About the report
PSE sets the standard for reporting its own impact on the national market and the industry. The 2020 report provides an integrated look at the PSE's impact on the economy and market, the environment, as well as the society and the employees.
The report was written in accordance with the guidelines included in the IIRC and GRI Standards.
The report was written in accordance with the guidelines included in the IIRC and GRI Standards.
About the report
We continue to improve our reporting process
We are proud to once again present to you the Report on the PSE’s Impact on the development of the national economy and the society. The publication presents financial and non-financial data in an integrated manner, enhanced with calculations of the company's impact on the economy, the public finances, the society and the natural environment. This is already the seventh social report of our organization, and the fifth report which is integrated and published in an interactive version.
We understand impact reporting as a disclosure of complete, reliable and transparent data to stakeholders on the company's economic, market, social and environmental impact. The information is compiled based on selected impact indicators, Global Reporting Initiative Standards (GRI) and our own standards, using the indicator calculation methods and taking into account the market situation.
The main objectives of the publication are to show the challenges faced by PSE and the entire power sector, and to present the measures taken by the company to face these challenges, in particular with regard to the implementation of new and continued strategic initiatives. We also wanted to show the scale of the PSE's impact on the social and economic environment, to meet the expectations of stakeholders in terms of presenting the expected financial and non-financial issues, and to increase the transparency of our company.
We understand impact reporting as a disclosure of complete, reliable and transparent data to stakeholders on the company's economic, market, social and environmental impact. The information is compiled based on selected impact indicators, Global Reporting Initiative Standards (GRI) and our own standards, using the indicator calculation methods and taking into account the market situation.
The main objectives of the publication are to show the challenges faced by PSE and the entire power sector, and to present the measures taken by the company to face these challenges, in particular with regard to the implementation of new and continued strategic initiatives. We also wanted to show the scale of the PSE's impact on the social and economic environment, to meet the expectations of stakeholders in terms of presenting the expected financial and non-financial issues, and to increase the transparency of our company.
GRI 102-54
To ensure high quality reporting, we have prepared our report in accordance with the guidelines of (The International Integrated Reporting Council) and the Global Reporting Initiative Standards (GRI Standards) – the Core Compliance option. In the financial reporting, we have followed the requirements of the Accounting Act of September 29, 1994. (Journal of Laws 2016, item 1047, as amended).
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 in 2010, published by the Central Statistical Office in 2014. We used three key areas to show how our business impacts the economy and the society: added value, jobs and wages.
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 in 2010, published by the Central Statistical Office in 2014. We used three key areas to show how our business impacts the economy and the society: added value, jobs and wages.
PSE’S IMPACT ON THE POLISH ECONOMY IN 2020
2,78 bn
value added
2 627
jobs
more than PLN 234 m
wages
more than 2,1 bn
value added
8 529
jobs
more than PLN 380 m
wages
PLN 827 m
value added
4 265
jobs
more than PLN 159 m
wartość wages
PLN 843 m
value added
2 536
jobs
more than PLN 142 m
wages
Fig. 1. Visualization of the inter-industry flow model
In this report, we present issues relevant to our environment. They cover data from January 1, 2020 to December 31, 2020, and some selected aspects for 2021, allowing to present the current and complete picture of Polskie Sieci Elektroenergetyczne. 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.
As regards the indicators, we report the data for 2019–2020, and even the data in a four-year perspective to show the trends that have occurred as a result of a number of changes that have taken place within the organization, processes implemented and standards improved every year.
We have made a commitment to publish successive reports every year as integrated reports enhanced with impact indicators.
As regards the indicators, we report the data for 2019–2020, and even the data in a four-year perspective to show the trends that have occurred as a result of a number of changes that have taken place within the organization, processes implemented and standards improved every year.
We have made a commitment to publish successive reports every year as integrated reports enhanced with impact indicators.
Selection of issues to report
In accordance with the international guidelines, the issue selection process was conducted in three stages:
1. Identification
The identification of issues relevant to a sustainable development and to the areas of the company's impact on the environment was preceded by the following steps:
- an analysis of our company's responsibility towards the economy and the market, the society and the employees as well as the natural environment and the climate,
- a review of global challenges for the power sector,
- an analysis of the reporting trends in foreign and domestic power 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,
- an analysis of internal documents.
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The analysis of internal strategic documents and internal consultations with the representatives of the PSE's organizational units made it possible to identify our stakeholder groups.
2. Prioritization
GRI 102-43
The development of the report is one of the elements of the social dialog that PSE periodically conducts with its stakeholders based on the AA1000SES standard. The fifth dialog session was held on June 15, 2021 in an online format. Nearly 40 people attended the event. During the meeting, our partners assessed the way PSE operates and what is its impact on the environment; they also identified key issues that influenced the structure of this edition of the impact report. In compiling the report, we also incorporated the results of an additional survey conducted during this event.
Our stakeholders primarily include the following:
Fig. 3. PSE’s stakeholders
3. Validation
In H1 2021, we also conducted a survey among the PSE managerial staff to identify what they consider key issues to be discussed in our company’s next impact report.
In the course of internal meetings and consultations with PSE’s organizational units, we confirmed the materiality matrix containing the key topics to be reported and the concept of the report structure.
In the course of internal meetings and consultations with PSE’s organizational units, we confirmed the materiality matrix containing the key topics to be reported and the concept of the report structure.
Figure: Approach to the report structure
Materiality matrix
Based on the results of the stakeholder dialog session and web-based surveys, as well as internal research and qualitative analysis, 24 key issues and 16 less important ones were identified in the following 4 areas of responsibility::
- towards the market,
- at the workplace,
- towards the society,
- towards the natural environment.
The material issues that our company and its stakeholders believe should be included in the report are presented in a matrix.
5
4
Outside perspective
3
01
01
Anti-corruption efforts ─ measures taken to eliminate cases of corruption (communication and training on anti-corruption policies and procedures)
02
02
Measures for reliable and economic operation of the power system to ensure long-term security of electricity supply (prevention of a blackout risk)
03
03
Conducting more Capacity Market processes
04
04
Transmission system development and Poland's Energy Policy
05
05
Integration of the Polish market with European markets
06
06
Ensuring IT and technical security of the power system
07
07
Ethics and transparency in the relations with business partners (including tenders)
08
08
Strengthening innovation and implementing new technologies
09
09
Presentation of actions taken by PSE to adapt the NPS to the new shape of markets and new technologies (including energy storage methods, distributed generation – energy from renewable sources)
10
10
PSE's energy efficiency efforts, including ways to reduce energy consumption in the company and as part of its operations
11
11
Responsibility towards the natural environment in implementation of investment projects, including preservation of biodiversity in the project areas
12
12
PSE's carbon footprint
13
13
Risks and opportunities resulting from climate change
14
14
Reducing the PSE's environmental impact resulting from the company’s operations
15
15
The approach to managing employee health and safety at PSE
16
16
Diversity and equal opportunity in access to positions/jobs, including the management board; equal pay for men and women
17
17
Adaptability of the company: know-how, structures and internal procedures prepared for rapid changes in the electricity market
18
18
Winning public acceptance for line routes (including obtaining utility easements) and public communication concerning investment projects
19
19
Minimization of the negative social impact of the implemented investment projects (noise, interference with the landscape)
20
20
Investments in regional development
21
21
Flagship community projects of PSE
22
22
Good practices and standards of living and functioning in the vicinity of power lines
23
23
Promoting knowledge about energy security and educational programs implemented
24
24
PSE operations vs. transmission tariff and electricity bills
25
25
PSE's impact on the national economy and public finances
26
26
Structure of the power system in Poland and the role of PSE
27
27
Improvement of the implement model for infrastructure investment projects, including implementation of investment tasks resulting from the Transmission Network Development
28
28
Modernization of methods and tools to support the zonal balancing market
29
29
Risk management at PSE, including the tools used
30
30
PSE Capital Group Cybersecurity Program
31
31
Cooperation with local governments
32
32
Requirements and standards for cooperation with contractors and subcontractors
33
33
The company's compliance with environmental laws and regulations
34
34
PSE's environmentally friendly initiatives, e.g. as part of the idea of the closed-loop economy
35
35
Creating a friendly and safe workplace (transparent salary system, clear promotion criteria, no discrimination, etc.)
36
36
Creating space for employee development (training and education, support for development, benefits)
37
37
Preventing violations of the employees’ right to organize and enter collective disputes
38
38
HSEQ work environment management model
39
39
Periodic evaluation of the company in terms of respect for human rights, training for employees on human rights, etc.
40
40
Actions taken by PSE in response to the COVID-19 pandemic
2
Company's perspective
3,5
5
01
Anti-corruption efforts ─ measures taken to eliminate cases of corruption (communication and training on anti-corruption policies and procedures)
02
Measures for reliable and economic operation of the power system to ensure long-term security of electricity supply (prevention of a blackout risk)
03
Conducting more Capacity Market processes
04
Transmission system development and Poland's Energy Policy
05
Integration of the Polish market with European markets
06
Ensuring IT and technical security of the power system/p>
07
Ethics and transparency in the relations with business partners (including tenders)
08
Strengthening innovation and implementing new technologies
09
Presentation of actions taken by PSE to adapt the NPS to the new shape of markets and new technologies (including energy storage methods, distributed generation – energy from renewable sources)
10
PSE's energy efficiency efforts, including ways to reduce energy consumption in the company and as part of its operations
11
Responsibility towards the natural environment in implementation of investment projects, including preservation of biodiversity in the project areas
12
PSE's carbon footprint
13
Risks and opportunities resulting from climate change
14
Reducing the PSE's environmental impact resulting from the company’s operations
15
The approach to managing employee health and safety at PSE
16
Diversity and equal opportunity in access to positions/jobs, including the management board; equal pay for men and women
17
Adaptability of the company: know-how, structures and internal procedures prepared for rapid changes in the electricity market
18
Winning public acceptance for line routes (including obtaining utility easements) and public communication concerning investment projects
19
Minimization of the negative social impact of the implemented investment projects (noise, interference with the landscape)
20
Investments in regional development
21
Flagship community projects of PSE
22
Good practices and standards of living and functioning in the vicinity of power lines
23
Promoting knowledge about energy security and educational programs implemented
24
PSE operations vs. transmission tariff and electricity bills
25
PSE's impact on the national economy and public finances
26
Structure of the power system in Poland and the role of PSE
27
Improvement of the implement model for infrastructure investment projects, including implementation of investment tasks resulting from the Transmission Network Development
28
Modernization of methods and tools to support the zonal balancing market
29
Risk management at PSE, including the tools used
30
PSE Capital Group Cybersecurity Program
31
Cooperation with local governments
32
Requirements and standards for cooperation with contractors and subcontractors
33
The company's compliance with environmental laws and regulations
34
PSE's environmentally friendly initiatives, e.g. as part of the idea of the closed-loop economy
35
Creating a friendly and safe workplace (transparent salary system, clear promotion criteria, no discrimination, etc.)
36
Creating space for employee development (training and education, support for development, benefits)
37
Preventing violations of the employees’ right to organize and enter collective disputes
38
HSEQ work environment management model
39
Periodic evaluation of the company in terms of respect for human rights, training for employees on human rights, etc.
40
Actions taken by PSE in response to the COVID-19 pandemic
The colors reflect the areas:
Relevant
Less relevant
Figure: Materiality matrix
Outside perspective – external stakeholders (dialog session and survey results),
Company’s` perspective – internal stakeholders (survey results and internal consultations).
Company’s` perspective – internal stakeholders (survey results and internal consultations).
Tab. Topics relevant to PSE and the environment
| Responsibility towards the market | ||
|---|---|---|
| 1 | Anti-corruption efforts – measures taken to eliminate cases of corruption (communication and training on anti-corruption policies and procedures) | |
| 2 | Measures for reliable and economic operation of the power system to ensure long-term security of supply* | |
| 3 | Conducting more Capacity Market processes | |
| 4 | Transmission system development and Poland's Energy Policy | |
| 5 | Integration of the Polish market with European markets | |
| 6 | Ensuring IT and technical security of the power system | |
| 7 | Ethics and transparency in the relations with business partners (including tenders) | |
| 8 | Strengthening innovation and implementing new technologies | |
| 9 | Presentation of actions taken by PSE to adapt the NPS to the new shape of markets and new technologies (including energy storage methods, distributed generation – energy from renewable sources) | |
| Responsibility towards the natural environment | ||
| 10 | PSE's energy efficiency efforts, including ways to reduce energy consumption in the company and as part of its operations | |
| 11 | Responsibility towards the natural environment in implementation of investment projects, including preservation of biodiversity in the project areas | |
| 12 | PSE's carbon footprint | |
| 13 | Risks and opportunities resulting from climate change | |
| 14 | Reducing the PSE's environmental impact resulting from the company’s operations | |
| Responsibility at the workplace | ||
| 15 | The approach to managing employee health and safety at PSE | |
| 16 | Diversity and equal opportunity in access to positions/jobs, including the management board; equal pay for men and women | |
| 17 | Adaptability of the company: know-how, structures and internal procedures prepared for rapid changes in the electricity market | |
| Responsibility towards the society | ||
| 18 | Winning public acceptance for line routes (including obtaining utility easements) and public communication concerning investment projects | |
| 19 | Minimization of the negative social impact of the implemented investment projects (noise, interference with the landscape) | |
| 20 | Investments in regional development | |
| 21 | Flagship community projects of PSE | |
| 22 | Good practices and standards of living and functioning in the vicinity of power lines | |
| 23 | Promoting knowledge about energy security and educational programs implemented | |
| 24 | PSE operations vs. transmission tariff and electricity bills | |
Tab. Topics less relevant to PSE and the environment
| Responsibility towards the market | ||
|---|---|---|
| 25 | PSE's impact on the national economy and public finances | |
| 26 | Structure of the power system in Poland and the role of PSE | |
| 27 | Improvement of the implement model for infrastructure investment projects, including implementation of investment tasks resulting from the Transmission Network Development | |
| 28 | Modernization of methods and tools to support the zonal balancing market | |
| 29 | Risk management at PSE, including the tools used | |
| 30 | PSE Capital Group Cybersecurity Program | |
| 31 | Cooperation with local governments | |
| 32 | Requirements and standards for cooperation with contractors and subcontractors | |
| Responsibility towards the natural environment | ||
| 33 | The company's compliance with environmental laws and regulations | |
| 34 | PSE's environmentally friendly initiatives, e.g. as part of the idea of the closed-loop economy | |
| Responsibility at the workplace | ||
| 35 | Creating a friendly and safe workplace (transparent salary system, clear promotion criteria, no discrimination, etc.) | |
| 36 | Creating space for employee development (training and education, support for development, benefits) | |
| 37 | Preventing violations of the employees’ right to organize and enter collective disputes | |
| 38 | HSEQ work environment management model | |
| 39 | Periodic evaluation of the company in terms of respect for human rights, training for employees on human rights, etc. | |
| 40 | Actions taken by PSE in response to the COVID-19 pandemic | |
Tab. Topics relevant to PSE, including their impact boundaries included in the report
| Topics defined as important | Topics as part of the GRI standards | Impact topic within the organization | Impact of the topic outside the organization |
|---|---|---|---|
| Responsibility towards the market | |||
| Anti-corruption efforts – measures taken to eliminate cases of corruption (communication and training on anti-corruption policies and procedures) | Prevention of corruption | PSE S.A. | Particularly relevant to contractors and subcontractors |
| Measures for reliable and economic operation of the power system to ensure long-term security of supply* | Indirect economic impact | PSE S.A. | Particularly relevant to customers |
| Conducting more Capacity Market processes | Indirect economic impact | PSE S.A. | Particularly relevant to customers |
| Transmission system development and Poland's Energy Policy | Strategy | PSE S.A. | Particularly relevant to the regulatory authorities, customers, contractors and subcontractors |
| Integration of the Polish market with European markets | Strategy | PSE S.A. | Particularly relevant to the regulatory authorities, customers, contractors and subcontractors |
| Ensuring IT and technical security of the power system | Strategy | PSE S.A. | Particularly relevant to the regulatory authorities, customers, contractors and subcontractors |
| Ethics and transparency in the relations with business partners (including tenders) | Ethics and integrity Procurement practices |
PSE S.A. | Particularly relevant to contractors, subcontractors and suppliers |
| Strengthening innovation and implementing new technologies | Strategy | PSE S.A. | Particularly relevant to customers |
| Presentation of actions taken by PSE to adapt the NPS to the new shape of markets and new technologies (including energy storage methods, distributed generation – energy from renewable sources) | Strategy | PSE S.A. | Particularly relevant to the owner, the electricity market participants, as well as RES and environmental and social organizations |
| Responsibility towards the natural environment | |||
| PSE's energy efficiency efforts, including ways to reduce energy consumption in the company and as part of its operations | Impact on climate | PSE S.A. | Particularly relevant to the employees, the owner as well as environmental and social organizations |
| Responsibility towards the natural environment in implementation of investment projects, including preservation of biodiversity in the project areas | Compliance with environmental regulations Biodiversity |
PSE S.A. | Particularly relevant to local communities |
| PSE's carbon footprint | Emissions Impact on climate |
PSE S.A. | Particularly relevant to the owner, the employees as well as environmental and social organizations |
| Risks and opportunities resulting from climate change | Impact on climate | PSE S.A. | Particularly relevant to the owner, the regulatory authorities, the electricity market participants and the employees |
| Reducing the PSE's environmental impact resulting from the company’s operations | Impact on climate Compliance with environmental regulations |
PSE S.A. | Particularly relevant to the employees, local communities as well as environmental and social organizations |
| Responsibility at the workplace | |||
| The approach to managing employee health and safety at PSE | Occupational Health and Safety | PSE S.A. | Particularly relevant to the employees and potential employees |
| Diversity and equal opportunity in access to positions/jobs, including the management board; equal pay for men and women | Diversity and equal opportunities | PSE S.A. | Particularly relevant to the employees and potential employees |
| Adaptability of the company: know-how, structures and internal procedures prepared for rapid changes in the electricity market | Employment Compliance with regulations |
PSE S.A. | Particularly relevant to potential employees and the regulatory authorities |
| Responsibility towards the society | |||
| Winning public acceptance for line routes (including obtaining utility easements) and public communication concerning investment projects | Local community | PSE S.A. | Particularly relevant to local communities |
| Minimization of the negative social impact of the implemented investment projects (noise, interference with the landscape) | Local community | PSE S.A. | Particularly relevant to local communities |
| Investments in regional development | Local community | PSE S.A. | Particularly relevant to local communities |
| Flagship community projects of PSE | Local community Sponsorship |
PSE S.A. | Particularly relevant to local communities |
| Good practices and standards of living and functioning in the vicinity of power lines | Local community Customer health and safety |
PSE S.A. | Particularly relevant to local communities |
| Minimization of the negative social impact of the implemented investment projects (noise, interference with the landscape) | Compliance with environmental regulations | PSE S.A. | Particularly relevant to local communities |
| Promoting knowledge about energy security and educational programs implemented | Indirect economic impact | PSE S.A. | Particularly relevant to local communities |
| PSE operations vs. transmission tariff and electricity bills | Indirect economic impact | PSE S.A. | Particularly relevant to the society |
*Aspect with a broad impact
In the report, we describe the aforementioned key topics in detail, presenting both the approach to managing them and the corresponding indicators.
Precautionary principle
GRI 102-11
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 PSE's corporate governance regulations and standards. All the published 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.
Reliability of the report
GRI 102-56
The report has been internally and externally reviewed. The PSE Capital Group Sustainable Development Team worked on the accuracy of the report, its content and compliance with the guidelines. The external review was conducted by an independent entity whose selection was approved by the Management Board.