Financial risks for investors in the ZE PAK SA IPO

Press release - 19 October, 2012
Warsaw, 19 October 2012 — Greenpeace and CEE Bankwatch are contacting analysts and investors to warn them that participating in the ZE PAK SA initial public offering in Poland could leave buyers exposed to significant financial risk.

Owen Pascoe, Greenpeace International Senior Investment Campaigner, said:

“ZE PAK has failed to fully inform investors about the risks of investing in a company with a business model based on dirty and outdated coal technology.”

“Resistance to ZE PAK’s coal mining plans, coupled with their deadly air pollution and significant greenhouse gas emissions, make this a risky investment that should be avoided.”

Key financial and environmental risks include:

  • ZE PAK already suffers financially from significant constrains on its coal supply. The company's proposed mine expansions face strong resistance both locally and from the Minister of Agriculture. An un-finalised EU Commission infringement procedure has found breaches of environment law at the Tomislawice mine.
  • ZE PAK power plants are substantially overvalued given their large environmental costs and liabilities, their low and decreasing capacity factors and high capex needs.
  • ZE PAK air pollution emissions are estimated to be responsible for 258 deaths every year. ZE PAK’s high CO2 emissions put it at a competitive disadvantage in the European electricity market.
  • The annual economic impact of emissions is estimated to be €993 million, higher than the valuation of the company based on the current IPO price range.


Please see attached a detailed briefing substantiating these concerns, which Greenpeace International has shared with analysts and potential buyers of the share issue:


For more information, contact:


Owen Pascoe, Greenpeace International Senior Investment Campaigner,

Mobile: +31 (0) 6 46 197 332