ESRS
ESRS
[SBM-3] Material impacts, risks and opportunities and their interrelationship with the strategy and with the business model

Results of materiality assessment of impact, taking into account the location of the impact in the value chain.

Sub-topic Sub-thematic unit Actual or potential impact Negative or positive impact Occurrence in value chain1 Description of impact
Climate change adaptation – Actual Negative and positive U+O+D Positive impact: The activities of PGE Group have an indirect influence on climate change adaptation, e.g. by increasing the resilience of the electricity network.

Negative impact: By pursuing its primary objective of ensuring continuity of energy supply, PGE Capital Group continues to rely on sources considered to be high-emission, which may contribute to a negative impact on climate change.
Climate change mitigation – Actual Negative and positive U+O+D Positive impact: PGE Group carries out and plans actions to reduce emissions – decarbonisation, reducing greenhouse gas emissions, e.g. by increasing the share of zero- and low-emission sources.

Negative impact: Until the aforementioned actions are implemented, the organisation remains a significant emitter of greenhouse gases, which may contribute to negative impacts on climate change.
Energy – Actual Negative and positive U+O+D Positive impact: PGE Capital Group carries out activities in the area of energy efficiency and supplements its energy mix with renewable

Negative impact: PGE Capital Group (CG) is an energy-intensive enterprise with a high demand for non-renewable energy carriers.
Sub-topic Sub-thematic unit Actual or potential impact Negative or positive impact Occurrence in value chain1 Description of impact
Climate change adaptation – Actual Negative and positive U+O+D Positive impact: The activities of PGE Group have an indirect influence on climate change adaptation, e.g. by increasing the resilience of the electricity network.

Negative impact: By pursuing its primary objective of ensuring continuity of energy supply, PGE Capital Group continues to rely on sources considered to be high-emission, which may contribute to a negative impact on climate change.
Climate change mitigation – Actual Negative and positive U+O+D Positive impact: PGE Group carries out and plans actions to reduce emissions – decarbonisation, reducing greenhouse gas emissions, e.g. by increasing the share of zero- and low-emission sources.

Negative impact: Until the aforementioned actions are implemented, the organisation remains a significant emitter of greenhouse gases, which may contribute to negative impacts on climate change.
Energy – Actual Negative and positive U+O+D Positive impact: PGE Capital Group carries out activities in the area of energy efficiency and supplements its energy mix with renewable

Negative impact: PGE Capital Group (CG) is an energy-intensive enterprise with a high demand for non-renewable energy carriers.

Sub-topic Sub-thematic unit Actual or potential impact Negative or positive impact Occurrence in value chain1 Description of impact
Pollution of air – Actual Negative and positive U+O+D Positive impact: PGE Group has a positive impact on air quality, e.g. through new investments, transforming energy generation which increases access to clean heat (cleaner method of generation).

Negative impact: In the course of extracting raw materials for production (upstream and mining organisation), air pollution may occur – e.g. due to failures or exceeding limits. As part of the PGE CG’s operations, in some processes, particularly in conventional energy generation, pollutants are emitted into the atmosphere. From a downstream perspective, the electricity generated by PGE Capital Group may contribute to powering enterprises that emit air pollutants.
Pollution of water – Actual Negative and positive U+O+D Positive impact: Closed water circuits are used within PGE Capital Group, enabling the reuse of water. PGE CG is investing in upgrades to wastewater treatment plants, resulting in lower discharges of polluted water.

Negative impact: In the course of extracting raw materials for production (upstream, organisation), water pollution may occur – e.g. due to failures or exceeding limits. As part of the PGE CG’s operations, certain processes result in the discharge of pollutants into water. From a downstream perspective, the electricity generated by PGE Capital Group may contribute to powering enterprises that emit water pollutants.
Pollution of soil – Actual Negative U+O+D Negative impact: In the course of extracting raw materials for production (upstream, organisation), soil contamination may occur – e.g. due to failures or exceeding limits. As part of the PGE CG’s operations, certain processes result in soil contamination (e.g. in the context of incidents involving oil leaks from transformers). From a downstream perspective, the electricity generated by PGE Capital Group may contribute to powering enterprises that emit soil pollutants.
Sub-topic Sub-thematic unit Actual or potential impact Negative or positive impact Occurrence in value chain1 Description of impact
Pollution of air – Actual Negative and positive U+O+D Positive impact: PGE Group has a positive impact on air quality, e.g. through new investments, transforming energy generation which increases access to clean heat (cleaner method of generation).

Negative impact: In the course of extracting raw materials for production (upstream and mining organisation), air pollution may occur – e.g. due to failures or exceeding limits. As part of the PGE CG’s operations, in some processes, particularly in conventional energy generation, pollutants are emitted into the atmosphere. From a downstream perspective, the electricity generated by PGE Capital Group may contribute to powering enterprises that emit air pollutants.
Pollution of water – Actual Negative and positive U+O+D Positive impact: Closed water circuits are used within PGE Capital Group, enabling the reuse of water. PGE CG is investing in upgrades to wastewater treatment plants, resulting in lower discharges of polluted water.

Negative impact: In the course of extracting raw materials for production (upstream, organisation), water pollution may occur – e.g. due to failures or exceeding limits. As part of the PGE CG’s operations, certain processes result in the discharge of pollutants into water. From a downstream perspective, the electricity generated by PGE Capital Group may contribute to powering enterprises that emit water pollutants.
Pollution of soil – Actual Negative U+O+D Negative impact: In the course of extracting raw materials for production (upstream, organisation), soil contamination may occur – e.g. due to failures or exceeding limits. As part of the PGE CG’s operations, certain processes result in soil contamination (e.g. in the context of incidents involving oil leaks from transformers). From a downstream perspective, the electricity generated by PGE Capital Group may contribute to powering enterprises that emit soil pollutants.

Sub-topic Sub-thematic unit Actual or potential impact Negative or positive impact Occurrence in value chain1 Description of impact
Water Water consumption Actual Negative U+O+D Negative impact: At PGE Capital Group, water is used for core processes, particularly for cooling generating units (e.g. coal-fired). Additionally, significant amounts of water are used in the upstream process of extracting raw materials such as lignite. From a downstream perspective, the electricity generated by PGE Capital Group may contribute to powering enterprises that use substantial amounts of water.
Water withdrawals Actual and potential Negative and positive U+O+D Positive impact: PGE Capital Group owns and develops pumped-storage power plants (PPS) as part of its infrastructure, which may be used for water retention purposes.

Negative impact: PGE Capital Group makes significant use of water resources in its ongoing operations. As part of the PSPP, water reservoirs are created, and their water circulation may have a negative impact on the environment (biodiversity and ecological balance). From a downstream perspective, the electricity generated by PGE CG may contribute to powering enterprises that use substantial amounts of water.

The potential impact arises from the completion or modernisation of selected infrastructure elements, which may in turn intensify the described effects.
Water discharges Actual Negative U+O+D Negative impact: PGE Capital Group has an impact across the entire value chain. During the extraction of raw materials required for production (upstream), as well as during certain production processes, post-production water may be discharged into existing watercourses (e.g. water drained from mines). From a downstream perspective, the electricity generated by PGE CG may contribute to powering enterprises that discharge water into watercourses or other reservoirs.
Sub-topic Sub-thematic unit Actual or potential impact Negative or positive impact Occurrence in value chain1 Description of impact
Water Water consumption Actual Negative U+O+D Negative impact: At PGE Capital Group, water is used for core processes, particularly for cooling generating units (e.g. coal-fired). Additionally, significant amounts of water are used in the upstream process of extracting raw materials such as lignite. From a downstream perspective, the electricity generated by PGE Capital Group may contribute to powering enterprises that use substantial amounts of water.
Water withdrawals Actual and potential Negative and positive U+O+D Positive impact: PGE Capital Group owns and develops pumped-storage power plants (PPS) as part of its infrastructure, which may be used for water retention purposes.

Negative impact: PGE Capital Group makes significant use of water resources in its ongoing operations. As part of the PSPP, water reservoirs are created, and their water circulation may have a negative impact on the environment (biodiversity and ecological balance). From a downstream perspective, the electricity generated by PGE CG may contribute to powering enterprises that use substantial amounts of water.

The potential impact arises from the completion or modernisation of selected infrastructure elements, which may in turn intensify the described effects.
Water discharges Actual Negative U+O+D Negative impact: PGE Capital Group has an impact across the entire value chain. During the extraction of raw materials required for production (upstream), as well as during certain production processes, post-production water may be discharged into existing watercourses (e.g. water drained from mines). From a downstream perspective, the electricity generated by PGE CG may contribute to powering enterprises that discharge water into watercourses or other reservoirs.

Sub-topic Sub-thematic unit Actual or potential impact Negative or positive impact Occurrence in value chain1 Description of impact
Direct impact drivers of biodiversity loss Climate change Actual and potential Negative and positive U+O+D Positive impact: PGE CG engages in activities aimed at protecting biodiversity through numerous partnerships and proprietary projects, which enable the monitoring, preservation, and enhancement of ecosystems. The Group also carries out investment projects aimed at reducing installation emissions and mitigating impacts on the climate, environment, and biodiversity.

Negative impact: The organisation’s operations, as well as its entire value chain, are highly emissive, which may interfere with biodiversity due to greenhouse gas emissions, potentially undermining its preservation.
Land-use change, fresh water-use change and sea-use change Actual and potential Negative U+O+D Negative impact: PGE Capital Group conducts mining and distribution activities that interfere with existing land use, which may negatively affect the biodiversity of the affected areas. Moreover, the significant development of renewable energy sources also requires land use, thereby potentially impacting biodiversity.
Direct exploitation Actual and potential Negative U+O+D Negative impact: PGE Capital Group’s mining and distribution activities directly exploit land, which may adversely affect biodiversity in those areas. Additionally, the substantial development of renewable energy sources requires land use, thus potentially contributing to biodiversity loss.
Impact on the extent and condition of ecosystems caused by land degradation – Actual Negative U+O+D Negative impact: The mining activities conducted by PGE Capital Group contribute to land degradation and affect both the extent and condition of ecosystems. In addition, the significant development of renewable energy sources and their distribution also requires land use, thus impacting ecosystems.
Impacts and dependencies on ecosystem services – Actual Negative and positive O+D Positive impact: PGE Capital Group owns and develops pumped-storage power plants as part of its infrastructure, which can be used for water retention purposes.

Negative impact: Pumped-storage power plants involve the creation of reservoirs, the water circulation of which may have adverse effects on the surrounding environment, including biological and ecological diversity. The exploitation of lignite deposits using open-pit mining methods requires the dewatering of rock mass, which affects hydrogeological conditions and alters hydrodynamic systems.
Sub-topic Sub-thematic unit Actual or potential impact Negative or positive impact Occurrence in value chain1 Description of impact
Direct impact drivers of biodiversity loss Climate change Actual and potential Negative and positive U+O+D Positive impact: PGE CG engages in activities aimed at protecting biodiversity through numerous partnerships and proprietary projects, which enable the monitoring, preservation, and enhancement of ecosystems. The Group also carries out investment projects aimed at reducing installation emissions and mitigating impacts on the climate, environment, and biodiversity.

Negative impact: The organisation’s operations, as well as its entire value chain, are highly emissive, which may interfere with biodiversity due to greenhouse gas emissions, potentially undermining its preservation.
Land-use change, fresh water-use change and sea-use change Actual and potential Negative U+O+D Negative impact: PGE Capital Group conducts mining and distribution activities that interfere with existing land use, which may negatively affect the biodiversity of the affected areas. Moreover, the significant development of renewable energy sources also requires land use, thereby potentially impacting biodiversity.
Direct exploitation Actual and potential Negative U+O+D Negative impact: PGE Capital Group’s mining and distribution activities directly exploit land, which may adversely affect biodiversity in those areas. Additionally, the substantial development of renewable energy sources requires land use, thus potentially contributing to biodiversity loss.
Impact on the extent and condition of ecosystems caused by land degradation – Actual Negative U+O+D Negative impact: The mining activities conducted by PGE Capital Group contribute to land degradation and affect both the extent and condition of ecosystems. In addition, the significant development of renewable energy sources and their distribution also requires land use, thus impacting ecosystems.
Impacts and dependencies on ecosystem services – Actual Negative and positive O+D Positive impact: PGE Capital Group owns and develops pumped-storage power plants as part of its infrastructure, which can be used for water retention purposes.

Negative impact: Pumped-storage power plants involve the creation of reservoirs, the water circulation of which may have adverse effects on the surrounding environment, including biological and ecological diversity. The exploitation of lignite deposits using open-pit mining methods requires the dewatering of rock mass, which affects hydrogeological conditions and alters hydrodynamic systems.

Sub-topic Sub-thematic unit Actual or potential impact Negative or positive impact Occurrence in value chain1 Description of impact
Resources inflows, including resource use – Actual and potential Negative and positive U+O+D Positive impact: The company is developing its business segment focused on the circular economy, making use of energy carriers such as biomass and waste. Research and development activities are also being conducted on technical conditions, new technologies, diagnostic methods, and research techniques related to the circular economy.

Negative impact: As part of its core activities, PGE CG uses fossil-based and non-renewable energy sources.
Resource outflows related to products and services – Actual and potential Positive U+O+D Positive impact: The Group is gradually developing a business segment dedicated to the circular economy, aimed at closing the loop on raw materials in line with circular economy principles.
Waste – Actual Negative and positive U+O+D Positive impact: PGE Capital Group’s dedicated circular economy segment was established to maximise the reuse of raw materials involved in energy production processes, thus preventing waste generation. As a result of the Group’s activities, the majority of post-process waste volume is transferred to external recipients, either as waste or as a by-product.

Negative impact: Due to the nature and scale of its operations, PGE CG generates a significant amount of waste.
Sub-topic Sub-thematic unit Actual or potential impact Negative or positive impact Occurrence in value chain1 Description of impact
Resources inflows, including resource use – Actual and potential Negative and positive U+O+D Positive impact: The company is developing its business segment focused on the circular economy, making use of energy carriers such as biomass and waste. Research and development activities are also being conducted on technical conditions, new technologies, diagnostic methods, and research techniques related to the circular economy.

Negative impact: As part of its core activities, PGE CG uses fossil-based and non-renewable energy sources.
Resource outflows related to products and services – Actual and potential Positive U+O+D Positive impact: The Group is gradually developing a business segment dedicated to the circular economy, aimed at closing the loop on raw materials in line with circular economy principles.
Waste – Actual Negative and positive U+O+D Positive impact: PGE Capital Group’s dedicated circular economy segment was established to maximise the reuse of raw materials involved in energy production processes, thus preventing waste generation. As a result of the Group’s activities, the majority of post-process waste volume is transferred to external recipients, either as waste or as a by-product.

Negative impact: Due to the nature and scale of its operations, PGE CG generates a significant amount of waste.

Sub-topic Sub-thematic unit Actual or potential impact Negative or positive impact Occurrence in value chain1 Description of impact
Working condition  Secure employment Actuall Positive U+O Positive impact: The predominant form of employment at PGE Capital Group is permanent employment contracts, which positively contribute to job security for the Group’s employees. Furthermore, an agreement has been concluded concerning stable and secure working and pay conditions for employees in light of the changes arising from the transformation of the power generation and mining sectors.
Working time Actual Positive O Positive impact: PGE Capital Group has implemented relevant processes and procedures to regulate working time. Within the scope of its activities, the Group seeks to ensure a positive impact on its human resources by adapting working time to employees’ needs wherever possible
Adequate wages Actual Positive O Positive impact: PGE Capital Group has in place appropriate remuneration processes and procedures aligned with market conditions. Employers regularly carry out market benchmarking and analyse financial capabilities. Stakeholders (employees), through their representatives, are involved in processes related to fair pay.
Social dialogue Actual Positive O Positive impact: PGE Capital Group conducts regular social dialogue with employees, including through trade unions.
Freedom of association, the existence of works councils and the information, consultation and participation rights of workers Actual Positive O Positive impact: PGE Capital Group respects the freedom of employees to associate in trade unions. Employers maintain ongoing social dialogue with union organisations, which represent the collective interests of employees and ensure the enforcement of statutory rights related to their operation within the workplace. Works councils and several trade unions actively participate in the functioning of the enterprise.
Collective bargaining, including rate of workers covered by collective agreements Actua Positive O Positive impact: At PGE Capital Group, the primary forum for collective bargaining is the workplace. The most important outcomes of collective bargaining are company-level and sector-level collective labour agreements, which play a key role in shaping collective employment conditions. In addition, measures aimed at supporting work-life balance have been implemented as part of collective bargaining efforts, which has a positive impact on internal human resources, employee loyalty and efficiency, while reducing absenteeism and staff turnover.
Work-life balance Actual Positive O Positive impact: PGE Capital Group respects employees’ rights and implements solutions that account for special entitlements, such as preferences for parents of young children (under 8 years of age), the right to request flexible working arrangements, additional days of care leave, and emergency leave with partial pay.
Health and safety Actua Negative and positive O Positive impact: A wide range of activities is carried out, including training, consultations and monitoring of the working environment, with the aim of maximising the level of health and safety protection for both internal staff and persons working within the PGE Capital Group’s value chain.

Negative impact: Due to the nature of its operations, PGE Capital Group faces an increased risk of workplace accidents.
Equal treatment and opportunities for all Gender equality and equal pay for work of equal value Actual Negative and positive O Positive impact: In order to ensure a positive influence in the area of equal pay for work of equal value, PGE Group individualises salaries based on assessments of competence, qualifications and work performance. It also fosters working and remuneration conditions that promote equal opportunities.

Negative impact: Due to the nature of its operations and the technical nature of the work, PGE Capital Group employs a greater proportion of men.
Training and skills development Actual Positive O Positive impact: PGE Capital Group places strong emphasis on the continuous development of employees aligned with business needs. It supports staff in effectively carrying out their tasks through the development of competences and qualifications and by fostering a culture of organisational learning. The organisation provides appropriate mechanisms and tools to educate employees, ensuring a positive impact in this area.
Measures against violence and harassment in the workplace Actual Positive O Positive impact: To ensure a positive influence in this area, the organisation provides appropriate mechanisms and tools to prevent violence and harassment in the workplace, such as training sessions, awareness campaigns and support systems.
Diversity Actual Positive O Positive impact: Within its HR policy, PGE Capital Group operates in accordance with regulatory requirements. Efforts are made to ensure greater diversity among employees.
Other work-related rights Privacy Actual Positive U+O+D Positive impact: PGE Capital Group has implemented processes, procedures and mechanisms affecting this area of impact. Additionally, these standards – as required by law – are extended to actors across the value chain (e.g. GDPR) through relevant contracts, information, etc. To ensure a positive influence, the organisation undertakes activities aimed at raising management awareness in the area of personal data protection and runs information campaigns for directors and managers.
Sub-topic Sub-thematic unit Actual or potential impact Negative or positive impact Occurrence in value chain1 Description of impact
Working condition  Secure employment Actuall Positive U+O Positive impact: The predominant form of employment at PGE Capital Group is permanent employment contracts, which positively contribute to job security for the Group’s employees. Furthermore, an agreement has been concluded concerning stable and secure working and pay conditions for employees in light of the changes arising from the transformation of the power generation and mining sectors.
Working time Actual Positive O Positive impact: PGE Capital Group has implemented relevant processes and procedures to regulate working time. Within the scope of its activities, the Group seeks to ensure a positive impact on its human resources by adapting working time to employees’ needs wherever possible
Adequate wages Actual Positive O Positive impact: PGE Capital Group has in place appropriate remuneration processes and procedures aligned with market conditions. Employers regularly carry out market benchmarking and analyse financial capabilities. Stakeholders (employees), through their representatives, are involved in processes related to fair pay.
Social dialogue Actual Positive O Positive impact: PGE Capital Group conducts regular social dialogue with employees, including through trade unions.
Freedom of association, the existence of works councils and the information, consultation and participation rights of workers Actual Positive O Positive impact: PGE Capital Group respects the freedom of employees to associate in trade unions. Employers maintain ongoing social dialogue with union organisations, which represent the collective interests of employees and ensure the enforcement of statutory rights related to their operation within the workplace. Works councils and several trade unions actively participate in the functioning of the enterprise.
Collective bargaining, including rate of workers covered by collective agreements Actua Positive O Positive impact: At PGE Capital Group, the primary forum for collective bargaining is the workplace. The most important outcomes of collective bargaining are company-level and sector-level collective labour agreements, which play a key role in shaping collective employment conditions. In addition, measures aimed at supporting work-life balance have been implemented as part of collective bargaining efforts, which has a positive impact on internal human resources, employee loyalty and efficiency, while reducing absenteeism and staff turnover.
Work-life balance Actual Positive O Positive impact: PGE Capital Group respects employees’ rights and implements solutions that account for special entitlements, such as preferences for parents of young children (under 8 years of age), the right to request flexible working arrangements, additional days of care leave, and emergency leave with partial pay.
Health and safety Actua Negative and positive O Positive impact: A wide range of activities is carried out, including training, consultations and monitoring of the working environment, with the aim of maximising the level of health and safety protection for both internal staff and persons working within the PGE Capital Group’s value chain.

Negative impact: Due to the nature of its operations, PGE Capital Group faces an increased risk of workplace accidents.
Equal treatment and opportunities for all Gender equality and equal pay for work of equal value Actual Negative and positive O Positive impact: In order to ensure a positive influence in the area of equal pay for work of equal value, PGE Group individualises salaries based on assessments of competence, qualifications and work performance. It also fosters working and remuneration conditions that promote equal opportunities.

Negative impact: Due to the nature of its operations and the technical nature of the work, PGE Capital Group employs a greater proportion of men.
Training and skills development Actual Positive O Positive impact: PGE Capital Group places strong emphasis on the continuous development of employees aligned with business needs. It supports staff in effectively carrying out their tasks through the development of competences and qualifications and by fostering a culture of organisational learning. The organisation provides appropriate mechanisms and tools to educate employees, ensuring a positive impact in this area.
Measures against violence and harassment in the workplace Actual Positive O Positive impact: To ensure a positive influence in this area, the organisation provides appropriate mechanisms and tools to prevent violence and harassment in the workplace, such as training sessions, awareness campaigns and support systems.
Diversity Actual Positive O Positive impact: Within its HR policy, PGE Capital Group operates in accordance with regulatory requirements. Efforts are made to ensure greater diversity among employees.
Other work-related rights Privacy Actual Positive U+O+D Positive impact: PGE Capital Group has implemented processes, procedures and mechanisms affecting this area of impact. Additionally, these standards – as required by law – are extended to actors across the value chain (e.g. GDPR) through relevant contracts, information, etc. To ensure a positive influence, the organisation undertakes activities aimed at raising management awareness in the area of personal data protection and runs information campaigns for directors and managers.

Sub-topic Sub-thematic unit Actual or potential impact Negative or positive impact Occurrence in value chain1 Description of impact
Working conditions Secure employment Actual Positive U+O Positive impact: PGE CG sets out requirements in its Code of Conduct for Business Partners of PGE Capital Group companies concerning respect for human rights and provision of appropriate working conditions for those employed across the value chain. It also outlines obligations such as on-the-job training, provision of protective equipment and occupational health and safety training. PGE Capital Group builds relationships with potential suppliers through information meetings aimed at assessing the capabilities of Polish and foreign suppliers.
Working time Actual Positive U+O
Adekwatna płaca Actual Positive U+O
Health and safety Actual Positive U+O
Equal treatment and opportunities for all Measures against violence and harassment in the workplace Actual Positive U+O
Diversity Actual Positive –
Sub-topic Sub-thematic unit Actual or potential impact Negative or positive impact Occurrence in value chain1 Description of impact
Working conditions Secure employment Actual Positive U+O Positive impact: PGE CG sets out requirements in its Code of Conduct for Business Partners of PGE Capital Group companies concerning respect for human rights and provision of appropriate working conditions for those employed across the value chain. It also outlines obligations such as on-the-job training, provision of protective equipment and occupational health and safety training. PGE Capital Group builds relationships with potential suppliers through information meetings aimed at assessing the capabilities of Polish and foreign suppliers.
Working time Actual Positive U+O
Adekwatna płaca Actual Positive U+O
Health and safety Actual Positive U+O
Equal treatment and opportunities for all Measures against violence and harassment in the workplace Actual Positive U+O
Diversity Actual Positive –

Sub-topic Sub-thematic unit Actual or potential impact Negative or positive impact Occurrence in value chain1 Description of impact
Communities’ economic, social and cultural rights Adequate housing Actual Negative and positive U+O+D Positive impact: PGE Capital Group undertakes activities aimed at reducing pollution by gradually phasing out coal-based energy generation and investing in local infrastructure, such as building roads during energy project implementation.

Negative impact: PGE Capital Group operates in a high-emission sector, which directly affects housing conditions in communities through air pollution and reduced air quality. The organisation’s operations may also be associated with noise and other forms of environmental impact.
ecurity-related impacts Actual Negative and positive U+O+D Positive impact: PGE Capital Group creates jobs in the construction and operation of renewable and low-emission installations, reduces the duration of power outages through investment projects in distribution, and helps ensure the availability of district heating for urban areas.

Negative impact: Job reductions are occurring as coal-fired units are phased out and mines are closed within the PGE Capital Group, resulting in a decline in local tax and fee revenues.
Sub-topic Sub-thematic unit Actual or potential impact Negative or positive impact Occurrence in value chain1 Description of impact
Communities’ economic, social and cultural rights Adequate housing Actual Negative and positive U+O+D Positive impact: PGE Capital Group undertakes activities aimed at reducing pollution by gradually phasing out coal-based energy generation and investing in local infrastructure, such as building roads during energy project implementation.

Negative impact: PGE Capital Group operates in a high-emission sector, which directly affects housing conditions in communities through air pollution and reduced air quality. The organisation’s operations may also be associated with noise and other forms of environmental impact.
ecurity-related impacts Actual Negative and positive U+O+D Positive impact: PGE Capital Group creates jobs in the construction and operation of renewable and low-emission installations, reduces the duration of power outages through investment projects in distribution, and helps ensure the availability of district heating for urban areas.

Negative impact: Job reductions are occurring as coal-fired units are phased out and mines are closed within the PGE Capital Group, resulting in a decline in local tax and fee revenues.

Sub-topic Sub-thematic unit Actual or potential impact Negative or positive impact Occurrence in value chain1 Description of impact
Information-related impacts for consumers and/or end-users Privacy Actual Negative and positive O+D Positive impact: PGE Capital Group protects customer privacy by complying with legal regulations, such as the General Data Protection Regulation (GDPR). Data Protection Officers implement privacy-by-design strategies and conduct regular training. Customers may report personal data breaches and exercise their rights under GDPR.

Negative impact: Due to the volume of digital data used in day-to-day operations, the organisation is exposed to risks of cyberattacks, including data leaks.
Access to (quality) information Actual Positive U+O+D Positive impact: The organisation concludes contracts with consumers and end users in line with legal requirements. PGE CG ensures that product presentations and required contract documentation are structured in a clear and accessible manner, following specially developed guidelines on plain language use, which supports informed consumer decision-making. Information mechanisms and communication channels are available as part of sales and customer service processes.
Personal safety of consumers and/or end-users Health and safety Actual Negative and positive O+D Positive impact: PGE Capital Group has implemented appropriate governance solutions to establish a personnel security system. It runs information and education campaigns on health and safety, helping to raise public awareness about the safe use of electricity and energy-related equipment. Additionally, PGE Capital Group sells renewable energy installations. From the consumer perspective, replacing outdated heat sources with renewable energy technologies reduces the risk of carbon monoxide poisoning and improves air quality, positively impacting health.

Negative impact: PGE Capital Group operates in a high-emission industry, which may adversely affect the health and safety of consumers and end users.
Security of a person Actual Negative and positive O+D
Social inclusion of consumers and/or end-users Access to products and services Actual Positive O+D Positive impact: PGE Capital Group treats all consumers and end-users equally. It provides and promotes digital customer service solutions such as eInvoice, Moje PGE, eBOK, and the 991 Assistant App, ensuring 24/7 access to products and services and equal accessibility for all clients, including through traditional contact channels.
Responsible marketing practices Actual and potential Positive O+D Positive impact: PGE Capital Group conducts its marketing practices in accordance with legal requirements, taking care not to mislead end users.
Sub-topic Sub-thematic unit Actual or potential impact Negative or positive impact Occurrence in value chain1 Description of impact
Information-related impacts for consumers and/or end-users Privacy Actual Negative and positive O+D Positive impact: PGE Capital Group protects customer privacy by complying with legal regulations, such as the General Data Protection Regulation (GDPR). Data Protection Officers implement privacy-by-design strategies and conduct regular training. Customers may report personal data breaches and exercise their rights under GDPR.

Negative impact: Due to the volume of digital data used in day-to-day operations, the organisation is exposed to risks of cyberattacks, including data leaks.
Access to (quality) information Actual Positive U+O+D Positive impact: The organisation concludes contracts with consumers and end users in line with legal requirements. PGE CG ensures that product presentations and required contract documentation are structured in a clear and accessible manner, following specially developed guidelines on plain language use, which supports informed consumer decision-making. Information mechanisms and communication channels are available as part of sales and customer service processes.
Personal safety of consumers and/or end-users Health and safety Actual Negative and positive O+D Positive impact: PGE Capital Group has implemented appropriate governance solutions to establish a personnel security system. It runs information and education campaigns on health and safety, helping to raise public awareness about the safe use of electricity and energy-related equipment. Additionally, PGE Capital Group sells renewable energy installations. From the consumer perspective, replacing outdated heat sources with renewable energy technologies reduces the risk of carbon monoxide poisoning and improves air quality, positively impacting health.

Negative impact: PGE Capital Group operates in a high-emission industry, which may adversely affect the health and safety of consumers and end users.
Security of a person Actual Negative and positive O+D
Social inclusion of consumers and/or end-users Access to products and services Actual Positive O+D Positive impact: PGE Capital Group treats all consumers and end-users equally. It provides and promotes digital customer service solutions such as eInvoice, Moje PGE, eBOK, and the 991 Assistant App, ensuring 24/7 access to products and services and equal accessibility for all clients, including through traditional contact channels.
Responsible marketing practices Actual and potential Positive O+D Positive impact: PGE Capital Group conducts its marketing practices in accordance with legal requirements, taking care not to mislead end users.

Sub-topic Sub-thematic unit Actual or potential impacty Negative or positive impact Occurrence in value chain1 Description of impact
Corporate culture – Actual Positive O Positive impact: The development and promotion of corporate culture is supported through educational and informational activities as well as promotional campaigns. PGE CG also evaluates corporate culture among its employees.
Protection of whistle-blowers – Actual Positive U+O+D Positive impact: PGE Capital Group operates a whistleblowing system in compliance with the Act of 14 June 2024 on the Protection of Whistleblowers. Employees of the Group’s companies have been provided with extensive information about the protection of both whistleblowers and other reporting individuals. This information is a regular part of training on the PGE Capital Group’s Code of Ethics and anti-corruption policies. A broad information campaign has also been carried out regarding the whistleblowing channels and protection measures.
Political engagement and lobbying activities – Actual Negative and positive O Positive impact: PGE Capital Group takes steps to help shape favourable regulations by presenting its position to external stakeholders during public consultations on draft legislation and by independently proposing amendments to legal acts.

Negative impact: The organisation’s ownership structure introduces a potential risk of dependence on political influence.
Management of relationships with suppliers including payment practices – Actual Positive U+O Positive impact: PGE Capital Group has implemented processes, procedures and mechanisms affecting this area of influence. It has introduced one of the first Dynamic Purchasing Systems (DPS) in Poland, allowing suppliers to join proceedings at any time, thereby avoiding restrictions on competition and supporting long-term supplier relationships. To prevent payment delays, most of the Group’s companies have implemented control and monitoring mechanisms for documents under processing and the payments themselves.
Corruption and bribery Prevention and detection including training Actual Positive U+O Positive impact: The Group’s anti-corruption approach is outlined in the PGE Capital Group Code of Ethics, with detailed rules laid out in additional internal regulations. The organisation has implemented processes, procedures and mechanisms in this area of impact. Furthermore, partners of PGE Group companies are required to comply with minimum anti-corruption standards. Regular mandatory anti-corruption training sessions are held, alongside communication and educational activities to raise awareness among employees. Reporting mechanisms are available for both employees and third parties.
Incidents Actual Positive O
Sub-topic Sub-thematic unit Actual or potential impacty Negative or positive impact Occurrence in value chain1 Description of impact
Corporate culture – Actual Positive O Positive impact: The development and promotion of corporate culture is supported through educational and informational activities as well as promotional campaigns. PGE CG also evaluates corporate culture among its employees.
Protection of whistle-blowers – Actual Positive U+O+D Positive impact: PGE Capital Group operates a whistleblowing system in compliance with the Act of 14 June 2024 on the Protection of Whistleblowers. Employees of the Group’s companies have been provided with extensive information about the protection of both whistleblowers and other reporting individuals. This information is a regular part of training on the PGE Capital Group’s Code of Ethics and anti-corruption policies. A broad information campaign has also been carried out regarding the whistleblowing channels and protection measures.
Political engagement and lobbying activities – Actual Negative and positive O Positive impact: PGE Capital Group takes steps to help shape favourable regulations by presenting its position to external stakeholders during public consultations on draft legislation and by independently proposing amendments to legal acts.

Negative impact: The organisation’s ownership structure introduces a potential risk of dependence on political influence.
Management of relationships with suppliers including payment practices – Actual Positive U+O Positive impact: PGE Capital Group has implemented processes, procedures and mechanisms affecting this area of influence. It has introduced one of the first Dynamic Purchasing Systems (DPS) in Poland, allowing suppliers to join proceedings at any time, thereby avoiding restrictions on competition and supporting long-term supplier relationships. To prevent payment delays, most of the Group’s companies have implemented control and monitoring mechanisms for documents under processing and the payments themselves.
Corruption and bribery Prevention and detection including training Actual Positive U+O Positive impact: The Group’s anti-corruption approach is outlined in the PGE Capital Group Code of Ethics, with detailed rules laid out in additional internal regulations. The organisation has implemented processes, procedures and mechanisms in this area of impact. Furthermore, partners of PGE Group companies are required to comply with minimum anti-corruption standards. Regular mandatory anti-corruption training sessions are held, alongside communication and educational activities to raise awareness among employees. Reporting mechanisms are available for both employees and third parties.
Incidents Actual Positive O

1 U-upstream, D-downstream, O- organisation.

Results of the assessment of significant risks and opportunities, taking into account their location in the value chain

Sub-topic Sub-thematic unit Significant risks/opportunities Time perspective Location in the value chain
Climate change adaptation
as a physical risk		 – Risk: Risk of business continuity disruption due to irregularity in energy production from renewable energy sources (RES)
  • Medium-term
  • Long-term
 Organisation
– Risk: Decreased revenue due to reduced demand for products and services resulting from climate change
  • Long-term
 Organisation
Downstream
– Risk: Increased operational costs (including repair of failures) resulting from adapting business operations to the effects of climate change
  • Short-term
  • Medium-term
  • Long-term
 Organisation
– Opportunity: Increased revenue resulting from the introduction of new products in response to climate change adaptation
  • Long-term
 Organisation
Downstream
Climate change mitigation
as a transition risk		 – Risk: Failure to achieve assumed revenues due to the company’s offer not being aligned with new market conditions resulting from the energy transition
  • Long-term
 Organisation
Downstream
– Risk: Increased operating costs due to regulatory changes related to climate change mitigation in the process of sustainable economic transformation
  • Short-term
  • Medium-term
  • Long-term
 Upstream
Organisation
Downstream
– Opportunity: Increased revenue resulting from the development of new services/products in response to changing market demand
  • Medium-term
  • Long-term
 Organisation
Downstream
Energy – Opportunity: Increased revenue resulting from the development of new services/products in response to market demand shifting towards RES
  • Medium-term
  • Long-term
 Organisation
Downstream
Sub-topic Sub-thematic unit Significant risks/opportunities Time perspective Location in the value chain
Climate change adaptation
as a physical risk		 – Risk: Risk of business continuity disruption due to irregularity in energy production from renewable energy sources (RES)
  • Medium-term
  • Long-term
 Organisation
– Risk: Decreased revenue due to reduced demand for products and services resulting from climate change
  • Long-term
 Organisation
Downstream
– Risk: Increased operational costs (including repair of failures) resulting from adapting business operations to the effects of climate change
  • Short-term
  • Medium-term
  • Long-term
 Organisation
– Opportunity: Increased revenue resulting from the introduction of new products in response to climate change adaptation
  • Long-term
 Organisation
Downstream
Climate change mitigation
as a transition risk		 – Risk: Failure to achieve assumed revenues due to the company’s offer not being aligned with new market conditions resulting from the energy transition
  • Long-term
 Organisation
Downstream
– Risk: Increased operating costs due to regulatory changes related to climate change mitigation in the process of sustainable economic transformation
  • Short-term
  • Medium-term
  • Long-term
 Upstream
Organisation
Downstream
– Opportunity: Increased revenue resulting from the development of new services/products in response to changing market demand
  • Medium-term
  • Long-term
 Organisation
Downstream
Energy – Opportunity: Increased revenue resulting from the development of new services/products in response to market demand shifting towards RES
  • Medium-term
  • Long-term
 Organisation
Downstream

Sub-topic Sub-thematic unit Significant risks/opportunities Time perspective Location in the value chain
Pollution of air – Risk: Increased operating costs due to regulatory changes related to air pollution in the process of sustainable economic transformation
  • Long-term
 Organisation
Downstream
Sub-topic Sub-thematic unit Significant risks/opportunities Time perspective Location in the value chain
Pollution of air – Risk: Increased operating costs due to regulatory changes related to air pollution in the process of sustainable economic transformation
  • Long-term
 Organisation
Downstream

Sub-topic Sub-thematic unit Significant risks/opportunities Time perspective Location in the value chain
Water withdrawals – Risk: Risk of business continuity disruption due to the unavailability of natural resources of adequate quality
  • Medium-term
  • Long-term
 Upstream
Organisation
Sub-topic Sub-thematic unit Significant risks/opportunities Time perspective Location in the value chain
Water withdrawals – Risk: Risk of business continuity disruption due to the unavailability of natural resources of adequate quality
  • Medium-term
  • Long-term
 Upstream
Organisation

Sub-topic Sub-thematic unit Significant risks/opportunities Time perspective Location in the value chain
Waste – Risk: Increased operating costs due to regulatory changes related to waste management in the process of sustainable economic transformation
  • Medium-term
 Organisation
Downstream
– Opportunity: Increased revenue through the development of new technologies for the management of waste and by-products
  • Medium-term
  • Long-term
 Organisation
Downstream
Resource outflows related to products and services – Opportunity: Increased revenue resulting from growing demand for the organisation’s existing products and services
  • Medium-term
  • Long-term
 Organisation
Downstream
Sub-topic Sub-thematic unit Significant risks/opportunities Time perspective Location in the value chain
Waste – Risk: Increased operating costs due to regulatory changes related to waste management in the process of sustainable economic transformation
  • Medium-term
 Organisation
Downstream
– Opportunity: Increased revenue through the development of new technologies for the management of waste and by-products
  • Medium-term
  • Long-term
 Organisation
Downstream
Resource outflows related to products and services – Opportunity: Increased revenue resulting from growing demand for the organisation’s existing products and services
  • Medium-term
  • Long-term
 Organisation
Downstream

Sub-topic Sub-thematic unit Actual or potential impact Negative or positive impact Occurrence in value chain1 Description of impact
Working condition  Secure employment Actuall Positive U+O Positive impact: The predominant form of employment at PGE Capital Group is permanent employment contracts, which positively contribute to job security for the Group’s employees. Furthermore, an agreement has been concluded concerning stable and secure working and pay conditions for employees in light of the changes arising from the transformation of the power generation and mining sectors.
Working time Actual Positive O Positive impact: PGE Capital Group has implemented relevant processes and procedures to regulate working time. Within the scope of its activities, the Group seeks to ensure a positive impact on its human resources by adapting working time to employees’ needs wherever possible
Adequate wages Actual Positive O Positive impact: PGE Capital Group has in place appropriate remuneration processes and procedures aligned with market conditions. Employers regularly carry out market benchmarking and analyse financial capabilities. Stakeholders (employees), through their representatives, are involved in processes related to fair pay.
Social dialogue Actual Positive O Positive impact: PGE Capital Group conducts regular social dialogue with employees, including through trade unions.
Freedom of association, the existence of works councils and the information, consultation and participation rights of workers Actual Positive O Positive impact: PGE Capital Group respects the freedom of employees to associate in trade unions. Employers maintain ongoing social dialogue with union organisations, which represent the collective interests of employees and ensure the enforcement of statutory rights related to their operation within the workplace. Works councils and several trade unions actively participate in the functioning of the enterprise.
Collective bargaining, including rate of workers covered by collective agreements Actua Positive O Positive impact: At PGE Capital Group, the primary forum for collective bargaining is the workplace. The most important outcomes of collective bargaining are company-level and sector-level collective labour agreements, which play a key role in shaping collective employment conditions. In addition, measures aimed at supporting work-life balance have been implemented as part of collective bargaining efforts, which has a positive impact on internal human resources, employee loyalty and efficiency, while reducing absenteeism and staff turnover.
Work-life balance Actual Positive O Positive impact: PGE Capital Group respects employees’ rights and implements solutions that account for special entitlements, such as preferences for parents of young children (under 8 years of age), the right to request flexible working arrangements, additional days of care leave, and emergency leave with partial pay.
Health and safety Actua Negative and positive O Positive impact: A wide range of activities is carried out, including training, consultations and monitoring of the working environment, with the aim of maximising the level of health and safety protection for both internal staff and persons working within the PGE Capital Group’s value chain.

Negative impact: Due to the nature of its operations, PGE Capital Group faces an increased risk of workplace accidents.
Equal treatment and opportunities for all Gender equality and equal pay for work of equal value Actual Negative and positive O Positive impact: In order to ensure a positive influence in the area of equal pay for work of equal value, PGE Group individualises salaries based on assessments of competence, qualifications and work performance. It also fosters working and remuneration conditions that promote equal opportunities.

Negative impact: Due to the nature of its operations and the technical nature of the work, PGE Capital Group employs a greater proportion of men.
Training and skills development Actual Positive O Positive impact: PGE Capital Group places strong emphasis on the continuous development of employees aligned with business needs. It supports staff in effectively carrying out their tasks through the development of competences and qualifications and by fostering a culture of organisational learning. The organisation provides appropriate mechanisms and tools to educate employees, ensuring a positive impact in this area.
Measures against violence and harassment in the workplace Actual Positive O Positive impact: To ensure a positive influence in this area, the organisation provides appropriate mechanisms and tools to prevent violence and harassment in the workplace, such as training sessions, awareness campaigns and support systems.
Diversity Actual Positive O Positive impact: Within its HR policy, PGE Capital Group operates in accordance with regulatory requirements. Efforts are made to ensure greater diversity among employees.
Other work-related rights Privacy Actual Positive U+O+D Positive impact: PGE Capital Group has implemented processes, procedures and mechanisms affecting this area of impact. Additionally, these standards – as required by law – are extended to actors across the value chain (e.g. GDPR) through relevant contracts, information, etc. To ensure a positive influence, the organisation undertakes activities aimed at raising management awareness in the area of personal data protection and runs information campaigns for directors and managers.
Sub-topic Sub-thematic unit Actual or potential impact Negative or positive impact Occurrence in value chain1 Description of impact
Working condition  Secure employment Actuall Positive U+O Positive impact: The predominant form of employment at PGE Capital Group is permanent employment contracts, which positively contribute to job security for the Group’s employees. Furthermore, an agreement has been concluded concerning stable and secure working and pay conditions for employees in light of the changes arising from the transformation of the power generation and mining sectors.
Working time Actual Positive O Positive impact: PGE Capital Group has implemented relevant processes and procedures to regulate working time. Within the scope of its activities, the Group seeks to ensure a positive impact on its human resources by adapting working time to employees’ needs wherever possible
Adequate wages Actual Positive O Positive impact: PGE Capital Group has in place appropriate remuneration processes and procedures aligned with market conditions. Employers regularly carry out market benchmarking and analyse financial capabilities. Stakeholders (employees), through their representatives, are involved in processes related to fair pay.
Social dialogue Actual Positive O Positive impact: PGE Capital Group conducts regular social dialogue with employees, including through trade unions.
Freedom of association, the existence of works councils and the information, consultation and participation rights of workers Actual Positive O Positive impact: PGE Capital Group respects the freedom of employees to associate in trade unions. Employers maintain ongoing social dialogue with union organisations, which represent the collective interests of employees and ensure the enforcement of statutory rights related to their operation within the workplace. Works councils and several trade unions actively participate in the functioning of the enterprise.
Collective bargaining, including rate of workers covered by collective agreements Actua Positive O Positive impact: At PGE Capital Group, the primary forum for collective bargaining is the workplace. The most important outcomes of collective bargaining are company-level and sector-level collective labour agreements, which play a key role in shaping collective employment conditions. In addition, measures aimed at supporting work-life balance have been implemented as part of collective bargaining efforts, which has a positive impact on internal human resources, employee loyalty and efficiency, while reducing absenteeism and staff turnover.
Work-life balance Actual Positive O Positive impact: PGE Capital Group respects employees’ rights and implements solutions that account for special entitlements, such as preferences for parents of young children (under 8 years of age), the right to request flexible working arrangements, additional days of care leave, and emergency leave with partial pay.
Health and safety Actua Negative and positive O Positive impact: A wide range of activities is carried out, including training, consultations and monitoring of the working environment, with the aim of maximising the level of health and safety protection for both internal staff and persons working within the PGE Capital Group’s value chain.

Negative impact: Due to the nature of its operations, PGE Capital Group faces an increased risk of workplace accidents.
Equal treatment and opportunities for all Gender equality and equal pay for work of equal value Actual Negative and positive O Positive impact: In order to ensure a positive influence in the area of equal pay for work of equal value, PGE Group individualises salaries based on assessments of competence, qualifications and work performance. It also fosters working and remuneration conditions that promote equal opportunities.

Negative impact: Due to the nature of its operations and the technical nature of the work, PGE Capital Group employs a greater proportion of men.
Training and skills development Actual Positive O Positive impact: PGE Capital Group places strong emphasis on the continuous development of employees aligned with business needs. It supports staff in effectively carrying out their tasks through the development of competences and qualifications and by fostering a culture of organisational learning. The organisation provides appropriate mechanisms and tools to educate employees, ensuring a positive impact in this area.
Measures against violence and harassment in the workplace Actual Positive O Positive impact: To ensure a positive influence in this area, the organisation provides appropriate mechanisms and tools to prevent violence and harassment in the workplace, such as training sessions, awareness campaigns and support systems.
Diversity Actual Positive O Positive impact: Within its HR policy, PGE Capital Group operates in accordance with regulatory requirements. Efforts are made to ensure greater diversity among employees.
Other work-related rights Privacy Actual Positive U+O+D Positive impact: PGE Capital Group has implemented processes, procedures and mechanisms affecting this area of impact. Additionally, these standards – as required by law – are extended to actors across the value chain (e.g. GDPR) through relevant contracts, information, etc. To ensure a positive influence, the organisation undertakes activities aimed at raising management awareness in the area of personal data protection and runs information campaigns for directors and managers.

Sub-topic Sub-thematic unit Significant risks/opportunities Time perspective Location in the value chain
Working conditions Secure employment Opportunity: Reduced operating costs due to the provision of safe working conditions for employees in the value chain, leading to lower staff turnover
  • Medium-term
  • Long-term
 Upstream
Organisation
Sub-topic Sub-thematic unit Significant risks/opportunities Time perspective Location in the value chain
Working conditions Secure employment Opportunity: Reduced operating costs due to the provision of safe working conditions for employees in the value chain, leading to lower staff turnover
  • Medium-term
  • Long-term
 Upstream
Organisation

Sub-topic Sub-thematic unit Significant risks/opportunities Time perspective Location in the value chain
Social inclusion of consumers and/or end -users Responsible marketing practices Risk: Loss of revenue or additional costs due to reputational damage and customer loss resulting from irresponsible marketing practices
  • Medium-term
  • Long-term
 Organisation Downstream
Opportunity: Increased revenue resulting from responsible marketing practices – active collaboration with potential clients on expanding the product and service offer, ensuring better alignment with their needs and reaching a broader customer base
  • Medium-term
  • Long-term
 Organisation Downstream
Sub-topic Sub-thematic unit Significant risks/opportunities Time perspective Location in the value chain
Social inclusion of consumers and/or end -users Responsible marketing practices Risk: Loss of revenue or additional costs due to reputational damage and customer loss resulting from irresponsible marketing practices
  • Medium-term
  • Long-term
 Organisation Downstream
Opportunity: Increased revenue resulting from responsible marketing practices – active collaboration with potential clients on expanding the product and service offer, ensuring better alignment with their needs and reaching a broader customer base
  • Medium-term
  • Long-term
 Organisation Downstream

Estimates of the materialisation of significant ESG risks and opportunities (as presented in the table above), calculated in accordance with the process described in section IRO-1 as the product of financial impact and the assessment of their probability across various time horizons, along with an additional qualitative assessment, indicate their high potential impact on the revenues, costs, or capital expenditures of the PGE Group. The results of the financial materiality assessment did not expand the list of material topical areas for the PGE Group. In 2024, the Group applied a qualitative approach to assessing significant ESG risks and opportunities. As a result, the current financial impact of materialised significant risks and opportunities has not been identified, and consequently, there is no possibility of adjusting the financial data.

Phenomena with a material impact on the business model and the ways of counteracting specific material impacts or risks, or of taking advantage of specific material opportunities.

How the PGE Group responded to mitigate risks How the PGE Group responded to enhance opportunities
  • discontinuation of investment in new coal mining and power generation
  • adoption of a strategy assuming climate neutrality by 2050
  • notification of decommissioning of unprofitable units
  • dialogue with the government administration on allocating coal assets and developing financing mechanisms for conventional energy, to secure the needs of the National Power System (KSE)
  • investments in renewable and low-emission energy sources
  • raising capital for expansion into new business segments and modernisation of existing infrastructure
How the PGE Group responded to mitigate risks How the PGE Group responded to enhance opportunities
  • discontinuation of investment in new coal mining and power generation
  • adoption of a strategy assuming climate neutrality by 2050
  • notification of decommissioning of unprofitable units
  • dialogue with the government administration on allocating coal assets and developing financing mechanisms for conventional energy, to secure the needs of the National Power System (KSE)
  • investments in renewable and low-emission energy sources
  • raising capital for expansion into new business segments and modernisation of existing infrastructure

How the PGE Group responded to mitigate risks How the PGE Group responded to enhance opportunities
  • development and implementation of a new distribution model concept – a package of investment projects and process changes to adapt infrastructure to new electrification-related challenges
  • construction of large-scale heat pumps and electric boilers
  • modernisation of the grid infrastructure
  • development of telemetry and IT tools to improve grid management
How the PGE Group responded to mitigate risks How the PGE Group responded to enhance opportunities
  • development and implementation of a new distribution model concept – a package of investment projects and process changes to adapt infrastructure to new electrification-related challenges
  • construction of large-scale heat pumps and electric boilers
  • modernisation of the grid infrastructure
  • development of telemetry and IT tools to improve grid management

How the PGE Group responded to mitigate risks How the PGE Group responded to enhance opportunities
  • discontinuation of new investments in coal-fired generation – adaptation of the grid to a two-way energy flow model
  • optimisation of the retail energy portfolio
  • implementation of tools allowing for more precise forecasting of demand and energy prices
  • inclusion of services and distributed energy installations in the offering
  • expansion of the energy storage (battery) portfolio
How the PGE Group responded to mitigate risks How the PGE Group responded to enhance opportunities
  • discontinuation of new investments in coal-fired generation – adaptation of the grid to a two-way energy flow model
  • optimisation of the retail energy portfolio
  • implementation of tools allowing for more precise forecasting of demand and energy prices
  • inclusion of services and distributed energy installations in the offering
  • expansion of the energy storage (battery) portfolio

How the PGE Group responded to mitigate risks How the PGE Group responded to enhance opportunities
  • use of strong analytical, engineering and commercialisation competencies in preparing and launching new investments
  • leveraging brand recognition in the energy market
How the PGE Group responded to mitigate risks How the PGE Group responded to enhance opportunities
  • use of strong analytical, engineering and commercialisation competencies in preparing and launching new investments
  • leveraging brand recognition in the energy market

How the PGE Group responded to mitigate risks How the PGE Group responded to enhance opportunities
  • detailed analysis of the potential changes in demand for district heating and adjustment of the future scale and structure of the generation portfolio at individual locations
How the PGE Group responded to mitigate risks How the PGE Group responded to enhance opportunities
  • detailed analysis of the potential changes in demand for district heating and adjustment of the future scale and structure of the generation portfolio at individual locations

The table presents the current and anticipated effects of material impacts, risks, and opportunities on the business model, value chain, strategy, and decision-making process, as well as the manner in which the PGE Capital Group has responded or plans to respond to these impacts, including any changes it has made or intends to make to its strategy or business model as part of efforts to mitigate identified material impacts or risks or to seize identified material opportunities.

Previous page
Next page
Search results