ESRS S3 Affected communities
Interests and views of stakeholders
The views, interests and rights of local communities affect the strategy and business model of some Enea Group companies. This applies to companies managing the district heating network (Enea Ciepło, MEC Piła, PEC Oborniki, Enea Elektrownia Połaniec), the development of which is being ensured in consultation with local communities.
Material impacts, risks and opportunities and their interaction with strategy and business model
In the Double Materiality Analysis, relationships with affected communities residing or working near the Enea Group’s operating sites were identified as material. The Enea Group’s business model results in a positive and tangible impact exerted on local communities by the Group’s generation and distribution activities. Stable electricity and heat supply is essential for the lives of local communities. However, this impact does not shape the Strategy. The socially responsible transition of regions, as indicated in the Development Strategy, may exert a positive impact on local communities that are largely dependent on the Group’s coal assets. No significant risks or opportunities related to the affected communities have been identified. The analysis also considered the negative impacts of Group companies on local communities living in the immediate vicinity, which might be exposed, for instance, to dusting; however, such events are incidental and as such are not considered material from the Group’s perspective.
Material topic: Local communities
The Enea Group did not adopt a policy aimed at managing significant impacts, risks or opportunities related to affected communities, because the Group had not identified the need to adopt such a policy. The document governing relations with communities at the Group level is the Compliance Policy of the Enea Group which, in the part dealing with support for local communities, requires all Group companies to “not only contribute to economic progress, but also act as a good and valued partner.” Commitments laid down in the Compliance Policy:
- conducting social dialogue with various stakeholder groups,
- regular, reliable and open communication about socially responsible activities, including the regular reporting of non-financial information,
- supporting local sports and cultural initiatives,
- developing education and counteracting social and economic exclusion by supporting local and employee initiatives in this area,
- helping the needy and the sick by actively participating in charitable initiatives.
LW Bogdanka S.A. has a “Social engagement policy” in place.
For 2025, work has been scheduled to develop a “Social responsibility policy” and a “Stakeholder engagement policy of the Enea Group.”
The Enea Group did not record any cases of non-compliance with the UN Guidelines on Business and Human Rights, the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work, or the OECD Guidelines for Multinational Enterprises pertaining to any affected communities.
The measures taken by Enea Group companies in 2024 to increase their positive impact on affected communities included:
- adopting the Enea Group Development Strategy and defining the socially responsible transition of regions as one of the Group’s strategic objectives. The Group is aware that its companies are among the largest employers in some of its locations and that a pause in the recruitment of new employees in these locations might trigger serious difficulties in local labor markets;
- preparing a plan to achieve climate neutrality by Miejska Energetyka Cieplna Piła by 2050 and to create an efficient heating system by 2030. The Group supplies network heat and hot water to the residents of Piła, thereby improving their quality of life – this impact is direct, tangible and positive;
- modernization works, consisting of replacing old heating networks with new pre-insulated networks in Białystok, where the Enea Group also provides residents with district heating and domestic hot water.
In 2024, Enea Group companies did not record any serious human rights issues or incidents related to affected communities.
The operating expenses (OpEx) and capital expenditures (CapEx) incurred in the reporting period for activities related to the preparation of a plan to achieve climate neutrality at MEC Piła and the replacement of old district heating networks in Białystok, as well as those intended to be incurred in the coming years, are presented below. Own funds were used to finance these measures. In the following years, the same manner of financing these measures will be applied.
Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
In 2024, the Enea Group did not adopt any objectives in terms of tracking the effectiveness of policies and activities and managing significant impacts, risks and opportunities related to affected communities.
In 2025, the Enea Group will develop an ESG Strategy that will include objectives in the area of cooperation with affected communities.
Processes for engaging with affected communities about impacts
The Enea Group did not introduce uniform processes for cooperation with affected communities or mechanisms for taking their opinions into account when making decisions or taking actions related to the management of actual or potential impacts. Group companies carry out ongoing activities in this area, which they adapt to the needs, circumstances and projects underway. For instance, in 2024, Enea Elektrownia Połaniec:
- held a meeting with representatives of Połaniec’s local authorities on upgrading the local heating network,
- held a meeting with representatives of Połaniec’s local authorities on strategic development plans for Połaniec municipality,
- conducted workshops at the School Complex in Połaniec under the catchphrase: modern solutions, environmentalism, cooperation,
- held meetings with the Society for the Earth, the Wody Polskie Regional Water Authority, the Institute of Inland Fisheries and the Fishing Club in Połaniec within the framework of cooperation on certain pre-defined environmental projects,
- conducted educational “Environmentally responsible” workshops in cooperation with the Wody Polskie Regional Water Authority, the Tarnobrzeg Branch of the Polish Angling Association, the Angling Club in Połaniec, primary schools and municipal institutions.
In Enea Group companies, management boards and directors are responsible for cooperation with affected communities. Communication with affected communities takes place directly and through websites, mailboxes, traditional mail and telephone. Members of affected communities may also use the mechanisms provided for in the procedures of respective Enea Group companies for reporting and handling their complaints, concerns and needs.
The communication channels in place enable information to be provided anonymously or non-anonymously, including via application forms on the parent company’s website or in hard-copy form to Enea S.A.’s Compliance Committee. Enea S.A. regulates issues related to this process in the “Procedure for Reporting Breaches and Protecting Whistleblowers at Enea S.A.”
The Enea Group did not implement any formal processes to evaluate the effectiveness of its engagement with affected communities.
The Enea Group did not implement a general process for engaging with affected communities. Such a process will be regulated by the end of 2025 in the policies to be adopted by the Group, specifically the “Social responsibility policy” and the “Stakeholder engagement policy.”
Processes to remediate negative impacts and channels for affected communities to raise concerns
The Double Materiality Analysis has not identified any significant negative impacts on affected communities. Enea Group companies allow affected communities to report violations and, after they are reviewed, they introduce mitigating measures Examples of such activities include waste gelation by Enea Elektrownia Połaniec at the Pióry landfill, carried out as a result of the complaint received. Dust emissions were caused by strong and gusty winds, but the mitigation measures applied helped reduce it.