6.8
Taxonomy Regulation


Regulation (EU) 2020/852 (the ‘Taxonomy Regulation’) was published in the Official Journal of the European Union on 22 June 2020 and entered into force on 12 July 2020. It aims to define environmentally sustainable activities. The Taxonomy Regulation is a key component of the European Commission's action plan to redirect capital flows towards a more sustainable economy. It represents an important step towards achieving carbon neutrality by 2050 in line with EU goals as the Taxonomy is a classification system for environmentally sustainable economic activities. For 2021, companies are required to report what share of their activities are considered to be 'eligible'. For 2022, companies will also need to report on whether these eligible activities are 'aligned', following a three step approach including technical screening criteria set by the EU Taxonomy. In the following section we present the share of our group turnover, capital expenditure (CapEx) and operating expenditure (OpEx) for the reporting period 2021, which are mainly associated with Taxonomy-eligible economic activities related to the first two environmental objectives (climate change mitigation and climate change adaptation) in accordance with Art. 8 Taxonomy Regulation and Art. 10 (2) of the Art. 8 Delegated Act.

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Definitions

Taxonomy-eligible economic activity means an economic activity that is described in the delegated acts supplementing the Taxonomy Regulation (i.e. the Climate Delegated Act as of now) irrespective of whether that economic activity meets any or all of the technical screening criteria laid down in those delegated acts. Taxonomy-non-eligible economic activity means any economic activity that is not described in the delegated acts supplementing the Taxonomy Regulation. Taxonomy-aligned economic activity means an economic activity that complies with all of the following requirements:

 

 

  • The economic activity contributes substantially to one or more of the environmental objectives.
  • It does not significantly harm any of the environmental objectives.
  • It is carried out in compliance with the minimum safeguards; and
  • It complies with technical screening criteria in the delegated acts supplementing the Taxonomy Regulation (i.e. Climate Delegated Act as of now).

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In the following table we publish the portion of eligible and non-eligible activities for turnover, capital expenditure and operation expenses.

The turnover is included in the income statements, note 7.1. Capital expenditure refer to note 10.1 and note 10.3. The operating expenses represents the proportion of the operating expenditure associate with taxonomy-aligned activities. The operating expenses are included in the consolidated income statement and refer to the personnel expenses, depreciation, amortization and impairment losses, net impairment losses on financial assets, and other operating expenses (note 7.4, note 7.5, note 8.2 and note 7.6).

 

 

 

 

Taxonomy-eligible economic activities

 

Manufacture of low carbon technologies
One of the Taxonomy eligible economic activities is “3.3 Manufacture of low carbon technologies for transport”. The sale of (e-)bikes meets the following screening criterium of this activity:  e) ‘personal mobility devices with a propulsion that comes from the physical activity of the user, from a zero-emissions motor, or a mix of zero-emissions motor and physical activity’. The sale of related parts can be considered an upgrade of the (e-)bikes and as result also meet this screening criterium. The NACE-code which provides the best match for these activities is “C30.9.2 - Manufacture of bicycles and invalid carriages”.

Business activities and external turnover
Our assessment of Taxonomy-eligible activities is focused on economic activities defined as the provision of goods or services on a market, thus (potentially) generating revenues (at the present time or in the future). In this context, we as a (e-)bike manufacturer assess our business by our contribution to provide climate neutral and low carbon mobility and other low carbon technologies. Therefore, the activity “3.3 Manufacture of low carbon technologies for transport” represents our business activities which we evaluate against the Taxonomy Regulation. Underlying activities, such as transportation, operations and investments in manufacturing units, are subsumed under our activities as they are only supporting these. As a result, all OpEx and CapEx related to (e-)bikes and related parts activities are currently classified as tax-eligible economic activity.

 

Taxonomy-non-eligible economic activities

The revenues from our motorcycle business (segment parts) are classified as Taxonomy-non-eligible economic activities, this activity has been sold in March 2021. Overall the non-eligible economic activities are very limited in 2021 and are already sold, so no further actions are required or planned to reduce these activities.