EU Taxonomy
The EU Taxonomy Regulation was published to support the achievement of the objective of the European Green Deal and the EU’s climate and energy goals for 2030. The aim of the Taxonomy is to establish a classification system for economic activities based on their environmental sustainability. The Taxonomy Regulation specifies six environmental objectives and requires all companies falling within the scope of the EU’s Corporate Sustainability Reporting Directive (CSRD) to report certain indicators detailing the extent to which their activities are sustainable according to the applicable objectives and criteria. EU Taxonomy reporting involves reporting the share of Taxonomy-eligible, Taxonomy-non-eligible and Taxonomy-aligned economic activities of turnover, capital expenditure and operating expenditure.
Bittium’s Approach to Taxonomy Alignment and Taxonomy Eligibility
Bittium has determined the Taxonomy-eligible and Taxonomy-aligned economic activities by the following process:
- Identifying the NACE classification of Bittium’s economic activities and processes (statistical classification of economic activities in the European Community).
- Evaluating whether the identified economic activities correspond to the descriptions of economic activities included in Annex I and II of the Climate Delegated Act. Activities that correspond to the descriptions are identified as Taxonomy-eligible activities.
- Assessing whether the identified Taxonomy-eligible activities meet the substantial contribution criteria and the Do No Significant Harm (DNSH) criteria, and determining compliance with the minimum safeguards.
- An activity is Taxonomy-aligned if it substantially contributes to at least one environmental objective and does not significantly harm the other environmental objectives established in the technical screening criteria. An economic activity can only be considered to be Taxonomy-aligned if there is sufficient evidence. In addition, the company must comply with the minimum safeguards.
The minimum safeguards have been assessed at the Group level. Bittium’s operations comply with the company’s Code of Conduct, which lays down principles concerning human rights, corruption and bribery, fair competition and taxation. No violations of the minimum safeguards have been observed. Bittium’s approach to the minimum safeguards is described in more detail in the sustainability statement.
In Bittium’s operations, the Taxonomy-eligible activities with regard to turnover have been identified as follows: under environmental objective 1 (Climate change mitigation), category 8.1 Data processing, server space rental and related activities, and under environmental objective 2 (Climate change adaptation), category 8.2 Software, consulting and related activities, and under environmental objective 4 (Circular economy), categories 1.2 Manufacture of electrical and electronic equipment, 4.1 Provision of IT/OT data-driven solutions, 5.1 Repair, refurbishment and manufacturing, and 5.2 Sale of spare parts. With regard to operating expenditure, Taxonomy-eligible activities were identified as category 1.2 Manufacture of electrical and electronic equipment and 4.1 Provision of IT/OT data-driven solutions, both of which fall under environmental objective 4 (Circular economy).
Bittium’s solutions related to data processing services and server space rental are assessed against the description of category 8.1. Solutions which utilize Bittium’s own data center match the description and are Taxonomy-eligible.
In addition to the design and development of Bittium’s own products related to programming, Bittium offers versatile IT expertise and services. Such activities related to computer programming and consulting are assessed against the description of category 8.2 and identified as Taxonomy-eligible. Examples of such activities include software development, the development of connectivity solutions, research and consulting services.
Bittium manufactures several of its own electrical and electronic devices for measuring biosignals and remote monitoring as well as for the defense and security markets. These activities are assessed against the description of category 1.2, and they include Bittium’s own electrical and electronic equipment, the design, development, manufacture and maintenance of accessories, and the maintenance of device software in addition to the maintenance of the device structure.
Bittium offers various software products and solutions related to information technology. Such activities are assessed against the description of category 4.1. Activities in which the following are manufactured, developed, installed, put into use, maintained or repaired, or expert services are provided, including technical consulting on the design or monitoring of the following are defined as Taxonomy-eligible. Among Bittium’s activities, production and delivery of its own software products and solutions related to information technology, maintenance, implementation services for software products in the customer’s environments, customer training related to implementation, support services and expert services have been defined as Taxonomy-eligible.
As part of product sales, Bittium offers repair services, which include the sale of spare parts for certain products. The activities were assessed in more detail for the financial year under review, and the separately identifiable spare part sales in question were defined as Taxonomy-eligible. These activities are assessed against the description of category 5.1.
Bittium was unable to establish with sufficient evidence that any of the Taxonomy-eligible activities meet the requirements defined in the criteria for substantial contribution. Consequently, Taxonomy-aligned turnover, Taxonomy-aligned CapEx and Taxonomy-aligned OpEx are all reported as 0%.
Basis for Preparation Concerning the Financial Performance Indicator
Turnover
- Bittium has calculated turnover in accordance with the Taxonomy Disclosures Delegated Act. The basis for preparation is consistent with the accounting policies stipulated by IFRS 15. The denominator in the table is Bittium’s total net sales, which is included in Note 2.
- For category 8.2 Computer programming, consultancy and related activities, which falls under environmental objective 2 (Climate change adaptation), the turnover was not considered Taxonomy-eligible or Taxonomy-aligned in accordance with Commission Notice C/2023/305.
Capital Expenditure
- Bittium has calculated CapEx in accordance with the Taxonomy Disclosures Delegated Act. At the same time, Bittium defined gross investments as absolute capital expenditure used in taxonomy reporting. CapEx (the denominator) includes the costs incurred from the acquisition of the Group’s intangible and tangible assets and right-of-use assets during the financial year and is presented in Notes 11 and 12.
- According to the EU Taxonomy Regulation guidelines, Bittium’s CapEx amounted to EUR 7.24 million in 2024. Bittium had no Taxonomy-eligible CapEx in 2024.
Operating Expenditure
- Bittium has calculated OpEx in accordance with the Taxonomy Disclosures Delegated Act. OpEx (the denominator) includes direct uncapitalized costs related to research and development, short-term leases (IFRS 16) and maintenance and repairs.
- The figures concerning OpEx include the costs included in Notes 4 and 7, even though the figures only include the share of costs that corresponds to the Taxonomy Regulation.
- The determination of OpEx was specified further during the financial year under review to correspond to the costs included in OpEx in the taxonomy, and the OpEx figures for the comparison period have been adjusted to correspond to the same accounting principles.
- To avoid double counting in the reported figures, the figures have been allocated to activities in accordance with the company’s reporting structure and subsequently reconciled with the Group’s consolidated figures.
Bittium will continue to develop its taxonomy-related assessment and reporting practices in 2025. Bittium aims to increase the share of sustainable business practices. As the scope of reporting practices expands and the practices become clearer, we expect the share of Taxonomy-eligible and Taxonomy-aligned activities to increase in the future.
Sales Revenue
| 2024 | Substantial Contribution Criteria | DNSH Criteria | |||||||||||||||||
| Economic activities | Codes | Absolute turnover | Proportion of turnover | 1. Climate change mitigation | 2. Climate change adaptation | 3. Water and marine resources | 4. Circular economy | 5. Pollution | 6. Biodiversity and ecosystems | 1. Climate change mitigation | 2. Climate change adaptation | 3. Water and marine resources | 4. Circular economy | 5. Pollution | 6. Biodiversity and ecosystems | Minimum Safeguards | Proportion of Taxonomy aligned (A.1.) or eligible (A.2.) turnover | Category Enabling activities | Category Transitional activities |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| M€ | % | 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) | |||||||||||||||||||
| A.1 Turnover of environmentally sustainable activities (taxonomy-aligned) (A.1) | 0.00 | 0.00 | 0% | ||||||||||||||||
| of which enabling | 0.00 | 0.00 | % | % | % | % | % | % | 0% | ||||||||||
| of which transitional | 0.00 | 0.00 | % | % | % | % | % | % | % | ||||||||||
| A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) | |||||||||||||||||||
| EL;N EL(f) |
EL;N EL(f) |
EL;N EL(f) |
EL;N EL(f) |
EL;N EL(f) |
EL;N EL(f) |
||||||||||||||
| Data processing, hosting and related activities | CCM 8.1 |
0.00 | 0% | KEL | 0% | ||||||||||||||
| Manufacture of electrical and electronic equipment | CE 1.2 | 0.04 | 50% | KEL | 48% | ||||||||||||||
| Provision of IT/OT data-driven solutions | CE 4.1 | 0.01 | 15% | KEL | 16% | ||||||||||||||
| Sale of spare parts | CE 5.2 | 0.00 | 1% | KEL | |||||||||||||||
| Repair, refurbishment and remanufacturing | CE 5.1 | 0.00 | 5% | KEL | |||||||||||||||
| Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) | 0.06 | 71% | 0.3% | 0% | 0% | 71% | 0% | 0% | 65% | ||||||||||
| Total (A1 + A2) | 0.06 | 71% | 0.3% | 0% | 0% | 71% | 0% | 0% | 65% | ||||||||||
| B. TAXONOMY-NON-ELIGIBLE ACTIVITIES | |||||||||||||||||||
| Turnover of Taxonomy-non-eligible activities | 0.02 | 29% | |||||||||||||||||
| Total(A + B) | 0.09 | 100 | |||||||||||||||||
Capital Expenditure
| 2024 | Economic activities | DNSH Criteria | |||||||||||||||||
| Economic activities | Codes | Absolute Capital Expenditure | Proportion of Capital Expenditure | 1. Climate change mitigation | 2. Climate change adaptation | 3. Water and marine resources | 4. Circular economy | 5. Pollution | 6. Biodiversity and ecosystems | 1. Climate change mitigation | 2. Climate change adaptation | 3. Water and marine resources | 4. Circular economy | 5. Pollution | 6. Biodiversity and ecosystems | Minimum Safeguards | Proportion of Taxonomy aligned (A.1.) or eligible (A.2.) turnover | Category Enabling activities | Category Transitional activities |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| M€ | % | 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) | |||||||||||||||||||
| CapEx of environmentally sustainable activities (taxonomy-aligned) (A.1) | NA | 0.00 | 0.00 | ||||||||||||||||
| of which enabling | 0.00 | 0.00 | % | % | % | % | % | % | |||||||||||
| of which transitional | 0.00 | 0.00 | % | ||||||||||||||||
| A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) | |||||||||||||||||||
| EL;N;E/K EL(f) |
EL;N/K EL(f) |
EL;N/K EL(f) |
EL;N/K EL(f) |
EL;N/K EL(f) |
EL;N/K EL(f) |
||||||||||||||
| Manufacture of electrical and electronic equipment | CE 1.2 | 0.00 | 0% | KEL | 3.0% | ||||||||||||||
| CapEx of Taxonpmy-eligble but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) | 0.00 | 0% | 0.0% | 0.0% | 0.0% | 0 | 0.0% | 0.0% | 3.0% | ||||||||||
| Total (A1 + A2) | 0.00 | 0% | 0.0% | 0.0% | 0.0% | 0 | 0.00% | 0.00% | 3.0% | ||||||||||
| B. TAXONOMY-NON-ELIGIBLE ACTIVITIES | |||||||||||||||||||
| CapEx of Taxonomy-non-eligible activities | 0.01 | 100% | |||||||||||||||||
| Total(A + B) | 0.01 | 100% | |||||||||||||||||
Operational Expenditure
| 2024 | Economic activities | DNSH Criteria | |||||||||||||||||
| Economic activities | Codes | Absolute Operational Expenditure | Proportion of Operational Expenditure | 1. Climate change mitigation | 2. Climate change adaptation | 3. Water and marine resources | 4. Circular economy | 5. Pollution | 6. Biodiversity and ecosystems | 1. Climate change mitigation | 2. Climate change adaptation | 3. Water and marine resources | 4. Circular economy | 5. Pollution | 6. Biodiversity and ecosystems | Minimum Safeguards | Proportion of Taxonomy aligned (A.1.) or eligible (A.2.) turnover | Category Enabling activities | Category Transitional activities |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| M€ | % | 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) | |||||||||||||||||||
| OpEx of environmentally sustainable activities (taxonomy-aligned) (A.1) | 0.00 | 0.0 | |||||||||||||||||
| of which enabling | 0.00 | 0.0 | % | % | % | % | % | % | % | ||||||||||
| of which transitional | 0.00 | 0.0 | % | % | |||||||||||||||
| A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) | |||||||||||||||||||
| EL;N EL(f) |
EL;N EL(f) |
EL;N EL(f) |
EL;N EL(f) |
EL;N EL(f) |
EL;N EL(f) |
||||||||||||||
| Manufacture of electrical and electronic equipment | CE 1.2 | 0.01 | 72% | EL | 62% | ||||||||||||||
| Provision of IT/OT data-driven solutions | CE 4.1 | 0.00 | 13% | EL | 32% | ||||||||||||||
| OpEx of Taxonpmy-eligble but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) | 0.01 | 85% | 0% | 0% | 0% | 85% | 0% | 0% | 94% | ||||||||||
| Total(A1 + A2) | 0.01 | 85% | 0% | 0% | 0% | 85% | 0 | 0 | 94% | ||||||||||
| B. TAXONOMY-NON-ELIGIBLE ACTIVITIES | |||||||||||||||||||
| OpEx of Taxonomy-non-eligible activities | 0.00 | 15% | |||||||||||||||||
| Total (A + B) | 0.01 | 100% | |||||||||||||||||
Nuclear and Fossil Gas Related Activities
| Row | Nuclear energy related activities | |
|---|---|---|
| 1. | The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. | NO |
| 2. | The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. | NO |
| 3. | The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. | NO |
| Fossil gas related activities | NO | |
| 4. | The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. | NO |
| 5. | The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. | NO |
| 6. | The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. | NO |