LegalizeCommission Delegated Regulation (EU) 2021/2178 of 6 July 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by specifying the content and presentation of information to be disclosed by undertakings subject to Articles 19a or 29a of Directive 2013/34/EU concerning environmentally sustainable economic activities, and specifying the methodology to comply with that disclosure obligation (Text with EEA relevance)
Disclosure of KPIs and the methodology shall cover and be designed separately for all of the following services listed in Annex I, Section A, to Directive 2014/65/EU:
- (a) investment firms’ dealing on own account activities, regardless of whether investment firms are principal traders or dealing on behalf of their clients in accordance with Section A, point (3), of Annex I to Directive 2014/65/EU);
- (b) investment firms’ investment services and activities other than dealing on own account in accordance with Section A of Annex I to Directive 2014/65/EU, with the exception of point (3) of that Section.
Ancillary services listed in Section B of Annex I to Directive 2014/65/EU shall be excluded from the scope of the disclosures.
The investment services and activities that shall be covered in the disclosure requirements under Article 8 of Regulation (EU) 2020/852 and this Regulation shall include the following:
- (a) reception and transmission of orders in relation to one or more financial instruments;
- (b) execution of orders on behalf of clients;
- (c) dealing on own account;
- (d) portfolio management;
- (e) investment advice;
- (f) underwriting of financial instruments and/or placing of financial instruments on a firm commitment basis;
- (g) placing of financial instruments without a firm commitment basis;
- (h) operation of an MTF;
- (i) operation of an OTF.
2. Investment firms dealing on own account
Investment firms dealing on their own account shall disclose the following KPIs:
2.1. KPIs related to their assets as:
- — proportion of assets associated with Taxonomy-eligible economic activities within total assets;
- — proportion of assets associated with Taxonomy-aligned economic activities within assets associated with Taxonomy-eligible economic activities, and
- — proportion of assets associated with Taxonomy-aligned economic activities within total assets (GAR).
For the calculation of KPIs, the following shall be considered:
2.2. Investee undertakings considered
Investee undertakings considered shall include non-financial undertakings and financial undertakings.
For investee companies that are subject to Article 19a and 29a of Directive 2014/95/EU, investment firms shall use the KPIs that investee companies shall disclose under this Regulation. For investee companies that are not subject to Directive 2014/95/EU, Article 8(3) of this Regulation shall apply.
2.3. Investment instruments considered – assets
The calculation of KPIs shall include debt securities, equity instruments towards investee companies and all other assets covered under Article 7(6).
2.4. Calculation methodology
With regard to the computation of the GAR for investment firms’ services and activities dealing on own account, investment firms shall rely on the turnover KPI and CapEx KPI of investee undertakings for each environmental objective.
The numerator shall be designed as the value of investments weighted by the proportion of Taxonomy-aligned economic activities with a breakdown for transition and enabling activities of the investee undertaking, that is by the proportion of turnover and CapEx of the investee undertaking associated with Taxonomy-aligned economic activities.
The weighted average of the value of investments shall be based on the proportion of Taxonomy-aligned economic activities of investee companies measured by the following:
- (a) for investees that are non-financial undertakings, turnover and CapEx KPIs as resulting from the calculation of the KPIs of the investee in accordance with Annexes I and II;
- (b) for investees that are asset managers, turnover-based and CapEx based KPIs as resulting from the calculation of the KPIs of the investee in accordance with Annexes III and IV;
- (c) for investees that are credit institutions, the turnover-based and CapEx based green asset ratio as resulting from the calculation of the green asset ratio of the investee in accordance with Annexes V and VI;
- (d) for investees that are investments firms, investments and revenues, as resulting from the calculation of the turnover-based and CapEx based KPIs of the investee in accordance with Annexes VII and VIII in accordance with the proportion of services and activities of dealing on own account and not dealing on own account in the income of the investment firm;
- (e) for investees that are insurance or reinsurance undertakings, investments, gross premiums written or, as applicable, total insurance revenue, as resulting from the calculation either of the turnover-based or CapEx based investments KPI or combined, where applicable, with the underwriting KPI of the non-life investee insurance and reinsurance undertakings in accordance with Annexes IX and X.
For debt securities issued by an investee undertaking with the purpose to fund specific activities or projects, or where the investee undertaking issued environmentally sustainable bonds, investment firms shall assess those debt securities based on whether they fund Taxonomy-aligned economic activities or projects, on the basis of information provided by investee undertaking.
By way of derogation from the second and third subparagraph of this point 2.4, debt securities with the purpose of financing specific identified activities or projects or environmentally sustainable bonds issued by an investee undertaking shall be included in the numerator up to the value of Taxonomy-aligned economic activities that the proceeds of those bonds and debt securities finance, on the basis of information provided by the investee undertaking.
By way of derogation from the second and third subparagraph of this point 2.4, investments in real estate shall be included in the numerator to the extent and proportion in which they finance Taxonomy-aligned economic activities.
For the denominator, total assets shall include all assets invested by investment firms on own account.
3. Investment firms not dealing on own account
Investment firms not dealing on their own account shall disclose the following KPIs:
3.1. KPIs related to revenue, including fees, commissions and other monetary benefits as:
- — proportion of revenue from services and activities associated with Taxonomy-eligible economic activities within total revenue from investment services and activities;
- — proportion of revenue from investment services and activities associated with Taxonomy-aligned economic activities within revenue from investment services and activities associated with Taxonomy-eligible economic activities; and
- — proportion of revenue from investment services and activities associated with Taxonomy-aligned economic activities within total revenue from investment services and activities (GAR).
For the calculation of KPIs, the following shall be considered:
3.2. Clients considered
Investment firms shall consider clients receiving investment services, other than dealing on own account services and ancillary services, that are non-financial undertakings and financial undertakings.
For investee undertakings that are subject to Directive 2014/95/EU, investment firms shall use the KPIs that investee undertakings shall disclose under this Regulation. For investee companies that are not subject to Directive 2014/95/EU, Article 8(3) of this Regulation shall apply.
3.3. Calculation methodology
For activities of investment firms other than dealing on own account, the numerator shall be designed as the weighted average of the revenue (fees, commissions and other monetary benefits) generated by the investment firm in relation to the aggregate value of Taxonomy-aligned economic activities within the activities of their clients. The methodology laid down in point 2.4. of this Annex shall apply.
3.4. Further consideration
Investment firms shall indicate in the templates the environmental objectives as well as the nature of the activities, whether enabling or transition.
Disclosures shall take place after netting potential hedges and offsets, regardless of the instrument used in accordance with Article 3, paragraphs 4 and 5 of Regulation (EU) No 236/2012 of the European Parliament and of the Council ([^E0032]).
ANNEX VIII
TEMPLATE FOR KPIS OF INVESTMENT FIRMS
| Template number | Name |
|---|---|
| 0 | Summary of KPIs to be disclosed by investment firms under Article 8 Taxonomy Regulation |
| 1 | KPI IF – Dealing on own account services |
| 2 | KPI IF – Other services |
0. Summary of KPIs to be disclosed by investment firms under Article 8 Taxonomy Regulation
| Disclosure reference date/period t | |
| --- | --- |
| Main KPI (for dealing on own account) | Green asset ratio |
| Main KPI (for services and activities other than dealing on own account) | KPI on Revenue [^E0037] |
Based on the Turnover KPI of the counterparty.
Based on the CapEx KPI of the counterparty.
% of assets covered by the KPI over total assets.
In accordance with Article 7(8) of this Regulation.
Fees, commissions and other monetary benefits.
1. KPI IF – Dealing on own account services
| Disclosure reference date t | |
| --- | --- |
| 1 | Total assets invested under investment firms’ activities dealing on own account (as per Section A of Annex I to Directive 2014/65/EU) |
| 2 | of which: on own behalf |
| 3 | of which: on behalf of clients |
| 4 | of which: exposures included on a voluntary basis [^E0042] |
| 5 | of which nuclear activities [^E0043] |
| 6 | of which fossil gas activities [^E0044] |
% of Taxonomy-eligible assets over covered assets.
% of Taxonomy aligned assets over covered assets.
In accordance with Article 7(8)(a) and (b) of this Regulation.
In accordance with Article 5(1a) of this Regulation.
In accordance with Article 7(3) of this Regulation.
Referred to in Sections 4.26, 4.27 and 4.28 of Annexes I and II to Delegated Regulation (EU) 2021/2139.
Referred to in Sections 4.29, 4.30 and 4.31 of Annexes I and II to Delegated Regulation (EU) 2021/2139.
Explanatory note:
- 1.Undertakings shall duplicate this template for turnover-based and CapEx-based disclosures.
2. KPI IF – Other services
| Disclosure reference period t | |
| --- | --- |
| 1 | Revenue (i.e. fees, commissions and other monetary benefits) from investment and services and activities other than dealing on own account (as per Section A of Annex I to Directive 2014/65/EU) |
| 2 | Reception and transmission of orders in relation to one or more financial instruments |
| 3 | Execution of orders on behalf of clients |
| 4 | Portfolio management |
| 5 | Investment advice |
| 6 | Underwriting of financial instruments and/or placing of financial instruments on a firm commitment basis |
| 7 | Placing of financial instruments without a firm commitment basis |
| 8 | Operation of an MTF |
| 9 | Operation of an OTF |
| 10 | of which included on voluntary basis [^E0048] |
| 11 | of which nuclear activities [^E0049] |
| 12 | of which fossil gas activities [^E0050] |
% of Taxonomy-eligible assets over covered assets.
% of Taxonomy aligned assets over covered assets.
In accordance with Article 7(8) of this Regulation.
In accordance with Article 7(3) of this Regulation.
Referred to in Sections 4.26, 4.27 and 4.28 of Annexes I and II to Delegated Regulation (EU) 2021/2139.
Referred to in Sections 4.29, 4.30 and 4.31 of Annexes I and II to Delegated Regulation (EU) 2021/2139.
Explanatory note:
- 1.Undertakings shall duplicate this template for turnover-based and CapEx-based disclosures.
ANNEX IX
KPIs OF INSURANCE AND REINSURANCE UNDERTAKINGS
1. KPI related to investments
The KPI related to investments by insurance or reinsurance undertakings shall present the weighted average of those investments that are directed at funding, or are associated with Taxonomy-aligned economic activities. The KPI shall be shown both in percentage terms relative to ‘total investments’ and in absolute monetary units.
Investments shall mean all direct and indirect investments and exposures, covered under Article 7(6), including investments in collective investment undertakings and participations, loans and mortgages.
In additional disclosures, insurance or reinsurance undertakings shall distinguish the proportion of the investments held in respect of life insurance contracts where the investment risk is borne by the policy holders and the proportion of remaining investments. The ratio of covered investments in exposures covered under Article 7(6) of this Regulation in the balance sheet total shall be disclosed.
The disclosures shall be broken down by environmental objective in percentage terms and monetary units, where available.
The weighted average of the value of the investments shall be based on the proportion of Taxonomy-aligned economic activities of investee companies measured by the following:
- (a) for investees that are non-financial undertakings, turnover and CapEx KPIs as resulting from the calculation of the KPIs of the investee in accordance with Annexes I and II;
- (b) for investees that are asset managers, turnover-based and CapEx based KPIs as resulting from the calculation of the KPIs of the investee in accordance with Annexes III and IV;
- (c) for investees that are credit institutions, the turnover-based and CapEx based green asset ratio as resulting from the calculation of the green asset ratio of the investee in accordance with Annexes V and VI;
- (d) for investees that are investments firms, investments and revenues, as resulting from the calculation of the turnover-based and CapEx based KPIs of the investee in accordance with Annexes VII and VIII in accordance with the proportion of services and activities of dealing on own account and not dealing with own account in the income of the investment firm;
- (e) for investees that are insurance or reinsurance undertakings, investments, gross premiums written or, as applicable, total insurance revenue, as resulting from the calculation either of the turnover-based and CapEx based investments KPI (i.e. the proportion of the insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned economic activities) combined, where applicable, with the underwriting KPI of the non-life investee insurance and reinsurance undertakings in accordance with Annexes XI and X.
By way of derogation from the first and fifth paragraph of this point 1, debt securities with the purpose of financing specific identified activities or projects or environmentally sustainable bonds issued by an investee undertaking shall be included in the numerator up to the value of Taxonomy-aligned economic activities that the proceeds of those bonds and debt securities finance, on the basis of information provided by the investee undertaking.
By way of derogation from the first and fifth paragraphs of this point 1, investments in real estate shall be included in the numerator to the extent and proportion in which they finance Taxonomy-aligned economic activities.
2. KPI related to underwriting activities
Insurance and reinsurance undertakings other than life insurance undertakings shall calculate the KPI related to underwriting activities and present the ‘gross premiums written’ non-life insurance revenue or, as applicable, reinsurance revenue corresponding to Taxonomy-aligned insurance or reinsurance activities in accordance with points 10.1 and 10.2 of Annex II to Climate Delegated Act. The KPI shall be depicted in percentage terms relative to, as applicable, one of the following:
- (a) total non-life insurance gross premiums written;
- (b) total non-life reinsurance gross premiums written;
- (c) total non-life insurance revenue;
- (d) total non-life reinsurance revenue.
ANNEX X
TEMPLATES FOR KPIs OF INSURANCE AND REINSURANCE UNDERTAKINGS
Template 1: The underwriting KPI
| Disclosure reference period t | |
| Economic activities: Non-life insurance and reinsurance underwriting activities [^E0051] | Absolute premiums, year t |
| --- | --- |
| (1) | (2) |
| Currency | |
| Taxonomy-aligned activities | |
| Nuclear activities [^E0052] | |
| Fossil gas activities [^E0053] | |
| Taxonomy-eligible activities | |
| Nuclear activities [^E0052] | |
| Fossil gas activities [^E0053] | |
| Non-assessed activities considered non-material [^E0054] | |
| Total [^E0055] |
Non-life insurance and reinsurance can only be eligible or aligned with Regulation (EU) 2020/852 as activity that enables climate change adaptation.
Referred to in Sections 4.26, 4.27 and 4.28 of Annexes I and II to Delegated Regulation (EU) 2021/2139.
Referred to in Sections 4.29, 4.30 and 4.31 of Annexes I and II to Delegated Regulation (EU) 2021/2139.
In accordance with Article 7(8) of this Regulation.
Total figure shall contain one of the following: (a) total non-life insurance gross premiums written; (b) total non-life reinsurance gross premiums written; (c) total non-life insurance revenue; (d) total non-life reinsurance revenue.
Explanatory notes for Template 1:
- 1.‘Premiums’ in columns (2) and (3) shall be reported as gross premiums written or, as applicable, revenue relating to non-life insurance or reinsurance activity.
- 2.The information in columns (4) and (5) shall be reported in disclosures in the year 2024 and thereafter. (t-1): Indicates the last financial year when data on Taxonomy-alignment was reported. If no data was reported in year t-1, leave columns (4) and (5) empty.
Template 2: Investment KPI
| Exposures | % | Million EUR | |
|---|---|---|---|
| 1 | Total AUM | 100 | |
| 2 | Assets covered by the KPI | ||
| % of covered assets | % Turnover based | % CapEx based | |
| 3 | Taxonomy eligible | ||
| 4 | Nuclear activities [^E0056] | ||
| 5 | Fossil gas activities [^E0057] | ||
| 6 | Taxonomy aligned | ||
| 7 | Undertakings subject to Articles 19a and 29a of Directive 2013/34/EU | ||
| 8 | of which Non-financial undertakings | ||
| 9 | of which Financial undertakings | ||
| 10 | Other covered counterparties and real estate assets | ||
| 11 | Investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders | ||
| 12 | Exposures included on a voluntary basis [^E0058] | ||
| 13 | Transitional activities | ||
| 14 | Enabling activities | ||
| 15 | Nuclear activities [^E0056] | ||
| 16 | Fossil gas activities [^E0057] | ||
| Taxonomy aligned per objective | % Turnover based | % CapEx based | |
| 17 | Climate Change Mitigation (CCM) | ||
| 18 | Climate Change Adaptation (CCA) | ||
| 19 | Water and marine resources (WTR) | ||
| 20 | Circular economy (CE) | ||
| 21 | Pollution (PPC) | ||
| 22 | Biodiversity and Ecosystems (BIO) | ||
| 23 | Non-assessed exposures | ||
| 24 | Exposures financing non-assessed non-material activities of counterparties [^E0059] | ||
| 25 | Exposures financing counterparties reporting in accordance with Article 7(9) to this Regulation [^E0060] | ||
| 26 | Non-assessed exposures considered non-material by the reporting entity [^E0061] | ||
| Breakdown of covered assets | % | Million EUR | |
| 27 | Undertakings subject to Articles 19a and 29a of Directive 2013/34/EU | ||
| 28 | of which Non-financial undertakings | ||
| 29 | of which Financial undertakings | ||
| 30 | Other covered counterparties and real estate assets | ||
| 31 | Investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders | ||
| 32 | Exposures included on a voluntary basis [^E0058] |
Referred to in Sections 4.26, 4.27 and 4.28 of Annexes I and II to Delegated Regulation (EU) 2021/2139.
Referred to in Sections 4.29, 4.30 and 4.31 of Annexes I and II to Delegated Regulation (EU) 2021/2139.
In accordance with Article 7(3) of this Regulation.
In accordance with Article 7(8)(a) and (b) of this Regulation.
Figures should be the same in both columns.
In accordance with Article 6(1b) of this Regulation. Figures should be the same in both columns.
ANNEX XI
QUALITATIVE DISCLOSURES FOR ASSET MANAGERS, CREDIT INSTITUTIONS, INVESTMENT FIRMS AND INSURANCE AND REINSURANCE UNDERTAKINGS
The disclosure of quantitative KPIs shall be accompanied by the following qualitative information to support the financial undertakings’ explanations and markets’ understanding of these KPIs:
- — contextual information in support of the quantitative indicators including the scope of assets and activities covered by the KPIs, information on data sources and limitation;
- — contextual information on the assets and activities covered by the KPIs that are considered non-material in accordance with Articles 3(1a), 4(1a) to (1f), 5(1a) and(1b), 6(1a) and (1b), as applicable, including the sector of the economic activities associated with those assets and activities and an explanation of the absence of materiality of those economic activities;
- — explanations of the nature and objectives of Taxonomy-aligned economic activities and the evolution of the Taxonomy-aligned economic activities over time, starting from the second year of implementation, distinguishing between business-related and methodological and data-related elements;
- — description of the compliance with Regulation (EU) 2020/852 in the financial undertaking’s business strategy, product design processes and engagement with clients and counterparties;
- — for credit institutions that are not required to disclose quantitative information for trading exposures, qualitative information on the alignment of trading portfolios with Regulation (EU) 2020/852, including overall composition, trends observed, objectives and policy;
- — additional or complementary information in support of the financial undertaking’s strategies and the weight of the financing of Taxonomy-aligned economic activities in their overall activity.
[^E0001]: Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010 (OJ L 174, 1.7.2011, p. 1).
[^E0002]: Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (OJ L 302, 17.11.2009, p. 32).
[^E0003]: Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1).
[^E0004]: Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (OJ L 335, 17.12.2009, p. 1).
[^E0005]: Commission Regulation (EC) No 1126/2008 of 3 November 2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council (OJ L 320, 29.11.2008, p. 1).
[^E0006]: Regulation (EU) No 236/2012 of the European Parliament and of the Council of 14 March 2012 on short selling and certain aspects of credit default swaps (OJ L 86, 24.3.2012, p. 1).
[^E0013]: Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349).
[^E0032]: Regulation (EU) No 236/2012 of the European Parliament and of the Council of 14 March 2012 on short selling and certain aspects of credit default swaps (OJ L 86, 24.3.2012, p. 1).
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