EDF_REGISTRATION_DOCUMENT_2017

ENVIRONMENTAL AND SOCIETAL INFORMATION − HUMAN RESOURCES Pay close attention to our co-workers and make our internal transformations a success

Collective Retirement Savings Plan The EDF group Collective Retirement Savings Plan is open to employees of EDF and of the Group’s French companies in which EDF owns directly or indirectly at least 40% of the share capital which have signed up for the Collective Retirement Savings Plan. Two mutual investment funds are offered to employees: a solidarity mutual fund and the “Cap Horizons” umbrella fund, offering targeted management of the savings invested depending on retirement age. The EDF group’s Collective Retirement Savings Plan totalled approximately €816 million at the end of 2017. Profit-sharing, as well as individual payments and transfers from the Time Savings Account that employees make to the Collective Retirement Savings Plan, are matched by the Company under conditions negotiated within each company. Time Savings Account Time Savings Account agreements have been signed within the Group’s principal French subsidiaries, specifically EDF and Enedis. As at 31 December 2017, the total number of hours saved in the time savings account by EDF employees was valued at €724 million, and at €197 million for Enedis employees. This negotiated scheme enables employees who want to take leave to receive compensation corresponding to the saved time. It is also possible to monetise the time saved based on the current Time Savings Account agreement or make transfers to the Group Corporate Savings Account and the Collective Retirement Savings Plan. Employee shareholding On 31 December 2017, current and former employees of the EDF group held a total of 35,252,261 EDF shares, i.e., 1.20% of the share capital. This number includes, firstly, 30,856,184 shares (i.e. 1.20% of capital) based on the definition of employee shareholding in accordance with Article L. 225-102 of the French Commercial Code (shares held by employees and former employees of EDF via “EDF Share” mutual plans of the EDF group corporate savings plan and the EDF International group corporate savings plan). This number includes, secondly, nearly 4,396,077 shares, i.e. 0.15% of capital, held directly or indirectly, without a non-transferability period or after the non-transferability periods, by current or former employee shareholders. Most of the shares held by employees are held via the Group Corporate Savings Plan. In accordance with the law, the dilution of the State’s stake in the EDF capital triggers the obligation to carry out an offer of EDF shares reserved for employees (ORS), and, under certain conditions, for retired and former employees. Social welfare policy 3.6.3.2 The Group fringe benefits policy is guided by three principles: a principle of responsibility, which covers three requirements: ■ guaranteed social cover, in terms of health, welfare and pensions, ■ non-discrimination (access to health coverage must not be dependent on ■ the employee’s state of health), regulatory compliance; ■ a principle of balance between competitiveness and sustainability: ■ the combined level of compensation and fringe benefits meets the need for ■ the Group’s companies to be attractive on their local markets, fringe benefits must be able to be maintained over time and accordingly be ■ financially sustainable in the long-term both for employees and the employer; a principle of appropriation by beneficiaries: ■ employees are informed of the content of the fringe benefits in order to ■ make it easier for them to understand and actually receive them. Status of employees in the Electricity & Gas Industries (EGI): a specific social welfare plan In France, the vast majority of the Group’s workforce are employed by companies descended from “historic operators” (EDF, Enedis, PEI) which have electricity and gas industry or “EGI” status. This is the case, in particular, of the main components of Électricité de Strasbourg.

Fringe benefits at these “historic operators” were mainly introduced via the Law of 8 April 1946 organising the monopoly on electrical generation and distribution electricity and via the maintaining of a special social security plan linked to the professional status of employees in the EGI branch (Decree of 22 June 1946). Today still, the main fringe benefits that set EDF apart from other major groups are based on these legislative or regulatory texts: special pension plan, special health plan for, firstly, incapacity for work and, secondly, healthcare costs, including an additional mandatory part also covering retired employees, centralised social activities in the professional branch, financed by companies in the Sector and managed independently by the unions. In addition to these schemes, which have remained very stable over the last few decades, is a benefit in kind historically based on a company decision which covers gas and electricity supplied by historic operators to employees and is maintained for retired employees. Significant changes have been made over the last decade: EDF’s IPO and the application of international accounting standards required the ■ valuation and provisioning of commitments to retired employees. The maintaining of the industry’s special pension and healthcare cost plans faced with this requirement was made possible by the overhaul of their financing: affiliation with standard mandatory plans for pensions and strengthening of affiliation between current and retired employee plans for complementary health insurance cover; the special pension plan has also, like other public sector special pension plans, ■ been increasingly affected by efforts to reform mandatory pension plans launched by successive governments. Except for the pension calculation method (specific rate, applied to a salary at the end of career, with a reduced base), the main parameters (retirement age, required contribution period, etc.) are currently being brought into line with the standard compulsory plan; a number of other less wide-ranging rules remain specific. The definition of active service, enabling earlier retirements, has also been revised and how it is taken into account significantly overhauled for newly-hired employees, via the creation of a Retirement Days Savings Account. Finally, unlike other historic benefits, the level of employee health, disability and life cover appeared significantly less generous than that offered by other major groups, which led from 2008 to the introduction, in agreement with the professional branch, of complementary cover in these three areas. Other Group employees’ social welfare The Group’s other employees in France are covered by several collective bargaining agreements and can have fringe benefits provided by their own employer. Each employer must therefore ensure the consistency of the benefits offered with the Group policy presented above. This issue is regularly discussed with Group Human Resources. The same applies to Group companies based outside France, for which the regulatory context specific to each country should also be taken into account. Social activities Unlike the common practice in French law, the management of social and cultural activities is delegated to specific organisations in the EGI sector. The central social activity fund (CCAS), mutual and social welfare funds (CAS) and the CAS Coordination Committee are legal entities and are fully independent from EDF. The CCAS is administered exclusively by employee representatives and is supervised by the public authorities. The environment for companies in the electric and gas industries (IEG) has changed greatly since 1946. Negotiations conducted in 2016 under the aegis of the Ministry of Energy involving the union federations and employers’ groups highlighted the need for in-depth reform of the framework. Commitments made within the framework of these negotiations were formally drafted in a document called “14 February 2017 platform for the reform of IEG social activities including the modifications proposed by the mediator”. Decree no. 2017-952 of 10 May 2017 amended Article 25 of the national status of IEG personnel, incorporating certain commitments made under the platform, in particular the modification of the financing method for social activities to stabilise the level of resources for social activities and equitable rules between employers, and to optimise the management of human and financial resources, particularly in the area of catering, in order to manage operating costs for the benefit of members.

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EDF I Reference Document 2017