Orano - Annual Activity Report 2024 160 4 SUSTAINABILITY STATEMENT Environmental information ● sustainable use and protection of water and marine resources; ● transition to a circular economy; ● pollution prevention and control; and ● protection and restoration of biodiversity and ecosystems. An eligible activity will be said to be “aligned” with the Taxonomy criteria if it meets the following requirements: ● it contributes substantially to the objective in question according to the technical review criteria defined for this activity; ● it does not cause significant harm to any of the five other environmental objectives, based on another set of technical review criteria; and ● it is exercised in compliance with the minimum guarantees in terms of protection of human rights, the fight against corruption, fraud (including tax fraud) and anti-competitive practices. Orano’s purpose focused on the preservation of the climate, resources and health (see Section 4.1.3) is consistent with the objectives of the Taxonomy. In accordance with the aforementioned regulation, companies present three indicators from the consolidated financial statements: the share of turnover, capital expenditure (“CapEx”) and operating expenses (“OpEx”) associated with economic activities eligible for the Taxonomy and aligned with its criteria. Methodology The Finance Department and the Commitment Department identify the activities payable to the Taxonomy with the business units according to the European Union classification system for economic activities defined in all published regulatory texts. According to this analysis, the only eligible turnover is the desalination of seawater in Namibia (activity 5.1 operation of collection, treatment and distribution networks), rail transport (activities 6.2) and road freight (activity 6.6). These activities contribute to the mitigation of climate change. The group’s main activities (uranium mining, conversion and enrichment, transport of nuclear materials, recycling of used fuel into MOX fuel, etc.) are not eligible for the Taxonomy despite their contribution to the production of nuclear electricity, itself eligible for Taxonomy. In addition, each year, the Finance, Commitment and Performance departments as well as the program departments of the business units analyze the investments for the financial year in order to identify those considered eligible according to the texts (individual measures). The analysis of compliance with the technical criteria, the absence of significant generic or specific harm to the six environmental objectives and compliance with the minimum guarantees makes it possible to determine the alignment of eligible activities. Indicators Turnover, capital expenditure (“CapEx”) and operating expenses (“OpEx”) that are eligible and aligned with the Taxonomy criteria are taken from the group’s information systems. Revenue indicator The revenue indicator is the ratio of revenue from activities eligible (or aligned) to the Taxonomy (numerator) to the group’s consolidated revenue (denominator). Consolidated revenue is disclosed in the Section 6.1 Consolidated financial statements in the annual report. The accounting principles concerning turnover are described in the Note 1.3.6 of Chapter 6. Operational expenditure indicator (OpEx) The types of OpEx considered by the Taxonomy correspond to noncapitalized Research and Development expenses, expenses related to short-term leases as well as maintenance, upkeep and repair costs for industrial processes and buildings. Given the small share of the group’s eligible activities and the aforementioned types of OpEx representing less than 10% of the group’s total OpEx, Orano has decided to take advantage of the publication exemption. Capital expenditure indicator (CapEx) The CapEx indicator is defined as the amount of investments eligible (or aligned) for the Taxonomy (numerator) for the year divided by the total amount of investments for the year (denominator). The amount of investments consists of acquisitions of property, plant and equipment (Note 11 of the consolidated financial statements), intangible assets (Note 10 of the consolidated financial statements) as well as assets related to rights of use (Note 12 of the consolidated financial statements). The accounting principles concerning investments are described in Note 1.3.7 Valuation of property, plant and equipment and intangible assets in the notes to the consolidated financial statements in Section 6.1. A reconciliation between the amount of investments used for this indicator (denominator) and the consolidated financial statements is shown below the CapEx table. The group has identified the investment expenses that can be considered as eligible activities corresponding in particular to the “individual measures” put in place to reduce the carbon emissions of its activities. Review of activity alignment criteria In order to assess the alignment of its activities and individual measures (CapEx), each group entity examined compliance with the substantial contribution criteria provided for by the texts. When documentation by external experts to justify compliance with the technical criteria for a substantial contribution was not available, the group considered that the activity was not aligned.
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