Our Responsibility 2016
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Our Responsibility 2016 1 OUR RESPONSIBILITY 2016 | ON THE ENERGA GROUP Table of contents On the Energa Group. .7 Distribution activity. 97 1.1. Our company. .8 4.1. Development of distribution activity as a strategic area . .98 1.2. Responsible and ethical governance . .19 4.2. Quality and security of energy supply . .101 1 1.3. Report as a tool for dialog with our stakeholders. .30 4 4.3. Investments in the distribution network. .107 Customers. 37 Employees . 113 2.1. Customer relations . .38 5.1. Responsible employer . .114 2 2.2. Energa-Obrót SA customer and products . .42 5 5.2. Our employees .. 116 2.3. Responsible sales process. 47 5.3. Health and safety . .121 2.4. Customer-oriented innovations . .54 5.4. Education and development. 125 5.5. Employee involvment in developing organizational culture. 128 Natural environment . 57 Local communities. 137 3.1. Environmental objectives in 2016 . 58 6.1. Responsibility to local communities as a strategic area . 138 3.2. Environmental management strategy. 60 6.2. Activities benefiting society . .140 3 3.3. Ecological energy from conventional and renewable sources . 89 6 6.3. Cooperation with public administration and heeding the voice of local 3.4. Investments in environmental protection . 91 communities. 153 3.5. Environmentally friendly innovative technologies . 93 6.4. Charitable activity . 162 GRI Table . .166 3 OUR RESPONSIBILITY 2016 | ON THE ENERGA GROUP 4 Dear Stakeholders, We would like to convey to you “Our Responsibility 2016” report summarizing the key achie- and charitable activities, which is confirmed by reinstituting the Energa Group to the stock vements of the Energa Group in sustainable development and corporate social responsibility. exchange index of companies managed in accordance with the best sustainable development 2016 was a year of very intensive efforts for our organization associated with fulfilling our standards – Respect Index. obligations to our customers who expect efficient service and reliability of energy supplies, The Energa Group is also committed to activities aimed at combating corruption. As part of and to our shareholders who expect the company’s share price to grow. our membership in the Global Compact UN organization, together with the Ministry of De- During the next years we are going to achieve our goals, maintaining a balance between our velopment and Ministry of Treasury, we are involved in the program entitled “Counteracting stakeholders’ expectations and environmental protection, in accordance with the sustainable the Gray Zone 2014–2020” aimed at combating unregistered business and business crime. development philosophy we have been following for many years. At the same time, we place great emphasis on preventing the use of unfair practices in the New investments in generation sources will be executed using state of the art technologies, power sector by educating customers and guaranteeing clear and transparent rules for the satisfying the highest environmental standards, for example construction of a low-emission conclusion of agreements through a publically available Code of Best Practices. power generation unit in Ostrołęka and the hydropower plant on the Vistula river. The change in our organizational culture in the Group lends support to our strategic goals. Further modernization of the grid and its full computerization will also continue to be a top priority, so that Smart Grid meters are installed in each customer’s location by 2025. Our research and development efforts have led to the launch of the first energy storage unit Daniel Obajtek in Poland with a capacity of 0.75 MW and a volume of 1.5 MWh which, combined with the planned solar park and existing wind sources, the biogas plant and offtakers, will make up We want to improve our what is referred to as a Local Balancing Area (LBA). All these efforts will not only improve customer-oriented organizational culture the reliability of energy supplies and the efficiency of renewable energy sources but will also “ allow us to provide customers with innovative services and products. Prezes Zarządu We want our actions to translate into responsibility for the natural environment and therefore ds. Korporacyjnych Energa SA we welcome the fact that last year the European Commission officially confirmed the Energa This change is based on a modern human resources management policy. We are doing our Group’s presence in the prestigious EU Eco-Management and Audit Scheme (EMAS). Parti- best to ensure that our employees and associates identify with the Group and have a sense cipation in EMAS is the highest environmental distinction for businesses, which is especially of satisfaction from working in member companies. We want to offer them a safe and friendly important to us because Energa is the first power group in Poland with such a big number workplace, growth opportunities and also the ability to balance their private and professional Grzegorz Ksepko of its member companies to become participant in this environmental certification. roles. Our responsibility shows in both our care for good relations and dialog with local commu- We would like to encourage you to read “Our Responsibility 2016” report. We hope that the nities, ethical management and respect for human rights, execution of education programs Energa Group’s accomplishments will pique your interest. Wiceprezes Zarządu ds. Korporacyjnych Energa SA Respectfully yours, “ Daniel Obajtek Grzegorz Ksepko We want to build our future in a predictable President of the Energa SA Vice-President of the Energa SA and responsible way Management Board Management Board for Corporate Matters 5 6 On the Energa Group 7 NASZA ODPOWIEDZIALNOŚĆ 2016 | O GRUPIE1 ENERGA 8 1.1. Our Company Energa Group’s business highlights The Energa Group is one of the four largest power groups in Poland. Its core largest Polish companies (WIG 20) and the RESPECT Index listing responsi- business includes electricity and heat generation, distribution and sales and ble companies, and the London FTSE4 Good Emerging index. gas sales. It is one of three largest electricity suppliers in Poland. The parent The Group’s prevailing business model is predicated on operating in three million retail sulies 3 and usiness customers company in the Group, which initiates, coordinates and controls the electri- highly specialized segments accompanied by companies supporting their city value chain, is Energa SA with its registered office in Gdańsk. Its shares core activity. generation facilities, are listed on the Warsaw Stock Exchange and included in the index of the holds 2 including 4 hydro ower lants Generation Segment entailing the generation of electricity in conventional power plants and combined heat and power plants, generation of electricity from renewable energy sources as well as distribution of heat. The leader in this segment is Energa Wytwarzanie SA. has 184 thousand km distriutes 21 of energy a grid of of ower lines more than Th er annum Distribution Segment encompassing the distribution of electricity. The leader in this segment is Energa-Operator SA. Sales Segment consisting of operations associated with trading in electricity and customer service. The leader in this segment is Energa-Obrót SA. ok. emloys 8. thousand eole emloyed thous. under emloyment contracts In addition, the group encompasses shared service companies (centers), providing accounting, HR, payroll, administration and ICT support services. 9 OUR RESPONSIBILITY 2016 | ON THE ENERGA GROUP 10 Building Energa Group’s value Energa Group’s consolidated financials (in PLN million) ra Gene tion 2015 2016 ind Photovoltaics Revenues, including: net revenues on the sales of products, merchandise and materials 11 213 10 650 (including excise tax), other operating revenue and financial income h 0. W 01 Generation assets (capaci Consumption of resources T T 7 W in production .3 h Wind 211 0 Operating expenses, including: consumption of materials and energy, external services, depreciation Photovoltaics .41 Coal 1 288 thousand tons Biomass 81 Biomass 30 thousand tons and amortization and impairment losses on non-financial non-current assets, other costs by nature Coal 734 8 348 8 633 and other operating expenses, financial expenses excluding the costs of interest on incurred debt, Hydro 364.84 0 share in the loss of entities carried by the equity method . h 8 4 W T T 3,94 TWh W 4 Payroll and employee benefits, of which: Payroll and employee benefits, of which: h .0 ydro 0 Biomass 913 873 Distribution salaries, social security and other employee benefit expenses 2 .69 TWh Payments to investors, including: interest costs of incurred debt, dividends paid for last year * 857 440 Energy h umber of W ov customers Payments to the state, including: taxes and fees volume 1 T er 825 899 2 3 n m a i h ll t io e n oal r Investments in communities in the form of donations 3 11 o m Resources Economic value retained 267 (206) Grid length 184 thous. km 2 * The dividends paid for the preceding year amounted to PLN 596 million in 2015 and PLN 203 million in 2016. le 2 Sa s 8 m 3 The above data come from the consolidated financial statements of the Energa Group prepared in accordance with the International Financial Reporting in .8 u 2 te Standards as adopted by the European Union for the year ended 31 December 2016 (the data cover all Energa Group companies). SAIDI s SAII umber of 2 Retail sales n .1 io 4 customers l of gas Operational structure of the organization il T W m 3 h Energa SA Energa SA is the parent company of all companies making up the Group. accordance with the highest management standards of corporate gover- It is the sole shareholder or holds a majority stake. It is an active owner nance, information governance and investor relations while taking into integrating key management and support functions in the Group and ma- account environmental, social and economic factors.