Universal Registration Document 2021

3.8.3.3.3 Analysis of activities with regard to their eligibility under the complementary delegated act of 2 February 2022

The complementary Delegated Act for nuclear and gas activities was adopted on 2 February 2022 by the European Commission. Subject to the procedure before the Parliament and the Council, it will enter into force from 2023.

In view of their significance for the Group, a preliminary analysis has been carried out to determine the expected impact of this new text on eligibility indicators for the Taxonomy (see section 3.8.3.4). The data presented may change if the analyses, market positions, and interpretations finally adopted differ from the Group’s provisional conclusions.

3.8.3.3.3.1 Nuclear activities

The complementary Delegated Act defines three eligible nuclear activities. They concern only activities carried out in European Union countries (excluding the United Kingdom) and countries that have chosen to make nuclear energy an energy of the future (excluding Belgium):

Research, development, demonstration and deployment of innovative reactors that produce energy from nuclear processes with minimal waste from the fuel cycle (4.26 (1)). The activities related to the SMR and EPR 2 projects are at this stage placed under heading 9.1 of the Delegated Act of 4 June 2021 but could also be considered eligible under this heading 4.26. They represent 1% of total CAPEXT;
projects authorised no later than 2045 by the competent authorities for the construction and safe operation of “best available technologies” nuclear reactors (covers the production of electricity, heat and hydrogen, as well as the upgrading of these reactors). For the Group, these activities concern the Flamanville 3 power plant currently under construction (4.27 ⁽¹⁾);
projects authorised no later than 2040 by the competent authorities to extend the operating life of existing reactors (4.28 ⁽¹⁾). This last activity was analysed by taking into account operation and maintenance activities (regulatory controls, maintenance programmes, etc.), modifications, replacements of large components, and operations that comply with the generic ASN notices received (900MWe level) or to be received by 2040 (1,300MWe and 1,450MWe levels) and with the technical requirements that allow the French nuclear power plants to continue operating beyond 40 years. All the nuclear power plants in operation are considered eligible in the pro-forma indicators provided below.

Regarding the alignment of these nuclear activities to the Taxonomy, the scope of the technical criteria is under review.

3.8.3.3.3.2 Gas activities

This text also includes 3 activities under gas as a transitional activity:

electricity generation from fossil gaseous fuels (4.29⁽¹⁾) ;
high-efficiency co-generation of heat/cold and power from fossil gaseous fuels (4.30 ⁽¹⁾) ;
the production of heat/cold from fossil gaseous fuels in an efficient district heating and cooling system (4.31 ⁽¹⁾).

To date, due to the criteria applicable to their classification as transition activities, particularly in terms of maximum emissions (gCO₂/kWh), all of the Group’s gas activities would remain non-eligible under the Taxonomy.

3.8.3.4 Taxonomy indicators

Delegated Act 2021-4987 on Taxonomy defines the indicators to be presented.

The definitions may not be sufficiently precise. The main interpretations and conventions resulting from our analysis of the Delegated Act for each indicator are detailed in the following sections (3.8.3.4.1, 3.8.3.4.2, 3.8.3.4.3).

Summary of the distribution of activities with regard to the Taxonomy Delegated Act applicable as of 31 December 2021:

Economic activities/2021 data	Share of CAPEX	Share of turnover	Share of OPEX
Eligible and aligned activities	Eligible and aligned activities Share of CAPEX 40%	Eligible and aligned activities Share of turnover 32%	Eligible and aligned activities Share of OPEX 27%
Eligible but non-aligned activities	Eligible but non-aligned activities Share of CAPEX 3%	Eligible but non-aligned activities Share of turnover 1%	Eligible but non-aligned activities Share of OPEX -
Nuclear power generation activity (EU and non-EU)	Nuclear power generation activity (EU and non-EU) Share of CAPEX 48%	Nuclear power generation activity (EU and non-EU) Share of turnover 28%	Nuclear power generation activity (EU and non-EU) Share of OPEX 41%
Other non-eligible activities (including gas)	Other non-eligible activities (including gas) Share of CAPEX 9%	Other non-eligible activities (including gas) Share of turnover 39%	Other non-eligible activities (including gas) Share of OPEX 32%

Summary of the distribution of activities with regard to their eligibility by integrating the complementary Delegated Act on nuclear and gas

The Taxonomy indicators presented below are pro forma indicators that include the expected effects of the complementary Delegated Act relating to nuclear and gas activities, if adopted as it stands by the European Parliament and on the basis of the analyses conducted by the Group to date:

Economic activities/2021 data	Share of CAPEX	Share of turnover	Share of OPEX
Eligible activities (including nuclear)	Eligible activities (including nuclear) Share of CAPEX 66%	Eligible activities (including nuclear) Share of turnover 56%	Eligible activities (including nuclear) Share of OPEX 66 %
Non-eligible activities (including nuclear power outside the EU, and gas)	Non-eligible activities (including nuclear power outside the EU, and gas) Share of CAPEX 34%	Non-eligible activities (including nuclear power outside the EU, and gas) Share of turnover 44%	Non-eligible activities (including nuclear power outside the EU, and gas) Share of OPEX 34 %

3.8.3.4.1 Analysis of the "CAPEX" investment indicator

Definition of the indicator and calculation method (numerator/denominator)

The “CAPEX” ratio referred to in Article 8.2(b), of regulation (EU) 2020/852 is calculated using:

in the denominator: all investments known as “CAPEX_T”, including gross additions to property, plant and equipment, intangible assets and rights of use (IFRS 16 Leases), including those resulting from business combinations (acquisition of a subsidiary);
in the numerator: capital expenditures related to:

an eligible activity: CAPEX related to assets or processes associated with Taxonomy-eligible (or -aligned) activities,
a CAPEX plan whose objective is to create or transform an activity that will be Taxonomy-eligible or -aligned,
individually eligible investments that are not related to a core business (not significant for the Group).
(1) Refers to the activity codes listed in the complementary Delegated Act of 2 February 2022.