As a property company, we are subject to disclosure requirements on the extent to which our operations are environmentally sustainable according to the EU taxonomy. In 2021, we analysed which economic activities are eligible for the taxonomy and concluded that they were new construction projects, major renovations and the properties under our management.
Also in 2021, we took out our first taxonomy-adapted loan for the Signalen 3 property in Solna. During 2022, we looked at how we comply with the taxonomy in our newly launched major construction projects. We estimate that we are complying with objectives 1, 2, 3 and 6 in the projects we have investigated, but that there is some uncertainty around objectives 4 and 5, partly due to insufficient clarification and interpretation of the criteria, but also because the sector is not sufficiently mature.
Our reporting according to EU Taxonomy Regulation
We carry out both construction (via building contractors) and management of buildings, and the entire business falls within the scope of the taxonomy. The activities in which most of our operations are described are 7.7 Acquisition and ownership of buildings and 7.1 Construction of new buildings, but other activities may also be relevant to a lesser extent.
We demonstrate that we make a substantial contribution to one of the six environmental objectives of the Taxonomy Regulation, objective 1: Climate change mitigation, as this is the objective that is most relevant to our business. The other five environmental objectives come under the Do No Significant Harm criteria (DNSH) for our business. We believe we also meet the taxonomy’s requirements for Minimum Safeguards related to human rights, anti-corruption, transparency regarding tax burdens and fair competition. The requirements of the EU taxonomy are highly consistent with our sustainability work, which is presented in our report. We therefore believe that we satisfy the taxonomy’s requirements; see model below.