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3.4 SUSTAINABLE DEVELOPMENT SYSTEM

AND SOCIAL RESPONSIBILITY

Activities in connection with sustainable development and social responsibility are integrated into all levels of Pošta Slovenije’s operations. As part of the corporate strategy for sustainable development, those activities are part of the Strategic Development Programme of the Pošta Slovenije Group until 2025.

We place customers at the centre of sustainable governance. On this basis, we achieve our goals in the form of a triad: a partnership with employees, a social pillar and an environmental pillar.

Figure 5: Sustainability pillars of the Pošta Slovenije Group

Our sustainability plan defines priority tasks for all three pillars. We work with employees to ensure lifelong learning and training, to improve their health and to ensure safe and high-quality jobs. We participate in socially responsible projects and partnerships, contribute to the communities in which we operate and care for the natural environment, which strives for a circular economy with reduced carbon emissions.

In its operations, the Pošta Slovenije Group focuses on its customers companies and individuals who expect increasingly flexible, prompter and more transparent services at lower prices. We are aware that we must remain one step ahead of our customers, anticipate their needs and wishes, and offer the right solutions in a timely manner. To that end, we continuously introduce new innovative ideas.

Customers want more control over the method, location and time of delivery. By expanding their choices, customers have new possibilities for delivery at their disposal, including self-service collection points that facilitate safe delivery, without time constraints, and sometimes anonymously. We take into account speed, flexibility and affordability when developing various types of services for customers.

We ensure the protection of personal data and the privacy of our customers. We educate them, provide accurate information, and facilitate the use of fair, transparent and useful market information and contractually agreed processes.

The Pošta Slovenije Group is also aware of the importance of personal data, and therefore ensures that the aforementioned data is processed in accordance with the law and appropriately protected.

Customers can call the contact centre for customer assistance and support, and also to resolve complaints. We implement measures to reduce the number of complaints, provide clear information regarding services and offer support in the selection of the right services, as we have established the appropriate systems for supporting and advising customers. We educate and raise the awareness of customers through special communication campaigns on the subjects of social responsibility and sustainable development.

3.4.1 Partnership with employees

Employees are the Pošta Slovenije Group’s most important capital and thus form a strategic pillar of social responsibility and sustainable governance. We pursue the following objectives in the scope of our partnership with employees:

the appropriate management of human resources;

the occupational health and safety of employees;

anti-corruption and human rights; and

corporate citizenship and social engagement.

Partnership with employees

Focus on customers

Social pillar

Environmentalpillar

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Figure 6: Management of our partnership with employees

Number and turnover of employees within the Pošta Slovenije Group

The Pošta Slovenije Group had an average of 7,931 employees during 2020, and a total of 7,917 employees as at 31 December 2020. Of those, 560 were disabled employees. Most of the employees (95.6%) have concluded a permanent employment contract, while 96.8% of employees work full-time.

Table 13: Number of employees within the Pošta Slovenije Group

Pošta Slovenije Group

Average number of employees in 2020

Number of employees (as at 31 December)

2019

2020

Index 2020/2019

1

2

3

4

5=4/3

Pošta Slovenije d.o.o.

5,942

6,005

5,945

99

PS Moj Paket d. o. o.

7

8

6

75

EPPS d. o. o.

53

54

53

98

IPPS d. o. o.

489

489

483

99

PS Logistika d. o. o.

72

72

71

99

APS PLUS d. o. o.

19

12

22

183

Intereuropa Group

1,349

1,356

1,337

99

Total

7,931

7,996

7,917

99

Male employees are prevalent in terms of gender, accounting for 66.7% of total employees.

Number and turnover of employees at Pošta Slovenije

Pošta Slovenije had 5,945 employees as at the last day of 2020, a decrease of 60 employees relative to the last day of 2019. The number of employees was down relative to 2019 in all work areas except for the delivery segment, where the number of employees increased by 71.

A total of 96.8% of the total number of employees at Pošta Slovenije, which is 2.1 percentage points more than in 2019, have concluded a permanent employment contract.

A total of 419 new employees were afforded the opportunity to work in 2020. Of that number, 347 were hired in the delivery segment. Employee turnover was 7.5%, a decrease of 1.5 percentage points on 2019.

The majority of Pošta Slovenije’s employees have a full-time employment contract, while only 2.7% of workers are employed part time, either due to rights arising from disability legislation or parenthood, or to ensure the optimal use of working time.

Due to the nature of the Company’s work, 67% of Pošta Slovenije employees are men, who for the most part perform work in the delivery segment, and other services and work in the logistics segment. The proportion of men was up by 1.4 percentage points relative to 2019. Women perform primarily mail handling work and account for 33% of all employees.

The majority of Pošta Slovenije employees work in the delivery segment, where 2,837 employees were employed as at 31 December 2020, followed by employees who work in the mail handling segment, in the Company’s support services and in other ancillary activities.

Partnership with employees

in accordance with the codeof ethics and two-waycommunication

Education and training

Motivationawage policy

Support for thequality of life,personal andprofessionalgrowth

Solidarityassistance toemployeesin distress

Ensuringoccupationalhealth and safety

Supplementary pension insurance

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Graph 9: The largest number of employees work in the delivery and handling segments.

Pošta Slovenije had an average of 248 disabled employees in 2020. Of those, 128 disabled persons worked part time. The average number of disabled employees was up 6.9% in 2019.

Table 14: Average number of disabled employees at Pošta Slovenije

Working hours

Pošta Slovenije d.o.o.

Average no. of disabled persons

Index 2020/2019

2017

2018

2019

2020

1

2

3

4

5

6 = 5/4

40 hours

97

102

108

120

111.1

30 hours

8

8

10

10

100.0

25 hours

2

2

2

1

50.0

20 hours

99

101

112

117

104.5

Total

206

213

232

248

106.9

Absence of Pošta Slovenije employees

The absence rate was 22.7% in 2020. Types of absence appeared in 2020 that were not seen in the previous year, in particular absence due to child care due to the closure of schools and kindergartens, and the inability to come to work due to the termination of public transport services, absence due to enforced quarantine and furlough work (temporary lay off). The proportion of total absences accounted for by sick leave and annual leave was up relative to 2019.

Wages and performance at Pošta Slovenije

The average gross wage received by a Pošta Slovenije employee was up 1.6% in 2020 relative to 2019.

Table 15: Comparison of average gross wages

Comparative groups

Gross in EUR

Index

2020

2019

2020/2019

1

2

3

4=2/3

Pošta Slovenije

1,628.64

1,603.05

101.6

Republic of Slovenia

1,856.20

1,75.84

105.8

Commercial sector of the Republic of Slovenia

1,689.74

1,617.98

104.4

Transport and warehousing sector

1,565.22

1,566.91

99.9

The average gross wage at Pošta Slovenije was 12.3% lower than the average gross wage per employee in the Republic of Slovenia.

while the average wage of a Pošta Slovenije employee was 3.6% lower than the average wage in the Slovenian commercial sector and 4.1% higher than the average employee wage in the transportation and storage sector.

Pošta Slovenije stimulates employee satisfaction and motivation using various forms of remuneration. In the scope of the annual horizontal promotion in a certain position. 5% of employees have been receiving an additional incentive bonus since October 2020. The remuneration of individual performance of employees, which is normally carried out on a quarterly basis, was not fully implemented due to the changed operating circumstances in 2020. In agreement with the social partners, financial resources were earmarked for other forms of remuneration: for presence at work and for the payment of a one-time bonus for work under extraordinary conditions in the amount of EUR 325 gross per employee. Employees also received a performance bonus in the gross amount of EUR 260 per employee in December 2020.

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Monetary bonuses were paid to key groups of employees for achievements in sales and marketing, and for successful participation in projects.

Cooperation with trade unions and the works council

Pošta Slovenije’s Executive Management devotes particular attention to cooperation with trade unions and the works council. Two trade unions are active at Pošta Slovenije: the Trade Union of Transportation and Communication Workers and the Trade Union of Postal Workers. Cooperation with both bodies takes place in the form of meetings between the Company’s Executive Management and representatives of the representative trade unions, and in the form of regular and extraordinary meetings of the works council. This ensures that employees are continuously informed about the Company’s operations, the most important past and current events at the Company and, of course, future plans. The employer is kept abreast of problems and proposals for improving operations, work conditions and expectations regarding improvements to the wage policy.

Several joint bodies are established within the works council for the purpose of addressing the observations, questions and initiatives of employees from specific areas. The committee for legal certainty controls the implementation of legislation, collective agreements and the employer’s general acts. That committee meets at least once a year to draw up a comprehensive assessment of the state of legal certainty at the Company and proposes relevant measures to improve the situation. Other joint bodies are the occupational health and safety committee, which resolves issues in that area, and the committee for the disabled that resolves the problems of disabled and older workers.

A new agreement on the worker participation in management was concluded in July 2020, and since August 2020 the function of the chair of the works council and of three members of that council is professional.

In May and June 2020 negotiations were conducted with trade unions regarding the regulation of employee rights acquired from agreements concluded in 2019, and on employee remuneration in 2020. A new agreement was concluded in June 2020, which sets out the target values of HR indicators and the obligation to adopt systemic measures if these values are not reached. In October an annex was concluded to the agreement on the allocation of funds for remuneration in 2021 and the retention of rights of horizontal promotion in a position in cases of the reassignment of employees to other positions and change to the model for the remuneration of individual performance and horizontal promotion. Both collective agreements were extended in December to apply until the end of 2021.

Employee training at Pošta Slovenije

Due to the COVID-19 pandemic, there was a significant decline (by 54%) in participants in various forms of functional education and training in 2020. A total of 54,632 hours of training were held, resulting in an average 9.2 hours per employee.

Table 16: Training and education

Functional education and training of employees

2020

2019

Index

1

2

3

4=2/3

Average number of employees

5,942

5,830

10.9

Annual number of employees participating in education and training

2,799

6,102

45.9

Annual number of education and training hours

54,632

100,666

54.3

Average number of education and training hours per employee

9.2

17.3

53.2

Internal training programmes that are primarily essential and mandatory under the law accounted for the largest proportion of all training programmes. The organisation of individual external training programmes courses reduced, while e-training programmes increased due to the COVID-19 pandemic. More than 4,000 participants took part in online training events in 2020. Most online training programmes were conducted by internal lecturers (PMLTF, module 1 and 2, protection of persons and assets), traditional individual external training that were cancelled were replaced by external e-training programmes.

Even at the Intereuropa subsidiary, the measures to prevent the spread of the coronavirus impacted the organisation of training in 2020, with most of the training programmes at the company taking place in the forms of e-learning and online conferences. Out of the more extensive training courses undertaken by the Slovenian Intereuropa Group companies, mention should be made of e-training on information security, which was attended by 83% of employees who use computers in their work, as well as training for 22 managers who obtained skills for effective communication and management by objectives.

From September 2019 until May 2022, Intereuropa will be included in the European Competence Centre project for the development of employees in logistics (KOC Logins). The objective of the project is to develop employee competences, and thus improve their flexibility, employability and effectiveness, and ultimately increase awareness of both employees and employers about the importance of lifelong learning. Intereuropa is participating as a partner in a consortium with 31 other Slovenian companies from the logistics sector. There is also a project office at the company that organises and coordinates training, reports on work and prepares applications for co-financing. A total of 47 training events attended by 93 employees (certain employees attending multiple times) were organised at Intereuropa in 2020 in the scope of the aforementioned project.

Social responsibility to employees

Pošta Slovenije demonstrates its social responsibility to employees by allocating solidarity assistance, whenever individuals find themselves in difficult material and life situations (owing to illness, death in the family, natural disasters, etc.). Solidarity assistance was paid to 130 employees in 2020, in four cases for the death of an immediate family member.

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Supplementary pension insurance within the Pošta Slovenije Group

Since 2002 Pošta Slovenije has paid the monthly premium of all employees who have been employed for one year and who have joined the pension insurance scheme. Pošta Slovenije reached an agreement with both trade unions on the suspension of supplementary pension insurance for the period 1 January 2017 to 31 December 2021. The employees of Pošta Slovenije have the option of joining a collective voluntary supplementary pension insurance scheme via Moja naložba.

Ensuring occupational health and safety and fire safety within the Pošta Slovenije Group

In 2020 the Pošta Slovenije Group strived for the management and regulation of occupational health and safety (OHS) and fire protection (FP) in accordance with all the legal requirements applicable in the Republic of Slovenia, the Company’s internal acts and the objectives outlined in this area. To that end, we were aware of the major significance of incorporating the OHS and FP in the Company’s business policy and in all work processes, and the active involvement of all employees, employee representatives and managerial and executive staff. The key activities, measures and projects relating to OHS and FP in the previous year are indicated below.

Throughout 2020 we carried out a wide selection of activities to prevent the spread of the SARS CoV-2 virus and raise the awareness of our employees on how to act in the event of the COVID-19 disease. Organisational, professional and technical measures were adopted on the basis of legal requirements applicable in the Republic of Slovenia, recommendations from the medical profession (National institute of Public Health, occupational health, transport and sports experts, occupational health clinical institute), guidelines and recommendations from OHS experts (OHS Chamber, Slovenian Office for OHS, etc.), and recommendations from other organisations (CCIS, Association of Employers of Slovenia), etc. We continuously briefed all employees of the measures: through memos, publication of documents on our intranet site, on bulletin boards, in the form of meetings that were convened by the heads of organisational teams, etc.

In order to ensure the health of its employees, Pošta Slovenije organised regular preliminary, periodic and targeted preventive examinations that were attended by 2,194 permanent employees and 394 students in 2020. The Company organised vaccinations against tick-borne meningoencephalitis, which is intended for all employees that are exposed to this disease in their work. A total of 181 persons got their vaccination. Vaccination against the influenza virus was planned in the final two months of 2020 but was not carried out due to the introduction of free vaccination for all insured persons. We drew up a memo for all employees and made a request for employees to undergo individual vaccinations at their selected personal physician.

Training focusing on different areas of OHS and FP was organised in 2020 and was attended by 3,624 employees in total. Of that total, 1,381 employees underwent training that was organised in the traditional sense (live). Last year we began organising remote training that was held via the eCampus online portal. Periodic training courses relating to OHS was held for employees working as postmen (letter carriers), mail delivery persons and parcel delivery persons, and were attended by 2,243 employees in total.

There were a total of 315 workplace injuries in 2020, of which 213 were minor, 56 severe and 46 workplace injuries were the result of COVID-19. The total number of workplace injuries in 2020 increased by 1.3% relative to the previous year. However, if we exclude COVID-related injuries, this figure was down by 13.5% relative to 2019. Falls from mopeds (24%), falls suffered by persons on foot (15%) and other forms of injuries, such as irregular movements, tripping (11%), and collisions with objects (10%) were prevalent among types of workplace injuries. COVID-19-related injuries accounted for 14% of all workplace injuries.

Last year Pošta Slovenije transitioned from the OHSAS 18001 standard to the ISO 45001 standard in terms of its occupational health and safety management system. In May 2020 the certification body Bureau Veritas conducted an external assessment, which we passed successfully and acquired certification of the compliance of our occupational health and safety system with the requirements of the ISO 45001:2018 standard. The implementation of this standard means a further step to improving the systemic management of the entire OHS segment, as compared to OHSAS 18001:2007 it brings the following key changes:

process-oriented approach (comprehensive treatment of interconnected activities, input and output data);

the requirements follow the PDCA model approach (plan-do-check-act);

increased inclusion of interested parties (employees, executive staff, etc.);

the concept of the handling of risks and opportunities is integrated.

The Naprej and the Polet projects were carried out in 2020 in the scope of the ‘Promotion of Occupational Health’ project. Other planned activities were not carried out due to the COVID-19 pandemic.

The purpose of the Naprej project (integrated support for companies in the management and prevention of psychosocial risk factors), which is being co-financed by the European Social Fund and the Ministry of Labour, Family, Social Affairs and Equal Opportunities, and in which Pošta Slovenije is involved as one of the pilot companies, is the reduction and prevention of psychosocial risk factors suffered by employees. Through our inclusion in the project, we are able to take advantage of numerous free measures for maintaining and strengthening the mental health of employees (education in the area of mental health, access by employees to an online portal with interesting materials to raise awareness about mental health, psychological assistance for employees and their immediate families in the form of telephone, personal and electronic counselling, the research and analysis of the state of employees’ mental health, etc.). The possibility of psychological counselling is what the employees need the most in the scope of this project. Through advertising this project among employees, the number of employees that seek assistance has been growing from year to year. The number of users has grown by 272% in 2020 relative to 2019, and by more than 800% compared to 2018. Employees mostly utilise the telephone form of counselling (almost 50% of all users). Due to COVID-19, users also adopted a form of counselling via Skype that is not used frequently. Users are mostly employees (more than 80%), and to a lesser extent family members. Assistance, to a greater extent, is sought by women (57%), and less by men (43%). More than 50% of all users are 45 or older. While in 2018 and 2019 users mostly sought assistance to deal with problems at work, the cause of problems in 2020 mostly included mental pressures and emotional distress (more than 42%), followed by private life problems (more than 30%).

Due to its increasingly ageing labour force, Pošta Slovenije joined the Polet project. The objective of this project is active and healthy ageing in the workplace by introducing a number of different activities to support older employees, i.e. by introducing different measures for healthy and safe work, training courses, practical tools and professional and informative materials.

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Available to employees at all times in 2020 was an external mobbing officer, who employees could call anonymously or contact to initiate the investigation of a case in accordance with the Rules on the Prevention and Elimination of the Effects of Mobbing. The majority of employees turned to that person for advice or to talk, while the mobbing officer most frequently provided guidance to ease the situation and worked with employees’ superiors to find an appropriate solution to resolve mutual relations in the workplace and for the successful continuation of work.

Ensuring occupational health and safety, and fire safety within the Intereuropa Group

Intereuropa also managed and regulated this area last year in accordance with all the legal requirements that apply in the Republic of Slovenia, the company’s internal acts and outlined objectives.

The COVID-19 epidemic had a significant effect on business processes and work environment in 2020. A number of measures and internal instructions were adopted at the company to address the challenges in the new circumstances, which required preventive and responsible action by all employees and consistent compliance with adopted measures. The Government awarded major recognition to Intereuropa, presenting it with a commemorative token for its sacrifices in preventing the spread of the infectious disease (COVID-19).

A total of 365 employees were referred for preliminary, periodic and other specific-purpose medical examinations within the Intereuropa Group, and 196 employees at the parent company.

Flu vaccinations were free-of-charge for all Slovenian citizens in 2020, of which we also notified all employees, urging them to register for the vaccination individually.

A total of 15 employees suffered workplace injuries at the Intereuropa Group level in 2020, and nine at the parent company. When analysing the sources and causes and other factors relating to injuries, it was established that injuries mostly resulted from momentary carelessness during work. All injuries to employees that occurred in 2020 were mild, such as blows from objects, cuts and slips.

We invested a great deal of attention during employee training in teaching correct and healthy work methods, with an emphasis on the risks associated with workplace accidents.

In the area of health promotion in the workplace, Intereuropa’s focus in 2020 was on the implementation of measures to improve mental health, and to prevent respiratory diseases and various forms of cancer. To that end, the following activities were planned: recreational activities in leased halls and fitness centres, mountain hikes and other recreational activities, all with the aim of maintaining and strengthening the health of employees, the raising of awareness about the importance of healthy eating, fresh fruit supplied in the workplace, periodic 15-minute neck and shoulder massages in the workplace, and encouraging active breaks from work. Due to the outbreak of the COVID-19 pandemic, most activities were carried out in a smaller scope.

Communication with employees within the Pošta Slovenije Group

Special attention is given to communication with employees within the Pošta Slovenije Group. We are aware that timely and precise information plays an important role in the adoption of the right decisions, and in the efficient and high-quality performance of work. For this reason, information flows vertically and horizontally within the Pošta Slovenije Group. All employees are included in the communication process, while sector directors and department heads are responsible for the dissemination of relevant information within the Group. In addition to their respective organisational units, they are also responsible for establishing, maintaining and improving effective communication. Together we pursue the objective of planned, professional and consistent communication, both within the controlling company and at subsidiaries, particularly given the nature of the work of specific companies and the Group’s geographical dispersion with remote units throughout Slovenia. To that end, we comply with the principles and guidelines set out in Pošta Slovenije’s internal communication policy and manual.

We provide employees relevant information regarding operations and current developments within the Pošta Slovenije Group through various channels, depending on the content being communicated. Employees are informed about the most important topics, changes in operations and other breakthroughs by the Group via memos that are occasionally accompanied by a motivational message from the Executive Management.

Employees are informed about events at Pošta Slovenije via meetings of the Company’s works council and the Pošta Slovenije Trade Union Conference, where executive staff inform representatives of the aforementioned bodies about operating results, strategic objectives and current events, while employees have the opportunity to pose questions and submit suggestions. Partial assemblies of employees and meetings between executive staff and post office managers, where communication likewise flows in both directions, are organised in the same manner.

Employees receive the traditional Poštni razgledi internal newsletter every quarter. For faster and better communication, we publish the monthly POŠTA zame (Pošta for Me) electronic newsletter, which is intended for all Group employees. Special issues of the electronic newsletter are published when major changes and events occur. We also use leaflets, circulars and brochures to promote individual projects. The integration activities of Pošta Slovenije and Intereuropa are published in ‘POINT novice (news)’, which are intended for the members of Pošta Slovenije and Intereuropa’s work groups and bring information about the major activities that are underway in the integration project.

A significant part of the Pošta Slovenije Group’s internal communication is dedicated to informing employees about instructions, rules, decrees and various general terms and conditions issued by Pošta Slovenije. Such communication is carried out using the aforementioned circulars, Pošta Slovenije’s official newsletter, and through written notifications on bulletin boards and the intranet. Communication with employees also takes place at meetings and within advisory groups, through video conferences, personal interviews, visits by management to post offices and both Mail Sorting and Logistics Centres, partial assemblies of employees and at other meetings.

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Standards of professional ethics

Pošta Slovenije’s employees follow high standards of professional ethics, and perform their tasks conscientiously, fairly and in accordance with the law and internal acts to prevent damage to the Company’s reputation. Special attention is given to identifying and preventing unauthorised conduct, for which the principle of zero tolerance applies. With the aim of the early identification and prevention of unauthorised conduct by employees, the Company implemented in its operations a system for respecting fundamental ethical principles (the principle of good faith and fair dealing, the principle of protecting Pošta Slovenije’s reputation, the principle of appropriate communications, the principle of rejecting conflicts of interest, the principle of the prohibition of competition, the principle of economy, the principle of protecting information and personal data, the principle of legality, the principle of the prohibition of corrupt practices and the unjustified giving and receiving of gifts) that derive from the Company’s values.

Mechanisms for detecting and investigating deviant behaviour

Pošta Slovenije also has the following mechanisms in place for detecting and investigating deviant behaviour: internal supervision and controls when carrying out postal operation processes, internal investigation mechanism by also using integrity testing, polygraphs and a system for the anonymous reporting of irregularities and unlawful acts, and the handling thereof. In the area of the system for the anonymous reporting of irregularities, Pošta Slovenije also issued new rules that govern this area, and extended the application of this system to other companies within the Pošta Slovenije Group.

Prevention of money laundering and terrorist financing (PMLTF)

In accordance with the Prevention of Money Laundering and Terrorist Financing Act (ZPPDFT-1), Pošta Slovenije is obliged to implement measures for the detection and prevention of money laundering and terrorist financing if it provides money transfer services (incoming and outgoing payments) using postal payment orders.

By appointing a prevention of money laundering and terrorist financing officer, Pošta Slovenije is able to consistently perform the tasks and fulfil the obligations that derive from the aforementioned act. Key activities that ensure the effective management of risks in this area include the drafting of a risk assessment, the compilation of a list of indicators for the identification of suspicious customers and transactions, the establishment of a system of internal controls and oversight of the functioning of that system, and the organisation of employee training and education.

Prevention of anti-competitive conduct

Due to the status and scope of its activities, the Pošta Slovenije Group has a major direct and indirect impact on the wider social environment in which it operates. In its operations, the Group pursues the objectives of sustainable development and social responsibility, and improves the reliability and fairness of the Company’s operations. It achieves this through fair competition and the absence of corruption by preventing forms of anti-competitive conduct, and thus prevents the following activities: covertly agreed prices amongst the competition, the manipulation of tendered bids to circumvent competitive bids, sales at prices that would squeeze the products or services of the competition from the market, and the imposition of unfair sanctions against the competition. We support policies and practices that respect property rights and traditional knowledge.

We ensure the legally compliant implementation of public procurement procedures. In accordance with the Integrity and Prevention of Corruption Act (ZIntPK), purchase agreements valued at more than EUR 10 thousand (excluding VAT) include an anti-corruption clause. Before concluding an agreement, we obtain information regarding the participation of natural and legal persons owned by the tenderer, including the participation of silent partners and companies associated with a tenderer. All persons responsible for public procurement, who are bound by the ZIntPK, submit a report on their financial position once a year, by 31 January for the previous year.

The Intereuropa Group fosters a zero tolerance policy toward all forms of corruption. Agreements, both on the purchase and sales side, include an anti-corruption clause regardless of their value. The anti-corruption clause is also included in the Company’s general terms and conditions of operations. We enter business relationships with verified business partners. Intereuropa implemented the good business practice that is defined by the Integrity and Prevention of Corruption Act (ZIntPK) in its internal acts that bind all employees.

Diversity policy of the Pošta Slovenije Group

All candidates for hire and all other employees are treated according to the principles of equality, proportionality and fairness on the basis of individual characteristics and criteria, placing emphasis on respecting human rights and freedoms. We are committed to equal opportunity in our hiring practices and career development, and to a balanced structure of employees in terms of gender. According to the nature of its activities, the gender breakdown of the Pošta Slovenije Group’s employees comprises 66.7% of men and 33.3% of women.

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Graph 10: Breakdown of employees by gender within the Pošta Slovenije Group

There are 25 men and 15 women (translating to 37.5%) in senior management positions (e.g. the Executive Management, directors and their deputies, and advisors to and authorised representatives of the Executive Management). The proportion of women is higher in middle-management positions (supervisors and post office managers), where 79.6% of managers are women.

Employee holidays

Pošta Slovenije’s holiday apartments, which are intended as a getaway for the Pošta Slovenije Group’s employees, are located in Bled, Kranjska Gora, Gozd Martuljek, Bovec, Izola, Bernardin (Portorož) and Piran. Employees could also spend their holidays at Intereuropa’s holiday units at the following locations: Kranjska Gora, Rogla, Podčetrtek (Terme Olimia), Čatež (Terme Čatež), Izola, Červar and Pag.

We made available the capacities of both companies to the employees of both companies and also centralised the management of holiday capacities of the Pošta Slovenije Group, thereby benefiting from the synergistic effects of the POINT project.

Holiday capacities were utilised in all the months of 2020, except in April, the second half of October, November and December 2020 due to the measures connected with the declared COVID-19 pandemic. The occupancy of the holiday units was thus slightly lower relative to 2019, amounting to 1,626 days in 2020. Employees were also able to utilise their holiday vouchers.

Inclusion in professional organisations

Through their knowledge and links to various economic and social areas, employees contribute to the strengthening of business networks, and promote new knowledge, competitive advantages and the competitiveness of the economic environment. The Pošta Slovenije Group is therefore a member of numerous organisations in Slovenia and abroad, as follows: Managers’ Association, Female Managers Association, Association of Employers of Slovenia (ZDS), Association of Works Councils of Slovenian Companies, Slovenian Directors’ Association, Association of Secretaries and Office Assistants of Slovenia, AmCham Slovenija (American Chamber of Commerce in Slovenia), Slovenian Marketing Association, Slovenian Chamber of Engineers (IZS), Chamber of Architecture and Spatial Planning of Slovenia (ZAPS), Institute for Identification and the Electronic Exchange of Information (GS1), PostEurop, Euromed, Public Relations Society of Slovenia, Institute for the Development of Social Responsibility (IRDO), Chamber of Commerce and Industry of Slovenia and its branch associations and regional chambers (Transport Association, Association of Informatics and Telecommunications and Chamber of Small Business and Trade), Chamber of Agriculture and Forestry of Slovenia, Slovenian Section of the Institute of Internal Auditors, Association for the Auditing and Control of Information Systems, Slovenian Project Management Association, University of Maribor, Law Faculty, Institute for Labour Relations and Social Security, Commercial Law Institute (IGP), European Institute for Compliance and Ethics (EICE), Slovenian Institute for Corporate Security, Chamber for the Development of Slovenian Private Security, Slovenian Association for Risk and Insurance (SI.RISK), Purchasing Association of Slovenia, Slovenian-Croatian Business Leaders Club, Slovenian Business Club in Serbia, Slovenian Logistics Association, Green Network for a Green Slovenia, Association of Secretaries and Office Assistants of Slovenia, Chamber of Commerce and Industry of Štajerska, Slovenian Association for Electronic Identification and Electronic Trust Services (ZEIDES), and Universal Postal Union, International Post Corporation (EPG agreement, Stars, REIMS agreement, ERS agreement, PRIME and eCIP).

Measurement of the organisational climate (Zlata nit) in the Intereuropa Group

The organisational climate is measured every two years at Slovenian and Croatian Group companies in the scope of the Zlata nit (Golden Thread) study. On the basis of the results of the most recent measurement in 2019, activities to improve the results relating to remuneration, which alongside communication was identified as an area requiring improvements, were carried out in 2020. The Intereuropa Group was recognised as a ‘senior-friendly company’ in the competition that was organised under the auspices of the Golden Thread project. This recognition is awarded to companies that implement measures and show concern for personal growth and the development of employees above 45 years of age.

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3.4.2 Social pillar of sustainable development

We understand socially responsible operations as responsible management with a focus on areas that are important for the sustainable development of the Pošta Slovenije Group and society as a whole, and on compliance.

We comply with the following socially responsible standards:

We comply with valid laws, ethical standards and international norms.

We act in a transparent manner.

We promote in-depth and continuous dialogue with stakeholders with the aim of meeting their expectations.

We ensure a high level of security of people, goods and information.

We strive to ensure that our suppliers meet the same standards of social responsibility and sustainable development that we meet.

We strive to preserve the cultural heritage of the postal activity in Slovenia.

We build national and international partnerships for sustainable development.

The Pošta Slovenije Group’s performance is linked to efforts to develop the immediate and wider social environment. Our aim is to foster a friendly environment in which we live and work, in order to raise the quality of life of our employees and the wider community. The quality of life can be improved by identifying changes and needs in society, and through the development of new services. In accordance with our strategy, we demonstrate our concern for the strengthening of social networks, the development of local communities, and cultural and cultural-technical heritage as they relate to our operations.

The Pošta Slovenije Group strives for correct and balanced cooperation with all key interest groups. Our objectives to that end are continuous, systematic and focused communication, objective reporting about the Group’s operations, and the establishment and maintenance of mutual trust and support from all key interest groups, which is the basis for achieving and enhancing the Company’s overall image. The communication function is performed professionally, and in strategically planned and socially responsible manner. Our communication follows the principle of open, proactive, reciprocal and strategically planned communication, while the method of communication and messages are professionally adapted to individual interest groups. We follow the highest standards of communication to that end.

Figure 7: Strengthening the social environment

Support for socially responsible projects

The post office and postal services have always played an important part in the quality of people’s lives. Through our proactive approach and the responsible identification of changes and needs in society, we were a proud stakeholder in numerous success stories in the area of social responsibility again in 2020. During the COVID-9 pandemic, we demonstrated many times that we know how to cooperate and contribute, as best as we can, to the normalisation of the situation as soon as possible, whether by donating equipment, providing free transportation of protective equipment, providing IT support or participating in different charitable projects.

During spring, directly after receiving a sufficient amount of face masks for our employees we donated protective masks to the University Medical Centre in Maribor, the University Medical Centre in Ljubljana, 10,000 masks to each of them, 15,000 masks to the Slovenian Civil Protection Administration and 7,000 masks to the Maribor Municipality. Masks and hand sanitisers were also donated to all contracted post offices. Intereuropa ran the entire logistics transportation operation for the needs of the national commodity reserve from abroad, also helping Arnes provide remote learning for 300,000 school children during the spring pandemic wave. Intereuropa RTC d. d., Sarajevo also donated used computers and supported Telekom BiH’s campaign that enabled free internet access to children who were forced to take lessons from home, Intereuropa d. d. enabled the Maribor University Medical Centre to operate under difficult circumstances and donated the lease of a container free-of-charge. The subsidiary Interagent, d. o. o. supported the activity of the Slovenian Friends of Youth Association and the VID Charitable Institute from Kranj.

Strengthening thesocial environment

Development of local communitiesand strengthening of social networks

Support of cultural,sporting, health-related,humanitarian andother sociallyresponsible projects

Revitalisation ofcultural-technicalheritage

Revitalisation of cultural-technical heritage

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In 2020 we provided EUR 200,000 in support of various charitable projects, also activities carried out by the following entities: City of Maribor, the National Education Institute, the University Medical Centre in Ljubljana and the University Medical Centre in Maribor, the Slovenian Red Cross, the Slovenian Friends of Youth Association, the Ljubljana Moste–Polje chapter of the Friends of Youth Association, SIBAHE the Slovenian Food Bank, the Viljem Julijan Society and the Anima Society.

With our dedicated employees we organised the ‘Poštar Pavli polni šolske torbe’ (Pavli the Postman Fills School Bags) for the eighth consecutive year, which takes place in collaboration with the Slovenian Friends of Youth Association, providing an easier start to the school year to more than 3,200 children. During the campaign we collected ca. 32,500 school supplies and raised over EUR 11,000 in funds. The Intereuropa Group also implements its social responsibility via the support it provides to various educational institutions in the local and broader environment. To that end, it provided 11 secondary school and tertiary level students the opportunity to perform their mandatory internships.

Pošta Slovenije connects people through its activities, both domestically and in the international market. Conflicts, the climate crisis and the COVID-19 pandemic have jeopardised the 10-year development in the health of women and children. So, in the year when the whole world battled the coronavirus threat, by organising a series of sales exhibitions, as best as we could, we wanted to support the UNICEF campaign of raising funds for the vaccination of children against six infectious diseases in developing countries.

In 2020, through collecting donations, we saved 508 children. By purchasing a rag doll, which symbolises a child from a developing country, each person contributes EUR 20, which suffices for the vaccination of one child against six infectious diseases. Rag dolls can now be adopted at 35 post offices across Slovenia.

We build on our basic mission by supporting humanitarian, educational, sporting, cultural and other projects, as well as activities in the areas of healthcare, education, research, etc. We can accomplish more together. Thus giving back to the community.

Cultural-artistic, sports and other associations

Culture and art are the mirror of every nation, and the same can be said of the cultural and artistic creativity of individual companies and their employees, as this can enhance a company’s reputation as well as improving work and interpersonal relations between employees.

The renowned Pošta Maribor Cultural and Arts Society, established in 1948, includes the Pošta Maribor CAS Woodwind Orchestra, a male choir, an art group, an amateur music school and the Štajerska veterans’ band. The composition of members is highly diverse, with postal workers and other lovers of the arts brought together by artistic creativity. Both the Pošta Maribor woodwind orchestra and the male choir have received several prestigious international awards. For more than 40 years, the amateur music school has taught and developed numerous young talents, some of whom later joined the woodwind orchestra, and thus contributed a great deal to musical culture. The Pošta Slovenije Group thus offers its employees and their family members the option of joining and actively participating in this society, and attending the concerts and other social events it organises. This enriches the cultural life of the Company’s employees and anyone in any way linked to the aforementioned society.

Employees are also active in sports and culture in the Poštar Ljubljana Bowling Club, the Poštar Celje Sport and Culture Association, the Poštar Maribor Sport and Recreation Association, and in three climbing associations sponsored by Pošta Slovenije and Telekom, in Celje, Ljubljana and Maribor. The latter organises numerous excursions, hikes and events, and is responsible for the maintenance of hiking paths and for the Poštarski Dom pod Plešivcem mountain hut and Poštarski Dom na Vršiču mountain hut.

Retired employees are linked by Pošta Slovenije’s active retiree clubs across Slovenia.

Philatelic societies and the Philatelic Association of Slovenia

While the issue of postage stamps is one of Pošta Slovenije’s most gratifying missions, supporting such events is likewise one of our most gratifying tasks, which we perform with great pleasure.

The pandemic certainly had a significant effect on the operation of our umbrella organisation, the Philatelic Association of Slovenia and philatelic societies, to which we tried to adapt as best as possible. We organised numerous professional lectures remotely via the ZOOM video-conference system, as well as taking part in many international events and training courses in that manner.

Together with the philatelic societies, we nevertheless supported numerous promotions of postage stamps, philatelic exhibitions and other philatelic events in 2020:

during the winter holidays we organised a number of children’s workshops in cooperation with the Slovenian Friends of Youth Association;

we supplied and assisted philatelic school club activities;

we prepared a project for the collection of postcards from all places along the Savinja, whose objective is to also include other primary schools in the Savinja Valley, homes for the elderly, retiree associations and the mayors of individual municipalities;

to coincide with the issue of stamps from the Flora series, we prepared a presentation of these stamps at the Botanical Garden in Ljubljana;

We commemorated the 75th anniversary of issuing postage stamps for the Slovene Littoral with a presentation of stamps in Koper.

Numerous domestic and foreign philatelic exhibitions and events that we intended to take part in were pushed back to 2021. Nevertheless, we organised a very popular exhibition ‘Memories of 1920’ to commemorate the 100th anniversaries of the burning of the Narodni Dom in Trieste, the Carinthian plebiscite and the signing of the Treaty of Rapallo, which was held at the Gorenja vas cultural centre. We also co-organised a philatelic exhibition to mark the centenary of the Carinthian plebiscite in Klagenfurt and prepared the exhibition ‘Slovenian Literature on Stamps’.

The issue of postage stamps certainly remains one of the most gratifying missions of Pošta Slovenije. Therefore, we believe that we will revive such events in 2021. Postage stamps not only bring together collectors of postage stamps but also various generations, nations and countries.

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Post Office and Telecommunications Museum

The museum activity was also marked by the COVID-19 pandemic in 2020. The Post Office and Telecommunications Museum adapted to these circumstances and addressed its visitors also via social networks and the internet.

To commemorate the centenary of the Carinthian plebiscite, within our permanent exhibition ‘History of the Postal Service’ we presented a valuable collection of commemorative stamps from the Chainbreakers series overprinted with the KGCA 1920 inscription. We added the possibility of guided audio tours of the museum in English.

To mark the 30th anniversary of TOM (helpline for children and youth in distress), with the help from the Slovenian Friends of Youth Association we set up a temporary exhibition ‘The answer is conversation’.

The museum maintains a rich educational programme that is supplemented every year. The changing conditions also affected our work. The museum was robbed of its most loyal visitors practically overnight during the pandemic, as schools and already announced groups cancelled their visits. We reacted swiftly and adapted and upgraded our content. We prepared online teaching materials for primary school teachers to hold a remote technical day event for three different age groups. The existing materials (virtual tour of the museum, recorded audio guides, teaching tool Visiting Museum, e-books, sounds and a digitalised children’s guide) were adapted to the syllabus and published as a complete unit on 27 November in the scope of the project ‘Night has its power’ online and on social networks.

Also on display at the Post Office and Telecommunications Museum were the following: the permanent collection ‘History of the Postal Service and the History of Telecommunications’, the exhibition ‘Telecommunications: Past, Present and Future’, the history of the Polhov Gradec manor house and the local museum, and the Dotakni se! (Touch!) museum trail intended for blind and vision-impaired visitors. The museum was closed to visitors for six months in 2020 due to the measures imposed to prevent the spread of COVID-19 pandemic. The museum recorded 2,800 visitors in 2020, which is 53.3% less than in the year prior to the pandemic.

3.4.3 Environmental pillar of sustainable development

Sustainability is an important element of Pošta Slovenije Group’s corporate strategy

The Pošta Slovenije Group strives to diligently manage its environmental footprint in accordance with the Pošta Slovenije Group’s Energy Efficiency Strategy until 2025, which is included in the Strategic Development Programme until 2025 as one of the key corporate strategic goals for sustainable development.

The Pošta Slovenije Group is widely regarded as a socially and environmentally responsible company with a well-developed organisational culture.

Figure 8: Management of the environmental footprint

The Energy Efficiency Strategy defines the guidelines, measures and financial commitments of the Pošta Slovenije Group with regard to the management of the energy efficiency system (real estate, equipment, vehicle fleet, etc.), in terms of sustainable development goals.

The energy efficiency strategy follows guidelines from state and international initiatives, such as the National Energy and Climate Plan of the Republic of Slovenia, UN Global Compact’s sustainable development goals (a global UN agreement an initiative to link companies, work and civil society regarding ethical principles and standards), the European Green deal, which was adopted by the European Commission in December 2019, and the Delivering a Sustainable European Post initiative of the Association of European Public Postal Operators (PostEurop).

Pošta Slovenije is very active in PostEurop. In the scope of Corporate Social Responsibility it presides over the Environment Working Group, as well as being actively involved in the Green Mobility Forum. A total of 20 finalists were selected among 67 business practices that applied for the PostEurop’s Coups de Coeur competition in 2020. Pošta Slovenije Group’s project ‘Energy Efficiency and

Management of theenvironmental footprint

Renewableenergy sources

Efficient managementof energy inconnection withcomprehensive postalservices

Green logistics

Management of resources and waste

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Sustainable Development Strategy’ was among them in the field of Environment. In June and November 2020 we organised virtual meetings of the Environment Working Group.

In the scope of the Green Mobility Forum we presented our experience in introducing electric vehicles to Pošta Slovenije’s vehicle fleet, the challenges that we faced in this process and the vehicle fleet electrification strategy until 2025.

In 2020 the Universal Postal Union ranked the Pošta Slovenije Group in the first category of member countries that through environmental management measures reduces adverse effects on the environment and reports thereon accordingly.

The implementation of a circular economy (the management of material flows) and the efficient management of energy (and thus the reduction of our carbon footprint), including the use of renewable energy sources, are the key pillars of the Pošta Slovenije Group’s environmental management activities.

Energy efficiency within the Pošta Slovenije Group

Awareness of the limits of our natural resources and protecting the environment against fossil fuel emissions have long been a focus of serious attention for Pošta Slovenije. Pošta Slovenije sees reducing the impact on the environment through increased energy efficiency as part of our social responsibility. As a commercial enterprise, Pošta Slovenije strives for efficient operations and cost control, while adhering to the demands of environmental protection and the wider social environment. That is why we began to put in place an energy management system and already in 2018 gained the ISO 50001 international standard, which is certified each year by an accredited external institution.

Waste management was carried out in 2020 in accordance with the law and the guidelines set out in the Pošta Slovenije Group’s waste management plan, which defines the appropriate procedures for responsible waste management. Waste turned over to authorised companies and for which we received records totalled 2,102 tonnes, broken down as follows: 74 tonnes of plastic packaging (packaging foil), 294 tonnes of paper and cardboard packaging, 286 tonnes of wood packaging (waste pallets), all of which were turned over to the authorised company, and 923 tonnes of waste paper that we sold on the market.

Sustainable vehicle fleet

In keeping with our socially responsible approach, Pošta Slovenije has been adding environmentally friendly vehicles to its vehicle fleet for a number of years now. Its vehicle fleet now comprises more than 1,300 vehicles and 2,000 various bicycles, light three-wheeled and four-wheeled vehicles, with which we do around 36 million kilometres a year and for which we consume 3.5 million litres of fuel.

In accordance with the Pošta Slovenije Group’s energy efficiency strategy, we set a target for ourselves to increase the proportion of electric vehicles from 4% in 2018 to 46% by 2025.

The number of electric delivery vehicles increased to 267 in 2020, which amounts to 105 vehicles more than in 2019. The proportion of electric vehicles in our fleet increased from 4.9% in 2019 to 7.7% in 2020.

Figure 9: Proportion of electric vehicles in our vehicle fleet

A significant number of light two-track electric vehicles is being added to the two-wheeled vehicle (bicycle) segment, which already includes electric bicycles and electric scooters. Light electric vehicles (ULDV) will mainly replace classic two-wheeled motorcycles, primarily to increase the amount of postal items an employee can carry in the field. This helps us decrease the cost of re-loading (depot deliveries, with the mail carrier returning to the post office several times). This will also save plenty of time with deliveries. With our purchase of ULDVs we adhere to the Company’s sustainable policy, the reduction of greenhouse gas emissions and costs of the vehicle fleet, and the resulting introduction of electric-powered transportation vehicles. We hope to increase the number of such vehicles for letter deliveries, especially in large city centres where the authorities want to ban fossil fuel vehicle deliveries. According to the demographic situation and the forecasts regarding employees and the labour market that is ageing, the proportion of employees with work limitations and proportion of disabled workers is increasing. There will be less injuries with the introduction of these vehicles. The group of workers with various work limitations will be able to perform work more efficiently and safely, also

Proportion of electric vehicles

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Investments and impact of energy efficiency management

As part of energy efficiency efforts, 96 projects were carried out between 2013 and 2020, six of them in 2020.

Relative to 2019, the costs of energy consumption in buildings, the fuel costs of the vehicle fleet, the costs of water and heating oil consumption reduced by EUR 0.6 million in total in 2020.

Energy consumption decreased despite an increase in scope of work and the number of parcels processed, an increase in energy consumption in data centres due to the expansion of centres, and an increase in energy consumption at electric vehicle charging stations. Despite the increased energy consumption, by introducing energy efficient measures we managed to reduce energy consumption by replacing conventional lighting with LED lighting equipment, reducing the connection power for heating, replacing heating with extra-light heating oil with alternative sources of heating using heat pumps, target training of employees on efficient and rational use of energy, rationalisation of cooling and heating, the CNS central control system and energy renovation of buildings. Even in terms of the vehicle fleet, by introducing electric vehicles we cut fuel costs and lowered consumption also due to the measures imposed during the COVID-19 pandemic and work from home.

Notwithstanding the fact that the vehicle fleet is continuously expanding and fuel prices fluctuate constantly, the fuel costs for individual types of vehicles have been falling continuously since 2014 (or from 2015 for freight vehicles).

The effects of implemented projects paint a favourable picture in terms of costs, and also on the revenue side with the start-up of cogeneration devices and the production of electricity, as we generated EUR 162 thousand in revenues from the latter in 2020.

Pošta Slovenije earmarked EUR 1.1 million for investments in energy efficiency projects in 2020. The first solar power plant was built at the Celje transshipment hub. Electric vehicles were purchased and additional charging stations set up for e-mobility needs. Inefficient heating systems were replaced with heat pumps in a number of buildings, outdated air-conditioning units were replaced with new energy efficient units, and the lighting was also upgraded by transitioning to LED lighting technology.

Responsibility to the environment and energy efficiency in the Intereuropa Group

The Intereuropa Group takes into account prescribed legal norms and follows the guidelines set out in the Energy Act and in European environmental guidelines. Energy efficiency and a responsible approach to the environment are integral parts of the Group’s work processes and business decisions. The Intereuropa Group takes into account prescribed legal norms and follows the guidelines set out in the Energy Act and in European environmental guidelines in its efforts to reduce hazardous emissions into the environment, limit the loss of energy, and separate and recycle waste. The Intereuropa Group ensures the energy efficiency of buildings and devices, the appropriate management of waste, the compliant handling of hazardous cargoes, acknowledging measures to reduce light pollution and the monitoring of waste water.

The Intereuropa Group monitors the indicators that can be used to systemically monitor the results of adopted policies at the level of individual Group companies, and only for certain elements of energy efficiency and specific impacts on the environment.

The transport activity is a major source of environmental pollution. One of the key criteria in the selection of road transport service providers is thus the number and proportion of a subcontractor’s vehicles with environmentally friendly motors. Old forklifts are being replaced with more modern and energy efficient models, taking into account environmental impacts.

The Intereuropa Group is also directly reducing negative impacts on the environment in other business processes by reducing paper administration, through various energy-saving measures in warehouses and commercial buildings, and by raising the awareness of its employees about the importance of their contribution to maintaining a healthy environment.

The level of risks associated with inappropriate waste management and environmental pollution is assessed as low within the Intereuropa Group. Exposure to those risks is controlled and mitigated through the inclusion of companies in national waste management schemes, through the implementation of activities in the areas of energy efficiency and environmental self-awareness, and through the implementation of waste and energy management plans at individual companies.

The Intereuropa Group will continue to implement energy efficiency measures, and update and upgrade existing environmental management rules. It will follow a policy of gradually replacing old forklifts with models that are more technologically and energy efficient, install new and replace existing cooling and heating systems, purchase more efficient lighting and make other investments in order to reduce energy costs, increase the productivity of work equipment and improve work conditions.

In addition to these investments, an energy review of buildings will be conducted in 2021 in accordance with the provisions of the Energy Act.