The Group Ethics Charter sets out the values shared by all EDF staff, places ethical requirements at the heart of corporate responsibility and, in accordance with the Chairman’s commitment, promotes ethical behaviour in all professional activities. Updated in 2019, the Group Ethics Charter now focuses on the Group’s three values “Respect, Solidarity and Responsibility”, each featuring 4 requirements. It is available in French and English on the EDF group website (1) and in eleven other languages in which the Group works.
The Group Ethics and Compliance Policy (PECG) which identifies the Company’s compliance programmes as well as the main rules that Executive Directors should know, observe and enforce within their entities, strictly aligned with the risks of those entities, was updated and approved during an Executive Committee in January 2020.
The PECG includes thirteen compliance programmes: preventing the risk of corruption and influence peddling; preventing conflicts of interest; combating fraud; compliance with international sanctions programmes; prevention of harassment and discrimination; prevention of market abuse; prevention of the risk of money laundering and financing of terrorism; compliance with EMIR (European Market Infrastructure Regulation); compliance with the REMIT (regulation on Wholesale Energy Market Integrity and Transparency) regulation; preventing breaches of competition law; personal data protection; export control (dual-use goods); and the duty of vigilance (covering environmental, human rights and health and safety issues).
In accordance with the French Act of 9 December 2016 on transparency, the combating of corruption and the modernisation of the economy, known as the “Sapin II” Act, EDF set up an anti-corruption compliance programme taking account of legal requirements:
This code of conduct which was reviewed in July 2021, defines and illustrates, through practical cases, the different types of behaviour employees are likely to face as a result of the Company’s business activities and organisation, and which should be prohibited given that they may constitute acts of corruption or influence peddling. It sets rules for all the themes identified during the corruption risk mapping process. It prohibits facilitating payments, and restricts gifts and invitations. Breach of any of its rules may result in disciplinary sanctions. It can be viewed by employees and third parties on EDF’s site in French and English (2).
The Group procedure for processing whistleblowing was reviewed during 2022, to factor in the developments entailed in the transposition in French law of the European Directive for whistleblower protection. See section 3.3.2.4 “The EDF group whistleblowing procedure”.
Ethics & compliance risk mapping is part of the Group Risk Department’s annual internal control self-assessment process. Based on this, the entities draw up action
plans appropriate to their operational contexts to prevent and mitigate these risks. Since 2018, a specific “corruption” risk map was prepared, which identifies and prioritises, by business sector and country, risks of exposure to corruption. In 2020, the methodology used for the mapping was improved, to enhance its focus on the operational specificities of the Group’s various business lines and geographical locations.
Under the Group Ethics and Compliance Policy, executives of the relevant Group entities are required to implement a system within their entities to control the integrity of any partners with which the Group plans to establish or continue a business relationship, mainly designed to check that there are no risks of exposure to international sanctions and that a clause is inserted in each contract entitling EDF or its subsidiary to terminate a business relationship with immediate effect in the event of a failure to adhere to an international sanctions programme. In 2021, this system was reviewed in line with the Group’s corruption risk map.
Control procedures, containing specific requirements for the detection and prevention of corruption, have been defined for the Company’s various processes. Following a technical analysis, any anomalies likely to be characterised as fraud are, where applicable, forwarded to the entity’s Ethics and Compliance Officer.
A system enables the entities to assess the level of implementation and the control of each key requirement, and to identify the improvement actions to undertake.
The entities have put in place a system designed to prevent conflicts of interest and raise employee awareness of high-risk situations, provide a system for employees to declare their links to organisations in which they have a personal interest, and require managers to resolve conflicts of interest with respect for individual freedoms. A support guide, including case studies to help managers identify and deal with conflicts of interest, was introduced in early 2021, and is also being used by RECs and managers to raise awareness among employees during dedicated meetings.
In accordance with the “Combating fraud” memorandum of instructions, revised in October 2022 in order to simplify it and make it more workable, executives shall set up systems within their entities to raise awareness among their staff, put in place checks to detect potential cases of fraud, investigate incidents, report proven cases and sanction those responsible.
EDF is an interest representative within the meaning of the Sapin II Act. In this respect, it is registered on the list of interest representatives managed by the French High Authority for Transparency in Public Life (Haute Autorité pour la transparence de la vie publique, or HATVP). The network managers RTE, Enedis, and Dalkia are also registered: they each declare interest representation actions carried out during the year. The list of persons in charge of an interest representation identified in the register will be updated regularly. EDF also files with the HATVP an annual declaration relating to interest representation actions carried out that mentions actions aimed at influencing a public decision, with national public officials identified by the legislator. Lastly, lobbying has been added to the new version of the code of conduct.
At the European level, EDF is listed on the Transparency Register of the European Parliament and the European Commission (no. 39966101835-69), regularly updates its data, and applies the related code of conduct. In addition, in order to continue to raise awareness of ethical issues among interest representatives, the European Affairs Department has published its own internal ethics EU Lobbying Rules, available on the EDF website.
