Metrics and targets [E1-4]

The Strategy does not include specific short- and medium-term climate targets for the Pekao Group’s loan and investment portfolio or own operations. These targets are instead included in the Transition Plan, which provides the methodological and time framework for the decarbonisation process. The Plan, adopted by the Management Board on 9 December 2025 and introduces the relevant targets and associated metrics as described in section [E1-1].

For Strategy targets with quantitative thresholds, we assigned metrics to assess the degree of implementation of the actions undertaken (detailed description in the table below Summary of environmental targets in the Bank’s Strategy for 2025–2027 and the Pekao Group’s Transition Plan). The business targets indicated in the Strategy relate to financial amounts rather than carbon dioxide equivalents. This follows from the fact that they are not directly targeted at reducing financed emissions. The targets and metrics reported below were designed to transparently communicate our business objectives and were not adapted to the requirements of the European Sustainability Reporting Standards. Nevertheless, where this was possible, we made direct reference to the relevant ESRS E1-4 requirements in respect of reporting on the metrics of the actions undertaken by us.

The assumptions and methodology for the loan and investment portfolio target were developed based on a critical analysis of peer‑group actions. The outputs of this work were not assessed or validated by an external body. The definitions underlying the determination of the strategic target in relation to the loan and investment portfolio were developed on the basis of expert knowledge, best market practices and evidence-based substantive standards, and were collected in the above-mentioned Sustainable Finance Framework document, which takes into account, inter alia, the EU Taxonomy guidelines (activities with a positive impact on the environment and society), the International Capital Market Association (Green Bond Principles and Sustainability-Linked Bond Principles), the Loan Market Association (for green loans and Sustainability Linked-Loan Principles), the EU Green Bond Standard (EU GBS) under Regulation 2023/2631, and the Climate Bonds Initiative.

The quantitative target for financing the economy in the area of climate change mitigation and adaptation is also associated with a directional, qualitative business ambition introduced in the Strategy, consisting in developing products and models of cooperation with customers so as to support their sustainable business transformation.

The Strategy does not introduce interim targets or milestones, either in relation to the targets associated with reducing greenhouse gases from our own operations or for actions relating to the loan and investment portfolio. We have not changed the performance metric for the achievement of the business target since the announcement of the current Strategy.

The table below provides a concise summary of both the targets set out in the Strategy and the targets for the loan and investment portfolio and own operations set out under the Transition Plan and discussed in more detail in section [E1-1].

Summary of environmental targets in the Bank’s Strategy for 2025–2027 and the Pekao Group’s Transition Plan:

New financing classified as green for the purposes of achieving the Strategy target includes financing under new agreements labelled as green in accordance with the internal definition and disbursed from 2025 and increases in financing^[28] of existing agreements labelled as green.

[28] Increase understood as the difference between the current agreement amount and the previous one.