Value creation model and relations among capitals

Social capital Value levers (driver)
Financial capital Financial capital
Human capital Human capital
Intellectual capital Intellectual capital
Natural capital Natural capital
Production capital Production capital
Social capital Social capital

Capitals as well as their mutual relations are constantly changing due to a number of factors, including. among others, changes in the market and regulatory environment. The implementation of the actions envisaged in the Group’s Strategy allows for a sustainable transition of the Group and increases the investment potential for the development of renewable energy sources. The effects of such activities are and will be visible in all capitals. The transition towards the zero and low emissions will also have an impact on each segment of the Group’s operations.

Financial capital is the basis for the efficient use and development of TAURON Group’s other capitals, the production capital in particular, it supports the development of intellectual capital and human capital and improves the efficiency of the use of natural capital.

Through the implementation of investment projects, TAURON Group is constantly increasing the potential of its production capital. The development of this capital is carried out using the best available technologies and reduces the impact of the Group’s business operations on climate and environment.

The use of modern technological and technical solutions improves and develops new competences in the intellectual capital, which also contributes to the development of the human capital, improves the use of the production capital and strengthens TAURON Group’s competitive position. The Group’s business operations, primarily coal mining as well as electricity and heat production using conventional sources, consume natural resources.

The overall business operations of TAURON Group, the provision of safe and stable electricity and heat supplies for its customers, continuously develops relations with the external environment (stakeholders), including the social stakeholders, which leads to an increase of the Group’s value.

Value creation model and relationships among capitals at TAURON Capital Group in 2020