EDF / 2018 Reference document

3.

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

3.2.3

COMMITTED TO SUPPORTING

Public schemes strongly supported 3.2.3.2.1 by the EDF group EDF implements public schemes provided for by regulations by adding its own support systems for vulnerable populations. In terms of prevention, EDF supports thermal renovations of homes occupied by ■ very low-income residential customers notably by participating in the Habiter Mieux (Better Living) programme. This programme, implemented since 2011 by the State and piloted by the French Agency for Home Improvement Agence nationale de l’habitat (Anah), enabled the renovation of 240,000 homes occupied by owners in energy poverty. In November 2018, the government decided to increase the target by 50%, hitherto fixed at 75,000 home renovations per year. In 2018, EDF renewed its partnership with the Abbé Pierre Foundation until the end of 2020, particularly through the “Roofs First” programme. EDF also contributes a maximum of €57 million to the Guarantee Fund for Energy Renovation. This fund, eligible for energy savings certificates (CEE), makes it easier for low-income households to obtain a loan from the banks to carry out energy renovation work and finance the rest of the work. In terms of payment assistance, EDF implemented the deployment of energy ■ vouchers (3) for vulnerable populations. After two years of experimentation, this scheme was rolled out throughout the country in January 2018 and 3.4 million vouchers were sent in April 2018. EDF actively supports its implementation with information and training ■ activities for the social services which relay information to the public, on the one hand, and directly for its customers, on the other. The Company made arrangements to inform its customers of the arrival of the energy voucher and send reminders in case of non-receipt. In order to familiarise vulnerable customers with the digital use of energy vouchers, EDF has renewed its partnership with Unis Cité (an association specialising in the Civic Service for young people) on digital inclusion (pilot operations in the territories of Saint-Nazaire and Clermont Ferrand). The goal is to enable the system to achieve a high rate of Cheque + Certification digitisation (31% at the end of October 2018) and improve the effective use of this aid by people who can benefit from it. EDF continues its active and sustainable involvement alongside local authorities and social services in the implementation of local assistance for paying a part of the energy bills of the most vulnerable customers. EDF, EDF SEI (Island Energy Systems) and Electricité de Strasbourg participate in the regulation of unpaid bills by contributing to the Housing Solidarity Fund (FSL), which pays a part of the electricity bill for the poorest customers. EDF's contribution was more than €22 million in 2018. In the UK, Energy Carbon Obligation (ECO) replaced Warm Front (WF), Carbon Emissions Reductions Target (CERT) and the Community Energy Saving Programme (CESP). This means that ECO, implemented by EDF Energy, encompasses both measures for reducing carbon emissions and fighting against fuel poverty through the improvement of energy efficiency. In Italy, Edison offers the “social bonus”. This public scheme reduces the electricity bill, based on income levels, and aims to help the most vulnerable families at the economic level and/or at the level of their health. In Belgium, EDF Luminus developed all the public schemes specific to Flanders, Wallonia and the Brussels Capital Region .

FRAGILE POPULATIONS

EDF's commitment: providing 100% 3.2.3.1 of vulnerable populations with

information and support solutions in terms of energy consumption and access to rights (CSRG no. 3).

Energy poverty, various problems due to unsatisfactory access to energy is a complex phenomenon that has intensified in most developed countries, especially in Europe, in terms of number of households concerned or the severity of the impacts encountered. In France, fuel poverty remains high: the analyses of the National Fuel Poverty Monitoring Centre, in which EDF is a partner, show 6.7 million people in a situation of fuel poverty and 7.2 million private dwellings with very poor thermal performance (Energy label F or G). In the United Kingdom, the percentage of households estimated to be in a situation of fuel poverty has declined in recent years, as a result of a change in definitions and indicators. The incidence of the problem is actually on the rise. The energy poverty gap (1) is widening due to the rising cost of energy in the country. In November 2017, on a proposal from the energy regulator, the UK government decided to introduce an energy price ceiling of £1,137 a year starting in 2019, saving an average of 11 million customers £76 per year on their gas and electricity bills. This revisable cap applies to dual-energy customers subject to default tariffs after their fixed price offers have ended. These two examples show that the national contexts, which are very different at the regulatory, economic, political and competitive levels, do not allow for the aggregated quantification of the number of households concerned, or the alignment of the solutions. In this context, EDF has been working with the government, social services, and local authorities and non-profits to help combat fuel poverty. Above all, the Group acts to ensure that an electricity bill is not an additional aggravating factor for its most vulnerable customers. EDF's action includes research programmes, innovation and the implementation of concrete solutions, consisting of enhanced support for public measures and proactive actions by the Group. The indicator used for CSRG no. 3 concerns the “number of energy supports”. In France, it is a system deployed by telephone by 5,000 customer advisers and nearly 300 solidarity advisers, intended for any customer experiencing a difficulty and designed to analyse the situation and propose the most appropriate solutions. In 2018, there were 1,302,590 energy supports [*] , which represents an increase compared to 2017 (2) . Implementation of operational 3.2.3.2 solutions In France, EDF’s solidarity policy is based on three pillars: prevention, support and payment assistance. Furthermore, improved identification of vulnerable customers is a constant concern.

The “poverty” gap is the measure of the difference between the cost of an average bill for heating a house to a comfortable level and the cost of a bill for a customer who is in a (1) situation of fuel poverty. See section 3.9.3.1 “Group Indicators of the Sustainable Development policy and CSRG”. (2)

In accordance with the TECV law, social energy tariffs ended on 31 December 2017 and have been replaced by a new system: the energy voucher. (3) [*] IND Key non-financial performance indicator ( see concordance table with the non-financial performance statement in section 8.5.4).

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EDF I Reference Document 2018