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How do I determine whether my organisation is active in a high-impact climate sector (HICS)?

Atlas Metrics recommends reading the following FAQs first:

What is the primary economic activity of my organisation?

What are High-impact climate sectors (HICS)?

What are NACE and NACE Codes?

 

Companies are active in High-impact climate sectors (HICS) when their economic activity generates revenue from a HICS.

Determining whether your organization is active in a high-impact climate sector depends on whether your organization’s NACE code is listed within Sections A to H and Section L of the NACE classification system.

Please note that the overarching industry, sector, or market that your organisation operates in (or is associated with) as a provider of products or services does not determine whether your organisation is active in a high-impact climate sector. Please see the examples below.

Steps to determine whether your organisation is active in a high-impact climate sector:

  1. Determine what your primary economic activity is (Further guidance: What is the primary economic activity of my organisation? ).

  2. Identify the NACE code of your primary economic activity by consulting the NACE Classification or NACE Manual (links in the glossary below).

  3. Check whether the NACE code of your primary economic activity is listed in Sections A to H and Section L of the NACE Classification.

    List of HICS - Sections A to H and Section L:

    • Section A - Agriculture, Forestry, and Fishing
    • Section B - Mining and Quarrying
    • Section C - Manufacturing
    • Section D - Electricity, Gas, Steam, and Air Conditioning Supply
    • Section E - Water Supply, Sewerage, Waste Management and Remediation Activities
    • Section F - Construction
    • Section G - Wholesale and Retail Trade; Repair of Motor Vehicle and Motorcycles
    • Section H - Transportation and Storage
    • Section L - Real Estate Activities

🔎 Examples to help you determine whether your organization is active in a high-impact climate sector

🔎 Example 1 - Company A: a container shipping organization focusing on transporting freight goods globally by sea.

  1. Primary economic activity: Transporting goods globally by sea.
  2. NACE code of primary economic activity business activity: H50.2 - Sea and coastal freight water transport (Encompassing the transport of goods overseas and coastal waters, such as container ships, bulk carriers, and oil tankers)
  3. NACE code falls within listed NACE codes associated with high-impact climate sectors: Yes, H50.2 falls within “Section H — Transportation and Storage”

Atlas Metrics’ interpretation: Company A is active within high-impact climate sectors as its primary business is associated with a NACE code linked to the EU’s high-impact climate sectors.

🔎 Example 2 - Company B: a software-based logistics company for freight goods shipping companies.

  1. Primary economic activity: Providing software as a Service (SaaS) for logistics within shipping industries.
  2. NACE code of primary economic activity: J62.01 - Computer programming activities encompassing the design, development, and implementation of software, including web-based solutions like SaaS for various industries, including logistics and shipping.
  3. NACE code falls within listed NACE codes associated with high-impact climate sectors: No, J62.01 falls within “Section J — Information and Communication” which is not within Sections A to H and Section L.

Atlas Metrics’ interpretation: Company B is not active within a high-impact climate sector. We interpret that Company B is not directly part of a high-impact climate sector, as its primary business involves information technology and web services, rather than direct involvement in a high-impact sector.

 

 

 

Glossary, Definitions, and Links

HICS - High-impact climate sectors. HICS are economic industries that have a significant impact on both the environment and society.

NACE - Nomenclature of Economic Activities. NACE is a standardised framework established by the European Union to categorise economic activities across its member states.

Link - NACE Classification (Annex I to Regulation (EC) No 1893/2006 of the European Parliament and of the Council (18) as defined in Commission Delegated Regulation (EU) 2022/1288 (19)).

Link - NACE Rev. 2 Manual (Statistical classification of economic activities in the European Community).