Process of the preparation

[102-1] The Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna (the PKO Bank Polski S.A. Group or the Bank’s Group) and Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna (PKO Bank Polski S.A. or the Bank) have prepared a Statement on the non-financial information (the Statement), which forms a separate part of the Directors’ Report. The Bank and the Bank’s Group satisfy the criteria of an entity that is required to draw up the Statement. The individual issues have been presented in the Statement with regard to the Group, with the Bank highlighted. [102-52] The Bank’s Group publishes such statements annually. [102-50] The Statement presents the operations of the PKO Bank Polski S.A. Group in the period from 1 January to 31 December 2021. [102-51] The previous Statement was prepared for the year 2020 and published on 29 April 2021. At the end of 2021, the Bank’s Group comprised the parent entity, i.e. PKO Bank Polski S.A., 12 direct subsidiaries and indirect subsidiaries. [102-54] The Statement was prepared in accordance with the GRI Standards: Core option and in accordance with the non-financial reporting requirements defined in the Accounting Act. [102-10], [102-49] The Statement for 2021 does not contain any significant changes in reporting of the organization and its supply chains or other changes in the reporting methods.

The Statement on non-financial information for 2021 is not subject to an external audit.

The Statement does not contain any adjustments of information from the previous reports.

The preparation of the Statement by the Bank was preceded by an analysis of the materiality of the issues specified in the Accounting Act. In the first stage, the analysis of materiality conducted in the autumn of 2021 was based on a review of the stakeholder groups of the Bank’s Group, including the Bank, defined to date, and the areas of the interactions between the Group entities and the environment. In the second stage, the Bank analysed the scope of management of the areas encompassed by the Statement and reviewed the policies in place (the results are available at: https://www.pkobp.pl/investor-relations/esg-at-pko-bank-polski-group/policies-and-principles/).

The following tools were used in the study of materiality:

• in-depth interviews with representatives of the Bank’s Headquarters;
• analysis of contacts with ESG rating agencies and other stakeholders;
• stakeholders’ opinion surveys regarding the significance of the issues for the company’s image;
• enquiries addressed by the Bank to the subsidiaries;
• a review of the internal regulations of the Bank and provisions of the law.

The Bank studies the approach of its stakeholders to its charitable and sponsorship activities on a continuous basis. In 2021, the ratings of the companies engaged in sponsorship returned to pre-pandemic levels. Support for charity and social campaigns receives the highest ratings. The Bank is among the most recognizable sponsors in the market.

The study of materiality showed that the Bank and most of the subsidiaries have appropriate policies in all areas encompassed by the Statement, while the risks, which are considered to be key, have already been identified in the risk management process. The Statement contains descriptions of the risks identified in the Bank’s Group to which the principle of “comply or explain” was applied: an explanation was added to information on the lack of full coordination of selected policies at Group level.

The Bank’s Group, including the Bank, identify the following significant groups of stakeholders and material non-financial issues: