Implementation in 2022

Building the most comprehensive offer on the market

The 360° offer is a personalized, comprehensive and dynamic product offering suited to the constantly changing expectations and needs of clients at each stage of their life. It combines services from all areas of the Group’s activity, which gives clients access to a range of products consisting of life and non-life insurance, health and bank products and individual protection and investment solutions

In 2022, PZU implemented new, comprehensive insurance for housing cooperatives and communities as well as building societies (TBS) – PZU Dla Wspólnot i Spółdzielni. A new product, PZU Bezpieczne Lokum, is also available to members of housing cooperatives and communities. Further, PZU implemented a new product in its motor insurance line, sold together with TPL or MOD – PZU Auto Opony. Group insurance, PZU Na Życie Plus, was also initiated. This new offer will allow an employer to provide insurance cover, including medical care, to employees together with their families under one, multidimensional agreement and a single sales process. For those clients who are looking for ways to safely locate their capital, a new product was implemented – PZU Bezpieczny Zysk – protection of your capital. This is a short-term life and endowment insurance policy which guarantees that funds are paid out once the agreement expires.

TFI PZU added seven new funds to the passive investment portfolio available to inPZU users. The offer was extended by six equity funds and one of inflation bonds. The new products are theme-based, and allow allocating funds in specifically defined areas, such as RES (inPZU Akcje Sektora Zielonej Energii), gold (inPZU Akcje Rynku Złota), or real property (inPZU Akcje Sektora Nieruchomości). Two new products were implemented as part of the cooperation with banks. Pewny Profit (Reliable Profit) at Bank Pekao and Bezpieczne Jutro (Safe Tomorrow) at Alior Bank are two new products launched by PZU Życie with guaranteed rate of return in the bancassurance channel, making use of the potential generated by high interest rates. Since November 2022, the offer of Bank Pekao was extended by individual life insurance for borrowers of mortgage loans.

The goal of building the Benefits Ecosystem is to create new interactions with clients based on their everyday life activities such as physical activity, healthy lifestyle, sports, health, family, safety.

The ecosystem consists of a set of advanced digital tools targeted at both employers and individual clients. To employers, the ecosystem offers functionalities for managing non-salary benefits, engaging the community of their employees and for handling applications and service processes, while end users obtain access to various types of benefits: products and services of the PZU Group, such as PZU Sport or PZU Cash, PZU Zdrowie and numerous products offered by external partners.

It is an extensive ecosystem that provides in-depth assistance, including support for buying or selling a car, vehicle health checks, possible repairs and legal assistance, discounts on services from Group partners, arranging a replacement car, among other things. All services are available in one place, through secure and user-friendly digital tools. The platform for drivers is available to anyone, even those without insurance. Technological works are underway to launch further services: tyre service, window service and towing. Also, an automotive blog will be created. Next steps in the development of the ecosystem include the introduction of a repair history and access to loyalty programs.

In the health area, the PZU Group offers services relating to healthy nutrition and physical activity, preventive medical testing and full medical care – in the form of insurance, subscriptions or for fee services. The system will include teleconsultations and remote patient monitoring and household treatment while at the same time giving all of the interested parties rapid direct access to physicians in PZU Zdrowie’s proprietary outlet network that is constantly growing and undergoing integration. In 2022, the PZU Zdrowie offer was extended to include family and partner packages as well as subscriptions for seniors and young adults. PZU Zdrowie also made it possible for clients to pay in instalments when they buy medical packages through the mojePZU portal. The new method consists in paying for some of the services of the medical operator with a credit offered by Alior Bank. In addition, a PZU Zdrowie e-store was launched. Individual clients may use it to purchase convenient medical packages for themselves or their families. The e-commerce offer of the medical operator includes: subscriptions, test packages and individual appointments, which are available throughout Poland in the chain of PZU centers.

Sustainable development – ESG “Balanced Growth” Strategy

As part of the adopted ESG Strategy, the PZU Group takes actions to strengthen its position as the leader and which comply with the principles of sustainable development. The PZU Group places environmental, climate and social factors on equal footing. PZU continues actions in 3 main areas (#organizational responsibility, #trusted partner in green transformation, #better quality of life).

Giving consideration to ESG targets in the company’s strategic objectives and delegating them by the senior management

ESG targets comprise tasks connected with implementation of ESG strategy performance indicators; they relate to key projects and are directed to selected organizational units responsible for the implementation of strategic activities. By assigning ESG targets throughout the entire organization, also units which are not directly involved in strategic actions were included by PZU in the idea of sustainable development. The degree of attainment of these goals translates into the value of variable compensation to be received by the management staff.

ESG targets were assigned to PZU Management Board members and also Management Boards of some of the subsidiaries.

In 2022, PZU and PZU Życie implemented 30 targets which take into account ESG factors. There is a plan for 2023 to extend the catalogue of targets with actions related to the requirements of new ESG laws (including the EU Taxonomy).

70% of key purchase processes which accounted for ESG criteria

PZU has its “The CSR Code for PZU Group Suppliers”. It is a collection of principles for the PZU Group and all its suppliers. Conducting business in accordance with the Code and promoting its values constitute an important criterion for qualifying and evaluating potential business partners.

In 2022, opportunities to integrate ESG requirements into purchasing processes were explored during cyclical workshops. Following the diagnosis, the implementation of a solution to assess compliance with ESG requirements was initiated. It includes updating “The CSR Code for PZU Group Suppliers” due to slightly different array of ESG issues in relation to corporate social responsibility. The update is scheduled for 2023. Once it has been implemented, a requirement for a business partner to accept these new provisions will be part of the offering process.

For proceedings ongoing or completed in 2022, PZU conducted an information campaign that involved obtaining relevant statements from suppliers participating in key purchasing processes.

Increase of the current exposure to investments supporting climate and energy transition by 500 m PLN in 2021-2024

In 2022,  PZU and TFI PZU continued actions started in the previous year in terms of financing energy transition in Poland.

In march 2022, TFI PZU started financing a wind farm in Biały Bór with a target installed capacity of 144.9 MW. The project is located in the West Pomerania and will consist of 42 turbines with a unit capacity of 3.45 MW each. The sponsors of the project are the Spanish group specializing in RES projects, Uriel Renovables, and the French financial investor, Mirova, part of the Natixis group.

In April 2022, TFI PZU granted financing to construct 4 wind farms with the total power of 108 MW. The projects are located in Pruszcz, Markowice (Kujawsko-Pomorskie Region), Piaski and Wyszki (Wielkopolskie Region). The project sponsor is the experienced Dutch infrastructure fund DIF Capital Partners, whose completed investments in renewable energy reach 3.3 GW globally. According to the schedule, the two smaller projects (Wyszki, Piaski) were completed in the third quarter of 2022, while the other two (Pruszcz, Markowice) should be completed in early 2023. Annual production of wind farms financed by the PZU Group should provide green electricity for over 800,000 households in Poland.

ESG assessment of 55% of the biggest corporate insurance clients from sectors sensitive to ESG risks

According to the internal definition, the assessment covers the largest corporate insurance clients that operate in sectors which are highly and moderately sensitive to ESG risks and have a significant impact on PZU revenues.

Highly sensitive sectors include those industries that rely most heavily on non-renewable energy sources, are responsible for the greatest level of greenhouse gas emissions from direct and indirect emissions, and have the greatest impact on environmental degradation. The following industries are classified to this group: the fuel industry, the mining industry and the conventional power industry. Mediumsensitive industries include: chemicals, transport, automotive, construction and agriculture.

Internal analyzes were used to select industries highly and moderately sensitive to ESG risks. These were carried out on the basis of data on national greenhouse gas emissions and the percentage contribution of individual industries to CO₂ emissions. Furthermore, external data sources were used, including good market practices, guidelines from international organizations (OECD, UNEP FI, ECB) and leading rating agencies, as well as regulatory requirements (EU Taxonomy).

The assessment of clients was carried out on the basis of two original methodologies for public and non-public entities, developed within the PZU Group under the supervision of PZU. Environmental, social and governance issues have been included in the methodology for public companies. The environmental area covers the following topics : greenhouse gas emissions, carbon footprint, impact of operations on biodiversity, energy intensity levels, waste management, current key company-defined environmental risks and their management, adoption of a climate neutrality target and decarbonization strategy. Issues defined in the social area include: respecting labor rights, ensuring safe working conditions, fair competition and social activities. The area of corporate governance encompasses: issues related to the diversity of management bodies, the prevention of corruption and unfair competition, the structure of management and supervisory bodies, the protection of minority shareholders’ rights, the link between the remuneration of management boards and the achievement of sustainability objectives. The assessment is carried out on the basis of public data, including non-financial reports and strategies, and data from an external provider. The final assessment also depends on the sector in which the company operates. Non-public companies are assessed based on a simplified ESG assessment questionnaire. The application of the ESG criteria serves the purpose of risk assessment and is not exclusionary for clients.

In the following years, further corporate clients will be assessed according to an internal schedule. In addition, proposals for translating ESG assessments into business relationships will be developed in 2023.

Achieving climate neutrality by reducing emissions, purchasing green energy and compensating CO₂ emissions (emissions scopes 1 and 2)

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 emissions calculation is independently verified by a certified verifier. In 2022, PZU and PZU Życie took actions aimed at reducing scope 1 and 2 greenhouse gas emissions associated with combustion of fuels. In 2022, PV installations were mounted in 7 locations. Additionally, the companies expanded their fleet by 32 hybrid cars. It is estimated that this will translate into reduction of the annual CO₂ emissions in the following years.

Following the assumptions, the road to climate neutrality first involves the PZU Group’s main companies: PZU and PZU Życie, which plan to achieve climate neutrality by 2024 through reduction of energy consumption, use of RES and offsetting emissions (implementation of reduction projects, which contribute to reducing greenhouse gas emissions). 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. 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.

Going forward, by 2030, it is planned to reduce the carbon footprint of further companies in the PZU Group and to start reducing emissions across the entire chain of companies cooperating with the PZU Group.

Between 2040 and 2050, the Group’s ambition is to achieve climate neutrality of suppliers and business partners, and ultimately also of insurance clients and investments.

Achieving 10-15 million recipients of social activities in the area of safety and sustainable lifestyle per year

In 2022, PZU carried out nationwide health prevention campaign Zdrowe Życie (Healthy Life). The initiative was performed under the honorary patronage of the Presidential Couple, in cooperation with the Ministry of Health, the National Health Fund, the Ministry of State Assets and the Ministry of Education and Science. The campaign was also joined by the National Blood Donation Center, the Sanitary Inspectorate, the State Pharmacy Chamber and the National Security Office. One of the elements of the Healthy Life campaign consisted in mobile health areas organized by PZU. It was possible to have a number of tests there, free of charge, i.e. basic tests (blood sugar, blood pressure, cholesterol), spirometry or lung ultrasound, and the results could be consulted with specialists: PZU Zdrowie physicians (internist, pulmonologist, dietician, dermatologist, cardiologist). There was also a mammobus, where tests were carried out for women aged 50 to 69. The first mobile health area was ready on 3-4 June 2022 in front of the Presidential Palace in Warsaw. Over the next 5 months, the mobile health area made almost 5,000 km and visited 11 other cities throughout Poland. During this time, more than 34,000 tests, consultations and medical services were carried out.

On 10 May 2022, PZU launched the public prevention program Dobra Drużyna PZU (Good Team PZU), under which clubs and sports associations received funding to organize amateur sports activities, tournaments and competitions for children and young people up to the age of 18, including those with disabilities. The program is expected to significantly increase physical activity among children and young people, which will have a positive impact on their health and reduce their susceptibility to diseases and injuries in adulthood.

There were 1,667 entities that signed up for the program. Ultimately, 352 of them received funding. In total, Dobra Drużyna PZU prevention program reached 45,000 children practicing 43 sports across the country, primarily in smaller towns.

PZU, in cooperation with TVP 2, continued the TV program Zacznij od zdrowia (Start with Health). The program was broadcast from October 2022. It addressed key issues related to developing habits that have a positive impact on health, including regular check-ups and an active lifestyle. Experts, including PZU Zdrowie physicians, answered questions about, for example, the state of health of Poles after the pandemic, insomnia, diabetes, obesity and depression. The program emphasized the importance of physical activity in preventive health care, with a particular focus on sports activities for children and young people.

Covering 70% of employees with the well-being program offer

Adopted in 2021, the well-being strategy #DobryStan (#wellbeing) addresses PZU’s long-term goals in the area of caring for employees’ well-being. It is a tool and an interactive plan for challenges and expectations, as identified and regularly monitored, coming from within the organization and from the company’s external environment. It provides a comprehensive approach based on three main pillars: nurturing vital energy, building mental resilience and optimizing work style. The program influences the development of an organizational culture with people at its center. It is focused on dialogue, gathering employees’ needs and opinions, analyzing the results of engagement surveys and preparing appropriate actions.

The strategy promotes a healthy lifestyle, an optimal work style, inspires and encourages employees to implement habits that improve efficiency and quality of functioning on a daily basis. It suggests how to effectively combine professional and private roles: as an employee, parent, carer. It uses modern technology to support employees in staying physically and mentally fit.

In 2022, employees were able to benefit from a range of educational activities and support in difficult situations. Educational and promotional activities culminated in the annual #TyTworzyszPrzyszłość (#YouCreateTheFuture) conference. In addition to presenting trends in the future of work, the conference was dedicated to maintaining the high performance, health and well-being of employees. The ideas of the #dobrystan (#well-being) strategy were incorporated, for example, in the implementation project of the New Work Model.