In the ongoing work on the transformation plan for climate change mitigation and the Decarbonisation Guidelines for the Pekao Group’s Credit Portfolio set at the end of 2024, we are focusing on the International Energy Agency’s (IEA) Net Zero Emissions (NZE) scenario. This scenario aligns with limiting global warming to no more than 1.5°C above pre-industrial levels by 2100. Under our adopted scenario, global greenhouse gas emissions are expected to decrease by 38% by 2030 and by 100% by 2050, relative to the 2020 baseline year.
Transition Plan for Climate Change Mitigation [E1-1]

As of the reporting date, 31 December 2024, we did not have a transition plan for climate change mitigation. In 2024, we initiated analytical work related to the calculation and assessment of the materiality of financed emissions (particularly in relation to the portfolio of credit and investment exposures, i.e., Category 15 of Scope 3). Based on the outcomes of these efforts, we will formalise, within the next two years, a transition plan that complies with regulatory requirements.
In 2024, we conducted analytical work on the calculation and assessment of the materiality of financed emissions
(particularly in relation to the portfolio of credit and investment exposures, i.e., Category 15 of Scope 3). Based on the results of this work, by the end of 2024, we adopted the Decarbonisation Guidelines for the Pekao Group’s Credit Portfolio. These guidelines define the key substantive assumptions and directions for further decarbonisation actions, which will be utilised in the process of developing the business model transformation plan.
Using the carbon footprint calculation methodology for financed emissions in both absolute terms and economic intensity (Category 15, Scope 3) developed by the Partnership for Carbon Accounting Financials (hereinafter: “PCAF”) and available data sources, the Bank calculated the carbon footprint of its credit and investment portfolio (as of 31 December 2023, the balance sheet exposure value amounted to EUR 34,014 million) at 5.4 mtCO2e (including Scope 1 and Scope 2 of financed entities).
The following asset categories were included:
- Listed shares and corporate bonds;
- Corporate loans and unlisted company shares;
- Project finance;
- Commercial real estate;
- Mortgage loans;
- Vehicle loans.
Within this portfolio structure, corporate loans, unlisted company shares, and project finance collectively accounted for 60% of the Bank’s financed emissions in Category 15, Scope 3. From the perspective of decarbonisation potential and contribution to financed emissions, we identified the portfolios financing electricity generation and iron and steel production as the most material within the above structure.
The results of this analysis will serve as the foundation for setting quantitative decarbonisation targets for 2030 and 2050 as part of the comprehensive decarbonisation plan covering the entire credit and investment portfolio of the Bank. We will utilise the best available data (including transitioning to an emissions intensity measure based on production intensity, in line with decarbonisation scenario requirements) and modelling solutions that ensure the decarbonisation process adheres to the 1.5°C warming limit, as stipulated by the Paris Agreement and updated international commitments. In the coming years, we will also establish credible decarbonisation targets for additional sectors identified as material in terms of emissions reduction potential and strengthening market position. The transformation plan will be subject to periodic updates to ensure consistency and adequacy in the context developments.

Despite the current absence of quantitative decarbonisation targets based on scientific evidence, we identify these actions and initiatives as the primary decarbonisation levers for the credit and investment portfolio. This is reflected in the quantitative key performance indicators adopted in the ESG Strategy (detailed in section 13.2.1.3.1 of this Report). At the same time, during the reporting period, the Bank, due to the lack of established decarbonisation targets, did not correlate the impact of undertaken actions with potential achieved emission reductions in the financing portfolio and own operations.
In the coming years, to achieve the objectives set within the transformation plan, we will develop a selective growth strategy, increasing financing for sectors involved in new low-emission investments while simultaneously limiting exposure to high-emission entities. Specific solutions, including our role in the cooperation model, will be determined by the transformation maturity of our customers and their needs.
Where applicable, we will also analyse locked-in emissions that may negatively impact the feasibility of achieving set targets, both in our own operations and in managing the credit and investment exposure portfolio.
Our transformation plan will be incorporated into the overall development strategy and financial plans, with progress being subject to periodic regulatory disclosures. Given the nature of our operations, we are not excluded from the EU climate benchmarks aligned with the Paris Agreement. The decarbonisation guidelines forming the basis for the transition plan of Bank Pekao S.A. were approved by the ESG Council, which serves as an advisory and supervisory body for implementing strategic ESG assumptions.