2.4.2 TICCS® to EU Taxonomy

First, we examine the list of activities relevant for each objective of the EU taxonomy which was taken from the EU Taxonomy Compass (European Commission, n.d.).

Two out of six environmental objectives of EU taxonomy are currently defined, but the EU taxonomy regulation foresees additional objectives to be defined in the future.

The EU taxonomy regulation defines the two objectives investments must achieve in order to be labelled as sustainable: Climate change mitigation and Climate change adaptation. These objectives cover broadly the same activities with some differences, as a result, which led us to tag additional items for climate change adaptation.

_TICCS®		_{EU Taxonomy Activities}
_TICCS®		_{Climate Mitigation}			_{Climate Adaptation}
_{Asset Code}	_{Industrial Asset Subclass}	_Objective	_{Activity Number}	_{Activity Code}	_Objective	_{Activity Number}	_{Activity Code}
_IC302010	_{Schools (Classes and Sports Facilities)}				_CA	_7.2	_CA7.2
_IC302020	_{Universities (Classes, Labs, Administration Buildings)}				_CA	_7.2	_CA7.2
_IC304030	_{Residential and Assisted Living}				_CA	_7.2	_CA7.2
_IC305030	_{Convention and Exhibition Centres}				_CA	_13.1	_CA13.1
_IC305040	_{Arts, Libraries, and Museums}				_CA	_13.2	_CA13.2

Each activity defined in the EU Taxonomy will have a corresponding NACE code and thus a corresponding TICCS® code.

Much like the approach we adopted in TICCS® to NACE mapping, only relevant infrastructure activities are considered.

The Taxonomy Compass assigns NACE codes to activities. This code assignment is not strictly followed in our mapping exercise since we need to be as granular as possible.

During the mapping process, several assumptions were made:

The EU taxonomy activities are tagged to the infrastructure that enables them. Roads are tagged to Vehicles (i.e. taxi, bus, land transport vehicles) while Taxi operation (NACE 49.32) and Other passenger land transport n.e.c. (NACE 49.39) are mapped to Road companies (IC6050). Similarly, Ships are tagged to Ports and Aircraft to Airports. This is partly done to enable Scope 3 assessment.

Activity 6.7 Inland passenger water transport is not tagged to Ports because these appear to be smaller docks and ferry terminals.
Activity 7.3 Installation, maintenance, and repair of energy efficiency equipment is ignored because it is not considered essential for infrastructure.
Activity 4.17 through 4.25, where heat/cooling is generated within other renewable projects such as solar etc., are tagged to the individual renewable technologies in TICCS and an additional NACE code D35.30 Steam and air conditioning supply is tagged to the corresponding TICCS code.

_TICCS®		_{EU Taxonomy Activities}
_TICCS®		_{Climate Mitigation}			_{Climate Adaptation}
_{Asset Code}	_{Industrial Asset Subclass}	_Objective	_{Activity Number}	_{Activity Code}	_Objective	_{Activity Number}	_{Activity Code}
_IC702010	_{Photovoltaic Power Generation}	_CM	_4.21	_CM4.21	_CA	_4.21	_CA4.21
_IC702020	_{Thermal Solar Power}	_CM	_4.21	_CM4.21	_CA	_4.21	_CA4.21
_IC704010	_{Biomass Power Generation}	_CM	_4.24	_CM4.24	_CA	_4.24	_CA4.24
_IC704020	_{Geothermal Power Generation}	_CM	_4.22	_CM4.22	_CA	_4.22	_CA4.22
_IC803010	_{District Cooling/Heating Network}	_CM	_4.15	_CM4.15	_CA	_4.15	_CA4.15

_{European Commission (n.d.).}_{EU Taxonomy Navigator}_._{https://ec.europa.eu/sustainable-finance-taxonomy/}