European Union (EU) taxonomy provides a standardised, science-based classification system for identifying environmentally sustainable economic activities. It acts as an important facilitator to support sustainable investment and accelerates the decarbonisation of the European economy, while giving investors security and transparency and supporting companies in planning a roadmap toward net zero emissions.
At Endesa we are fully committed to reporting on the application of the European Union Taxonomy Regulation (article 8 of the regulation and subsequent delegated acts specifying to a greater extent the content, methodology and presentation of information to be disclosed by both non-financial and financial entities).
While the Taxonomy Regulation requires that companies declare compliance with the taxonomy from January 2022, we have already became pioneers in this area and beginning to report on its implementation on the 2021 Capital Market Day.
We also support the different taxonomy thresholds defined on the basis of climate and environmental science, as the overall life cycle intensity limit of 100 g of CO2eq/ kWh to measure the substantial contribution to climate change mitigation established for most power generation technologies, being derived from a robust and scientific analysis process.
However, there are activities which, while not necessarily qualifying for the EU taxonomy, are essential to promoting the well-being of Europeans, especially in the short and medium term, while contributing to the sustainable development of Europe in the long term.
We have deployed a five-step process to analyse the applicability of the EU taxonomy throughout the value chain, within the global Enel process. This process involved relevant functions at the corporate level and all lines of business. These five steps are: