The CNMV analyses the information offered by listed companies on European Sustainability Taxonomy

The CNMV published its inaugural „Report on breakdowns regarding European Taxonomy 2022.“ This report marks the first year that non-financial issuers were required to provide information aligned with environmental taxonomy and the CNMV’s first report on this topic. The taxonomy, established by the EC, identifies activities that substantially contribute to environmental sustainability. The report focuses on climate change mitigation and adaptation. Companies must disclose what percentage of their income, investments in CapEx and OpEx are eligible and aligned with these environmental objectives.
Of the 101 issuers who submitted their Non-Financial Statements for 2022, 89 included information on taxonomy, with 78 of them being non-financial issuers. The data shows that more issuers reported eligible activities compared to aligned activities in all three indicators: turnover, CapEx, and OpEx. CapEx showed the highest alignment proportion. The data also reveals significant variation among companies due to the diversity of sectors and activities.
For non-financial entities, 55 out of 78 reported eligible activities for turnover, 68 for CapEx, and 56 for OpEx. In comparison, 40, 44, and 34 issuers, respectively, presented aligned activities. The report emphasizes that non-materiality criteria can only be invoked in specific cases defined by the regulation. The CNMV suggests improvements for qualitative information, such as including references in financial statements and providing detailed, specific information about aligned and eligible activities, technical selection criteria, the absence of significant harm to other environmental objectives, and minimum safeguards. The report also encourages entities to follow the templates provided by the regulation strictly.
The CNMV’s report sheds light on the state of taxonomy disclosure among Spanish issuers, highlighting that the focus is primarily on climate change mitigation and the need for improved disclosure practices and consistency across various sectors. The greater emphasis on eligible activities than aligned activities aligns with the taxonomy’s goals, indicating a drive for environmental sustainability. It also emphasizes that the financial entities will need to report on alignment in 2024, marking a continued effort towards transparency in sustainability disclosures.