3.1.1.2 The Group’s results
The Group’s results with respect to the climate were achieved in 2022 despite a range of negative factors including the war in Ukraine, threats to gas and oil supplies, the stress corrosion (CSC) crisis seriously impacting nuclear production, and repeated heatwaves and related impacts on production.
3.1.1.2.1 Carbon performance for the climate 3.1.1.2.1.1
Carbon intensity
GROUP KEY PERFORMANCE INDICATOR
The Group’s carbon intensity is a key indicator of performance with respect to its carbon trajectory.
The carbon intensity of the electricity and heat produced by the EDF group is around five times lower than the European average (275gCO2/kWh (1))and more than nine times lower than the global average (437gCO2/kWh (2)).
Carbon intensity: specific CO2 emissions from electricity generation and heat (in gCO2/kWh) √
√ 2022 indicator subject to reasonable assurance audit by Deloitte & Associés.
(1) 2021 data, EU-27, European Environment Agency, Greenhouse gas emission intensity of electricity generation by country, Oct. 2022.
(2) 2021 data, International Energy Agency, World Energy Outlook 2022.
This graph shows the carbon intensity: specific CO₂ emissions from electricity generation and heat (in gCO₂/kWh) √.
2020: 51
2021: 48
2022: 50
Target 2030: 35
EDF group CO2 trajectory, gCO2/kWh
This graph shows the EDF group CO₂ trajectory, gCO₂/KWh
AIE (well below 2°C)
2015: approximately 500
2020: 416
2030: 229
2035: approximately 130
2040: approximately 90
SBTI 1.5°C
2015: approximately 500
2020: approximately 415
2030: 100
2035: approximately 48
2040: approximately 25
Realized EDF
2015: 94
2020: 51
Projection EDF
2030: 35
The EDF group’s carbon intensity increased slightly in 2022 (up 5% compared to 2021). This increase is not due to any increase in the Group’s CO2 emissions (these fell by 13% compared to 2021, in line with the Group’s carbon trajectory), but to an unanticipated fall in the low-carbon production (i.e. with no direct CO2 emissions) of EDF’s nuclear fleet in 2021. This decrease in the output of EDF’s nuclear fleet was caused by the outages due to the control and repair programme of the stress corrosion phenomenon.
The speed at which the Group aims to reduce its carbon intensity is ambitious. If it were to be extrapolated beyond 2030, it would theoretically result in zero CO2 emissions by 2040, in other words electricity and heat being produced without any direct CO2 emissions.
As the graph opposite shows, the EDF group’s carbon intensity reduction trajectory is fully in line with the 1.5°C scenario derived from IPCC research; this scenario is based on average carbon intensity for the electricity sector of 100gCO2/KWh in 2030.
The EDF group has engaged in discussions with SBTi to have the fact that its trajectory is aligned with the 1.5°C goal recognised. However, the sector-based methodology used by SBTi, which essentially sets identical carbon intensity reduction goals for all electricity companies irrespective of their initial carbon intensity (approximately -77% between 2017 and 2030) penalises those players who had already made progress in decarbonation (1). Discussions are underway within SBTi and more broadly within the framework of the application of the EU CSRD Directive to define more robust alignment methods that recognise companies already engaged in decarbonation.
(1) Moreover, this point has been acknowledged by the TCFD (TCFD, “Measuring Portfolio Alignment”, Oct. 2021) and GFANZ (GFANZ, “Measuring Portfolio Alignment”,August 2022) which explicitly advises against using the “absolute contraction” approach to assess investor profile alignment.