As a property company, we are subject to disclosure requirements on the extent to which our operations are environmentally sustainable according to the EU taxonomy. Already in 2021, we analysed which economic activities are eligible for the taxonomy and concluded that they were new construction projects, major renovations and the properties under our management.

Also in 2021, we took out our first taxonomy-adapted loan for the Signalen 3 property in Solna. During 2024, we looked at how we comply with the taxonomy in our new builds. We estimate that in normal cases we are compliant with all the objectives except Objective 5, which is about preventing and combatting pollution, partly due to insufficient clarification and interpretation of the criteria, and partly because the sector is not sufficiently mature. However, in specific projects, there may also be challenges in achieving objectives other than Objective 5, normally because the project was developed before the taxonomy requirements were introduced.

Principles for financial reporting according to the EU taxonomy

The proportion of our operations that is environmentally sustainable according to the EU Taxonomy Regulation is reported via three financial ratios, which indicate the percentage of turnover, operating expenditure (OpEx) and capital expenditure (CapEx) that is taxonomy-aligned.

Our reporting according to EU Taxonomy Regulation

We carry out both construction (via building contractors) and management of buildings, which means that the entire business falls within the scope of the taxonomy. Since 2021, we have continued to develop our activities to align with the taxonomy as it is a prerequisite for green financing.

We demonstrate that we make a substantial contribution to one of the six environmental objectives of the Taxonomy Regulation, Objective 1: Climate Change Mitigation (CCM), as this is the objective that is most relevant to our business. The activities in which most of our operations are described are CCM 7.7 Acquisition and ownership of buildings and CCM 7.1 Construction of new buildings, but other activities may also be relevant to a lesser extent.

The other five environmental objectives come under the Do No Significant Harm (DNSH) criteria for our business. For capital expenditure, Fabege could contribute to Objectives 2 and 4, but all significant capital expenditure is covered by Objective 1 and Fabege therefore only reports according to Objective 1. We also meet the taxonomy’s requirements for Minimum Safeguards related to human rights, anti-corruption, transparency regarding tax burdens and fair competition.

The requirements of the EU taxonomy are highly consistent with our sustainability work, which is presented in our report. We therefore believe that we satisfy the taxonomy’s requirements.