Universal Registration Document 2022

The salient environmental risks are as follows:

3.9.6.2.2 Main prevention, mitigation and monitoring measures implemented

To prevent and mitigate risks of serious harm to the environment, EDF relies on its Environmental Management System (EMS) and its CSR policy to commit its entities to a precautionary approach and acting responsibly. The most significant risks are covered in risk control plans in conjunction with the Group’s CSR policy.

In order to implement the environmental goals and related actions based on its CSR commitments and policy, the EDF group has set up a Group-wide environmental management mechanism using an EMS (see section  3.5.4.2 “Environmental management system (EMS)”). This management system relies on EDF’s governance bodies, which define the environmental guidelines and objectives to be achieved, in line with the expectations of external and internal stakeholders (see chapter 4 “Corporate governance” and section 3.5.2 “CSR Governance”).

In accordance with the requirements of the CSR policy, each of the Group’s entities ⁽¹⁾ is implementing an environmental management approach adapted to its own issues.

The EMS’ operation is carried out by Group and business processes that allow for certification to stakeholders:

• controls environmental risks and ensures that the EDF group complies with regulations and its commitments: each entity draws up and implements an environmental programme or action plan that takes into account the Group’s commitments concerning it, its significant environmental aspects, and its regulatory obligations, considering its risks and opportunities;
• improve the efficiency of its organisations in a way that is appropriate to the issues at stake: each entity is responsible for its own internal control, internal and external audits of its EMS, and interfaces with the Group EMS;
• mandatory non-financial reporting of the environmental activities of the entities: each entity collects and communicates the required environmental information to the Sustainable Development Department.

The Group’s EMS is certified by an external body, AFNOR, according to the international standard ISO 14001. All industrial sites are covered by an EMS, 80% of which are certified.

In 2022, the results of the certification audits conducted by AFNOR confirm the quality of the leadership, strategies, and policies built in alignment with regional issues and the needs and expectations of stakeholders. The auditors also underlined the effective and rigorous coordination of environmental management systems at certified entities and subsidiaries, and noted progress on management of environmental impacts on business lines, with issues relating to CO2 and biodiversity increasingly taken into account. These audits revealed 11 new minor non-compliances; the 14 minor non-compliances from the previous audit campaign were resolved. The main area is which progress is expected is the systematic taking into account of environmental impacts from the design phase, based on the principles of the circular economy and development of a Group-wide prevention and prediction culture by better analysing causes and monitoring the effectiveness of corrective actions. Increasing internal audits, which drive progress, would also be beneficial.

3.9.6.2.2.1 Prevent impacts on the climate

The EDF group recognises the urgency of acting against climate change. It has aligned its ambitions with the Paris Climate Agreement, whose goal is to limit global warming to well below 2, preferably 1.5°C, relative to pre-industrial levels. The Group’s CO₂ emission reduction trajectory has been validated by Science Based Targets. The EDF group has set up a dedicated governance structure in line with the best practices recommended by the Task Force on Climate-Related Financial Disclosure (TCFD). The Group’s climate strategy, aligned with CAP 2030, is accompanied by four CSR commitments: an ambitious carbon trajectory, carbon- offsetting solutions, adaptation to climate change, and the development of electricity uses and innovative energy services, which form the EDF group’s climate transition plan (see section 3.1.1 “Group carbon trajectory”).

Group carbon trajectory

Carbon neutrality by 2050

The EDF group was one of the first companies, way back in 2018, to set itself the goal of contributing to achieving carbon neutrality by 2050. This commitment was strengthened and clarified in March 2020. This involves in practical terms:

• direct emissions: reducing the Group’s direct greenhouse gas emissions to zero or virtually zero by 2050;
• indirect emissions: reducing indirect greenhouse gas emissions as much as possible within the framework of national policies;
• Group residual emissions: implementing negative-emission projects to offset the Group’s residual emissions by 2050.

This covers emissions of all greenhouse gases for all Scopes (1, 2 and 3) and for all operations of the Group across the globe.

2030 targets recognised by the SBTi

In 2020, the EDF group set new targets to cut its greenhouse gas emissions by 2030, covering both its direct emissions (Scope  1) and its indirect emissions (Scopes 2 and 3). On 7 December 2020, the Science Based Targets initiative ⁽²⁾ confirmed based on its recently-published methodology specially developed for the electrical sector ⁽³⁾ that these goals are in line with Well Below 2°C trajectory. The EDF group thus committed to the following 2030 targets:

• 50% reduction, on 2017 levels for Scope  1 and Scope  2 emissions, also including emissions from non-consolidated assets and emissions associated with electricity purchased (i.e. not generated by it) to be sold to end customers;
• 28% reduction, compared with 2019 levels of emissions from combustion of gas sold to end customers (Scope 3).

In keeping with these targets validated by SBTi, the EDF group has decided to set the following additional 2030 targets: 25MtCO₂ for Scope 1 emissions in 2030, a 28% reduction on 2019 levels of the emissions of the entire Scope 3 by 2030.

In order to reach these targets, a greenhouse gas emissions reduction trajectory has been developed for the three Scopes of the EDF group. This trajectory contains a 2023 milestone, with the following interim targets:

• 28 to 30MtCO₂e for Group Scope 1 emissions in 2023;
• 23% reduction, on 2017 levels for Scope  1 and Scope  2 emissions, also including emissions from non-consolidated assets and emissions associated with electricity purchased (i.e. not generated by it) to be sold to end customers;
• 10% reduction, on 2019 levels for emissions associated with the combustion of gas sold to end customers and an 8% reduction for the entire Scope 3 of the Group.