Universal Registration Document 2022

Nature (land, water, air) is home to “environmental assets” comprising living and non-living natural elements. Ecosystems are an important part of these assets and enable the provision of ecosystem services, such as fresh water supply. The Company has both positive and negative impacts on nature. Short-term impacts on nature can lead to changes in the quality and resilience of environmental assets, which in turn give rise to medium- and long-term risks for organisations due to their reliance on those assets. This is the subject of the four upcoming sections (3.2.1 “EDF’s Nature issues, commitments and governance”; 3.2.2 “Biodiversity and responsible land management”; 3.2.3 “Integrated and sustainable water management”; 3.2.4 “Radioactive and conventional waste, and circular economy”).

3.2.1 EDF’s Nature issues, commitments and governance

The Group’s or EDF’s policy guidelines regarding the preservation of natural resources are based on an analysis of physical and transition risks, and take the form of public commitments ⁽¹⁾.

3.2.1.1 Physical and transition risks related to nature

The Group organised an assessment of “Nature” issues along the full value chain, including upstream and downstream from its activities (scope 3).

This biodiversity risk assessment, carried out using the double materiality method on dependencies and impacts, was based on the ENCORE database (Exploring Natural Capital Opportunities, Risks and Exposure). The main issues concern not only operations but also activities upstream from the EDF group value chain, particularly fuel and material supply operations, which feature dependency issues relating to nature (resources, regulation services) and pressures (e.g. on ecosystems and water resources). It appears from the risk materiality assessment (physical and transition risks) that risks are correctly identified and covered with some room for improvement.

3.2.1.1.1 Physical risks