ORLEN removed from the Norwegian "list of shame"
As a result of corrective actions taken by the current Management Board, ORLEN regained the trust of Norges Bank Investment Management and was removed from the watch list. The company entered it after the purchase of the Polska Press media company by the previous management. His actions were then assessed by the Norwegian bank as resulting in a risk of "human rights violations". Norges Bank removed the concern from the list a year earlier than the expected observation period, concluding that the actions of the current Management Board eliminated the previously identified risks.
Since taking office, CEO Ireneusz Fąfara has criticized the previous management’s decision to acquire Polska Press and vowed to take steps securing ORLEN’s removal from the Norges Bank watchlist.
“We’re very pleased with Norges Bank’s decision. ORLEN is regaining investor trust, which has been one of my top priorities since day one. It is also a clear confirmation that the steps taken by the current management to restore proper standards of corporate governance are putting the Company back on the right track. ORLEN should never have ended up on the embarrassing list of just a handful of companies accused of human rights violations – a consequence of politically-driven decisions made by its previous leadership. Fortunately, that chapter is now behind us. Norges Bank has made it clear that our press freedom safeguards come up to the highest international standards. Now, our focus is firmly on the future and on delivering the ambitious strategy that defines the core of our business,” says Ireneusz Fąfara, CEO and President of the ORLEN Management Board.
In response to Norges Bank’s concerns, ORLEN undertook a series of corporate reforms. In 2024, for the first time in the Polska Press Group’s history, an open and competitive selection process was held for editor-in-chief positions at its regional newspapers. The recruitment process was conducted transparently, with the media outlets kept informed of every stage, the number of applying candidates and the rationale behind final appointments.
ORLEN also extended to Polska Press its existing Human Rights Protection Policy, which has been in place at the ORLEN Group since 2022. The policy provides journalists and other employees with a mechanism to report potential abuses. Additionally, the Company tightened its internal procedures to explicitly prohibit the subsidiaries from engaging in any political initiatives or projects, including from making any financial contributions.
As a result, in December 2024 ORLEN received a favourable assessment from Norges Bank’s Council on Ethics, forming the basis for the final decision of 6 February 2024 to remove the Company from the observation list.
Norges Bank Investment Management oversees the world’s largest sovereign wealth fund, and its recommendations – guided by stringent ethical and investment criteria – may serve as a key reference for investors evaluating corporate conduct.
