PSE's carbon footprint calculations were performed in accordance with the international GHG Protocol Corporate Accounting and Reporting Standard. 2017 was taken as the base year, as the reporting period for which PSE carbon footprint was first calculated. In this year's calculations, we have decided to extend the analysis of the volume of greenhouse gas emissions resulting from our activities to include further categories related to our value chain (scope 3) and an additional source of emissions in scope 1. Relative to the previous year, we have included in the calculation emissions related to the use of jet fuel and emissions related to the distribution of that fuel (so-called Well-to-Tank emissions) in Scope 3 category 3. We also calculated the emissions resulting from purchased raw materials and services, as well as employee commuting. We aim to broaden our view of the impact of our company on the climate in the coming years, expand our carbon footprint calculations, acquire data for high-quality calculations, and more accurately identify opportunities for actions that PSE can take to reduce this impact.
ENVIRONMENTAL IMPACT AND CLIMATE ACTIONSCarbon footprint
PSE manages the operation of the power system in Poland. While ensuring the continuity of energy supplies to all regions of our country, our organisation recognises the impact of its activities on the climate and takes steps to monitor this impact on an ongoing basis.
The tool PSE uses to measure this impact is to calculate its carbon footprint. Carbon footprint was adopted as a fixed indicator taken into consideration in evaluating the performance of our organization and is used in managing the company.
We performed the calculations for:
- activities carried out by the entire organisation, i.e. the Headquarters in Konstancin-Jeziorna and branches (ZKO), excluding ZKO in Warsaw,
- the tasks of the transmission system operator set forth in the regulations.
In 2022, PSE's carbon footprint was:
- by the location-based* method – 3,647,435 tons of carbon dioxide equivalent. In year-on-year comparisons (y/y), emissions decreased by 3 percent, and compared to 2017 – by 13 percent.
- by the market-based* method – 3,647,435 tons of carbon dioxide equivalent. Compared to 2021 there was a 3 percent decrease in emissions, and compared to 2017 which is the baseline year, a 22 percent reduction.
PSE's lower emissions compared to the baseline year according to the location-based method are largely due to a reduction in the amount of energy returned from the grid to end users and a decrease in the emission rate of electricity in Poland. Taking the emission indices for electricity according to the market-based method into account, a change of electricity provider resulting from a modification of the method of contracting energy purchases contributed to a 33 percent emission in scope 2 as compared to the baseline year.
The year-on-year decrease in emissions (by 3 percent) was primarily due to a decrease in the amount of energy returned from the grid to end users.
More than 56 percent of PSE's greenhouse gas emissions are accounted for by the electricity sent over our grids to end users, and another nearly 42 percent is due to electricity generation used to cover losses incurred in the power transmission process (Scope 2 and Scope 3 Well-to-Tank emissions). Nearly 98% of PSE's scope 1, 2 and 3 emissions result from the operations of the power system operator.
The remaining emissions are mainly due to electricity consumption for technical purposes by substations, electricity and heat consumption in our buildings, emissions of SF6 – the gas used as an insulator in substation equipment, and fuel combustion in company cars as well as the purchase of raw materials and services necessary to perform PSE services. Greenhouse gas emissions associated with business travels and the management of the waste generated together account for less than 0.1 percent.
It is worth noting that the additional categories included in Scope 3 did not increase PSE's carbon footprint on an annual basis. In 2022, a clear increase in emissions can be seen in categories 5 and 6. However, emissions from these categories account for a very small share of the organization's carbon footprint, so their increase did not significantly affect total emissions.
Data sources and emission indices
Data on energy and fuel consumption are based on invoices and internal records. Emissions of SF6 and HFC gases (hydrofluorocarbon greenhouse gases) were determined based on gas refilling levels. The distance traveled by airplane was determined based on internal records and flight routes. Information on the types of waste transferred to third parties for disposal in 2022 came from internal records.
For fuels, electricity (location-based method) and heat emission indices and calorific values based on data from the National Balancing and Emission Management Center were adopted in the calculations, for heat the index published by the Energy Regulatory Office was adopted, for SF6 and HFC gases GWP100 indices were adopted according to 5. The report of the Intergovernmental Panel on Climate Change (IPCC). Emission indices for electricity under the market-based method in 2022 is the same as in the location-based method due to the purchase of energy on the exchange, for which a specific index is not available. Emission indices for air travel and for fuel and energy on a Well-to-Tank basis (emissions associated with oil extraction and processing, transport of used fuels to stations/end user, and transmission losses in the case of electricity) were adopted from the DEFRA (Department for Environment, Food and Rural Affairs in the UK Government) database. Emission indices for purchased raw materials and services are also taken from DEFRA's database, and financial indices are taken from EXIOBASE, BEIS and EPA databases.
No biogenic greenhouse gas emissions were identified. The greenhouse gas included in the emission indices for fuel, electricity and heat is CO2. The greenhouse gases included in the emission indices from the DEFRA database (air travel, emissions for fuel and energy on a Well-to-Tank basis, waste management) are CO2, CH4, N2O.
The carbon footprint is the sum of greenhouse gas emissions caused directly or indirectly by a person, organisation, event or product. It includes emissions of carbon dioxide, methane, nitrous oxide and other greenhouse gases expressed in CO2 equivalent. An organisation's carbon footprint includes the emissions caused by all of its operations. Its measure is MgCO2e – a ton (megagram) of carbon dioxide equivalent.
Carbon footprint is one of the key tools of modern environmental management. It is international in nature and is increasingly being used by entrepreneurs as one of the primary methods to improve the efficiency of business operations.