Before the start of the war in Ukraine, the EDF group operated in Russia in two ways. Firstly, in the energy services field, via Dalkia’s subsidiary in Russia, the company Dalkia Rus. Then, via its Moscow office that was tasked, in Russia, with (i) promoting Group business lines and (ii) developing new activities relating to the energy transition. Since the start of the war in Ukraine, the EDF group has relied on the measures set out in its vigilance plan to make sure that neither its activities nor the activities of entities with which it is in business feature risks of serious violation of human rights, health and safety, or the environment. It has also relied on the provisions of the OECD Guide (1), which recommends that businesses assess any plans to terminate a business relationship based on the importance of this relationship, the legal consequences of the pursuance or termination of the relationship, changes that termination would cause in the field, as well as any credible information regarding potential negative economic and/or social impacts of the termination decision.
Accordingly, EDF suspended its operations in Russia, taking the decision in March 2022 to close its Moscow office, then announcing on 23 May 2022 the sale of Dalkia’s Russian subsidiary, Dalkia Rus.
Plus, to ensure that no contractual relationships breached the packages of sanctions adopted against Russia, the EDF group relied on its organisation and guidelines in terms of export control & sanctions. More generally, the decision to pursue certain relationships was always taken in accordance with international sanctions and restrictions imposed by Russia, the absolute need not to violate human rights, fundamental liberties, personal health and safety, and the environment, or to jeopardise nuclear security, plus continuing to secure the electricity supply of France and European countries, which – given the current geopolitical and economic situation – is a key goal as electricity is an essential product.
In 2018, an NGO referred the planned Gunaa Sicaru wind farm, managed by a subsidiary of EDF Renewables in Mexico, to the OECD’s French national contact point (NCP). During the course of the OECD mediation process, the EDF group took part in two dialogue meetings with the plaintiffs and provided some responses to the concerns raised. The NCP closed the matter in spring 2020. The indigenous consultation process conducted by the Mexican authorities was suspended following the earthquake in 2018, and since 2020 due to the Covid-19 pandemic. The process is now taking its course after the judge ordered the resumption of the consultation. Likewise, in December 2019, EDF responded to a formal notice for the same project sent pursuant to the French “Duty of Vigilance” Act by that NGO and four individuals. EDF was then summoned on 13 October 2020 to appear before the Paris Court of Justice (tribunal judiciaire) under the French “Duty of Vigilance” Act. The applicants have asked the court to order changes to the Vigilance Plan produced by EDF to better address, in particular, the risks posed to the rights of indigenous communities and to order compensation for the damage caused by its failure to fulfil its duty of vigilance. EDF has challenged these two applications. On 30 November 2021, the pre-trial judge rejected the non-profits’ request for a precautionary suspension of the project as well as their request for an injunction against EDF’s Vigilance Plan, due to the lack of a prior formal notice. The applicants appealed the judgment of the pre-trial judge. The Tribunal proposed mediation, which EDF accepted. Since then, the process has been ongoing at the court of appeal. On 12 July 2022, the French NCP published a press release noting the bolstering of EDF’s corporate policy and the work done on human rights, as well as engagement with stakeholders. As these measures met its recommendations, the NCP accordingly ended its monitoring (2). Developments in the case are also being monitored by members of the CDRS (see section on CDRS).
A website dedicated to the project is available in English and Spanish:
https:// www.gunaa-sicaru.com/.
Group mapping of risks is performed based on the Group’s line of industrial activities. Environmental risks are identified, assessed, and prioritised through the environmental management system (EMS) and the internal control system linked to Group risk management (see section 3.5.4.2 “Environmental management system (EMS)”). The identification of environmental risks is part of the Group’s overall risk management system (see chapter 2 “Risk factors and control framework”). Each company draws up its own risk map, based on the Group’s methodology, and defines action plans to reduce and limit its risks.
The 2022 risk mapping update reconfirmed the 2021 risk analysis and did not highlight new environmental risks. The main change concerns the observation of the effects of climate change with higher temperatures in summer and droughts increasing the pressure on both environments and some of the Group’s business lines such as hydropower and nuclear activities.
(1) OECD due diligence guide for responsible business conduct, published on 20 March 2018 (http://mneguidelines.oecd.org/OECD-Due-Diligence-Guidance-for-Responsible- Business-Conduct.pdf).
