Taxonomy
On 18 June 2020, Regulation 2020/852/EU of the European Parliament and of the Council on the establishment of a framework to facilitate sustainable investment, referred to as the Taxonomy, was enacted. The Taxonomy defines which business activities, if additional criteria, including technical and social, are met, can be considered environmentally friendly. The LOTOS Group is obliged to publish non-financial information under Directive 2014/95/EU (NFRD) and must also disclose in its statement on this topic how and to what extent its activities are related to business activities that qualify as environmentally sustainable. The scope of responsibilities in this regard will gradually increase starting with the 2021 reports. The Taxonomy is complemented by the provisions of Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021, which clarify the content and presentation rules for information on environmentally sustainable economic activities disclosed under the provisions of the Taxonomy, and Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 which establish technical eligibility criteria for determining the conditions under which an economic activity qualifies as making a significant contribution to climate change mitigation or adaptation, and whether that economic activity does not cause serious harm to any other environmental objective.
In fulfilling the requirements for this Statement, Grupa LOTOS has identified its business activities that are eligible as environmentally sustainable.
In the next step, it analyzed:
- the percentage of turnover derived from products and services related to these activities in the total turnover of Grupa LOTOS,
- the percentage of capital expenditures and operating expenditures of the Group corresponding to the assets or processes related to the said activities
Capital expenditures (CapEx) qualified according to the EU Taxonomy for 2021
DNSH criteria
| Economic activities | Code or codes | Climate change mitigation | Climate change adaptation | Climate change mitigation | Climate change adaptation | Water and marine resources | Circular economy | Pollution | Biodiversity and ecosystems | CapEx absolute value | CapEx share in 2021 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Satisfies / Does not satisfy | Yes / No (Y/N) | PLN milion | % | ||||||||
| A.1. Types of environmentally sustainable activities (consistent with the taxonomy and meeting minimum guarantees) | |||||||||||
| Rail transport | H49.20 N77.39 |
Satisfies in respect of the transport of goods other than petroleum products | Does not satisfy | T | T | T | T | T | 74.0 | 7.2% | |
| PURE H2 | H49.50 C20.11 |
Satisfies | Satisfies | T | T | T | T | 5.2 | 0.5% | ||
| Hydrogen Recovery Unit | H49.50 H52.21 H52.24 H52.29 M71.12 M72.19 |
Satisfies | Satisfies | T | T | T | T | 2.3 | 0.2% | ||
| VETNI | M71.12 M72.19 |
Satisfies | Satisfies | T | T | T | T | 0.06 | 0.001% | ||
| Pumping of CO2 into the Sleipner deposit | F42.21 H49.50 E39.00 |
Satisfies | Satisfies | T | T | T | T | 0 | 0 | ||
| Total CapEx from environmentally sustainable activities (consistent with the taxonomy) (A.1) | 81.56 | 7.9% | |||||||||
| Other capital expenditures (CapEx) | 966.3 | 92.1% | |||||||||
Operating expenditures (OpEx) qualified according to the EU Taxonomy for 2021
DNSH criteria
| Economic activities | Code or codes | Climate change mitigation | Climate change adaptation | Climate change mitigation | Climate change adaptation | Water and marine resources | Circular economy | Pollution | Biodiversity and ecosystems | OpEx absolute value | OpEx share in 2021 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Satisfies / Does not satisfy | Yes / No (Y/N) | PLN milion | % | ||||||||
| A.1. Types of environmentally sustainable activities (consistent with the taxonomy and meeting minimum guarantees) | |||||||||||
| Rail transport | H49.20 N77.39 |
Satisfies in respect of the transport of goods other than petroleum products | Does not satisfy | T | T | T | T | T | 10.5 | 0% | |
| Total OpEx from environmentally sustainable activities | 10.5 | 0% | |||||||||
| Other operating expenditures (OpEx) | 28,773.6 | 100% | |||||||||
Percentage of turnover qualified according to the EU Taxonomy for 2021
DNSH criteria
| Economic activities | Code or codes | Climate change mitigation | Climate change adaptation | Climate change mitigation | Climate change adaptation | Water and marine resources | Circular economy | Pollution | Biodiversity and ecosystems | Turnover absolute value | Turnover share in 2021 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Satisfies / Does not satisfy | Yes / No (Y/N) | PLN milion | % | ||||||||
| A.1. Types of environmentally sustainable activities (consistent with the taxonomy and meeting minimum guarantees) | |||||||||||
| Rail transport | H49.20 N77.39 |
Satisfies in respect of the transport of goods other than petroleum products | Does not satisfy | T | T | T | T | T | 87.7 | 0% | |
| Turnover from environmentally sustainable activities | 87.7 | 0% | |||||||||
| Turnover from other activities | 33,035.9 | 99% | |||||||||
In 2021, 7.9% (PLN 81.6 million) of the LOTOS Group’s capital expenditures were environmentally sustainable and no more than 0.04% (PLN 10.5 million) of the corresponding operating costs were recognized. Revenue from activities eligible for the EU classification of sustainable economic activities accounted for 0.3% (PLN 88 million) of the Group’s total turnover in 2021. These indicators were calculated excluding mainly those parts of Taxonomy-eligible activities that were related to the extraction, storage, transportation or production of fossil fuels.
