Universal Registration Document 2020

3. Non-financial performance

Environment

Group mapping of risks is performed based on the Group’s line of industrial activities. Environmental risks are identified, assessed and prioritised through the Group’s environmental management system (EMS) (see section 3.5.2.5.5 “Management of environmental risks”) and mainly concern:

  • impact on the climate;
  • impact on water, soil, air and biodiversity;
  • waste management and the impact on natural resources.
Health and safety

Health and safety risks are mapped by the Health and Safety Division. For Group employees, service providers, suppliers and subcontractors, the risks given priority are:

  • occupational accidents;
  • occupational illnesses (asbestos, ionising radiation);
  • musculoskeletal diseases and anxiety-depressive disorders.

Salient risks are related to the operation of industrial facilities (see section 2.2.4– Risk 4C – “Occupational health or safety violations (employees and service providers)”).

3.6.5 Risk prevention and mitigation initiatives

Under its raison d’être, EDF has defined four major issues split into sixteen CSR commitments that integrate the duty of care.

Risk prevention and mitigation measures are implemented 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 (mostly IFC, WB, ADB(1)).

In addition, issues relating to the environment, personal health and safety and human rights are systematically addressed as part of the assessment process for projects submitted to the Group Executive Committee’s Commitments Committee (CECEG) and to the committee that validates the Group’s international development projects, the International Business Development Committee (CBDI), in the form of an identification of the risks associated with projects, to ensure that EDF’s commitments in this area are not overlooked.

Human rights and fundamental freedoms

The implementation of human rights commitments is part of the deployment of the Group’s “Human Rights and Fundamental Freedoms, Health and Safety, Environment, Business Ethics: EDF group’s commitments and requirements” reference framework. It is based on principles of action that apply to all of the Group’s activities, and which aim, as part of an approach to progress, to carry out in particular:

  • screening, initial and ongoing, and management of environmental and societal impacts and risks, including those caused by operations under its business relationships;
  • organisation, throughout the world, of transparent, debated discussions and consultations for each new project (see section 2.2 – 4A “Management of large and complex industrial projects (including EPR projects)”), with a specific focus on the rights of local and indigenous communities and vulnerable groups.

The implementation and monitoring of these commitments and requirements is ensured under the Group’s existing internal policies or agreements, in particular the sustainable development policy, the ethics and compliance policy, the purchasing policy, the health and safety policy, the global CSR agreement, the Ethics Charter and the roll-out of the vigilance plan.

Systems for collecting and processing reports of wrongdoing, that are accessible and notified to anyone who could be impacted by the Company’s operations, guaranteeing the confidentiality of the reports and protecting internal whistleblowers(employees and external staff), have also been set up.

EDF strives to implement its commitments in the early stages of its investment processes, including in its business relationships by requiring its suppliers and subcontractors to comply with CSR requirements for operations related to their joint business relationships (see section 2.2.4 – 4E “Operational continuity of supply chains and contractual relations” and sections 3.3.1 “Health and safety of all individuals” and 3.3.2.3 “Human rights”).

Environment

To prevent and mitigate risks of serious harm to the environment, EDF relies on its Environmental Management System, its Sustainable Development policy as well asEthics 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 global risk management process and internal control system. The most significant risks are covered in risk control plans in conjunction with the Group’s Sustainable Development policy (see section 3.1.2 “Climate change adaptation strategies”).

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, fora scope representing almost all the consolidated revenue of EDF and its controlled subsidiaries (excluding Enedis) (see section 3.5.2.5.2 “Environmental Management System”). 100% of industrial sites are covered by an EMS and, for all thermal, nuclear and hydropower generation sites in Europe, this system is certified.

Climate

Building on its current energy mix, that is already a very low carbon mix (which is detailed in section 3.1.1.4 “EDF, Europe’s biggest investor in carbon-free energy”), the Group has decided to implement, through appropriate governance (which is detailed in section 3.1.3 “EDF climate governance”), a climate strategy meeting the aims of the CAP 2030, based on 4 CSR commitments: an ambitious carbon trajectory, carbon offsetting solutions, adaptation to climate change (2) and the development of electricity usage and energy solutions (see section 3.1 “Carbon neutrality and the climate”).

More specifically, for its aim of becoming carbon neutral by 2050, its carbon trajectory targets are split into medium-term (2030) and short-term (2023) targets. They are coupled with a renewable energy development target, a coal phase-out commitment and a high level of involvement in the TCFD climate governance scheme advocated at the international level.

Carbon neutrality by 2050

The EDF group was one of the first groups to officially commit, as early as 2018, to contribute to the efforts to become carbon neutral by 2050. This commitment was strengthened and clarified in March 2020. In practice, it involves reducing theGroup’s direct greenhouse gas emissions to zero or virtually zero by 2050, reducing indirect emissions as much as possible within the framework of national policies and implementing negative-emission projects to offset the Group’s residual emissions by 2050. This covers emissions of all greenhouse gases for all scopes and for all operations of the Group across the globe.

In February 2020, the EDF group signed up for 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 has now been joined by more than 300 companies committed to achieving carbon neutrality by 2050, in order to limit the rise in global temperatures to 1.5° C over 
pre-industrial temperatures.

(1) IFC: International Finance Corporation. WB: World Bank. ADB: Asian Development Bank.

(2) In accordance with the IPCC (IPCC special report Global Warming 1.5° C, October 2018), trajectories with no or minimal overshoot of the 1.5° C target can only be achievedthrough increased electrification of uses combined with accelerated decarbonisation of electricity.