Integrated report 2020
From year to year, the integrated report becomes an increasingly important element of communication. The growing role of ESG factors makes this method of presenting information about the company – online, combining elements of financial and non-financial reports – a kind of standard among companies that care about the best communication with various groups of stakeholders. That is why we try to ensure that each subsequent integrated report contains information that meets the expectations of readers and presents the Group, its activities and its idea for the future in the most accessible way. The Integrated Report 2020 is special for us – in October, a new strategy until 2030 with a 2050 perspective was announced. Therefore, this document became the axis of the report, at the same time determining the group’s vision for the future, but also significantly modifying the target business model of the Group. We are trying to show all of this now so that you can follow the progress of these activities.
This report was prepared with the use of selected indicators from the reporting standard of Global Reporting Initiative (GRI), version Standards, and is based on guidelines from the International Integrated Reporting Council (IIRC).
This is the main objective of our new strategy, which is naturally new to this integrated report. We present our path and planned activities to achieve the goals of the strategy. Our development will be sustainable. We present how at PGE we understand the concept of sustainability of our activities.
This concept is not new to our reports, but it is currently taking on a new meaning, especially in the context of governmental work on the transformation of the power sector, which took the form of specific documents and agreements. The envisaged creation of the National Energy Security Agency, which will acquire the coal assets of the PGE Group, will significantly change the business model, and at the same time will release the investment potential, which will be focused on low- and zero-emission sources. In accordance with the idea of integrated reporting, we try to reflect how the changes that PGE will undergo will affect the change of our business model. We do not forget about changes in the capital area.
In the power sector, climate and environmental issues have always been important, but in the light of the increasingly faster climate change and the following climate protection declarations at the EU or global level, PGE Group pays more and more attention to the identification of risks, but also opportunities related to the climate and current social trends related to climate protection.
We are always guided by the idea of implementing investments with a satisfactory rate of return. However, bearing in mind the wide interest in the Group’s plans, which assume expenditures at the level of approx. PLN 75 billion over the next decade, we present in the report the decision-taking model in the Group and emphasize the special role of the Investment Committee. However, the decision is only the first step – we also describe how we monitor the life cycle of investments that have been approved for implementation.
Bearing in mind the impact of the PGE Group on the functioning of local communities and the economy, we collected detailed data from the group’s companies, which we are trying to present in an interactive form, broken down by types of taxes and fees and geographical area.
We take into account the growing interest of our stakeholders in ESG issues. Therefore, in the Integrated Report, we show how we try to take them into account in our operational and Group management processes.
Based on integrated reporting guidelines from the IIRC, the main aim of integrated reporting is to explain to financial capital providers how the organisation creates value over time. This is why our report contains many important financial and market information that we are asked about by investors, analysts, bondholders and banks which we meet in our everyday work. Presentation of non-financial data is already a necessity for every responsible company. We see growing interest from investors in this data. In editing this report, we also aimed at creating content that may be used by other stakeholders interested in the process of creating value over time by our organisation, including especially employees, clients, suppliers, business partners, local communities, law-makers, regulators and decision-makers.
Wherever possible, we linked the content to additional materials from the Report or to external sources that supplement it. In editing the text, we tried to keep it concise, as online content should be. Thanks to the support of environmental, HR department, innovation, controlling and reporting analysts, we were able to present in the report complete data from numerous domains of our activities (see what data we collected for this year’s report).
As a leader in the energy transition, we set ambitious goals and standards – it will be no different in the area of reporting. We have tried to collect information and data that will bring you closer to the activities of the PGE Group in a broad perspective and will show in one Report the mutual relations between economic, social and environmental issues.