By preparing its non-financial report for 2022 TAURON Group is implementing its obligation to make disclosures to what extent the Group’s operations can be considered environmentally sustainable. Such a requirement stems from Regulation (EU) 2020/852 of the European Parliament and of the Council of June 18, 2020, on the establishment of a framework to facilitate sustainable investments and amending Regulation (EU) 2019/2088, as well as the regulations issued under the Delegated Acts on the establishment of a framework to facilitate sustainable investments (referred to as the „Taxonomy”).
Pursuant to Commission Delegated Regulation (EU) 2021/2178 of July 6, 2021, supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by clarifying the content and presentation of the information on environmentally sustainable business activities to be disclosed by companies subject to Article 19a or 29a of Directive 2013/34/EU, and specifying the method for fulfilling this disclosure obligation – pursuant to Art. 10 of the aforementioned Delegated Act (EU), for the period from January 1, 2022 to December 31, 2022, non-financial companies shall only disclose the percentage proportions of systematics Taxonomy – eligible business activities and Taxonomy non-eligible business activities in the total Turnover (Revenue), Capital Expenditures (CapEx) and Operating Expenses (OpEx), as well as the necessary qualitative information. In addition, to assess whether the Group’s activities, and in what proportion, are environmentally sustainable according to the Taxonomy, a classification of the activities against the Criteria for making a significant contribution to one or more environmental goals and against the Criteria for the „do no significant harm” (DNSH) principle is carried out.
For the preparation of the Taxonomy related disclosures for 2022, in all operating segments (lines of business) of TAURON Group’s operations, as well as within the Group’s subsidiaries, an analysis of the activities conducted by TAURON Group was carried out, as a result of which the activities that were eligible for the Taxonomy systematics were identified, in line with the description of activities according to the Commission Delegated Regulation (EU) 2021/2139 and shown in Annex I (Climate Change Mitigation) or Annex II (Climate Change Adaptation). TAURON Group has qualified its activities based on the description of activities included in Annex I and II for the Technical Qualification Criteria and, in a subsidiary manner, using the NACE codes included therein.
Division of activities carried out by TAURON Group’s subsidiaries
The operations of TAURON Group’s subsidiaries are organized within operating segments, in line with the consolidated breakdown in the financial reporting. TAURON Group’s operations were organized in 2022 based on six operating segments: Mining (discontinued operations), Generation, Renewable Energy Sources, Distribution, Supply and Other (Other Operations).
Identification of economic activities included in Taxonomy
Pursuant to Annexes I and II, supplementary to Commission Delegated Regulation (EU) 2021/21392 of June 4, 2021, those activities carried out by TAURON Group’s subsidiaries and entities that were eligible for the Taxonomy in 2022 were selected, and they were:
The above classification above also takes into account the additional Delegated Commission Act (EU) 2022/1214 of March 9, 2022, amending Delegated Regulation (EU) 2021/2139 with regard to economic activities in certain energy sectors and Delegated Regulation (EU) 2021/2178 with regard to public disclosure of specific information with respect to these economic activities. This is a delegated act that includes gas and nuclear energy, among others, in the Taxonomy.
Determination of the indicators for the activities that qualify (are eligible) for the Taxonomy
In the next step, TAURON Group’s individual operating segments were assigned to two categories:
In cases where activities carried out as part of the operations of the given operating segment of TAURON Group included both, activities eligible for the Taxonomy (aligned and not-aligned with the systematics of the Environmental Taxonomy – category I), as well activities not eligible for the Taxonomy (not-eligible for the systematics of the Environmental Taxonomy – category II), an additional division inside the given operating segment was introduced, classifying the segment generically as having a partial eligibility for the Taxonomy.
In order to calculate the proportions of the Turnover („Revenue”), Capital Expenditures (CapEx) and Operating Expenses (OpEx) eligible for the Environmental Taxonomy systematics (classification), the same accounting principles that apply to the preparation of TAURON Group’s consolidated annual financial statements were adopted. The flows occurring between the operating segments, used in the preparation of the financial statements, were taken into account.
The shares of Taxonomy eligible and Taxonomy non-eligible business activities in the total Turnover (Revenue), Capital Expenditures (CapEx) and Operating Expenses (OpEx) (OpEx acc. Taxonomy definition) for TAURON Group for 2022 (and for the previous year) is presented in the following tables (Table 57-a, 57-b and 57-c) and in tables below:
| Business activities (Business Activity) |
Criteria for substantial contribution | Criteria for „Do No Significant Harm” [DNSH] (4) | ||||||||||||||||||
| TAXONOMY – Code or codes | Turnover „Revenue” (absolute value) 2022 (1) |
Proportion of turnover „Revenue” 2022 (2) |
Climate change mitigation (3) | Climate change adaptation | Water and marine resources | Circular economy | Pollution | Biological diversity and ecosystems | Climate change mitigation | Climate change adaptation | Water and marine resources | Circular economy | Pollution | Biological diversity and ecosystems | Minimum safeguards (5) | Percentage share aligned for the systematics (environmental Taxonomy) – 2022 | Percentage share aligned for the systematics (environmental Taxonomy) – 2021 |
Category („enabling activity”) (6) |
Category („transitional activities”) (6) |
|
| PLN m | % | % | % | % | % | % | % | T/N | T/N | T/N | T/N | T/N | T/N | T/N | % | % | E | T | ||
| A. ENVIRONMENTAL TAXONOMY SYSTEMATICS-ELIGIBLE ACTIVITY | ||||||||||||||||||||
| A.1. Types of environmentally sustainable activities (aligned with the systematics) | ||||||||||||||||||||
| Electricity generation using photovoltaic technology | 4.1 | 166 | 0,4 | 100 | – | – | – | – | – | T | T | T | T | 0,4 | 0,6 | |||||
| Electricity generation from wind power | 4.3 | 100 | – | – | – | – | – | T | T | T | T | |||||||||
| Electricity generation from hydropower* | 4.5 | 100 | – | – | – | – | – | T | T | T | T | |||||||||
| Transmission and distribution of electricity | 4.9 | 3655 | 9,8 | 100 | – | – | – | – | – | T | T | T | T | T | 9,8 | 13,4 | E | |||
| Storage of thermal energy | 4.11 | 0 | 0,0 | 100 | – | – | – | – | – | T | T | T | T | 0,0 | 0,0 | |||||
| District heating/cooling distribution | 4.15 | 422 | 1,1 | 100 | – | – | – | – | – | T | T | T | T | T | 1,1 | 1,5 | ||||
| Cogeneration of heat/cool and power from bioenergy (biomass) | 4.20 | 303 | 0,8 | 100 | – | – | – | – | – | T | T | T | T | T | 0,8 | 0,6 | ||||
| Installation, maintenance and repair of energy efficiency equipment | 7.3 (d) | 4,7 | 0,01 | 100 | – | – | – | – | – | T | T | T | 0,01 | 0,01 | ||||||
|
Turnover („Revenue”) from environmentally sustainable activities
(aligned for the systematics) (A.1.). |
4550 | 12,2 | 100 | – | – | – | – | – | 12,2 | 16,1 | ||||||||||
| A.2. Activities that are systematics-eligible, but are not environmentally sustainable (activities not aligned for the systematics) | ||||||||||||||||||||
| Transmission and distribution of electricity | 4.9 | 11 | 0,03 | |||||||||||||||||
| Turnover („Revenue”) from activities that are systematics-eligible, but are not environmentally sustainable (activities not aligned for the systematics) (A.2.) | 11 | 0,03 | ||||||||||||||||||
| Total (A.1. + A.2.) | 4561 | 12,2 | ||||||||||||||||||
| B. NON-SYSTEMATICS-ELIGIBLE ACTIVITY | ||||||||||||||||||||
| Turnover („Revenue”) from activities that are non-systematics-eligible (B.) | 32 780 | 87,8 | ||||||||||||||||||
| Total (A. + B.) | 37 341 | 100,0 | ||||||||||||||||||
| Criteria for substantial contribution | Criteria for „Do No Significant Harm” [DNSH] (4) | |||||||||||||||||||
|
Business activities (Business Activity) |
TAXONOMY – Code or codes | Capital expenditures CapEx (absolute value) 2022 (1) | Proportion of capital expenditures CapEx 2022 (2) | Climate change mitigation (3) | Climate change adaptation | Water and marine resources | Circular economy | Pollution | Biological diversity and ecosystems | Climate change mitigation | Climate change adaptation | Water and marine resources | Circular economy | Pollution | Biological diversity and ecosystems | Minimum safeguards (5) |
Percentage share aligned for the systematics (environmental Taxonomy) 2022 |
Percentage share aligned for the systematics (environmental Taxonomy) 2021 |
Category („enabling activity”) (6) |
Category („transitional activities”) (6) |
|
PLN m |
% | % | % | % | % | % | % | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | % | % | E | T | ||
| A. ENVIRONMENTAL TAXONOMY SYSTEMATICS-ELIGIBLE ACTIVITY | ||||||||||||||||||||
| A.1. Types of environmentally sustainable activities (aligned with the systematics) | ||||||||||||||||||||
| Electricity generation using photovoltaic technology | 4.1 | 459 | 11.6 | 100 | – | – | – | – | – | Y | Y | Y | Y | 11.6 | 3.1 | |||||
| Electricity generation from wind power | 4.3 | 100 | – | – | – | – | – | Y | Y | Y | Y | |||||||||
| Electricity generation from hydropower* | 4.5 | 100 | – | – | – | – | – | Y | Y | Y | Y | |||||||||
| Transmission and distribution of electricity | 4.9 | 2 137 | 53.9 | 100 | – | – | – | – | – | Y | Y | Y | Y | Y | 53.9 | 69.7 | E | |||
| Storage of thermal energy | 4.11 | 0 | 0.0 | 100 | – | – | – | – | – | Y | Y | Y | Y | 0.0 | 0.0 | |||||
| District heating/cooling distribution | 4.15 | 12,2 | 0.3 | 100 | – | – | – | – | – | Y | Y | Y | Y | Y | 0.3 | 0.3 | ||||
| Cogeneration of heat/cool and power from bioenergy (biomass) | 4.20 | 2.1 | 0.1 | 100 | – | – | – | – | – | Y | Y | Y | Y | Y | 0.1 | 0.1 | ||||
| Installation, maintenance and repair of energy efficiency equipment | 7.3 (d) | 37 | 0.9 | 100 | – | – | – | – | – | Y | Y | Y | 0.9 | 0.5 | ||||||
| Capital expenditures CapEx due to environmentally sustainable activities (aligned for the systematics) (A.1.). | 2647 | 66.8 | 100 | – | – | – | – | – | 66.8 | 73.7 | ||||||||||
| A.2. Activities that are systematics-eligible, but are not environmentally sustainable (activities not aligned for the systematics) | ||||||||||||||||||||
| Transmission and distribution of electricity | 4.9 | 0 | 0.00 | |||||||||||||||||
| Capital expenditures CapEx due to activities that are systematics-eligible, but are not environmentally sustainable (activities not aligned for the systematics) (A.2.) | 0 | 0.00 | ||||||||||||||||||
| Total (A.1. + A.2.) | 2647 | 66.8 | ||||||||||||||||||
| B. NON-SYSTEMATICS-ELIGIBLE ACTIVITY | ||||||||||||||||||||
| Capital expenditures CapEx due to activities that are non-systematics-eligible (B.) | 1 315 | 33.2 | ||||||||||||||||||
| Total (A. + B.) | 3 962 | 100,0 | ||||||||||||||||||
| Criteria for substantial contribution | Criteria for „Do No Significant Harm” [DNSH] (4) | |||||||||||||||||||
|
Business activities (Business Activity) |
TAXONOMY – Code or codes |
Operating expenses OpEx absolute value 2022 (1) |
Proportion of operating expenses OpEx 2022 (2) | Climate change mitigation (3) | Climate change adaptation | Water and marine resources | Circular economy | Pollution | Biological diversity and ecosystems | Climate change mitigation | Climate change adaptation | Water and marine resources | Circular economy | Pollution | Biological diversity and ecosystems | Minimum safeguards (5) |
Percentage share aligned for the systematics (environmental Taxonomy) 2022 |
Percentage share aligned for the systematics (environmental Taxonomy) 2021 |
Category („enabling activity”) (6) |
Category („transitional activities”) (6) |
|
PLN m |
% | % | % | % | % | % | % | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | % | % | E | T | ||
| A. ENVIRONMENTAL TAXONOMY SYSTEMATICS ELIGIBLE ACTIVITY | ||||||||||||||||||||
| A.1. Types of environmentally sustainable activities (aligned with the systematics) | ||||||||||||||||||||
| Electricity generation using photovoltaic technology | 4.1 | 17 | 3.5 | 100 | – | – | – | – | – | Y | Y | Y | Y | 3.5 | ||||||
| Electricity generation from wind power | 4.3 | 100 | – | – | – | – | – | Y | Y | Y | Y | |||||||||
| Electricity generation from hydropower* | 4.5 | 100 | – | – | – | – | – | Y | Y | Y | Y | |||||||||
| Transmission and distribution of electricity | 4.9 | 266 | 54.7 | 100 | – | – | – | – | – | Y | Y | Y | Y | Y | 54.7 | E | ||||
| Storage of thermal energy | 4.11 | 0.3 | 0.1 | 100 | – | – | – | – | – | Y | Y | Y | Y | 0.1 | ||||||
| District heating/cooling distribution | 4.15 | 4.4 | 0.9 | 100 | – | – | – | – | – | Y | Y | Y | Y | T | 0.9 | |||||
| Cogeneration of heat/cool and power from bioenergy (biomass) | 4.20 | 1.2 | 0.2 | 100 | – | – | – | – | – | Y | Y | Y | Y | Y | 0.2 | |||||
| Installation, maintenance and repair of energy efficiency equipment |
7.3 (d) |
0.5 | 0.1 | 100 | – | – | – | – | – | Y | Y | Y | 0.1 | |||||||
| Operational expenses OpEx due to environmentally sustainable activities (aligned for the systematics) (A.1.). | 290 | 59.5 | 100 | – | – | – | – | – | 59.5 | |||||||||||
| A.2. Activities that are systematics-eligible, but are not environmentally sustainable (activities not aligned for the systematics) | ||||||||||||||||||||
| Transmission and distribution of electricity | 4.9 | 0.1 | 0.02 | |||||||||||||||||
| Operational expenses OpEx due to activities that are systematics-eligible, but are not environmentally sustainable (activities not aligned for the systematics) (A.2.) | 0.1 | 0.02 | ||||||||||||||||||
| Total (A.1. + A.2.) | 290 | 59.5 | ||||||||||||||||||
| B. NON-SYSTEMATICS-ELIGIBLE ACTIVITY | ||||||||||||||||||||
| Operational expenses OpEx due to activities that are non-systematics-eligible (B.) | 197 | 40.5 | ||||||||||||||||||
| Total (A. + B.) | 487 | 100 | ||||||||||||||||||
| Disclosure regarding the percentage share of turnover (Revenue) from products or services related to business activities aligned for the taxonomy – disclosure is for 2022 | EU environmental taxonomy. Disclosure regarding the percentage share of capital expenditures (CapEx) due to products or services related to business activities aligned for the taxonomy – the disclosure is for 2022 | EU environmental taxonomy. Disclosure regarding the percentage share of operating expenses (OpEx) due to products or services related to business activities aligned for the taxonomy – the disclosure is for 2022 |
|
(1) Turnover „Revenue” (absolute value): revenue from each individual activity. If an activity is present in both A.1 and A.2 or B, the figure refers to the proportion of the activity that corresponds to A.1, A.2 or B. For activities carried out within the same operating segment of TAURON Group, the division of revenues among individual activities in accordance with the Group’s consolidated revenue reporting rules.
A.2. this item represents new connections to the distribution grid of a Group company (period of the last five years) for which the GHG emission intensity exceeds the threshold of 100 gCO2eq/kWh and were excluded from A.1. The most significant assumptions made for the disclosure for 2022: 100% of the share of Taxonomy-aligned business was attributed to the operations of the TAURON Distribution and TAURON Ekoenergia (RES) subsidiaries. With regard to cogeneration of heat/cooling energy and electricity from bioenergy (biomass), a corresponding separation of the „Revenue” was made within the Generation operating segment. Similarly, a partial separation of the „Revenue” was made for TAURON Nowe Technologie with respect to the installation, maintenance and repair of energy efficiency equipment, and for TAURON Ciepło with respect to heat distribution (revenue for the contracted capacity). The revenues were not shown for activities involving thermal (heat) energy storage. Sales between TAURON Group’s individual operating segments were not taken into account in determining the total revenue for the Taxonomy. (2) Proportions of Turnover „Revenue”: percentage share of Revenue of each individual business activity to the Group’s total revenue (A + B). (3) Substantial contribution to climate change mitigation: refers to the share of revenue out of each individual economic activity (indicated in the column Revenue) that contributes to climate change mitigation. This is the only objective of the EU taxonomy regulation alignment analysis shown in the table, as it is considered more relevant compared to the climate change adaptation objective. The criteria for the 4 other environmental objectives are not yet available. |
(1) Capital expenditures CapEx: CapEx for each individual activity. If an activity is present in both A.1 and A.2 or B, the figure refers to the proportion of the activity that corresponds to A.1, A.2 or B, The most significant assumptions used for the 2022 disclosure: 100% of CapEx expenditures in operations in the Distribution and RES operating segments were assigned as aligned for the Taxonomy.
A.2. this item represents new connections to the distribution grid of a Group company (period of the last five years) for which the GHG emission intensity exceeds the threshold of 100 gCO2eq/kWh and were excluded from A.1. (2) Proportion of capital expenditures CapEx: percentage share of CapEx of each individual business activity out of the Group’s total capital expenditures. (3) Substantial contribution to climate change mitigation: refers to the share of ”capital expenditures” CAPEX for each individual economic activity (indicated in the column “capital expenditures”) that contributes to climate change mitigation. This is the only objective of the EU taxonomy regulation alignment analysis shown in the table, as it is considered more relevant compared to the climate change adaptation objective. Although part of the cost is also related to the contribution to adaptation of the assets to climate change, it has not been identified as substantial. The criteria for the other 4 environmental objectives are not yet available.
|
(1) Absolute OpEx: OpEx for each individual activity. If an activity is present in both A.1 and A.2 or B, the figure refers to the proportion of the activity that corresponds to A.1, A.2 or B.
A.2. this item represents new connections to the distribution grid of a Group company (period of the last five years) for which the GHG emission intensity exceeds the threshold of 100 gCO2eq/kWh and were excluded from A.1 (2) Proportion of OpEx: percentage impact of OpEx of each individual business activity out of the total ordinary operating expenses required by the taxonomy at Group level. (3) Substantial contribution to climate change mitigation: refers to the share of ordinary OpEx for each individual economic activity (indicated in the column Absolute OpEx) that contributes to climate change mitigation. This is the only objective of the EU taxonomy regulation alignment analysis shown in the table, as it is considered more relevant compared to the climate change adaptation objective. Although part of the cost is also related to the contribution to adaptation of the assets to climate change, it has not been identified as substantial. The criteria for the other 4 environmental objectives are not yet available. OpEx as defined by Commission Delegated Regulation (EU) 2021/2178 as direct, direct non-capitalised costs that relate to research and development, building renovation measures, short-term lease, maintenance and repair, and any other direct expenditures relating to the day-to-day servicing of assets of property, plant and equipment by the undertaking or third party to whom activities are outsourced that are necessary to ensure the continued and effective functioning of such assets. |
|
(4) DNSH: environmental objectives meeting the DNSH “do no significant harm criteria” are specified for each activity, (5) Minimum safeguards: indicates whether the minimum safeguards, as per the Taxonomy, are respected for each individual activity listed In the table. (6) Category: specifies whether the activity makes a direct contribution to climate mitigation or is an enabling or transitional activity. * activity „Generation of electricity from hydropower” in terms of Technical Eligibility Criteria – a significant contribution to climate change mitigation meets one of the required criteria, with the criterion „the life-cycle GHG emissions from the generation of electricity from hydropower, are lower than 100 g CO2 e/kWh.” verified and met, if applicable, but without a third-party confirmation |
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| Revenue, CapEx and OpEx aligned for Taxonomy were not audited. | ||
