The EU Taxonomy Regulation came into force July 22, 2021. It sets out the conditions an economic activity must meet to qualify as environmentally sustainable. The regulation establishes six environmental objectives. In accordance with Article 8 of the Taxonomy Regulation and Article 10-(2) of the Article 8 Delegated Act, we set forth the share of our Group s revenue, capital expenditure (Capex) and operating expenditure (Opex) for the reporting period 2021, which are associated with Taxonomy-eligible economic activities related to the first two environmental objectives (climate change mitigation and climate change adaptation). The reporting requirements for 2021 are limited to the disclosure of eligible economic activities.
Summary: Based on an exhaustive analysis performed during 2021, our turnover is Taxonomy-non-eligible because our activities are not covered by the Climate Delegated Act to date and, therefore, the capital and operating expenditure related to our activities are also Taxonomy-non-eligible. In addition, the capital expenditure (Capex) to be reported also includes those that are related to the purchase of output from Taxonomy-aligned economic activities. Lastly, our total operating expenses that comply with the EU Taxonomy are non-significant in comparison with our total consolidated operating expenses and we chose to use the materiality exemption option offered by the regulation. Consequently, we report on Capex as mentioned in the table below.
Core business activities: The EU Taxonomy targets the manufacture of products and technologies or the operation of the facilities but not the construction of the facilities. Though our activities are not eligible to the EU Taxonomy, we nevertheless contribute as a leading engineering and technology company to the Energy Transition and enable our clients to generate sustainable electricity.
Eligible capital expenditures (Capex): In 2021, our Taxonomy- eligible Capex mainly comprised the increase in right of use related to our new Headquarters Origine in Nanterre, France. Based on the current available documentation, we have performed a preliminary analysis of the alignment and assessed that our new headquarters complies with the technical screening criteria.
Eligible operating expenses (Opex): Due to our economic activities and our economic model, our operating expenses consist primarily of cost of sales, representing more than 90% of the total consolidated Opex in 2021. Consequently, our total operating expenses that comply with the EU Taxonomy (denominator), represents for the 2021 financial year around 66 million (1.1% of our total consolidated operating expenses). We therefore chose to use the materiality exemption offered by the Regulation, and not to present this indicator.
For more information, refer to Technip Energies Annual Financial Report 2021.
EU Taxonomy
Indicator Unit 2021
Capital expenditures (Capex)
Proportion of Taxonomy - Eligible economic activities % 56
Proportion of Taxonomy - Non-eligible economic activities % 44
Technip Energies Sustainability Report 2021 . 89