PGE Capital Group makes significant use of water resources in its ongoing operations, which may be indicative of its negative impact on water withdrawals, water consumption and water discharge. The demand in this area pertains in particular to the activities of the PGE Capital Group within the Conventional Generation and District Heating segments. Large quantities of water are used for technological purposes in the production of electricity and heat, or for lignite mine drainage.

As part of the Renewables segment and the operation of pumped-storage power plants, reservoirs are created to store large volumes of water for use during periods of drought or increased demand. They have a retention function and help maintain a hydrological balance in the regions where they are located, making it possible to prevent flooding and mitigate the effects of drought.

Information on the identified risks can be found in ESRS2 SBM-3.