Climate impact management

The Polenergia Group has aligned its development strategy with the expansion of renewable energy sources and solutions based on green generation. We are introducing products that enable us to deliver zero-emission green energy to our customers. Although energy produced in this way translates into a reduction in greenhouse gas emissions, certain processes related to the construction of farms or the sale of electricity still generate a carbon footprint. Being aware that it is impossible to plan emission reduction actions without knowledge of our carbon footprint and the main sources of emissions, we carried out our first calculations for Scope 1 and 2 back in 2021, without waiting for regulations to require it of us.

Marta Porzuczek

Director of the Environmental Protection and Sustainable Development Department

Greenhouse Gas Emissions

Since 2021, the Polenergia Group has been monitoring the carbon footprint of its operations, while actively seeking opportunities to reduce it. Thanks to its strategic approach to emission reductions, Polenergia avoided more than one million tonnes of CO_₂e emissions in 2023. This means that the Group contributes to reducing emissions by approximately 1 million tonnes of CO_₂e annually by producing green energy. In the coming years, offshore wind farms will represent another significant step in this transformation, eliminating an additional 2 million tonnes of CO_₂e per year – so-called avoided emissions.

Due to the nature of Polenergia’s operations, avoided emissions have been calculated. Avoided emissions refer to the amount of greenhouse gases that would have been released into the atmosphere using conventional methods of energy production, reduced by the emissions resulting from production using alternative sources. To estimate avoided emissions, it was assumed that the electricity generated by Polenergia would otherwise have been produced from conventional sources, based on Poland’s energy mix (according to the KOBiZE emission factor). The total annual electricity production in MWh was multiplied by a location-based emission factor reflecting the average CO_₂e emissions per MWh produced in Poland. Avoided emissions for Wind and Photovoltaic Farms were calculated using this methodology. The planned annual energy production for each wind farm was taken into account and multiplied by the KOBiZE factor. The expected operational lifespan of around 30 years for each wind farm was also considered. Additionally, the calculations took into account the expected decline in the KOBiZE emission factor over time, due to the increasing share of renewable energy in the national energy mix.

Polenergia Group reports emissions in Scopes 1, 2, and 3 according to the GHG Protocol methodology. Direct emissions (Scope 1) result from the combustion of fuels in stationary or mobile sources owned or controlled by the company. These also include emissions generated by technological processes or from refrigerant leaks. Indirect emissions (Scope 2) arise from the consumption of imported electricity, heating, technological steam, and cooling. Scope 2 emissions are calculated using two methods. The location-based method reflects the average energy intensity of the grid to which the energy consumer is connected. The market-based method aims to reflect the conscious choice of energy supplier – it presents emissions calculated based on the emission intensity specific to the selected supplier.

Scope 3 emissions are described in detail in the publication Journey to the Decarbonization of the Polenergia Group.

A detailed breakdown of greenhouse gas emissions is provided in the Consolidated Sustainability Report for the year ended 31 December 2024.

Polenergia completed its Scope 3 emissions source assessment at the end of 2024, using data for the full year 2023. Based on the assessment and calculations, a dedicated calculator was developed to enable annual Scope 3 carbon footprint calculations.

Documents

Polenergia treats its environmental and local community responsibilities as one of the pillars of its long-term development strategy, as well as one of the key components of its ESG strategy. This is demonstrated, among others, through the adoption of the Biodiversity Strategy and the establishment of environmental policies and procedures that shape corporate governance.

Polenergia published its Sustainability Report for 2024 in accordance with the CSRD Directive and the European Sustainability Reporting Standards (ESRS). Importantly, the company did so ahead of regulatory requirements, setting standards within the energy sector. The report includes, among other things, data on the company’s carbon footprint and decarbonisation strategy. The Group reported emissions in Scopes 1, 2, and 3, reflecting a comprehensive approach to carbon footprint management.

As part of its environmental responsibility management, Polenergia has implemented a number of formal procedures and environmental policies that regulate the operations of the entire Group. Key documents include:

Environmental and Social Policy, which defines principles for minimising the impact of operations on the environment and local communities;
Biodiversity Strategy, which prioritises biodiversity protection at all levels and across all investments of the Group, as well as the Minimum Environmental and Social Standards Procedure, aimed at specifying contractor and subcontractor compliance obligations for works carried out;
Environmental and Social Management System Review Procedure, which ensures regular compliance checks of projects with legal requirements and internal procedures and policies;
Code of Ethics and Code of Business Partners, which require contractors to adhere to sustainability principles.

Through these documents, Polenergia pursues its business objectives while maintaining the highest standards of due diligence in environmental protection and sustainable development at both operational and strategic levels.

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Important issue	Impact name	Is it positive or negative?	Is it potential or actual?	In what time frame does it occur/could it occur?	Which part of the value chain does it concern?	Impact description
Climate change adaptation	Impact on providing means for climate change adaptation	Positive	Actual	from short-term to long-term	Own operations, Downstream	Entities within the Polenergia group, as part of their business lines, provide clients and consumers with solutions that support adaptation to climate change. These include, among others, distributed energy installations, heat pumps, as well as the eMobility network of electric vehicle charging stations being developed by Polenergia.
Climate change mitigation	Impact on emission reduction by providing solutions enabling the energy transition	Positive	Actual	from short-term to long-term	Downstream	The Polenergia Group brings renewable energy to the market from its own wind and photovoltaic farms. Additionally, Polenergia Group’s subsidiaries — Polenergia Fotowoltaika and eMobility — provide customers with technologies that support zero-emission transport and distributed energy. In doing so, these activities, embedded in the business model, support the energy transition of individual customers as well as the decarbonization of the economy and business (from SMEs to energy-intensive businesses, and construction companies purchasing green energy from the Polenergia Group).
Energy	Impact on greenhouse gas emissions	Negative	Actual	medium-term	Own operations	Within the Polenergia Group, there is a company called Elektrociepłownia Nowa Sarzyna, whose operations are related to greenhouse gas emissions. It is responsible for a significant majority of Scope 1 emissions.
Energy	Impact on reducing emissions from the energy grid	Positive	Actual, potential	from short-term to long-term	Own operations, Downstream	By consistently pursuing the goals of increasing renewable capacity in the Polenergia Group’s portfolio, the Group contributes to improving the national energy mix.

An explanation of the time horizon periods can be found in the 2024 ESG Report on page 7.

Commitment to Climate Education

Polenergia Group actively engages in climate education projects and promotes pro-environmental attitudes. It collaborates with educational institutions ranging from kindergartens to universities. Through educational programs offering financial and substantive support, Polenergia contributes tangibly to the development of young people.

Polenergia also supports workforce development for the energy sector by participating in educational events, collaborating with foundations and student organizations, and engaging in scholarship and internship programs. In areas near its investments, the Group sponsors school classes specializing in renewable energy sources.

Since 2022, Polenergia has been running its proprietary educational program Play Green with Us!®, aimed at raising awareness among students about climate change and nature protection. In 2024, as part of this program, interactive educational materials were made available on Polenergia’s ESG website, specifically designed for primary schools. All teachers are encouraged to use these materials to help foster ecological awareness among younger generations: Interactive Educational Materials.

The previously mentioned publication, Journey to the Decarbonization of the Polenergia Group, was recognized in the report by the Climate&Strategies Foundation titled Decarbonisation is Already Here. This report highlights concrete actions taken by companies that consciously reduce their carbon footprint and implement decarbonisation strategies. Polenergia’s initiatives contributed to the creation of this report, as the Group – ahead of regulatory requirements – has been monitoring its Scope 1 and 2 carbon footprint since 2021 and Scope 3 since 2023.

We also invite you to visit the section: Environmental Impact – ESG Website.

Environmental Actions Taken in 2024

Taking initiatives for environmental protection is crucial for maintaining the balance of ecosystems and biodiversity. In 2024, the Polenergia Group continued its commitment to actions aimed at making a positive impact and minimizing the negative effects on nature.

Final of the 2nd Edition of the Sports Challenge POWER UP!

From April 6th 2024 until the end of June, employees of Polenergia competed and motivated each other in the sports challenge POWER UP! Their kilometers, steps, and even exercise time were converted by Polenergia into a donation of 30,000 PLN in support of the CukierAsy Association!

Biodiversity Protection Education – 3rd Edition of the Polenergia’s Educational Classes

The latest edition of classes on biodiversity protection was conducted as part of the project Play Green with Us!^® These educational activities were carried out in local primary schools in the municipalities of Grabowo, Rajgród, Kwilcz, and in a kindergarten in the municipality of Żuromin.

Final of the Second Edition of Play Green with Us!

The second edition of the educational project Play Green with Us! has come to an end. In the 2023/2024 school year, nearly 7,000 students from over 75 schools participated in the program. More than 2,600 lessons on ecology and climate protection were conducted.

Sowing seeds of honey plants at the PV Strzelino – implementation of Polenergia Biodiversity Strategy

Our large-scale photovoltaic farm projects are not only about increasing renewable energy capacity in the Polish power system.

Activities for the Kamionka Valley nature reserve

Polenergia Group, being a leader in the green energy transition, is actively involved in sustainable development. Our ambition is to continuously reduce the negative impact on the environment, primarily by reducing CO₂ emissions while increasing biodiversity, not only on our investment sites.

Activities for the Kołacznia nature reserve

For several years, Polenergia has been actively involved in campaigns dedicated to the environment. In 2020, we launched the Group Development Strategy, where the issue of climate change is indicated as the basis for the Group’s development.

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