EU taxonomy reporting continued

Feb 17, 2023

In 2022, Valmet continued to develop its processes related to the EU Taxonomy, a classification system for determining environmentally sustainable activities, applying since January 2022.

The EU taxonomy currently covers the economic activities of 40 percent of listed companies in some of the most high-emitting sectors in Europe, and in the coming years, the taxonomy will evolve to include more economic activities from other sectors. Valmet supports the overall aim of directing finance into sustainable activities, whose classification and criteria is based on science, and that respect the principles of technology neutrality and transparency. The use of the classification criteria should not be broadened into areas where it is not intended.

With the guidance available in 2021 we started our taxonomy mapping by identifying the taxonomy eligible offering and reporting on the identified taxonomy eligible activities related to climate change mitigation. In 2022 the EU published clarifying guidance in multiple FAQ-documents and the complementary delegated regulation regarding Natural Gas and Nuclear Act. Based on the clarified guidance Valmet has reassessed its eligibility, resulting in significant decrease of the eligibility, compared to 2021. However, most of eligible activities also meet the technical criteria resulting in high alignment of eligible activities.

It is expected that the EU taxonomy’s remaining environmental objectives, and activities related to them, will increase the eligibility of Valmet once the related Delegated Act is published and reported. Currently, Valmet's taxonomy-eligible and -aligned economic activities are conducted predominantly in the energy segments while other core businesses, consisting of mainly process technology and automation solutions and services for the pulp and paper sector, are currently not described in the Taxonomy Regulation. We continue to develop taxonomy-related reporting and comply with new guidance when it is published by the EU.

In 2022, we reassessed eligibility of our offering of process technologies, automation, and services, continued our systematic work to prepare the year end reporting on Valmet’s taxonomy alignment, developed reporting processes, and integrated acquired businesses in the reporting scope. Valmet’s full taxonomy report can be found in the Report of the Board of Directors under the section for Disclosure of non-financial information.