ENVIRONMENTAL IMPACT AND CLIMATE ACTIONSCarbon footprint

PSE carbon footprint calculations were performed in accordance with the international GHG Protocol Corporate Accounting and Reporting Standard. The analysis of greenhouse gas emissions has been carried out by the organisation for several years, and continuous efforts are being made to improve the methodology used. In this year’s calculations, we decided to expand the analysis of the volume of greenhouse gas emissions resulting from our operations to include another category related to our value chain (Scope 3, cat. 8 – leased assets, in which we included emissions resulting from the use of the leased office of ZKO in Warsaw, which we do not control). In addition, calculations for some of the categories were recalculated to update and maintain consistency in the calculation approach between years. We expanded the analysis of emissions resulting from purchased goods and services, increasing the scope of contracts included. We excluded from the calculation for Scope 3 the reporting of energy delivered to end users, taking into account the recommendations of ENTSO-E (European Network of Transmission System Operators for Electricity).

Our baseline year – i.e. the year for which we calculated greenhouse gas emissions and against which we compare emissions in the subsequent years – is 2017. Due to the limited availability of some of the data and in order to keep the results comparable, for Scope 3 we decided to take 2022 as the baseline year.

We aim to further broaden the view of our company’s impact on the climate, expand our carbon footprint calculations, improve the quality of the data used in the calculations, and more accurately identify opportunities for action that PSE can take to reduce this impact in the coming years.

The decreases in GHG emissions in Scopes 1 and 2 relative to 2022 are mainly due to a reduction in electricity transmission losses between these years, and the changes relative to the baseline year (2017) were influenced by a decrease in average emission factors for purchased electricity (in the location-based method – the average emission factor for Poland, in the market-based method – the emission factor for Poland’s residual mix).

In 2023, more than 76 percent of greenhouse gas emissions in PSE’s carbon footprint (according to the market-based method) resulted from electricity generation used to cover losses incurred in the electricity transmission process (Scope 2 and Scope 3 Well-to-Tank emissions). GHG emissions related to the production of purchased goods and the performance of services, most of which were contracts for modernisation and construction works, accounted for more than 20 percent of the carbon footprint. Thus, more than 96 percent of PSE’s Scope 1, 2 and 3 emissions were strictly related to carrying out the activities of the power system operator, which is required to cover energy losses arising from transmission and maintain the distribution network (taking into account modernisations, repairs and investments).

The remaining emissions represent mainly the consumption of electricity 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 by company cars. Greenhouse gas emissions associated with business travel, commuting and the management of waste generated together accounted for about 0.2 percent of the carbon footprint in Scopes 1, 2 and 3.

Sources of data and emission indices

The energy and fuel consumption data came from invoices and internal registers. Emissions of SF6 and HFC (hydrofluorocarbons – greenhouse gases) were calculated on the basis of gas refilling levels. The distance travelled by air was calculated on the basis of the internal register and flight routes. Information on the types of waste transferred to third parties for disposal came from internal records. 

For fuels, electricity (location-based method) and heat emission indices and calorific values were taken based on data from the National Balancing and Emission Management Centre, whereas for SF6 and HFC gases, the GWP100 indices were taken in accordance with the 5th Report of the Intergovernmental Panel on Climate Change (IPCC). In emission calculations for electricity according to the market-based method, the residual mix factors published by the Association of Issuing Bodies were used. Emission indices for air travel, commuting, and for fuels 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 taken from the DEFRA (Department for Environment, Food and Rural Affairs in the UK Government) database. Emissions for purchased goods and services were calculated using the financial method (spend-basis) and emission indices taken from the EXIOBASE database.

No biogenic greenhouse gas emissions were identified. The greenhouse gas included in the emission indices for fuel and electricity is (according to the location-based method) and heat is CO₂. The greenhouse gases included in the emission indices from the Exiobase database (financial factors used in calculations for purchased goods and services) and the DEFRA database (emissions for fuel and energy on a Well-to-Tank basis, waste management, air travel, employee commuting) are CO₂, CH₄, N₂O. Direct emissions of HFCs and SF₆ were also included in the calculations.

The carbon footprint is the sum of greenhouse gas emissions caused directly or indirectly by a person, organisation, event or product. It includes the 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 tonne (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