Additionally, during the double materiality assessment, negative impacts were also identified in the areas of secure employment and working time; however, these were assessed as non-material.

Due to the broad scope of its operations, the PGE Group employs workers across multiple business areas, representing diverse experiences, socio-economic backgrounds and job profiles. At the highest level of data aggregation, employee groups significantly affected by its operations can be categorised according to the following criteria:

• Gender (within the PGE Group, no individual has identified as ‘other’ or opted not to disclose their gender identity),
• Nature of work, based on the type of tasks performed:
  • Top management
  • Middle management
  • Administrative/white-collar workers (including engineers)
  • Production/manual workers

Within PGE CG, various working time systems are applied, tailored to the specific nature of individual positions and operational needs. These systems include:

• the standard system,
• the equivalent system (with extended daily working hours of up to 12 hours),
• the task-based system,
• the intermittent system.

In addition, depending on the specific operational requirements, different working time arrangements are in place, such as:

• single-shift work,
• multi-shift work, including two- or three-shift systems, typically in four-shift teams – characteristic of operations requiring continuity 24 hours a day, seven days a week.

Among individuals classified as own workforce but not employed under an employment contract, PGE CG distinguishes between types based on the nature of the relationship with the Group. These include:

• Management Board members (managerial contracts);
• Individuals performing services under contracts of mandate;
• Individuals delivering specific work under contracts for specific tasks;
• Self-employed individuals (B2B);
• Individuals hired by PGE via temporary employment agencies;
• Others.

The impacts (including negative ones) stem from the business model and are linked to the Group’s Strategy. In order to address the challenges posed by decarbonisation, decentralisation and market competition, PGE CG must continuously improve the efficiency of its operations. Notably, the Group’s Strategy until 2030 highlights the element of Just Transition in coal regions. The implementation of a just transition in coal regions is a key component of PGE CG’s Strategy, aimed at reducing negative environmental impacts, though it may affect the Group’s own workforce. As a preventive measure, an agreement has been concluded on stable and secure working and wage conditions for employees in anticipation of changes resulting from the transformation of the power and mining sectors. Detailed information about this agreement is provided under Section S1-4. In line with the Strategy, PGE CG’s business profile will evolve towards activities that require lower labour intensity and a shift in key workforce competencies. Employment planning, new career development paths, the development of competencies and qualifications, and succession planning are among the measures used to manage the risks and opportunities arising from changes to the business model. The transition to a low-emission and climate-neutral economy requires the dissemination of new qualifications, which also presents an opportunity to develop new competencies. This, in turn, enables the retraining and reskilling of existing employees, capitalising on their experience and supporting them with the new skills needed in an evolving labour market. The Group’s Strategy includes the development of new competencies among employees and support for local communities, which defines the direction of the organisation’s actions in the social domain.

Negative impacts relate to the area of Occupational health and safety. However, these are individual in nature and stem from the specific tasks performed in certain business segments. In contrast, those concerning Gender equality and equal pay for work of equal value are more systemic and reflect the business profile of PGE CG. Due to the nature of its operations, the Group employs a higher proportion of men.

Given the Group’s holding structure, sectoral diversity of employers, and the large number of trade union organisations, social dialogue within PGE CG is conducted at three levels, in accordance with the principle of subsidiarity. Employers maintain ongoing cooperation with trade union organisations operating within their entities. PGE S.A., as the parent company, constitutes the highest level of social dialogue within the Group. This level of dialogue involves the Management Board of PGE S.A., representatives of business segments, employers, and social partners, and addresses matters of strategic importance to the entire Group. The Management Board of PGE S.A., as an employer, is also a party to social dialogue at the workplace level with the trade unions operating in the company.

Employers within PGE CG comply with applicable legal provisions governing trade union activities in the workplace. This includes both formal and practical aspects, such as providing meeting rooms, office equipment, or notice boards. In many of the Group companies, the statutory scope of cooperation with social partners has been extended through collective agreements with trade unions. These agreements more precisely regulate various aspects of the functioning of trade union organisations in the workplace and the cooperation between the parties in the field of social dialogue. As of 31 December 2024, there were 153 individual trade union organisations operating within PGE CG, bringing together nearly 28,800 employees, resulting in a unionisation rate of 67%.