Carbon footprint

In 2022 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.

The PZU Group is preparing to implement tools to measure Scope 3 emissions. To this end, Climate Leadership conducted workshops with representatives from key areas. The work resulted in the identification of the Group’s main sources of Scope 3 emissions.

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 fully illustrate the impact of the reduction measures on the group’s total emissions, indirect emissions (Scope 2) are calculated using two methods. The market-based method more fully captures the effects of the actions taken by using emission factors specific to the electricity sellers in question and taking into account the guarantee of origin of the electricity purchased.

Total direct emissions in scope 1 in the PZU Group reached 25.8 thousand tons of CO₂e, compared to 26.3 thousand tons of CO₂e in 2021, up 4.8% (+1.2 thousand tons y/y). The increase, as compared to 2021, was caused by a higher utilization of the companies’ properties and fleets, which increased demand of fuel. Fuel emissions rose 5.4% y/y (+1.3 thous. tons of CO₂e, with a noticeable increase in emissions from combustion of gasoline and a decrease in emissions from combustion of diesel fuel, natural gas and heating oil. Numerous initiatives aiming to reduce scope 1 emissions were continued; among others the installations were replaced and modernized.

Emissions associated with heat energy fell by 25.8% (-12.4 thous. tons y/y), mainly in connection with the higher temperatures in the heating season which translated into lower consumption of heat energy in Poland.

Additionally, these trends were influenced by the Group’s implemented reduction initiatives in the area of own properties, and measures such as thermal modernization and optimization of energy consumption through changes in, for instance, heating methods. Electricity and heat consumption remained limited as operations are still remote and/or hybrid.

Location-based indirect scope 2 emissions reached 112.2 thousand tons of CO2e in 2022 compared to 121.7 thousand tons in 2021, which signifies a decrease by 7.8% y/y (-9.5 thousand tons). The decrease is less pronounced than in the case of the market-based method, because the location-based method does not take into account certificates of origin or differences in the emission rates of individual suppliers.

The reduction of scope 2 emissions measured with the location-based method was attributable to reduced emissions associated with the lower consumption of heat energy (-12.4 thousand tons CO₂e) and increased emissions related to the higher consumption of thermal energy (+2.9 thousand tons CO₂e). In the case of heat energy, the decrease in emissions (and consumption) resulted from higher temperatures in Poland. Electricity-related emissions increased to a similar extent due to the increased emission rates in Poland in 2022 and to an increase in electricity consumption as a result of higher employee attendance in the head offices, which was reflected in an increase in electricity consumption. In addition, in many Alior Bank branches used AC for heating (which also contributed to higher electricity consumption).

Comparing the results obtained using the location-based and the market-based method, one can see the management approach to selection of suppliers due to emission rates and purchase of energy from renewable sources. In PZU and PZU Życie, total scope 2 emissions (calculated using the marketbased method) in 2022 stood at 9.1 thousand tons CO2e, which is two times lower than the result achieved without taking into account the emission rates of the suppliers and the energy from RES (location-based). Total scope 2 emissions (calculated using the market-based method) in other Group companies in 2022 were lower by 31% than those calculated with the location-based method.

The share of PZU and PZU Życie in the Group’s total scope 1 and 2 emissions (calculated using the market-based method) was 18% in 2022.

Scope 3 (indirect) emissions in selected categories dropped by 16.2%, or 4.0 tons relative to the base year (2018). The biggest impact was exerted by the drop in emissions associated with energy and fuels not covered by scope 1 and 2, mostly due to the purchase of energy with certificates of origin. Changes to the fleet policy brought about a decrease in emissions associated with diesel consumption, and an increase in those associated with gasoline, however, with a negative balance, i.e., the total WTT emissions associated with the consumption of these two fuels decreased in 2022 compared to the base year.

For the calculation of emissions in accordance with the GHG Protocol standard, for fuels, electricity (consumed in Poland), emission indicators or data from the National Center for Emissions Balancing and Management were used, while for heat (consumed in Poland) the indicator of the Energy Regulatory Office was used (based on the publication “Heating Energy in Numbers 2019”). The emission indicators for electricity consumed in foreign companies for 2021 were obtained from data published by the European Environment Agency (in previous years from the International Energy Agency), while those for heat energy were obtained from the UK Government’s Department of the Environment, Food and Rural Affairs (DEFRA) database. For scope 2 emissions calculated according to the location-based method, average emission ratios for the respective countries were used.

The indicators for electricity from a given supplier (marketbased method) were derived from websites of energy providers (for instance, Enea, Energa, PGE, Innogy Polska, Tauron Sprzedaż, Tauron Sprzedaż GZE, Tauron Polska Energia, PKN Orlen, ENGIE Zielona Energia).

The emission indicators for energy in the scope of WTT (well to tank) (scope 3), business trips, purchased raw materials and services, waste management and GWP for refrigerants were obtained from the DEFRA database. No biogenic greenhouse gas emissions were identified.

The following data sources were used: data on fuel, electricity and heat consumption came from the invoices for the facilities where the consumption is measured (on the basis of invoices in PZU and PZU Życie; this pertained to electricity in over 90% facilities, for natural gas in over 90% facilities and for heat in over 80% facilities). Consumption of raw materials, refrigerants, waste volumes and business travel was determined on the basis of internal registers. Data that are not collected from the remaining companies were marked in the table with a dash.

The greenhouse gas described in the emission indicators for fuels, electricity and heat in Poland is CO2. The other indicators included CO2, CH4 and N2O emissions as well as refrigerant gases. The volume of emissions released by each company was consolidated at the PZU Group level according to the operational control criterion.

Below are presented the greenhouse gas emissions taking into account the consolidated assets and number of employees.

As a result of the actions taken to reduce emission rates, reduce energy and fuel consumption and emission rates in Poland, the intensity of scope 1 and 2 emissions using the market-based method per employee dropped from 4.79 in the base year and 3.28 in 2021 to 2.63 tons CO₂e in 2022. Emissions per million zloty of consolidated assets dropped from 0.61 in the base year and 0.32 in 2021 to 0.23 tons CO₂e in 2022.

PZU and PZU Życie took actions aimed at reducing scope 1 greenhouse gas emissions associated with combustion of fuels. To this effect, in 2022, the companies expanded their fleet by 15 hybrid cars.

Similarly, PTE PZU has a fleet of mostly hybrid-powered cars and intends to reduce fuel and paper consumption by 10% in the horizon to 2024, and also develop remote and hybrid working tools.

According to the commitment made in the ESG Strategy, PZU SA and PZU Życie SA carried out the offset of the CO₂ emissions to which they contributed in 2021. They were also joined by PTE PZU and TUW PZUW. These emissions were offset by purchasing certified offset credits, CERs, made available by the UN Carbon Offset Platform. As part of offsetting the environment for emissions generated in 2021, the funds were allocated to wind power development in India. The companies purchased offset units corresponding to emissions for PZU and PZU Życie 17,508 Mg CO₂, PTE PZU 24 Mg CO₂, TUW PZUW 68 Mg CO₂.