EDF / 2019 Universal registration document

3. Non-financial performance

EDF, a company committed to a just and fair transition

EDF is developing off-grid projects designed to provide domestic customers and very small enterprises, mainly in Africa, with electrical services, including ZECI in Ivory Coast, ZEGHA in Ghana, BBETO in Togo, Sun Culture (solar-powered pumping) in Kenya, and KES in South Africa. EDF today makes it possible to supply energy (8 to 10MW of installed capacity) to more than 500,000 people and aims to multiply this figure by 4 over the next 3 years. This energy is supplied along with “low-energy” equipment (lamps, radios, fans, televisions) enabling lower energy use. New products are also being developed to meet the needs of local populations, particularly solar-powered pumps (meaning people can stop using diesel-powered pumps), solar kiosks and even mini-grids (see section 1.4.5.3.9 “Off-grid energy”). Again in Africa, EDF set up the EDF Pulse Africa Awards to support entrepreneurial activity by identifying potential new partners for the development of energy projects and stimulating the development of innovative solutions to the continent’s energy issues. In 2019, to ensure optimal project sourcing, a nationwide pre-selection campaign, the EDF Pulse Africa Tour, was organised in 7 African countries (South Africa, Cameroon, Ivory Coast, Ghana, Morocco, Senegal and Togo). In the end, EDF Pulse Africa 2019 attracted 536 projects from 26 African countries. The five winners received a financial grant, operational and financial advice, project development partnerships with incubators based in African countries, and access to EDF’s innovation ecosystem, including R&D, EDF’s in-house creativity labs, and EDF Pulse Croissance (EDF incubator and corporate venture dedicated to start-ups). Furthermore, most major EDF projects, especially those in Africa and Asia, are designed to improve access to electricity on a local, regional and national scale. Preparatory work on the construction of the Nachtigal hydroelectric facility in Cameroon began in 2019. This hydroelectric dam project meets the country’s growing demand for electricity with a sustainable low-carbon solution, and a very competitive electricity generation cost. Nachtigal is a national priority for securing Cameroon’s electricity system. In Myanmar, an in-depth environmental, social and societal impact and risk assessment is ongoing on the Shwe Li 3 project. The issue of access to energy is decisive in the EDF group’s positioning on this project. In French Guiana, EDF supports the electrification programme in Haut-Maroni, with the construction of hybrid generating plants combining a photovoltaic system, storage batteries and diesel engines (except for Pidima which does not have a diesel engine). Planned performance aims for an annual renewable energy coverage goal of 70% (see section 1.4.4.3 “Island energy systems”).

water intakes), which bring about modifications of the biodiversity upstream of the structures in the event of flood defence, and downstream, due to the fragmentation of areas and flow limitations or variations. The impact of thermal structures, to a lesser extent, concerns the degradation and fragmentation of natural terrestrial habitats, due to the land occupied by the existing sites or projects, overhead transmission systems, wind turbines and street lights, which pose a threat to birds and bats. In order to better assess the threats and opportunities related to the impacts and dependency of the Company’s activity on ecosystems, EDF is testing the Ecosystem Services Review (ESR) method.  (2) This process of continuous improvement  (3) has earned several Group companies recognition for their initiatives: in Mexico, Citelum has been recognised by the COEBIO (Council that distinguishes companies responsible for bioethics); in the UK, EDF Energy is one of the five companies to have met the Wildlife Trusts’ Biodiversity Benchmark on multiple sites; in France, EDF has been recognised for its commitment to the National Strategy for Biodiversity (SNB) by the Ministry of Ecology for the 2014-2017 period. Developed with its partners, this commitment has resulted in a major focus and concrete actions implemented in favour of biodiversity. EDF’s commitment in favour of biodiversity 3.3.2.1.1 EDF’s long-term commitment consists of generating positive impacts on biodiversity, without limiting itself solely to knowledge. This goal, which is binding upon the whole Group, concerns the entire lifecycle of installations, from the project study stage, to construction and operation through to the end of the life of installations. It spans the whole length of the value chain, including procurement policies and relationships with suppliers and subcontractors. The Group intends to develop a positive approach to biodiversity, by improving its practices and by avoiding as much as possible irreversible damage to the natural environment. This is why EDF does not solely focus on reducing the impacts of its industrial operations on ecosystems. In 2018, the Group’s commitment to the act4nature initiative specified the modalities for rolling out this CSRG, which is broken down into five main objectives: mobilising the Group’s entities, understanding biodiversity issues and implementing concrete actions, innovating for biodiversity, engaging in a participatory and open process, and contributing to public policies. Mobilise all the entities of the Group 3.3.2.1.2 EDF’s commitment in favour of biodiversity mobilises the entire Company, its business lines, employees, activities and its projects. Management in favour of biodiversity is certified via the EMS (see section 3.1.2.4.2 “The environmental management system (EMS)”). Training and awareness raising Each company manages its own training and internal awareness courses for biodiversity. Training is often carried out with the help of non-profit naturalist partners. In France, eight business guides have been published, written in a manner which very closely addresses the biodiversity issues and challenges specific to each operational activity. Training is organised both at the national level and within the entities. Avoid, Reduce, Compensate  (4) The Group applies the principles of the mitigation hierarchy  (5) or the ad hoc regulations of the country where it is located, which are sometimes more demanding (particularly in Europe): thus, in France, the Group companies apply the mitigation hierarchy (Avoid, Reduce, Compensate) doctrine for all projects and facilities in operation. The Company’s practices in this area were challenged by the international recommendations promoted by the BBOP  (6) . The French biodiversity law of 2016 requires the implementation of “offsetting measures designed to avoid a net loss, and, preferably, even make a net gain in biodiversity”. This is what the EDF group does in France. In the UK, EDF Energy set the goal of having a positive net impact before 2030.

EDF, an 3.3.2

environmentally-friendly company EDF, committed to biodiversity 3.3.2.1 (CSRG no. 6)

Because most of its industrial facilities are located in or near protected areas, the Group has made biodiversity a major commitment for several decades. Therefore, EDF is a landowner and a manager of natural resources of great importance. Improving our knowledge of this heritage, reducing the impacts of our activities, and enriching local biodiversity are part of the performance goals for these industrial sites. The importance of the issue explains why the Group committed to biodiversity as early as the 1970s, with for example, the creation of a national laboratory on hydro-ecological issues in France, and the drawing up of a Biodiversity policy in 2006. The pressures of the Company’s activities on biodiversity mainly concern  (1) water and aquatic biodiversity: hydraulic generation structures (power plants, dams and

(1) Method developed by the World Resource Institute (WRI) and the World Business Council for Sustainable Development (WBCSD).

(2) GRI indicator: G4 – EU 13.

(3) Action on biodiversity is certified via the Environmental Management System (EMS), see section 3.1.2.4.2.

(4) IFC Guidance Note 6: Performance Standard 6 of the International Finance Corporation (a World Bank organisation) dedicated to Biodiversity Conservation and Sustainable Management of Living Natural Resources. (5) This is a biodiversity risk management support tool. (6) Business and biodiversity offsets programme (BBOP): The Business and Biodiversity Programme is an initiative that lasted from 2004 to 2018. It promoted standardised best practices through the coordination of a network and publication of various documents.

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EDF | Universal registration document 2019