Universal Registration Document 2022

Forest fire prevention

Forest fire prevention is an integral part of environmental risk management.

Fire prevention in Brazil

Sinop Energia and its subcontractors have implemented a forest fire contingency plan in accordance with national forestry legislation. The contingency plan is a set of actions designed to avoid damage caused by fires and involves periodic monitoring that is mindful of the preservation of the environment, natural resources and livelihoods. This plan establishes procedures to be adopted by agencies involved that are directly or indirectly involved in the prevention, preparedness and response to emergencies that may occur during the dry season. The area covered includes the Sinop hydropower plant dam, access road, transmission line and areas undergoing vegetation restoration (particularly areas that have experienced fires before or have a high probability of occurrence). The main objective of the firefighters is to act under the command of the unit leader and the fire officer during all preventive actions. The aim is to minimise the risk of fire outbreaks: land surveillance, operation of surveillance systems, establishment of burning schedules with rural producers, environmental awareness and educating the public, etc. In addition, other fire risk prevention actions are planned (opening and/or maintenance of old roads used as firebreaks, maintenance of firebreaks within the boundaries of landholdings, clearing under transmission lines, maintenance and updating of the fire brigade, training and refresher courses for firefighters, purchase and maintenance of firefighting equipment, monitoring of firefighting actions).

Deployment of volunteer firefighters

In 2022, in view of the seriousness of the fires and their exceptional intensity, EDF and Enedis decided to release all EDF and Enedis volunteer firefighters who were not essential to the production and continuity of the power supply, so as to allow them to join their firefighting colleagues who were already on site. The EDF group has been certified as a “Volunteer Firefighter Employer” and, as such, offers volunteer firefighters the opportunity to be deployed to carry out public service rescue missions as well as training activities ⁽¹⁾.

3.5.4.4 Predictive watch networks

EDF anticipates changes to environmental and energy policies in order to take appropriate measures to guarantee regulatory compliance and manage business integration or reputational risk issues. To this end, the Impact Division coordinates a predictive watch system that mobilises and coordinates the Group’s experts.

Watch networks

This process is based on the work of thematic groups known as “watch networks”: water, waste and soil, air, biodiversity, industrial risks, energy efficiency, energy poverty, health and climate change, sustainable finance.

Sustainable Development Agency

The managers of each network meet every month as a Sustainable Development Agency which monitors the transversality of approaches and ensures that the Group’s challenges are taken into consideration.

Cross-functionality

Each network works closely with the Legal, Public Affairs and European Affairs Divisions.

Recognition

EDF was considered by the InfluenceMap think tank to be one of the 17 companies most actively supporting regulation in accordance with the Paris Agreements ⁽²⁾.

3.5.4.5 Controversy management process

The EDF group attaches great importance to identifying, preventing, mitigating and remedying the risks of serious human rights, environmental and health and safety violations in all its activities and projects. Accordingly, in order to identify and anticipate the risks of ESG (Environment, Social and Governance) controversies, EDF has set up a dual system for managing controversies:

Prevention

Pursuant to its risk anticipation approach, and thanks to monitoring tools ⁽³⁾, EDF identifies the risks of ESG controversies in France and internationally to which its operating activities and projects may contribute. EDF classifies these risks in consultation with the relevant entities and countries and decides on appropriate measures and/or communication;

Engagement and responsiveness

When reacting to the occurrence of risks, EDF responds systematically and transparently to rating agencies that ask for explanations on issues they have deemed controversial. This process is applied in particular when screening projects eligible for EDF’s green emissions financing.

3.5.4.6 CSR and remuneration policy for group executives

In line with EDF’s desire to promote integrated performance based on both finance and CSR, the annual variable compensation of the Group’s senior executives is also based on financial and CSR criteria. The CSR criteria, which can represent up to 15% of the variable compensation of executives, consist of a climate criterion and two social criteria.

A Climate criterion, based on carbon intensity

Two social criteria

The global LTIR ⁽⁴⁾ and the commitment index ⁽⁵⁾ together represent up to 30% (17.5% +12.5%) of the bonus linked to objectives that are specific to the different structures of the Group (Divisions, companies). Since 2022, the Commitment Index has replaced the Leadership Index to strengthen the link between executive remuneration and the Group’s CSR commitments.

In addition, the long-term remuneration (3-year plan) of certain executives is also based, on top of the financial criteria, on CSR criteria, namely: rating obtained from the CDP agency (climate and water) as well as the percentage of women on the Management Committees and female executives at the Group level. These two criteria account for 20% of this variable remuneration.