For its reporting commitments, the EDF group is in line with TCFD recommendations, as detailed in the report “Implementing the Recommendations of the Taskforce on Climate related Financial Disclosures”, TCFD, June 2017:
| URD Sections | |
|---|---|
| Governance | |
| a) Role of the Board of Directors in oversight of climate-related issues within the organisation | a) Role of the Board of Directors in oversight of climate-related issues within the organisationURD Sections 3.1.3.1.1 |
| b) Role of Management in oversight of climate-related issues within the organisation | b) Role of Management in oversight of climate-related issues within the organisationURD Sections 3.1.3.1.1 |
| Strategy | |
| a) Climate-related risks and opportunities over the short, medium, and long term | a) Climate-related risks and opportunities over the short, medium, and long termURD Sections 3.1.3.2.2 and 2.2.3 |
| b) Impact of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning | b) Impact of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planningURD Sections 3.1 |
| c) Évaluation of the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios | c) Évaluation of the resilience of the organisation’s strategy, taking into consideration different climate-related scenariosURD Sections 3.1.3.2.3 |
| Risk management | |
| a) Processes for identifying and assessing climate-related risks | a) Processes for identifying and assessing climate-related risksURD Sections 3.1.3.2.2, 2.1 and 2.2.3 |
| b) Processes for managing climate-related risks | b) Processes for managing climate-related risksURD Sections 3.1.2 and 3.1.3.2, 2.1 and 2.2.3 |
| c) Integration into the organisation’s overall risk management processes | c) Integration into the organisation’s overall risk management processesURD Sections 2.1 |
| Indicators and goals | |
| a) Financial and non-financial metrics used by the organisation for its climate-related strategy | a) Financial and non-financial metrics used by the organisation for its climate-related strategyURD Sections 3.1.3.3 and 3.6 |
| b) Reporting of Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas emissions | b) Reporting of Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas emissionsURD Sections 3.1.1.2.4 |
| c) Climate-related targets used by the organisation and performance against targets | c) Climate-related targets used by the organisation and performance against targetsURD Sections 3.1.1.1 and 3.1.1.2 3.1.2.1 and 3.2.2.2 |
The EDF group responds every year to questionnaires from non-financial rating agencies specialised in analysing corporate strategies to combat climate change. Section 3.7 “Non-financial rating” features all the EDF group’s 2022 reporting results.
3.1.3.2.2 Identifying climate change risks and opportunities
The EDF group identified climate risk as a priority in 2018, addressing it in a report from the Group’s Scientific Council in March 2019, as well as in the detailed analysis presented to the EDF group’s Executive Committee and the Board of Directors Audit Committee in October 2019.
In its analysis of climate risks, the EDF group has adopted the classification put forward by the TCFD, which draws a distinction between physical risks and transition risks (1).
3.1.3.2.2.1 EDF group physical risks
| 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 Increase of strong wind events, storms, tornados and floods |
Description Production: slow-down or potential temporary halt of production facilities, impacts of higher flood waters. Transmission and Distribution: Power outages. |
|
| 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. Marketing: drop in heating demand, increase in air-conditioning demand. |
(1) These risks are also listed in section 2.2.3 “Group transformation and strategic risks”, risk factor 3B, “Adaptation to climate change: physical and transition risks”.
