Universal Registration Document 2021

4.3 Priority #3: Fight against climate change

Chapter 4. Corporate social responsibility – Non-financial performance

4.3 Priority #3: Fight against climate change

4.3.1 Implementation of the European Taxonomy

As part of the implementation of the European Commission’s program to achieve carbon neutrality by 2050 in the European Union and the financing plan for the ecological transition, with the application from 2022 of the new European regulation known as the Green Taxonomy (EU Regulation 2020/852) and in accordance with Article 8, Publicis Groupe has carried out an analysis of its activities that may meet the expected eligibility criteria defined in the Climate Taxonomy Delegated Act (EU 2021/21393). The Groupe is required to publish the three required indicators on the description of eligible activities and for those ineligible: revenue, CapEx (capital expenditure) and OpEx (operational expenditure). Simplified provisions have been made for the first year of application, for the 2021 financial year, for so-called eligible activities. For the 2022 financial year, companies will have to publish the same indicators for sustainable activities said to be aligned with the Taxonomy, and their contribution to the achievement of the first two objectives.

The taxonomy provides for four criteria that an economic activity must meet to qualify as “ecologically viable” or sustainable:

  • make a substantial contribution to at least one of the environmental objectives;
  • comply with the technical selection criteria to be adopted under the regulations;
  • “Do not cause significant harm” DNSH to any of the other environmental objectives;
  • be carried out in compliance with minimum social and governance guarantees (reference to the OECD Guidelines for Multinationals and the United Nations Guidelines on Business and Human Rights, including the Declaration of the International Labor Organization (ILO) on fundamental principles and rights at work, the eight fundamental conventions of the ILO and the International Bill of Human Rights).

The European taxonomy has set a framework around six quantitative and qualitative objectives – at present only the first two have been clarified through the public technical documentation:

  1. climate change mitigation;
  2. adaptation to climate change:
  3. sustainable use and protection of aquatic and marine resources;
  4. transition to a circular economy, including waste recycling;
  5. pollution prevention and reduction;
  6. protection and restoration of biodiversity and healthy ecosystems.

The working method was as follows: a tandem team composed of the Finance Department for financial reporting, and the General Secretariat for non-financial reporting, steers this work. With the support of operational managers, the analysis of the Company’s activities was carried out on the basis of NACE codes and a more qualitative analysis of certain activities, with checks at local and central level.

Among the activities listed in the taxonomy, category J63.11 "Data processing, hosting and related activities" was selected as eligible. Other categories of activities were examined, but their operational reality did not allow them to be retained.

Epsilon’s activities were identified, representing 13.4% of Publicis Groupe’s 2021 revenue, with 41.2% of eligible CapEx. OpEx were not considered to be significant.

In millions of euros Total Eligible activities Non-eligible activities
Revenue Revenue

Total

11,738

Revenue

Eligible activities

1,575

Revenue

Non-eligible activities

10,163

% total revenue

% total revenue

Total

 

% total revenue

Eligible activities

13.4%

% total revenue

Non-eligible activities

86.6%

Capex Capex

Total

136

Capex

Eligible activities

56

Capex

Non-eligible activities

80

% total capex

% total capex

Total

 

% total capex

Eligible activities

41.2%

% total capex

Non-eligible activities

58.8%

Calculation method: the share of revenue used is aligned with the Groupe’s financial structure and with the Company’s accounting data at December 31, 2021. Publicis Groupe does not publish its data by business line; the data are therefore taken from an approach based on the NACE code of the activities concerned to define the numerators.