Organisational capitals

• 6 092 PLN m – Employee benefits expenses
• 342 972 – Total number of training hours completed
• 130 – Total number of work-related accidents
• 3,40 – Accident frequency rate
• 62,38 – Accident seriousness indicator

Transformation of capitals

Thanks to skillful and effective use of human capital, we are able to properly use our manufactured capital and increase our financial capital, which in turn is used to increase the productivity of human capital. Employee training and adapting their competences to the tasks allows us to increase human capital potential, although the Group is facing a big challenge in the form of adequate filling a generational gap. Appropriate use of human capital naturally contributes to growing and building up intellectual capital.

Capitals in new business model

Changing to a low-carbon and climate-neutral economy requires the diffusion of new skills. The value of skills in the area of ​​modern services will increase. The competences of leaders related to change management will be more and more important. This requires further employee development focused on the ​​renewable energy area and modern energy services, which requires a new quality of management. At the same time, demographic trends force productivity growth, automation and digitization.

• Employee volunteering: since the first edition of the program, i.e. since 2014, we completed approx. 300 projects across the whole country. These included building new playgrounds, renovating school classrooms and delivering complete equipment for kids and youth day centres.
• PGE’s volunteer projects in 2022 focused primarily on environmental topics and concerned mainly cleaning works in the Kampinos National Park, the Roztocze National Park and the Bieszczady Mountain.
• Energy Backpack: this is a continuation of a campaign started over a dozen years ago by Łódź-based electricians and consisting of gifting school supplies to first-graders. Since 2016, the company has donated almost 2,000 schoolbags.
• White stork protection: our energy professionals have for many years been participating in activities intended to protect the white stork, mainly by setting up platforms on LV line pillars. So far, we have installed over 28.7 thousand platforms (including 787 in 2022) within our distribution area to ensure bird safety.
• Forests full of energy: this is an in-house ecological initiative created in 2000 by energy professionals from PGE Dystrybucja and developed by employees from other PGE Group companies.
• „Blood not water – don’t be indifferent!” is the slogan uniting all blood donation campaigns in PGE Group. Throughout the year, PGE Group’s power engineers donate blood both during cyclical campaigns, on festive occasions and in response to requests for help for specific individuals. More than 400 employees of PGE Group are affiliated with seven clubs of voluntary blood donors.

Transformation of capitals

Social relations are a source of enterprise value creation. Thanks to social relations, production, intellectual, human and financial capital is built in the long-term. However, social capital also encompasses commitments, which we diligently satisfy through short-term deployment of financial capital. By promoting the right attitudes towards the natural environment in relations with our stakeholders, we contribute to a reduction in the use of natural capital.

Capitals in the new business model

Relations with the social environment will change along with changes in the Group’s activities, which are involved in new locations. At the same time, despite the planned separation of coal assets, PGE Group intends to remain operative in the regions undergoing transformation – by implementing investments there and supporting the process of social changes.

• 73 435 – Sales revenue (PLN m)
• 8 657 – EBITDA (PLN m)
• 12% – EBITDA margin
• 4 299 – EBIT (PLN m)
• 11 609 – Net cash from operating activities (PLN m)

Transformation of capitals

Financial stability is the basis for the proper use of other types of capital and its growth.

In 2022, thanks to the use of financial capital, we increased our productive capital and supported human and social capital.

Financing of innovative projects allows us to increase PGE’s intellectual capital. At the same time, a sufficient level of financial capital allows us to effective use natural capital and thus reduce its use.

Capitals in the new business model

The transformation of the business model – increasing the predictability of EBITDA and limiting the exposure to risks related to coal-based operations – will enable the Group to use financing more widely. This will allow for the planning and implementation of economically effective investments building future, stable value in financial terms through the creation and purchase of new productive capital.

• We have introduced a model for developing and implementing new solutions for the management of high-risk undertakings. In 2022  we continued operations of PGE Ventures, Corporate Venture Capital funds, whose goal is to invest in start-ups. PGE Ventures is able to meet the capital needs of startups at all stages of development (from the seed phase, through the growth phase, to the expansion phase).
• The portfolio of projects includes, among others companies:
  • ConnectPoint –has implemented systems to manage wind farms, CHPs, municipal distribution and power plants in Europe. These solutions will improve the efficiency of generation and distribution processes. As a result, the operational costs and CO₂ emissions can be reduced.
  • PySENSE – is Polish technological company offering complexed telecommunications solutions in range of Internet of Things.
• Our search for innovations is aligned with the idea of transformation towards circular economy.
• Research and Development Centre for the Circular Economy is the specialised research facility established for the development of technologies and solutions for recovery of raw materials. The main task of the Centre will be to develop technologies for waste processing, raw material recovery and the manufacture of full-value products from extracted resources, as well as to develop specialised solutions for renewable energy sources used in photovoltaic installations and wind farms.

Capital transformation

Intellectual capital is developed using financial capital. Skilful use of funds creates the Group’s competitive position in the future, allowing for further growth of financial capital or increase in the value of manufactured capital due to it being used more effectively. Growing the potential of intellectual capital also contributes to the development of the Group’s human capital.

Capitals in the new business model

The role of intellectual capital in the changing business environment is to consistently grow. For this reason, the Group’s Strategy provides for focusing on building an efficient and effective organization – digitization of operations, remote asset management and monitoring.

The organization will increasingly rely on Big Data and AI solutions, as well as on robotics, machine communication and distributed ledger technologies.

• 70,01 – CO₂ emissions (million tonnes)
• 50 337 – NO_x emissions (tonnes)
• 56 999 – SO₂ emissions (tonnes)
• 1 890 – particulate matter emissions (tonnes)
• 7 017 – quantity of hazardous waste** (tonnes)
• 7 028 836 – quantity of waste other than hazardous** (tonnes)

Transformation of capitals

Natural resources are consumed in producing electricity and heat at our conventional and CHP plants, however providing reliable electricity and heat supplies, we work for the society and industries, thus strengthening social capital. Using natural capital in an effective manner, we are increasing our financial capital that is used for development and the strengthening of our other capitals.

We strive to use natural capital as efficiently as possible, so following the idea of a circular economy, we introduce combustion by-products and mining by-products into the economic cycle, which we try to manage as much as possible.

Capitals in the new business model

In the target business model, PGE will use non-renewable natural capital to a lesser extent. The basis for the production activity will be the use of renewable wind and solar energy. We will also seek to increase the efficiency of raw material use through the development of circular economy.

• 62,94 – Net electricity output conventional assets (TWh)
• 2,24 – Net electricity output renewable assets (TWh)
• 0,95 – Net electricity output pumped storage assets (TWh)
• 37,07 – Distribution of electricity (TWh)
• 52,79 – Production of heat (PJ)

Transformation of capitals

Implementing growth projects and acquiring new assets, we increase the Group’s manufactured capital of the Group. This development takes up financial capital but in the long term these investments should contribute to increasing financial capital. We focus on effectiveness and using the best available technologies, thanks to which we constantly contribute to reducing the use of natural capital. We constantly increase the use of new technologies and improve the existing ones, building up competences within our intellectual capital.

Capitals in the new business model

After the separation of coal assets, the Group’s production capital will mostly be network assets, as well as combined heat and power plants and existing renewable installations. With the further implementation of the Strategy, renewable capacities are to increase significantly while the productive capital of the CHP plants will be transformed towards low-emission.