PSE's priorities in the area of environmental protection

The priorities of our organization's actions for the environment are set out in the document Policy for an Integrated Environmental and Occupational Health and Safety Management System. The successful implementation of the integrated system has been confirmed by a relevant certificate issued for the period from July 24, 2021 to July 23, 2024.

In line with the Board's strategic decision, PSE strives to reconcile reliable and efficient operation of the power system and its development, while respecting the environment and the public interest. In furtherance of the above objectives, we are committed to:

• pollution prevention and continuous efforts to improve actions for environmental protection, including through hazard identification and risk management,
• environmental monitoring of the work environment,
• comply with legal and other requirements applicable to the Company,
• improve the skills of employees, taking into account their role, and involving them in in the improvement of the environmental protection,
• development and modernization of network infrastructure in a way that ensures respect for the landscape, protected areas and areas of special natural values.

A review of the company's areas of potential impact on environmental elements was performed in December 2020, which confirmed that the environmental aspects had been identified correctly.

Most relevant environmental aspects:

• electromagnetic field emissions,
• noise emissions,
• waste generation,
• leakage of a hazardous substance (in an emergency).

The main objectives carried out in the period under review in the environmental area included an audit of oil separation systems at substations, testing the protective properties of water-based anti-corrosion paint sets, and analyzing technical solutions enabling the abandonment of SF₆ gas in PSE’s equipment. Activities in the environmental area were implemented in accordance with the adopted plans.

With regard to the most significant environmental aspects identified, our company has internally defined rules of conduct and supervision to ensure that all legal requirements are met and that natural resources are respected as much as possible.

We carry out a number of activities that are conducive to achieving our objectives:

• meeting the legally required permissible levels of electromagnetic fields in the environment outside the right-of-way of the line,
• selection of locations for new investment projects allowing to limit construction of power facilities in residential areas,
• maintaining the efficiency of systems and equipment,
• modern technological solutions of equipment and systems.

We perform tasks affecting the compliance with permissible levels of noise in the environment required by law, such as:

• selection of network infrastructure locations to limit the construction of power facilities in residential areas,
• quality inspections of the works performed,
• maintaining efficient systems and equipment.

For many years, we have been conducting selective collection of waste generated as a result of activities carried out on the premises of network facilities as well as PSE's head office and its branch offices. For the purpose of standardizing the principles of waste management in our company, we have implemented the Waste Management Manual at PSE S.A., which applies to waste generated both by PSE and by external entities as part of the operation, removal of the effects of failures, and investment and repair tasks. One of the appendices to this manual is entirely devoted to the principles of correct segregation of municipal waste the generation of which results from human habitation.

PSE headquarters buildings and all substations have been equipped with containers for selective waste collection (including paper, plastic, glass, metals, used light sources, batteries and rechargeable batteries, and oil-contaminated sorbent). Waste is collected at the point of generation. Premises, locations, and containers where specific types of waste are collected are properly marked.

Proper waste segregation is the subject of inspections conducted at the facilities. Presentation of rules and responsibilities concerning waste segregation is one of the regular points of training for new employees of the company.

Typical waste generated at our electric facilities includes primarily iron and steel, mixed metals, used equipment, used mineral oils and used sorbents. Most waste is generated during works related to the construction and modernization of electric power facilities. Waste generators are the work contractors responsible for managing this waste. For waste that has value, the generator is PSE.

In order to ensure that contractors' waste management activities comply with the regulations, constant supervision is carried out on the premises of operated facilities and during execution of investment tasks.

We conduct activities to:

• reduce the likelihood of an emergency through preventive measures and proper operation of facilities,
• maintain readiness to mitigate the environmental impacts of failures caused by company-owned infrastructure.

In 2020, the amount of SF₆ gas emitted by PSE into the environment was 46 percent less than the previous year. Electrical insulating oil spills saw a significant decrease in the mass of electrical insulating oil contaminated soil by as much as 98.3 percent compared to 2019..

Equipment with a considerable amount of insulating oil - i.e. transformers - are equipped with suitable protection devices, so-called oil pits, which are designed to take over the emergency oil discharge in case of an uncontrolled leak. In 2020, there was no significant electrical insulating oil spill with negative environmental impacts.

The equipment operated at PSE substation facilities contains substances that, if released into the environment, can cause contamination. These mainly include:

• electrical insulating oil (transformers, oil circuit breakers, measuring transformers, shunt reactors, circuit breakers, capacitors),
• diesel fuel (power generator sets),
• acids (electrolytes from battery banks).

Due to the possibility of equipment failure and the associated risk of leakage of the above substances, we make every effort to reduce the adverse impact on the environment as much as possible. Therefore, we prepared two documents:

• Emergency management plan in case of an accident at the PSE S.A. substation that threatens to contaminate the environment with electrical insulating oil,
• Emergency management plan in case of hazardous substance leakage (a separate document applies to each company location).

Each of our facilities is equipped with so-called ecological first-aid kits - portable spill kits for collecting small spills, allowing to protect the spill from spreading.

Our operations generate domestic wastewater. They are discharged into the combined sewerage system, septic tanks, or, after treatment in a biological treatment plant, into water or soil. Biological wastewater treatment plants using various treatment methods, including activated sludge and spray bed, are in operation at our network facilities.

When treated, the wastewater meets the requirements of the law and water permits. Wastewater treatment facilities are designed in accordance with applicable standards and laws. They undergo periodic maintenance and inspection to ensure proper operation. The quality of wastewater discharged into the environment is also periodically monitored.

ZWater consumption at our corporate headquarters and substations is low, as we have no manufacturing operations. Nevertheless, as part of our Environmental Management System, we monitor water consumption. To supply water to the substation buildings we use our own deep water intakes and municipal or city water supply pipelines.

The wells are the source of supply for 13 of our extra high voltage substations. At the substation facilities, water is used for personal use, for substation service employees, and for fire protection.

At substations with transformer units equipped with fire extinguishing systems, a small amount of water from the tanks is used for the annual sprinkler system tests. The amount of water used is measured based on readings from the main water meter.

At our headquarters in Konstancin-Jeziorna we also use our own water intake. We have two deep wells at our disposal. The water supplied to the branch units comes from the municipal water supply pipelines.