ESRS
[S3-4] Taking action on material impacts on affected communities, and approaches to managing material risks and pursuing material opportunities related to affected communities, and effectiveness of those actions

The PGE Capital Group undertakes a variety of activities aimed at supporting and developing local communities, especially in terms of adequate housing and security-related impacts.

The multitude of measures pursued by PGE Capital Group companies are tailored to the scale, nature, and scope of their operations. Accordingly, resources are allocated to manage material impacts, which can be categorised as follows:

Action for a just transition of coal regions

Since 2020, PGE S.A. had participated in consultations on subsequent versions of the draft Territorial Just Transition Plans for the Łódzkie and Dolnośląskie Voivodeships (with regard to the area of the Zgorzelec poviat) and the National Just Transition Plan – which are documents of key importance for the long-term security of local communities.

PGE also supplied data and forecasts to the administration, which were necessary for the subsequent update of the applicable Territorial Just Transition Plan for the Łódzkie Voivodeship (TPST WŁ).

In 2024, PGE S.A. provided local and national authorities (and ultimately the European Commission (EC)) with information and forecasts regarding the Bełchatów Energy Complex. As a result, the EC decided to maintain financial support from the Just Transition Fund (JTF) for the Łódzkie Voivodeship in the amount of EUR 369.5 million. These funds are to support, among others, workers currently employed at the Bełchatów Power Plant, as well as in the mining sector and related industries. The Zgorzelec subregion, where the Turów Power Plant is located, will in turn have the opportunity to apply for funds from the JTF as part of its next edition and can count on PGE’s support in these endeavours.

Resources from the Just Transition Fund can be used to support and develop local communities, including:

  • job creation activities,
  • employee training to facilitate re-skilling and up-skilling of workers previously employed in the coal sector,
  • restoring the economic potential of the region,
  • diversification and modernisation of the local economy,
  • projects facilitating the development of renewable energy sources,
  • projects supporting the rehabilitation of post-mining areas.

Investments in local infrastructure

The PGE Group invests in infrastructure development in the regions of its operation. This includes modernisation of power and heating networks, construction of new energy facilities, and investing in social infrastructure such as roads, schools, and healthcare facilities (financed by the PGE Foundation). In the coal-dependent regions, the PGE Group has a special role to play in the just transition process, acting as an experienced investor and initiator of measures to support local economic development.

The PGE Group takes actions to minimise the negative impact of its operations on the environment, which translates into adequate and safe housing conditions for local communities. Examples include investments in renewable energy sources, equipment and activities to reduce dust, upgrading existing plants to reduce emissions, and programmes for the rehabilitation of industrial sites.

Foundation's activities to improve housing conditions

The PGE Foundation, established in 2011, also supports activities for the benefit of local communities. For more than ten years, it has been fostering community-based initiatives that aim to improve the quality of life in areas such as education, health, culture, and ecology.

On the other hand, the Rybnik Power Plant Foundation runs educational projects for children and young people on the conscious use of energy resources and organises events integrating the local community. The PGE Group also includes the Józef Pupka PGE Foundation for the Development of Science.   It offers assistance to talented students who are unable to fully develop their abilities due to a difficult financial situation. In addition, it supports initiatives to promote education among young people with limited access to schooling.

Actions taken to mitigate negative impacts

Examples of activities mitigating the negative impact which also results from the operation of the PGE Group, implemented in 2024 on the basis of requests submitted by the community:

  • Elimination of noise emitted from the choke mounted on the PT Niedrzwica substation – after receiving a report in traditional form (letter) from a local community representative (PGE Energetyka Kolejowa S.A.);
  • During an information meeting in the municipality of Choczewo, residents were consulted in connection with the company’s plans for routing heavy vehicles to the investment site. As a result, the comments, suggestions and solutions proposed by the residents were taken into account (PGE Baltica sp. z o.o);
  • Change of production hours to end work by 10 p.m. to eliminate noise during installation work at night – an issue reported by the local community during a meeting in the municipality of Czerwionka-Leszczyny in Q1 2024 (ZOWER sp. z o.o.);
  • Removal of tree branches threatening a private property located in Słok-Młyn, neighbouring the Bełchatów Power Plant, after a report submitted in traditional form (letter) by a local community representative (PGE GiEK S.A.).

Until the publication of the Statement, no formal indicators assessing the effectiveness of activities for the benefit of the local community had been introduced in the PGE Capital Group. In 2025, the companies belonging to the PGE Capital Group plan to continue their activities focusing on local communities. Actions will be initiated at PGE S.A. to develop a relations management policy, which will include a stakeholder dialogue aimed at recognising the needs and expectations related to impact management and relations with the local community, as well as assessing the effectiveness of ongoing activities and investments. The planned activities do not require significant operational or investment expenditure.

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