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

The study shows financial and non-financial data in an integrated manner, as well as detailed calculations of the 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 to show how our Company responds to these challenges, particularly in the implementation of activities and strategic initiatives. The study also shows the scale of PSE’s economic and social impact and responds to the expectations of our stakeholders to present financial and non-financial issues.

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

Chapter title: We have prepared the report on the PSE’s impact on the market and economy according to a methodology developed by an external expert based on the Wassily Leontief model, also called the inter-industry flow model or Input-Output model. This method focuses on examining the relationship between industries and companies. The model is based on the most recent inter-industry flow tables at the current base prices for domestic output, published by the Central Statistical Office in 2019. We used three key areas of economic growth to show how our business impacts the economy and the society: added value, jobs and wages.

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

We present data for the period from 1 January 2022 to 31 December 2022, and selected aspects for 2023 as well, allowing us to show an up-to-date and complete picture 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 2021–2022, and even in a five-year perspective. We would like to show the trends following a series of changes carried out 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 2022.

In accordance 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 preceded:

• an analysis of our organisation’s responsibility towards the economy and market, the society and employees as well as the natural environment and climate,
• a review of the 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 own indicators,
• a review of documents defining the challenges for business in the context of sustainable development (Sustainable Development Objectives),
• analysis of internal documents.

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

2. Prioritization

A key step in the reporting process is the social dialog 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 the PSE’s impact on the issue and the type of impact (positive, negative, both positive and negative). Respondents then rated the strength of the PSE’s possible impact on the issue on a scale of 1–5.

Our main stakeholders:

Figure: PSE stakeholders

PSE’s impact on each category by external stakeholders

PSE’s impact on each category by internal stakeholders

3. Validation

A survey analogous to the one described above was also conducted among PSE management. The result of this action 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 for confirming the materiality matrix containing the key topics to be reported and the concept of the report structure.

Figure: Approach to the report structure

Based on the results of the stakeholder opinion survey, as well as internal studies, and qualitative analysis, a list of 11 key issues in 4 areas of responsibility related to the following was prepared:

• market,
• society,
• natural environment,
• environment,

work environment.

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

Fig. Materiality matrix 

The list of relevant topics has changed significantly compared to the one identified a year ago.

The following are new issues presented in the report:

• PSE’s impact on the national economy and public finances;
• Supply chain – building standards for ethical cooperation, including working for competitive integrity and against corruption;
• PSE’s impact on the adaptation of the Polish Power System to the energy transition.

Stakeholders of our organisation as the greatest impact of PSE identified impact in the area of operational activities performed, especially in the context of ensuring the security of electricity supply and the development of the National Power System. Given the external pressures – Russian invasion of Ukraine, the need to adapt infrastructure to the energy transition, and the rise of energy prices for users – this responsibility also implies an indirect impact on defined social and environmental issues.

The company has a significant impact on the equality of working conditions and the extensive development of employees both within and outside of their positions.

Environmental issues were not indicated as significant in the survey conducted.

The key topics identified above are described in detail in the report; with a presentation of both the approach to managing them and the corresponding indicators.

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

The interviews allowed for defining an additional 5 relevant topics that were not highlighted through the quantitative analysis and will be developed comprehensively in the next PSE impact report for 2023.

Additional issues:

• Cyber-security of the power sector
• PSE’s impact on reducing carbon footprint in the power sector
• Adaptation of organisations to climate change
• Raising standards of cooperation with contractors and subcontractors in the area of environment and OH&S
• PSE's flagship community projects (including the “WzMOCnij swoje otoczenia” [Enhance your surroundings] 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’s 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.