EDF / 2018 Reference document

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

EDF Renewables, whose raw material use is related to equipment manufacture, asks turbine and panel manufacturers to provide life cycle analyses of their products; the Group is also developing industrial ecology initiatives among its various ■ entities and initiatives supporting local authorities through a service based on the RECYTER tool, developed by EDF R&D, for the regional diagnosis of material and energy flows. The heating of liquefied gas at the LNG terminal in Dunkirk is carried out with cooling water energy from the nearby Gravelines plant, using a canal several kilometres in length, commissioned in 2015, which sets a strong example in terms of the circular economy. The consumption of various fossil fuels fell sharply overall in 2018: with coal down 61%, fuel-oil down 18%, and gas down 3%. Coal consumption fell in particular due to the sale of assets in Poland. Fossil fuel consumption was also impacted by the high availability of nuclear facilities and renewable energy production, such as hydraulicity. In commercial activities, all actions in favour of energy management are also a means of conserving resources (see section 3.2.4 “Committed to helping each customer consume better”) The use of recycled materials (aggregates, earth, concrete, etc.) is encouraged during major projects related to hydraulic, nuclear and thermal investments and the materials used are recovered (see section 3.3.2.1 “Circular economy”). The Real Estate and Hydraulics Department carried out soil remediation operations using topsoil and sediment. R&D is currently developing programmes to reduce the use of raw materials, such as ZnR Batteries, the Group’s spin-off company which is working on zinc-air batteries, and is now supported by EDF Pulse Expansion. This technology uses easily accessible and non-polluting materials to make batteries. Regarding tertiary uses, a wide-ranging travel limitation programme has been implemented by many Group entities (EDF, Edison, Citelum, etc.) with extensive use of video-conferencing and teleworking. The issue of the potential scarcity of certain resources is monitored by R&D for each business line concerned, which implement measures suited to each particular situation. EDF Renewables pays close attention to the technical and technological choices of its strategic turbine suppliers, some of whom have stopped using (rare earth) permanent magnets. The information gathered during monitoring informs prospective studies relating to the Group’s future equipment and activities. Paper Since 2012, EDF has implemented a policy to reduce paper consumption. First and foremost, this policy is applied through the development of electronic invoicing for residential customers. The target for 2015 of 4.2 million customers invoiced electronically (15% of residential customers) was surpassed by a substantial amount and the target for 2016 was raised to 5.5 million. The result surpassed the target: 5.65 million customers signed up for electronic invoicing, representing 21% of residential customers. The target for 2017, set at 6.5 million customers, was achieved, i.e. 25.5% of residential customers. The target was increased to 7.2 million customers for 2018. The target was once again exceeded. As of the end of December 2018, 7.3 million customers had signed up for electronic invoicing, representing 29.9% of residential customers. The 2019 target has been set at 8 million. The paper consumption policy has also been applied by setting a target for reducing purchases of paper for office use by 3% per year. This target is renewed annually. The annual results have significantly outstripped the target. In 2012, paper consumption per employee was 24kg of CO 2 equivalent for the year, in 2013 it was 20kg of CO 2 equivalent per employee, in 2014 it was 17.6kg of CO 2 equivalent per employee and in 2015 as in 2016, it reached 11kg of CO 2 equivalent per employee, representing a reduction in paper consumption of more than 50% over 3 years

Furthermore, action plans are under way to limit the use of phytosanitary products. The Real Estate Department has set a target of “zero phytosanitary products” by 2020 for the 115 EDF service sites with green spaces (1) . At end-2018, 104 sites had achieved this target in line with the progress envisaged for this plan. Furthermore, other entities no longer use these products (2) . These action plans are based on alternatives to the use of chemical herbicides (mechanical, thermal or other), vegetation management protocols for EDF Renewables (non-use of pesticides, differentiated management of vegetation, sheep, etc.) as well as on rules relating to companies in charge of maintaining the green spaces, with the long-term goal of abandoning the use of phytosanitary products altogether. They are accompanied by a training and awareness-raising programme (3) . Raw materials 3.3.2.5 The Group uses raw materials for electricity generation and to provide energy services to its customers. A significant portion of these raw materials is comprised of fuels: uranium, coal, gas, fuel-oil and biomass. In line with its sustainable development policy, which aims to preserve natural resources and optimise its consumption of raw materials, while guaranteeing energy supply to its customers, the Group has opted to implement certain measures: changing its generation mix with the development of renewables such as solar ■ power, wind power and marine energy; the decommissioning of low-efficiency coal- and fuel-fired plants, the commissioning of high-efficiency CCGTs (world record 61% efficiency for the Bouchain CCGT), the use of biomass in Dalkia's boilers and biogas plants, the modernisation of IES thermal stations (new PEI power stations) and the replacement of old engines at power plants in the French overseas departments and in Corsica; the optimisation of existing facilities: improving energy efficiency (IES, Dalkia, ■ EDF Energy) or output (Edison's gas-fired combined cycle plant in Candela, Italy) through maintenance measures, modifications, fuel quality rules and more rigorous monitoring of efficiency levels (loss limitation) or cogeneration; the real-time selection of the best performing means of generation depending on ■ the load curve and energy performance. Specifically concerning IES: thermal power plants are listed in order of generation costs, which are evolving in a virtually linear fashion in relation to the consumption of fuel-oil per kWh output. These power plants are started in “merit order”, an economic mechanism that minimises hydrocarbon consumption. These optimisation measures have been further reinforced with the ISO 50001 certification of these thermal sites since 2016. Likewise, Dalkia uses an energy management tool, which optimises the fuel used by the energy facilities that it operates; the implementation of a natural uranium savings strategy: EDF’s control of each ■ stage of the fuel cycle, the design of high-efficiency fuel and suitable management of that fuel within nuclear units all contribute to optimising natural uranium needs (see section 1.4.1.1.4 “The nuclear fuel cycle and related issues”). Recycling spent fuel enables savings of 10% of natural uranium; the Group’s business model, based on controlling the full life cycle of its facilities, ■ allows for efficient feedback as well as the implementation of eco-design initiatives developed in the engineering centres and the design of projects such as the EPR 2 New Model project, or the “Grand Carénage” works on the existing nuclear power stations. With the improvement in the production process, PHOTOWATT has increased the proportion of silicon recycled in its photovoltaic panel production and the power of the cells and modules to lengthen the life cycle of these products. As part of its supplier qualification system,

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hT e target was adjusted due to a change in scope of this Department. (1) For example SOCODEI, Edison, EDF Luminus, Norte Fluminense, Enedis, several hydropower operating units; ÉS has abandoned all glyphosate-based products. (2) On limiting exposure to phyto-sanitary products, see also 3.2.6.3.2 “Preparing and implementing initiatives depending on the issues as part of a positive approach to biodiversity”. (3)

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EDF I Reference Document 2018