What changed, Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 supplementing Regulation (EU) 2020/852

+ (7) ‘asset manager’ meansan undertaking that is subject to the disclosure obligations laid down in Articles 19a and 29a of Directive 2013/34/EU and is either of the following: (a) an AIFM as defined in Article 4(1), point (b), of Directive 2011/61/EU of the European Parliament and of the Council (1)…
− (7) ‘asset manager’ meansan undertaking that is subject to the disclosure obligations laid down in Articles 19a and 29a of Directive 2013/34/EU and is either of the following: (a) an AIFM as defined in Article 4(1), point (b), of Directive 2011/61/EU of the European Parliament and of the Council; (b…
+ (8) ‘financial undertaking’ means an undertaking that is subject to the disclosure obligations laid down in Articles 19a and 29a of Directive 2013/34/EU and is an asset manager, a credit institution as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 of the European Parliament and …
− (8) ‘financial undertaking’ means an undertaking that is subject to the disclosure obligations laid down in Articles 19a and 29a of Directive 2013/34/EU and is an asset manager, a credit institution as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 of the European Parliament and …
+ **1a.** By way of derogation from paragraph 1, for the turnover KPI referred to in Section 1.1.1 of Annex I to this Regulation, non-financial undertakings may omit assessing whether some of their economic activities are taxonomy-eligible or taxonomy-aligned where the cumulative turnover resulting fr…
+ 
+ **1b.** By way of derogation from paragraph 1, for the CapEx KPI referred to in Section 1.1.2 of Annex I to this Regulation, non-financial undertakings may omit assessing whether some of their economic activities are taxonomy-eligible or taxonomy-aligned where the cumulative capital expenditure rela…
+ 
+ **1c.** By way of derogation from paragraph 1, for the OpEx KPI referred to in Section 1.1.3 of Annex I to this Regulation, where the operational expenditure is not material for the business model of non-financial undertakings, those undertakings may omit assessing whether operational expenditure re…
+ 
+ Where the operational expenditure is in principle material for the business model of non-financial undertakings, those non-financial undertakings may omit assessing whether some of their economic activities are taxonomy-eligible or taxonomy-aligned where the cumulative operational expenditure relate…
+ 
+ **1d.** The turnover, capital expenditure and operational expenditure related to the activities to which paragraphs 1a to 1c are applied shall be reported separately as non-material turnover, capital expenditure or operational expenditure.
+ 
+ **1a.** By way of derogation from paragraph 1, asset managers may omit assessing whether the assets under management whose use of proceeds is known are taxonomy-eligible or taxonomy-aligned where the cumulative value of those assets is below 10 % of all assets under management whose use of proceeds …
+ 
+ The assets to which the first subparagraph is applied shall be reported separately as non-material assets.
+ 
+ **1a.** By way of derogation from paragraph 1, credit institutions may omit assessing whether the on-balance sheet assets whose use of proceeds is known are taxonomy-eligible or taxonomy-aligned where the cumulative value of those assets is below 10 % of all on-balance sheet assets whose use of proc…
+ 
+ The assets to which the first subparagraph is applied shall be reported separately as non-material assets.
+ 
+ **1b.** By way of derogation from paragraph 1, credit institutions may omit assessing whether the financial guarantees supporting loans and advances or debt securities whose use of proceeds is known are taxonomy-eligible or taxonomy-aligned where the cumulative value of those financial guarantees is…
+ 
+ The financial guarantees to which the first subparagraph is applied shall be reported separately as non-material financial guarantees.
+ 
+ **1c.** By way of derogation from paragraph 1, credit institutions may omit assessing whether assets under management whose use of proceeds is known are taxonomy-eligible or taxonomy-aligned where the cumulative value of the assets under management is below 10 % of all assets under management whose …
+ 
+ The assets under management to which the first subparagraph is applied shall be reported separately as non-material assets under management.
− **2.** The information referred to in paragraph 1 shall be presented in tabular form by using the template set out in Annex VI to this Regulation.
+ **1d.** By way of derogation from paragraph 1, credit institutions may omit assessing whether the fees and commission income related to specific economic activities are taxonomy-eligible or taxonomy-aligned where the cumulative value of that income is below 10 % of the value of all fees and commissi…
+ 
+ The fees and commission income to which the first subparagraph is applied shall be reported separately as non-material fees and commissions.
− ### Article 5 — Disclosures by investment firms
+ **1e.** By way of derogation from paragraph 1, credit institutions may omit assessing whether financial assets whose use of proceeds is known held for trading are taxonomy-eligible or taxonomy-aligned where the cumulative value of those assets is below 10 % of all financial assets held for trading w…
− **1.** Investment firms shall disclose the information referred to in Article 8(1) of Regulation (EU) 2020/852 as specified in Annexes VII and XI to this Regulation.
+ The financial assets to which the first subparagraph is applied shall be reported separately as non-material assets.
− **2.** The information referred to in paragraph 1 shall be presented in tabular form by using the template set out in Annex VIII to this Regulation.
+ **1f.** By way of derogation from paragraph 1, a credit institution may omit reporting the KPIs referred to in Annex V where the cumulative value of the net turnover generated by the activities covered by those KPIs is below 10 % of the total net turnover of that credit institution.
− ### Article 6 — Disclosures by insurance and reinsurance undertakings
+ **2.** The information referred to in paragraph 1 shall be presented in tabular form by using the template set out in Annex VI to this Regulation.
− **1.** Insurance and reinsurance shall disclose the information referred to in Article 8(1) of Regulation (EU) 2020/852 as specified in Annexes IX and XI to this Regulation.
+ ### Article 5 — Disclosures by investment firms
− **2.** The information referred to in paragraph 1 shall be presented in tabular form by using the templates set out in Annex X to this Regulation.
+ **1.** Investment firms shall disclose the information referred to in Article 8(1) of Regulation (EU) 2020/852 as specified in Annexes VII and XI to this Regulation.
− ### Article 7 — Disclosure rules common to all financial undertakings
+ **1a.** By way of derogation from paragraph 1, investment firms dealing on their own account may omit assessing whether the assets whose use of proceeds is known are taxonomy-eligible or taxonomy-aligned where the cumulative value of those assets is below 10 % of all assets whose use of proceeds is …
− **1.** The exposures to central governments, central banks and supranational issuers shall be excluded from the calculation of the numerator and denominator of key performance indicators of financial undertakings.
+ The assets to which the first subparagraph is applied shall be reported separately as non-material assets.
− **2.** Derivatives shall be excluded from the numerator of key performance indicators of financial undertakings.
+ **1b.** By way of derogation from paragraph 1, investment firms not dealing on their own account may omit assessing whether the revenue from investment services and activities, other than dealing on their own account, relating to specific economic activities are taxonomy-eligible or taxonomy-aligned…
− **3.** Exposures to undertakings that are not obliged to publish non-financial information pursuant to Article 19a or 29a of Directive 2013/34/EU shall be excluded from the numerator of key performance indicators of financial undertakings.
+ The revenue to which the first subparagraph is applied shall be reported separately as non-material revenue.
− **4.** Without prejudice to paragraph 1, environmentally sustainable bonds or debt securities with the purpose of financing specific identified activities that are issued by an investee undertaking shall be included in the numerator of key performance indicators up to the full value of Taxonomy-alig…
+ **2.** The information referred to in paragraph 1 shall be presented in tabular form by using the template set out in Annex VIII to this Regulation.
− Exposures whose purpose is not to finance specific identified activities shall be included in the numerator weighted by the turnover KPI and CapEx KPI of the issuer in accordance with the methodology laid down in Annexes III, V, VII, and IX.
+ ### Article 6 — Disclosures by insurance and reinsurance undertakings
− Where an investee undertaking has issued the environmentally sustainable bonds or debt securities with the purpose of financing specific identified activities, financial undertakings shall discount the KPI of the investee undertaking accordingly to avoid double counting.
+ **1.** Insurance and reinsurance shall disclose the information referred to in Article 8(1) of Regulation (EU) 2020/852 as specified in Annexes IX and XI to this Regulation.
− **5.** Where the technical screening criteria laid down in the delegated acts adopted pursuant to Articles 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) of Regulation (EU) 2020/852 are amended, special purpose loans and the instruments referred to paragraph 4 held by financial undertakings that finance…
+ **1a.** By way of derogation from paragraph 1, non-life insurance or reinsurance undertakings may omit assessing whether the gross premiums written, non-life insurance revenue or, as applicable, reinsurance revenue are taxonomy-eligible or taxonomy-aligned where the cumulative revenue of those gross…
− **6.** Financial undertakings shall provide for a breakdown in the numerator where applicable and denominator of the key performance indicators for:
+ The gross premiums written or revenue to which the first subparagraph is applied shall be reported separately as non-material gross premiums written or non-material revenue.
− (a) exposures to and investments in non-financial undertakings;
+ **1b.** By way of derogation from paragraph 1, insurance or reinsurance undertakings may omit assessing whether the assets whose use of proceeds is known are taxonomy-eligible or taxonomy-aligned where the cumulative value of those assets is below 10 % of all assets whose use of proceeds is known th…
− (b) exposures to and investments in financial undertakings;
+ The assets to which the first subparagraph is applied shall be reported separately as non-material assets.
− (c) exposures to and investments in non-financial undertakings established in the Union that are not subject to an obligation to publish a non-financial statement pursuant to Articles 19a and 29a of Directive 2013/34/EU;
+ **2.** The information referred to in paragraph 1 shall be presented in tabular form by using the templates set out in Annex X to this Regulation.
− (d) exposures to and investments in financial undertakings established in the Union that are not subject to an obligation to publish a non-financial statement pursuant to Articles 19a and 29a of Directive 2013/34/EU referred to in paragraph 2;
+ ### Article 7 — Disclosure rules common to all financial undertakings
− (e) exposures to and investments in non-financial undertakings established in a third country that are not subject to an obligation to publish a non-financial statement pursuant to Articles 19a and 29a of Directive 2013/34/EU;
+ **1.** The exposures to central governments, central banks and supranational issuers shall be excluded from the calculation of the numerator and denominator of key performance indicators of financial undertakings.
− (f) exposures to and investments in financial undertakings referred established in a third country that are not subject to an obligation to publish a non-financial statement pursuant to Articles 19a and 29a of Directive 2013/34/EU;
+ **2.** Derivatives, cash and cash equivalents, on demand interbank loans, and other categories of assets that are not referred to in Article 7(6), including goodwill and commodities, shall be excluded from the denominator of key performance indicators of financial undertakings.
− (g) exposures to and investments in derivatives;
+ **3.** All exposures to undertakings that are not obliged to include sustainability information in their management report pursuant to Article 19a or Article 29a of Directive 2013/34/EU, or that do not belong to groups of undertakings that are obliged to include sustainability information in their m…
− (h) other exposures and investments.
+ **5.** Where the technical screening criteria laid down in the delegated acts adopted pursuant to Articles 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) of Regulation (EU) 2020/852 are amended, the loans and instruments whose use of proceeds is known and that are held by financial undertakings that fin…
− **7.** Financial undertakings may use estimates for assessing the Taxonomy-alignment of their exposures to undertakings referred to in paragraph (6), points (e) and (f), where those financial undertakings are able to demonstrate compliance with all criteria of Article 3 of Regulation (EU) 2020/852, …
+ **6.** Financial undertakings shall provide for a breakdown in the numerator and denominator of the key performance indicators, where applicable, for:(a) exposures to and investments in non-financial undertakings;(b) exposures to and investments in financial undertakings;(c) taxonomy-eligible exposu…
− Financial undertakings shall formalise, document and make public the methodology upon which such estimations are based, including the approach and research methodology, the main assumptions and precautionary principles used.
+ **8.** When reporting the key performance indicators in accordance with this Regulation, financial undertakings shall include in the reporting templates:(a) exposures and investments financing non-material economic activities of their counterparties that are non-financial undertakings reported in ac…
− Financial undertakings shall disclose:
+ **9.** Until 31 December 2027, with the exception of Article 8(2) and this paragraph 9, Articles 2 to 8 shall not apply to financial undertakings that do not claim under Articles 3 and 9 of Regulation (EU) 2020/852 that they have economic activities that are associated with that Regulation, provided…
− (a) the proportion of Taxonomy-aligned exposures based on estimates separately from their key performance indicators disclosed pursuant to this Regulation;
+ ‘No activities are claimed as being associated with economic activities that qualify as environmentally sustainable under Articles 3 and 9 of Regulation (EU) 2020/852 (Taxonomy Regulation)’.
− (b) the measures taken and the period of time necessary to demonstrate compliance with the criteria laid down in Article 3, point (b) of Regulation (EU) 2020/852.
+ **6.** Where performing or financing the economic activities as referred to in Sections 4.26, 4.27 and 4.28 of Annexes I and II to Delegated Regulation (EU) 2021/2139, non-financial undertakings and financial undertakings shall disclose the proportion of:(a) taxonomy-aligned economic activities as r…
− **5.** The key performance indicators shall cover only the objectives of climate change mitigation and climate change adaptation until 12 months after the date of application of the delegated regulations that contain the technical screening criteria for the other environmental objectives and that ha…
+ **7.** Where performing or financing the economic activities as referred to in Sections 4.29, 4.30 and 4.31 of Annexes I and II to Delegated Regulation (EU) 2021/2139, non-financial undertakings and financial undertakings shall disclose the proportion of:(a) taxonomy-aligned economic activities as r…
− **6.** Non-financial undertakings and financial undertakings shall disclose the amount and proportion of:
+ **8.** The information referred to in paragraphs 6 and 7 shall be presented in tabular form by using the templates set out in Annexes II, IV, VI, VIII, and X to this Regulation.
− (a) the taxonomy-aligned economic activities referred to in Sections 4.26, 4.27 and 4.28 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator and the numerator of their key performance indicators;
− 
− (b) the taxonomy-eligible, but not taxonomy-aligned, economic activities referred to in Sections 4.26, 4.27 and 4.28 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of their key performance indicators;
− (c) the taxonomy-non-eligible nuclear energy related activities in the denominator of their key performance indicators.
− 
− **7.** Non-financial undertakings and financial undertakings shall disclose the amount and proportion of:
− 
− (a) the taxonomy-aligned economic activities referred to in Sections 4.29, 4.30 and 4.31 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator and the numerator of their key performance indicators;
− 
− (b) the taxonomy-eligible, but not taxonomy-aligned, economic activities referred to in Sections 4.29, 4.30 and 4.31 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of their key performance indicators;
− 
− (c) the taxonomy-non-eligible fossil gas related activities in the denominator of their key performance indicators.
− 
− **8.** The information referred to in paragraphs 6 and 7 shall be presented in tabular form by using the templates set out in Annex XII to this Regulation.
− 
+ **1.** By 30 June 2024, the Commission shall review the application of this Regulation. The Commission shall assess in particular the need for any further amendments with regard to the inclusion of:(a) exposures to central governments and central banks in the numerator and denominator of key perform…
− **1.** By 30 June 2024, the Commission shall review the application of this Regulation. The Commission shall assess in particular the need for any further amendments with regard to the inclusion of:
− 
− (a) exposures to central governments and central banks in the numerator and denominator of key performance indicators of financial undertakings;
− (b) exposures to undertakings that do not publish a non-financial statement pursuant to Articles 19a or 29a of Directive 2013/34/EU in the numerator of key performance indicators of financial undertakings.
− 
+ **3.** From 1 January 2022 until 31 December 2023, financial undertakings shall only disclose:(a) the proportion in their total assets of exposures to Taxonomy non-eligible and Taxonomy-eligible economic activities;(b) the proportion in their total assets of the exposures referred to in Article 7, p…
− **3.** From 1 January 2022 until 31 December 2023, financial undertakings shall only disclose:
− 
− (a) the proportion in their total assets of exposures to Taxonomy non-eligible and Taxonomy-eligible economic activities;
− 
− (b) the proportion in their total assets of the exposures referred to in Article 7, paragraphs 1 and 2;
− (c) the proportion in their total assets of the exposures referred to in Article 7(3);
− 
− (d) the qualitative information referred to in Annex XI.
− 
+ Sections 1.2.3 and 1.2.4 of Annex V shall apply from 1 January 2028.
− Sections 1.2.3 and 1.2.4 of Annex V shall apply from 1 January 2026.
+ **7.** From 1 January 2024 until 31 December 2025, financial undertakings shall only disclose:(a) the proportion in their covered assets of exposures to Taxonomy non-eligible and Taxonomy-eligible economic activities pursuant to Delegated Regulation (EU) 2023/2486 and Sections 3.18 to 3.21, Sections…
− **7.** From 1 January 2024 until 31 December 2025, financial undertakings shall only disclose:
− 
− (a) the proportion in their covered assets of exposures to Taxonomy non-eligible and Taxonomy-eligible economic activities pursuant to Delegated Regulation (EU) 2023/2486 and Sections 3.18 to 3.21, Sections 6.18 to 6.20 of Annex I to Delegated Regulation (EU) 2021/2139 and Sections 5.13, 7.8, 8.4, 9…
− (b) the qualitative information referred to in Annex XI relating to economic activities referred to in point (a).
− 
− 
− ### ANNEX I
− 
− **1.Content of KPIs to be disclosed by non-financial undertakings**
− 
− **1.1.Specification of key performance indicators (KPI)**
− 
− The proportion of turnover referred to in Article 8(2), point (a), of Regulation (EU) 2020/852 shall be calculated as the part of the net turnover derived from products or services, including intangibles, associated with Taxonomy-aligned economic activities (numerator), divided by the net turnover (…
− 
− **1.1.1.KPI related to turnover (turnover KPI)**
− 
− (a) qualify as enabling activities in accordance with Article 11(1), point (b) of Regulation (EU) 2020/852; or
− 
− (b) are themselves Taxonomy-aligned.
− 
− The proportion of CapEx referred to in Article 8(2), point (b), of Regulation (EU) 2020/852 shall be calculated as the numerator divided by the denominator as specified in points 1.1.2.1 and 1.1.2.2 of this Annex.
− 
− **1.1.2.KPI related to capital expenditure (CapEx) (CapEx KPI)**
− 
− The denominator shall cover additions to tangible and intangible assets during the financial year considered before depreciation, amortisation and any re-measurements, including those resulting from revaluations and impairments, for the relevant financial year and excluding fair value changes. The d…
− 
− **1.1.2.1.Denominator**
− 
− (a) IAS 16 Property, Plant and Equipment, paragraphs 73, (e), point (i) and point (iii);
− 
− (b) IAS 38 Intangible Assets, paragraph 118, (e), point (i);
− 
− (c) IAS 40 Investment Property, paragraphs 76, points (a) and (b) (for the fair value model);
− 
− (d) IAS 40 Investment Property, paragraph 79(d), points (i) and (ii) (for the cost model);
− 
− (e) IAS 41 Agriculture, paragraph 50, points (b) and (e);
− 
− (f) IFRS 16 Leases, paragraph 53, point (h).
− 
− The numerator equals to the part of the capital expenditure included in the denominator that is any of the following:The CapEx plan referred to in the first paragraph of this point 1.1.2.2 shall meet the following conditions:Where the relevant technical screening criteria are amended before the comp…
− 
− **1.1.2.2.Numerator**
− 
− (a) related to assets or processes that are associated with Taxonomy-aligned economic activities;
− 
− (b) part of a plan to expand Taxonomy-aligned economic activities or to allow Taxonomy-eligible economic activities to become Taxonomy-aligned (‘CapEx plan’) under the conditions specified in the second subparagraph of this point 1.1.2.2;
− 
− (c) related to the purchase of output from Taxonomy-aligned economic activities and individual measures enabling the target activities to become low-carbon or to lead to greenhouse gas reductions, notably activities listed in points 7.3 to 7.6 of Annex I to the Climate Delegated Act, as well as othe…
− 
− (a) the plan aims either to expand the undertaking’s Taxonomy-aligned economic activities or to upgrade Taxonomy-eligible economic activities to render them Taxonomy-aligned within a period of five years;
− 
− (b) the plan shall be disclosed at economic activity aggregated level and be approved by the management body of non-financial undertakings either directly or by delegation.
− 
− The proportion of OpExreferred to in Article 8(2), point (b), of Regulation (EU) 2020/852 shall be calculated as the numerator divided by the denominator as specified in points 1.1.3.1 and 1.1.3.2 of this Annex.
− 
− **1.1.3.KPI related to operating expenditure (OpEx) (OpEx KPI)**
− 
− The denominator shall cover direct non-capitalised costs that relate to research and development, building renovation measures, short-term lease, maintenance and repair, and any other direct expenditures relating to the day-to-day servicing of assets of property, plant and equipment by the undertaki…
− 
− **1.1.3.1.Denominator**
− 
− The numerator equals to the part of the operating expenditure included in the denominator that is any of the following:The CapEx planreferred to in the first paragraph of this point 1.1.3.2 shall meet the conditions specified in point 1.1.2.2 of this Annex.Research and development costs already acco…
− 
− **1.1.3.2.Numerator**
− 
− (a) related to assets or processes associated with Taxonomy-aligned economic activities, including training and other human resources adaptation needs, and direct non-capitalised costs that represent research and development;
− 
− (b) part of the CapExplan to expand Taxonomy-aligned economic activities or allow Taxonomy-eligible economic activities to become Taxonomy-aligned within a predefined timeframe as set out in the second paragraph of this point 1.1.3.2;
− 
− (c) related to the purchase of output from Taxonomy-aligned economic activities and to individual measures enabling the target activities to become low-carbon or to lead to greenhouse gas reductions as well as individual building renovation measures as identified in the delegated acts adopted pursua…
− 
− (a) be exempted from the calculation of the numerator of the OpEX KPI in accordance with point 1.1.3.2 and disclose that numerator as being equal to zero;
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− (b) disclose the total value of the OpEx denominator calculated in accordance with point 1.1.3.1;
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− (c) explain the absence of materiality of operational expenditure in their business model.
− 
− Non-financial undertakings shall disclose the following information accompanying the relevant KPIs.
− 
− **1.2.Specification of disclosures accompanying the KPIs of non-financial undertakings**
− 
− Non-financial undertakings shall explain:For turnover and capital expenditure, non-financial undertakings shall include references to the related line items in the financial statements.Where the application of any calculations has changed since the previous reporting period, non-financial undertakin…
− 
− **1.2.1.Accounting policy**
− 
− (a) how turnover, capital expenditure and operating expenditurewere determined and allocated to the numerator;
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− (b) the basis on which the turnover, capital expenditure and operating expenditure were calculated, including any assessment in the allocation of revenues or expenditures to different economic activities.
− 
− (a) the material changes that have occurred in the CapEx plan and the reasons underlying those changes;
− 
− (b) the impact of such changes on the potential for the economic activities of the undertaking to become Taxonomy-aligned and on the period of time in which this change is expected to take place;
− 
− (c) the restatement of the CapEx and OpEx KPI for each past reporting year covered by the plan whenever changes to the plan had an impact on those KPIs.
− 
− **1.2.2.Assessment of compliance with Regulation (EU) 2020/852**
− 
− Non-financial undertakings shall:
− 
− **1.2.2.1.Information on assessment of compliance with Regulation (EU) 2020/852:**
− 
− (a) describe the nature of their Taxonomy-eligible and Taxonomy-aligned economic activities, by referring to the delegated acts adopted pursuant to Article 10(3), Article 11(3), Article 12(2), Article 13(2), Article 14(2) and Article 15(2) of Regulation (EU) 2020/852;
− 
− (b) explain how they assessed compliance with the criteria set out in Article 3 of Regulation (EU) 2020/852 and the associatedtechnical screening criteria included in the delegated acts referred to in point (a);
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− (c) explain how they avoided any double counting in the allocation in the numerator of turnover, CapEx, and OpEx KPIs across economic activities.
− 
− Where an economic activity contributes to several environmental objectives, non-financial undertakings shall:
− 
− **1.2.2.2.Contribution to multiple objectives**
− 
− (a) demonstrate compliance with the criteria set out in Article 3 of Regulation (EU) 2020/852, in particular with the technical screening criteria with respect to several environmental objectives;
− 
− (b) disclose the turnover, CapEx and OpEx from that activity as contributing to several environmental objectives;
− 
− (c) only count once the turnover from that activity in the numerator of the KPIs in point 1.1 of this Annex to avoid double counting.
− 
− Where the KPIs for an economic activity are to be disaggregated, in particular where production facilities are used in an integrated manner, non-financial undertakings shall ensure that:
− 
− **1.2.2.3.Disaggregation of KPIs**
− 
− (a) any disaggregation is based on criteria that are appropriate for the production process being implemented and reflects the technical specificities of that process;
− 
− (b) appropriate information accompanying the KPIs about the basis of such disaggregation is provided.
− 
− Non-financial undertakings shall explain the figures of each KPI and the reasons for any changes in those figures in the reporting period.Non-financial undertakings may disclose additional KPIs based on turnover, Capex, Opex) that include investments in equity accounted in joint ventures, pursuant t…
− 
− **1.2.3.Contextual information**
− 
− Non-financial undertakings shall provide all of the following:Non-financial undertakings that have issued environmentally sustainable bonds or debt securities with the purpose of financing specific identified Taxonomy-aligned activities shall also disclose the turnover KPI adjusted to avoid double c…
− 
− **1.2.3.1.Contextual information about turnover KPI**
− 
− (a) a quantitative breakdown of the numerator in order to illustrate the key drivers of change in the turnover KPI during the reporting period, such as revenue from contracts with customers, lease revenue, or other sources of income;
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− (b) information about the amounts related to Taxonomy-aligned activities pursued for non-financial undertakings’ own internal consumption;
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− (c) a qualitative explanation of key elements of change in the turnover KPI during the reporting period.
− 
− Non-financial undertakings shall provide a quantitative breakdown at the economic activity aggregated level of the amounts included in the numerator and qualitative explanation of the key elements of change in CapEx KPI during the reporting period. Such breakdown shall disclose all of the following:…
− 
− **1.2.3.2.Contextual information about CapEx KPI**
− 
− (a) an aggregation of additions to property, plant and equipment, to internally generated intangible assets, including in a business combination or acquired, to investment properties acquired or recognised in the carrying amount and, where applicable, to capitalised right-of-use assets;
− 
− (b) an aggregation of additions related to acquisitions through business combinations;
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− (c) an aggregation of expenses incurred in relation to Taxonomy-aligned economic activities and expenses incurred as part of a CapEx plan referred to in point 1.1.2. of this Annex.
− 
− (a) the environmental objectives pursued;
− 
− (b) the economic activities concerned;
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− (c) research, development and innovation activities concerned, where relevant;
− 
− (d) the period of time whereby each Taxonomy-aligned economic activity is expected to be expanded or whereby each economic activity is expected to become Taxonomy-aligned, including, where the period in which the economic activity is expected to become Taxonomy-aligned exceeds five years, an objecti…
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− (e) the total capital expense expected to be incurred during the reporting period and during the period of time of the CapEx plans.
− 
− Non-financial undertakings shall provide all of the following:Where OpEx is part of a CapEx plan as referred to in points 1.1.2.2 and 1.1.3.2 of this Annex, non-financial undertakings shall disclose the key information about each of their CapEx plans in line with the requirements of point 1.2.3.2 of…
− 
− **1.2.3.3.Contextual information about the OpEx KPI**
− 
− (a) a quantitative breakdown of the numerator(operating expenditure determined in accordance with point 1.1.3.2 of this Annex)to illustrate the key elements of change in the OpEx KPI during the reporting period;
− 
− (b) a qualitative explanation of the key elements of change in OpEx KPI during the reporting period;
− 
− (c) an explanation of the other expenditures relating to the day-to-day servicing of items of property plant and equipment that are included in the calculation of OpEx for both the numerator and denominator.
− 
− The following requirements shall apply for the disclosures under Article 8(2) of Regulation (EU) 2020/852:
− 
− **2.Methodology for reporting of KPIs to be disclosed by non-financial undertakings**
− 
− (a) non-financial undertakings shall identify each economic activity, including a subset of transitional and enabling economic activities;
− 
− (b) non-financial undertakings shall disclose the KPIs for each economic activity and the total KPIs for all economic activities at the level of the relevant undertaking or group;
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− (c) non-financial undertakings shall disclose the KPIs set out in points 1.1.1, 1.1.2 and 1.1.3 of this Annex for each environmental objective and the total KPIs for all environmental objectives at the level of the undertaking or group across all environmental objectives while avoiding double counti…
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− (d) non-financial undertakings shall identify the proportion of the Taxonomy-aligned economic activities and the proportion of the Taxonomy-eligible economic activities that do not meet technical screening criteria. Within a Taxonomy-eligible economic activity, non-financial undertakings shall ident…
− 
− (e) non-financial undertakings shall identify Taxonomy-non-eligible economic activities and disclose the proportion in the denominator of the turnover, CapEx and OpEx KPIs of those economic activities at the level of the undertaking or group;
− 
− (f) the KPIs shall be provided at the level of the individual undertaking where that undertaking prepares only individual non-financial statements or at the level of the group where the undertaking prepares consolidated non-financial statements.
− 
− ### ANNEX II
− 
− **Template: Proportion of turnover from products or services associated with Taxonomy-aligned economic activities – disclosure covering year N**
− 
− | **Financial year N** | **Year** | **Substantial contribution criteria** | **DNSH criteria (‘Does Not Significantly Harm’)** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
− | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
− | **Economic Activities (1)** | **Code****(2)** | **Turnover (3)** | **Proportion of Turnover, year N (4)** | **Climate Change Mitigation (5)** | **Climate Change Adaptation (6)** | **Water (7)** | **Pollution (8)** | **Circular Economy (9)** | **Biodiversity (10)** | **Climate Change Mitigation (11…
− | *Text* |  | *Currency* | *%* | *Y; N; N/EL* | *Y; N; N/EL* | *Y; N; N/EL* | *Y; N; N/EL* | *Y; N; N/EL* | *Y; N; N/EL* | *Y/N* | *Y/N* | *Y/N* | *Y/N* | *Y/N* | *Y/N* | *Y/N* | *%* | *E* | *T* |
− | A.**TAXONOMY-ELIGIBLE ACTIVITIES** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
− | A.1.**Environmentally sustainable activities (Taxonomy-aligned)** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
− | Activity 1 |  |  | % |  |  |  |  |  |  | Y | Y | Y | Y | Y | Y | Y | % |  |  |
− | Activity 1 |  |  | % |  |  |  |  |  |  | Y | Y | Y | Y | Y | Y | Y | % | E |  |
− | Activity 2 |  |  | % |  |  |  |  |  |  | Y | Y | Y | Y | Y | Y | Y | % |  | T |
− | **Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1)** |  | **%** | **%** | **%** | **%** | **%** | **%** | **%** | **Y** | **Y** | **Y** | **Y** | **Y** | **Y** | **Y** | **%** |  |  |  |
− | **Of which enabling** |  | % | % | % | % | % | % | % | Y | Y | Y | Y | Y | Y | Y | % | E |  |  |
− | **Of which transitional** |  | % | % |  |  |  |  |  | Y | Y | Y | Y | Y | Y | Y | % |  | T |  |
− | A.2.**Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
− |  | *EL; N/EL* | *EL; N/EL* | *EL; N/EL* | *EL; N/EL* | *EL; N/EL* | *EL; N/EL* |  |  |  |  |  |  |  |  |  |  |  |  |  |
− | Activity 1 |  |  | % | *EL* | *EL* |  |  | *EL* |  |  |  |  |  |  |  |  | % |  |  |
− | **Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)** |  | % | % | % | % | % | % | % |  |  |  |  |  |  |  | % |  |  |  |
− | A.**Turnover of Taxonomy-eligible activities *(A.1+A.2)*** |  | % | % | % | % | % | % | % |  |  |  |  |  |  |  |  |  |  |  |
− | B.**TAXONOMY-NON-ELIGIBLE ACTIVITIES** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
− | **Turnover of Taxonomy-non-eligible activities** |  | % |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
− | **TOTAL** |  | **100 %** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
− 
− **Template: Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year N**
− 
− | **Financial year N** | **Year** | **Substantial contribution criteria** | **DNSH criteria (‘Does Not Significantly Harm’)** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
− | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
− | **Economic Activities (1)** | **Code****(2)** | **CapEx (3)** | **Proportion of CapEx, year N (4)** | **Climate Change Mitigation (5)** | **Climate Change Adaptation (6)** | **Water (7)** | **Pollution (8)** | **Circular Economy(9)** | **Biodiversity(10)** | **Climate Change Mitigation (11)** | **…
− | *Text* |  | *Currency* | *%* | *Y; N; N/EL* | *Y; N; N/EL* | *Y; N; N/EL* | *Y; N; N/EL* | *Y; N; N/EL* | *Y; N; N/EL* | *Y/N* | *Y/N* | *Y/N* | *Y/N* | *Y/N* | *Y/N* | *Y/N* | *%* | *E* | *T* |
− | A.**TAXONOMY-ELIGIBLE ACTIVITIES** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
− | A.1.**Environmentally sustainable activities (Taxonomy-aligned)** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
− | Activity 1 |  |  | % |  |  |  |  |  |  | Y | Y | Y | Y | Y | Y | Y | % |  |  |
− | Activity 1 |  |  | % |  |  |  |  |  |  | Y | Y | Y | Y | Y | Y | Y | % | E |  |
− | Activity 2 |  |  | % |  |  |  |  |  |  | Y | Y | Y | Y | Y | Y | Y | % |  | T |
− | **CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)** |  | **%** | **%** | **%** | **%** | **%** | **%** | **%** | **Y** | **Y** | **Y** | **Y** | **Y** | **Y** | **Y** | **%** |  |  |  |
− | **Of which enabling** |  | % | % | % | % | % | % | % | Y | Y | Y | Y | Y | Y | Y | % | E |  |  |
− | **Of which transitional** |  | % | % |  |  |  |  |  | Y | Y | Y | Y | Y | Y | Y | % |  | T |  |
− | A.2.**Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
− |  | *EL; N/EL* | *EL; N/EL* | *EL; N/EL* | *EL; N/EL* | *EL; N/EL* | *EL; N/EL* |  |  |  |  |  |  |  |  |  |  |  |  |  |
− | Activity 1 |  |  | % |  |  |  |  |  |  |  |  |  |  |  |  |  | % |  |  |
− | **CapEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)** |  | % | % | % | % | % | % | % |  |  |  |  |  |  |  | % |  |  |  |
− | A.**CapEx of Taxonomy-eligible activities *(A.1+A.2)*** |  | % | % | % | % | % | % | % |  |  |  |  |  |  |  |  |  |  |  |
− | B.**TAXONOMY-NON-ELIGIBLE ACTIVITIES** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
− | **CapEx of Taxonomy-non-eligible activities** |  | % |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
− | **TOTAL** |  | **100 %** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
− 
− **Template: Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year N**
− 
− | **Financial year N** | **Year** | **Substantial contribution criteria** | **DNSH criteria (‘Does Not Significantly Harm’)** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
− | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
− | **Economic Activities (1)** | **Code****(2)** | **OpEx (3)** | **Proportion of OpEx, year N (4)** | **Climate Change Mitigation (5)** | **Climate Change Adaptation (6)** | **Water (7)** | **Pollution (8)** | **Circular Economy (9)** | **Biodiversity (10)** | **Climate Change Mitigation (11)** | **…
− | *Text* |  | *Currency* | *%* | *Y; N; N/EL* | *Y; N; N/EL* | *Y; N; N/EL* | *Y; N; N/EL* | *Y; N; N/EL* | *Y; N; N/EL* | *Y/N* | *Y/N* | *Y/N* | *Y/N* | *Y/N* | *Y/N* | *Y/N* | *%* | *E* | *T* |
− | A.**TAXONOMY-ELIGIBLE ACTIVITIES** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
− | A.1.**Environmentally sustainable activities (Taxonomy-aligned)** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
− | Activity 1 |  |  | % |  |  |  |  |  |  | Y | Y | Y | Y | Y | Y | Y | % |  |  |
− | Activity 1 |  |  | % |  |  |  |  |  |  | Y | Y | Y | Y | Y | Y | Y | % | E |  |
− | Activity 2 |  |  | % |  |  |  |  |  |  | Y | Y | Y | Y | Y | Y | Y | % |  | T |
− | **OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)** |  | **%** | **%** | **%** | **%** | **%** | **%** | **%** | **Y** | **Y** | **Y** | **Y** | **Y** | **Y** | **Y** | **%** |  |  |  |
− | **Of which enabling** |  | % | % | % | % | % | % | % | Y | Y | Y | Y | Y | Y | Y | % | E |  |  |
− | **Of which transitional** |  | % | % |  |  |  |  |  | Y | Y | Y | Y | Y | Y | Y | % |  | T |  |
− | A.2.**Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
− |  | *EL; N/EL* | *EL; N/EL* | *EL; N/EL* | *EL; N/EL* | *EL; N/EL* | *EL; N/EL* |  |  |  |  |  |  |  |  |  |  |  |  |  |
− | Activity 1 |  |  | % |  |  |  |  |  |  |  |  |  |  |  |  |  | % |  |  |
− | **OpEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)** |  | % | % | % | % | % | % | % |  |  |  |  |  |  |  | % |  |  |  |
− | A.**OpEx of Taxonomy eligible activities *(A.1+A.2)*** |  | % | % | % | % | % | % | % |  |  |  |  |  |  |  |  |  |  |  |
− | B.**TAXONOMY-NON-ELIGIBLE ACTIVITIES** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
− | **OpEx of Taxonomy-non-eligible activities** |  | % |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
− | **TOTAL** |  | **100 %** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
− 
− ### ANNEX III
− 
− The KPI shall be calculated as the numerator divided by the denominator as specified in points 1.1 and 1.2 of this Annex.
− 
− **1.Content of KPI to be disclosed by asset managers**
− 
− The numerator shall consist of a weighted average of the value of investments in Taxonomy-aligned economic activities of investee companies. The weighted average of the value of investments shall be based on the proportion of taxonomy-aligned economic activities of investee companies measured by the…
− 
− **1.1.Numerator**
− 
− (a) for investees that are non-financial undertakings, turnover and CapEx KPIs as resulting from the calculation of the KPIs of the investee in accordance with Annexes I and II;
− 
− (b) for investees that are asset managers, turnover-based and CapEx-based KPIs, as resulting from the calculation of the KPIs of the investee in accordance with Annexes III and IV;
− 
− (c) for investees that are credit institutions, the turnover-based and CapEx based green asset ratio as resulting from the calculation of the green asset ratio of the investee in accordance with Annexes V and VI;
− 
− (d) for investees that are investments firms, investments and revenues, as resulting from the calculation of the turnover-based and CapEx based KPIs of the investee in accordance with Annexes VII and VIII in accordance with the proportion of services and activities of dealing on own account and not …
− 
− (e) for investees that are insurance or reinsurance undertakings, investments, gross premiums written or, as applicable, total insurance revenue, as resulting from the calculation either of the turnover-based and CapEx based investment KPI, combined, where applicable with the underwriting KPI of the…
− 
− The denominator shall consist of the value of all Asset under Management (AuM) without exposures referred to in Article 7(1) of this Regulation resulting from both collective and individual portfolio management activities of asset managers.Asset managers shall disclose a KPI based on turnover KPIs o…
− 
− **1.2.Denominator**
− 
− For the purposes of disclosures under Article 8(1) of Regulation (EU) 2020/852, asset managers shall:
− 
− **2.Methodology for preparing and reporting the KPI to be disclosed by asset managers**
− 
− (a) disclose the KPIs for each environmental objective and for aggregated taxonomy-aligned economic activities at the level of the relevant undertaking or group;
− 
− (b) identify a subset of transitional and enabling economic activities and disclose the KPIs for aggregated economic activities at the level of the undertaking or group;
− 
− (c) provide for a breakdown of the numerator and denominator per type of investment;
− 
− (d) disclose the KPIs in relation to aggregated taxonomy-eligible economic activities;
− 
− (e) disclose the proportion of taxonomy-non-eligible economic activities within the assets under management;
− 
− (f) disclose the proportion in total investments of investments in exposures referred to in Article 7(1) of this Regulation;
− 
− (g) provide the KPIs at the level of the individual asset manager where that undertaking prepares only individual non-financial statements or at the level of the group where the undertaking prepares consolidated non-financial statements.
− 
− ### ANNEX IV
− 
− Standard template for the disclosure required under Article 8 of Regulation (EU) 2020/852 (asset managers)
− 
− | The weighted average value of all the investments that are directed at funding, or are associated with taxonomy-aligned economic activities **relative to the value of total assets covered by the KPI**, with following weights for investments in undertakings per below:Turnover-based: %CapEx—based: %…
− | --- | --- | --- |
− | The percentage of assets covered by the KPI relative to total investments (total AuM). Excluding investments in sovereign entities, Coverage ratio: % | The monetary value of assets covered by the KPI. Excluding investments in sovereign entities.Coverage: [monetary amount] |  |
− | Additional, complementary disclosures: breakdown of **denominator** of the KPI |  |  |
− | The percentage of derivatives relative to total assets covered by the KPI.X % | The value in monetary amounts of derivatives:.[monetary amount] |  |
− | The proportion of **exposures to EU financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU** over total assets covered by the KPI:For non-financial undertakings:For financial undertakings: | Value of **exposures to EU financial and non-financial undert…
− | The proportion of **exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU** over total assets covered by the KPI:For non-financial undertakings:For financial undertakings: | Value of **exposures to financial and non-…
− | The proportion of **exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU** over total assets covered by the KPI:For non-financial undertakings:For financial undertakings: | Value of **exposures to financial and non-financial undertakings sub…
− | The proportion of **exposures to other counterparties and assets over** total assets covered by the KPI:X % | Value **of exposures to other counterparties and assets:**[monetary amount] |  |
− | The value of all the investments that are funding **economic activities that are not taxonomy-eligible** relative to the value of total assets covered by the KPI:X % | Value of all the investments that are funding **economic activities that are not taxonomy-eligible**:[monetary amount] |  |
− | The value of all the investments that are funding taxonomy-eligible economic activities, **but not taxonomy-aligned relative to the value of t**otal assets covered by the KPI:X % | Value of all the investments that are funding Taxonomy-eligible economic activities, **but not taxonomy-aligned:**[mo…
− | Additional, complementary disclosures: breakdown of **numerator** of the KPI |  |  |
− | The proportion of **Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU** over total assets covered by the KPI:For non-financial undertakings:Turnover-based: %Capital expenditures-based: %For financial undertakings:Turnover…
− | The proportion of **Taxonomy-aligned exposures to other counterparties and assets** over total assets covered by the KPI:Turnover-based: %Capital expenditures-based: % | Value of **Taxonomy-aligned exposures to other counterparties and assets**:Turnover-based: [monetary amount]Capital expenditures…
− | **Breakdown of the numerator of the KPI per environmental objective** |  |  |
− | **Taxonomy-aligned activities** –: |  |  |
− | (1)Climate change mitigation | Turnover: %CapEx:% | Transitional activities: A% (Turnover; CapEx)Enabling activities: B% (Turnover; CapEx) |
− | (2)Climate change adaptation | Turnover: %CapEx:% | Transitional activities: A% (Turnover; CapEx)Enabling activities: B% (Turnover; CapEx) |
− | (3)The sustainable use and protection of water and marine resources | Turnover: %CapEx:% | Transitional activities: A% (Turnover; CapEx)Enabling activities: B% (Turnover; CapEx) |
− | (4)The transition to a circular economy | Turnover: %CapEx:% | Transitional activities: A% (Turnover; CapEx)Enabling activities: B% (Turnover; CapEx) |
− | (5)Pollution prevention and control | Turnover: %CapEx:% | Transitional activities: A% (Turnover; CapEx)Enabling activities: B% (Turnover; CapEx) |
− | (6)The protection and restoration of biodiversity and ecosystems | Turnover: %CapEx:% | Transitional activities: A% (Turnover; CapEx)Enabling activities: B% (Turnover; CapEx) |
− 
− ### ANNEX V
− 
− **1.Content of KPIs to be disclosed by credit institutions**
− 
− **1.1.Scope of the KPIs**
− 
− Credit institutions shall disclose relevant KPIs on the basis of the scope of their prudential consolidation determined in accordance with Regulation (EU) No 575/2013, Title II, Chapter 2, Section 2.
− 
− **1.1.1.Consolidation**
− 
− The calculation of the green asset ratio (GAR) for on-balance sheet exposures shall cover the following accounting categories of financial assets, including loans and advances, debt securities, equity instruments and repossessed collaterals:The exposures referred to in Article 7(1) of this Regulatio…
− 
− **1.1.2.Total covered Assets**
− 
− (a) financial assets at amortised cost;
− 
− (b) financial assets at fair value through other comprehensive income;
− 
− (c) investments in subsidiaries;
− 
− (d) joint ventures and associates;
− 
− (e) financial assets designated at fair value through profit or loss and non-trading financial assets mandatorily at fair value through profit or loss;
− 
− (f) real estate collaterals obtained by credit institutions by taking possession in exchange for the cancellation of debts.
− 
− (a) financial assets held for trading;
− 
− (b) on-demand interbank loans;
− 
− (c) exposures to undertakings that are not obliged to publish non-financial information pursuant to Article 19a or 29a of Directive 2013/34/EU;
− 
− (d) derivatives;
− 
− (e) cash and cash-related assets;
− 
− (f) other categories of assets (such as goodwill, commodities, etc.).
− 
− **1.2.Content of the KPIs and methodology**
− 
− The GAR shall show the proportion of the of credit institution’s assets financing and invested in taxonomy-aligned economic activities as a proportion of total covered assets in accordance with point 1.1.2 of this Annex.The GAR shall be based on the exposures and balance sheet according to the scope…
− 
− **1.2.1.Green asset ratio (GAR)**
− 
− (a) the aggregate GAR for covered on-balance sheet assets;
− 
− (b) the breakdown by environmental objective and by type of counterparty.
… diff truncated at 500 changed lines …