As a result of corrective actions taken by the current management board, ORLEN has regained the trust of Norges Bank Investment Management and has been removed from its watchlist. The company was placed on the list after the previous management’s acquisition of the media company Polska Press, which the Norwegian bank had assessed as posing a risk of human rights violations. Norges Bank removed ORLEN from the list a year earlier than expected, recognizing that the actions of the current management eliminated the previously identified risks.
Management Board’s Decisive Actions
From the very beginning of his tenure, CEO Ireneusz Fąfara had criticized the previous board’s decision to acquire Polska Press and pledged to take steps to remove ORLEN from Norges Bank’s watchlist.
“We are very pleased with Norges Bank’s decision. ORLEN is regaining investors’ trust, which has been one of my goals since day one. This is also a confirmation that the decisions made by the current management board are restoring corporate governance and putting the company back on the right track. ORLEN should never have ended up on this shameful list of just a handful of companies accused of human rights violations. These politically motivated decisions by our predecessors led us there, but fortunately, this is now in the past. Norges Bank has made it clear that our mechanisms for protecting press freedom meet the highest international standards. Now, we are focusing on the future and on the core business outlined in our ambitious strategy: The energy of tomorrow starts today.”
– Ireneusz Fąfara, CEO of ORLEN
Corrective Measures Taken by ORLEN
To address Norges Bank’s concerns, ORLEN implemented a range of corporate reforms. In 2024, for the first time in Polska Press Group’s history, the company held public selection processes for editor-in-chief positions across its regional media outlets. The recruitment was conducted transparently, with media outlets being informed at every stage about the number of candidates and the reasons behind the final decisions.
Additionally, ORLEN introduced the “Human Rights Protection Policy in the ORLEN Capital Group,” which allows journalists and employees of Polska Press to report any potential abuses. The company also tightened its internal policies, enforcing strict prohibitions against any involvement of group companies in political initiatives or projects, including their financing.
Removal from the Watchlist and Ethical Endorsement
As a result of these efforts, in December 2023, ORLEN received a positive opinion from Norges Bank’s Ethics Council, which laid the foundation for the final decision on February 6, 2024, to remove the company from the watchlist.
Norges Bank Investment Management manages the world’s largest sovereign wealth fund, and its recommendations—based on strict principles and criteria—serve as guidance for investors evaluating corporate governance standards.
Source: Manager Plus
