RC4: EU Taxonomy Eligibility and Alignment

Report on the EU taxonomy eligibility and or alignment of activities. This information can be used for EU-Taxonomy eligibility and alignment of a Financial Product (i.e. participating entity) for pre-contractual and periodic disclosure requirements under the lens of the SFDR regulation - Phase II, and to complete the SFDR templates of Annex II and IV for Article 8 products, and Annex III and V for Article 9 products.

Please refer to the official 'EU Taxonomy Navigator' for a detailed overview of how to report on the EU Taxonomy. This can be found at the following link: https://ec.europa.eu/sustainable-finance-taxonomy/

Select the applicable economic activity(ies) in which the entity has eligibility and/or has identified alignment: Select all significant activities included in the entity's business that are eligible as EU taxonomy aligned activities as per the Commission Delegated Regulation (EU) 2021/852. If an activity is selected, provide the % aligned with the EU-Taxonomy technical screening criteria for a given environmental objective.

The Technical Screening criteria (TSC) under the Taxonomy Regulation define when an activity is deemed sustainable (Draft report of 3 August 2021 by the Platform on Sustainable Finance on preliminary recommendations for technical screening criteria for the EU taxonomy, p. 9).

In order to claim EU-Taxonomy alignment, an activity has to substantially contribute to one of the 6 environmental objectives, do no significant harm (DNSH) to the remaining 5 objectives, and comply with the minimum social safeguards.

EU Taxonomy eligibility: Select all of the activities that are included within the EU taxonomy eligibility. Taxonomy-eligible economic activities under the Taxonomy Regulation mean economic activities that are described in the European Commission’s delegated acts.

EU Taxonomy alignment (%): Provide the % aligned for the economic activity based on the Technical Screening Criteria (TSC).

Investments with an environmental objective aligned with the EU Taxonomy: Provide the % of activities, out of the total eligible activities, that are aligned with an environmental objective of the EU Taxonomy.

Select the applicable entity's investment eligibility and alignment on the EU Taxonomy 3 KPIs: Provide the % aligned with the 3 KPIs defined by the EU Taxonomy.

Terminology

Capex

Capital expenditure (CapEx) key performance indicator (KPI) under the Taxonomy Regulation represents the proportion of the capital expenditure of an activity that is either already taxonomy-aligned or is part of a credible plan to extend or reach taxonomy- alignment.

CapEx provides a dynamic and forward-looking view of companies’ plans to transform their business activities.

Opex

Operating expenditure (OpEx) key performance indicator (KPI) under the Taxonomy Regulation represents the proportion of the operating expenditure associated with taxonomy-aligned activities or to the CapEx plan.

The operating expenditure covers direct non-capitalised costs relating to research and development, renovation measures, short-term lease, maintenance and other direct expenditures relating to the day-to-day servicing of assets of property, plant and equipment that are necessary to ensure the continued and effective use of such assets.

Turnover

Proportion of the turnover key performance indicator (KPI) under the Taxonomy Regulation represents the proportion of the net turnover derived from products or services that are taxonomy-aligned.

The Turnover KPI gives a static view of the companies’ contribution to environmental goals.

Evidence (optional): Evidence will not be subject to manual validation for this indicator.

Document upload or hyperlink: The evidence should sufficiently support all the items selected for this question. If a hyperlink is provided, ensure that it is active and that the relevant page can be accessed within two steps. It is possible to upload multiple documents, as long as it’s clear where information can be found.

The provided evidence should cover the following elements:

1. Demonstrate that the economic activities of the financial product are eligible, and if so, aligned with the Taxonomy Regulation;

2. Demonstrate the % of investments with an environmental objective aligned with the Taxonomy Regulation;

3. Demonstrate the eligibility and alignment of the financial product with the 3 KPIs specified by the Taxonomy Regulation.

Documents uploaded or hyperlinks provided won't be displayed in the SFDR Report and are collected for informational purposes only.

Economic Activities (EU) 2021/2139

Taxonomy Regulation (EU) 2020/852

SFDR Annexes