EDF’s subcontracting policy focuses on three main themes: providing providers with visibility and ensuring long-term supply partners; helping the Group improve its subcontracting practices by defining criteria to support decision-making in terms of strategy, economics and social impact (CSR and skills maintenance); developing socially-responsible subcontracting practices, particularly via the new Global Framework Agreement on the EDF group’s Corporate Social Responsibility (Article 4) signed on 19 June 2018 and the agreement signed on 19 October 2006 on socially-responsible subcontracting.
The Group may be required to use subcontractors with employees under contracts drawn up in a country other than the one in which it operates. In this case, particular attention is paid to human rights, working conditions, housing conditions and employee health and safety.
The EDF group implements a compliance plan, including a map of the risks identified in relation to its suppliers and subcontractors, a risk assessment, and the risk mitigation measures taken.
The decision to outsource or backsource activities in these areas is based on a strategic analysis for each industrial policy segment. The analysis takes into account criteria such as the need for the Company to master strategic skills (core businesses, etc.) and variations in workload and the flexibility needed to address them.
CSR governance organised at all levels of the Group: Board of Directors, EXCOM and Stakeholder Council. CSR Agreement commitments are monitored by the global CSR Committee. For EDF, a Committee to monitor the socially responsible subcontracting agreement, made up of signatory trade union organisations, meets twice a year.
Progress charter: The improvement measures launched in 2015, reflected in the Progress Charter signed in June 2016 between EDF and the Professional Organisations representing the Group’s subcontractors, continued in 2022 and provided for, in particular, support for subcontractors at the Flamanville 3 work site, with a view to reducing the workload. In December 2021, EDF signed the RFAR (fournisseurs et achats responsables, i.e., Sustainable Suppliers and Purchasing) charter at the World Nuclear Exhibition. The Charter promotes a certain number of values regarding supplier relations, including the following commitments: ensuring a sustainable financial relationship with suppliers; identifying and managing mutually-dependent relationship with suppliers.
10-year workload visibility: In the nuclear field, EDF organises events with suppliers to give visibility to 10-year workload, for example at DPNT (Nuclear & Thermal Generation Department) days and GIFEN (Groupement des industriels français de l’énergie nucléaire, i.e., French nuclear energy industry group) days. Longer EDF contracts prioritising long-term relationships with suppliers to capitalise on resources and skills. Example: EPR2 and PIAT (intellectual services and technical assistance) contracts, and catalogue framework agreements that commit EDF to longer terms than in the past.
Supplier relations barometer: EDF carries out a yearly Supplier Relationship survey in September (144 suppliers surveyed) to compile information about their points of view and obtain feedback. The results of the last survey support the action taken in terms of contractual improvements and the extended enterprise model. Points of satisfaction included: high supplier appreciation of visibility regarding EDF’s industrial programme and the 3-year detailed workload plan, invoicing and terms of payment (effect of electronic invoices and specific methods adopted during Covid), systematic deployment of new Excell standards in invitations to tender launched since early 2022, including issuing of information packs to suppliers covering the actions taken in different Excell areas (manufacturing, supplier relations, standardisation, and welding plan) that are reflected in contractual provisions
The OpenSource policy established in 2016 is still valid. For 2022, it focused on three additional areas:
In an increasingly competitive context, the Sales Division continued to use outsourcing to deal with variations in workload and cover extended hours. These external centres are also located within metropolitan France (see section 3.4.2.1.4 “Focus on the customer service lines of business”).
External providers are chosen and accredited for customer relations and sales development (“Engagé RSE Afnor” label).
The Group also contributes to local development through employment, taxes, and procurement, as well as via a large number of initiatives promoting a local dynamic, together with its action to facilitate access to energy in developing countries.
At local level, the Group rolls out a great many initiatives to nurture the economic, social, and human environment.
Back in 2012 EDF Hydro put in place a original local programme to assist socio- economic stakeholders in hydroelectric valleys. This scheme now consists of a network of 7 agencies, each set up following a joint development process featuring institutional, economic, and local non-profit stakeholders and taking account of specific local characteristics and expectations. The aim of these joint projects is to support the economic impetus of the valleys, particularly SMEs/SMIs and innovators, by providing assistance with bidding on EDF contracts, and setting up joint employment-based integration access projects, but also crowdlending to local businesses in the fields of water, energy, environment, and tourist activity on dams. This local programme has created or maintained over 610 jobs by means of loans to over 50 local companies. Furthermore, this should involve the creation or preservation of more than 725 jobs by 2025 (1).
EDF continued its actions based on its three main areas of focus: local economic development including the symbolic laying of the first stone of the extension of its logistical base in Tronville-en-Barrois; the training field, in which in addition to paying apprenticeship taxes, EDF provides tangible practical support to three vocational colleges, for example by helping young local people to access attractive training courses in the fields of pressure vessels and welding; and finally, the global building energy renovation programme, which is still ongoing, saw the development of a trained and qualified local sector. Today, EDF has a network of 135 businesses in the building sector that partner the programme.
In addition to substantial economic benefits for the region, Hinkley Point C contributes directly to local and national availability of skills and expertise, which will support the transition to net zero. Investments and direct actions also support improvement of social mobility by focusing on local recruitment, development of training programmes, and supporting the supply chain.
(1) The 10 years of this programme have made it possible to make a shared assessment summarised in a film accessible to all: https://www.youtube.com/watch?v=N8_H6hsqPTc
