Universal Registration Document 2020

3.1 Carbon neutrality and the climate

In 2020, the EDF group set itself more ambitious goals to celebrate the fifth anniversary of the signing of the Paris Climate Agreement. The Group was thus certified by ScienceBased Targets with an improved CO₂ reduction trajectory well below 2^° C, and set up dedicated governance, in line with the best practice recommendations of the Taskforce onClimate related Financial Disclosure (TCFD)⁽¹⁾. The Group’s climate strategy, which is in line with CAP 2030, features four CSR commitments: ambitious carbon trajectory, carbon off sett solutions, adapting to climate change, and developping of electricity uses and energy services.

3.1.1 Group carbon trajectory

 3.1.1.1 Group commitments

3.1.1.1.1Achieving carbon neutrality by 2050

The EDF group was one of the first businesses, way back in 2018, to set itself the goal of contributing to achieving carbon neutrality by 2050. This commitment was reinforced and set out in greater detail in March 2020. In practical terms, this involves reducing the Group’s direct greenhouse gas emissions to zero or near-zero by 2050, reducing indirect emissions as much as possible in accordance with national policies and, finally, setting up negative emissions projects to offset the Group’s residual emissions over the same period. This goal covers greenhouse gas emissions within all Group scopes and for all Group activities in all geographical regions.

In February 2020, the EDF group joined the “Business Ambition for 1.5 degrees: our only future” initiative launched by the United Nations Global Compact, "We Mean Business and Science Based Target Initiative". This coalition currently features more than 300 businesses committed to achieving carbon neutrality by 2050 in order to limit global warming to 1.5^° C above pre-industrial levels.

With this commitment, the EDF group also adhered to the United Nations “Race To Zero” initiative and signed up to the “Climate Ambition Alliance”⁽²⁾ alongside more than 120 countries, 450 towns and cities, 45 investors and 1,000 businesses.

3.1.1.1.22030 goals recognised by the SBTi initiative

In 2020, the EDF group set itself new 2030 greenhouse gas reduction goals, covering both direct emissions (scope 1) and indirect emissions (scopes 2 and 3). On 7 December, these goals were confirmed to be line with the “Well Below 2°C” trajectory by the Science Based Targets initiative⁽³⁾, based on its recently-published methodology specially developed for the electrical sector⁽⁴⁾.

As a result, the EDF group is committed to the following 2030 goals:

• 50% reduction from 2017 levels of scope-1 and scope-2 emissions, also including non-consolidated asset emissions and emissions from electricity purchased (i.e. not produced) for sale to end customers;
• 28% reduction from 2019 levels of emissions from combustion of gas sold to end. customers (scope 3).

Section 3.1.1.2 “Group greenhouse gas (GHG) report” and section 3.7.2 “Details relating to CSR information” provide detailed explanations of how these goals were set.

In line with these SBTi-approved goals, the EDF group set itself the following additional goals:

• 25MtCO₂ e for Group scope-1 emissions in 2030;
• 35gCO₂ /kWh for the carbon intensity of electricity and heat produced by theGroup in 2030;
• 28% reduction from 2019 levels of all scope-3 emissions by 2030.

With these goals, the EDF group is aiming to maintain its leading position among the world’s lowest-carbon electricity companies.