Arendals Fossekompani's EU Taxonomy reporting process with Factlines

Challenge

• The EU Taxonomy law requires investments to contribute to one of its six environmental objectives. Given the relevance of its investments, Arendals Fossekompani voluntarily reported to the EU Taxonomy in 2023 and 2024 to ensure alignment with legal requirements and drive long-term value creation for society.
• Arendals Fossekompani faced challenges due to the complexity of the EU Taxonomy requirements, which required a high level of familiarity with the law and detailed information across the diverse business activities represented by its portfolio companies.
• Managing EU Taxonomy reporting for Arendals Fossekompani's nine portfolio companies required significant coordination among various teams, including those led by the Chief Sustainability Officer (CSO) and Chief Financial Officer (CFO). The process of reporting eligible or aligned activities across the portfolio companies and keeping all key stakeholders updated on the progress has been challenging over the initial reporting steps.
• The first-year EU Taxonomy report relied heavily on consultancy, which involved numerous meetings and an extensive use of impractical and non-auditable Excel spreadsheets. The first report highlighted the importance of using digital tools to maintain knowledge within the team and reduce the time spent on EU Taxonomy reporting.