What financial resources (CapEx) are allocated to the action plan?

1. Definition of Capital Expenditures (CapEx) Allocated to the Action Plan Capital Expenditures (CapEx) refer to the long-term investments required for the company to implement its decarbonization and climate-related action plans. These expenditures involve the acquisition, improvement, or development of assets that will contribute to the company’s sustainability goals over a long time horizon, such as investments in renewable energy infrastructure, green technology, and facility upgrades for energy efficiency. 2. Disclosure of CapEx Allocation to the Action Plan Total CapEx Allocation: Disclose the total amount of capital expenditures (CapEx) the company has allocated for implementing its climate-related action plan. This includes investments in: Renewable energy infrastructure (e.g., solar panels, wind turbines, energy storage systems). Energy-efficient equipment and technologies (e.g., LED lighting, electric vehicles, heat recovery systems). Carbon capture and storage (CCS) technologies. Green building certifications and upgrades (e.g., retrofitting facilities to meet green building standards). Breakdown of CapEx: Provide a breakdown of CapEx across different categories, such as: Renewable energy projects (e.g., investment in solar or wind farms). Energy efficiency improvements (e.g., machinery upgrades, HVAC system improvements). Sustainable transportation infrastructure (e.g., fleet electrification, charging stations). Carbon offset initiatives or emissions reduction technologies. 3. Reporting Considerations Financial Reporting Standards: Ensure that the CapEx allocation for climate action is consistent with financial reporting standards (e.g., IFRS, GAAP) and disclosed properly in the company’s financial statements. Clarify the timeframe for these investments (e.g., one-time capital outlay vs. multi-year investment projects). Annual and Long-term CapEx Plans: Provide details on the yearly CapEx allocation and long-term projections to meet climate and sustainability goals. Explain if CapEx plans are adjusted to accommodate new regulations, emerging technologies, or shifts in the company’s sustainability strategy. 4. Integration with Overall Business Strategy Climate Action and Business Strategy Integration: Discuss how the CapEx allocation is integrated with the overall corporate strategy and financial planning, ensuring alignment with long-term sustainability objectives. Explain how CapEx supports key business goals such as revenue diversification, risk mitigation, and regulatory compliance. Show how the sustainability agenda drives innovation and growth through investments in green technologies and infrastructure. 5. Expected Benefits and Outcomes Financial Returns and Cost Savings: Highlight the expected returns from CapEx investments, such as: Reduced energy costs through renewable energy generation or energy-efficient upgrades. Long-term savings from reducing reliance on fossil fuels or from carbon pricing. Climate Risk Mitigation: Discuss how these investments will help the company mitigate climate-related risks, such as energy price volatility, regulatory penalties, and physical risks associated with climate change. Competitive Advantage: Explain how these investments position the company as a leader in sustainability, meeting growing consumer demand for sustainable products and demonstrating corporate responsibility. Support for Sustainability Targets: Explain how the CapEx investments contribute directly to the company’s long-term climate goals (e.g., achieving net-zero emissions, reducing environmental impact). https://xbrl.efrag.org/e-esrs/esrs-set1-2023.html#4791