EDF / 2018 Reference document

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

regarding the “Réseaux Electriques Intelligents” (REI) smart grid project ■ launched by the French government, 2018 was marked by the large scale deployment of three winning projects coordinated by regional authorities: “SMILE” (Brittany and Pays de la Loire - smart connection offers), “Flexgrid” (PACA – aggregation of a portfolio of over 60 energy saving and smart grid action projects), and “You&Grid” (Hauts-de-France - deployment, by 2020, of a host of mature services and technologies in terms of smart grids); at the international level, EDF (1) and Enedis designed, built and commissioned ■ the MASERA (2) demonstrator in one year. It is part of the REIDS (Renewable Energy Integration Demonstrator – Singapore) demonstration platform. The demonstrator is composed of various innovative solutions: two-sided photovoltaic panels, a Lithium-Ion storage system, a Zinc-Air battery, an electric vehicle, a consumption metering system and a control system for optimising generation. The demonstrator will allow the EDF group to offer affordable and efficient microgrids for remote areas in Southeast Asia. The first thermal and electric dual smart grid of France will be released in early 2019 in the eco-district at the heart of Nanterre University. Dalkia Smart Building, a subsidiary of Dalkia, designs and builds large urban real estate projects with a partner. This smart grid is able to pool five renewable energy and recovery (EnR&R) sources. It will supply homes, offices and businesses in the district with heating, hot water and air-conditioning. With at least 60% EnR&R used, this smart grid will allow 100% self-consumption of the electricity generated, which will be adjusted in real time. To meet the expectations of all of its stakeholders, EDF has set up dialogue, listening, analysis and follow-up tools: surveys, mapping, partnerships, forums for dialogue with stakeholders and follow-up committees. EDF's commitment to organise a 3.2.5.1 worldwide dialogue and consultation process around our projects (CSRG no. 5) The Group is committed to organising, systematically and worldwide, an initiative of dialogue and consultation which is transparent and open for each new project. In order to ensure follow-up of the consultation carried out, the EDF group attempts to list the number of projects concerned that fulfil the three criteria mentioned above to which the following procedures will be applied: identify stakeholders, launch consultation as far upstream as possible, provide transparent access to stakeholders to clear information on the project, gather stakeholders opinions on the project and address them, set up a system for dealing with suggestions and complaints, and ensure that local populations are able to participate in the consultation process. The EDF group has defined the scope of application starting 1 January 2017. Any new project of more than €50 million and for which an investment decision is taken (thus subject to a review by the Financial Commitment Committee) and having a significant impact on the regions or the environment will be concerned. COMMITTED TO CONSULTATION 3.2.5

In 2018, projects falling within the defined criteria accounted for the review of 46 files by the CECEG 82% [*] of these were the subject of a consultation (3) . The EDF group is committed implementing the rules governing dialogue, according to international standards on stakeholder participation, including the standards of the IFC (4) and to ensuring that such consultations are publicly reported. Every year, the results of all Corporate Social Responsibility Goals, including dialogue and consultation, are presented to the Governance and Corporate Social Responsibility Committee. This committee is chaired by a member of the Board of Directors and monitored by the Director of Innovation, Corporate Social Responsibility and Strategy (DIRES), an Executive Committee member himself (see section 3.1.3.1 “Governance”). Consult with stakeholders 3.2.5.2 Regardless of the countries of the world, civil society expects more dialogue and vigilance with regard to projects likely to alter the environment. EDF has decided to intensify dialogue with stakeholders and regional players. Dialogue and listening upstream of a project provides a better understanding of the issues involved for a region so that the project can be better adapted. For the EDF group it is ultimately a matter of always moving forward in the way it operates locally and cooperates with the region over time. EDF’s aim is to renew and make systematic its practice of engaging in dialogue so as to better take into consideration the aspirations of inhabitants and other stakeholders in different regions. For example, EDF Renewables conducted a co-construction project with local residents for the Wavignies wind project in Oise. The “Building the Wavignies Wind Project Together” approach was a great success, notably through the creation of a Liaison Committee and a series of public workshops where residents' proposals were integrated into the project design. As a result, six wind turbines will be built instead of the five planned initially. As part of preparing the site for the replacement of Sabart penstocks in Ariège, EDF Hydro Southwest implemented an approach of continuous dialogue with the region, with a dedicated website and events at various key stages associating partner companies, local elected representatives, local non-profits, economic players and employees. Edison worked with the local communities of Valchiavenna (Northern Italy), close to a hydropower plant. A Tracciolino tourist route that served only the dam and the plant was transferred to the community. In addition, an educational programme to develop the entrepreneurial spirit was created with the objective of developing the region using new technologies. In French Guiana, EDF PEI (Production Electrique Insulaire) undertook consultations around the Larivot (thermal hybrid and PV plant) project from May to July 2018 in the municipalities of Matoury, Cayenne and Remire-Montjoly. The three public meetings organised helped expose the different issues of the project and gather public opinion on the project as a whole. At the same time, two theme-based workshops on two key issues of the project were organised in the presence of stakeholders. Furthermore, under the auspices of the Local Authorities, and throughout the project, a local Consultation Committee of the Larivot power station made it possible to prolong the dialogue between the main regional stakeholders concerned (5) . Following many questions regarding the deployment of smart meters, Enedis engaged in consultation at the request of the local authorities and various stakeholders (social-housing lessors, etc.). The task force composed of five people, dedicated to this consultation, carried out 374 interventions in 2 and ½ years. This doesn't include everything done directly by the regional departments (interventions before municipal teams, permanent office in the town hall, public meetings, etc.) .

EDF at the helm of a consortium of French smart grids/smart cities companies. (1) Microgrid for Affordable and Sustainable Electricity in Remote Areas. (2) See section 3.9.3.1 “Group Indicators of the Sustainable Development policy and CSRG”. (3) International Finance Corporation - World Bank. (4) The website centraledularivot.com was set up for this purpose. (5) [*] 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