EDF / 2018 Reference document

ENVIRONMENTAL AND SOCIETAL INFORMATION – HUMAN RESOURCES EDF's commitments in the area of sustainable development

It contributes by strengthening and making the Group's non-financial ■ performance visible, i.e. in guaranteeing the quality of data while taking into account the expectations of stakeholders (investors, customers, agencies, NGOs), and making the Group's contribution to energy transition visible. It coordinates sustainable development in the Group: corporate coordination of ■ the business lines and subsidiaries through the SDC (5) (Sustainable Development Committee), coordination of the dedicated internal networks such as the EMS and the predictive watch networks, coordination of relations and dialogue with external partners. It brings together and coordinates the expertise necessary for taking into account ■ sustainable development issues, particularly the implementation of the Corporate Social Responsibility Goals. Over and above the internal skills of the Sustainable Development Department, this relies on partnerships with institutions, think tanks and NGOs. In December 2018, the Corporate Social Responsibility Strategy Committee was set up in order to better coordinate all CSR issues raised by various Group entities and to ensure strategic management. The Corporate Social Responsibility Strategy Committee is composed in particular of the Executive Director Human Resources, the Executive Director Finance and the Group Secretary General, and is chaired by the Executive Director for Innovation, Corporate Responsibility and Strategy. The CSR Strategy Committee is not a substitute for existing bodies. It reports its activities to the Executive Committee at least once a year and is at the disposal of the Board of Directors, to which it submits the minutes of its meetings. The environmental and energy policies require EDF to be able to anticipate them, seize the opportunities thereof and also take the necessary measures early enough. This system addresses three fundamental challenges for the Group: the challenge of regulatory compliance, to assure EDF's ability to demonstrate ■ that it takes regulations of every kind into account; a business challenge regarding the impact of the various regulatory texts on ■ value creation; a reputational challenge, all stakeholders (including the financial and ■ non-financial rating agencies) being increasingly involved in these aspects. The Sustainable Development Department coordinates a predictive watch system in order to best mobilise and coordinate internal resources. The watch system aims to: strengthen the detection and classification of risks and opportunities; ■ facilitate sharing among business lines, geographical divisions and Group ■ companies on transversal issues so as to maximise synergies; improve managers’ visibility of the risks and opportunities; ■ contribute to the increase of the effectiveness of actions in defence of the ■ Group’s interests, in France and internationally. The predictive watch process is based on the work of thematic groups known as “networks”: water, waste and soil, air, biodiversity, industrial risks, energy efficiency, energy poverty, health and climate change. Each network comprises fifteen members from different Group businesses that meet every quarter to share an overall vision. Each network works closely with the Legal, Public Affairs and European Affairs Departments. The pilots of each network meet every month a Sustainable Development Agency which monitors the transversality of approaches and ensures that the Group’s challenges are optimally taken into consideration with an overall, long-term view. Transformation drivers 3.1.3.3 A supervisory organisation 3.1.3.3.1

These goals are integrated into the Group's sustainable development policy, which is intended to specify all the requirements of the Group in terms of sustainable development (1) . Integration of the corporate 3.1.2.2

responsibility goals into the Group’s strategic process and project screening

The six Corporate Social Responsibility Goals reflect long-term commitments (2030). The implementation requirements are set out in screening letters specifying the contribution of each of the Group’s entities and subsidiaries to the achievement of the common objective. The system for monitoring these commitments is integrated into the Group's strategic planning loop. Annual performance reviews allow entities and subsidiaries to monitor and control their actual performance. Similarly, projects and investments subject to the approval of the Commitments Committee of the Group Executive Committee (2) (CECEG) are the subject of a specific opinion of the Sustainable Development Department based on a screening grid that translates the issues of the six corporate responsibility goals into operational terms. Where necessary, the Sustainable Development Department conducts or organises due diligence specific to these issues.

3.

3.1.3

GOVERNANCE OF SUSTAINABLE

DEVELOPMENT

Governance 3.1.3.1 Corporate social responsibility is at the core of the EDF group's strategy. One of the committees of the Board of Directors, the Governance and Corporate Social Responsibility Committee, is in charge of the following corporate social responsibility topics, including issues related to climate change and their impact on the EDF group. The corporate social responsibility approach was discussed during the strategic seminar of the Board of Directors in September 2018: monitoring the implementation of the six Corporate Social Responsibility Goals, deployment of the Group Sustainable Development Policy, social and financial innovations for energy transition. Monitoring and implementation of the commitment to reduce direct CO 2 emissions, announced in the Shareholders' Meeting of 12 May 2018, was presented to the Governance and Corporate Social Responsibility Committee meeting on 29 November 2018 (see section 4.2 “Composition and working of the Board of Directors”). Organisation 3.1.3.2 The Sustainable Development Department reports to the Innovation, Corporate Social Responsibility and Strategy Director, a member of the Executive Committee. It contributes to the Group’s strategic transformation by accompanying business ■ lines and projects in specifically taking into account environmental and social issues (opportunities and risks) in their business decisions and conduct, the integration of the six Corporate Social Responsibility Goals into the strategic screening of operating entities and process of screening new projects from the point of view of sustainable development (3) . It is particularly responsible for monitoring the Group's target for reducing direct GHG emissions "scope 1" (4) to less than 30 Mt in 2030.

See section 3.3 “Other subject areas of the sustainable development policy”. (1) This undertaking concerns new projects involving investments of more than €50 million, entailing a significant impact on regions and the environment. The Group plans to lower (2) this investment threshold to €30 million by 2030. See section 3.1.2.2 “Integration of the corporate responsibility goals into the Group’s strategic process and project screening”. (3) See Section 3.9.2.2 "Further details on the environmental data” for the definition of "Scope 1" (4) In 2018, the SDC met five times. It reviewed the carbon trajectory, the biodiversity agenda, the organisation of non-financial reporting and the Group's Environmental (5) Management System.

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EDF I Reference Document 2018