The key transitional performance measure, the eligibility ratio, defines the share of covered assets attributable to activities that are taxonomy-eligible in terms of two environmental goals implemented to date (out of six defined), regardless of whether they meet the technical criteria for classification set out in the relevant delegated act. The classification of environmentally sustainable activities is based on the NACE nomenclature of economic activities, the statistical classification of economic activities in force in the European Union.
When calculating the eligibility ratio, the numerator accounts for taxonomy-eligible financial assets, including loans and advances and debt and equity securities of financial institutions and non-financial undertaking subject to the Non-Financial Reporting Directive (NFRD) and certain credit receivables in the portfolio of households and local government units, mainly loans secured by real estate. Covered assets are reported in the denominator.
As part of its non-financial reporting for the year ended 31 December 2022, Santander Bank Polska Group has prepared quantitative eligibility information at the mandatory level. Extended information based on estimates that can be disclosed on a voluntary basis has not been provided. Moreover, due to data limitations in the first reporting period for non-financial companies’ disclosures on eligibility and compliance with the taxonomy of natural gas and nuclear energy activities, the Group’s disclosures in question do not include information in this regard.
The Group has identified exposures to non-financial undertakings and financial institutions meeting the criteria set out in Article 19a or 29a of Accounting Directive 2013/34/EU and covered by Non-Financial Reporting Directive 214/95/EU (NFRD), based on a source data warehouse in accordance with FINREP granularity.
In the mandatory disclosure, publicly available indicators reported by the aforementioned counterparties (public interest entities), i.e. TURNOVER and CAPEX indicators of non-financial undertakings relating to turnover and capital expenditure and eligibility indicators in the case of financial institutions, were used to calculate the taxonomy-eligibility of general-purpose debt instruments. When the purpose of the proceeds of a debt instrument was identified and taxonomy-eligible, the proceeds were allocated in their entirety to taxonomy-eligible economic activities. Green debt instruments were treated as eligible at full value, as were the mortgage portfolio and household motor vehicle loans.