Compliance with the EU Taxonomy for sustainable activities
On 18 June 2020, Regulation 2020/852/EU of the European Parliament and of the Council on the establishment of a framework to facilitate sustainable investment was adopted, followed by the adoption, on 21 April 2021, of the classification of environmentally sustainable activities based on the said Regulation, commonly referred to as the Taxonomy.
The Taxonomy defines which categories of economic activity, provided that they fulfill certain additional criteria, including in the technical and social domains, may be considered environmentally friendly. Every company that is required to disclose its non-financial information under Directive 2014/95/EU (Non-Financial Reporting Directive or NFRD) must also disclose in its reports how and to what extent its business involves economic operations that may be classified as environmentally sustainable. The extent of reporting duties in this area will gradually increase, starting with the reports for 2021.
In fulfilling the requirements for a non-financial statement, which is part of the Management Board Report on the Activity of ENEA S.A. and the ENEA Group in 2021, we have identified the business activities carried out by our companies that are eligible for classification as environmentally sustainable. In the next step, the following aspects were analyzed:
- percentage share of revenue generated from products and services related to these lines of business in the total revenue generated by the ENEA Group,
- percentage share of the Group’s capital expenditures and operating expenditures corresponding to the assets or processes associated with the aforementioned activities.
As a result, it was ascertained that in 2021:
- 18.7% of the ENEA Group’s total revenue was generated in lines of business eligible for the EU classification of sustainable economic activities,
- 53.8% of the Group’s capital expenditures (CAPEX) and 48.9% of the Group’s operating expenses (OPEX) were eligible for classification as related to such activities.
The calculation of the share of revenue, CAPEX and OPEX eligible for inclusion in the taxonomy was based on the following principles:
- For the revenue ratio, consolidated net revenue from sales was used the basis for the calculation (as the denominator). In turn, the numerator reflects consolidated revenue from all lines of business eligible for the taxonomy.
- For the CAPEX ratio, the basis for the calculation (denominator) is reflected by the consolidated capital expenditures presented in the annual report in the section containing key operating data and indicators in the ENEA Group. The capital expenditures pertaining to activities eligible for the taxonomy are inserted in the numerator.
- The OPEX ratio is based on all expenses incurred in the day-to-day handling of the company’s assets and aimed at keeping them in proper working condition. These expenses include: costs of labor related to maintenance and repairs, expenses related to repairs and overhauls of equipment, cleaning expenses, fire protection expenses, media control expenses, building security expenses, expenses related to the legalization of devices, such as fire extinguishers, etc. The ratio numerator reflects the portion of operating expenses related to the activities eligible for the taxonomy.
As regards the revenue and CAPEX ratios, the pertinent identifiable consolidated items referred to in the financial portion of the annual report serve as the basis for calculating the share of activities eligible for the taxonomy. As regards the OPEX ratio, due to its specific definition in the Taxonomy, this action turned out unfeasible. In this context, it should be noted that the denominator of the OPEX ratio for the purposes of the Taxonomy is not equal to the sum of operating expenses incurred by the Group. The OPEX ratio denominator identified for the purposes of the Taxonomy was less than PLN 600 million, while the Group’s tax-deductible expenses totaled almost PLN 19 billion, which means that the basis for the OPEX calculation for the purposes of the Taxonomy was only 3.16% of all operating expenses (without taking any other operating business into account).
Taxonomy-compliant revenue
| Item | Taxonomy code |
Revenue [PLN 000s] |
% share |
| A. Business eligible for the taxonomy | – | 3,964,907 | 18.7% |
| Electricity transmission and distribution | 4.9. | 3,135,374 | 14.8% |
| Electricity generation from bioenergy | 4.8. | 542,108 | 2.6% |
| Electricity generation from wind energy | 4.3. | 57,432 | 0.3% |
| Electricity generation from hydro energy | 4.5. | 49,285 | 0.2% |
| Cogeneration of heat/cooling energy and electricity from bioenergy | 4.20. | 82,412 | 0.4% |
| Distribution in heating/cooling systems | 4.15. | 98,296 | 0.5% |
| B. Business not eligible for the taxonomy | – | 17,231,764 | 81.3% |
| TOTAL (A+B) | – | 21,196,671 | 100% |
CAPEX eligible for the taxonomy
| Item | Taxonomy code |
CAPEX [PLN 000s] |
% share |
| A. Business eligible for the taxonomy | – | 1,065,102 | 53.8% |
| Electricity generation using photovoltaic technology | 4.1. | 9,578 | 0.5% |
| Distribution in heating/cooling systems | 4.15. | 44,111 | 2.2% |
| Cogeneration of heat/cooling energy and electricity from bioenergy | 4.20. | 4,768 | 0.2% |
| Installation, maintenance and repair of equipment for improving energy efficiency | 7.3. | 2,959 | 0.1% |
| Electricity generation from bioenergy | 4.8. | 698 | 0.0% |
| Electricity generation from hydro energy | 4.5. | 4,086 | 0.2% |
| Electricity transmission and distribution | 4.9. | 998,903 | 50.4% |
| B. CAPEX on business not eligible for the taxonomy | – | 915,265 | 46.2% |
| TOTAL (A+B) | – | 1,980,367 | 100% |
OPEX eligible for the taxonomy
| Item | Taxonomy code |
OPEX [PLN 000s] |
% share |
| A. Business eligible for the taxonomy | – | 292,866 | 48.9% |
| Electricity transmission and distribution | 4.9. | 256,897 | 42.9% |
| Electricity generation from hydro energy | 4.5. | 1,843 | 0.3% |
| Electricity generation from wind energy | 4.3. | 6,423 | 1.1% |
| Electricity generation from bioenergy | 4.8. | 17,250 | 2.9% |
| Cogeneration of heat/cooling energy and electricity from bioenergy | 4.20. | 7,879 | 1.3% |
| Distribution in heating/cooling systems | 4.15. | 10 | 0.0% |
| Renovation of existing buildings | 7.2. | 2,564 | 0.4% |
| B. OPEX on business not eligible for the taxonomy | – | 306,592 | 51.1% |
| TOTAL (A+B) | – | 599,459 | 100% |
As required by the Regulation, further disclosures related to sustainable activities will be included in subsequent annual non-financial reports. This concerns, in particular, a review of significant contributions to specific environmental goals defined in the Regulation and efforts made to prevent any harm to the pursuit of other goals as well as a review of compliance with the technical criteria adopted for the Taxonomy and minimum social and labor guarantees.