EU sustainable finance taxonomy

The EU Taxonomy Regulation requires companies falling within the scope of the Non-Financial Reporting Directive to report certain indicators on the extent to which their activities are sustainable as defined by the EU Taxonomy Regulation. There are six key objectives in the EU Taxonomy Regulation, out of which the first two are climate change mitigation and climate change adaptation.

Climate Change Taxonomy eligible activities

Most of Vaisala’s activities fall under the NACE code C26.51 (Manufacture of instruments and appliances for measuring, testing and navigation), which is not yet covered by the climate change taxonomy. According to Vaisala’s analysis of the current version of the EU Climate Change Taxonomy, 13.2% of Vaisala’s net sales come from taxonomy eligible activities, while 86.8% of Vaisala’s net sales come from activities that are not yet covered by the taxonomy. Taxonomy eligible OPEX was 9.8%. Vaisala does not have any CAPEX associated with taxonomy-aligned activities.

Activity included in the taxonomy	Vaisala’s taxonomy eligible activity	Taxonomy eligible net sales	Taxonomy eligible OPEX*
3.1 Manufacture of renewable energy technologies	Manufacture of remote wind sensing solutions for the wind energy sector: Vaisala manufactures remote wind sensing solutions that enable wind power operators to select the optimal site for their wind parks, as well as monitor, predict, and plan operations, hence increasing the performance of their wind parks. Manufacture of measurement instruments for the biogas process: Vaisala manufactures multigas measurement instruments that help biogas and biomethane producers minimize methane slip and gives them the ability to control their process and increase their biogas yield and quality.	7.4%	7.6%
3.5 Manufacture of energy efficiency equipment for buildings	Manufacture of HVAC instruments for humidity, CO2, and temperature measurements, which are typically incorporated into building automation and control systems that help to increase energy efficiency in buildings.	5.8%	2.3%

Activity included in the taxonomy

Vaisala’s taxonomy eligible activity

Taxonomy
eligible net sales

Taxonomy eligible OPEX*

3.1 Manufacture of renewable energy technologies

Manufacture of remote wind sensing solutions for the wind energy sector: Vaisala manufactures remote wind sensing solutions that enable wind power operators to select the optimal site for their wind parks, as well as monitor, predict, and plan operations, hence increasing the performance of their wind parks.

Manufacture of measurement instruments for the biogas process: Vaisala manufactures multigas measurement instruments that help biogas and biomethane producers minimize methane slip and gives them the ability to control their process and increase their biogas yield and quality.

7.4%

7.6%

3.5 Manufacture of energy efficiency equipment for buildings

Manufacture of HVAC instruments for humidity, CO2, and temperature measurements, which are typically incorporated into building automation and control systems that help to increase energy efficiency in buildings.

5.8%

2.3%

Activities that should be considered for the future versions of the Climate Change Taxonomy

Vaisala views that the Weather and environment business area’s products and services have a significant contribution to climate change adaptation, and hence, a great share of Vaisala’s net sales should be included in the next version of the screening criteria for Climate change adaptation.

Meteorological observations, weather forecasting services and related decision support systems form an essential infrastructure to monitor climate change and help societies adapt to it. They touch many parts of society, including national meteorological services, climate researchers, aviation, road transportation, maritime operations, renewable energy producers, and urban environments.

Meteorological instruments for meteorological agencies and climatological research

Meteorological instruments form the basis for weather forecasting and climatological research. Accurate weather observations drive the global numerical weather prediction models that are used by national meteorological services to predict weather and issue severe weather warnings to help societies adapt to climate change. Reliable long-term weather observation data series are necessary to validate climate change and to adjust climatological models for greater prediction accuracy.

Meteorological instruments, systems, and forecasts for weather critical operations

Weather observations and precision weather forecasts for roads, aviation and maritime operations are used by authorities, contractors, air traffic controllers and traffic management systems to ensure the resilience of the critical transportation grids in the face of severe weather and climate change. Furthermore, local weather observations and weather forecasts are essential to drive precision farming efforts and maintain food production capacity to adapt to climate change.

Professional services for meteorological infrastructure and capability development projects

Large meteorological infrastructure and capability building projects modernize the national meteorological observation infrastructure and build weather forecasting capability for nations that are increasingly challenged by severe weather and climate change.