CD PROJEKT GROUP’S 2021
SUSTAINABILITY REPORT
CD PROJEKT Group’s 2021 Sustainability Report
2
Disclaimer
This English language translation has been prepared solely for the convenience of English-speaking readers.
Despite all the eorts devoted to this translation, certain discrepancies, omissions or approximations may
exist. In case of any dierences between the Polish and the English versions, the Polish version shall prevail.
CD PROJEKT, its representatives and employees decline all responsibility in this regard.
CD PROJEKT Group’s 2021 Sustainability Report
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Table of content
4 Letter from the CEO
5 About the Report
7 About the CD PROJEKT Group
19 Approach to sustainability in the CD PROJEKT Group
32 Social responsibility
33 Goals of the CD PROJEKT Group in the social area
34 Our approach to social responsibility
35 CD PROJEKT as an employer
51 Diversity and Inclusion
60 Health and well-being
66 Employer Branding
66 Charity
68 Membership in trade organizations and public aairs
69 Responsible governance and organization
70 Goals of the CD PROJEKT Group in governance and organization
71 Our approach to responsible governance and organization
72 Corporate bodies of CD PROJEKT S.A.
80 Values, compliance, ethical norms
81 Managing the RED 2.0 transformation
82 Communication with gamers
85 Communication with the capital market
86 We comply with the law
96 Environmental responsibility
97 Goals of the CD PROJEKT Group in the environmental area
98 Our approach to environmental responsibility
100 Key environmental indicators of the CD PROJEKT Group
109 Our products – environmental impact
112 Compliance with taxonomy of sustainable activities
115 Attachment 1. Compliance with the requirements of the Accounting Act in the scope
of non-financial disclosures
116 Attachment 2. Global Reporting Initiative Index (GRI)
121 Attachment 3. Sustainability Accounting Standards Board (SASB) Index
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GRI 10214
Dear stakeholders,
I hereby convey to you the CD PROJEKT Group’s Sustainability Report. This
is our first attempt at providing a thorough description of how we manage
ESG issues in the CD PROJEKT Group in accordance with the GRI reporting
standard, namely: environment (E), social (S) and (G) governance.
We spent the last year implementing important and expected changes
within the company, and besides that, we worked hard on further impro-
vements to Cyberpunk 2077 and totally new projects. In keeping with the
announcements we made when presenting the CD PROJEKT Group strategy
update, the transformation of the CD PROJEKT RED studio referred to as
RED 2.0 started in 2021. In addition to changes to streamline the game
production process in the spirit of being agile, we have taken an important
step towards the Group’s sustainability. For the first time in our history,
through internal workshops and surveys we have defined the top priority
non-financial areas that are crucial from the vantage point of long-term
development. For the first time we also stated our intended non-financial
objectives whose achievement will underpin the CD PROJEKT Group’s
business development in subsequent years.
In 2021 we undertook a series of actions focusing on our team - we placed particular emphasis on oering
the possibility of raising professional and personal skills, ensuring well-being and work comfort. In 2021
we acted to strengthen diversity and inclusivity because it is very important to us that every member of our
team feels respected and treated and paid fairly in the workplace notwithstanding age, gender or origin.
In 2021 we also commenced actions to measure and curtail our environmental impact.
This report, which I strongly encourage you to pursue, is our first step on the journey to governing the Group
in compliance with the rules of sustainability. I am confident that this is the only equitable direction for our
business, especially since the values on which this development is predicated – respect for everybody
around us - gamers, our employees, associates and business partners as well as the environment in which
we live, acting in compliance with the law and showing tolerance – have formed an integral part of our DNA
from the very inception of CD PROJEKT.
Respectfully,
Adam Kiciński
CD PROJEKT Group’s 2021 Sustainability Report
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About the Report
GRI 10210; GRI 10246; GRI 10247; GRI 10248; GRI 10249; GRI 10250; GRI 10251; GRI 10252; GRI 10253
In recognizing responsible governance and sustainable development as an indispensable factor contributing
to the further dynamic growth of CD PROJEKT S.A. (“CD PROJEKT”, “Company”) and the CD PROJEKT Group,
the Management Board of CD PROJEKT S.A. made the decision to prepare for the first time in the Group’s
history a Sustainability Report encompassing non-financial information for 2021 (“Report”). We voluntarily drafted
this report even though CD PROJEKT does not fulfill the criteria described in the Accounting Act
1
that impose
a duty on companies listed on Warsaw Stock Exchange S.A. to publish the non-financial information Statement
or a separate Report.
This Report comprehensively describes how CD PROJEKT and the CD PROJEKT Group manage (E) environment,
(S) social and (G) governance issues. The non-financial information is presented in accordance with the require-
ments of the accounting act, the Global Reporting Initiative international standard (GRI – 2016
2
) at the core level
and by using selected sectoral indicators established by the Sustainability Accounting Standards Board (SASB).
Information pertaining to compliance with the requirements of the accounting act and tables presenting
the GRI and SASB indicators can be found in attachments 1-3 to the Report.
Since 2018 the Company has reported selected data describing the non-financial aspects of its business
in the Management Board Reports on the Activity of CD PROJEKT S.A. and the CD PROJEKT Group.
This Report containing 2021 data is the first separate document devoted to these issues. The Report does
not reclassify indicators. Nor were there any changes made to reporting. Information pertaining to the
management of ESG issues in CD PROJEKT and the CD PROJEKT Group will be published annually
in conjunction with the publication of the CD PROJEKT Group’s annual report in the form of a separate
sustainability report or as part of an integrated report.
The information in the Report is presented in accordance with the facts as at 31 December 2021 unless
indicated otherwise.
Having regard for the nature of its business, which posits significant business and organizational independence
on the part of its member companies, in the vast majority of cases the CD PROJEKT Group does not have
policies and procedures implemented at the CD PROJEKT Group level that would be applicable to all of the
subsidiaries (unless indicated otherwise in the Report).
1 Accounting Act of 29 September 1994, Journal of Laws of 2021, item 217
2 including the updates in 2018 and 2020.
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Since CD PROJEKT, the holding company in the CD PROJEKT Group, accounts for 76% of all of the persons
employed in the Group, 95% of the CD PROJEKT Group’s assets and 78% of the consolidated revenue
in 2021, we have described how ESG issues are managed chiefly from the perspective of this Company
in the various sections.
In selected areas we have also presented information and data pertaining to the management
of various areas in GOG Sp. z o.o. (“GOG”) and in the overall Group. We are of the opinion that the other
Companies whose financial results the Company consolidates and that conducted operating activity at the
end of 2021, namely, CD PROJEKT Inc. and CD PROJEKT RED STORE sp. z o.o., do not satisfy the criterion
of materiality on account of the limited scale of their business in the context of this report unless indicated
otherwise.
The contents of this report have not undergone external verification.
The Investor Relations Department is responsible for coordinating and preparing the CD PROJEKT Group’s
2021 Sustainability Report. On issues related to this report please contact:
Investor Relations at CD PROJEKT S.A.
ir@cdprojekt.com
Registered seat:
CD PROJEKT S.A.
ul. Jagiellońska 74
03-301 Warsaw
IN THIS SECTION YOU WILL FIND THE FOLLOWING INFORMATION:
■ what the CD PROJEKT Group does and what games we have in our portfolio,
■ what values we are guided by in business,
■ what the ownership structure of CD PROJEKT is,
■ who manages the Company and who oversees it,
■ what our business model is,
■ what the CD PROJEKT Group’s growth strategy is.
CD PROJEKT Group’s 2021 Sustainability Report
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ABOUT THE
CD PROJEKT GROUP
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Basic information
GRI 1021; GRI 1022; GRI 1023; GRI 1024; GRI 1026; GRI 1027; GRI 10245; GRI 1031
The CD PROJEKT Group does business in the global video games industry. The business conducted under the
CD PROJEKT brand for more than twenty-seven years originally focused primarily on publishing and distributing
foreign video games in Poland
3
.
At present, the CD PROJEKT Group conducts operating activity in two key business segments: CD PROJEKT RED
and GOG.COM.
Click here and make yourself familiar with the history and key achievements of the CD PROJEKT Group
In the CD PROJEKT RED segment we produce and publish video games and accompanying products utilizing
the brands CD PROJEKT owns – The Witcher and Cyberpunk 2077, while as part of GOG.COM we conduct the
digital distribution of computer games using our proprietary GOG.COM platform and the GOG GALAXY app.
3 this business in the form of CDP.pl was spun o in 2014 from the CD PROJEKT Group
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OUR KEY PRODUCTS
SELECTED LICENSE PARTNERSHIPS
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ORGANIZATIONAL STRUCTURE OF THE CD PROJEKT GROUP
OWNERSHIP STRUCTURE
GRI 1025
The business conducted under the CD PROJEKT brand has been listed on Warsaw Stock Exchange S.A. since
2010
4
. 1 share gives the right to 1 vote at the General Meeting
5
.
Scheme 1 The shareholder structure of CD PROJEKT S.A. on 14 April 2022
4 In 2010, as a result of the investment agreement executed in 2009 by and between CDP Investment sp. z o.o.7 and Optimus S.A. and the
shareholders of the companies involved in these transactions, Optimus acquired a 100% equity stake in CDP Investment, while the then
shareholders of CDP Investment subscribed for shares in Optimus S.A. The formal merger of the two companies transpired in December 2010.
5 According to §25a of the Articles of Association of CD PROJEKT S.A. the rights of every one of the Company’s Shareholders are limited
in such a way that no shareholder may exercise more than 20% of the total number of votes at the General Meeting on outstanding
shares in the Company on the date of holding the General Meeting. The limitation on voting rights does not apply to an entity or entities
that achieve or exceed the threshold of 50% of the total number of votes in the Company solely as a result of acquiring shares under
a public takeover bid to buy all of the Company’s other shares.
Remaining shares
Adam Kiciński
Piotr Nielubowicz
Michał Kiciński*
Marcin Iwiński
Founders and
Management Board
members
*according to a notice filed on 26 May 2021
12.78%
10.36%
6.81%
4.02%
100 738 800
Total number of shares:
66.04%
CD PROJEKT S.A.
CD PROJEKT Co. Ltd.
(in liquidation)
CD PROJEKT Inc.
*
GOG sp. z o.o.
*
CD PROJEKT Store sp. z o.o.
*
100%
100% 60%
100%
100%
The Molasses Flood LLC
CD PROJEKT RED Vancouver Studio Ltd.
Spokko sp. z o.o.
100%
74%
*
Consolidated companies
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According to the status as of the publication date of this Report 35.35% of the shares in CD PROJEKT are held
by the founders and current Management Board Members of CD PROJEKT S.A., while the remaining 64.65%
of the shares represent the free float.
Our mission and values
GRI 10216
CORE VALUES
Quality as our top priority
Passionate team as our greatest strength
Tolerance, fairness and openness at our heart
Independence
Gamer-centric approach
MISSION
To create revolutionary story-driven RPGs, which
go straight to the hearts of gamers
from around the world
To be counted among the world’s top three
video game developer
To ensure a lasting place for our brands
in the global popular culture
VALUES AND CULTURE
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Management Board and Supervisory Board
COMPOSITION OF THE CD PROJEKT MANAGEMENT BOARD
Scheme 2 Seniority in the CD PROJEKT Group (in years)
Piotr Karwowski
Micha
ł Nowakowski
Adam Badowski
Piotr Nielubowicz
Adam Kiciński
Marcin Iwiński
28
28
23
19
17
15
7
4
Paweł Zawodny*
Jeremiah Cohn*
*Paweł Zawodny and Jeremiah Cohn were appointed to serve as Management Board Members of the Company
after the balance sheet date, with the eective date for both of them being 1 February 2022.
Click here to read through the CVs of the Management Board Members:
https://www.cdprojekt.com/en/capital-group/board-of-directors/
COMPOSITION OF THE CD PROJEKT SUPERVISORY BOARD
Katarzyna Szwarc – Supervisory Board Chairwoman, member of the Audit Committee
Piotr Pągowski – Supervisory Board Deputy Chairman, independent member of the Audit Committee
Maciej Nielubowicz – Supervisory Board Secretary, member of the Audit Committee
Michał Bień – Supervisory Board Member, Chairman of the Audit Committee
Jan Wejchert
*
– Supervisory Board Member, independent member of the Audit Committee
*Jan Wejchert has been the Member of the Supervisory Board since 25 May 2021.
Click here to read through the CVs of the Supervisory Board Members::
https://www.cdprojekt.com/en/capital-group/supervisory-board/
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Business model
GRI 1029
For years our business philosophy has rested on two pillars – focusing on producing the highest quality games
and services and retaining the independence required to do that, including creative and financial independence.
We think that these factors are our key to attaining success in the competitive global electronic entertainment
industry.
Scheme 3 Business model for producing games as part of the business of CD PROJEKT S.A.
The business model used in its business sets the CD PROJEKT Group apart from other producers and publishers
of games. It calls for exercising control over every significant stage of creating and selling games – creative
vision, production processes, technological solutions specific to the games we develop, publishing process,
promotion, distribution and direct connections with gamers.
Thanks to the GOG.COM segment we also have access to our own digital platform for the distribution of PC
and Mac games and online entertainment, which is a part of a friendly ecosystem created specifically for gamers.
Proprietary IP and full
control over the
creation process.
Focus on two
franchises and
a limited number
of projects.
In-house team
of experienced
developers who
consistently prioritize
quality.
Proprietary tools
and know-how
essential to creating
captivating
open-world RPGs.
Publishing
independence
underpins
gamer-centric
business philosophy.
Direct distribution
of console and digital
PC editions.
Global reach –
cooperation with
handpicked
distributors of box
editions.
Honest and direct
communication with
gamers.
Full control over
the message.
SUPPORT DEPARTMENTS, INCLUDING: HR, ACCOUNTING, FINANCE, LEGAL
DEPARTMENT, ADMINISTRATION, TAXES, INVESTOR RELATIONS, IT, ERP
DEVELOPMENTCREATION TECHNOLOGY PUBLISHING DISTRIBUTION
PRIORITY
– GAMERS
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Key financial and non-financial business indicators
THE CD PROJEKT GROUP ACROSS THE WORLD
GRI 1023; GRI 1024; GRI 1026; GRI 1027; GRI 2011
SELECTED FINANCIAL AND BUSINESS INDICATORS IN 2021
■ PLN 888 million consolidated sales revenue
■ PLN 233 million consolidated operating profit
■ PLN 209 million Group’s net profit
■ 98% export sales stated as a percentage of total sales of the Group
■ 86% digital sales of games stated as a percentage of total sales in the CD PROJEKT Group
■ 40+ million copies of The Witcher 3: Wild Hunt sold
■ 18+ million copies of Cyberpunk 2077 sold
6
■ PLN 5 dividend per share from 2020 profits paid out in 2021
6 as of 14 April 2022.
Studio The Molasses Flood
Perugia
Boston
Headquarters (CD PROJEKT RED, GOG and Spokko)
CD PROJEKT RED dev studio
Branch oces
Media and community managers
Local subsidiaries of the Group
São Paulo
Paris
London
Wrocław
Kraków
Warsaw
Berlin
Shanghai
Tokyo
Seoul
Dubai
Los Angeles
Vancouver
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SELECTED 2021 NONFINANCIAL INDICATORS
■ 1 196 people (+1.6% yoy) employed in the Group
■ 64% percentage of developers in the total number of people employed in the Group
■ 29% percentage of women in the total number of people employed in the Group
■ 43 nationalities represented in the Group
■ 32 average age of the people employed in the Group
■ 1.39 t CO
2
e/employee carbon footprint in scope 1 and 2
7
per employee
■ 0.12 t CO
2
e/m
2
carbon footprint in scope 1 and 2
8
per m
2
of occupied space
The CD PROJEKT Group’s growth strategy
KEY ASSUMPTIONS OF THE CD PROJEKT GROUP STRATEGY UPDATE
GRI 10215
The CD PROJEKT Group Strategy Update was published in March 2021 in which we presented our mission
and the core values that demarcate the direction and framework for the Group’s development.
This document also stated the three major areas of change and development in the Group:
1.
RED 2.0 – transform the studio entailing a change in philosophy and the method of creating AAA games,
implementing a more flexible production process supporting parallel product development under the two
major brands, changing the method of management and the work environment focusing on team development,
supporting talents and modifying the approach to communicating with gamers.
2.
Expand brands – continue to go beyond RPG games from the AAA segment and tap into the potential
in The Witcher and Cyberpunk brands through new products, license partnerships and new media and formats,
which as a result should maximize reach, brand awareness and strength.
3. Online development – gradually introduce network elements in CD PROJEKT RED’s productions.
The strong financial backbone the Company has built is one of the drivers of further development, retaining
creative independence and constantly searching for new possibilities of improvement as a company and
as a studio, and hence – achieving the targets set forth in the mission.
7 emissions intensity indicator per employee/m2 of occupied space according to the location-based method; this indicator incorporates
the Polish companies in the Group; detailed information concerning the calculation methodology can be found in the Greenhouse Gas
Emissions section
8 emissions intensity indicator per employee/m2 of occupied space according to the location-based method; this indicator incorporates
the Polish companies in the Group; detailed information concerning the calculation methodology can be found in the Greenhouse Gas
Emissions section
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Develop world-class AAA RPGs
Updates and free DLC
*
in 2021
Next Gen release and free
Next Gen update in H2 2021
Expansions in progress
Addition of online elements
Create and release incremental
gaming content
Expand into broader entertainment
(e.g. TV series, music, merchandise)
and co-ops with brands
Provide players
with memorable experience
18+ million
games sold
as of 14 april 2022
*
DLC –small additional content
Develop world-class AAA RPGs
Create and release incremental
gaming content
— ENHANCED EDITION—
Expand into broader entertainment
(e.g. TV series, music, merchandise)
and co-ops with brands
Provide players with memorable
experience
65+ million
units sold of
The Witcher saga
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EXECUTION OF THE GROUP’S STRATEGY IN 2021
In 2021 we achieved the following objectives depicted in the Group’s
Strategy Update in March 2021:
■
we conducted the internal transformation process in the studio. More
information on the measures taken as part of the RED 2.0 transformation
and its outcomes to date can be found in the following sections, among
others: Managing the RED 2.0 transformation, Training and development,
Incentivization and benefits, Dialogue with the team, Actions to benefit
the health and well-being of the team, Communication with gamers,
■
we published a number of patches and fixes for Cyberpunk 2077, substantially
improving the quality of entertainment on all platforms on which the game
is available; a free DLC set was included in one of the patches. Detailed informa-
tion on the fixes made to the game in 2021 can be found in the Management Board
Report on the Activity of the CD PROJEKT Group and CD PROJEKT S.A. in 2021,
■ in July 2021 the studio Spokko owned by the CD PROJEKT Group published
an F2P mobile location-based game – The Witcher: Monster Slayer that uses
elements of extended reality. Information on the game’s premiere and the steps
taken by the Spokko team in 2021 can be found in the Management Board
Report on the Activity of the CD PROJEKT Group and CD PROJEKT S.A. in 2021,
■
we extended GWENT: The Witcher Card Game by making three new storyline
expansion packs to the game available to gamers by rolling out, among others,
90 new cards and 4 new seasons of “Journey” – a unique system of progression
in GWENT. In 2021 a portion of the GWENT team worked on a new spin-o project
for a single player under the cryptonym “Golden Nekker”. Information about
the development of GWENT in 2021 can be found in the Management Board
Report on the Activity of the CD PROJEKT Group and CD PROJEKT S.A. in 2021,
■ on 15 February 2022 we published Cyberpunk 2077 for next gen consoles
along with patch 1.5 – in the influential Metacritic service this game received
a score of 75/100 on the PlayStation 5 platform and 87/100 on Xbox Series X
9
,
■
we carried out conceptual works on a new AAA game. In March, at the
time of signing the strategic partnership agreement on collaboration with
Epic Games we ocially confirmed that part of the CD PROJEKT RED team
is working on a game under a new Witcher saga that will be deployed on
Unreal Engine 5. This is part of the preparations for the start of parallel work
on AAA projects in 2022.
9 As at 1 April 2022
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PRODUCTION PLANS IN 2022
For 2022 we made the following plans, among others:
■ development work on an expansion to Cyberpunk 2077,
■ development work on a new Witcher game. This work will be done on Unreal Engine 5 furnished by Epic
Games as part of the strategic partnership of the two companies; we planned a series of training sessions for
developers in 2022 to enable them to become familiar with the capabilities of the new engine and as a result
smoothly transition to working on the new engine,
■ further ongoing support for Cyberpunk 2077,
■
having the development team of The Molasses Flood studio continue work on the unannounced project being
developed on the basis of one of the franchises held by the Company,
■ development work on the next-gen version of The Witcher 3: Wild Hunt,
■
the premiere of the Cyberpunk 2077: Edgerunners anime series set in the same universe as Cyberpunk 2077
on the NETFLIX platform,
■ premiere of the spin-o to GWENT: The Witcher Card Game under the working title of “Golden Nekker”,
■ further support for free-2-play games – GWENT: The Witcher Card Game and The Witcher: Monster Slayer,
■ conceptual and research work related to unannounced projects.
IN THIS SECTION YOU WILL FIND THE FOLLOWING INFORMATION
■ how we conduct dialogue with our stakeholders,
■ how we have defined the priority ESG issues in the CD PROJEKT Group,
■ what goals we have defined in ESG areas for 2022,
■ what risks we have identified in social, environmental and governance issues.
0202
APPROACH TO SUSTAINABILITY
IN THE CD PROJEKT GROUP
CD PROJEKT Group’s 2021 Sustainability Report
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Dialogue with stakeholders and materiality check
GRI 10221; GRI 10240; GRI 10242; GRI 10243; GRI 10227
We regard active, direct and open dialogue with our stakeholders to be the basis of our market success
and further development, in other words, dialogue with all of the people who are jointly shaping our company
or who are interested in our business.
Before we prepared the CD PROJEKT Group’s 2021 Sustainability Report we conducted a review of the key
groups of stakeholders in the Company and the Group and tentatively defined, on the basis of proprietary
and sector-specific analysis, the significant ESG issues for the Group to report. The stakeholders mapping
process was done using the Johnson&Scholes matrix.
Next, as part of dialogue we administered an anonymized survey study and in-depth interviews regarding
significant ESG disclosures from the vantage point of representatives of the groups of stakeholders. This study
was conducted from June to September 2021 in collaboration with third party experts.
ASSESSMENT OF THE MATERIALITY OF ESG TOPICS SELECTED ASPECTS
Review of key stakeholders of the Company and its Group
Initial identification of key topics to include in the report:
– 22 tropics identified as important for the market segment, based on the Company's own analysis and disclosures
of other companies representing the global videogame industry
Dialogue with stakeholders:
– use of anonymous surveys and in-depth interviews to learn about stakeholders' expectations regarding
priority ESG disclosures
Development of an ESG materiality matrix:
– approval by the Management Board of CD PROJEKT S.A. of the ESG materiality matrix and list of topics regarded
as important from the point of view of ESG reporting
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Table 1 Major groups of stakeholders in the CD PROJEKT Group
Stakeholders Type of engagement Frequency of engagement
External stakeholders
Gamers and customers
Proactive and reactive communication
with gamers – direct communication
during trade fairs and live meetings
with the community hosted by the
Group and indirect interactions through
social media and portals.
High – current communication and
participation in the most important
trade events.
Capital market
■ institutional and retail investors
■ rating agency analysts,
including ESG rating agencies
■ sell-side analysts
■ buy-side analysts
■ representatives of capital
market institutions and
organizations
We endorse transparency – we provide
detailed and transparent information
in the form of press releases, current
reports as a consequence of the
confidential information identified by
the Group and in the form of periodic
reports regarding financial performance
and key operating and corporate
events. We are also engaged in direct
dialogue during meetings, conferences
and conference calls and also by
responding to ongoing inquiries.
We care about providing transparent
information on our investor relations
website. We run a dedicated investor
relations profile on Twitter:
@CDPROJEKTRED_IR.
High – current communication with
investors by publishing current and
periodic reports, and through e-mail
and phone-based communication and
publishing press releases. Holding
and webcasting the annual General
Meeting and providing for the option
to vote remotely in real time.
Participating in a dozen or so
international investor-dedicated
conferences and roadshows
per annum.
Business partners and suppliers
■ distributors and clients
■ key suppliers
■ licensees
■ technology solution vendors
Individual business meetings;
agreements based on fair standards
of cooperation complying with the
internal policies of both parties.
High – constant regular contact.
Media:
■ trade journalists
■ finance and economic
journalists
■ web creators
■ opinion leaders
Our PR, marketing and investor
relations departments stay in constant
contact with representatives of the
media, internet creators and opinion
leaders. Communication entails,
among others: publishing current and
periodic reports, distributing press
releases, holding press conferences,
actively communicating in social
media and having the Company’s
representatives participate in trade
events, interviews and expert panels.
High – current communication.
State and regulatory institutions
We engage in dialogue with institutions
and regulators and we consult on
regulations and rules of conduct that
are significant in our business.
Medium – consistent with the
requirements incumbent on the
Company and in every instance
depending on the needs of both
parties.
Representatives of social
organizations
We take part in selected charitable
or educational initiatives (through
partnership, sponsoring, participation
or substantive support).
Low – depending on the Group’s
capabilities.
Representatives of trade
organizations
We take part in selected charitable
or educational initiatives (through
partnership, sponsoring, participation or
substantive support).
Low – depending on the Group’s
capabilities.
CD PROJEKT Group’s 2021 Sustainability Report
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GROUP
SOCIAL
RESPONSIBILITY
SUSTAINABLE
DEVELOPMENT
RESPONSIBLE GOVERNANCE
AND ORGANIZATION
ENVIRONMENTAL
RESPONSIBILITY
Internal stakeholders
Team
Constant dialogue – we hold annual
/ semi-annual talks, feedback culture,
holding training sessions, workshops,
integration events, we oer benefit
programs and we co-finance private
health care. Employees share in the
profit generated together under the
Group’s incentive system
High – constant contact.
directly and indirectly through the
Company’s anonymous reporting
system.
Management Board
Constant dialogue as part of the
Company’s current business activity.
High – current contact.
The outcome of the administered significance study is the significance matrix of ESG issues for the CD PROJEKT
Group. It portrays the assessment of significant ESG topics from two vantage points: the interest among our
stakeholders and the importance of these issues for the Group’s development.
The findings of this survey were presented to the Company’s Management Board during an educational
workshop dedicated to managing ESG issues in the CD PROJEKT Group.
Scheme 4 Materiality matrix of the ESG issues in CD PROJEKT Group
15
4
9
7
13
2
10
5
21
17 20
1
18
0,5 1,5 2,5 3,5 4,51 2 3 4 5
0,5
1,5
2,5
3,5
4,5
1
2
3
4
5
14
11
3
8
16
6 12
19
22
OUR PRODUCTS
1. Ensuring accessibility of games – adapting games for individuals
with special needs
2. Ensuring in-game diversity
3. Gamers' health and safety
GAMERS
4. Community moderation; listening to feedback; dialogue
5. Supporting the gaming industry
6. Responsible marketing communications
GOVERNANCE
7. Clearly defined rules and norms related to Company management
and directions of growth - enshrined in a formal Strategy document
8. Privacy of clients and customers; personal data protection; guarding against
cybercrime
9. Business ethics: fair competition, respect for intellectual property, counteracting
corruption and preventing other irregularities
10. Stable long-term cooperation with key suppliers and business partners
11. Screening suppliers with regard to quality of supplies as well as environmental
and social aspects (human rights, child labor, etc.)
TEAM MEMBERS
12. General health and safety
13. Training and career development
14. Well-being, workplace comfort and ergonomics
15. Diversity and inclusion; equal treatment
16. Satisfaction and motivation
SOCIAL RESPONSIBILITY
21. Social initiatives and cooperation with NGOs
22. Sponsorships and charity work
ENVIRONMENT
17. Responsible use of utilities (limiting consumption of water and energy)
and waste management
18. Working to reduce greenhouse gas emissions in business activities
and throughout the value chain
19. Product (game) packaging
20. Environmental awareness among team members
CD PROJEKT Group’s 2021 Sustainability Report
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RESPONSIBILITY
SUSTAINABLE
DEVELOPMENT
RESPONSIBLE GOVERNANCE
AND ORGANIZATION
ENVIRONMENTAL
RESPONSIBILITY
Top priority ESG issues
GRI 10220; GRI 10244; GRI 10246; GRI 10247
The Company’s Management Board selected ten top priority topics identified as the most significant from
among 22 issues assessed in terms of the interest shown by CD PROJEKT’s stakeholders and their importance
for the Group’s development.
We have described in detail our approach to the top priority issues in this report through the descriptions
of our approach to managing social, environmental and governance issues.
We also deemed it important to describe the actions we have taken during the COVID-19 virus pandemic that
started in March of 2020 and our actions that exert an impact on the climate and the environment.
Non-financial risks correspond to each one of these areas. We have set forth the descriptions of these risks
and the methods for mitigating them in the various sections pertaining to environmental, social and governance
issues.
Table 2 List of the Group’s top priority ESG issues
Top priority issues Business area Description in the Report
Moderation and listening
to the gaming community
Governance and organization Communication with gamers
Business ethics – fair competitive
practices, respecting intellectual
property and preventing corruption
and fraud
Governance and organization
■ Anti-corruption policy
■ Reporting fraud
■ Suitable labeling of products
and services
■ Compliance with international
regulations and fair competition
Team health and safety Social responsibility Health and well-being
Responsible
marketing communication
Governance and organization
■ Communication with gamers
■ Compliance with international
regulations and fair competition
Clearly defined standards and
norms concerning governance
and the directions for its growth
laid down in the growth strategy
Governance and organization Growth strategy
Professional training
and development
Social responsibility Training and development
Satisfaction and motivation Social responsibility
■ Evaluation and feedback system
■ Training and development
■ Remuneration and job promotions
■ Incentivization and benefits
Satisfaction and motivation Social responsibility Diversity and inclusion
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ENVIRONMENTAL
RESPONSIBILITY
Well-being, work ergonomics
and comfortable place of work
Social responsibility
■ Occupational health and safety
(OHS)
■ Actions to benefit the team’s health
and well-being
■ Initiatives to augment work comfort
Privacy of customers and team
members; their data security
and protection against cybercrime
Governance and organization
■ Personal data protection
■ Data security
Having regard for the ever greater significance of duly reporting our approach to sustainability in the CD PROJEKT
Group, Piotr Nielubowicz, the CFO in CD PROJEKT S.A. has taken responsibility for overseeing this area.
There is an ESG working group in CD PROJEKT consisting of representatives of selected departments, e.g.
the IR, Legal, HR, Internal Communication, PR and Administrative Departments. This group has been tasked
with checking the scope of reporting on environmental, social and governance issues, monitoring the execution
of the stated goals and cooperating to devise the ESG strategy.
CD PROJEKT Group’s 2021 Sustainability Report
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RESPONSIBLE GOVERNANCE
AND ORGANIZATION
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ESG goals
GRI 10212
We have designated operating goals in sustainability for the first time in terms of environmental, social and
governance issues. They will form part of the work to be done on the CD PROJEKT Group’s ESG strategy and
will demarcate the fundamental directions the Group will follow in the future.
Our ESG goals and activities have been set up in full compatibility with the UN’s 17 goals for sustainable
development constituting the UN’s 2030 Agenda for Sustainable Development (known as the 2030 Agenda).
Detailed information regarding the actions we are taking that are aligned to the execution of the 2030 Agenda’s
goals can be found in the subsequent sections of this Report.
Table 3 CD PROJEKT Group’s ESG goals for 2022
GOVERNANCE AND ORGANIZATION SOCIAL AREA ENVIRONMENTAL AREA
■ Creation of the ESG Strategy
in CD PROJEKT S.A.
■
Formalization of the compliance system
in CD PROJEKT S.A., including protection
for whistleblowers, fighting corruption and
protecting human rights
■
Growing the number of training sessions
regarding the law and ethical behavior in
business among other things, in reporting
violations, including undesirable behavior
in mutual relations and inclusive leadership
■
Unifying the standards for managing
information security in the CD PROJEKT
Group, among other things, by adopting
the Information Security Policy in the
CD PROJEKT Group
■ Preparation of a strategy and goals for
CD PROJEKT S.A. in the Diversity and
Inclusion area, in consideration of the
business value arising from D&I and while
creating D&I-related standards and rules
significant for the organization
1
and while
creating D&I-related standards and rules
significant for the organization
■
Establishment of a strategy and action plan
to increase the share of women in the
workforce of CD PROJEKT S.A., including in
management positions
■
Launch of a comprehensive array of
development programs for the CD PROJEKT
S.A. team, including as part of general,
managerial and expert development paths,
and assessment of how eective the
activities have been
■
Preparation of an Employer Branding
strategy and goals for CD PROJEKT S.A.,
including the launch of a regularly repeated
internship program at CD PROJEKT S.A
■
Pursuit by the CD PROJEKT Group of a series
of activities focused on supporting people
aected by the armed conflict in Ukraine
■ Adoption and publication of the
CD PROJEKT S.A. Environmental Policy
■
Development and implementation of
an environmental management system
at CD PROJEKT S.A.
Calculation of CD PROJEKT Group’s carbon
footprint in 2022
2
in line with Scope 3 of
the GHG Protocol
3
and determination of the
greenhouse gas emission reduction target
Identification and assessment of climate
change risk according to the guidelines
of the Task Force on Climate-related
Financial Disclosure (TCFD)
4
1 Diversity&Inclusion
2 with regards to the Polish companies of the Group
3 https://ghgprotocol.org/
4 Planned date of execution: 2023
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SUSTAINABLE
DEVELOPMENT
RESPONSIBLE GOVERNANCE
AND ORGANIZATION
ENVIRONMENTAL
RESPONSIBILITY
Management of ESG risks in the CD PROJEKT Group
GRI 10211; GRI 10215; GRI 10230
In its ongoing activity the CD PROJEKT Group is exposed to a number of risk factors, financial and non-financial
alike. The Risk Management Procedure was implemented in the Company in 2021. On that basis the formal
rules for managing and treating strategic risks were defined.
The Company’s risk management process is a set of clearly defined rules of conduct facilitating the identification,
assessment, analysis and further treatment of risk. The goal of this procedure is to attain an acceptable level
of risk for the identified threats, and thereby to curtail the consequences of potential events that may exert
an adverse impact on the Company’s business, including its financial stability.
The Company has a Risk Management Committee. The owners of various risks have been appointed
to it, namely persons employed in senior positions as directors or managers responsible for coordinating
processes in specific areas of the Company’s business. The Management Board of each company is responsible
for risk management in the CD PROJEKT Group’s companies.
Detailed information concerning the risk management system in the Company and a description of the risk factors
identified as being significant (strategic) to the CD PROJEKT Group, along with information on the measures
taken to mitigate them can be found in the Management Board Report on the Activity of CD PROJEKT S.A. and
the CD PROJEKT Group in 2021.
The list of ESG risks contains the risk factors the Company identifies as significant (strategic) and analyzes
in accordance with the Risk Management Procedure, as well as the risk factors that to date have not been
identified as strategic but which the Company regards as substantial in the ESG area. In 2022 these risks will
be presented to the Risk Management Committee for it to consider whether they should be included in the
catalogue of strategic risk factors.
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SOCIAL
RESPONSIBILITY
SUSTAINABLE
DEVELOPMENT
RESPONSIBLE GOVERNANCE
AND ORGANIZATION
ENVIRONMENTAL
RESPONSIBILITY
Table 4 List of risks in ESG areas identified by the Company together with actions taken to mitigate them
10
Risk description Actions taken
Environmental and climate risks
Risk related
to regulatory
and market
pressure to
undertake
activities
related to
environmental
and climate
protection
*
The risk of facing pressure to undertake
activities in the scope of environmental and
climate protection results from the increasing
expectations on the part of business partners
and regulators, and is associated with dynamic
changes in environmental law – both domestic
and European. Newly introduced legislation
related to environmental and climate-centric
transformation under the European Green Deal
requires Group member companies to monitor
emerging regulations and adapt to changes,
among others by disclosing their greenhouse
gas emissions, investigating the mutual links
between Group member company activities
and climate changes, and taking concrete
steps to reduce harmful emissions throughout
the value chain. Potential noncompliance with
environmental law may result in administrative
penalties and loss of reputation. Environmental
risks also apply to ownership, leasing and use of
business properties, where additional expenses
are incurred while undergoing transformation
to a zero-emissions energy-ecient economic
model.
Minimizing environmental impact and
introducing solutions which benefit the
environment are among the Group’s priorities.
In 2021 the Management Board of CD PROJEKT
S.A. decided to initiate preparations for the
deployment of an environmental management
system which involves, among others, ongoing
analysis and staying up to date with the relevant
regulations, assessment of the environmental
consequences of the Group’s activities against
the backdrop of measurable indicators, and
analysis of the Group’s compliance in this
regard. The Company is also preparing to
institute a formal Environment Policy. It carries
out periodic audits of its compliance with
environmental regulations and works to raise
environmental awareness of its team members
by becoming involved win actions which benefit
the environment and the climate. In 2022 the
Company intends to expand its identification
of emission sources and its carbon footprint to
include Scope 3 (i.e. other indirect emissions
in the value chain) and undertake measures to
reduce such emissions. Moreover, the Company
monitors its environmental indicators and the
associated costs, including consumption of
energy and water, waste management and
atmospheric emissions, and rolls out novel
environmentally-conscious technologies.
The Company’s energy eciency and
environmental impact are improved on a regular
basis, facilitating control and mitigation of
potential environmental risks.
10 Not all of the ESG risks identified by the Company are defined as strategic risks.
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AND ORGANIZATION
ENVIRONMENTAL
RESPONSIBILITY
Social risks
Risk associated
with availability
and recruitment
of specialists
*
The activities and growth prospects of
CD PROJEKT Group member companies
are greatly dependent on maintaining an
experienced, knowledgeable and motivated
workforce. The videogame industry is among
the most dynamically expanding industries in
the world, which results in fierce competition
for access to specialized talent. Given the
observed economic growth and opening of
foreign markets, the Group’s development plans
call for continual recruitment of employees, both
Polish and foreign. The inability to attract world-
class specialists, or the loss of experienced
employees, might impact the quality and release
schedule of Group products, and therefore also
the Group’s growth rate and financial result.
Member companies of the Group work to
expand and upgrade their internal HR and
recruitment departments, including through
candidate experience surveys, periodic
analysis of their outcomes, and introducing new
solutions which assist in the search for new
specialists. Recruitment indicates are monitored
and analyzed on a monthly, quarterly and annual
basis with respect to the number
of job applications, process duration, number
of employment oers and principal sources
of prospective candidates. The Group works
to enhance its recruitment process by applying
a customized approach to recruitment
(depending on position) and attempting
to streamline the process for candidates.
It also engages in internal and intragroup
recruitment. A relocation package is oered
to foreign nationals who arrive in Poland, with
a range of activities available in order to ease
their immigration and settlement.
Hired candidates are oered salary packages
and other benefits. The Company also operates
an internal recommendation system whereby
existing employees may point out prospective
candidates for employment. In addition, in
2021 a dedicated Employer Branding unit was
established to coordinate long-term activities
aimed at promoting CD PROJEKT’s image as
a desirable “employer of choice”. The goal of
these activities is to attract fresh talent and gain
a competitive advantage. The team familiarizes
prospective candidate with various aspects of
employment at the CD PROJEKT Group – an
attractive environment in which to further one’s
professional career.
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RESPONSIBLE GOVERNANCE
AND ORGANIZATION
ENVIRONMENTAL
RESPONSIBILITY
Risk associated
with departure
of team
members
*
The risk associated with departure of team
members, including a high churn rate, is an
important threat to the continuity of the Group’s
operations and attainment of its business
objectives. Talent and commitment are highly
prized in the gamedev industry, and there is
strong competition among commercial entities
wishing to attract skilled professionals. Loss of
key team members may harm innovation, the
pace of work and the quality of products and
processes. It may also cause the Company
to forfeit unique opportunities and, as a
consequence, blunt its competitive edge.
The CD PROJEKT Group involves its employees
in large-scale, ambitious
and innovative projects, which oer many
opportunities for career and personal
development. The Group’s internal training
and workshop curriculum actively supports
development of capabilities and soft skills. In
addition to professional training, the Group also
oers competitive salary and compensation
packages by monitoring trends related to
various job positions.
The Group has instituted a system of annual
bonuses (profit sharing) for all team members.
Bonuses assigned under this system depend
on the Group’s net profit, or that of its individual
segments, for the given financial year. CD
PROJEKT also presents persons regarded
as crucially important for the Group and who
meet its internal criteria with an option to
enroll in long-term incentive programs where
participants may become eligible to claim
Company shares at a predetermined historical
price. Persons employed by member companies
of the Group have access to competitive
benefits packages (including medical care,
fitness programs, internal gym, healthy food at
the oce, etc. – the composition of the benefits
package varies between subsidiaries and oce
locations). The Group also supports flextime
arrangements and oers a customizable work
model (oce work, remote work or a mix of
both).
Regardless of the actions undertaken by the
Group, a certain level of churn is unavoidable
and natural. Given the specific nature of the
Group’s activities, which focus on long-term
projects, such churn typically increases in
periods following each release.
Risk associated
with cultural
dierences
The global character of CD PROJEKT Group's
activities entails the need to acknowledge
the diversity of territories on which the Group
markets its products and services. As the Group
works to achieve its production goals, it may
face the risk of mismatch between its products
and the specific nature of local markets or
cultures. This risk may manifest itself, among
others, by perceived cultural insensitivity of
the products' content, as well as incorporation
of connotations regarded as disrespectful or
derogatory given the local circumstances.
To mitigate this risk we support diversity in
our team and we listen to external voices
representing various cultures and nations.
We take action to adapt the content of our
games to the requirements posed by agencies
which assign age ratings to games on each
territory. We organize training courses for our
development teams, focusing, among others,
on cultural sensitivity. We also monitor media
reports, verify emerging information, and – in
justifiable cases – take the appropriate remedial
action.
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SUSTAINABLE
DEVELOPMENT
RESPONSIBLE GOVERNANCE
AND ORGANIZATION
ENVIRONMENTAL
RESPONSIBILITY
Risk of
noncompliance
with
employment
regulations
Given the number and diversity of individuals
employed at the Group there is a risk of
violating employment regulations in the course
of daily activities at Group member companies.
In this context the Group may be subject to
periodic inspections carried out by institutions
and authorities authorized to perform such
inspections, as well as to lawsuits filed by former
employees alleging breaches of labor law and
employment regulations. Such noncompliance
may also cause undesirable dynamics in
employer-employee relations and undermine
the substance of civil law agreements related to
the videogame development cycle.
With regards to proper management of
employment risks, the Company undertakes
a range of activities to safeguard its team
members. Each team at the Company is
assigned a HR Partner; furthermore, procedures
which regulate the rights and responsibilities
of employees are implemented and enforced –
this includes a procedure for counteracting
undesirable conduct in employee relations, as
well as a formal Diversity Policy. Employees are
able to anonymously or personally report any
irregularities, including breaches of employment
regulations, and there are systems in place
which protect the confidentiality of such
reports and their authors, and which protect
whistleblowers from potential retribution. The
Company also works to ensure transparent
internal communication related to employment,
including changes in regulations, types of
agreements, absences, leaves (including
parental leave) and feedback options.
Governance and organization risks
Cybersecurity
risks related
to leakage, loss
or unauthorized
modification
of data
*
Data storage and data processing in IT systems
carries the risk of leakage, loss or unauthorized
modification. Cybersecurity risks go beyond
corruption or destruction of data and the
associated financial loss, and may include theft
of intellectual property, loss of productivity or
loss of reputation. Cybersecurity risks may
involve internal or external circumstances,
whether intentional or inadvertent, which result
e.g. from cyberattacks, deployment of malicious
software or other breaches of security.
To minimize cybersecurity risks the Group
has developed a plan based on the “defense
in depth” principle, with multiple overlapping
security systems. The Group continues to roll
out and improve technical measures which
contribute to the security of its IT infrastructure.
Security requirements are uniformized and
iterated to ensure that access to information
and data processing are performed in a
controlled manner. An important aspect of
the Group’s approach to cybersecurity is a
series of internal training courses related to IT
security, raising awareness of threats related
to social manipulation as well as phishing. The
Group continues to monitor its data processing
systems to ensure appropriate technical
safeguards against potential evasion of security
measures.
Risk associated
with processing
personal data
*
The risk associated with processing personal
data aects a range of data processing activities
carried out by Group member companies which
fall within the scope of Polish and foreign legal
regulations on territories where the Group
conducts its business. Such risk may materialize
e.g. through infringement of the confidentiality,
integrity or availability of personal data,
resulting in significant financial penalties. It
may also involve noncompliance with legal
regulations which govern privacy, causing
Group member companies to incur excessive
administrative costs (whether operational or
financial) in order to ensure proper observance
of such regulations.
Should data protection measures – whether
existing at present or expected to be rolled
out in the future – prove insucient, exposure,
corruption or loss of personal data may
ensue. This may be caused by IT system
failures, human error or malicious third-party
interference.
With regards to processing of personal data,
CD PROJEKT Group member companies are
assisted by internal mechanisms in place at
the Group, as well as by external entities. The
Group takes action to mitigate and control risks
associated with processing personal data. This
includes internal audits, confidentiality audits
carried out in the framework of specific projects,
data protection and privacy impact analysis,
and ad-hoc consultations held for the benefit
of employees who supervise processing of
personal data. Additionally, a dedicated Privacy
& Compliance department has been established
at the Company, tasked, among others, with
organizing regular training courses related to
protection of personal data and information
security in general, as well as with assisting
Group member companies in minimizing the
presented risk.
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SOCIAL
RESPONSIBILITY
SUSTAINABLE
DEVELOPMENT
RESPONSIBLE GOVERNANCE
AND ORGANIZATION
ENVIRONMENTAL
RESPONSIBILITY
Risk associated
with intellectual
property rights
*
Products and services oered by Group
member companies are based upon intellectual
property. Eective acquisition, licensing and
protection of intellectual property rights
(including trademarks) held by the Group is
therefore an important aspect of the Group’s
activities.
In the course of their operating activities,
including in the videogame development
process, Group member companies acquire
copyright to third-party works or images on the
basis of contracts concluded with authors. The
Group invests substantial eort in monitoring
intellectual property (e.g. as relates to images,
names or items); however, given the large
number of such entities as well as the variability
of legal regulations which extend protection to
their creators throughout various territories, the
risk of inadvertent infringement of third-party
IPR, ineective acquisition of copyright, or
acquisition of copyright from an unauthorized
party, cannot be entirely ruled out. An important
risk also relates to third-party infringement of
Company rights caused by illegal distribution of
products oered by Group member companies.
Due to the global reach of CD PROJEKT
Group products and services, it is natural
to oer such products and services in local
languages and using national alphabets. This,
however, involves the risk that a brand name or
trademark held by the Company may conflict
with an existing trademark, giving rise to
copyright infringement claims. In addition, the
Group may be unable to locally register some
of its trademarks due to their resemblance to
trademarks which have already been registered.
Group member companies monitor the impact
of intellectual property regulations upon the
Group’s activities; however, claims related to
inadvertent infringement of third-party IPR
cannot be ruled out. It should be noted that any
claim filed against the company in conjunction
with potential infringement of intellectual
property rights, patents or trademarks may
negatively aect the Group’s reputation and
growth prospects.
The CD PROJEKT Group is actively involved
in activities related to protection of intellectual
property. It continually works to analyze
and adapt its contracts to the existing legal
circumstances in order to minimize the above-
mentioned threats. In doing so, the Group
enlists the assistance of domestic and foreign
law firms. As a result, the legal safeguards
present in the Group’s third-party contracts are
iteratively improved. To protect its own brands,
the Group registers trademarks throughout
the European Union and elsewhere. It also
monitors, on an ongoing basis, the registration
of trademarks by third parties, and conducts
analysis of existing trademarks before deciding
on names for its own products. Furthermore,
the Group performs ongoing legal verification
of its products and services in order to prevent
infringement of third-party IPR, and takes action
to combat infringement of its own IPR – among
others, by monitoring online auction portals
and distribution platforms in Europe, the
United States and Asia. Auctions which violate
the Group’s IPR are regularly struck down,
depending on the solutions oered by the given
portal.
*
risks identified as strategic according to The Risk Management Procedure
CD PROJEKT Group’s 2021 Sustainability Report
0303
SOCIAL
RESPONSIBILITY
IN THIS SECTION YOU WILL FIND THE FOLLOWING INFORMATION:
■ what goals we set for 2022 in the social area,
■ what employment structure the CD PROJEKT Group has in terms of gender, age and nationality,
■ what our recruitment process looks like,
■ what benefits we oer to our team members,
■ what initiatives we pursue to promote diversity.
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SOCIAL
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RESPONSIBLE GOVERNANCE
AND ORGANIZATION
ENVIRONMENTAL
RESPONSIBILITY
SUSTAINABLE
DEVELOPMENT
Goals of the CD PROJEKT Group in the social area
GRI 1032; GRI 1033
Detailed information regarding the actions we are taking that are aligned to the execution of goals 3, 4 and 5
in the 2030 Agenda can be found below in this section.
SOCIAL AREA
AREA GOAL
PLANNED DATE
OF EXECUTION
■ Diversity and Inclusion ■ Preparation of a strategy and goals for
CD PROJEKT S.A. in Diversity and Inclusion
in consideration of the business value
arising from D&I
1
while creating D&I-related
standards and significant rules for the
organization
■ 2022
■ Diversity and Inclusion ■ Establishment of a strategy and action plan
to increase the share of women in the
workforce of CD PROJEKT S.A., including
in management positions
■ 2022
■ Training and Development ■ Launch of a comprehensive array of
development programs for the CD PROJEKT
S.A. team, also as part of general, managerial
and expert development paths and an
assessment of the eectiveness of the
implemented activities
■ 2022
■ Employer Branding ■ Preparation of an Employer Branding
strategy and goals for CD PROJEKT S.A.,
including the launch of a regular internship
program at CD PROJEKT S.A.
■ 2022
■ Charity Pursuit by the CD PROJEKT Group of a series
of activities focused on supporting people
aected by the armed conflict in Ukraine
■ 2022
1 Diversity&Inclusion
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SOCIAL
RESPONSIBILITY
RESPONSIBLE GOVERNANCE
AND ORGANIZATION
ENVIRONMENTAL
RESPONSIBILITY
SUSTAINABLE
DEVELOPMENT
Our approach to social responsibility
Marta Fortuna
VP of HR at CD PROJEKT
The Group’s greatest strength and value are rooted in our team.
We hire energetic individuals who are passionate about delivering
top-notch products and services according to global standards. Their
talent, commitment and motivation make up the CD PROJEKT Group’s
human capital. They and their creative ideas drive the success of our
corporation.
Our goal is to provide all our team members with a safe working
environment. In CD PROJEKT, we strive every day to ensure the comfort
of work and well-being of our team members, provide them with the
opportunity to develop hard and soft skills and continuously strengthen
the value and empowerment of specialists employed in CD PROJEKT.
We promote flexibility and openness to new ideas as well as sincere
and honest communication at every level of our organization. All these
elements make up our internal RED 2.0 transition.
We strive to create conditions that will enable us to attract, retain and motivate individuals equipped
with key skills and the experience needed to continue our Group’s rapid growth. We regard this as one
of the assets helping us to compete in the global electronic entertainment market.
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ENVIRONMENTAL
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DEVELOPMENT
CD PROJEKT as an employer
11
GRI 1028; GRI 4011; GRI 4013
The fundamental document governing the rights and obligations of CD PROJEKT and its employees is entitled
the Work Regulations of CD PROJEKT S.A. They are applicable to all employees, regardless of position, length
of service or full or part-time status.
KEY EMPLOYMENT INDICATORS OF THE CD PROJEKT GROUP
12
Chart 1 Movement in headcount in the CD PROJEKT Group in 2017–2021
0
300
600
900
1200
2017 2018 2019 2020 2021
CD PROJEKT RED GOG.com Spokko The Molasses Flood
+91
+164
+168
+97 +19
At yearend 2021, the CD PROJEKT Group
13
had 1,196 sta members, or 1.6% more than the year before.
80% of them were members of the CD PROJEKT RED team, 14% were members of the GOG team, 5% were
members of the Spokko team and 1% were members of The Molasses Flood development studio acquired in 2021.
11 The videogame industry is characterized by strong autonomy of cooperating individuals and businesses. This is particularly true of creative
aspects of the production process, such as storyboarding, conceptual design, artistic vision, 2D and 3D model design, animation,
programming, sound recording and gameplay design. The outcomes of each stage often constitute distinct creative works in the sen-
se of the Act on Copyrights and Related Rights. Given the specific nature of our environment, the Group’s products and services rely
to a great extent on collaboration with individuals who are not bound by standard employment contracts. Accordingly, the Company sees
fit to extend the description of its workforce to include individuals who are not on the payroll, but nevertheless contribute to videogames
and other services oered by the Group. In light of the above, this section provides a comprehensive description of a team of indepen-
dent specialists who regularly collaborate with the Group and who directly influence its operations and growth prospects, regardless
of their contractual ties to the Group (employment contract, contract for work, contract of mandate, permanent collaboration, appointment
or any other type of contract used in countries where the Group’s foreign subsidiaries carry out their core activities), and duration thereof
(indefinite contract, fixed-term contract, project, trial period etc.).
12 The aggregate 2021 figures reported by CD PROJEKT RED cover CD PROJEKT S.A., CD PROJEKT Inc., CD PROJEKT RED Vancouver
Studio Ltd. and CD PROJEKT RED STORE Sp. z o.o., while 2020 figures cover CD PROJEKT S.A., CD PROJEKT Inc., CD PROJEKT RED
Store Sp. z o.o. and CD PROJEKT Co. Ltd.
13 Aggregated data as of the end of 2021 don't include CD PROJEKT Co. Ltd. which is now in the process of liquidation.
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DEVELOPMENT
Table 5 Headcount in the CD PROJEKT RED development studios at yearend 2019, 2020 and 2021
CD PROJEKT RED Studio
in Warsaw
CD PROJEKT RED
Studio in Kraków
CD PROJEKT RED
Studio in Wrocław
CD PROJEKT RED
Studio in Vancouver
14
2019 713 108 38 –
2020 734 107 43 –
2021 765 80 41 23
At the end of 2021, the lion’s share of the team, 765 members of CD PROJEKT RED, worked at the Group’s
Warsaw oce. The CD PROJEKT team in Kraków had a headcount of 80 (compared to 107 at yearend 2020),
whereas the number of sta in the Wrocław studio was 41 (compared to 43 at yearend 2020). At the end
of 2021, 23 sta members were employed in the newly acquired CD PROJEKT RED studio in Vancouver.
Chart 2 Employment structure in the CD PROJEKT Group in 2020 and 2021
214 osób
907 osób
221 individuals
209 individuals
215 osób
909 osób
2021
2020
Developers
Back o
ce
Publishing*
GOG.com
CD PROJEKT RED
*The Publishing branch includes, among others, Marketing and PR, Business Development, Customer Relations,
and Game Releases teams, as well as the CD PROJEKT RED Gear team
178 individuals
231 individuals
766 individuals
768 individuals
At yearend 2021, developers accounted for 64% of all sta members in the CD PROJEKT Group. Most of them
(82%) are developers in the CD PROJEKT RED studio involved in the production and development of games
in The Witcher and Cyberpunk universe. Developers working for GOG are responsible for the development
of the GOG.com digital distribution platform and the GOG GALAXY app. Spokko developers are responsible
for the development of the game The Witcher: Monster Slayer, while those employed by The Molasses Flood
are involved in the production of a project based on CD PROJEKT’s IP.
14 Studio joined the CD PROJEKT Group in July 2021
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Table 6 Total number of new hires and terminated contracts in 2021 by age and gender at CD PROJEKT RED
and GOG
New hires CD PROJEKT GOG
Women 64 15
<30 30 8
30-50 34 7
Men 141 38
<30 77 22
30-50 62 16
50> 1 –
Contracts terminated CD PROJEKT GOG
Women 46 24
<30 16 8
30-50 30 16
Men 151 80
<30 49 29
30-50 98 51
50> 1 –
Data not available 3 –
The significant increase in the number of newly hired team members and terminated contracts compared
to the previous year is a natural consequence of the completion, in December 2020, of a large development
project, namely the premiere of Cyberpunk 2077. Higher team mobility is a typical phenomenon in the global
gaming industry, where creators may choose to join a company just for the duration of a specific project.
We also encountered this phenomenon in 2015 after the premiere of The Witcher 3: Wild Hunt.
In GOG, the increased sta turnover stemmed from internal changes carried out in the company in H2 2021.
Within the framework of the optimization endeavors focused on GOG’s operating activity, GOG elected to focus
on its core business, namely the distribution of selected games under the DRM-free formula. Changes were
also made to the team structure – some of the developers who had been working on technological solutions
for our studio were transferred to CD PROJEKT.
In 2021, despite the ongoing coronavirus pandemic, the rate of recruitment in the CD PROJEKT Group increased
significantly compared to the previous year when recruitment processes were limited due to preparations
for the premiere of Cyberpunk 2077.
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AND ORGANIZATION
ENVIRONMENTAL
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SUSTAINABLE
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Recruitment process in the CD PROJEKT Group
OUR APPROACH
Anna Fronckiel-Zięborak
Recruitment Manager at CD PROJEKT
When carrying out recruitment processes in CD PROJEKT, we
always look for creative, ambitious and passionate individuals eager
to pursue their career with us. Among our top priorities is the relentless
acquisition of the best talent on the labor market. At yearend 2021,
CD PROJEKT had an internal team of recruiters working from Warsaw,
Wrocław and Kraków. We are also currently conducting recruitment
operations in our Vancouver and Boston oces.
THE VALUES WE APPLY IN OUR RECRUITMENT PROCESS
■ equality – we assess our candidates based on their competences; we make
employment decisions without regard to other factors such as gender, age,
nationality, race and sexual orientation;
■
respect – we want everyone invited to participate in our recruitment process
to be taken care of by a top-quality recruiter, regardless of the stage when
the recruitment process comes to an end;
■
openness and honesty – during interviews, candidates are given time to ask questions and express any doubts
or concerns they may have. For our part, we tell them what it is like to work for us as a member of the specific
team to which the candidate is applying;
■
support – during the overall recruitment process and relocation, if necessary, the recruiter is in constant contact
with, takes care of and provides assistance to the candidate;
■
building long-term relationships – following the completion of the recruitment process, regardless of the
stage, candidates receive feedback from us which they may take advantage of in preparation for any future
job-seeking eorts.
Would you like to join the CD PROJEKT Group? If so, visit www.cdprojektred.com, and respond
to a specific job opening or send us an application of your own volition!!
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ENVIRONMENTAL
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THE RECRUITMENT PROCESS IN CD PROJEKT S.A.
At the outset, we read the candidate’s resume and portfolio to check the fit with our target profile. Then we contact
selected individuals and arrange an appointment for the initial interview. In 2021 the vast majority of recruitment
interviews were held remotely In the interest of all parties’ health and security due to the COVID-19 pandemic.
At the interview stage, we may ask candidates to complete a test assignment to verify his or her key technical
skills. If the candidate successfully passes this stage, he or she is invited to the final interview which lets us get
to know each other even better and answer any additional questions either party may have.
The recruitment process is crowned with a meeting during which an employment oer is presented to the
candidate. If and when our oer is accepted, the hiring process begins, during which we assist the candidate
in completing all the formalities before joining the respective team. Since we recruit candidates from all over
the world, accepting a job oer often entails a relocation process during which we organize and then coor-
dinate the relocation of the candidate and his or her relatives to Poland, all the time remaining in touch with
them and oering advice and assistance. In 2021, we completed 28 relocations to Poland from 17 countries
(in 2020: 24 relocations from 16 countries).
In 2021, CD PROJEKT S.A. received over 30,000 job applications. More than 70% of the applicants and candidates
expressed their interest via our website or LinkedIn.
HOW DO WE SEARCH FOR THE BEST CANDIDATES?
■ we publish job openings on our website,
■ we publish recruitment posts on our social media channels,
■ we place ads on job-seeker platforms (general and industry-specific),
■ we participate in industry fairs,
■ we run direct search and executive search activities,
■ we have an employee recommendation program (recommend a friend) in place,
■ in selected cases, we launch an internal recruitment process.
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DEVELOPMENT
EMPLOYEE RECOMMENDATION SYSTEM
CD PROJEKT employees may recommend candidates for job openings via our internal recruitment system.
For selected positions, we pay a cash bonus to the member of the CD PROJEKT team who recommends
a candidate who successfully completes our recruitment process. In 2021, the employee recommendation
program helped us hire 36 individuals (in 2020: 14 individuals).
CANDIDATE RECRUITMENT EXPERIENCE SURVEY
We constantly strive to improve the quality of our recruitment eorts and
appreciate all feedback from individuals who have had the opportunity to
participate in the process. In CD PROJEKT, we measure the quality of our
recruitment process using the ‘candidate experience survey’, which we have
been conducting since 2020. As part of the survey, each candidate who does
not obtain a job oer from us but who has participated in at least one interview
is sent a questionnaire to assess and comment on the recruitment process.
In 2020 and 2021, over 89% of the answers to the survey questions were
favorable. Over 87% of the respondents were satisfied with the quality
of our recruitment process and over 79% of them said they would recommend
participation in it to their friends. According to the candidates’ answers, they
were particularly appreciative of how we conduct interviews, our informal com-
munication style, the feedback we provide to them and the test assignments,
which they often find to be fun and entertaining.
ONBOARDING
On their first day on the job in CD PROJEKT, each new team member participates in onboarding training.
New hires are acquainted with the company’s history, values, culture and principles. They obtain informa-
tion on how the Group’s operations are organized, what information systems we use and how we take care
of information security, including the application of our basic principles of confidentiality and external
communication. New team members find out about the fringe benefits to which they are entitled. Once the
main part of the onboarding process is complete, new hires are aorded the opportunity (in accordance with
the specific needs of their job) to take part in additional specialized training, including the protection of intel-
lectual property, the circulation and protection of confidential information and the restrictions associated with
working for a listed company, regulations based on the GDPR directive, tax aspects, additional business systems
for the circulation of communication or settlement of expenses in the CD PROJEKT Group. Due to the COVID-19
pandemic, all onboarding training activities in 2021 were carried out remotely.
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AND ORGANIZATION
ENVIRONMENTAL
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SUSTAINABLE
DEVELOPMENT
EVALUATION AND FEEDBACK SYSTEM
GRI 4043
Among the CD PROJEKT Group’s priorities is the development of competences of our team members and the
furnishing of opportunities to acquire new skills as part of the internal RED 2.0 transition process.
At the end of 2021, CD PROJEKT had a regular feedback system for team members in place with a related
annual bonus system. As part of the monthly and quarterly evaluation processes, employees were awarded
virtual special prizes: cups and saker falcons for the quality of their work, commitment and attitude, which also
aected their individual annual bonus.
The agile internal transition in CD PROJEKT RED calls for us to adapt the employee appraisal criteria to the new
approach in team management. The essence of the changes in the employee appraisal system planned for
2022 is to shift the focus from assessing the individual eort of each sta member to joint eort for the purpose
of incentivizing more eective communication processes and attaining high-quality goals.
Among the ways we intend to support our agile transition in 2022 will be the continued bolstering of CD PROJEKT’s
feedback culture. Our activities in this area will include encouraging all sta members to provide feedback
to their colleagues and continuing the development of 360-degree appraisals.
Both in 2021 and 2020, 100% of CD PROJEKT sta received feedback from the Company’s internal corporate
network at least on one occasion, whereby their attitude and quality of work during the respective period were
evaluated.
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AND ORGANIZATION
ENVIRONMENTAL
RESPONSIBILITY
SUSTAINABLE
DEVELOPMENT
Remuneration and job promotions
GRI 2021; GRI 4052
The remuneration rules are set forth in the CD PROJEKT Employee Compensation Policy, which
is supplemented by the principles of the annual bonus program.
Marta Żmudzińska
Compensation and Benefits Expert at CD PROJEKT:
In CD PROJEKT, we pay a great deal of attention to the equal treatment
of all team members. For several years, we have been building and
constantly improving our employee remuneration policy to ensure
a fair level of remuneration and career advancement opportunities
for each member of our sta, regardless of gender, age or nationa-
lity. To be sure that we attract the highest quality talent, we revise
our employee remuneration scale every year through benchmar-
king ourselves to the market in terms of the remuneration we oer
to sta at each job level. We obtain benchmarking data from exter-
nal sources to ensure that the process is as unbiased as possible.
An additional aspect that helps us monitor how eective our solutions
are is the compa-ratio (CR).
Due to CD PROJEKT’s employment structure arising from the specific nature
of the gaming industry, both in Poland and worldwide, and the resulting
diculty in selecting comparable data at all job levels, it was not possible to calculate the pay gap ratio for
CD PROJEKT in accordance with the definition recommended by the Best Practices of Listed Companies 2021
15
To measure the potential pay gap ratio in CD PROJEKT S.A., we used the compa-ratio
16
because we believe
it fairly reflects the gender pay ratio.
15 https://www.gpw.pl/best-practice2021
16 Compa Ratio calculated for each employee whose role was quantified in relation to a salary bracket as of 31.12.2021
(i.e. 94% of all employees of CD PROJEKT S.A.)
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AND ORGANIZATION
ENVIRONMENTAL
RESPONSIBILITY
SUSTAINABLE
DEVELOPMENT
Table 7 Compa-ratio (CR) for each employee
17
by gender in CD PROJEKT
2021
Women 99%
Men 102%
The CR is a reference to the mid-point of the salary range applied by CD PROJEKT to each employee group.
The indicated values reflect the arithmetic mean of the calculated CRs broken down by gender.
Table 8 Ratio of the remuneration of the lowest-level employees, broken down by gender, to the minimum
wage on the relevant market
2021
Women 168%
Men 195%
To calculate the ratio demonstrating the relation between the lowest-level remuneration and the minimum wage,
we took into account the lowest positions held by CD PROJEKT employees – Assistant and Junior. As at the
date of the Report, only women were employed in CD PROJEKT at the Assistant level, hence the dierence
in remuneration in the presented data.
Table 9
Career path in CD PROJEKT for women and men broken down into promotions to director,
managerial and other levels
2021
18
Career path (% of promoted women) 24,6%
promotions to director positions 0.7%
promotions to managerial positions 0.4%
other promotions 23.5%
Career path (% of promoted men) 30.4%
promotions to director positions 0.8%
promotions to managerial positions 0.8%
other promotions 28.9%
17 Employed on the basis of all types of work arrangement (employment contract, mandate, B2b, specific contract) without taking into
account the remuneration of the Members of the Management Board of CD PROJEKT S.A.
18 The Company has decided to disclose only 2021 figures given that in 2021 CD PROJEKT S.A. introduced a new role structure and new
salary brackets.
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AND ORGANIZATION
ENVIRONMENTAL
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SUSTAINABLE
DEVELOPMENT
Training and Development
GRI 4041; GRI 4042
Members of the CD PROJEKT Group strive to provide their teams with the best possible conditions for work
and professional development. Both CD PROJEKT and GOG have training teams in place that enable their sta
to improve their professional qualifications constantly.
OUR APPROACH
Marta Wilmańska-Filec,
Training & Development Team Manager at CD PROJEKT
CD PROJEKT considers professional development to mean not only
the development of job-related competencies in the respective field
or specialization, but also the development of soft skills or the exchange
of knowledge between teams. During the COVID-19 pandemic and
the ensuing remote work in distributed teams and our agile transition,
improving competences and the alignment of our skills to the
rapidly developing industry are of key significance. In CD PROJEKT,
all employees are covered by ongoing training programs.
In 2021, in CD PROJEKT, as in previous years, we conducted training
courses based on individual career development plans. Our sta
were oered participation in a number of workshops to develop their
job-related skills. We also developed a thematic scope of soft skills
workshops, which we oer to all our employees in 2022 as part of
their overall career development path. This path boosts skills of key
significance for agile transition (communication, emotional intelligence, eectiveness and negotiation).
It also provides an opportunity for solidifying ties between teams and getting to know people from
dierent areas of the organization.
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AND ORGANIZATION
ENVIRONMENTAL
RESPONSIBILITY
SUSTAINABLE
DEVELOPMENT
In 2021, within the framework of CD PROJEKT’s general training endeavors, we additionally organized sessions
in the following areas:
■
mandatory training on online safety organized in collaboration with Niebezpiecznik.pl (a total of 950 sta
of CD PROJEKT and its subsidiaries participated in the training),
■
training on how to deal with mobbing, or bullying, conducted by the Diversity Hub (more than 470 sta
participated in the training, including all management and the HR Department),
■ series of open webinars entitled Minding Your Mind, which concerned various aspects of mental health care.
In 2021, 11 webinars of this kind were held, in which an average of 200 persons participated,
■ training on agile work – in total, nearly 450 persons participated in 26 training courses for developers and the
back oce.
In 2021, a number of internal open workshops and training courses were also organized at the initiative
of our team members willing to share their knowledge with others, including the following:
■ training in how to handle confidential information,
■ workshops on 3D graphics software (5 workshops),
■ workshops on storytelling and creating gaming quests (19 workshops),
■ workshops for programmers (15 workshops),
■ training in copyright in the gaming sector.
In 2021, as part of general training, perpetual training endeavors included chiefly English and Polish language
courses for foreigners and numerous thematic courses.
43 foreign sta members in CD PROJEKT participated in Polish language classes in 2021. On average,
111 classes were held per month, translating into a total of 1,343 training hours in 2021. For those employed
in the back oce, the studio also arranged English language classes. In 2021, 35 participants took advantage
of this opportunity – an average of 81 classes were held monthly, or a total of 976 hours of English language
training throughout the year.
MANAGERIAL DEVELOPMENT PATH
In 2021, we created a new long-term development program in CD PROJEKT to enhance the key competences
of our managers. The program is tailored to the challenges existing at various management levels and lasts for
an average of 90 training hours. Each manager may choose the training type, level of advancement and formula,
all tailored to his or her preferences and needs. The diverse oering includes both online and onsite workshops
that are available in two language versions. Moreover, we diversified the forms of our training courses by oering
training based on strategic games, case studies, action learning and short workshop forms (compact learning)
lasting 2 hours each. The path begins with the Get Ready to Lead training which prepares newly promoted or
newly hired managers to perform their roles. Get Ready to Lead consists of several workshop meetings lasting
a total of 17.5 hours. In 2021, we trained a total of 58 individuals under this program.
Experienced managers are subsequently oered an opportunity to take part in:
■ managerial courage training (a two-day workshop attended by 105 people in 2021),
■ change management training (a one-day workshop attended by 47 people in 2021),
■
compact learning (meetings lasting 2 hours each, during which topics related to communication, feedback,
the manager’s role, etc., are discussed). In 2021, 94 individuals participated in at least one such workshop.
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In 2021, we continued our EmpoweRED managerial competence diagnosis program, split into two parts (online
and onsite). 57 people participated in the online part in 2021. In 2022, we intend to return to the onsite form,
that is the Development Center session, which will be wrapped up with summary feedback.
In 2021, for all graduates of the EmpoweRED program we prepared a new development
program – EmpoweRED People First. It consists of four 8-hour meetings devoted
to emotional intelligence, development talks, etc. In 2021, 43 people attended the
program.
CD PROJEKT oers an open-access training and development platform called the
HR Skill Tree. It enables sta to sign up for training, conferences and industry events,
keep track of all development meetings conducted with HR Partners and provides
access to in-house training and development materials.
In 2021, CD PROJEKT arranged a total of 10,136 hours of training attended by 693
individuals. In 2020, the corresponding numbers were 6,176 hours of training and
512 participants
19
.
In 2021, 76% of CD PROJEKT sta participated in at least one training course, compared to 57% in 2020.
In 2021, the GOG team also benefited from language classes. Moreover, GOG held workshops on stress mana-
gement and cybersecurity as well as managerial training devoted to various subjects, including the strengthening
of awareness as a leader, self-management in a period of change and provision of support to a team going
through change. In 2021, GOG also held a series of 4 workshops entitled “First-time manager”.
19 Total number of training hours in the framework of managerial, general and language training courses, as well as courses organized
in response to individual requests submitted by employees.
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Incentivization and benefits
GRI 4036
BENEFITS FOR THE TEAM
In addition to financial remuneration for sta, the Group also oers
a number of fringe benefits. Their scope depends on the place
of employment.
Healthcare – we provide funding or co-funding of medical
subscriptions in private medical facilities such as ENEL-MED,
LUXMED and MEDICOVER, operating throughout the country.
It is also possible to include family members or a partner in this
form of insurance coverage.
Sports activities – we oer Benefit/Multisport cards that allow
holders to use the most popular sports facilities throughout the
country, such as swimming pools, fitness centers, dance schools
and many more.
The Warsaw studio also has a gym available 24 hours a day,
7 days a week, which may be used under the supervision
of a personal trainer.
Flexible working hours – CD PROJEKT oers flexible working
hours. Team members may start their working day between
8 and 10 in the morning.
Library – CD PROJEKT’s onsite library oers a broad selection
of books, games and movies. In 2021, nearly 100 new items
were added to the library stock and at the end of the year a total
of 1,006 items (686 books and 320 games) were available to users.
Dogs in the oce – CD PROJEKT is a dog-friendly company.
By following a few basic rules, each employee may bring his
or her dog to the oce. The presence of a dog creates an oppor-
tunity to build good rapport with others, improves cooperation
and enhances positive behaviors between colleagues.
Events – integration meetings such as a Christmas party, a summer
picnic and various presentations, workshops, courses and training
sessions devoted to the development of skills and passions are
held several times a year.
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In 2021, due to the ongoing coronavirus pandemic, the annual Christmas party, which is a regular item on the
Group’s event calendar, was held in the form of a Christmas Market organized on the CD PROJEKT campus.
During the event, individuals professionally associated with CD PROJEKT for 5, 10, 15 and 20 years were
granted seniority awards. In 2021, 80 persons received awards on this occasion: 63 for 5 years of seniority,
8 for 10 years, 8 for 15 years and one person for 20 years of work for CD PROJEKT.
GOG also holds seasonal integration events, such as Halloween,
during which many of the company’s sta members change clothes
during working hours and end the day with a Halloween party and
a competition for the best costume. During the reporting year,
GOG also oered its team members a professional photo shoot,
rewarding their creative endeavors and then promoting the initiative
on our social media channels. Another example of a seasonal
event is the Secret Santa project in which GOG sta willing
to participate in it exchange small gifts with one another.
In addition to company-wide events, both CD PROJEKT and GOG
organize company-funded team or cross-team integration events.
PROFIT BONUSES
GRI 4012
An important element of the CD PROJEKT Group’s philosophy
is to enable all sta to share in the jointly generated profit. For several years, annually, by a decision of the
Management Board, up to 10% of the Group’s net profit has been distributed in the form of a bonus to all employees.
This bonus budget is split between individual team members according to an algorithm that takes into account,
among other factors, the person’s base salary in the respective year and the length of employment in the Group.
Incentive program based on the rights to acquire the Company’s shares
Our goal is to incentivize our team members to remain with the CD PROJEKT Group for years. Among the tools
we use for this purpose are long-term incentive plans for people of key significance to the Company and other
Group members, based on the rights to acquire the Company’s shares at a historical price set at the outset
of the plan. The Group has successfully implemented three incentive plans since its establishment. Their imple-
mentation depended on the achievement of specific financial performance objectives or a certain increase
in the share price or, in selected cases, the achievement of individual goals.
Detailed information on the current Incentive Plan for 2020–2025 can be found in the Management Board
Report on the Activity of the CD PROJEKT Group and CD PROJEKT S.A. in 2021, available at www.cdprojekt.com
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EMPLOYEE PENSION SCHEME
GRI 2013, GRI 4012
The Employee Pension Scheme (PPE) is a form of voluntary, non-public, additional savings for retirement.
It enables participants to put aside money under the third pillar of the pension system. Saving money under an
Employee Pension Scheme is long-term in nature – the contributions are paid by the employer and may also
be paid by employees on an optional basis.
In CD PROJEKT and GOG, the Employee Pension Scheme was launched in December 2019. For employees who
satisfy the length-of-employment criterion, the employer pays the base contribution of 3.5% of the employee’s
gross income, while the option available to the employee is to pay an additional contribution in an amount of his
or her choosing (at least PLN 50). At yearend 2021, 83% and 47% of eligible CD PROJEKT and GOG employees,
respectively, participated in the Employee Pension Scheme. The Group’s Employee Pension Scheme in Poland
is managed by NN Investment Partners TFI S.A.
In turn, sta employed in our Los Angeles oce participate in CD PROJEKT Inc.’s 401(k) Plan which is another
form of voluntary, non-public, additional savings for retirement supported by the employer. This is the most
popular retirement plan in the United States enabling participants to put aside money in accordance with the
procedures prescribed by the Internal Revenue Service (IRS). The 401(k) plan is long-term in nature with con-
tributions paid by employees and an additional payment by the employer.
In CD PROJEKT Inc., the 401(k) pension plan was launched in January 2016. For employees who satisfy
the length-of-service criterion, the employer undertakes to co-fund the pension plan on a 1-to-1 basis, up to
a maximum annual amount of 6% of the employee’s pre-tax income. The employee has the option of saving
funds up to the maximum limit set by the IRS for the respective year. At yearend 2021, 100% of eligible employees
of CD PROJEKT Inc. were enrolled in the plan. The contributions paid under the 401(k) plan are managed
by American Funds Distributors, Inc.
DIALOGUE WITH THE TEAM
GRI 10241
Communication with Group team members is carried out using multiple channels, as a result of which they
are informed on an ongoing basis about pending changes and the Group’s development plans.
Every year, CD PROJEKT organizes internal presentations of annual and semi-annual financial performance
of the CD PROJEKT Group, during which Management Board Members discuss the performance of the
period and plans for the near future and they also answer to questions asked in the Q&A section.
In 2021, these presentations were held online.
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In 2021, we continued the open online meetings of the
CD PROJEKT Management Board with representatives of
selected departments as part of the “Coee with the Board”
meeting series. 4 such meetings were held during the
year, which ended with Q&A sessions.
GOG continued its regular online “GOG Monthly Meetings”
during which the company’s Management Board and repre-
sentatives of selected departments presented monthly summaries of the company’s activities, including financial
results and targets to be achieved, as well as campaigns and additional activities conducted in a given month.
In 2021, the Company appointed RED Teams Representatives (RTR). RTR is an advisory body to the CD PROJEKT
Management Board, which represents the interests of those employed in CD PROJEKT. It consists of 12 team
members representing all the areas in CD PROJEKT’s structures. RTRs are elected in anonymous and demo-
cratic elections by employees other than those holding directorial and more senior positions in the organization.
Joanna Wieliczko,
Senior Producer at CD PROJEKT, RED TEAM Representative
As RTRs, we serve as a bridge between our team members and the
departments handling employee matters and the Management Board
of CD PROJEKT. We act in the interest of the entire team, representing
it in ongoing contacts with Management Board members. We want
each voice in CD PROJEKT to have a chance of being heard. This
is why, among other things, we respond to questions posed by our
colleagues and consult on the planned activities and policies aecting
the team. As RTRs, we meet regularly with the Management Board;
during these meetings we address important topics from the team’s
standpoint, discuss possible solutions and recommend actions to be
taken in individual areas.
HR Partners whose main task is supporting all CD PROJEKT employees
in their everyday work play an important role in the CD PROJEKT Group.
HR Partners oer support in HR and professional development to all employees,
take part in the onboarding process, evaluation interviews and support managers in ongoing team management.
At least once a year, live meetings are held, or online meetings and presentations of all team members
to discuss production plans for the coming year. The team gets acquainted with the roadmap for the coming months,
the priorities and the Group’s long-term development strategy.
We make all eorts to inform our team members about significant changes in the structure, production plans
or other relevant topics as soon as possible in accordance with applicable regulations, including regulations
relating to the Company’s being listed on the Warsaw Stock Exchange.
No collective bargaining agreements exist and no trade unions operate in any of the Group companies.
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Diversity and Inclusion
CD PROJEKT has had its Diversity Policy in place since 2018. It sets out the fundamental values we accept
in the Company in relations with team members, key managers and representatives of the Management Board
and Supervisory Board.
CD PROJEKT is also a signatory of the Diversity Charter. It is an international initiative under the auspices
of the European Commission that obligates us to forbid discrimination in the workplace and take action to create
and promote diversity and engage team members and business partners in such actions.
In 2021, CD PROJEKT received the “Leader in Diversity 2022” title awarded by The Financial Times and Statista.
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OUR APPROACH
Agnieszka Szamałek-Michalska,
Culture, Diversity & Inclusion Director at CD PROJEKT
Tolerance and mutual respect are the foundations of the CD PROJEKT
Group.
At CD PROJEKT, we promote diversity since we believe that a work
environment based on respect fosters openness and trust thereby
allowing people to reach their full potential; this way, it also contributes
to the depth, innovation, and appeal of our creations. We believe that
diversity strengthens and enriches our organizational culture.
We do not tolerate any forms of discrimination, bullying, abuse
or persecution, with respect to team members or third parties.
In the recruitment process, but also in the context of the feedback
culture or promotion decisions, we evaluate our candidates and team members solely on the basis
of their competence and professional achievements, with no regard to other factors such as gender,
age, nationality, race or sexual orientation.
Key diversity data for CD PROJEKT
GRI 4051
At yearend 2021, women accounted for 29% of all sta in the CD PROJEKT Group. This figure is higher than it was
at the end of 2020 and higher than women in the Polish gaming industry, which was estimated at 26% in 2020
20
.
Chart 3 Percentage of men and women among CD PROJEKT Group sta
0
300
600
900
1200
2020 2021
Men
Women
73%
27%
+9%
-1%
71%
29%
20 State of polish video game industry 2020, Krakow Technology Park, page 125, kpt.krakow.pl/wp-content/uploads/2020/12/kpbg2020.pdf
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Table 10 Total number of CD PROJEKT and GOG employees at the end of 2021, by gender and age
CD PROJEKT GOG
Total 953 170
Women 275 46
<30 88 17
30-50 185 30
No data available 2 –
Men 678 124
<30 213 49
30-50 453 75
50> 4 –
No data available 8 –
Table 11 Structure of management
21
in the CD PROJEKT Group, by gender
2020 2021
in % in %
Women 51 23% 47 22%
Men 172 77% 163 78%
Total 223 100% 210 100%
The average age of people employed in CD PROJEKT and GOG in 2021 reflects the trends in the game deve-
lopment sector in studios across the world. More than half of the team members (56%) are between the ages
of 30 and 39. The second largest is the 20 to 29 age group, which makes up 33% of all employees. In 2021,
the average age of the Group’s employees was 32.
21 Head, Manager, Lead, Director, Chief
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Chart 4 Distribution of age of CD PROJEKT Group employees in 2020 and 2021
0-19
20-29
30-39
40-49
50-59
0
100
200
300
400
500
600
700
2020 2021
Foreigners represent 22% of all CD PROJEKT Group employees. At the end of 2021, Group companies employed
people from 43 countries in the world. Other than Poland, they originated mainly from Ukraine (35 people),
United States (35 people), Canada (23 people), Russia (21 people) and France (16 people). In order to support
the process of changing the country of residence, the HR Department at CD PROJEKT provides foreigners with
active assistance during the moving process and in the first months of their stay in Poland.
Table 12 Number of foreigners employed in the CD PROJEKT Group at the end of 2021
Total foreigners 264
Women 61
<30 25
30-50 33
>50 1
No data available 2
Men 203
<30 60
30-50 135
>50 1
All CD PROJEKT Group employees are entitled to parental leaves in accordance with the applicable provisions
of law. Those include all types of leaves, to which people are entitled on account of giving birth to/taking
in a child, such as maternal leave, additional maternal leave, parental leave, child-rearing leave.
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Table 13 Number of CD PROJEKT Group employees who took advantage of parental leaves in 2021
2021
Number of employees who took advantage of parental
leaves
Women 27
Men 20
At the end of 2021, CD PROJEKT and GOG had 5 employees with disabilities.
Our head oce in Warsaw has been adapted to the needs of the disabled, i.e. the building features wide eleva-
tors, 4 disabled bathrooms and there is also a dedicated parking space next to the entrance in the building.
We are also trying to be open to the unique needs of each employee, customizing the workstations to the
specific requirements associated with their health conditions or disabilities.
DIVERSITY IN SUPERVISORY AND MANAGEMENT BODIES
GRI 4051
In accordance with the Diversity Policy in eect in the Company, both the Management Board and the Supervisory
Board of CD PROJEKT, as well as the key management of the Company, adhere to the general principle
of non-discrimination among team members and corporate bodies. The Company has conducted and continues
to conduct a policy of appointing competent, creative people with appropriate professional experience and
eduction to its corporate bodies and as key managers. The Company believes that other factors, including
gender, are not relevant in this respect.
Management Board and Supervisory Board Members are educated in areas such as management, marketing,
finance, law or IT. All CD PROJEKT Management Board members have many years of experience on management
positions in the CD PROJEKT Group.
In 2021 and 2020, the Management Board of CD PROJEKT was comprised of men only, while there was one
woman on the Company’s Supervisory Board, discharging the role of the Supervisory Board Chairwoman.
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Table 14
Composition of the CD PROJEKT S.A. Management Board and Supervisory Board as at the date
of publication of this report, by age and gender
CD PROJEKT S.A.
Management Board Supervisory Board
Total 8 5
Women – 1
30-50 – 1
Men 8 4
30-50 7 2
>50 1 2
Diversity in our games
Marcin Blacha,
Story Director at CD PROJEKT:
At CD PROJEKT, we are committed to create virtual worlds that are
as immersive as possible and provide gamers with high quality
entertainment. For this reason, we create a reality that is credible
and internally consistent. We reflect the diversity of our world in large
and small things and its bright and dark sides. This is how we create
fantastic worlds inhabited by people of flesh and blood entangled in
events that are emotionally engaging. We believe that only such deep
worlds may engage gamers enough so that they want to come back
to them. Depth is achieved by designing digital reality from various
elements in such a way that it can be fashioned into a mosaic.
Gamers are the final creators of this mosaic. By replaying the stories
we prepared using their expectations, they create their own expe-
riences and the game as an interactive medium makes this possible
by oering a variety of choices. Our customers live in dierent places
of the world. They are shaped by dierent cultures and local conditions, so we must make sure that
everyone can find elements to create their own subjective experience in the worlds we create and
in the stories we tell.
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We are making eorts to place in our games characters of dierent personalities, social classes, ethnic
groups and sexual preferences. We show the inequality that exists in the world, the diverse paths that
people take, as well as various problems they must overcome. The man, with all his flaws and virtues,
is at the center of our interest. This is why we do not shy away from controversy but try to arm all
that is best in humanity. When we introduce new characters into our stories, first we must make sure
that we have created an interesting heroine or hero and then take a broader view on our creation,
to make sure that the character is a good fit for the contrasting world we have created and in the
emotionally-charged story.
We believe that, in a world in which good interacts with evil, people are capable of the very worst
deeds, but also of the very best ones. We are also aware that daily life in the world is not always
an arena for the struggle between good and evil; it is comprised of small wrongdoings and small heartfelt
gestures. People seek their place in the world by taking winding paths, facing the challenges created
by misfortune, nature and society. For us, presenting the daily struggle for a better life is usually more
interesting than clashes of ideas.
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Diversity initiatives
PRIDE MONTH COLLECTION AT GOG.COM
The Pride Month collection is a special collection of games published for the
Pride Month
22
, which features, year-round, the list of favorite games with
LGBTQIA+ themes selected by queer members of the GOG team. In 2021,
this collection was presented at GOG.COM for the first time, but we plan to
continue this initiative and expand it with additional campaigns supporting
the LGBTQIA+ community. On the Polish market, the Pride Month collection
was supported by “Replika”, the only LGBTQIA+ magazine in Poland.
On 18 June 2021 on the occasion of Pride Month, the ocial Twitch channel
of CD PROJEKT RED studio hosted a charity stream for the benefit of the
Campaign Against Homophobia. For 14 hours, members of the studio’s team
live-streamed their GWENT, The Witcher or Cyberpunk 2077 gameplay, while
collecting donations for an organization supporting sexual minorities. During
the campaign, the viewers donated PLN 12,500 and CD PROJEKT RED matched
this amount with PLN 50,000.
Gabriela Siemienkowicz,
Community Management Team Lead at GOG
At GOG, we are connected by the belief that building an inclusive
culture in organizations is a worthwhile undertaking. Every company
consists of people with dierent views, convictions and needs, so an
inclusive culture is needed to make everyone feel part of the team.
The Pride Month celebration at GOG.com was our way of supporting
diversity and minorities; this way, we were also able to engage queer
employees within our company. Everyone at GOG is encouraged
to organize grassroots activities in a similar fashion, regardless
of their position. In 2021, among other things, we carried out a fundraiser
for the “I Have A Dream” Foundation, in which GOG and CD PROJEKT
employees “appraised” the value of their talents or self-produced
items by oering them in internal auctions.
22 June is conidered a pride month worldwide
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GIRLS IN THE GAME!
In October 2021, we launched “Girls in the Game!”, the first
Karolina Grochowska memorial scholarship and mentoring
program. We are implementing this program in cooperation
with the Perspektywy Educational Foundation. The program
is addressed to young women in senior years of high school
and is aimed at learning the practical aspects of working in
gaming, with support from female and male mentors from
CD PROJEKT RED representing various specializations – from
programmers to artists, writers, testers or game localization
specialists. In addition to substantive knowledge and mentoring
support, the participants will also receive financial support –
an annual scholarship of PLN 1000 per month to cover the
costs of education and development.
More than 1,500 participants applied to take part in the first edition of the program and the program itself was
recognized by the ASZdziennik portal, which awarded it the ASZ Five – Five for a nice gaming event.
More information on the Girls in the Game! program is provided on the project’s website
https://dziewczynywgrze.pl/
PRACTICAL GUIDE FOR THE ORGANIZATION: “THE CULTURE
OF DIVERSITY AND INCLUSION STEP BY STEP”
In June 2021, we worked with our partners to issue the Practical Guide for the Organization: “The Culture
of Diversity and Inclusion – Step by Step”, in which we compiled the knowledge and presented best practices
in the area of D&I.
The guide is the result of the work of the D&I Roundtable group – the individuals managing diversity and
building an inclusive culture in 15 dierent organizations and companies, the Polish Institute for Human Rights
and Business, Diversity+ and independent male and female experts, with the financial support of the Embassy
of the Netherlands in Poland.
The content of the guide is available on the website of the Polish Institute for Human Rights and Business.
DIVERSITY SCAN
In 2021, CD PROJEKT launched cooperation with the Diversity Hub to carry out a Diversity Scan – a review
of the organization in terms of the perception of diversity and inclusion by our team members, compared
with its actual presence. Based on the recommendations provided in the report, we plan to introduce new
D&I initiatives in CD PROJEKT.
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CD PROJEKT FOR PARENTS
In 2021, for the first time especially for parents, we organized webinars on building relationships with children.
A total of 60 parents took part in two events. In the summer months, we also organized and co-financed,
for the first time, day camps for children of our employees. 15 children took part in the day camps with the
leading theme of ecology and healthy eating habits. In 2021, we also provided our team members with 50 sets
of clothing and accessories for newborn babies.
Health and well-being
As stated in the assumptions for the CD PROJEKT Group Strategy Update of March 2021, our priority is
to provide the CD PROJEKT team with a stable and safe work environment. In addition to ensuring compliance
with the occupational health and safety (OHS) regulations, we are undertaking numerous initiatives to improve
the comfort of work at CD PROJEKT, both in terms of health and well-being, as well as comfort at the workplace.
OCCUPATIONAL HEALTH AND SAFETY OHS
GRI 4031; GRI 4033; GRI 4034; GRI 4035; GRI 4038; GRI 4039
All CD PROJEKT and GOG employees with an employment contract are referred to initial medical testing upon
hiring. They also undergo regular or ad-hoc medical tests in accordance with referrals considering the nature
of their work. The Group cooperates with three medical chains, where occupational medicine tests are carried out
23
.
23 Periodic medical examinations were suspended in 2021 due to the ongoing coronavirus pandemic.
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On the first day at work, employees undergo an orientation OHS training in e-learning form (valid 1 year
for administrative and oce positions and 6 months for management positions). Periodic training is also
carried out; it is valid 6 years for administrative and oce positions and 5 years for management positions.
CD PROJEKT has in place the Occupational Health and Safety Committee, which represents the interests
of all of the company’s employees. It is an advisory and consultative body for the employer to ensure that
occupational health and safety conditions are observed and improved. The Committee is composed
of 6 people: three representatives of the employer and three representatives of employees (elected in a vote).
OHS Committee meetings are held no less frequently than once a quarter. The Group also has a Senior OHS
Inspector.
In 2021, no workplace accidents occurred in CD PROJEKT and GOG, while in the previous year one such
accident occurred in CD PROJEKT S.A.
ACTIONS TO BENEFIT THE TEAM’S HEALTH AND WELLBEING
GRI 4036
In spite of pandemic-related restrictions, in 2021 CD PROJEKT carried out the third Cancer Awareness
Week, which is a prevention and education campaign addressed to our team members. As part of this event,
we organized ultrasound tests of breasts and testicles and blood tests. We also organized an educational
webinar on a healthy diet.
All year round, we encouraged our team members to move more. At CD PROJEKT,
we organized three editions of the “Be Healthy – Run&Cycle” sports program
oering motivation to engage in physical activity. After each edition of the
challenge, the highest scorers received prizes. Overall, more than 200 people
took part in three editions of the program. At GOG, everyone willing was
able to use a free massage at the oce.
In 2021 we also provided psychological support for our team. As part
of the workshop series entitled “Minding your Mind”, we organized 11 online
meetings with expert psychologists and coaches on the topic of how
to care for your well-being, with the average attendance of nearly 200 viewers.
The CD PROJEKT team also has access to unlimited consultations and
meetings with a psychologist that they may use whenever such a need arises.
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In 2021, CD PROJEKT continued the initiative of sending fruit and vegetable baskets to our team members
in order to support their immunity during the spring.
In 2021, we worked on the development of the report entitled “Work Models in The New (Ab)Normal”, which is
the most comprehensive Polish review of studies of work models introduced during and before the pandemic.
We additionally carried out a declarative survey of the psychological well-being of our employees and their
work model preferences. Overall, 825 team members took part in the survey.
You are welcome to read the report, which is available on our website www.cdprojekt.com
INVOLVEMENT OF THE CD PROJEKT GROUP
IN REDUCING EFFECTS OF THE CORONAVIRUS PANDEMIC
In 2021, we continued the activities aimed at ensuring security of our team and enabling oce-based
and hybrid work for some of the sta.
Among other things, in 2021:
■
we performed 16,236 COVID-19 antigen tests in our oces; testing was carried out at least twice a week,
depending on current needs and the epidemiological situation,
■ we allowed three COVID-19 vaccine doses to be administered in our oce in Warsaw,
■
we cooperated closely with an experienced specialist physician in introducing procedures at our oce
and the rules of conduct in the event of infection, contact with an infected person, worrying symptoms,
■
we organized 4 webinars in Polish and English with a specialist physician on the topic of safety
during the pandemic,
■ we conducted an anonymous survey of the health condition of our team members.
In 2021, we spent PLN 1.2 million on activities directly related limiting the eects of the coronavirus pandemic.
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Initiatives to augment work comfort
GRI 4037
Dominika Smolińska,
Administrative Manager at CD PROJEKT
At CD PROJEKT we attach great importance to the provision of comfor-
table working conditions. We design our oces to make sure that,
while combining modern technology with elements referring to the
natural environment, they also support collaboration, focus and
creativity of our team.
Our head oce is located in Warsaw. It has full technical infrastruc-
ture facilitating production and publication of top class video games,
including, among others, a professional, full-dimension motion capture
studio, nine sound recording studios, a video recording studio and
training rooms (including a drawing room). The oce also features
attractive common areas, two cafeterias with full kitchens, conference
rooms, social areas, chill-out zones and a gym.
The CD PROJEKT Group has also oces in Kraków, Wrocław, Vancouver and
Boston, in which developer teams are working and it operates local oces in Los Angeles, Tokyo and Seoul.
In 2021, we conducted modernization work in the Warsaw Campus to adapt the existing buildings to the needs
of the growing CD PROJEKT Group team:
■ we opened a new gym on the area of about 600 square meters with a clim-
bing wall, a place for pilates classes, a boxing space, comfortable bathrooms
and dressing rooms,
■ we renovated part of the Training Center, after which we currently have 6
fully-equipped training rooms,
■
we modernized about 560 square meters of oce space for the Spokko
team and 3 floors with the space of 1,200 square meters for the GOG team.
■ we installed 15 soundproof meeting booths (for two and four people) in the
Warsaw oces and 1 booth of this type in the Kraków oce. The booths are
a modern solution that supports eective work at an oce: they reduce noise
to 36 dB (where the standard noise level at an oce is 70 dB) and reduces
the audibility of conversations for people outside to the minimum.
When designing CD PROJEKT oces, we try to follow the innovative biophilic
design trend, which aims to bring back natural elements to the places where
we live and work. In order to create a healthy and friendly environment, we
endeavor to use natural materials for interior arrangements. Elements referring
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to nature may be replicated in the workplace in many dierent ways – by introducing vegetation, ensuring
access to natural light where possible, or using wooden elements in the arrangements.
In 2021, we implemented the next stage of the green oce project by introducing 217 new plants.
When arranging our oces, we attach great care to comfort and occupational hygiene. All oce chairs are
adjustable (armrests, height, back) and we provide adjustable desks for employees with medical recommen-
dations. In each room, the intensity of lighting is adjustable. The Warsaw oce has two chill-out zones with
hammocks, bean bags, pillows and comfortable armchairs.
In Q3 2021, we launched the construction of a multi-level parking garage at the CD PROJEKT campus
in Warsaw, with a leisure zone and an open oce on the roof. The parking garage will ultimately oer CD PROJEKT
employees 129 charging stations for electric cars. The construction of the parking lot begins a multi-stage, com-
prehensive process of essential changes to CD PROJEKT’s campus in Warsaw, which we want to transform in
the coming years into a completely new complex: contemporary, comfortable and suited to the needs of the
fast-growing Group.
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The two-story part of the parking garage above the ground will feature a stainless steel façade, largely covered
with a wall of plants. The roof of the parking garage is the space where we want to create, among others,
an open-air co-working zone and a sports zone with the equipment for cross-fit exercises.
In late 2022 or early 2023, we plant to commence the construction of a six-story oce building with an under-
ground parking garage. In addition to the use of the most contemporary, environmentally-friendly ventilation
and air-conditioning solutions and water and sewage installations that facilitate lower water consumption,
the building will also feature wooden structural elements and green balconies along all of the glass facades
with large sliding windows, which can be used to let air in from the outside to ensure natural cooling and
create exceptional working spaces. The walls of the building are to be covered with plants and vines, which
will be watered with retained rainwater. All parking spaces in the garage will oer chargers for electric cars.
The underground part of the building will also contain infrastructure for those who commute by bicycles.
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Employer Branding
In 2021 we energized our Employer Branding activities for CD PROJEKT.
In the first stage of work in September 2021, we conducted an internal survey to see how CD PROJEKT
is perceived as an employer. The survey covered 76% of CD PROJEKT’s team. In the next stage of the process,
we conducted more than 100 in-depth interviews and workshops with our team members representative of
dierent levels and areas of the organization. The data collected in these activities will form the basis for us to
develop a new Employer Branding Strategy for CD PROJEKT, which will form the basis for carrying out activities
in this area in the coming years.
Charity
CD PROJEKT has a Donation Policy in place, which sets forth the rules for
giving donations to social organizations.
In 2021, we conducted two large charitable campaigns in the CD PROJEKT
Group in which our team got involved actively.
On Children’s Day and in a charitable holiday campaign, we organized
an auction of skills and various forms of spending leisure time together that
were oered by our team members. Two members of the CD PROJEKT
Management Board also participated in the campaign: Adam Badow-
ski auctioned a walk in Łódź where he was raised and Marcin Iwiński
– making hummus together. Other auctioned activities included, among others:
a singing lesson, an English lesson for children, a walk in Warsaw’s Praga
district, a salsa lesson or an evening with board games. As part of the
Children’s Day activities, we raised approximately PLN 20 thousand, which
was donated to the I Have A Dream Foundation. About 200 members of our
team took part in the June project.
During the holiday charitable campaign, in addition to the skill auction, we also organized an auction of pastries
and sweets and raised in total about PLN 26 thousand. The funds were donated to the Ocalenie Foundation.
We did not forget our four-legged friends: we organized a pet food collection and sold calendars, the proceeds
from which we donated to support medical care for dogs from the shelter in Paluch in Warsaw.
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SUPPORT FOR WARTORN REFUGEES FROM UKRAINE
One day after the Russian invasion of Ukraine started, i.e. on 25 February of this year, acting in the spirit
of solidarity with the victims of this aggression, we donated PLN 1 million to the Polish Humanitarian Campaign
designated for helping refugees and victims of the ongoing armed conflict in Ukraine. Considering the need
to coordinate the aid eorts being undertaken, CD PROJEKT set up an inter-departmental team consisting
of representatives of the International Communication, Administrative, HR and Payroll and Legal Departments.
Its task is to monitor the situation on an ongoing basis and directing aid to where it is most needed.
As CD PROJEKT we also oered to help the Ukrainian members of our teams and their loved ones. We provided
psychological support and legal assistance and we organized their stay in Poland. So far, 2 families have taken
advantage of our oer of lodging. From the early days of the war we have also stayed in regular contact with all
of the members of our team. We advise them of the company’s decisions, the possible forms of volunteerism
and changes to government regulations.
We organized a collection of basic personal hygiene products in collaboration with non-governmental
organizations: SOS Wioski Dziecięce and the Ocalenie Foundation. We jointly prepared meals in the canteen
in our oce for refugees residing in reception points. We organized a special stream on 14 March 2022 on the
CD PROJEKT channel on the Twitch platform during which representatives of CD PROJEKT played the studio’s
games. We donated PLN 15 thousand during this event for the Siepomaga.pl Foundation.
Faced with the ongoing war-time activities on 3 March 2022 the CD PROJEKT Management Board decided to
refrain from selling the CD PROJEKT Group’s products and selling games available on the GOG.COM platform
in Russia and Belarus.
On top of the initiatives organized as part of the CD PROJEKT Group, our team members actively supported
a number of grassroots initiatives to help refugees from Ukraine. All of the volunteers directly involved
in helping refugees received 3 additional days of paid leave to use up to the end of March 2022 to support
them in their eorts.
At the same time, we are working on programs to develop and employ people from Ukraine. CD PROJEKT
declared its willingness to cooperate under the following initiatives: Gaming Industry for Ukraine, Help4Ukraine
and Art Students from Ukraine.
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Membership in trade organizations and public affairs
GRI 10213; GRI 4151
CD PROJEKT does not support political parties and movements. At the same time, we actively participate
in a number of trade initiatives. We are particularly engaged in the activities of the Polish Games Association
whose purpose is to support the development and enhancement of the competitiveness of the domestic video
game sector on the international arena. We are also a member of the Polish Association of Listed Companies,
an organization that cares about the development of the Polish capital market.
At CD PROJEKT we support the engagement of our team members in events and initiatives to develop
the gaming sector in Poland and across the world that are organized by public and private institutions alike.
Selected events in 2021 in which representatives of CD PROJEKT took part:
■ a series of live meetings and lectures on the gaming sector addressed to law students as part of the Game
Academy; a project organized by CD PROJEKT and the Baker&McKenzie law firm,
■
speech during the Fourth Regional Conference on IP in the Digital Economy for Small and Medium-sized
Enterprises (SMEs) as part of the Global Intellectual Property Conference in Budapest,
■ panel on music in games as part of the Games Industry Law Summit in Vilnius,
■ panels as part of the UN Global Digital Summit in Katowice,
■ lecture on the practice of law in the video game industry in response to an invitation from the Harvard Video
Game Law Association.
0404
RESPONSIBLE GOVERNANCE
AND ORGANIZATION
IN THIS SECTION YOU WILL FIND THE FOLLOWING INFORMATION:
■ what goals we set for 2022 in governance and organization,
■ what powers the main corporate bodies of CD PROJEKT S.A. have,
■ how we govern compliance in CD PROJEKT S.A.,
■ how we care about compliance in the key aspects of our business.
CD PROJEKT Group’s 2021 Sustainability Report
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Goals of the CD PROJEKT Group in governance and organization
GRI 1032; GRI 1033
Detailed information regarding the actions we are taking that are aligned to the execution of goals 8 and 12
in Agenda 2030 can be found below in this section.
GOVERNANCE AND ORGANIZATION
AREAr GOAL
PLANNED DATE
OF EXECUTION
■ Managing ESG issues ■ Creation of the ESG Strategy
in CD PROJEKT S.A.
■ 2022
■ Compliance Formalization of the compliance system
in CDPROJEKT S.A., including protection
for whistleblowers, fighting corruption
and protecting human rights
■ 2022
■ Ethics Growing the number of training sessions
regarding the law and ethical behavior in
business among other things, in reporting
violations, including undesirable behavior
in mutual relations and inclusive leadership
■ 2022
■ Information security Unifying the standards for managing
information security in the CD PROJEKT
Group, among other things, by adopting
the Information Security Policy in the
CD PROJEKT Group
■ 2022
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Our approach to responsible governance and organization
Ewelina Jarosz-Zgoda,
Director of the Legal Department, Compliance Ocer at CD PROJEKT
In the CD PROJEKT Group we are constantly working on impro-
ving our internal processes in governance and organization based
on the regulations of law and the Code of Best Practice for WSE-Listed
Companies of July 2021. In corporate governance we care about
creating eective mechanisms aligned to the magnitude of the Group’s
business and its distinct nature, and above all mechanisms that function
in practice, not just on paper. It is important to us that we observe high
standards within CD PROJEKT, e.g. by transparently splitting obliga-
tions between the Company’s key decision-making corporate bodies
and in relations with the external world, with our clients – gamers and
with representatives of the capital market community.
In 2021 in CD PROJEKT we focused chiefly on strengthening our systems
and functions in respect of internal control, risk and compliance management.
At the same time, on a daily basis we strive to utilize the solutions new technologies oer so as to align the
business of the Company and its corporate bodies to new challenges and opportunities such as remote work.
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Corporate bodies of CD PROJEKT S.A.
GRI 10218
The corporate bodies of CD PROJEKT are as follows: General Meeting, Supervisory Board Management Board.
There is one standing committee that functions as part of the Supervisory Board, namely the Audit Committee.
The Company’s corporate bodies exercise their rights and discharge their duties in accordance with the
regulations of the law in force, the provisions of the Company’s Articles of Association and internal regulations
and policies, including chiefly the Management Board Regulations, the Supervisory Board Regulations and the
General Meeting Regulations.
We do our utmost for the activities of the governing bodies of CD PROJEKT to be aligned with the
Code of Best Practice for WSE-Listed Companies (WSE Code of Best Practice), which took eect on
1 July 2021. Information regarding the Company’s application of the standards set out in the WSE Code
of Best Practice is available at www.cdprojekt.com.
The split of powers among the Company’s governing bodies does not deviate from the fundamental standards
adopted for joint-stock companies in Poland. The transparent split of functions among the governing bodies
and their smooth cooperation allow the Company to act eectively when it comes to pursuing the Group’s
objectives and curtail the ensuing risks.
There were no changes to the composition of the Company’s Management Board in 2021, which is covered by
the Report; however, there was a change to the composition of CD PROJEKT’s Supervisory Board. On 25 May
2021 Jan Wejchert joined the Supervisory Board, taking the position held by Krzysztof Kilian who tendered his
resignation from serving in this capacity on 17 May 2021.
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Scheme 5 Composition of the Supervisory Board and the Management Board of CD PROJEKT and functions
performed by individual members of these governing bodies
Supervisory Board
Katarzyna Szwarc
Supervisory Board
Chairwoman
Piotr Pągowski
1
Supervisory Board
Deputy Chairman
Maciej Nielubowicz
Supervisory Board
Secretary
Michał Bień
2
Supervisory Board
Member
Jan Wejchert
3
Supervisory Board
Member
1,2,3 The criterion of independence specified in Art. 129 sec. 3 of the Act of May 11, 2017 on statutory auditors and companies
public audit and oversight
Management Board
Adam Kiciński
President, Joint CEO
Marcin Iwiński
Co-founder, Joint CEO
Piotr Nielubowicz
Member of the Board, CFO
Adam Badowski
Member of the Board,
Studio Head
Michał Nowakowski
Member of the Board, SVP
Business Development
Piotr Karwowski
Member of the Board
Paweł Zawodny
1
Member of the Board, CTO
Jeremiah Cohn
2
Member of the Board, CMO
1, 2 Paweł Zawodny and Jeremiah Cohn were appointed to serve as Management Board Members of the Company after the
balance sheet date, i.e. under resolutions adopted by the Company’s Supervisory Board on 26 January 2022, with the
eective date for both of them being 1 February 2022.
Shareholder Meeting
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MANAGEMENT BOARD OF CD PROJEKT S.A.
Adam Kiciński – President, Joint CEO
Oversees formulation of the Company’s and its Capital Group’s business strategies and supports their practical
implementation. Coordinates Company activities in the scope of investor relations.
Marcin Iwiński – Co-founder, Joint CEO
Coordinates the Company’s policies and activities on the international stage. Participates in supervising
and managing foreign member subsidiaries of the Company. Co-develops and coordinates publishing activities
around the world. Coordinates and participates in shaping communication with gamers.
Piotr Nielubowicz – Member of the Board, CFO
Coordinates the Company’s financial and accounting branches; ensures that the Company meets its financial
reporting obligations. Participates in investor relations.
Adam Badowski – Member of the Board, Studio Head
Heads the CD PROJEKT RED development studio which is owned by the Company. Co-develops the conceptual
framework and artistic vision of projects carried out at CD PROJEKT RED.
Michał Nowakowski – Member of the Board, SVP Business Development
Co-develops and coordinates the Company’s global publishing activities. Oversees formulation and implemen-
tation of the Company’s sales policies.
Piotr Karwowski – Member of the Board
Supervises the Group’s activities related to online games and services, as well as cybersecurity. Also responsible
for the activities and development of the GOG.COM segment, and of GWENT.
Paweł Zawodny – Member of the Board, CTO
Serves as Chief Technology Ocer (CTO) and production head at CD PROJEKT RED. Oversees the technological
and organizational transformation of CD PROJEKT RED.
Jeremiah Cohn – Member of the Board, CMO
Responsible for coordinating the activities of marketing and communication departments as Chief Marketing
Ocer (CMO). Also manages the newly established franchise development team.
Management Board members represent the Company and its Management Board. Management Board mem-
bers cooperate with one another, share information regarding important matters aecting the Company, jointly
manage the Company and jointly bear the associated responsibility. The Management Board, acting as a col-
lective body, formulates the Company’s strategies, develops its financial plans and manages the Company in
such a way as to ensure implementation of these strategies and plans. The Management Board has embraced
the concept of collective management in order to enhance its own capabilities for strategic thinking, build
upon its positive energy and uphold the belief that nothing is truly impossible. Deep mutual trust, coupled with
a shared set of core beliefs and ethics, enable the Management Board to discharge its duties eciently and
without undue bureaucracy.
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COMPOSITION AND PROCEDURE FOR SELECTING MEMBERS OF THE GOVERNING BODIES
GRI 10222; GRI 10223; GRI 10224; GRI 10219
People holding the appropriate competences, skills and experience are appointed to sit on the governing
bodies to achieve the highest standards in how the Company’s Management Board and Supervisory Board
perform and discharge their duties eectively.
Management Board of CD PROJEKT S.A.
GRI10226
The Supervisory Board appoints and dismisses Management Board Members, including the President of the
Management Board. Management Board Members are appointed for a joint four-year term of oce. Under
resolutions adopted by the Company’s Supervisory Board on 25 May 2021 all of the hitherto Management Board
members (namely Adam Kiciński, Marcin Iwiński, Piotr Nielubowicz, Adam Badowski, Michał Nowakowski and
Piotr Karwowski) were appointed for another term of oce. According to practice to-date the selection of the
Management Board Members was accomplished primarily based on factors such as professional experience,
knowledge and education.
The scope of the Management Bo-
ard’s activity includes all aairs related
to running the Company that are not
stipulated as powers of the General
Meeting and Supervisory Board
by the regulations of the commer-
cial company code and provisions of
the Company’s Articles of Associa-
tion. Among other things, the Mana-
gement Board of CD PROJEKT S.A.:
■
acting jointly, defines the Compa-
ny’s strategy and its major operating
objectives, devises and prepares
the Company’s financial plans and
manages it in a manner enabling
it to execute the adopted strategy,
objectives and financial plans;
■
it provides for the transparency and eectiveness of the Company’s governanc and handling its aairs
in accordance with the regulations of law and the Code of Best Practice for WSE-listed Companies,
■ it is responsible for the functioning of the Company’s internal control system and the significant risk manage-
ment system which are aligned to the business done by the Company.
Management Board resolutions are adopted by an absolute majority of votes, where in the event of a tie vote,
the President of the Management Board casts the deciding vote.
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RCD PROJEKT S.A. Supervisory Board (including the Audit Committee)
The Company’s Supervisory Board consists of five members appointed and dismissed by the General Meeting.
Supervisory Board Members are appointed for a joint four-year term of oce. Supervisory Board Members
at the first meeting in their new term of oce select the Supervisory Board Chair, Deputy Chair and Secretary.
On 25 May 2021 the Company’s Ordinary General Meeting appointed Jan Wejchert to the Supervisory Board.
At the same time, all of the Company’s other Supervisory Board members, i.e. Katarzyna Szwarc, Michał Bień,
Piotr Pągowski and Maciej Nielubowicz were appointed by the General Meeting to the Supervisory Board for
another term of oce. On 25 May 2021 the Supervisory Board selected the members of the Audit Committee
in its current term of oce, namely: Michał Bień, Maciej Nielubowicz, Jan Wejchert, Piotr Pągowski and Kata-
rzyna Szwarc.
According to practice to-date the selection of the Supervisory Board Members was accomplished primarily
based on factors such as professional experience, knowledge and education. The time commitment made
by the Supervisory Board members to the Company’s aairs facilitates the proper execution of their duties
in line with circumstances and current needs.
The Company’s Supervisory Board Members produce statements of their independence
24
in accordance with
which three of the Company’s Supervisory Board members satisfy the independence criterion on the date
of publication of this Report (Michał Bień, Jan Wejchert and Piotr Pągowski).
The functioning of the Company’s Audit Committee is based on the
CD PROJEKT S.A. Audit Committee Regulations. According to the Regulations,
the Audit Committee consists of at least three members, including the Cha-
irman of the Audit Committee selected in open balloting by the Supervisory
Board for the duration of its term of oce from among the Supervisory Board
members. The criteria for selecting Audit Committee members comply with
the regulations of prevailing law and are also specified in the Audit Committee
Regulations. The function of the Chairman of the Audit Committee is performed
by an independent Supervisory Board member and is not coupled with the
function of the Chairman of the Supervisory Board. The Supervisory Board
designates the Audit Committee members at the first meeting during a given
term of oce.
Among other things, the CD PROJEKT Supervisory Board:
■ constantly supervises the Company’s business in all of its areas,
■ designates the statutory auditors to audit the annual financial statements,
■ opines the Management Board’s motions to the General Meeting,
■ authorizes the Management Board to buy and sell the title of ownership or permanent usufruct to real property
and a share in real property,
■ prepares reports on remuneration for members of the Management Board and Supervisory Board and activity
reports encompassing a concise assessment of the Company’s standing incorporating the Company’s internal
control system and the significant risk management system.
24 including the absence of real and significant ties to a shareholder holding at least 5% of the total number of votes in the company
prescribed by Attachment II to the European Commission’s Recommendation of 15 February 2005 on the role of non-executive
or supervisory directors of listed companies and on the committees of the (supervisory) board (2005/162/EC), and Article 129 sec. 3 of the Act
of 11 May 2017 on Statutory Auditors, Audit Firms and Public Supervision
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Taking down liabilities and buying or selling property worth more than 10% of the Company’s equity disclosed in
the Company’s latest publish period statements also require the Supervisory Board’s consent expressed in the
form of a resolution, with the exception of activities related to the sales of the Company’s products and services.
The Supervisory Board adopts resolutions by an absolute majority of votes with the exception of aairs that
according to the provisions of the Articles of Association are approved by a ⁴⁄ majority of the votes cast
(e.g. appointing and dismissing a Management Board Member, including the President of the Management
Board, suspending a Management Board Member from serving and seconding a Supervisory Board Member
to perform the duties of a Management Board Member temporarily, on aairs relating to contracts between the
Company and a Management Board Member and on aairs relating to disputes between them).
Shareholder Meeting of CD PROJEKT S.A.
The consent of the Company’s General Meeting is required to make decisions that are crucial to its operation.
This corporate body’s powers include the following, among others:
■ approving financial statements and the Management Board’s activity reports,
■
granting discharges on the performance of duties to the Company’s Management Board and Supervisory Board,
■ adopting a resolution on the distribution of profit or coverage of the Company’s losses,
■ expressing an opinion on the Supervisory Board’s reports,
■ appointing and dismissing Supervisory Board members,
■ amending the Company’s Articles of Association,
■ raising the Company’s share capital.
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Among other things, the General Meeting of CD PROJEKT S.A. is also respon-
sible for setting the remuneration of Supervisory Board members
25
.
A General Meeting is held in the Company at least once per financial year.
General Meeting resolutions are adopted by a ³⁄ majority of the votes cast,
with the exception of aairs for which the regulations contemplate a super-
majority to adopt a resolution.
This split of powers in the Company also pertains to decisions made
in financial, environmental and social, including employee-related aairs.
The key persons responsible in the Company for managing risk and compliance
organizationally report directly to various Management Board Members.
REMUNERATION POLICY
GRI 10235; GRI 10236
Management Board of CD PROJEKT S.A.
On 27 August 2020
26
the Supervisory Board of CD PROJEKT adopted a resolution to establish
the Remuneration Policy, spanning Management Board Members and Supervisory Board Members.
The Remuneration Policy is part of the overall employment and remuneration policy in the Group. Its purpose
is to create conditions to attract, retain and incentivize people with the competences and experience needed
for the Group to continue further dynamic growth.
The Company’s remuneration policy is predicated on the following core principles:
■ the entire team participates in the profit generated together according to the incentive systems functioning
in the Group,
■ people in senior positions have the option to participate in the Company’s earned value growth by building
long-term value for its shareholders.
The Remuneration Policy gives, among other things, a description of the variable remuneration components,
criteria, deferral periods for the payment of variable remuneration and non-monetary benefits that may
be awarded to a Management Board Member as part of fixed remuneration.
The remuneration of a Management Board Member includes a fixed portion consisting of base salary and va-
riable remuneration whose allocation and amount are not guaranteed. The amount of the fixed remuneration
is defined individually for a Management Board Member by the Supervisory Board, while taking into account
the provisions of the Remuneration Policy and the scope of responsibility of a Management Board Member.
The variable remuneration that rewards performance and growth is based on the Group’s annual results and
25 with the exception of setting the remuneration of Supervisory Board Members seconded to perform the duties of a Management Board
Member temporarily, which is set by the Supervisory Board
26 acting pursuant to the authorization given by the Company’s General Meeting set forth in resolution 19 adopted by the Company’s
Ordinary General Meeting on 28 July 2020
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ambitious long-term objectives. Its amount depends on the satisfaction of conditions pertaining to the achie-
vement of financial or non-financial criteria. Variable remuneration is awarded to a given Management Board
Member individually.
According to the Remuneration Policy, variable remuneration may consist of the right to the following:
■
subscribe for subscription warrants incorporating the right to acquire shares in the Company or acquire
shares in the Company under a long-term incentive program implemented under a separate resolution adopted
by the General Meeting, or
■
participate in the incentive system facilitating the payment of monetary remuneration directly driven
by the financial result of the Company, the Group or the segment for which a Management Board Member
is responsible.
Notwithstanding the components specified above, variable remuneration may be awarded in the form
of a bonus for executing a task or achieving a management objective.
Supervisory Board of CD PROJEKT S.A.
Supervisory Board Members serve in this capacity on the basis of an appointment and by virtue thereof they
are vested with the right to remuneration. The remuneration of a Supervisory Board Member:
■ is not linked to the Company’s results,
■ nor is it awarded in the form of financial instruments or other non-monetary performances
27
, is aligned to the
entrusted scope of activity and functions performed, in particular by considering the function of a Supervisory
Board Member on committees or in the event of seconding one to act personally in a supervisory capacity.
Supervisory Board Members receive only fixed remuneration. The General Meeting sets the amount
of a Supervisory Board member’s remuneration by adopting a resolution
28
.
Detailed data pertaining to the remuneration paid to Management Board Members and Supervisory Board
Members is given in the Supervisory Board’s report on the remuneration of Management Board Members
and Supervisory Board Members and in the Management Board’s activity report, which are available on the
Company's website.
27 save for an exception to the situation in which the rights to acquire financial instruments or some other non-monetary benefits
were allocated prior to appointing a Member to the Supervisory Board, where the execution thereof transpires during the time of acting
in the capacity of a Supervisory Board Member.
28 with the exception of a Supervisory Board member’s remuneration seconded to perform the duties of a Management Board Member
temporarily. The Supervisory Board sets this remuneration by adopting a resolution.
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Values, compliance, ethical norms
GRI 10216
Anna Walczak, Legal Counsel,
Privacy & Compliance team at CD PROJEKT
In the CD PROJEKT Group we strive to create a place of work
in which the values we declare are observed on a daily basis.
For that reason, in July of 2021 the CD PROJEKT Management Board
adopted the Business and Ethical Standards in the CD PROJEKT
Group (“Standards”). This document forms an obligation to abide
by the highest ethical norms, legal regulations and principles by
which CD PROJEKT Group companies are guided in their day-to-day
work. The standards contain a number of indications of what type of
behavior we support, and what type of behavior we do not tolerate.
In addition to establishing the core principles of ethical conduct, within
the framework of the Privacy & Compliance team, we take a number
of actions to procure compliance with the law, internal regulations
and best practices. In 2022 we implemented the Compliance Mana-
gement Policy in CD PROJEKT on whose basis the Chief Compliance
Ocer and the Privacy & Compliance team monitor and coordinate
the Company’s needs in the process of managing compliance and support the Group’s subsidiaries
in this regard. Managing compliance in the Company is based on the principle of continuous improvement
and adjusting to regulatory needs and current business needs alike so as to preserve the equilibrium
between compliance and the business objectives selected by the Company.
In CD PROJEKT we are constantly enhancing the competences of the team members responsible for compliance
through participation in training sessions, conferences and expert panels devoted to legal and trade issues.
One of the fundamental elements of eective compliance is communication.
That is why in CD PROJEKT we endeavor to create a clear and intelligible
message. We strive to involve the members of various teams in drafting
internal regulations, employ plain and easy-to- understand language and
simplify the related processes and we organize internal training sessions
to raise their legal and regulatory awareness (on confidentiality, personal
data protection and protection of our IP, among others). In this manner
we encourage team members to get involved in areas of significance when
it comes to ensuring compliance.
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Managing the RED 2.0 transformation
In March of 2021, as part of the CD PROJEKT Group Strategy update, the Company’s Management Board
presented the tenets for the internal transformation of the RED 2.0 studio. The following elements contribute
to this RED 2.0 transformation:
■ change in philosophy and method of creating AAA games,
■
implementation of a more transparent production process including the rollout of standards and elements
of the agile model,
■
change in how the work environment is managed and designed by focusing on team development
and supporting talents,
■ change in the approach to the studio’s external communication.
The purpose of these changes was to streamline the process of creating games, ensuring that future AAA games
are of high quality and as of 2022 allowing for work to proceed in parallel on AAA projects.
Maciej Włodarkiewicz,
Acting Deputy Head of Production at CD PROJEKT
In 2021 we worked intensely on introducing the announced impro-
vements within the studio. On the basis of a current needs analysis,
we drafted the CD PROJEKT RED strategy on implementing agile
methodologies to shorten the time needed to produce visible results,
which in turn should translate into greater predictability in the process
of creating games. We kicked o cooperation with a reputable exter-
nal partner and commenced the recruitment of experts to work in
our in-house agile competence center. In parallel, training sessions
on how to work in compliance with agile methodologies were underway
among developer teams and in the back oce
29
. We have already
done some of the work on the Cyberpunk 2077 release for next gen
consoles by working in this revised procedure.
29 Specific information on agile training can be found in the sub-section entitled Training and development
AS A RESULT OF THESE ACTIVITIES IN 2021:
■ we set up 17 cross-functional teams working according to agile methodology, of which 10 are currently working
directly on the expansion pack to Cyberpunk 2077 and the remaining 7 are working on the development
of an in-house technology center,
■ we devised and implemented a new process for planning and doing work for the entire development project,
■ we commenced work on a new AAA game based on the conclusions drawn from the implementation of changes
to date.
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Communication with gamers
CD PROJEKT
Marcin Momot,
Global Community Director at CD PROJEKT
Communicating with gamers has always been one of the foundations
on which the CD PROJEKT RED studio is based. In community building
we do our utmost for all the people with whom we engage in dialogue
to feel that they are an important and integral part of the community
in the games we create. We want our channels to be safe havens
where gamers can freely share their observations about our works
and search for contact with the authors.
In 2021, we talked with gamers from around the world in twelve
languages (English, Polish, Russian, German, French, Italian, Spanish,
Japanese, Brazilian Portuguese, Arabic, Korean and simplified Chinese).
In every region there was a dedicated CD PROJEKT RED repre-
sentative or representatives who tend to our relations with gamers
in a given area and conduct local communication activities.
In terms of social media the studio is present in all of the most important platforms starting with Facebook,
Instagram, Twitter through Discord, YouTube and Tumbir to local channels such as the Chinese Bilibili
and Weibo and the Korean Naver Cafe. We also opened the studio’s channel on TikTok in February of 2022.
For many years our ocial product sites and their dedicated forums have been irreplaceable spots for talking
with the community.
Scheme 6
Number of users and subscribers to the most popular CD PROJEKT profiles – data as at 31 March 2022
bilibili
882 thousand followers
WeChat
15 thousand followers
Weibo
214 thousand followers
Twitter
1.6 million
followers
LinkedIn
214 thousand followers
Reddit
923 thousand followers
Discord
156 thousand followers
Instagram
745 thousand followers
Twitch
424 thousand followers
Facebook
1.6 million
followers
YouTube
1.5 million
followers
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While talking to the community we endeavor to address doubts on an ongoing basis, and draw conclusions from
the remarks gamers from around the world share with us. Our goal is for all of the members of the community
who reach out to us to have the feeling that they are heard.
We are very keen on engaging in transparent dialogue with gamers. We want
to be certain that they always receive first-hand information in the form
of frequent and regular updates, e.g. through posts in social media, statements
made by developers and live meetings during which we discuss the upcoming
changes to games. A prime example of this approach was the live meeting
announcing the 1.5 patch to Cyberpunk 2077 in February 2022 during which
the authors showed and discussed all of the most important changes to the
game. They also fielded some questions from the viewers. Earlier, in August
2021, a similar live meeting was held to describe the most important changes
in the previous 1.3 patch.
In May of last year, a commemorative college consisting of illustrations
prepared by artists hailing from The Witcher community was put together to celebrate the 10th anniversary
of The Witcher 2: Assassins of Kings. We engaged authors from 8 dierent countries to work on this project,
with all of them demonstrating their own exceptional style.
Our games attract the attention of a very large number of enthusiastic supporters of virtual photo-
graphy. The finale of the #Shutterpunk2077, competition took place in 2021. Gamers from around
the world had the opportunity to demonstrate their skills in eternalizing the most impressive moments
during gameplay. We launched a competition jointly with the Meta social network in September 2021
targeting professionals who create AR filters. The goal was to prepare a new overlay for portal users
to use. This competition led to the publication of several thousand designs. We constantly hold smaller
activities accompanying various events or holidays to engage the community.
The creativity of gaming fans is something amazing that gives us the will to aspire. That’s why last year we
launched a regular video series entitled “You Are the Most Important” during which we compile a very extensive
range of creations from around the world such as illustrations, recordings, sculptures, musical compositions
and cosplays and we present them on our ocial channels.
TUESDAY, FEB 15TH, 4 PM CET
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GOG
GOG incessantly strives to foster inclusive and pro-consumer communication with the gaming community.
That is why “Serve Gamers” is one of the firm’s principal values. That is also why we directly address gamers
by analyzing how they perceive the campaigns we run and we treat them as the pinnacle as we listen to their
opinions and respond to their questions and remarks.
In 2021, we communicated with gamers in six languages: English, Polish, Russian, French, German and simpli-
fied Chinese. We oered support to GOG users in every one of these regions while simultaneously oering
dedicated communication on the social media channels in a given area.
Scheme 7 Number of users and subscribers of GOG profiles – data as at 31 March 2022
Twitch
67 thousand followers
YouTube
64 thousand followers
Weibo
24 thousand followers
Instagram
21 thousand followers
Facebook
475 thousand
followers
Twitter
440 thousand
followers
bilibili
17 thousand followers
We emphasize the importance of creating space to run proactive discussions with gamers. This is manifested,
for instance, by the streams on our channel on the Twitch platform run by GOG employees. This is the place where
we respond to users’ questions and where we show our passion for games and provide additional interesting
information on what it is like behind the scenes to work at GOG, thereby underscoring the firm’s vision of being
a company filled with players, the very same kind of players as our customers. We approach communication
in a similar way on the GOG Forum and in retroactive responses to gamers’ comments on our social media
channels.
As a digital distribution platform for computer games, we endeavor to display our passion for all of the games
available on GOG. For that reason, we regularly hold competitions for our players in which they can win games
on GOG.COM and other game-related gadgets. A prime example of one such campaign is the creative
competition called #GOGxWitcher hosted jointly with CD PROJEKT RED and CD PROJEKT RED GEAR for the
GOG community in which gamers from around the world shared their creativity with us. On top of keys to games
from The Witcher series, they could win exclusive gadgets.
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Communication with the capital market
Karolina Gnaś,
VP of Investor Relations at CD PROJEKT
In the Investor Relations Department we do our best to facilitate
investors’ equal access to credible information regarding the current
business activity of CD PROJEKT through current and periodic reports
and active communication addressed to retail investors, stock broke-
rage analysts and fund managers.
Having regard for the COVID-19 pandemic, in 2021 we refrained from
holding traditional results conferences in person for representatives
of the capital market and financial media journalists. Whenever we
published reports in 2021, i.e. the 2020 annual report, the report
for 1H 2021 and the quarterly reports for Q1 and Q3 we held confe-
rence calls with analysts and journalists during which representatives
of the Management Board discussed the financial results, presented
our plans for the upcoming months and fielded questions posed by
the participants of these conference calls. In March 2021 we also held
a conference call during which we presented the CD PROJEKT Group Strategy Update.
To aord unfettered access to information among domestic and foreign investors we publish the majority
of our corporate materials in two language versions: Polish and English. Moreover, when we published the annual
results for 2020 and for H1 2021 we held chats for retail investors. These chats enjoyed immense interest –
several hundred participants took part in each one of them. The CD PROJEKT Management Board responded
to tens of questions regarding the Group’s results and plans for the newest productions.
Additionally, at the time of publishing each one of the periodic financial statements we furnished
a video with comments made by Piotr Nielubowicz, our CFO concerning our performance and the
Group’s major accomplishments in a given period. We place all of the materials related to the publica-
tion of the Company’s periodic reports in the tab entitled “Results Center” on the Company’s website:
https://www.cdprojekt.com/en/investors/result-center/.
Check our video materials available on the investor relations channel on YouTube:
www.youtube.com/CDPROJEKT_IR
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Since 2018 we oer live webcasts of our General Meeting. In turn, since 2020 the Company’s shareholders can remo-
tely participate in General Meetings and exercise their voting rights by using means of electronic communication. In ad-
dition, in 2021 we published the General Meeting Guide in which we have compiled the key information on these events.
We have made these materials, including video recordings of General Meetings available on the Company’s website:
https://www.cdprojekt.com/en/investors/general-meetings.
In 2021 we held numerous confe-
rence calls and video conferences
between Management Board mem-
bers and the Investor Relations De-
partment and representatives of
Polish and foreign mutual funds and
analysts who give stock recommen-
dations for CD PROJEKT. The Com-
pany’s representatives also attended
many online events held by broke-
rages instead of traditional road-
shows due to the COVID-19
pandemic.
The Investor Relations Department also runs a profile on Twitter: @CDPROJEKTRED_IR to report on the
most important events in the CD PROJEKT Group. Some 20 thousand internet users followed this profile
as of 31 March 2022.
We comply with the law
CD PROJEKT does its utmost to comply with the prevailing regulations and generally accepted global and
local market practices.
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ANTICORRUPTION POLICY
GRI 2053; GRI 10225
Fighting corruption is one of the foundations of the Business and Ethical
Standards in force in the CD PROJEKT Group.
In 2022 the CD PROJEKT Group adopted its Anti-Corruption Policy whose
purpose is to lay down the main rules for identifying, preventing and curtailing
the risk of corruption and fraud related thereto in the ongoing operations
of Group companies. These rules are applicable to business relations and
relations with public authorities. The CD PROJEKT Group applies the principle
of “zero tolerance” for all manifestations of corruption.
As part of the Anti-Corruption Policy there are rules on accepting and giving gifts,
relations with third parties (in business and administrative contacts) and rules
on exercising caution in circumstances that could pose a conflict of interests,
such as additional hiring, involvement in the activities of entities competing
or cooperating with CD PROJEKT and making personal decisions.
We have specified the fundamental standards of conduct in the process
of managing the risk of corruption to mitigate the potential materialization of corruption risk in the key areas
in jeopardy of its emergence. We attach special attention to keeping accurate accounting ledgers and
documentation, financial control of the payments made, the transparency of recruiting processes and under-
taking charitable initiatives in a manner facilitating suitable verification of the recipient thereof and preclusion
of conflicts of interests.
People who receive a proposal involving corruption or who have a justified suspicion that such an event has
transpired, or may transpire in the future may file a report through our whistleblowing system, which is descri-
bed in detail below.
To date the Company has not recorded any incidents of corruption. Nevertheless, it does its utmost to properly
define examples of activities that could indicate the possibility of irregularities or fraud and communicate
to team members the core principles of ethical behavior.
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REPORTING IRREGULARITIES
GRI 10217; GRI 4061
Whistleblowing is an important part of open communication that helps strengthen
mutual trust. For that reason, in 2021 we updated our whistleblowing system
in place up to that point in CD PROJEKT and we rolled out a new whistleblowing
procedure in CD PROJEKT S.A. To provide comfort when making the decision
on filing a report, team members may transmit information or their suspicions
regarding any and all irregularities by using a dedicated form ensuring the
confidentiality, anonymity and integrity of the information provided, or in
person or in writing by sending a letter to the address of the Company’s
headquarters. Reports are examined and checked by persons designated
by the Management Board and with regards to reports on the Management
Board Members – by Supervisory Board Members.
In CD PROJEKT team members should be guided by the principle of mutual
respect, which means that their behavior and speech cannot infringe on
the rights and dignity of others. For this reason, one of the key areas in the
whistleblowing system is linked to undesirable behavior in relations with
employees. In 2021 the Company updated the internal regulations in place till then in terms of preventing
mobbing, i.e. bullying and discrimination and it implemented the Procedure to Prevent Undesirable Behavior
in relations with Employees. On the basis of this procedure the Company undertakes to strengthen eorts
to prevent and counteract all undesirable actions that may entail mobbing, or bullying and discrimination, including
sexual harassment or some other violation of law. In 2021 CD PROJEKT conducted three internal proceedings
concerning relations between employees (five such proceedings were conducted in 2020). In every instance
the Company takes suitable actions having in mind the outcomes of the explanatory proceedings. In terms
of the measures selected it complies with the prevailing laws and internal procedures.
Notwithstanding formal whistleblowing procedures all CD PROJEKT team members can obtain advice regarding
ethical and legal issues from the dedicated HR Partner or from the Privacy & Compliance team.
All the people who report an irregularity in CD PROJEKT and all the people who help file such a report are
aorded protection against adverse actions that could violate their rights or do injury to them.
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Protection of personal data
GRI 4181; SASB
Activities involving personal data protection are pursued in CD PROJEKT on the basis of the CD PROJEKT
Group’s Personal Data Protection Policy ratified and implemented in 2018. The Privacy & Compliance team
as a distinct part of the CD PROJEKT Legal Department is responsible for enforcing and updating this policy.
The team cooperates closely with the Company’s Security Department and the Legal Department in GOG,
CD PROJEKT’s key partner in personal data processing.
The external Data Protection Ocer designated by the Company monitors the personal data protection actions
taken by CD PROJEKT.
Krzysztof Muciak,
Senior Legal Counsel/Privacy & Compliance Lead at CD PROJEKT
Personal data protection is an important part of the compliance
policy implemented in CD PROJEKT. We are aware that the respon-
sible processing of the personal data of gamers, our team members,
business partners and other persons is the foundation for their trust
in the Company.
According to the prevailing regulations we process personal data
only to the extent required as justified by clearly communicated goals.
We always notify the people whose data are involved of how, why
and on what basis we process their data and what rights they hold
in this context. When we choose subcontractors who are supposed
to have access to personal data, we take eorts to ensure that they
care for the security of the data entrusted to them. We monitor on an
ongoing basis the security of the processed personal data and we
respond to indications of possible breaches. If circumstances require,
we report a breach to the competent authorities and we advise the
data subjects thereof.
The Privacy & Compliance team constantly cares about ensuring the highest level of personal data protection.
It monitors amendments to the law and case law, and adjusts the Company’s activities to satisfy the current
requirements. It administers regular audits in the Company’s various teams and dedicated training sessions.
The team’s sta participates in creating the Company’s new initiatives and it provides data protection advice
in them. It also responds on an ongoing basis to doubts expressed by Company employees who deal with
personal data.
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As part of procuring compliance with personal data protection the Company also maintains the legally required
registers and conducts risk assessments and analyses.
In February of 2021 a hacker attack was mounted against the Company’s servers as a result of which
the confidentiality of personal data processed by companies belonging to the CD PROJEKT Group was
breached. A description of the measures taken in the follow up to the attack in personal data protection
is available at www.cdprojekt.com.
According to our knowledge, in 2021:
■ no complaints were filed against CD PROJEKT with any institution responsible for personal data protection,
■ CD PROJEKT did not suer any cash losses related to litigation due to personal data protection,
■
we did not receive any requests to divulge the data of CD PROJEKT users from the authorized public authorities.
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Data security
SASB
Arkadiusz Osypiuk,
Chief Information Security Ocer at CD PROJEKT S.A.
The Information Security Department has been operating in CD PROJEKT
since 2021. It is responsible for coordinating the security activities
of the CD PROJEKT Group. The activities carried out by the Information
Security Department are the result of, among others, risk analysis
carried out in the Company.
Aiming to respect security requirements among software vendors,
as part of the Information Security Department we also run a vendor
verification process (with regards to vendors requiring access to our
IT infrastructure or production data) consisting of a risk assessment
of a given partner and a security assessment of the safeguards
it employs. We do not undertake collaboration with a vendor that
does not meet the level of security we require.
We also proactively participate in numerous processes (from analysis of assumptions at an early stage to the
acceptance of solutions) and support back oce teams. We also deliver training to all employees (in 2021 two
training campaigns were administered on security awareness - mandatory training for every employee) and we
launch additional tools to augment security awareness among the users of the CD PROJEKT Group’s ICT systems.
In February of 2021 there was a hacker attack mounted against the CD PROJEKT Group’s servers.
Information about the series of additional security measures in the follow up to that attack can be found
in the Management Board Report on the Activity of the CD PROJEKT Group in 2021.
THE MAIN AREAS OF ACTIVITY IN THE INFORMATION SECURITY
DEPARTMENT
■ preparing internal policies, standards, regulations and inspections regarding information security,
■ ensuring full IT security support for the implemented solutions, reviewing and issuing recommendations regarding
legacy systems and services,
■ implementing and administering new information security solutions such as Data Leak Protection, Mobile Device
Management, Network Detection and Response (NDR), Endpoint Detection and Response (EDR), Privileged Access
Management (PAM),
■ supporting disaster recovery, managing business continuity and managing incidents,
■ managing the physical security of all of the oces and space belonging to the CD PROJEKT Group.
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Suitable labeling of products and services
GRI 4162; GRI 4171; GRI 4172
In our care for the safety of gamers we do our utmost to label the Company’s products appropriately, among
others by doing the following:
■ placing the indispensable information regarding the studio’s games on the websites dedicated to them, on the
product sites on digital distribution platforms and their physical packages,
■ labeling games with an age-based rating suitable for a given territory (e.g. PEGI, ESRB); information regarding
a game’s rating is placed on its physical package,
■
dedicated website, selected marketing materials related to it and on its product sheets, restricting access to the
studio’s game-related content for persons whose age is inappropriate by placing access gates on dedicated
websites and the product sites of the studio’s games and digital distribution platforms for games.
According to the Company’s knowledge, in 2021 CD PROJEKT S.A. did not experience the following:
■ incidents of non-compliance with regulations and voluntary codes concerning product and service information
and labeling,
■ incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of
products and services at every stage of their life cycle, split into the type of consequences.
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Compatibility with international regulations and fair competition
GRI 2061; GRI 4173; GRI 4191; SASB
As the CD PROJEKT Group we operate globally supplying products and services to users across the globe.
Ensuring compliance with the states’ legal and regulatory requirements that are applicable to our business
is an important pillar for us when it comes to fostering mutual trust. In the rapidly evolving business environment,
the obligation to abide by the principles of fair competition, and hence to project an ethical attitude is the
foundation of our organization’s responsibility.
Applying legal regulations can be complex and hinge on a variety of circumstances. To procure the compliance
of our eorts with the pertinent regulations of domestic and international law, including customs, commercial
and fiscal regulations and intellectual property rights, the internal Legal team together with the Privacy
& Compliance team, among others, gives opinions on concluded contracts, verifies legislative processes and
cooperates with external law firms (domestic and foreign). In business relations we do not take advantage
of unfair advantages stemming from our market position, while as part of the commercial transactions we execute,
we include the pertinent declarations of our status as a large corporate undertaking. CD PROJEKT also does
its utmost to comply with the prevailing regulations and generally accepted global and local market practices.
According to the Company’s knowledge, in 2021 CD PROJEKT S.A.:
■ not identify any incidents of non-compliance regarding marketing communication,
■ no significant fines or non-monetary sanctions for non-compliance with laws and regulations were imposed
on the Company,
■ no legal steps concerning incidents of breaches of the principles of free competition or monopolistic practices
were taken against us,
■ no cash losses were incurred under litigation due to unfair competition.
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Intellectual property creation and protection
OUR IPS
The intellectual property rights vested in CD PROJEKT are primarily related
to the universe of “The Witcher” and “Cyberpunk”. For each one
of them CD PROJEKT has procured the acquisition of intellectual property
rights beyond the games field, which in the long-run will facilitate the deve-
lopment of our IP also in areas other than just video games.
INTELLECTUAL PROPERTY CREATION AND PROTECTION
Anna Piechówka,
Senior Counsel, Business & IP Lead at CD PROJEKT
Intellectual property creation and protection are the grounds
of CD PROJEKT’s activity; that is why in the framework of our activities
we incessantly tend to the rights held by CD PROJEKT. Each one
of our video games consists of many dierent elements, i.e. among
other things, software, sound eects, graphic elements, storylines;
each one of them taken individually and as a whole constitutes
intellectual property.
The dedicated Business & IP team operating as part of the CD PROJEKT Legal
Department is responsible for the protection and management of intellectual
property. In the Business & IP team:
■
we ensure that each part of the intellectual property created by CD PROJEKT
has the appropriate legal protection. As part of this area, we register trade-
marks and other rights subject to registration and we ensure that we acquire
all copyrights from artists,
■
we deal with the sublicensing of the intellectual property rights vested in CD PROJEKT, i.e. to numerous
marketing and merchandising partners,
■ we are responsible for ensuring that the content created by CD PROJEKT does not violate third party rights,
among other things, by entering into the pertinent agreements, including licensing agreements or investigating
the risk of violating trademark rights.
In CD PROJEKT we want to give the gaming community the possibility of being inspired by our products
by supporting the process of creating content based on our games. For instance, we adopted the Fan Content
Rules that make it possible to create fan content for non-commercial purposes. In the event of encroaching
on the bounds for the allowed utilization of CD PROJEKT S.A.’s rights or violating them in some other scope,
we undertake legal measures to protect the intellectual property vested in us.
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Tax transparency
GRI 2071; GRI 2072
Julita Pikiewicz,
Tax Director at CD PROJEKT
We act with due diligence when discharging our fiscal obligations
– we transparently report the information required by the legal regu-
lations and we pay the amounts due under public law on a timely
basis, we also communicate on an ongoing basis with state and
local government authorities, in particular with the authorities of the
National Tax Administration.
In CD PROJEKT there are internal policies and procedures in place
to identify and curtail tax risks. To mitigate potential non-compliance
risk our inhouse legal and tax teams monitor legislative processes
and implement suitable procedures, methods of operation and tools
to streamline internal processes and ensure that legal and tax obli-
gations are performed in the correct manner.
We do not take actions involving legally banned tax optimization, nor actions
to evade taxation.
In connection with the research and development activity pursued by CD PROJEKT, based on a decision made
by the Minister of Entrepreneurship and Technology in 2018, we obtained the status of a Research and Develop-
ment Center (“RDC”) as an entity in which research and development activity constitutes a significant part of its
business. An R&D Compliance team has been in operation in CD PROJEKT since 2020. Its major duty is to opine
the direction of R&D work done in CD PROJEKT by its dedicated teams and document and monitor this work.
We encourage you to review the Taxation Strategy Information available on our website
www.cdprojekt.com
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ENVIRONMENTAL
RESPONSIBILITY
IN THIS SECTION YOU WILL FIND THE FOLLOWING INFORMATION:
■ what goals we set for 2022 and 2023 in the environmental area,
■ fundamental data regarding the CD PROJEKT Group’s environmental impact,
■ what actions we have taken to mitigate our environmental impact.
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Goals of the CD PROJEKT Group in the environmental area
GRI 1032; GRI 1033
Detailed information regarding the actions we are taking that are aligned to the execution of goals 7 and 13
in Agenda 2030 can be found below in this section..
ENVIRONMENTAL AREA
AREA GOAL
PLANNED DATE
OF EXECUTION
■ Environmental impact Adoption and publication of the
CD PROJEKT S.A. Environmental Policy
■ 2022
■ Environmental impact Development and implementation
of an environmental management system
at CD PROJEKT S.A.
■ 2022
■ Climate impact Calculation of CD PROJEKT Group’s carbon
footprint in 2022
1
in line with Scope 3 of
the GHG Protocol
2
and determination of the
greenhouse gas emission reduction target
■ 2022
■ Climate impact Identification and assessment of climate
change risk according to the guidelines
of the Task Force on Climate-related
Financial Disclosure (TCFD)
■ 2023
1 with regards to the Polish companies in the CD PROJEKT Group
2 https://ghgprotocol.org/
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Our approach to environmental responsibility
GRI 3071
Małgorzata Kaźmierczak,
Environment Management Coordinator at CD PROJEKT
Sustainable growth and care for the environment have always been
part of our DNA.
As we strive to preserve a balance between dynamic growth of the CD PROJEKT
Group and care for the natural environment, we take steps to ensure that
our activities are conducted in a responsible manner, consistent with
the general principles of sustainable growth. In particular, we take action
to mitigate our environmental footprint and counteract climate change through:
■
calculating and monitoring our carbon footprint, and working to reduce
greenhouse gas emissions throughout our value chain,
■ conserving resources and optimizing energy management,
■ deploying and certifying an environmental management system,
■ investing in novel, environmentally sound technical solutions,
■
complying with legal requirements and other environment impact regulations
applicable to our business,
■ fostering environmentally conscious attitudes among our team members and business partners and lessees
doing business on our premises,
■
planning, validating and assessing the environmental impact of our activities against the backdrop
of measurable indicators.
In acknowledging the increasing importance which our stakeholders attach to the mutual relationship between
CD PROJEKT Group’s activities and the natural environment, including climate change, in 2021 we began
calculating our greenhouse gas emissions with a view towards reducing such emissions throughout our value
chain.
Since 2021 we have been calculating our carbon footprint in accordance with the GHG Protocol – Scope 1
(i.e. direct emissions from the combustion of fuels at sources owned or supervised by the CD PROJEKT
Group, as well as emissions resulting from release of coolants) and Scope 2 (indirect emissions related to the
consumption of electricity and heat) for each domestic member company of the Group. In 2022 we aim
to expand this calculation to include Scope 3 (other indirect emissions within the value chain).
Since 2020 we have also been performing regular environmental compliance audits. We are rolling out an
environmental management system, which involves ongoing analysis and staying up to date with the relevant
legal regulations, and we monitor legislative initiatives which may have an impact on our activities.
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To the best of our knowledge, in 2021 the CD PROJEKT Group:
■ was not found to be in breach of any environmental protection laws and regulations,
■
was not subjected to fines as a result of any noncompliance with environmental protection laws and regulations.
We carry out monitoring of environmental indicators and costs, including those related to consumption of energy
and water, waste management and atmospheric emissions.
In order to minimize environmental risks related to ownership and use of real estate, and commercial lease
thereof, we have introduced a set of environmental regulations for our lessees and business partners, particularly
subcontractors, who do business on our premises. These regulations encompass legal requirements related
to the responsible use of the environment, along with a list of best practices for reducing one’s environmental
footprint and committing to conserving natural resources.
For many years the CD PROJEKT Group has worked to reduce the consumption of energy and water at our
premises, streamline recycling operations and set up green areas on our commercial campus. Numerous
investments carried out in 2020/2021 – some of which continue to this day – are part of this policy.
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Key environmental indicators of the CD PROJEKT Group
30
ENERGY CONSUMPTION
GRI 3021; GRI 3024; SASB
Energy consumption pertains to the total quantity of the various types of energy consumed in the CD PROJEKT
Group
31
. It includes energy purchased from suppliers and energy generated in-house (electricity from a proprietary
photovoltaic installation).
Table 15 Total energy consumption in the CD PROJEKT Group in 2021 by type of energy and percentage of the
various types of energy
32
33
Energy product 2021 Percentage of total consumption
Electricity [GJ] 6,287 56%
Heat [GJ] 4,526 40%
Petrol [GJ] 390 3%
Diesel fuel [GJ] 137 1%
Total energy consumption [GJ] 11,340 100%
The vast majority of energy consumed in the course of the CD PROJEKT Group’s operating activities (96%)
is required for upkeep of the Group’s buildings and structures. Electricity dominates (6,287 GJ consumed
in 2021, i.e. 56% of the Group’s total energy consumption), followed by heat (40% in 2021). Only 4% of the Group’s
energy consumption came from the combustion of non-renewable fuels in vehicles and fixed sources used
or managed by the Group.
Given the ongoing COVID-19 pandemic and the associated restrictions, in 2021 the number of persons who
commute to the oce on a daily basis was far lower than in the years preceding the outbreak of the pandemic.
Consequently, the reported use of electricity at the Group’s oces – which represents the bulk of the Group’s
total energy consumption – does not accurately reflect the Group’s potential energy consumption in standard
circumstances, i.e. in the absence of any pandemic-related restrictions.
30 All environmental data presented in this section applies to 2021, which we regard as the base year.
31 Aggregate figures for domestic member companies of the Group.
32 Source: invoices and billing reports concerning leased space. Methodology: meter readings, billing reports, calculations. Fuel consumption
has been converted to GJ using coecients published by the National Centre for Emissions Management (KOBiZE).
33 Data converted to GJ to ensure comparability.
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ENERGY FROM RENEWABLE SOURCES
In August 2020, 328 photovoltaic panels with a total capacity of 100 kW were installed on the rooftops of four
buildings on CD PROJEKT’s Warsaw campus. In 2021 these panels generated a total of 95.14 MWh (343 GJ)
of electricity, eectively preventing the emission of 71 tons of carbon dioxide equivalents into the atmosphere.
Click here to find out how much electricity is generated by our photovoltaic plant.
Table 16 Consumption of electricity at the CD PROJEKT Group in 2021 by source
34
MWh GJ
Purchased electricity 1,651 5,944
Own electricity generated from RES 95.14 343
Since 2015 modern LED light fixtures have been deployed at CD PROJEKT oces in Warsaw. The vast majority
of our light fixtures are flicker-free and equipped with microprism collars ensuring high comfort for our employ-
ees. In the largest and most important spaces these fixtures facilitate light stream modulation – this augments
convenience and improves energy eciency.
INVESTMENTS CARRIED OUT IN 2021 TO REDUCE THE USE OF ELECTRICITY
In terms of reducing our reliance on electricity and our carbon footprint, the strongest impact can be obtained
by focusing on our buildings and structures.
In 2021 we continued to modernize CD PROJEKT’s Warsaw campus. Our goal is to upgrade the buildings we
purchased in 2019 to limit electricity consumption, improve the energy eciency of our oces and thereby
reduce greenhouse gas emissions. The following improvements have been made through our investments:
■
light fixtures have been replaced with energy-ecient LED panels covering 3,700 square meters of oce space,
■ 2,100 square meters of oce space have been equipped with a mechanical ventilation system (supporting
heat recuperation to recover warm air from the outflow, reducing energy consumption; moreover, the system
provides for the appropriate filtration of dust and pollutants ensuring clean air indoors),
■
facilities for cyclist commuters have been expanded and modernized – we now oer 80 bike stands
and a dedicated bike maintenance station,
■ we replaced two elevator cabins with modern equivalents, equipped with an energy recuperation system,
■
electrically controlled external blinds have been installed, reducing the need for air conditioning
(this improvement covers approximately 2,000 square meters of oce space).
In 2021 the total cost of investments benefiting the environment was 2.1 million PLN.
34 Source: invoices and billing reports concerning leased space. Aggregate figures for domestic member companies of the Group.
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In addition to modernizing CD PROJEKT’s Warsaw campus, in 2021 we also
undertook a range of other “green” activities, including the following:
■ all our printers now use 100% recycled unbleached paper holding FSC
(Forest Stewardship Council) and Blue Angel certificates,
■ we installed 176 birdhouses for swifts, which are fully protected migra-
tory birds,
■
we enlarged the biologically active surface area on the CD PROJEKT
campus by 124 square meters,
■ we switched to ecologically conscious oce supplies
Investments planned for 2022 include:
■ increasing the number of electric car charging stations in conjunction
with building a new multistory parking lot (stage I – 22 charging stations;
ultimate target – 129 charging stations),
■ modernizing our central heating facility,
■ collecting rainwater to irrigate green areas.
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GREENHOUSE GAS EMISSIONS
GRI 3051; GRI 3052; GRI 3054
In order to further reduce the environmental impact of our activities, since 2021 we have been calculating
our carbon footprint, i.e. greenhouse gas emissions. In this process we focused on emissions related to the
activities of the CD PROJEKT Group in Poland
35
, and subsequently consolidated the results of our calculations
at the level of the CD PROJEKT Group as a whole, based on our operational control procedures, thereby
accounting for 100% of emissions at each analyzed location.
The reported greenhouse gas emissions were calculated based on the standards set out in The Greenhouse
Gas Protocol Corporate Accounting and Reporting Standard in the Revised version and GHG Protocol Scope
2 Guidance. The calculations covered Scope 1 emissions, that is direct emissions related to the combustion
of fuel in company-owned sources and cars, as well as Scope 2 emissions, which are indirect emissions from
the consumption of purchased electricity and heat). Scope 2 emissions were calculated using market–based
and location–based methods and presented in tons of carbon dioxide equivalents [t CO
2
e]. GHG emissions
were calculated for the period from 1 January 2021 to 31 December 2021.
The emission factors for fuels were selected based on the documents published by the National Centre
for Emission Balancing and Management; the factors for refrigerants came from DEFRA (the UK Department
for Environment, Food & Rural Aairs) database and were calculated using the published component factors
values in the IPCC Sixth Assessment Report Global Warming Potentials (AR6). With regard to heat, the gene-
ration intensity factors were assumed based on the data reported for Poland by the Energy Regulatory Oce.
For electricity, we used the factors specific to individual energy suppliers (market-based method) as well as
the average emission factor for electricity in Poland in 2020 calculated on the basis of documents published
by the National Centre for Emission Balancing and Management (location-based method).
No biogenic greenhouse gas emissions were identified in the CD PROJEKT Group in 2021.
Chart 5 Sources of greenhouse gas emissions (GHG) in the CD PROJEKT Group
26.2%
Heat
71.6%
Electricity
0.6%
Diesel fuel
1.6%
Petrol
Sources of greenhouse gas emissions (GHG)
35 Due to low materiality of emissions in Scope 1 and 2 by foreign member companies of the Group.
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Table 17 Greenhouse Gas Emissions (GHG) of the CD PROJEKT Group in 2021 (in tons of CO
2
e)
36
Unit 2021
Scope 1 – Direct GHG emissions t CO
2
e 37
Scope 2 – Indirect GHG emissions
Location-based method t CO
2
e 1,523
Market-based method t CO
2
e 1,664
Scope 1 + 2 (location-based) t CO
2
e 1,560
Scope 1 + 2 (market-based) t CO
2
e 1,701
In 2021, the carbon footprint of the CD PROJEKT Group calculated using the location-based (LB) method
was 1,560 t CO
2
e, while the figure calculated using the market-based (MB) method was 1,701 t CO
2
e. The vast
majority (98%) of greenhouse gas emissions generated in the course of the Group’s operating activity falls
into Scope 2: those are indirect emissions from the consumption of purchased electricity and heat. The total
carbon footprint from the purchased electricity was 1,218 [t CO
2
e]. A significant majority of these emissions (73%
of Scope 2 emissions and 2.72% of all emissions) is associated with electricity. The other emissions (27% of Scope
2 emissions and 2.26% of all emissions) are linked to purchased heat. The carbon footprint from purchased heat
was 446 [t CO
2
e]. Scope 1 emissions occurred only in CD PROJEKT S.A. and were related to the combustion
of fuels in local sources and the consumption of fuel in vehicles used by the Company; they contributed about
2% to the Group’s overall carbon footprint.
2021 is the first year in which the CD PROJEKT Group calculated its greenhouse gas emissions. It is worth noting
that, in connection with the current COVID-19 pandemic and the related restrictions, the number of people
working at the oce on a permanent basis was much lower than it was before the pandemic. Accordingly, the
consumption of electricity in oces, which is the largest contributor to the Group’s Scope 2 GHG emissions,
does not fully reflect the potential consumption of energy in the standard working conditions and without the
pandemic-related restrictions.
The structure of Scope 1 and 2 GHG emissions underscores the importance of the current commitment to the
improvement of energy eciency in our oces and transition to renewable energy sources. 328 photovoltaic
panels with the total capacity of 100 kW installed on the top of our campus buildings in Warsaw generate
benefits associated with lower greenhouse gas emissions. In 2021, the photovoltaic system produced
95.14 MWh of electricity, which prevented the emission of 71 CO
2
e to the atmosphere.
In 2022, we launched work to identify the main sources and calculate Scope 3 GHG emissions, that is indirect
greenhouse gas emissions across the Group’s value chain.
36 Emissions are reported in tons of carbon dioxide equivalent, and concern domestic member companies of the Group.
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The full calculation of Scope 1-3 greenhouse gas emissions will form the foundation on which the Group will
devise its carbon footprint management strategy for the coming years. At present, we intend to focus on further
improving our energy eciency and increasing the share of renewable energy in the Group’s overall energy
balance, also through its own solar energy.
EMISSIONS CONVERTED INTO EMISSION INTENSITY RATIOS KPIs
Our own KPI metrics were used to illustrate emission intensity. In order to ensure year-to-year comparability
of data, the emission numbers were expressed using the parameters characteristic for the Group’s activity,
i.e. the space in use and the number of employees. These ratios will allow us to compare future GHG emission
levels.
Table 18 Intensity of greenhouse gas emissions in the CD PROJEKT Group in 2021
Unit 2021
Emissions (Scope 1 and 2) per m
2
of space used (location-based)
t CO
2
e/m
2
0.12
Emissions (Scope 1 and 2) per m
2
of space used (market-based)
t CO
2
e/m
2
0.13
Emissions (Scope 1 and 2) per
employee (location-based)
t CO
2
e/person 1.39
Emissions (Scope 1 and 2) per
employee (market-based)
t CO
2
e/person 1.52
DATA CENTER MANAGEMENT
SASB
In its current business activity, the CD PROJEKT Group colocates its own servers in a managed service facility
meeting the highest security and colocation standards for hardware of this type. Additionally, some of the
services are provided from our own server room located at the CD PROJEKT headquarters in Warsaw. Because
of the global nature of our business, some of the internal and external services are also oered through public
cloud service providers, such as Google Cloud Platform, AWS, Alibaba, OVH and ATMAN Cloud
37
.
37 https://www.atman.pl/en/about-us/certificates/
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Public cloud providers are either fully or substantially using renewable energy or plan to cover their current
energy needs with 100% renewable energy in the coming years
38
. Our own servers are powered by electricity
from the vendor supplying energy to the CD PROJEKT campus in Warsaw. Servers sited outside of the
Company’s headquarters through the colocation service are powered by electricity supplied under a contract
between the data center operator and the power company. In 2021, 20.3% of the energy used by the colocation
provider came from renewable energy sources
39
.
Our computing resources are virtualized and/or containerized and through the use of automatic scaling
mechanisms for some external and internal services, the computing power is directed to where it is needed most
at the moment. Promotional activities or entire campaigns carried out on our GOG.com sales platform are partially
or fully supported with additional computing resources from the above-mentioned public cloud providers, with
the support of our own resources that are not currently used; this guarantees a high resource utilization ratio.
In daily tasks and whenever there is increased activity related to the development of game or application code,
resources are dynamically added on demand. Additionally, the Group gradually modernizes its own resources
in order to increase the computing power while keeping the level of energy consumption relatively constant.
38 According to publicly available reports from providers of public cloud services:
Google Cloud Platform (https://cloud.google.com/sustainability),
AWS (https://sustainability.aboutamazon.com/environment/the-cloud?energyType=true),
Alibaba (https://www.google.com/url?q=https://sustainability.alibabagroup.com/en&sa=D&source=docs&ust=1648118050938747&us-
g=AOvVaw2aI7lQf9Ua8pBptviRylIa),
OVH (https://corporate.ovhcloud.com/en/sustainability/environment/)
39 Data acquired directly from the colocation provider.
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WATER AND SEWAGE
GRI 3031; SASB
The CD PROJEKT Group uses water for consumption and for sanitary purposes. All water comes from external
suppliers – municipal water supply networks. Domestic sewage is discharged to the city sewer system.
Table 19 Water withdrawal and production of sewage in CD PROJEKT Group’s oce buildings
40
2021
Water withdrawal [m
3
] 3,715
Quantity used/deployed [m
3
] 3,654
In order to minimize consumption of water and eectively manage water
resources in our oces:
■
we install various water saving devices (including touchless sink faucets,
aerators, flush tanks with a stop function),
■
we provide our employees with water dispensers connected to the water
supply network,
■
we immediately eliminate leaks and replace broken devices (flush tanks,
sink faucets),
■
we have installed energy saving dishwashers, in which eco washing programs
can be used,
■ we have implemented environmental regulations for tenants and business
partners who operate on CD PROJEKT’s premises in which we defined, among
other things, best practices for responsible water management.
We are planning additional activities to conserve water resources, including
the use of rainwater to irrigate green areas at the CD PROJEKT campus
in Warsaw.
WASTE MANAGEMENT
GRI 3063
All the waste that cannot be prevented is stored in separate fractions, as required by law, and always handed
over to be utilized to specialized entities holding the necessary permits for processing the specific type of waste.
40 The data refers to Polish locations of the Group's member companies and oce space leased in Kraków and Wrocław. It is based on
invoices and billing reports.
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Table 20
Total weight of waste produced by CD PROJEKT Group companies in 2021, by type of waste
and waste handling method
41
Type of waste Weight [t] Utilization methods
Hazardous waste 0.25 Processing
Non-hazardous waste 10.25 Processing
Total 10.50
In 2021, CD PROJEKT Group companies produced and handed over for utilization approximately 10.5 tons
of waste, of which 0.25 tons of hazardous waste, which represented only 2% of all waste. In 2021, based
on legal requirements and best practices, we developed a new policy for managing the waste produced at the
CD PROJEKT campus in Warsaw. We have implemented environmental regulations for tenants and business
partners operating on CD PROJEKT’s premises in which we defined, among other things, detailed rules
for responsible waste management.
Municipal waste is segregated as required by the local waste management
system. All oce spaces and social areas are equipped with marked waste
segregation bins (paper, glass, metal and plastic, bio and mixed), whereby
we almost entirely eliminated standalone wastepaper bins next to desks.
Paper boxes are available next to every printer. All our printers now use 100%
recycled unbleached paper with FSC (Forest Stewardship Council) and Der
Blue Angel certificates. In order to minimize the quantity of paper and toner
used and avoid accidental printouts, we have implemented the Follow Me
safe printing system. This solution allows a document to be printed only when
an ID card is swiped at the printer. We also encourage everyone to use elec-
tronic documents and print out materials only when necessary.
We collect and safely destroy any documentation fixed in hard copy and
also magnetic forms. We also selectively collect batteries and accumulators,
old electronic equipment and toners.
41 This refers to domestic member companies of the Group. The data represents the volume of hazardous waste, as well as other waste,
reported in the BDO system by each company as produced in 2021. Figures are listed in tons and are accurate to within 1 gram.
Data concerning waste treatment is reported by waste management facilities and based on their respective contracts for waste
collection and/or processing.
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REDUCING THE CONSUMPTION OF PLASTIC
Non-reusable plastic products pose a true threat to the environment. The CD PROJEKT Group has made
a commitment to reduce these products in the company’s daily life. All kitchens and social spaces are fully
equipped with reusable dishes and cutlery. The oces are equipped with water dispensers directly connected
to the water supply network and oer the sparkling water function, as well as compact water purification systems
with built-in mineral water containers, allowing us to reduce bottled water orders to the necessary minimum.
TRANSPORTATION
The CD PROJEKT home oce in Warsaw is conveniently located and is easily accessible via municipal transport
and bike lanes. We promote alternative modes of transportation and provide facilities for those who make this
choice to commute to work. Our campus is equipped with bicycle stands and as the number of people using
this mode of transport increases, we regularly add new space for bicycle parking. In 2021, we expanded and
modernized facilities for cyclist commuters – we now provide 80 bike stands and a dedicated bike maintenance
station. We also support the choice of electric vehicles. Our campus in Warsaw oers 8 charging stations for
electric cars. In connection with the construction of a new multistory parking lot, we plan to increase the number
of parking spots with available charging stations by 129.
Our products – environmental impact
We are aware that we aect the natural environment across our entire supply chain, among others through
our games we sell globally. We are currently taking steps to measure this impact, among others by calculating
CD PROJEKT’s Scope 3 carbon footprint.
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DIGITALIZATION OF SALES
We have observed increasing digitalization in the gaming sector. More and more customers choose to purchase
digital versions of their favorite games, which is certainly driven by the current COVID-19 pandemic and the
increasing environmental awareness of consumers. The rising trend of digital game sales oers a real oppor-
tunity to reduce the consumption of raw materials, including plastic, and reduce the adverse environmental
eects of the production and distribution of physical copies of games.
We have noted the increasing percentage of digital sales in the total sales of our games.
Chart 6
Cyberpunk 2077 – retail sales to gamers (sell-through) by platform type (units sold; source:
Company estimates based on information collected from distributors)
2020
2021
Physical distribution Digital distribution
27%
73%
64%
36%
Chart 7 Sales of The Witcher 3 by distribution channel (units sold; sell-in figure)
42
2015 2016 2017 2018 2019 2020 2021
Physical distribution Digital distribution
62%
68%
76%
81%
32%
38%
24%
19%
83%
16%
17%
84% 94%
6%
42 historical data, revised.
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Activity of CD PROJEKT RED GEAR
OUR APPROACH
Aleksandra Jarośkiewicz,
Director at CD PROJEKT RED GEAR
CD PROJEKT RED GEAR is a store where fans of games developed
by the CD PROJEKT RED studio may purchase items associated with
our games. Our philosophy is to oer products of the highest quality
in a responsible and sustainable manner, so reducing our adverse
environmental impact is really important to us.
CD PROJEKT RED GEAR is committed to local production and short
supply chains: approximately 87% of our products are manufactured
in Poland, which also allows us to have greater control over quality
and production process. By shortening transport routes, we also
reduce our carbon footprint and other transportation-related pollution.
We also want to support Polish artists: we cooperate with Polish manufactu-
rers that have extensive experience and individual style, such as Turbokolor,
Astrography, Bewood or Phenotype. On top of that, we search for and promote
Polish artists, oering them an opportunity to showcase their talent or boost
their presence on the international market..
What distinguishes us from others are our boutique collections. Since we do not overstock products, but rather
make them to order, we do not have to recycle products.
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We are working on eliminating plastic from our packaging. Wherever possible,
we try to choose cardboard or durable materials that become an important
part of the product, such as metal cans in the case of The Witcher medallions.
Orders from our store are currently, for the most part, shipped in cardboard
boxes or in biodegradable poly mailers. In 2022, we want to take another
step and introduce FSC certified packaging and replace plastic packing tape
with paper tape with a rubber adhesive. In 2022, we also plan to replace
plastic foil packaging, which is used to secure clothing with plant starch-based
bioplastic bags.
We also oer upcycled products: last year, we launched the sales
of Cyberpunk 2077 bags in which the entire outer layer is made of the
material used to produce advertising billboards for the Cyberpunk 2077 game.
Compliance with taxonomy of sustainable activities
The basis for the preparation of this part of the Report is Regulation (EU) 2020/852 of the European Parliament
and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and
amending Regulation (EU) 2019/2088 (hereinafter referred to as “the Taxonomy”), which obligates enterprises
to disclose whether, and if so – to what degree their business activities are consistent with the assumptions of
the Taxonomy which classifies and describes environmentally sustainable activities.
Between 1 January 2021 and 31 December 2021 (i.e. in the 2021 financial year) disclosures concern the percentage
share of their economic activities which are aligned with the Taxonomy and those which are not, with regard to:
■ total turnover,
■ total capital expenditures (CapEx),
■ total operating expenditues (OpEx),
in addition to the related qualitative (descriptive) information, as mandated under the Commission Delegated
Regulation 2021/2078.
In line with the Commission Delegated Regulation 2021/2078 economic activities which are aligned with the
Taxonomy for the purposes of 2021 disclosures are the activities listed in the Commission Delegated Regulation
2021/20139.
CD PROJEKT Group’s 2021 Sustainability Report
RESPONSIBLE GOVERNANCE
AND ORGANIZATION
ENVIRONMENTAL
RESPONSIBILITY
113
CAPITAL
GROUP
SOCIAL
RESPONSIBILITY
SUSTAINABLE
DEVELOPMENT
To validate alignment, we carried out assessment in the scope of two initial goals for which technical alignment
criteria had originally been published:
■ climate change mitigation, as listed in Appendix I to Delegated Regulation (EU) 2021/2139,
■ adaptation to climate change, as listed in Appendix II to Delegated Regulation (EU) 2021/2139.
To accurately determine the scope of disclosures required for 2021 at all companies belonging to the CD PROJEKT
Group, we carried out an analysis of their activities, as a result of which we have identified a range of Taxonomy-
-aligned activities, i.e. activities consistent with the descriptions contained in Appendices I and II to Delegated
Regulation (EU) 2021/2139.
Pursuant to the Taxonomy, the data contained in the following disclosures concerns revenues (turnover) from
economic activities, along with capital expenditures and operating expenditures, as well as purchases from
Taxonomy-aligned enterprises. The basis for determining whether a given activity is Taxonomy-aligned was
a comparison between the activity being carried out with the descriptions contained in Appendices I and II to
Delegated Regulation (EU) 2021/2139.
The basis for calculation of turnover, capital expenditures and operating expenditures was the set of definitions
contained in in Appendix I to Delegated Regulation (EU) 2021/2178. Calculations which concern the Group
as a whole are exclusive of consolidation eliminations, which are consistent with the practices applied in our
consolidated financial statement.
Each specific activity was assigned to a single Taxonomy-aligned activity – thus, no portion of our revenues,
CapEx and OpEx was taken into account twice.
The CD PROJEKT Group also conducts activities outside the European Union. Such activities were tested for
alignment in the same way as our activities carried out within the UE.
The analysis involved the following actions:
■ we assigned the economic activities of the CD PROJEKT Group to NACE sectors, and determined whether
these sectors are included in the Taxonomy. This, in turn, enabled us to determine the alignment of the Gro-
up’s activities with the EU Taxonomy, particularly in the scope of goals no. 1 (climate change mitigation) and 2
(adaptation to climate change);
■ we carried out a qualitative analysis of the allocation of our revenues, CapEx and OpEx to specific types of ac-
tivities identified at each member company of the CD PROJEKT Group – in the context of NACE codes as well
as with regard to other types of activities which meet the criteria of Taxonomy alignment. This allocation was
based on the methodology described in the Delegated Regulation concerning the content and presentation
of disclosures related to sustainable activities (see specific criteria in Appendix I section 1.1.1. with regard to
revenues; section 1.1.2.1. with regard to CapEx and section 1.1.3.1. with regard to OpEx);
■ we consolidated the data related to our revenues, CapEx and OpEx on the level of the Group
CD PROJEKT Group’s 2021 Sustainability Report
RESPONSIBLE GOVERNANCE
AND ORGANIZATION
ENVIRONMENTAL
RESPONSIBILITY
114
CAPITAL
GROUP
SOCIAL
RESPONSIBILITY
SUSTAINABLE
DEVELOPMENT
As a result of the above actions, we came to the conclusion that the share of CD PROJEKT Group’s turnover in
2021 aligned with the EU environmental Taxonomy is 0%.
Likewise, a coecient of 0% was obtained for the operating expenditures of the CD PROJEKT Group in 2021.
With regard to aligned capital expenditures in 2021, a value of 9.4 million PLN was obtained.
Taking the above into account, we decided to present the obtained results in the form of a table which concerns
capital expenditures only.
Values and percentage share of CD PROJEKT Group’s capital expenditures aligned with the UE environmental
Taxonomy in 2021:
The Company is not obligated to disclose data concerning its alignment with the environmental sustainability
Taxonomy in 2021 given the fact that it does not qualify as a financial market participant (under the SFRD Direc-
tive) or as an entity to which non-financial disclosure obligations apply (under the NFRD Directive). Nevertheless,
we undertook a voluntary attempt to determine what portion of revenues, operating expenditures and capital
expenditures of the CD PROJEKT Group is aligned with the Taxonomy.
The Company has applied due diligence in ensuring that the data presented above is accurate; however, given
the complexity inherent in assessing the alignment of the Company’s activities with the Taxonomy, we wish to
remark that the presented figures may be adjusted in the future.
In future years we aim to improve our taxonomic analysis mechanisms and presentation of results. This, however,
will depend primarily on legislative progress on further elements of the EU Taxonomy.
Economic activity
Activity code in UE
Taxonomy
CAPEX of the CD
PROJEKT Group aligned
with the EU Taxonomy
(total value)
CAPEX of the CD PROJEKT Group
aligned with the UE Taxonomy
(percentage share)
million PLN %
A. Aligned activity - 9.4 9%
Installation,
maintenance and
repair of energy
eciency equipment
7.3 1.4 1%
Renovation of existing
buildings
7.2 8.1 8%
B. Unaligned activity - 97.8 91%
TOTAL (A + B) - 107.2 100%
CD PROJEKT Group’s 2021 Sustainability Report
115
Attachment 1. Compliance with the requirements of the
Accounting Act in the scope of non-financial disclosures
Requirement (Accounting Act) Document reference
Disclosure of the entity’s business model and key performance
indicators
Business model
Disclosure of management of risks identified as significant ESG risk management at the CD PROJEKT Group
Disclosure of due diligence procedures and performance
indicators related to the entity’s involvement in counteracting
corruption
Anti-corruption policy
Disclosure of policies, due diligence procedures and
performance indicators related to the entity’s involvement
in human rights protection
Our approach to social responsibility
Diversity and inclusion
Disclosure of policies, due diligence procedures and
performance indicators related to the entity’s activities in
the context of social issues
Social responsibility
Disclosure of policies, due diligence procedures and
performance indicators related to the entity’s activities in
the context of the natural environment
Environmental responsibility
Disclosure of policies, due diligence procedures and
performance indicators related to the entity’s activities in
the context of labor issues
Our approach to social responsibility
CD PROJEKT as an employer
Diversity and inclusion
Disclosure of policies, due diligence procedures and
performance indicators related to important issues in the
context of customer/client relations and quality
Communication with gamers
CD PROJEKT Group’s 2021 Sustainability Report
116
Attachment 2. Global Reporting Initiative Index (GRI)
GRI 10255
GRI Disclosure Scope Reference
About the CD PROJEKT Group
GRI 102-1 Name of the organization Basic
About the
CD PROJEKT Group
GRI 102-2
Activities, brands, products,
and services
Basic
About the
CD PROJEKT Group
GRI 102-3 Location of headquarters Basic
About the
CD PROJEKT Group
GRI 102-4 Location of operations Basic
About the
CD PROJEKT Group
GRI 102-5 Ownership and legal form Basic Ownership structure
GRI 102-6 Markets served Basic
About the
CD PROJEKT Group
GRI 102-7 Scale of the organization Basic
About the
CD PROJEKT Group
GRI 102-8
Information on employees
and other workers
Basic
CD PROJEKT
as an employer
GRI 102-9 Supply chain Basic Business model
GRI 102-10
Significant changes to the
organization and its supply
chain
Basic About the Report
GRI 102-11
Precautionary Principle
or approach
Basic
Management of ESG risks
in the CD PROJEKT Group
GRI 102-12 External initiatives Basic ESG goals
GRI 102-13 Membership of associations Basic
Membership in trade
organizations and public
aairs
GRI 102-14
Statement from senior
decision-maker
Basic Letter from the CEO
GRI 102-15
Key impacts, risks,
and opportunities
Basic
Management of ESG risks
in the CD PROJEKT Group
Growth strategy
GRI 102-16
Values, principles,
standards, and norms
of behavior
Basic
Values, compliance,
ethical norms
GRI 102-17
Mechanisms for advice
and concerns about ethics
Basic
Values, compliance,
ethical norms
Reporting irregularities
GRI 102-18 Governance structure Basic
Corporate bodies
of CD PROJEKT S.A.
GRI 102-19 Delegating authority Comprehensive
Corporate bodies
of CD PROJEKT S.A.
CD PROJEKT Group’s 2021 Sustainability Report
117
GRI 102-20
Executive-level
responsibility for economic,
environmental, and social
topics
Comprehensive Top priority ESG issues
GRI 102-21
Consulting stakeholders
on economic,
environmental, and social
topics
Comprehensive
Dialogue with stakeholders
and materiality check
GRI 102-22
Composition of the highest
governance body and
its committees
Comprehensive
Corporate bodies
of CD PROJEKT S.A.
GRI 102-23
Chair of the highest
governance body
Comprehensive
Corporate bodies
of CD PROJEKT S.A.
GRI 102-24
Nominating and selecting
the highest governance
body
Comprehensive
Corporate bodies
of CD PROJEKT S.A.
GRI 102-25 Conflicts of interest Comprehensive Anti-corruption policy
GRI 102-26
Role of highest governance
body in setting purpose,
values, and strategy
Comprehensive
Corporate bodies
of CD PROJEKT S.A.
GRI 102-27
Collective knowledge of
highest governance body
Comprehensive
Dialogue with stakeholders
and materiality check
GRI 102-30
Eectiveness of risk
management processes
Comprehensive
Management of ESG risks
in the CD PROJEKT Group
GRI 102-35 Remuneration policies Comprehensive
Corporate bodies
of CD PROJEKT S.A.
GRI 102-36
Process for determining
remuneration
Comprehensive
Corporate bodies
of CD PROJEKT S.A.
Approach to sustainability in CD PROJEKT Group
GRI 102-40 List of stakeholder groups Basic
Dialogue with stakeholders
and materiality check
GRI 102-42
Identifying and selecting
stakeholders
Basic
Dialogue with stakeholders
and materiality check
GRI 102-43
Approach to stakeholder
engagement
Basic
Dialogue with stakeholders
and materiality check
GRI 102-44
Key topics and concerns
raised
Basic Top priority ESG issue
GRI 102-45
Entities included in the
consolidated financial
statements
Basic
About the
CD PROJEKT Group
GRI 103-1
Explanation of the material
topic and its Boundary
Basic About the Report
GRI 103-2
The management approach
and its component
Basic
Social responsibility
Responsible governance
and organization
Environmental
responsibility
GRI 103-3
Evaluation of the
management approach
Basic
Social responsibility
Responsible governance
and organization
Environmental
responsibility
CD PROJEKT Group’s 2021 Sustainability Report
118
Social responsibility
GRI 102-41
Collective bargaining
agreements
Basic Dialogue with the team
GRI 201-3
Defined benefit plan
obligations and other
retirement plans
Comprehensive Employee Pension Scheme
GRI 202-1
Ratios of standard
entry level wage by
gender compared to local
minimum wage
Comprehensive
Remuneration
and job promotions
GRI 401-1
New employee hires and
employee turnover
Comprehensive
CD PROJEKT
as an employer
GRI 401-2
Benefits provided to full-
time employees that are not
provided to temporary or
part-time employees
Comprehensive Incentivization and benefits
GRI 401-3 Parental leave Comprehensive
CD PROJEKT
as an employer
GRI 403-1
Occupational health and
safety management system
Comprehensive
Occupational health
and safety (OHS)
GRI 403-3 Usługi medycyny pracy Comprehensive
Occupational health
and safety (OHS)
GRI 403-4
Worker participation,
consultation,
and communication on
occupational health and
safety
Comprehensive
Occupational health
and safety (OHS)
GRI 403-5
Worker training on
occupational health and
safety
Comprehensive
Occupational health
and safety (OHS)
GRI 403-6 Promotion of worker health Comprehensive
Actions to benefit the
team’s health and
well-being
GRI 403-7
Prevention and mitigation
of occupational health
and safety impacts
directly linked by business
relationships
Comprehensive
Initiatives to augment
the work comfort
GRI 403-8
Workers covered by an
occupational health and
safety management system
Comprehensive
Occupational health
and safety (OHS)
GRI 403-9 Work-related injuries Comprehensive
Occupational health
and safety (OHS)
GRI 404-1
Average hours of training
per year per employee
Comprehensive Training and development
GRI 404-2
Programs for upgrading
employee skills and
transition assistance
programs
Comprehensive Training and development
GRI 404-3
Percentage of employees
receiving regular
performance and career
development reviews
Comprehensive
Evaluation and
feedback system
GRI 405-1
Diversity of governance
bodies and employees
Comprehensive
Diversity in supervisory
and management bodies
GRI 405-2
Ratio of basic salary and
remuneration of women
to men
Comprehensive
Remuneration and job
promotions
CD PROJEKT Group’s 2021 Sustainability Report
119
GRI 406-1
Incidents of discrimination
and corrective actions
taken
Comprehensive Reporting irregularities
Environmental responsibility
GRi 302-1
Energy consumption within
the organization
Comprehensive Energy consumption
GRi 302-4
Reduction of energy
consumption
Comprehensive Energy consumption
GRi 303-1 Water withdrawal by source Comprehensive Water and sewage
GRI 305-1
Direct GHG emissions
(Scope 1)
Comprehensive Greenhouse gas emissions
GRI 305-2
Energy indirect GHG
emissions (Scope 2)
Comprehensive Greenhouse gas emissions
GRI 305-4 GHG emissions intensity Comprehensive Greenhouse gas emissions
GRI 306-3 Waste generated Comprehensive Waste management
GRI 307-1
Non-compliance with
environmental laws and
regulation
Comprehensive
Our approach to
environmental responsibility
About the Report
GRI 102-46
Defining report content and
topic Boundaries
Basic
About the Report
Dialogue with stakeholders
and materiality check
Top priority ESG issues
GRI 102-47 List of material topics Basic Top priority ESG issues
GRI 102-48
Restatements of
information
Basic About the Report
GRI 102-49 Changes in reporting Basic About the Report
GRI 102-50 Reporting period Basic About the Report
GRI 102-51 Date of most recent report Basic About the Report
GRI 102-52 Reporting cycle Basic About the Report
GRI 102-53
Contact point for questions
regarding the report
Basic About the Report
GRI 102-54
Claims of reporting in
accordance with the GRI
Standards
Basic
Index Global Reporting
Initiative (GRI)
Responsible governance and organization
GRI 201-1
Direct economic value
generated and distributed
Comprehensive
Key financial and non-
financial business indicators
GRI 205-3
Confirmed incidents of
corruption and actions
taken
Comprehensive Anti-corruption policy
GRI 206-1
Legal actions for
anti-competitive behavior,
anti-trust, and monopoly
practices
Comprehensive
Compatibility with
international regulations
and fair competition
CD PROJEKT Group’s 2021 Sustainability Report
120
GRI 207-1 Approach to tax Comprehensive Tax transarency
GRI 207-2
Tax governance, control,
and risk management
Comprehensive Tax transarency
GRI 415-1 Political contributions Comprehensive
Membership in trade
organizations and public
aairs
GRI 416-2
Incidents of
non-compliance concerning
the health and safety
impacts of products and
services.
Comprehensive
Suitable labeling of
products and services
GRI 417-1
Requirements for product
and service information and
labeling.
Comprehensive
Suitable labeling of
products and services
GRI 417-2
Incidents of
non-compliance concerning
product and service
information and labeling.
Comprehensive
Compatibility with
international regulations
and fair competition
GRI 417-3
Incidents of
non-compliance concerning
marketing communications
Comprehensive
Compatibility with
international regulations
and fair competition
GRI 418-1
Substantiated complaints
concerning breaches of
customer privacy and
losses of customer data.
Comprehensive Protection of personal data
GRI 419-1
Non-compliance with laws
and regulations in the social
and economic area
Comprehensive
Compatibility with
international regulations
and fair competition
CD PROJEKT Group’s 2021 Sustainability Report
121
Attachment 3. Sustainability Accounting Standards Board (SASB) Index
Topic Ratio Category Unit Reference
Environmental
Footprint of Hardware
Infrastructure
■ Total energy consumed,
■ Percentage grid electricity,
■ Percentage renewable
Quantitative
GJ;
(%)
Energy
consumption
■ Total water withdrawn,
■ Total water consumed,
percentage of each in
regions with High or
Extremely High Baseline
Water Stress
Quantitative
thousand of m
3
;
(%)
Water and sewage
Discussion of the
integration of environmental
considerations into
strategic planning for
data center needs
Discussion and
analysis
–
Data center
management
Data Privacy
& Freedom of
Expression
Description of policies
and practices relating to
behavioral advertising
and user privacy
Discussion and
analysis
–
Protection of
personal data
Total financial losses as a
result of claims relating to
behavioral advertising and
user privacy
Quantitative
Reporting
currency
Protection of
personal data
Data security
Description of approach to
identifying and addressing
data security risks,
including use of third-party
cybersecurity standards
Discussion and
analysis
– Data security
Recruiting &
Managing a Global,
Diverse & Skilled
Workforce
Percentage of employees
that are
■ foreign nationals and
■ located oshore
Quantitative (%)
Compatibility
with international
regulations and
fair competition
Percentage of gender
and racial/ethnic group
representation for
■ management,
■ technical sta, and
■ all other employee
Quantitative (%)
Compatibility
with international
regulations and
fair competition
Intellectual Property
Protection &
Competitive Behavior
Total amount of monetary
losses as a result of legal
proceedings associated with
anti-competitive behavior
regulations
Quantitative (%)
Compatibility
with international
regulations and
fair competition
CD PROJEKT Group’s 2021 Sustainability Report
122
Adam Kiciński
President of the Board
Marcin Iwiński
Vice President
of the Board
Piotr Nielubowicz
Vice President
of the Board
Adam Badowski
Board Member
Michał Nowakowski
Board Member
Piotr Karwowski
Board Member
Paweł Zawodny
Board Member
Jeremiah Cohn
Board Member
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