Climate Change Data

CD PROJEKT S.A.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:323,203 tCO2e (market-based) / 322,527 tCO2e (location-based)
Scope 1 Emissions:27 tCO2e
Scope 2 Emissions:1,686 tCO2e (market-based) / 1,644 tCO2e (location-based)
Scope 3 Emissions:320,856 tCO2e (market-based) / 320,856 tCO2e (location-based)
Renewable Energy Share:2.9%
Total Energy Consumption:11,420 GJ
Water Consumption:6,040 m3
Waste Generated:8.28 tons
Carbon Intensity:Emissions per employee (location-based): 1.44 tCO2e/person in 2022; Emissions per m2 of space used (location-based): 0.12 tCO2e/m2 in 2022

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced Scope 1 GHG emissions by 27% (10 tCO2e reduction) in 2022 compared to 2021.
  • Installed 328 photovoltaic panels with a total capacity of 100 kWp, generating 92.8 MWh of electricity in 2022.
  • Implemented an Environmental Policy.

Social Achievements

  • Launched the first edition of the “Girls in the Game!” mentoring and scholarship program.
  • Organized the 4th edition of the Promised Land Art Festival.
  • Decreased employee turnover rate by nearly 6% to 14.3% in 2022 compared to 2021.
  • Increased the share of women in the workforce to 32% in 2022.

Governance Achievements

  • Created a separate ESG team within Investor Relations.
  • Adopted an Anti-corruption Policy.
  • Instituted a new whistleblowing system.
  • Updated the existing whistleblowing system.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Increase employee engagement score to at least 75% by 2025.
  • Improve team diversity by 2023.
  • Submit to EMAS certification by 2023.
  • Reduce carbon footprint in Scope 2 by expanding renewable energy infrastructure by at least 40% and modernizing IT infrastructure by 2023.

Environmental Challenges

  • Risk associated with availability and recruitment of specialists
  • Risk associated with departure of team members
  • Risk of noncompliance with employment regulations
  • Risk of facing regulatory and market pressure to undertake activities related to environmental and climate protection
  • Risk of temporary restriction of access to distribution channels
  • Cybersecurity risks
  • Risk of unavailability of IT infrastructure or service
  • Risk associated with processing personal data
  • Risk associated with entering new market segments
  • Risk associated with intellectual property rights
  • Risk related to collaboration with key suppliers
  • Risk associated with focusing on a limited number of projects
  • Risk of failure to meet production goals
Mitigation Strategies
  • Implemented a Risk Management Procedure.
  • Established a Risk Management Committee.
  • Improved working conditions and compensation packages to reduce employee turnover.
  • Adopted the CD PROJEKT Group Information Security Policy.
  • Implemented a formal CD PROJEKT S.A. Compliance Management Policy.
  • Introduced a new whistleblowing system.
  • Developed procedures which are part of an environmental management system.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Screening suppliers regarding quality, environmental and social aspects.

Climate-Related Risks & Opportunities

Physical Risks
  • Heavy rainfall
  • Heat waves
  • Water stress
  • Sea level change
  • Electrical outages
Transition Risks
  • Increased energy prices
  • Increased product prices
  • Additional financial liabilities related to EU climate regulations
  • Additional non-financial reporting obligations
  • Penalties for failing to observe environmental regulations
  • Increased expenditures to upgrade equipment
  • Reduced interest in energy-intensive games
  • Increased expenditures due to changes in logistics
  • Loss of key technology partners
  • Loss of customers due to insufficiently ambitious approach to climate change
  • Greenwashing accusations
Opportunities
  • Increased reliance on less energy-intensive cloud solutions
  • Decreased expenses due to improved energy efficiency
  • Industry leadership in climate-friendly approach
  • Deploying eco-friendly solutions at new buildings

Reporting Standards

Frameworks Used: GRI Universal Standards, SASB

Certifications: Null

Third-party Assurance: Deloitte Audyt Sp. z o.o. sp. k.

UN Sustainable Development Goals

  • Not disclosed

Goals aligned with the UN’s 2030 Agenda for Sustainable Development.

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:337,938 tCO2e/year (location-based) or 337,968 tCO2e/year (market-based)
Scope 1 Emissions:28 tCO2e/year
Scope 2 Emissions:1911 tCO2e/year (location-based) or 1941 tCO2e/year (market-based)
Scope 3 Emissions:335,999 tCO2e/year (market-based)
Renewable Energy Share:2.9% of total energy use
Total Energy Consumption:13,575 GJ/year
Water Consumption:7,252 m3/year
Waste Generated:10.69 tons/year
Carbon Intensity:0.11 tCO2e/m2 (location-based) or 0.11 tCO2e/m2 (market-based)

ESG Focus Areas

  • Reducing greenhouse gas emissions in the value chain and implementing energy-efficient solutions
  • Strengthening the DEI culture at CD PROJEKT by, among others, fostering inclusive leadership
  • Offering a competitive salary package and equal opportunities for advancement
  • Ensuring comfort at work and taking care of work-life balance
  • Building engaged communities around our products
  • Implementing accessibility features in our games
  • Responsible communication and marketing of products
  • Involvement in community initiatives and cooperation with NGOs
  • Management and protection of intellectual property
  • Business ethics
  • Cybersecurity and data protection
  • Transparency in relations with business partners

Environmental Achievements

  • Obtained an EU EMAS certificate in October 2023, becoming the first gaming company in Poland to do so.
  • Increased the generating potential of solar energy infrastructure by 31.68 kWp (31.06% increase).
  • Modernized IT infrastructure, resulting in a 2.8% reduction in electricity consumption.

Social Achievements

  • Increased team engagement score to 72% (a 2pp increase compared to the end of 2022).
  • Conducted a survey of career development barriers faced by female employees, resulting in recommendations and action points.
  • Published the “Fair Play Code for Suppliers” to improve supplier vetting.
  • Initiated educational activities in business ethics.

Governance Achievements

  • Established an ESG Management Group comprising top managers.
  • Improved the process of vetting business partners and published a Supplier Code of Conduct.
  • Increased the number of team members who received whistleblower, anti-corruption, and GDPR training.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Increase employee engagement score to at least 75% by 2025.
  • Maintain gender pay gap at a maximum of 2%.
Short-term Goals:
  • Reduce Scope 1 and 2 GHG emissions by 42% by 2030 (compared to 2023 baseline).

Environmental Challenges

  • Team-related risks associated with recruitment, retention, and structuring of teams.
  • Environmental and climate-related risks related to protection of the natural environment and the climate.
  • Governance-related risks of unavailability of IT infrastructure or services, cybersecurity risk, regulatory compliance, cooperation with key suppliers, and intellectual property rights.
Mitigation Strategies
  • Updated Risk Management Procedure with enhancements, including a new risk monitoring system based on Key Risk Indicators (KRI).
  • Implemented actions to address climate change risks (see Environment section for details).
  • Developed and implemented the SpeakUp! Policy for Preventing Irregularities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Fair Play Code for Suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Floods, power outages, heat waves
Transition Risks
  • Increased energy prices, stricter environmental regulations, need to upgrade equipment, reduced interest in energy-intensive games.
Opportunities
  • Increased reliance on cloud solutions, improved energy efficiency, leadership in climate-friendly approach, eco-friendly solutions in new buildings.

Reporting Standards

Frameworks Used: GRI Universal Standard, SASB, TCFD

Certifications: EMAS

Third-party Assurance: Deloitte Assurance Polska spółka z ograniczoną odpowiedzialnością sp. k.

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed