EDF / 2019 Universal registration document

3. Non-financial performance EDF, a responsible company

Management of CSR issues 3.1.2 Corporate Social Responsibility Goals 3.1.2.1 (CSRG) The six Corporate Social Responsibility Goals announced during the Shareholders’ Meeting of 12 May 2016 translate the Group’s commitment to its strategic transformation taking into account the UN’s 17 Sustainable Development Goals, which, while not directly targeted at companies are not attainable without their active contribution. These ambitious CSR goals lay down a roadmap for the Group’s businesses and subsidiaries for success with the CAP 2030 strategy. Six major themes have been adopted. Three of them are related to the environment and natural resources: climate, biodiversity and energy efficiency. Three others serve to confirm EDF’s long-term social and societal commitment: support for the most vulnerable communities and access to electricity, the systematic implementation of consultation mechanisms for new projects, human development to ensure the safety and equal treatment of all our staff. These goals are integrated into the Group’s sustainable development policy, which is intended to stipulate all the Group’s sustainable development requirements. CSR Goal (CSRG) no. 1 : EDF, a company committed to climate issues (see section 3.2.1) CSR Goal (CSRG) no. 2 : EDF, a company with a responsible attitude to its employees (see section 3.3.3.1) CSR Goal (CSRG) no. 3 : EDF, a company with a responsible attitude to people – Energy poverty (see section 3.3.1.1.3), CSR Goal (CSRG) no. 4 : EDF, a company standing shoulder to shoulder its customers (see section 3.2.2) CSR Goal (CSRG) no. 5 : EDF, a company with a responsible attitude to communities – Dialogue and consultation about our projects (see section 3.3.1.2.5) CSR Goal (CSRG) no. 6 : EDF, a company committed to biodiversity (see section 3.3.2.1) Group policies 3.1.2.2 Sustainable Development policy 3.1.2.2.1 The EDF group Sustainable Development (SD) policy as revised in June 2018 includes the Group’s carbon plan  (1) and more specifically CSRGs. 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 divided into four broad areas: 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. They apply to all Group entities and subsidiaries as well as to projects and investments submitted to decision-making bodies (see section 3.1.2.4.1 “Integration of Corporate Social Responsibility Goals into the Group’s strategic process and project screening”).

Other CSR policies 3.1.2.2.2 In addition to the Sustainable Development policy, other Group policies focus on other specific aspects of corporate responsibility (HR policies, Procurement policies, Ethics & Compliance policy, Nuclear Safety policy, etc.). Corporate responsibility policy is progressively being implemented in all the Group’s fields of business. For example, the Company recently committed to the new FAIRe programme set up by Union des Marques (UDM), making EDF one of the thirty pioneering businesses in the field of responsible communication  (2) . Governance of corporate responsibility 3.1.2.3 Board of Directors 3.1.2.3.1 The Board of Directors sets the strategies for the Company’s activities and oversees their implementation, acting in its corporate interest, while taking into consideration the social and environmental issues of its activities. The Board also regularly examines, in connection with the strategy that it defines, opportunities and risks such as financial, legal, operational, social and environmental risks, as well as the measures taken as a consequence. Within this framework, it particularly examines risks and opportunities relating to climate change and their impact on the Group’s strategy and its activities. It ensures the implementation by the Company of a programme to prevent and detect corruption and influence-peddling and a policy to promote non-discrimination and diversity, particularly in terms of balanced representation of women and men on the Company’s governing bodies. The Corporate Responsibility Committee  (3) , as one of the Board of Directors committees, examines, in connection with the Group’s strategy, the Group’s commitments and policies, as well as their implementation, in terms of ethics, compliance, and corporate responsibility. It examines the way in which the Company takes account of issues relating to climate change. It makes sure, in conjunction with the Audit Committee, of the existence of programmes to identify and manage the main risks in these fields and comply with legal and regulatory provisions. In the line of its duties, it particularly examines, in conjunction with the Audit Committee, information regarding the declaration of extra-financial performance included in the management report in accordance with the French Commercial Code ( Code de commerce ), the annual ethics and compliance report, and the EDF mediator’s annual report. It submits an opinion to the Board on the way in which the Company implements a non-discrimination and diversity policy, particularly in terms of balanced representation of women and men on governing bodies. It can submit any opinions, proposals and recommendations to the Board of Directors in fields falling within its remit. This Committee’s role is to prepare the work of the Board of Directors and endeavour to guarantee the quality of its discussions; it does not replace the Board, which has sole decision-making authority (see section 4.2 “Members and functioning of the Board of Directors”). In 2019, among other issues, it examined socially-responsible sub-contracting, EDF’s relations with service providers in the nuclear industry, the Group’s diversity aims, changes to EDF’s non-financial rating, and revision of the materiality matrix. CSR Strategy Committee 3.1.2.3.2 The Corporate Social Responsibility Strategy Committee was set up in order to better coordinate all the CSR issues of the various Group entities and to ensure strategic management. This Committee is composed in particular of the Executive Director for Human Resources, the Executive Director for Finance and the Group Secretary General, and is chaired by the Executive Director for Innovation, Corporate Responsibility and Strategy. The CSR Strategy Committee met three times during the year, and particularly examined at each meeting the stages of the development of the Group’s main mission, how to take account of Corporate Social Responsibility Goals in the management cycle, particularly including climate commitments, revision of the materiality matrix, the impact of non-financial performance on financing, the Group’s CSR Agreement and implementation of the CSR policy by major subsidiaries, and regionally to purchasing processes, payment term action plans, and finally litigation issues regarding the duty of care. The minutes of these meetings are submitted to the Board of Directors.

(2) EDF’s commitment was confirmed by the publication of an “EDF responsible communication code”, written in collaboration with internal and external stakeholders, that includes 50 commitments, covering 12 chapters including: respect for human dignity and its audiences; clear and responsible communication; respectful environmental communication; relationships with responsible suppliers engaged in CSR initiatives; communication focused on listening and discussion; and, impeccable digital communication. In 2019, to support and manage the implementation of the 50 commitments in activities and projects, 20 responsible communication performance indicators were put in place. Mandatory “Responsible communication” training courses were deployed internally for the communication and management function. For example, EDF neither publicly retaliates following the publication of articles particularly critical of the Company, nor does it use certain indirect communication techniques. (3) Internal rules of procedure of 8 October 2019. (1) See section 3.2.1.1 “EDF, a company committed to climate issues”.

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EDF | Universal registration document 2019

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