Universal Registration Document 2022

• Electricity distribution (NACE codes D35.12 and D35.13): construction and operation of interconnected electricity distribution and transmission networks (4.9).
• Electricity generation from renewable energy sources excluding hydro (NACE codes D35.11 and F42.22), which include:
  • electricity generation using solar photovoltaic technology (4.1);
  • electricity generation from onshore and offshore wind power (4.3);
  • electricity storage (4.10);
  • maintenance and repair of renewable energy technologies (7.6).
• Electricity generation from hydropower (NACE codes D35.11 et F42.22): construction and operation of power generation facilities using hydroelectric power plants (reservoir power plants, run-of-river power plants, and pumped storage power stations – 4.5; 4.10).
• District heating/cooling distribution, cogeneration of heat/cold and power from bioenergy (4.15; 4.20).
• Energy efficiency and performance services, research and development that correspond to:
  • installation, maintenance and repair of energy efficiency equipment (7.3), and professional services related to the energy performance of buildings (9.3);
  • research, development and innovation expenditures to reduce or avoid emissions (9.1).
• Fossil gas related activities (NACE codes D35.11, F422.22), which cover:
  • electricity generation from fossil gaseous fuels (4.29);
  • high-efficiency co-generation of heat/cold and power from fossil gaseous fuels (4.30).

This table summarises nuclear energy and fossil gas related activities. It is applicable for every Taxonomy indicator (see section 3.8.4.4):

3.8.4.3.1.2 Group activities not explicitly mentioned in the regulation

Some of the Group’s activities are not explicitly mentioned in the regulation but, after analysis, have been considered as contributing substantially to mitigating climate change because they can be linked to eligible activities.

Therefore, sale of electricity from purchase obligations: this legislative and regulatory mechanism in force in France obliges EDF to purchase electricity produced by certain 100% renewable energy sources and to resell it to customers on the same basis as EDF’s own production.

On the other hand, with regard to the aggregation activity: this activity consists of selling the electricity purchased from (renewable) electricity producers or from players with load-shedding capacities. Even though aggregation plays a key role in the development of renewable energy, and therefore in the mitigation of climate change, it was not selected as eligible because the core of the business model is similar to marketing, which is excluded from the Taxonomy.

3.8.4.3.1.3 Activities not eligible under current legislation

The activities below are those for which the Group has not identified a direct contribution to one or more objectives of the European Taxonomy and are not covered by regulation:

• marketing of electricity not produced by EDF or whose source of production is not eligible;
• marketing of gas;
• purchases and sales on wholesale markets in connection with electricity and gas optimisation transactions;
• generating electricity from nuclear energy outside the European Union and nuclear services.

Please note that turnover_T, defined by the Taxonomy is the total amount of turnover within the scope of the IFRS 15 standard “Revenue from Contracts with Customers”.

For the Group, this definition therefore excludes “Trading” activity margin from the Taxonomy turnover, despite this is disclosed in turnover in the financial statements.

3.8.4.3.2 Analysis of the alignment

3.8.4.3.2.1 Substantial contribution criteria

In order to assess the alignment of its activities, each Group entity has verified compliance with the criteria for substantial contribution to climate change mitigation.

• Nuclear activities: the alignment of nuclear activities covered by the Taxonomy is specified in section 3.8.4.3.2.4.
• Fossil gas related activities: to date, due to technical criteria particularly in terms of maximum emissions level (gCO₂/KWh), all the Group’s gas-fired energy production activities are eligible, but not aligned.
• Electricity distribution: all the technical criteria are met and this activity is aligned.
• Power generation from renewable energies (other than hydropower): all the technical criteria are met and this activity is aligned.
• Eligible heating or cooling networks and cogeneration facilities: those using more than 50% renewable energy, 50% waste heat, 75% heat from co-generation, or 50% a combination of these types of energy or heat were considered aligned.
• Electricity generation from hydropower: only a tiny fraction of the activities does not meet the technical criteria for substantial contribution.