EDF / 2019 Universal registration document

1. The Group, its strategy and activities Description of the Group’s activities

Stages of the nuclear fuel cycle in France

Upstream To ensure the continuity and security of the supply of its reactors in France and the UK, EDF retains overall control of all operations at each stage of the cycle, through a portfolio of contacts and by stockpiling at different stages of the front-end stage of the fuel cycle (natural uranium, fluorinated enriched or unenriched uranium, and warehousing of new assemblies). Orano is, in this respect, an important supplier (see section 2.2.4, “Operational Performance – 4E Operational continuity of supply chains and contractual relations"). Where necessary, the Group implements a strategy of currency hedging for its uranium supplies. Natural uranium supply EDF’s uranium supplies are guaranteed by long-term contracts for periods of up to 20 years with a policy of diversification in terms of sources and suppliers. In 2019, EDF continued the securing of its long-term supplies with a number of major market suppliers. Indexation formulas for portfolio contracts of natural uranium supply include fixed prices (base prices whether inflated or not) and variable prices (indexed according to

market price indexes) and are sometimes limited by floor and ceiling prices. Consequently, the effects of fluctuations in market prices of natural uranium on supply costs are limited. With manufacturers in the nuclear industry meeting within the World Nuclear Association (WNA), which brings together, among other, companies representing most of worldwide uranium production, EDF is making sure to implement best practices in mineral extraction so as to contribute to making overall progress in this sector. Since 2011, EDF has been periodically conducting mine audits based on a method drawn in collaboration with the WNA, which constitutes a standardised framework recognised by all stakeholders in the sector. Recommendations may be made, together with an improvement plan if necessary. These principles defined by the WNA aim to perpetuate the best practices observed on the field and share them with all sector stakeholders; they notably reassert the principles defined by the International Council on Mining and Metals for sustainable extraction and use of uranium  (1) . The clauses listing EDF’s expectations in terms of enforcement of the fundamental rights and main international standards by suppliers and sub-contractors have progressively been inserted in contracts signed by EDF. In particular, they stress transparency and EDF’s faculty to come and audit the supplier.

(1) These ten principles concern the health of workers and local populations (safety and protection against radiation and emissions); environmental preservation (waste management and protection of drinking water resources); the need for a legal framework in accordance with current legislation and international standards (AIEA) to monitor and manage radiation, health and safety for stakeholders and the general public, waste management and environmental protection; information, transparency and dialogue with stakeholders; responsible management of hazardous waste and contaminated materials by using the best available technologies; the development of a quality management system upstream of the project (Environmental impact study) including risk analysis; accident management preparation; transport of hazardous waste in complete safety and security; regular staff training.

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EDF | Universal registration document 2019