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G1-2
Description of approach to supplier relations
The PZU Group attaches great importance to responsible management of supplier relationships. In its procurement and logistics activities, it is guided by the principles of fair dealing with suppliers, ensuring transparency of processes and equal treatment of all business partners. In order to minimize risks in the supply chain, procedures are being implemented at some entities to assess suppliers for reliability, environmental and social compliance. PZU regularly audits suppliers to assess their practices and ensure compliance with the PZU Group standards. The scope of the audit covers topics related to business practices as well as environmental and social aspects of the business. In addition, the PZU Group promotes the selection of local suppliers, which not only supports the local economy, but also reduces the carbon footprint associated with transportation. In this regard, recommendations have been made for the PZU Group entities to consider offers from domestic partners first, thereby supporting the development of local businesses.
Policies adopted to manage supplier relationships
Consideration of social and environmental criteria of suppliers
Implementing standards, ethics and practices that support sustainability in procurement processes translates into building awareness and can translate into an increase in the importance of ESG aspects. Accepting the “Code of Conduct and ESG Best Practices of the Suppliers of the PZU Group” and promoting its values is one of the criteria for qualifying potential suppliers in PZU. Any supplier wishing to cooperate with PZU shall familiarize itself with and accept the “Code of Conduct and ESG Best Practices of the Suppliers of the PZU Group” at the stage of qualification, by submitting the Supplier Registration Form to be entered into the List of Qualified Suppliers. In contrast, other PZU Group entities have a recommendation that suppliers familiarize themselves with the Code, with different solutions in practice, e.g. Lietuvos Draudimas AB requires suppliers to confirm that they comply with the Code and applies an ESG assessment of suppliers, whereas BALTA requires suppliers to sign the Code as part of the contract.
The process of selecting contract partners in the PZU Group is mainly based on quality, price, technical criteria and compliance with formal and legal requirements. The PZU Group monitors changing regulations and good market practices in the area of sustainability, including the integration of ESG aspects in procurement processes, and does not rule out their implementation in the future.
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G1-6
Prevention of payment delays
The PZU Group does not have a policy in place aimed at preventing payment delays, and its entities follow their own rules for making payments in accordance with contractually agreed deadlines. Contract terms depend on the entity, the supplier and specific conditions, making it impossible to establish a single standard payment procedure or determine the percentage of payments made according to such a procedure. In general, PZU Group entities apply payment deadlines of up to 30 days for a properly issued invoice.
The PZU Group defines the average invoice settlement time from the date of calculating the payment deadline as the average overdue period of paid invoices by PZU Group entities. The average overdue time is calculated by adding up the number of days all invoices are overdue and then dividing it by the total number of paid invoices. The average time an invoice was overdue in 2025 was 2.2 days (1.7 days in 2024).
Pending legal proceedings related to payment delays
As of 31 December 2025, in relation to their own operations, PZU Group entities were involved in 22 pending court proceedings concerning payment delays (as of 31 December 2024, 34 proceedings).
- proceedings are conducted before civil courts (common courts and the Supreme Court, Civil Chamber);
- PZU Group entities are the defendants in the cases;
- the claims concern interest for delayed payments calculated on the principal amount paid late, or unpaid principal with accrued interest for the delay;
- the proceedings do not include claims from current or former employees, such as overtime pay or compensation for workplace harassment (mobbing).
Legal proceedings in which no final judgment has been issued in the second instance, as well as cases pending before the Supreme Court after the cassation appeal has been served to PZU Group entities, are considered unresolved.
