EDF / 2019 Universal registration document

3. Non-financial performance

EDF, a company committed to a just and fair transition

EDF, a company with a responsible attitude to people and communities

The Security of Assets against Malicious Acts Group policy sets out the principles, rules and organisation designed to detect threats, prevent risks of malicious acts liable to damage the Group’s assets and limit their consequences. This policy is based on a comprehensive approach that aims to protect people and the Group’s tangible assets but also, and with increasingly high stakes, its intangible assets. With the aim of making people accountable as near the ground as possible, each Group entity deploys this policy with assistance from the Security and Economic Intelligence Division, which is particularly tasked with identifying reference documents, managing “Security” activities, and making sure that measures put in place are effective and shared. A data management policy backs up the scheme to create value; it is more focused on the availability and profitable use of data, and aims to promote sharing, cross-disciplinarity, and reconciliation of data to generate new knowledge. A 2017 instruction establishes the framework of applicable requirements in terms of personal data processing, the necessary measures to meet these requirements, the procedures to check compliance with these requirements, and the procedures introduced to manage the Group’s subsidiaries. In terms of the Group’s digital transformation, note should be taken of EDF’s stand-out performance in the 2019 “eCAC 40”  (1) , a leading annual ranking measuring the level of progress by groups on the index, plus other big French businesses, in terms of their digital transformation. EDF improved its score (16.61/20) and rose to second in these rankings. This level of performance is driven by excellent results in categories covering the Company’s digital culture, management models, and level of technological expertise  (2) . EDF, a company with a responsible 3.3.1.2 attitude to communities Nuclear safety 3.3.1.2.1 The operational safety of nuclear facilities is taken into consideration from the initial design stage, and is regularly monitored, together with the implementation of an employee motivation policy and large-scale investment programmes. The Group’s nuclear safety policy is incorporated into training for both EDF employees and subcontractors. Nuclear safety is subject to internal controls (annual reviews, internal control plans and nuclear inspection audits in France) and external controls (peer reviews between corporate members of WANO  (3) and OSART  (4) audits conducted by experts from the IAEA). In France, the safety of nuclear facilities is controlled by the ASN ( i.e. Nuclear Safety Authority). In the UK, the Office for Nuclear Regulation (ONR) is the independent safety regulator in the civil nuclear sector. It monitors compliance with safety rules, including for the transport of radioactive materials. The “EDF group Nuclear Safety” policy was redefined in 2017  (5) .

Nuclear safety: Number of significant level 2 events on the INES scale

5

4

4

3

3

2

1

1

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). For the scope and methodology of this indicator, see section 3.4 “Indicators and methodology”. This indicator refers to key stake no. 1 “Nuclear safety and safety of industrial infrastructures and data” described in section 3.6.2 “Description of key stakes in the materiality matrix”.

Hydropower Safety 3.3.1.2.2

EDF operates 432  (6) hydropower plants and manages 239 dams  (7) in France. The average age of the French hydropower fleet is 75 years  (8) . Hydropower safety aims to limit risks of structural failure, risks relating to the operation of facilities during times of flooding, as well as watercourse flow variations during operation. Like the nuclear safety policy, the hydropower safety policy aims for a high level of safety and continuous improvement (see section 1.4.1.5.1.2 “Hydropower safety”). Tax transparency 3.3.1.2.3

EDF has implemented a Group tax policy to define the applicable principles, in terms of taxation, to all of the Group’s relations with its financial or business partners and the government or tax authorities. The tax policy is applied by the Group Executive Director responsible for the Group’s Financial Management. It was approved in 2017 by the Executive Committee. At the end of 2019, as in 2018, the Group uploaded its country-by-country report (of data for fiscal year 2018) to the French tax authorities, in accordance with the provisions of Article 223 (5) c) of the French General Tax Code which follows the OECD’s recommendations.

(1) Les Échos Executives, 13 December 2019, “EDF: acteur de premier plan en matière de transformation digitale” (i.e. EDF: leading light in the world of digital transformation).

(2) See section 3.5 “Non-financial rating”. (3) World Association of Nuclear Operators. (4) Operational Safety Review Team.

(5) See section 1.4.1.1.3 “Environment, nuclear safety, radiation protection” in France and 1.4.5.1.2.1 in the United Kingdom. (6) EDF Hydro i.e. Continental France on EDF SA excl. subsidiaries.

(7) 239 class-A or -B dams according to French regulations.

(8) Arithmetic mean.

152

EDF | Universal registration document 2019

www.edf.fr