Direct environmental impact

[GRI 307-1]

Carbon footprint of the PZU Group

In its strategy for 2021-2024, the PZU Group declared that it would be an active participant of energy transition and by 2024 it plans to fully utilize energy from renewable sources and offset emissions from own sources. Within the time horizon of the strategy, PZU and PZU Życie should become climate-neutral in scope 1 and 2.

In order to monitor this commitment, the PZU Group has been measuring its direct and indirect emissions since 2018. Every year, the measurement process is improved and its scope extended. The calculation of 2020 and 2021 emissions was for the first time subject to an independent review by a certified reviewer.

In 2021 the PZU Group continued multidirectional measures aimed at reduction of its emissions in scope 1 and 2, among others through purchase of energy from renewable sources, installing own installations for renewable energy production (photovoltaic panels) and purchase of energy from suppliers characterized by lower emission rates.

According to the commitment stated in the ESG Strategy, in 2021, PZU SA and PZU Życie SA for the first time offset the CO₂ emissions to which they contributed in 2020. The offset was made by purchasing Carbon Dioxide Units (JDW) offered by State Forests. Overall, the Companies purchased enough Carbon Dioxide Units to offset nearly 17 thousand tons of CO₂ and the funds from their purchase – as indicated – will be used by State Forests to plant a forest in areas damaged by a cyclone in 2017. The 2021 emissions are expected to be offset in 2022. JDW were not included in the verification.

The PZU Group was placed on the list of climate leaders for the second time – the ranking of Polish companies with the biggest reduction of greenhouse gases (GHG) organized by “Forbes Polska” and Statista, company specializing in market and consumer data. The aim of the ranking is to distinguish companies that are the most aware of their challenges regarding greenhouse gas emissions, showing at the same time respect for the environment.

Below are the data on the total direct and indirect emissions for the whole PZU Group and for the main insurance companies: PZU and PZU Życie. The calculations of the carbon footprint were made in accordance with the international GHG Protocol Corporate Accounting and Reporting Standard. 2018 was selected as the base year. To illustrate the impact of these measures on the Group’s total emissions, the data on scope 2 (indirect emissions) are enriched by a calculation of the emissions using the market-based method, which more fully reflects the impact of the actions taken, thanks to the use of emission rates specific to respective electricity sellers.

Emissions (scope 1) 2021 vs. 2020

Total direct emissions in scope 1 in the PZU Group reached 25.1 thousand tons of CO₂e, compared to 25.8 thousand tons of CO₂e in 2020, down 2.7% (-0.7 thousand tons y/y). The slower decrease as compared to 2020 was caused by a stable or higher utilization of the companies’ properties and fleets, which increased consumption of fuel. Fuel emissions declined 2.6% y/y (-0.6 thous. tons of CO₂e, with a noticeable decrease in emissions from combustion of gasoline and diesel fuel and an increase in emission from natural gas and heating oil. The latter were adversely affected by low temperatures in early 2021. Numerous initiatives aiming to reduce scope 1 emissions were continued; among others the installations were modernized and heating boilers replaced. In PZU, PZU Życie and both PZU Group banks, the cars in the own fleet were replaced with models producing lower emissions. Additionally, already in previous years PZU and PZU Życie began installing air conditioning devices containing new environmentally friendly refrigerant R32 which has a third of the GWP (greenhouse effect potential) compared to standard refrigerants. In 2021, 18 such air conditioning devices were installed. As a result, refrigerant-related emissions fell in 2021 by 4.6% (-56 tons y/y).

Consumption of raw materials

Curtailing the consumption of raw materials

PZU and PZU Życie systematically reduce the purchase and consumption of office supplies, including paper, constantly reducing the number of printers used. In 2021, only the environment-friendly paper with lower basis weight, i.e. Discovery Eco-Efficient 70 g/m² holding the “FSC mix” and “EU Ecolabel” certificates – was purchased and used. The change of paper type to a thinner one leads to an over 8% reduction of the weight of the paper consumed, as compared to paper with a standard grammage of 80g/m². Additionally, the Discovery paper is produced from the Tasmanian Blue Gum eucalyptus tree which, thanks to a different fiber structure, makes it possible to reach a ca. 37% reduction of the wood used in relation to the commonly used trees, such as maritime pine or paper birch. In 2021, 55% of the insurance forms in terms of the weight are prepared on certified paper – this result is for both companies (52% in PZU SA and 61% in PZU Życie). In 2022, the commitment to have at least 50% of the insurance forms in terms of the weight prepared on certified paper, will be continued. All new printing devices have the Blue Angel certificate are equipped with an automatic two-sided printing (duplex) module – wherever the specific nature of work permits two-sided printing, it is set as the default printing option.

PZU strives to increase the volume of electronic mailing. PZU has over 4.3 million mandatory insurance clients who receive renewal correspondence every year. It may be sent in a traditional letter, by e-mail or in the mojePZU application. O At the end of 2021, the number of clients receiving electronic renewal letters from PZU increased by 120 thousand (y/y).

In 2021, almost PLN 1.7 million renewal letters were sent electronically rather than on paper. It is almost 200 thousand more than in 2020. Further curtailment of the consumption of paper in the coming years relies on an increase in the number of mojePZU accounts. A new account of a mandatory insurance client means that the next renewal will be delivered electronically.

Total consumption of raw materials in the PZU Group

Total consumption of raw materials at PZU and PZU Życie

Paper consumption at PZU and PZU Życie

Alior Bank introduced restrictions regarding document printout through optimizing the printing process. The use of company printers is possible only after the employee logs into the device, which prevents incidental printouts and improves the management of paper and toner consumption. Additionally, printers are set by default to double-side printing. The number of branches in the environmentally-friendly format using materials and products from local suppliers increased. Most of such products are recycled. When designing the new facilities, special emphasis was placed on increasing access to daylight to reduce electricity consumption, and the LED lighting provides the ability to adjust the intensity of the lighting to the time of day.

In Q4 2020, Armatura Kraków replaced radiator packaging from full boxes to the so called “sides”. This effort brought savings in the range of 43 tons of paper per year, which is nearly 26% of the annual consumption. In 2021, the company continued to develop this practice, implementing it for additional radiator models. Armatura Kraków regularly carries out activities to reduce waste and consumption of water, energy and gas and its and adverse impact on the environment.

In 2021, Armatura Kraków implemented a central printing system, which improved control and security; it also reduced printing at the company level by approximately 30%. The main features of the implemented system are: improved security through implementation of a card-based authentication, and printouts in any printer connected to the system. Control over printouts through authentication has enabled monitoring and reporting on this area. .

TOW “SOS Service Ukraine” implemented partly electronic document flow to minimize paper consumption. In 2021, 65% of internal documents were moved to the electronic workflow system and 45% of documents exchanged with external partners were moved onto electronic media. Actions were taken to reuse paper and recycle used paper. An agreement was signed with a company which supplies the offices with special boxes for collection and processing of paper.

In addition to reduction of raw material consumption and reduction of greenhouse gas emissions, the PZU Group takes actions reducing the number of printing devices used:

• withdrawal of printers with the least usage;
• printing via shared multi-function devices;
• introduction of printer sharing in the branches where the desk layout allows for that.

Reduction of the number of printers at PZU and PZU Życie

PZU and PZU Życie apply a sustainable and responsible approach to disposal and reuse of assets following the “5 R” principle. This principle encourages us to use resources responsibly, renew and repair older things to extend the time of their operation:

• Reduce;
• Reuse;
• Recycle (segregate and recycle);
• Recover (especially energy from waste);
• Renew.

The companies cooperate with firms offering the highest waste management standards, confirmed by pertinent environmental certificates. PZU and PZU Życie undertook to increase the share of recycling in the total number of liquidated assets from 33% at the end of 2018 to 39% at the end of 2020 (in 2021, this percentage was 34.1% - as a result of the pandemic and the limitation of the asset liquidation process. In 2022, the share of recycling in the total number of liquidated assets should increase again). This ratio is achieved by promoting the sale of assets to employees, external clients or by donating them. Additionally, collections of used mobile phones are held regularly and the devices are sold to a specialized company (recycling).

Reduction of the number of printers at PZU and PZU Życie

The volume of used mobile phones and modems to be recycled and sold to company employees is as follows:

• 2018 – 2,602 pcs.
• 2019 – 2,030 pcs.
• 2020 – over 3,000 pcs.
• 2021 – 1,703 pcs.

In connection with a change of the headquarters, the company plans to sell the assets that will not be moved to other units to employees. We plan to recycle/reuse 85%-90% of furniture at the KBC location (of which 75%-80% to be sold to employees and 25%-20% to be donated) and 50-70% of furniture at the Tower location (50%/50% sales to employees/donations). Employees will also be able to buy white goods, such as coffee makers, refrigerators, dishwashers, microwave ovens, LCD TVs, large format LCD displays/monitors, shredders, projectors, small unregistered items, such as reproductions, small office equipment, lamps, etc.

As part of waste management, the Pekao Bank regularly hands over paper documentation, computer media, furniture, and white and brown goods for specialized disposal. The products are recycled and prepared for reuse as raw materials or alternative fuel. When ordering new white and brown goods, the company takes into account the service involving collection and disposal of old goods.

Curtailing the consumption of water

Water saving activities are associated largely with distribution of potable water. Since 2018, PZU has been implementing a change in the distribution of water in big plastic bottles to a more sustainable system. Installation of water dispensers using water from the water supply system, use of running water filters or consumption of water directly from the tap in places where water is good to drink, not only optimizes the use of water but also reduces the number of plastic bottles on the market, reduces carbon emissions by eliminating transport and reduces the energy and raw materials needed to manufacture plastic bottles.

Total consumption of water separately for PZU and PZU Życie 

Total consumption of water in the PZU Group

Planned reduction in the number of water dispensers and big water bottles*

* In PZU locations in which the technical conditions allow for that, running water dispensers are successively installed. In the dispensers water from the water supply system is treated in a multi-level filtration process, after which it can be collected as cold, room temperature or hot water. At the front-office we install dispensers without hot water.

** Due to the COVID-19 situation the agreement on the dispensers operated by EDEN (big plastic water bottles) was extended by eight months till the end of February 2022. This extension will also allow for organizing a single tender procedure for the network dispensers nationwide. A tender procedure for tap water dispensers was commenced in 2021. The procedure has been completed and the agreement for new dispenser has been signed. After the new agreement is implemented, the big bottle dispenser will remain only in the facilities where they cannot be connected to the water system due to technical or ownership reasons.

*** The increase in the number of big bottle dispensers by 5 units from 2020 is due to increased demand for water as employees returned to stationary work and tap dispenser failures. Starting on 1 April 2022, big bottle dispensers will be gradually replaced with tap water dispensers.

Environmental education of employees

The PZU Group is one of the largest employers in Poland. It is aware that building responsible employee attitudes contributes also to reduction of the negative environmental impact. Regular activities are undertaken to encourage employees to save paper by reducing the number of printouts in PZU outlets throughout Poland (back-office): Stickers with the slogan “If you don’t have to, don’t print. Green PZU” encourage the reduction of printouts. The organization also limits printouts of posters and leaflets in internal communication. The promotion of the reduction of printouts will be continued in 2022. The company has planned communication and education campaigns promoting environmentally sound conduct: black and white and double-sided printouts, messages encouraging lower numbers of printouts, e.g.: do not copy – scan, this does not cost anything, use the print view – avoid poor printout formatting, hold paperless meetings – use a projector. Other planned campaigns include an educational campaign encouraging sustainable usage of hybrid and electric cars, posted on the driver’s portal of PZU’s intranet website, and information campaigns on the recycling of used cell phones. Additionally, each issue of the internal employee newsletter “My PZU” contains articles raising key environmental issues.

In 2021 an educational campaign was organized to coincide with the European Sustainability Week. For 5 consecutive days, employees received a dose of knowledge on the Intranet portal. Educational materials were read by more than 1,000 employees. The Sustainability Week was accompanied by a contest entitled “SDG (Sustainable Development Goals) Challenge 2021”, or how PZU may stimulate sustainable development?”, in which employees were encouraged to come up with innovative business ideas. The contest was carried out via the Idea Generator, a platform for the exchange of ideas and comments by PZU Group employees. In this edition of the contest, ideas were sought for business initiatives which would support the execution of three selected Sustainable Development Goals.

• How can PZU prevent climate change and protect natural environment in Poland?
• Protecting and promoting human rights in a digital world - what actions can PZU take?
• “Sustainable Development” - How to engage PZU’s stakeholders in joint actions for sustainable development?

Based on specific criteria, the contest jury selected 10 best ideas, with the winning three receiving financial awards. The best ideas were handed over to business units for in-depth analysis.