Universal Registration Document 2022

3.4.2.1.2 Studying the employment footprint of nuclear power plants

Regional study in collaboration with INSEE

EDF has undertaken a partnership initiative with regional departments of the French National Institute of Statistics & Economic Studies (INSEE) to produce public studies describing the socio-economic footprint of Nuclear Power Generation Plants (centres nucléaires de production d’électricité, CNPE) and, more generally, its nuclear business within the localities in question. In the Centre-Val de Loire region, EDF’s nuclear business generates a total of 11,800 jobs: 6,200 direct jobs relating to production sites (95% of which are permanent), 2,300 indirect jobs relating to orders from suppliers located in the region, and 3,300 jobs induced as a result of consumer spending by directly and indirectly employed individuals and their families.

3.4.2.1.3 Focus on the various hydropower lines of business

Local Economic Impact Simulator

EDF Hydro has developed a Local Economic Impact Simulator (simulateur des retombées ecénomiques territoriales, SIRET). Simulated input-output data allows the numbers of indirect and induced jobs generated by purchases to be estimated. For instance, it is estimated that purchases from French businesses totalling €458 million in 2022 corresponded to 4,495 indirect jobs ⁽¹⁾, 2,650 with Tier 1 suppliers, and 1,845 in other tiers.

3.4.2.1.4 Focus on the customer service lines of business

Preserving employment basins

In 2021, EDF became the first energy supplier to obtain the Relation Client France ⁽²⁾ certification created by the French Association of Customer Relations (Association française de la relation client, AFRC) and the Pro France Association. This corresponds to 6,200 customer advisers, employees, and external partners serving consumers, professionals, industry, and local authorities.

3.4.2.2 Contribution to development through taxation

EDF has implemented a Group tax policy to define the applicable principles, in terms of taxation, to all of the Group’s relations with its financial or business partners and the government or tax authorities. The tax policy is applied by the Group Executive Director responsible for the Group’s Financial Management. It was approved in 2017 by the Executive Committee.

At the end of 2022, as in 2021, the Group uploaded its country-by-country report (of data for fiscal year 2021) to the French tax authorities, in accordance with the provisions of Article 223(5)(c) of the French General Tax Code which follows the OECD’s recommendations.

3.4.2.2.1 Group tax policy

A wide scope

The policy covers all the Group’s taxes: direct and indirect taxes, duties, contributions, any tax or customs deductions which are ultimately the responsibility of the Company or its customers (when EDF merely acts as a collector on behalf of third parties).

This policy must be applied throughout the Group, by all controlled entities regardless of their nature or geographical location, with the exception of regulated infrastructure managers, for whom it constitutes a guide. All Group staff must comply with this policy which aims to protect the Group’s reputation and to reduce any tax risks to which it may be exposed through its activities. The policy follows the following guidelines:

• strengthen the tax performance of the Group in strict compliance with national and international tax laws and regulations;
• control tax risks through continued, systematic improvement, in all Group entities, of the identification and management of fiscal risks;
• implement the tools, reporting and actions necessary for the continued, optimum, forward-looking management of tax cash flows ⁽³⁾, as well as attentive and proactive monitoring of the Group’s effective tax rate;
• ensure the conditions necessary for obtaining constructive relations with the tax and government authorities of all kinds by maintaining a transparent, professional relationship with them.

Ethical principles

In the context of the allocation between countries of operating margins internal to the Group, EDF strives to apply a transfer price policy in accordance with the principles of the OECD to justify the resulting revenues. EDF has no legal implantation in a territory listed as a non-cooperative state or territory as defined by French and international legislation which is not determined by economic activity reasons and under no circumstances purely by tax reasons. Similarly, cash flow through these countries is prohibited where it is for tax reasons only.

Presence in Luxembourg and Ireland

Like all major French and international groups, EDF relies on captive and mutual insurance companies to supplement the cover provided by traditional insurance markets. The captive and mutual insurance companies enable EDF to reduce the cost of its insurance schemes and the total sum of premiums paid. EDF has three captive insurance companies, based in Ireland and Luxembourg:

• Wagram Insurance Company DAC. (wholly owned by EDF), an insurance company founded in 2003 in Dublin which is involved in the majority of the Group’s insurance schemes;
• Océane Ré (wholly owned by EDF), a reinsurance company founded in 2003 in Luxembourg to reinsure EDF’s nuclear civil liability risk;
• Terenco I and II (wholly owned by Framatome), a reinsurance company within the Framatome consolidation scope located in Luxembourg, to reinsure a portfolio of risks including that of Framatome’s nuclear civil liability.

3.4.2.2.2 Taxes paid by the Group

In 2022, the EDF group’s tax expense (on EBITDA) was €3,162 million, €168 million less than in 2021.

Effective tax rate

The income tax income amounted to €3,927 million in 2022, corresponding to an effective tax rate of 17.13% (compared to an expense of €1,400 million in 2021, corresponding to an effective tax rate of 25.09%).

The €5,327 million change in income tax expense between 2022 and 2021 is analysed in section 5.1.3.5 “Income taxes”. Income tax paid in all the countries where the Group has subsidiaries is detailed in the ESG Pack publish on the edf.fr website ⁽⁴⁾.

Corporate income tax

Income taxes paid by the Group amounted to €1,282 million in 2022, compared to €2.276 million in 2021.

Local taxes

The EDF group thus contributes to the development of the French regions through an annual payment of more than €0.7 billion in local taxes to local authorities.