Nolato and the EU taxonomy for sustainable investments

The taxonomy for environmentally sustainable investments (the Taxonomy Regulation) is one of the measures in the EU’s Sustainable Finance Action Plan. The taxonomy enables investors to identify and compare investments that are essential to achieving a sustainable economy. The idea is for it to form the basis of future standards and labelling of sustainable financial products. Companies with more than 500 employees are expected to report sales, capital investments and operating expenditure in accordance with the taxonomy. 

The following applies to the taxonomy:

Contribute to environmental objectives:

To be sustainable according to the regulation, a business must materially contribute to at least one of the taxonomy’s environmental objectives. The contribution can be made via internal measures and/or by Nolato helping a stakeholder to contribute to one of the objectives.

Not counteract environmental objectives:

The fulfilment of one or more of the taxonomy’s environmental objectives must not counteract the other environmental objectives.

Fulfil fundamental principles and norms:

This relates to conventions and guidelines in areas such as health and safety and human rights. 

Commit to technical criteria:

The taxonomy stipulates specifications and criteria for an activity or product to be regarded as sustainable. The EU taxonomy is being developed and it is important to recognize that the regulation does not cover all sustainability initiatives within the business sector. To encourage development towards net zero carbon dioxide emissions, the regulation initially focuses on activities that have a very significant impact on the climate. As a polymers company, Nolato does not belong to this category and there are currently no criteria in the taxonomy that are directly applicable to the Group’s business and products.

The EU taxonomy was analyzed by the Group management in 2021. A working group developed criteria and designed a system to collect data (volumes, revenue, investments, costs) on products that contribute to sustainable development. The aim was to create a clear overview of this area and prepare for possible future criteria that could be applied by the polymer industry.

Several of Nolato’s products and product groups help reduce climate impact and support a circular economy, as well as making a positive contribution to Group revenue. Nolato’s main economic activities are not subject to the taxonomy. Consequently, the proportion of Nolato’s sales subject to the taxonomy regulation is 0%. The proportion of capital expenditure and operating expenses subject to the taxonomy regulation is consequently also 0%.