4.4 EU taxonomy KPI results for the reporting year Capital expenditures KPI The key performance indicators in this section were deter- The CapEx KPI shows the ratio of CapEx from Taxonomy- mined based on Commission Delegated Regulation (EU) eligible and/or aligned economic activities to the total CapEx, 2021/2178 in conjunction with the International Financial reflecting additions (including additions from business Reporting Standards applicable to the Consolidated Financial combinations) to other intangible assets and property, plant Statements. Based on the eligibility and alignment assess- and equipment in accordance with Note 13 to the Consoli- ments described above, the baseline values for revenue, dated Financial Statements. In the reporting year, 34.5% capital expenditures (CapEx), and operating expenditures (€1.3 billion) of Siemens’ CapEx were eligible, and 12.2% (OpEx) were analyzed and, if applicable, mapped to the (€0.5 billion) were aligned. The aligned CapEx is composed respective EU Taxonomy activities. Allocations were also as follows: a majority of €0.4 billion is related to additions to applied based on eligible and/or aligned revenue in order to property, plant and equipment, the remainder pertains to link capital expenditures and operating expenditures to the internally generated intangible assets and capitalized right- respective activities. Siemens implemented a supporting IT of-use assets. tool for the EU Taxonomy technical eligibility and alignment assessments and associated documentation. To avoid double This aligned CapEx includes €116 million related to a CapEx counting, the mapping was consistently made to only one plan, associated with building projects to be finalized by economic activity. fiscal 2028, summing up to a planned total volume of €1.4 billion (capitalizable and non-capitalizable costs). The Revenue KPI buildings are designed to minimize energy use and carbon The revenue KPI shows the ratio of revenue from Taxonomy- emissions (CCM 7.7). eligible and/or aligned economic activities to the total revenue in the Consolidated Statements of Income for the reporting Acquisition and ownership of buildings (CCM 7.7) related to year. Based on an assessment of the Siemens business port- Siemens’ real estate portfolio represents the largest portion folio, Taxonomy-eligible revenue accounted for 20.3% and in overall CapEx eligibility. The difference between Taxonomy- Taxonomy-aligned revenue for 16.5% of total revenue. This eligible CapEx and Taxonomy-aligned CapEx is impacted by translates into €15.7 billion in Taxonomy-eligible revenue (i) only partial availability of information on energy perfor- and €12.8 billion in aligned revenue. mance certificates for our global portfolio and (ii) energy certificates below the required threshold defined in the Taxonomy-eligible and aligned economic activities were Substantial Contribution criteria for the energy efficiency of primarily driven by the (i) Manufacture of low-carbon tech- buildings. nologies for transport (Climate Change Mitigation, CCM 3.3), (ii) rail transportation infrastructure (CCM 6.14), (iii) Operating expenditures KPI Infrastructure enabling low-carbon road transport and public The OpEx KPI shows the ratio of OpEx from Taxonomy- transport (CCM 6.15), all associated with Mobility busi- eligible and/or aligned economic activities to total OpEx. The nesses, as well as (iv) energy-efficient building technologies total OpEx comprises direct non-capitalized costs related to (CCM 3.5) and (v) services for energy-efficient building research and development, building renovation measures, technologies (CCM 7.5), both related to Smart Infrastructure short-term leases, maintenance and repairs, and any other businesses. direct expenditures relating to the day-to-day servicing of assets of property, plant, and equipment per Annex I of the The difference between Taxonomy-eligible revenue and Commission Delegated Regulation (EU) 2021/2178. 12.4% Taxonomy-aligned revenue is mainly due to DNSH criteria (€0.9 billion) of Siemens’ OpEx were eligible and 8.2% related to pollution prevention as part of Appendix C, which (€0.6 billion) were aligned. go beyond existing national regulation. This is mainly - because additionally required documentation is not com pletely available yet. SIEMENS SUSTAINABILITY REPORT 2023 79