Universal Registration Document 2022

The following table provides details these actions taken by the EDF group:

Contribution to carbon sinks

For the EDF group, use of carbon offsetting is the final stage of a process to achieve neutrality, based on the “Avoid-Reduce-Compensate” approach. Carbon offsetting must not under any circumstances take the place of a strategy designed to drastically reduce the Group’s emissions, whether direct or indirect (see section 3.1.1.6 “Carbon offsetting solutions”).

3.9.6.2.2.2 Prevent the impacts of EDF’s activities on the air, water, soil, biodiversity and the production of waste

Nature features four domains: land, oceans, fresh water, and the atmosphere. These domains are home to environmental assets, i.e., living or non-living natural elements. Ecosystems make up a large share of these assets, making the provision of ecosystem services, such as supplying fresh water, possible. Business has positive or negative impacts on nature. Short-term impacts on nature can cause changes to the quality and resilience of environmental assets, which in turn generate medium- and long-term risks for organisations, due to their dependency on them.

Policies on how to preserve natural resources are based on analysis of physical and transition risks, and, among other measures, take the form of public commitments.

The Group organised an assessment of biodiversity issues along the full value chain, including mapping issues upstream and downstream from its activities (Scope 3).

This biodiversity risk assessment, carried out using the double materiality method on dependencies and impacts, was based on the ENCORE database (Exploring Natural Capital Opportunities, Risks and Exposure). The main issues concern not only operations but also activities upstream from the EDF group value chain. Some of these upstream activities, particularly fuel and material supply operations, feature dependency issues relating to nature (resources, regulation services) and pressures (e.g. on ecosystems and water resources). The risk materiality analysis (physical and transition risks) shows that risks are correctly identified and covered, with some room for improvement (see section 3.2.1.1 “Physical and transition risks related to Nature").

Group Nature Commitments

The EDF group has a long-standing commitment to minimising the impact of its activities on biodiversity through a dedicated policy. Today, this ambition is reflected in its commitment to two mechanisms (see section 3.2.1.2 “The Group's public commitment”).

These commitments cover all of the Group’s business lines, in all geographical areas and within the scope of operational activities that present biodiversity challenges.

In 2022, the Group increased nature governance and dialogue with stakeholders in the field (see section 3.2.1.3 “Governance”).

The Group’s actions to protect and manage the natural resources impacted by its activities through responsible land management:

The Group’s action is based on three pillars (see section 3.2.2 “Biodiversity and responsible land management”):

• reducing the activities’ contribution to major pressure factors: Most of the pressures applied to biodiversity are strictly governed by regulations. The IPBES report in 2019 identifies five major pressure factors: changing use of land and sea, overexploitation of resources, climate change, pollution and invasive alien species. EDF has developed its action programme to limit its impact on each of these factors (see section 3.2.2.1.1 “Reducing the activities’ contribution to major pressure factors”);
• recreating environments with conditions favourable to biodiversity by preserving and restoring environments, as well as protecting endangered environments and species (see section 3.2.2.1.2 “Recreating environments and conditions conducive to biodiversity”);
• further improving and sharing knowledge through research and knowledge of land quality (see section 3.2.2.1.3 “Improving and sharing knowledge”).

The Group’s actions to protect and manage the natural resources impacted by its activities through integrated and sustainable water management:

Water is an essential resource to generate most types of power, either to cool nuclear and thermal power stations, or to drive hydroelectric power stations. It is an issue identified in the Group materiality matrix. This is why the Group committed in its CSR policy to protecting and managing water in an integrated and sustainable manner, both in terms of quantity and quality (see section 3.2.3.2 “Water, a resource to be preserved and saved”) and to discuss water issues with the regions in which it operates, fully taking account of the localness of water, particularly multiple uses of water faced with increasing climate issues (see section 3.2.3.3 “Water as a shared resource and a powerful marker of climate change”). In mainland France, dams operated by EDF are used to store billions of cubic metres of water and have an essential role to play during droughts and heat waves.

Group actions regarding radioactive and conventional waste, as well as the circular economy:

Optimising the use of the natural resources consumed by the Group’s value chain is an essential component of the Group’s corporate responsibility. The Group is committed to promoting a circular economy approach; avoiding the production of conventional waste and promoting the re-use, recycling and recovery of products/ materials throughout the value chain; using this waste by reallocating uses internally within the Company during new developments, or in approved recovery channels; and assuming its responsibilities with regard to radioactive waste (see section 3.2.4 “Radioactive and conventional waste, and circular economy”).