A Taxonomy-compliant activity is one that makes a significant contribution to one or more of the environmental objectives, does not cause serious harm to any of the environmental objectives of the Taxonomy, is carried out in accordance with the minimum guarantees set out in art. 18 of Regulation 2020/852 and meets the technical qualification criteria that have been established by the European Commission.
The assessment of the compliance of the identified eligible activities listed above, as a first step, included an analysis of the technical eligibility criteria relevant to each activity, as included in Delegated Regulation 2021/2139 – in terms of material contribution criteria and the 'do no serious harm’ principle.
At the same time, PGE Group commissioned an external advisor to conduct a due diligence study, which analysed the degree of compliance of PGE Group’s business activities with the requirements, i.e. minimum guarantees, set out in art. 3 letter c in conjunction with art. 18 of Regulation 2020/852 of 18 June 2020 on the establishment of a framework to facilitate sustainable investment.
As defined in art. 18 of the above regulation, minimum guarantees are procedures applied by a company conducting business to ensure compliance with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, including the principles and rights set out in the eight fundamental conventions identified in the International Labour Organisation Declaration on Fundamental Principles and Rights at Work, as well as the principles and rights set out in the International Bill of Human Rights.
In accordance with the guidelines of the PSF Report, due diligence was conducted based on the following methodology:
- procedure-based test, i.e. an examination of PGE Group’s internal regulations and procedures in the context of compliance with the applicable regulations and guidelines, carried out on the basis of documentation provided by PGE Group,
- performance-based test focusing on final convictions or penalties, for each of the areas examined, taking into account their materiality, carried out on the basis of PGE Group declarations,
- database analysis carried out on the basis of commonly contained information in the records of the Business and Human Rights Resource Centre (hereafter: BHRRC) and the National Contact Point, established in accordance with the OECD Guidelines for Multinational Enterprises,
- general survey of publicly available information on the activities of PGE Group.
The following areas were audited:
- disclosure of strategic and internal affairs,
- human rights,
- labour rights,
- anti-corruption and anti-bribery,
- protection of competition and competitors,
- tax policy,
- environmental policy.
In the areas mentioned above, PGE Group has adopted procedures corresponding to the standards set out in the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights. In addition, it applies extensive measures in line with both applicable national law and international regulations.
No charges have been brought against PGE Group by the BHRRC, nor is there any case pending before the National Contact Point, which is reflected in the Group’s record of penalties imposed by common courts and public administration bodies.
The investigation carried out ruled out the existence of negative indications, representing a failure to provide minimum guarantees, which are identified in the PSF Report as risk factors.
1 Final Report on Minimum Safeguards, Platform on Sustainable Finance; https://finance.ec.europa.eu/system/files/2022-10/221011-sustainable-finance-platform-finance-report-minimum-safeguards_en.pdf [access 31.12.2022]