The European Green Taxonomy Directive, also referred to as Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020, is the EU-wide classification system designed to identify sustainable economic activities.
It establishes reporting obligations for certain companies, which consist of:
• Determining whether a company’s activities contribute to one of the six environmental objectives defined by the European Union:
– Climate change mitigation
– Climate change adaptation
– Sustainable use and protection of water and marine resources
– Transition to a circular economy
– Pollution prevention and control
– Protection of biodiversity and ecosystems
• Reporting the ecological contribution of a portfolio of projects in financial terms in order to facilitate investment decisions.
Alignment with the European Green Taxonomy is mandatory for companies subject to the Corporate Sustainability Reporting Directive (CSRD). Due to the Omnibus package, which revises the scope of companies required to comply with the CSRD, Amarenco is not subject to the CSRD and is therefore not obligated to align with the Taxonomy. Nevertheless, the company voluntarily anticipates this requirement as part of its ESG strategy aligned with its 2030–2050 vision. Amarenco internally reports on activities considered sustainable or contributing to the ecological transition, in line with the EU’s Green Taxonomy criteria.
All of Amarenco’s activities are aligned with the European Green Taxonomy (not verified by an independent third party). They fall into three categories:
– Installation, maintenance, and repair of renewable energy technologies (Annex 1, Article 7.6 of Delegated Regulation (EU) 2021/2139)
– Electricity generation from solar photovoltaic technology (Annex 1, Article 4.1, ibid.)
– Electricity storage (Annex 1, Article 4.10, op. cit.)
% of revenue eligible under the Taxonomy: 100%
Alignment with the Taxonomy: Yes
% of revenue aligned with the Taxonomy: 100%
% of CAPEX aligned with the Taxonomy: 100%
% of OPEX aligned with the Taxonomy: 100%
Compliance with the European Green Taxonomy also requires adherence to the Do No Significant Harm (DNSH) principle, which ensures that no significant harm is caused to any of the six EU environmental objectives. This principle is embedded in the ESG criteria applied by Amarenco’s Investment Committee, with a minimum score required for project validation. This ensures that Amarenco’s sites are designed to be resilient to future climate risks and do not exacerbate environmental risks for local communities.
To uphold the DNSH principle, Amarenco has implemented several measures:
Further details on Amarenco’s contribution to EU environmental objectives can be found on the company’s website dedicated to its regenerative approach.
Finally, the Green Taxonomy requires compliance with minimum social safeguards, ensured through the integration of the following international standards: ILO conventions, OECD Guidelines for Multinational Enterprises, and the UN Guiding Principles on Business and Human Rights. These principles are incorporated into Amarenco’s Internal Code of Conduct, ESG QHSE Policy, and the ethical clauses of supplier and subcontractor contracts. Tools are also in place to assess and ensure compliance with these minimum safeguards. (For further details, see Supply Chain and Social sections).