Glossary

agent (insurance agent) – an entrepreneur conducting agency activities based on a contract with an insurance company. The activities of agents focus on acquiring clients, concluding insurance contracts, participating in the administration and execution of insurance contracts, and organizing and supervising agency activities

AI – Artificial Inteligence

AIA 2050 – methodology developed by the AIA Group, which provides a comprehensive framework to enable financial institutions, among others, to transform their loan portfolios and investment portfolios toward achieving climate neutrality (Net Zero) by 2050

assurbanking – the distribution of banking products by insurance
companies

AuM (Assets under Management) – assets under management refer to the total value of
financial assets managed by an institution, investment fund, or investment advisor on behalf of clients

bancassurance – the distribution of insurance company products through
banks

business banking – a segment of Bank Pekao and Alior Bank’s operations
that serves corporate clients, including loans and financial services for enterprises

retail banking – a segment of Bank Pekao and Alior Bank’s operations
focused on individual clients (natural persons), encompassing consumer loans, personal accounts, and deposits

BEL (Best Estimate of Liabilities) – the best estimate of liabilities refers to the estimated value of insurance contract obligations, representing the amount required to cover payments for services and benefits to policyholders based on the best available estimates, assuming that everything proceeds as expected (best estimate assumptions)

BFG – The Bank Guarantee Fund (Bankowy Fundusz Gwarancyjny)

OHS (Occupational Health and Safety) – a set of principles and regulations ensuring safe and hygienic working conditions. Polish: BHP

biodiversity – the biological diversity of species and ecosystems. In the EU Taxonomy, it is listed as one of the environmental protection areas that must not be „significantly harmed” (DNSH – Do No Significant Harm)

BREEAM (Building Research Establishment Environmental Assessment Method) – an international sustainability assessment system for buildings, measuring their environmental impact, energy efficiency, and user comfort. It is awarded to buildings that meet high ecological and sustainable design standards

CAPEX (Capital Expenditures) – investment expenditures incurred for the purchase or improvement of fixed assets

CEN (European Committee for Standardization) – the European Committee for Standardization, responsible for developing and harmonizing technical standards across various industries and services in Europe

CENELEC (European Committee for Electrotechnical Standardization) – the European Committee for Electrotechnical Standardization, responsible for developing standards for electrical and electronic products and systems, supporting safety and compatibility within the European market

CER (Certified Emission Reduction) – CO2 offset units issued under the Clean Development Mechanism (CDM), established by the Kyoto Protocol. Each CER unit corresponds to the reduction of one ton of CO₂ equivalent and can be used to offset emissions in emissions trading systems

CO₂e (Carbon Dioxide Equivalent) – a measure of total greenhouse gas emissions converted to the CO2 equivalent

CRM (Customer Relationship Management) – an approach, along with a set of tools and technologies, used for managing customer relationships

CSR (Corporate Social Responsibility) – the concept of corporate social responsibility, in which businesses voluntarily integrate social, environmental, and ethical considerations into their operations and relationships with stakeholders

CSRD (Corporate Sustainability Reporting Directive) – Directive (EU) 2022/2464 of the European Parliament and Council, adopted on November 21, 2022, expanding the scope and detail of non-financial (ESG) reporting requirements for companies. Implemented into national regulations and published in the Journal of Laws on December 17, 2024.

DEFRA (Department for Environment, Food and Rural Affairs) – The UK Department for Environment, Food, and Rural Affairs

DNSH (Do No Significant Harm) – a principle under the EU Taxonomy requiring that an activity deemed sustainable in one area (e.g., climate change mitigation) must not significantly harm other environmental targets (e.g., biodiversity, water resources)

DORA (Digital Operational Resilience Act) – European Commission Regulation 2023/2554, adopted on December 14, 2022, mandating the implementation of IT risk management systems, resilience testing, and cybersecurity incident reporting

taxonomy-eligible activity – a type of economic activity that falls within the sectors covered by the EU Taxonomy

non-taxonomy-eligible activity – any economic activity not listed in the delegated acts of the EU Taxonomy or conducted outside the geographical scope of the reporting requirements

ECB – The European Central Bank

EIOPA (European Insurance and Occupational Pensions Authority) – the European Insurance and Occupational Pensions Authority, which issues guidelines on climate risk management in the insurance sector

EURO – The currency of the European Union for the Eurozone

ESG (Environmental, Social, Governance) – Sustainability factors, referring to environmental, social, and corporate governance issues.

ESRS (European Sustainability Reporting Standards) – European sustainability reporting standards developed for the CSRD directive

financed emissions – greenhouse gas (GHG) emissions attributed to a financial institution (e.g., bank, insurer) due to financing, investing, or insuring an emitter’s activities. According to PCAF it is category 15

FIZAN – Closed-end Investment Fund for Non-public assets, a type of investment fund that focuses on allocating capital into non-public assets, such as private equity shares, real estate, receivables, or debt instruments

FOTO – an advanced tool introduced at the end of 2024 with the support of the Polish Chamber of Insurance and the Insurance Guarantee Fund, aimed at automating and improving the claims settlement process for motor insurance and combating insurance fraud

GAR (Green Asset Ratio) – the Green Asset Ratio (GAR) is an indicator showing the percentage of a financial institution’s assets that comply with sustainability criteria. In other words, it measures the extent to which banks and other financial intermediaries finance environmentally friendly projects and activities in accordance with the EU Taxonomy

GHG (Greenhouse Gas) – a gas that belongs to the group of atmospheric gases whose absorption and emission properties in the infrared radiation spectrum contribute to the greenhouse effect

GIR (Green Investment Ratio) – the Green Investment Ratio is the ratio of an insurance company’s or other financial institution’s investments (assets) allocated to environmentally sustainable activities (as defined by the EU Taxonomy) to the total value of assets under analysis

closed loop economy – a concept aimed at minimizing waste generation, maximizing resource reuse, and promoting recycling

GPW – The Warsaw Stock Exchange

greenwashing – the practice of presenting a business activity or product as more environmentally friendly than it actually is

GUR (Green Underwriting Ratio) – a green insurance ratio that measures the share of insurance products meeting sustainability criteria (aligned with the EU Taxonomy) in total revenues or premiums of an insurance company

GWP (Gross Written Premium) – the total amount of insurance premiums from policies issued by an insurer over a specific period. It represents the full value of these premiums before deductions for reinsurance costs, refunds, and other adjustments

HFC (Hydrofluorocarbons) – a type of greenhouse gas

time horizon – the time frame within which a given risk or impact is considered significant

IDD (Insurance Distribution Directive) – Directive (EU) 2016/97 of the European Parliament and Council, adopted on January 20, 2016, regulating insurance distribution to enhance consumer protection and market transparency

IKE – Individual Retirement Account, a voluntary form of retirement savings under the third pillar of Poland’s pension system, allowing individuals to accumulate funds with tax advantages.

ILO (International Labour Organization) – International Labour Organization

IMGW – The Polish Institute of Meteorology and Water Management.

derivative instruments – financial contracts (e.g., options, futures) whose value is derived from an underlying asset (e.g., stock index, currency)

emission intensity – an indicator measuring the amount of greenhouse gas emitted per unit of production, energy, or other economic activity metric

waste generation intensity – an indicator measuring the amount of waste generated per unit of production or other economic activity metric

IPCC (Intergovernmental Panel on Climate Change) – a scientific body that assesses the latest research on climate change and develops comprehensive climate scenarios

ISO (International Organization for Standardization) – an international standardization organization that develops and publishes technical, quality, safety, and management standards

IT (Information Technology) – technology encompassing the processing, storage, transmission, and management of data using computer systems, software, and telecommunication networks

KID (Key Information Document) – a document containing key information about an investment or insurance product

KNF – Financial Supervision Authority, the supervisory body overseeing the financial market in Poland

KOBIZE – National Centre for Emissions Management, an institution operating in Poland responsible for collecting, analyzing, and reporting emissions data

KPI (Key Performance Indicator)  – a key performance indicator is a metric used to assess the achievement of strategic goals (financial, climaterelated, social)

Baltic Country – Lithuania (LD, PZU LT GD), Latvia (Balta), Estonia (LD branch)

LRC (Liability for Remaining Coverage)  – liability for the remaining coverage period

risk materialization – the process in which a predicted risk transforms into an actual event

minimum safeguards – a principle derived from the EU Taxonomy (Article 18 of Regulation 2020/852). It includes procedures implemented by businesses to ensure their operations comply with international standards for responsible business conduct

mObywatel – a Polish mobile application for public services and electronic identification

flood model – a specialized computational system that assesses flood risk

IFRS (International Financial Reporting Standards) – a set of accounting principles developed by the International Accounting Standards Board (IASB). Polish: MSSF

mStłuczka – a planned feature of the mObywatel app, allowing drivers to report traffic accidents directly via mobile devices

SMEs – Small and Medium-Sized Enterprises

NACE – (fr. Nomenclature statistique des activités économiques dans la Communauté européenne), a classification system for economic activities used within the European Union

climate neutrality – a state in which an activity does not contribute (on a net basis) to the increase of greenhouse gas concentrations. This concept refers to a balance (net-zero emissions) between emitted greenhouse gases and their removal or absorption

NGFS (Network of Central Banks and Supervisors for Greening the Financial System) – a network of central banks and financial supervisory authorities that develops recommendations on integrating climate change into financial risk management. It appears in statements in the context of climate scenarios

NPS (Net Promoter Score) – a customer satisfaction and loyalty indicator

NZAOA (Net Zero Asset Owner Alliance) – a global initiative of institutional asset owners committed to achieving climate neutrality (net zero) by 2050 through investment strategy transformation and engagement in low-carbon economy efforts

NZBA (Net Zero Banking Alliance) – a global initiative of banking institutions focused on transforming the financial sector towards a lowemission model. Banks joining NZBA commit to achieving net-zero emissions across their loan, investment, and operational portfolios by 2050 or earlier, in alignment with the Paris Agreement goals

double materiality assessment – a concept used in non-financial reporting (CSRD) that takes into account both the impact of ESG factors on a company’s financial results (financial materiality) and the impact of its activities on the environment and society (impact materiality)

OECD – The Organisation for Economic Co-operation and Development

ORSA (Own Risk and Solvency Assessment) – an internal risk and solvency assessment process within insurance companies, including stress testing and the analysis of climate risk impacts on the insurer’s financial conditio

Sustainability Statement – obligation to disclose data on, among others, the environment, social issues, corporate governance in accordance with the new European standards (European Sustainability Reporting Standards) under the CSRD Directive

OZE (Renewable Energy Sources) – energy obtained from natural sources that are constantly regenerated, such as the sun, wind, water, biomass or geothermal energy

PCAF (Partnership for Carbon Accounting Financials) – an initiative that develops standards for calculating greenhouse gas emissions attributed to financial institutions in relation to their financing activities (socalled financed emissions)

PGK – The PZU Tax Capital Group was established by an agreement signed on November 10, 2023, covering 14 companies: PZU, PZU Życie, Link4, PZU CO, PZU Pomoc SA, Ogrodowa-Inwestycje sp. z o.o., PZU Zdrowie SA, Tulare Investments sp. z o.o., TFI PZU, Ipsilon sp. z o.o., PZU Finanse sp. z o.o., PZU LAB SA, Omicron Bis SA, and PZU Projekt 01 SA. The PGK was established for a threeyear period, from January 1, 2024, to December 31, 2026, and was officially registered by the Head of the First Mazovian Tax Office in Warsaw on December 13, 2023. PZU is the dominant and representative entity of the PGK. The PGK settles tax obligations on a monthly basis, with PZU making CIT advance payments to the Tax Office on behalf of all member companies. These companies, in turn, transfer their CIT advances to PZU, corresponding to their individual business activities

transformation plan – a strategic document outlining the objectives and necessary actions to transform a business model towards sustainable development (e.g., decarbonization, energy efficiency, climate change adaptation) in accordance with the CSRD Directive guidelines

POCI (Purchased or Originated Credit – Impaired financial assets) – financial assets acquired or originated with credit impairment due to credit risk

PPK – Employee Capital Plans, a long-term retirement savings system in Poland

PRIIP (Packaged Retail and Insurance-based Investment Products) – Commission Delegated Regulation (EU) 2017/653 of March 8, 2017, supplementing Regulation (EU) No 1286/2014 of the European Parliament and the Council on key information documents for packaged retail and insurance-based investment products

reinsurance – the transfer of all or part of an insured risk or a group of risks to another insurance company (reinsurer) along with the corresponding portion of the premiums. Reinsurance enables risk-sharing and helps minimize insurance market risks

GDPR (General Data Protection Regulation) – Regulation (EU) 2016/679 of the European Parliament and the Council, adopted on April 27, 2016, concerning the protection of natural persons regarding the processing of personal data and the free movement of such data, repealing Directive 95/46/EC. Polish: RODO

CRR Regulation – Regulation (EU) No. 2013/575 of the European Parliament and the Council, adopted on June 26, 2013, on prudential requirements for credit institutions and investment firms, amending Regulation (EU) No. 648/2012

physical risk – the risk arising from the physical impacts of climate change (e.g., floods, droughts, hurricanes) that may affect assets, business operations, and financial performance

transition risk – the risk associated with the transition to a low-carbon economy, including regulatory, technological, and social changes that may affect the valuation of high-emission assets and business models

S&P (Standard & Poor’s) – one of the world’s largest credit rating agencies, assessing the creditworthiness of countries, financial institutions, and businesses

SCR (Solvency Capital Requirement) – the total amount of capital that insurance and reinsurance companies in the European Union must hold to ensure their solvency and financial stability

SFDR (Sustainable Finance Disclosure Regulation) – Regulation (EU) 2019/2088 of the European Parliament and the Council, adopted on November 27, 2019, on sustainability-related disclosures in the financial services sector. It imposes disclosure requirements on financial institutions regarding sustainable investment aspects and ESG risk management practices

Consolidated Financial Statement – the Consolidated Financial Statement of the PZU Group, prepared in accordance with IFRS, for the year ending December 31, 2024

SPV (Special Purpose Vehicle) – a special-purpose entity established to carry out a specific investment project

carbon footprint – the total greenhouse gas emissions associated with an organization’s activitie

EU Taxonomy – Regulation (EU) 2020/852 of the European Parliament and the Council, adopted on June 18, 2020, establishing a framework to facilitate sustainable investments. It amends Regulation (EU) 2019/2088 and defines criteria for determining whether an economic activity is environmentally sustainable, aiming to support the transition to a low-carbon economy

TCFD (Task Force on Climate-related Financial Disclosures) – a global initiative established by the Financial Stability Board (FSB) in 2015, aiming to develop and promote standards for financial disclosures related to climate change risks and opportunities

stress testing – a sensitivity analysis assessing a financial institution’s resilience to severe but plausible adverse events (e.g., natural disasters, economic crises). It is conducted as part of ORSA (Own Risk and Solvency Assessment) and climate risk scenarios

CJEU – The Court of Justice of the European Union. Polish: TSUE

UFK (Insurance Capital Fund) – Unit-Linked Insurance Fund, a segregated portion of an insurance premium that is invested in selected financial instruments (e.g., investment funds)

UNEP FI (United Nations Environment Programme Finance Initiative) – The United Nations Environment Programme Finance Initiative aims to promote sustainable financial practices in the banking, investment, and insurance sectors

UOKiK – The Polish Office of Competition and Consumer Protection

General Meeting of Shareholders – The General Meeting in a joint-stock company (Polish: S.A.) or the Meeting of Partners in a limited liability company (Polish: sp. z o.o.)

look-through approach – an analytical method that involves considering, in investment assessment, the individual companies within investment fund portfolios in proportion to the value of the investment in a given fund

sustainable finance – a concept referring to the integration of ESG factors into financial decision-making (loans, investments, insurance) to support climate and energy transition, environmental protection, and social development

BALTA
AAS BALTA

Alior Bank
Alior Bank SA

Alior Bank SA Capital Group
Alior Bank together with its subsidiaries

Pekao Capital Group
Pekao with its subsidiaries

Lietuvos Draudimas
AB „Lietuvos draudimas”

Link4
Link4 Towarzystwo Ubezpieczeń SA

Pekao
Bank Pekao SA

TUW Polski Gaz (in liquidation)
Polski Gaz Towarzystwo Ubezpieczeń Wzajemnych

PZU, the Parent Company
Powszechny Zakład Ubezpieczeń Spółka Akcyjna

PZU Lietuva gyvybes draudimas
UAB „PZU Lietuva gyvybes draudimas”

PZU CO
PZU Centrum Operacji SA

PZU Ukraina
PRJSC IC „PZU Ukraine”

PZU Zdrowie
PZU Zdrowie Spółka Akcyjna

PZU Życie
Powszechny Zakład Ubezpieczeń na Życie Spółka Akcyjna

TFI PZU
Towarzystwo Funduszy Inwestycyjnych PZU SA

TUW PZUW
Towarzystwo Ubezpieczeń Wzajemnych Polski Zakład Ubezpieczeń Wzajemnych