Electricity distribution company Caruna's business largely meets the criteria of EU Taxonomy for sustainable activities

PRESS RELEASE

02.12.2021 at 07:55
Caruna has carried out an assessment of the sustainability of its operations concerning mitigation of and adaptation to climate change. According to the assessment, 99.7% of Caruna's net sales and 99.1% of investments are in line with the EU taxonomy for sustainable activities. The assessment was carried out in accordance with the technical screening criteria for assessing the electricity transmission and distribution industry. Sustainability consulting company Third Rock assisted in the assessment.

The EU taxonomy is a classification system, establishing a list of environmentally sustainable economic activities. It helps investors to assess and compare investments and to direct funding to environmentally sustainable investments based on the assessment. The taxonomy includes sector-specific, technical screening criteria for the EU's six 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.

Electricity network investments and electricity distribution operations meet the sustainability criteria when they enable the decarbonisation of the energy system. Electricity network investments or revenue resulting from the carbon-intensive production of customers are not taxonomy-aligned. As far as nuclear power is concerned, the taxonomy criteria are still open, so the related investments cannot be counted as taxonomy-aligned at this stage.

'Our goal is to help both our customers and society to move effortlessly through the energy transition and start using clean energy. The results of the assessment of the sustainability of our operations strengthen our role in combating climate change,' says Piia Häkkinen, Sustainability Manager at Caruna.

The electricity network plays a key role in the energy transition

Climate change and the achievement of climate objectives require a transition of the entire energy system, i.e. the phasing out of fossil fuels and the shift to carbon-free energy sources, the electrification of energy consumption as well as new, smart solutions for the production, storage and use of energy. The energy transition requires a smart electricity network that both promotes climate change mitigation measures and adapts to the impacts of climate change.

The assessment was carried out in cooperation with Third Rock.

'When it comes to new regulation, it pays to be alert sooner rather than later. Many details are still open for the taxonomy, and the forerunners lead the way on how the open questions will be interpreted. The taxonomy can also be used internally to measure and improve one's own sustainability work,'  Veikko Sajaniemi from Third Rock sums up.

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