EDF_REGISTRATION_DOCUMENT_2017

RISK FACTORS AND CONTROL FRAMEWORK Control of Group risks and activities

Clear and honest communication on the events and their possible impacts are promoted within the Group. This high-quality dialogue is sought and maintained with the salaried personnel and its representatives, subcontractors, the supervisory authorities (Nuclear Safety Authority in France, Office for Nuclear Generation in the United Kingdom), local communities and all other stakeholders in nuclear safety. The Nuclear Safety Council, which the Chairman and CEO of EDF chairs, meets several times a year and, in February, examines the annual assessment of nuclear safety for the EDF group. A General Inspector for nuclear safety and radiation protection is appointed by the Chairman and CEO to whom he/she reports. He/she carries out inspection missions on all of the nuclear activities of the EDF group. Each year, it gives an opinion on safety within EDF. Its report is presented and debated in the Nuclear Safety Council. It is then made public. The hydropower field 2.2.2.4.2 Hydropower safety comprises all the measures taken when designing and operating plants to reduce risks and hazards to people and property associated with water and the presence or operation of facilities. Hydropower safety is the major and permanent concern of the producer. It involves three main activities: measures to address the major risk associated with dam or reservoir failures, ■ through the regular monitoring and maintenance of facilities under the supervision of public authorities, mainly the French regional environment, land use and housing authorities (Directions Régionales de l’Environnement, de l’Aménagement et du Logement – DREAL). Of the largest dams, 68 of them are subject to a special administrative procedure implemented by the competent prefect; the management of facilities during periods of exceptionally high water levels, in ■ order to ensure safety at the facilities and for the surrounding communities; control of operational risks: changes in the level of the water bodies or the flow ■ of watercourses downstream of the works. EDF regularly monitors and maintains its dams, including through continuous monitoring. The real-time readings and analysis, at each site, of multiple data (settlement, pressure, leakage measurements, combined with the visual inspection of the concrete and an inspection of the mechanical parts, etc.) enable EDF to conduct a regular assessment on the state of its dams. In Grenoble and Toulouse, EDF teams can analyse the largest dams or those dams that are the hardest to access, remotely and in real time, using a series of sensors. Furthermore, for each of the 150 large dams, a danger study including a complete technical examination is carried out every ten years. This examination requires draining or an inspection of the submerged parts with sub-aquatic equipment. These operations are carried out under the supervision of public authorities (the DREAL office at the regional level as well as the Service technique de l’énergie électrique des grands barrages et de l’hydraulique, and STEEGBH, the central French government agency specifically responsible for large dams and hydropower facilities). At the organisational level, the Hydropower Safety Inspector prepares an annual report for the Chairman and CEO of EDF, to which he or she reports directly, as well as to those involved in hydropower safety. Issued after analyses, inspections and assessments carried out by the Hydropower Safety Inspector, this report aims to give an opinion on the level of hydropower safety of the Group’s installations and provide a basis for reflection and progress to ensure its improvement and consolidation. This report is made public on the Group’s website.

Each operational and functional Director makes a commitment each year with regard to the quality of the Internal Control system in the Accounting and Financial fields, the improvement goals for the coming period and the truthfulness and exhaustiveness of the accounting information for which they are responsible by preparing a commitment letter sent to the Group Accounting and Taxation Director. The internal control system in the accounting field is integrated into the Group internal control system as a whole. An indicator reference framework is used within EDF. It makes it possible to measure areas of conformity of the accounting information for each process. Financial communication 2.2.2.3.4 The financial communication policy defines the rules to be complied with to ensure the reliability and consistency of the financial information disseminated by the Group. The financial communication controlled by the Investors and Markets Department aims to fulfil the two fundamental objectives of ensuring the provision of financial information that is of high quality, consistent and offers the same substance to different audiences, and to ensure the compliance of the financial information with the laws and regulations in force. Furthermore, the EDF group has adopted a code of market ethics reiterating the principles and rules applicable to transactions involving securities of the EDF or listed companies of the EDF group. Alongside the dissemination of this code, awareness-raising actions on exchange rules have been carried out among Group employees, especially as regards precautions and obligations related to inside information and black-out periods during which leaders and certain employees holding inside information must refrain from making transactions involving the Company’s shares. Specific business provisions 2.2.2.4 The nuclear field 2.2.2.4.1 The nuclear safety policy of the EDF group specifies that nuclear safety is the first priority, under all circumstances, in the nuclear activities of the EDF group. Safety is based on a clear principle of responsibility and control. Each company of the Group operating nuclear facilities acts within the framework of the legal and regulatory instructions specific to the country in which it is located and has the obligation to comply with them. Each one ensures the nuclear safety of its facilities and constantly improves the level, based on its methods, skills and values. The Group develops common principles aiming to obtain the best level of prevention of incidents and protection of workers, the public and the environment. These principles apply to all stages of the activity, both for new projects and for the existing fleets. The Group closely involves its industrial partners with the achievement of these objectives. Each company is responsible for the proper performance of its nuclear activities and fixes the appropriate delegations at each level of decision or action. The Group ensures that the necessary resources are allocated to nuclear safety. An internal entity in charge of an independent safety evaluation is put in place at the level of each site, each company and of the Group (IGSNR (1) ). Each one reports to the manager concerned, independently of other managerial functions; furthermore, each one has the duty to alert the superior hierarchical level if the reaction of the level directly involved is not what is expected. The nuclear operating companies of the Group regularly receive international evaluation teams (WANO Peer Review (2) , OSART from the AIEA (3) ).

2.

IGSNR: The General Inspector for Nuclear Safety and Radiation Protection. (1) WANO: World Association of Nuclear Operators. (2) OSART: Operational Safety Analysis Review Team, International Atomic Energy Agency (IAEA). (3)

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EDF I Reference Document 2017