Since November 1998, shares of Orange Polska S.A. (formerly Telekomunikacja Polska S.A.) have been listed on the primary market of the Warsaw Stock Exchange (WSE) within the continuous listing system.

The Company’s shares are included in the following indices: WIG20 and WIG30 large-cap indices; WIG broad-market index; WIG telecommunication industry index; and RESPECT Index of socially responsible companies.

In 2017, Orange Polska S.A. was once again included in a prestigious group of socially responsible listed companies. The new portfolio of the RESPECT Index announced by the Warsaw Stock Exchange comprises 28 companies. Orange Polska S.A. has been present in the index portfolio since its first edition. The RESPECT Index has been increasingly popular among companies and investors, who have noticed a link between consideration for social and environmental impact and financial performance. In addition, Orange Polska S.A. has been included in the FTSE Russell’s ESG Ratings, a global index that measures company’s performance across environmental, social and governance (ESG) areas.

We want our relations with suppliers and business partners to be based on transparent principles and mutual obligation to abide by ethical standards. We want to build good and long-term relations with our suppliers.

Supplier assessment

We take active part in the implementation of the Orange Group’s global supplier assessment programme, QREDIC. The results of the assessment are used in a process of negotia- tions and selection of suppliers on the global level, e.g. for subscriber devices or network equipment purchases. A definitely negative assessment with respect to compliance with ethical and environmental standards disqualifies the supplier.

On the global level, Orange has also joined the Joint Audit Cooperation (JAC) with other operators. The initiative aims at ensuring compliance with ethical, environmental and health & safety standards as well as ban on child labour across common suppliers.

In 2017, a total of 89 audits were conducted within the JAC framework, including 15 commissioned by Orange.

Local suppliers are required to comply with the compliance clause, which is included in agreements with our Company.

The clause includes an obligation to comply with ethical and responsible conduct rules, particularly concerning human rights, environmental protection, sustainable development and anti-corruption. In addition, the anti-corruption clause is included in all purchase agreements.

Building long-standing relations with suppliers

In 2017, we co-operated with 4,100 suppliers in Poland, mainly, by value of purchases, subscriber and network equipment suppliers, network contractors, IT equipment suppliers, personnel outsourcing agencies and media houses. We strive to build our relations with suppliers on the basis of long-term contracts providing for transparent terms of co-operation. Over 98.2% of purchases (by value) are effected under long-term agreements. We gradually work on effecting all payments to suppliers in due time. The timely payment rate is 89.2%. The standard term of payment to suppliers is up to 30 days (93.58% agreements).

Transparent supplier selection process

We follow a competitive and open procurement policy, which provides for direct electronic placement of orders with suppliers. Currently, over 72.6% of orders (by volume) are placed in the electronic form. Suppliers who want to co-operate with Orange can register in a database of potential suppliers and thus participate in the procurement processes initiated by Orange.

Transparency of the supplier selection process is ensured by the Procurement Process Code. It is a set of rules, which should be followed by all procurement organisation employees in their direct and indirect contacts with suppliers. The Code includes procurement procedures which transparently regulate supplier selection, contracting and confidentiality.

Broad Alliance on Digital Skills in Poland, Memorandum of Co-operation for Improving Service Quality in the Telecommunications Market, Cell Phone Safety Good Practises, Alliance for Child Safety On-line (www.orange.pl/kodeksy.phtml), Global Compact (www.ungc.org.pl/o-nas/obszary-dzialan/), Partnership for Environment (www.gridw.pl/partnerstwo). These initiatives are voluntary.

Domestic organisations: Employers of the Republic of Poland, “Lewiatan” Confederation, Polish Chamber of Information Technology and Telecommunications, French-Polish Chamber of Commerce, Responsible Business Forum, Business Centre Club, Foundation for the Development of Radiocommunications and Multimedia Technologies, Association of Stock-Exchange Issuers.
Membership of these organisations is of strategic importance for the Company. The Company’s representatives sit on their boards and the Company pays membership fees, supporting statutory tasks, and participates in additional projects.

Foreign organisations: European Telecommunications Network Operators’ Association (ETNO), Forum for International Irregular Network Access (FIINA), Global Compact, Global Settlements Carrier Group (GSCG), International Cable Protection Committee (ICPC), International Inbound Services Forum (IISF), International Telecommunication Union (ITU), RIPE Network Coordination Centre (RIPE NCC), TeleManagement Forum (TM Forum), Forum of Incident Response and Security Teams (FIRST), GSM Association (GSMA), European Internet Exchange Association (Euro-IX). These are industry organisations and the Company’s membership involves payment of membership fees and participation in various projects.

Each employee of Orange Polska must read and understand our Code of Ethics, and the Ethics in Orange Polska e-learning course is a part of mandatory training for new joiners. Also our suppliers and business partners shall read and understand our Code of Ethics under the compliance clause of our standard contracts. The Code in Polish is available on our website, at www.orange.pl/kodeksy.phtml.
Issues related to compliance with ethical standards are analysed by the Ethics Committee. It consists of five members: Chairman, two permanent members (Management Board Member in charge of Human Resources and Internal Audit Director) and two members appointed for three-year terms. In addition, the operations of the Committee are supported by two permanent Secretaries.

The integrated report has been reviewed by the Management and Supervisory Board Members, and validated by the Chairman of the Audit Committee.

No legal actions for anti-competitive behaviour or anti-trust or monopoly practices were instituted against Orange Polska in 2017.

No fines for non-compliance with environmental laws and regulations were imposed in 2017.

Occupational exposure and a disease included in the current list of occupational diseases (asbestosis and other types of silicosis) was confirmed in one case. The decision concerned a former employee, who used to work as a stoker in 1990s.

Another decision confirming an occupational disease in a former employee (telephone installer in the Regional Telecommunications Office), which was issued in the reported period, resulted from proceedings initiated in 2016. However, the document indicates that the disease was unrelated to the conditions at the workplace.

* Indicator reported partially

There are no positions involving high incidence or high risk of occupation-related diseases.

Health and safety topics have been covered in the Group Collective Labour Agreement.

* Indicator reported partially

In case of a telecommunications company, issues related to the safe use of services mean not only the utmost care for meeting security requirements, but also reliable information on the devices and technologies used. In response to inquiries regarding potential negative influence of radio waves emitted by telecommunication devices and other devices that use new technologies, we have prepared a global Orange portal on radio waves, which explains in simple terms how mobile telephony works. It includes sections presenting latest scientific reports and recommendations for use of mobile devices to reduce exposure to radio waves.

The portal has been also translated to Polish and it is available at www.ondes-radio.orange.com/pl/.

The company does not finance political parties, politicians or related institutions. Any departures from this rule require specific consent in line with the obligation referred to in the Chapters 8 and 9 of the Orange Polska Anti-corruption Guidelines. In the period from 1 January to 31 December 2017, no consent for financial contributions to political parties or organisations and no consent for offering or granting donations to public officers were granted under Chapters 8 and 9 of the Guidelines.

All mobile phones in Orange Polska’s portfolio meet the emission standards specified by the International Commission on Non-Ionizing Radiation Protection (ICNIRP). We ensure they are thoroughly tested and the safety of their use is verified in the process of examining their conformity with essential requirements. All mobile devices in Orange Polska’s portfolio are safe for users’ health and are accompanied by information on the Specific Absorption Rate (SAR), which is always lower than the official limits (below 2 W/kg). SAR for mobile phones refers to the maximum level of radio waves that the user can be exposed to during a call. SAR values can be found in the user manual (technical specifications), which is provided by the manufacturer, or in handset descriptions at www.orange.pl.

Base stations

Orange Polska uses proven wireless communication technologies that are safe to all users. The company complies with all European and, much stricter, Polish standards regarding electromagnetic field (EMF) emissions. EMF exposure around all of our base transceiver stations (BTSs) and broadcasting stations does not exceed the limit set forth in Polish regulations, that is 0.1 W/m 2 in areas accessible to the public.

We comply with all the strictest standards on EMF values around all our base and broadcasting stations. As a result of technical efforts related to protection against EMF emissions by BTSs of radio communication facilities developed or operated on our networks, we can ensure compliance with the standards specified in the Regulation of the Minister of Environment regarding permissible EMF values in the environment and methods of verification thereof (Journal of Law No. 192 of 2003, item 1882/83).

This is ensured through the following:

• Development of the relevant estimates of EMF impact on the environment at the planning stage of BTS construction or modernisation projects;
• EMF measurements vs. permissible limits, which are subsequently reported to the environmental protection bodies, which decide whether to carry out public consultation or not (public consultation and dialogue concerning network facilities are carried out as part of administrative proceedings and initiated and supervised by the relevant government agencies).

No incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle were reported in 2017.

All products in Orange Polska’s portfolio have the relevant labelling, namely:

• name and address of the manufacturer and operation manual in Polish;
• CE marking pursuant to the Regulation of the Minister of Infrastructure of 15 April 2004 on the assessment of compliance of telecommunication terminal devices to be connected to public network terminating segments and radio devices with the essential requirements and on marking thereof;
• the ‘basket’ icon pursuant to the Act of 29 July 2005 on waste electrical and electronic equipment;
• Declaration of Conformity (DoC) pursuant to the Regulation of the Minister of Transport and Construction of 3 February 2006;
• Specific Absorption Rate (SAR) information pursuant to the Regulation of the Minister of Transport and Construction of 3 February 2006.

No incidents of non-compliance with regulations and voluntary codes concerning product and service information and labelling were reported in 2017.

One fine of PLN 16.3 mln was imposed by UOKiK in 2017. In one case, UOKiK determined that Orange Polska violated collective consumer interests and imposed informational obligations on Orange Polska. In another case UOKiK instituted formal proceedings to examine whether Orange Polska violated collective consumer interests. Orange Polska is negotiating its commitments with UOKiK.

Our customers filed 17 complaints with the Inspector General for Personal Data Protection (GIODO) in 2017. All GIODO’s decisions made with respect to these complaints in the reported period confirmed the compliance of personal data processing by Orange Polska with the relevant requirements. No fines were imposed on the Company for breach of personal data protection regulations in 2017. At each stage of data collecting and processing, we ensure that customers are informed about the purpose and scope of data processing, as well as the right to access and rectify their personal data.

There were no other penalties, except from the penalty imposed by UOKiK described in 417-3.