4.3 Management of ESG issues

An Environmental Management Team has been established to manage the environmental area; it includes employees from the following organizational units: Sustainability Department, Administration Department, Internal Audit Department, Risk Department, Corporate Insurance Department, Retail Insurance and Partner Programs Department, Human Resources Selection and Development Department, Management Board Office, IT Department, Marketing and PR Department and Hestia Corporate Solutions. The purpose of the team is to oversee the compliance of environmental activities with the Company’s objectives, regulations and strategy.

In 2022, the governance body and senior managers received quarterly CO₂ reports on the impact the ERGO Hestia Group has on the environment. Regular management meetings are held, during which representatives of individual departments present the status of the projects they coordinate. It is also a place for executives to share their experiences in order to plan further activities more effectively.

The principles embodied in our policies and internal documents, on the one hand, regulate our work, and on the other hand, form the basis for building relationships with key stakeholders, which we further strengthen through training for business partners and by taking an active part in various thematic conferences.

Mateusz Arbatowski. Photographer

[GRI 2-17]

Developing competence and knowledge in the ERGO Hestia Group is a constant part of our daily activities and applies to employees at all levels of management. Due to the responsibility of Management Board members for effective implementation of strategies, including the Sustainable Development Strategy, they are required to set climate targets. To continuously improve their competence, they participate in meetings and programs within the ERGO Group – Sustainability and Climate Change (Sustainability Reporting, Taxonomy, Sustainability Products & Solutions, etc.) and internal climate programs. An important area of activity for Management Board members is participation in meetings, conferences and debates on climate issues.

Another area of responsibility is managing the flow of sustainability information. Management Board members periodically receive information and reports on the organization’s environmental impact (including CO₂ emissions from its own business, environmental declaration in accordance with EMAS requirements, and Carbon Intensity from its investment portfolio). They also manage the CO₂ reduction action plan. In addition, the independent member of the Supervisory Boards, Janusz Reiter is a member of the Board of Chapter Zero Poland.

The ESG area Managing Director, together with the Company’s lawyers, are members of the Steering Committee of the Business and Human Rights Program of the UN Global Compact Network Poland. The Sustainability Director participates in the Climate Positive Program of the UN Global Compact Network Poland. As part of the activities undertaken in cooperation with the Responsible Business Forum, he appeared as a speaker at the 9th CSR Fair and during the celebration of the 10th anniversary of the Diversity Charter.

[GRI 2-18]

In order to evaluate the performance of the highest governance body in overseeing the management of the organization’s impacts on the economy, environment and people, an impact report is prepared (Chapter 5. Identified Impact Areas), based on internal analyses (such as the Solvency and Financial Condition Report or the Financial Statements) and the results of dialogue sessions conducted with stakeholders as part of GRI standard reporting. Market trends and the social and economic situation are also taken into account. The reports are produced as part of the work of the Sustainability Department, and they are prepared in cooperation with a consulting firm based on the information presented to it.

The impact report is generated after the end of the calendar year and is issued in the company starting in 2020. The document is submitted to the Management Board along with the Sustainability Report, and its various preparation stages are presented to the Management Board member responsible for the ESG area.

The Company’s Management Board and Supervisory Board have the possibility to review the assumptions of the ESG strategy depending on the stage of its implementation and receive regular reports by the owner of the ESG area. In the event of identified problems or failure to attain the set goals, the Company’s governance bodies are informed and corrective steps are taken. The Sustainability Director oversees the continued implementation of the provisions of the ESG Strategy in cooperation with other operating units of the ERGO Hestia Group.

Mateusz Arbatowski. Photographer