Should PAI "water usage and recycling" use a normal average or a weighted average?

SFDR Delegated Regulation: Annex I, Table 2, Indicator 6
November 17, 2022

In simple words

Indicator water usage and recycling uses a weighted average, not a simple average, even though it is labeled “average.”

Official question

Annex I, Table 2, indicator 6 (water usage and recycling). How should one calculate the PAI in table 2 for indicators 6.1 (Average amount of water consumed and reclaimed by the investee companies (in cubic meters) per million EUR of revenue of investee companies) and 6.2 (Weighted average percentage of water recycled and reused by investee companies) considering that the first refers to “average” and the latter refers to “weighted average”?

Official answer

he ESAs consider that the “average” amount under indicator 6 part 1 of Table 2 of Annex I (water usage and recycling) should be considered as weighted average amount of water consumed by the investee companies (in cubic meters) per million EUR of revenue of investee companies”.

Answered by

European Supervisory Authorities (ESAs)

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