On the report
We are unceasingly improving the reporting process
We are proud to be able to present to you the second report on PSE’s impact on the Polish economy 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 fifth social report of our organisation, and the third report which is integrated and published in an interactive version.
The main objectives of the publication are: demonstration of the scale of PSE’s impact on the environment, meeting stakeholders’ expectations regarding the presentation of expected financial and non-financial issues, and strengthening the transparency of our company. Moreover, we considered it important to present an updated business strategy of Polskie Sieci Elektroenergetyczne, its flagship projects, and to show in a straightforward manner how our activities translate into the transmission tariff and electricity bills.
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With the aim to ensure the high reporting quality, in preparing this 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 Deloitte on the basis of the Wassily Leontief’s model, called also 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 2014. To demonstrate the extent of the impact exerted by our activities on the economy and society, we used three area of key significance to economic growth: added value, jobs and wages.
Impact of PSE on the Polish economy
4,36 mld zł
added value
2 320
workplaces
206,5 mln zł
salary value
1,86 mld zł
added value
9 652
workplaces
370 mln zł
salary value
512 mln zł
added value
5 536
workplaces
95 mln zł
salary value
Fig. 1. Inter-branch flow model visualisation. Source: Deloitte own study.
In the report, we present which are important for our environment. They include data for the period from 1 January 2018 to 31 December 2018 and selected information for 2019 showing the current picture of Polskie Sieci Elektroenergetyczne. As regards indicators, our report covers the 2017-2018 period, and even a three-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.
We committed ourselves to publish subsequent reports every year as integrated reports supplemented by impact indicators.
Fig. 2. PSE reporting process
Selection of issues for the report
In line with the international guidelines, the process of selecting issues proceeded in three stages:
1. Identification
The identification of topics 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, society and the environment,
- review of challenges for the power sector,
- analysis of foreign energy companies’ reporting trends,
- standards adopted by PSE for integrated reporting,
- analysis of key impact indicators and PSE’s own indicators,
- 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 PSE’s organisational units identified our stakeholder groups.
2. Prioritisation
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Preparation 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. It was the largest meeting of this type in the Polish energy sector, 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 that meeting, our partners had the opportunity to point out issues that should be presented in the next edition of the impact report, and assess the functioning of PSE and its impact on the environment.
Our stakeholders include primarily:
Fig. 3. PSE’s stakeholders
The session was divided into two parts. In the first one, the representatives of the company presented different areas of its activity and discussed the key challenges facing PSE and the whole Polish power system. in a subsequent part of the meeting, our stakeholders worked in four workshop groups and selected key issues for the report. The meeting was moderated by independent external consultants who then prepared a report on the meeting. The content of the report was consulted with the participants of the meeting.
In the report creation process, we also considered the stakeholders' opinion on PSE’s first impact report. Relevant information was provided mainly by the questionnaire survey and the stakeholders’ statements during the session.
Fig. 4. Approach to the report structure
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.
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.
Materiality Matrix
Based on the results of a dialogue session with stakeholders, in-house studies and quality analysis, 19 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
Ethics and transparency in relations with business partners (including tendering procedures)
05
05
Structure of the power system in Poland and the role of PSE
06
06
Strengthening innovation and implementing new technologies
07
07
Representing the interests of the national electricity market in the European electricity market
08
08
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)
09
09
Availability and transparency of company data material to business partners
10
10
Improving the new infrastructure investment implementation model
11
11
Upgrading the methods and tools supporting the zonal balancing market
12
12
Management of the regulatory risk arising from provisions of the Clean Energy for All Europeans package (substantive support to government administration)
13
13
Management of the risk of infrastructure unavailability, including critical infrastructure assets
14
14
PSE CG Cybersecurity Programme
15
15
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.
16
16
Winning social acceptance for line routes (including the acquisition of transmission easement) and social communication around investment projects
17
17
Minimising the negative social impact of projects being implemented (noise, interference with landscape)
18
18
Promoting energy security knowledge and implemented educational programmes
19
19
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
Ethics and transparency in relations with business partners (including tendering procedures)
05
Structure of the power system in Poland and the role of PSE
06
Strengthening innovation and implementing new technologies
07
Representing the interests of the national electricity market in the European electricity market
08
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)
09
Availability and transparency of company data material to business partners
10
Improving the new infrastructure investment implementation model
11
Upgrading the methods and tools supporting the zonal balancing market
12
Management of the regulatory risk arising from provisions of the Clean Energy for All Europeans package (substantive support to government administration)
13
Management of the risk of infrastructure unavailability, including critical infrastructure assets
14
PSE CG Cybersecurity Programme
15
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.
16
Winning social acceptance for line routes (including the acquisition of transmission easement) and social communication around investment projects
17
Minimising the negative social impact of projects being implemented (noise, interference with landscape)
18
Promoting energy security knowledge and implemented educational programmes
19
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).
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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 | Link Link Link Link Link |
| 2 | Transmission system development plan | Link Link |
| 3 | Requirements and standards of cooperation with contractors and subcontractors (new method of contracting – implementation of the Contractor Qualification System) | Link |
| 4 | Ethics and transparency in relations with business partners (including tendering procedures) | Link Link |
| 5 | Structure of the power system in Poland and the role of PSE | Link Link |
| 6 | Strengthening innovation and implementing new technologies | Link |
| 7 | Representing the interests of the national electricity market in the European electricity market | Link Link |
| 8 | 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) | Link Link |
| 9 | Availability and transparency of company data material to business partners | |
| 10 | Improving the new infrastructure investment implementation model | Link |
| 11 | Upgrading the methods and tools supporting the zonal balancing market | Link |
| 12 | Management of the regulatory risk arising from provisions of the Clean Energy for All Europeans package (substantive support to government administration) | Link |
| 13 | Management of the risk of infrastructure unavailability, including critical infrastructure assets | Link |
| 14 | PSE CG Cybersecurity Programme | Link |
| Responsibility at the workplace | ||
| 15 | 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. | Link Link Link Link |
| Responsibility to society | ||
| 16 | Winning social acceptance for line routes (including the acquisition of transmission easement) and social communication around investment projects | Link Link |
| 17 | Minimising the negative social impact of projects being implemented (noise, interference with landscape) | Link |
| 18 | Promoting energy security knowledge and implemented educational programmes | Link |
| Responsibility to the natural environment | ||
| 19 | 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. | Link Link Link |
Key topics for PSE and boundaries of their impact included in the report
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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 |
| Ethics and transparency in relations with business partners (including tendering procedures) | Ethics and integrity Procurement practices |
PSE S.A. | In particular material to contractors, subcontractors and suppliers |
| 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 the 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 |
| Availability and transparency of company data material to business partners | Indirect economic impact | PSE S.A. | In particular material to customers |
| Improving the new infrastructure investment implementation model* | Strategy | PSE S.A. | In particular material to contractors, subcontractors and suppliers |
| Upgrading the methods and tools supporting the zonal balancing market | - | PSE S.A. | In particular material to electricity market participants |
| Management of the regulatory risk arising from provisions of the Clean Energy for All Europeans package (substantive support to government administration) | - | PSE S.A. | In particular material to the 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 the 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 employees and 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 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
Prudence principle
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Detailed issues presented in the report are based on the updated 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.
Contact
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Thank you for reading our report.
Should you wish to share your opinion with us on the report, please send your comments to:
Małgorzata Jachimowska-Noworyta
Sustainable Development Officer
at PSE CG
malgorzata.jachimowska-noworyta@pse.pl
Małgorzata Jachimowska-Noworyta
Sustainable Development Officer
at PSE CG
malgorzata.jachimowska-noworyta@pse.pl
For any questions relating to Polskie Sieci Elektroenergetyczne S.A., please refer to:
Ada Konczalska
Director, Communication Department
ada.konczalska@pse.pl
Ada Konczalska
Director, Communication Department
ada.konczalska@pse.pl
Parties involved in the report creation process
The multi-disciplinary team that participated in the PSE 2018 Impact Report development process.
| Marta Babicz Andrzej Bartosik Arkadiusz Basista Dariusz Blachliński Marta Borzyńska Dominik Borowiec Monika Charuba Edyta Czarnecka Katarzyna Fryga-Szewczenko Eliza Gawlicka Konrad Godzisz Marta Jachacy Karol Jakubowski Beata Jarosz-Dziekanowska Joanna Kijek-Baryś Jolanta Kmiecik |
Dariusz Kołakowski Magdalena Kozik Jakub Kudliński Jacek Kuchenbeker Magdalena Kwiatecka Małgorzata Łachniak Beata Łapczyńska Martyna Małyszko Mariusz Majewski Daniel Owczarek Maciej Wapiński Wioleta Wińkowska Tomasz Nowakowski Łukasz Pawlak Alicja Poznańska Hubert Redkowiak |
Magdalena Ryś-Przeszlakiewicz Paweł Sadowski Liliana Sidorczuk Katarzyna Skrzymowska Dagmara Sławińska – Nosek Witold Smolik Kamil Smolira Ewa Soroka Michał Stachyra Marcin Stokowski Elżbieta Szymańska Katarzyna Turek Sylwia Włodarczyk Paweł Wójcik Anna Wronka |