The Bank aims to integrate ESG into all key processes of Pekao’s operations, including lending, investment and advisory, purchasing, 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 non-financial reporting remains a priority, especially in the context of recent regulations that require banks to increase non-financial disclosures in terms of, among other things, reporting of greenhouse gas emissions or labeling of industries and customer transactions in terms of sustainable investments consistent with the so-called Taxonomy Regulation. The integration of ESG goals at the Bank is fostered by the regular participation of Bank representatives in sustainable development initiatives, including the United Nations Global Compact Poland, the work of committees and working groups of the Polish Bank Association and other industry organizations.
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The Bank defines the issue of responsibility for the environment, social environment and principles within the organization in the ESG Strategy “Responsible Bank supporting sustainable development”, which is an extension of the fourth pillar of the Bank’s Business Strategy called “Responsibility”. The ESG Strategy announced on June 25, 2021 was adopted by a resolution of the Management Board of the Bank and was presented to the Supervisory Board of the Bank for approval.
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In the process of managing the topics of environment, society and corporate governance, it is crucial that ESG is properly positioned 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 Management Board of the Bank that meets at least quarterly. The main task of the Council is to recommend to the Management Board of the Bank the necessary activities in the field of ESG. At the same time, the Council is to consult on a broad range of strategic topics relating to ESG, taking into account the commercial perspective. The Council included members of the Management Board and representatives of the Bank’s key units (both business and support) for ESG topics. With their input, and the full support of the Management Board of the Bank and the Supervisory Board of the Bank, the ESG Strategy 2021-2024 “Responsible Bank Supporting Sustainable Development” was developed. During the development of the Strategy’s assumptions, a top-down approach was adopted using workshops and consultations with the units involved in the process. The Bank’s ESG Team, which combines expertise in environmental, social and corporate governance topics, is responsible for ongoing monitoring of the strategy. The ESG Strategy monitoring process includes:
- periodic monitoring of the realization of the achieved levels of KPIs of individual business areas and the progress of the implementation of Initiatives, conducted on a semi-annual basis,
- ongoing monitoring in terms of regulatory developments, trends and market practices in the ESG area.
In 2022, the ESG Council consisted of four members of the Bank’s Management Board and 14 high-level directors representing key units of the Bank (with voting rights).
Objectives connected to the ESG Strategy have been included in the incentive systems of all members of the Management Board and all material risk takers*. Moreover, 163 managers covered by the MBO system had ESG issues addressed for qualitative purposes.
*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 its daily communication with employees, the Management Board of Bank Pekao emphasizes the role of ESG in building a sustainable organization by maintaining high standards of corporate governance, ethical approach to business, social and environmental activities, support and involvement and development of human capital. Official statements by key Bank representatives emphasize the role of financial institutions in the energy transition and financing of green projects. Similarly, the Bank views its role in expanding its ESG-linked product and service offerings, as well as ecology education. The Bank’s strategy includes responsibility to customers and counterparties. In addition to numerous statements to the media, appearances in expert debates and activity on social media profiles in 2022, management representatives took part in important events thematically related to environmental, social and corporate aspects of the organization. These included: World Economic Forum in Davos, European Economic Congress in Katowice, Economic Forum in Karpacz, All-Poland Economic Summit Lublin, Idea – Business – Climate conference, Euro POWER & RES POWER; Congress 590, or Corporate and Investment Banking Congress.