The European green taxonomy
The European Green Taxonomy is a system for classifying economic activities that have a favourable impact on the environment. Its objective: to direct investment towards “green” activities.
What is the
European Green
Taxonomy?
The European Green Taxonomy is a classification system developed by the European Union. Its methodological framework is designed to identify investments and economic activities that are truly environmentally sustainable.
The aim is to provide a common language that distinguishes projects and activities with a positive impact on the environment, and thus promote sustainable growth.
One of the key aims of the Green Taxonomy is to provide a standard definition of what constitutes a sustainable economic activity.
Green Taxonomy:
what impacts
for Covivio?
Covivio’s activities impacted by the European taxonomy
Covivio is affected by eight of the activities identified for application of the taxonomy with regard to the objectives of climate change mitigation and adaptation, which are the only ones to have been defined by the texts to date.
Construction of new buildings
with a particular focus on sustainable construction methods and the energy efficiency of new buildings (activity 7.1)
Renovation of existing buildings
implementation of renovation projects that improve the energy and environmental performance of existing properties (activity 7.2)
Installation, maintenance and repair of
- equipment promoting energy efficiency(activity 7.3),
- charging stations for electric vehicles (activity 7.4),
- energy performance management instruments and systems (activity 7.5),
- renewable energy technologies (activity 7.6);
Acquisition and ownership of buildings
management of real estate assets that meet strict sustainability criteria (activity 7.7);
Services related to energy performance
offer of specialised services to improve the energy and environmental performance of buildings (activity 9.3).
Environmental labels and sustainable development certifications
The European Green Taxonomy strengthens Covivio’s CSR strategy by providing an additional framework for aligning the Group’s actions with precise environmental objectives.
Covivio is committed to reducing its carbon footprint, in particular through measures aimed at increasing the energy efficiency of its buildings and investing in renewable energies. This includes obtaining environmental certifications for its buildings, testifying to their sustainability and high environmental performance.
New indicators
for Covivio
Covivio is affected by the obligation to disclose the “green” portion of our revenue and our capital expenditure (Capex) each year and we have therefore adapted our indicators to match the Green Taxonomy.
The taxonomy requires the use of 100% gross revenue, calculated in accordance with IFRS. However, in order to allow for more comparable monitoring from year to year and to get closer to the operational reality, Covivio has also established an operational definition of taxonomy indicators. This is based on net rental income attributable to the Group (eligible) and EBITDA for Wellio’s activity and hotels under management (not eligible). The calculation of the alignment rate according to this operational definition uses only eligible activities in the denominator.
Given the small share of Opex fallingwithin the scope of the taxonomy compared to the Group’s total Opex (less than 10%), this indicator is considered non‑material.
98.9%
of revenues eligible
83.6%
of Capex aligned
32.6%
of revenues aligned under mitigation objective (43.6% based on real estate definition)
Focus on the hotel business as part of the objective of protecting and restoring biodiversity and ecosystems
The Delegated Act on the other four environmental objectives, including the protection of biodiversity, was published in June 2023. It introduces the hotel business within the scope of the taxonomy. For Covivio, this means that the revenue generated by its hotels in operation is eligible for the taxonomy. The alignment calculation, required for the 2024 fiscal year, will require compliance with five technical conditions, which themselves include detailed sub-criteria:
Contribution to conservation or restoration activities
Action plan to contribute to nature conservation
Sustainable supply chain and environmental management system
Minimum requirements to qualify the performance
Audit of the above information
In 2023, Covivio initiated the first analysis of these criteria in order to gather information on its Hotel Operating properties from 2024 and be in a position to publish the first information in 2025.
To find out more
Ratings & sustainable finance
Covivio’s sustainable development policy has been recognised regularly by non-financial rating agencies. The success of the Green Bonds issued by the Group also underscores this policy and its results.
