PGE POLSKA GRUPA ENERGETYCZNA S.A. Sprawozdanie niefinansowe z działalności PGE Polskiej Grupy Energetycznej SA i Grupy Kapitałowej PGE za 2021 rok
NON-FINANCIAL REPORT
On activities of PGE Polska Grupa Energetyczna SA and PGE Capital Group for year 2021
ended December 31, 2021
TABLE OF CONTENTS
LETTER OF THE PRESIDENT OF THE MANAGEMENT BOARD OF PGE POLSKA GRUPA ENERGETYCZNA SA .... 3
The strategy of the PGE Capital Group until 2030 with an outlook until 2050 ................................. 9
PGE Group activities in terms of the EU Environmental Taxonomy .............................................. 14
2. ENVIRONMENTAL ................................................................................................................. 19
Climate awareness ............................................................................................................... 19
PGE Group's carbon footprint ................................................................................................ 24
Environmental protection process management ....................................................................... 27
Concern for air quality .......................................................................................................... 28
A responsible approach to water resources management .......................................................... 30
Circular Economy ................................................................................................................. 35
Waste ................................................................................................................................ 39
Land rehabilitation ............................................................................................................... 41
Biodiversity ......................................................................................................................... 44
3. SOCIAL .............................................................................................................................. 50
Just transition ..................................................................................................................... 50
Dialogue with stakeholders ................................................................................................... 53
Employees .......................................................................................................................... 59
Cooperation with contractors ................................................................................................. 70
Customers .......................................................................................................................... 73
Community involvement ....................................................................................................... 79
4. GOVERNANCE ..................................................................................................................... 87
Corporate governance .......................................................................................................... 87
Approach to managing ESG issues ......................................................................................... 91
Compliance ......................................................................................................................... 92
Anti-corruption .................................................................................................................... 98
Improving the process of avoiding conflicts of interest .............................................................. 99
Information security management ........................................................................................ 101
ICT security ....................................................................................................................... 101
Risk management ............................................................................................................... 102
4.8.1 Climate risks ......................................................................................................................... 105
4.8.2 Identification of ESG risks ........................................................................................................... 106
5.
Indicators and tables ........................................................................................................... 118
GRI content index and Global Compact principles ................................................................... 118
Significant indices regarding the PGE Capital Group and the company PGE SA ............................ 122
Research and development projects in the field of environmental protection .............................. 149
Approval of the non-financial information statement ............................................................... 153
Glossary of industry terms ................................................................................................... 154
Contact ............................................................................................................................. 157
LETTER OF THE PRESIDENT OF THE MANAGEMENT BOARD OF PGE POLSKA GRUPA ENERGETYCZNA SA
| GRI 102-14 | GC-7 | GC-8 | GC-9 |
Ladies and gentlemen,
2021 was a year in which we were actively turning strategy into action. Our commitment to being a leader in sustainable energy transition is manifested in the non-financial dimension of the Group's operations, focusing on the positive impact of our activities on the surroundings.
In the social area, we place particular emphasis on the transition of coal regions so as to provide new prospects for our employees and other residents there. The measures we have initiated and the investments in progress in the Bełchatów and Turoszów regions are an indispensable part of just transition and are supportive of the
transition of the entire Polish energy industry.
In parallel to the progress being made in investments aimed at decarbonising the Group, we are striving to raise climate awareness in order to effectively work on reducing greenhouse gas emissions and building an organisation that is resilient to change. Last year, we demonstrated this primarily by implementing a carbon footprint calculator covering all three scopes, while also initiating work on developing a sector-wide framework for carbon footprint calculations. We also decided to begin reporting under the Carbon Disclosure Project and we will continue to actively and increasingly comply with recognised reporting standards.
Effective management in the non-financial area of a company's operations must be ensured by the principles of corporate governance. Toward the end of last year, PGE's Management Board appointed the Sustainability Committee and the Management Board Proxy for ESG, which guarantees consistent development in the ESG area and the setting of national standards in this respect. This is one of our key challenges for 2022, and we are determined to get it done.
I invite you to read our report, which is structures in alignment with the ESG concept, keeping in mind the expectations of our stakeholders.
Wojciech Dąbrowski
President of the Management Board PGE Polska Grupa Energetyczna SA
Our approach to reporting
| GRI 102-46 |
The report on non-financial information of PGE Polska Grupa Energetyczna S.A. and PGE Group for 2021 is prepared in accordance with the requirements of the amended Accounting Act, implementing Directive 2014/95/EU into Polish law. The report covers non-financial information for the period from January 1 to December 31, 2021 and includes consolidated data for PGE Group and its parent undertaking - PGE Polska Grupa Energetyczna S.A. As at December 31, 2021, PGE Group comprised 83 companies in which PGE Polska Grupa Energetyczna S.A. directly or indirectly held over 50% of share capital. The non-financial report covers 37 companies which reported having employees.
The chapters of the report in the narrative section are divided according to the ESG structure (E - environment, S - social, G - governance). This section includes references to indicators in line with GRI standards. The non-financial report for 2021 includes 80 GRI Standards indicators, which is 35% more than in 2020, along with the company's own indicators. The numerical indicators are presented at the end of the report. The indicators are broken down into the following areas: environmental, employee-related, social, human rights and anti-corruption.
The non-financial report of PGE Polska Grupa Energetyczna and PGE Group incorporates selected indicators of the Global Reporting Initiative (GRI) reporting standard in its 2016 version, unless 2018 is indicated in the table. The report also references the 10 principles of the UN Global Compact.
Aside from selecting the most relevant topics from the point of view of both the company and its environment, the authors of the report, following internal consultations, also selected indicators that most closely reflect the specific nature of PGE Group's activities.
Key new elements in the non-financial report for 2021:
recognition of the EU environmental taxonomy,
PGE Group's carbon footprint in three scopes,
ESG area management,
management of the Circular Economy,
approach to climate risk management,
approach to anti-corruption,
approach to managing conflicts of interest.
1. Overview of activities of PGE Group
The PGE Capital Group ("PGE Group") is the largest energy group in Poland. It generates approximately 44 percent of Poland's electricity and approximately 20 percent of the country's district heat, and its electricity distribution area covers about 40 percent of the country's territory. The PGE Group's parent company is PGE
Polska Grupa Energetyczna SA ("PGE SA").
Business model
| GRI 102-1 | GRI 102-2 | GRI 102-7 | GRI 201-1 |
The PGE Group operates across the entire value chain: it produces electricity and heat in both conventional and renewable power plants and CHP plants, and then supplies and sells them to customers across Poland, both households and businesses, institutions and local governments. In 2021, the PGE Group continued the process of integrating the management area of Combustion By-products (CBPs) through setting up a new segment: Circular Economy. The utilization of CBPs allows PGE to reduce the extraction of natural resources, limit its impact on the environment and reduce CO2 emissions. In this way, the PGE Group implements measures aimed at making the energy sector waste-free, in line with the idea of a circular economy oriented towards environment protection.
Fig. Key data of the PGE Capital Group for 2021
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PGE - Polska Grupa Energetyczna SA published this content on 16 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 April 2022 14:03:03 UTC.
