Universal Registration Document 2020

In addition, new low-carbon energy solutions may induce new societal questions (new intrusive technologies, land rights-of-way, new conflicts related to the use of water or scarce resources, etc.). New legislative or regulatory changes brought about by climate change could also have a negative impact on EDF’s business and lead to new legal or compliance risks. The Group may also have to deal with the emergence of new technologies or disruptive solutions that are part of the efforts to meet the transition objectives.

Such situations could make it more difficult to carry out these transformations and achieve the desired objectives. They could directly or indirectly affect the Group’s business volumes, margins, asset value, financial position, reputation or prospects.

Risk summaries and mapping

In 2019, a summary on climate change and its impacts on EDF was presented to EDF’s Scientific Council (see section 3.1.3.2 “Implementation of Task Force on Climate-related Financial Disclosures (TCFD) recommendations”). A Group-wide climate risk mapping of all physical and transition risks was also established following the recommendations of the TCFD (Task Force for Climate Financial Disclosures, see section 3.9.4 “Summary of EDF group climate risks”). Climate risks have been identified and assessed using the Group’s general risk mapping method. In 2020, this mapping of climate risks, based in particular on the adaptation plans of the operating entities and on the report to the Scientific Council, has led to a “resilience” action plan mobilising the Group at both corporate and entity levels. It was examined by the Audit Committee. A detailed description of this risk mapping is given in section 3.9.4.

3C – Adaptation of employees’ skills.

Criticality in view of the control actions undertaken: Intermediate.

In an environment impacted by the energy and digital transitions, the scope of theGroup’s activities is changing. New business lines are developing, working methods are changing (empowerment, collective intelligence, operating on project platforms, increased distance working, etc.).

Although the action plans implemented to date have made it possible to control the evolution of the workforce and the adaptation of skills, there is a continuing risk of skills mismatch in the coming years, in this context of transformation.

Risk management is based on matching skills to short-, medium- and long-term needs, on supporting the employability of employees and on managing internal mobility more fluidly. In this regard, the actions undertaken since 2018 relate to:

• anticipating the future, by analysing forecast needs in terms of resources and skills in the short/medium term (GPEC⁽¹⁾) and the longer term (Prospective);
• pursuing an ambitious approach to skills development through traditional training and the development of professional skills development initiatives;
• developing the employability of employees in order to facilitate their professional development and changes of profession;
• creating the conditions for internal mobility within the Group;
• implementing an external recruitment policy, targeting the skills of tomorrow that are not available on the internal job market – for which the EDF group is one of the leading recruiters in France – and (ii) an inclusive employer approach favouring sourcing via work-study and end-of-study internships, with a specific focus on candidates from zones de revitalisation rurale (ZRZ) (rural revitalisation zones) and quartiers politiques de la ville (QPV) (urban political districts);
• enhancing external career paths as a lever for acquiring new skills (PAME⁽²⁾,CCE⁽³⁾) and “win-win-win” career ends (employee, company, territory) throughsenior skills sponsorships;
• nurturing a sustained social dialogue, in order to ensure that the trade union organisations have a good understanding of the employment and skills policies.

Obtaining experience may require several years and sufficient coverage for the transfer of knowledge and experience. In 2020, as part of the EXCELL plan in particular, the Group launched a system of knowledge management which should make it possible to secure skills in the nuclear field.

The EDF group considers the dynamic matching of skills to needs to be a major challenge and therefore implements the appropriate measures to facilitate change.

However, it cannot guarantee that the measures taken will always be sufficient or on satisfactory terms, which could have an impact on its business, financial position and reputation as an employer.

3D – Ability to ensure long-term social commitments.