Risks and opportunities in social area

Within the company and the PGE Group, we identify and manage risks in the area of employee and social issues.

The foundation of an organisation’s sustainability is the skilful identification of risks and the implementation of mechanisms to prevent their realisation. PGE’s responsible development requires a multi-dimensional and multi-level risk management system.

Identified risks and management options in the area of labour issues in the PGE Group

In labour matters, we recognise potential occupational OHS risks in the PGE Group arising from the consequences of companies’, employees’ and other persons’ non-compliance with occupational health and safety regulations and rules. Mitigating measures are present in this important area.

• Inspections of the working environment
• Training of employees in occupational health and safety and provision of job-related instructions before an employee is allowed to work in a specific position
• Employing staff with qualifications and health conditions appropriate for the needs of the company.
• Initial and periodic medical examinations
• Periodic assessment of the technical condition of buildings, equipment and installations
• Regulations governing the use of protective equipment and work tools

Another risk identified is social dialogue risk, related to failure to reach an agreement between the companies’ governing bodies and social partners, which could lead to strikes and collective disputes. We are therefore taking mitigating measures.

• Organisation of meetings regarding the market situation of the PGE Capital Group
• Meetings to present information on the manner and scope of planned changes
• Conducting employee surveys
• Ongoing analysis of trade union activities
• Dialogue with social partners

Human resources risks, resulting in undesirable personnel turnover, are managed through mitigating measures.

• Competitive remuneration system in comparison to other employers
• Regulations applicable to the recruitment process
• Employee development management
• Cooperation with secondary schools and universities providing education in relevant subjects
• Mentoring
• Training on the Code of Ethics

Identified risks and management methods in the area of employee issues in PGE S.A.

Among the employee issues at PGE S.A., as in other industries, there is OHS risk, arising from the consequences of non-compliance with occupational health and safety rules and regulations by the companies, employees and persons working for the companies. Therefore, we take mitigating measures.

• Inspections of the working environment (measurements, reviews).
• Training of employees in occupational health and safety and provision of job-related instructions before an employee is allowed to work in a specific position
• Employing staff with qualifications and health conditions appropriate for the needs of the company
• Initial and periodic medical examinations
• Regulations governing first aid in the event of an accident at work
• Periodic inspections of workplaces
• Periodic technical condition assessments (inspections of buildings and installations)/li>
• Ongoing analysis of costs related to ensuring proper conditions for the safe performance of work

As in other organisations, there is also a social dialogue risk, related to failure to reach an agreement between the companies’ governing bodies and social partners, which could lead to strikes and collective disputes. Mitigating actions in this area are:

• Organisation of meetings regarding the market situation of the PGE Capital Group
• Informing employees about the company’s current situation and future plans (effective internal communication)
• Meetings to present information on the manner and scope of planned changes
• Dialogue with social partners
• Ongoing analysis of trade union activities

The company also identifies human resources risks, resulting in undesirable staff turnover. The mitigating actions carried out in this area are:

• Implemented rules for the hiring and remuneration of employees
• Monitoring of the labour market with regard to remuneration and incentive systems
• Planning occupational development according to the needs of staff and individual business units
• Training on the Code of Ethics
• Linking salaries and incentive payments to periodic work performance assessments
• Internal and external training

Identified risks and management options in the area of social issues in the PGE Group.

In social issues in the PGE Group, as in other organisations, there is a third party damage risk, relating to the possibility of material, personal or financial damage resulting from the core business of the companies. Among the mitigating actions, the following stand out:

• Monitoring of technical condition of equipment and installations
• Inspections of the working environment
• Measurement of noise emissions and electromagnetic fields
• Use of protective measures that reduce threats to the environment
• Employee training
• Appropriate preparation of the workplace
• Periodic inspection of the state of security of facilities and individual assets

Another is the risk of infringement of consumers’ collective interest,resulting from a possible lack of due diligence in the field of competition and consumer protection. Mitigating actions include:

• Use of judicial decisions of the Court for Protection of Competition and Consumers and opinions of the President of the Office for Protection of Competition and Consumers
• Compliance with internal standards on information marking
• Ensuring easy access to company regulations
• Employee training
• Verification of the legality of contracts
• Verification of existing internal regulations for possible abuse of the dominant position
• Legal consultations
• Monitoring of the regulatory environment

Reputational risks, resulting from adverse events and negative information published in the media, as well as from inadequate brand management and information policy in relation to the internal and external environment, were identified as a further risk. Mitigating measures have therefore been taken.

• Cooperation with the media and monitoring of the media environment, including social media
• Compliance with procedures for managing internal, external and crisis communications
• Assessment of effectiveness of communication channels
• Brand strategy and its monitoring
• Systematic internal communicationa
• Meetings between managers and employees
• Internal training for the management

Identified risks and management approaches in the area of social issues in PGE S.A.

In the area of social issues, we perceive in PGE S.A. the third party damage risk, relating to the possibility of material, personal or financial damage resulting from the core business of the companies. Accordingly, we carry out mitigating measures such as:

• Inspections of the working environment
• Employee training
• Appropriate preparation of the workplace
• Periodic inspection of the state of security of facilities and individual assets

Another risk identified is the risk of infringement of consumers’ collective interests, resulting from a possible lack of due diligence in the field of competition and consumer protection. Our mitigating actions in this area are:

• Use of judicial decisions of the Court for Protection of Competition and Consumers and opinions of the President of the Office for Protection of Competition and Consumers
• Compliance with internal standards on information marking
• Ensuring easy access to company regulations
• Employee training
• Verification of the legality of contracts
• Verification of existing internal regulations for possible abuse of the dominant position
• Legal consultations
• Monitoring of the regulatory environment

Reputational risks resulting from adverse events and negative information published in the media, as well as from inadequate brand management and information policy in relation to the internal and external environment. The mitigating actions carried out in this area are:

• Cooperation with the media and monitoring of the media environment, including social media
• Compliance with procedures for managing internal, external and crisis communications
• Assessment of effectiveness of communication channels
• Brand strategy and its monitoring
• Systematic internal communication
• Meetings between managers and employees
• Internal training for the management