Corporate Social Responsibility Code of Conduct TAURON Group’s business model assumptions
102-16, 102-4, 102-6, 102-7

TAURON Capital Group is a fully integrated energy group whose business model coincides with the value chain: from mining, through generation, trading, and distribution, up to the supply to the final consumers, supplemented with the innovations ecosystem and the development of new businesses, closely connected with its activities in the energy sector.

The Group is made up of autonomous commercial law companies. The Group is led by TAURON Polska Energia S.A. (with its registered office in Katowice) as the parent entity. TAURON Group is one of Poland’s largest electric utilities.

The Group’s business model overlaps with the value chain: from mining and procuring thermal fuel, through generation, electricity and heat trading and distribution, up to the supply to the final consumers. In response to the current and future challenges, the value chain has been expanded by adding the innovations ecosystem and the so-called new businesses that are set up at the interface between the innovations ecosystem and the core operations segments (lines of business). They also cover the gradual transition from the operations linear cycle to the closed cycle (circle) operations, which contributes to implementation of the circular economy assumptions.

The figure presents lines of business as part of the value chain in terms of their contribution to TAURON Group’s EBITDA.

Value chain’s share in TAURON Capital Group’s EBITDA in 2020

TAURON Capital Group is Poland’s largest electricity distributor. Using its more than 241,000 km long distribution grids, it delivers electricity to more than 5.7 million consumers, in the area that covers approx. 57,900 km2, which constitutes more than 18.5 percent of Poland’s territory.

TAURON’s electricity distribution volume came in at 50.26 TWh in 2020.

In terms of electricity supply to the final consumers TAURON Group is number two, with its supply volume of approximately 28.5 TWh per annum.

On the other hand, in terms of production volume TAURON Group is the third largest electricity generator on the Polish market, with the annual net production of 11.4 TWh and installed capacity of 6.1 GW.

To produce electricity the Group’s conventional installations are using hard coal and biomass, renewable energy source units are utilizing the energy of wind and the kinetic energy of falling water.

TAURON Capital Group is managing 9 wind power plants and 34 hydroelectric power plants, and it is operating 1,180 km of district heating networks. The construction of a 5 MW photovoltaic power plant on TAURON Group’s post-industrial land in Jaworzno was completed in 2020 and the construction of solar farms with a total capacity of 6 MW in Choszczno is in the final stage.