An error occured when trying to show the publication. Please check if JavaScript is enabled or try to update your browser.

The aim of the EU Taxonomy is to provide companies, investors and policymakers with clear definitions of economic activities which can be considered as environmentally sustainable. This provides clarity and security for investors, helps companies to become more climate-friendly, mitigates market fragmentation and helps to shift investments where they are most needed.

The Taxonomy Regulation came into force July 12, 2020. It sets out the conditions an economic activity must meet to qualify as environmentally sustainable. The regulation establishes six environmental objectives: Climate change mitigation; Climate change adaptation; The sustainable use and protection of water and marine resources;

The transition to a circular economy; Pollution prevention and control; and The protection and restoration of biodiversity and ecosystems.

The first delegated act concerning the technical screening criteria for economic activities with significant contribution to climate change mitigation and adaptation (the ‘Climate Delegated Act’) was published in the EU Official Journal in December 2021. In accordance with Article 8 of the Taxonomy Regulation and Article 10-(2) of the Article 8 Delegated Act, we set forth in this section the share of our Group’s revenue, capital expenditure (“CAPEX”) and operating expenditure (“OPEX”) for the reporting period 2022, which are associated with Taxonomy-eligible economic activities defined in the first delegated act concerning the first two environmental objectives (climate change mitigation and climate change adaptation) adopted on 4 June 2021 (the “Climate Delegated Act”). The reporting requirements for 2022 are extended to the disclosure of Taxonomy-aligned economic activities, i.e. sustainable activities, according the aforementioned Climate Delegated Act. The evaluation of the alignment has been performed by identifying our activities or CAPEX covered by the Climate Delegated Act and assessing their alignment to technical criteria (substantial contribution criteria), their compliance with the "Do No Significant Harm" principle and the minimum safeguards.

SUMMARY

Based on an exhaustive analysis performed during 2022, and given our position in the value chain, our revenue is Taxonomy-non-eligible because our activities are not covered by the Climate Delegated Act to date and therefore, the capital and operating expenditures related to our activities are also Taxonomy-non-eligible.

However, the CAPEX to be reported also include those that are related to the purchase of output from Taxonomy-aligned economic activities (such as some real estate activities) and enable us to consider a part of our leasing of buildings, our leasing of passenger cars and our investments related to the replacement of energy efficient equipment as Taxonomy-aligned. Regarding our total OPEX that comply with the EU Taxonomy, they are non-significant in comparison with our total consolidated operating expenses and we chose to use the materiality exemption option offered by the regulation. Consequently, the indicators related to our revenue and our OPEX are not disclosed, we only report the following indicator related to our CAPEX:

Capital expenditures (CAPEX)

Proportion of Taxonomy – Eligible economic activities (in %) 48%

Proportion of Taxonomy – Aligned economic activities (in %) 8%

OUR ASSESSMENT

Revenue - Core business activities As a leading Engineering and Technology company for the energy transition, we are contributing to the reduction of the energy industry’s environmental footprint by making available to our clients the most efficient technologies and by reducing the impact of the activities we are conducting. We are developing solutions in hydrogen, offshore wind farms, ethylene, sustainable chemistry including biofuels and biochemicals, decarbonization projects including low-carbon hydrogen and carbon capture utilization and storage as well as carbon-free energy (see more in Technip Energies 2022 Annual Report, section 1.5 Our Markets - from traditional to emerging). Taking the entire value chain into consideration, we expect to contribute substantially to the energy transition and GHG emission reductions in other sectors, as disclosed in Technip Energies 2022 Annual Report, section 1.5 Our Markets - from traditional to emerging. We are an enabler of technologies that aim to reduce GHG emissions significantly.

Based on the current application of the eligibility criteria, wind power, bioenergies (biogas, biofuels and bioliquids), ethylene, hydrogen and storage of CO2 are broadly listed in Annex I to the Climate Delegated Act, notably through the activities

EU Green Taxonomy Our ESG Roadmap has been published in March 2022 and is deployed in a context where national governments and international bodies are implementing new policies to address the effects of a rapidly changing environment. The Taxonomy Regulation (the “EU Taxonomy”) is a key component of the European Commission’s action plan to redirect capital flows towards a more sustainable economy. It consists in a classification system that establishes a list of environmentally sustainable economic activities.

“3.14. Manufacture of organic basic chemicals”, “3.2. Manufacture of equipment for the production and use of hydrogen”, “4.13. Manufacture of biogas and biofuels for use in transport and of bioliquids”, “4.3. Electricity generation from wind power”, “5.11. Transport of CO2” and “5.12. Underground permanent geological storage of CO2”. Under these activities, the EU Taxonomy targets the manufacture of products and technologies or the operation of the facilities but not the engineering and construction of the facilities. Therefore, though our activities are not eligible to the EU Taxonomy, we nevertheless contribute as an engineering and technology company to the energy transition and enable our clients to be more sustainable. As Technip Energies, we do operate upstream in the value chain of Green Taxonomy activities. That does not exclude that in the future, new projects type coming from our customers, would lead to new eligible activities for Technip Energies.

In the complementary Climate Delegated Act, the Commission has included certain gas activities, notably through the activities “4.29 Electricity generation from fossil gaseous fuels”, “4.3 High- efficiency co-generation of heat/cool and power from fossil gaseous fuels” and “4.31 Production of heat/cool from fossil gaseous fuels in efficient district heating and cooling system”. Under these activities the EU Taxonomy targets the gas energy activities as transitional activities, subject to specific conditions which recognize the role gas can play to help some regions in their transition from the most polluting solid fossil fuel energy sources, such as coal, to renewable energy. Therefore, even though Technip Energies provides low-carbon capital expenditure solutions to the gas industry, our revenues are not eligible due to our position in the value chain. The gas-eligible activities are restricted to the construction or operation for electricity generation or production of heat/cool using fossil gaseous fuel. Therefore, according to the Climate Delegated Act, we did not identify any Taxonomy-eligible or Taxonomy-aligned economic activities among those contributing to our 2022 annual consolidated revenue.

Capital expenditures (CAPEX) The CAPEX KPI is defined as Taxonomy-eligible CAPEX (numerator) divided by our total CAPEX (denominator). Total consolidated CAPEX (denominator) consists of additions to tangible and intangible fixed assets during the financial year, before depreciation, amortization and any re-measurements, including those resulting from revaluations and impairments, as well as excluding changes in fair value. It includes additions to fixed assets (IAS 16), intangible assets (IAS 38) and right-of-use assets (IFRS 16). Additions resulting from business combinations are also included. Goodwill is not included in CAPEX as it is not defined as an intangible asset in accordance with IAS 38. For further details on our accounting policies regarding our CAPEX, refer to section 8.1.6. Notes to consolidated financial statements of our 2022 Annual Financial Report. Purchase of output from Taxonomy-eligible and Taxonomy-aligned economic activities and individual measures enabling certain target activities to become low-carbon or to lead to greenhouse gas reductions can be taken into account (section 1.1.2.2. (c) of Annex I to the Article 8 Delegated Act). We have identified the following economic activities in the Climate Delegated Act resulting in CAPEX which can be considered as individually Taxonomy-eligible and/or Taxonomy-aligned. These

CAPEX concern purchases of output related to taxonomy-eligible and aligned economic activities: refer to the CAPEX table presented in pages 100 and 101.

In 2022, our Taxonomy-aligned CAPEX mainly comprised the increase in right-of-use related to the annual rent indexation of our "Origine" Headquarters located in Nanterre, France, representing more than 87% of our Taxonomy-aligned CAPEX. We have performed the analysis of the alignment and assessed that our headquarters complies with the technical screening criteria, this alignment has been confirmed by the lessor. In a lesser extent, our Taxonomy-aligned CAPEX also comprised the increase in right-of-use related to our leasing of passenger cars, our investments in replacement of energy-efficient equipment, our installation of charging stations for electric vehicles and our installation of solar photovoltaic systems (including installation under construction).

Our Taxonomy-eligible (but non-aligned) CAPEX comprised: renting and leasing of vehicles, including extensions of existing lease contracts, independently of their emissions of CO2 in relation with the activity “6.5. Acquisition and ownership of buildings” of the Taxonomy regulation;

acquisitions of buildings, including extensions of existing lease contracts, independently of their use or energy efficiency in relation with the activity “7.7. Acquisition and ownership of buildings” of the Taxonomy regulation;

acquisitions of infrastructure for data processing services, hosting, and related activities, including lease contracts in relation with the activity “8.1. Data processing, hosting and related activities” of the Taxonomy regulation;

acquisitions of data-driven solutions for GHG emissions reductions, including CAPEX under construction in relation with the activity “8.2. Data-driven solutions for GHG emissions reductions” of the Taxonomy regulation;

research and development solution for the electricity generation from wind power in relation with the activity “9.1. Close to market research, development and innovation” of the Taxonomy regulation.

Operating expenses (OPEX) The EU Taxonomy defines operating expenses (OPEX) as direct non-capitalized costs that relate to research and development, building renovation measures, short-term leases, maintenance and repair, and any other direct expenditures relating to the day-to- day servicing of assets of property, plants and equipment by the undertaking or third party to whom activities are outsourced that are necessary to ensure the continued and effective functioning of such assets. Due to our economic activities and our economic model, our operating expenses consist primarily of cost of sales, representing more than 94% of the total consolidated OPEX in 2022 (refer to section 8.1.1. Consolidated statement of income of our 2022 Annual Financial Report). Consequently, our total operating expenses that comply with the EU Taxonomy (denominator), as detailed above, represents for the 2022 financial year around €90 million and 1.6% of our total consolidated operating expenses. We therefore chose to use the materiality exemption offered by the Regulation, and not to compute this indicator numerator which is considered as being equal to zero.

VERT BLEUROUGE

30-34 Rue du Chemin Vert 75011 Paris +33 (0)1 85 56 97 00 www.carrenoir.com

Ce fichier est un document d’exécution créé sur Illustrator version 2020.

0 1 2

TECHNIQUE

CUTTER

ÉCHELLE 1/1

TONSRECOMMANDÉS (3)

R=96 V=166 B=226 1

R=128 V=199 B=160

R=0 V=112 B=239

TONSCOMPOSÉS

TECHNIPENERGIES TEC_20_13782_Earth_RVB JFB

Date : 06/02/2020

1 2 3

4 5 6

Impact Book

Technip Energies Sustainability Report 2022 . 9998 . Impact Book

Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022Technip Energies Sustainability Report 2022
Powered by Fluidbook