Universal Registration Document 2022

Introduction

Listening

In 2022, as part of the Excell Plan, a survey was conducted for the 3rd time of suppliers in the nuclear sector to identify ways to improve relations and potential optimisations to boost our suppliers’ engagement. The results demonstrate improvement in relations between EDF and its suppliers following the various measures put in place, particularly the creation of the positions of Purchasing Category Manager and Strategic Supplier Manager at the Purchasing Department.

EDF took part in the Pacte PME Association’s 2021 Observatory; this assessed the quality of relationships between major clients and SMEs. Satisfaction is up on all themes compared to the previous survey in 2019.

Dialogue at site level

In every country, to foster dialogue, promote the development of relations between EDF suppliers and local businesses, and improve these businesses’ skills, entities organise regular events or specific schemes such as “Une rivière, un territoire” (“One River, One Territory”) agencies to boost the economic development of the regions where its hydropower facilities are located, the Salon à l’envers in Cattenom, or the “Sourcing and matching of general contractors with local sub- contractors” seminar with the Ardèche CCI and the Cruas power plant.

Training

Following the AFNOR ISO 14 001 audit of the Nuclear Fuel Department (NFD), an e-learning course setting out the NFD’s environmental issues was created, providing NFD staff with the right tools to challenge suppliers and service providers on the themes of the Environment and Biodiversity. The goal was to design a short- term, adaptable and sustainable educational solution to raise awareness at every stage of the fuel cycle (overview) and send a strong message: “We are responsible for the environmental impact of suppliers’ activities”.

3.4.2.3.2.4 Responsible procurement process

Group commitments and obligations in respect of responsible procurement apply to every stage of the procurement process, including during prior supplier qualification, as well as during preparation of calls for tenders.

Principles

Supplier commitments:

validation of a compliance commitment for all bidders (mandatory to respond to the call for tenders) covering the following areas: corruption, money- laundering, the funding of terrorism, compliance with international sanctions and the absence of any conflict of interest. Bidders undertake to comply with requirements pursuant to the French Duty of Vigilance Act: observing human rights and the fundamental rights of individuals, guaranteeing individuals’ health and safety at work, protecting the environment, and complying with social and environmental legislation applying to their business;

  • incorporation of CSR criteria in tenders, including specific criteria in the specifications on the basis of the risks identified for each type of contract and/ or to address Group CSR aspirations such as the use of sheltered workshops, local engagement, and the inclusion of SMEs in the supplier panel;
  • development of Productivity Partnerships (see section 3.4.2.3.2.8);
  • systematic inclusion of a CSR Charter for EDF and its supplier as part of tender documentation updated in December 2022. This update refers to the Group’s raison d’être and CSR commitments made by the Group, and takes better account of the duty of vigilance;
  • the inclusion of a CSR clause in General Terms and Conditions of Purchase;
  • monitoring supplier compliance with these principles (see section 3.4.2.3.3 “Supplier monitoring”).
Further measures on climate issues and natural resources

In May 2022, as part of its adaptation of its raison d’être, the Group Purchasing Department decided to take further measures to tackle and focus on climate issues and natural resources in its purchasing process with prescribers and suppliers to reduce carbon emissions and preserve natural resources. This Sustainable Purchasing Plan is managed by the Group Purchasing Department in collaboration with multiple EDF entities and focuses on 3 goals:

  • taking account of sustainability issues in our purchasing processes, in collaboration with prescribers, particularly based on lifecycle costing;
  • setting up a carbon and resources incentive system for suppliers,
  • getting Group Purchasing Department staff engaged with these key issues.

Work in 2022 has already included:

  • identifying high-priority purchasing categories on which to focus initial measures;
  • raising purchaser awareness of these high-priority categories;
  • testing a simplified purchasing file greenhouse gas emissions assessment tool;
  • creating a dashboard featuring specific quantified goals.

Following the adoption of an internal energy sobriety plan by EDF, the Group Purchasing Department committed to assisting Group suppliers with reducing their consumption. To this end, an Energy Sobriety space was opened on the EDF’s dedicated supplier site and a letter was sent to suppliers in October 2022. This letter particularly encouraged suppliers to put in place productivity partnerships to optimise resources and reduce energy consumption (1).

Further measures on health & safety issues

In addition, following the EXCOM of 21 March 2022, it was decided that every business line must require that a high level of health & safety standards be met when selecting businesses and that these standards must be raised at every stage of the purchasing process. To do so, an approach was developed for each health & safety issue per purchasing category to identify the most exposed categories (e.g., rotating machine maintenance) in order to take appropriate actions such as including standards in specifications, and suitability and/or admissibility criteria, and criteria in technical ratings.

3.4.2.3.2.5 Other practical procedures within the EDF group

Even when the mechanisms described in the preceding chapter are not directly applied, the major departments or subsidiaries use equivalent methods of commitment adapted to their specific industrial or geographic characteristics. A Working Group meeting twice a year allows every entity to share its sustainable purchasing processes and accordingly have the chance to work with other entities on specific issues. In 2022, the Working Group addressed the following issues: the EDF Purchasing Department’s Sustainable Purchasing Plan, EDF R’s newly-released sustainable purchasing tools, and feedback on the Human Rights questionnaires sent to suppliers.

Therefore, suppliers of the Nuclear Division must agree to comply with the Progress Charter for Exemplary and Efficient Nuclear Power and the Social Specifications of the Strategy Committee for the Nuclear Sector.

EDF Renewables

EDF Renewables responsible procurement is based on two pillars.

The supplier qualification process takes place in two stages. The first of these is a request for information phase, during which suppliers answer a list of questions and provide documents about their environmental and societal management, including information about human rights (policies, codes of conduct, commitments, procedures, supply chain management, and any sanctions). Following this first stage of qualification, they are then audited to ensure that the practices adopted are in line with EDF Renewables standards.

Contractual clauses make up the second Responsible Procurement pillar. When they enter into the agreement, providers undertake to abide by EDF Renewables environmental and societal requirements and to apply these to their own suppliers and subcontractors. Failure to fulfil these requirements may entail termination of the agreement.