Although threats to on-going activities have an impact on PGE's operating and financial results, strategic risks may be decisive when it comes to strategy implementation and the future of the entire organisation. Their identification is the key to ensuring PGE Group's sustainability.

Strategic risks identified by us include:

• Technological revolution – risk of technological change causing  the decrease of profitability of electricity and heat production in industrial scale sources and their distribution using grid assets owned by PGE Group
• Competition – risk associated with the development by competition of a product offering (also from outside the energy industry) that would decrease the Group's share of the energy market
• Forces of nature – risk associated with more frequent extreme weather events
• Workplace health and safety – risk associated with the occurrence of unexpected events bringing irrecoverable material losses or severe bodily harm or the death of people
• Cybersecurity – risk associated with intentional disruption of information processing and exchange IT systems used at PGE Group
• Human resources – risk associated with restricted availability of employees who are of key importance to PGE Group's processes
• Legal – risk of the instability of law outlining rules for the Group's operations
• Political – risk of changes in the vision for developing the energy sector
• Environmental restrictions – risk connected with stricter environmental restrictions applicable to electricity and heat production and conducting mining activities
• Macroeconomic – risk of negative change in economic situation and fluctuations of macroeconomic indicators having impact on the Group's activities