The current Group Strategy does not set out explicit CO₂ reduction targets for individual emission scopes.
PGE Capital Group (PGE CG) plans to define such targets during the strategy update process in 2025. The reduction targets adopted by PGE CG in the document PGE Group Strategy until 2030 include the Group’s climate neutrality objective for 2050. PGE CG’s climate-related targets have been established with consideration of the broader context of sustainable development, based on European Union plans and regulations.
The main lever of decarbonisation in achieving climate neutrality for PGE CG will be increasing the share of RES in the Group’s generation portfolio, as part of the organisation’s operational objectives:
- increasing the share of renewable energy in the generation portfolio by 50% by 2030:
- more than 70% share of zero- and low-emission sources in heat production by 2030, understood as sources with significantly reduced emissions compared to existing coal-based units.
Progress in the implementation of individual targets is monitored by the units responsible and expressed as a percentage. As at the date of this report, the company is in the process of updating its Strategy, including strategic goals and target values of performance indicators, which will therefore be subject to change. A more detailed description of measures and monitoring methods will be presented in the next report.
Stakeholder opinions and expectations, collected inter alia during dialogue sessions or through direct input from shareholders, were analysed as part of the process of setting climate-related targets for PGE CG.
PGE CG has not used climate scenarios directly referring to limiting global warming to 1.5°C in defining its climate targets.
The direction of CO₂ emissions reduction and the increase in RES share has been determined based on PGE CG’s long-term market assumptions, approved annually by the Management Board through a resolution, in accordance with the Procedure for Developing Macroeconomic and Market Assumptions. Using the best available knowledge regarding the potential development of the energy sector, based on European and national-level documents, as well as reports from reputable analytical and research centres, and its own analytical and forecasting tools, PGE CG developed potential scenarios for the evolution of the Polish electricity and heat market. Among other outcomes, forecasts of production volumes for specific generation units and wholesale electricity prices were obtained.
The projected increase in installed capacity in onshore wind farms, photovoltaics, and offshore wind farms in the Baltic Sea, as well as the dynamic development of prosumer energy and energy storage, is expected to result in a decline in production volumes from coal-fired units. Consequently, the reduced volume of electricity generated from hard coal and lignite contributes to lower CO₂ emissions in PGE CG. Additionally, significant emission reductions are occurring in the district heating segment, where coal-fired generation is being replaced with high-efficiency gas units, RES, heat pumps and electrode boilers.
The climate neutrality target for PGE CG, to be achieved no later than 2050, is aligned with the objectives of the European Green Deal.
The development targets for renewable energy sources have been established based on analyses of the macroeconomic and market environment, the status of the Group’s investment project portfolio, the potential for external financing (including aid funds), and benchmarks prepared by external providers. The final targets were discussed and approved during meetings of the PGE S.A. Strategy Committee, composed of members of the Management Board and Division Directors of PGE S.A. Investment decisions, recommendations, and other strategic business decisions are also made within relevant project structures and collegial bodies, such as the Investment Committee and the Sustainable Development Committee.
The Group monitors changes in the market, technological and social environment, and adjusts its activities to current and emerging regulations in the field of climate policy, based on internally developed practices, procedures, and analytical tools. Macroeconomic, market, and regulatory scenario analysis is part of an annual process that plays a significant role in shaping the Group’s strategy, investment portfolio and business model transformation. These analyses enable the Group to identify trends and key developments related to the environment, society, technology, market, and policy.