EDF / 2018 Reference document

3.

ENVIRONMENTAL AND SOCIETAL INFORMATION – HUMAN RESOURCES Other areas of the sustainable development policy

3.3

OTHER AREAS OF THE SUSTAINABLE DEVELOPMENT POLICY

adapting the installations concerned to make them less sensitive to climatic ■ conditions and increase their resilience to extreme changes and situations; taking into consideration assumptions of changes in weather conditions in the ■ facilities’ design; adapting the Group’s solutions, internal operations and know-how in light of ■ climate change. EDF's R&D Department has methods and tools to model the impacts of climate change, propose solutions to alleviate these impacts and anticipate the direction in which energy systems might evolve: a “Climate Department” was set-up, tasked with producing prospective data ■ that allows identifying the physical risks of climate change; a research programme was initiated on the robustness of nuclear and thermal ■ power plant heat sinks in operation. It includes results obtained from assessments of water availability in the French watersheds concerned; other research projects aiming to anticipate the developments of the energy ■ systems, and discover the constraints which they will face, the disruptive factors. Adapting to the physical effects of climate change mainly concerns structures with a long life cycle: nuclear and thermal power plants, hydropower dams, hydrocarbon platforms at sea. As wind and solar power plants are intended to be operated for a shorter period (approximately 20 years), they are relatively unaffected, especially as they are lightweight facilities with easy-to-replace equipment. Water Climate change impacts the availability, quantity, distribution and location of water resources and intensifies competition among different users of water. Several plants have been reinforced to provide hydropower facilities with stronger protection against extreme weather risks. For example, this is the case of the Record Dam on the river Agout, equipped with “Piano Key Weirs” spillway technology. EDF has had a permanent system in place for many years for monitoring meteorological phenomena and their impact on the sources from which it collects water (subterranean groundwater, rivers or the sea). Data analysis makes it possible to predict and monitor risky hydro-meteorological phenomena. Monitoring is organised seven days a week, 24 hours a day. In addition to the Group’s adaptation strategy, EDF Energy has reassessed its risks, and particularly those associated with increased air and sea temperatures. Furthermore, assumptions of an increase in the level of the sea and oceans have been factored into the design of the Group’s new EPR nuclear power plants. Networks In its climate change adaptation plan, Enedis (4) has formalised measures intended to reduce the vulnerability of networks (1.4 million kilometres in length) and shorten the time it takes to reconnect customers in the event of a power cut. This plan also covers risks of flooding and summer heatwaves. It consists of putting high-voltage overhead lines underground to avoid risks of falling trees, wind, snow and frost, beginning with the most exposed facilities. In 2018, Enedis took down 3,800 kilometres of high-voltage overhead lines, including 1,000 for weather risk management.

EDF group's Sustainable Development Policy of April 2017 was reviewed in June 2018 notably to include the Group's carbon target (1) and to include the Corporate Social Responsibility Goals more explicitly. This new version of the policy visually clarifies that sustainability requirements are complementary to the Group's policies, which themselves include certain dimensions of Corporate Social Responsibility (HR Policies - Purchasing Policies - Ethics and Compliance Policy - Nuclear Safety Policy). The policy also includes recommendations associated with the anticipation of and preparation for the future, particularly to meet the expectations gathered during the listening phases with our stakeholders (section 3.1.1.2 “Stakeholder dialogue mechanisms”), some of which could eventually become regulatory obligations. Its implementation is based on the principle of subsidiarity. The Group’s performance will consist of the positive contributions reported by the Group’s various business lines and subsidiaries in the areas in which they are concerned. The Group Sustainable Development Policy sets out the common principles and the means of achieving consistency. The requirements of the Sustainable Development Policy meet three priorities: regulatory compliance, the means of implementing the Corporate Social Responsibility Goals, and the control and coverage of other major Sustainable Development issues such as air and water quality. It also includes some recommendations associated with the anticipation of and preparation for the future (for example, the practical integration of the principles of the circular economy). The requirements of the policy are defined in four broad purposes: responding to the challenges of climate change; optimising the use of natural resources and conserving the environment; paying particular attention to people; and, dialogue with stakeholders and reporting on our activities. These requirements are applicable to all entities and subsidiaries of the Group as well as to projects and investments subject to decision-making bodies. The screening grid established to provide Sustainable Development specific opinion on these projects (2) includes the elements described in this section.

3.3.1

ADAPTING TO CLIMATE CHANGE

The requirements of this purpose include the implementation of long-term commitments defined in CSRG no. 1 and CSRG no. 4 as well as the requirements or recommendations described in this chapter. Climate change has direct impacts on the physical conditions for performing the Group’s activities, and indirect impacts as well (changes in energy demand, disturbances in the competitive environment). Since 2010 (3) , the EDF group has been implementing a climate change adaptation strategy which aims to reduce or avoid the harmful effects of these impacts, while preserving their benefits. This strategy concerns physical and transition risks. It involves: assessing the current and future impacts of climate change on existing facilities ■ and business activities;

ee section 3.2.1 “Committed to climate action”. (1) See section 3.1.2.2 “Integration of the corporate responsibility goals into the Group’s strategic process and project screening”. (2) Being reviewed within the Group. (3) Enedis is an independently managed subsidiary. (4)

180

EDF I Reference Document 2018