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Letter from the President of the Management Board

Dear Sir/Madam,

2021 was a difficult year. Not only did we continue to work under the pandemic, but we had to deal with a lack of availability of materials and services, soaring prices and changes in the labour market. However, despite these challenges, we have coped admirably – as evidenced by a record profit (PLN 47 million – an increase of approximately 27 per cent year-on-year) and record sales (PLN 1.7 billion – an increase of approximately 2 per cent year-on-year). Unfortunately, 2022 will be a time of great uncertainty, particularly related to Russia’s aggression against Ukraine.

The business environment is changing dynamically, including geopolitics and a brutal war that is taking a big toll on economies around the world. Technical requirements and working conditions are changing, and that is why we have to react on an ongoing basis to ensure that the business run by the Unibep Group is resilient and agile in the face of market demands. Of course, the Russian invasion of Ukraine has made it difficult to predict what the next few months might bring. We constantly analyse the market situation and make decisions that serve the Unibep Group, the people we employ and the communities around us. At the same time, we support our neighbours who are living through the horrors of war, both in Poland – for example, by organising professional childcare for them – and abroad – by helping to organise shipments of food and other essentials for those still in need in Ukraine.

Larger, competent staff

It must not be forgotten that throughout 2021 we operated under COVID-19 pandemic conditions. Throughout this time, the Unibep Group had a Crisis Team in place to continuously analyse all information and manage the changes associated with the pandemic. We also ran a promotional campaign among the staff regarding coronavirus vaccination. We recorded cases of COVID-19 in our organisation, but thanks to our organisational efficiency, our sites – both at home and abroad – worked smoothly, while in the offices we introduced hybrid working appropriate to our needs, using modern IT tools, among other things.

At the end of 2021, the Unibep Group employed 1,616 people (about 8 per cent more than last year). The specific nature of our Group’s business requires experienced staff with expertise. We conduct recruitment processes to source employees with unique, new competences from the market. We also invest in the process of professional development of our current employees, designing individualised training cycles or individual training for them. The Unibep Group never ceases to learn. We want our employees to develop their professional potential with benefit to themselves and the entire Unibep Group.

We focus on ecology

We are aware that the construction industry is facing major changes in the field of environmental protection. Therefore, in 2021, the Office of Sustainable Development and Environmental Protection was established within Unibep SA to coordinate all activities related to the development of pro-environmental attitudes among our employees, as well as the introduction of high standards on our investments projects and the improvement of processes to minimise the impact of our activities on the climate.

At the same time, I would like to emphasise that already today all works carried out on our construction sites are performed in compliance with legal requirements and internal environmental protection standards of the Unibep Group. We continuously monitor environmental legislation, which allows us to comply with the requirements in this respect.

In 2021, we intensified activities among employees to build awareness of ESG issues, including training sessions and meetings with external experts attended by employees and managers, including members of the Management Board.

We have also decided to enter a new business segment dealing with green construction, including the construction of incineration plants, co-generation, distributed district heating, commissioning, system cleaning, modernisation of industrial and energy plants. As a result, the power and industrial division was separated in the Company’s organisational structure.

In 2021, an ESG Team was established in the Unibep Group, with representatives from all our companies responsible for environmental, social and corporate governance issues. The main tasks of the ESG Team for 2022 include the development of, among others, the UN Sustainable Development Goals, the 2021 Sustainable Development Report (ESG) for the Unibep Group and the Integrated Report, as well as the ESG Strategy of the Unibep Group. The Management Board of Unibep S.A., in accordance with the decision of the Supervisory Board, was obliged to adopt the ESG Strategy for the Company and the Unibep Group, to adopt targets for the reduction of greenhouse gas emissions for the Company in specific time perspectives.

Cooperation-oriented

The Unibep Group bases its operations on three values: knowledge, passion and trust. These values form the basis for transparent and fair business conducted in accordance with applicable laws and internal regulations. This is why the “Unibep Group Code of Conduct” has been prepared and introduced in our organisation. It is the starting point for the other regulations in the Group and coexists with them. It has been implemented to identify models of attitudes and rules of conduct for employees in their relations with each other, with business partners, shareholders, public institutions and local communities in the areas and markets where the Group Companies operate. The Code applies to all Unibep Group employees working under an employment contract or any other civil law relationship. All employees are required to read the document and comply with the rules contained therein.

We continue to pay attention to safety on construction sites, expanding our supervision departments in this area. As an active signatory to the Agreement for Construction Safety, we have worked to prepare all instructions aimed at improving a culture of safety.

As the Unibep Group, we are active in local communities, which is why we highly value cooperation with schools, universities and local governments. We are proud, for example, of the fact that the Unibep Group Foundation – Unitalent was the initiator of the Xylopolis project (a unique story about nature, people and their mutual respect, about a green and zero-emission city), which was the main theme of the Podlaskie Voivodeship’s presentation at the EXPO 2020 World Exhibition in Dubai (opened on 1 October 2021), or of the constantly improving cooperation with technical universities all over the country.

As I wrote earlier, 2022 will be a year of great change, but also of turbulence in the market, mainly related to the war across our eastern border. I would like to stress that while Unibep Group may change in terms of business and organisation, one thing will remain constant and unchangeable: our work culture, atmosphere, respect and mutual cooperation. As an organisation, we passed a difficult test of responsibility, courage and trust in many crisis situations. I am sure that this will be the case this time, too.

I hope you will find this Sustainability Report for 2021 of interest.