Actions in relation to material impacts [S1-4]

The actions we take as part of managing material impacts on our own workforce are aligned with the applicable regulations on preventing mobbing and corruption and on reporting breaches (whistleblowing), which we describe in detail in [ESRS G1] on corporate governance.

To support employees’ comfort at work and wellbeing, we offer solutions such as remote work, flexible working hours or part-time employment. In this way, we respect individual preferences regarding how and where work is performed and express our support for maintaining an appropriate balance between employees’ professional and private lives. We also organise a number of initiatives related to mental health, physical activity and health education.

In 2025, a total of 35 one- or two-day meetings were held, mainly concerning:

In addition, on 19 November 2025, following bargaining, the Bank and four trade union organisations that are parties to the ZUZP signed a Supplementary Protocol to the ZUZP introducing a quantitative–qualitative bonus scheme for retail network sales staff and Contact Centre sales staff, set out in Appendix 4D to the ZUZP. The Supplementary Protocol was registered by the Regional Labour Inspectorate in Warsaw.

At the Bank, we document the course of social dialogue and support communication between trade union organisations and employees by providing dedicated intranet pages. This enables organisations to publish their own bulletins and information on material workforce matters, including the course of dialogue with the employer.

Until 21 February 2025, the Employee Council of Bank Pekao S.A. (the “Employee Council”) operated as an independent employee representation body. The rules for its election, its purpose and its powers are set out in the Act of 7 April 2006 on Informing Employees and Consulting Them. The Council comprises 7 members elected in universal elections in which all Bank employees may stand.

Under the above Act, the Bank, as an employer, informs the Council about:

• its activities and economic situation and anticipated changes in this respect;
• the status, structure and anticipated changes in employment and actions aimed at maintaining employment levels;
• actions that may cause significant changes in work organisation or the basis of employment.

In addition, at the request of the Employee Council, the employer consults the Council on matters specified in the Act. The Employee Council also has an intranet page for publishing information for the Bank’s employees.

In 2025, 3 meetings were held with the Employee Council devoted to:

• work organisation in connection with implementing a new branch model;
• a meeting with representatives of the Retail and Private Banking Division.

The Employee Council’s term ended on 21 February 2025. Elections for the next term will be held after the Bank receives a request from employees as required by law. To date, the Bank has not received such a request.

We attach importance to education and upskilling of the Bank’s employees. The HR Projects and Organisational Modelling Office is responsible for organising training. We are aware that opportunities for professional development have a positive impact, on the one hand, on employees’ sense of belonging to the organisation and, on the other hand, on the delivery of tasks necessary to achieve its objectives. Hence our diverse offering of educational programmes for Bank employees, which includes:

• local training and general development webinars;
• international training and programmes;
• mentoring and group/team coaching;
• individual internal and external coaching;
• certification training, e.g. CFA/ACCA/CIA.

As part of individual training, we organise workshops and courses in specialist banking knowledge delivered by both internal and external trainers and experts – including moderators, coaches and facilitators. Participation enables employees to develop the competencies necessary to perform their assigned duties effectively. We fully cover the cost of employee participation in individual training to which we refer employees, and we partially reimburse – or provide via granted training leave – training that employees undertake on their own initiative. At the same time, for individual training that results in additional qualifications, licences or international certificates in which we co-finance participation, we require a training agreement to be concluded between the Bank and the employee. The agreement sets out the parties’ rights and obligations related to the employee’s professional development and the conditions under which employees reimburse training costs.

The development of employee skills that we focus on also includes foreign language learning in the form of individual language courses financed fully or partially by the Bank. These courses are aimed primarily at managers and high-potential employees who use a foreign language in their day-to-day duties. We deliver this training in cooperation with language schools with which the Bank has framework agreements.

We support employees in upskilling by enabling them, on their own initiative, to undertake postgraduate studies and MBA programmes in fields useful for work at the Bank. This form of support is also available to persons performing a key function in the Bank as part of their individual career paths. Where necessary, we also provide opportunities to obtain additional qualifications or authorisations required by external regulations. We enable professional development outside Poland through individual training, subject to separate approval of the business trip (flight and accommodation bookings).

The planning and delivery of development programmes is primarily handled by the Department of Development Management and Organisational Culture.

We also use training as a channel to provide our employees with knowledge on occupational health and safety (OHS). As part of induction training, newly hired employees receive general instruction from representatives of the OHS Service and role-specific instruction from their direct line manager. Refresher training, in turn, is delivered entirely via the e-learning platform, giving employees convenient and flexible access to knowledge resources. The training topics align with the issues indicated in the framework programme set out in the Regulation of the Minister of Economy and Labour on training in the field of occupational health and safety.

The Bank’s OHS Service monitors compliance with occupational health and safety regulations and rules and continuously provides information on occupational hazards and methods of eliminating them. It also plays an important role in assessing occupational risk to ensure employees are effectively protected against hazards present in the work environment. We have a fully digitised occupational risk assessment process, with all stages carried out via a dedicated application.

To communicate the most important information, we use a dedicated intranet page where we publish applicable rules, instructions and guidelines. We also enable employees to report potential hazards to a dedicated OHS mailbox, unless they prefer to contact the Bank’s OHS Service representatives directly.

Our organisation also has an OHS Committee comprising representatives of the Bank, including the physician providing preventive care to employees, representatives of the OHS Service and persons representing employees. The Committee meets regularly, i.e. once per quarter, to discuss current OHS issues and initiatives, including hazards subject to estimation in the occupational risk assessment.

One of the material negative impacts identified in the area of our own employees is uncertainty regarding job security linked to the increasing use of AI solutions in our organisation. The implementation of these solutions enables the digitisation of services and, consequently, streamlining of many banking operations. Actions taken in this area are based on automation and robotisation, leading, among other things, to the replacement of human resources with chatbots in customer service and creating a risk related to the closure of physical branches. This directly affects employment security for staff in bank branches, business and corporate centres and private banking outlets, and above all in call centre departments. This applies both to employees employed under employment contracts and to those engaged under civil law contracts. As these employees have specific skills related to direct customer service, the possibility of employing them in other, also increasingly automated, areas of banking, is limited.

To counteract the above impact, we draw on assumptions arising from our strategy of building an aspirational organisational culture, under which we invest in developing our employees’ skills, with a strong emphasis on future skills.

In 2025, we continued activities under the Copilot M365 pilot and the ambassador programme. We are currently in the tool adaptation phase and are running pilots to transform the way we work, with the goal of building a modern workplace environment. We also broadened employee participation in the implementation of the M365 Copilot tool by increasing the number of users.

In 2025, the Ambassadors group undertook additional training to update and supplement their Copilot knowledge resulting from integration of the tool with cloud solutions. We implement the project with the involvement of our external partners, with whose support we deploy, test and explore Copilot’s capabilities.

In addition, we have launched mandatory AI training for all Bank employees.

A second material negative impact in the area of own employees concerns the gender pay gap. To reduce the gap, we carry out remedial actions in line with the Gender Equality and Diversity Policy, such as analysing and monitoring the pay structure. This enables us to verify the level of pay received by employees for work of equal value.

Minimising the pay gap is also one of the annual objectives for the management team. As part of monthly monitoring, managers receive information on changes in the pay gap (based on basic salaries) within the units they oversee.

In addition, during the Bank’s annual salary review process, we take the pay gap into account. The salary review tool available to managers allows them to track how approved pay increases affect the pay gap (based on basic salaries)

As a result of the 2025 salary review process, the pay gap between women and men covered by the Company Collective Labour Agreement decreased by 0.6 percentage points, and by 0.8 percentage points at the level of the entire Bank. This indicator is calculated on a simplified basis, using basic salaries under employment contracts and excluding variable pay components.

The pay rise process is implemented based on an annual budget earmarked for this purpose for the population covered by the Company Collective Labour Agreement.