PSE has been publishing annual social reports since 2014. The study you have before you is our seventh report on the economic, environmental and social impact on Poland’s development, as well as on responsible business practices and organisational governance. It is also the tenth social publication of our organisation, and the eighth integrated version presented in an interactive form.

The document shows financial and non-financial data in an integrated manner, as well as detailed calculations of PSE’s impact on the economy, public finances, society and the environment.

The purpose of the report is to give you an idea of the energy transition challenges facing PSE and the electricity sector as a whole, as well as how our company is responding to these challenges, particularly in the implementation of strategic activities and initiatives.

To ensure high-quality reporting, the report meets the requirements of the International Integrated Reporting Council and the Global Reporting Initiative (GRI) Standards 2021 international non-financial reporting stand.

Chapter title: We have prepared the report on PSE’s impact on the market and the economy in accordance with the methodology developed by a third-party expert based on the Wassily Leontief model, also called the inter-industry flow model or Input-Output model. The method focuses on examining the interdependencies between sectors of the economy. The model was based on the most recent inter-industry flow tables at current base prices for domestic output. We used three key areas of economic growth to show how our business impacts the economy and society: value added, jobs and wages.  

In the report, we show the important issues in our environment.

We present data for the period from 1 January 2023 to 31 December 2023, and selected aspects for 2024 as well, allowing us to show an up-to-date and complete view of our Company’s activities There were no significant changes in the Company’s size, structure or form of ownership during the reporting period. The report does not include adjustments to information from the previous report.

Our study is an integrated report enriched with impact indicators. We report some indicators for 2021-2023, and even in a five-year perspective. We would like to show the trends following a series of changes put into effect in the organisation, processes implemented and standards improved year after year.

Link to PSE’s social reports for previous years, including those published since 2014 and containing non-financial information: https://raport.pse.pl/centrum-multimediow

The report is issued periodically, every year. The previous integrated study was published in November 2023.

In line with the international guidelines, the issue selection process was conducted in three stages:

1. Identification

The identification of issues relevant to the management of the ESG (E-environment, S-social, G-governance) area, i.e. environmental, social and responsible business practices and organisational governance – as well as the management of the company’s economic impact was preceded by:

• an analysis of our company’s responsibility towards the economy and the market, society, the natural environment and climate,
• a review of global challenges for the power sector,
• a benchmark of the most important ESG issues in the reporting of foreign and domestic energy companies,
• PSE’s accepted standards for integrated reporting, 
• a review of the previously reported issues,
• an analysis of key impact indicators, GRI indicators, and PSE’s in-house indicators,
• a review of documents defining challenges for business in the context of sustainable development (Sustainable Development Goals),
• an analysis of internal documents.

The analysis of our strategic documents and internal consultations with representatives of PSE’s organisational units made it possible to identify PSE’s stakeholder groups.

2. Prioritisation

A key step in the reporting process is the social dialogue that PSE periodically conducts with its stakeholders based on the AA1000SES standard.

The issues raised in the report were identified in an external survey conducted in 2023. As part of the survey, we ensured that all stakeholder groups can delegate their agents, inviting a wide range of key representatives of national and international entities.

The questionnaire was addressed to more than 100 representatives of all PSE stakeholder groups. Of those surveyed, 62 people completely filled out the questionnaires, meaning they answered all the questions. The analysis conducted in this manner took into account both the company’s impact (or lack thereof) on the issue and the type of this impact (negative or positive). Participants in the survey evaluated 27 topics identified by PSE as important for the company’s operations. Each issue was assigned questions about PSE’s impact on the issue concerned and the type of impact (positive, negative, both positive and negative). Respondents then rated the strength of PSE’s possible impact on the issue on a scale of 1–5.

Our main stakeholders:

Fig. 1. PSE stakeholders

PSE’s impact on each category by external stakeholder

PSE’s impact on each category by internal stakeholder

3. Validation

A survey analogous to the one described above was also conducted among PSE management. The result of this exercise was the identification of key issues for discussion in the company’s next impact report. Internal meetings and consultations with PSE’s organisational units allowed us to confirm the materiality matrix containing the key topics to be reported and the concept of report structure.  

Fig. 2. Approach to the report structure 

Based on the results of the stakeholder opinion survey, as well as internal research and qualitative analysis, a list of 16 key issues in 4 areas of responsibility related to the following was prepared:

• market,
• society,
• natural environment,
• and the workplace.

The issues considered significant in the report are presented in the materiality matrix.

Fig. 3. Materiality matrix 

To supplement the quantitative data obtained, expert interviews were conducted with representatives of various external stakeholder groups. The interviews were aimed at drilling down on the information obtained in the survey and focused on a list of the same 27 issues assessed in the questionnaire.

The interviews identified an additional 5 relevant topics that were not highlighted through the quantitative analysis.

Additional issues:

• Cybersecurity of the power sector;
• PSE’s impact on reducing carbon footprint in the power sector;
• Adaptation of the organisations to climate change;
• Raising the standards of cooperation with contractors and subcontractors in the environment and OHS area;
• PSE’s flagship community projects (including the “EmPOWER Your Environment” grant programme) and their effects as part of the good neighbour policy.

Detailed issues presented in the report are based on the Strategy of Polskie Sieci Elektroenergetyczne adopted by the Management Board, reviewed by the Supervisory Board and approved by the General Meeting of Shareholders. The management approach was presented in accordance with the procedures of conduct described in the PSE corporate governance regulations and standards. All the information presented in the report has been verified for consistency with the company’s internal documents, and supervision of activities in particular areas is provided by the management. Strategic decisions are made at the Management Board level.

The report was reviewed internally and externally. An interdisciplinary team of experts representing all organisational units of PSE worked on the content of the study, its reliability and compliance with the guidelines. The external review was conducted by an independent entity selected with an approval of the Management Board.