Universal Registration Document 2022

3.5 CSR Governance

The CSR governance structure is based on venues for information and forums for dialogue that strive to constantly improve the identification and assessment of the risks and opportunities specific to each issue and each commitment. This continuous identification is complemented by a complete organisational system aimed at controlling the implementation of the Group’s commitments, while respecting the management independence of the regulated infrastructure managers.

3.5.1 Group policies

3.5.1.1 The Corporate Social Responsibility (CSR) Policy

Last year, a new EDF group Corporate Social Responsibility policy was adopted by the Executive Committee to replace the previous Sustainable Development policy.

Consistency and subsidiarity

The Company’s environmental, social and economic performance is driven in the first place by the contributions of the various entities. The CSR policy provides a framework for these actions by formulating ordinary requirements and principles of action aimed at implementing the 16 CSR commitments to prove that the Group’s raison d’être is being carried out. It applies to Group entities without overriding the managerial independence of regulated infrastructure operators, and defines the priorities for 2030 at the Group level, which each entity implements taking into account its specific activities and challenges, in line with the principle of subsidiarity. Where appropriate, an entity may choose to supplement the requirements of this policy.

3.5.1.2 Other policies addressing CSR (expansion of CSR)

In addition to the CSR policy, other Group policies focus on other specific aspects of corporate responsibility (HR policies, Procurement policies, Ethics & Compliance policy, Nuclear Safety policy, etc.). In line with the Group’s raison d’être, CSR is gradually being extended to all areas of the Group’s activity.

3.5.2 CSR governance bodies

3.5.2.1 Board of Directors

The duties, powers, composition and operation of EDF’s Board of Directors are described in detail in chapter  4, section  4.2 “Members and functioning of the Board of Directors”. The Corporate Responsibility Committee ⁽¹⁾, as one of the Board of Directors Committees, examines, in connection with the Group’s strategy, the Group’s commitments and policies, as well as their implementation, in terms of ethics, compliance, and corporate responsibility.

At the beginning of 2023, a joint meeting of the Audit Committee and the Corporate Responsibility Committee of the EDF Board of Directors was organised prior to the closing of the financial statements for the fiscal year ending 31 December 2022 and the approval of the management report by the Board of Directors. The purpose of this joint meeting of the two Committees, held for the first time, was to review, in the presence of the Independent Third-Party Body and the Statutory Auditors, the results of the Group’s ESG performance published in the Non-Financial Performance Statement for fiscal year 2022, as well as, for the second consecutive year, the results of the taxonomy (see section  4.2.3.4 “Corporate Responsibility Committee”).

3.5.2.2 CSR Strategy Committee

The CSR Strategic Committee, which is chaired by the Chairman & Chief Executive Officer and composed of the Group’s Executive Directors ⁽²⁾, conducts an in-depth review of all CSR issues, for which it provides strategic management and coordination. Depending on the agenda, the conclusions of the meetings are reported to the Board of Directors ⁽³⁾.

News in 2022

The CSR Strategic Committee met three times and dealt in particular with the non- financial rating, duty of vigilance, climate change adaptation plans, and the Group’s environmental management system.

3.5.2.3 Sustainable Development Committee (SDC)

The SDC prepares the files presented to the CSR Strategy Committee and acts as a sector committee for environmental and societal competencies. It is chaired by the Sustainable Development Director and is made up of some twenty representatives in charge of sustainable development within their respective entities. In 2022, the SDC met on 6 occasions.

3.5.2.4 Impact Department

The Impact Department (formerly the Sustainable Development Department) reports to the Innovation, Corporate Social Responsibility and Strategy Director, a member of the Executive Committee.

Ambition

Its aim is to represent a differentiating factor for the Group’s environmental and societal performance, as a responsible company and while respecting the management independence of network managers, that creates value for all stakeholders (employees, shareholders, customers).

Contribution to the Group’s strategic transformation

It contributes to the Group’s strategic transformation by accompanying business lines and projects:

• in specifically taking into account environmental and social issues (opportunities and risks);
• with respect to business choices and actions, in particular by integrating the four key issues derived from the raison d’être in the strategic supervision of the operational entities; and
• in screening new projects from the point of view of CSR ⁽⁴⁾.

It is particularly responsible for monitoring the Group’s target for reducing “Scope 1” direct GHG emissions ⁽⁵⁾.