EDF’s subcontracting policy focuses on three major themes:
The Group may be required to use subcontractors with employees under contracts drawn up in a country other than the one in which it operates. In this case, particular attention is paid to human rights, working conditions, housing conditions and employee health and safety.
EDF group implements a compliance plan, including a map of the risks identified in relation to its suppliers and subcontractors, a risk assessment, and the risk mitigation measures taken. Subcontracting is mainly used for industrial and commercial activities, for information systems and real estate operations. 2020 was consistent with the trends seen in 2019 in terms of the types of business activities that were outsourced.
As a general rule, in all these areas, the decision to outsource or backsource activities is based on a strategic analysis for each industrial policy segment.
The analysis takes into account criteria such as:
Subcontracting policies are reviewed regularly, generally once a year, to adapt them to internal or external changes. They are monitored by a global CSR committee, representing all the Group’s trade union organisations and two international federations (PSI and IndustriAll), which meets once or twice a year, and by a steering committee that is responsible for the operational monitoring of the body, meeting twice a year. At EDF SA, a monitoring committee for the socially-responsible subcontracting agreement, representing the signatory trade union organisations, meets twice a year to discuss the implementation of the agreement through the industrial policies of the business lines.
The improvement measures launched in 2015, reflected in the Progress Charter signed in June 2016 between EDF and the Professional Organisations representing the Group’s subcontractors, continued in 2020. Specifically, support for subcontractors, in place since 2017, will continue at the Flamanville 3 work site, with a view to reducing the workload. Support for subcontractors at sites being closed down is organised with local stakeholders. Personalised support was given to Fessenheim subcontractors in 2020.
In the nuclear field and with other operators, EDF gave industrial operators an idea of their workload over the next nine years, at the “Journée Perspectives France”organised by the Groupement des industriels français de l’énergie nucléaire(Grouping of French industrial operators in the nuclear power sector or GIFEN) held on 1 October 2020. This unprecedented assumption-based practice allows industrial operators to plan and prepare for the future in the best possible way.
Likewise, one of the various projects under the “excell” plan launched in 2020 is to improve EDF’s relationships with its suppliers as part of the plan’s aim to enhance industrial quality. This project strives to ensure that suppliers in the nuclear industry become genuine EDF partners, to improve the performance of major industrial projects. As part of this, EDF launched its first Supplier Relationship survey in September (144 suppliers surveyed) to compile information about their points of view and obtain feedback. This process was particularly appreciated by suppliers. The results support the action taken in terms of contractual improvements and the extended enterprise model. Moreover, among the points of satisfaction, suppliers are very happy with the working conditions at EDF sites, in terms of safety (97% stated that their employees work in optimal safety conditions), their treatment (91% stated that they were treated well) and health (89% stated that they received appropriate health monitoring).
The action taken in the nuclear field will be further strengthened and stepped up under the stimulus package. In particular, €200 million has been earmarked for supporting SMEs/MSEs in the form of an investment fund financed by the State (€100 million) and EDF (€100 million), to be invested in two tranches. The main aim is to support MSEs and SMEs experiencing problems in the sector or to help them grow.
In 2020, the Company continued to implement its industrial strategy in the IT field which determines the sub-contracted share. This is particularly demonstrated by the continued proactive initiatives promoting open source software (unrestricted use, free of charge), upskilling MSEs, SMEs and start-ups and simplifying contractualisation procedures, mainly with start-ups, which are vectors for innovation. Vigilance regarding training conditions and service provider turnover has been maintained, particularly as the total number of suppliers in the IT field continued to increase.
In an increasingly competitive context, the Sales Division continued to use outsourcing to deal with variations in workload and cover extended hours, with value-creating tasks being directed towards internal consultants. All of EDF’s customer relations centres, both internal and external, are located in mainlandFrance. External providers are selected in compliance with public procurement rules and are certified for customer relations and business development activities. Its in-house centres have chosen the “Afnor CSR Commitment” label.
Access to electricity is a vector for progress and development, including in the areas of health, education and security. The global electrification rate has increased steadily since 2010 but more than 800 million people still have no access to electricity, with around one half of them being located in Sub-Saharan Africa. According to theInternational Energy Agency (IEA), the number of people in Africa without access to electricity is set to increase in 2020 for the first time in many years, as per capita income has dropped by about 6%.
This has been clearly reaffirmed in the United Nations sustainable development objectives. EDF is continuing its efforts in this area, and has updated its models beyond its scope of action. EDF is developing new business models that combine its traditional know-how with technological and economic innovation.
EDF is developing off-grid projects designed to provide residential customers and very small enterprises, mainly in Africa, with electrical services, including ZECI in IvoryCoast, ZEGHA in Ghana, BBETO in Togo, KES in South Africa, Sun Culture since 2020(solar-powered pumping) in Kenya, and SMG in Zambia (see section 1.4.5.3.9 “Off-grid energy”).
With about €40 million for the last four years invested in rural electrification, EDF today makes it possible to supply energy (10 to 13MW of installed capacity) to more than 800,000 people and aims to multiply this figure by 4 over the next 3 years. This energy is supplied along with “low-energy” equipment (lamps, radios, fans, televisions).
