EDF / 2019 Universal registration document

3. Non-financial performance

EDF, a company committed to the energy transition

EDF, a company committed to the energy transition 3.2 Subject to approval by the Shareholders’ General Meeting on 7 May 2020, EDF’s raison d’être is “to build a net zero energy future with electricity and innovative solutions and services, to help save the planet and drive wellbeing and economic development”. This underscores EDF’s aim, both in France and internationally, of developing solutions that allow everyone to play an active role in energy transition. EDF is by far the largest contributor to carbon-free energy in Europe and the leading investor in energy transition. Enabling EDF group to adhere to its carbon commitment has entailed the Group’s main subsidiaries also setting themselves ambitious goals: in the UK, EDF Energy is aiming to cut its carbon intensity and achieve carbon neutrality before 2050. In Italy, Edison aims to cut its carbon intensity to less than 260g/kWh by 2030. The following chart shows the progress of EDF group’s Scope 1 direct greenhouse gas emissions: EDF, a leader in low-carbon energy

EDF group direct greenhouse gas emissions (scope 1) (Mt CO 2 eq) √

EDF, a leader in low-carbon 3.2.1 energy As a world leader in low-carbon energy, EDF group has developed a diversified production mix, based mainly on nuclear power and renewable energy. To address the climate emergency, EDF group is implementing an ambitious strategy combining low-carbon transition, adaptation, and transformation, helping to achieve Sustainable Development Goals 13 (combating climate change) and 7 (access to clean energy). EDF, a company committed to climate 3.2.1.1 issues (CSR Goal (CSRG) no. 1) EDF group’s ambition 3.2.1.1.1 EDF group is aware of both the impact of its operations on climate change, and the impact of climate change on its operations. In response to the climate emergency, and to address stakeholder expectations, in 2016, EDF group made doing better than the 2°C trajectory requirements established by the Paris Agreement its first “CSR Goal” (CSRG No. 1), significantly cutting its CO 2 emissions. In 2018, EDF group committed to cutting its direct greenhouse gas emissions to 30 million tonnes by 2030, and the goal of becoming carbon neutral by 2050. This commitment has been incorporated into the Group’s Sustainable Development policy. The 2030 goal of 30 million tonnes corresponds to a 40% reduction in EDF group’s direct emissions compared to 2017; this goal was raised to 50% at the beginning of 2020. The goal was set using the method developed as part of the Science Based Targets initiative for the electricity industry, taking 2015, the year in which the Paris Agreement was signed and in which EDF group’s 2030 strategy was launched, as the baseline. In addition to its carbon commitment for 2030, EDF group has also set itself a half-way target of 35 million tonnes by 2023  (1) . This is an ambitious commitment: in addition to being one of the world’s leading electricity firms in terms of net capacity and output, EDF group already has one of the lowest carbon intensities amongst electricity firms, such that it has already significantly reduced the European electricity sector’s carbon footprint.

51 Mt

50

36 Mt

40

33 Mt

<30 Mt

30

20

10

0

Target 2030*

2019

2018

2017

Key non-financial performance indicator (see concordance table with the non-financial performance statement in section 8.5.4). Direct GHG emissions, excluding life-cycle analysis (LCA) of fuel and production resources. For the scope and method used for this indicator, see section 3.4 “Indicators and methodology”. This indicator refers to key stake no. 2 “Renewal, extension and performance of the energy mix aimed at decarbonisation” described in section 3.6.2 “Description of key stake in the materiality matrix”. √ 2019 indicator subject to reasonable assurance check by KPMG S.A. *Figure being adjusted to take into account the SBTi initiative. EDF group’s direct greenhouse gas emissions continued to fall in 2019 (7% down on 2018). This decrease in EDF group’s direct emissions in 2019 was due mainly to a sharp drop in the use of coal to produce electricity and heat within the Group (60% less than in 2018), with it being partially replaced by natural gas, which generates far fewer emissions (an additional 7%). Part of GHG reduction recognised between 2017 and 2018 was due to EDF Polska’s assets being transferred to the Polish public undertaking PGE. EDF group is aware that disposing of carbon assets does not constitute a strategic response to the global climate emergency, and is therefore aiming to shut down all of its high-emissions power plants: in the years 2017-2019, these included Porcheville, Cordemais 2 and Cordemais 3 (the last remaining oil-fired unit) in France, and the coal-fired power plant in Cottam, UK.

(1) Figure being adjusted to take into account the SBT initiative.

136

EDF | Universal registration document 2019

www.edf.fr