About The Report
PSE sets reporting standards for its own impact on the environment in the domestic market and in the industry.

The 2019 Report presents in an integrated manner the impact of PSE on the economy and the market, the natural environment, as well as society and employees.

The report was prepared in compliance with the IIRC Guidelines and GRI Standards.

About the reporting process

We are unceasingly improving the reporting process
We are proud to be able to again present to you our report on PSE’s impact on the development of the national economy and society. The publication presents in an integrated manner the financial and non-financial data enhanced with calculations of the company’s impact on the economy and public finances, society and natural environment. This is already the sixth social report of our organisation, and the fourth report which is integrated and published in an interactive version.
The main objectives of the publication are to demonstration the challenges facing PSE and the entire power sector and the measures taken by the company in response to these challenges, in particular regarding the implementation of new and continuation of existing strategic initiatives. We also wanted to show the scale of PSE’s impact on the social and economic environment, meeting stakeholders’ expectations regarding the presentation of expected financial and non-financial issues, and strengthening the transparency of our company.

GRI 102-54
With the aim to ensure the high reporting quality, in preparing our report we followed the guidelines of the International Integrated Reporting Council and the Global Reporting Initiative Standards (GRI Standards), Core compliance option. In financial reporting we followed the requirements of the Accounting Act of 29 September 1994. (Journal of Laws of 2016, item 1047, as amended).
We prepared the chapter on PSE’s impact on the market and the economy in accordance with the methodology developed by a third-party expert on the basis of the Wassily Leontief’s model, also called the inter-branch flow model or Input-Output model. The method focuses on studying the interdependencies between branches of the economy and enterprises. The model was based on the most recent inter-branch flow tables in current basic prices for domestic production in 2010, published by the Central Statistical Office in 2018. To demonstrate how strongly our activity affect the economy and society, we used three areas of key importance for its growth: added value, jobs and wages.
 

PSE’s impact on the Polish economy in 2019

PLN 2.75 bn
value added

2,436
jobs

more than
PLN 203 m
wages

more than
PLN 2 bn
value added

7 807
jobs

more than
PLN 346 m
wages

PLN 619 m
value added

3,184
jobs

more than
PLN 117 m
wages

Fig. 1. Inter-branch flow model visualisation
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In the report, we present issues which are important for our environment. They include data from 1 January 2019 to 31 December 2019 and selected 2020 data showing an up-to-date and complete picture of Polskie Sieci Elektroenergetyczne. No significant changes occurred in the reported period in the company’s size, structure or form of ownership. The Report does not include any adjustments to information from the previous report.
As regards indicators, our report covers the 2017-2019 period, and even a four-year perspective, in order to depict the trends that have taken place as a result of a number of changes that have taken place within the organisation, processes implemented and standards improved each year.
We committed ourselves to publish successive reports every year as integrated reports enhanced with impact indicators.
Fig. 2. PSE reporting process

Selection of issues for the report

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In line with the international guidelines, the process of selecting issues proceeded in three stages:

1. Identification
The identification of issues relevant for sustainable development as well as areas of the company’s impact on the environment was based on:
  • an analysis of our company’s responsibility to the economy and the market, society and the natural environment,
  • a review of challenges for the power sector,
  • an analysis of foreign and domestic energy companies’ reporting trends,
  • the standards adopted by PSE for integrated reporting,
  • a review of the issues reported so far,
  • an analysis of key impact indicators, GRIs, and PSE’s own indicators,
  • a review of documents defining business challenges in the context of sustainable development – Sustainable Development Goals,
  • analysis of internal documents.

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The analysis of internal strategic documents and internal consultations with representatives of PSE’s organisational units enabled us to identify our stakeholder groups.
2. Prioritisation

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The development of the report is one of the elements of the social dialogue that PSE periodically conducts with its stakeholders based on the AA 10000 SES standard. The fourth dialogue session was held on 22 May 2019 at the company's headquarters in Konstancin-Jeziorna. The event was attended by more than 100 participants, of whom 75 percent of the stakeholders had already previously participated in our sessions two or three times. During the meeting, our partners assessed the way PSE operates and its impact on the environment, and identified key issues which influenced the structure of this edition of the Impact Report. In creating the Report, we also took into account the results of the web-based questionnaire survey conducted in the latter part of 2019.
Our stakeholders include primarily:
Fig. 3. PSE’s stakeholders

3. Validation
We also performed a questionnaire survey among PSE’s management staff in order to identify what they consider key issues to be discussed in our company’s next impact report.
In the course of internal meetings and consultations with PSE’s organisational units, we confirmed the materiality matrix including the key topics to be reported and the report content structure.
Fig. 4. Approach to the report structure

Materiality Matrix

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Based on the results of a dialogue session with stakeholders and web-based questionnaire surveys, as well as in-house studies and a quality analysis, 16 key issues were identified in 4 areas of responsibility:
  • to the market,
  • at the workplace,
  • to society,
  • to the natural environment.
Material issues which should be included in the report, in the opinion of our company and its stakeholders, are presented in the matrix.

5

4

MATERIALITY FOR THE ORGANISATION

3

Issues material for the organisation
Issues materials for the organisation and its environment
Issues material for the environment
01
01

Long-term security of electricity supply (preventing the blackout risk) – implementing the capacity market and supporting tools

02
02

Transmission system development plan

03
03

Requirements and standards of cooperation with contractors and subcontractors (new method of contracting – implementation of the Contractor Qualification System)

04
04

Structure of the power system in Poland and the role of PSE

05
05

Strengthening innovation and implementing new technologies

06
06

Representing the interests of the national electricity market in the European electricity market

07
07

Focus on solutions aimed at adjusting the Polish Power System to the new design of the markets and new technologies (including the energy storage methods, e-mobility, distributed generation – energy from RES)

08
08

Improvement of the new model of infrastructure project implementation

09
09

Management of the regulatory risk arising from provisions of the Clean Energy Package for All Europeans (substantive support to government administration)

10
10

Management of the risk of infrastructure unavailability, including critical infrastructure assets

11
11

PSE CG Cybersecurity Programme

12
12

Adaptive capacity of the Company: know-how, structures and internal procedures prepared for quick legislative changes taking place in the energy market, and the technical and organisational requirements of new solutions

13
13

Winning social acceptance for line routes (including the acquisition of transmission easement) and social communication around investment projects

14
14

Minimising the negative social impact of projects being implemented (noise, interference with the landscape)

15
15

Promoting energy security knowledge and implemented educational programmes

16
16

Responsibility to the natural environment in project implementation, minimising impact on the natural environment in PSE's operations, including preservation of biodiversity in investment project implementation areas.

2

MATERIALITY FOR THE ENVIRONMENT

3,5

5

01

Long-term security of electricity supply (preventing the blackout risk) – implementing the capacity market and supporting tools

02

Transmission system development plan

03

Requirements and standards of cooperation with contractors and subcontractors (new method of contracting – implementation of the Contractor Qualification System)

04

Structure of the power system in Poland and the role of PSE

05

Strengthening innovation and implementing new technologies

06

Representing the interests of the national electricity market in the European electricity market

07

Focus on solutions aimed at adjusting the Polish Power System to the new design of the markets and new technologies (including the energy storage methods, e-mobility, distributed generation – energy from RES)

08

Improvement of the new model of infrastructure project implementation

09

Management of the regulatory risk arising from provisions of the Clean Energy Package for All Europeans (substantive support to government administration)

10

Management of the risk of infrastructure unavailability, including critical infrastructure assets

11

PSE CG Cybersecurity Programme

12

Adaptive capacity of the Company: know-how, structures and internal procedures prepared for quick legislative changes taking place in the energy market, and the technical and organisational requirements of new solutions

13

Winning social acceptance for line routes (including the acquisition of transmission easement) and social communication around investment projects

14

Minimising the negative social impact of projects being implemented (noise, interference with the landscape)

15

Promoting energy security knowledge and implemented educational programmes

16

Responsibility to the natural environment in project implementation, minimising impact on the natural environment in PSE's operations, including preservation of biodiversity in investment project implementation areas.

The colors reflect the areas:

Market

Workplace

Society

Natural environmental

Fig. 5. Materiality Matrix
Environment assessment – external stakeholders (results of dialogue session and questionnaire survey),
Organisation interior assessment (questionnaire survey results and internal consultations).
Tab. 1. Topics material to PSE and the environment
Responsibility to the market
1 Long-term security of electricity supply (preventing the blackout risk) – implementing the capacity market and supporting tools
2 Transmission system development plan
3 Requirements and standards of cooperation with contractors and subcontractors (new method of contracting – implementation of the Contractor Qualification System)
4 Structure of the power system in Poland and the role of PSE
5 Strengthening innovation and implementing new technologies
6 Representing the interests of the national electricity market in the European electricity market
7 Focus on solutions aimed at adjusting the Polish Power System to the new design of the markets and new technologies (including the energy storage methods, e-mobility, distributed generation – energy from RES)
8 Improvement of the new model of infrastructure project implementation
9 Management of the regulatory risk arising from provisions of the Clean Energy Package for All Europeans (substantive support to government administration)
10 Management of the risk of infrastructure unavailability, including critical infrastructure assets
11 PSE CG Cybersecurity Programme
Responsibility at the workplace
12 Adaptive capacity of the Company: know-how, structures and internal procedures prepared for quick legislative changes taking place in the energy market, and the technical and organisational requirements of new solutions
Responsibility to society
13 Winning social acceptance for line routes (including the acquisition of transmission easement) and social communication around investment projects
14 Minimising the negative social impact of projects being implemented (noise, interference with the landscape)
15 Promoting energy security knowledge and implemented educational programmes
Responsibility to the natural environment
16 Responsibility to the natural environment in project implementation, minimising impact on the natural environment in PSE's operations, including preservation of biodiversity in investment project implementation areas.
Tab. 2. Topics material to PSE and boundaries of their impact included in the report
Topics defined as material Topics covered by GRI standards Impact of topic within the organisation Impact of topic outside the organisation
Responsibility to the market
Long-term security of electricity supply (preventing the blackout risk) – implementing the capacity market and supporting tools* Indirect economic impact PSE S.A. In particular material to customers
Transmission system development plan Strategy PSE S.A. In particular material to suppliers, customers, contractors and subcontractors
Requirements and standards of relationship with contractors and subcontractors (new method of contracting – implementation of the Contractor Qualification System) Procurement practices PSE S.A. In particular material to contractors and subcontractors
Structure of the power system in Poland and PSE's role* Organisation profile

Economic performance
PSE S.A. In particular material to customers
Strengthening innovation and implementing new technologies Strategy PSE S.A. In particular material to customers
Representing the interests of the national electricity market in the European electricity market - PSE S.A. In particular material to owner and participants of the electricity market
Focus on solutions aimed at adjusting the Polish Power System to the new design of the markets and new technologies (including the energy storage methods, e-mobility, distributed generation – energy from RES) Strategy PSE S.A. In particular material to the owner and participants of the electricity market as well as RES, environmental and social organisations
Improving the new infrastructure investment implementation model* Strategy PSE S.A. In particular material to contractors, subcontractors and suppliers
Management of the regulatory risk arising from provisions of the Clean Energy Package for All Europeans (substantive support to government administration) - PSE S.A. In particular material to owner and participants of the electricity market
Management of the risk of infrastructure unavailability, including critical infrastructure assets* - PSE S.A. In particular material to customers
PSE CG Cybersecurity Programme - PSE S.A. In particular material to owner and participants of the electricity market
Responsibility at the workplace
Adaptive capacity of the Company: know-how, structures and internal procedures prepared for quick legislative changes taking place in the energy market, and the technical and organisational requirements of new solutions. Employment

Regulatory compliance
PSE S.A. In particular material to potential employeesand the regulator
Responsibility to society
Winning social acceptance for line routes (including the acquisition of transmission easement) and social communication around investment projects Local community PSE S.A. In particular material to local communities
Minimising the negative social impact of projects being implemented (noise, interference with the landscape Local community PSE S.A. In particular material to local communities
Promoting energy security knowledge and implemented educational programmes Indirect economic impact PSE S.A. In particular material to local communities
Responsibility to the natural environment
Responsibility to the natural environment in project implementation, minimising impact on the natural environment in PSE's operations, including preservation of biodiversity in investment project implementation areas. Compliance with environmental regulations

Environmental assessment of suppliers
PSE S.A. In particular material to local communities
* A broad-impact aspect
In the report, we have described in detail the key topics specified above, presenting both our approach to dealing with them and the corresponding indicators.
We have also decided to present other topics of significance to reporting so as to best reflect their nature and importance to our company. These include issues such as:
  • Climate challenges and measures taken by PSE in this area;
  • PSE’s activities during the COVID-19 pandemic;
  • The circular economy;
  • PSE’s approach to risk management.


Prudence principle

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Detailed issues presented in the report are based on the Strategy of Polskie Sieci Elektroenergetyczne, adopted by the Management Board, endorsed by the Supervisory Board and approved by the General Meeting of Shareholders. The management approach was presented in accordance with the procedures described in corporate governance regulations and standards in force at PSE. All published information presented in the report has been verified for compliance with internal documents of the company, and supervision of activities in the different areas is exercised by management staff. Strategic decisions are taken at the Management Board level.
Credibility of the report

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The report was subjected to the internal and external assurance process. Reliability of the report, its content and compliance with guidelines was examined by the PSE CG Sustainable Development Team. External assurance was carried out by an independent unit whose choice was approved by the Management Board.