At PGE CG, ensuring safe and supportive working conditions for its own workforce is a top priority. The Group focuses on preventing negative impacts on its workforce and mitigating or remedying their consequences.
In addition, PGE continuously seeks to identify and manage material risks, while also leveraging opportunities that may contribute to improving working conditions and overall employee satisfaction. Although the assessment of ESG-related risks and opportunities is a process separate from the corporate risk management process at PGE CG, both processes are complementary in terms of data sources used for their implementation and the cross-application of results.
Due to the scale of the Group’s operations and the specificity of its activities in the area of own workforce management, it is difficult to clearly distinguish which actions are aimed at managing significant impacts, which are focused on risk mitigation, and which increase the likelihood of capitalising on opportunities. Most initiatives in this area simultaneously address multiple objectives (e.g. measures to reduce employee turnover risk may also enhance opportunities for increasing employee engagement).
In the section below, PGE Group assumes that for each topic, it describes the relevant material matter, its context, and the actions taken, without explicitly categorising them (e.g. as remedial measures, risk mitigation actions, or opportunity utilisation, or whether they are preventive or corrective). This is due to the fact that many of these actions simultaneously affect multiple criteria and are based on a synthesis of data from various sources. PGE Group also highlights the potential future impact of these initiatives.
PGE CG undertakes numerous actions aimed at ensuring employment stability and protecting the interests of its own workforce. Among the activities carried out in 2024 was the ongoing implementation of the Corporate Principles of Recruitment and Employment at PGE CG, incorporated into the Company Collective Bargaining Agreement (CCBA) and the remuneration regulations of individual companies. These principles stipulate that the standard form of employment at PGE CG is a permanent employment contract. The level of implementation is evidenced by the share of permanent employment contracts (as presented in section S1-6).
As part of the key actions undertaken in 2024 to ensure secure employment, an agreement was concluded on 22 October 2024 in Warsaw concerning stable and secure working and pay conditions for employees, in the context of the transfer of workplaces or their parts carried out in preparation for the transformation of the power generation sector and the lignite mining industry, as well as the separation of coal-fired generation and mining assets. One of the signatories of this agreement was PGE GiEK S.A., and its provisions were approved by representatives of the Management Board of PGE S.A.
The effectiveness of the actions taken is monitored through the analysis of the number of permanent employment contracts across the Group. However, the Group has not defined a specific target in this area.
As part of its efforts, PGE CG adjusts working conditions to the needs of its own workforce wherever possible.
In 2024, the following working time-related actions were implemented:
- At PGE S.A., due to regulatory changes, selected employees were assigned to a three-shift schedule. Employees performing shift work were granted wage supplements exceeding statutory requirements.
- At PGE Energia Ciepła S.A., digital tools for working time management were introduced (such as an electronic attendance register and a system for ordering overtime), allowing for better control over compliance with working time standards. These integrated systems help employees more effectively balance professional and personal responsibilities and, most importantly, exercise their entitlements.
- At PGE Energetyka Kolejowa S.A., employees working under an equivalent working time system in positions requiring continuous operation (24/7/365) are entitled to an additional 8 days of leave per calendar year.
Regular monitoring and periodic reporting on working time allow for effective management in this area. PGE continuously monitors the number of overtime hours—particularly in relation to employee absences—and undertakes appropriate measures based on the indicators observed.
In accordance with the adopted corporate rules, the companies forming part of the PGE Group are required to develop job classification grids and pay scales that reflect the value of each position, including the value of assigned tasks. Depending on local circumstances, individual companies establish pay policies based on the framework set by the Corporate Centre.
Employers continuously conduct market analyses of salary levels within the sector. Stakeholders (employees) are involved in processes related to adequate remuneration through their representatives (e.g. through wage grid negotiations).
To monitor the effectiveness of actions taken in the area of adequate wages, indicators such as employee turnover rates and their trends are analysed, as well as the dynamics of wage growth and the ratio of controlled fixed costs to the overall wage costs in PGE CG.
When analysing 2024 from the perspective of the topics raised by trade unions, two main categories should be highlighted. First and foremost were issues related to the energy transition. Importantly, the social dialogue regarding the energy transition was tripartite in nature – involving also representatives of the Government.
The subject of interest for employees’ representatives was the separation of coal assets from PGE CG and their transfer to the National Energy Security Agency. Regardless of the final concept concerning coal assets, the social partners – both from the lignite mining and energy sectors – expressed their expectation that employee interests be safeguarded during the transition period, preferably through social agreements.
As a result of the discussions between the parties, on 22 October 2024, trade unions and employers in the lignite mining sector signed an Agreement on stable and secure working and pay conditions for employees, in the context of the transfer of workplaces or their parts carried out in preparation for the transformation of the power generation sector and the lignite mining industry, as well as the separation of coal-fired generation and mining assets.
Trilogue discussions on the transformation of the energy sector, as well as the cooperation of social partners in various segments of PGE CG in the context of the inevitable changes in the energy industry, will certainly continue in the near future.
The second category of issues most frequently raised in 2024 related to employee remuneration. In 2024, at almost all employers within PGE CG where trade unions operate, pay agreements were concluded, ensuring increases in employee remuneration. Further details on collective agreements can be found in the section on Collective Bargaining.
The social situation at all levels of social dialogue is monitored on an ongoing basis by the Department of Social Dialogue and Relations (DSDR) and by the social relations units in the key companies of the Group. The main tool used for this purpose is multi-aspect reporting. The data aggregated include, among others: ongoing social developments at individual employers and within business segments, collective disputes, collective agreements (especially concerning pay rises), trade union membership, and costs generated by union activities. In addition to these formal tools, the social relations units of PGE S.A. and segments of PGE CG remain in regular working contact, which enables efficient management of matters requiring joint action.
PGE S.A., as part of the coordination of the social dialogue area, maintains a database of key acts of collective labour law (collective agreements, contracts, and arrangements) applicable to the Group’s employers.
Employers within PGE CG ensure the functioning of and cooperate with works councils. The initiative to establish a works council at a workplace is taken by employees, and employers are obliged to cooperate with them. Members of the works councils are elected by employees for a four-year term. Their activities are conducted in accordance with the provisions of the Act on Informing and Consulting Employees.
At PGE S.A., a seven-member Works Council is in operation. On 10 October 2024, the parties agreed and signed a Cooperation Agreement, which regulates organisational and technical matters and extends the rights of the Works Council beyond those provided for in the Act on Informing and Consulting Employees. In addition, the employer has submitted to the Works Council for opinion matters which, under the law, require cooperation with employee representatives, such as changes in the organisational structure or the organisational rules.
Since 2023, PGE S.A. has been covered by a Company Collective Bargaining Agreement (CCBA), which at the end of 2024 applied to 1,159 employees employed under employment contracts.
Among the key initiatives in 2024 in the context of collective bargaining, the implementation of solutions supporting work–life balance, as well as the work–life balance directive implemented in Poland, should be highlighted. These actions have had a positive impact on the Group’s own workforce, contributing to increased employee efficiency and loyalty, while simultaneously reducing absenteeism and turnover. Individual employers have adapted their internal regulations, such as work rules, CCBAs, and working time procedures, to comply with the legal act designed to facilitate the reconciliation of professional and private obligations:
- PGE CG respects employees’ rights and implements solutions that take into account specific entitlements, such as preferences for parents of young children (under 8), the possibility of requesting flexible working arrangements, additional carer’s leave, and emergency leave
with partial pay. - In most PGE CG companies, employees can make use of flexible working hours (a two-hour window during which the employee may start work and finish after the applicable working time, usually eight hours). This enables a better balance between work and private life and accommodates individual preferences. This option is mostly available to administrative and office workers, as the nature of production work and work on power networks does not allow for such flexibility.
- PGE Group companies define overtime limits in their internal work rules or CCBAs. In the case of overtime work, employees may receive time off in lieu or overtime pay, often under more favourable terms than those provided for by law. Employers such as PGE Energia Odnawialna S.A., ZEW Dychów Branch, require line managers to estimate overtime in advance, which facilitates better resource planning and helps to minimise overtime hours.
Further activities supporting work–life balance include:
- the widespread use of remote work wherever possible. Most PGE CG companies have introduced various forms of remote work: full remote, partially remote with a defined scope, partially remote without a defined scope, and occasional remote work, all in accordance with applicable regulations;
- allowing employees and managers to flexibly manage working time, not only within the limit of 24 days provided by the Labour Code, but also beyond that, without the need to define in advance the percentage of time worked per week or month;
- part-time employment, individual work schedules, entitlements related to childcare (in selected companies, employees receive additional support such as co-financing of nursery and kindergarten fees, or school supplies allowances), and support for persons with disabilities;
- benefits offered by individual companies, including cafeteria platforms that allow employees to choose benefits tailored to their needs in areas such as health, recreation, or culture;
- medical packages supporting health and prevention, as well as a psychological support platform, offering psychological, psychodietetic, and physiotherapeutic consultations, along with numerous resources on maintaining work–life balance;
- promoting health awareness through flu vaccination campaigns and preventive and health-promoting actions, such as breast, testicular, and skin cancer prevention programmes: Discover What Your Skin Hides, bra fitting workshops, testicular ultrasound exams, or PSA blood tests.
In PGE CG, compliance with the law is of key importance – daily rest limits are strictly adhered to, which also significantly supports the reconciliation of private and professional life.
These activities are carried out within regular operational budgets (including personnel costs) or through actuarial reserves (e.g. overtime), which are properly secured in the financial plan and subsequently forecasted in stages.
Actions are implemented in line with current business needs, communication plans, and in response to stakeholder expectations. In the coming years, PGE CG plans to continue its efforts to support work–life balance, taking into account employee needs and the evolving regulatory environment. Particular emphasis will be placed on the further development of initiatives supporting employee well-being, including mental health and flexible working arrangements.
The health and safety of employees is a top priority for the PGE Capital Group, as reaffirmed by the updated Occupational Health and Safety (OHS) Policy adopted by the Management Board of PGE S.A. in 2024 (as described in section S1-1).
The Management Board of PGE S.A. established the PGE OHS Committee, which supports the development of the Group’s OHS policy and safety culture. The Committee serves as an advisory body to the Management Board of PGE S.A., monitoring the OHS area and initiating improvement actions. The Committee is chaired by the Vice-President of the Management Board of PGE S.A. for Operations, and its members include representatives of companies with a high level of occupational risk (PGE GiEK S.A., PGE Dystrybucja S.A., PGE Energia Ciepła S.A., PGE Energia Odnawialna S.A., PGE Baltica sp. z o.o., PGE Energetyka Kolejowa S.A.). The work of the Committee is supported by its Secretary, the Management Board’s Plenipotentiary for OHS Policy.
Key OHS activities implemented by PGE CG in 2024.
Effectiveness of OHS activities is monitored through:
- The OHS incident monitoring system within PGE CG, combined with experience sharing;
- Regular monitoring of the situation by the Management Board of PGE S.A. – including the implementation of weekly reports to strengthen PGE S.A.’s oversight of PGE CG in the area of OHS, with weekly summaries of the situation and relevant follow-up actions;
- Inspections by PGE S.A. employees of companies where serious OHS incidents have occurred, together with recommended actions;
- The requirement for companies to prepare an Annual Programme for Improving OHS Conditions, including, among other things, conclusions from the company’s OHS status review, OHS incident analysis, and tasks set out in PGE CG’s Framework OHS Improvement Plan, as well as ensuring implementation of this programme.
In addition to the tasks defined in the 2024 Framework OHS Improvement Plan, companies also identified local actions based on employees’ suggestions, OHS status reviews, audit conclusions, etc.
The average task completion rate reported in 2024 was 96%.
The tasks from the Framework OHS Improvement Plan generally do not require significant operational expenditures. In local OHS improvement or enhancement plans, companies identify necessary measures, including investment-related actions. These may involve substantial costs, but they are often part of broader investment projects and cannot be separated. For instance, when building new installations, some costs relate to compliance with OHS regulations, but certain components may also serve other functions.
Actions taken in response to fatal accidents within PGE CG
Following fatal accidents in 2024, PGE CG launched a broad range of measures aimed at eliminating such incidents in the future. These included:
- Publication of a new OHS Policy, including minimum requirements for the OHS management system and the introduction of the Life-Saving Rules as a tool to support operational discipline. These efforts are also reflected in the 2025 OHS Improvement Framework Plan (see section S1-1 for details).
- Establishment of the PGE CG OHS Committee to support the development of OHS policy and culture. The Committee acts as an advisory body to the Management Board of PGE S.A., monitors the area of OHS, and initiates improvement actions. One such initiative was the awareness campaign entitled ‘Don’t let there be nothing left of you.’
In the field of occupational health and safety within PGE CG, the following OHS targets have been adopted up to 2030:
- Implementation of minimum OHS management system requirements by PGE CG companies employing own workforce or contractors.
- Elimination of fatal accidents involving own workforce or contractors working on the premises of PGE CG companies or on equipment operated by PGE CG companies.
- 50% reduction in the high-risk accident frequency rate, using 2024 data as a baseline.
- 20% reduction in the frequency rate of workplace accidents resulting in sick leave, using 2024 data as a baseline.
In setting the objectives, lessons learned were taken into account and consultations were held within the OHS Committee and the PGE CG OHS network. In addition, suggestions for updating the policy were collected via an online form available through the IPK intranet.
For PGE CG subsidiaries employing workers, annual OHS performance indicators are established. In 2024, the following indicators were adopted:
- The LTIFR (Lost Time Injury Frequency Rate) for 2024 must be lower than the PGE CG rate for 2022 or below the average for 2021, 2022, and 2023 (target for large companies).
- Zero fatal workplace accidents involving the company’s own employees in 2024.
- Zero fatal workplace accidents involving contractors or subcontractors in 2024 – applicable to incidents occurring on premises belonging to PGE CG.
The achievement of targets 1–3 relating to accident frequency is continuously monitored through the workplace accident reporting system and weekly reports. In addition to the tasks defined in the 2024 Framework OHS Improvement Plan, companies also identified local actions based on employees’ suggestions, OHS status reviews, audit conclusions, etc.
The average task completion rate reported in 2024 was 96%.
The tasks from the Framework OHS Improvement Plan generally do not require significant operational expenditures. In local OHS improvement or enhancement plans, companies identify necessary measures, including investment-related actions. These may involve substantial costs, but they are often part of broader investment projects and cannot be separated. For instance, when building new installations, some costs relate to compliance with OHS regulations, but certain components may also serve other functions.
Actions aimed at balancing the employment ratio of women and men depend on the nature of the positions within a given organisation. Due to the specific characteristics of the industry (technical in nature), the employment structure within the PGE CG is not uniform, with a higher proportion of men employed in production-related areas. Despite this profile, in 2024, PGE CG monitored the gender structure of its workforce and regularly analysed the gender pay gap. The results of these activities are presented in the relevant sections.
PGE plans to launch a networking programme for selected companies aimed at supporting women in their professional development, facilitating the exchange of experience and jointly identifying solutions to current challenges. The programme will be implemented using funds secured in the 2025 financial plan and will help strengthen the position of women within the organisation.
In the area of training and skills development for its own workforce, the PGE Capital Group has primarily identified opportunities and the potential to strengthen its positive impact by ensuring employees have the necessary competences and by fostering a sense of empowerment among its staff.
The actions undertaken reflect the assumptions of PGE’s development policy described in section S1-1 of this Statement. Most companies within the Group offer a wide range of training sessions and development programmes tailored to various job roles and market requirements. Every employee has access to career development opportunities, regardless of their position or form of employment (employment contract or internship)13. Equal access to development is ensured for all employees, taking into account the specific nature of their roles. Each organisational unit identifies training needs and plans its training budget in a way that supports the business strategy and promotes employee engagement.
Key training and skills development activities carried out in 2024 for the Group’s own workforce.
13 With the exception of Eltur Serwis, where one year of service is required to access training and courses, and three years for co-financing of university studies.
As part of efforts aimed at mitigating negative impacts and risks, and supporting positive impacts and opportunities in the area of measures against violence and harassment in the workplace, PGE CG continuously implements ongoing activities such as training sessions, awareness campaigns and support systems. Through these efforts, PGE promotes a culture of respect, equality and inclusiveness, creating a work environment in which every employee feels safe and is able to fully realise their professional potential. These actions are in line with the Diversity Policy and the Procedure for Preventing Mobbing and Discrimination. Key activities carried out in 2024 include:
- Building organisational culture and running corporate initiatives aimed at raising awareness of what constitutes mobbing and other forms of violence (both physical and psychological), as well as their negative impact on workplace functioning. The topic of inappropriate behaviour, including the promotion of reporting channels and the role of managers in building a partnership-based organisational culture, was included in regular meetings of HR Business Partners with managers.
- Education on counteracting mobbing, discrimination, violence and harassment. These areas formed a significant part of managerial training delivered under the “Power of Leadership” project (referred to in the section on training and skills development). Modules covering discrimination, violence (including verbal), and mobbing were delivered through training and articles published in the company magazine ‘Pod Parasolem’.
Further educational initiatives are planned for the coming years, aiming to raise awareness of mobbing, violence and other inappropriate behaviours, as well as the means to prevent them. PGE is also planning an educational campaign on the mechanisms of mobbing (including psychological mechanisms).
The approach to implementing or enabling the application of remedial measures to mitigate negative impacts (if they occur) across all thematic units related to own workforce – including the applicable cooperation frameworks and actions taken in response to reported cases of suspected inappropriate behaviour – is described in ESRS G-1, and, in the context of violence prevention measures, in S1-17.
In 2024, activities were implemented at the level of individual companies in accordance with the declarations of the Diversity Policy within PGE CG. Companies shape their actions in the spirit of respect for diversity, adapting initiatives to their own specific nature, capabilities and business environment.
As part of the compliance programme, some companies conducted an analysis in 2024 of the possibilities for implementing diversity and inclusion measures. The results of this analysis will serve as a basis for planning initiatives in the coming years.
Actions implemented by individual companies.
For 2025, further actions supporting diversity are planned based on the findings from analyses and the implementation of workshops on neurodiversity, as well as other educational activities (in line with the 2025 financial plan). In 2025, PGE as the corporate centre will also appoint a Diversity Officer. PGE CG treats diversity as a priority area, which is intended to support the development of an organisational culture based on collaboration and mutual respect.
PGE CG implements comprehensive data protection procedures in line with the overarching General Procedure – Guidelines on Personal Data Protection within PGE CG. These include training sessions, audits, and compliance monitoring systems. Thanks to these measures, employee privacy is safeguarded, and data management is carried out transparently and in compliance with applicable regulations. Among the key actions taken in 2024 was the implementation of obligations arising from these procedures by individual companies.
Key planned actions of PGE CG include continuing current measures and addressing areas requiring improvement in the field of privacy protection based on annual reports and summaries, thereby contributing to the achievement of set objectives.
The following performance indicators were defined for 2024:
- Launching a project to effectively regulate data retention within the company.
- Undertaking activities to raise awareness of the management regarding personal data protection.
- Holding an informational campaign for directors and managers on privacy by design.
Monitoring of goal achievement through KPI-based measurement of individual tasks.
The effectiveness of implemented activities is also monitored by PGE CG companies reporting to the Personal Data Protection Office (UODO) in relation to submitted breach explanations.
The actions described in section S1-4 do not require dedicated resources or significant expenditure.