EU Taxonomy

This section is a summary of the total EU taxonomy submission. As reference see for the extensive explanation of eligibility and alignment approaches, of adherence to Do Not Significant Harm (DNSH) criteria and the required EU taxonomy tables the Sustainability Statement Annex.

Since January 1, 2021, Arcadis has been subject to the EU Environmental Taxonomy Regulation 2020/852, requiring annual disclosure of its economic activities to align with the EU's environmental objectives. The regulation focuses on six objectives: climate change mitigation, climate change adaptation, sustainable use of water and marine resources, transition to a circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems. The assessment includes both eligibility (whether activities defined in the EU Taxonomy occur) and alignment (meeting the taxonomy's technical criteria).

Arcadis emphasizes sustainability in its consultancy-focused business model, which includes Project and Program Management, Design and Engineering, and Commercial Procurement strategies. However, its consultancy services are often not recognized under the EU Taxonomy, which favors physical implementations.

For FY23, the eligibility assessment covered all six objectives, but alignment assessment was only required for climate-related objectives. Starting this year, the alignment assessment applies to all six objectives, incorporating both solution-level and group-level, revenue, capital expenditures, and operational expenditures.

Arcadis activities are categorized into Solutions. During the eligibility screening, all solutions are assessed for eligible activities in collaboration with core team members, and solution and project leaders and finance personnel whenever additional information is necessary. Separate engagements were carried out for recent acquisitions and for countries that are not on our main ledger system. Information about IFRS 16 vehicle leases and buildings is centralized for all units. These are therefore assessed at the group level rather than the solution level. The summarized results are that 32.5% of our gross revenues are eligible with EU Taxonomy activities. Extra analysis led to a retrospective restatement of the 2023 eligible revenues, which now are on 34.8% of our 2023 gross revenues. 

All eligible activities were analyzed for alignment. The substantial contribution and DNSH criteria for each activity were considered. Many Minimum Safeguards criteria have been met, but one of the various tests led to the conclusion that the alignment criteria are not yet fully reached. The ongoing effectiveness tracking of our adherence to UN Global Principles on Human Rights is on several ways already in place, but not yet on all aspects, and by that not meeting all alignment criteria over the year 2024 and retrospectively also for 2023, and for both years the alignment figures are reduced to zero. Opex was analyzed but given the small size of the results it was labeled as immaterial. 

A climate risk and vulnerability study has been conducted by the specialized company Jupiter on behalf of Arcadis. This study started in 2022 with analysis of 124 offices, followed by 44 acquired offices and 86 of the largest project sites. In 2024 another 75 project sites, and a set of 82 offices of Arcadis were analyzed as well. Arcadis was found not to be vulnerable to any significant climate change hazards as the business is spread over a wide variety of geographies, and offices are on locations that are not directly exposed to high risk climate hazards. Furthermore, Arcadis has defined physical and non-physical solutions applicable in the short-term, mid-term, and long term. These two elements combined allow Arcadis to be aligned with the requirements of the generic criteria for Do No Significant Harm criteria (DNSH) to climate change adaptation.