Universal Registration Document 2022

3.4.2.3.1.3 Group key performance indicator

GROUP KEY PERFORMANCE INDICATOR

In terms of purchases from SMEs located in France, the target range is between 22% and 26% of purchases by EDF and the distribution network manager, Enedis ⁽¹⁾.

For 2022, this figure stands at 23.2%, within the target range.

Annual rate of procurement from SMEs in France (in %)

 3.4.2.3.2 Sustainable and balanced relationships

EDF’s responsible purchasing policy is at the heart of the Group’s social and environmental responsibility practices in its supply chain. It is structured by the Group Procurement Department, which sets the general framework and manages the Purchasing function while respecting the management independence of network managers.

3.4.2.3.2.1 Improving the quality of supplier relations

Strategic Supplier Manager

As part of the reorganisation completed in late 2020, the GPD created new jobs to further improve the quality of its supplier relations. These new jobs included the position of Strategic Supplier Manager, the key point of contact for some 40 suppliers identified as strategic. The Manager establishes a trust-based relationship, encourages strategic alignment between EDF group entities and its suppliers, and facilitates the setting up of productivity and innovation partnerships on a win/win basis. Procurement Category Managers are responsible for relations with other suppliers.

Responsible Suppliers and Procurement Charter

In December 2021, the Group’s Senior Executive Vice-President, New Nuclear Projects and Engineering signed the “Responsible Suppliers and Procurement” Charter in the presence of France’s Ministry Delegate to the Ministry for the Economy, Finance, and Recovery, at the 2021 World Nuclear Exhibition. Updated in October 2022, the Charter seeks to uphold the quality of client and supplier relations, as well as the values of solidarity, ethics, and trust ⁽²⁾. The Group Purchasing Department also contributes to the nuclear sector charter monitoring committee headed up by the French State and the Nuclear Sector Strategic Committee (CSFN).

Responsible Supplier and Procurement Label (RFAR)

In November 2022, the annual monitoring review confirmed the RFAR label, renewed in November 2021 for a 3-year period. Under the auspices of France’s Ministry for the Economy, Finance, and Recovery, for the third time running the accreditation committee endorsed EDF again in 2021 by awarding the Group its Responsible Supplier and Procurement Label (relations fournisseurs et achats responsables, RFAR). First secured in 2015, the Label, accompanying the ISO 20400 standard, recognises companies that maintain balanced, sustainable relations with their suppliers.

3.4.2.3.2.2 Supplier policy

The new supplier policy adopted in the end of 2021 to replace the Group Procurement Policy has a special focus on the Group’s commitment to maintaining robust, sustainable partnerships with its suppliers. It details the Group’s raison d’être and its CSR commitments with respect to responsible procurement, the use of suppliers who employ disabled people only, local engagement, and supplier awareness-raising. The responsible procurement policy remains central to this approach, with the systematic inclusion of environmental, social, and human rights- related clauses in agreements.

When implementing purchasing contracts, the Group Procurement Department ensures that financial balance is maintained with respect to suppliers, in particular through compliance with payment deadlines and pricing analysis and structuring actions. Each buyer shall sign the mandatory ethical undertaking which lists the principles to be complied with in relationships with current and prospective suppliers.

3.4.2.3.2.3 Listening, dialogue, and partnerships

With a view to continuous improvement, EDF engages in listening, dialogue, and partnership relations in respect of responsible procurement.

Partners

EDF supports and contributes to the work done by France’s National Procurement Council (Conseil national des achats), Responsible Procurement Observatory (Observatoire des achats responsables, OBSAR), the Pacte PME Association.

In the nuclear field, EDF chairs the Nuclear Sector Strategic Committee (CSFN), which features major clients, industrialists, trade union organisations representing the sector, professional associations, and the French state. One of the main projects identified by the CSFN consists of structuring the Supply Chain and the innovation process within the nuclear sector. EDF has also joined GIFEN (Groupement des industriels français de l’énergie nucléaire, i.e., French nuclear energy industry group), which was set up in June 2018 in parallel to the creation of the CSFN, which features major clients (CEA, EDF, Framatome, Orano and Andra), 24 major industrialists in the sector, and the four pre-existing national associations (GIIN, AIFEN, PFME and FAIF).

For some 15 years now, EDF has had a partnership agreement with GESAT, a national French network of companies who employ disabled people only which facilitates contact between businesses in this sector and clients. EDF is also involved with France’s New Energy Systems Strategic Sector Committee (Comité stratégique de la filière des nouveaux systèmes énergétiques), which brings together stakeholders in renewable energies, storage, energy efficiency, decarbonation, and grids.