CEO letter

[GRI 102-14]

Dear Stakeholders,

The PZU Group is the largest financial institution in Central and Eastern Europe. We employ approximately 40 thousand employees in five countries: in Poland, Ukraine, Lithuania, Latvia and Estonia who enable us to serve roughly 22 million clients. Together we are building profitability and generating the highest solvency ratios among European insurers. We measure our success not only in terms of financial results but also social commitment, actions to benefit the natural environment and sustainable development.

An additional responsibility is incumbent on PZU as a national economic champion of Poland and a State Treasury company. We were one of the first ones to get involved in the fight against the coronavirus pandemic which has been collecting its harvest across the world since early 2020. We have earmarked more than PLN 25 million for that purpose. On top of the money that made it possible to strengthen the health protection of Poles, we also got engaged ourselves in charitable assistance. Our employees disinterestedly devoted almost 7 thousand hours to providing support to the needy and in this way they helped 11 thousand people.

Today, these figures should exert no smaller of an impression than the high level of gross written premium or the sound return on equity. For they evidence that as the PZU Group we have passed the most important examination in empathy and commitment to helping the needy.

When I joined the Management Board in March of 2020 Poland was just starting to live in conditions formed by the pandemic. I was cognizant that we would be facing demanding times full of unknowns in our business. Events in recent months have shown that by reacting quickly to the evolving market environment and efficiently managing the organization, we are continuing to grow by making advances, among other places, on the market for medical services that are particularly important during this difficult time of the pandemic.

Climate change is another challenge we must face. We are aware that the business decisions we make and our activity on the financial market may exert a direct and indirect impact on the natural environment. That is why we approach our business with great responsibility as demonstrated by the distinction awarded to PZU, which found itself on the podium in the Ranking of Responsible Companies 2020 in the banking, financial and insurance sector industry classification.

International resolutions also influence our approach to sustainable development. Care for the environment and stopping climate change have been emphasized in the Paris Agreement and in the UN Agenda setting Sustainable Development Goals (SDGs). Recently, the European Union has undertaken comprehensive steps to encourage a low-carbon economy and sustainable development, for instance by implementing the European Green Deal intended to ensure achievement of climate neutrality in EU countries by 2050.

These and other documents are a road sign for us to roll out changes in our organization, to enable us to act in favor of sustainable development while giving consideration to environmental, social and best-in-class governance standards. We are keen on making our organization a trusted partner along the path to building a green economy.

This report, which I convey to you with pleasure also proves that we are doing our utmost in this field. It has been drafted in accordance with best market practices while taking into account GRI, IIRC and European Commission guidelines on non-financial reporting, providing for the disclosure of detailed climate-related data. To provide all stakeholders with access to the most extensive amount of information about us, nonfinancial reporting is improving and being expanded every year.

I believe that in our role as the largest Polish insurer that sets trends for the overall financial sector, and as a significant employer on the market, we will contribute to creating the best-in-class standards in our sustainable development activities.

Respectfully,

Beata Kozłowska-Chyła

President of the PZU Management Board, Supervisory Board Chairwoman of Bank Pekao, Supervisory Board Chairwoman of PZU Życie