Stakeholder Engagement

SBM-2

PZU Group places particular emphasis on effective stakeholder relationship management, striving to consider their needs and ensure equal access to information. This cooperation takes place at multiple levels and includes various stakeholder groups, including clients, shareholders, regulators, suppliers, and social organizations.

Stakeholders and forms of cooperation

Approach	Objective	Methods and forms of cooperation
continuous, open communication between employees and employer ongoing dialogue with trade unions engaging workplace	providing employees with development opportunities building understanding of strategy implementation and achieved results encouraging participation in new initiatives promoting best practices in hybrid work and optimizing work styles fostering collaboration and understanding across four generations of employees, supporting cross-departmental cooperation preparing for and adapting to change and crisis situations engaging in social initiatives and volunteering supporting health prevention and counteracting burnout strengthening responsibility for personal growth and well-being enhancing sense of influence over results, decisions, and work environment dialogue with trade unions to promote the well-being and sustainability of the organization, taking into account the needs of all participants	engagement surveys, pulse checks, focus groups, opinion polls, employee experience mapping and analysis clear, measurable targets assessed quarterly or annually direct meetings and discussions with supervisors – annually or quarterly internal and team meetings, regular meetings of managers at various levels with HR functional mailboxes for clarifying doubts chats, discussion forums information campaigns on development opportunities, support, and assistance promoting engaging tools and platforms, online chats with experts, helplines live debates with experts and organizational leaders advocating clear and simple communication workplace change initiatives, e.g., ambassador groups training managers in open dialogue, contract negotiations, and discussions involving trade unions in consultations, informing them of key company changes, and providing ongoing updates employee support programs: #rozmawiajMY („let’s talk”) #DobryStan program – promoting work-life balance internal portal/intranet general and thematic newsletters information campaigns expanding knowledge about organization webinars with experts quarterly financial meetings with Management Board members video materials displayed at company headquarters whistleblowing system for reporting violations

Approach	Objective	Methods and forms of cooperation
continuous and open communication with clients ensuring product and service quality and alignment with customer needs enhancing experiences related to purchasing and service processes Customer Ombudsperson Health Ombudsperson	incorporating client feedback in business solution design creating transparent conditions for offers and contracts offering high-quality products and services tailored to customer needs ensuring multiple access channels to products and services, reflecting customer preferences building positive customer experiences preventing social and financial exclusion	ongoing, face-to-face meetings and physical conversations at branches, agents’ offices, health facilities and by phone – hotline, contact center continuous contact, including social media profiles, chat, contact form on the website, functional mailboxes, mojePZU, inPZU clear and simple communication with customers customer satisfaction and opinion surveys on product and service quality, enabling quick response to client needs functional mailboxes allowing employees to submit initiatives and streamline client processes omnichannel approach, removing barriers and facilitating access to products and services – including solutions tailored for people with disabilities use of plain language in communication with clients OK SENIOR® International Quality Certificate, confirming that PZU branches are adapted to the needs of customers over 60 participation in trade fairs, conferences, and industry meetings financial and insurance education programs

Approach	Objective	Methods and forms of cooperation
ongoing cooperation for mutual benefits, including knowledge sharing and feedback exchange	understanding business partner expectations, needs, and challenges presenting strategic plans summarizing the achievement of business goals improving product offerings enhancing contract processes, product sales, and customer service	building and maintaining fair cooperation conditions by ensuring access to relevant and up-to-date information, as well as opportunities to ask questions and express opinions (e.g., surveys, focus groups, meetings) regular and cyclical meetings with agents (annual and monthly) internal communication portal for agents use of social media in communication newsletters training and sales support programs consultation groups and business forums for agents

Approach	Objective	Methods and forms of cooperation
ongoing cooperation based on „PZU Group’s ESG Supplier Code of Conduct and Best Practices” supplier audits	ensuring transparent rules for supplier selection and cooperation shaping business standards – conducting business responsibly and sustainably promoting ethical procurement practices increasing supplier awareness of PZU Group’s needs and vice versa improving supplier quality and service standards increasing ESG awareness in the economic environment and integrating ESG principles into business and procurement processes pre-selection of potential suppliers for cooperation with PZU Group as part of the verification process	regular meetings and negotiations with new and existing suppliers frequent communication with suppliers on key cooperation matters applying clear and simple communication principles providing support to suppliers in understanding key issues supplier cooperation during audits to improve product and service quality maintaining a List of Qualified PZU Suppliers

Approach	Objective	Methods and forms of cooperation
continuous, two-way communication between the company’s management board and capital market participants, based on best capital market practices	building investor trust ensuring transparency in operations providing equal access to information affecting investment decisions encouraging shareholder participation in key decision-making fostering understanding of the business model, strategy, and value creation at PZU Group increasing the company’s capitalization and distributing profits	General Meeting of Shareholders, enabling the widest possible shareholder participation proper fulfillment of legally required disclosure obligations for listed companies – periodic and current reports quarterly financial presentations and newsletters quarterly financial meetings with Management Board representatives meetings with the Management Board following key corporate decisions (e.g., strategy, acquisitions) live-streamed events with opportunities for Q&A, including simultaneous English translation for financial results presentations, General Meetings of Shareholders, and other key corporate events investor relations website (available in Polish and English) providing up-to-date information, including financial results presentations, recordings of General Meetings of Shareholders, and key corporate events regular meetings with institutional investors during investor conferences, roadshows, video/teleconferences, and at the company’s headquarters annual WallStreet Conference for individual investors loyalty program for individual investors Moje Akcje PZU

Approach	Objective	Methods and forms of cooperation
continuous cooperation with journalists	ensuring transparency in operations providing easy and fast access to information about PZU and PZU Group increasing awareness of insurance-related matters improving knowledge about financial products enhancing external perception of PZU’s media policy and communication strategy ensuring consistent media communication regarding corporate and business-related topics	maintaining strong relationships with key media and opinion-forming journalists inviting selected journalists and editorial teams to corporate events responding to media inquiries in accordance with PZU Group’s information policy and strategy preparing press releases organizing press conferences participating in expert interviews and industry conferences maintaining presence in social media

Approach	Objective	Methods and forms of cooperation
ongoing dialogue and consideration of regulatory recommendations participation in debates and conferences cooperation with the Polish Insurance Association (PIU) and Polish Bank Association (ZBP)	ensuring compliance with legal and regulatory requirements supporting the development of new market standards, including best practices meeting regulatory and supervisory requirements, as well as corporate governance principles maintaining cooperation with the regulatory environment identifying real and potential impacts of new regulations (laws, recommendations) from both EU and national legislation defining preventive and mitigating actions to address negative impacts	active participation in legislative projects, especially when identifying potential risks or negative impacts on the insurance sector, submitting feedback on draft proposals through cooperation with PIU participation in commissions, working groups, and legislative teams within PIU, aimed at improving regulatory conditions in the insurance market; activities focus on real-time analysis and feedback on legislative proposals, development of regulatory assumptions, and market practice alignment participation in meetings, negotiations, explanations, and consultations (e.g., KNF recommendations) to assess potential market impacts of planned regulations

Aproach	Objective	Methods and forms of cooperation
ongoing direct communication employee volunteering supporting local community development	encouraging employees to participate in social and environmental initiatives implementing social projects, particularly volunteer-based initiatives in collaboration with local communities improving physical health among children and youth enhancing safety and quality of life in local communities reducing disparities in sports infrastructure and access to sports between major cities and smaller towns	implementing sponsorship and preventive projects aimed at improving health and safety providing opportunities for PZU employees to obtain grants for self-initiated volunteer projects benefiting local communities they are familiar with offering financial assistance to individuals in difficult life situations initiatives aimed at ensuring equal opportunities for children and youth from small towns preventive campaigns and awareness programs supporting emergency services

Approach	Objective	Methods and forms of cooperation
building partnerships and conducting social needs assessments joint planning, implementation, and evaluation of projects evaluating employee volunteering programs sharing knowledge	promoting the idea of employee volunteering in collaboration with NGOs and public institutions identifying the needs of specific social groups that can be addressed through employee volunteering minimizing the risk of insurance incidents and mitigating their consequences exchanging knowledge and experiences, analyzing trends, and identifying challenges related to sustainable development, including environmental protection	participation of PZU employees in working groups led by partner organizations, attendance at thematic meetings, and creation of joint publications implementation of volunteer initiatives aligned with the needs of NGOs and public institutions execution of educational and social programs focusing on health, safety, and social assistance organization of joint conferences, seminars, and other activities with representatives from the academic and third sectors

Approach	Objective	Methods and forms of cooperation
projects promoting education and cultural events patronage and partnerships	promoting and protecting Polish culture and national heritage supporting cultural education among children and youth	patronage and partnerships with Polish cultural institutions supporting major cultural institutions in Poland that require systemic funding due to their size and role promoting high culture among children and youth as a tool for developing social competencies joint planning of projects promoting cultural education initiatives aimed at fostering participation in cultural events collaboration in organizing major cultural events

Outcomes and effects of cooperation

Stakeholder collaboration results are continuously monitored and integrated into PZU Group’s operations. The effectiveness of activities related to social engagement, customer satisfaction, and operational efficiency is assessed. PZU Group strives to implement innovative solutions that strengthen its position as a responsible financial market participant. Management responsible for stakeholder relations reports cooperation outcomes to the Management Board in line with their competencies. These actions enable PZU Group to build long-term relationships with stakeholders, improve management standards, and create value for all parties engaged in its activities.

Stakeholder types for the Double Materiality Assessment process

Phase	Stakeholder type	Role	Engagement method	Reasoning
Pre-assessment	Internal stakehodlers	Active participation in the preassessment	Workshops	Greater influence and proximity to the decision-making process throughout the entire value chain
Stakeholder validation	External stakeholders	Consultations for testing and refining the pre-assessment	Survey	Obtaining an external perspective and adjusting the materiality assessment

Decision-making processes and involvement of internal stakeholders

After conducting the double materiality assessment with the support of internal stakeholders (designated representatives of individual value chain areas within PZU Group), the results were submitted for approval by the relevant management bodies within PZU Group.

In 2024, representatives of key business areas from various value chain segments of PZU Group evaluated the alignment of decisions made in the Double Materiality Assessment process with the overall business development direction.

During the double materiality assessment process, to substantiate its findings, selected internal stakeholders were engaged as subject matter experts for specific topics or value chain segments.

During the double materiality assessment process, PZU Group identified a set of key stakeholders, mapping them to ESRS-defined categories like stakeholders. affected by activities and users of Sustainability Statements in relation to each section of PZU Group’s value chain. Relevant entities were included across all value chain elements. The following key stakeholder groups were specified in the process:

for all value chain elements: investors
suppliers: distributors and suppliers
own operations: employees and local communities
life and health insurance: clients, insurance partners, reinsurers
non-life insurance: clients, insurance partners, reinsurers
proprietary investments: property lessors, companies within the investment portfolio
investment and pension funds: clients
business banking: clients, partners, institutional stakeholders
retail banking: clients, partners, institutional stakeholders
healthcare protection: patients, medical facilities, institutional stakeholders.

Stakeholders in the decision-making process for the Double Materiality Assessment

Role	Responsibility
Management Board	Acceptance of the double materiality assessment results for PZU Group and the methodology of its implementation.
Director of the Sustainable Development	Based on identified material sustainability issues, conclusions were formulated regarding their impact on key operational processes. The final results of the double materiality assessment, along with their consequences for reporting, were presented to the PZU Group Management Board. As part of this process, the set of data points and information used in the sustainability reporting process was updated.
Internal stakeholders	In 2024, internal stakeholders participated in the preliminary double materiality assessment conducted by the unit responsible for sustainability. They provided the necessary data, verified initial conclusions, and assessed subsequent findings.

PZU Group engaged value chain representatives to assess dual materiality through a survey. The process involved familiarizing stakeholders with the preliminary assessment results and validating the preliminary assessment results, considering impacts, risks and opportunities over a 1-5 year horizon, and assessing the change in materiality in the short term (<1 year) and long term (>5 years). The goal was to validate the results, including potentially identifying additional relevant ESRS topics omitted from the preliminary assessment stage, and gather stakeholder feedback for further refinement of the assessment.

PZU Group focused on engaging experts and indirect stakeholder representatives (e.g., advisory firms, associations). This approach allowed a single stakeholder to represent multiple customer groups while potentially reducing the risk of missing important stakeholder groups whose opinions might be underrepresented if direct stakeholder engagement was used (e.g., clients or employees).

PZU Group conducted an analysis of stakeholder survey results, based on precise response allocation and qualitative assessment of comments. The process followed these steps:

Assigning responses to value chain elements

Each stakeholder was assigned to the value chain element they had a direct impact on.

Comment content analysis was conducted qualitatively, taking into account both the content and context. As a result of this analysis, comments were categorized and a judgment was made to include double materiality in the assessment.

Quantification of opinions

Stakeholder responses were converted into numerical values for easier analysis:

No materiality (score 2) – for the option to reduce materiality
The current result of the analysis – for the option to leave according to the PZU hypothesis
Increasing materiality (score 4.5) – for the option of increasing materiality.

The above results represent the average score from the ratings qualifying the topic for relevance, or lack thereof. These ratings correspond to the options in the questionnaire provided, where the user could indicate relevance, or lack thereof.

Calculating the score modifier

The average of the response weights for each topic and value chain element was the modification value of the final part of the double materiality assessment. The modification was taken into account on the basis of the average of the initial assessment and stakeholder feedback, and a final score between one and five was considered significant if the materiality score after rounding to the nearest whole number was four or five.

Final materiality score adjustment

After incorporating proposed modifications and rounding, the final materiality score was obtained, reflecting both survey responses and argumentation from stakeholder comments.

At the same time, stakeholder opinion was used to assess the change in relevance of topics over time. Survey participants were given the opportunity to indicate whether the relevance in the short or long time horizon would decrease or increase accordingly by modifying the calculated impact assessment relative to the medium time horizon.

ESG risk management processes are integrated into the broader risk management framework within PZU Group. ESG risks were also identified through the double materiality assessment. Selected ESG risks are considered in investment decision-making processes, insurance product development processes, selected corporate client risk assessment processes

Stakeholders and forms of cooperation

Employees

Customers

Business partners, agents

Suppliers

Capital market, including: Investors, shareholders, analysts, and rating agencies

Media

Regulatory Authorities including KNF, UOKiK, GPW

Local communities

Non-governmental organizations and public institutions

Cultural institutions

Stakeholder types for the Double Materiality Assessment process

Decision-making processes and involvement of internal stakeholders

Incorporating stakeholder engagement in the double materiality assessment process and categories of cooperation

Stakeholders in the decision-making process for the Double Materiality Assessment

Engagement organization

Impact of the double materiality assessment on risk management processes

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