Less for sponsorship and social causes. WIG20 companies reduce expenses

Last year, the expenditures of listed companies from WIG20 for the purposes specified in point 1.5 of the Good Practices of Companies Listed on the WSE (broadly understood sponsoring) decreased significantly. However, there are major problems with precisely determining the scale of this decrease.

Firstly, the companies themselves often have a problem with identifying them and are unable to answer how much they amounted to. Secondly, issuers indicate difficulties related to the interpretation of point 1.5 of good practices, and thus with the precise definition of expenses related to supporting culture, sports, charities, media, social organizations, trade unions, etc.

This last abbreviation is so capacious that it may just as well cover many new types of expenses as none at all. Another issue concerns the lack of clear information as to whether the costs incurred for the purposes specified in point 1.5 of good practices apply only to the parent company or to the entire capital group.

The biggest spenders: Orlen, KGHM and PKO BP

Last year, Orlen again allocated the largest amount of money for broadly understood sponsorship. The parent company spent PLN 376.6 million on this purpose, which was 2.5 percent less than in 2023. "The company changed its approach to conducting sponsorship activities, giving up some cooperation in favor of strengthening activities in many new locations in Poland and supporting sports associations. In 2024, 180 new sponsorship agreements were signed, while 105 agreements from the previous year were continued," informs the Orlen press team. It adds that the effective use of the budget resulted in a record value of the so-called AVE (Advertising Value Equivalent), which amounted to PLN 1.44 billion last year.

The company admits that one of the most important areas of its sponsorship activities is sports. In connection with this, it continued cooperation with leading Polish sports federations, supporting key disciplines such as athletics, football, volleyball, motor sports and winter sports. At the same time, the company invested in projects in the area of ​​​​universal sports, encouraging children and youth to an active lifestyle through programs, tournaments, scholarship programs and local events. In addition, it increased its involvement in culture and social initiatives. This year, Orlen will spend less money on sponsorship activities than in 2024.

KGHM wants to maintain a similar level of expenditure. Last year, it amounted to PLN 102 million. However, compared to 2023, it decreased by 27.7%. This is a consequence of limiting support for cultural and sports initiatives, as well as projects implemented by the KGHM Polska Miedź Foundation, which in turn was a result of audits. The Group spent the most on supporting the activities of Zagłębie Lubin (football club) and MKS Zagłębie Lubin (handball club). It will be similar this year.

Who is tightening their belt on sponsorship spending?

PKO BP was probably at the bottom of the podium of the stock exchanges that spent the most on sponsoring. In 2024, its group spent PLN 57.5 million on six goals literally listed in point 1.5 of good practices (culture, sports, media, social organizations, trade unions, charities). However, if we add the "etc." category to this, these expenses amount to PLN 70.7 million. The group supported sports and charity activities to the greatest extent. In the first area, the most money was spent on supporting Polish football, focusing on PKO BP Ekstraklasa and the "PKO Biegajjmy razem" program promoting this simplest form of movement. In turn, in the field of charity, the most funds were donated to support flood areas and people affected by flooding. This year, the group plans to increase its expenses.

The Santander Group spent slightly more on sponsorship last year. The increase occurred in two areas: culture and conferences and industry events. This year, the company assumes that expenses will be maintained at a level comparable to 2024.