EDF_REGISTRATION_DOCUMENT_2017

ENVIRONMENTAL AND SOCIETAL INFORMATION − HUMAN RESOURCES Optimising the use of natural resources and preserving the environment

Recycling water Water recycling is an important topic and there are numerous challenges to be met. In June 2017, the World Business Council for Sustainable Development (WBCSD) published the “Business guide for the circular management of water resources” under the guidance of the EDF group and Arcadis. Objective: to highlight the “5 R” approach – reduce, restore, reuse, recover, recycle – this blue gold, by not limiting itself to the industrial sites themselves, but more broadly to a collective action within the same region. The recycling of process and cooling water is growing throughout the Group, where appropriate. In Brazil, the EDF thermal power plant, Norte Fluminense, installed a system for the recovery and use of rainwater a few years ago, enabling it to reduce its annual withdrawals from rivers by 2%. In Italy, treated waste water from certain power plants is reused, resulting in a 1% saving in overall withdrawals. In some cases, the supply of part of the water from the heated cooling circuit of certain nuclear power plants for different uses (agricultural, industrial, etc.) is authorised within the framework of precise regulatory requirements. In France, EDF’s thermal power plants in Cordemais and Martigues recover rainwater or recycle their effluents so as to reduce their consumption of tap water, resulting in a saving of 150,000 cubic metres of water out of the 300,000 cubic metres previously consumed. In 2017 in Guadeloupe, rainwater recovery tanks were installed to reduce water withdrawals. Desalinating water The Martigues plant is also running a pilot project for sea water desalination, as is the EPR Flamanville 3 site, where the installation of a desalination unit is in progress to complete the means of producing demineralised water for the process. In southern Corsica, EDF has designed the cold water source for a thermal power plant by installing a sea water inlet, which reduces the consumption of fresh water significantly. In Guadeloupe, the TAC power plant in Jarry Sud also has a sea water desalination facility, which has made it possible to stop using tap water and save around 50,000 m 3 of fresh water per year. At the end of 2016, Edison had one CCGT plant (Simeri Crichi) in Italy with sea water desalination systems to replace their freshwater withdrawal. As part of the EPR NM demineralisation station studies, for a site with already existing units, the water use of a neighbouring WWTP, the reuse of rainwater and the use of mobile desalination as a complementary source of water is being studied for the consumption of tranches (EPR NM) to reduce the impact on the withdrawal of freshwater and to target, as much as possible, a level of withdrawal remaining within the withdrawal permits for the site. Innovating for sustainable water use The new Group SD policy includes a water requirement: “Managing water in an integrated, inclusive and sustainable manner” and results in a specific indicator: “Each energy generation site shall plan, evaluate and report the sustainability of its water use using an internal EDF method (pending a recognised international method)”. Since the existing methodologies for calculating water footprint were not appropriate or relevant to the energy sector, the EDF group led work between 2012 and 2015 to develop specific terminology and a methodological framework that is consistent with the characteristics of the energy sector as part of the World Water Forum. Following these developments, EDF launched an internal 3-year project at the end of 2016, involving the principal Group entities, called SUREAU for “Soutenabilité de nos Usages de la Ressource en Eau” (Sustainability of our Uses of Water Resources). This project aims to propose a profile of indicators of sustainability for our water uses to feed into dialogue with local stakeholders. These indicators are to be adapted to the context, and can range from a development level to a set of developments, from a sub-basin to a river basin. Water and climate 3.4.2.2 Water is core to the implications of climate change: as a resource, it is one of the most vulnerable to climate disturbances whilst also being a risk factor for regions and their inhabitants in view of the increasing frequency and intensity of extreme climate events, such as flooding and drought. Climate change will have a material

impact on the availability, quantity, distribution and location of water resources and will exacerbate competition among different users of water. Accordingly, EDF has had a permanent system in place for many years for monitoring meteorological phenomena and their impact on the sources from which it collects water (subterranean groundwater, rivers or the sea). Continuous data analysis makes it possible to predict and monitor risky hydro-meteorological phenomena. The teams responsible for the monitoring and forecasts work seven days a week, 24 hours a day. In France, 2017 will remain a year with aggregate (water) shortage in most of the months of the year (with the exception of March) with deterioration from January, worsening gradually from April and especially in the autumn, when there were severe low water conditions over a large part of the south (and the Rhône basin in particular). The water shortage (France aggregate) is estimated at about 20% over the year and places 2017 as the 5 th driest year since 1948. 2017 was also marked by an exceptional level of drought in Corsica (Prefectural Orders for limiting water consumption). Despite strong pressure on various uses, close management of the reserves allowed EDF’s hydropower generation to reach 86% of the generation capability at the end of November and the heavy December rains allowed full capacity storage in reservoirs at the end of the year. It must be noted that poor flows from the Rhône obliged EDF to ensure a flow ≥60 m 3 /s in the Miribel canal for 340 days (a necessary measure to support the water table for Drinking Water Supply). Since this overflow happened at the Lons dam due to a discharge of 30 m 3 /s, the production loss is estimated at approximately 20GWh over the year. A new auxiliary water intake was constructed at the Norte Fluminense thermal power plant in Brazil to cope with a continuous decline in water levels over the past 12 years in the Macae River where water is withdrawn for cooling the plant. Governance and water sharing 3.4.2.3 Governance The optimisation of water used in EDF’s generation activities is vital to ensure management of water resources and, in particular, to honour our commitment to guarantee multi-purpose water resources (drinking water, water for irrigation, tourism, etc.) and the needs of local authorities. EDF is represented at meetings of each of the river basin authorities (the Water Agencies’ reservoir Committees) by a basin coordination delegate. The new master plans for water development and management (SDAGEs) for the period 2016-2021, drawn up under the aegis of the River Basin Committees, were validated in each basin at the beginning of 2017. EDF’s actions are fully engaged within this new framework. Water management and sharing To cope with the particular climatic situation described above, various levers were activated within EDF to both optimise production and meet the expectations of other stakeholders (including water releases to preserve the fish population in the lower Ain Valley). This represents 911 hm³ of volumes removed from storage, including 341 hm³ for internal optimisation and 570 hm³ to meet external demands in the context of the specifications of hydropower concessions or agreements. Two hydropower plant reservoirs were under special management between end July and end August (Serre-Ponçon, Vouglans) to address the obligations with regard to multi-purpose water resources. Production losses due to environmental constraints, related to temperatures and/or river flows, are slightly lower than those of 2015 (year relatively similar with a hydrological deficit of 20% also). Overall, and despite difficult weather conditions, EDF was able to meet its commitments to stakeholders in terms of low-water replenishment and agricultural support, as well those concerning flow rate restitution or observance of water levels for tourist related purposes.

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EDF I Reference Document 2017