Sustainable Development, for MOL Group, means a corporate commitment to the balanced integration of economic, environmental and social factors into everyday business operations, to maximise long-term stakeholder value and to safeguard licence to operate.
SUSTAINABLE DEVELOPMENT GOVERNANCE STRUCTURE
The governance structure of sustainable development is based on the principle that SD should be an integral part of MOL Group’s day-to-day operations. This implies that the sustainability actions should be integrated into prevailing business strategies and recognised as a normal part of business operations. Sustainability is overseen by the SD&HSE Vice President as a recognition of the fact that safety and environment protection is an essential part of corporate sustainability.
- Ensures the highest commitment and representation of sustainability issues, both in internal and external MOL Group relations
- Reviews and approves SD related policies and long-term objectives
- The highest level position responsible for SD coordination, reports directly to the G-CEO
- Coordinates the development and implementation of Group-level SD actions
- Evaluates and reports on performances and results of SD issues at group-level
- Chairs the Sustainable Development Working Committee
- Informal committee of executives
- Responsible for development and revision of group-level SD strategic initiatives
SD PLAN 2020
The sustainable development strategy of MOL Group sets targets and actions for the period of 2016-2020. Actions are grouped under six focus areas: climate change, environment, health and safety, communities, human capital and ethics and governance. MOL Group defined sustainable development strategic objectives already for the period 2007-2010 and later also for 2011-2015. The latest strategy called SD plan 2020 includes 36 actions, all of them considered to be essential for the successful management of the long-term economic, social and environmental challenges MOL Group faces in the future. The main objective is to “achieve and maintain an internationally acknowledged leading position (top 15%) in sustainability performance.”
POLICY AND MANAGEMENT SYSTEM
HSE AND SOCIAL IMPACT POLICY
HSE and Social Impact Policy is gradually being implemented through a process of breaking down its goals into long-term objectives and local and group-level annual HSE objectives. Through this process it can be ensured that all group units and members are operating in line with the principles described in MOL Group’s policies.
HSE MANAGEMENT SYSTEM
The HSE Management System is the collection of the highest level expectations in HSE for MOL Group’s operations. It also provides direction and conceptual guidance for managers who wish to improve HSE performance management in their businesses.
We would like our stakeholders to perceive us through the quality of the products and services we offer and the values we hold dear. We define our stakeholders as being groups who affect and/or could be affected by our operations. We are committed to the on-going process of an open and transparent multi-stakeholder dialogue. Being a large multinational company, the majority of our engagement processes occur at a local-level. In this section we provide an overview of the engagement and dialogue processes we undertake with our main stakeholder groups.
MOL Group management is aware of its fundamental duty to represent and promote shareholder interests and recognises its accountability through the company’s performance and activities. Whereas MOL Group shareholders are mainly UK and US institutional investors, there are also a significant number of individual shareholders. We regularly conduct shareholder identification surveys in addition to regular reports on the geographical distribution and nature of our shareholders using our share registrar, KELER.
The long-term success of our company depends to a large degree on the quality and commitment of our workforce. We therefore utilise several engagement mechanisms designed to improve working conditions, increase health and safety performance and deal with all other topics which are raised by employees.
The MOL Customer Services is not only the face of the company, but a key customer information tool where customers can make enquiries, express opinions or request for assistance.
Efficient cooperation with our suppliers significantly contributes to our long-term business success.
The operating environment of MOL is determined by international and national regulations. MOL contributes to public consultations and professional discussions about regulations relevant to MOL’s operations in line with the relevant legal framework and Group-level guidelines. MOL has memberships in 14 European and nearly 100 national professional associations where our experts represent MOL with their professional opinions. MOL representatives have also been selected as board members of several professional associations. MOL has its own department which is tasked to deal with regulatory issues - neither professional lobbyists nor company staff are employed at government institutions. MOL representatives are also involved directly in public consultations and professional discussions aimed at modifying the regulatory environment. Where and when it is possible, MOL communicates its professional standpoint in writing to relevant government bodies.
Most important issues discussed in 2018 within the framework of the professional organizations where MOL Group holds membership were:
- European associations were intensively participating in the debate on the revision of the Renewable Energy Efficiency, Emission Trading, Circular Economy and other related legislative packages. In addition, the European Refiners maintain a permanent forum to discuss the challenges of the industry in Europe with high level European decision makers.
- Activities were reported by representatives around four big areas. The first area is dealing with long-term future of industry and EU initiatives including the Vision 2050 report and the Mid-century vision of European chemicals. The second big area is related to best practice sharing, joint standardisation, which is important for HSE colleagues and for colleagues dealing with pipeline management production assurance and reliability management or other related areas. The third area is focusing on advocacy towards EU institutions about ongoing regulatory topics, such as the revision of the Renewable Energy, Energy Efficiency, Emission Trading, Circular Economy and other related legislative packages. The last one is specialised on REACH implementation and advocacy such as dossier updates, testing proposals, substance and hazard identification, and toxicology assessments.
MOL Group spent 740k EUR on various industry initiative membership fees in 2018, including in the organisations listed in this document.
PUBLIC AND LOCAL AUTHORITIES
MOL acts in co-operation with other economic players and provides professional support for governments who are refining national energy, climate and environmental regulations to harmonize them with EU requirements. MOL supports the efforts of countries in the region to develop a single energy market. In consultation with EU and national economic operators, MOL seeks to cooperate with governmental bodies and local authorities by effectively by providing its expertise. However, it neither takes part in political debates between political parties nor takes sides in favour of any national or local politicians or political issues. MOL does not make payments to political parties.
Our aim is to conduct our business operations in a socially responsible manner which also complies with best industry practices. A fundamental part of our value set is support for national, cultural and religious diversity. To fulfil our commitment and social responsibilities we have increased the support we offer to the local communities where we operate
EXTERNAL SUSTAINABILITY INDICES AND RATINGS