We define natural capital as natural resources which are used by the Group or on which the Group exerts an impact.

Interaction between the PGNiG Group companies and the environment is inherent in the nature of their business. Considering the contemporary challenges to environmental protection, related to the depletion of natural resources and potential contamination of individual environmental components, we are taking measures to minimise the adverse environmental impact. The PGNiG Group recognises its impact on climate change and supports the fight against air pollution.

PGNiG also takes steps to enhance its energy efficiency, one example of these efforts being the implementation and maintenance of an energy management system.

Key metrics:

7.18 m Mt eCO2

PGNiG Group’s direct GHG emissions (scope 1) in 2019 (7.15 million Mt eCO₂ in 2018)

8,181.6 GWh 

PGNiG Group’s electricity consumption in 2019 (9,083.3 GWh in 2018)

144.6 mcm 

PGNiG Group’s water consumption in 2019 (160.6 million cubic metres in 2018)

136.3 tcm 

total volumes of wastewater generated by the PGNiG Group in 2019 (160.7 thousand cubic metres in 2018)



+ 0.39%

year-on-year increase in direct GHG emissions (scope 1) in 2019 despite stable growth of the Group’s operations

- 9.93%

year-on-year reduction in the PGNiG Group’s total electricity consumption in 2019

- 9.96%

year-on-year reduction in the Group’s total water consumption in 2019

- 15.22%

year-on-year reduction in the total volume of wastewater generated by the PGNiG Group in 2019

Our approach to performance management:

  • We implement environmental and climate protection measures by supporting the transition from coal to natural gas in the heat generation sector with the goal of reducing harmful dust and GHG emissions in Poland
  • Environmental matters at the PGNiG Group are governed by two key documents. The first one is the QHSE Policy, demonstrating the Group’s responsibility for conducting business activities with due consideration given to the global challenges of sustainable development. The second one is the PGNiG Group Sustainable Development Strategy for 2017−2022, which underlines the importance of the environmental dimension in the Group as a sustainable business
  • In 2019, PGNiG commenced implementation of the Energy Management System compliant with the PN-EN ISO 50001:2012 and PN-EN ISO 50001:2018 standards. As part of the process, employees received training on the scope and objectives of the new system. The latter included harmonisation of the energy efficiency policy, adoption of uniform ISO 50001-based standards for production operations, and end-to-end control and optimisation of the energy management process. Capital projects to build photovoltaic farms on the site of underground cavern gas storage facilities are also carried out as part of the implementation process. They are intended to generate electricity for the Company’s own needs, with excess electricity to be fed into the power grid
  • The Environmental Management System forming part of the QHSE Management System is based on the ISO 9001:2015, 14001:2015 and OHSAS 18001:2007 standards. Starting from March 2021, ISO 45001:2018 will apply with respect to the occupational health and safety management system. Following a QHSE system management review in July 2019, one of the identified improvement measures was to migrate the QHSE Management System requirements to ISO 45001. The process of implementing the new standard is already under way
  • Wells intended for decommissioning are plugged and abandoned in accordance with the provisions of the Geological and Mining Law and the related secondary legislation
  • Wastewater generated by the PGNiG Group companies is discharged into the sewage system, surface water or soil, based on the water permits obtained
  • Green technologies and products are one of the key drivers of innovation across the Group. It is PGNiG’s intention to become Poland’s leader in hydrogen technologies. Successfully completed in 2019, the R&D project called ELIZA focused on hydrogen production from renewables through electrolysis and on harnessing the Group’s know-how in gas fuel storage

How does natural capital affect other types of capital?

Innovative capital

Green technologies and products are one of the key drivers of innovation across the Group. It is PGNiG’s intention to become Poland’s leader in hydrogen technologies. In 2019, the ELIZA research and development project was successfully completed, laying the foundations for the creation of a hydrogen competence program at the PGNiG Group. The ELIZA R&D project, which focuses on generation of hydrogen from renewable sources through electrolysis and on using in practice the Group’s know-how in gas fuels storage. 

A number of innovative solutions developed under INGA, one of the most ambitious projects on record in the gas industry, as well as the GeoMetan II project, will open access in the near future to new hydrocarbon reserves, which until recently have not been even considered as potentially productive.
Human capital

Human capital and natural capital interact on several levels:

  • Through education and training, the Group minimises the risk of events which could have an adverse effect on the natural environment due to human error. 
  • Through development and innovation projects, the Group develops and rolls out solutions designed to reduce the environmental footprint of its operations. A large number of such solutions are developed internally by Group companies.
  • From the perspective of extraction of natural resources, competent staff are key to efficient exploration for and production from new deposits, also outside of Poland.
Social capital
As part of its production operations in Poland and abroad, the Company engages in social dialogue with local communities, experts and environmental organisations, as access to hydrocarbon deposits often depends on their acceptance. The PGNiG Group is firmly committed to building strong partnership-based relations with local communities, public authorities, suppliers and contractors in the pursuit of common goals. 
Financial capital

PGNiG Group is an industrial and commodity holding company. PGNiG’s business comprises exploration for and production of natural gas and crude oil. Through its key companies, PGNiG is also active in the area of import, storage, sale and distribution of gas and liquid fuels, as well as heat and electricity generation and distribution. As a result, all areas of our business rely heavily on access to natural capital which determines the Group’s financial performance. 

Exploration and Production is the Group’s first and principal operating segment from the perspective of the PGNiG Group strategy. To ensure uninterrupted supply of hydrocarbons to its retail and business clients, the Group invests in:

  • Exploration for new deposits and acquisition of production licences, 
  • Field development.

The Group acquires and sells commodities from its own sources, but also purchases commodities on the market:

  • Natural gas (including LNG) purchased from third parties,
  • Coal purchased as fuel for the Generation segment.

Natural gas and crude oil prices determine the performance of individual segments to a large extent. To secure favourable gas prices in international transactions, the Group enters into short-, mid- and long-term contracts as a guarantee of uninterrupted supply of natural gas at market prices.

Environmental costs are an inherent part of the Group’s operations. In an effort to minimise its environmental footprint, in 2019 the Group earmarked capital investments for emission allowances of 4,563.4 thousand Mg (the amount to be additionally purchased by the PGNiG Group as the allocated emission allowance is 1,713.3 thousand Mg).

The Group also pays costs of certification, environmental software and mandatory environmental measurements
Manufacturing capital

Interactions between natural capital and manufacturing capital may be analysed on several levels. 

  • In the Exploration and Production segment, the Group must have access to the necessary facilities and technologies to extract hydrocarbons from various deposits, including small-scale and unconventional deposits. In 2019, PGNiG launched the "Digital field" program - a tool that enables PGNiG to use oil and gas resources even more effectively. Last year, we also continued work on the GeoMetan II project, the aim of which is to make the methane trapped in coal beds seams available. In 2019, the ELIZA research and development project was successfully completed, laying the foundations for the creation of a hydrogen competence program at the PGNiG Group.
  • The Generation segment relies largely on coal assets. The Group is currently upgrading its existing generation capacities to bring them in line with the requirements of BAT. New investments will rely primarily on gas – a fuel which has significantly smaller environmental impacts.

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