The European green taxonomy

Towards sustainable finance

The European Green Taxonomy is a classification of environmentally sustainable economic activities. Its aim is to focus investments on so-called “green” activities.


Carbon neutrality by 2050

As part of the European Green Deal, the EU has committed to achieving carbon neutrality by 2050. A bold target requiring considerable efforts. The EU taxonomy classifies economic activities with a positive environmental impact in order to encourage private investors to choose these sustainable activities, thereby supporting the transition towards a low-carbon economy.

The European Green Taxonomy focuses on six environmental objectives

To be considered “green”, an activity must make a substantial contribution to at least one of these objectives, while doing no significant harm (DNSH) to the other five and complying with minimum safeguards on social issues and human rights.

Climate change mitigation

Adaptation to climate change

Sustainable use and protection of water and marine resources

Transition to a circular economy

Pollution prevention

Protection and restoration of biodiversity and ecosystems

Impact for Covivio

Covivio activities impacted by EU taxonomy

Covivio is concerned by eight of the activities identified for the application of the taxonomy in terms of its mitigation and adaptation objectives, the only objectives to have been defined by the standards so far.

Those eight activities are:

  • construction of new buildings (activity 7.1),
  • renovation of existing buildings (activity 7.2),
  • installation, maintenance and repair of:
    • energy efficiency equipment (activity 7.3),
    • charging stations for electric vehicles (activity 7.4),
    • instruments and devices for controlling energy performance (activity 7.5),
    • renewable energy technologies (activity 7.6),
  • acquisition and ownership of buildings (activity 7.7),
  • specialised services related to the energy performance of buildings (activity 9.3).

Eligible revenues

Nearly all of Covivio’s eligible revenues are generated by the building acquisition and ownership activity (7.7). Revenues generated by this activity can only be considered green under the climate change mitigation objective.

Substantial contribution criteria to qualify as green revenues under activity 7.7

Top 15% – kWhpe/m2
Energy Performance Certificate
Compliance with “Nearly Zero Energy Building” target – 10% reduction guideline for properties built after 31/12/2020
Thresholds defined by different entities (OID sustainable real estate observatory in France, Deepki elsewhere)A rating (B rating accepted where study shows that A+B < 15%)Country-specific thresholds

Furthermore, buildings with equipment of over 290 kW must contain a BMS (building management system). A life cycle analysis (LCA) and thermal analysis must be carried out for new non-residential buildings during the construction phase.

Green Capex

Unlike revenues, Capex can be considered “green” in terms of either climate change mitigation or adaptation.

Green Capex definition criteria

Green Capex “by nature”Acquisition and construction (all asset-related Capex, regardless of its nature, including developmentsRenovation of existing buildings (additional DNSH principles: water, pollution, circular economy)
MitigationInstallation, maintenance and repair of energy efficiency equipment (in compliance with best practices), charging stations, for electric vehicles, energy performance management devices or renewable energy technologiesTop 15% in terms of energy performance or DPE class A (B tolerated if a study shows that A+B <15%)
NZEB -10% for new buildings (equivalent to RE2020 in France)
30% increase in energy performance
AdaptationInstallation, maintenance and repair of energy efficiency equipment (in compliance with best practices), charging stations, for electric vehicles, energy performance management devices or renewable energy technologiesTop 30% ranking or EPC C rating

NZEB for new buildings
Compliance with thermal regulations for renovations

Covivio indicators
at 31/12/2022

New Covivio indicators

Aware of the yearly requirement to publish the “green” portion of our revenues (turnover) and Capex, we have tailored our indicators to the EU taxonomy.

The taxonomy requires the inclusion of 100% of gross revenues, calculated in accordance with IFRS standards. However, to provide a more accurate year-on-year comparison tailored to our operations, Covivio has also established an operational definition of the taxonomy indicators. This definition is based on net rental income Group share (eligible) and EBITDA from the Wellio and hotel operating property businesses (ineligible). Based on this operational definition, only eligible activities are included in the denominator in order to calculate the alignment ratio.

Since only a small proportion of the Group’s total Opex falls under the taxonomy scope (less than 10%), this item is considered non-material.


of revenues eligible (93% based on operational definition)


of revenues aligned under mitigation objective (31% based on operational definition)


of Capex aligned under mitigation and adaptation objectives