1. Introduction
This Corporate Social Responsibility Policy (the “CSR Policy or "Policy”) has been prepared by the Board of Directors of Petrolina (Holdings) Public Ltd (HE1018) (the "Company") which is registered under the Companies Law, Cap.113, as may be amended from time to time ("the Law") and is published on the Company's website (www.petrolina.com.cy).
The Company is a private public company under the Law and its shares are listed and traded on the Cyprus Stock Exchange (the “CSE”).
As a business, the Company acknowledges its commitment to improving social welfare through voluntary investment in business practices and corporate resources, as part of the Company's Corporate Social Responsibility (the “CSR”).
This Policy applies to the Company as the framework for making decisions in a transparent and merit-based manner regarding contributions and/or sponsorships made by the Company to the local communities in which it operates and to society at large. The implementation of this Policy also ensures the effective use of the resources available to the Company for this purpose.
The scope of this Policy covers the Board of Directors and all employees of the Company. This Policy becomes effective as from the date it is approved by the Company's Board of Directors and is subject to revision.
This Policy is published on the Company's website at www.petrolina.com.cy.
Responsible Department for its’ Implementation is: Marketing & Communication.
2. Basic Principles of Corporate Social Responsibiltiy Policy
2.1 The Company aims not only to play a leading role in the economic development of the areas in which it operates but also to respond to the needs of Cypriot society through various actions and activities.
2.2 The Policy is mandatory for any kind of contribution by the Company, including nonreciprocal contributions.
2.3 Inextricably linked to society, the Company constantly implements long-standing Corporate Social Responsibility programmes that cover a wide range of activities, reciprocating the trust shown by its consumers, shareholders, and investors.
2.4 The aim of the Company is to undertake actions that focus on people, social solidarity, culture, sports, education, and environmental protection.
2.5 The philosophy of the Company's Corporate Social Responsibility stems from the humanitarian principles and values of its founders, such as:
- Commitment and dedication to consumers
- Respect for people, teamwork
- Integrity in all transactions
2.6 Based on the timeless values mentioned above, the CSR strategy and policy consist of a rich array of actions and are based on five (5) pillars:
- Social Solidarity
- Health
- Sports - Culture - Education
- Environment
- Working Environment
2.7 To safeguard the interests of the Company, the CSR Policy is aligned with its business strategy and supports a culture of performance creation. This alignment of strategy and values with the goals of employees, management, and shareholders motivates employees to consistently act in the best interests of the Company.
2.8 The Company participates in Corporate Volunteering as a mechanism to encourage the personnel volunteers to participate in Corporate Social Responsibility actions.
2.9 Volunteer employees and participants in the Company's Petrolina Community team are informed of their responsibilities as volunteers when participating in the Company's CSR actions, within the framework of the Declaration of the "Rights and Responsibilities of Volunteers" (Volunteerism), approved by the Council of Ministers of the Republic of Cyprus.
3. Pillars of Corporate Social Responsibility (CSR)
The Company accepts, reviews, and responds to Social Contributions/Sponsorships Requests that aim to benefit and are considered beneficial for local communities and society, provided that the proposed actions align with the five (5) Pillars on which this CSR Policy is based.
3.1 Social Solidarity
The Company acknowledges the significance of social inclusion and cohesion and, therefore, undertakes actions with the primary goal of improving the living conditions of our fellow human beings.
3.1.1 The Company supports social solidarity programs by contributing to the efforts of organisations with recognised social contribution initiatives aimed at addressing social issues and by supporting vulnerable social groups and individuals.
3.1.2 The Company supports initiatives and programmes aimed at social development, promoting prosperity and diversity, as well as combating poverty and inequalities.
3.1.3 The Company has implemented initiatives integrating voluntary contributions. Within this framework, it has established the Petrolina Community team, comprising employees, petrol station owners and their families who actively participate in the Company's CSR activities.
3.2 Health
The Company recognises the value and importance of human life and supports actions and organisations whose primary concern focused is human health and the improvement of people's quality of life. The Company supports initiatives and programmes of organisations that provide:
3.2.1 Information, psychological support, and practical assistance to women with experience of breast cancer.
3.2.2 Functional rehabilitation services for patients through the purchase of medical equipment.
3.2.3 Detoxification and support for dealing with addictive substances.
3.2.4 Education and creative activities, support for day care programmes, and treatments for children and adults with special needs.
3.2.5 Fulfilment of wishes of children with cancer and/or palliative care services for cancer patients, and prevention programmes.
3.2.6 Support to patients and enhancement of research for suitable and effective treatment of neuromuscular and genetic diseases.
3.3 Sports - Culture - Education
The Company supports initiatives in the fields of art, culture, and sports, as these areas contribute to the enhancement of cultural diversity.
3.3.1 The Company supports and enhances activities related to education, as well as the cultural and historical heritage of the country.
3.3.2 The Company supports artistic events, theatrical performances, festivals, conferences, and workshops, aiming to continue the cultural traditions of the country while opening new cultural horizons.
3.3.3 The Company sponsors federations, associations, academies, major sporting events and other events. It strengthens the efforts of athletes and participates in motorsports with the Petrolina Racing Team crews.
3.3.4 The Company, in the field of education and innovation, awards monetary prizes to outstanding school and university students, and offers scholarships of excellence to postgraduate students, thereby fostering research and the new generation of scientists.
3.4 Environment
The Company recognises the importance of environmental sustainability and policies for sustainable development and environmental protection. It consistently implements and/or undertakes environmental actions, enhancing and fostering environmental awareness among citizens, particularly children.
3.4.1 The Company, accordingly, and to the best of its ability, assesses policies and strategies to ensure its sustainability within the context of the European Green Deal and the regulatory framework in which the Company operates, including the legal framework of Cyprus.
3.4.2 It implements environmental responsibility measures in its business operations, including the management of recyclable materials in its offices and the recycling of liquid and solid materials in its facilities and petrol stations.
3.4.3 It invests in renewable energy sources by installing photovoltaic systems at its Company petrol stations, contributing to the reduction of emissions.
3.4.4 It supports organisations and campaigns aimed at environmental protection and recycling, as well as initiatives focused on preserving and enhancing the natural beauty, biodiversity, and ecosystems of Cyprus.
3.4.5 It supports initiatives related to climate change, circular economy, reforestation, forest conservation, as well as coastal and marine conservation.
3.5 Working Environment
The Company aims to cultivate respect, promote teamwork among its personnel, and build trust among employees and partners alike.
3.5.1 The Company has and adheres an Equal Opportunities Policy/Non-Discrimination Policy, ensuring equal employment and development opportunities, as well as equal treatment for all.
3.5.2 It has and enforces a Policy Against Workplace Harassment and Bullying, ensuring that all personnel are treated with dignity and respect.
3.5.3 It has and implements a Health and Safety Policy to ensure the well-being and safety of its personnel.
3.5.4 It has and adheres to a Code of Business Ethics.
4. CSR Action Planning
4.1 In the planning of Corporate Social Responsibility actions, the Applicant is expected to follow the steps outlined below (collectively referred to as the Action Plan/Actions):
Steps
1: Description of the Action
2: Identifying Stakeholders of the Action
3: Communicating with Stakeholders
4: Preparation for the Implementation of the Action
5: Promotion of the Action
6: Implementation of the Action
7: Results of the Action
4.2 Social contribution/sponsorship under this Policy may include enhancing activities and related events that promote the CSR pillars as stated in this CSR Policy.
4.3 Sponsorship refers to any monetary or other form of financial provision, including in-kind donations, intangible goods, or services provided by the Company to support specific activities or purposes of the recipient of social support. Compensation may be provided in return for promoting the Company's work. This provision is made in accordance with the objectives, priorities, and policies outlined within the framework of the principles and values of the Company, as stipulated in this Policy.
4.4 They do not constitute Social Contribution/Sponsorship within the meaning of the above if such contribution could constitute:
a. Symbolic gifts to third parties, which are covered by the Code of Conduct.
b. Advertising placements, which are not provided in conjunction with any of the above.
c. Philanthropy, unless no benefit is expected for the Company.
5. CSR Action Support Process, Roles and Responsibilities
5.1 A Request for Social Contribution/Sponsorship may be submitted by natural persons, legal entities of public or private law, foundations, non-governmental organisations (NGOs), as well as other bodies active in the areas referred to in this Policy.
5.2 Requests from interested parties for Social Contribution/Sponsorship from the Company are submitted throughout the year by completing and submitting a standard Application. The Application can be requested and sent via email to info@petrolina.com.cy, and it must include the following details:
- General information of the body applying for Social Contribution/Sponsorship,
- Contact details of the responsible person for communication, and
- Other information related to the submitted request.
5.3 The Request is submitted to the Company, and additional documents and supporting materials may be requested from the Applicant to substantiate the Social Contribution/Sponsorship Request.
5.4 In exceptional cases, Social Contribution/Sponsorship Requests that do not fall within the Company's annual approved CSR budget and action plan are presented to the Board of Directors for approval or rejection. In such cases, other provisions of this Policy apply accordingly.
6. Review, Evaluation and Approval Process
6.1 To ensure transparency and reliability, Social Contribution/Sponsorship Requests, upon submission, are initially collected by the Marketing & Communication Department for review and management. Subsequently, the Company evaluates the submitted requests for Social Contributions/Sponsorships along with all the supporting documents provided, or any additional documents that may be requested subsequently, to substantiate the requests.
6.2 To mitigate any risk to the Company's reputation, an audit of the general information and the history of the interested body is conducted to ensure clarity regarding the intention and responsibility of the recipient of the Social Contribution/Sponsorship, ensuring its proper use.
6.3 During the evaluation process, the Company also verifies the tax implications associated with the Social Contribution/Sponsorship.
6.4 Following the evaluation of the Social Contribution/Sponsorship request, the Marketing & Communication Department presents the request to the competent Executive Director of the Company. Depending on the guidelines for the request, the Company follows its intended approval and/or rejection procedure.
6.5 Each request for Social Contribution/Sponsorship must be supported by an Action Plan detailing the initiative, requested benefits, objectives, and impact of the action. Additionally, it should address social and environmental issues as well as the three main ESG (Environmental, Social, Governance) pillars, outlining the footprint of each action.
7. Management - Implementation - Monitoring
7.1 Depending on the type, complexity, and amount of the Social Contribution/Sponsorship, its management may, upon the recommendation of the Responsible Department or a decision of the Company's Board of Directors, be carried out through a third-party body, including a non-profit organisation. In such cases, the third-party body must be legally established and possess the organisational competence and procedures to ensure the effective and transparent management of such Social Contribution/Sponsorship.
7.2 In the case of Social Contribution/Sponsorship, as well as in special cases, following a recommendation by the Company, the commencement of disbursement to its recipient may be subject to the signing of a relevant contract. This contract will define the actions granted, the terms and conditions, as well as the mutual obligations between the recipient of the Social Contribution/Sponsorship and the Company.
7.3 The Marketing & Communication Department oversees communication with involved parties to finalise the Action Plans and monitors their implementation and execution.
7.4 Recipients of Social Contribution/Sponsorship from the Company are obligated to provide, upon request, all necessary supporting data related to the implementation of their actions and/or the use of resources granted by the Company for the implementation process and/or the execution of the Action Plan/Actions related with the Social Contribution/Sponsorship granted by the Company.
8. Budget
8.1 A Social Contribution/Sponsorship Budget (hereinafter referred to as the "BSCS”) is allocated, the amount of which is determined by the Board of Directors of the Company during the annual evaluation of the Company's Budget and is revised annually.
8.2 The scope of the BSCS and the contribution rate to the Company's CSR actions may be revised on a case-by-case basis by the Board of Directors within the context of the annual budget.
8.3 Any contribution/sponsorship or social support provided in cash or in kind must be carried out in accordance with the Company's standard payment and accounting procedures and recorded in the Company's accounting system.
9. Cancellation of Social Contribution/Sponsorship
The Company reserves the right to unilaterally cancel the Social Contribution/Sponsorship at any stage if the implementing body is in any way involved in an event or incident that may adversely affect the Company's corporate reputation and image.
10. Publicity
The Company may publish details of the action, the Applicant, the object, and the amount of the Social Contribution/Sponsorship in its informative or promotional materials, on its website, in the press (print or electronic), in Mass Media or Communication channels, and on the Company's social media platforms, as well as photographic and/or video material for promotional purposes.