Taxonomy Regulation

Information pursuant to Article 8 of the EU Taxonomy Regulation (2020/852) and the Commission Delegated Regulation (EU) 2021/2178

A key objective of the EU is to make the European economy more climate-friendly by reducing CO₂ emissions. This requires increased investment in sustainable economic activities. Implementation takes place within the framework of the ‘EU Action Plan on Sustainable Finance’, which supports the financing of sustainable investments and projects.

The EU Taxonomy provides a standardised and legally binding classification system for environmentally sustainable economic activities. Each year, the Energie AG Group assesses which of its activities can be classified as taxonomy-eligible and taxonomy-aligned, based on the delegated acts published for the six environmental objectives.

Verification of taxonomy compliance is carried out by subject-matter experts within the decentralised Group companies.

Defining Taxonomy-eligible economic activities

The first step for Energie AG was to identify the economic activities carried out within the Group that are listed in the delegated regulations; this was undertaken in several interactive workshops using the ‘EU Taxonomy Navigator’. The NACE codes (Nomenclature of Economic Activities) referenced in the descriptions of the economic activities were also taken into account.

Assessing the Taxonomy alignment of economic activities

In the second step, the Taxonomy-eligible economic activities identified for the Energie AG Group were evaluated to determine whether they make a material contribution to one of the following six environmental objectives:

1. Climate change mitigation
2. Climate change adaptation
3. Sustainable use and protection of water and marine resources
4. Transition to a circular economy
5. Pollution prevention and control
6. Protection and restoration of biodiversity and ecosystems

An assessment was then carried out to determine whether the pursuit of these economic activities adversely affects any of the other five environmental objectives (DNSH – ‘do no significant harm’). Finally, compliance with the minimum safeguards was reviewed at Group level. When these steps had been evaluated positively, the relevant economic activities were declared Taxonomy-aligned.

Technical screening criteria (fulfilment of substantial contribution and DNSH criteria)

The assessment and documentation of the relevant data on the substantial contribution to the associated environmental objective, as well as the verification that no significant harm is caused to the remaining five environmental objectives (DNSH), were carried out by designated technical experts from the respective Group entities.

Only those economic activities that make a substantial contribution to at least one of the six EU environmental objectives listed above (material contribution) and that do not cause significant harm to any of the other environmental objectives (DNSH), while also meeting the required minimum social safeguards, may be classified as Taxonomy-aligned. An activity may be declared Taxonomy-aligned only when all criteria are fully satisfied.

Climate risk and vulnerability assessments

The assessment of climate risk and vulnerability is a process for identifying and evaluating climate-related risks that may affect economic activities. To avoid any significant impairment of the environmental objective ‘Climate change adaptation’ (DNSH 2), all economic activities classified as Taxonomy-aligned and contributing substantially to climate change mitigation must meet the requirements set out in Appendix A of Annex I to Delegated Regulation (EU) 2021/2139. These provisions require a climate risk and vulnerability assessment to identify the major climatic factors affecting the respective activity.

The first step was to determine whether any potential climate risks could impair the effectiveness of the relevant economic activity over its lifetime. Where such risks were identified, appropriate adaptation measures were defined to mitigate the physical climate risks. The climate risk and vulnerability assessments were carried out using a standardised assessment sheet and are updated annually.

Minimum safeguards

Energie AG ensures observance of the social minimum safeguards under Article 18 of the EU Taxonomy Regulation through the application of management processes established across the Group as well as organisational regulations (partly through codes of conduct and Group policies).

In line with the published guidelines and codes of conduct, Energie AG undertakes to comply with, among other things:

• human rights and labour rights
• rules on compliance and combating corruption
• fair competition
• applicable tax provisions

These policies and processes and their observance essentially constitute the required due diligence checks. Moreover, it is also a condition for positive fulfilment of the minimum safeguards that there are no significant violations of social standards.

In addition to the aforementioned policies and codes of conduct, the Group-wide whistleblowing system and the new Diversity, Equity & Inclusion (DEI) initiative play major roles in the Group’s compliance with these obligations.

Furthermore, Energie AG’s Purchasing Directive, which was updated in the previous fiscal year, requires the Group’s suppliers and business partners to adhere to these principles. A concept for software-based supplier monitoring has also been introduced within the Energie AG Group.

No violations of social standards were identified in Energie AG Group in the 2024/25 fiscal year.

The Taxonomy-eligible economic activities identified within the meaning of the EU Taxonomy across the Energie AG Group, relating to the environmental objectives of climate change mitigation (CCM), transition to a circular economy (CE) and pollution prevention and control (PPC), include:

Economic activity CCM 4.3. Electricity generated from wind power is not included in Energie AG's disclosures under the EU Taxonomy Regulation because the wind power-related participating interests within Energie AG Group are not consolidated or only consolidated using the equity method.

Certain economic activities carried out in Energie AG Group may however be Taxonomy-eligible for several environmental objectives, i.e. they are outlined in several provisions or should be assigned to several environmental objectives. Combating climate change is a major focus for Energie AG Group and so all economic activities that can be attributed to several environmental objectives have been assigned to the environmental objective Climate change mitigation.

KPIs for turnover, CapEx and OpEx in the 2024/25 fiscal year

Turnover – definition

Pursuant to the EU Taxonomy Regulation, sustainable turnover corresponds to the share of net turnover that is generated exclusively by Energie AG Group itself and is associated with Taxonomy-aligned economic activities (numerator), divided by the total net turnover (denominator) in the Group. The consolidated net turnover is defined according to the ‘International Accounting Standard’ (IAS) 1.82(a) – see Notes to the Consolidated Financial Statements, Consolidated Statement of Income.

The majority of Taxonomy-aligned turnover is attributable to economic activity CCM 4.9 Transmission and distribution of electricity in the Grid Segment, followed by CCM 4.5 Hydroelectric power generation in the Energy Segment. In the Environment Segment, the principal contribution stems from CCM 5.5 Collection of non-hazardous waste. In the Czech Republic Segment, CCM 5.1 Operation of water supply systems and CCM 5.3 Operation of wastewater systems account for a significant share of Taxonomy-aligned turnover.

The share of Taxonomy-aligned economic activities in net turnover is 33.4% (previous year: 32.2%), significantly lower than in the CapEx and OpEx key indicators. This is largely due to the fact that net turnover from trading and sales of electricity and gas are not considered under the EU Taxonomy Regulation.

Turnover

Capital expenditure (CapEx) - definition

The CapEx metric corresponds, in the numerator, to the share of Taxonomy-aligned additions to property, plant and equipment and intangible assets that are associated with Taxonomy-aligned economic activities which form part of a plan to increase Taxonomy-aligned economic activities or to convert a Taxonomy-eligible economic activity into a Taxonomy-aligned economic activity (‘CapEx plan’) as well as Taxonomy-aligned single investments. The denominator comprises the Group’s total capital expenditures; see Group Management Report, Assets, liabilities, financial position and profit or loss.

The share of Taxonomy-aligned economic activities in capital expenditure (CapEx) is 85.6% (previous year: 83.7%). The largest share of Taxonomy-aligned CapEx derives from economic activity CCM 4.9. Transmission and distribution of electricity (Grid Segment), followed by economic activities CCM 4.10. Storage of electricity, and CCM 4.5. Electricity generated from hydroelectric power (Energy Segment).

Capital expenditure (CapEx)

A CapEx plan for the next five years was created in accordance with Delegated Regulation (EU) 2021/2178, Annex I, Section 1.1.2.2. The CapEx plan includes two large-scale sustainable projects that are already being implemented and are aimed at expanding Taxonomy-aligned activities of the Group.

Operating expenditure (OpEx) - definition

The OpEx key indicator corresponds in the numerator to the share of Taxonomy-aligned operating expenses that are associated with Taxonomy-aligned economic activities which are part of a plan to expand Taxonomy-aligned economic activities or to convert a Taxonomy-eligible economic activity to a Taxonomy-aligned economic activity (OpEx plan) as well as Taxonomy-aligned operating expenses for individual actions. The total operating expenses of the Group as defined in the EU Taxonomy Regulation are shown in the denominator. Operating expenses essentially comprise expenditure in connection with ongoing maintenance, servicing and repair of intangible assets and property, plant and equipment. Expenditure on research and development (R&D) and expenditure on short-term leases can also be recognised as operating expenses.

The share of Taxonomy-aligned economic activities in operating expenditure (OpEx) is 46.6% (previous year: 46.6%). The largest share of Taxonomy-aligned OpEx derives from the economic activity CCM 4.9. Transmission and distribution of electricity (Grid Segment). Another significant share is CCM 4.5. Electricity generated from hydroelectric power, (Energy Segment) and CCM 5.5. Collection and transportation of non-hazardous waste (Environment Segment).

Operating expenditure (OpEx)

Results of the Taxonomy assessment

In the reporting year, the share of Taxonomy-aligned net turnover increased by 1.2 percent compared with the previous year. This development is primarily attributable to the decline in non-Taxonomy-eligible turnover from electricity and gas trading. Conversely, economic activity CCM 4.9 Transmission and distribution of electricity had a positive impact on Taxonomy-aligned net turnover: higher electricity transmission volumes combined with increased grid tariffs resulted in a corresponding rise in Taxonomy-aligned revenue, thereby strengthening the overall share. Electricity generation from hydroelectric power (CCM 4.5) was lower than in the previous year due to below-average water levels and reduced market prices.

The share of Taxonomy-aligned CapEx increased by 1.9 percentage points year-on-year. This development was driven in particular by investments in electricity grid expansion (CCM 4.9 Transmission and distribution of electricity) and the Ebensee pumped-storage power plant (CCM 4.10 Storage of electricity). In addition, increased investment in the expansion of hydroelectric and photovoltaic installations compared with the previous year further supported the rise in Taxonomy-aligned CapEx.

The share of Taxonomy-aligned OpEx remained broadly in line with the previous year. The main contributions continue to arise from the economic activities CCM 4.9 Transmission and distribution of electricity, CCM 4.5 Hydroelectric power generation and CCM 4.10 Storage of electricity.

The following tables offer a detailed overview of the Taxonomy alignment of individual Taxonomy-eligible economic activities within the Energie AG Group:

Taxonomy disclosures