EDF, a company with a responsible attitude to people and communities
Annual rate of procurement from SMEs (%)
- Target: 22-26%
- 2019: 22.5%
- 2018: 23.7%
- 2017: 23.5%
Key non-financial performance indicator (see concordance table with the non-financial performance statement in section 8.5.4). For the scope and methodology of this indicator, see section 3.4 “Indicators and methodology”. This indicator refers to key stake no. 7 “Creation of value shared with stakeholders, to benefit territories and employment” described in section 3.6.2 “Description of key stakes in the materiality matrix”.
In 2019, as part of the consultation process, the Purchasing Division added clauses encouraging tier-1 suppliers to employ local suppliers meeting the requirements of European Directive 2014/25/UE, for work or service contracts on electricity generation sites. The economic flows from the Nuclear and Thermal Fleet Department and the New Nuclear Projects and Engineering Department injected into the French economy in 2019 represented €2,864 million in direct purchases.
The EDF Hydro “future project” strategy, which aims to maximise value creation for both the operator and the region, was implemented on major projects such as La Coche (Alps) or Sabart (Pyrenées). It contributes to increasing cooperation with local businesses and integration, when suitable with support from “One river, one region” agencies, by adding appropriate clauses and continuously working with regional employment stakeholders. The La Coche project, worth a total of €150 million, illustrates this with €88 million spent on businesses from the Auvergne Rhône-Alps region and nearly €30 million on companies based in the Savoy area, i.e. a total of 500 local jobs, including 11 integration jobs. For the Sabart plant hydroelectric penstock replacement project, 80% of the project’s spending is on south-western businesses (out of the 158 businesses working on the project). In 2019, this meant more than €3 million spent on businesses from the Ariège, €12 million on Occitan businesses and the injection of an extra €215,000 into the local economy via spending on accommodation and catering, benefiting 80% of professionals in the industry in the Tarascon-sur-Ariège area.
The policy for EDF Energy’s HPC project is to utilise local and regional suppliers whenever possible. Currently, more than 4,000 of these businesses are registered on the HPC supplier portal. Local suppliers sign contracts directly with HPC or with its tier-1 suppliers. Since the start of the project, HPC has spent approximately £380 million on purchases, including £106 million on consortium companies set up specifically by local businesses to work with HPC, accounting for around 800 subcontracting jobs. In Vietnam, MECO has CSR programmes in the south of the country, developing concrete actions in favour of local communities: renovating toilet blocks and bathrooms; building new classrooms and libraries for students; assisting disadvantaged children from minority backgrounds, people with disabilities, and orphans, all actions aiming to eradicate illiteracy and help new communities to settle and grow.
Through the creation or protection of jobs
All organisations have an economic impact on the local region: they hire employees, make purchases from other businesses, and pay taxes and duties. This all has an economic knock-on effect: i.e. “employment footprint”, which is divided into direct impacts (EDF employees), indirect impacts (impact of EDF purchasing on its entire supply chain), and spin-off impacts (impact of employee spending: both EDF employees and employees of companies in EDF’s purchasing supply chain spend a share of their salary in the region, as well as paying taxes and duties).
The data collected for 2019 concerns the following scopes: France excl. Corsica and French overseas departments and territories; the Nuclear & Thermal Fleet Department (DPNT) and New Nuclear Projects & Engineering Department (incl. EDVANCE purchases) and the Thermal Expertise & Multi-Sector Industrial Support Division (DTEAM); non-fuel purchases. The results revealed 38,095 direct EDF employee jobs (incl. work-study trainees); 60,610 indirect employee jobs, incl. 34,767 at tier-1 suppliers and 25,843 at tier-2+ suppliers; 114,061 spin-off employee jobs, incl. 46,002 due to household expenditure and 68,059 as a result of public administrative spending. One direct EDF job contributes to supporting 4.6 indirect and spin-off jobs.
Outside the study’s scope of calculation, the Group has a range of positive impacts on jobs through all its business activities both in France and internationally. EDF Hydro generated 5,727 direct jobs, including 5,431 open-ended contracts and 293 work-study contracts, as well as 3,276 indirect jobs across the region. Through its biomass boilers and heating networks, Dalkia generates non-transferable local jobs, up to approximately 2,100 jobs in France. Since 2018, the Trading Division has been committed to the Energy Savings Certificate(1) TEPCV(2) programme. 60 regions have benefited from support since 2019. With the ACTEE programme, EDF and FNCCR (French National Federation of Licensing Authorities) participated in the renovation of local authority buildings, providing €12.5 million in funding. An ACTEE website, simulator and tools have been set up, and Calls for Expressions of Interest jointly promoted.
Internationally, Citelum has set up new lighting projects in India and created 480 direct and indirect jobs. In Laos, the Nam Theun 2 Development Fund was launched to finance livelihood, health, education, and capacity-building projects, selected and implemented by communities with technical support, contributing to the creation of 200 local jobs with sub-contractors.
In Brazil, Norte Fluminense supports a range of social and environmental programmes such as the scheme headed up by the association Mico Leão Dourado, which provides agroforestry and agroecology training in the Mata Atlantica region. Norte Fluminense’s sub-contractors sign commitments to the SA 8000(3) standard, which sets out the standard’s 9 “employment & social responsibility” requirements.
EDF Renewables enabled the creation of 55 local jobs for the construction of its projects in Canada, in addition to 85 existing jobs. In South Africa, EDF Renewables created a database of small businesses in the local community located near construction projects for contractors and sub-contractors to include in calls for tender.
Contribution to local tax revenue
See section 3.3.1.2.3 “Tax transparency: Taxes paid by the Group”.
3.3.1.2.7 Access to energy
Access to electricity is a vector for progress and development, including in the areas of health, education and security. This has been clearly reaffirmed in the United Nations sustainable development objectives. Today, even though the global electrification rate increased by 6 points between 2010 and 2017 (89%), 840 million people worldwide have no access to electricity, and around 50% of them are located in Sub-Saharan Africa.
EDF is continuing its efforts in this area, and has updated its models beyond its scope of action. Technological advances, the cost of equipment and local economic models open up new possibilities for action and mass implementation. EDF is developing new business models that combine its traditional know-how with technological and financial innovation.
(1) TEPCV: territoire à énergie positive et croissance verte, i.e. positive energy and green growth regions.
(2)sgsgroup.fr/fr-fr/sustainability/social-sustainability/audit-certification-and-verification/sa-8000-certification-social-accountability.
(3) GRI indicator: G4 EN12 – Disclosure 304-2.