Risk management

The most rigorous risk management standards in place at PGE Group are applied in this area. Climate risk Issues are subject to rigorous requirements and guidelines resulting from the corporate risk management process. PGE Group assesses risk from both long-term and short-term perspective.

Map of long-term risks: Scenario where PGE Group’s coal portfolio is spun-off

Map of long-term risks: Scenario where the coal portfolio stays within PGE Group

PGE Group analyses climate-related risks in the context of the impact of climate change on its business activities and the impact of its business activities on climate change. The business activities conducted by PGE Group have a material impact on the environmental. The analysis of related risks, identification and continuous improvement of both pro-environmental solutions and monitoring measures allow the Company to effectively manage and minimise its environmental impact and simultaneously to safeguard PGE Group’s financial results. Solutions developed by PGE Group facilitate its development and sustainable transition in line with climate requirements and the interests of all stakeholders. In the context of climate risk, PGE analyses issues related to the legality of its operations. This relates primarily to issues related to the fulfilment of environmental requirements applicable to PGE Group companies’ operations and resulting from the necessity to obtain concessions. As part of the risk management process, a distinct group of risks related to compliance has been separated, which is subject to additional analytical and reporting requirements.

In 2020, risks arising from the possibility of failing to meet environmental requirements and risks associated with obtaining and maintaining mining concessions were assessed as the most significant to the Group and were referred for in-depth analysis. When analysing risks, PGE does not focus only on their negative aspects, but also treats them as challenges and takes advantage of opportunities which may arise from changes.

Such an approach allows PGE Group to respond actively to dynamically changing conditions in which it operates, as well as to build and strengthen its market position.