EDF / 2019 Universal registration document

3. Non-financial performance

EDF, a company committed to the energy transition

The following chart shows the progress of the “electricity and heat kWh carbon intensity” performance indicator for EDF group: EDF, a leader in low-carbon energy

examines and validates the Group’s low-carbon trajectory. Where necessary, alternative options are put forward as part of the Medium Term Plan (MTP) process during validation of the strategic and financial guidelines for the EDF group’s different entities in May-June. The Board of Directors establishes the Group’s strategic, economic, financial, and technology orientations, taking climate issues into consideration. To do so, it regularly examines climate change-related risks and opportunities and gives its opinion on the Group’s climate strategy. In November 2018, EDF group’s carbon commitment governance was presented to the Board of Directors’ Governance and Corporate Responsibility Committee (CGRE). In October 2019, a specific brief on climate risks was presented to the Board of Directors’ Audit Committee. Any investment projects brought before the Group’s decision-making bodies that are likely to cause significant direct or indirect greenhouse gas emissions include a verification of their consistency with the Group’s low-carbon trajectory and with the energy transition dynamic in the countries in question. Set up in 2018, the Corporate Social Responsibility Strategy Committee is in charge of managing EDF group’s climate strategy. This includes monitoring the Group’s carbon commitment, as well as monitoring the progress of Scope 3 indirect emissions and the adjustment strategies engaged to cope with the course of climate change-related risks and opportunities. The CSR Strategy Committee meets at least twice a year, and reports on its activities at least once a year to the Group’s Executive Committee and the Board of Directors’ Governance and Corporate Responsibility (CGRE) Committee. The Sustainable Development Department (DDD) is responsible for operational monitoring of EDF group’s climate change-related actions and indicators for implementation of the Group’s sustainable development policy. It works in liaison with the corporate departments and subsidiaries concerned, backed by the Group’s Environmental Management System (EMS) and the Sustainable Development Committee (SDC), which serves as the Group’s Environment Board. Actions to implement the Group’s sustainable development policy are the responsibility of the Group’s various business units and entities. The Group Risk Department (DRG) ensures that all entities examine climate risks (physical and transition risks) in their risk map, which is updated annually. The DRG coordinates the updating of EDF group’s policies and, in collaboration with the DDD, ensures that each update includes a specific analysis to verify its consistency with the Group’s climate strategy. The Sustainable Development Board, whose members are third parties representing the different issues facing EDF group, is an avenue for civil society to communicate its expectations in terms of combating climate change. The Scientific Council is regularly approached to inform the Company’s climate strategy, presenting the progress of scientific knowledge in the field (in particular from the IPCC  (3) ) and suggesting strategic orientations for EDF group’s R&D. The Scientific Council was approached in 2019 to produce a report on “Climate change and its impact on EDF group”; this was used in the climate risk brief presented to the Group’s Executive Committee and Audit Committee. Practical initiatives to reduce EDF group 3.2.1.1.3 emissions To maintain its position as low-carbon leader and achieve its emissions reduction goal, EDF group has three main sources of leverage: ensuring long-term performance of the Group’s nuclear fleet; doubling renewable energy capacity by 2030  (4) ; reducing CO 2 emissions within its production asset portfolio (see also section 1.4.1.4.2 “Issues relating to thermal generation”). Shutdown of coal-fired plants Between 2010 and the end of 2019, EDF group permanently shut down over 4,500MWe of coal-fired plants in France (10 units) and the United Kingdom (2 units). These closures were accompanied by employee redeployment measures and initiatives to develop new local economic activities. The most recent plant to be shut down was Cottam, operated by EDF Energy, in September 2019.

Carbon intensity: CO 2 emissions due to heat and electricity generation (gCO 2 /kWh)

100

82

80

57

55

60

40

20

0

Objectif 2030

2019

2018

2017

Key non-financial performance indicator (see concordance table with the non-financial performance statement in section 8.5.4). Direct CO2 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 stakes in the materiality matrix”. EDF group’s carbon intensity has continued to decrease, down to 55gCO 2 /kWh in 2019. This level is more than five times lower than the European electricity sector’s average of 294g/kWh, and over eight times lower than the worldwide electricity sector average of 485g/kWh  (1) , thus confirming EDF group’s position as the low-carbon leader within the electricity sector. Towards fresh commitments EDF group aims to become carbon neutral by 2050. In 2018, the Group had already committed to cutting its Scope 1 direct greenhouse gas emissions by 40% between 2017 and 2030, with a mid-point emissions goal of 35 million tonnes in 2023  (2) . Each year since 2016, EDF group has published a detailed greenhouse gas emissions report for the whole of its value chain, subject to third-party verification covering all significant emissions; this anticipates legal requirements in the field by several years. Being fully persuaded that achieving carbon neutrality requires a strategy to cut all its emissions, including those of its customers, in early 2020 EDF group signed up to the “Business Ambition for 1.5 degrees” commitment alongside 200 other global companies, setting itself greenhouse gas reduction targets aimed at restricting any temperature increase to 1.5 degrees. The Group has also committed to obtaining Science Based Target Initiative certification, and in doing so has now revised the target for decreasing the Group’s direct emissions by 2030 upwards from, 40% to 50% – and, for the first time, has committed to cutting Scope 3 indirect emissions (validation in progress). EDF climate strategy governance 3.2.1.1.2 EDF group’s climate strategy governance forms part of its sustainable development governance (see section 3.1.2.3.3 “The Sustainable Development Department”), and is managed at the highest level of the Group. The Executive Committee establishes the Group’s climate strategy. Within the Executive Committee, the Innovation, Corporate Social Responsibility and Strategy Director (DIRES) is in charge of climate issues. Each year, the Executive Committee

(2) Figures are still being adjusted to take into account the SBT initiative. (3) Intergovernmental Panel on Climate Change. (4) See section 1.3.3.3 “Very low carbon generation: nuclear and renewable energies”. (1) CO 2 Emission Factors, International Energy Agency, 2019 (2017 figures).

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EDF | Universal registration document 2019