ESG at PGL: sustainable growth strategy
– aiming for the future
The Polish Aviation Group (Polska Grupa Lotnicza – PGL) does not perceive sustainable growth to be a mere addition to its activity. Instead, it considers it one of its main strategic objectives. Being a leading aviation group in Central and Eastern Europe, PGL not only reacts to the changing regulations or market expectations, but also actively shapes the future of the entire industry. That is precisely the principle the 2025 – 2027 Sustainable Growth Strategy of the PGL Group, also known as the ESG Strategy, is based on. It sets forth ambitious goals concerning the organisation’s environmental, social and governance-related responsibilities.
The ESG Strategy of our Group was adopted on 28 July 2025. It serves as a response to the needs of our stakeholders: employees, passengers, business partners and public institutions. It spans a period of two years, but some of the initiatives are planned for a longer period of time, until 2030, as this is the perspective we need to take into account under EU regulations when reporting our ESG achievements. We are deeply committed to getting ready for and complying with the future requirements
Radosław Stępień,
CEO, PGL
What does ESG stand for?
ESG (Environmental, Social, Governance) is a framework allowing business operators to conduct their activity in a responsible and sustainable manner. Over the past few years, the approach evolved from a catch-phrase to a key element of each company’s business strategy. At PGL, it not only serves as a tool allowing the company to comply with EU directives. It is also considered a clear declaration confirming that the organisation is willing to create value in a responsible, transparent and future-oriented manner.
Surveys conducted by LOT Polish Airlines show, for instance, that as many as 58% of passengers care about the origin and ingredients of the products offered onboard, while 45% expect the airline to take action in order to protect the climate. This shows that the Strategy is also a response to the changing environment and market requirements.
“Three basic pillars of the ESG strategy may be distinguished. The first one is related to taking care of the environment, i.e. minimising the impact we exert on the planet. The ultimate goal is to transition to renewable energy and to implement the principles of circular economy. The second pillar requires us to care for people and the society. We need to take into consideration the wellbeing of our employees, for instance by implementing anti-discriminatory policies. The third pillar is related to governance” – explains Stępień.
Preparation of the Strategy
The process of preparing the strategy was divided into several stages and involved a wide range of experts, representatives of PGL Group companies and outside partners. The ultimate objective was to draw up a document that complies with regulatory requirements, while simultaneously responding to the real-world needs of the organisation and its environment. Double materiality assessment (DMA) has been conducted to identify issues of importance when it comes to the impact PGL exerts on the environment, and vice versa.
“Each company approaches ESG in a slightly different manner. This stems from different sizes and varying areas of activity of individual organisations. When we look at emissions, LOT Polish Airlines plays the most important role here, as it accounts for 96 – 97% of the emissions generated by the entire Group. So, that is the most important environmental aspect. However, when we are dealing with “S” and “G” pillars of the strategy (standing for “social” and “governance”, respectively), we notice much room for activities that may be undertaken by every single company making up our Group, and by the PGL Group as a whole” – adds Jakub Kowal, Strategy and Projects Specialist, PGL Strategy Office.
We have assessed the organisation’s ESG maturity by analysing the status quo, the existing gaps and opportunities, and by comparing the results with those of other aviation groups, such as Lufthansa, Turkish Airlines or Air France-KLM. Approximately a dozen strategic workshops with the participation of the Group’s companies have been held, allowing us to determine overarching objectives and specific initiatives to be pursued in the years to come.
Each initiative has been assigned to a specific area, with its costs, time horizon and success metrics clearly defined. The PGL Group ESG Strategy is closely linked to other documents of strategic significance in place within the Group, including the Decarbonisation Strategy that complies with SBTi objectives.
“It was the task of the PGL Strategy Office to implement and coordinate the entire project. Currently, the process of operationalising the document is taking place. We have proposed to establish a Sustainable Growth Office within the structures of PGL, with the recruitment process for this unit currently being under way. Once it is completed, the office and its experts will be coordinating the individual activities, including strategic initiatives, and will be preparing the organisation to comply with non-financial reporting requirements” – stresses Kowal.
Recommendations have been issued to each company to appoint or recruit staff members in charge of ESG. The final solutions will depend, however, on the decisions taken by the Group’s individual companies. Coordinators from the subsidiaries will be responsible for collecting ESG reporting data.
EU regulatory requirements
PGL’s ESG Strategy has been designed to comply with EU’s current and future sustainability-related requirements. Its implementation allows the Group not only to ensure legal compliance, but also to secure competitive advantage that is based on transparency and accountability.
The strategy specifies, inter alia, that we should get ready to comply with the European Sustainability Reporting Standards (ESRS) and the CSRD directive that has been transposed into the Accounting Act. It also mentions that an IT reporting system and ESG management structures should be implemented, that activities which are aligned with sustainable growth criteria should be identified and classified, and that a due diligence system for the supply chain should be introduced.
Key initiatives
The document is based on three key pillars. Care for the natural environment is one of them. The PGL Group minimises its impact on the planet through such initiatives as: electrification of its vehicle fleet, development of the charging infrastructure, investing in sustainable aviation fuels (SAF), modernisation of the fleet in compliance with the decarbonisation goals, installing PV panels, switching to renewable energy sources and promoting a circular economy.
“We will be electrifying both the fleet of our cars and vehicles working on the apron. Furthermore, we will be also switching to hydrogen-powered vehicles, as two companies – LSAS and Orlen, cooperating under the HySPARK project, will be testing hydrogen buses at Chopin Airport. The tests will be first of this kind in the airport’s history. I would like to use this example to explain that PGL is not imposing any solutions, and the methods to reduce emissions will be selected by the individual companies” – notes Kowal.
“SAF is an issue that is of the greatest significance for LOT Polish Airlines, of course. In 2030, SAF should account for 10% of the entire fuel volume, but the current demand of the majority of EU airlines is growing faster than production capacities are, which translates into higher purchase prices. This is one of the key challenges the aviation industry is facing” – adds Kowal.
Caring for people and the society is the second pillar of the strategy. The Group strives to boost the security, growth and wellbeing of its employees and associates by offering ESG competence-building programmes, analysing the pay gap, implementing anti-discriminatory policies, conducting satisfaction surveys and supporting diversity.
“Regular satisfaction surveys conducted among PGL Group employees and associates are another important social aspect of our strategy. Relevant forms will be prepared and the survey will be conducted next year. A wide range of regulations preventing discrimination at the workplace are also important in this respect. We will be also trying to ensure gender parity at managerial positions, but the skills of our future employees will obviously continue to be the decisive factor in the years to come” – underlines Kowal.
The third pillar is concerned with responsible governance. The PGL Group will keep developing its ESRS solutions and ESG management structures. It will also conduct training for suppliers, monitor lobbying efforts and implement a supply chain due diligence system.
“The first governance-related project we intend to complete this year consists in implementing an IT tool for ESG reporting. It is a key element that will allow us to improve the data collection process. We have of course introduced the ESG management model in the PGL Group and we are in the process of establishing a relevant office. This process also involves activities aiming to comply with the EU’s corporate sustainability due diligence directive” – explains Kowal.
Summary
The social aspect of the PGL Group’s ESG Strategy is of key importance as well, as it impacts a wide range of stakeholders. For passengers, it translates into a higher quality of service, greater transparency and environmentally friendly solutions used aboard our planes. For employees, it means a safer working environment, equal growth opportunities and caring for their wellbeing. Our business partners may take advantage of clearly defined cooperation principles and shared ESG standards, while local communities benefit from reduced emissions and infrastructure investments. Future generations, in turn, will value responsible decisions that build a more sustainable tomorrow.
The Strategy comprises more than 100 different initiatives to be pursued between 2025 and 2030. Its implementation is coordinated by the PGL Strategy Office. In the near future, the task will be taken over by the Sustainable Growth Office, and ESG coordinators will be appointed in the Group’s companies. A roadmap dividing the activities into periodic, continuous and one-off undertakings has been drawn up as well.
