The PGE Group conducts its activities and commercial relations in a transparent manner, based on internal procedures and strictly defined rules of cooperation with its business partners.
Standards in the process of planning and conducting purchases and selection of contractors are defined in PGE Group’s General Procurement Procedure, thanks to which the procurement process in the Group has been unified. All PGE Group companies that have adopted the PGE Group Code of Ethics are required to apply the procedure. Certain companies are also required to apply the public procurement regulations. Before a final decision is made on the selection of a contractor, documents are appropriately analysed and assessed to ensure that the supplier meets the requirements specified in a given tender procedure.
In 2021, changes were introduced to the PGE Group’s General Procurement Procedure, which increased the competitiveness of procurement procedures conducted at PGE Group. Due to the pandemic situation in the country, negotiations with potential contractors were held remotely. To meet the needs of internal customers, the Purchasing Department of PGE Polska Grupa Energetyczna S.A. organised workshops for the units responsible for administration and human capital management in order to increase procurement efficiency. Due to the shortage of certain products and materials in the market, PGE Group decided to both extend the deadline for the submission of bids and extend the deadlines for the performance of contracts. As a result of these actions, the level of competitiveness and purchasing efficiency increased, and the attractiveness of bids increased.
Provisions against money laundering have also been introduced into the internal regulations, as well as the evaluation of the contract performance.
In addition, regular online purchase planning meetings for the following year have been introduced with all PGE Group companies, during which guidelines related to the purchase plan are communicated and support is offered in the preparation and implementation of the purchase plan.
In 2021, the Central Anti-Corruption Bureau carried out an audit of PGE Group concerning the disbursement of funds and making purchases and the control mechanisms in place. The external audit body found no violations.
PGE's expectations towards its business partners
The principles governing cooperation with contractors are defined first of all in PGE Group’s Code of Ethics, which is a set of values and principles applicable in the entire PGE Group. Among other things, it defines PGE’s approach to building business partnerships.
In order to meet the expectations of contractors and business partners, PGE Group has developed the Good Procurement Practices in both Polish and English versions. This is a set of recommended attitudes and principles which should be followed by employees and potential business partners during tenders. The Good Procurement Practices also include the principle of „zero gifts” which covers the employees initiating the purchasing process (submitting a purchase application), members of committees and all persons participating in the process and persons executing contracts concluded as a result of the purchasing process.
PGE Group’s expectations towards its business partners have been laid down in the Code of Conduct for Business Partners of PGE Group Companies. Messages outgoing from PGE Group’s purchasing system to entities are bilingual and this is used as a form of communication. Innovative solutions are used in the bid evaluation rules, streamlining internal processes by automating them. Thus, paper and water consumption are reduced.
In the course of the purchasing process, contractors are informed of the need to familiarise themselves with the Purchasing System Regulations, which in 2021 was also published in English. The document defines the rules and procedures for using the purchasing system, the rules for submitting offers and other documents in purchase proceedings. Support for contractors is also provided:
a) Detailed Instructions for the use of PGE Group’s Purchasing System,
b) Contractor guidebook for PGE Group’s purchasing system,
available at pge-group/tenders in both Polish and English.
It is also important for PGE Group that contractors and subcontractors take measures to protect the environment, e.g. by specifying the carbon dioxide emissions (g/km) in the tender for passenger cars).
As part of procurement procedures, PGE Group promotes social clauses, e.g. employment based on a full-time contract, in particular in the following areas: security services, cleaning services, and repair and construction services. In procurement procedures conducted by PGE Group, the following aspects are always taken into account: a contractor’s lack of arrears in statutory payments (social insurance, taxes), possession of relevant insurance, permits, or certificates.
PGE Group’s General Procurement Procedure allows companies to place a contractor who fails to meet its obligations or does not perform a contract or refuses to sign a contract on a list of suspended contractors. This results in temporary suspension of cooperation with the contractor.
The contracting procedure is currently being revised, with the aim of simplifying the contracting process and its subsequent control.
PGE's procurement processes are fully transparent and compliant with the rules of competition. We are committed to providing our potential partners with the best possible information on cooperation opportunities. We demonstrate this, for example, by holding workshops for potential contractors for our investments. We have recently held workshops for the areas of district heating, distribution and offshore. In this way, we want to secure the widest possible range of partners for PGE, while at the same time putting into practice the idea of “leading in green change,” supporting local companies in their ability to participate in the energy transition. Meanwhile, since September PGE S.A.’s Purchasing Department has been running an information campaign in social media about the Group's procurement potential, the purchasing system and, above all, the values that guide us in conducting procurement processes.
Meeting the needs of business partners
W In a pandemic situation, it is particularly important to communicate efficiently and openly with current and potential business partners; therefore, during the period of total lockdown, PGE Group had a remote work system for all employees of the procurement team in order to carry out tasks on an ongoing basis and have constant contact with business partners and ensure continuity of work. Thanks to the digitalisation of the process, it became possible to conclude contracts with contractors remotely. PGE Group has also increased the flow of information to its contractors. Essential information on PGE Group’s cooperation with its business partners is posted on the company’s website and on the websites of PGE Group companies.
In purchase procedures conducted in 2021 by the PGE Group, 6 115 individual contractors submitted offers in the purchase system. As a result of the procedures, contracts were signed with 4 428 individual contractors. Nearly 100% of payments were paid to contractors within contractual deadlines.
Timely payments amounted to respectively:
|Company||% share of liabilities fully fulfilled on time towards all contractors|
|4||PGE Energia Odnawialna||96.79%|
|5||PGE Energia Ciepła||99.52%|
|7||PGE Dom Maklerski||97.38%|
This data proves that the PGE Group has a responsible approach to building business relations with its suppliers.
Code of conduct for business partners of PGE Group companies
The Code of Conduct for Business Partners of PGE Group Companies is a tool for communicating requirements regarding operating standards to suppliers and contractors of the PGE Group companies. This document presents in a transparent way minimum expectations from business partners of the PGE Group companies in terms of ethics and compliance with the law. Business partners are familiarised with this document during registration in the database of potential contractors of PGE Group companies. References to the document are also part of procurement documentation, and relevant provisions are included in contractual clauses. As of 2021, the obligation to apply contractual clauses has been introduced to PGE Group by including it within the general procedure for counteracting corruption in PGE Group.
The Code of Conduct for Business Partners of PGE Group Companies was amended in 2021, ensuring in particular that its provisions are consistent with the new strategy of PGE Group, amended Code of Ethics, and amended anti-corruption regulations.