Environment

Our strategy

Our climate change objectives and actions are guided by the ‘Total Responsibility’ strategic pillar.

What we do

We aim to be a role model for sustainable development and transformation.
We help customers navigate the green transition and advise them on how to achieve it.
We build a business network, which means we find trusted partners and help them arrange financing.

How we do it

We reduce our own emissions, for example by improving energy efficiency.
We factor environmental risks into our business model.
We develop products supporting the transition and offer advisory services across all sectors.
We identify and leverage synergies within supply chains.
We provide solutions for agribusiness.
We support the energy transition of buildings
We develop transition plans that include targets for climate change adaptation and mitigation
We prevent the risk of greenwashing

Our policies

Policy	Description of content / policy area
Responsible Banking and Sustainability Policy	The policy sets out the principles, guidelines, key processes and management approaches of the Group with regard to environmental topics such as: managing our own impact on the environment, managing the environmental impact of our customers’ activities, and identifying impacts, risks and opportunities in this area.
Environmental and Social Risk Management Policy	The policy sets out the Group’s approach to analysing the financed clients (criteria for identifying, assessing, monitoring and managing social and environmental risks) as well as the investment exclusion criteria applied and standards for cooperation with clients operating in sectors with the greatest impact on the climate. The application of the document’s principles is intended to support clients in the transition to a low-carbon economy.
Guidelines on the management and control of greenwashing risk	The guidelines set out the tools, responsibilities and processes for managing this risk in order to avoid the incorrect definition, management and disclosure of data, and thereby avoid misleading stakeholders regarding our strategy, products and sustainability practices.
Sustainable Finance and Investment Classification System (SFICS)	Internal methodology for classifying sustainable financial products, investments and services, in particular the method for defining green, social and sustainable financing. The document incorporates some of the technical criteria of the EU Taxonomy (in relation to the criteria for a significant contribution to the environmental objectives of the EU Taxonomy), but is not identical to the EU Taxonomy. In particular, it does not provide for full verification of the 'do no significant harm’ (DNSH) and minimum social safeguards (MSS) criteria. The classification system distinguishes between two main types of financing: transactions with a dedicated purpose (use of proceeds), sustainability-linked transactions. The taxonomy is based on internationally recognised industry guidelines and principles, such as: the ICMA Social and Green Bond Principles, the Climate Bond Standards, and the aforementioned EU Taxonomy.

Transition Plan

In December 2025, we adopted a Transition Plan to mitigate climate change, which covers the loan portfolio sectors listed below. We have identified these sectors as priorities for our transition plan due to:

their financial significance to our portfolio,
their vulnerability to climate risks,
the availability of decarbonisation reference pathways.

For each of the selected sectors, we analyse emissions intensity against global sectoral reference pathways. This enables us to monitor progress in decarbonising the portfolio and identify potential risks associated with the portfolio’s non-alignment with the Paris Agreement targets.

Total balance sheet exposure: PLN 2.6 billion.

Our greenhouse gas emissivity analyses cover the largest companies and projects which account for over 93% of the bank’s total portfolio of electricity-generating clients.

We compare the results of our analyses to the reference decarbonisation pathway published for the electricity generation sector by the International Energy Agency (IEA) as part of the Net Zero 2050 scenario.

A significant reduction in the portfolio’s carbon intensity was recorded, from 0.70 tonnes CO2e/MWh in 2023 to 0.37 tonnes CO2e/MWh in June 2025, representing a 44% relative reduction in carbon intensity.

For the same period, the IEA’s reference pathway assumed a relative reduction in emissions of 17%. At the same time, the level of GHG emissions intensity in the bank’s portfolio as at June 2025 remains above the global pathway projected for 2025.

The decline in emissions since 2023 is mainly due to an increase in the volume of renewable energy projects. As part of its business strategy, the bank is gradually building transaction portfolios in line with the concept of a low-carbon and climate-resilient economy.

At the same time, when analysing the viability of financing sustainable and transitional energy projects, the bank takes into account not only their alignment with national energy transition plans, but also the credit risk management principles applied to business entities or project financing as set out in the relevant internal regulations. This is particularly important in the context of regulatory uncertainty and delays in the transformation of the national energy system.

Total balance sheet exposure: PLN 8.4 billion.

The scope of the greenhouse gas emissions intensity analysis covers dedicated financing for commercial property projects.

We compare our analyses to the reference decarbonisation pathway published by CRREM (Carbon Risk Real Estate Monitor).

The analyses indicate that the average greenhouse gas emissions intensity of the bank’s commercial property portfolio is below the CRREM reference pathway for Poland, which aims to limit global warming to 2°C by 2050, and is steadily declining . This confirms the effectiveness of the strategy adopted by the bank in recent years, which focuses on prioritising the financing of energy-efficient buildings.

Since 2023, a decrease in emissions intensity has been recorded, from 137 kg CO2e/m² to 113 kg CO2e/m² as of December 2025, i.e. by 18%.

Continuing the bank’s existing strategy in the commercial property segment, including the use of decarbonisation leverage by increasing the share of energy-efficient buildings in the portfolio, will contribute to increasing credit exposure with a reduced level of financed emissions.

Balance sheet exposure: over PLN 58 billion.

The retail property sector accounts for approximately 26% of the bank’s loan portfolio as at the end of December 2025. For the purpose of comparing the average greenhouse gas emissions intensity determined by us with a scientific climate scenario, we use the reference decarbonisation pathways published by CRREM (Carbon Risk Real Estate Monitor) for residential properties in Poland.

The average portfolio greenhouse gas emission intensity (in kg CO2e/m²) was calculated based on information from building energy performance certificates (primary energy demand) or based on the property’s floor area, using PCAF emission factors.

Analyses indicate that the average emissions intensity of the bank’s retail property portfolio in 2023 was approximately 62 kg CO2e/m² – a result below the reference pathway.

By the end of 2025, this emissions intensity remains at a relatively stable level, which means it exceeds the 1.5°C reference pathway. Consequently, the bank has adopted an action plan aimed at reducing the emissions intensity of its portfolio. These measures focus on strengthening sustainable financing for retail property, both in terms of new sales and piloting initiatives to improve the energy efficiency of the existing portfolio. It should be noted, however, that it is legal regulations, which are beyond the bank’s control, that constitute the main lever for decarbonisation, creating the framework for improving energy efficiency, and their effectiveness in Poland is already, and will continue to be, dependent on:

the lack of strong economic incentives (e.g. the impact of the statutory mechanism for protecting household electricity prices, which simultaneously supports the just transition mechanism),
the pace of implementation of EU directives,
the level of detail in linking support programmes to the energy efficiency and carbon footprint of buildings.

Our objectives

Electricity purchased from renewable sources

The target is for electricity from renewable sources (RES) to account for 100% of the bank’s total electricity consumption. This target supports the ambition to reduce emissions under Scopes 1 and 2 (own operations, on a market-based basis). The target is measured as the percentage of electricity sourced from renewable energy sources. The starting point was an 87% share of electricity from RES in the bank’s total consumption in 2023. The target was to achieve 100% electricity from RES in 2024 and maintain this level in subsequent years, currently with a view to 2027.

100%

Result 2024–2025

100%

Plan for 2024–2027

Volume of financing in line with the internal sustainable finance and investment classification system

The target relates to the volume of new financing granted by the Group in accordance with the criteria of the internal classification system. It covers dedicated financing linked to sustainable development and supports the reallocation of capital to environmentally sustainable projects and activities.

Additionally, as part of the development of the Transition Plan, the bank is conducting analyses and calculations regarding emissions and decarbonisation levers, and on this basis will make strategic decisions, including those regarding the setting of targets. This is because the Transition Plan has been defined for the first time, and we are adopting a cautious approach to the issue of settig quantitative targets.

Nevertheless, even in this first issue of the Plan, we are assessing progress in relation to actions addressing material risks by examining the change in the portfolio’s emissions relative to the baseline year, which for our current calculations is 2023. On this basis, we determine whether additional risk mitigation measures are needed, or whether the current strategy is sufficient.

PLN18,825m

Result 2024–2025

PLN31,046m

Plan for 2024–2027

Actions

We promote environmental protection based on international regulatory standards and a system of continuous improvement – the bank and its leasing subsidiary have been awarded ISO 14001 certification, confirming that the environmental management system for the bank’s head office buildings meets the requirements of the standard.
We are taking steps to mitigate the Group’s negative impact on the climate. We identify sources of greenhouse gas emissions, improve energy efficiency, and 100% of the electricity purchased directly by the bank comes from renewable energy sources.
We are also developing our own renewable energy generation – in 2025, this accounted for 1.46% of the energy consumed by the Group.

We offer our customers products that support the economic transition:
- Transition Loan for the financing of sustainable investments
- Green Loan from BGK
- Ekomax – an investment loan with a BGK guarantee and a subsidy to the loan principal.
- Sustainability-Linked Loans (SLL)
We diversify our portfolio of sustainable financing
In 2025, we financed, among other things, the construction of one of Europe’s largest facilities for recycling lithium batteries, battery waste and production waste from the electromobility sector. The project received an award in the “Best Sustainable Financing” category from Polsif (Poland’s Sustainable Investment Forum).
We support Poland’s energy transition
We finance the construction of wind farms, solar power plants and energy storage facilities. In 2025, key projects focused on energy storage and the construction of energy infrastructure on land and at sea (onshore and offshore). We acted as advisors and financed two offshore wind farms located in the Polish Baltic Sea. Together, these two projects constitute one of the world’s largest and the EU’s largest debt financing deals for renewable energy sources. We also concluded one of the first financing deals for the construction of Battery Energy Storage Systems (BESS).
We are developing the “Erste New Energy” platform
This platform is aimed at clients from the SME and corporate segments. The tool available on the platform allows clients to estimate their organisation’s carbon footprint and calculate the profitability of investments supporting the energy, including through the use of public support schemes (assuming an expansion of their scope, scale and bankability in the future).
We have published a report entitled “The Green Transition and SMEs: How to Gain a Competitive Advantage?”
According to the authors of the report “The Green Transition and SMEs: How to Gain a Competitive Advantage?”, sustainable development presents small and medium-sized enterprises with a range of challenges – both regulatory and market-related. Nevertheless, companies that decide to invest in new technologies and optimise their processes can emerge from this process with significant benefits. Properly implemented changes will enable them – through effective energy and resource management – to reduce operating costs and improve competitiveness. The report was prepared in collaboration with KPMG
We are producing a podcast series entitled “New Energy for Finance”,
The aim of the series is to present the business benefits of modernising corporate assets to reduce emissions and to discuss regulatory changes related to sustainable development that may affect business operations in specific sectors
We offer ESG funds
Our Fund Management Company (TFI) offers investment funds classified as products under Article 8 of the SFDR (so-called ‘light green’) and Article 9 of the SFDR (so-called ‘dark green’). As at 31 December 2025, the share of ESG funds’ net assets in the total net assets of investment funds managed by TFI stood at 5.38%, compared to 4.4% as at 31 December 2024.
We combat greenwashing
We have a range of regulations governing communication and cooperation with external partners, as well as the classification of sustainable finance, which:
- harmonise the approach to defining sustainable transactions and products and their communication,
- mitigate the risk of greenwashing in external cooperation.

The Group also has an ESG Panel, whose aim is to support business units in the correct identification and classification of credit transactions and sustainable products, both in terms of compliance with the criteria of the internal classification system and the EU Taxonomy.

Regulations pertaining to the implementation of new products and services ensure that, for all ESG-related products and services, including non-credit ones, consultation with the relevant units is required to rule out the risk of greenwashing. We are also continuously developing our staff’s knowledge and expertise in the areas of greenwashing, sustainable transactions and the identification of ESG risks.