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Annual report 2021

Governance

Diversity and equality

GRI[ ]

In line with the ESG Strategy , the Bank’s priority is to integrate ESG factors into the incentive system of the Bank’s key management personnel and to strengthen gender equality. The Bank intends to achieve this through the integration of ESG factors into the incentive system of the Bank’s Management Board and key management personnel, an annual performance appraisal based on the achievement of targets, an annual salary review, and a succession plan and development programs to support the professional development of women. The Bank declares the development of networking activities and mentoring programmes for women, while continuing to reduce the gender pay gap. Pekao’s priority will be to maintain a balanced number of women and men in managerial positions. Providing flexible work arrangements and supporting worklife balance will remain important.

Pekao Bank has a gender equality policy in place to help effectively manage careers, achieve success and evaluate work based on individual performance, regardless of gender. Guidelines of this policy are, for example, striving to ensure the representation of both genders in recruitment, eliminating discriminatory criteria in the preparation of job offers or including gender equality issues in training programmes.

Pekao has also had an anti-harassment policy in place for over ten years. Supporting the equality policy is the Charter of Principles, an internal set of corporate values that include: respect, trust equality, freedom (understood as freedom of action), reciprocity and transparency.

GRI[
  • 405-1
]
2021 PEKAO GROUP
Women Percentage Men Percentage Total Percentage
(a) i. Number of Supervisory Board Members (in persons) 22 39 61
% of Supervisory Board members 36% 64% 100%
(a) ii. Composition of the Supervisory Board – by age groups (FTEs)
<30 0 0% 0 0% 0 0%
30-50 11 82% 19 83% 30 83%
>50 2 18% 4 17% 6 17%
Total 14 100% 23 100% 37 100%
(b) i. Number of employees by employment structure (per person):
Board members 7 18% 33 83% 40 0%
Managers 933 56% 746 44% 1,679 11%
Others 9,392 71% 3,844 29% 13,236 89%
Total 10,332 69% 4,623 31% 14,955 100%
(b) ii. Total number of employees by age group (FTE) – Board members:
<30 0 0% 0 0% 0 0%
30-50 3 43% 24 83% 27 75%
>50 4 57% 5 17% 9 25%
Total 7 100% 29 100% 36 100%
(b) ii. Total number of employees by age group (in FTEs) – managers:
<30 6 1% 7 1% 13 1%
30-50 653 71% 561 79% 1,214 75%
>50 256 28% 139 20% 395 24%
Total 915 100% 707 100% 1,622 100%
(b) ii. Total number of employees by age group (FTE) – Others:
<30 658 7% 427 12% 1,085 9%
30-50 5,140 57% 2,183 63% 7,323 59%
>50 3,192 36% 868 25% 4,060 33%
Total 8,990 100% 3,478 100% 12,468 100%
Total number of all employees by age group (FTE, excluding management)
<30 664.5 7% 433.9 10% 1,098.4 8%
30-50 5,793.3 58% 2,743.9 66% 8,537.2 61%
>50 3,448.1 35% 1,007.0 24% 4,455.2 32%
Total 9,905.8 100% 4,184.9 100% 14,090.7 100%
2021 PEKAO BANK
Women Percentage Men Percentage Total Percentage
(a) i. Number of Supervisory Board Members (in persons) 5 4 9
% of Supervisory Board members 56% 44% 100%
(a) ii. Composition of the Supervisory Board – by age groups (FTEs)
<30 0 0% 0 0% 0 0%
30-50 1 60% 0 25% 1 44%
>50 0 40% 1 75% 1 56%
Total 1 100% 1 100% 2 100%
(b) i. Number of employees by employment structure (per person):
Board members 1 11% 8 89% 9 0%
Managers 815 57% 615 43% 1,430 11%
Others 8,170 72% 3,166 28% 11,336 89%
Total 8,986 70% 3,789 30% 12,775 100%
(b) ii. Total number of employees by age group (FTE) – Board members:
<30 0 0% 0 0% 0 0%
30-50 1 100% 7 88% 8 89%
>50 0 0% 1 13% 1 11%
Total 1 100% 8 100% 9 100%
(b) ii. Total number of employees by age group (in FTEs) – managers:
<30 4 0% 4 1% 8 1%
30-50 572 70% 486 79% 1,058 74%
>50 238 29% 125 20% 363 25%
Total 814 100% 614 100% 1,428 100%
(b) ii. Total number of employees by age group (FTE) – Others:
<30 380 5% 255 9% 634 6%
30-50 4,570 57% 1,884 64% 6,454 59%
>50 3,085 38% 811 27% 3,896 35%
Total 8,034.4 100% 2,949.5 100% 10,984 100%
Total number of all employees by age group (FTE, excluding management)
<30 383.7 4% 258.7 7% 642.4 5%
30-50 5,141.9 58% 2,369.5 66% 7,511.4 61%
>50 3,323.1 38% 935.4 26% 4,258.5 34%
Total 8,848.7 100% 3,563.6 100% 12,412.2 100%
(a) iii. Distribution of employees according to other diversity indicators
citizenship other than Polish 4 5 9
certified disability 183 44 227
Total 187 49 236

The Bank has a gender equality and diversity policy with regard to members of the Supervisory Board, members of the Management Board and persons holding Key Functions at Bank Polska Kasa Opieki Spółka Akcyjna (Gender equality and diversity policy), which defines the strategy for managing diversity of the Bank’s employees, including diversity with regard to the appointment of members of the Supervisory Board, members of the Management Board and persons performing Key Functions at the Bank. The Gender Equality and Diversity Policy defines guidelines to ensure that Bank employees are able to manage their careers, achieve success, and have their work evaluated based on individual performance, regardless of gender. The purpose of the Bank’s diversity strategy, as referred to in the Gender Equality and Diversity Policy, is to ensure high quality performance by the Bank’s employees, including the selection of competent persons to perform functions in the Supervisory Board, the Management Board and Key Functions in the Bank, using objective merit criteria in the first instance and taking into account the benefits of diversity.

Gender equality provides opportunities for Bank employees to manage their careers, achieve success, and have their work evaluated based on individual performance, regardless of gender. The Gender Equality Guidelines apply to all HR processes implemented by the Human Resources Division and specify:

  • striving to ensure the representation of both genders in external recruitment processes, by preparing lists of recommended candidates, which include at least one candidate of each gender,
  • striving to ensure the representation of both genders in internal recruitment processes, by preparing lists of recommended candidates for a given position, which contain at least one candidate of each gender,
  • eliminating discriminatory gender criteria in the preparation of job offers and job descriptions,
  • informing external partners operating in the areas of recruitment and training (temporary work agencies, recruitment agencies, employment agencies, public employment agencies/employment offices, head-hunting agencies) about the scope and content of the implemented Gender Equality and Diversity Policy and the Bank’s commitment to its objectives,
  • and other development activities during work) regardless of gender, taking into account job responsibilities, efficiency, professional potential in accordance with the organizational needs, standards and criteria of the Bank, defined by separate internal regulations,
  • ensuring equal treatment of Bank employees with respect to remuneration and additional benefits, irrespective of gender, in accordance with the Remuneration Policy of Bank Polska Kasa Opieki Spółka Akcyjna and generally applicable provisions of law in this respect,
  • promoting work-life balance for employees by taking advantage of opportunities provided by relevant regulations in this area and available facilities such as:
    • offering flexible work models (part-time employment, etc.) in a manner consistent with applicable laws, in particular labour and social security laws and internal regulations and taking into account business and organizational requirements and needs,
    • supporting employees during and after long-term absence (e.g. after parental leave, unpaid leave, sickness and any other long-term absence) by avoiding discrimination during and after long-term absence, enabling employees to stay in touch with the company during long-term absence and facilitating their return after long-term absence in accordance with applicable laws, in particular: labour and social security laws and the Bank’s internal regulations,
    • integrating gender issues into training programs, including, but not limited to, management, adaptation programs and other forms of training and communication.

The Gender Equality and Diversity Policy, in accordance with the legislative process applicable to the Bank, has been adopted by the Bank’s Management Board and approved by the Supervisory Board. Gender equality and diversity policies are also in place at 8 subsidiaries: Pekao Direct Sp. z o.o., Centrum Kart S.A., Pekao Bank Hipoteczny S.A., Pekao Financial Services Sp. z o.o., Pekao Investment Banking S.A., Pekao Leasing Sp. z o.o., Pekao TFI S.A. and Pekao Faktoring Sp. z o.o.

The Bank applies the Policy on Selection of Candidates for the Position of Member of the Board of Executives and Key Function and Assessment of Suitability of the Proposed and Appointed Members of the Board of Executives, Supervisory Board and Persons Performing Key Functions in Bank Polska Kasa Opieki Spółka Akcyjna (Selection and Suitability Assessment Policy) approved by the Bank’s Supervisory Board on December 30, 2020, which is aimed at ensuring an optimal and uniform selection process of candidates to the position of a member of the Board of Executives and the Key Functions at the Bank, so as to ensure that the tasks related to the implementation of the Bank’s business plans and strategy are performed by persons who have the required knowledge, experience and skills, as well as a good reputation.

The Selection and Suitability Assessment Policy also sets out the criteria for assessing the individual and collective suitability of candidates and members of the Board of Executives, Supervisory Board and persons performing Key Functions in the Bank at the appointment stage and in the course of their functions, as well as the events triggering the need for a suitability assessment, the course of the suitability assessment process, including roles and tasks in the process and the effects of the assessment, including corrective measures to be applied to ensure that suitability requirements are met.

Activities promoting diversity

The Pekao Group and the Bank implement many initiatives proposing to support diversity, addressed to all employees, including the submission of their initiatives and the active use of existing projects. The overarching goal of these activities is:

  • full use of the potential of all employees in the process of managing the intellectual capital of the company and building an organizational culture based on sharing knowledge and experience,
  • increased employee engagement and satisfaction across all age groups, including through development programmes, motivational goals, succession plans and compensation systems,
  • improving the strategy of managing people in the organization through the development of leadership,
  • developing an employee-friendly organization.

Bank employees may participate in the following initiatives to promote support for diversity:

promoting diversity of operation and communication styles among employees, which discuss personality types and the resulting differences in the communication process, relationship building and preferred methods of operation based on the Insight Discovery methodology,

for managers „Managing a team based on Insight Discovery”. Their aim is to provide managers with knowledge on diversity management, drawing attention to the diverse needs and ways to motivate employees depending on their age, experience, competencies and skills. The training discusses diversity management, the challenges faced by managers managing a diverse team, taking into account generational differences, the diverse experience of subordinates and their individual needs and motivators.

The Bank also has initiatives to strengthen diverse leadership and develop women in management positions. The intranet website has a separate section „Women Leaders for the Bank” devoted to this topic, presenting extraordinary stories of women managers who have successfully achieved their professional goals.

An important action taken by the Bank to promote open dialogue with women and discuss the needs of this group of employees (ladies account for over 70% of the Bank’s workforce), was the launch of the „Sugar Free” programme in 2020 under the patronage of Vice President Magdalena Zmitrowicz. The main activities undertaken in 2021 were focused on areas related to the development of women’s personal and professional competences. More than 50 hours were spent on various activities such as webinars, training and sessions of Action Learning. During 70 hours of online training, topics related to, among others, the development of personal skills, strengthening competences, overcoming own limitations, building an image and personal brand. The Sugar Free program was present at one of the most important market events of „Perspectives” Women in Tech Days aimed at women interested in modern technology: Pekao S.A. Bank and the „Sugar Free” programme were represented by 5 ladies from the IT and Risk divisions who were speakers, mentors and workshop leaders, sharing their knowledge and experience.

Diversity efforts support initiatives open to all employees regardless of gender, position or organizational assignment, such as „Take Health by the Horns,” the Stars of Collaboration competition and Talents Up.

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Integration of ESG factors across all key business areas

In the process of managing environmental, social and corporate governance topics, it is crucial to position ESG appropriately in the organizational structure. In order to coordinate issues related to this topic as efficiently as possible, in December 2020, Bank Pekao S.A. established the ESG Council, an advisory body to the Bank’s Management Board that meets at least quarterly. The main task of the Board is to recommend to the Bank’s Management the necessary actions in the ESG area. At the same time, the Council is intended to consult widely on strategic ESG topics, taking into account the commercial perspective. The Board was composed of Board members and representatives of the Bank’s key units (both business and support) for ESG topics. With their participation, and the full support of the Bank’s Management Board and Supervisory Board, the ESG Strategy 2021-2024 „Responsible Bank supporting sustainable development” was developed. When developing the assumptions of the Strategy, a top-down approach was adopted with the use of workshops and consultations with units involved in the process. The ESG Coordinators, appointed in different areas of the Bank’s operations, and the ESG Team combining competencies in environmental, social and corporate governance topics, are responsible for the ongoing monitoring of the strategy.

The Bank aims to integrate ESG into all key processes of Pekao’s operations, including lending, investment and advisory processes, procurement, and the incentive system. The Bank also recognizes the potential inherent in ESG product offerings and is taking steps to increase its „green” portfolio across all business segments. Transparency of ESG policies and nonfinancial reporting remains a priority, especially in the context of recent regulations that require banks to increase non-financial disclosures such as reporting of greenhouse gas emissions or labelling of industries and customer transactions in terms of sustainable investments consistent with the so-called taxonomy regulation42. The integration of ESG goals at the Bank is fostered by the regular participation of the Bank’s representatives in sustainable development initiatives, e.g. under the United Nations Global Compact Poland, in the work of committees and working groups of the Polish Bank Association and other industry organisations.

The Bank’s commitment to ESG is evaluated by the market in international rankings and indices. The Bank’s priority is to increase its position in environmental, social and corporate governance statements as a result of systematically undertaking and disclosing ESG activities.

RATING 2020 2021 CONTEXTUAL INFORMATION
MSCI ESG Ratings A A MSCI ESG measures the resilience of companies to long-term risks in the areas of: environmental protection, corporate social responsibility and corporate governance.
FTSE4Good Russell 3.1 3.1 FTSE Russell ESG evaluates the data of approximately 4100 companies in 47 developed and developing countries. The FTSE rating is designed to facilitate investment in companies that meet internationally recognized standards of corporate responsibility and is the basis for a company’s inclusion in the FTSE4Good index. Companies in the FTSE4Good index series have met rigorous environmental, social and corporate governance criteria and are well placed to harness the benefits of responsible business practices.
WIG-ESG Proportion of share in the index: 4.8% Proportion of share in the index: 5.6%* The WIG-ESG Index has been published since September 2019, based on the value of a portfolio of stocks of companies considered socially responsible. The base value of the index was established as at December 28, 2018 and amounted to 10,000.00 points. WIG-ESG is a total return index, which means that its calculation takes into account both the prices of transactions concluded in it and dividend income. The share of one company in the index is limited to 10%, while the total share of companies, each of which exceeds 5%, is limited to 40%.
Bloomberg
Gender Equality-Index
73/100 79/100 The Bloomberg Gender-Equality Index may include large listed companies actively striving for gender equality in the work environment. Globally, in 2022, the index included 418 companies from 45 countries and representing 11 sectors of the economy. Participants in the index were selected from publicly traded companies with capitalizations greater than $1 billion. To be included in the index, it was required to obtain a high enough result in a survey based on five areas: women’s leadership and talent development, equal pay and wage parity, inclusive work culture, sexual harassment policy, and the female brand. The Bloomberg GEI rating, issues of respect for diversity and gender equality are analysed in terms of, among others, conditions of employment, educational activities , employee benefits and perks, professional development opportunities, promotion path and compensation.
Sustainalitycs 26.9 medium risk 29.1 medium risk The ESG risk assessments issued by Sustainalytics focus on financially significant ESG risks and cover more than 20,000 companies from 172 countries. The agency’s methodology includes an analysis of companies’ exposure to significant ESG risks and an assessment of how companies manage these risks. Risk factors are determined on an industry basis and are determined by analysing 20 factors specific to each industry.
Vigeo Eiris 32/100 47/100 The Vigeo Eiris score presents the extent to which companies integrate environmental, social and governance factors into their strategies and operations. The index includes entities from 40 different industries from around the world. During the ESG assessment, 38 issues are reviewed.
Responsible Companies Ranking Item 9. (410/500 points) out of 74 companies in the general classification Item 11. (84/100 points)**, out of 70 companies in the general classification List of companies operating in Poland assessed in terms of the quality of their corporate social responsibility management system. The ranking enables companies to reliably assess their progress in meeting the challenges of sustainable development. The basis for the Responsible Companies Ranking is a questionnaire, which is completed by the companies in accordance with the principles of due diligence and professional ethics.
* WIG-ESG index portfolio (as revised on December 17, 2021, as of November 30, 2021).
** The ranking organizer has made changes to the scoring methodology

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