Universal Registration Document 2024

4.2.7 Alignment with the European Taxonomy

4.2.7.1 Regulatory framework

The European regulation known as the Green Taxonomy (EU Regulation 2020/852) is part of the implementation of the action plan for sustainable finance, whose objective is to achieve carbon neutrality by 2050.

The Taxonomy Regulation introduces reporting obligations for non-financial and financial companies based on a classification to establish environmentally sustainable economic activities. This classification aims, in particular, to redirect flows towards so-called sustainable investments.

The European Taxonomy has set a framework around six objectives that are covered under a delegated regulation of the European Commission:

1. climate change mitigation;
2. climate change adaptation;
3. sustainable use and protection of water 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.

Publicis Groupe must carry out an analysis of its activities that can meet the expected eligibility criteria defined in the Climate Taxonomy Delegated Act (EU 2021/21393) as well as the alignment criteria.

The Groupe is required to publish the three required indicators on the description of eligible activities and for those ineligible: turnover, CapEx (capital expenditure) and OpEx (operational expenditure).

An activity is said to be “eligible” when it is included in the evolving list of activities appearing in the delegated acts of the Taxonomy Regulation insofar as it contributes to the six aforementioned environmental objectives.

The analysis of the Company’s activities was carried out on the basis of NACE codes and completed by a qualitative review of certain activities, with checks at local and central level, to more precisely identify eligible activities. The European taxonomy primarily covers the activities with the greatest impact on the climate. Under current regulations, several of the Groupe’s activities, such as advertising creation and communication, are not eligible. Among the activities listed in the Taxonomy, one category has been retained as eligible to date:

“Data processing, hosting and related activities”.

The methodology used for Taxonomy reporting is explained in Section 4.1.2 “CSR Reporting Methodology” of this document.

4.2.7.2 Eligible activities

Revenue

In 2024, the Groupe’s turnover amounted to euro 16,030 million and corresponds to the amount shown in the Groupe’s consolidated income statement.

Eligible turnover amounts to euro 1,915 million (11.9% of the Groupe’s revenue) and corresponds to the Groupe’s activities classified in the “Data processing, hosting and related activities” category. Epsilon’s activities are the main ones concerned.

Capital expenditure (“CapEx”)

In 2024, capital expenditure related to the Groupe’s property, plant and equipment and intangible assets amounted to euro 238 million and corresponds to the amount shown in the Groupe’s statement of cash flows. The share of capital expenditure related to eligible turnover amounts to euro 98 million and corresponds to the investments made as part of the development of the Epsilon platforms.

CapEx also includes increases in right-of-use assets related to real estate leases for euro 352 million (see Note 25 to the 2024 consolidated financial statements). These investments are 100% eligible.

As a result, the amount of eligible CapEx in 2024 amounted to euro 450 million, i.e. 76.4% of the Groupe’s CapEx.

Operating expenses (“OpEx”)

In 2024, the metric relating to operating expenses as defined by the Taxonomy mainly concerns office upkeep and maintenance expenses. However, this metric is considered irrelevant for Publicis given its insignificant impact.