ESG
Society
Own workforce
Material impacts, risks and opportunities
[SBM-2] [SBM-3] The group identified positive impacts in the area of workforce in topics such as: Safe employment conditions for employees, Adequate wage for employees, Social dialogue with employees, Freedom of association, Collective bargaining, Work-life balance for employees, Health and safety, Training and skills development for employees, Diversity in the workplace, Employee privacy.
The Group uses two working time systems:
The remuneration policy is adapted to three groups of employees:
There is a difference between the number of women and men employed in the Group. The dominance of men in the employment structure is characteristic of companies in the industrial and energy sectors, and is mainly caused by professional conditions and women being less represented in technology and engineering fields.
The social dialogue conducted within the Group between the employer and the social side is particularly important because the lack of acceptance from the unions/ employees may have a negative impact on the pace and scope of changes resulting from the change in the business model. Company management boards conduct intensive dialogue with unions during regular meetings. The Management Board also implements employee recommendations and expectations resulting from the results of the annual Employee Opinion Survey as part of the Improvement Action Plan.
There are 8 trade union organisations operating in the Group. Trade union membership is 75% at KOGENERACJA S.A. and 50% at EC Zielona Góra S.A. The companies’ management boards hold regular talks with trade union organisations. Disputes with trade unions are most often addressed through negotiations and end with the conclusion of agreements.
The transformation of production assets is aimed at reducing negative impacts on the environment, but also has an impact on the Group's workforce. As a preventive measure, the Group undertakes proactive employment planning and new career development paths, competency and qualification development, as well as succession planning to manage the risks and opportunities arising from change.
Policies related to own workforce
The Health and Safety Policy covers all Group companies; at KOGENERACJA S.A. the General Occupational Health and Safety Instruction was additionally implemented.
The implemented regulations are based on the following assumptions:
In order to ensure proper cooperation with employees, Group companies have adopted the following procedures common to the entire PGE Group:
Additionally, the companies of KOGENERACJA Group have implemented internal regulations:
The above documents, described in detail in relevant parts of the Statement, cover such topics as equal treatment and protection of own workers, regardless of gender, age, disability, race, religion, nationality, political beliefs, trade union membership, ethnic origin, faith, sexual orientation or type of employment. They also prohibit mobbing/bullying and sexual harassment.
The Work Regulations are the basic documents regulating the organisation and internal order of employment in the Group companies and the related rights and obligations of the employer and employee.
Employee rights and ethical principles are defined in the Code of Ethics, which is integral to all companies in the PGE Group. The Group is committed to combating mobbing, providing employees with a safe, comfortable working environment and respecting their right to association.
The Group strictly prohibits forced and child labour and all forms of discrimination, including on the basis of racial or ethnic origin, skin colour, gender, sexual orientation, gender identity, disability, age, religion, political opinions, national or social origin. The Group complies with international standards and guidelines on Human Rights, including the UN Guiding Principles on Business and Human Rights, the International Labour Organization Declaration on Fundamental Principles and Rights at Work and the OECD Guidelines for Multinational Enterprises, and expects the same from its business partners.
The own workforce area in the companies of KOGENERACJA Group is covered by the Integrated Management System, which includes, among others: Quality Management System compliant with the PN-EN ISO 9001 standard.
Information about the adopted regulations is provided to employees via electronic correspondence, newsletter, on notice boards, and during employee meetings. Employees also have constant access to the Internal Normative Acts (WAN) database on the intranet. The Management Boards of the Group companies are responsible for the implementation of the policies.
Communication and cooperation with employees
[S1-2]Responsibility for cooperation with employees rests directly with the management personnel responsible for subordinate organisational units. Collaboration with employees is ongoing and usually takes place directly. The Supervisory Boards of both companies include employee representatives; additionally, KOGENERACJA S.A. has an Employee Council.
In accordance with the Articles of Association of each Group company, employees, based on a written notification sent by the Electoral Committee, appoint one member of the Supervisory Board. The principles for electing an employee representative to the Supervisory Board are specified in the Terms of Reference of the Supervisory Board of Zespół Elektrociepłowni Wrocławskich KOGENERACJA S.A. and the Terms of Reference of the Supervisory Board of EC Zielona Góra adopted by a resolution of the Supervisory Board. The elections are direct and conducted by secret ballot, based on the principle of universal suffrage. The elections are conducted by the Electoral Committee selected by the Supervisory Board from among the employees separately in each company.
The Company organises elections to the Employee Council upon the written request of a group of at least 10% of employees. The Employee Council is appointed for a period of 4 years under the Act on informing and consulting employees of 7 April 2006. The number of members of the Council depends on the number of employees. KOGENERACJA S.A. employs fewer than 500 people, so it appoints 5 members. Elections of members of the Employee Council are direct and take place by secret ballot. The employer provides the Employee Council with information regarding, among other things, the activity, economic situation, structure and anticipated changes in employment.
The Employee Council and the Trade Unions are the bodies which, following consultations, issue opinions on the Statement in the S1 area – Own workforce, and the results of the consultations have been included in the Statement.
In certain cases, employee dialogue is conducted by the Management Board with employee representatives in the Trade Unions operating in both Group companies.
Each year, the Group conducts an anonymous Employee Opinion Survey, which is a tool enabling direct dialogue with employees and collecting necessary feedback. The survey results are one of the most important sources of information on how companies’ activities are perceived, what employees need, and what changes or improvements should be considered. The survey also allows us to measure the level of engagement.
The survey is conducted at the beginning of the year, and the results are analysed by lower-level management and later presented directly to the teams. Based on the results, action plans are developed jointly to maintain or improve results where necessary.
An open dialogue with employees is also conducted on the intranet, where each employee can add their own commentary to the presented content.
Another tool for dialogue with employees is the Competency Assessment, which takes place once a year. The Competency Assessment process covers 3 areas: Assessment of the compliance of attitudes and behaviours with the competency profile of the position, assessment of expert knowledge and development planning for the following year.
Channels for reporting wrongdoing and the process for remedying negative effects
[S1-3] Group companies have clear rules for reporting wrongdoing, as laid down in the Internal Reports and Whistle-blowers Protection Procedure. The procedure requires reporting any wrongdoing, including violations of human or workers’ rights, either by name or anonymously. Each reported case is analysed and investigated by a specially appointed committee. In accordance with the companies’ internal procedures, incidents are investigated immediately, but no later than three days from the reporting date.
Once a breach of law or internal rules has been identified, the systemic causes of the situation are analysed and, where necessary, corrective actions are taken. As part of the investigation conducted in accordance with the Procedure, recommendations are developed and submitted to the Management Boards of the companies by the teams conducting the investigation. The implementation of the recommendations is monitored.
Persons suspected of breaking the law or ethical principles have the opportunity to provide explanations. Once guilt has been established, the employer has the right to hold the employee accountable in accordance with the Work Regulations.
The Internal Reports and Whistle-blowers Protection Procedure implemented in the Group companies recommends contacting the supervisor in the first place. If for various reasons this is not possible, the Whistleblower may report the case as follows:
KOGENERACJA S.A. also has an Ethics Council, where ethical issues can be reported to one of the members of the Ethics Council during a direct meeting, by letter, telephone or email to the following address: Rada.Etyki@kogeneracja.com.pl.
The whistleblowing system guarantees anonymity while preventing any potential retaliatory actions. This creates a sense of security for whistleblowers and maximises the chance of discovering and eliminating any irregularities as quickly as possible. The system enables reporting of both the risk of wrongdoing (early warning system) and actual wrongdoing.
Information about retaliatory actions against a Whistleblower should be directed to the Management Board, which orders the implementation of verification activities to an internal organisational unit or an authorised person at the Company.
The Group conducts an Employee Opinion Survey once a year in the form of an anonymous questionnaire. Closed-ended questions cover, among others, relations with the supervisor, work organisation, health and safety, remuneration, opportunities for development and use of potential, well-being, compliance with ethical principles, assessment of compliance with, for example, the Company's values, assessment of activities for environmental protection in the organisation, while open-ended questions allow for the presentation of opinions in any scope. Survey results are communicated on the Intranet. The response rate was 86%.
In the surveys conducted so far there were no questions regarding the effectiveness of channels for reporting wrongdoing or trust in those channels. However, the survey results confirmed that employees believe that they are familiar with the ethical principles followed by the Group (87%), that they are guided by the ethical values adopted by the Company (89%), and that both the Company and their supervisors comply with these principles (81% and 89%, respectively).
Additionally, the Ethics Council operating in KOGENERACJA S.A. accepts reports relating to ethics in the organisation. In 2024, 45 meetings were held that did not concern violations of the Code of Ethics. The implementation in 2024 of the Internal Reports and Whistle-blowers Protection Procedure was strengthened by internal communication on the Intranet and in newsletter articles and publications in the PGE Group's monthly magazine (Pod Parasolem).
The Group companies maintain separate registers of reports of wrongdoing, reports on the implementation of recommendations from conducted investigations and inspections in the area of occurrence of abuses. The registers are maintained by the Compliance Coordinator. No reports were identified in 2024.
Actions
[S1-4] By complying with the principles and provisions of the Code of Ethics, the Group carries out activities that provide its employees with the best possible and friendly work environment. All employees are provided with safe working conditions, appropriate protective clothing and safe, efficient equipment necessary to perform their job duties. These aspects are described in, among others: Work Regulations, a document which also oblige employees to participate in health and safety training and perform work in accordance with safety rules. The Work Regulations apply to all Employees of the Group, regardless of the type of employment contract, type of work performed, position held, working hours or place of work.
The description of activities related to the area of occupational health and safety is presented in Occupational Health and Safety (OSH) [S1-14].
In order to ensure employment stability and protect the interests of its own workforce, the Group implements the provisions of the Recruitment Procedure, the Procedure for hiring and changing employment conditions and terminating employment contracts. Those documents provide that the basic form of employment in KOGENERACJA Group is employment under an contract for an indefinite period.
The Group focuses on employee development through a system of internal training implemented, for example, in development and educational projects in the form of online training. The Group also has an employee development programme supported by an internal recruitment system.
The Group’ uses single-shift and multi-shift (four-team) working time systems, adapted to the specific nature of positions and operational needs. The Group's employees may benefit from occasional remote work and flexible working hours in the form of a two-hour period during which the employee should start and finish work after the time resulting from the working time system applicable to them. These solutions allow employees to better manage their work-life balance. This applies mainly to administrative and office workers.
Goals
[S1-5] In the social area relating to own workforce, 2 UN Sustainable Development Goals arising from the Strategy were identified:
- Providing high-quality jobs, a clear career path and extensive training opportunities.
- Minimising employee accidents by ensuring a safe working environment, building awareness through dedicated information campaigns and training.
- Development of employee competences and qualifications, managing generational change.
- Eliminating hazards and reducing risks related to occupational health and safety.
- Zero fatal accidents at work among own employees and subcontractors' employees.
KOGENERACJA Group continues to focus on employee safety, competence development, and promoting sustainable practices in the workplace.
Characteristics of the undertaking's employees
[S1-6] KOGENERACJA Group conducts activities in Poland only. The gender category other and not disclosed is not presented in the tables below for the Group because it is not applicable.
| KOGENERACJA GROUP | ||
As at 31 December 2024 | As at 31 December 2024 | |
|---|---|---|
Women | Men | |
| Total number of employees (persons) | 96 | 441 |
| Employees employed: | ||
| full time | 96 | 440 |
| part time | - | 1 |
| Employees employed: | ||
| for an indefinite period | 91 | 400 |
| for a fixed term | 5 | 41 |
| KOGENERACJA GROUP | ||
For the year ended 31 December 2024 | For the year ended 31 December 2024 | |
|---|---|---|
Women | Men | |
Average number of employees (persons) | 97 | 450 |
Among the Group’s employees there are no non-guaranteed hours employees.
| KOGENERACJA GROUP | |
For the year ended 31 December 2024 | |
|---|---|
| The total number of employees who have left the organisation during the reporting period | 50 |
| Employee turnover (%) | 9.3 |
The number of employees who left the Group in 2024 was 50, 34 of whom reached the retirement age. Some of the positions vacated by people who retired due to the change in production technology at EC Czechnica 2 were not replaced by new people.
Characteristics of non-employee workers in the undertaking’s own workforce
[S1-7] Non-employees who constitute own workforce are persons not bound by an employment contract but who perform tasks for companies under other contracts. This group includes Management Board Members in the Group companies who perform their functions by running their own business activity (self-employed), persons employed under contracts of mandate and contracts for specific work, and others. The following were classified in the other category: Supervisory Board Member In 2024, the Group did not employ any people under B2B contracts or through Temporary Employment Agencies (employee leasing).
| KOGENERACJA GROUP | |
For the year ended 31 December 2024 | |
|---|---|
| Management services contracts (self-employed) | 5 |
| Contracts of mandate | 7 |
| Contracts for specific work | - |
| B2B | - |
| Employee leasing | - |
| Other | 15 |
Collective bargaining coverage and social dialogue
[S1-8] The dialogue between employees and Group companies is supported by the freedom of association of employees specified in the Work Regulations.
At KOGENERACJA S.A., there are five trade union organisations:
At EC Zielona Góra S.A., employees are associated in three trade union organisations:
| KOGENERACJA GROUP | |
For the year ended 31 December 2024 | |
|---|---|
| Number of employees covered by the collective agreement (persons) | 525 |
| Percentage of employees covered by the collective agreement (%) | 98 |
Trade Unions operate in the companies of KOGENERACJA Group, which include employee representatives elected in free elections. The Unions’ tasks include, among others, giving opinions on planned changes and advising on making decisions directly concerning employees. Elected employees represent all employees in the company and the term of office in the Trade Unions lasts 3 years.
A dialogue with trade unions is a preferred method of consultations with employees. KOGENERACJA S.A. and EC Zielona Góra S.A. operate independently in this field. Collective bargaining and social dialogue coverage is restricted to Poland.
Diversity
[S1-9] Diversity is promoted by all forms of activities aimed at ensuring acceptance and effective use in the organisation of such aspects as gender, age, origin, abilities and appearance, religion and beliefs, sexual orientation, disability or work-life balance.
In 2022, the PGE Group implemented a Diversity Policy that sets directions for diversity and creating a friendly, accepting workplace for employees and other people, including business partners. The Policy is a document setting standards for taking into account diversity in creating a working environment.
This document covers all companies forming the PGE Group, including KOGENERACJA S.A. and EC Zielona Góra S.A. The values and principles presented in the Diversity Policy constitute a detailed description of the provisions of the applicable PGE Group Code of Ethics, in particular the principles contained in its Part 2. "The people around us."
The purpose of the Diversity Policy is to create a working environment open to different points of view, multiculturalism and diversity of ways of thinking, based on cooperation, mutual support, showing respect and ensuring fair and equal treatment, especially in the areas of: recruitment, selection and employment, access to professional development, creating workplaces free from mobbing, discrimination and other inappropriate behaviours that are contrary to the Code of Ethics but do not exhaust the hallmarks of mobbing or discrimination, internships and apprenticeships, remuneration and valuation of positions, vertical and horizontal promotions, employee assessment, solving problems and conflicts.
The companies of KOGENERACJA Group declare that the process of electing people to management positions takes into account such factors as relevant education, professional experience, qualifications and skills of the candidates, and does not disadvantage any candidates.
| KOGENERACJA GROUP | ||
For the year ended 31 December 2024 | For the year ended 31 December 2024 | |
|---|---|---|
Women | Men | |
| <30 years | 11 | 34 |
| 30-50 years | 54 | 195 |
| >50 years | 31 | 212 |
| Total number of employees (persons) | 96 | 441 |
| <30 years | 2 | 6 |
| 30-50 years | 10 | 36 |
| >50 years | 6 | 40 |
| Employee proportion (%) | 18 | 82 |
| KOGENERACJA GROUP | ||
For the year ended 31 December 2024 | For the year ended 31 December 2024 | |
|---|---|---|
Women | Men | |
| Number of people in senior management | 5 | 6 |
| Gender percentage in senior management (%) | 45 | 55 |
The Group used a definition of top management as one level below the administrative body.
Adequate wage
[S1-10] The Group constantly monitors market rates to maintain their rates at an appropriate level. All employees receive adequate pay in line with applicable benchmarks.
Social protection
[S1-11]Group companies offer their employees social protection, which includes:
In addition, as part of the benefits from the Company Social Fund, support is offered to employees and their families in difficult life situations, e.g. in the form of psychological care and assistance in kind or in cash in cases of unforeseen circumstances or difficult financial situations, also for retired employees and their families.
Training and skills development
[S1-13] Employees of KOGENERACJA Group can benefit from, among others, the following training courses:
Employees also have access to the e-learning platform.
Additionally, the Group offers partial or full reimbursement of tuition costs for higher education, secondary school and postgraduate studies. Training rules are governed by Training and Development Rules at PGE Group.
| KOGENERACJA GROUP | ||
For the year ended 31 December 2024 | For the year ended 31 December 2024 | |
|---|---|---|
Women | Men | |
| Number of training hours | 2 426 | 9 648 |
| Number of employees trained | 415 | 1 786 |
| Number of training hours per employee | 48 | 43 |
In 2024, the Training Plan was implemented at a level of 91%.
Employees are subject to an annual competencies assessment. This process is covered by the following procedures: Assessment of competences at PGE Group and the Procedure for conducting and monitoring performance reviews. The results of performance reviews are the basis for determining training needs and development plans of employees.
| KOGENERACJA GROUP | |
For the year ended 31 December 2024 | |
|---|---|
| Employees subject to evaluation (persons) | 537 |
| Percentage of employees evaluated (%) | 100 |
Health and safety
[S1-14] The Group’s organisational culture is based primarily on continuous improvement of the work environment safety by ensuring the safety of own employees, subcontractors’ employees and guests staying on the companies’ premises. The Group’s goal is “zero accidents”, both among own employees and subcontractors’ employees.
In 2024, no serious, collective or fatal accidents were reported at KOGENERACJA S.A. or EC Zielona Góra S.A. In 2024, all accidents at the Parent Company in were minor accidents.
| KOGENERACJA GROUP | |
For the year ended 31 December 2024 | |
|---|---|
| Number of minor work-related accidents involving employees | 2 |
| Fatalities | - |
| Collective accidents | - |
| Work-related accident frequency rate (employees)* | 5 |
| Number of days of absence due to work-related ill health** | 171 |
| Number of work-related accidents involving non-employees | 4 |
* accident frequency indicator employees = number of accidents with a loss of day * 1,000,000 hours/ number of hours worked
** absenteeism rate = number of absenteeism hours/ 1,000 hours worked
Group companies aim to reduce occupational hazard by promoting a safety culture through:
[S1-4] The Group has implemented a safety culture audit system which aims to fully assess progress in the development of a safety culture. Those audits include 13 business areas, including safety management, effective communication, quality procedures and standards and management buy-in. The safety culture is assessed on a five-point scale. This means effective use and steady development of safety management systems.
Security activities are one of the important factors in the assessment of employees’ performance. Employees of the Group companies assess the work environment in terms of occupational health and safety by anonymously participating in the Employee Opinion Survey and the Occupational Health and Safety Culture Survey.
These tools enable the collection of information on occupational health and safety aspects in the Group’s companies, e.g. the priority given to safety issues or the involvement of the direct superior in preventing occupational health and safety risks. The findings serve to improve the work environment of employees, plan strategic actions regarding work safety, and identify key areas of safety culture that require special allocation of resources.
The Group companies have a system of management field visits is designed to identify and eliminate inappropriate conditions or actions which might give rise to serious incidents. The effects of those visits (both positive and negative ones) are recorded in an IT system. By systematic observations, health and safety risks are monitored and preventive measures are adapted.
In order to increase awareness in the area of health and safety, the Group has a 0 Accidents Training Centre. It was established as part of the Partnership for Safety campaign and has been operating for 7 years at the Group’s company locations (Wrocław, Zielona Góra). The Centre is a place for conducting theoretical and practical training for employees of subcontracting companies and newly recruited employees for whom occupational health and safety training is mandatory before entering the plant premises. The Centre has fully equipped thematic rooms for practical training, e.g. a place for providing first aid with a manikin for practice.
The Group operates the programme of staff development in the area of occupational health & safety: Use Your Head at Work (“Pracuj z głową”), as well as competitions of knowledge about safety at work.
In 2024, 11 employees from subcontracting companies were recognised in the Use Your Head at Work competition. All Group employees completed initial occupational health and safety training and periodic training to update this knowledge. Refreshment training takes place every 5 years.
The health and safety area in the companies of KOGENERACJA Group is covered by the Integrated Management System, which includes, among others: Health and Safety Management System compliant with the PN-EN 45001:2018 standard. The adoption of the above management system at KOGENERACJA S.A. and EC Zielona Góra S.A. allows the Management Board and managers at companies to more effectively meet the requirements of laws, plan, implement and improve processes and work in the organisations.
The above systems are subject to annual audits carried out by independent certification bodies.
Work-life balance
[S1-15] Work-life balance is the ability to combine professional responsibilities with private life. One aspect of work-life balance is the ability to take family-related leave in a gender equitable manner.
| KOGENERACJA GROUP | ||
For the year ended 31 December 2024 | For the year ended 31 December 2024 | |
|---|---|---|
Women | Men | |
| the percentage of employees entitled to take family-related leaves (%) | 100 | 100 |
| the percentage of entitled employees that took family-related leaves (%) | 3 | 5 |
Pursuant to the Social Policy and the provisions of the Collective Labour Agreements for Employees of KOGENERACJA S.A. and EC Zielona Góra S.A., all employees of the Group are entitled to a family-related leave.
Pay gap and total remuneration
[S1-16] The diversity policy defines the methods of monitoring actions taken to implement it. One indicator is the ratio of men's to women's compensation by position. Identifying pay gaps allows initiatives to be taken to minimise them.
| KOGENERACJA GROUP | |
For the year ended 31 December 2024 | |
|---|---|
| Directors | - |
| Managers | 6.3 |
| Other employees | 17.0 |
| Total | 11.2 |
In KOGENERACJA Group, 82% of employees are men. The pay gap in total compensation is related to the specific positions in which employees are employed. Women primarily occupy positions in administrative and office areas, business support, sales, and laboratory. Production positions are mainly occupied by men: maintenance workers, equipment operators, technicians and engineers: mechanics, electricians and automation engineers.
Due to the need to maintain continuity of production, employees performing work in continuous operation receive allowances intended to compensate for the difficulties associated with working in shift mode and in specific conditions. These allowances contribute to the increase in total compensation. As a result, despite the comparability of basic salaries, the average total remuneration of men is higher.
Complaints and severe human rights impacts
[S1-17] In 2024, there were no serious human rights incidents reported that would violate the principles set out in the UN Guiding Principles on Business and Human Rights, the International Labour Organization Declaration on Fundamental Principles and Rights at Work or the OECD Guidelines for Multinational Enterprises.
Due to current regulations and internal policies, the Group has not classified the risk of forced labour, child labour or human rights violations as highly probable. The Compliance Department continuously monitors all issues related to potential negative impacts (including respect for human rights). Every employee has the opportunity to anonymously report their concerns and complaints directly to their supervisor or the Compliance Department. The mechanism for reporting and handling complaints is described above. Incidents that are not confirmed during the initial investigation are not subjected to further analysis and division into incident type.
In 2024, the Group did not record any penalty, fine or compensation in the social area and no case of discrimination, including harassment, was confirmed.
Workers in the value chain
Policies related to value chain workers
[S2-1]The most important document regulating cooperation with contractors is the Code of Conduct for Business Partners of PGE Group Companies. This document brings together requirements for suppliers, sets standards and helps select partners who share the Group’s values.
The Code covers issues related to human rights, labour rights, environmental matters and business integrity. The Code is available to all interested parties on the PGE Group website in the Compliance tab.
The Code applies to the entire PGE Group, including KOGENERACJA Group and addresses key issues such as:
Additionally, the Code regulates corporate ethics issues, including: counteracting corruption, personal data protection and information security. This Code is in keeping with the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises.
The Group’s impact on employees in the value chain and the responsibilities of their employers are also included in the PGE Group’s Human Rights Policy. Every person acting for and on behalf of the Group must be familiar with and comply with the principles contained in this document. In accordance with the provisions of the Policy, the Group only cooperates with Partners who adhere to the same values and principles, thus acting ethically and in accordance with the law. The Policy not only regulates how to report wrongdoing, but also categorically prohibits forced labour and human trafficking and does not recognise any form of modern slavery.
The key document ensuring high standards of occupational safety among people in the value chain is the Occupational Health and Safety Policy of PGE Group. The provisions contained therein cover contractors working on the Group's plant premises and oblige them to comply with legal provisions in the field of health and safety.
Processes for engaging with value chain workers about impacts
[S2-2] The Group focuses on partnership relations and satisfactory conditions of cooperation, which is why transparent rules are established. There is open communication based on mutual respect. In the case of external employees performing work on the premises of the Group's plants, appropriate agreements are signed with them. These documents define the occupational health and safety obligations of both the Group and the employees’ parent company.
Wrongdoing reporting channels
[S2-3] The reporting channels and corrective actions: Go to Own workforce.
Activities and goals
[S2-4] [S2-5] Activities and goals related to value chain workers: Go to Own workforce
Affected communities
Interests and views of stakeholders
[SBM-2] Opinions and reports from the local community influence decisions and actions taken by the Group companies.
Local communities have the opportunity to report through separate channels to Group companies:
All requests are considered individually and depending on the subject matter of the request, the following procedures will be followed:
Material impacts, risks and opportunities
[SBM-3] The Group has an impact on residents in the immediate vicinity of the areas where it conducts or plans to conduct business activities.
The impact on affected communities was assessed through surveys conducted in preparation for the double materiality analysis and by analysing the results of external inspections, internal audits, notification analysis and environmental documents applicable in Group companies.
The impact analysis showed that Group companies may have a positive and negative impact on the housing conditions and safety of local communities. The Group companies, by conducting emission activities, directly affect the air quality, but the desulphurisation and denitrification installations used reduce the level of air emissions. At the same time, the Group companies contribute to reducing emissions in the region by supplying heat produced in the combined heat and power system to the heating network.
The organisation's products (e.g. electricity and district heating) influence the comfort and quality of life of residents and this influence is positive.
The negative impact may be systemic or incidental and related to noise or a sense of safety due to, for example, increased traffic on roads due to:
Stakeholders also point to the risk of plant failures and the storage of flammable and explosive materials as having a negative impact on their sense of security. The negative impact is mainly related to individual incidents resulting from the Group companies’ own activities and occurs on a regional scale.
Policies related to affected communities
[S3-1] KOGENERACJA Group does not have a formal policy for managing relations with local communities. Despite the lack of management regulations, the Group takes actions to reduce the potential negative impact on local communities. Local communities are one of the key stakeholders, which is why the Group is open to dialogue and joint projects.
Processes for engaging with affected communities about impacts
[S3-2] The Group's cooperation with the local community takes place on many levels:
Directly
as part of everyday cooperation with clients and potential clients;
during meetings with heat consumers organised once a year;
enabling pupils and students to visit the plants
Through local authorities
- Marshal's Office of the Lower Silesian and Lubuskie Voivodeships;
- The City Hall of Wrocław, Zielona Góra and the Municipal Offices in Siechnice and Długołęka;
- National and Provincial Fund for Environmental Protection and Water Management;
- Municipal Headquarters of the State Fire Service;
- Provincial and Municipal Police Headquarters.
Through NGOs
- Nadodrze Housing District Counci;,
- Wrocław-based care centre – Wrocławskie Centrum Opieki i Wychowania;
- Horizon Foundation;
- PGE Jerzy Pupka Foundation for the Development of Science;
- Youth Sociotherapy Centre No. 2;
- Lubuskie Association for the Development of Energy.
Cyclical events aimed at customers and residents take place once or twice a year. Other contacts, e.g. with local governments, take place as part of ongoing cooperation.
The method for assessing the effectiveness of cooperation with affected communities, in addition to information meetings, analysis of customer opinions or communication with local authorities, is regular monitoring of information published in the media.
The Management Board of KOGENERACJA S.A. conducts an ongoing dialogue with local authorities in the context of searching for new solutions for the implementation of low- and zero-emission sources in Wrocław. At the request of KOGENERACJA S.A., in 2023 the Mayor of Wrocław appointed a team for the decarbonisation of the Wrocław heating system.
In 2024, EC Zielona Góra S.A. continued to promote district heating and, as part of ensuring access to heat and energy for those most in need, it made a donation to the Municipal Social Welfare Centre in Zielona Góra for the Social Assistance Programme for residents of Zielona Góra who are in a difficult financial situation. The aim of the programme is to provide assistance in paying for home heating and the use of hot water to families who qualify for social care in accordance with the criteria of the Social Assistance Act, provided that they use district heating transmitted via the municipal heating network.
Last year, KOGENERACJA S.A. again provided financial aid (paying heat bills) to socially sensitive consumers from the Wrocław and Siechnice municipalities under the PGE Energia Ciepła program called “Sharing Heat” (“Dzielimy się ciepłem”). The aid was addressed to the families identified by the Municipal Social Welfare Centre in Siechnice and to the charges of the Wrocław Care and Education Centre, a facility that looks after more than 200 children, including those from war-affected Ukraine.
Under the approved Donation Plans of the companies in 2024, the total amount allocated by the Group companies for aid activities amounted to PLN 645 thousand. For 19 years, KOGENERACJA S.A. has been one of the donors of the Józef Pupka PGE Foundation for the Development of Science, an institution set up to honor the late CEO of the Company. In accordance with the Foundation’s mission, this year support was provided to other, particularly talented students, who otherwise would not be able to develop their abilities due to their difficult financial situation. The funds obtained in this way may also be used for housing purposes.
The Company also got involved in helping in the area of healthcare. The financial resources were received by the Rescue and Firefighting Units in Wrocław and the Horizon Foundation, which deals with children requiring early development support therapy, which, in addition to financial support, also received the necessary premises and computer equipment for its operations.
Wrongdoing reporting channels
[S3-3] Due to the activities they conduct that affect the surrounding environment and local communities living there, the Group companies carry out activities aimed at limiting the impact on the environment, including:
Based on current instructions: Customer Communication and Customer Service Standards, Group companies take specific actions in the event of complaints and requests being submitted, minimising negative impacts and striving to avoid similar incidents in the future.
Group companies provide various communication channels:
Companies strive to implement corrective measures immediately in the event of confirmed irregularities. In order to obtain information on the quality of services and to implement corrective actions, a customer survey is conducted once a year.
In the opinion of the Group companies, local communities are aware of the possibilities and methods of reporting wrongdoin through available contact channels, but no systematic studies have been conducted to verify the level of satisfaction with the reporting channels or trust in them.
Actions
[S3-4] The Company actively responds to any negative impacts of its activities on the local community. An example is the implementation of a significant investment process in Siechnice. Together with the contractor and the investor, it was considered necessary to ensure that the start-up process and future operation of EC Czechnica 2 would fully comply with strict noise emission requirements. The Company has made every effort to limit any nuisance to residents related to the source of noise during the process of preparing the steam turbine for start-up. Among other things, acoustic barriers have been installed on the steam exhaust systems.
In 2024, the Group implemented many initiatives and investments to improve relations with local communities:
In 2025, further initiatives will be implemented:
The Group engages in social programmes that aim to support sustainable development and improve the quality of life of local communities. Since 2019, KOGENERACJA Group has been supporting PGE’s Career in Energy project. This is a project conducted in cooperation with technical secondary schools in the cities and regions where the company's assets are located. Students complete internships at the Group’s CHP plants and also have the opportunity to learn more about the industry. In turn, for the Group companies, it is an opportunity to recruit young staff.
Since 2024, the Group has been continuously promoting the information and educational campaign prepared by PGE entitled Save heat and take care of the environment. This is a collection of tips on how to save heat and electricity, as well as take care of the environment. The advice includes guidance on how to avoid air in your radiators, why it is worth turning down the heating by 1 degree when leaving the house, and how to increase heating efficiency by up to 20%. The campaign is aimed at both adults and the youngest audiences. Details are available on the website of EC Zielona Góra S.A.
Goals
[S3-5] In the area of Affected Communities, the following UN Goals arising from the Strategy were identified:
KOGENERACJA Group supports local communities through sustainable investments, education, and cross-sector cooperation.
Consumers and end-users
Interests and views of stakeholders
[SBM-2] Consumers and end users have the opportunity to submit complaints, claims, requests or place orders for services to Group companies. All reports are reviewed individually and follow-up actions are implemented promptly. Consumer opinions and reports influence the decisions and actions taken by Group companies.
Material impacts, risks and opportunities and their interaction with strategy and business model.
[SBM-3] District heating is a product that has a positive impact on numerous social aspects because:
The supply of heat is universal and common in nature, therefore Group companies do not profile information about consumers or end users due to their specific characteristics. The Group defines a consumer as an entity with which it has concluded a sales agreement and for whom it carries out the sale. End user is a recipient who ultimately uses the Group's products but is not its direct customer bound by a concluded contract, e.g. a resident of a cooperative or housing community.
Both consumers and end users are provided with the same product (district heating), which:
The activities of KOGENERACJA Group in the context of a positive and significant impact are concisely presented in the Business Strategy for 2022-2026. This document highlights the commitment of Group companies to sustainable development and social responsibility, in particular indicating the goals related to improving the impact on the environment and local communities.
The Group companies periodically conduct opinion surveys on the perception of district heating by end users (residents) in order to continuously improve the quality of supply and customer service. Based on the research results, improvement actions are defined and their implementation is monitored.
Policies related to consumers and end-users
[S4-1] The approach of KOGENERACJA Group is based on understanding and meeting the needs and expectations of customers. It is very important for the Group to build long-term, trust-based relationships, which is the foundation of the Group's companies' operations and an essential element of sustainable development.
The source of guidelines regulating the proper customer service process are:
These documents directly translate into significant impacts and risks that the Company sees in information security, quality of services and ethical conduct. This Code of Ethics is in keeping with the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises.
The Group companies have adopted internal regulations describing in detail the principles related to the processing of personal data, including end-user and consumer data:
Processes for engaging with consumers and end-users about impacts
[S4-2] The Group focuses on partnership relations and satisfactory conditions of cooperation, which is why transparent rules are established in the contract signing process. During the term of the contract, the Customer Advisor is appointed who:
There is open communication based on mutual respect. The Group companies maintain contact with customers through direct meetings and surveys.
Wrongdoing reporting channels
[S4-3] Ensuring effective customer service is regulated by: Instructions for dealing with district heating customers, connecting customers to the heating network and using heat sale agreement templates (KOGENERACJA S.A.) and Customer Service Instructions for Elektrociepłownia "Zielona Góra" S.A. Standardised contractual provisions regulate, among other things, the customer's right to submit complaints. Customers may send any information or comments regarding the performance of the contract to the contact addresses of the Customer Service Office indicated in the contract and made available on the corporate websites of each company.
Additionally, customers can report concerns, complaints and inquiries using the customer contact channels established for a given company and file a Whistleblower or non-compliance report using the reporting forms available on corporate websites. Customers’ reports, depending on their type (intervention, complaint, grievance), are processed within the deadlines and in the manner specified in the Instruction – Customer Service Standards.
Actions
[S4-4] KOGENERACJA Group takes actions aimed at minimising negative effects and maximising positive impact on consumers and end users. In the impact significance analysis process, access to high-quality information, personal security and access to products and services were considered the most important. Examples of activities are described in Table: [SBM-3] Materiality of impact from the perspective of the organisation and the value chain – social area: Go to Material impacts, risks and opportunities and their interaction with strategy and business model.
Group companies make every effort to meet the needs of consumers and end users by implementing the provisions of the regulations listed in [S4-1].
Cooperation with the customer is regulated in the Instructions for dealing with district heating customers, connecting customers to the heating network and using heat sale agreement templates, which ensures that an appropriate standard of service quality is maintained by informing the customer about the scope of services provided, the period of their implementation and the full price offer.
The first contact with a potential customer takes place through:
A potential customer receives information whether they are within the range of the heating network and whether the indicated property can be connected. If so, in the next step, they receive an offer containing the technical and economic parameters for connection to the network.
Customers have the opportunity to familiarise themselves with the current document templates and frequently asked questions regarding the connection process on the corporate websites of the Group companies.
The selection of communication and customer service tools depends on the customer’s preferences and the specific nature of the activities being carried out. The implementation of the comprehensive heat sales contract is carried out with the support of the Customer Advisor. During the invoicing process, the customer receives attachments with detailed billing information.
In order to obtain information on the quality of the services provided and to introduce corrective actions, once a year the Group conducts a survey of customers to whom it sells heat through its own network. The survey form is delivered to customers according to the form of communication chosen. If, while formulating findings from the survey, it becomes necessary to correct current activities in the companies, an application for the introduction of corrective actions is prepared.
The Group companies strictly comply with the provisions of the Information Security and Classification Procedure, which clearly defines the framework and directions of activities and basic requirements in this area. All new employees receive information security training as part of their induction training.
All employees of Group companies are obliged to comply with:
Goals
[S4-5] In the area of customers and end users, the UN Goal arising from the Group Strategy is:
Cooperation on ensuring energy security for residents by providing the municipality with heat at a price acceptable to consumers, as well as implementing joint projects contributing to the sustainable development of cities. As part of the “Sharing Heat” (“Dzielimy się ciepłem”) programme, the Group cooperates with local governments and local public benefit organisations. The aim of the programme is to support the most needy district heating consumers by subsidising their heating and domestic hot water bills.