Universal Registration Document 2022

1.3 Group strategy and objectives

1.3.1 Environment and strategic challenges

Energy efficiency and low-carbon electricity are at the heart of the energy transition

The fight against climate change is a major challenge for the planet. The agreement reached in Paris at the 21st session of the Conference of Parties (COP 21) in 2015 has confirmed the effort being made to combat climate change and the ramping up of energy transitions beyond Europe.

In Europe, the “Clean Energy Package” finalised in 2019, the “Green Deal” developed in 2020 and the “Fit for 55” climate package proposed by the European Commission in 2021 provide the framework of measures that can enable the European Union to become carbon-neutral by 2050. Recovery programmes in the wake of the Covid-19 health crisis have made climate issues an even higher priority. Similarly, the “REPowerEU” programme announced in 2022 to respond to the disruption of the global energy market caused by the war in Ukraine adds the challenge of ensuring the resilience of the energy system.

The EU’s Green Deal and the related national programmes focus on cutting CO₂ emissions as a priority, and as competitively as possible, drawing on a locally-rooted industrial vision.

The United Kingdom, which must undertake a major renewal of its electricity generation facilities, adopted the Climate Change Act in 2008 and established a market model that is consistent with that policy (comprising a Carbon Price Floor, Contracts for Difference, capacity market, and consideration of a regulated asset base model for new nuclear generation facilities).

Electricity in France accounts for just over 12% of CO₂ ⁽¹⁾ emissions (41%⁽¹⁾ at the international level). France’s Climate and Energy Act of 8 November 2019 places the reduction of greenhouse gas emissions at the heart of French energy policy. The goal is now “to become carbon-neutral by 2050 by cutting greenhouse gas emissions more than sixfold”.

France’s Multi-Year Energy Programme (Programmation Pluriannuelle de l’Énergie, PPE), which lists the broad outlines of French energy policy, sets out a ten-year vision, which is vital for major industrial players.

To achieve these objectives, the two major levers of actions are:

• lowering energy consumption by developing energy efficiency solutions and encouraging reduced energy use; and
• switching from fossil fuel to carbon-free energy sources and, in particular, prioritising carbon-free electricity and renewable heat.

The transition to a carbon-free economy should also preserve households’ purchasing power and the competitiveness of companies, whilst ensuring secure energy supplies and energy sovereignty.

Innovation, both upstream and downstream, will be an essential factor for successfully achieving these goals.

1.3.2 Priorities of the CAP 2030 strategy

EDF’s raison d’être is “To build a net zero energy future with electricity and innovative solutions and services, to help save the planet and drive well-being and economic development”. Drawing on the contribution of employees during the “Let’s Talk Energy” (Parlons Énergies) dialogue, the raison d’être was added to the Company’s bylaws at the General Meeting of Shareholders held on 7 May 2020. The CAP 2030 strategy reflects EDF’s raison d’être.

The EDF group produces some of the least carbon-intensive electricity in the world. In 2020, it made further commitments to reduce its greenhouse gas emissions by 2030, which have been validated by the Science Based Targets Initiatives as exceeding the 2°C ambition of the Paris Agreement.

For the first time, the EDF group has set targets covering not only its direct emissions, but also its indirect emissions. The aim is to adopt a trajectory whereby the Group contributes to achieving carbon neutrality for its entire carbon footprint by 2050. By 2030, the EDF group aims to reduce its direct emissions (scope 1) by 50% compared to the 2017 level of emissions and to reduce its scope 3 emissions by 28% compared to 2019 ⁽²⁾.

For EDF, the fight against climate change is based on energy decarbonisation, energy efficiency and reduced energy consumption, as a means of lowering the carbon intensity of its customers’ energy uses.