Taxonomy disclosures of PZU Group

Commission Delegated Regulation (EU) 2026/73 of 4 July 2025 amending Delegated Regulation (EU) 2021/2178 as regards the simplification of the content and presentation of information to be disclosed concerning environmentally sustainable activities and Delegated Regulations (EU) 2021/2139 and (EU) 2023/2486 as regards simplification of certain technical screening criteria for determining whether economic activities cause no significant harm to environmental objectives introduced several amendments to the Disclosures Delegated Act. However, in accordance with Article 4 of this Regulation, companies may observe the provisions of the Disclosures Delegated Act, the Climate Delegated Act and Regulation (EU) 2023/2486 in the wording applicable on 31 December 2025 in the fiscal year beginning between 1 January and 31 December 2025.

PZU has decided to avail itself of this option and apply the Disclosures Delegated Act in the wording which was in effect on 31 December 2025 to this disclosure for the 2025 fiscal year.

Non-life insurance and reinsurance activities⁸ must meet technical screening criteria set forth in the Climate Delegated Act to be considered environmentally sustainable.

Technical screening criteria are used to determine the conditions under which an economic activity qualifies as contributing substantially to climate change adaptation, not causing significant harm to any of the other environmental objectives, and operating in accordance with the principle of minimum guarantees.

According to the requirements set forth in the Climate Delegated Act, Taxonomy disclosures for insurance undertakings should specify what proportion of overall activity in the scope of insurance other than life insurance is activity in the scope of insurance other than life insurance related to adaptation to climate change, run in accordance with the conditions specified in said Act.

The PZU Group has developed a methodology based on the Climate Delegated Act and reviewed all insurance products belonging to the non-life insurance product lines (Group II within the meaning of the Act on Insurance and Reinsurance Activity).

Based on the review, those product areas that provide insurance cover for the occurrence of climate-related risks listed in Appendix A to Annex II to the Climate Delegated Act were singled out. Subsequently, these products were analyzed for technical eligibility and qualification to insurance activities criteria. Products aligned with the EU Taxonomy were considered to be those that together meet all the required technical screening criteria.

As compliant with the EU Taxonomy, PZU considered products from the lines:

• insurance against fire and other property losses;
• assistance insurance;
• other motor insurance.

In TUW PZUW, Lietuvos Draudimas and BALTA, products in insurance against fire and other property losses were considered Taxonomy-aligned. In addition, Lietuvos Draudimas also offers Taxonomy-aligned products in other motor insurance.

In accordance with the requirements of the Climate Delegated Act, insurance companies employ state-ofthe-art climate risk modeling techniques.

In PZU, climate risks and extreme climate events are analyzed as part of the calculations covered by the standard formula (flooding, hurricane) as well as in ORSA (flooding, fire for the largest exposures in forest areas, including also crop fields). As part of the ORSA, PZU performs stress testing as well as sensitivity analyses involving stress scenarios based on four NGFS scenarios. As part of the mandatory ORSA projections, the impact of climate risks on the solvency situation of PZU in the short-term 3-year perspective is also considered (perspective consistent with business planning).

PZU has an advanced flooding model that was developed in collaboration with IMGW. This model utilizes hydraulic modeling, which allows for the propagation of flood waves across Poland. PZU applies this model to its insurance activities related to the Taxonomy products it offers, and the risk is estimated down to the building. The flooding model is used in business processes, in particular in underwriting for corporate customers, as well as in the tariff process for consumers for fire and other damage to property insurance.

Other companies also include climate risks as part of the scenarios in the ORSA process, analyzing both physical risks (e.g., floods, hurricanes, fires) and transition risks. For this, they use their own and group-wide stress scenarios, advanced catastrophe models (CAT), while Lietuvos Draudimas and TUW PZUW also use flood tools based on local hydrological and meteorological data. The modeling results are integrated with underwriting and pricing processes to determine appropriate sums insured, identify risk concentration, and prevent overexposure to vulnerable areas.

Fire and other damage to property insurance, protects businesses and consumers from climate risks. Pursuant to the terms of the agreement, both corporate and SME customers can receive a discount on condition that they install fire protection measures and SME customers and individual consumers can receive a discount on condition they install flood protection measures. For corporate insurance, an individual risk assessment is performed, which takes into account all factors including any adaptive and preventive actions. For SME customer and consumer insurance, discounts are included in the product tariff design. In listed types of insurance, customers receive a compendia or information during the sales and service process with advice on how to protect against climate risks and how they affect the price or scope of insurance. The compendia are also available on www.pzu.pl in product tabs and on the sustainability tab.

Assistance insurance also offers the option to purchase additional risk transfer insurances within the meaning of the EU Taxonomy. For example, customers enjoying PZU Dom can extend coverage to include home assistance, such as hotel stays in the event of a fortuitous event, including those related to climate risks.

For other motor insurances, PZU offers comprehensive Autocasco motor insurance for both individual and corporate customers, which additionally the client may extend to the assistance in the form of PZU Auto Help insurance.

Taxonomy products offered by other companies also include possible discounts to encourage policyholders to take action to support climate protection.

In line with the requirements of the Climate Delegated Act, with respect to products related to climate risks, PZU:

• analyzes clients’ interest in protection from climate risks and addresses them in product offerings;
• applies preferential pricing conditions to customers that encourage them to reduce or prevent the effects of climate risks, such as discounts for specific customer activities;
• informs customers of possible benefits that result from limiting or preventing climate risks;
• educates customers on the actions they can take to mitigate or prevent climate risk using guidelines on how to get insurance against climate risks.

Similar activities related to Taxonomy products are being undertaken by TUW PZUW, Lietuvos Draudimas and BALTA.

On the PZU website there is a declaration on the disclosure of data to public administration authorities, in accordance with the requirements of the EU Taxonomy.

Other companies also publicly declare that they will make the data publicly available to public administration authorities, as required by the EU Taxonomy.

In accordance with the requirements of the EU Taxonomy, PZU informs that it has a procedure in place for handling claims on a large scale. “Crisis claim management procedure” refers to the mass property claims caused as a result of, amongst others, flooding, hurricane, rain, hail, snow, lightning surges, bad winter effects, spring frost, drought and earthquake.

This procedure provides additional measures for largescale incidents to ensure high level of claim handling in terms of quality and timeliness. This procedure applies to all taxonomy products and complements high standards of claim handling.

The procedure is an internal document. The procedure describes many mechanisms used when losses with catastrophic characteristics occur. These processes are primarily focused on:

• effectively reach the customer, provide assistance and comprehensive services in the shortest possible time following the occurrence of the damage;
• shorten the claims handling time;
• adjust the claims handling process to client expectations;
• improve the quality of service and customer satisfaction.

The most common activities under this procedure are:

• the launch of mobile service points;
• simplification of the processes of claims reporting and handling;
• re-allocation of resources to areas affected by the disaster and to substantive claims handling processes.

Events with catastrophic characteristics occur seasonally, most often during the winter and summer seasons. This entails an increase in the amount of claim handled and the actions and improvements taken enable their quick handling. The simplifications used allow determining the amount of compensation without the need for a detailed cost estimate. The implementation of automation allows compensation to be paid within one business day from the date of the claim report. Established team of experts tracks meteorological reports and media publications about potential threats.

Other companies have the same solutions as PZU in the area of mass claims handling.

Technology increases business efficiency and customer satisfaction. PZU develops new ways of determining the extent of damage to speed up the determination of the amount of compensation. For property insurance, in addition to inspection by the Mobile Expert at the location indicated by the customer or in the repair workshop within the network, the amount of damages may be determined within:

• simplified service procedure (without conducting a vehicle inspection);
• self-service (calculation of the amount of the loss on your own).

In accordance with the requirements of the EU Taxonomy, the principle of “Do no significant harm” is taken into account in the calculation of premiums. Client activities related to “the mining, storage, transport or production of fossil fuels” and insurance for “vehicles, property or other assets intended for such purposes” have been identified based on the Polish Classification of Activities (PKD) and in few cases at the contract level. Insurance against such activities is excluded from the calculation of factors for Taxonomyaligned activities.

Both 2024 and 2025 data were prepared according to taxonomy requirements, based on the amount of insurance revenues and have been adjusted to the applicable law, including changes resulting from IFRS 17. In the PZU Group, all companies offering non-life insurance products value their contracts under IFRS 17 using the premium allocation approach (PAA) only. The calculation is made at the Unit of Account (UoA) level, being the intersection of the IFRS 17 portfolio level and the policy cohort level. Due to the level of aggregation at which IFRS 17 calculations are made, it is not possible to determine the exact Taxonomy class for insurance revenues as it would be for premiums. Accordingly, PZU decided to allocate insurance revenues to Taxonomy classes. In order to determine a measure that would be an appropriate key, the components of insurance revenues were analyzed. The allocation key is based primarily on earned premium (excluding active intragroup reinsurance and its retrocession, where the allocation key is based on information from assignors), which accounts for the largest share in revenue and is available in PZU Systems, broken down by policy and risk, allowing the taxonomy to be accurately determined. Taxonomy indicators for insurance are calculated in PZU only from products that meet all the requirements of the EU Taxonomy, taking into account the exemptions related to the “do no significant harm” criteria. Only that portion of the premium which covers climate risks was included in the calculation. This portion was estimated for each Taxonomy-aligned product based on the share of damages that result from climate risks in all damages over the past 10 years or less for newly introduced products. The remaining portion of revenues were shown in revenues not eligible for systematic treatment, as per Commission Notice C/2024/6691 dated 8 November 2024. To calculate the revenue in respect of Taxonomy-eligible insurance products, the PZU Group does not use an indicator based on the share of climate losses in premiums, but instead takes the entire value of revenues from a given line of business, as long as the product provides coverage for at least one climate risk. As regards the environmental factor of fire – with the inability to distinguish fire losses between those caused by spontaneous fires and that caused by other (nonclimate) causes, the Group considers all fire losses as climate losses.

PZU Group has guidelines on the interpretation of the EU Taxonomy for insurance, reinsurance, investment activities and the fulfillment of the principles of minimum safeguards, which is an internal document developed based on applicable regulations. On its basis, each PZU Group entity that offers products that qualify as insurance products (other than life insurance) and reinsurance services conducts an analysis for each of its products to meet the requirements of the EU Taxonomy. Data obtained are then aggregated using consolidation and accounting principles.

In order to fully capture the image of the PZU Group in accordance with the EU Taxonomy, the indicators were calculated in two views: unit for PZU and consolidated for the entire PZU Group, i.e. for all PZU Group subsidiaries that conduct business in the area of property and casualty (non-life) insurance: PZU, LINK4, TUW PZUW, Lietuvos Draudimas, Lietuvos Draudimas – Estonia branch, BALTA and PZU Ukraine. The 2025 disclosure calculations were made using the income in accordance with IFRS 17. The calculations take into account the principles of consolidation, in particular the exclusion between the Group entities.

Indicators are calculated based on the standards used in financial reporting, the International Financial Reporting Standards. Consolidated indicators refer to financial companies belonging to the PZU Group, where the scope of consolidation is, as assumed above, identical to that adopted in the consolidated financial statement, excluding Group banks where the assets were consolidated prudently.

Disclosures are prepared on a consolidated basis. The basis is consolidated assets from the consolidated financial statements of the PZU Group. Entities consolidated in full are treated as “transparent”.

The assets of Unit-linked insurance fund (“UFK”) are also invested in units and shares of investment funds. For the calculation of key performance indicators related to PZU Group’s investments, the so-called look-through approach was applied, meaning that entities within the portfolios of these investment funds were considered in proportion to the value of UFK investments in the investment fund. The break-through rule mentioned above did not apply to ETFs, of which the ETF was significant in PZU Group’s insurance portfolios in Lithuania and Latvia, including the UFK. In subsequent years, the PZU Group will make efforts to also include ETF funds under the so-called look-through approach.

In the case where PZU Group invests in investment funds (UCITS or AIF), the aforementioned look-through approach is applied. However, there is no plan to implement a solution in which PZU Group’s KPI calculations would use KPI indicators (GIR) based on turnover and investment expenditures of the asset management entity managing a given UCITS or AIF. This approach allows for the inclusion of indicators of compliance with the EU Taxonomy of the activities of companies to which the PZU Group has indirect exposure, through investment funds. An alternative approach, that is, the use of KPIs of entities managing a given investment fund, would not take into account the fact that the funds and portfolios managed by a given manager have a different strategy and therefore different exposure to activities consistent with the EU Taxonomy. Moreover, the investment fund manager (particularly Polish investment fund companies) often fails to report their GIRs.

After applying the look-through approach, the PZU Group had exposure to a large number of issuers in which the investment was made and for some issuers the share of instruments issued by the issuer in the PZU Group assets (using the look-through approach) was very low. It has been assumed that the impact of such issuer’s KPIs on the value of the PZU Group KPI is nonmaterial. As a result, it was decided not to consider KPIs for issuers with PZU Group’s investment value lower than PLN 25,000 (based on the look-through approach). Such a cut-off point was selected by an expert method, taking into account also the cost of obtaining market data. With this cut-off point taken into account, issuers whose indicators have been omitted account for a total of around PLN 25 million, which represents less than 0.15% of the assets of the PZU Group covered by the key performance indicator. For such exposures, their activities were assumed to be ineligible for the EU Taxonomy, so they are not in compliance with the EU Taxonomy either.

Disclosures of key performance indicators related to investments are based on the following data sources:

• internal data from accounting systems and financial reports;
• data on the entities in which an investment was made, obtained from external services, in particular Bloomberg which collects issuer reports;
• internal data on investment properties or data obtained from the managers of these properties.

Data from external sites, including Bloomberg, generally reflect the data published by enterprises, but it cannot be excluded that, at this stage of market development and system development, data from external sites may not fully reflect the data published by enterprises.

Disclosures of key performance indicators related to investments for the year 2025 are published along with the consolidated activity report of the PZU Group in the first quarter of 2026. At the same time, sustainability reports for 2025 are published for both non-financial and financial enterprises in which PZU Group has invested. For this reason, at the time of preparing this disclosure, data for 2025 were not yet available for the vast majority of investee companies. Therefore, the most recent available data for investee companies was used to calculate key performance indicators related to PZU Group’s investments, meaning that almost all data was available for 2024.

For investee companies that do not publish sustainability statements but are part of a capital group subject to sustainability reporting requirements and are included in the group’s report, the indicators for the group, as presented in the consolidated report, were adopted. However, in cases where it does not have a substantive justification (e.g., a completely different activity than the activities leading the group, the project in progress, etc.) it is permissible not to consider the indicator for the group.

In accordance with the Delegated Disclosure Act, financial companies may use estimates to assess the classification of exposure to companies, referred to in paragraphs 6, letters e) and f) [company with its registered office in a third country], if these financial undertakings are able to demonstrate compliance with all the criteria laid down in Article 3 of Regulation (EU) 2020/852, except for the criteria set out in Article 3 letter b) of this Regulation [does not cause serious damage to any of the environmental purposes set out in Article 9 in accordance with Article 17]. Financial companies formalize, document, and publicize the method on which such estimates are based, including the approach and method of research, the main assumptions, and the precautionary principles used. However, the PZU Group decided not to apply such estimates. Therefore, only the data provided by the companies in which the investment was made was used to compute the calculations. Bloomberg’s estimates were also not used.

The PZU Group has decided that it will not individually contact the entities in which it has made an investment in order to obtain the data before their official publication due to the costs related to the performance of this task, taking into account the scale of the PZU Group’s activities. The PZU Group has also decided that it will not make its own data estimates for other entities due to its prudent approach.

Given that the calculation of financial enterprises’ KPIs, including GIR, depends on the flow of information and data from financial and non-financial enterprises in which investments are made, it can be expected that the robustness and accuracy of these KPIs will gradually improve as more enterprises become subject to reporting obligations under the Corporate Sustainability Reporting Directive (CSRD), whose data, including data reported under the EU Taxonomy, will be subject to approval.

According to Annex IX of the Delegated Disclosure Act, investments should be understood as all direct and indirect investments, including investments in collective investment undertakings, equity holdings, loans and mortgage credits, tangible fixed assets, as well as, where applicable, intangible assets.

The following asset items from the financial statements were considered investments:

• tangible fixed assets (only owned real estate was included in this category);
• investment properties;
• equity-accounted investments;
• assets pledged as collateral for liabilities;
• assets held for sale (only investment properties and owned real estate were included in this category, while other types of assets were excluded);
• loan receivables from clients;
• investment (portfolio) financial assets, excluding cash and deposits;
• derivative financial instruments (according to Article 7(2) of the Delegated Disclosure Act, these are included in the denominator but excluded from the numerator).

It has been assumed that the following assets in the financial statements do not meet the definition of investment and are therefore not included in the reporting:

• goodwill;
• intangible assets;
• deferred tax assets;
• insurance contract assets;
• reinsurance contract assets;
• other assets;
• receivables;
• cash and cash equivalents.

According to Article 7(1) of the Delegated Disclosure Act, exposures to central governments, central banks, and supranational issuers are excluded from both the numerator and denominator when calculating key performance indicators (KPIs) for financial enterprises. Therefore, it was assumed that assets covered by the key performance indicator (KPI) (covered assets) include all investments made by the insurance entity (all managed assets) (total assets / total AuM), excluding investments in state-owned entities.

Exposures to central governments were also considered to include securities guaranteed or backed by the State Treasury, such as bonds issued by Bank Gospodarstwa Krajowego and the Polish Development Fund. However, exposures to regional authorities and local government units were not classified as central government exposures. Financial instruments issued by these entities, such as municipal bonds, were included in the denominator as covered assets under the KPI but were excluded from the numerator. This approach was not applied to exposures to regional authorities and local government units held in investment fund portfolios in which PZU Group has invested and where the lookthrough approach was applied. These exposures are excluded from the denominator, in the same way as exposures to central governments. PZU Group will make efforts in the coming years, in collaboration with data providers, to include these exposures under the look-through approach in the denominator as covered assets under the KPI.

Exposure to the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) was not considered as exposure to supranational issuers. Based on the EU Commission’s EU Taxonomy Navigator, the EIB and the EBRD are considered credit institutions rather than supranational issuers, and therefore their instruments are included in the assets covered by the key performance indicator.

According to Article 7(3) of the Delegated Disclosure Act, exposures to companies that are not subject to the obligation to publish non-financial information under Articles 19a or 29a of Directive 2013/34/EU are excluded from the numerator of key performance indicators (KPIs). As a result, green bonds issued by Small and Medium-sized Enterprises (SMEs), financing of renewable energy projects (e.g., wind farms), as well as loans granted to such entities, have been excluded from the KPI numerator.

In the denominator (in assets covered by the KPI), derivative instruments included in the assets of the Financial Statement were taken into account, without offsetting them against liabilities from derivative instruments (liabilities).

It was assumed that since Article 7(4) of the Delegated Disclosure Act refers exclusively to green bonds and green debt securities, the provisions of this article should not be broadly interpreted to include other forms of investments, such as loans granted for this purpose.

It was concluded that Article 7(4) of the Delegated Disclosure Act is not a special provision in relation to Article 7(3) of the same Act.

Article 7(4) was assumed to apply to the situation where an undertaking subject to non-financial reporting (under Article 7(3)) issues environmentally sustainable bonds. In this case, their revenues were taken into account up to the full amount, rather than as an overall indicator of compliance with the EU Taxonomy for the undertaking’s activities.

In the scope of Taxonomy-eligible activities (Taxonomy eligibility), instead of revenue (REVENUE) and capital expenditures (CAPEX), Green Asset Ratio (GAR) indicators were adopted in the form of GAR_REVENUE and GAR_CAPEX. For investments in insurance companies, instead of revenue (REVENUE) and capital expenditures (CAPEX), Green Investment Ratio (GIR) indicators were used in the form of GIR_REVENUE and GIR_CAPEX. In cases where a GIR indicator was not available for a given insurance company, the Green Underwriting Ratio (GUR) was adopted. It was recognized that GIR is the most appropriate indicator for insurance companies, given the large scale of their investments. However, in the unlikely absence of this indicator, the secondary KPI for the insurance company, GUR, would be considered.

Financial enterprises are defined in Article 1(8) of the Delegated Disclosure Act. Entities that provide other financial services but do not meet the criteria of this definition were classified as non-financial enterprises. The classification was based on Bloomberg data, considering detailed sub-sectors within the Financials sector.

Enterprises subject to Articles 19a and 29a of Directive 2013/34/EU, meaning those obligated to report nonfinancial sustainability information, were identified based on data from external sources. For Polish enterprises, the Instrat Foundation database was used. For enterprises from other countries, Bloomberg data was utilized, with the assumption that an enterprise is subject to non-financial reporting obligations if it employs more than 500 employees according to Bloomberg data. No additional verification was conducted in this regard.

As part of reporting the breakdown of the KPI numerator by environmental objective, transitional activities and enabling activities were reported without differentiation between climate objectives (climate change mitigation (CCM) and climate change adaptation (CCA)). The data was sourced from Bloomberg.

The data for Loans receivable from clients, prepared by the banks in the PZU Group, were included in the consolidated report. The data was prepared in accordance with the principles set out in Annexes V-VI of the Delegated Disclosure Act.

According to Annex IX of the Delegated Disclosure Act, additional disclosures distinguish the percentage share of investments related to life insurance contracts where the investment risk is borne by policyholders and the percentage share of other investments. Investments related to life insurance contracts where the investment risk is borne by policyholders include, among others, life insurance with an unit-linked insurance fund (Polish: UFK).

As indicated above, the look-through approach was applied, taking into account all investments held within investment fund portfolios, where participation units or shares are included in UFK portfolios.

As indicated above, real estate properties were analyzed for EU Taxonomy compliance based on their inclusion in the following balance sheet asset categories:

• tangible fixed assets;
• assets held for sale.

Given the list of real estate investments shows, the verification of Taxonomy alignment is based on Taxonomy verification provisions under Section 7.7 of the Climate Delegated Act in conjunction with Article 3 of the Taxonomy Regulation (exercise of property rights in real estate).

Verification whether the aforementioned technical screening criteria are met is based on the building’s energy performance certificates and/or primary energy demand (PED) and, with respect to the adaptation goal, on the verification of physical risks.

Furthermore, it was assumed that for real estate assessments, real estate-specific indicators would be used rather than turnover (REVENUE) or capital expenditures (CAPEX), which do not apply to real estate. Real estate has its own criteria and indicators for EU Taxonomy compliance. Investments are presented using the look-through approach, meaning that the relevant investments are real estate properties (buildings) owned by individual companies within PZU Group, including special purpose entities belonging to the PZU FIZAN Real Estate Sector 2 fund.

The EU Taxonomy compliance indicator calculated for a given real estate property is shown in both the revenue (REVENUE) and capital expenditure (CAPEX) categories.

Only buildings that have already obtained an occupancy permit or another decision with a similar effect were assessed, even if it applied only to a small part of the building. Similarly, warehouse parks were assessed using the same criteria. It was also conservatively assumed that if even one of the buildings in the warehouse park did not meet the requirements of Section 7.7 of the Climate Delegated Act, then the entire warehouse park was assessed as not EU Taxonomyaligned.

Banks (credit institutions) within the PZU Group disclose in their non-financial statements the Green Asset Ratio (GAR) calculated in accordance with Annexes V-VI to the Disclosure Delegated Act. These ratios have been published in the banks’ reports. As indicated above, according to the adopted consolidation method for the purposes of fulfilling obligations under the Disclosure Delegated Act, consolidated entities are treated as “transparent”. This also applies to Bank Pekao and Alior Bank. Therefore, the loans and investments of PZU Group banks are shown in the GIR. The data for calculations was provided by the banks in accordance with Annexes IX-X of the Delegated Disclosure Act, to effectively carry out the data consolidation process into a single GIR indicator. The data related to PZU Group banks, specifically the Loans receivable from clients, have been included as part of the GIR at the consolidated level.

PZU and PZU Życie invest in private equity funds based abroad. Most private equity funds are not subject to Articles 19a and 29a of Directive 2013/34/EU, meaning they are not obligated to non-financial reporting, including publishing data on the compliance of their activities with the EU Taxonomy.

For private equity funds, the look-through approach was not applied. This is justified by the fact that the entities in which these funds make investments are also, for the most part, not required to carry out non-financial reporting. A significant portion of both funds and portfolio companies are headquartered outside the EU.

Some funds report selected ESG data on a voluntary basis. However, due to the nature of this asset class, there is a great deal of variation among portfolio funds in reporting, data quality and the level of implementation of ESG policies. Some funds are compliant with Article 8 SFDR, which means that their investment policy takes ESG criteria into account in investment decisions, although they are not central to them. Most private equity funds have ESG policies in place, but there is wide variation in this area as well.

Nevertheless, the issue of ESG reporting and implementing best practices in ESG is becoming an important issue that the private equity market is gradually grappling with. Funds are compliant with Article 8 and 9 SFDR and taking ESG criteria into account in making investment decisions increasingly often. The scale of a fund’s operations directly impacts the pace of changes and the introduction of new ESG procedures. Currently, there are no clear guidelines that would allow an objective assessment which funds are better at fulfilling ESG reporting obligations.

Additionally, the private equity portfolio has a relatively small exposure within PZU’s investment asset structure. The PZU Group expects to improve data quality in the coming years.

The indicators for PZU Group in the scope of activities related to nuclear energy and natural gas are presented separately for revenue (REVENUE) and separately for capital expenditures (CAPEX).

Since the PZU Group is a financial conglomerate, KPIs for individual segments are disclosed:

• insurance segment – the KPI for this segment is the Green Investment Ratio (GIR), calculated in accordance with Annex IX of the Disclosures Delegated Act and presented in accordance with Table 2 of Annex X of the Disclosures Delegated Act;
• banking segment – the KPI for this segment is the Green Asset Ratio (GAR), calculated in accordance with Annex V of the Disclosures Delegated Act and presented in accordance with Table 2 of Annex VI of the Disclosures Delegated Act;
• asset management segment – the KPI for this segment is the Green Investment Ratio (GIR), calculated in accordance with Annex III of the Disclosures Delegated Act and presented in accordance with the table in Annex IV of the Disclosures Delegated Act.

To calculate weights, the following percentage of turnover (revenue) obtained from a given type of business (segment) in the consolidated total turnover (revenue – chapter 8.2.4) PZU Group: