The nature of the business activities means that the direct impact of the Bank and the Bank’s Group on the natural environment is limited.
The Group entities have procedures and structures in place for monitoring the legal changes regarding the environment, which are significant for their operations. In 2023, none of the Group entities conducted an activity that could significantly affect the environment. No administrative proceedings relating to a breach of the environmental regulations were conducted with respect to the Group that would result in any financial penalties.
Direct impact on the environment depends on the manner of consumption of limited natural resources. The Group monitors the consumption of such resources and engages in activities aimed at reducing their consumption.
None of the Bank’s Group entities conducted an energy efficiency audit in 2023. In 2021, in accordance with the requirements of the Act on energy efficiency the Bank conducted an energy efficiency audit. The findings of the audits in previous years were used to identify the areas with the greatest energy-saving potential and to draw up action plans, which are now being successively implemented.
According to estimates, in 2023 water consumption in the Bank was approx. 229.4 mega litres (224.2 mega litres in 2022) and 46.6 mega litres (45.5 mega litres in 2022) in other entities of the Group. The increase in water consumption in the Bank (by 2.3% y/y) is due to the increased presence of employees in the office (up by 1pp), the increase in headcount and the first-time inclusion of the Bank’s foreign branches in the calculations.
[GRI 302-1], [GRI 302-4]
| Bank | Oth. Entities | Group | Group | Bank | Oth. Entities | Group | Bank | Oth. Entities | Group | |
|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | r/r (%) | 2022 | 2021 | |||||||
| Fuel used in buildings | 17,205 | 3,001 | 20,206 | -13.2 | 19,603 | 3,671 | 23,274 | 22,122 | 3,889 | 26,011 |
| natural gas | 14,353 | 2,574 | 16,927 | -20.3 | 17,647 | 3,603 | 21,250 | 19,706 | 3,749 | 23,455 |
| heating oil | 2,702 | 0 | 2,703 | 50.4 | 1,789 | 8 | 1,797 | 2,188 | 98 | 2,286 |
| diesel oil | 59 | 421 | 480 | 291.5 | 71 | 51 | 123 | 49 | 12 | 61 |
| LPG | 0 | 5 | 5 | -41.8 | 0 | 9 | 9 | 0 | 30 | 30 |
| lignite | 0 | 0 | 0 | – | 0 | 0 | 0 | 0 | 0 | 0 |
| coal | 91 | 0 | 91 | -5.9 | 96 | 0 | 96 | 179 | 0 | 179 |
| Fuel used in vehicles | 25,156 | 12,530 | 37,686 | 4.5 | 23,774 | 12,305 | 36,079 | 19,356 | 10,224 | 29,579 |
| diesel oil | 1,394 | 2,660 | 4,054 | -30.8 | 1,737 | 4,125 | 5,862 | 1,124 | 4,097 | 5,221 |
| LPG | 0 | 0 | 0 | – | 0 | 0 | 0 | 0.2 | 0 | 0.2 |
| gasoline | 23,762 | 9,870 | 33,631 | 11.3 | 22,037 | 8,180 | 30,217 | 18,231 | 6,127 | 24,358 |
| Energy purchased | 130,658 | 17,798 | 148,457 | -5.4 | 136,484 | 20,513 | 156,997 | 143,181 | 19,831 | 163,012 |
| electricity | 71,703 | 10,480 | 82,183 | -6.3 | 74,031 | 13,652 | 87,683 | 75,494 | 11,125 | 86,618 |
| heat | 58,955 | 7,319 | 66,274 | -4.4 | 62,453 | 6,861 | 69,314 | 67,687 | 8,706 | 76,394 |
| Total energy consumption | 173,019 | 33,329 | 206,348 | -4.6 | 179,861 | 36,489 | 216,350 | 184,658 | 33,944 | 218,602 |
| Total | Poland | Czech R | Germany | Slovak R | Ukraine | Romania | |
| Electricity | 82,183 | 78,050 | 7 | 12 | 5 | 4,087 | 22 |
| Heat | 66,274 | 65,524 | 0 | 26 | 0 | 723 | 0 |
[GRI 302-3]
| Indicator | Unit | 2023 | y/y (%) | 2022 | 2021 |
| Total energy consumption per employee | MWh / person | 7.9 | -7.5 | 8.6 | 8.4 |
| Total energy consumption per PLN 1 million assets | MWh / PLN 1 million assets | 411.4 | -17.9 | 501.5 | 522.9 |
[GRI 302-4] Since 2019, the Bank has been systematically reducing energy consumption. Total energy consumption in 2023 is down 4.6% for the Group compared to 2022, including a 3.8% decrease for the Bank and an 8.7% decrease for the companies. The consumption of certain fuels in buildings has decreased: natural gas, LPG and coal. Group companies (SGK) reported a 720% increase in diesel consumption in relation to 2022. In 2023, the company that consumed the most diesel (99.6% of total SGK consumption) was KREDOBANK S.A. The increased demand for diesel was a result of the ongoing war in Ukraine – rocket attacks by the Russian army resulted in power supply problems, causing KREDOBANK S.A. to use diesel generators. The consumption of diesel used in SGK vehicles has also changed. Diesel consumption decreased by 35.5%, as a result of the replacement of diesel cars at PKO Leasing.
In order to reduce energy consumption the Bank has been improving the efficiency of the resources used and has continued the following measures: replacement of windows, replacement of lighting with energy-efficient lighting and installation of automatic light controls, replacement of heaters and change of heating method to gas heating, installation of ventilation with recuperation, installation of time switches on electric water heaters, fitting of heating boilers with controls, modernisation of air-conditioning units, insulation of buildings, replacement of thermostatic valves with heads on radiators.
70 reactive power compensation systems have been installed at the Bank’s properties, which should result in a reduction in reactive power consumption losses of an estimated 933,104 kvarh/year.
The bank replaced the external signage from friezes to spatial letters (a consequence of landscape resolution amendments in force) reducing the materials used and ensuring lower electricity consumption.
The bank has completed measures to optimise the operation of air handling units. The aim of these measures is to achieve energy savings and obtain energy efficiency certificates. Applications for the issue of Energy Efficiency Certificates for the upgrade of control automation for mechanical ventilation systems (covering 73.707 toe, 82 sites) were submitted to the ERO in June 2023 (case pending).
According to the audit findings, the estimated reduction in electricity consumption is: 66.501 MWh/year.
Following the completion of the automation upgrade activities, the Bank submitted applications to the ERO in June 2023 for the issue of Energy Efficiency Certificates for the upgrade of boiler automation in natural gas and fuel oilfired sources and the application of automation in electric hot water heaters (covering a total of 80.234 toe, boiler automation: 52 sites, automation in heaters: 420 sites – case pending). According to the audit findings, the estimated reduction in electricity consumption is: 131.03 (MWh/year).
The Bank has been installing photovoltaic micro-installations on its own properties since 2021. Photovoltaic installations do not reduce consumption, but change the energy generation structure of the property. The use of photovoltaic installations results from the Bank’s Energy Audit carried out in 2021.
In 2023, the Bank has installed 15 photovoltaic installations with a total capacity of 451.78 kWp, for which the estimated renewable energy yield is 409,373 kWh/year. At the end of 2023, the Bank’s facilities had 28 photovoltaic micro-installations, with five units installed at the end of the year not yet put into production.
| 2023 | 2022 | |
| In-house production of renewable energy | 300,571 | 171,105 |
| Consumption of electricity generated in-house | 226,995 | 123,376 |
| Sale of renewable energy generated by the Bank | 73,576 | 47,729 |
The Bank’s strategic goal is to achieve climate neutrality in 2030, which involves reducing energy consumption. The process of recruiting a consultant to develop an emissions reduction trajectory has been initiated.
[GRI 305-1], [GRI 305-2], [GRI 305-3], [GRI 305-5]
| BANK |
Oth. Entities |
GROUP | GROUP | BANK |
Oth. Entities |
GROUP | BANK |
Oth. Entities |
GROUP | |
| 2023 | r/r (%) | 2022 | 2021 | |||||||
| Scope 1 – direct emissions from: | 10,308 | 3,668 | 13,976 | -5.0 | 10,849 | 3,867 | 14,716 | 10,000 | 3,388 | 13,388 |
| fuels used in buildings | 3,656 | 630 | 4,286 | -11.2 | 4,081 | 744 | 4,825 | 4,681 | 797 | 5,478 |
| fuels used in vehicles | 5,846 | 2,857 | 8,703 | -0.5 | 5,725 | 3,019 | 8,745 | 4,757 | 2,591 | 7,348 |
| consumption of refrigerants | 805 | 182 | 987 | -13.9 | 1,043 | 103 | 1,146 | 562 | 0 | 562 |
| Scope 2 – indirect emissions from: | 22,168 | 6,782 | 28,950 | -14.3 | 26,274 | 7,510 | 33,784 | 28,101 | 9,203 | 37,304 |
| purchase of electricity | 840 | 4,277 | 5 117 | -38.5 | 3,335 | 4,990 | 8,324 | 4,590 | 6,305 | 10,895 |
| purchase of heat | 21,328 | 2,505 | 23,833 | -6.4 | 22,939 | 2,520 | 25,460 | 23,511 | 2,898 | 26,409 |
| Total emissions (Scope 1 + 2) | 32,476 | 10,450 | 42,927 | -11.5 | 37,124 | 11,376 | 48,500 | 38,101 | 12,591 | 50,692 |
| Scope 3 | 26,334 | 6,513 | 32,846 | 79.7 | 14,841 | 3,436 | 18,277 | 3,536 | – | 3,536 |
| cat. 1. purchased goods and services | 580 | – | 580 | – | – | – | – | – | – | |
| cat. 3. WTT emissions* | 12,989 | 1,624 | 14,613 | 97.5 | 3,987 | 3,413 | 7,400 | – | – | – |
| cat. 5. waste generated in operation | 19 | – | 19 | – | – | – | – | – | – | |
| cat. 6. business travel domesitc and foreign | 1,295 | 120 | 1,416 | 172.7 | 513 | 6 | 519 | 195 | – | 195 |
| cat. 7. employee commuting | 8,444 | 4,769 | 13,213 | 51.7 | 8,694 | 17 | 8,711 | 3,341 | – | 3,341 |
| cat. 11. use of sold products | 961 | – | 961 | – | – | – | – | – | – | |
| cat. 13. lease of space | 2,044 | – | 2,044 | 24.1 | 1,647 | 0 | 1,647 | – | – | – |
| Total emissions (Scope 1 + 2 + 3) | 58,810 | 16,963 | 75,773 | 13.5 | 51,965 | 14,813 | 66,777 | 41,637 | 12,591 | 54,228 |
[GRI 305-4]
| Indicator | Unit | 2023 | y/y (%) | 2022 | 2021 |
|---|---|---|---|---|---|
| GHG emissions (Scope 1+2) per employee | Mg CO2e / person | 1.7 | -14.2 | 1.9 | 2.0 |
| GHG emissions (Scope 1+2) per client | kg CO2e / person | 3.6 | -17.6 | 4.4 | 4.8 |
| GHG emissions (Scope 1+2) per PLN 1 million assets | ets kg CO2e / PLN 1 million assets | 85.6 | -23.9 | 112.4 | 121.2 |
[GRI 305-1], [GRI 305-2], [GRI 305-3]
| Scope 1 | Scope 2 | Scope 3 |
|---|---|---|
| [GRI 305-1] | [GRI 305-2] | [GRI 305-3] |
| 13,976 | 75,548 (location based) | 32,846 |
| 28,950 (market based) | ||
| Direct emissions of the Bank’s Group as a result of fuel combustion in sources owned by it and purchase of refrigerants | Indirect emissions of the Bank’s Group resulting from the use of purchased electricity and heat | Indirect emissions of the Bank’s Group arising from business travel, employees commuting, WTT, and lease of space |
The reported emission limits include: (1) in the case of data for the Bank only this entity (100% of emissions) (2) in the case of data for the Group: The Bank and all subsidiaries of the Bank according to operational control (100% of emissions of each of the entities). The reported emissions comprise Scope 1, 2, and 3.
The Bank is systematically expanding its Scope 3 emissions data, so the base year has not yet been determined. The disclosures for 2023 expand the scope of emissions to include Category 1 (emissions from purchased products and services for the Bank), Category 5 (emissions from waste generated for the Bank) and Category 11 (emissions from the use of sold products for the Bank). Emissions from the use of sold products included emissions generated when the Bank’s customers use two apps: iPKO and IKO. In the business travel emissions accounts, emissions from overnight stays in hotels were calculated for the first time (for the Bank), and in the employee commuting accounts, emissions generated during employee remote working were calculated (for the Bank).
| 2019 | No calculation of emissions in Scope 3 |
| 2020 | Domestic business travel for the Bank |
| 2021 | Domestic and foreign business travel for the Bank
Bank employee commuting |
| 2022 | Domestic and foreign business travel for the Bank and subsidiaries (cat. 6)
Bank and subsidiaries employee commuting (cat. 7) WTT emissions (cat. 3) Media consumption in areas rented to third parties (cat. 13) |
| 2023 |
Emissions from purchased products and services (cat. 1) for the Bank
WTT emissions (cat. 3) for the Bank and companies Waste generated (cat. 5) for the Bank Domestic and foreign business travel for the Bank and subsidiaries (cat. 6) Bank and subsidiaries employee commuting (cat. 7) Emissions from use of products sold (cat.11) for the Bank Media consumption in areas rented to third parties (cat. 13) for the Bank |
| CATEGORY | IS IT INCLUDED IN THE CALCULATION? | ||
| BANK | SGK | ||
| POLAND | FOREIGN BRANCHES | ||
| category 1 Purchased products and services | Yes | No | No |
| category 3 Energy and fuel-related activities | Yes | Yes | Yes |
| category 5 Waste in activities | Yes | No | No |
| category 6 Business travel | Yes | Yes | Yes |
| category 6 Business travel – hotel accommodation | Yes | No | No |
| category 7 Employee commuting | Yes | Yes | Yes |
| category 7 Employee commuting – remote work | Yes | No | No |
| category 11 Use of products sold | Yes | No | No |
| category 13 Leased assets | Yes | No | No |
No recalculation of greenhouse gas emissions was carried out for the base year (2019).
Detailed information on the methodology used to calculate emissions and the comparison with the base year are presented in the Inventory of greenhouse gas emissions of PKO Bank Polski S.A. for 2023 (https://www.pkobp.pl/relacjeinwestorskie/esg-w-grupie-pko-banku-polskiego/emisje-gazow-cieplarnianych/).
In 2023, the Bank Group’s emissions decreased (-11.5%, y/y, Scope 1 and 2, over 2022), driven by declines in emissions at the Bank (-12.5%) and SGK (-8.1%).
The Bank calculated GHG emissions intensity ratios for the purpose of comparison with the market. Total 1+2 Scope emissions for the Bank’s Group were used in the calculation. In this way, a full picture was obtained of the carbon footprint generated as a result of the operating activities.
The Group purchased electricity and heat, no purchases of technological steam or cooling were recorded.
| 2023 | y/y (%) | 2022 | 2021 | |
|---|---|---|---|---|
| Total | 893 | 28 | 697 | 901 |
| hazardous* | 15 | -25 | 20 | 21 |
| Other | 878 | 30 | 677 | 880 |
| including: | ||||
| bulky waste | 443 | 30 | 342 | 303 |
| electronic and electric | 302 | 49 | 203 | 366 |
| magnetic and optical data carriers | 3 | 257 | 0.84 | 1 |
| paper and cardboard waste (binders) | 19 | 73 | 11 | 32 |
| iron and steel waste | 111 | -8 | 120 | 178 |
The increase in bulky waste generated is due to the closure of branches and the relocation of employees to a new location in Warsaw. The increase in the volume of electro-waste generated (ATMs, multi-safes, dispensers) results from the closure of branches and the reclassification of cash branches to non-cash branches.
In 2023, the Bank had an agreement for the collection of non-municipal waste with the same service provider as previously. The service provider holds ISO 9001:2015 and 14001:2005 certificates. The waste collected from the Bank is handed over by the service provider to other waste management companies, in accordance with the decisions held and the applicable regulations.
Hazardous electrical and electronic waste is handed over by the Bank to a specialized company, where it is processed and recycled (100%).
Paper bank documentation is collected by a specialist company and shredded.
Moreover, in 2023 the Bank conducted the selective collection of municipal waste in all own locations and a number of rented locations.
In other entities of the Bank’s Group, the amount of waste generated increased from 373 tonnes in 2022 to 358 tonnes in 2023 (wastes generated which were destroyed or transferred to landfill).
The Bank replaced 84 petrol vehicles with low-emission hybrid vehicles. It has also begun working with VivaDrive to pilot electro mobility, where the feasibility of the Bank’s fleet for electric car deployment is being tested. At the end of 2023, the Bank had 1,578 cars, including 105 low-emission cars, 1,388 petrol cars and 85 diesels.
The Bank continued a project Flexidesk which is aimed at creating a new working environment and enabling work rotation/remote office work by adapting office space to a flexible working model and providing standard IT equipment. The project has resulted in the creation of 181 rotational workstations in Kraków in 2023 and a reduction of approximately 2 thousand m2 of office space in the Bank.
Decisions have been taken to continue the Flexidesk project in 2024 in Kraków, Olsztyn, Toruń and to implement new projects in Gdynia and Wrocław. A further reduction in space of around 10 thousand m2 and the creation of around 740 rotational workstations is expected.
The Bank optimised the space of its branches. As a result of the measures taken, branch space was reduced by more than 11 thousand m2 (from 339 thousand m2 to 328 thousand m2).
Measures are underway to increase the energy efficiency of the Bank’s properties and to reduce energy consumption concerning the replacement of lighting, thermo-modernisation of properties, air conditioning and ventilation, and heating methods.
The area of the Bank’s buildings and premises (owned and leased) was 789 thousand m2 at the end of 2023, having increased by 6.3 thousand m2 . The increase in the Bank’s total area results from the acquisition of new leased space – the Bank’s Head Office at ul. Świętokrzyska 36 in Warsaw.
The Bank has prepared and piloted a tool to assess the impact of the implementation of replacement and investment projects on energy consumption, emission levels, changes in non-commercial waste and water consumption. The tool enables the collection of information on building certificates and other indicators of a project’s environmental impact. The deployment of the tool was launched in early 2024. Projects that generate environmental impacts will be tagged in the IT systems, enabling the collection of additional project data and analysis of how projects are achieving their planned environmental effects.
Project assumptions that affect the contribution to environmental objectives:
The bank carries out environmental education activities. A series of meetings were prepared for employees, #ESGo!, during which information on the Bank’s carbon footprint was presented.
One of the tools for managing credit risk for selected industries/sectors is lending policies. The Bank has the following policies: Renewable Energy Sources, Carbon-Intensive Energy Sector, Chemistry-Oil-Gas, Revenue Real Estate (adopted and implemented in 2022), Construction and building materials, Car Dealers and CFM companies, Public Healthcare, Trade, LGU (adopted and implemented in 2022).
Apart from the aforementioned policies, the Bank (in the corporate segment) monitors changes and market trends in various industries/sectors on an ongoing basis, publishes internal materials (e.g., industry leaflets identifying current market trends) and organizes industry meetings. These measures have a direct impact on the high quality of the loan portfolio. The policies that have an impact on the environment and the climate are discussed below.
| POLICY FOR FINANCING THE RENEWABLE ENERGY SECTOR (RES) | Adopted and implemented in 2020 for the Bank and the Bank’s Group. Revision in 02/2022 (extension of the catalogue of collaterals and repayment sources).
Purpose: gradually increasing the share in the financing of renewable energy. Motivation: supporting the natural environment, preventing global climate change, transformation of the Polish economy towards net zero emissions. The policy defines the preferred directions of development of the loan portfolio in the renewable energy segment. It is focused in particular on the financing of photovoltaic farm and wind turbine projects. However, other projects can also receive financing. Project assessments performed by the Bank include an analysis of the following issues: formal documents, transaction parameters, sources of repayment (e.g. a successful renewable energy auction, PPA), as well as the investor’s capital resources and experience. |
| POLICY FOR FINANCING HIGH-EMISSIONS ENERGY SECTOR | Adopted and implemented in 2019 for the Bank and the Bank’s Group, updated in 2020 (tightening of the financing conditions in order to raise environmental awareness and support and accelerate eco-transformation).
Industry leaflet: 02/2022. Purpose: a gradual change in the loan portfolio structure by reducing the exposure to customers and transactions based on coal as an energy carrier (in line with the European climate policy and aiming for zero net emissions for the Polish economy in 2050). The policy covers, among other things, the following industries: coal and lignite mining, coal-related sectors (e.g. production of mining machinery, trading in coal and similar products), generation of electricity/heat (with the exception of RES) and supplementary activities in the power sector (transmission, distribution, heat and power plants). The main policy assumptions:
|
| POLICY FOR FINANCING THE CHEMISTRY, OIL AND GAS SECTOR | Adopted and implemented in 2019 for the Bank and the Bank’s Group.
Industry leaflet: 09/2021. Policy for Financing the Chemistry, Oil and Gas Sector defines, among other things, the framework for financing entities operating in the sectors of oil and natural gas extraction, production and distribution of liquid and gaseous fuels, production and trading in chemicals/chemical products, and production and sales of rubber and plastic goods. The Bank adopted a strategy for reducing engagement for activities covered by the Directive of the European Parliament and of the Council (EU) 2019/904 of 5 June 2019 on the reduction of the impact of certain plastic products on the environment and a prudent approach to the mining industry, oil and gas mining, chemicals, chemical products and rubber products. The prudent approach is reflected in, among other things, an assessment of compliance with environmental standards and the impact on the environment and an evaluation of the business model with regard to the concept of sustainable business development. The future shape of this policy may be affected by changes in EU law, e.g. with regard to the approach to the use of natural gas during the period of energy transformation, as well as the growing requirements in the ESG area. |
| REVENUE REAL ESTATE POLICY | Adopted and implemented in 2022.
Industry leaflet: 06/2022 (for residential real estate). The policy defines the framework for financing entities in the commercial real estate market and developers on the residential property market, and indicates the main assumption of cooperation with the best players on the market, financing the highest quality assets in the best locations, and reducing the speculative phase. The policy defines operating limits of concentration, including individual types of assets and geographical ones. The policy defines recommended boundary parameters for the transaction, as well as the structure of clauses and collaterals. In assessing the business model and identifying risks, the policy recommends taking into account the concept of sustainable business development, including benefits that can bring business to both stakeholders, local communities and the environment. |
| POLICY FOR FINANCING PUBLIC HEALTH CARE | Adopted and implemented in 2020 for the Bank and the Bank’s Group. The policy indicates preferred transaction parameters and introduces best practices/standards for financing public hospitals. Environmental aspect: collection, sorting, storage, transfer, transport and method of disposal of hospital waste (mainly medical) regulated by the law (e.g. the Act on waste, Environmental Protection Law => municipal waste => disposal in accordance with local regulations, medical waste => disposal by a specialist company (e.g. incineration)). |
On 29 May 2020, the European Banking Authority issued the Guidelines on loan origination and monitoring (EBA/GL/2020/06), which apply to the Bank as of 30 June 2021. The guidelines set out internal governance, processes and mechanisms for credit and counterparty risk, as well as requirements related to the assessment of borrowers’ creditworthiness. In accordance with the guidelines, the Bank assesses, on a case-by-case basis, the impact of the ESG factors on a customer’s creditworthiness in the corporate segment and in the companies and enterprises segment, evaluated using rating methods. The Bank takes into account data on energy consumption and the customer’s greenhouse gas emissions, as well as on its plans to reduce emissions and adapt to climate changes.
The lending process also includes an assessment related to the loan transaction. On the one hand, the Bank assesses the impact of a given loan transaction on ESG issues, and on the other hand, it examines how ESG factors affect the loan transaction.
When assessing the ESG factors, the Bank takes into account such factors as the risk of climate change and its impact on the customer’s operations, potential influence of the customer on climate, factors related to human capital or health and safety, and governance factors (including the corporate culture and internal audit). By using appropriate tools, the Bank estimates ESG risks, assesses and controls them. The identification of ESG risks allows the identification of projects which do not meet the increasingly high environmental and social requirements.
Products of the Bank’s Group supporting climate change mitigation and adaptation activities that are not fully aligned with the Taxonomy
| Green mortgage (offered jointly by the Bank with PKO Bank Hipoteczny S.A.) | „Własny Kąt” mortgage loan for buildings that meet certain EP ratings. Ability to reduce the loan margin upon delivery of an energy performance certificate for the property pledged as collateral for the loan, documenting compliance with the primary energy demand (PE) ratio and its validity period. In 2023, the margin discount was increased from 0.02 pp to 0.1 pp. |
| Thermomodernisation loan for multifamily buildings (for housing cooperatives and homeowner associations, LGUs and corporate customers) in the Bank’s offer | Those who receive this loan may obtain non-refundable aid from the state budget in the form of a thermal modernization bonus or an overhaul bonus for repaying 20% of the loan amount. The loan is intended for the purpose of improving the energy efficiency of buildings, increasing thermal insulation of buildings and saving energy. In 2023, the possibility of granting such loans to all corporate customers was introduced. Commission-free loan. |
| The “PKO Global Ecology and Social Responsibility” investment fund offered by PKO TFI S.A. | The fund’s assets are invested in entities whose operations are environmentally friendly and which generate a positive impact on the society. First valuation: 23 October 2019, rate of return at the end of 2023: 33.06%. |
| The “PKO Global Bond” investment fund offered by PKO TFI S.A. | A bond sub-fund that invests a portion of its assets (at least 50%) in debt instruments used to finance sustainable development, such as green bonds. Investing in this fund means supporting, at the same time, initiatives that have a positive impact on the environment, such as developing renewable energy, upgrading transport infrastructure, increasing the energy efficiency of buildings, etc. The Fund promotes environmental or social aspects within the meaning of Article 8 of the SFDR Regulation from 25.08.2023. |
| Ekopożyczka, a loan for the purchase and installation of photovoltaic panels and other environmentally-friendly devices and vehicles of up to PLN 50 thousand (in the Bank’s offer for individuals) | The repayment period is from 2 to 120 months, the interest rate is 8.99%, and the commission for granting the loan is 2 or 5%. The customer should provide an invoice documenting the purchase of photovoltaic devices for at least 85% of the loan amount within 3 months from the date of receipt of the loan. Otherwise, the interest is increased to the current maximum interest rate level. As from 2020, Ekopożyczka is also available to individuals who do not have bank accounts with the Bank. |
| Transactions on the CO2 emission rights market – commodity swaps and commodity forwards | Transactions addressed to the Bank’s corporate customers who are obliged to redeem such rights every year in accordance with the EU ETS regulations. The Customers may trade in such transactions and hedge against changes in the prices of emission rights. |
| FG POIR (BIZNESMAX) guarantees from BGK (in the Bank’s offer) | The possibility to secure loans for the so-called environmentally-friendly projects, such as a circular economy, electromobility, renewable energy sources. The company should carry out a project of ecofriendly innovation with pro-environmental effect. |
| Electric vehicle leasing (offered by PKO Leasing S.A.) | An agreement of PKO Leasing and Masterlease with Bank Ochrony Środowiska S.A. as part of the implementation of a government programme “Mój elektryk” (My e-car). Provision of assistance to customers in obtaining a subsidy under a programme for the purchase of an electric and/or hydrogen powered vehicle combined with an offer of lease services. |
| Financing of electric vehicle charging stations and points (in the offer of PKO Leasing S.A. for enterprises) | Leasing and/or loan available to all entrepreneurs. Initial fee from 10%, financing period from 48 to 60 months. Financing of charging points with capacity up to 22kW, large charging stations and construction facilities with the installation of at least one charging point with a high power. Possibility of financing energy storage facilities. |
| Financing of photovoltaic equipment (offered by PKO Leasing for enterprises) | Leasing and/or loan for the financing of photovoltaic equipment. Initial fee from 10%, financing period to 72 months, object of financing: panels and equipment installation costs. The module can be installed on the roof or ground. Possibility for financing wind turbines, heat pumps, and other energy generation equipment by prosumers. |
| Electric car rental (offered by Masterlease) | Extension of the long-term rental offer to include electric cars under the „Mój Elektryk” (My e-car) programme |
| Green structured deposits | 25-month structured deposit based on the basket of shares of leaders in sustainable development offered during the subscription period from 18.07.2022 to 1.08.2022.
A 25-month non-revolving structured term deposit based on a basket of shares of sustainable companies II – the companies selected have high sustainability (ESG) ratings; interest for the client depends on the change in the companies’ share prices during the term of the deposit. Deposit offered during the subscription period from 15.03.2023 to 29.03.2023. |
| Green mortgage covered bonds of PKO Bank Hipoteczny S.A. | In 2019, PKO Bank Hipoteczny SA issued the first green mortgage covered bonds in Poland. The total value of the two issues carried out in 2019 was PLN 500 million. In 2022, PKO Bank Hipoteczny S.A. issued for the first time green covered bonds denominated in EUR for EUR 500 million. PKO Bank Hipoteczny S.A. is gradually building a portfolio of loans which qualify for being financed with the funds obtained from issues of green mortgage covered bonds. The value of this portfolio as at the end of 2022 was PLN 5,794 million, i.e. more than twice the value of the green mortgage covered bonds issued. The portfolio of loans financed with the issues of green mortgage covered bonds was verified by an external firm (Sustainalytics) which confirmed the correctness of the utilization of the funds. The portfolio of mortgage loans qualifying for financing with the proceeds from green mortgage covered bonds offers annual energy savings of 256,428 MWh and allows avoiding annual greenhouse gas emissions of 96,160 tCO2 (which is more than the combined annual greenhouse gas emissions of the whole Bank’s Group). |
| Sustainability-linked bonds | Green bond issues, where the proceeds from the issue will be used to finance sustainability-related objectives. |
| Sustainability-linked loans | Loans for general or investment purposes where the margin is linked to the achievement of the company’s sustainability objectives in ESG areas. |
| Environmental loan for infrastructure upgrade – with subsidy from Bank Gospodarstwa Krajowego (BGK) | Loan made available in cooperation with BGK for investments reducing energy consumption in the company (e.g. upgrade of buildings, machinery and equipment). The aim of the investment is to reduce energy consumption by at least 30%. Reimbursement of up to 80% of investment expenditure. |
| Loan to finance photovoltaic farms (investment projects) | Offer for customers operating as commercial companies. The funding relates to photovoltaic equipment with installation services, where the equipment is installed on the ground for the purpose of producing energy for sale. |
In 2023, the share of loans to customers from carbon-intensive industries stood at 0.19% (with a tolerance limit for the Bank ≤ 1.6% and the Bank’s Group ≤ 1.6%) compared to 0.38% at the end of 2022 (for more see section 13.7.7 – Metrics and targets).
The Bank aligns its processes for identifying, assessing and controlling ESG risks with applicable regulations, including the EU Taxonomy. For the purpose of identifying assets in terms of eligibility and compliance with the EU Taxonomy, in December 2023 the Bank introduced principles for the classification of sustainability finance that will distinguish between environmentally positive and socially positive finance. The measures initiated will have an impact on the lending process in future reporting periods.
