ESG goals in the Strategy [SBM-1]

The Strategy is based on three pillars: WZROST (GROWTH), DOSTĘPNOŚĆ (ACCESSIBILITY) and SPRAWNOŚĆ (EFFICIENCY), within which we identify 9 strategic directions that we will follow in the coming years – within the Strategy’s time horizon. During this period, we plan to dynamically increase our presence in key market segments and pursue stable financial performance and growing market shares. We will also focus on expanding remote service channels and on even better adapting our offering to evolving client expectations. In addition, we intend to invest in technological development, which will support building a modern organisational culture. Under the Strategy, we have assumed i.a. investing in future competencies by establishing the AI Competence Centre to accelerate the implementation of new technologies across the organisation.

Within the Strategy’s time horizon, we plan to increase the customer base under the age of 26 to 1.4 million, which we intend to achieve by developing products for young clients and aligning the offering with their lifestyle, relationships and needs, as well as through marketing activities addressed to Young and their parents. At the same time, with existing clients in mind, we will work on actions intended to support the activity of Young and on preparing an offering that will enable them to manage their funds more efficiently in the context of saving for goals and will stimulate card transaction activity. In this way, we want to increase the base of active clients by 700 thousand within a three-year horizon.

At the same time, we focus on insurance products. By leveraging the partnership with the PZU Group, we aspire to achieve a leading position in the bancassurance market (insurance banking – i.e. offering bank insurance products (e.g. life, property, credit) directly in its outlets, often in connection with banking products). To this end, we will work on creating a strong line of standalone insurance, available outside banking products, and on implementing a system enabling fully remote purchase and management of insurance. Our objective also includes developing leasing and factoring. By drawing on the competencies of the entire Pekao Group, we plan to rank in the TOP3 in terms of providing these services. Through appropriate positioning, automation and streamlining of processes, we will be able to offer them to entrepreneurs even more effectively.

Moreover, within the GROWTH pillar, we assume achieving and maintaining the leading position in corporate banking and banking for the public sector. We plan to actively leverage the economic situation by increasing the number of financed large transformational projects. We will focus efforts on forecasting clients’ needs in priority sectors and modifying decision-making processes to ensure the most efficient financing of strategic clients.

We intend to expand the availability of our banking services by implementing an integrated service system across client contact channels. Our objective is to ensure ease and an individual approach, irrespective of the transaction execution method chosen by the client. Within the current strategic horizon, we also plan to develop interactive functions of the PeoPay application, the Pekao24 platform and the Contact Centre, introducing advanced conversational banking at the highest level. In line with the Strategy, we assume that by 2027 the number of mobile users will increase to 4.4 million and digital sales will account for 72% of total transactions. In addition, we will strive to increase engagement in educational activities and in advisory services delivered in branches, with particular emphasis on the needs of local communities.

Implementing the changes for clients assumed under the Strategy requires strong technological infrastructure. To this end, we will create an effective data ecosystem that will streamline business processes, enable the generation of additional synergies and become the foundation of a new model of information management based on data, the so-called Data Driven. Under the Strategy, we assume more than a threefold increase in the number of systems operating in the cloud.

We will also simplify our internal procedures and implement a comprehensive Operational Excellence Model in order to continuously monitor and optimise processes. Optimisation activities will focus mainly on the entrepreneur segment, where key processes for companies, including the credit process for micro-entrepreneurs, will be digitised and automated.

We defined a new Mission: Z Tobą przez całe życie (With You Throughout Life), which expresses our ambition to accompany clients at every stage – from opening their first account, through making key financial decisions, to the development of local enterprises and successes in international markets.

Our new Vision: Pierwszy wybór na dziś i jutro (The First Choice for Today and Tomorrow) underlines our aspiration to be a reference bank – a universal and trusted financial partner in Poland.

As the Pekao Group, we also strive to be a leader in modern financial technologies, which we will pursue by supporting clients at every stage of their lives and by creating a working environment where employee engagement and development translate into high quality of service and positive customer experience.

In the Strategy, we defined strategic objectives taking into account ESG aspects covering matters that we considered important as a result of the double materiality assessment updated for sustainability reporting purposes in 2025.

Individual sustainability commitments have been appropriately assigned to three groups of matters in the following areas:

In work on ESG objectives, we included our key stakeholders: employees, clients, business partners and shareholders – both at the objective-setting stage and in the very process of analysing their expectations and opinions. Strategic objectives – including those relating to actions taken towards clients – are defined as part of the strategic planning process. It is based on macroeconomic assumptions and forecasts for the development of the banking sector. On this basis, Strategic Directions of Development of the Bank and the Pekao Group are formulated and the Strategy is developed, reflecting the Bank’s long-term development ambitions, consistent with the risk profile determined by the Statutory Bodies. All key organisational units are involved in the process of preparing the Strategy. Incorporating ESG matters into the Strategy increases the credibility and competitiveness of our organisation and enables better risk management and responding to the expectations of investors, clients and regulators. Through the Strategy formulated in this way, we indicate that sustainability matters constitute an integral element of our business model, and even a priority in our approach to financing environmental initiatives and complying with social and corporate standards.

The achievement of our ESG objectives has a direct bearing on the Bank’s offering and the manner of client service. We incorporate sustainability criteria into product processes, credit policy and risk management, which affects the development of financing for green investments, the implementation of ESG risk assessment tools in client relationships and the creation of solutions supporting business transformation. In the area of relations with clients and local communities, we strengthen educational activities, and, as part of cooperation with suppliers, we promote ethical standards and responsible practices.

The level of implementation of the Strategy, including individual ESG objectives, is systematically monitored by the Strategy Department and reported to the Management Board. Monitoring of strategy implementation, including achieved levels of strategic indicators (KPI) of individual business areas and progress in implementing strategic initiatives, is carried out quarterly to the Management Board and annually to the Supervisory Board Risk Committee and to the Supervisory Board. The results are not validated by external entities other than the assurance provider. The setting of strategic objectives and their updates take place with due regard to stakeholder expectations, including those of regulators.

In pursuing sustainability, we focus on six UN sustainable development goals. These goals reflect our impact on key stakeholder groups and are consistent with the impacts, risks and opportunities identified in the double materiality assessment. At the same time, they remain fully aligned with the Bank’s strategy, supporting the achievement of its long-term business and social objectives.

UN GOAL	LINK TO THE STRATEGY AND IRO
Goal 4: Quality education	IRO: ESRS S1: Own workforce – Equal treatment – Training and skills development of employees Impact: positive, actual – ensuring adequate access to training and encouraging employees to expand competencies ESRS S4: Consumers and end-users – Impacts on consumers or end-users related to information – Privacy Impact: positive, actual – proactively ensuring an increase in clients’ awareness and knowledge in the area of cyber security Link to the Strategy: Strengthening engagement in educational actions for clients – we conduct educational activities addressed to all our clients in the cyber security area, including, inter alia, by organising workshops and publishing reports related to security and privacy in the online environment.
Goal 5: Gender equality	IRO: ESRS S1: Own workforce – Equal treatment – Gender equality and equal pay for work of equal value Impact: positive, actual – creating a friendly working environment and preventing discrimination Link to the Strategy: In comparable positions, remuneration difference in the Pekao Group < 5%. Increasing the share of women in the most senior management positions – our objective is for women to hold at least 33% of such positions.
Goal 8: Decent work and economic growth	IRO: ESRS S1: Own workforce – Working conditions – Adequate pay of employees Impact: positive, actual: competitive and fair remuneration principles ESRS S1: Own workforce – Working conditions – Social dialogue; Freedom of association, the existence of works councils and the rights of employees to information, consultation and participation; Collective bargaining, including the percentage of employees covered by collective agreements Impact: positive, actual: promoting internal communication and taking employee voice into account ESRS S1: Own workforce – Working conditions – Occupational health and safety (OHS) Impact: positive, actual: ensuring ergonomic workplaces and caring for employees’ mental health ESRS G1: Business conduct – Whistleblower protection Link to the Strategy: Maintaining a high level of employee engagement.
Goal 10: Reduced Inequalities	IRO: ESRS S4: Consumers and end-users – Social inclusion of consumers or end-users – Non-discrimination; Access to products Impact: positive, actual – ensuring the availability of financial services for clients from different social groups Opportunity: Actions to ensure service availability, such as developing digitalisation, simplifying access to banking or standardising telephone service, enable us to reach a wider group of clients. They facilitate contact with the Bank, increase customer satisfaction and support acquisition of new clients, which translates into revenue growth potential. Link to the Strategy: Maintaining a high level of employee engagement – we create a work environment friendly to persons from communities vulnerable to discrimination (e.g. due to age, gender, disability, sexual orientation, religion, political beliefs, etc.). Accessibility: The client and service quality at the centre of our attention, to make contact with the bank a friendly experience. The Bank systematically improves client service processes and the development of remote and mobile channels, with particular focus on their ergonomics and accessibility. “Accessibility”, as one of the three pillars of the Bank’s Strategy for 2025–2027. In comparable positions, remuneration difference in the Pekao Group < 5%. Increasing the share of women in the most senior management positions – our objective is for women to hold at least 33% of such positions. Maintaining the level of activity in the area of volunteering and the Bank’s presence among local communities.
Goal 13: Climate action	IRO: ESRS E1: Climate change – Climate change mitigation Impact: positive, actual – financing low-emission investments Opportunity: We see the opportunity to increase revenues related to offering financial products supporting the reduction of GHG emissions and accelerating the transition of the Bank’s clients to a low-carbon economy. We build client awareness of such products and a positive image of the Group as an organisation supporting low-emission solutions. Link to the Strategy: Achieving climate neutrality of the Pekao Group by 2050. Financing green projects in the amount of PLN 9 bn. Developing products and a model of cooperation with clients supporting the sustainable transformation of business operations.
Goal 16: Peace, justice and strong institutions	IRO: Impact: positive, actual – implementation of ethics / ESG principles for suppliers ESRS G1: Business conduct – Corruption and bribery Impact: positive, actual- proactive anti-corruption measures, educational activities