EDF / 2018 Reference document

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

Avoid, Reduce and Compensate (1) 3.2.6.2.2 The biodiversity CSRG aims to have a positive approach to biodiversity. EDF Energy set the goal of having a positive net impact before 2030. The Group applies the principles of the mitigation hierarchy (2) or the ad hoc regulations of the country where it is located, which are sometimes more demanding (particularly in Europe): thus, in France, the Group companies apply the mitigation hierarchy (Avoid, Reduce, Compensate) doctrine. The Company's practices in this area were challenged by the international recommendations promoted by the BBOP (3) . Environmental issues, including biodiversity, are integrated throughout the engineering and operational process, from the beginning and design phases of the projects to promoting prevention and reduction. EDF seeks to reduce the footprint of new projects to a minimum and, in the case of decommissioning, to restore the natural environment. Similar processes are also carried out at facilities in operation. Their impacts on the environment and biodiversity are the subject of monitoring conducted by public bodies (in France: Ifremer, IRSN, Irstea, AFB/Onema). The results are published and are accessible. In addition, EDF assesses the risks in investment projects. Avoid, reduce In the UK, as part of the offshore wind farm demonstrator project at Blyth, ■ EDF Renewables UK reduces its impacts using the GBF (gravity based foundation) technique. The technique avoids digging foundations in the ocean floor. This is done in partnership with the University of Newcastle, which monitors the presence of marine mammals around the site; in Cameroon, a first E&S study was conducted on the Nachtigal project in ■ 2006, then updated in 2011. Additional biodiversity studies were conducted in 2014 and 2015 to complete these impact studies and enable the drafting of an in-depth operational E&S Management Plan and a biodiversity action plan in 2016. Specific plans on the offsetting (fish) and support (endemic species of aquatic flora) measures were also implemented in 2017. Further studies (including a thesis) aim to better understand certain species of fish and aquatic flora and to put forward effective reduction and mitigation measures in respect of the project; in France, in the areas operated by Enedis (4) , new HV lines were completed ■ 98% underground and 100% underground or unobtrusively for LV. Overall, 45% of all HV and LV networks are underground. Compensate In Laos, NTPC is conducting discussions with the Laotian government on the ■ transformation of the Nakai Nam Theun Wildlife National Protected Area (WNPA) into a national park. This will recognise the quality of biodiversity protection in the protected area, offsetting the creation of the reservoir upstream of the dam; in France, in the Belledonne en Isère mountain range, the Company conducted ■ an experiment on the offsetting proposals with the Initiative Biodiversité

Combe-Madame non-profit organisation and the key community players. It is aimed at restoring sub-alpine environments and enabling the return of remarkable species of fauna and flora. This experiment is part of the action initiated by the Ministry of Ecological and Solidarity Transition, to test the relevance and feasibility of the offsetting proposals. The project took off in 2015; in 2016, the assessment of the initial condition of the site was completed and preliminary work for reopening the environments started; in 2017, actions were also carried out with the Fédération des Alpages de l’Isère, LPO Isère, ONCFS and Irstea to reconcile economic and tourism uses with the biodiversity of the site. In 2018, the site did not apply for approval from the Ministry to propose offsetting units through the offer. However, actions in favour of biodiversity are being continued with local partners; EDF's R&D department also carries out research on the assessment of ■ ecological equivalence. Thus, EDF recently financed a thesis with Irstea and the Natural History Museum concerning the preparation of a method to verify the achievement of ecological equivalence. This involves measuring, using indicators, the losses related to the impacts and comparing the losses resulting from a development and gains resulting from the offsetting measure. The thesis was defended in 2017. Knowing biodiversity issues and acting 3.2.6.3 concretely Knowing issues related to the Company's land requires having detailed knowledge of its ecological sensitivity site by site - that is to say, appreciating the quality of their biodiversity and that of the regions where they are situated - and at the same time, knowing the areas involved, entity by entity. This is how the responsibility of each of the Group's companies in respect of biodiversity can be assessed. Knowing the ecological quality of land 3.2.6.3.1 The vast majority of EDF production sites are located close to protected sites (in France, 80% of hydropower sites are situated in or near a Natura 2000 site). These sites are preserved from agriculture and urbanisation and are located close to watercourses. They bring together several factors that are conducive to biodiversity. The ecological management implemented on these sites aims to foster biodiversity. In order to acquire knowledge regarding the quality of the ecosystems present, EDF carries out an assessment of the biodiversity issues on its industrial sites and their immediate surroundings. Mandated by the Company in June 2017, UNEP – WCMC (World Conservation Monitoring Center) began a huge study to assess the ecological sensitivity of places where the Group's industrial sites are located (5) , which represents approximately 1,000 sites. Certain sites of the Group present bigger challenges in terms of biodiversity, either due to the proximity of a protected area, or due to the species they host.

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GRI indicator: G4 - EU 13. (1) IFC Guidance Note 6: Performance Standard 6 of the International Finance Corporation (a World Bank organization) dedicated to Biodiversity Conservation and Sustainable (2) Management of Living Natural Resources. The Business and Biodiversity Programme is an initiative that lasted from 2004 to 2018. It promoted standardised best practices through the coordination of a network and (3) publication of various documents. Enedis is an independantly managed subsidiary. (4) Analysis carried out in September 2018 by the WCMC for EDF, EDF Renewables, EDF Energy, Edison, EDF China and the International Division (EDF Luminus, MECO, Nachtigal, (5) EDF Norte Fluminense, NTPC, SLOE, and SINOP).

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EDF I Reference Document 2018