For the public, salient risks are related to the operation of industrial facilities. For example, the release of water from dams could endanger hikers and the acoustical impact of wind turbines may cause disturbance to nearby residents. For the customers of the Group entities supplying electricity, the main risk identified is an accident causing electrocution.
Risk prevention and mitigation are dealt with by each relevant entity by way of applying corporate and sectorial policies and using common Group methodology for risk control as a basis. This methodology provides a description of risk treatment action plans and an evaluation of their efficacy. Industrial projects are subject to a risk analysis within the scope of application of the duty of care, taking into account their nature, size, technical features and location. For this purpose, environmental and social impact assessments are based on the most demanding international standards (IFC, WB, ADB).
In addition, EDF systematically assesses the risks involved in investment projects. 100% of the projects presented to the Commitments of the Group Executive Committee are screened for risks related to human rights and fundamental freedoms, the environment (particularly the climate, biodiversity and natural resources), and the health and safety of people.
To prevent and mitigate the risk of serious violations of human rights, EDF first relies on its Ethics Charter which sets forth the Group’s values, including Respect and Responsibility. These values are applied as fundamental requirements for doing business at EDF. The Charter refers to the ten principles of the UN Global Compact and in particular, businesses should support and respect the protection of internationally proclaimed human rights in their sphere of influence; make sure that their entities are not complicit in human rights abuses; must not tolerate any form of forced and compulsory labour or child labour. In addition to this, the Group’s sustainable development policy provides that entities will “not tolerate any violation of Human rights in any of their businesses or the businesses of their suppliers”. The EDF Global Framework Agreement on CSR places human rights as a “prerequisite for all its operations”. As regards respect for the rights of local communities, dialogue and consultation constitute one of the six Corporate Social Responsibility Goals (CSR Goal No. 5) (see sections 3.3.1.1.2 and 3.3.1.2.1).
To prevent and mitigate risks of serious harm to the environment, EDF relies on its Ethics Charter to commit its entities to a precautionary approach, to acting responsibly and to developing technologies which respect the environment. Management of identified risks, including those associated with climate change, is fully integrated into the Group’s EMS and internal control system. These risks are subject to action plans resulting from strategic priorities in the Group’s sustainable development policy (see section 3.1.2.4.4).
The EMS organises Group-level management of environmental performance and is aimed, in particular, at controlling risks related to greenhouse gases, impacts on water, air, soil and the production of conventional and radioactive waste. Special attention is focused on preserving biodiversity and services rendered by ecosystems. This system is ISO 14001 2015 certified by the Afnor certification external expert, for a scope representing almost all the consolidated revenue of EDF and its controlled subsidiaries (excluding Enedis) (see section 3.1.2.4.2).
Climate
The EDF group is aware of both the impact of its activities on climate change and the impact of climate change on its activities, as well as familiar with stakeholders’ expectations. EDF’s main corporate social responsibility objective is focused on the climate (see section 3.2.1.1 “EDF, a company committed to climate issues” [CSRG no. 1]). 97% of the Group’s investments are designed to fulfil its low-carbon strategy, i.e., using already decarbonated resources or allowing the addition of more renewable energy sources (see section 3.2.1.1.4).
Since 2017, the Group has been on a path to significantly decrease its direct CO2 emissions. In the beginning of 2020, EDF joined the coalition “Business Ambition for 1.5 degrees”. This has strengthened EDF’s objective to reduce direct greenhouse gas emissions (for scope 1: 50% decrease in 2030 rather than 40% previously targeted in 2017) and the Group is planning to set objectives for reduction of indirect emissions (scope 3).
For this purpose, the Group relies on the advantage of having 90% of its production already decarbonated thanks to nuclear and hydropower (see section 1.1 key figures); the Group further committed itself to shut down coal-fired plants by 2022 in France and by 2024 in the United Kingdom (see section 1.3.2); EDF is searching for alternatives to thermal production still widely used in island territories (see section 3.2.1.1.3); and is investing in France and throughout the world (see section 1.3.4.2) with the aim to double EDF’s installed capacities in renewable energies between 2014 and 2030.
Biodiversity
Protecting biodiversity is one of the six Corporate Social Responsibility Goals (CSR Goal No. 6) and relies in particular on the EMS. ISO 14001 certification testifies to the fact that biodiversity is taken into account in connection with Group activities. EDF’s ambition, as illustrated through its commitment in 2018 to the act4nature initiative, consists in generating positive impacts on biodiversity in the future. This goal concerns the entire life cycle of installations and spans the whole length of the value chain, including procurement policies and relationships with suppliers and subcontractors (see section 3.3.2.1).
Conventional waste
The Group’s entities and companies are committed to a process of continuous improvement according to the principle that the “best waste” is waste that is not produced. They have action plans aimed at limiting the generation of waste integrated in the management systems’ action programmes (EDF, ÉS, Dalkia, Luminus, EDF Energy) with associated indicators (quantity of waste prevented, savings on waste management, quantities of equipment reused, etc.). A number of levers for action are used: internal procedures (anticipation of construction sites: organisational schemes for waste management systematically set up prior to any major construction, decommissioning or maintenance work, sales agreements or donations for reuse), specific rules in the Company specifications, innovative technical solutions (separation of water/oil from hydrocarbon effluent, asbestos stripping), numerous awareness-raising initiatives for staff and service providers (communication, training, waste prevention guide incorporating 34 best practices, e-learning), and initiatives to reduce waste hazardousness such as limiting the use of hazardous products (see section 3.1.2.4.4).
A “Waste Prevention Competition” has been in place since 2011 and was expanded to the entire Group in 2016 in order to identify good practices. In-house or external reuse activities are developing strongly in connection with the cessation of activity of production units and the support tools.
Natural resources
In accordance with the energy transition, the Group makes optimal use of natural resources consumed through its value chain a central element of its corporate responsibility and has included this area in its sustainable development policy. The principles of the circular economy guide the Company’s management, involving many areas well beyond waste management alone(1), particularly energy, the Group’s core business, the necessary raw materials (see section 3.3.2.2.4 “Resources”), soils (see section 3.3.2.2.3 “Soils”), and water (see section 3.3.2.2.1 “Water”).
(1) Regarding food waste, EDF does not consider this information to be material. Based on EDF’s materiality analysis, it is of the opinion that information related to the amendments to Article L. 225-102-1 of the Commercial Code on food insecurity, animal welfare and responsible, fair and sustainable food is not material.
