Disclosure pursuant to Article 8 (6) to (7) of Commission Delegated Regulation (EU) 2021/2178 of July 6, 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by specifying the content and presentation of information to be disclosed by undertakings subject to Articles 19a or 29a of Directive 2013/34/EU concerning environmentally sustainable economic activities, and specifying the methodology to comply with that disclosure obligation:
Climate and environment
Mandatory disclosures under the Taxonomy Regulation
GRI[
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GRI[
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3-3
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Taxonomic indicators
Pursuant to Regulation (EU) No 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (Taxonomy Regulation, hereinafter referred to as “taxonomy” or “EU taxonomy”) and its implementing acts:
- Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by specifying the content and presentation of information to be disclosed by undertakings subject to Articles 19a or 29a of Directive 2013/34/EU concerning environmentally sustainable economic activities, and specifying the methodology to comply with that disclosure obligation (Delegated Regulation to Article 8 of the Taxonomy Regulation), and
- Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to climate change mitigation or climate change adaptation and for determining whether that economic activity causes no significant harm to any of the other environmental objectives,
during the transition period, the Bank is required to disclose the proportion of exposures to economic activities described according to technical eligibility criteria, i.e. Taxonomy-eligible economic activities in terms of two climate objectives – climate change adaptation or climate change mitigation.
For the purpose of determining the proportion of exposures to the activities described in the Taxonomy, the Bank and its subsidiaries analyzed their portfolios of exposures to non-financial undertakings and financial undertakings in order to identify entities subject to non-financial data publication requirements in accordance with the requirements of Directive 2014/95/EU of the European Parliament and of the Council (hereinafter: “NFRD”), and determined the gross carrying amount of the exposures separately for each of the identified entities as of 31.12.2022. Subsequently, based on the KPIs presented in the non-financial customers’ reports published in 2022 for the reporting period ended December 31, 2021, the Group determined the amounts of exposures to each entity by:
- part related to taxonomy eligible activities, according to the percentage of turnover from products or services related to taxonomy eligible activities (KPI Turnover)
- part related to taxonomy non-eligible activities, according to the percentage of turnover from products or services related to taxonomy eligible activities (KPI Turnover)
- part related to taxonomy eligible activities, according to the percentage of capital expenditures for products or services related to activities eligible for systematics (KPI Capex)
- part related to taxonomy non-eligible activities, according to the percentage of capital expenditures for products or services related to activities eligible for systematics (KPI Capex)
The following table presents information on the proportion of exposures to taxonomy-eligible and taxonomy non-eligible economic activities and other information that the Bank is required to disclose during the period from January 1, 2022 to December 31, 2023, as required by Article 10 par. 3 of the Delegated Regulation 2021/2178:
| TAXONOMIC DISCLOSURES as of 31.12.2022 | CONTEXTUAL INFORMATION | ||
|---|---|---|---|
| Art. 10. par. 3 item a) | Percentage of exposures to business activities qualifying for systematics in total assets according to KPI Turnover ratio | 0.34% | Business activities of financial and non-financial entities subject to Directive 2014/95/EU of the European Parliament and of the Council (NFRD) as described in the Delegated Regulation on establishing technical eligibility criteria for determining contributions to climate change mitigation or adaptation to climate change to prudentially consolidated total assets in accordance with Regulation (EU) No. 575/2013 of the European Parliament and of the Council (CRR). The exposures included loans, leases, factoring, corporate bonds and equity interests at gross carrying value |
| Percentage of exposures to business activities qualifying for systematics in total assets according to KPI Capex ratio | 0.64% | ||
| Art. 10. par. 3 item a) | Percentage of exposures to business activities not qualifying for systematics in total assets according to KPI Turnover ratio | 2.03% | Business activities of financial and non-financial entities subject to NFRD not described in the Delegated Regulation on establishing technical eligibility criteria for determining contributions to climate change mitigation or adaptation to climate change to prudentially consolidated total assets in accordance with CRR. The exposures included loans, leases, factoring, corporate bonds and equity interests at gross carrying value |
| Percentage of exposures to business activities not qualifying for systematics in total assets according to KPI Capex ratio | 1.72% | ||
| Art. 10. par. 3 item b) | Percentage of exposures to central governments, central banks and supranational issuers in total assets | 28.06% | Exposures in gross carrying value to central governments, central banks and supranational issuers to prudentially consolidated total assets in accordance with CRR. The exposures included credit receivables and bonds in the non-trading portfolio, including bonds issued by the Polish Development Fund and Bank Gospodarstwa Krajowego that have State Treasury guarantees. |
| Art. 10. par. 3 item b) | Percentage of derivatives in total assets | 5.46% | Gross carrying amount of derivatives to prudentially consolidated total assets in accordance with CRR |
| Art. 10. par. 3 item c) | Percentage of exposures to businesses not subject to non-financial reporting obligations in total assets | 30.62% | Business activities of financial and non-financial entities not subject to NFRD, i.e., micro-segment companies (including sole proprietorships), SMEs, corporations, public sector companies in gross balance sheet value to prudentially consolidated total assets in accordance with CRR |
| Art. 10. par. 3 | Percentage of trading portfolio in total assets | 5.70% | Gross carrying amount of trading book excluding derivatives, equity instruments and loans and advances at fair value through profit or loss to prudentially consolidated total assets in accordance with CRR |
| Art. 10. ust. 3 | Percentage of interbank demand loans in total assets | 0.20% | Gross carrying amount of interbank demand loans to prudentially consolidated total assets in accordance with CRR |
| Prudentially consolidated total assets (PLN million) | 281,207 | Value of prudentially consolidated assets in accordance with CRR | |
As at the present moment, Bank Pekao does not have targets related to ensuring the growth of the volume of exposures consistent with the taxonomy in its business strategy and does not take these targets into consideration in cooperation with customers and trading partners (disclosure based on Appendix XI of the Delegated Regulation to Article 8 of the Taxonomy Regulation). The ratios presented above differ from ratios reported in accordance with the ESG Strategy of the Bank due to the application of a different calculation methodology.
As non-financial undertakings have not yet disclosed information on nuclear and natural gas activities, the Bank, as of December 31, 2022, did not have complete information to the extent required to be disclosed in accordance with Forms 1, 4 and 5 of Annex XII to Commission Delegated Regulation (EU) 2021/2178 – disclosure on financing of nuclear and natural gas fossil fuel power generation activities.
The Bank will disclose information in this regard in the Statement on Non-Financial Data for 2023 based on the information disclosed in this regard by non-financial undertakings that are customers of the Bank.
Adjustment of the disclosure required by the Taxonomy Regulation presented in the Statement of non-financial information of Bank Pekao S.A. Group for 2021
In the Statement of non-financial information of Bank Pekao S.A. Group for 2021, as a result of an clerical error, an incorrect value of the ratio presenting the share of the trading portfolio in total assets was disclosed. The value presented in the disclosure amounted to 0.20%, while the actual value of the ratio at the end of 2021 amounted to 3.40%. The table below presents the correct values of all taxonomic ratios for 2021.
| TAXONOMIC DISCLOSURES as of 31.12.2021 | Ratios presented in the Statement of non-financial information of Bank Pekao S.A. Group for 2021 | Correct ratios | CONTEXT INFORMATION | |
|---|---|---|---|---|
| Art. 10.3 a) | The proportion in total assets of exposures to Taxonomy-eligible economic activities | 0.40% | 0.40% | Business activities of financial and non-financial entities subject to Directive 2014/95.EU of the European Parliament and of the Council (NFRD Directive) as described in the Delegated Regulation on the establishment of technical eligibility criteria for determining contributions to climate change mitigation or adaptation to climate change to prudentially consolidated total assets in accordance with Regulation (EU) No 575/2013 of the European Parliament and of the Council (CRR Regulation). The exposures included loans, leases, factoring, corporate bonds and equity interests at gross carrying value. |
| Art. 10.3 a) | The proportion in total assets of exposures to Taxonomy non-eligible economic activities | 2.20% | 2.20% | Business activities of financial and non-financial entities subject to the NFRD not described in the Delegated Regulation concerning the establishment of technical eligibility criteria for determining the contribution to climate change mitigation or adaptation to climate change to the total assets prudentially consolidated in accordance with the CRR Regulation. The exposures included loans, leases, factoring, corporate bonds and equity interests at gross carrying value. |
| Art. 10.3 b) | Percentage share in total assets of exposures to central governments, central banks and supranational issuers | 25.00% | 25.00% | Exposures in gross carrying amount to central governments, central banks and supranational issuers to total prudentially consolidated assets in accordance with the CRR Regulation. The exposure includes credit receivables and bonds in the non-commercial portfolio, including bonds issued by the Polish Development Fund and Bank Gospodarstwa Krajowego which are guaranteed by the State Treasury. |
| Art. 10.3 b) | Percentage of the total assets of derivatives | 3.20% | 3.20% | Gross carrying amount of derivatives to total assets prudentially consolidated in accordance with the CRR Regulation |
| Art. 10.3 c) | Percentage of total assets of exposures to business entities that are not subject to non-financial reporting | 34.60% | 34.60% | Business activities of financial and non-financial entities not subject to the NFRD Directive, i.e. companies in the micro segment (including sole proprietorships), SMEs, corporations, companies in the public sector in gross balance sheet value to total assets prudentially consolidated in accordance with the CRR Regulation |
| Art. 10.3 | Percentage share in total assets of the trading portfolio | 0.20% | 3.40% | Gross carrying amount of the trading portfolio excluding derivatives, equity instruments as well as loans and advances measured at fair value through profit or loss to total prudentially consolidated assets in accordance with the CRR Regulation |
| Art. 10.3 | Percentage of total assets of interbank loans on demand | 0.20% | 0.20% | Gross carrying amount of interbank loans on demand to total assets prudentially consolidated in accordance with the CRR Regulation |
| Total prudentially consolidated assets (PLN million) | 250,642 | 250,642 | The value of prudentially consolidated assets in accordance with the CRR Regulation | |