EDF / 2018 Reference document

3.

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

Concerning its three offshore wind farm projects in Fécamp, Courseulles-sur-Mer and Saint-Nazaire, EDF Renewables is contributing to the creation of a national industrial sector for offshore wind energy, representing an estimated 7,000 direct and indirect jobs (1) . Through its activities in the biomass sector, Dalkia generates non-transferable local jobs, up to approximately 2,000 jobs in France; more generally, Dalkia supports around 50,000 jobs in France, whether directly or indirectly (2) . Responsible purchasing 3.3.3.4

Under the Group's Purchasing Policy signed in 2017, the EDF group Purchasing Department ensures the consistency between actions carried out within the Group’s Purchasing Departments (excluding RTE), sets the overall framework for the policy, and manages the Purchasing division. Major subsidiaries like Dalkia or EDF Energy have implemented sustainable development charters, as well as sustainable development and social responsibility assessment procedures (4) . For example, a specific clause is included in their general terms and conditions of purchase relating to sustainable development (environmental and social clauses). EDF Renewables has set up a sustainable development charter for suppliers and subcontractors, includes environmental and social criteria in the qualification systems and audits of its key equipment suppliers (including turbines and solar panels), and develops corporate partnerships with its strategic suppliers in order to tackle the environmental and social challenges facing the industry. The Group’s Purchasing Department has implemented a Code of “Good Conduct for players in the contract process” for use by all those involved in the contractualisation process. It is backed by the Group’s ethical values and combines strict ethical rules, principles of good sense and recommendations of good practices. The mandatory ethical undertaking signed by each buyer lists the principles to be complied with in relationships with current and prospective suppliers. When implementing purchasing contracts, the Group Purchasing Department ensures that supplier supply chains are controlled, but also that financial balance is maintained with respect to suppliers, in particular through compliance with payment deadlines and pricing actions. The EDF group also offers its suppliers collaborative reverse factoring, granting them the possibility to pre-finance their invoices before the contractual due date, as soon as EDF issues the payment voucher (5) .

Responsible purchasing practices 3.3.3.4.1 In terms of the supply chain, EDF’s responsible purchasing approach sits at the heart of the Group’s social and environmental responsibility policy. The Group’s new Purchasing Policy, signed in March 2017, states that the Group’s values must be complied with by suppliers and that obligations in terms of sustainable development and social responsibility must be systematically included in contracts. This includes the Sustainable Development Charter established in 2006 and updated in 2014, which is an integral element of each contract. Moreover, the purchasing policy promotes regional involvement, support for local development, in particular by giving preference to relationships with SMEs as well as the use of the protected worker sector and structures for integration through economic activity (3) .

EVERSE FACTORING FIGURES

Collaborative reverse factoring

2018

2017

2016

No. of beneficiary suppliers

623 744

423 522

NP* 148

Amounts (€m) Not provided *

Supplier relations 3.3.3.4.2 Listening to feedback at the heart of EDF's relationship with its suppliers. For a number of years, service provider surveys have been conducted by various Group entities to assess the level of satisfaction of service providers with their relationship with EDF. In 2018, a follow-up audit reaffirmed the “Supplier Relations and Responsible Procurement” Label conferred on EDF in 2015 by the Ministry for the Economy, Médiation des Entreprises and the French Procurement Board (Conseil National des Achats - CNA). It rewards companies that have sustainable and balanced relationships with their suppliers (6) EDF provides its suppliers with a dedicated space on its corporate website, which: helps suppliers promote themselves and access “one-stop shop” spaces, ■ dedicated to nuclear and hydraulic service providers as well as SMEs, where they can publish their product and service offerings; provides access to the Group Purchasing platform, a discussion tool for ■ authorised suppliers, and to all reference tools and documents, accessible to all suppliers (such as the general terms and conditions of purchase for “small” and “simplified orders” and the GDPR conditions that apply to EDF).

In addition, the Group Purchasing Department provides suppliers and service providers with a toll-free number (08 00 97 10 79), which they can use to anonymously report any difficulties with their commercial relationship, which cannot be resolved during the usual monitoring of contractual relations. Finally, EDF organises forums and meetings with suppliers and service providers to reinforce dialogue, promote local sourcing and the upskilling of local companies. Specific measures are also implemented in this respect, such as “CAP ENR” or the “One River, One Territory” workshops, promoting regional support. To further encourage discussion, the Group Purchasing Department organises themed Supplier Days three times a year, organised by the main purchasing divisions (generation and engineering, IT and telecommunications, the tertiary sector and services). In 2018, the topics of the Days were cyber-security and productivity partnerships. In 2018, the Purchasing Department continued its transformation and launched the Procure to Pay (P2P) plan. By linking internal and external stakeholders, this initiative aims to optimise the supplier relationship, turnaround times and costs; for example, to further simplify the relationship with our suppliers by digitising exchanges.

This refers to the three offshore wind projects confirmed by the President of the French Republic that EDF Renewables is developing with its partners Enbridge Inc. and WPD. (1) Following negotiations, the launch of these three projects will create a national industrial sector for offshore wind energy, creating nearly 7,000 direct and indirect jobs. These projects will produce the equivalent electricity consumption of more than 2,000,000 people. 2017 information. (2)

See section 3.4 "Further Human Resources considerations". (3) Sustainable Development and Social Responsibility (SDSR). (4) EDF enables its suppliers to benefit from interest rates based on its own financial risk and credit standards. (5) EDF was one of the first signatories of the Responsible Supplier Relations Charter. (6)

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EDF I Reference Document 2018