Approach to sustainable development

1. Meeting payment deadlines and ensuring safe contract terms for suppliers – actual impact at an upstream level of the value chain. As a leading entity on the paints and varnishes market, the Group promotes good practices related to payments to its subcontractors and suppliers, particularly small and medium-sized enterprises for which Śnieżka may be one of the largest and therefore most important customers. Owing to this, it maintains market standards at a high level, encouraging other entities to follow them through its own example.
2. Implementation of the Supplier Code into the purchasing process – actual impact at an upstream level of the value chain. The process, together with the supplier self-assessment questionnaire and the Purchasing Policy, allows to establish collaboration with entities that comply with the requirements set by Śnieżka in the field of sustainable development, including environmental protection and human rights. It is a factor that strengthens the motivation for positive changes for other enterprises.
3. Developing organizational and corporate culture and transferring it to all levels of the organization’s activities (including suppliers, employees). Communicating values, mission and vision through various channels, taking them into account while verifying the suitability of candidates to work for Śnieżka, in employee development conversations, in contact with customers, etc. – actual impact located throughout the entire value chain. A clear, transparent message based on the Book of Organizational Values allows it to maintain its integrity both internally (for employees who are familiar with their requirements) and from the perspective of business entities with which the Group cooperates throughout the value chain, expecting specific standards of conduct from them.
4. Providing safe working conditions in sites – actual impact in the value chain at the level of own operations. The Group takes occupational health and safety issues seriously, requiring compliance with the rules specified by law and conducting training in this area, both those to which Śnieżka is obliged (including Polish legislation and by complying with the provisions of the Quality, Environmental and Health and Safety Policy) and additional, e.g. first aid. It also conducts research to verify potential harmfulness of working conditions of staff hired in plants, such as verifying the permissible noise level. Thanks to this, it records a low number of accident events – in 2023, three minor individual accidents at work were recorded (in FFiL Śnieżka SA), and 7 within the Group.
5. Providing safe employment conditions – actual impact in the value chain at the level of own operations. Safe work is not only about complying with occupational health and safety law. The Group strives to create circumstances for the performance of professional duties so that its employees feel employment stability in a place that cares about them and strives to develop their competences, based on the provisions of the Personnel Policy and the Policy on Respect for Human Rights.
6. Providing appropriate remuneration for employees – actual impact in the value chain at the level of own operations. The Group strengthens its position on local labour markets by providing its employees with fair, competitive pay, appropriate to the position held, competences and scope of the contract. The basis for maintaining coherence and transparency of the remuneration system is the Personnel Policy, including the job evaluation system.
7. Conducting training for employees in the area of corruption and bribery – actual impact in the value chain at the level of own operations. The Group ensures compliance with the Code of Ethics and internal documents of individual companies, such as the Anti-Corruption Policy of Fabryka Farb i Lakierów Śnieżka SA, by organizing training courses during which the organization’s values in this area and practical ways of reporting violations are discussed.
8. Attention to the development of employee competences – actual impact in the value chain at the level of own operations. Expanding the range of skills of employees allows to retain and develop talents in the organization, thus mitigating the risk of losing valuable human capital.
9. Building a diverse and inclusive work environment – actual impact in the value chain at the level of own operations. The organization has adopted a Diversity Policy and promotes the values to which it refers, which is a clear message of non-acceptance of discriminatory behaviour. The Group is aware that only through an inclusive culture it is able to effectively take advantage of the potential of its employees, and they can develop it in safe conditions.
10. Care for consumers’ health confirmed by certificates – potential impact at a downstream level of the value chain. When using products manufactured by the Group, customers apply them on surfaces of their rooms, where they spend many hours, which is why the product parameters related to the safety of end users are so essential.  Certificates confirming the hypoallergenicity of paints or the safety of toys covered with Śnieżka products allow consumers to make informed and responsible purchasing decisions.
11. Transparent communication about pro-environmental and pro-customer product features – potential impact at a downstream level of the value chain. Responsible marketing allows for a clear message regarding the key parameters of the Group’s products, which confirm its sustainable operations. This communication is carried out on packaging by placing symbols on them relating to product classes and certificates they have obtained, including: Ecolabel, proving the pro-environmental paint features.

1. Greenhouse gas emissions in three scopes – actual impact throughout the value chain. The Group is aware of its impact resulting from its business activities, which is why it counts its carbon footprint in three scopes and has set reduction goals, which can be read in the Report in item 10.3.3.1.
2. Water consumption for production – actual impact at an upstream level of the value chain. The production of paints involves high water consumption, both as a component of water-based paints, but primarily in the production process. Śnieżka takes measures to reduce water consumption, including: by recycling the washings in the washing process.
3. Consumption of raw materials and materials, including packaging, cartons, foils, pallets, etc. – actual impact at an upstream level of the value chain. The manufacturing process of the Group’s products requires the use of packaging allowing for their proper storage and transport, and to protect them, also the use of cardboard boxes and pallets (obtained from valuable raw materials) and plastic waste foil. However, the organization makes every effort to use recycled and recyclable products in this regard.
4. Generation of waste by customers and end users (packaging, cartons, foils, pallets, etc.) – actual impact at a downstream level of the value chain. The Group is aware that the materials it uses to protect the product and allow it to be stored at the end user’s premises constitute waste for the customer. Therefore, it increases the share of raw materials used, allowing for the processing and reuse of e.g. empty packaging.
5. Generation of own waste (including washings) – actual impact in the value chain at the level of own operations. Despite optimizing the use of materials and raw materials, Śnieżka is unable to avoid the generation of waste. Entities with which the Company signs appropriate contracts are responsible for their disposal. However, it minimizes the amount of production residues by recycling part of the washings.

1. Obtaining energy from renewable energy sources (in Hungary, Ukraine), guarantees of energy origin in Poland – no carbon dioxide emission fees – opportunity throughout the entire value chain, identified during the analysis of climate change issues in the simplified materiality analysis process. Technologies based on renewable energy sources use resources derived directly from the natural environment. Energy generated from renewable energy sources emits small amounts of greenhouse gases and other pollutants into the atmosphere. This means it is safe for the environment as it leaves a smaller carbon footprint than coal-based energy. Although energy from renewable energy sources still involves significant costs, its use will become more and more profitable (e.g. due to the rising costs of carbon dioxide emissions). In addition, guarantees of origin help to build the image of a sustainable organization, which is increasingly important for both investors and contractors, as well as consumers.
2. A stable supply chain thanks to cooperation with socially responsible and environmentally sustainable entities, based on long-term relationships – an opportunity throughout the entire value chain, resulting from the impact identified as „implementation of the supplier code into the purchasing process”. In addition to the benefits indicated, a stable supply chain also accounts for the opportunity of sustainable development of the organization in the long term, which contributes to production security and, consequently, also work security for people hired within the Group.
3. Increased trust in the company by building the image of a sustainable organization – an opportunity throughout the entire value chain, resulting from the impact identified as „developing organizational and corporate culture and translating it to all levels of the organization’s activity (including suppliers, employees)…”. Owing to the implemented Sustainable Development Strategy, FFiL Śnieżka SA and Śnieżka ToC transparently communicate with their stakeholders in the ESG area.
4. Higher employee competences, better functioning of the organization and higher organizational revenues – an opportunity in the value chain at the level of own operations, resulting from the impact identified as „care for the development of employee competences”. Developing the potential of people employed in the Group is an opportunity both for the Group itself, due to maximizing the benefits from its own human and intellectual resources, but also for the employees themselves – expanding the range of skills, both hard and soft, increases their  promotion opportunities (including retraining to another department), higher earnings and better job satisfaction. In the longer run, this contributes to increased efficiency and higher revenues of the Group.
5. Greater availability of qualified employees, better functioning of the organization and higher organizational revenues – an opportunity in the value chain at the level of own operations, resulting from the impact identified as „creating a diverse and inclusive work environment”. Ensuring appropriate conditions for performing professional duties and offering competitive pay are particularly vital in the process of recruiting and retaining already employed specialists due to the unique and sometimes narrow, but at the same time desirable scope of their competences. Building an organization that is aware of its various resources, able to combine and use them, allows to develop a unique offer on the market.
6. Recycling e.g. water or products withdrawn from the market – an opportunity in the value chain at the level of own operations, resulting from the impact identified as „generation of waste for customers and end users (packaging, cartons, foils, pallets, etc.)”. Due to the environmental benefits, the idea of a circular economy is gaining more and more importance. Śnieżka processes goods withdrawn from the market and reverses the water cycle in the production process, reducing the amount of waste. Activities in the area of circular economy, apart from reducing costs, have a positive impact on the assessment of the organization by both consumers and rating agencies.
7. Stable relationships with business partners – an opportunity at a downstream level of the value chain, resulting from the impact identified as „meeting payment deadlines and ensuring safe contract terms for suppliers.”. The Group’s business model assumes the purchase of raw materials and semi-finished products from suppliers at a higher level of the value chain and the sale of manufactured goods by direct customers at a lower level.
8. Higher quantitative availability and lower costs of more sustainable (ecological) semi-finished products / raw materials due to their increasing popularity – an opportunity at an upstream level of the value chain, resulting from the impact identified as „consumption of raw materials and materials (including packaging, cartons, foils, pallets etc.)”. With the increasing ecological awareness of the market and the corresponding provisions of the European Green Deal, it is expected that the cost of environmentally friendly materials used in the manufacture of products offered by Śnieżka will be lower.
9. Expanding the range of low-emission products – an opportunity throughout the value chain, resulting from the impact identified as „greenhouse gas emissions in three scopes”. The Group sees the likelihood of increased customer interest in an offer with low emission indicators, therefore, in the short term, it intends to calculate the carbon footprint of its products and develop products whose production and transport will generate lower emissions than in the case of the standard offer, which may contribute to maintaining sales or its growth.
10. Increased customer confidence thanks to a more friendly product formula; creating and communicating safe products for consumers (e.g. Magnat Be Eko paint) – an opportunity throughout the entire value chain, resulting from the impact identified as „transparent communication about pro-environmental and pro-customer product features”. The safety of end users is crucial for the Śnieżka Group, which is why the Company offers allergy-certified and ecological products.  A unique example of such a product are Magnat Be Eko paints, in which 30% of ingredients are of natural origin. This paint has obtained the Hypoallergenic Certificate. Transparent communication of product features contributes to, inter alia: gain customer trust.
11. Boosting sales and gaining customer trust thanks to care for consumers’ health (confirmed by certificates) – an opportunity at a downstream level of the value chain, resulting from the impact identified as „care for consumers’ health additionally confirmed by certificates”. The Śnieżka Group develops recipes in its Research and Development Centre that live up to higher and higher expectations of consumers.

1. The need to calculate the carbon footprint of products – risk at a downstream level of the value chain, resulting from the impact identified as „greenhouse gas emissions in three scopes”.
2. Temporary reduction in production due to limited water availability – a risk at an upstream level of the value chain resulting from the impact identified as „water consumption for production”.
3. Increase in fuel prices – increase in supply and distribution costs – risk throughout the entire value chain, identified during the analysis of climate change issues in the simplified materiality analysis process.
4. Physical risk – heat and frost waves – the need to change recipes and the method of storing products to adapt products to new weather conditions – risk in the value chain at the level of own operations, identified during the analysis of climate change issues in the simplified materiality analysis process.
5. Decreased interest of consumers and customers in high-emission products – risk at a downstream level of the value chain, resulting from the impact identified as „greenhouse gas emissions in three scopes”.
6. Higher costs of doing business as a result of selecting suppliers who comply with the highest standards of sustainable development – risk at an upstream level of the value chain, resulting from the impact identified as „implementation of the supplier code into the purchasing process”.
7. Reducing the demand for products generating a large amount of waste (including non-recyclable – contaminated e.g. with paint) – risk at a downstream level of the value chain, resulting from the impact identified as „generation of waste at customers and end users (packaging, cartons, foils, pallets etc.)”.
8. Physical risk – heat and frost waves – the need to ensure optimal working conditions (e.g. additional air conditioning) – risk in the value chain at the level of own operations, resulting from the topic „climate change”, discussed in the simplified materiality analysis process.
9. Breaking business relationships resulting from failure to maintain appropriate sustainable development standards – risk at a downstream level of the value chain, resulting from the impact identified as „developing organizational and corporate culture and translating it to all levels of the organization’s activities (including suppliers, employees)”

A. Shareholders – general meetings, reports (periodic and current), traditional meetings and videoconferences and chats

B. Analysts – opinion surveys, social media, the Group’s website

C. Banks – telephone/email contact and meetings, opinion surveys, the Group’s website

D. Indirect suppliers – tenders and meetings, telephone/email contact, conferences and industry events, opinion surveys

E. Direct suppliers – meetings, telephone/email contact, conferences and industry events, opinion surveys

F. Media – briefings, post-results meetings and on-going contact contact (via the press office and direct), social media, the Group’s website

G. Stock exchange – telephone/email contact, the Group’s website

H. Supervision institutions – telephone/email contact, the Group’s website

I. Managerial staff – meetings, telephone/email contact, training, internal communication

J. Consumers – satisfaction surveys, social media, communication at points of sale, competitions and promotional campaigns and advertising in various communication channels (including the Group’s website)

K. B2B customers – meetings, telephone/e-mail contact, training, „Customer Service Office” portal (bok.sniezka.pl), satisfaction/opinion surveys, the Group’s website

L. Employees – telephone/e-mail contact, internal magazine, employee newsletter, intranet and the Group’s website, information screens, posters and contact via selected employee representatives, employer branding activities, satisfaction/opinion surveys, training, social media

M. Local government – direct relations (including meetings), telephone, e-mail and traditional communication, opinion surveys, social media, the Group’s website

N. Local community – meetings, social campaigns addressed to the local community, activities of the Śnieżka Foundation, information provided to local media and via social media, opinion surveys, websites of the Group and the Foundation

O. Contractors – meetings, telephone/email contact, opinion surveys, training, social media, the Group’s website