CapEx plan to expand taxonomy alignment
A CapEx plan within the meaning of Delegated Regulation (EU) 2021/2178 is deemed to exist if its objective is to expand an undertaking’s taxonomy alignment. This may be achieved either by transferring taxonomy-eligible to taxonomy-aligned activities or by expanding activities that have already been classified as taxonomy-aligned. A CapEx plan is reported at the level of the respective economic activity and must be approved by an undertaking’s management body – i.e., the Executive Board of thyssenkrupp – or a delegated body.
The thyssenkrupp CapEx plan includes capital expenditure intended to transition the group’s economic activity CCM 3.9 “Manufacture of iron and steel” from taxonomy eligibility to taxonomy alignment in respect of the environmental objective of climate change mitigation, thus enabling low-carbon steel production within the meaning of the EU Taxonomy.
The CapEx plan was approved by the Executive Board on February 10, 2023.
In the 2024 / 2025 reporting year, the project schedule was firmed up in the course of ongoing detailed planning. According to current planning, capital expenditure is envisaged until fiscal year 2028 / 2029. The adjustment of the schedule results from the complexity of switching various production steps to low-carbon steel production and justifies extending the term of the CapEx plan beyond five years. It has no impact on the fundamental ability of the new production technology to satisfy the technical screening criteria for the underlying economic activity. The budget for the CapEx plan was updated to reflect the change in planning.
The CapEx plan is still deemed approved by the Executive Board.
The adjustments made had no impact on the prorated capital expenditures allocated to the CapEx plan and published in previous reporting years.
In the context of the CapEx plan, net expenditure of €132 million was incurred in fiscal years 2022 / 2023 to 2023 / 2024. Capital expenditure amounted to €90 million in the reporting year. Previously, further capital expenditure of €542 million was envisaged over the remaining term of the CapEx plan. As a result of the aforementioned adjustment of the plan, this figure has increased by an amount in the mid three-digit million euro range.
The capital expenditure disclosed in the CapEx plan – both for the reporting year and for the entire term of the plan – has been adjusted for public-sector funding received (see also Note 05 “Property, plant and equipment” and Note 12 “Other non-financial assets” in the consolidated financial statements).