Universal Registration Document 2022

3.2.1.1.2 Transition risks

Risk category	Description	Potential impacts for the EDF group
Political and regulatory risks	Political and regulatory risks Description Tension over uses of water	Political and regulatory risks Potential impacts for the EDF group Risk involved in the sharing of water resources due to multiple uses and multiple stakeholders in a context of increasing water scarcity. Regulatory constraints on water flows/withdrawals (particularly in periods of water stress – resource sharing) Risk of an increase in the water agency fee. Water reuse: additional requirements for reuse of industrial wastewater (additional cost). Risk of restriction of operating permits and increase in litigation.
	Risk category Tension over access to land and use of soils	DescriptionRisk associated with access to land and use of land required for renewable energy resulting from regulations (ZAN) ⁽¹⁾ and sharing for different uses. Risk of increased pressure on land belonging to the Group by external players (notably local authorities).
	Risk category Enhanced environmental regulation of mineral resources (e.g. restricting access by defining protected areas)	Description Difficulties in sourcing the mineral resources needed to build new infrastructure, manufacture modules/turbines (PV/wind) and uranium and gas fuel.
	Risk category Environmental regulatory developments	Description Regulatory compliance of the Group’s facilities
	Risk category Enhanced REACH regulations	Description Difficulties in the supply of essential chemicals and production stoppages.
Market risks	Market risks Description Access to competitive financing	Market risks Potential impacts for the EDF groupRisk in case of failure to adapt to the TNFD ⁽²⁾ or to the future CSRD ⁽³⁾ reporting regulation. Opportunity to provide the EDF group with sustainable financing (Green Bonds, positive incentive loans).
Reputational risks	Reputational risks Description Environmental impact of projects and uncontrolled media impact	Reputational risks Potential impacts for the EDF group Difficulties in developing new projects which are being challenged in public debates

3.2.1.2 The Group’s public commitment

The EDF group has a long-standing commitment to minimising the impact of its activities on biodiversity ⁽⁴⁾ through a dedicated policy. This goal is currently reflected in the Group’s participation in two schemes: “Entreprises engagées pour la nature” (EEN) and “Act4nature International”.

3.2.1.2.1 Nature commitments for 2020-2022

Nature Commitments for 2020-2022	In France: the “EEN” (Entreprises engagées pour la nature, i.e. companies committed to nature) initiative organised by the OFB (Office français de la biodiversité, i.e. French biodiversity office).	Commitment themes: Reducing the contribution to IPBES pressure factors ^(5); protecting and restorating natural areas, strengthening and sharing scientific knowledge; awareness raising and governance.
Nature Commitments for 2020-2022	Internationally: Act4nature International initiative set up by the French non-profit EpE (Entreprises pour l’environnement, i.e. Enterprises for the Environment).

These commitments cover several Group business lines, various geographical regions, and the scope of operational activities with biodiversity issues.

3.2.1.2.2 Environmental footprint

Methods testing

EDF is committed to protecting the planet’s natural resources and strives to have credible and recognised biodiversity footprint tools to quantify its performance and to engage in dialogue with stakeholders, the general public and the financial world.

As part of the Production Environmental Footprint (PEF) R&D project launched in 2021, one approach has been to select and test the Product Biodiversity Footprint (PBF) method involving experts in life cycle assessment (LCA) and ecological fields, while at the same time participating in its development. Through an application case study that assessed and compared the potential impacts on biodiversity of the life cycle of Photovoltaic (PV) kWh of electricity generation and Gas (GCC) kWh of electricity generation, the work made it possible to introduce the method to the power generation sector, to test its robustness and to ensure appropriate developments for this sector.

In 2022, the PEF project was associated with the RECORD association’s study on the biodiversity footprint of companies through the mapping of different evaluation methods and the development of a decision support module.

This work, supplemented by active monitoring and other test case studies, particularly at the site level, aims to define, in collaboration with the business lines, a company’s position on credible biodiversity LCA indicators with the aim of continuously improving its environmental management.

In 2022, EDF tested two methods on nuclear and thermal sites: the Global Biodiversity Score (GBS) and the Product Biodiversity Footprint (PBF).

(1) Zero net land development.

(2) Taskforce on Nature-related Financial Disclosure (TNFD).

(3) Corporate Sustainability Reporting Directive (CSRD).

(4) In 2006, EDF adopted a policy to promote biodiversity (provide a reference, such as a public press release).

(5) IPBES: Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services