The New Disclosure Landscape - Unsung cornerstone of ESG disclosures: The evolving role of EU Taxonomy reporting

of the diverging percentages across European countries and the • The reason why eligible CapEx keeps being the highest figure (39%) inherent nature of the type of companies included in the sample. [...] Nevertheless, as and clarified in publications by the European Commission and confirmed • Smaller rounding errors in the published numbers, as in some cases, implemented by the common practice of the majority of the sample, we believe that the percentages of categories A1, A2, and B within the tables do not CapEx and OpEx reporting should occur independently of Turnover add up to 100 percent. [...] As stated by the Taxonomy and its THE NEW DISCLOSURE LANDSCAPE Unsung cornerstone of ESG disclosures: The evolving role of EU Taxonomy reporting PART ONE: MIXED BAG - INSIGHTS IN 2022 TAXONOMY RESULTS 25 Looking ahead OUTLOOK - Future developments of the • While it is representative of the current scope of Taxonomy alignment reporting, which is limited to the EU Taxonomy climate change mitigation. [...] This is because several activities in the HOW WILL THE Utilities industry are well in scope of the EU Taxonomy INTRODUCTION OF As we mentioned, the Environmental Delegated Act will introduce a range of new under the section “Energy” of the Climate Delegated Act THE ENVIRONMENTAL eligible activities. [...] This category covers the This often results in the need for ad hoc, manual calculations of the purchase of assets or services from third parties, and it can be indicator, resulting in a high effort compared to the actual materiality challenging to obtain all the information necessary to assess the of the indicator (several companies use the materiality-based alignment of the asset or service.