EU Taxonomy Disclosure

The EU Taxonomy

To reach the goal of EU Green Deal and EU´s climate and energy targets for 2030, EU Taxonomy Regulation was published to establish a classification scheme for economic activities based on their environmental sustainability. It sets six environmental objectives and requires all companies falling within the scope of the Non-Financial Reporting Directive to report certain indicators detailing the extent to which their activities are sustainable according to these objectives and criteria.

Bittium´s approach to Taxonomy alignment and Taxonomy eligibility

Bittium has determined the taxonomy-eligible economic activities and aligned activities by the following process:

• Identifying economic activities and processes across the business of the Bittium as per NACE classification (Classification according to the Statistical Classification of Economic Activities in the European Community).
• Evaluating whether the identified economic activities are suitable to the economic activity descriptions included in the Annex I and II of the Climate Delegated Act. When suitable, such activities are determined as taxonomy-eligible activities.
• Assessing whether the identified eligible activities meet the substantial contribution criteria, “Do No Significant Harm´ (DNSH) criteria and determining compliance with minimum safeguards.
• From the activities included in the Annex I and II of the Climate Delegated Act, Bittium has identified that 8.1 Data processing, hosting and related activities for environmental objective 1 (Climate mitigation), 8.1 Data processing, hosting and related activities and 8.2 Computer programming, consultancy and related activities for objective 2 (Climate adaptation) are Taxonomy-eligible Bittium business activities.

Bittium solutions that offers data hosting and processing services are carefully reviewed against the 8.1 description. Bittium took strict interpretation and determined that the solutions that use Bittium´s own data center are suitable to this description, therefore taxonomy-eligible. Bittium couldn´t validate with sufficient documented evidence in what extent our current activity meets the requirements defined in Substantial contribution criteria. Therefore, it concluded that its activity is eligible but not taxonomy-aligned.

In addition to computer programing related design and develop own products, Bittium offers varieties of information technologies expertise and services.  Such computer programming and consultancy related activities are reviewed against 8.2 description and determined taxonomy-eligible. Such activities include, for example, software development, connectivity solution development, research, and consultation services. Bittium couldn´t validate with sufficient documented evidence that any of these activities meets the Substantial contribution criteria. Therefore we took conservative interpretation and determined these are not taxonomy-aligned activities.

Accounting policy for financial KPI

Bittium did not identify taxonomy-aligned activities, so the taxonomy-aligned turnover, capital expenditure, and operating expenditure is 0% and therefore not presened as a table.

Turnover

• Bittium has calculated turnover as defined by Disclosure Delegated Act, based on the same accounting principles that applies for revenue in IFRS 15.
• Bittium has determined all services-based net sales can be classified as taxonomy eligible turnover related to 8.2 Computer programming, consultancy and related activities. Also, data hosting and processing services that uses Bittium own data center can be classified as taxonomy eligible turnover related to 8.1 Data processing, hosting and related activities.

Capital Expenditure

• Bittium has calculated Capital Expenditure as defined by Disclosure Delegated Act, and determined absolute CapEx used in taxonomy reporting as its gross investments.
• Bittium has determined that it´s investments to measuring devices for service-based business can be classified as taxonomy eligible CapEx. These investments are reported only in company level. For that reason, the proportion of investments for service-based business is determined using the proportion of service-based net sales from total net sales.

Operation Expenditure

• Bittium has calculated Operation Expenditure as defined by Disclosure Delegated Act, and determined that it´s calibration and maintenance costs for measuring devices can be classified as taxonomy eligible OpEx.
• Bittium has determined that it´s calibration and maintenance costs for measuring devices that are used by service-based business can be classified as taxonomy eligible OpEx. These costs are reported only in company level. For that reason, the proportion of costs for service-based business is determined using the proportion of service-based net sales from total net sales.

Bittium continues to develop taxonomy assessment and reporting practice in 2023. It will also keep monitoring regulatory developments of final technical screening criteria for the four remaining taxonomy objectives and further reporting guidance by EU. Bittium is working towards increasing the share of sustainable business practices. Together with expanded scope and further clarification of reporting rules, Bittium expects the share of eligible and aligned activities to increase in future.

Sales Revenue

Capital Expenditure

Operational Expenditure