1.The exposures to central governments, central banks and supranational issuers shall be excluded from the calculation of the numerator and denominator of key performance indicators of financial undertakings.
Where an investee undertaking has issued the environmentally sustainable bonds or debt securities with the purpose of financing specific identified activities, financial undertakings shall discount the KPI of the investee undertaking accordingly to avoid double counting.
2.3. ExposuresDerivatives, tocash undertakingsand cash equivalents, on demand interbank loans, and other categories of assets that are not obligedreferred to publish non-financial information pursuant toin Article 19a7(6), orincluding 29agoodwill ofand Directive 2013/34/EUcommodities, shall be excluded from the numeratordenominator of key performance indicators of financial undertakings.
3.All exposures to undertakings that are not obliged to include sustainability information in their management report pursuant to Article 19a or Article 29a of Directive 2013/34/EU, or that do not belong to groups of undertakings that are obliged to include sustainability information in their management report pursuant to Article 19a or Article 29a of Directive 2013/34/EU, during the financial year, shall be excluded from the denominator of key performance indicators of financial undertakings.
2. DerivativesBy way of derogation from the first subparagraph, exposures to Special Purpose Vehicles (SPVs) shall be excludedincluded fromin the numeratordenominator of key performance indicators of financial undertakings.undertakings where those SPVs finance:
(a)entities subject to Article 19a or 29a of Directive 2013/34/EU or entities that belong to a group where the parent of the SPV is subject to Article 29a of that Directive;
(b)assets operated by entities subject to Article 19a or 29a of Directive 2013/34/EU or entities that belong to a group where the parent of the SPV is subject to Article 29a of that Directive.
6. FinancialBy way of derogation from the first subparagraph, financial undertakings shallmay provide for a breakdowninclude in the numerator where applicable and denominator of thetheir key performance indicators for:the following exposures:
(a)exposures to undertakings as referred to in the first subparagraph where those undertakings report on a voluntary basis the key performance indicators in accordance with Annexes I to XI to this Regulation;
(b)exposures to undertakings referred to in the first subparagraph whose use of proceeds is known.
Where the third subparagraph applies, the exposures referred to in that subparagraph shall be included in the numerator of the key performance indicators of financial undertakings as follows:
(a) Exposuresexposures whose purpose is notreferred to financein specificthe identifiedthird activitiessubparagraph, point (a), shall be included in the numerator of key performance indicators of financial undertakings weighted by the turnoverkey KPIperformance andindicators CapExreported KPIon ofa thevoluntary issuerbasis by their counterparties in accordance with the methodology laid down in Annexes III, V, VII, and IX.IX to this Regulation;
(b)4. Withoutexposures prejudicereferred to paragraph 1, environmentally sustainable bonds or debt securities within the purposethird ofsubparagraph, financingpoint specific identified activities that are issued by an investee undertaking(b), shall be included in the numerator of key performance indicators of financial undertakings up to the full value of Taxonomy-alignedtaxonomy-aligned economic activities that the proceeds of those bonds and debt securitiesexposures finance, on the basis of information provided by thetheir investee undertaking.counterparties.
5.Where the technical screening criteria laid down in the delegated acts adopted pursuant to Articles 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) of Regulation (EU) 2020/852 are amended, special purposethe loans and the instruments referredwhose touse paragraphof 4proceeds is known and that are held by financial undertakings that finance Taxonomy alignedtaxonomy-aligned economic activities or assetsassets, shall in the absence of alignment of the financed economic activities or assets with the amended technical screening criteriacriteria, be reported as such under this Regulation until five years after the date of application of the delegated acts that amend those technical screening criteria.
6.Financial undertakings shall provide for a breakdown in the numerator and denominator of the key performance indicators, where applicable, for:
(a)exposures to and investments in non-financial undertakings;
(b)exposures to and investments in financial undertakings;
(d)exposures to and investments in financial undertakings established in the Union that are not subject to an obligation to publish a non-financial statement pursuant to Articles 19a and 29a of Directive 2013/34/EU referred to in paragraph 2;
(e)exposures to and investments in non-financial undertakings established in a third country that are not subject to an obligation to publish a non-financial statement pursuant to Articles 19a and 29a of Directive 2013/34/EU;
(f)exposures to and investments in financial undertakings referred established in a third country that are not subject to an obligation to publish a non-financial statement pursuant to Articles 19a and 29a of Directive 2013/34/EU;
7.Financial undertakings may use estimates for assessing the Taxonomy-alignment of their exposures to undertakings referred to in paragraph (6), points (e) and (f), where those financial undertakings are able to demonstrate compliance with all criteria of Article 3 of Regulation (EU) 2020/852, except with the criteria laid down in Article 3, point (b) of that Regulation.
Financial undertakings shall formalise, document and make public the methodology upon which such estimations are based, including the approach and research methodology, the main assumptions and precautionary principles used.
Financial undertakings shall disclose:
(a)the proportion of Taxonomy-aligned exposures based on estimates separately from their key performance indicators disclosed pursuant to this Regulation;
(b)the measures taken and the period of time necessary to demonstrate compliance with the criteria laid down in Article 3, point (b) of Regulation (EU) 2020/852.
(c)(h) othertaxonomy-eligible exposures andto investments.retail clients;
(d)(g) exposures to andlocal investments in derivatives;governments;
(e)real estate assets;
(f)exposures to and investment in undertakings as referred to in Article 7(3), third subparagraph.
8.When reporting the key performance indicators in accordance with this Regulation, financial undertakings shall include in the reporting templates:
(a)exposures and investments financing non-material economic activities of their counterparties that are non-financial undertakings reported in accordance with Article 2, paragraphs (1a) and (1b) by weighing their exposures to those counterparties with the proportion of those non-material economic activities in the denominator of key performance indicators of their counterparties;
(b)exposures to their counterparties that are financial undertakings by weighing those exposures with the proportion in the denominator of key performance indicators of those counterparties of activities that are not assessed by those counterparties in accordance with this paragraph;
(c)activities, exposures and investment that the reporting undertakings consider to be non-material in accordance with Article 3(1a), Article 4(1a) to (1e), Article 5(1a) and (1b), Article 6(1a) and (1b), as applicable;
(d)(c) exposures to and investmentsinvestment in non-financialfinancial undertakings establishedthat report in theaccordance Unionwith thatArticle are not subject to an obligation to publish a non-financial statement pursuant to Articles 19a and 29a7(9) of Directivethis 2013/34/EU;Regulation.
9.Until 31 December 2027, with the exception of Article 8(2) and this paragraph 9, Articles 2 to 8 shall not apply to financial undertakings that do not claim under Articles 3 and 9 of Regulation (EU) 2020/852 that they have economic activities that are associated with that Regulation, provided that those undertakings disclose the information referred to in Article 8(1) of that Regulation by including in their management report the following statement:
‘No activities are claimed as being associated with economic activities that qualify as environmentally sustainable under Articles 3 and 9 of Regulation (EU) 2020/852 (Taxonomy Regulation)’.