Credit facilities indexed to EDF’s corporate responsibility commitments
As part of its commitment to corporate social responsibility (CSR), EDF group promotes closer ties between the Group’s non-financial performance and its funding strategy through the use of new sustainable finance instruments.
Following the syndication of three lines of credit indexed to environmental, social, and governance (ESG) criteria in 2017 and 2018, EDF group agreed in 2019 to 3 new bilateral revolving credit facilities, each worth €300 million. These credit facilities incorporate a cost adjustment mechanism that takes into account reductions in the Group’s direct CO2 emissions, as well as EDF customers’ use of online consumption tracking software (used as an indicator of EDF’s success in making its French domestic customers play an active role in their energy use) and electrification of EDF’s light vehicle fleet. EDF group’s credit facilities indexed to ESG criteria now amount to over €5 billion, 48% of EDF group’s total credit facilities.
EDF Pulse Croissance incubator and corporate venture
The energy transition involves exploring innovative solutions and using start-ups. In 2017, EDF group launched the EDF Pulse Croissance incubator and corporate venture, with the aim of investing in start-ups and projects to encourage the emergence of new activities and future business lines for the Group, in France and internationally (see section 1.4.6.1.3 “EDF Pulse Croissance”).
3.2.1.1.5 Responsible management of indirect emissions
Carbon accounting over and above legal requirements
Since an attenuation strategy is impossible without an accurate knowledge of direct and indirect emissions, EDF group has implemented carbon accounting that goes well beyond the legal requirements. Every year, EDF group publishes a GHG report covering all the Kyoto Protocol greenhouse gases (CO2, CH4, N2 O, HFCs, PFCs, SF6, and NF3) and all the significant items listed in the GHG Protocol (Scope 1, 2 and 3), ranging from fuel manufacture to quality of life for office employees. Emissions are divided into three “Scopes”: Scope 1, which covers the direct emissions generated by EDF’s assets (power plants, vehicles, etc.), Scope 2, which covers indirect emissions relating to the purchase of energy (electricity, heat, etc.) for EDF’s own needs, and lastly, Scope 3, which covers other indirect emissions generated by EDF’s suppliers (upstream fuel), customers (combustion of gas sold), and non-consolidated investments.
EDF group’s GHG report is subject to third-party verification, covering all significant omissions. Today, EDF group provides one of the most detailed GHG reports for its entire value chain of any leading European electricity company.
EDF’s GHG report
EDF group’s full GHG report is published on the EDF website(1), separately from its non-financial performance statement. The full GHG report for 2019 is not yet available; it will be published in May 2020. The following table presents trends in the Group’s GHG reports between 2017 and 2018.
| EDF group’s greenhouse gas report | 2018 | 2017 |
|---|---|---|
| Scope 1 emissions | Scope 1 emissions 201836 | Scope 1 emissions 201751 |
| Scope 2 emissions | Scope 2 emissions 20180.5 | Scope 2 emissions 20170.5 |
| Scope 3 emissions | Scope 3 emissions 2018111 | Scope 3 emissions 2017110 |
Significant indirect emissions
EDF group’s significant indirect emissions cover the following greenhouse gas emissions: emissions due to the combustion of gas sold to end customers and emissions due to the production of electricity that has been purchased to be sold to end customers. Other categories of EDF group’s indirect emissions are detailed in the Group’s full GHG report.
The following chart presents trends in EDF group’s significant indirect emissions since 2017.
EDF group’s significant emissions
Significant indirect emissions due to gas sold and electricity purchased to be sold to end customers (MtCO2 e)
- 2019: 78
- 2018: 73
- 2017: 64
There was a slight increase in significant indirect emissions in 2019, due to the increase in sales of gas to end customers.
Initiatives to manage changes to EDF group’s Scope 3
EDF group aims to achieve carbon neutrality by 2050. Due to its energy mix being largely low-carbon, the indirect emissions in EDF group’s value chain are however considerably greater than its direct emissions.
In view of this, in 2019 EDF group launched a policy to manage development of the Group’s gas business with a view to contributing to local authorities’ energy transition. A similar “responsible” approach lies behind EDF group’s aim of supporting all its customers in reducing their own carbon footprint by using energy more effectively and using less of it (see section 3.2.2.1 “EDF, a company committed to better energy use by each customer”).