A Taxonomy-non-eligible activity is any activity that is not described in the Climate or Environmental Regulation.

Method of calculation and background information for key performance indicators

Sales revenue

The denominator includes the sales revenue of SFG (in the Annual Report on p. 26) in accordance with the accounting policies set out in Note 2 to the consolidated financial statements.
SFG has analysed its economic activities and sales for 2023 and has concluded that the entire sales revenue of SFG group is related to Taxonomy-non-eligible activity. Thus, no sales revenue is included in the numerator for Taxonomy-eligible or Taxonomy-aligned activity.

Capital expenses

The denominator includes additions to fixed assets during the financial year before depreciation and any revaluations other than changes in fair value. The following additions are included in the denominator, as set out in Note 13 to the consolidated financial statements - intangible assets (Annual Report p. 50); Note 14 - investment properties (Annual Report p. 51); and Note 15 - property, plant, and equipment (Annual Report p. 52) and right-of use assets (Annual Report p. 53).

In 2023 there were no Taxonomy-aligned capital expenses.
SFG has not identified any capital expenses in its economic activities for 2023 that would be related to Taxonomy-eligible activities. All capital expenses of SFG for 2023 are related to Taxonomy-non-eligible activity. Thus, no capital expenses are included in the numerator for Taxonomy-eligible or Taxonomy-aligned activity.

Operating expenses

The following non-capitalised costs have been included in the denominator in accordance with point 1.1.3.1 of Annex I to the Disclosure Regulation:

• research and development costs,

• building renovation measures costs,

• short-term lease costs,

• maintenance and repair costs,

• any other direct expenditures relating to the day-to-day servicing of assets of property, plant and equipment by SFG or third party to whom activities are outsourced that are necessary to ensure the continued and effective functioning of such assets.

In 2023 SFG incurred no operating expenses in relation to Taxonomy-aligned or Taxonomy-eligible economic activities. All operating expenses of SFG in 2023 are related to Taxonomy-non-eligible activity. Thus, no operating expenses are included in the numerator for Taxonomy-eligible or Taxonomy-aligned activity.

Assessment of compliance with the Taxonomy Regulation

In order to identify Taxonomy-eligible economic activities, the compliance of all activities of all SFG group companies with the descriptions of activities and NACE codes set out in the Climate and Environment Regulation were assessed. While there is a high degree of overlap between the descriptions of activities related to climate change mitigation and adaptation objectives in the Climate Regulation, according to clause 18 of Commission Notice C/2023/305, for the purposes of adaptation to climate change, only activities carried out in accordance with the undertaking’s climate adaptation plan can be considered as Taxonomy-eligible. As SFG has not put in place a climate adaptation plan, none of SFG’s activities have been considered Taxonomy-eligible from the point of view of adaptation to climate change.

SFG has not identified any activities, costs or portions of revenue in its business that could be classified as relating to Taxonomy-aligned or Taxonomy-eligible economic activities.

Minimum safeguards

In its activities, the SFG ensures compliance with international guidelines and Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises, International Labour Organisation’s Declaration on Fundamental Principles and Rights at Work and the key ILO conventions, and the UN Universal Declaration of Human Rights through the implementation of the due diligence process.

Explanations to report forms

No changes in accounting methods have been made during the reporting period.

The report forms are submitted in accordance with the forms specified in the Disclosure Regulation. The rows and sections not relevant for SFG are marked in black, primarily the Disclosure Regulation, in regard to Taxonomy-eligible but not Taxonomy-aligned activities, leaves it up to each reporting party to decide whether to fill columns 5-17. SFG has decided not to fill these and they are marked in black, which means non-applicable for the purposes of the report. Furthermore, as SFG had no Taxonomy-aligned revenue or costs in 2023, columns 20 (Category (enabling activity)) and 21 (Category (transitional activity)) and rows corresponding to those, have been excluded from the tables for the purposes of simplifying the table layout and making it more user-friendly.

Proportion of turnover from products or services associated with Taxonomy-aligned economic activities – disclosure covering the year 2023

Proportion of capital expenses (CapEx) from products or services associated with Taxonomy-aligned economic activities – disclosure covering the year 2023

Proportion of operating expenses (OpEx) for products or services associated with Taxonomy-aligned economic activities – disclosure covering the year 2023