and epidemiological data. The safety assessments served as the basis for preparing chemical safety reports. Such reports cover hazards to humans and the environment throughout the entire life-cycle of a substance. They describe hazards involved in the production of a given substance and in its use by the industry and consumers, as well as its utilisation processes.
They cover hazards to humans and the environment.
In accordance with the REACH Regulation, entities using hazardous substances are required to report any hazards associated with their use which were not identified by the producer as part of the registration process. Information on potential hazards related to chemical substances and mixtures is provided to customers in the form of MSDSs. MSDS drafting and updating procedures have been implemented at Grupa Azoty Group, along with a system ensuring their full availability to customers.
Also, relevant procedures for product labelling (vehicles and packaging) have been put in place, to the extent required by the REACH Regulation, and by Regulation (EC) No. 1272/2008 on classification, labelling and packaging of substances and mixtures (CLP). The procedures reflect the new classification based on research under REACH registration. The Group fulfils its obligations as a downstream user of chemical substances on a regular basis.
In 2015, the process of consolidation and close collaboration between the REACH departments within the Group companies continued. Updates and registration of chemicals and chemical substances were completed as required by the decision of the European Chemicals Agency of 2014. The Group has applied to ECHA for REACH authorisation of trichloroethylene used for extraction in the caprolactam production process. It is expected that in Q1 2016, ECHA will authorise the continued use of trichloroethylene.
The registrations and authorisations obtained by the Group reflect the current business scope of the Group companies. Pursuant to the REACH Regulation, registration of further substances will be necessary in 2018.
SPOT
With the safety of people, their property and natural environment in mind, the Grupa Azoty Group’s plants offer assistance in the event of incidents involving transport of hazardous materials. In 2000, Grupa Azoty KĘDZIERZYN along with a group of other chemical manufacturers and the Polish Chamber of Chemical Industry established the Assistance System for Transport of Hazardous Materials (SPOT) Association. Grupa Azoty S.A. joined the Association a year later with Grupa Azoty POLICE following suit in 2002.
The system aids in recovery from incidents involving transport of hazardous materials. It helps to improve the safety of transport in Poland, and in case of any incidents it facilitates effective removal of their consequences by joint effort and measures of the national rescue, fire services and SPOT members. SPOT’s help in actively preventing potential threats and damage to property as well as in providing assistance to rescue services allows hazardous materials to be transported as safely and reliably as possible.
Responsible growth
As part of its R&D initiatives, the Group companies seek to implement solutions which will have a positive effect on the natural environment when completed. By using appropriate technologies it is possible to define emission thresholds to eliminate hazardous emissions or, should this prove impossible in practice, reduce the emissions and their effect on the environment as much as possible.
In 2015, at the Parent, main work in this area included:
1. Efforts to further optimise the production of caprolactam, one of the key products of the Company. The work was designed to improve caprolactam quality, reduce energy consumption and mitigate environmental impact;
2. Upgrade of iron-chromium catalyst production technology. Efforts were undertaken to modernise the iron-chromium catalyst production to improve product characteristics and minimise its environmental impact;
3. A two-year research project to reduce the environmental footprint of manufacturing processes through comprehensive processing of waste streams containing sodium sulfate with the use of electromembrane methods was initiated.
Environmental projects
In 2015, the Grupa Azoty Group implemented a number of investment projects designed to better protect the natural environment:
The key environmental projects in 2015 included the construction of a flue gas desulfurization unit and flue gas denitrification unit.
The projects were undertaken to ensure compliance of the Parent’s industrial combustion sources with the requirements laid down in the Minister of Environment’s Regulation on Emission Standards for Installations of April 22nd 2011 and the Industrial Emissions Directive. The projects involve upgrading the existing CHP-2 infrastructure and bringing it into compliance with the new requirements. As a result, the amount of pollutants emitted into the atmosphere by the combustion sources will be reduced, improving air quality. Both projects were co-financed under the Norwegian Financial Mechanism 2009–2014.
Their completion is planned for 2016.
The key environmental projects in 2015 include the construction of a new CHP plant – Phase 1 and upgrade of the urea unit.
The construction of a new CHP Plant – Phase 1 is designed to restore the plant’s heat and electricity generation capacity and increase its output to satisfy demand for heat and electricity, based on solutions that ensure compliance with the growing environmental requirements. The upgrade of the urea unit aims to the reduce the unit’s environmental impact, create additional production capacity and increase process efficiency.
Completion of the projects is planned for 2016.
The key environmental initiatives in 2015 include the construction of a flue gas treatment unit and upgrade of the EC II CHP plant as well as upgrade of the floodbank around the phosphogypsum landfill site.
The aim of construction of the flue gas treatment unit and upgrade of the EC II CHP plant is to bring the co-generation operations in line with the NOx, SOx and particulate matter emission requirements of Directive 2010/75/EU. The purpose of the upgrade of the floodbank around the phosphogypsum landfill site is to increase the floodbank’s leak-tightness and to better secure the phosphogypsum landfill site from external waters. The projects will improve environmental safety and ensure coherence with the surrounding area.
Completion of the projects is planned for 2016.
The environmental projects completed in 2015 were the construction of NOx reduction units at two boilers of the company’s CHP plant and modernisation of the reverse osmosis unit.
The NOx reduction units helped to reduce NOx emissions from the K4 and K5 boilers.
The modernisation of the reverse osmosis unit reduced the discharge of ammonia and wastewater containing ammonium nitrate to the industrial drainage system.
Both projects were completed in 2015.
Water and wastewater management
In Azoty Group S.A. water is used for industrial purposes, as a cooling agent, for drinking, to produce process waters, and by fire services. Grupa Azoty S.A. draws water from two sources − a surface intake on the right bank of the Dunajec river and an underground intake from Quaternary water-bearing formations (first aquifer). The allowed amounts of water drawn are specified in the relevant water-law permits.
Grupa Azoty S.A.’s industrial facilities generate the following types of industrial wastewater: process wastewater, sanitary sewage, spent cooling water as well as stormwater. Industrial wastewater is routed for treatment via an underground industrial sewer system and trestle-supported sewer lines. Depending on origin, industrial wastewater is transported to either the Central Wastewater Treatment Plant or the Biological Wastewater Treatment Plant. Industrial wastewater and sanitary sewage undergo mechanical and chemical treatment at the Central Wastewater Treatment Plant. The Biological Wastewater Treatment Plant receives industrial wastewater containing biodegradable substances. This type of wastewater is then additionally streamed to the Wastewater Treatment Facility operated by the Tarnów Water and Sewage Utility (Zakład Oczyszczalni Ścieków Tarnowskich Wodociągów Sp. z o.o.).
Stormwater and spent cooling water from Grupa Azoty S.A. are drained separately, collected in a retention pond and then directed through a Sutro weir into the Dunajec river.
Grupa Azoty S.A. is well prepared for any wastewater system failure. In order to prevent wastewater escape, the system can be entirely shut off by closing the storm water outflow valve and pumping all wastewater to the Central Treatment Plant. It is also possible to direct the entire volume of wastewater generated by Grupa Azoty S.A. to the Wastewater Treatment Facility operated by the Tarnów Water and Sewage Utility.
Relevant parameters of the industrial wastewater are monitored on an ongoing basis at individual system nodes with remote analysers. Also, wastewater samples are laboratory-tested for pollutants at a predetermined frequency.
Solid waste management
The main types of waste generated by Grupa Azoty S.A. are ash and slag. Wet ash was reused and fly ash was delivered to customers for use in the construction industry. Approximately 78% of hazardous waste was spent oils and lubricants. All oils and lubricants were picked up by MIS-Polska, and subsequently delivered to a refinery, where the waste is used to manufacture new oil.
Grupa Azoty S.A. recycles its plastic waste in the Compounding PA6 and Compounding POM units. In 2015, 99 tonnes of plastics were recovered at these units.
The Parent also operates a selective waste collection programme (for waste paper, plastics, wood, glass, used batteries, and used electric and electronic equipment). With environmental concerns in mind, in contracts with external providers of waste collection services and services involving generation of waste Grupa Azoty S.A. incorporates a clause requiring the providers to reuse or dispose of the waste collected from the Company in accordance with environmental protection laws and the waste act. Grupa Azoty S.A. also works with Branżowa Organizacja Odzysku S.A. and the Polish Chamber of Commerce to meet the appropriate targets applicable to recovery and recycling of packaging waste, including composite and hazardous materials packaging waste.
Emissions
Grupa Azoty S.A. has implemented a range of environmental protection solutions contributing to lower air emissions.
The air protection equipment reduces the amount of flue gases and particulate matter discharged into the atmosphere:
1. Particulate matter emissions can be reduced thanks to the use of wet scrubbers, cyclones, multicyclones and electrostatic precipitators;
2. the reduction in pollutant emissions in gases was achieved through scrubbers and thermal reducers.
Grupa Azoty S.A. also measures emission volumes and pollutant concentration levels at major emitters. Measurements are taken on a continuous basis (at the CHP plant and the dual-pressure nitric acid unit) or on a periodic basis at selected process emitters. Emission volumes and pollutant concentrations are measured in keeping with the applicable legal and administrative requirements. As the in-house CHP plant and chemical plants have participated in the emissions trading scheme since 2005 and 2013, respectively, the Company reviews its annual reports and obtains rights on an annual basis.
In an effort to preserve clean air, Grupa Azoty S.A. constantly monitors air quality in five sites across Tarnów. The locations of the measurement sites were selected to span the wide area that may be affected by particulate matter and gas emissions from the plant.
Joint Implementation Project
The Joint Implementation Project, launched in the second half of 2008, was successfully completed at the end of 2012. The project was run by Grupa Azoty S.A. in partnership with Japan’s Mitsubishi Corporation following the signing of the Kyoto Protocol, with a view to reducing GHG emissions, including nitrous oxide produced by the KDC nitric acid unit.
Over the project’s duration (2008-2012), a total of 2,670,356 ERUs were generated, producing a profit in excess of PLN 100m.
Due to its importance, the project was monitored and supervised by management staff and unit operators on an ongoing basis during the entire period. The generated ERUs were subject to repeated reviews by an external company, and the units were placed for trading only after a final report was approved, confirming the correct application of the required standards and methodologies.
The company has been reducing emissions of nitrous oxide as a GHG since 2013, to the levels achieved during the Joint Implementation Project, in an effort to satisfy the BAT (Best Available Technique) criteria.
Noise
As production processes tend to generate noise, the Group companies select equipment with appropriate acoustic parameters for every new unit already at the design stage. In accordance with the integrated permits, noise generation must not exceed the permitted levels.
The selection of equipment featuring proper noise emission parameters or methods of reducing noise applies to workplace noise as well as noise emitted to the environment. In accordance with the integrated permits, noise generation must not exceed the permitted levels.
The main sources of noise affecting the acoustic climate include sources related to the operation of process units (compressors, turbocompressors, reactor and distiller agitators, granulator drive motors), sources related to ancillary process units (such as transmission pipelines, pump systems, fans, cooling facilities, screw and belt conveyors), sources related to the operation of machinery and equipment during the start-up and shut down of process units.
Typical means of reducing noise nuisance are applied, including:
- Installing soundproof enclosures,
- Placing equipment in buildings and casings,
- Exhaust silencers.
According to meter readings, the noise generated near Grupa Azoty S.A. facilities does not exceed the permitted levels.
CO2 emissions
In April 2015, Grupa Azoty S.A. received a free allocation of greenhouse gas emission allowances for 2015: 649,001 Mg with total emissions standing at 1.2m CO2.
Supplementary information to environmental performance in subsidiaries
Responsible Care Programme
In Poland, the Responsible Care Programme® is known as “Odpowiedzialność i Troska”® and its local implementation is supervised by the Polish Chamber of Chemical Industry. Grupa Azoty PUŁAWY joined the Programme in 1995 as the fifth Polish company.
Water and wastewater management
In 2015, the Company continued efforts to reduce the amount of COD and nitrogen compounds discharged to the Wisła river. In Q3 2015, pilot tests were run on wastewater discharged by the Ammonium Nitrate and Nitric Acid Divisions and in Q4 on wasterwater generated by the water preparation station. Final reports from these tests will be presented to the Company in Q1 2016.
Solid waste management
In 2015, Grupa Azoty PUŁAWY complied with the obligations stipulated in the Act on Managing Packaging and Packaging Waste of June 13th 2013 pursuant to:
- Agreements signed with Organizacja Odzysku − as regards reclaiming and recycling of packaging waste and carrying out public educational campaigns,
- An agreement between economic self-government organisations with the Province Marshal − as regards hazardous substances packaging.
The company continued the efforts to ensure compliance with new environmental protection requirements.
The 2014 Annual Reports, pertaining to the emission of greenhouse gases from chemical units and the CHP plant, were successfully reviewed.
As regards environmental protection efforts:
- Work on improvement of the environmental protection management system was continued; the system documentation (including the List of Material Aspects) was updated;
- Detailed objectives were implemented, and internal and external audits with service providers were performed;
- The directions outlined in the company’s Policy towards respect for the natural environment, including pollution prevention and constant improvement of the state of the environment, were followed;
- New General Goals of the Environmental Protection Management System were defined and approved on December 31 2015;
- As part of the activities performed by the Grupa Azoty Group, the company actively participated in the work of teams for the integration of the environmental protection management system and the Responsible Care Program management system, resulting in the implementation of common corporate solution in these areas.
Following the company’s long-term efforts to change regulations on the criteria for storage of waste, September 1st 2015 saw the announcement of the Minister of Economy’s Regulation on admission of waste for storage at landfill sites, dated July 16th 2015. The Regulation, incorporating provisions requested by the company, abolishes restrictions pertaining to the storage of iron (ii) sulfate on dedicated landfills.
The company has fulfilled the obligation to register all substances it manufactures. The company has also prepared and published Safety Data Sheets (or equivalent documents) conforming to REACH Regulation requirements for all marketed products and updates them whenever required.
