Dialogue with stakeholders
A successful course of the transformation process depends on its good understanding by all PGE stakeholder groups and their engagement in the process of changes. PGE makes every effort to ensure that the energy transition is fair, transparent and carried out in accordance with arrangements worked out in the dialogue process.
This dialogue takes place at different levels, in a form adapted to the type and communication needs of individual stakeholders. There are also solutions (such as regular dialogue sessions) that create a space for all key stakeholder groups to share their opinions in a common setting and report their expectations regarding the company.
Key stakeholders of the PGE Group
The PGE Group’s key stakeholders include the central government, local governments, regulators and market supervisory bodies, shareholders, investors, customers, employees, banks and financing institutions, insurers, suppliers and subcontractors, industrial, social and environmental organisations, the media, ESG analysts, academics, local communities and competitors.
. A materiality analysis performed by key executives and members of the PGE Group working teams involved in the activities of the Sustainability Committee and ESG initiatives in 2023 (based on questionnaire surveys)
Forms of dialogue with PGE Group stakeholders
As an organisation with a large scale and impact on its surroundings, the PGE Group is a natural partner for dialogue with a wide range of stakeholders. In order to develop in a sustainable way, it is important for PGE to examine and take into account their needs. It is committed to building relationships based on partnership.
Dialogue sessions
Information on what key stakeholders expect from the PGE Group is communicated during regular meetings. The latest stakeholder panel took place on 13 and 14 June 2022 in an online format.
~80
people shared their opinions on the company’s activities
50
participants in the Polish-language session
nearly 30
people in the English-language session attended mainly by representatives of international institutions
Dialogue sessions are conducted according to the AA 1000 corporate social responsibility standard, with independent external facilitators. The meetings are primarily aimed at gathering information on what key stakeholders expect from the PGE Group, including in the ESG area, and gathering opinions on which of the PGE Group’s activities are the most valuable and which should be additionally initiated. The outcome of dialogue sessions is also a list of the most important topics and issues identified by stakeholders that should be described in a non-financial information statement for a given year. More information on the results of the 2022 session is available in the section “About this statement”.
There are benefits for both parties in participating in PGE Group stakeholder panels. These include the following:
Opportunities to directly communicate what is expected of the PGE Group with respect to its environmental and social responsibility
Influence on the future directions of the PGE Group’s strategic development in the ESG area
Participation in the formulation of the PGE Group’s plans and activities responding to the needs of a wide range of stakeholders
Opportunities to present stakeholders’ opinions on the PGE Group’s activities and to learn about the PGE Group’s expectations and capabilities
Identification of ESG areas and topics relevant for presentation in the PGE Group’s integrated report
Relations with the social environment – public affairs
The basis for the sustainable, balanced development of the PGE Group is to maintain
ongoing partnerships with the institutions that oversee the functioning of the
markets in which the organisation operates. PGE is committed to a constructive
and transparent dialogue with independent market regulators and supervisory
authorities.
The PGE Group operates in an extremely complex and changing regulatory environment. Ongoing monitoring of legislative processes and active participation in dialogues with circles responsible for lawmaking, in both Poland and the European Union, is a necessary element for conducting effective business activities and meeting the expectations of the PGE Group’s stakeholders. Such efforts translate directly into building the Group’s value.
PGE aims to raise public awareness of the problems and challenges of the power generation sector. It is a natural partner for discussions and consultations with the legislature, central administration and local governments. PGE experts analyse the consequences of regulatory and political decisions in the field of power generation. The PGE Group shares observations and analyses on the existing framework facilitating dialogue with the administration and lawmakers. PGE also actively cooperates with numerous institutions, seeking to draw attention to issues of importance to the company and the energy industry as a whole. These tasks are carried out in accordance with the international cooperation procedure.
PGE is a member of a number of energy industry organisations and also presents its opinions through them. This ensures the development of a balanced position that takes into account the viewpoints of all members of such organisations. The issues of PGE Group companies’ membership in industry organisations are regulated by the procedure for managing the PGE CG companies’ membership in national and international industry organisations. An industry organisation is any national or international organisation, irrespective of its legal form, including an association, society, employers’ union or chamber of commerce, whose activities focus on issues related to the energy sector.
As the largest power company in Poland, PGE is aware of the importance of decisions on the future of the energy sector being taken at the European Union level. The PGE Group has an international presence and is actively involved in institutional dialogue that supports the idea of mutual understanding. A constructive exchange of arguments and views leads to a compromise. A significant range of activities is carried out through PGE’s Brussels Office and through its membership in the Polish Electricity Association (PEA), which brings together representatives of the industry in Poland. Furthermore, through the PEA, PGE actively participates in the work of EURELECTRIC, an international organisation representing the interests of the electricity industry at the European Union level.
The growing need for direct dialogue with the European environment led PGE S.A. to open its own office in Brussels in April 2019, remaining a member of the PEA. The main role of the PGE S.A. Office in Brussels is to intensify the PGE Capital Group’s activity in matters related to the EU’s implemented and planned energy and climate regulations. The office supports the implementation of the Group’s strategic objectives to ensure the long-term growth of its value in the context of the changing political and economic conditions on the EU electricity market.
Dialogue with shareholders
The primary objectives of PGE’s information policy are transparency and cooperation based on mutual trust. Effective communication and transparency in relations with investors are in the company’s best interest and build its value for shareholders. Investor relations activities go beyond regulatory requirements. These oblige the company to comply with its periodic and current reporting obligations, with a particular focus on price-sensitive information.
In 2023, PGE S.A. maintained multi-channel communication with capital market participants through its website and the dedicated Investor Relations tab, email correspondence following significant events in the PGE Group, as well as meetings with analysts and investors.
After the pandemic, the Company returned to the format of investor conferences held at physical venues both in Poland and abroad, including London and Prague.
Each time prior to the publication of an interim report, PGE S.A. published financial result estimates together with information on non-recurring events. In addition, a presentation detailing the estimated result and the key factors influencing the year-on-year change in the result was published on the website.
Following the publication of interim results, the company held four Management Board conferences for journalists and analysts to discuss the operating and financial results for the period and the company’s growth prospects. The conferences were also streamed live on the internet, with a transcript of the broadcast then posted on the corporate website. Each time, an opportunity was provided for participants to ask questions.
In addition, the website included:
- presentations of the financial results with an analyst’s package and supplement to the presentations in the form of an xls file,
- a periodically updated investor presentation,
- a presentation on the takeover of PKP Energetyka by PGE S.A.,
- a presentation on the PGE Group’s decarbonisation plan (Decarbonisation Pathway),
- an editable xls-format file with financial and operational data presented as a time series from the first quarter of 2011 to the last reporting period,
- a consensus of analysts’ forecasts,
- a calendar of events.
With a view to ensuring transparency in the implementation of the idea of sustainable development and the presentation of the company’s impact on its environment, the PGE Capital Group’s integrated report was published online. The 2022 report is available at: https://raportzintegrowany2022.gkpge.pl/
Dialogue between individual companies and their stakeholders
In the area of dialogue with external stakeholders, PGE Group companies organise meetings with representatives of local authorities and conduct social consultations accompanying investment projects. They also hold meetings with potential business partners or workshops for contractors from the energy and other sectors.
Dialogue with PGE Dystrybucja business partners
In 2023, PGE Dystrybucja carried out many investments in electricity networks in the area of operation of all the company’s branches, so there is an ongoing dialogue with local communities, including local authorities, associations, public services such as the Fire Brigade, Territorial Defence Forces, Police and Provincial Crisis Management Centres.
In 2023, the company cooperated with local authorities in the planning and implementation of electricity distribution investment projects by organising Energy Forums in 2023.
In each of the company’s seven branches, meetings were held throughout the year between PGE Dystrybucja representatives and local authorities, during which a lot of time was spent discussing topics such as the connection of RES farms and the production of green energy in a way that does not disrupt the operation of the distribution network. Energy Forums for local government officials have been organised since 2007 on a biennial basis and are designed to build active cooperation between local government units and the electricity distribution enterprise in the planning and implementation of investment projects.
In March 2023, a workshop for PGE Dystrybucja contractors was organised, addressed mainly to representatives of companies from the energy and construction sectors interested in carrying out investments for PGE Dystrybucja. Workshops are a regular and proven element of the company’s investment process, and their format transparently explains complex tendering procedures and facilitates contractors’ effective participation in PGE Dystrybucja’s tenders. The 2023 workshop attracted more than 300 participants, of which around 50 contractors interested in working with the company attended the seminar in person at the Lublin Conference Centre. Further opportunities for face-to-face meetings with potential business partners of the company were provided by the event called “PGE Dystrybucja’s Zone for Contractors”, which was organised during the ENERGETICS Energy Industry Fair in Lublin and the 25th ENEX International Trade Fair for Power Generation and Renewable Energy Sources ENEX in Kielce.
>300
participants in a workshop for contractors PGE Dystrybucja
~50
contractors interested in working with the company
In 2023, PGE Dystrybucja continued its cooperation with the Territorial Defence Forces (TOT) based on the previously concluded cooperation agreements. These agreements provide for mutual support, exchange of experience and opinions, and joint exercises concerning energy infrastructure protection called “Friendly Energy-23”, survival training courses and “Amper” emergency response exercises. An additional objective of this cooperation is support from the TOT to be provided in the event of large-scale power outages, while the TOT have the opportunity to train on power infrastructure facilities.
PGE Energia Ciepła’s cooperation with local authorities
District heating is a key contributor to the fight against low emissions in Polish towns and cities. For years, PGE Energia Ciepła CHP plants have been supporting local authorities in their battles for clean air. The branches of PGE Energia Ciepła, together with local authorities, engage in information and education campaigns aimed at connecting individual buildings to district heating networks. Energy and heat conservation was also a consistently important theme in 2023.
Dialogue within the framework of the just transition
PGE Górnictwo i Energetyka Konwencjonalna carried out a number of activities aimed,
among other things, at reliably informing its stakeholders about the energy
transition at the Bełchatów and Turów Complexes.
The company participated in a number of meetings involving the necessity to initiate a change in the approach to the continued operation of PGE GiEK S.A., while ensuring the preservation of jobs. During the discussions held, the topics of Bełchatów and Turów were raised as important elements on the energy map of Poland also in the future and new solutions for the future were proposed.
In the case of the Turów complex, as part of the information campaign in connection with the ongoing concession process, PGE GiEK posted current information on the Turów Mine on its dedicated website www.turow2044.pl, which had been established in December 2020 as a multilingual website dedicated to the Turów Mine and Power Plant. The website provides information on the activities of the Turów power generation complex in the context of the current lignite mining concession.
In 2023, the company continued its outreach activities related to the defence of the Turów Complex with a well-prepared and tailored information campaign. A number of press releases were published, and their Czech and German language versions were forwarded to mass media in Czechia and Germany. These were aimed at convincing the public of the proper conduct of the concession granting process and the activities securing the sites on the Czech and German sides of the border. PGE GiEK also participated in the Czech-Polish-German conference entitled “The Just Transition of the Tri-State Area” and held in Liberec, where information on the performance of the Polish-Czech agreement on the Turów Mine was presented. The company’s representatives also actively participated in conferences and meetings, where – as members of discussion panels – they presented important issues related to the energy sector, its future and imminent transformation.
Information workshops
Webinars for institutional customers
In 2023, PGE Obrót organised a webinar for the company’s institutional stakeholders.
It was attended by more than a hundred representatives of local authorities, public administration entities, universities and hospitals from all over Poland, who purchase energy under public procurement procedures.
The topic of the meeting with representatives of local authorities and institutional customers was planning procedures in a dynamic market and billing issues. Local government officials mainly asked about the factors shaping energy prices on the Polish Power Exchange, when tenders should be announced and for how long, as well as the impact of contractual provisions on the price of energy.