EDF / 2018 Reference document

3.

ENVIRONMENTAL AND SOCIETAL INFORMATION – HUMAN RESOURCES EDF's Corporate Social Responsibility Goals

3.2

EDF'S CORPORATE SOCIAL RESPONSIBILITY GOALS

3.2.1

COMMITTED TO CLIMATE ACTION

Furthermore, R&D helps prepare the future generation fleet and energy system, by recommending measures for optimising thermal power plants (4) , integrating intermittent renewable energies, and through work on smart electricity systems. Increased transparency: Task Force on 3.2.1.2 Climate Related Disclosures - TCFD When the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) published its recommendations, on 29 June 2017, on voluntary disclosures of financial risks relating to climate change, for use by companies in their communications to investors, lenders, insurers, and other stakeholders, EDF was one of the first organisations worldwide to adopt the recommendations. In order to further increase climate change transparency, EDF undertakes a comprehensive process of aligning its climate change-related financial risk disclosures with the recommendations of the TCFD, in order to stay up-to-date with the requirements of financial markets with regard to climate change-related risks. This chapter is organised according to the TCFD recommendations plan. A correspondence table for reading of this Reference Document from the perspective of the TCFD recommendations is available in section 3.8.3 “TCFD recommendations”. Risks, opportunities and impacts 3.2.1.2.1 of climate change on EDF Energy production now accounts for approximately 60% of global anthropogenic greenhouse gas emissions, 40% (5) of which are linked to electricity and heat generation. The electricity and heat generation sector alone produces 25% of anthropogenic CO 2 emissions (IPCC, AR5). In France, the EDF group's Carbon performance gives it an edge, even though, because of its size, EDF group remains a major carbon emitter worldwide. Decarbonising electricity generation is recognised as an effective way of reducing CO 2 emissions; at the same time, there is general consensus on the prospects of very strong growth in global electricity demand (almost 80% by 2050).

EDF group is aware of both the impact of its operations on climate change, and the impact of climate change on its operations. It deploys a strategy for fighting climate change, which includes a strategy of adapting to the physical effects of climate change and a decarbonisation strategy, with a goal in line with science and appropriate governance. EDF group's ambition (CSRG no. 1) 3.2.1.1 EDF group is one of the world’s leading electricity producers, not only in terms of net installed capacity and electricity generation, but also in terms of carbon performance with a very low carbon intensity of 57gCO 2 /kWh (1) , which makes it the undisputed leader of the sector, with average global emissions maintained around 490g/kWh (2) . The ambition of EDF group consists of going beyond the 2°C goal set by limiting the Group's direct CO 2 emissions to 30 Mt in 2030 (CSRG no. 1). In 2018, the indicator was at 35.5 Mt (3) . At the Shareholders' Meeting held in May 2018, the Chairman and CEO of EDF announced a more specific commitment: the Group is committed to reducing its direct greenhouse gas emissions to under 30 Mt in 2030, while contributing to carbon neutrality in 2050. This goal is based on the methodologies developed within the “Science Based Targets” initiative to estimate sectoral contributions to the 2°C target; 2015, the year in which the Paris Agreement was signed and the Cap 2030 Strategy was launched, is the reference year for this goal, which contributes to the achievement of Sustainable Development Goals no. 13 (fight against climate change) and no. 7 (use of renewable energy) set by the UN. EDF group has a low-carbon generation mix, combining renewable and nuclear generation. To maintain its leading position in low-carbon electricity generation and achieve its goal of reducing its direct GHG emissions, EDF group has two main levers: cutting CO 2 emissions from its generation asset portfolio and making relevant investment decisions.

Direct emissions, excluding life cycle analysis of generation plants and fuel. (1) Most up-to-date statistic: CO2 Emissions From Fuel Combustion, International Energy Agency, 2018 (figures for 2016). (2) See section 3.9.3.1 “Group Indicators of the Sustainable Development policy and CSRG”. (3) See section 3.2.2.4.2 "Optimisation of environmental performances and modernisation of the thermal fleet". (4) CO2 Emissions From Fuel Combustion, International Energy Agency, 2018 (figures for 2016). (5)

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EDF I Reference Document 2018