Nolato and the EU taxonomy for sustainable investments

The EU Taxonomy for environmentally sustainable investment (the Taxonomy Regulation) is a central part of the EU’s action plan for financing sustainable growth. The taxonomy aims to enable identifying and comparing investments that are essential for transitioning to a sustainable economy.

Nolato is covered by the EU’s CSRD, meaning that Nolato reports the extent to which the Group’s economic activities are taxonomy-aligned. 

In order for an economic activity to be classed as sustainable under the taxonomy, the following applies:

Contribute to environmental objectives

The EU taxonomy is based on six priority environmental objectives – climate change mitigation, climate change adaptation, the sustainable use and protection of water and marine resources, the transition to a circular economy, pollution prevention and control, and the protection and restoration of biodiversity and ecosystems.

The operations should contribute substantially to at least one of these six priority environmental objectives. The contribution can be made through internal measures and/or by the company helping customers or other stakeholders to contribute to one of the objectives.

Do no significant harm to other environmental objectives

Fulfilling one or more of the taxonomy’s environmental objectives must not be done at the expense of other environmental objectives.

Satisfy basic principles and standards

Activities must be conducted in accordance with international conventions and guidelines, including those concerning work environment and human rights.

Minimum safeguards

Besides assessing whether Nolato’s activities meet the criteria based on the taxonomy regulation and that they cause no significant harm, it must also be ensured that the Group has procedures and processes in place for dealing with human rights, anti-corruption and bribery.

Nolato has performed an analysis for each minimum safeguards criterion and and assessed its procedures. Information on how the Group works with human rights and due diligence is provided in the section for S1 and S2. Information on anti-corruption and bribery is provided in the section for G1.

Meet technical screening criteria

In order for an activity or product to be considered sustainable under the taxonomy, it must meet the technical screening criteria set out in the regulation.

Forthcoming activities

Nolato complies with the requirements of Delegated Act (EU) 2021/2139 and applies the amendments introduced in Delegated Act (EU) 2026/73. Nolato also complies with the accounting principles set out in Delegated Act (EU) 2021/2178.

In 2023, the European Commission adopted technical screening criteria for the four remaining environmental objectives – Water and marine resources, Circular economy, Pollution prevention and control and Biodiversity.

Through the addition of the Circular economy environmental objective, Nolato’s production of plastic packaging products is also taxonomy-eligible, in the sector with NACE code 22.22. In 2024, Nolato performed a review of taxonomy-eligible economic activities, and concluded that Nolato’s manufacture of pharmaceutical packaging at two of the subsidiaries, and plastic packaging at two more subsidiaries, are in scope. However, this part of Nolato’s total operations falls below the 10% threshold for sales, capital expenditure and operating expense alike, and is therefore considered non-material. Nolato therefore applies the simplification rules and does not perform a detailed assessment of this part of the operations under the EU taxonomy.

However, because there are also signed rights-of-use agreements for buildings, the threshold for capital expenditure is exceeded, and this capital expenditure is thus reported in accordance with the EU taxonomy. In addition, several of Nolato’s products and product groups also contribute to circular economy, reduced climate impact and the Group’s revenue, but are not currently taxonomy-eligible.

In summary, 16% of Nolato’s capital expenditure is taxonomy-eligible. Of this amount, a total of 4% of the activities included in the capital expenditure are considered non-material.

Capital expenditure

Nolato’s recognition of capital expenditure refers to investments in capitalized intangible assets and property, plant and equipment.

In 2025, Nolato entered into new rights-of-use agreements for factory buildings, which are included in capital expenditure for the full year 2025. These are presented in Table 2 as acquisitions of rights of use for buildings under activity code CCM 7.7.

These buildings generally have a lower energy rating, partly due to less extensive insulation and otherwise simpler design. In view of this, the rights of use concerned do not meet the technical screening criteria of the EU taxonomy for environmentally sustainable economic activities and are therefore not classified as taxonomy-aligned.