INTEGRATED ESG
REPORT 2020

Natural capital

We define natural capital as natural resources which are used by the Group or on which the Group exerts an impact.

In­te­rac­tion be­twe­en the PGNiG Gro­up com­pa­nies and the envi­ron­ment is in­he­rent in the na­tu­re of the­ir bu­si­ness. Con­si­de­ring the con­tem­po­ra­ry chal­len­ges to envi­ron­mental pro­tec­tion, re­la­ted to the de­ple­tion of na­tu­ral re­so­ur­ces and po­ten­tial con­ta­mi­na­tion of in­di­vi­du­al envi­ron­mental com­po­nents, we are ta­king me­asu­res to mi­ni­mi­se the ad­ver­se envi­ron­mental im­pact. The PGNiG Gro­up re­co­gni­ses its im­pact on cli­ma­te chan­ge and sup­ports the fi­ght aga­inst air pol­lu­tion.

PGNiG al­so ta­kes steps to en­han­ce its ener­gy ef­fi­cien­cy, one exam­ple of the­se ef­forts be­ing the im­ple­men­ta­tion and ma­in­te­nan­ce of an ener­gy ma­na­ge­ment sys­tem.

Key metrics

6.8 m Mt eCO2

PGNiG Gro­up’s di­rect GHG emis­sions (sco­pe 1) in 2020 (7.18 mil­lion Mt eCO₂ in 2019, 7.15 mil­lion Mt eCO₂ in 2018)

1099.7 GWh

PGNiG Gro­up’s elec­tri­ci­ty
con­sump­tion in 2020
(1,122.1 GWh in 2019, 1,161.6 GWh in 2018)

154.8 mcm

PGNiG Gro­up’s wa­ter con­sump­tion in 2020 (144.6 mil­lion cu­bic me­tres in 2019, 160.6 mil­lion cu­bic me­tres in 2018)

156.0 mcm

to­tal vo­lu­mes of wa­ste­wa­ter ge­ne­ra­ted by the PGNiG Gro­up in 2020 (144.6 mil­lion cu­bic me­tres in 2019, 160.7 mil­lion cu­bic me­tres in 2018)

Outcomes:

-5.31 %

year-o­n-y­ear re­duc­tion
in di­rect GHG emis­sions (sco­pe 1)
in 2020 de­spi­te sta­ble growth of the Gro­up’s ope­ra­tions

-2 %

total electricity consumption
within the PGNiG Group
in 2020 compared to 2019

-3.63 %

year-o­n-y­ear re­duc­tion in the Gro­up’s to­tal wa­ter con­sump­tion in 2020

-2.92 %

year-o­n-y­ear re­duc­tion in the to­tal vo­lu­me of wa­ste­wa­ter ge­ne­ra­ted by the PGNiG Gro­up in 2020

Our ap­pro­ach to per­for­man­ce ma­na­ge­ment?

  • Implementation of measures to protect the environment and climate by supporting the process of converting coal into natural gas in heating, which will result in the reduction of harmful dust and greenhouse gas emissions on a national scale.
  • The environmental area at the PGNiG Group is regulated by two leading documents. The first one is the implemented QHSE Policy, which is an expression of responsibility for the conducted economic activity in the spirit of compliance with the global challenges of sustainable development. The second document is the PGNiG Group’s Sustainable Development Strategy for 2017-2022, the provisions of which emphasize the importance of the environmental area in the responsible operation of the Group.
  • Construction of photovoltaic installations – as a result of the inventory carried out at the PGNiG Group, it was estimated that its own properties meet the criteria for the construction of installations with a total capacity of approx. 20 MW. It is a multi-stage process that is to increase energy efficiency and provide clean solar energy for the company’s operations for own needs and for resale to the grid. Activities aimed at energy optimization and neutralization of the impact of the operation of office buildings on the natural environment are also carried out by the company, inter alia, based on the Energy Efficiency Improvement Program launched in August 2020 at the PGNiG Group.
    • Installation of a pilot photovoltaic installation on the roof of one of the PGNiG Headquarters buildings at ul. Kasprzaka 25 in Warsaw. This area is located in the preservation protection zone of the parameters of the historical urban layout, and many buildings are entered in the register of monuments. For the construction of the photovoltaic installation, the C7 office building was selected, which is not a historic building – its roof with an area of ​​approximately 1500 m² met the criteria for the project. The photovoltaic installation, with a power of nearly 50 kWp, was equipped with 124 solar panels. The installation will produce over 42 MWh of green energy annually, which will largely cover the electricity demand for this building.
    • Installation of a photovoltaic installation in Zielona Góra on facilities at ul. Naftowa 3. In the first phase, the investment will reduce the consumption of electricity purchased from outside by 10% and will reduce CO₂ emissions to the environment. Ultimately, the reduction of electricity consumption from the grid will amount to approximately 20%.
  • Wells to be closed are liquidated in accordance with the provisions of the Geological and Mining Law and relevant executive acts.
  • Wastewater generated by the PGNiG Group units is discharged into the sewage system, surface waters or into the ground based on the obtained water and legal permits.
  • Construction of the KG1 gas boiler room at the Żerań CHP plant, which replaced the operation of two coal-fired boilers, reducing air pollutant emissions (Termika).
  • Construction of a diffuser system for introducing brine into the waters of the Bay of Puck, which ensures proper mixing and dilution of the brine in the waters of the Bay, in accordance with the assumptions resulting from model and theoretical calculations (GSP).
  • Installation of hybrid (electric and acoustic field) installations for deterring fish on cooling water intakes in the Żerań CHP plant from the Vistula and the Żerań Canal in order to prevent fish from entering the pumping system of the intakes (Termika).

How do­es na­tu­ral ca­pi­tal af­fect other ty­pes of ca­pi­tal?

One of the key threads in the development of innovation in the Group are ecological technologies and products.

In 2020, PGNiG started work on projects to use hydrogen in the energy and automotive sectors. He is investigating the possibility of storing and transporting hydrogen through the gas network. Hydrogen – Clean Fuel for the Future is a new comprehensive hydrogen program by PGNiG, which consists of several projects – from the production of „green hydrogen”, through its storage and distribution, to its use in industrial energy. The program consists of several elements:

  • Hydra Tank Project – research station for refueling vehicles with hydrogen,
  • InGrid – Power to Gas project – production of hydrogen using renewable energy. Investigation of the possibility of hydrogen transmission with the use of natural gas distribution networks
  • New Fuel Lab – hydrogen purity analysis and research on alternative fuels,
  • Hydrogen storage – the use of underground gas storage facilities for hydrogen storage,
  • Power industry – the use of hydrogen in industrial power engineering.

Hu­man ca­pi­tal and na­tu­ral ca­pi­tal in­te­ract on se­ve­ral le­vels:

  • Through education and training, the Group minimises the risk of events which could have an adverse effect on the natural environment due to human error.
  • Through development and innovation projects, the Group develops and rolls out solutions designed to reduce the environmental footprint of its operations. A large number of such solutions are developed internally by Group companies.
  • From the perspective of extraction of natural resources, competent staff are key to efficient exploration for and production from new deposits, also outside of Poland.

As part of its production operations in Poland and abroad, the Company engages in social dialogue with local communities, experts and environmental organisations, as access to hydrocarbon deposits often depends on their acceptance. The PGNiG Group is firmly committed to building strong partnership-based relations with local communities, public authorities, suppliers and contractors in the pursuit of common goals.

PGNiG Gro­up is an in­du­strial and com­mo­di­ty hol­ding com­pa­ny. PGNi­G’s bu­si­ness com­pri­ses explo­ra­tion for and pro­duc­tion of na­tu­ral gas and cru­de oil. Th­ro­ugh its key com­pa­nies, PGNiG is al­so ac­ti­ve in the area of im­port, sto­ra­ge, sa­le and di­stri­bu­tion of gas and li­qu­id fu­els, as well as he­at and elec­tri­ci­ty ge­ne­ra­tion and di­stri­bu­tion. As a re­sult, all are­as of our bu­si­ness re­ly he­avi­ly on ac­cess to na­tu­ral ca­pi­tal which de­ter­mi­nes the Gro­up’s fi­nan­cial per­for­man­ce.

Explo­ra­tion and Pro­duc­tion is the Gro­up’s first and prin­ci­pal ope­ra­ting seg­ment from the per­spec­ti­ve of the PGNiG Gro­up stra­te­gy. To en­su­re unin­ter­rup­ted sup­ply of hy­dro­car­bons to its re­ta­il and bu­si­ness clients, the Gro­up in­ve­sts in:

  • Exploration for new deposits and acquisition of production licences,
  • Field development.

The Gro­up acqu­ires and sells com­mo­di­ties from its own so­ur­ces, but al­so pur­cha­ses com­mo­di­ties on the mar­ket:

  • Natural gas (including LNG) purchased from third parties,
  • Coal purchased as fuel for the Generation segment.

Na­tu­ral gas and cru­de oil pri­ces de­ter­mi­ne the per­for­man­ce of in­di­vi­du­al seg­ments to a lar­ge extent. To se­cu­re fa­vo­ura­ble gas pri­ces in in­ter­na­tio­nal trans­ac­tions, the Gro­up en­ters in­to shor­t-, mi­d- and lon­g-term con­tracts as a gu­aran­tee of unin­ter­rup­ted sup­ply of na­tu­ral gas at mar­ket pri­ces.

Envi­ron­men­tal co­sts are an in­he­rent part of the Gro­up’s ope­ra­tions. In an ef­fort to mi­ni­mi­se its envi­ron­men­tal fo­ot­print, in 2020 the Gro­up ear­mar­ked ca­pi­tal in­ve­st­ments for emis­sion al­lo­wan­ces of 4 576.8 tho­usand Mg CO2 (the amo­unt to be ad­di­tio­nal­ly pur­cha­sed by the PGNiG Gro­up as the al­lo­ca­ted emis­sion al­lo­wan­ce is 1,358.3 tho­usand Mg).

The Group also pays costs of certification, environmental software and mandatory environmental measurements

In­te­rac­tions be­twe­en na­tu­ral ca­pi­tal and ma­nu­fac­tu­ring ca­pi­tal may be ana­ly­sed on se­ve­ral le­vels.

  • In the Exploration and Production segment, the Group must have access to the necessary facilities and technologies to extract hydrocarbons from various deposits, including small-scale and unconventional deposits. In 2019, PGNiG continued work on the „Digital field” program – a tool that enables PGNiG to use oil and gas resources even more effectively. In 2020, the implementation of the hydrogen competence development program was launched at the PGNiG Group.
  • The Generation segment relies largely on coal assets. The Group is currently upgrading its existing generation capacities to bring them in line with the requirements of BAT. New investments will rely primarily on gas – a fuel which has significantly smaller environmental impacts.

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