GOV-2 – Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies

In 2024, the Management Board of Enea S.A. submitted the following information and reports to the Committees:

• the Report on the risk management in the ENEA Group to the Audit Committee of the Supervisory Board of Enea S.A. (on a yearly basis);
• information on execution of material investment projects in the Enea Group, the degree of their progress and completion in relation to the plan (quarterly) as well information on implementation of the Enea Group development strategy (twice a year) to the Strategy and Investment Committee of the Supervisory Board of Enea S.A.;
• information on the financial and operational performance of the Enea Group for a given quarter, including, in addition to basic financial information, risk monitoring, strategy monitoring, employee issues and the social situation (quarterly) to the Supervisory Board of Enea S.A.

In the reporting period, the risk management system at the Enea Group was based on enterprise risks which we identified and monitored in accordance with the ENEA Group Enterprise Risk Management Policy and Methodology¹. The Risk Committee Members, the Enea S.A. Management Board, the Management Boards of the subsidiaries and the Audit Committee of the Enea S.A. Supervisory Board are regularly informed about the significant types of enterprise risk and their status. We also publish information about significant areas of enterprise risk in the Enea S.A. Management Board report (quarterly and annually). We intend to integrate the ERM methodology with the methodology for identifying and assessing impacts, risks and opportunities in 2025.

In the reporting period, the management of sustainability-related risk at the Enea Group was based on two main pillars:

• The Enterprise Risk Management (ERM) system described in the ERM Policy and Methodology. This process allows for the identification, monitoring and reporting of risks that are strategic risks for the Group’s business and specific segments. The identified risk areas also include ESG risks, in particular the transition risk resulting from the energy transition,
• methodological assumptions developed for the double materiality study, and the identification and assessment of physical and transition risks.

In companies subject to the ERM Policy and Methodology, all entities participate in the risk identification process, while the assessment and monitoring of risk areas only take place in entities where enterprise risk has been identified.

As part of the integration of ERM with the methodology for identifying and assessing impacts, risks and opportunities for the purpose of ESG reporting, which we have planned for 2025, we also intend to harmonize all principles concerning the identification, monitoring and reporting of both risk streams at the Group level.

In ERM, risk owners are responsible for assessing and monitoring enterprise risks, while risk managers are responsible for reporting. Detailed information on responsibilities with respect to ERM can be found in the ERM Policy and Methodology.

The Double Materiality Analysis was conducted for the very first time in 2024. Some of the identified impacts, risks and opportunities were taken into account in the update of the Enea Group Development Strategy in 2024, in particular with respect to issues related to transition of coal assets. In 2025, we intend to develop an ESG Strategy that will enable us to better manage the impacts, risks, and opportunities related to sustainability.

¹ The Policy applies to: Enea S.A., Enea Operator sp. z o.o., Enea Trading sp. z o.o, Enea Wytwarzanie sp. z o.o., Enea Centrum sp. z o.o., Lubelski Węgiel Bogdanka S.A., Enea Elektrownia Połaniec S.A., Enea Ciepło sp. z o.o., Enea Nowa Energia sp. z o.o., Enea Elkogaz sp. z o.o., Enea Power&Gas Trading sp. z o.o