On June 25, 2021, the ESG Strategy “Responsible Bank supporting sustainable development” was announced, adopted by the Management Board and reviewed by the Supervisory Board of the Bank. The document is in line with Bank Pekao’s business strategy for 2021-2024 and is an extension of its fourth pillar: “Responsibility”. The ESG strategy is a comprehensive document governing the Bank’s approach to sustainability; in its three pillars – Environment, Engagement and Governance – it defines the issue of environmental responsibility, the social environment and policies within the organization. In each of these areas, the Bank has set specific goals, and identified initiatives that will support the strategy. The document was developed with the involvement of representatives of the Bank’s key ESG units, including the ESG Council.
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Appropriate assignment of responsibility in the organizational structure is crucial in the process of managing ESG topics. Coordination of issues related to ESG topics is within the competence of the ESG Council, an advisory body to the Management Board of the Bank, established by a Resolution of the Management Board of the Bank in 2020. The main task of the ESG Council is to support decision-making on ESG issues, strategic directions and the Bank’s involvement in social responsibility and sustainability projects. At the same time, the ESG Council serves to consult on the direction of development of sustainable banking products and services. The purpose of the ESG Council is to provide an opinion on the processes for the involvement of the Bank’s subsidiaries in ESG projects, taking into account the specific activities carried out by the bank’s subsidiaries and their autonomous nature. The Council is composed of members of the Management Board and representatives of the Bank’s key ESG units (both business and support). ESG Council meetings are held at least once a quarter.
In 2023, the Bank introduced a new organizational model for managing the ESG area, concentrating most of the ESG competencies in a dedicated unit in the Risk Management Division. In addition, the Group also has a Sustainable Financing Committee ensuring that funds from the proceeds of green Eurobonds issued under the medium-term Eurobond program (i.e. EMTN Program) are used in accordance with the eligibility criteria set forth in the Sustainable Finance Framework.
The Bank’s goal is to integrate ESG in all key areas of operation, so the ESG Strategy addresses issues such as increasing the Bank’s commitment to financing sustainable projects, supporting customers’ energy transition and low-carbon transition, its own climate neutrality, commitment to sustainable socioeconomic development, and attention to employee equality. The Bank incorporates ESG in its lending, investment and advisory process, purchasing, incentive system, and product offerings, among others. Transparency of ESG policies and non-financial reporting remains a priority, especially in the context of recent regulations.
The Bank is actively working to build an ESG ecosystem. Responsibility for objectives linked to the ESG Strategy has been articulated in an incentive system dedicated to the members of the Management Board of the Bank and all material risk takers1 In addition, 208 managers included in the MBO system had ESG issues addressed in individual quality objectives.
1 Material risk takers (MRT) – employees whose professional activities have a significant impact on the risk profile of investment institutions or the assets they manage.
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In numerous statements to the media, appearances in expert debates and content shared on social media profiles, as well as official speeches, Bank representatives stressed the importance of participating in the energy transition and financing green projects, expanding product offerings that take ESG factors, environmental education and responsibility to customers and counterparties into account. In 2023, representatives of the Management Board took part in important events thematically related to environmental, social and governance aspects. These included: World Economic Forum in Davos, European Economic Congress in Katowice, Economic Forum in Karpacz, Euro POWER & RES POWER; Krynica Forum, Impact’23, or Corporate and Investment Banking Congress.