About this report

The PZU Group integrated report comprises data for the period from 1 January to 31 December 2019 and is the third repot of this type prepared by the Group. This is part of the overall strategy aiming to understand and improve CSR results and cultivate relations with key stakeholders.

"Our ambition is to constantly improve in the area of corporate social responsibility, including increasing transparency. The report has been prepared in accordance with the prevailing non-financial reporting requirements laid down in the amended Accounting Act of 29 September 1994.

In addition, preparing this report we followed the guidance of voluntary, best global guidelines and standards – international reporting standard – Global Reporting Initiative (GRI Standards), international integrated reporting guidelines (International Integrated Reporting Council, IIRC), and guidelines of the European Commission itemizing climate-related data and recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)."

Magdalena Komaracka, PZU Investor Relations Director

In accordance with the requirements of the Accounting Act, the report on the PZU Group’s non-financial information in 2019 encompasses non-financial information and consolidated data pertaining to the PZU Group and PZU, its parent company in line with the structure of the organization included in the Consolidated Financial Statements for the year ended 31 December 2019. The data from PZU Życie, Alior Bank Group, Pekao Group, LINK4, AAS Balta, AB Lietuvos Draudimas and PrJSC IC PZU Ukraine are consolidated and presented in the information pertaining to the PZU Group. Alior Bank and Bank Pekao, in turn, have decided to present separately, as part of their Management Board activity reports, separate disclosures on non-financial data, as public interest entities. Alior Bank presented them also in the consolidated form. The PZU Zdrowie Group (PZU Zdrowie as the parent company), Armatura Kraków and PZU CO (CIG) are not public interest entities hence they are not subject to separate regulatory obligations regarding disclosure of non-financial data. Information regarding these companies and the other PZU Group companies has been presented in the consolidated data showcased in the report. Additionally, updated consolidated non-financial data for 2018 for the aforementioned entities were presented.

In line with the approach stemming from the principle of materiality, 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.

During defining the substantive part of the report, in accordance with the international guidelines, we have carried out a process comprising the following stages:

• Identification – selection of the key issues regarding corporate social responsibility and conducted activity based on an analysis of internal documents and of external publications and press information on the Group, and review of industry reports;
• Prioritization – to identify the key issues, in December 2018 a dialogue session was held with PZU Group’s key stakeholders. The session was attended by the Group’s external stakeholders, among others representatives of national administration, non-governmental organizations, European institutions, investment associations and business partners. The Group’s key achievements as regards responsible business and sustainable development were summed up and the stakeholders’ expectations as regards corporate social responsibility activities undertaken by the PZU Group were defined. Additionally, in January 2019, a questionnaire among external stakeholders will be carried out to identify additional key topics;
• Validation – PZU Group representatives confirmed the final list of priority issues taken into account in the 2019 report.

Based on the results of the analysis carried out during at the stage of identification of key issues during the dialogue session and internal workshops, 14 important topics from 6 areas of responsibility were defined.

Topics identified as being material

Priority 1 – Key topics in the context of PZU Group reporting for 2019.

• method of management of individual risk groups, including ESG (Environmental, Social, Governance);
• business challenges related to digitization;
• research and development activity, development of technological innovations, development of innovative products;
• management of environmental issues in the context of offered products, assets and investments (indirect impact).

Priority 2 – Very important topics in the context of PZU Group reporting for 2019.

• plans and development strategy for the future;
• size of the climate footprint and ways of neutralizing it;
• mitigation of the negative impact of the organization on the environment (impact of infrastructure, consumption of utilities – paper, energy, employee transport etc.);
• impact of the company on the quality of life of Poles and the social environment;
• dialogue with the clients and results of satisfaction surveys;
• complaints management;
• methods of developing good work conditions and care for employee development.

Priority 3 – Additional topics in the context of PZU Group reporting for 2019.

• business performance and market position of the PZU Group;
• development of an ethical culture, corporate governance and prevention of breaches (corruption, bribery, discrimination);
• ensuring equal opportunities and diversity of employees.