TABLE OF CONTENTS

• Overview
• Key Differences & Enhancements: EUT v1 vs. EUT v2
• Core Components in EUT v2
• Understanding the Assessment Logic
  • 1. Minimum Safeguard Assessment
  • 2. Activity Assessment & Environmental Objectives
  • 3. Final Alignment Verdict
• Understanding EUT Export Tables
  • 1. KPI Summary Table
  • 2. Activity-Level Tables (Turnover, CapEx, OpEx)

Overview

EU Taxonomy v2 (EUT v2) is Position Green’s updated EU Taxonomy framework. EUT v2 streamlines reporting by simplifying measure structures, expanding quantitative assessment support, and eliminating manual dashboard configurations.

Key Differences & Enhancements: EUT v1 vs. EUT v2

Upgrading from EUT v1 to EUT v2 introduces several key operational improvements:

Note on Terminology: In Position Green documentation, EUT v1 refers to any EU Taxonomy framework version released prior to EUT v2 (including Omnibus and pre-Omnibus setups).

Core Components in EUT v2

When upgrading to EUT v2, your configuration will rely on four primary components:

1. Minimum Safeguards
   A mandatory assessment evaluating Human Rights, Anti-Corruption, Taxation, and Fair Competition. Completion is a core prerequisite for achieving an Aligned taxonomy verdict.
   
   
2. Company Financial Total
   Captures company-wide, aggregated Turnover, CapEx, and OpEx (both material and non-material).
   
   
3. Activity Measures
   Activity-level questionnaires that measure Eligibility and Alignment, containing specific financial inputs and assessment criteria.
   
   
4. EUT Dashboards & Exports
   Connects reported company data directly to reporting views and official EUT Table exports without requiring extra setup.

Understanding the Assessment Logic

1. Minimum Safeguard Assessment

The Minimum Safeguard assessment uses parent-child logic:

• Parent Questions: Assess alignment with the OECD Guidelines for Multinational Enterprises and UN Guiding Principles on Business and Human Rights.
• Logic: Answering Yes to both parent questions results in an Aligned verdict. Answering No to either question triggers follow-up child questions to evaluate whether requirements are still satisfied through secondary details.

2. Activity Assessment & Environmental Objectives

Each Activity measure contains four key sections:

1. Financials (Turnover, CapEx, OpEx)
2. Substantial Contribution (SC)
3. Do No Significant Harm (DNSH)
4. Alignment Assessment

Triggering Rules for Objectives

When an Environmental Objective (EO) is selected (e.g., Climate Change Mitigation):

• The selected EO activates under Substantial Contribution.
• The remaining unselected EOs automatically activate under Do No Significant Harm.
• If multiple objectives are selected, all relevant objective sections trigger under DNSH. You will also be prompted to define a Primary Environmental Objective.

3. Final Alignment Verdict

An activity achieves a final verdict of Aligned only if:

• At least one selected Environmental Objective meets full alignment criteria.
• The Minimum Safeguard overall verdict is Aligned.

Understanding EUT Export Tables

The upgraded EU Taxonomy v2 module produces two types of export tables:

1. KPI Summary Table

• Provides high-level aggregated totals for Turnover, CapEx, and OpEx.
• Allocates data based strictly on the Primary Environmental Objective.

2. Activity-Level Tables (Turnover, CapEx, OpEx)

• Itemizes metrics activity by activity.
• Displays contributions to multiple Environmental Objectives if an activity impacts more than one.

Why percentages might differ: Because the KPI Summary Table assigns values using only the primary objective, while Activity-Level Tables show multiple objective contributions, individual percentage totals across objectives may vary between the two views. This behavior follows official European Union reporting specifications.