Organisational capitals


Human capital

Employees are PGE’s most valuable capital. It is thanks to their experience and involvement that we are able to build an organisation that combines social responsibility with business objectives.

PGE Group is a place for people with passion and motivation. Our ambition is to be the most effective energy group in Poland. This also entails the implementation of best practices in corporate governance as regards human capital management, support for business decisions and management of productivity as well as standardisation of support processes.

2022 2021 2020
Number of employees 38 355 38 299 40 444
Share of female employees 20,30% 20,20% 20,20%
Share of male employees 79,70% 79,80% 79,80%
  • 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

2022 2021 2020
Employee benefits expenses 6092 5098 5450
Total number of training hours completed 42 872 50 034 42 105
Total number of work-related accidents 130 160 176
Accident frequency rate* 3,40 4,17 4,35
Accident seriousness indicator** 62,38 64,63 68,68
* number of accidents/ number of employees * 1000
** total number of absent days of people injured at work / number of people injured at work (excluding victims of fatal accidents)
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.

Social capital

For us, social capital means good relations with local communities in the areas where we operate. Caring for these relationships is also a principle enshrined in PGE Group’s Code of Ethics. The companies and branches of our Group are in many cases the largest workplaces in the regions.

PGE Group fosters local partnerships focused on development and cooperation. It makes every effort to be a good and responsible neighbour. Thanks to the resources we have at our disposal, we can become significantly involved in local life by supporting educational, sporting or cultural initiatives. The industry in which we operate is characterised by a long-term planning horizon, and social acceptance of our activities is an important component of business. We believe that only sustainability based on partnerships is possible in the long term.

  • Organisational culture based on dialogue with employees and the surroundings.
  • Adoption of PGE Group’s Code of Ethics and the resulting provisions in the Code of Conduct for PGE Group’s Business Partners and the Anti-corruption Policy.
  • Since 2011 the Foundation supports historical, educational, environmental and social activities. It pursues its mission through its own and partner projects. It also makes charitable donations, projects in the field of cultivating historical memory and national identity, projects in the field of education, upbringing and sport ( „Energy Professionals in the Warsaw Uprising – we remember the heroes”, „Energetic Backpack”).
  • In 2022, PGE continued to carry out activities promoting consumer patriotism, responsible consumer attitudes and encouraging people to buy Polish products in the social campaign „Polish – I’m buying it!”.
  • PGE S.A.’s marketing activities, understood as sports and culture sponsoring and advertising activities, including image and sales ad campaigns and other forms of brand promotion, contributes to strengthening the position of the PGE brand.

Taxes paid to central budget (PLN million) 3 897
Social security contributions (PLN million) 1 554
Taxes paid to local governments (voivodship, poviat and municipality budgets) (PLN million) 2 189
Customer satisfaction index (CSI) 88,0%
  • 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.

Financial capital

We use funds generated in the course of operating activities as well as equity and debt financing in order to develop the Group and create lasting value for shareholders and bondholders. We use funds for organic growth and acquisitions.

2022 2021
Equity (PLN million) 54 383 48 291
Net debt (PLN million) -2 656 4 228
Available/unused financing (PLN million) 22 235/14 413 20 186/10 365
Volume of allocated free CO2 allowances (million tonnes) 0,63 0,64
Regulatory asset base in Distribution (PLN million) 19 620 18 929
Capital expenditures (PLN million) 7 053 4 662
  • 73 435 – Sales revenue (PLN m)
  • 8 657EBITDA (PLN m)
  • 12%EBITDA margin
  • 4 299EBIT (PLN m)
  • 11 609 – Net cash from operating activities (PLN m)

2022 2021
Sales revenue (PLN m) 73 435 52 730
EBITDA (PLN m) 8 657 9 535
EBITDA margin 12% 18%
EBIT (PLN m) 4 299 5 123
Net cash from operating activities (PLN m) 11 609 7 456
Net profit (PLN m) 3 390 3 945
Earnings per share (PLN) 1,56 2,12
Net debt/12 M EBITDA (x) -0,31 0,44
Rating (Moody’s/Fitch) Baa1/ BBB+ Baa1/ BBB+
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.

Intellectual capital

PGE Group’s business experience and brand’s position are values that enable us to maintain our market position and adapt to a changing world.

The systems and procedures used by us allow the organisation to function efficiently and conduct business effectively in the area of electricity and heat generation and distribution of electricity. Along with the changes happening in our surroundings, the role of research and development activities is becoming relatively greater than material values.

  • PGE employees’ knowledge and skills.
  • Concessions for activities related to lignite mining and the production distribution and trade in electricity and heat.
  • IT systems for infrastructure operations, customer service and support of management and communication.
  • Effective procedures.
  • 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.

Natural capital

Lignite and hard coal are key fuels used to generate electricity and heat at our conventional and CHP plants. Natural gas and biomass are also included in our fuel mix. Completing the fuel mix are natural gas and biomass. Increasingly, natural capital is being recycled as part of the circular economy.

We are investing in technologies that directly use the forces of nature – wind, water and sun energy, which are converted into electricity at our renewables installations. We strive to effectively use natural resources. Our priority is to limit negative environmental footprint and protect the natural ecosystem.

With a combination of its own lignite resources, generation assets and distribution networks, The PGE provides secure and reliable electricity supplies to more than 5 million customers throughout Poland, including households, businesses and institutions. This means that it supplies almost every third electricity consumer in Poland. The PGE is also the leader in district heating production.

At PGE Group, we strive to use natural capital as efficiently as possible, which is why another segment of our business, Circular Economy, was set up in 2021. We recycle waste as full-value substances in other branches of the economy (cement industry, construction, road construction, mining), and consequently reduce the amount of final waste generated. In 2022, the volume of combustion by-products received from suppliers in the Circular Economy segment amounted to over 3.6 million tons and increased by 11% compared to the previous year.

We also utilise minerals associated with lignite deposits, which play an important role in sustainable supply chains for commodities and materials. These include limestone, lake chalk, sands, clays, flint cobbles and erratic boulders in the form of granitoids and other Scandinavian rocks. Management of associated minerals contributes to rational deposit management and protection of the earth’s surface.

2022 2021
Industrial resources of lignite (million tonnes) 782 837
Lignite extraction (million tonnes) 51,1 47,2
Use of hard coal (million tonnes) 10,74 11,98
Use of natural gas (million m3) 832,9 1173,40
Use of biomass (million tonnes) 0,481 0,709
Use of renewable resources (water, wind, sun) – gross output (TWh) 2,24 2,33
Water abstraction for production purposes (million m3) 23 343 193 26 529 119
  • 70,01 – CO2 emissions (million tonnes)
  • 50 337 NOx 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)

2022 2021
CO2 emissions (million tonnes) 70,01 70,75
NOx emissions (tonnes) 50 337 52 818
SO2 emissions (tonnes) 56 999 62 931
Particulate matter emissions (tonnes) 1 890 2 033
Quantity of hazardous waste** (tonnes) 7 017 6 168
Quantity of waste other than hazardous** (tonnes) 7 028 836 6 194 850
** PGE GiEK, PGE Energia Odnawialna, PGE Dystrybucja, PGE EC.
*** PGE GiEK.
**** PGE GiEK, PGE Energia Odnawialna, PGE EC.
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.

Productive capital

We own the largest generation asset base in Poland in the area of electricity and heat production. At the same time, we are the second largest distributor of electricity in Poland, owning a substantial asset base for the transmission of electricity. This is the material foundation of our business.

2022 2021
Number of lignite-based plants 2 2
Number of hard coal-based plants 3 3
Number of CHP plants 16 16
Number of wind farms 20 17
Number of hydro-power plants and pumped-storage plants 33 33
Number of photovoltaic plants 24 5
Installed electricity capacities at conventional assets (MW) 15 460 15 460
Installed heating capacities (MW) 7 766 7 685
Installed renewables capacities (MW) 1177 1070
Installed pumped storage capacities* (MW) 1256 1256
Number of distribution stations 96 588 95 987
Capacity of distribution stations (MVA) 33 475 32 956
Length of distribution lines (km) 298 670 297 029
* without pumped storage plants with natural in-flow
  • 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)
  • 37,07Distribution of electricity (TWh)
  • 52,79 – Production of heat (PJ)

2022 2021
Net electricity output conventional assets (TWh) 62,94 65,75
Net electricity output renewable assets (TWh) 2,24 2,33
Net electricity output pumped storage assets (TWh) 0,95 0,69
Distribution of electricity (TWh) 37,07 37,74
Production of heat (PJ) 52,79 56,77
Sale of heat (PJ) 51,28 55,07
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.

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