9.8 EU taxonomy

Definitions eligibility and alignment

In order to classify an activity as environmentally sustainable in terms of the EU taxonomy, a distinction between taxonomyeligibility and taxonomy-alignment must be made. It is required to examine whether an activity is described in the Delegated Acts by the European Commission. These activities are taxonomy-eligible. This does not mean that the activity is environmentally sustainable. It merely indicates that the activity is included in the classification system of the EU taxonomy. To classify an activity as taxonomy-aligned, it must meet the technical screening criteria in the Delegated Regulation for one of the objectives and not cause significant harm to one of the other five environmental objectives. From reporting year 2022 onwards, BAM is required to report on environmental sustainability under the EU taxonomy (taxonomyalignment).

Process eligibility scan

The analysis with regard to taxonomy-eligibility is carried out based on project descriptions of revenue, capital expenditure, and operating expenditure. BAM mapped the projects on NACE-codes (codes defined by the European Union to classify economic activities). Next, BAM compared the project descriptions per NACE-category with Annex I (substantial contribution to climate change mitigation) and Annex II (substantial contribution to climate change adaptation) of the Delegated Regulation of (EU) 2020/852. The sum of the additions that reflect a taxonomyeligible operational expenditure, capital expenditure or revenue stream forms the numerator of the KPIs. Please refer to table 49 for an elaborate description of the numerators and denominators of the three KPIs.

Results

Revenue
The revenue KPI is calculated based on the proportion of net revenue generated from products and services that qualify for the EU taxonomy. Revenue related to Joint Ventures (as reported in Note 11 of the Financial statements) is not included in the scope of the assessment. The percentage of revenue that is eligible for the taxonomy is 89 per cent. 1 per cent is not eligible. For the remaining 10 per cent descriptions in the system used for the analysis were insufficient to determine eligibility of economic activities. The categories of BAM’s taxonomy-eligible activities under the revenue KPI include the construction of: bridges and tunnels, railways and underground railways, residential and non-residential buildings, roads and motorways, utility projects for electricity and telecommunications, utility projects for fluids, and the construction of water projects.

Capital expenditure
BAM estimated that the eligibility for the EU taxonomy of the capital expenditure KPI is 81 per cent. 8 per cent is not eligible. For the remaining 11 per cent of the capital expenditure further investigation is needed to determine eligibility for the EU taxonomy as descriptions in the system used for the analysis were insufficient to determine eligibility of economic activities. For each of the additions is determined if there is a specific allocation possible to an economic activity in the EU taxonomy. Eligibility for the remaining additions is estimated based on the propotion of the capital expenditure associated with taxonomy-eligible activities. Capital expenditure related to Joint Ventures (as reported in Note 11 of the Financial statements) is not included in the scope of the assessment.

Operational Expenditure
The definition of the operational expenditure KPI is, unlike the other KPIs, not aligned with the definition under IFRS. The operational expenditures-KPI is calculated by the proportion of the operating expenditure associated with taxonomy-eligible activities. The operational expenditure KPI eligibility for EU taxonomy is estimated at 89 per cent and 1 per cent is not eligible. For the remaining 10 per cent further investigation is required as descriptions in the system used for the analysis were insufficient to determine eligibility of economic activities.

Further clarifications and definitions of KPIs

The consolidated financial statements of BAM have been prepared as of 31 December 2021 in accordance with IFRS. BAM consolidated the denominators for revenue, capital expenditures, and operational expenditures with the reported data in the consolidated financial statements to mitigate the risk of double counting. Definitions revenue, capital expenditure, operational expenditure Table 49 provides the basis for the numerator and denominator of EU taxonomy eligibility for respectively revenue, capital expenditures and operational expenditures.

Prospects

The current taxonomy screening is based on BAM’s interpretation of EU taxonomy guidelines available during 2021. From fiscal year 2022 onwards, a more extensive analyses will be required, not only to determine eligibility, but also alignment of eligible activities. Furthermore, the remaining four environmental objectives (water and marine resources; the transition to a circular economy; pollution prevention and control, and biodiversity and ecosystems) will be in scope. Guidelines of EU taxonomy are still in development and some elements are open to interpretation. The above will potentially effect BAM’s interpretation of the EU taxonomy and possibly impact the reported figures of taxonomy eligibility. Management is therefore committed to keep monitoring EU taxonomy developments closely to ensure correct assessments for its annual disclosures. Not all sustainability efforts are (yet) recognised under the EU taxonomy regulation. BAM is committed to continuously improve its sustainability performance, refer to paragraph 3.3 Environmental performance.

 

Revenue

Capital Expenditures

Capital Expenditures


Numerator

Revenues derived from products and/or services associated with EU taxonomyeligible activities.

Capital expenditures that:
  • are related to assets or processes associated with the EU taxonomyeligible activities;
  • are part of a plan to expand taxonomy-eligible economic activities, or;
  • that enable taxonomy-eligible activities to become taxonomy-aligned.

Operating expenses that are related to assets or processes associated with the EU taxonomy-eligible activities.

Denominator

Revenues accounted for in the Consolidated Income Statement under IFRS (included in Note 5 in the Financial Statements)

Additions to tangible and intangible assets accounted for in the Consolidated Financial Statements under IFRS during the financial year, considered before depreciation, amortisation and any re-measurements, excluding Goodwill (included in Note 7, 8 and 9 in the Financial Statements).

Direct non-capitalised costs recorded in the Consolidated Income Statement under IFRS that relate to research and development, building renovation measures, short-term lease, maintenance and repair (excluding expenses reported as raw materials and consumables used), and any other direct expenditures relating to the day-to-day servicing of assets or Property, Plant, and Equipment (PPE).

Taxonomy- eligible percentage

(in %)
 
89

81
 
89

Total value denominator

€7.3 billion

€121 million

€72 million

 

 

Geen naam gevonden

Geen naam gevonden