For over a decade, the Bank has been monitoring and publishing data on the level of greenhouse gases emissions. In its latest business strategy the Bank has pledged to reduce emission of greenhouse gases in Scope 1 and 2 by 50% in 2022 relative to 2020 and also to strive for climate neutrality by 2027 in Scope 1 and 2 and by 2050 in Scope 3.
More about ESG issues in the Bank Millennium Group's strategy for 2022-24
Below we present information on the emissions in 2021 (compared to 2020) and information on the methodology of the calculations made.
| Scope of GHG emissions | Emission category | Emissions 2021 [Mg CO2e] |
Emissions 2020 [Mg CO2e] | difference |
|---|---|---|---|---|
| Scope 1 | Combustion in mobile sources | 1,832 | 1,840 | -0.4% |
| Combustion in stationary sources | 390 | 405 | -3.8% | |
| Total: Scope 1 | 2,222 | 2,246 | -1.0% | |
| Scope 2 | Purchase of heat | 8,291 | 9,917 | -16.4% |
| Purchase of electricity (location-based) | 14,496 | 16,820 | -13.8% | |
| Purchase of electricity (market-based) | 4,677 | 11,517 | -59.4% | |
| Total: Scope 2 location-based | 22,786 | 26,737 | -14.8% | |
| Total: Scope 2 market-based | 12,968 | 21,434 | -39.5% | |
| Scope 3 | Cat. 3 energy and fuel-related emissions (not included in scope 1 and 2) (location-based) | 4,376 | 3,120 | +40.2% |
| Cat. 3 energy and fuel-related emissions (not included in scope 1 and 2) (market-based) | 1,902 | 3,120 | -39.0% | |
| Cat. 6. Business travel | 91 | 127 | -28.4% | |
| Total: Scope 3 location-based | 4,467 | 3,247 | +37.6% | |
| Total: Scope 3 market-based | 1,993 | 3,247 | -38.6% | |
| Total: Scope 1, 2 (location-based), 3 | 29,476 | 32,230 | -8.5% | |
| Total: Scope 1, 2 (market-based), 3 | 17,183 | 26,927 | -36.2% | |
Total (market-based) emissions generated by Bank Millennium in 2021 were 17,183 Mg CO2e, 36.2% lower than in 2020. In 2021, Scope 1 direct emissions accounted for only approx. 12.9% of Bank Millennium's total emissions, where 10.7% came from mobile source combustion and 2.3% came from stationary source combustion. In 2021, 77.3% of Bank Millennium's total emissions came from indirect Scope 2 (location-based) emissions, where 49.2% of Scope 2 emissions were emitted through the consumption of purchased electricity and 28.1% came from the consumption of purchased heating energy. In 2021, indirect Scope 2 (market-based) emissions accounted for 75.5% of Bank Millennium's total emissions, of which 27.2% of Scope 2 emissions were emitted through the consumption of purchased electricity and 48.2% came from the consumption of purchased heat. In 2021, the share of indirect Scope 3 (market-based) emissions was 11.6%, where 11.1% were energy and fuel-related emissions (not included in Scope 1 and 2, such as electricity and heating generation, transmission losses, or emissions from the fuel generation process), and 0.5% were business travel. Emissions reductions occurred in all categories with the exception of energy and fuels emissions not included in Scope 1 and 2 (location-based). The published DEFRA emission factor for 2021 for this category was doubled, therefore emission level is increased, despite the decrease in electricity consumption.
| Scope of GHG emissions | Emission category | Emissions 2021 [Mg CO2e] | Emissions 2020 [Mg CO2e] | difference |
|---|---|---|---|---|
| Scope 1 | Combustion in mobile sources | 2,076 | 2,130 | -2.5% |
| Combustion in stationary sources | 424 | 471 | -9.9% | |
| Total: Scope 1 | 2,500 | 2,601 | -3.9% | |
| Scope 2 | Purchase of heat | 8,881 | 11,191 | -20.6% |
| Purchase of electricity (location-based) | 16,433 | 19,096 | -13.9% | |
| Purchase of electricity (market-based) | 5,302 | 12,985 | -59.2% | |
| Total: Scope 2 location-based | 25,313 | 30,287 | -16.4% | |
| Total: Scope 2 market-based | 14,183 | 24,176 | -41.3% | |
| Scope 3 | Cat. 3 energy and fuel-related emissions (not included in scope 1 and 2) (location-based) | 4,966 | 3,565 | +39.3% |
| Cat. 3 energy and fuel-related emissions (not included in scope 1 and 2) (market-based) | 2,082 | 3,565 | -41.6% | |
| Cat. 6. Business travel | 91 | 127 | -28.4% | |
| Total: Scope 3 location-based | 5,057 | 3,691 | +37.0% | |
| Total: Scope 3 market-based | 2,173 | 3,691 | -41.1% | |
| Total: Scope 1, 2 (location-based), 3 | 32,871 | 36,580 | -10.1% | |
| Total: Scope 1, 2 (market-based), 3 | 18,856 | 30,469 | -38.1% | |
Total (market-based) emissions generated by the Bank Millennium Group in 2021 amounted to 18,856 Mg CO2e, 38.1% lower than in 2020. In 2021, 77% of Bank Millennium Group's total emissions came from indirect Scope 2 (location-based) emissions, where 50% of Scope 2 emissions were emitted through the consumption of purchased electricity and 27.02% came from the consumption of purchased heating energy. In 2021, indirect Scope 2 (market-based) emissions accounted for 75.22% of Bank Millennium Group's total emissions, of which 28.12% of Scope 2 emissions were emitted through the consumption of purchased electricity and 47.1% came from the consumption of purchased heat. In 2021, Scope 1 direct emissions accounted for about 13.3% of Bank Millennium Group's total emissions, where 11.05% came from mobile source combustion and 2.25% came from stationary source combustion. In 2021, the share of indirect (market-based) Scope 3 emissions was 11.5%, where 11% was energy and fuel-related emissions (not included in Scope 1 and 2), 0.5% was business travel. Emissions reductions occurred in all categories with the exception of energy and fuels emissions not included in Scope 1 and 2 (location-based). The published DEFRA emission factor for 2021 for this category was doubled, therefore emission level is increased, despite the decrease in electricity consumption.
Due to the fact that for electricity purchased directly by the Bank, Guarantees of Energy Origin were purchased in amount of 16,418,875 kWh, emissions related to purchase of electricity in Bank Millennium were reduced by 68% [9,819 t CO2e] and in Bank Millennium Group by 68% [11,131 t CO2e], comparing calculation according to the location-based method (where average indicator for Poland is used) to the market-based method (where the energy seller is known, the seller-specific emission factor is used).
| Scope of GHG emissions | Emission volume/mPLN of revenue 2021 [Mg CO2e/mPLN] |
Emissions volume/mPLN of revenue 2020 [Mg CO2e /mPLN] |
difference |
|---|---|---|---|
| Scope 1, 2 (market-based) | 4.18 | 5.95 | -30% |
| Scope 1, 2 (market-based), 3 | 4.73 | 6.77 | -30% |
| Scope of GHG emissions | Emissions volume/employee [Mg CO2e/employee] |
Emissions volume/employee [Mg CO2e/employee] |
difference |
|---|---|---|---|
| Scope 1, 2 (market-based) | 2.29 | 3.31 | -31% |
| Scope 1, 2 (market-based), 3 | 2.60 | 3.76 | -31% |
| Scope of GHG emissions | Emission volume/mPLN of revenue 2021 [Mg CO2e/mPLN] |
Emission volume/mPLN of revenue 2020 [Mg CO2e/mPLN] |
difference |
|---|---|---|---|
| Scope 1, 2 (market-based) | 4.36 | 6.37 | -32% |
| Scope 1, 2 (market-based), 3 | 4.92 | 7.25 | -32% |
| Scope of GHG emissions | Emissions volume/employee [Mg CO2e/employee] |
Emissions volume/employee [Mg CO2e/employee] |
difference |
|---|---|---|---|
| Scope 1, 2 (market-based) | 2.36 | 3.57 | -34% |
| Scope 1, 2 (market-based), 3 | 2.66 | 4.07 | -34% |
The greenhouse gas report was prepared in accordance with the Greenhouse Gas Protocol (GHG Protocol), according to the revised version of: 'A Corporate Accounting and Reporting Standard revised edition, GHG Protocol Scope 2 Guidance Amendment to the GHG Protocol Corporate Standard’ and 'Corporate Value Chain (Scope 3) Accounting and Reporting Standard, Supplement to the GHG Protocol Corporate Accounting and Reporting Standard’.
GHG emissions were calculated separately for Bank Millennium (BM) and Bank Millennium Group (GBM), which includes all the other companies (Millennium Leasing sp. z o. o., Millennium Dom Maklerski, Millennium TFI S.A., Millennium Goodie sp. z o. o, Millennium Bank Hipoteczny S.A., Millennium Service sp. z o.o., Millennium Telecommunication Services sp. z o.o. and Piast Expert sp. z o.o. in liquidation, Lubuskie Fabryki Mebli S.A. in liquidation, which do not generate emissions). The operational control criterion was used as organizational boundaries. Bank Millennium has 100% operational control in the listed companies generating GHG emissions.
The scope of emissions reporting includes Scope 1 direct emissions (according to the GHG Protocol) from combustion of fuels in own or controlled energy sources: combustion in stationary sources – natural gas and fuel oil heating boilers and combustion in mobile sources – company vehicles (LPG, gasoline, diesel), scope 2 indirect emissions from the generation of purchased electricity and heating energy consumed, and other scope 3 indirect emissions related to energy and fuels (not included in scopes 1 and 2) and emissions generated during business travel in modes of transportation not owned or controlled by the company.
In order to increase the quality of the carbon footprint calculations, changes were made to the methodology for 2020 and 2021 by systematising the emission factors used, performing calculations for electricity according to the location-based (using the average emission factor for Poland) and market-based (using emission factors specific to energy sellers) methods, and changing the calculation method for business trips (changing the data source from estimates of the distance travelled for air and rail trips to the distance between the city of the start and end of the trip). Additionally, the data for calculations was updated based on actual values from invoices, including invoice corrections for electricity) (available after the date of the previous report), which related to electricity consumption and district heating. There were no biogenic emissions in the organization. Total CO2 emissions (market-based) for Bank Millennium were (in tonnes) 17,167, CH4: 0.16 and N2O: 0.04, and for Bank Millennium Group respectively: 18,838, 0.18 and 0.05. 2020 was selected as the base year due to the application of the updated calculation methodology for that year, and because it was the first full year after the acquisition of Euro Bank.
Fuel and energy consumptions are shown in the tables for Indicator [GRI 302-1]. Business travel data is shown in the table, on the page Reduction of resource consumption.
Diesel, gasoline, LPG – Fuel consumption data comes from a compilation of fuel card reports. Fuel consumption in Millennium Bank Hipoteczny S.A. was estimated on the basis of fuel costs.
Natural gas – Gas consumption figures for Bank Millennium and Bank Millennium Group were estimated on a cost basis.
Fuel Oil – Consumption data comes from invoices.
Electricity – Consumption data comes from invoices and was partially estimated based on energy costs. In 2020, invoice data represented 68% of the estimated total energy consumption in Bank Millennium and 69% in Bank Millennium Group. In 2021, 65% and 68%, respectively.
Heating (district) – Consumption data comes from invoices and was partially estimated based on actual costs. In 2020, invoice data represents 7.7% of the estimated total cost of heat consumption in Bank Millennium and 8.2% in Bank Millennium Group. In 2021, invoice data represents 9.5% of the estimated total cost of heat consumption in Bank Millennium and 11% in Bank Millennium Group.
Air travel – emissions were calculated based on reports received from travel agents (distance travelled). In 2021, the travel agent arranged 98% of the flights (by flight cost), so the emissions calculated by the travel agent were approximated to 100% of the emissions in 2020 and 2021.
Rail transportation – For Bank Millennium, data on distance travelled was obtained from reports prepared by the travel agency. In 2021, the travel agent arranged 75% of the travel by train (based on travel costs), so the distance calculated by the travel agent was approximated to 100%. Few train trips by employees of other Group companies were also included.
Road transport (bus, taxi, private cars) – For Bank Millennium the distance travelled was estimated based on actual costs. The distance covered by private cars was calculated on the basis of costs including a flat rate per kilometre (so-called kilometre allowance).
Fuels (combustion in mobile and stationary sources), WTT indicators, business travel – DEFRA 2020, version 1.3 (published 31.07.2020), DEFRA 2021, version 1, CH4 and N2O emissions converted from AR4 to AR5 (CH4 25 to 28; N2O 298 to 265).
Electricity location-based – 2019 electricity benchmarks published in December 2020 (benchmark for 2020 data), 2020 electricity benchmarks published in December 2021 (benchmark for 2021 data).
Electricity market-based –
(benchmark for 2020 data)
(benchmark for 2021 data)
The above data, in accordance with the regulations, are published after the end of the year by the end of March of the following year, which is after the time the Bank prepares the report. Therefore, the most current available indicators at the date of the calculation are used in the calculations.
Heat – URE (Energy Regulatory Office); Report “Heating power industry in numbers – 2019” – the latest available document used in the emissions calculations.
Bank Millennium attaches great importance to reviewing and reducing the level of emissions from the properties that it occupies in connection with its activities. In 2022, all electricity purchased by the Bank will be covered by certificates of origin from renewable energy sources. The Bank introduces environmentally friendly solutions in its three head offices (in Warsaw, Wrocław and Gdańsk). In 2021, the Bank conducted an energy audit of its premises.
The head office relocation project in Wrocław started in Q4 2020 and was divided into two stages. Stage one involved the consolidation of four office buildings into one existing location – this optimized the office space, reducing it by 3,200 m2, resulting in reduced utility consumption and lower electricity demand. This ultimately translated into a reduction in carbon footprint expressed in tonnes of CO2 equivalent equal to 959 tC02e/year, representing a 30% reduction in carbon dioxide emissions. The effect of the reductions presented is evident in the data presented in this report.
Stage two of the project involved relocation to the new head office, to which employees moved in mid-November 2021. It is located in a building with a LEED GOLD certificate confirming its energy efficiency and sustainability. The Bank approached the project comprehensively, and environmental solutions were implemented at every stage of the interior design and furnishing project, starting with the introduction of led lighting with motion sensors and a system using daylight supply in the office, which significantly improves the comfort of employees. The wall cladding and part of the ceilings were made of wood wool, improving acoustics, but most importantly coming from sustainable sources, as confirmed by the international Blue Angel certification. The Bank’s main objective was to use solutions that have a high recycling rate – for example, the selected carpet is made from 59% recycled materials and some of the upholstery is 100% recycled. For the rest of the equipment, wooden materials were chosen, raw natural plywood/mdf from certified cultivation, in natural colours, thus reducing the use of artificial varnishes and paints. All purchased equipment has an extended warranty period, so that it will serve employees for many years. When selecting products, preference was given to those manufactured in Poland and locally, e.g. decorative lamps made of cardboard were manufactured in Wrocław. The project was accompanied by biophilic concept, which means that there is a lot of plants in the new office space, improving both employee well-being and air quality. The equipment from the previous headquarters, in turn, was auctioned off to employees in keeping with the „Zero Waste” concept, giving it a second life. We estimate that this phase will further reduce the carbon footprint by 2,016t CO2e, representing 92% of the absolute reductions achieved both through the purchase of renewable electricity certificates of origin, but also through the green solutions described above. The full results of this phase will be reflected in the 2022 Bank Millennium Group ESG report.
The above shows the project summary according to the GHG Protocol standard. A Corporate and Reporting Standard, revised edition, March 2004. World Resources Institute and World Business Council for Sustainable Development. (Revisions and Amendments: Required gases and GWP values, February 2013), Scope 2 emissions calculation methodology: market-based approach (applying purchased electricity emissions rate by energy supplier rate) according to the GHG Protocol. Scope 2 Calculation Guidance. An amendment to the GHG Protocol Corporate Standard, 2015. World Resources Institute.
Total absolute reduction of the carbon footprint of Bank Millennium’s Head Office in Wrocław amounted to 2,976.25 t CO2e/year, which is a reduction of total emissions from utility consumption by 94.5%. Reductions in emissions from the consumption of: electricity were 99.5%, heat energy - 76%, water - 79% and wastewater production - 81%. The total reduction in emissions of 2,976 tons of CO2e/year is equivalent to the emissions of a passenger car circling the earth 362 times, a train journey of one person from Wrocław to Warsaw travelling 269,250 times or the annual electricity supply for 4,789 people.
Another example of investing in environmentally-friendly solutions is a model ecological Bank Millennium branch, which opened in Gdańsk in 2021. The branch was moved from an old building to a new one that meets strict environmental standards. The project considered the low emission ambitions already at an early planning stage. This was reflected both in purchasing decisions and in hiring an independent partner to calculate emission reductions in accordance with the Greenhouse Gas Protocol standard (Greenhouse Gas Protocol, A Corporate Accounting and Reporting Standard, revised edition, March 2004). The conscious choice of innovative, environmentally-friendly solutions in the new branch, combined with reduced consumption of energy and other utilities and the purchase of green energy (which is produced by wind power in a renewable energy source, as confirmed by guarantees of origin), has allowed us to reduce emissions by more than 70% compared to the previous location. For a single Bank branch, this means a reduction of nearly 39 tons of carbon dioxide equivalent per year, which is equivalent to supplying 62 Poles with electricity for the entire year. This is also how much 26 people would save by switching from cars to bicycles for a year.
Martyna Sarnik, Head of the retail branch in Gdańsk
The emissions data presented in the “Greenhouse gas emissions” section were calculated by independent third-party companies.
