PwC's webcast - Taxonomy hot topics - July 2022

This webcast provides a focused look on current issues regarding the EU Taxonomy addressing eligibility and alignment. It includes interview segments with members of the Platform on Sustainable Finance (Nadia Humphreys and Linda Romanovska) and provides an overview of current regulatory developments.
The Taxonomy reporting landscape is rapidly evolving, thus, the webcast covers our understanding and expectations as of end of May 22. Some developments that occured after the time of recording are indicated in the timestamps.
Agenda [0:38]
Introduction of speakers [1:36]
Chapter 1: Reminders & feedback 2021 [2:30]
Overview Taxonomy reporting and reference material [2:43]
Nadia Humphreys on the experience from eligibility reporting in the first year of Taxonomy reporting [16:19]
Feedback on the first reporting period (benchmark study on eligibility) [19:13]
Chapter 2: Open questions on eligibility [30:38]
Nadia Humphreys on the issues with eligibility and the definition of an economic activity [30:57]
Assessing eligibility for climate change adaptation [33:07]
Nadia Humphreys on the concept of eligibility in the context of Taxonomy reporting for climate change adaptation [36:17]
Understanding of individual (eligible) Capex [38:10]
Understanding Taxonomy-eligibility under activity 3.6 “manufacture of other low carbon technologies” [39:49]
Scope of the Opex denominator (“other direct expenditure”) [42:30]
Treatment of R&D activities [44:05]
Linda Romanovska on ways to engage in the development of further technical screening and to address “missing” activities to the Platform on Sustainable Finance [45:49]
Chapter 3: Alignment difficulties [49:42]
Nadia Humphreys on FAQs for alignment questions and on how to deal with these questions until further guidance is issued [50:00]
Assessing Taxonomy-alignment of individual Capex [52:04]
[DATED] Applying the minimum safeguards [54:51] - please refer to the PSF draft report for an update on the application of the minimum safeguards in practice
Nadia Humphreys on the expected guidance on the minimum safeguards and its application [1:00:10] - guidance published in the meantime.
Using the disclosure template - for the example, assume that the company generates 100% of their turnover with activity 1 [1:02:49]
Requirement to perform a climate risk and vulnerability assessment (when?) [1:04:48]
Linda Romanovska on performing a robust climate risk and vulnerability assessments [1:05:58]
Level of analysis for a climate risk and vulnerability assessment including the value chain [1:08:32]
Application of the climate risk and vulnerability assessment in practice [1:10:18]
Application of technical screening criteria in the EU and outside of the EU [1:13:03]
Assessment of “best technologies” [1:17:25]
Verification by a third party [1:20:00]
Requirements for having a Capex plan [1:21:19]
Nadia Humphreys on the relevance of Capex plans [1:23:20]
Chapter 4: The four other environmental objectives [1:24:10]
Nadia Humphreys on the Delegated Act on the four other objectives [1:24:38]
First-time application of the Delegated Act on the four other objectives [1:25:39]
Linda Romanovska on the main points of attention in the upcoming Delegated Act on the four other objectives [1:26:53] (insights into activities covered by or discussed while developing the PSF report on the four other objectives)
Linda Romanovska’s advice on approaching Taxonomy-eligiblity regarding the Delegated Act on the four other objectives [1:31:02]
PSF Final report on the four other environmental objectives (deep dive) [1:33:21]
Please note: The supplement to the final report expected for May has been delayed [1:41:52]
Chapter 5: Extended Taxonomy [1:44:49]
Chapter 6: Social Taxonomy (deep dive) [1:48:35]
Chapter 7: What’s next and wrap-up [1:54:19] - see above: PSF draft report on minimum safeguards was published in July