One of the main objectives of the green taxonomy is to provide a uniform definition of what constitutes a sustainable economic activity.
The European Green Taxonomy helps investors, companies and stakeholders to focus on genuinely green projects and avoid ‘greenwashing’. Ultimately, it should establish a common vocabulary for sustainable finance and enable a transparent comparison of sustainable investments across Europe.
The obligation relating to the European green taxonomy lies in the publication, for eligible companies, of the proportion of their turnover, CAPEX and OPEX that is eligible (‘is the activity classified as sustainable?’) and aligned (‘the activity is classified and meets the criteria set out in the text to be considered sustainable’). For Covivio, the adoption of the European green taxonomy enables the company to accentuate its role as a player committed to sustainable property, through its various development, renovation and property management projects.
As part of its Green Deal, the European Union is committed to achieving carbon neutrality by 2050. An ambitious objective that demands serious resources. The Green Taxonomy creates a classification system for economic activities that have a favourable impact on the environment, with the aim of encouraging private investment towards these sustainable activities and so facilitating the transition to a low-carbon economy.
To be considered “green”, an activity must make a substantial contribution to at least one of these objectives, without prejudice to the other five (Do No Significant Harm), while respecting minimum guarantees on social and human rights issues.
Almost all of Covivio’s eligible revenue is generated by property acquisition and ownership (activity 7.7). The revenues it generates can only be considered green for the purposes of climate change mitigation.
| 1 Top 15% – kWhpe/m2 | 2 Energy Performance Certificate | 3 Compliance with “Nearly Zero Energy Building” target – 10% reduction guideline for properties built after 31/12/2020 |
|---|---|---|
| Thresholds defined by different entities (OID sustainable real estate observatory in France, Deepki elsewhere) | A rating (B rating accepted where study shows that A+B < 15%) | Country-specific thresholds |
In addition, buildings with equipment of more than 290kW must also have a BMS (Building Management System) and new non-residential buildings must have a LCA (Life Cycle Analysis) and thermal study at the time of construction.
Green Capex refers to the company’s capital expenditures that are aligned with strict environmental criteria, contributing to green economy. This may include investing in the construction of buildings that meet high energy performance standards or in the renovation of existing buildings to improve their energy efficiency and reduce their carbon footprint.
| Green Capex “by nature” | Acquisition and construction (all asset-related Capex, regardless of its nature, including developments | Renovation of existing buildings (additional DNSH principles: water, pollution, circular economy) | |
|---|---|---|---|
| Mitigation | Installation, maintenance and repair of energy efficiency equipment (in compliance with best practices), charging stations, for electric vehicles, energy performance management devices or renewable energy technologies | Top 15% in terms of energy performance or DPE class A (B tolerated if a study shows that A+B <15%) NZEB -10% for new buildings (equivalent to RE2020 in France) | 30% increase in energy performance |
| Adaptation | Installation, maintenance and repair of energy efficiency equipment (in compliance with best practices), charging stations, for electric vehicles, energy performance management devices or renewable energy technologies | Top 30% ranking or EPC C rating NZEB for new buildings | Compliance with thermal regulations for renovations |
The building sector is at the heart of numerous shifts: energy, carbon, ecological, digital, social and societal. As an investor, developer and manager, Covivio operates throughout the real estate life cycle in order to offer ever greener, more efficient buildings capable of meeting the climate challenge.
Covivio’s sustainable development policy has been recognised regularly by non-financial rating agencies. The success of the Green Bonds issued by the Group also underscores this policy and its results.
Covivio's CSR policy, fuelled by a concrete innovation approach and covering all its activities and countries with the same ambition, aims to be transparent and measurable in order to generate a positive impact in the short, medium and long term.
