Applicability and disclosures in accordance with the EU Taxonomy Regulation (EU) 2020/852
The EU Taxonomy Regulation is a standardised classification system for green economic activities within the scope of the EU action plan on “financing sustainable growth” and defines activities for the EU’s six environmental objectives:
1. Climate change mitigation
2. Climate change adaptation
3. Sustainable use and protection of water and marine resources
4. Transition to a circular economy
5. Pollution prevention and control
6. Protection and restoration of biodiversity and ecosystems
According to the definitions provided in the EU Taxonomy, economic activities are “environmentally sustainable” if they
- “contribute substantially” to the achievement of one or more of the six above-mentioned environmental objectives,
- “do no significant harm” to the achievement of the EU’s five other environmental objectives,
- comply with the “minimum safeguards” for occupational health and safety and human rights.
Technical screening criteria are applied for the analysis of whether an economic activity contributes substantially to one of the objectives and does no significant harm to the achievement of the other five objectives. Potential overlaps were identified and analysed to avoid any double counting of economic activities.
Reporting on the type of taxonomy-eligible and taxonomy-aligned economic activities is in line with the following delegated regulations:
- Delegated Regulation (EU) 2021/2139
- Delegated Regulation (EU) 2021/2178
- Delegated Regulation (EU) 2023/2485
- Delegated Regulation (EU) 2023/2486
For the 2023 financial year, information is to be provided on all six environmental objectives for the first time. However, only information on taxonomy eligibility is required for environmental objectives 3 to 6 and the economic activities newly included within the scope of the changes and additions made to the delegated act on climate change mitigation. These economic activities newly incorporated into the EU Taxonomy include economic activities in the aviation sector which are relevant to the Lufthansa Group. The core activities of the Lufthansa Group are thus covered by the EU Taxonomy for the first time. Including these economic activities means that the Lufthansa Group has disclosed taxonomy-eligible revenues for the first time.
Economic activities are “taxonomy-eligible” if they can be allocated to the screening criteria (irrespective of whether the criteria are met), while they are “taxonomy-aligned” if they also meet the screening criteria.
In accordance with the EU Taxonomy Regulation and relevant delegated acts, the Lufthansa Group reports below on the proportion of its revenue, capital expenditure (CapEx) and operating expenditure (OpEx) resulting from its taxonomy-eligible, taxonomy-aligned or taxonomy-non-eligible economic activities and provides additional qualitative information.
Implementation of the EU Taxonomy Regulation
The economic activities of the Lufthansa Group were initially allocated to the relevant taxonomy activities and those activities identified which are taxonomy-eligible according to the descriptions provided in the EU Taxonomy.
Based on the allocation to the taxonomy activities, the taxonomy-eligible economic activities were identified in the key Group companies and analysed. As in the previous year, the reportable economic activities of the Lufthansa Group relate to environmental objective 1 (climate change mitigation). There are no significant economic activities for any of the other environmental goals.
The share of revenue, CapEx and OpEx accounted for by the identified economic activities in relation to the overall activities of the Group was determined in accordance with the requirements of the EU Taxonomy. Revenue is defined as net sales in accordance with IFRS (International Financial Reporting Standards), as shown in the consolidated income statement, and therefore only relates to fully consolidated entities. Accordingly, companies accounted for using the equity method and other equity investments have not been included. Further information on revenue can be found in the ↗ Notes to the consolidated financial statements, Notes to the consolidated income statement
CapEx is calculated on a gross basis, i.e. without including revaluations or depreciation, amortisation or impairment. CapEx comprises investments in non-current intangible or tangible assets, including goods purchased through asset or share deals, as presented in the consolidated statement of financial position. Taxonomy-eligible CapEx has been calculated while taking the underlying accounts into consideration and in combination with the asset classes.
OpEx includes non-capitalisable expenses recognised in the consolidated income statement, such as research and development, building renovation work, short-term leasing, maintenance and repairs and all other direct expenses resulting from the maintenance of property, plant and equipment to ensure the operational readiness of the taxonomy-eligible assets.
The EU Taxonomy Regulation and the delegated acts enacted for the purpose of this regulation include phrases and terms whose interpretation remains subject to considerable uncertainty. Clarifications have not yet been published in every instance.
In line with German Accounting Standard (DRS) 20.32, the following relevant taxonomy-eligible economic activities of the Lufthansa Group have been identified:
3.21 Manufacturing of aircraft
Lufthansa Technik AG and the Lufthansa Technik group’s equity investments provide technical aviation services relating to the manufacture, maintenance, repair and overhaul of aviation components.
↗ MRO business segment
Taxonomy-eligible revenue from this economic activity is generated in connection with maintenance, repair and overhaul services and the sale of spare parts. The resulting revenue of EUR 4,250m represents 12% of the Group’s overall revenue. ↗ T001 Key figures Lufthansa Group.
Segment capital expenditure attributable to this economic activity in the MRO business segment has been recognised as CapEx. It consists primarily of intangible assets, technical equipment and other operating and office equipment. CapEx consists exclusively of CapEx (a) according to the definition in the EU Taxonomy and at EUR 77m accounts for 2% of the Lufthansa Group’s capital expenditure in the reporting year.
OpEx as defined by the EU Taxonomy comprises the direct expenses incurred in order to ensure the operational readiness of the taxonomy-eligible assets. This economic activity accounts for EUR 51m and thus 2% of the Group’s total OpEx expenses.
This economic activity has not been assessed for taxonomy alignment.
6.19 Passenger and freight air transport
This economic activity comprises the key business activities of the Lufthansa Group which relate to the Passenger Airlines ↗ Passenger Airlines business segment and Logistics ↗ Logistics business segment business segments.
The revenue recognised as taxonomy-eligible for this economic activity corresponds to the traffic revenue shown in the financial reporting. At EUR 29,926m, this represents 84% of the total revenue of the Lufthansa Group. ↗ T001 Key figures Lufthansa Group
The CapEx for this economic activity consists solely of CapEx (a) as defined by the EU Taxonomy. It includes expenditure on aircraft and reserve engines, rights of use to aircraft and reserve engines, advance payments for aircraft orders and aircraft under construction. At EUR 3,789m, this accounts for 88% of the Lufthansa Group’s total capital expenditure. ↗ T091 Aircraft and reserve engines
In connection with this economy activity, the OpEx comprises the direct expenses incurred to ensure the operational readiness of aircraft and engines of the Lufthansa Group airlines. Where these services were provided by Group companies rather than by the airlines themselves, consolidation effects are taken into account in the OpEx calculation. At EUR 2,601m, 91% of the Lufthansa Group’s total OpEx relates to this economic activity.
This economic activity has not been assessed for taxonomy alignment.
7.7 Acquisition and ownership of buildings
No reportable revenue is realised through the acquisition and ownership of buildings. The scope of this economic activity exclusively relates to internal requirements.
All the buildings and rights of use to buildings and installations covered by this economic activity were included in the calculation of the taxonomy-eligible CapEx. This CapEx is classified exclusively as category (c) according to the definition in the EU Taxonomy. CapEx was assessed to determine whether it meets the technical measurement criteria (compliance check). On balance it was found not to be taxonomy-aligned.
The taxonomy-eligible CapEX of EUR 236m corresponds to 5% of the Lufthansa Group’s total capital expenditure in the reporting year. This share was 2 percentage points lower than in the previous year. Since CapEx for this economic activity remained roughly the same, the decline is due to an increase in other CapEx.
The property maintenance work recognised as OpEx accounts for EUR 158m and thus 6% of the Group’s total OpEx in the reporting year.
| T047 | EU TAXONOMY – PROPORTION OF REVENUES FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Substantial contribution criteria | DNSH criteria (“Do No Significant Harm”) | MS | ||||||||||||||||||
| Economic activities | Code(s) | Absolute | revenue | Climate change mitigation | Climate change adaptation | Water & marine resources | Circular economy | Pollution | Biodiversity & ecosystems | Climate change mitigation | Climate change adaptation | Water & marine resources | Circular economy | Pollution | Biodiversity & ecosystems | Minimum safeguards | Taxonomy-aligned (A.1.) or taxonomy-eligible (A.2.) proportion of revenue, 2022 | Category “enabling activity” | Category “transitional activity” | |
| in EUR m | in % | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | in % | E | T | |||
| A. TAXONOMY-ELIGIBLE ACTIVITIES | ||||||||||||||||||||
| A.1 Taxonomy-aligned economic activities |
||||||||||||||||||||
| n/a | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | |||
| Revenues (A.1) | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | |||
| of which enabling | – | – | – | – | – | – | – | |||||||||||||
| of which transitional | – | – | – | – | – | – | – | |||||||||||||
| A.2 Taxonomy-eligible but not taxonomy-aligned economic activities |
||||||||||||||||||||
| n/a | – | – | – | – | – | – | – | – | ||||||||||||
| Revenues (A.2) | – | – | – | – | – | – | – | |||||||||||||
| Total (A.1 + A.2) | – | – | – | – | – | – | – | – | ||||||||||||
| B. TAXONOMY-NON-ELIGIBLE ECONOMIC ACTIVITIES |
||||||||||||||||||||
| Revenues of taxonomy-non-eligible Economic activities (B) |
35,442 | 100% | ||||||||||||||||||
| Total (A + B) | 35,442 | 100% | ||||||||||||||||||
| Note: Taxonomy-eligible (and, where applicable, taxonomy-aligned) revenue is realised by means of economic activities whose reporting in the tables is not required in the reporting year. | ||||||||||||||||||||
| T048 | EU TAXONOMY – PROPORTION OF CAPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Substantial contribution criteria | DNSH criteria (“Do No Significant Harm”) | MS | ||||||||||||||||||
| Economic activities | Code(s) | Absolute CapEx | Proportion of CapEx | Climate change mitigation | Climate change adaptation | Water & marine resources | Circular economy | Pollution | Biodiversity & ecosystems | Climate change mitigation | Climate change adaptation | Water & marine resources | Circular economy | Pollution | Biodiversity & ecosystems | Minimum safeguards | Taxonomy-aligned (A.1.) or taxonomy-eligible (A.2.) proportion of CapEx, 2022 | Category “enabling activity” | Category “transitional activity” | |
| in EUR m | in % | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | in % | E | T | |||
| A. TAXONOMY-ELIGIBLE ACTIVITIES | ||||||||||||||||||||
| A.1 Taxonomy-aligned economic activities |
||||||||||||||||||||
| n/a | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | |||
| CapEx (A.1) | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | |||
| of which enabling | – | – | – | – | – | – | – | |||||||||||||
| of which transitional | – | – | – | – | – | – | – | |||||||||||||
| A.2 Taxonomy-eligible but not taxonomy-aligned economic activities |
||||||||||||||||||||
| Acquisition and ownership of buildings | CCM 7.7 | 236 | 5% | EL | N/EL | N/EL | N/EL | N/EL | N/EL | 7% | ||||||||||
| CapEx (A.2) | 236 | 5% | 5% | 0% | 0% | 0% | 0% | 0% | ||||||||||||
| Total (A.1 + A.2) | 236 | 5% | 5% | 0% | 0% | 0% | 0% | 0% | 7% | |||||||||||
| B. TAXONOMY-NON-ELIGIBLE ECONOMIC ACTIVITIES |
||||||||||||||||||||
| CapEx of taxonomy-non-eligible economic activities (B) |
4,093 | 95% | ||||||||||||||||||
| Total (A + B) | 4,329 | 100% | ||||||||||||||||||
| Note: Additional taxonomy-eligible (and, where applicable, taxonomy-aligned) CapEx is realised by means of economic activities whose reporting in the tables is not required in the reporting year. | ||||||||||||||||||||
| T049 | EU TAXONOMY – PROPORTION OF OPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Substantial contribution criteria | DNSH criteria (“Do No Significant Harm”) | MS | ||||||||||||||||||
| Economic activities | Code(s) | Absolute OpEx | Proportion of OpEx | Climate change mitigation | Climate change adaptation | Water & marine resources | Circular economy | Pollution | Biodiversity & ecosystems | Climate change mitigation | Climate change adaptation | Water & marine resources | Circular economy | Pollution | Biodiversity & ecosystems | Minimum safeguards | Taxonomy-aligned (A.1.) or taxonomy-eligible (A.2.) proportion of OpEx, 2022 | Category “enabling activity” | Category “transitional activity” | |
| in EUR m | in % | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | in % | E | T | |||
| A. TAXONOMY-ELIGIBLE ACTIVITIES | ||||||||||||||||||||
| A.1 Taxonomy-aligned economic activities |
||||||||||||||||||||
| n/a | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | |||
| OpEx (A.1) | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | |||
| of which enabling | – | – | – | – | – | – | – | |||||||||||||
| of which transitional | – | – | – | – | – | – | – | |||||||||||||
| A.2 Taxonomy-eligible but not taxonomy-aligned economic activities |
||||||||||||||||||||
| Acquisition and ownership of buildings | CCM 7.7 | 158 | 6% | EL | N/EL | N/EL | N/EL | N/EL | N/EL | 8% | ||||||||||
| OpEx (A.2) | 158 | 6% | 6% | 0% | 0% | 0% | 0% | 0% | ||||||||||||
| Total (A.1 + A.2) | 158 | 6% | 6% | 0% | 0% | 0% | 0% | 0% | 8% | |||||||||||
| B. TAXONOMY-NON-ELIGIBLE ECONOMIC ACTIVITIES |
||||||||||||||||||||
| OpEx of taxonomy-non-eligible economic activities (B) |
2,688 | 94% | ||||||||||||||||||
| Total (A + B) | 2,846 | 100% | ||||||||||||||||||
| Note: Additional taxonomy-eligible (and, where applicable, taxonomy-aligned) OpEx is realised by means of economic activities whose reporting in the tables is not required in the reporting year. | ||||||||||||||||||||