74% of SUEZ's 2020 revenue is considered "sustainable" by EU taxonomy
One year ahead of its EU commitment SUEZ announces that 74% of its 2020 revenue qualifies under the EU taxonomy reference framework for sustainable business activities. In 2019, the European Commission set up a reference framework for all companies to assess their contribution to the preservation of the environment and the fight against climate change.
This high percentage serves as further evidence of SUEZ's strong ESG profile for investors seeking to invest in sustainable business activities. Indeed, almost three-quarters of the Group's business activities are identified by this European regulation as contributing to the preservation of the environment and the fight against climate change.
As part of the SUEZ 2030 strategic plan, the Group anticipates that 100% of its solutions will be sustainable1 by 2030. Currently, SUEZ is the only French company working exclusively on essential environmental services
This high share of revenue highlights the coherence between the SUEZ 2030 strategic plan, which focuses on preserving natural capital and combatting global change, and the objectives that the European Commission aims to achieve through investment in order to meet the targets of the Paris Agreement and achieve carbon neutrality. The Group will also complement its non-financial communication by incorporating the SASB and TCFD reference frameworks into its 2020 Non-Financial Performance Statement to meet the expectations expressed by the financial community.
The methodology developed by SUEZ identifies 2020 revenue from business activities eligible for climate change mitigation and activities contributing to the five other objectives of the European taxonomy (climate change adaptation, the sustainable use and protection of water and marine resources, the transition to a circular economy, pollution prevention and reduction, the protection and restoration of biodiversity and ecosystems) for which alignment criteria are expected to be published in 20212.
The analysis of SUEZ 2020 revenue in light of the reference framework published by the European authorities shows that:
- Qualifying business activities for the six European Green Taxonomy objectives represent 74% of the SUEZ Group's 2020 revenues selected for this analysis3;
- 18% of revenues covers other business activities that align with the value proposition of the SUEZ 2030 plan—to have a positive impact on health, quality of life, the environment and climate—and that correspond or contribute to the European Green Taxonomy reference framework in a manner not currently defined in the European reference framework on the date of consolidation of the financial statements;
- Finally, the business activities not included in the Taxonomy reference framework by the European Commission account for 8% of revenues. However, the Group considers that these business activities play an active role in preventing pollution that affects the environment and human health.
The report drawn up to explain the method used by the Group and the classification of its business activities is available on the SUEZ website.
The European Commission's commitment to identifying companies that contribute toward environment and climate protection is of the utmost importance, which is why we expedited the revenue analysis target set by the European reference framework by a year. As such, we can report "green" revenues of almost 75%. This figure strengthens our resolve to achieve the goals set out in the SUEZ 2030 strategic plan, which require strengthened expertise in sustainable development to ensure that 100% of our solutions are sustainable by 2030. Our proactive approach to adopting the European taxonomy is clear evidence of the pioneering role that we play in this area and we plan to continue this work in order to increase this part of our revenue in the years to come. Our success serves as a signal to all of our stakeholders, especially at a time when our shareholders and investors are looking for a company at the forefront of responsible investment.
Bertrand Camus , Chief Executive Officer of SUEZ
1 SUEZ sustainable solutions have a positive impact on the environment, biodiversity, or the climate
2 This first evaluation of the qualification and eligibility of SUEZ business activities has been conducted on the basis of the Taxonomy Regulation and delegated acts (Annex I) available on the revenue consolidation date of FY 2020, through a methodological approach comprising a detailed analysis of the business activities of the Group, based on processes, existing reporting systems and hypotheses formulated with management. Combined, they comprise a method for which the significant elements—hypotheses and interpretations, methodological definitions and limitations—are described in the note on methodology of the corresponding report. The Group will revise this methodology and figures on the basis of changes to regulations and in particular with the publication of the delegated acts in 2021.
3 The revenue considered for this analysis corresponds to the SUEZ Group's consolidated revenue for 2020 as adjusted for assets held for sale.