What is the EU Taxonomy?

The EU Taxonomy is a classification system that establishes criteria that an economic activity must meet in order to be considered environmentally sustainable. The task of the Taxonomy is to guide investments by companies within the European Union towards more sustainable investments in order to support the Union’s climate and broader environmental policy objectives in the 2030 horizon and beyond. The taxonomy provides companies, investors and policymakers with appropriate definitions of environmentally sustainable activities. In this way, it helps to protect companies and investors, for example, from greenwashing.

In accordance with the Taxonomy¹⁾ (systematics) Regulation, the Group discloses in its annual report::

• Percentage share of turnover derived from products or services related to environmentally sustainable activities
• Percentage share of capital expenditure (CapEx) corresponding to assets or processes related to environmentally sustainable activities
• Percentage share of operating expenses (OpEx) corresponding to assets or processes related to environmentally sustainable activities

In determining whether an activity is environmentally sustainable, it is necessary to examine whether it meets all four prerequisites::

• The activity makes a significant contribution to one or more environmental objectives
• The activity does not cause serious harm to any environmental objective
• The activity is conducted in accordance with Minimum Safeguards
• The technical eligibility criteria are met

The environmental objectives mentioned are::

1) Regulation (EU) 2020/852 of the Parliament and of the Council of 18 June 2020 on establishing a framework to facilitate sustainable investments.