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Value chain
The PZU Group cooperates with suppliers from many industries, in specific business areas: administration, corporate, real estate or information technology. The spectrum of supplies in question is wide, i.e., from demanding orders in the area of information technology to conventional goods and services. The largest group of suppliers are business partners for IT, real estate, utilities and energy purchases. PZU also maintains business relations in cooperation with organizations that run Acceleration programs (start-ups) and organizations supported through prevention and sponsorship activities.
Norms and standards
The PZU Group wants to contribute to shaping the attitudes of suppliers with the expectation of adhering to the standards and principles that PZU applies in its business activity. The Group is keen to promote the idea of corporate social responsibility in its relations with its suppliers, working only with those business partners who, among other things, respect human rights, firmly reject the possibility of employing children, do not tolerate any form of slave and forced labor, respect employee rights, and act in accordance with legal regulations, especially in the area of the prevention of corruption. Suppliers cooperating with PZU Group entities should ensure safe and fair work conditions for their employees and apply the highest ethical standards and care for the natural environment. The PZU Group wants to build long-term relations with suppliers based on mutual trust, respect and professionalism. In particular, we appreciate suppliers which apply proven market practices and represent the highest level of professional ethics.
Procurement Policy
The Procurement Policy in the PZU Group lays down the fundamental principles in the procedure for selecting the suppliers of goods and services, and the principles of cooperation and information exchange in procurement in the PZU Group.
It is in force in all PZU Group companies that are parties to the agreement on the rules of cooperation in the PZU Group dated 21 March 2017, including, among others: PZU Zdrowie, LINK4, TUW PZUW, TFI PZU, PTE PZU, PZU Pomoc, PZU Centrum Operacji and the PZU Group companies in the Baltic States and Ukraine. Bank Pekao and Alior Bank have entered into a cooperation agreement with PZU on cooperation in procurement. Its subject matter is to cooperate for the purpose of achieving procurementrelated synergies, exchange information about the supplier market and key variable contractual terms as well as cooperate in the area of procurement procedures, processes and tools.
The Procurement Policy in the PZU Group stipulates that persons participating in supplier selection avoid situations in which their personal interests may be in conflict with the interests of the entity, they represent the entity with dignity in interactions with suppliers by presenting merits-based qualifications, a pristine ethical attitude and concern for its image and mutual satisfaction derived from cooperation while simultaneously showing concern for the economic interests of the entity
The procurement process is conducted in a manner that guarantees observance of the principles of fair competition, while the entity entering into a contract with a supplier undertakes to share information on the contents of the contract with PZU.
Supplier Management Procedure
The supplier registers in the Supplier Database at its own initiative or in response to an invitation from a PZU employee if the supplier has not yet been placed on the List of Qualified Suppliers. It fills out the form with the data and submits declarations on having familiarized itself with “The CSR Code for PZU Group Suppliers”.
An employee of the PZU Supplier Qualification and Assessment Team checks the data and documents presented in the form, collects opinions within the organization. Then he or she decides on whether to reject a Supplier or commence its qualification process.
Involves an assessment of the collected data or documents against a specific procurement category. The qualification decision is made by the employee and approved by the manager.
At the end of 2022, there were 2,098 Suppliers with a status of at least “registered”.
Supplier selection procedure
The “Procedure for the Selection of Suppliers of Goods and Services” defines the principles and method of running the supplier selection procedure in PZU and PZU Życie.
Best practices of PZU and PZU Życie
In every procurement process, PZU employees who are members of procurement teams are informed about the Rules for managing conflicts of interest, the Anti-Corruption Program, and the need to report to the relevant PZU units when the possibility of a conflict of interest is identified. Notwithstanding the above, the senior management involved in the purchasing process makes representations regarding business and personal relations with the supplier recommended in a given procurement procedure.
According to this document, suppliers are selected as follows:
- through single-source procurements;
- through tender proceedings;
- through negotiations.
Documentation related to the supplier selection process, including: requisitioning, invitations to participate in tender proceedings and other tender documents, submitted offers, documents related to the decision-making process of the tender commission or negotiation team and the supplier selection protocol is stored by the Procurement Department or the unit of the company unilaterally making the selection for at least the entire term of cooperation with the selected supplier, and then is archived according to the principles in force in the company.
The Procurement Department has the right to verify a requisition in terms of the expedience of a procurement and the description of the subject matter of the procurement.
In 2022, the Purchasing Department completed 290 Procurement Department (tender, negotiations, single-source procurement, RFI) in PZU and PZU Życie. In total, 8,108 contracts were executed with suppliers in PZU and PZU Życie.
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“The CSR Code for PZU Group Suppliers”
Any company wishing to cooperate with PZU shall familiarize itself with the „Code of CSR Best Practices for PZU Group’s Suppliers” at the stage of registration for the PZU Supplier Base and undertake to comply with its clauses.
The document is a collection of principles for the PZU Group and all of its suppliers. Doing business in accordance with this Code and promoting its values are an important criterion in the classification and assessment of prospective business partners. An indispensable element of the offers submitted by Suppliers is signing the declaration on familiarization with the Code and acceptance of its clauses. “The CSR Code for PZU Group Suppliers”. is available on the PZU website www.pzu.pl/grupa-pzu/o-nas/kultura-compliance-pzu/kodeks-csr.
“The CSR Code for PZU Group Suppliers” refers in detail to issues in the areas of human rights, the environment and ethics.
The PZU Group expects that its Suppliers respect and will continue to respect human rights and act against discrimination in their businesses, in particular that:
- they abide by employee rights, they ensure safety and the appropriate working conditions for their employees;
- they reject the option of hiring children and do not tolerate any form of slave or forced labor;
- they ensure equal treatment in the workplace and do not employ any discriminatory practices due to age, gender, disability or race.
Every PZU Group supplier is expected to follow the very same principles of environmental protection, in particular by:
- striving to reduce the quantity of waste produced and segregating the waste produced;
- rationally consuming electricity and heat;
- reducing water consumption and countering its pollution;
- minimizing the emission of greenhouse gases, exhaust and dust.
PZU is a public trust institution. That is why we expect the following of Suppliers:
- application of the highest business standards in terms of the principles of fair and free competition and accuracy and credibility in communication with clients;
- protection of confidential information;
- prevention of corruption and conflicts of interest.
The Suppliers Code – prevention of corruption and conflicts of interest
“The CSR Code for PZU Group Suppliers” deals with the prevention of corruption and conflicts of interest.
Suppliers are also obliged to act in this regard by prohibiting the giving or offering of undue benefits to anyone in exchange for a specific action or failure to do so. A Supplier that respects the Code avoids and prevents situations conducive to the emergence of conflicts of interest, both in the process of applying for cooperation with the PZU Group and during the subsequent course of cooperation.
Supplier audits with ESG elements
The Supplier Audit Team administers business audits on suppliers who have concluded an agreement with PZU or PZU Życie or with both companies and on the PZU Group’s prospective business partners. Supplier audits are carried out in compliance with specific priorities and criteria.
Types of supplier audits:
Their purpose is to check suppliers regularly with which PZU cooperates. They are conducted according to a predetermined plan
They are done under order, e.g. in a situation in which a given supplier needs to be checked urgently on account of problems encountered during collaboration or as part of checking a new supplier.
A supplier audit may be conducted in a fundamental scope. In that case it encompasses a diagnosis of the supplier utilizing information from inside and outside the organization, a remote audit using an abbreviated audit form filled out by the supplier and the entire process is wrapped up by drafting a final report and a possible list of recommendations. An extended audit includes an on-site audit in the supplier’s premises. The full audit form filled out on site or directly after the visit is utilized in this type of audit. A representative of the substantive unit may also participate in an extended audit.
In both cases, the subject matter of the audit covers, among other issues, topics related to data protection, including personal data protection and environmental protection in the context of waste management, and since 2022 also topics related to human rights, employee rights and environmental protection in terms of energy management, water management and production management.
While ESG coverage is not mandatory as part of supplier audits, appropriate audit recommendations may be made if serious supplier violations are found or if required standards related to respect for human rights or the environment are not met. Based on these, it may then be expected to create, implement and monitor a plan to mitigate the identified risks.
Prevention of corruption
Corruption risk assessment is a constant part of the procurement process. Each potential supplier is subject to corruption risk assessment on the basis of a pertinent risk assessment questionnaire.
In addition, in accordance with the Anti-Corruption Program, each cooperation agreement between PZU and a business partner should comprise anti-corruption clauses. One of the clauses is a confirmation of acceptance of the anti-corruption standards prevailing in PZU by the supplier. In accordance with the internal procedures, entities cooperating with PZU and PZU Życie are informed about the Anti-Corruption Program in place in the company.
Cooperation with suppliers – subsidiaries
With a view to ensuring the highest operating standards and mitigating the risk of establishing cooperation with an unreliable supplier, Alior Bank has put in place a two-stage supplier verification process within the framework of the supplier qualification procedure described in the Procurement Policy.
At the initial stage of qualification, suppliers establishing a relationship with Alior Bank are verified, within the framework of the applicable procurement procedures, on a number of levels, including in particular in terms of: financial stability, “warning signals” (i.e. information available from open sources), verification of checklists, including the KNF’s Public Warnings List, taxpayer status and incidents threatening the integrity of banking activities.
Moreover, suppliers must submit their “Business Ethics” statements, in which they take a stance on their organization’s observance of the ethical standards referred to therein. Such statements concern, among other issues, compliance with employee rights, compliance with applicable laws governing issues related to the natural environment, the immediate surroundings and other entities, compliance with generally applicable laws, principles of ethics and fair competition, and zero tolerance for corruption.
At the stage of ongoing qualification, those suppliers who continue their cooperation under existing arrangements and whose revenue generated from such cooperation exceeded PLN 100 thousand gross in the year preceding the current classification cycle, within the framework of the Annual Supplier Qualification, are vetted across the main dimensions, as described and binding also at the initial stage.
The conduct of procurement processes at Bank Pekao is defined by three key regulations that have been in place since 2018: “Procurement Policy at Bank Polska Kasa Opieki Spółka Akcyjna”, “Rules for the execution of purchases by the Procurement Department at Bank Polska Kasa Opieki Spółka Akcyjna” and “Rules for the execution of purchases without the participation of the Procurement Department at Bank Polska Kasa Opieki Spółka Akcyjna”. The rules were revised again in 2019, 2020 and 2022 following further transformation of the Bank’s procurement function. The Procurement Policy was also updated in 2022.
A requirement is in force in Bank Pekao for suppliers participating in tenders for more than PLN 1 million net to fill out the “Social and Environmental Responsibility (CSR) Form”. Thus, action is taken by Bank Pekao aimed at ensuring sustainable development, protecting the natural environment and preventing breaches of human rights by the bank’s business partners. The form contains questions regarding the observance of environmental protection regulations and human rights in the daily activities of the supplier or business partner. The following areas are covered by the form:
In the environmental context:
- holding certificates attesting to the environmentallyfriendly business profile of a given business partner,
- adhering to environmental protection laws and regulations, inspections conducted and criminal cases related to the failure to abide by the regulations in force in this field,
- implementing innovative and environmentally-friendly new technologies,
- holding training sessions and informational meetings for employees on ecological issues;
In the social context:
- prohibition of forced labor.
- respect for the laws governing working time,
- respect for the laws governing occupational safety and health issues,
- compliance with labor law and regulations, including in respect of the payment of employee compensation to all staff in line with the practices applied normally in the sector.