Dear Stakeholders,

I have the pleasure to share with you the ENEA Group’s sustainable development report for 2019. The preparation of this publication coincided with an unusual period during which the whole world was coping with a pandemic.

At ENEA, we did our best to swiftly adapt to the new tough reality. As a socially responsible organization, we are actively supporting government and civic efforts to curb the spread of coronavirus while guaranteeing an uninterrupted supply of electricity to millions of Poles.

We protect our employees and customers by organizing our work and customer service solutions in line with special safety rules. Our companies and the ENEA Foundation have provided hospitals, emergency services and public health services with financial and material assistance worth more than PLN 4.2 million.

The outbreak of the epidemic has turned this year into a challenging period for many sectors of the economy. The previous year, which is discussed in this report, brought a number of significant changes to entities operating in the power sector. For us, it was predominantly a period spent on updating our development strategy and setting business objectives until 2030, with an outlook until 2035. Within this timeframe, we will focus our efforts on transforming our generation assets towards renewable and low-carbon technologies and on investments in new products and services tapping into advanced digital solutions.

An unchanging element of our approach to business will be to act in conformity with the concept of sustainable development. The achievement of our objectives will strengthen our market position in all areas of business, while ensuring continuous enhancement of the Group’s shareholder value.

Sustainable development

We generated robust financial results in 2019. The ENEA Group generated an EBITDA of PLN 3.4 billion, up more than 45% from the previous year. At the same time, we strengthened our business by supporting the pursuit of the UN Sustainable Development Goals. We were involved in various initiatives aimed at promoting good-quality education, gender equality, clean and accessible energy, economic growth, decent work and sustainable development of cities, towns and communities.

Care for the natural environment

A responsibly planned transformation of our generation assets increases the efficiency of energy production and the share of energy obtained from renewable sources. In 2019, this increase was 12.5% compared to 2018, and by 2030 we intend to boost the share of renewable energy sources in total energy generation more than fourfold. At the same time, we are reducing the level of unit CO2 emissions. By 2035, we will reduce it by as much as 56%.

We are making new investments aimed at supporting the achievement of national and European climate goals and adjusting our plants to the EU’s stringent environmental standards. We also keep modernizing our electricity distribution infrastructure. Our efforts in this area translate into an improved potential of our network in terms of the collection of electricity from distributed renewable sources.

Responsibility for employees and customers, care for local communities

We run our business in a responsible, transparent and ethical manner. We pursue the Policy against mobbing and discrimination and other unacceptable conduct. We are involved in a continuous dialogue with trade unions, thereby building a sense of job security and actual impact on the workplace among our teams. We keep investing in development-oriented programs for our employees and in practical training of future staff in cooperation with industry and technical schools and institutions of higher education.

We make continuous efforts to improve the quality of our services, as a result of which our customer satisfaction index keeps growing: in 2019, it stood at 81%. We attach great significance to building consumer awareness, which is why we are involved in a variety of educational campaigns.

Our decisions to get involved in any activity are based on an analysis of the needs of the communities where and for which we work. Not only do we conduct our business in a responsible manner, but also, in partnership with our stakeholders, we execute many socially beneficial projects, supporting various endeavors in the areas of education, sports, preventive healthcare, care for senior citizens and others.

I hope you find this report, in which we have included the non-financial aspects of the ENEA Group’s operations, informative and enjoyable. For us, the results we have attained translate into a commitment to pursue further ambitious plans towards the achievement of sustainable development.

Yours faithfully,

Paweł Szczeszek

President of the ENEA S.A. Management Board