EDF / 2019 Universal registration document

3. Non-financial performance EDF, a responsible company

Expertise from sustainable development 3.1.2.4.5 partnerships

In France, a comprehensive “environment – sustainable development” training programme features both business line and cross-disciplinary training focusing on themes of environmental management, standards and regulations, and environmental analysis. In 2019, 2,760 employees received training representing 21,752 hours  (1) . The “environmental skills development” network contributes to forecasting and managing both skills in this field and experts’ career paths. Locally, each of the Group’s operational units and companies identify events that could have an environmental impact, manage emergency situations that could result from them, conduct corresponding crisis response drills, implement monitoring and communicate on environmental events under its responsibility. High-stake environmental event There were no high-stakes environmental events during 2019  (2) . A single noteworthy event occurred at the start of the filling of the SINOP dam in Brazil, causing two incidents of fish mortality in February and March, and resulting in the death of several dozens of tonnes of fish. The main cause identified was gas oversaturation (frequent in Brazil and in major rivers), due to the use of spillways during this phase. Sinop Energia (51%-owned by EDF Norte Fluminense, a 100% EDF-owned subsidiary) committed to putting in place prevention and monitoring programmes as well as to paying BRL 4 million (approx. €0.9 million) in financial compensation for the environmental impacts. Certain operations may result in litigation arising from complaints filed by NGOs or non-profits or formal warnings from national regulatory authorities (the French Nuclear Safety Authority (ASN), the Prefecture, etc.) or disputes relating to land transactions. In 2019, EDF was ordered to pay total penalties amounting to €28,000, covering 6 penalties all of less than €10,000, and including 4 fines (concerning 3 nuclear sites and Edison) and 2 criminal settlements (hydropower and nuclear) regarding waste management, water quality, or BNF (basic nuclear facility) regulations. Reduction of chemical risk When it is technically feasible, in order to reduce the pollution risks, the Group’s entities have also implemented a programme to eliminate or substitute certain chemical substances with more environmentally-friendly products. This work focuses as a priority on CMR (carcinogenic, mutagenic, or toxic for reproduction) substances or those considered extremely worrying. Substitute products are often environmentally certified, e.g. cleaning products (regarding our subsidiaries Citelum, Électricité de Strasbourg (ÉS) and data centres). Following on from the studies of previous years, substitutions are implemented: environmentally acceptable oils for hydraulic production, fluids for thermal and nuclear power plant turbines in France and the United Kingdom, varnishes and paints (Industrial Division, Property Management and Citelum). As part of an R&D project, activities aim to identify and evaluate mature and innovative liquid effluent treatment technologies. Furthermore, EDF, Hydro, Property Management, Enedis and ÉS are continuing with their programmes to decontaminate equipment containing PCBs  (3) and PCTs  (4) of more than 50 ppm. These action plans continued in 2019 are on target. Complete disposal is set for the end of 2025. EDF R&D, EDF IES, EDF PEI, Cyclife France, Dalkia and the thermal and nuclear generation sites no longer have any equipment exceeding the threshold.

Partnerships are an important lever for implementing Corporate Social Responsibility Goals, particularly in four areas: biodiversity, energy transition, vulnerable populations and fuel poverty, dialogue and consultation. In France, in terms of biodiversity, the Group relies on domestic partnerships built over time with major players in the sector (see section 3.3.2.1.1 “EDF’s commitment in favour of biodiversity”). Regarding climate and the fair ecological transition in the broad sense, the partnership forged with the Sustainable Development and International Relations Institute (Iddri) allows EDF to engage in discussions on issues, develop expertise and identify emerging issues. Assisting vulnerable sections of the population in the energy transition constitutes one of EDF’s partnership areas, especially with the social and fair economy and social entrepreneurship sector. EDF therefore entered into a partnership with ASHOKA France, one of the pioneers and major players in social entrepreneurship (see section 3.3.1.1.3 “Energy poverty (CSRG no. 3)”). In terms of dialogue carried out in the regions of France, partnerships continue with the French coastal protection agency (Conservatoire du Littoral) on “support for local communities” and with the National School of Landscape Architecture (ENSP) so that the operational divisions of EDF increasingly address the landscape dimension in their activities. The regional dimension is also extended to the national level with the non-profit Remarkable Sites and Cities for supporting the development of our industrial heritage. Lastly, many local partnerships are being created as part of the regional dialogue with regional players. R&D resources for corporate responsibility 3.1.2.4.6 The EDF group’s Research & Development (R&D) activities are handled on the one hand by the Research & Development Division – EDF R&D and on the other by certain Group subsidiaries. These activities are complementary and in line with the Group’s CAP 2030 strategy. To achieve the aim of carbon neutrality by 2050, a process in which electricity will be a major factor to make the French economy carbon-free, R&D has a crucial role to play. Its areas of research focus on three main themes: the electrical transition; the climate transition; and the digital and societal transition. In 2019, the EDF group’s total R&D budget was €713 million. This was divided into €523 million for R&D by EDF and independent R&D by certain subsidiaries, mainly Framatome, EDF Energy and Edison. In particular, expenditures covered research into energy efficiency, uses of electricity as a substitute for fossil fuels, renewable energies and their insertion into the grid, energy storage, carbon-free hydrogen and its applications for decarbonising the economy, sustainable cities, the local impacts of climate change and other environmental issues such as biodiversity, water quality, and the mitigation of disturbances (See section 1.6 “Research & development, patents and licences”). For a range of illustrations of EDF’s R&D commitment on material issues, see sections 3.3.2 and 3.3.3.

(1) Within the scope of EDF SA.

(2) High-stake environmental event: an event causing serious environmental damage (areas, resources and natural environments, sites and landscapes, air quality, animal and plant species, biological diversity and balance) combined with extensive media coverage or a financial impact of more than €3 million. An event causing environmental damage and likely to affect human health falls within the scope of a high-stake environmental event for the EDF group.

(3) PCB: Polychlorobiphenyls. (4) PCT: Polychloroterphenyls.

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EDF | Universal registration document 2019

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