Reporting process

Management Board’s report on the activity of the PZU Group and PZU S.A. for 2023 is also an integrated report. The report presents the PZU Group’s activities by integrating financial and business results along with environmental, social, and corporate governance issues. The non-financial information presented in this report is to help readers understand better, improve the results in respect of ESG strategy execution and cultivate long-term relations with key stakeholders.

The PZU and the PZU Group’s Integrated Report contains data for the period from 1 January 2023 to 31 December 2023, unless otherwise specified in the document.

The report was prepared in accordance with the formal criteria set out in the Regulation of the Minister of Finance of 19 February 2009 on current and periodic information provided by securities issuers and on conditions under which information required by the legislation of a non-Member State may be recognized as equivalent.

Substantive hints on defining the scope and content of this report were also provided by international guidelines and standards, among others, the international reporting standard of the Global Reporting Initiative (GRI Standards) 2021 and GRI standards 2016 for specific topics, integrated reporting guidelines (International Integrated Reporting Council, IIRC), and guidelines of the European Commission on non-financial reporting with emphasis on reporting climate-related data and recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The report includes selected partial disclosures in line with the requirements of the European Sustainability Reporting Standards (ESRSs). Significant topics have been defined in accordance with IIRC and GRI 2021 guidelines. No double significance assessment was performed.

For the purpose of the non-financial information statement referred to in Article 49b of the Accounting Act, PZU separately prepared a statement on non-financial information of the PZU Group, including non-financial information in line with the requirements of the Act.

The calculations of the carbon footprint in the climate area were made in accordance with the international GHG Protocol Corporate Accounting and Reporting Standard. This report also contains information regarding taxonomic disclosures according to the Commission Delegated Regulation (EU) 2021/2139 supplementing Regulation 2020/852 of the European Parliament and of the Council (EU). The facts concerning the PZU Group’s carbon footprint in 2022 and 2023 have been checked by an independent external company doing business as Veritas Polska Sp. z o.o.

The report covers the consolidated non-financial data of the PZU Group and its parent company PZU, in accordance with the organization structure included in the Consolidated Financial Statements for the year ended 31 December 2023.

The data from PZU Życie, the Alior Bank Group, the Bank Pekao Group, LINK4, foreign entities (AAS Balta, AB Lietuvos Draudimas and PrJSC IC PZU Ukraine) and other consolidated companies in the Group are presented as information pertaining to the PZU Group. Moreover, Alior Bank and Bank Pekao have also published separate Group-level disclosures concerning their non-financial data.

In 2023, no significant changes occurred in PZU Group’s structure. Details in this regard are presented in Chapter PZU Group’s structure.

The data published in the report span the year subject to reporting and the comparative period, i.e. the preceding year. To present the carbon footprint in accordance with the international GHG Protocol Corporate Accounting and Reporting Standard, 2018 has been treated as the base year.

In 2023, no significant adjustments to the information were made.

In line with the approach stemming from the principle of significance, the various pieces of non-financial information have been presented to the extent necessary to evaluate the development, performance and standing of the PZU Group. Relatively less space has been devoted to smaller entities whose impact on the overall depiction of the PZU Group is minor or simply marginal. When defining the substantive part of the report, in accordance with the international guidelines (IIRC, GRI 2021), a process comprising the following stages has been followed:

1. Significant topics update – diverse sources of information were used to identify key areas of impact: internal PZU Group data, rating agency assessments, external information, including data from industry reports, trend reports, and changes resulting from implemented ESG regulations . The list of topics has been slightly changed as compared to the previous year;
2. Internal evaluation of significant topics – selected topics were evaluated in terms of parameters within the framework of impact relevance: the type and scale of impact and the likelihood of negative impact;
3. Stakeholder assessment of the significance of topics – a survey of external stakeholders, employees and management representatives was conducted to determine significance. In addition, in-depth individual interviews were conducted with independent experts and representatives of PZU’s partner organizations. In total, more than 100 stakeholders were involved in the process;
4. Significance matrix – the topics assessed by stakeholders were plotted on a significance matrix. The cut-off point was determined based on the average score for the issues;
5. Expert verification – the identified significant topics were checked against GRI indicators and reviewed by internal experts. After verification, 16 significant topics were identified.