Data collection from entities

Involving Subsidiaries or Business Units

The first step in the taxonomy module is creating a taxonomy report. This is done under the “Reporting” menu item. By clicking on the “New Report” button, you can create your first taxonomy report.

At this step, you will need to make an important decision: Do you want to collect data from subsidiaries, or do you already have all the necessary information at the group level? Here’s an explanation:

For example, if you don’t have any subsidiaries, or if all financial data (revenue, CapEx, OpEx), including that of any subsidiaries, is available at the group level and there is sufficient knowledge of the business activities of all companies, you can decide not to collect data from subsidiaries. However, if you have subsidiaries whose financial data you do not have directly or subsidiaries with business activities that differ significantly from your own and for which you do not have detailed information, you should involve subsidiaries.

Setting Up Entities

If you plan to collect data from multiple entities for your taxonomy report or want to include them in your group taxonomy calculation, you will need to set them up in the organizational structure and assign managers and approval authorities.

EU Taxonomy Assessment with Subsidiaries

The process for conducting a taxonomy assessment involving subsidiaries closely mirrors the process described for the parent company, but several of the steps mentioned are not only performed at the group level but also by the subsidiaries. This includes, in particular, the steps related to taxonomy eligibility and alignment, as well as adding financial data. The minimum safeguards are answered at the group level.

The module utilizes the organizational structure, where you, as a user, can assign responsible managers (and optionally, approval authorities) for the taxonomy module in all entities. Once you select data collection from entities or subsidiaries at the start of the taxonomy module, these managers will receive queries after completing the minimum safeguards step to proceed with the following steps themselves:

• Taxonomy eligibility
• Taxonomy alignment
• Adding financial data

Afterward, the data inputs from the subsidiaries will be aggregated, giving you an automatic group-level overview of your taxonomy eligibility and alignment.

Structure of the Step Sequence at the Group Level:

Setup of Data Collection, including Deadline and Selection of Entities:

Overview and initiation of data collection, including a message to all recipients:

The subsidiaries will then follow the workflow described above for the parent company level, determining taxonomy-eligible activities, assessing alignment, adding financial data, and sending their data back to you.