In 2021, the EDF group’s tax expense (on EBITDA) was €3,330 million, €467 million less than in 2020.
The income tax expense amounted to -€1,400 million in 2021, corresponding to an effective tax rate of 25.09% (1) (compared to an expense of -€945 million in 2020, corresponding to an effective tax rate of 73.10%). The €456 million rise in income tax expense between 2021 and 2020 is analysed in note 9 “Income taxes”. Income tax paid in all the countries where the Group has subsidiaries is detailed in the ESG Pack publish on the edf.fr website (2).
| Corporate income tax | Income taxes paid by the Group amounted to €2,276 million in 2021, compared to €983 million in 2020. |
|---|---|
| Local taxes |
The EDF group thus contributes to the development of the French regions through an annual payment of more than €1.2 billion in local taxes to local authorities. |
EDF works with around 11,000 suppliers each year. The Group Procurement Department manages EDF’s purchases, excluding fuel purchases and a portion of tertiary, IT and telecommunications purchases for certain subsidiaries. This totalled €7.9 billion in orders in 2021 (compared to nearly €7.2 billion in 2020), excluding suppliers belonging to the EDF group, broken down as follows: €4.5 billion in engineering and production purchases, €2.1 billion in tertiary and services purchases and €1.3 billion in IT and telecom purchases. In 2021, EDF’s top five suppliers accounted for 9.9% of the total amount ordered by EDF (excluding fuel purchases), and the top ten accounted for 16.5% of that amount. In alphabetical order: Assystem Engineering and Operation Services, Cap Gemini Technology Services, Eiffage Energie Systèmes – Clemessy, Endel SAS, GE Steam Power Service France, Onet Technologies TI, Orange, Orano DS Démantèlement et Services, Spie Nucléaire and Westinghouse Électrique France SAS.
Suppliers are considered strategic based on a criterion of non-substitutability and the purchasing volume. EDF monitors the supplier dependency rate and implements suitable monitoring actions.
The voluntary development of industrial synergies between EDF entities reinforces the Group’s coherence in its relations with suppliers and service providers. This is the case, for example, for purchases of wind turbines (for which Luminus and EDF Renewables cooperate) and also for hydro, nuclear, thermal and HVB power and tertiary and IT purchases, for which nearly all of the European subsidisers benefit from EDF framework agreements.
The Group Purchasing policy encourages local sourcing and value creation in the regions (3). More than 97% of its purchases are made in France, mainly due to the mechanism used to split contracts into various lots, which facilitates access to the Group’s contracts.
In 2021, as part of the consultation process, the Group Procurement Department keeps on encouraging tier-1 suppliers to employ local suppliers meeting the requirements of European Directive 2014/25/EU, for work or service contracts on electricity generation sites. As in previous years, the Group Procurement Department (GPD) has taken part in programmes and events organised by the Pacte PME association, including Destination EIT express and Destination RSE, as well as various events organised by BPI France and Chambers of Commerce and Industry (CCI). It also sits on a number of Pacte PME Strategy Committees and steering Committees. It runs awareness-raising campaigns for SMEs regarding the contracts and authorisations required to tender for EDF group contracts and puts them in touch with interested business lines and subsidiaries. It also assists business lines, to help local companies access decommissioning projects (Brennilis, Bugey etc.) or take part in calls for tenders for the Grand Carénage refurbishment projects.
Recent examples:
| Hinkley Point C reactor |
More than 4,000 businesses are registered on the HPC supplier portal for the Hinkley Point C (HPC) project. Local suppliers sign contracts directly with HPC or with its tier-1 suppliers. Since the start of the project, £4.1 billion has been spent with regional suppliers directly. |
|---|---|
| Romanche Gavet reactor |
Inauguration of the Romanche Gavet power plant in September 2020 marked a key stage in the Romanche Valley hydroelectric reconfiguration project: in terms of its contribution to local economic development, 637 companies and subcontractors worked on the project and orders worth €108 million were placed with local companies in Auvergne, not to mention the 306 FTEs working at the peak of the project. |
| Decommissioning and waste management |
As part of the embedding policy initiated to become more aware of the socioeconomic footprint and added value of projects relating to decommissioning, waste management, and the construction of EDF intermediate storage facilities in a given locality, a number of actions have been implemented to promote these business lines to local companies at business forums, work with CCIs to identify contractors, organise meetings with EDF suppliers and any local subcontractors (notably for Brennlis), break down projects into workpackages to facilitate access for local contractors, and participate in nuclear industry events (Nuclear Valley) such as the Néopolia event in Nantes. |
The Supplier policy has a long track record of giving preference to relationships with SMEs and using the sheltered worker sector (STPA&A) and structures for integration through economic activity (SIAE). EDF makes full use of the possibilities offered under Directive 2014/25/EU, allowing certain purchases to be reserved for these sectors. In 2021, EDF’s purchases from the solidarity sector amounted to €15.6 million. Pursuant to its disability agreements, EDF is developing close ties with ESAT and EA sheltered workshops working in landscaping. (4)
| 2019 | 2020 | 2021 | |
|---|---|---|---|
| Solidarity-based purchasing (STPA&A and SIAE sheltered and back-to work structures) | Solidarity-based purchasing (STPA&A and SIAE sheltered and back-to work structures)2019 11.3 |
Solidarity-based purchasing (STPA&A and SIAE sheltered and back-to work structures)2020 13.8 |
Solidarity-based purchasing (STPA&A and SIAE sheltered and back-to work structures)2021 15.6 |
(1) See note 9.2 “Reconciliation of the theoretical and effective tax expenses (tax proof)” in the notes to the consolidated financial statements.
(3) See section 3.4.2.4.1 “Boosting the economic, social and human fabric”.
(4) See section 3.3.3.4 “Disability plan”.
