EDF works with around 11,000 suppliers each year. The Group Procurement Department manages EDF’s purchases, excluding fuel purchases and a portion of tertiary, IT and telecommunications purchases for certain subsidiaries. This totalled €8.3 billion in orders in 2022 (compared to nearly €7.9 billion in 2021), excluding suppliers belonging to the EDF group, broken down as follows: €5.0 billion in engineering and production purchases, €2.0 billion in tertiary and services purchases and €1.3 billion in IT and telecom purchases. In 2022, EDF’s top five suppliers accounted for 11.7% of the total amount ordered by EDF (excluding fuel purchases), and the top ten accounted for 18.4% of that amount. In alphabetical order: Assystem Engineering and Operation Services, Cap Gemini Technology Services, Demathieu Bard Construction, ENDEL, GE Steam Power Service France, GE Steam Power System, Monteiro, Onet Technologies TI, Orano DS Démantèlement et Services, and Westinghouse Électrique France.
Suppliers are considered strategic based on a criterion of non-substitutability and the purchasing volume. EDF monitors the supplier dependency rate and implements suitable monitoring actions.
The voluntary development of industrial synergies between EDF entities reinforces the Group’s coherence in its relations with suppliers and service providers. This is the case, for example, for purchases of wind turbines (for which Luminus and EDF Renewables cooperate) and also for hydro, nuclear, thermal and HVB power and tertiary and IT purchases, for which nearly all of the European subsidisers benefit from EDF framework agreements.
The Group Procurement policy encourages local sourcing and value creation in the regions (1). More than 97% of its purchases are made in France, mainly due to the mechanism used to split contracts into various lots, which facilitates access to the Group’s contracts.
In 2022, as part of the consultation process, the Group Purchasing Department kept on encouraging tier-1 suppliers to employ local suppliers meeting the requirements of European Directive 2014/25/EU, for work or service contracts on electricity generation sites. As an illustration, at the end of June 2022, the Group Purchasing Department signed a framework agreement with Néopolia, a collection of 240 SMEs from the Pays de la Loire who formed an SAS (simplified joint-stock company) to be able to respond to invitations to tender launched by big businesses. This agreement both opens up possibilities for businesses that could not work with major clients like EDF on their own, and expands EDF’s supplier panel to SMEs with expertise in their field.
As in previous years, the Group Procurement Department has taken part in programmes and events organised by the Pacte PME association, including Destination RSE and Destination ETI 360 with the French Nuclear Energy Industry Group (Groupement des industriels français de l’énergie nucléaire, GIFEN). It runs awareness-raising campaigns for SMEs regarding the contracts and authorisations required to tender for EDF group contracts and puts them in touch with interested business lines and subsidiaries. It also assists business lines, to help local companies access EDF projects or take part in calls for tenders for the Grand Carénage refurbishment projects: nuclear sector business day in Dampierre, presentation of the EPR2 contracts in Penly…
Recent examples:
Via ongoing collaboration with local partners, the Hinkley Point C (HPC) project has to date generated £4.1 billion in direct spending for local businesses, i.e., £2.6 billion ahead of schedule. More than 4,000 local businesses were registered on the HPC supplier portal, and approx. 1,400 local business hired. These businesses receive active support and are brought on board for work modules suited to their skills. The total economic value of the regional supply chain should hit more than £5 billion by the end of the project, forming a key component of the HPC’s long-term economic heritage. As a result, local businesses are getting growth and skill development opportunities, boosting their expertise in preparation for future low carbon emissions projects.
Following storm Alex, EDF Hydro decided to reconstruct its hydroelectric facilities, which cover the annual electricity consumption of 357,200 people and total 278MW of installed capacity. EDF’s contribution to the vitality of these regions also continues in the valleys (i.e. 80% of 220 people present in rural areas).
On 7 July 2022, the French State, EDF, representatives of local authorities and beneficiaries of schemes set up as part of the “Grand Chantier” programme celebrated the completion of 58 infrastructure projects since 2008 worth a total of €123 million, including €30 million financed by EDF. Thousands of employees have also been trained, hired and assisted, and around thirty business projects assisted, supporting the Cotentin region over a 14-year period.
For example, the projects financed have secured roads used by employees and made it easier to welcome travelling employees from partner businesses by building or renovating homes. There have been multiple projects focused on childhood, sport and health, such as building a nursery or creating a health centre, which is now home to more than 20 healthcare professionals.
In terms of economic development, three industrial areas have been or are being developed: Armanville in Valognes, Les Costils in Les Pieux, and Le Coignet in Sideville.
Regarding employment and training, the setup back in 2007 of a dedicated EPR employment & training team launched by the French State and EDF gave highly satisfactory results in terms of investment and securing of career paths. 93% of job offers were filled and the proportion of local labour was over 50% from the moment work got underway on the EPR site: 1,400 local jobseekers were trained and recruited, and 75% of employees on fixed-term/open-ended construction contracts or temping agreements who worked on the site were able to pursue their professional activity in the form of either training, reconversion or recruitment by businesses in the nuclear sector or region.
The Supplier policy has a long track record of giving preference to relationships with SMEs and companies who employ disabled people only (STPA) and structures for integration through economic activity (SIAE). EDF makes full use of the possibilities offered under Directive 2014/25/EU, allowing certain purchases to be reserved for these sectors. In 2022, EDF’s purchases from the solidarity sector amounted to €15.5 million. In March 2022, EDF – in partnership with the GESAT network – organised a Group Purchasing Department-wide webinar focused on sustainable purchasing. In addition, also in March 2022, and for the first time, the EDF group invited stakeholders from both the standard and protected sectors to a “sustainable purchasing” speed meeting, giving them the chance to meet and respond as joint- venturers to invitations to tender. Pursuant to its disability agreements, EDF is developing close ties with ESAT and EA sheltered workshops working in landscaping (2). For Enedis, services range for instance from cleaning uniforms to mapping services, as well as customer service call centres.
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| EDF solidarity-based purchasing (STPA and SIAE) | EDF solidarity-based purchasing (STPA and SIAE) 2020 13.8 |
EDF solidarity-based purchasing (STPA and SIAE) 2021 15.6 |
EDF solidarity-based purchasing (STPA and SIAE) 2022 15.5 |
(1) See section 3.4.2.4.1 “Boosting the economic, social and human environment”.
(2) See section 3.3.3.4 “Disability plan”.
