Universal Registration Document 2021

3. Non-financial performance

Other practical procedures within EDF group

Even when these mechanisms are not directly applied, the major Divisions or subsidiaries use equivalent methods of commitment adapted to their specific industrial or geographic characteristics. Therefore, suppliers of the Nuclear Division must agree to comply with the Progress Charter for Exemplary and Efficient Nuclear Power and the Social Specifications of the Strategy Committee for the Nuclear Sector. In addition:

EDF Renewables

EDF Renewables responsible procurement is based on two pillars. The first is the supplier qualification process, which takes place in two stages. The first of these is a request for information phase, during which suppliers answer a list of questions and provide documents about their environmental and societal management, including information about human rights (policies, codes of conduct, commitments, procedures, supply chain management, and any sanctions). Following this first stage of qualification, they are then audited to ensure that the practices adopted are in line with EDF Renewables standards.

Contractual clauses make up the second Responsible Procurement pillar. When they enter into the agreement, providers undertake to abide by EDF Renewables environmental and societal requirements and to apply these to their own suppliers and subcontractors. Failure to fulfil these requirements may entail termination of the agreement.

Edison

In 2021, Edison set up a supply qualification process based on the use of a CSR criteria checklist to be completed during the supplier qualification process. In particular, this includes requesting the following ISO certifications: 26000 (Social Responsibility), 30415 (Diversity & Inclusion), and 20400 (Sustainable Procurement), as well as the AA1000 Accountability standard. The list also includes questions relating to supplier goals, in particular with respect to sustainability and calculation of their carbon footprint.

Luminus

Luminus systematically takes CSR criteria into account in its calls for tenders. Since 2020, a CSR questionnaire has been included in each call for tenders via a procurement platform. Suppliers cannot respond to the call for tenders unless they complete this questionnaire. CSR criteria encompass carbon emissions, packaging, recycling, waste management, and shipping.

EDF in the UK

EDF in the UK is also conducting a risk assessment in respect of modern slavery to ensure that mitigation measures are in place (see section 3.3.2.3.4 “Implementation of human rights commitments”).

Edvance

Since 2020, Edvance has required each of its suppliers to evaluate its CSR performance via the global EcoVadis platform. Edvance reserves the right not to list any supplier whose score on this platform is not high enough. 88% of its suppliers are ‘medallists’ in the platform’s CSR guide. Edvance also includes a clause committing signatories to the United Nations Charter in all its contracts, as well as an ethics and compliance clause.

Procurement stakeholder training

Likewise, buyers are also educated about the importance of the responsible purchasing approach, mainly through their training (special module on this subject).

Collaborative reverse factoring

The EDF group offers its suppliers collaborative reverse factoring, granting them the possibility to pre-finance their invoices before the contractual due date, as soon as EDF issues the payment voucher (1).

  2019 2020 2021
No. of beneficiary suppliers

No. of beneficiary suppliers

2019

550

No. of beneficiary suppliers

2020

692

No. of beneficiary suppliers

2021

718

Amounts (in millions of euros)

Amounts

(in millions of euros)

2019

1,074

Amounts

(in millions of euros)

2020

1,183

Amounts

(in millions of euros)

2021

2,857

In 2021, EDF began an experiment to assess the potential benefits of incorporating a CSR strand in this scheme directed at EDF suppliers.

Mutual benefits

The Group Procurement Department continued its proactive programme of “Productivity Partnerships”. The aim is to improve contract performance through cooperation between EDF and its suppliers, to their mutual benefit. The benefits may be financial, organisational or technical. For instance, a technique to reduce the quantity of hazardous waste developed subsequently by the successful bidder for a service contract may bring down the cost to EDF of shipping and reprocessing this waste. Since last year, the Group Procurement Department decided to switch the focus of the “Productivity Partnership” monitoring to accurately measurable gains.

Productivity Partnerships 2019 2020 2021
Productivity gains within the scope of EDF (in millions of euros)

Productivity gains within the scope of EDF

(in millions of euros)

2019

-

Productivity gains within the scope of EDF

(in millions of euros)

2020

44.1

Productivity gains within the scope of EDF

(in millions of euros)

2021

55.2

Company ombudsman and whistleblowing
  • The EDF group has used a company mediator since Suppliers may refer a matter to the mediator directly, free of charge, through its website or by post (2), as stated in the General Terms and Conditions of Purchase and on the Group’s purchasing platform.
  • As is the case for all stakeholders, suppliers can use the Group’s whistleblowing system, set up in accordance with the Sapin 2 and Duty of Vigilance Acts, which guarantees anonymity and is available in the Group’s six languages (3).

(1) EDF enables its suppliers to benefit from interest rates based on its own financial risk and credit standards.

(2) mediateur.edf.fr| by post (Médiateur du groupe EDF – TSA 50026 – 75804 Paris cedex 08).

(3) edf.fr/edf/dispositif-alerte-groupe