PGE Group, as a public interest entity preparing non-financial reports in accordance with Directive 2014/95/EU of the European Parliament and of the Council, is required to disclose for 2022 the extent to which its activities can be considered environmentally sustainable.
This requirement derives from Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, amending Regulation (EU) 2019/2088 and the Delegated Regulations on the establishment of a framework to facilitate sustainable investment (hereinafter: „EU Environmental Taxonomy”, „Taxonomy”).
For the purpose of preparing the 2022 disclosures, an analysis of the activities carried out was carried out, which resulted in the identification of activities that qualify for the Taxonomy systematics, i.e. those that are consistent with the description of the activities shown in Annex I or Annex II of Commission Delegated Regulation (EU) 2021/2139 and its supplement, i.e. Commission Delegated Regulation (EU) 2022/1214 of 9 March 2022.
The financial data presented in the disclosure for qualifying activities include both:
The eligibility of an activity was based on a comparison of the actual activity with the description of the activity detailed in the framework:
to Commission Delegated Regulation (EU) 2021/2139.
The basis for the calculation of the turnover, capital expenditure (CapEx) and operating expenditure (OpEx) ratios were the definitions set out in Annex I to Commission Delegated Regulation (EU) 2021/2178.
For the calculation of the ratios for PGE Group, appropriate consolidation exclusions were taken into account, based on the methods used within the financial statements.
A Systematically Eligible Business Activity means a business activity as described in Commission Delegated Regulation (EU) 2021/2139. A Systematically Eligible Business Activity (hereinafter: „Taxonomy Eligible Business 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, and is carried out in accordance with the minimum safeguards set out in art. of Regulation 2020/852 and meets the technical eligibility criteria that have been established by the European Commission.
In accordance with Commission Delegated Regulation (EU) 2021/2178, the first annual reporting period covered 2021, for which eligibility indicators were reported. In the second reporting year (i.e. for 2022), indicators for both eligibility and compliance with the Taxonomy are reported.
As part of the implementation of the process described above, the following specific activities were carried out in PGE Group and the following results are hereby disclosed.
PGE Group’s business is organised into seven operating segments:
Activities occurring in all segments were assessed against the EU Environmental Taxonomy.
On the basis of Annexes I and II to Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 and in accordance with Commission Delegated Regulation (EU) 2022/1214 of 9 March 2022, a selection of activities eligible for the Taxonomy was made, which in 2022 occurred in PGE Group as part of business activities or purchases. These are:
Activities from which revenue was generated within the business – turnover and associated CapEx and/or OpEx are shown:
The calculation of the Taxonomy indicators required to be disclosed for 2022 has been based on financial data allowing specific values to be assigned to identified qualifying activities.
The different activities carried out have been assigned to only one qualifying activity in the Taxonomy systematics. No part of revenue, CapEx and OpEx was double counted. When a particular activity from which revenue (turnover) was generated was deemed eligible for the systematics, then the CapEx and OpEx associated with that activity was also allocated entirely to that activity and was no longer assessed for eligibility to other activities. The remaining CapEx and OpEx (not related to qualifying, turnover-generating activities) was assessed for possible classification as purchases from qualifying activities. Individual CapEx and OpEx expenses were attributed to only one activity. In situations where it was possible to attribute them to more than one activity, the one most relevant to them was selected.
For the calculation of the ratios in the denominator, the value of turnover and capital expenditure as reported in PGE Group consolidated financial statements for the period ended December 31, 2022 were used, respectively. The OpEx denominator has been calculated based on the accounts in which costs meeting the definition of OpEx from Regulation 2021/2178 are recognised.
The climate transition is gaining momentum. It is accompanied by a number of new EU legal requirements for sustainability reporting, including the EU Environmental Taxonomy, to which we actively and wholeheartedly respond. While making reliable disclosures, we are also aware that the PGE Group is a forerunner of good practices for Polish companies.
This is the value of turnover derived from the sale of products or services related to business activities that are deemed eligible for Taxonomy for Objective I (Climate Change Mitigation) or for Objective II (Climate Change Adaptation).
The numerator of the indicator includes taxonomy-eligible revenue from contracts with customers under IFRS 15. The denominator is total sales revenue as reported in the consolidated statement of comprehensive income.
As defined in Regulation 2021/2178, the value of capital expenditure is the increase in property, plant and equipment and intangible assets during the financial year before depreciation, amortisation and any revaluations, including those arising from revaluations and impairments for the financial year, excluding changes in fair value. This figure also includes additions to property, plant and equipment and intangible assets arising from business combinations.
The numerator of the indicator includes the taxonomy-eligible CapEx, while the denominator is the sum of the CapEx reported in the consolidated financial statements – note 6.1. the sum for the entire PGE Group of the items „Total capital expenditures” and „Acquisition of property, plant and equipment, intangible assets, right-of-use assets and investment properties as part of the acquisition of new companies”. Aside from the capital expenditures of individual companies, the acquisition of wind farms was an important component of PGE Group’s taxonomic CapEx.
Regulation 2021/2178 defines OpEx as the direct, non-capitalised costs associated with research and development, building refurbishment activities, short-term leases, maintenance and repairs, and any other direct expenditure associated with the day-to-day operation (maintenance) of tangible assets by a company or a third party to which activities necessary to ensure the continuous and efficient operation of those assets have been outsourced.
The accounts analysed for the OpEx Taxonomy mainly comprised the accounts in which maintenance, overhaul, repair costs and leases not included in the balance sheet are recognised, in accordance with the guidelines of the OpEx Interpretation published by the European Commission in the Official Journal of the EU in October 2022. The sum of the turnover of these accounts including consolidation exclusions is the denominator.
The numerator is the part of the denominator that corresponds to the activities that are considered eligible for the Taxonomy in terms of its Objective I (Climate Change Mitigation) or II (Climate Change Adaptation).
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[1], due diligence was conducted based on the following methodology:
The following areas were audited:
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]
PGE Group’s indicators for 2022 are presented in the tables below, prepared on the basis of the formulas included in Regulation 2021/2178:
| Economic activity (1) | Code or codes (2) | Turnover (absolute value) (3) | Share of turnover (4) | Criteria for significant contribution | Criteria concerning the „do no harm” rule |
Minimum guarantees (17) | Percentage of systematic turnover Year N (18) | Percentage of systematic turnover Year N-1 (19) | Category (supporting activity) (20) | Category („action for transition”) (21) | ||||||||||
| Climate change mitigation (5) | Climate change adaptation (6) | Water and marine resources (7) | Circular economy (8) | Pollution (9) | Biodiversity and ecosystems (10) | Climate change mitigation (11) | Climate change adaptation (12) | Water and marine resources (13) | Circular economy (14) | Pollution (15) | Biodiversity and ecosystems (16) | |||||||||
| PLN million | % | % | % | % | % | % | % | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | % | % | E | T | ||
| A. ACTIVITIES ELIGIBLE FOR SYSTEMATICS | ||||||||||||||||||||
| A.1 Types of environmentally sustainable activities (consistent with the systematics) | ||||||||||||||||||||
| 4.1 Electricity generation using solar photovoltaic technology | 4.1 | 2 | 0.0% | 0.0% | YES | Not applicable* | YES | Not applicable | YES | YES | 0.0% | No data | ||||||||
| 4.3 Electricity generation from wind power | 4.3 | 1 087 | 1.5% | 1.5% | YES | Not applicable | YES | Not applicable | YES | YES | 1.5% | No data | ||||||||
| 4.9 Transmission and distribution of electricity | 4.9 | 6 787 | 9.2% | 9.2% | YES | Not applicable | YES | YES | YES | YES | 9.2% | No data | E | |||||||
| 4.15 District heating/cooling distribution | 4.15 | 3 | 0.0% | 0.0% | YES | YES | Not applicable | YES | YES | YES | 0.0% | No data | ||||||||
| 4.20 Cogeneration of heat/cool and power from bioenergy | 4.20 | 21 | 0.0% | 0.0% | YES | YES | Not applicable | YES | YES | YES | 0.0% | No data | ||||||||
| 5.5 Collection and transport of non-hazardous waste in source segregated fractions | 5.5 | 9 | 0.0% | 0.0% | YES | Not applicable | YES | Not applicable | Not applicable | YES | 0.0% | No data | ||||||||
| 7.6 Installation, maintenance and repair of renewable energy technologies | 7.6 | 26 | 0.0% | 0.0% | YES | Not applicable | Not applicable | Not applicable | Not applicable | YES | 0.0% | No data | E | |||||||
| Turnover from environmentally sustainable activities (in accordance with the system) (A.1) | 7 935 | 10.8% | 10.8% | 10.8% | No data | |||||||||||||||
| A.2 Activities eligible for systematics but not environmentally sustainable (activities not in accordance with systematics) | ||||||||||||||||||||
| 4.3 Electricity generation from wind power | 4.3 | 30 | 0.0% | |||||||||||||||||
| 4.5 Electricity generation from hydropower | 4.5 | 204 | 0.3% | |||||||||||||||||
| 4.9 Transmission and distribution of electricity | 4.9 | 75 | 0.1% | |||||||||||||||||
| 4.10 Storage of electricity | 4.10 | 1 958 | 2.7% | |||||||||||||||||
| 4.15 District heating/cooling distribution | 4.15 | 153 | 0.2% | |||||||||||||||||
| 4.20 Cogeneration of heat/cool and power from bioenergy | 4.20 | 214 | 0.3% | |||||||||||||||||
| 4.24 Production of heat/cool from bioenergy | 4.24 | 19 | 0.0% | |||||||||||||||||
| 4.30 High-efficiency cogeneration of heat/cool and power from gaseous fossil fuels | 4.30 | 1 602 | 2.2% | |||||||||||||||||
| 4.31 Production of heat/cooling from gaseous fossil fuels in an efficient district heating and cooling system | 4.31 | 87 | 0.1% | |||||||||||||||||
| Turnover from systematically eligible but environmentally unsustainable activities (non-systematically compatible activities) (A.2) | 4 342 | 5.9% | Not applicable | Not applicable | ||||||||||||||||
| Total (A.1 + A.2) | 12 277 | 16.7% | 10.8% | No data | ||||||||||||||||
| B. NON-SYSTEMATIC ACTIVITIES | ||||||||||||||||||||
| Turnover from non-systematically eligible activities (B) | 61 158 | 83.3% | ||||||||||||||||||
| TOTAL (A + B) | 73 435 | 100% | ||||||||||||||||||
| Economic activity (1) | Code or codes (2) | Capital expenditure in absolute terms (3) | Percentage share of capital expenditure (4) | Criteria for significant contribution | Criteria concerning the „do no harm” rule |
Minimum guarantees (17) | Percentage of system-compliant capital expenditure, year N (18) | Percentage of system-compliant capital expenditure, year N-1 (19) | Category (supporting activity) (20) | Category („action for transition”) (21) | ||||||||||
| Climate change mitigation (5) | Climate change adaptation (6) | Water and marine resources (7) | Circular economy (8) | Pollution (9) | Biodiversity and ecosystems (10) | Climate change mitigation (11) | Climate change adaptation (12) | Water and marine resources (13) | Circular economy (14) | Pollution (15) | Biodiversity and ecosystems (16) | |||||||||
| PLN million | % | % | % | % | % | % | % | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | % | % | E | T | ||
| A. ACTIVITIES ELIGIBLE FOR SYSTEMATICS | ||||||||||||||||||||
| A.1 Types of environmentally sustainable activities (consistent with the systematics) | ||||||||||||||||||||
| 4.1 Electricity generation using solar photovoltaic technology | 4.1 | 140 | 1.7% | 1.7% | YES | Not applicable | YES | Not applicable | YES | YES | 1.7% | No data | ||||||||
| 4.3 Electricity generation from wind power | 4.3 | 1 132 | 13.9% | 13.9% | YES | Not applicable | YES | Not applicable | YES | YES | 13.9% | No data | ||||||||
| 4.9 Transmission and distribution of electricity | 4.9 | 2 575 | 31.5% | 31.5% | YES | Not applicable | YES | YES | YES | YES | 31.5% | No data | E | |||||||
| 4.15 District heating/cooling distribution | 4.15 | 1 | 0.0% | 0.0% | YES | YES | Not applicable | YES | YES | YES | 0.0% | No data | ||||||||
| 4.20 Cogeneration of heat/cool and power from bioenergy | 4.20 | 3 | 0.0% | 0.0% | YES | YES | Not applicable | YES | YES | YES | 0.0% | No data | ||||||||
| 5.5 Collection and transport of non-hazardous waste in source segregated fractions | 5.5 | 1 | 0.0% | 0.0% | YES | Not applicable | YES | Not applicable | Not applicable | YES | 0.0% | No data | ||||||||
| Investment expenditures for environmentally sustainable activities (consistent with the system) (A.1) | 3 852 | 47.2% | 47.2% | 47.2% | No data | |||||||||||||||
| A.2 Activities eligible for systematics but not environmentally sustainable (activities not in accordance with systematics) | ||||||||||||||||||||
| 4.3 Electricity generation from wind power | 4.3 | 200 | 2.4% | |||||||||||||||||
| 4.5 Electricity generation from hydropower | 4.5 | 58 | 0.7% | |||||||||||||||||
| 4.9 Transmission and distribution of electricity | 4.9 | 5 | 0.1% | |||||||||||||||||
| 4.10 Storage of electricity | 4.10 | 36 | 0.4% | |||||||||||||||||
| 4.15 District heating/cooling distribution | 4.15 | 80 | 1.0% | |||||||||||||||||
| 4.20 Cogeneration of heat/cool and power from bioenergy | 4.20 | 18 | 0.2% | |||||||||||||||||
| 4.24 Production of heat/cool from bioenergy | 4.24 | 6 | 0.1% | |||||||||||||||||
| 4.29 Electricity generation from gaseous fossil fuels | 4.29 | 1 957 | 24.0% | |||||||||||||||||
| 4.30 High-efficiency cogeneration of heat/cool and power from gaseous fossil fuels | 4.30 | 602 | 7.4% | |||||||||||||||||
| 4.31 Production of heat/cooling from gaseous fossil fuels in an efficient district heating and cooling system | 4.31 | 28 | 0.3% | |||||||||||||||||
| 5.4 Modernisation of sewage collection and treatment systems | 5.4 | 47 | 0.6% | |||||||||||||||||
| 8.1 Data processing, hosting and related activities | 8.1 | 11 | 0.1% | |||||||||||||||||
| Investment expenditures for activities that qualify for systematics but are environmentally unsustainable (non-systematic activities) (A.2) | 3 048 | 37.3% | Not applicable | Not applicable | ||||||||||||||||
| Total (A.1 + A.2) | 6 900 | 84.5% | 47.2% | No data | ||||||||||||||||
| B. NON-SYSTEMATIC ACTIVITIES | ||||||||||||||||||||
| Capital expenditure for non-systematic activities (B) | 1 268 | 15.5% | ||||||||||||||||||
| TOTAL (A + B) | 8 168 | 100% | ||||||||||||||||||
| Economic activity (1) | Code or codes (2) | Operating expenses in absolute terms (3) | Percentage share of operating expenses (4) | Criteria for significant contribution | Criteria concerning the „do no harm” rule |
Minimum guarantees (17) | Percentage of operating expenditure in line with the systematic, year N (18) | Percentage of operating expenditure in line with the systematic, year N-1 (19) | Category (supporting activity) (20) | Category („action for transition”) (21) | ||||||||||
| Climate change mitigation (5) | Climate change adaptation (6) | Water and marine resources (7) | Circular economy (8) | Pollution (9) | Biodiversity and ecosystems (10) | Climate change mitigation (11) | Climate change adaptation (12) | Water and marine resources (13) | Circular economy (14) | Pollution (15) | Biodiversity and ecosystems (16) | |||||||||
| PLN million | % | % | % | % | % | % | % | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | % | % | E | T | ||
| A. ACTIVITIES ELIGIBLE FOR SYSTEMATICS | ||||||||||||||||||||
| A.1 Types of environmentally sustainable activities (consistent with the systematics) | ||||||||||||||||||||
| 4.1 Electricity generation using solar photovoltaic technology | 4.1 | 0.4 | 0.0% | 0.0% | YES | Not applicable | YES | Not applicable | YES | YES | 0.0% | No data | ||||||||
| 4.3 Electricity generation from wind power | 4.3 | 31.4 | 3.1% | 3.1% | YES | Not applicable | YES | Not applicable | YES | YES | 3.1% | No data | ||||||||
| 4.9 Transmission and distribution of electricity | 4.9 | 284.6 | 28.5% | 28.5% | YES | Not applicable | YES | YES | YES | YES | 28.5% | No data | E | |||||||
| 4.15 District heating/cooling distribution | 4.15 | 2.4 | 0.2% | 0.2% | YES | YES | Not applicable | YES | YES | YES | 0.2% | No data | ||||||||
| 4.20 Cogeneration of heat/cool and power from bioenergy | 4.20 | 0.3 | 0.0% | 0.0% | YES | YES | Not applicable | YES | YES | YES | 0.0% | No data | ||||||||
| 5.5 Collection and transport of non-hazardous waste in source segregated fractions | 5.5 | 4.9 | 0.5% | 0.5% | YES | Not applicable | YES | Not applicable | Not applicable | YES | 0.5% | No data | ||||||||
| 7.6 Installation, maintenance and repair of renewable energy technologies | 7.6 | 0.1 | 0.0% | 0.0% | YES | Not applicable | Not applicable | Not applicable | Not applicable | YES | 0.0% | No data | E | |||||||
| Operating expenditure for environmentally sustainable activities (consistent with the system) (A.1) | 324 | 32.5% | 32.5% | 32.5% | No data | |||||||||||||||
| A.2 Activities eligible for systematics but not environmentally sustainable (activities not in accordance with systematics) | ||||||||||||||||||||
| 4.3 Electricity generation from wind power | 4.3 | 1.2 | 0.1% | |||||||||||||||||
| 4.5 Electricity generation from hydropower | 4.5 | 9.6 | 1.0% | |||||||||||||||||
| 4.9 Transmission and distribution of electricity | 4.9 | 1.2 | 0.1% | |||||||||||||||||
| 4.10 Storage of electricity | 4.10 | 17.9 | 1.8% | |||||||||||||||||
| 4.15 District heating/cooling distribution | 4.15 | 7.9 | 0.8% | |||||||||||||||||
| 4.20 Cogeneration of heat/cool and power from bioenergy | 4.20 | 4.1 | 0.4% | |||||||||||||||||
| 4.24 Production of heat/cool from bioenergy | 4.24 | 0.4 | 0.0% | |||||||||||||||||
| 4.30 High-efficiency cogeneration of heat/cool and power from gaseous fossil fuels | 4.30 | 33.6 | 3.4% | |||||||||||||||||
| 4.31 Production of heat/cooling from gaseous fossil fuels in an efficient district heating and cooling system | 4.31 | 0.5 | 0.1% | |||||||||||||||||
| 5.4 Modernisation of sewage collection and treatment systems | 5.4 | 8.4 | 0.8% | |||||||||||||||||
| Operating expenditure on activities that qualify for systematics but are environmentally unsustainable (non-systematic activities) (A.2) | 85 | 8.5% | Not applicable | Not applicable | ||||||||||||||||
| Total (A.1 + A.2) | 409 | 41.0% | 32.5% | No data | ||||||||||||||||
| B. NON-SYSTEMATIC ACTIVITIES | ||||||||||||||||||||
| Operating expenditure on non-systematic activities (B) | 589 | 59.0% | ||||||||||||||||||
| TOTAL (A + B) | 998 | 100% | ||||||||||||||||||
Total qualifying turnover amounted to PLN 12,277 million, consisting of revenue in the segments:
| Segment | value (PLNm) |
| Distribution | 6 783 |
| Renewables | 3 281 |
| District Heating | 2 110 |
| Turnover | 74 |
| Conventional Generation | 20 |
| Circular Economy | 9 |
| Total | 12 277 |
| including: | |
| Turnover from environmentally sustainable activities (in line with the systematic) | 7 935 |
| Turnover from systematically eligible but environmentally unsustainable activities (non-systematically compliant activities) | 4 342 |
Within the segments, systematically compliant activities were identified, generating a total turnover of PLN 7,935 million, the majority of which related to:
Chart: Share of turnover of environmentally sustainable and non-environmentally sustainable and non-systematic activities.
The total CapEx eligible amounted to PLN 6,900 million, consisting of capital expenditure in the segments:
| Segment | value (PLNm) |
| Distribution | 2 575 |
| Other activity | 1 968 |
| Renewables | 1 566 |
| District Heating | 736 |
| Conventional Generation | 50 |
| Turnover | 3 |
| Circular Economy | 1 |
| Total | 6 900 |
| including: | |
| Investment expenditures from environmentally sustainable activities (consistent with the systematics) | 3 852 |
| Investment expenditures from activities eligible for systematics but environmentally unsustainable (non-systematic activities) | 3 048 |
Within the segments, activities were identified in line with the systematic, generating total capital expenditure of PLN 3,852 million, the majority of which related to:
Chart: Share of environmentally sustainable and non-environmentally sustainable and non-systematic activities in capital expenditure.
The total eligible OpEx reached PLN 409 million, consisting of operating expenses in the segments:
| Segment | value (PLNm) |
|---|---|
| Distribution | 284 |
| Renewables | 61 |
| District Heating | 47 |
| Conventional Generation | 12 |
| Circular Economy | 5 |
| Turnover | 1 |
| Total | 409 |
| including: | |
| Operating expenditure from environmentally sustainable activities (consistent with the systematics) | 324 |
| Operating expenditure from activities that qualify for systematics but are environmentally unsustainable (non-systematic activities) | 85 |
Within the segments, systematically compliant activities were identified, generating total operating expenses of PLN 324 million, of which significant ones related to activity 4.9 Electricity transmission and distribution in the Distribution segment.
Chart: Share of environmentally sustainable and non-environmentally sustainable and non-systematic activities in operating expenditure.
Disclosure in accordance with Annex III of Commission Delegated Regulation (EU) 2022/1214, supplementing Commission Delegated Regulation (EU) 2021/2178 with Annex XII on standard templates for the disclosure of information referred to in art. 8 sec. 6 and 7. – i.e. for nuclear and natural gas activities is presented in Annex 1.
Linking the Taxonomy indicators to PGE Group strategy
It is the intention of PGE Group to make material investments in compliance with the EU Environmental Taxonomy as far as technologically feasible. The investments currently under way will result in an increase in the value of taxonomic indicators, not only in the first two objectives, but also in the next four, which will be implemented by the European Union in the near future.
Of key importance for the results covering 2022 is the scale of operations in the area of the Conventional Generation segment, which is scheduled for divestment in 2023. In the past year, it had a decisive impact not only on the level of turnover and operating expenditure, but also significantly influenced the level of overall capital expenditure, primarily through expenditure of a maintenance nature required to run the business.
The basis for current and future development investments, in line with PGE Group Strategy, are investments in renewable energy sources (RES), electricity distribution and zero- and low-carbon energy sources.