On the report

PSE set reporting standards in Poland and in the industry.

The report for the year 2017 is the first to collect the data on the company’s impact on its environment.

The report was prepared in line with the IIRC Guidelines and GRI Standards.

Fig. 1. Inter-branch flow model visualisation Source: own study Deloitte.

GRI 102-50  GRI 102-51  GRI 102-52 The report presented covers data from 1 January 2017 to 31 December 2017 and selected 2018 data showing the current picture of Polskie Sieci Elektroenergetyczne. We published the last report at the end of 2017. We committed ourselves to publish subsequent reports every year as the integrated reports supplemented by impact indicators.

Fig. 2. PSE reporting process

GRI 102-43 Preparation of the report is one of the stages of the social dialogue that PSE periodically conducts with its stakeholders based on the AA 10000 SES standard.

Identification

• workshops with employees,
• review of industry reports,
• analysis of internal documents.

GRI 102-42 The analysis also identified our stakeholder groups.

Prioritisation

A survey conducted among external stakeholders, mainly among participants of the third dialogue session.
Our stakeholders include primarily:

Fig. 3. PSE stakeholders

The basis for the identification of stakeholders was the conducted analysis of PSE’s strategic documents and internal consultations with the OU.

The survey was conducted among nearly 50 stakeholders where nearly 60% of participants were the representatives of the entities who took part in the dialogue session conducted last year in accordance with the AA1000SES standard.

The survey allowed to identify the most important business issues and topics relating to sustainable development to be discussed in the report, as well as the areas of impact.

In parallel, workshops on PSE impact measurement were organised for the representatives of organisational units (departments, offices) with the aim to define the key areas of PSE impact, together with assigning the indicators to these areas.

Validation

Organisation of an internal validation workshop with the participation of the executives and managers in order to confirm the report concept and issues to be reported.

In the framework of the meeting, the materiality matrix including the key topics to be reported and the report content structure was accepted. 

Fig. 4. Approach to the report structure

Fig. 5. Materiality Matrix

Detailed issues presented in the report are based on the updated Strategy of Polskie Sieci Elektroenergetyczne, adopted by the Management Board, endorsed by the Supervisory Board and approved by the General Meeting of Shareholders. The management approach was presented in accordance with the procedures described in corporate governance regulations and standards in force at PSE. All published information presented in the report has been verified for compliance with internal documents of the company, and supervision of activities in the different areas is exercised by management staff. Strategic decisions are taken at the Management Board level.

Introduction and objectives of work

Bureau Veritas Polska Sp. z o.o. (Bureau Veritas) has been engaged by Polskie Sieci Elektroenergetyczne S.A. (PSE) to provide limited assurance of information and data prepared in accordance with GRI Sustainability Reporting Standards (GRI Standards), Core option, included in its “PSE Impact Report 2017” (the Report). This Assurance Statement applies to the related data and information included within the scope of work described below. 

Scope of work

The scope of our work was limited to assurance of information included in the Report for the period 1 January 2017 to 31 December 2017 over Universal Standards and Topic-specific Standards which are the GRI Sustainability Reporting Standards, Core option (Selected Information).

Excluded from the scope of our work is any assurance of other information included in the Report.

Reporting Criteria

The Selected Information needs to be read and understood together with the GRI Sustainability Reporting Standards 2016 as set out at https://www.globalreporting.org

Limitations and Exclusions

Excluded from the scope of our work is any verification of information relating to:

• Activities outside the defined verification period;
• Positional statements (expressions of opinion, belief, aim or future intention by PSE and statements of future commitment)
• Information included in the section “Our contribution to the employment and economic development of Poland”.

This limited assurance engagement relies on a risk based selected sample of sustainability data and the associated limitations that this entails. The reliability of the reported data is dependent on the accuracy of metering and other production measurement arrangements employed at site level, not
addressed as part of this assurance. This independent statement should not be relied upon to detect all errors, omissions or misstatements that may exist.

Responsibilities

This preparation and presentation of the Selected Information in the Report are the sole responsibility of the management of PSE.

Bureau Veritas was not involved in the drafting of the Report or the Reporting Criteria. Our responsibilities were to:

• obtain limited assurance about whether the Selected Information has been prepared in accordance with the Reporting Criteria;
• form an independent conclusion based on the assurance procedures performed and evidence obtained; and
• report our conclusions to the Directors of PSE.

Assessment Standard

We performed our work in accordance with International Standard on Assurance Engagements (ISAE) 3000 Revised, Assurance Engagements Other than Audits or Reviews of Historical Financial Information (effective for assurance reports dated on or after December 15, 2015), issued by the International Auditing and Assurance Standards Board.

Summary of work performed

As part of our independent verification, our work included:

1. Assessing the appropriateness of the Reporting Criteria for the Selected Information;
2. Conducting interviews with relevant personnel of PSE;
3. Reviewing the data collection and consolidation processes used to compile Selected Information, including assessing assumptions made, and the data scope and reportingboundaries;
4. Reviewing documentary evidence provided by PSE; 
5. Agreeing a selection of the Selected Information to the corresponding source documentation;
6. Reviewing PSE’s systems for quantitative data aggregation and analysis;
7. Assessing the disclosure and presentation of the Selected Information to ensure consistency with assured information.

Conclusion
On the basis of our methodology and the activities described above:

• Nothing has come to our attention to indicate that the Selected Information is not fairly stated in all material respects. 

Evaluation against GRI Standards
Based on our work, it is our opinion that “PSE Impact Report 2017” has been prepared in accordance with standards for sustainability reporting the GRI Standards, Core option.

Statement of Independence, Integrity and Competence
Bureau Veritas is an independent professional services company that specialises in quality, environmental, health, safety and social accountability with over 185 years history. Its assurance team has extensive experience in conducting verification over environmental, social, ethical and health and safety information, systems and processes. Bureau Veritas operates a certified1 Quality Management System which complies with the requirements of ISO 9001:2008, and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. 

Bureau Veritas has implemented and applies a Code of Ethics, which meets the requirements of the International Federation of Inspections Agencies (IFIA)2, across the business to ensure that its employees maintain integrity, objectivity, professional competence and due care, confidentiality, professional behaviour and high ethical standards in their day-to-day business activities.

BUREAU VERITAS POLSKA Sp. z o.o. Warszawa, February 2019