ESG strategy

ESG targets comprise tasks connected with implementation of ESG strategy performance indicators; they relate to key projects and are directed to selected organizational units responsible for the implementation of strategic activities. By assigning ESG targets throughout the entire organization, also units which are not directly involved in strategic actions were included by PZU in the idea of sustainable development. The degree of attainment of these goals translates into the value of variable compensation to be received by the management staff. ESG targets were assigned to PZU Management Board members and also Management Boards of some of the subsidiaries.

In 2023, PZU and PZU Życie implemented 36 targets which take into account ESG factors. An expansion of the catalog of targets to include decarbonization activities is planned for 2024.

Any company wishing to cooperate with PZU shall familiarize itself with the Code of Conduct and Good ESG Practices of PZU Group Suppliers and accept its contents at the stage of submitting the Supplier Registration Form. The Code is a collection of principles for the PZU Group and all its suppliers. Conducting business in accordance with these principles and promoting its values constitute an important criterion for evaluating potential business partners. An indispensable element of the offers submitted by Suppliers are also signing the declaration on familiarization with the Code and acceptance of its clauses.

In 2023, the document was updated in response to new challenges in the ESG area. The modified content of the “Code Conduct and Good ESG Practices” was authorized by resolutions of the Management Boards of PZU and PZU Życie. In 2023, ESG requirements were included in 53% of key purchasing processes.

In 2023, PZU and TFI PZU monitored the market for financing supporting the climate-energy transition, with a view to possible involvement and participation in financing such investments. They also analyzed new financing structures and trends in the climate-energy transition financing market. In response to the growing popularity of ESG-linked corporate financing, PZU and TFI PZU have actively joined the trend, rewarding and stimulating financed entities to make their businesses more sustainable. At the end of 2023, the portfolio of investments supporting the climate-energy transition amounted to PLN 2,645 bn.

According to the internal definition, the assessment covers the largest corporate insurance clients that operate in sectors which are highly and moderately sensitive to ESG risks and have a significant impact on PZU revenues. Highly sensitive sectors include those industries that rely most heavily on non-renewable energy sources, are responsible for the greatest level of greenhouse gas emissions from direct and indirect emissions, and have the greatest impact on environmental degradation. The following industries are classified to this group: the fuel industry, the mining industry and the conventional power industry. Medium-sensitive industries include: chemicals, transport, automotive, construction and agriculture. The assessment of clients is carried out on the basis of two original methodologies for public and non-public entities, developed within the PZU Group under the supervision of PZU.

In 2023, the ESG assessment methodology for key corporate clients was updated. The main changes include modifying the strategy indicator to take into account updates to client databases, enabling ESG assessments based on clients’ non-financial reports, updating the assignment of sectors to high, medium and low ESG risk-sensitive categories based on the EU Taxonomy, among others. In addition, another group of customers has been evaluated in accordance with the strategy. In 2023, the implementation of the activities translated into the realization of the indicator “Assessment for ESG factors of the largest corporate insurance clients in ESG-sensitive sectors” at 40%.

The PZU Group has been measuring its direct and indirect emissions since 2018. Every year, the measurement process is improved and its scope extended. The emissions calculation is independently verified by a certified verifier.

PZU and PZU Życie continuously takes actions aimed at reducing scope 1 greenhouse gas emissions associated with combustion of fuels. Among other things, there were efforts to transition to a low-carbon vehicle fleet in 2023. As a result, the fleet was increased by 43 cars, i.e., 5 electric cars and 38 hybrid cars. Investment activities at PZU’s real property were also implemented, which translated into reductions in thermal energy, electricity and atmospheric emissions.

According to the commitment made in the ESG Strategy, PZU SA and PZU Życie SA carried out the offset of the CO2 emissions to which they contributed in 2022. These emissions were offset by purchasing certified offset credits, CERs, made available by the UN Carbon Offset Platform. As part of offsetting the environment for emissions generated in 2022, the funds were allocated to wind power development in India. The companies purchased offset units equivalent to emissions for PZU and PZU Życie of 17,425 Mg of CO2. PTE PZU (purchased units equivalent to 24 Mg of CO2) and TUW PZUW (92 Mg of CO2) also joined the effort. The funds from the CERs purchased by TUW PZUW have been earmarked for the development of a hydroelectric complex – hydroelectric plants on the Jordão River in Brazil. In addition to the CO2 offset made, TUW PZUW has purchased 1,040 CDUs (carbon dioxide units) from the State Forests. CDUs represent 1 ton of CO2 that will be accumulated in the forest stand and soil as a result of additional activities. The purchase of CDUs represents TUW PZUW’s contribution to mitigating the negative effects of climate change in Poland.

Going forward, by 2030, it is planned to reduce the carbon footprint of further companies in the PZU Group and to start reducing emissions across the entire chain of companies cooperating with the PZU Group. Between 2040 and 2050, the Group’s ambition is to achieve climate neutrality of suppliers and business partners, and ultimately also of insurance clients and investments.

In 2023, PZU continued its nationwide Dobra Drużyna prevention program, which aims – by popularizing and supporting physical activity for children and young people – to reduce the risk of disease and other insurance accidents. Thanks to the program, PZU influences the sports development of children and young people, expands the educational and sports offer and thus creates the right conditions for sports, especially in centers with limited access to financial resources. In 2023, 450 entities selected from more than 3,000 that applied during the ongoing call for proposals in March and April received funding amounting to PLN 5 million. Funds from the program could be used by beneficiaries to cover the costs of renting sports facilities, purchasing sports equipment, transportation to sports competitions, and entry fees for games and sports competitions. The funding covered nearly 100 sports. In total, Dobra Drużyna PZU prevention program, in the 2nd edition by the end of 2023, reached 51,000 children practicing 80 sports across the country, primarily in smaller towns.

For years, PZU has been conducting and supporting various health prevention campaigns as part of its preventive activities. In June 2022, under the honorary patronage of the Presidential Couple, in cooperation with the Ministry of Health, the National Health Fund, the Ministry of State Assets and the Ministry of Education and Science, PZU conducted the first edition of the nationwide health prevention campaign called Zdrowe Życie (Healthy Life). In 2023, the project continued, and its scale far surpassed the first edition. During the 6 months of the campaign, mobile health towns visited 25 locations (up from 12 locations in the previous edition). They traveled 17,130 km, devoting nearly 900 hours of attention to the health issues of Poles and performing 112,437 medical examinations and procedures in the process. 2,714 patients were referred for further diagnosis or treatment. The program was supported by an extensive communications campaign to build awareness of preventive health care and encourage the use of mobile health zones. The leading medium of the campaign was the Internet, which allowed for precise outreach to specific target groups and nationwide outreach efforts. High audience engagement was also ensured by social media. This was complemented by a campaign on local radio stations. Total campaign audience: 14.7 million.

Adopted in 2021, the well-being strategy promotes healthy lifestyles, optimal work styles, and inspires and encourages employees to implement habits that improve efficiency and quality of functioning on a daily basis. In addition, it suggests how to effectively combine professional and private roles – employee, parent, caregiver.

In 2023, existing activities were developed and new activities were created under the #DobryStan strategy. In June 2023, the first edition of the „Letnia Szkoła Dobrostanu” program was held, which was dedicated to introducing techniques and methods of emotion regulation, mental regeneration in daily life and task management. It was an open workshop for PZU employees who are interested in eveloping their knowledge and skills in the field of well-being. In October, during World Mental Health Day, all employees were invited to attend in three webinars and discussions on building mental resilience and developing skills to create work-life balance.

The culmination of educational and promotional activities in 2023 was a series of hybrid events in the regions organized under the slogan #JesieńPełnaDobrejEnergii, which responded to the needs of employees reported in the engagement survey. Employees from offices in Wrocław, Rzeszów and Opole, among others, were invited to participate in the events.

During the workshops, physiotherapists, nutritionists and psychologists advised on how to take care of oneself, what to do to give oneself energy, and to make healthy eating and physical activity a lifestyle. Since 2021, 55.70% of employees have participated in the activities of the well-being program.