Due to the changes taking place in the European climate policy as well as social and economic transformations (including in terms of resource efficiency), the energy sector is experiencing a fast rise in the impact of the broadly understood environment on its results and operations. The most important factors affecting the functioning of TAURON Group include regulatory transformations taking place at both the European as well as the national law levels.
Intense legislative processes on the part of the European Union bodies have been observed in recent years. The energy and the natural environment sectors are among the competence areas that are shared between the European Union and the Member States. Therefore, the majority of the EU’s activities in this area will have a significant impact on the operations of TAURON Group.
Recent years have demonstrated a very rapid pace of changes taking place not only in the regulatory environment, but also in the Group’s economic, macroeconomic or market environment. In particular, the following factors are observed:
- introducing further and tightening the existing regulations and requirements with respect to the environment protection and counteracting climate change (among others, Winter Package, Grid Codes, ETS Directive, BAT conclusions, European Green Deal, European Commission guidelines on climate impact reporting),
- increase in the volatility of the prices of electricity and related products,
- steadfast change of the energy mix towards low or zero emission electricity generation sources,
- development of the distributed and prosumer energy sector model,
- advancing integration of the European electricity markets,
- increase of the awareness of TAURON Group’s stakeholders regarding the environment protection and climate impact.
TAURON Group assumes that the above-mentioned trends will continue, aiming at a further transition towards an innovative and low-emission economy, and achieving, in the long run, climate neutrality as well as implementing circular economy in the European Union.
Due to the above, TAURON Group is actively monitoring both the regulatory environment, as well as the market environment, in order to prepare an action plan corresponding to the changing conditions for conducting market operations. In particular, the risk management system functioning in this respect at TAURON Group is geared towards implementing adequate and effective responses to possible threats, as well as towards the possibility of taking advantage of emerging market opportunities.
THREE-LINE DEFENSE MODEL
In order to ensure safe functioning of the organization, the so-called three-line defense model is in place at TAURON Capital Group and it constitutes an internal control system. It includes:
- as part of the first line of defense – functional control performed by:
- lower and middle level management,
- the Group’s other personnel,
- as part of the second line of defense – independent control performed by the following functions:
- risk management,
- compliance assurance
- safety assurance,
- as part of the third line of defense:
- institutional control performed by the internal audit.
The results of the Internal Audit Team’s activities are reported directly to the senior management and the Audit Committee of the Supervisory Board.
TAURON Capital Group’s three-line defense model
