| Risk category | Description | Potential impact for the EDF group |
|---|---|---|
| Risks related to extreme events | Risks related to extreme events Description Increase of heatwaves and droughts | Risks related to extreme events Potential impact for the EDF group Production: drop in nuclear production due to heat sink; Low water flow for dams in southern countries; Accelerated wearing of materials; Transmission and Distribution: drop in network capacity; Fire risk; All business lines: rise in the cost of insurance; Deterioration of working conditions for employees and service providers |
Risk category Augmentation des épisodes de vents violents, tempêtes, tornades et inondations | Description Production: slow-down or potential temporary halt of production facilities; Impacts of higher flood waters; Transmission and Distribution: power cut offs | |
| Risks related to chronic events | Risks related to chronic events Description Increase of average temperatures / Increase of sea levels | Risks related to chronic events Potential impact for the EDF group Production: change and drop in hydropower production; Decreased yield of nuclear and thermal power facilities; Risk of submersion of infrastructures on seacoasts (particularly island regions); Proliferation of organisms that plug water intake; Risk of microbial growth in cooling circuits; Transmission and Distribution: diminished capacity of transmission lines; Sales: drop in heating demand; Increase in air-conditioning demand |
| Risk category | Description | Potential impact for the EDF group |
|---|---|---|
| Legal risks | Legal risks Description Contentieux climatiques | Legal risks Potential impact for the EDF group Risk of cancellation of licences, risk of litigation following exceptional climatic events, risk of litigation related to EDF group publications, particularly as regards the duty of care. |
| Political and regulatory risks | Political and regulatory risks Description Tension over uses of water | Political and regulatory risks Potential impact for the EDF group Risk involved in the sharing of water resources due to multiple uses and multiple stakeholders in a context of increasing water scarcity situations |
Risk category Tension over access to land and use of soils | Description Risk involved in the necessary land resources for renewable energy due to restrictive regulations (biodiversity, agricultural lands) and the legitimacy of sharing with numerous stakeholders. | |
Risk category Political difficulties to achieve the objectives of the Paris Agreement | Description Opportunity: as a low-carbon leader, the EDF group is called on to play a key role in decarbonisation of the European economy. | |
| Customer – market risks | Customer – market risks Description Change in customer expectations | Customer – market risks Potential impact for the EDF group Opportunity: increased demands of own consumption, energy efficiency, electric mobility, green deals and low carbon |
Risk category Change in uses of electricity | Description Opportunity: decarbonised electricity is recognised as an indispensable means to deliver decarbonisation to the economy. | |
| Technological risks | Technological risks Description Stability and security of electricity networks | Technological risks Potential impact for the EDF group Risk/Opportunity: risk of instability to the system in case of a high penetration rate of renewable energies; Key role of nuclear energy usable together with renewable energies to ensure stability of the network |
Risk category Transition technologies | Description Risk/Opportunity: potential emergence of technologies such as CCSU, thermal solar, small modular reactors, storage or in the area of negative emissions | |
| Financial risks | Financial risks Description Access to competitive financing | Financial risks Potential impact for the EDF group Risk/Opportunity: risk in case of European taxonomy having an impact technologically; Opportunity to provide the EDF group with sustainable financing (Green Bonds, positive incentive loans) |
Risk category Stranded assets | Description Risk of stranded thermal assets after regulatory changes or carbon price increase |
The main actions implemented by the EDF group to manage climate-related risks are described in section 2 “Risk factors and control framework” and section 3.2 “EDF, company committed to the energy transition”.
