Universal Registration Document 2022

An analysis of the risks and opportunities inherent in transition (see section 3.1.3.2.2.2) is carried out annually by the EDF group. This confirms that the EDF group’s CAP 2030 strategy is fully in line with the political goals set out by the Paris Agreement, as well as the resilience of the EDF group’s business model to the various scenarios envisaged.

3.1.3.2.4 Use of carbon price to guide investments

The EDF group’s investment projects were analysed based on the CAP 2030 strategy and its commitment to achieve carbon neutrality for all its direct and indirect emissions by 2050.

For all countries covered by the EU-ETS (European greenhouse gas emissions trading system), through which the majority of EDF group investments are made, the sensitivity of the profitability of projects in terms of production is also assessed based on medium- to long-term scenarios using different 2050 emissions price trajectory forecasts.

These scenarios and the related carbon price trajectories are developed taking account of various parameters, particularly GDP growth, raw material prices, technology costs, and climate and energy regulations. Pursuant to the 2022 CDP 2022, the range of carbon prices used by EDF in its scenarios is €50-160/tCO₂ by 2040, with a median price of €90/tCO₂.

By enabling identification of project risks and opportunities and testing their climate change resilience, this analysis, based on scenarios integrating different carbon price trajectories, contributes to guiding the Group’s investments.

3.1.3.3 Financing to promote decarbonisation

3.1.3.3.1 Alignment with European taxonomy

For full details, see section 3.8.4 “Details on the taxonomy” and 3.1.1.2.2 “Climate performance for integrated performance”.

3.1.3.3.2 Issue of Green Bonds

For full details, see chapter 6.7 of the URD.

3.1.3.3.3 Use of credit lines indexed on the Group’s ESG indicators

For full details, see note 18.4 « Unused credit lines » of the appendices to the consolidated accounts in chapter 6.1.

3.1.3.4 Commitment to ambitious climate policies

The EDF group promotes public policies that encourage actual carbon reduction in the economy.

3.1.3.4.1 On a national level

The EDF group is working to hasten France’s energy transition and end its dependency on fossil fuels. In particular, EDF is a member of the French Electricity Union (Union française de l’électricité, UFE). In its white paper ⁽¹⁾ “Energy transition to benefit the French”, it presents a series of reforms to prepare the future of the energy system with a view to “zero emissions”, for instance through the introduction in investment decisions (calls for tenders) of criteria pertaining to carbon footprints and location.

In August 2019, EDF joined MEDEF’s “French Business Climate Pledge”⁽²⁾ initiative. EDF supports the implementation of an ambitious national legal and regulatory framework to see France become carbon-neutral by 2050.

3.1.3.4.1.1 Developing the French Energy-Climate Strategy (SFEC)

EDF is involved in the development of the French Energy-Climate Strategy (Stratégie française sur l’énergie et le climat, SFEC), which begun in 2021 and is due to be completed by the end of 2024. The SFEC constitutes France’s roadmap to achieve carbon neutrality by 2050 and ensuring that our society can adjust to the impacts of climate change. In particular, EDF submitted a stakeholder brief (no. 66) in February 2022 as part of its contribution to the work to end the use of fossil fuels by 2050.

3.1.3.4.1.2 Calls for “energy sobriety”

Jean-Bernard Lévy, EDF’s Chief Executive Officer in 2022, signed two opinion pieces on “energy sobriety” in French weekly magazine Le Journal du Dimanche in June and July 2022, one jointly with a collective of 84 French company heads advocating the adoption of a holistic approach to energy sobriety, with the economy committed to a deliberately chosen model.

3.1.3.4.2 On a European level

EDF’s EU lobbying means the promotion and defence of the Company’s interests by its representatives to EU institutions, in line with EDF’s raison d’être and with the aim of influencing proposals and decisions that may have an impact on the climate and on the business of the Company.

3.1.3.4.2.1 EDF’s commitment to transparent, responsible lobbying ⁽³⁾

EDF’s European Affairs Department coordinates EDF entities’ engagement with professional associations and think-tanks, and examines their alignment with EDF’s raison d’être and consistency with the principles of Just Transition and the goals of the Paris Agreement.

The examination process put in place triggers follow-up actions where necessary. In particular, it consists in reviews and annual evaluations of EDF’s professional association partners on the basis of their alignment with EDF’s raison d’être, the Paris Agreement, and the principles of Just Transition. If a gap is detected between the principles of an association and what the Group promotes in its raison d’être, the goals of the Paris Agreement and the principles of Just Transition, EDF provides an analysis of the degree to which it can continue to promote its values whilst remaining a member of the association in question.

Once this analysis has been completed, if it reveals material misalignments, EDF’s position is to encourage the association in question to adopt a more proactive approach in terms of climate advocacy. EDF firmly believes that it can be more effective in bringing about change from within than from without. However, if EDF deems the probability of any positive change to be low, the review process may lead to the Group reconsidering its membership of certain organisations and/or considering joining new ones ⁽⁴⁾.

At the start of 2023, the entire scheme was presented to the directors on EDF’s Board of Directors’ Corporate Responsibility Committee (see section  4.2.3.4 “Corporate Responsibility Committee”).