Arendals Fossekompani is proud to report on EU Taxonomy alignment
Arendals Fossekompani is a proud builder and supporter of technology that impacts the world. Our investments should show a potential to contribute to, or to be transformed to contribute to, one of the six environmental objectives defined by the EU Taxonomy.
Arendals Fossekompani performed an initial assessment of the EU Taxonomy in 2021, which provided an indication of eligibility of the portfolio. In 2021, eligible revenue for the Arendals Fossekompani Group was 65%.
In 2022, we expanded our assessment to cover alignment. Each portfolio company has identified their core activities by assessing the financial materiality and strategic relevance of their economic activities. Activities not assessed as core to the portfolio companies, have been scoped out from reporting for 2022. In addition to the adopted Climate Delegated Act, we assessed the activities proposed by the Platform on Sustainable Finance. Since the technical screening criteria for the four remaining environmental objectives have not been adopted by the EU, the reporting on these activities is limited to eligibility, pending finalization of the criteria.
All of Arendals Fossekompanies portfolio companies have eligible activities covered by the EU taxonomy, enabling the green transition. In 2022, eligible turnover for Arendals Fossekompani Group was 58%, of which 22% was aligned. Our portfolio addresses three environmental objectives in particular; climate change and mitigation, climate change and adaptation, and transition to a circular economy.
Due to sector-specific requirements not yet implemented in Norway, and lack of regulatory guidance, some economic activities are not fully assessed for alignment. We also expect the technical screening criteria for the four remaining environmental objectives to be adopted by the EU in 2023, in which case we will perform alignment assessments on these activities.
«Arendals Fossekompani is committed to improving our sustainability performance and further reducing the impact we have on our planet. Given the high percentage of eligible activities, we see a great potential within our portfolio companies’ business activities. Our goal is to increase both eligible and aligned reporting in years to come,» says Ingunn Ettestøl, Chief Sustainability Officer.