EDF_REGISTRATION_DOCUMENT_2017

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ENVIRONMENTAL AND SOCIETAL INFORMATION − HUMAN RESOURCES Meeting the challenges of climate change

In its climate change adaptation plan, Enedis (2) has formalised the measures intended to reduce the vulnerability of networks (1.3 million kilometres in length) and shorten the time it takes to reconnect customers in the event of a power cut. It also covers risks of flooding and summer heatwaves. The plan essentially consists of putting high-voltage overhead lines underground to avoid risks of falling trees, wind, snow and frost, beginning with the most exposed and significant facilities for customer connection. Within this context, in 2017, Enedis took down 3,449 kilometres of high-voltage overhead lines, including 1,000 with known weather risk. Furthermore, 98% of new high-voltage networks are underground and 80% of new low-voltage networks use more discreet and reliable techniques. In addition to this investment programme, the Rapid Intervention Electricity Task Force (Force d’Intervention Rapide Électricité – FIRE) was called upon following hurricanes Egon, KLM, Zeus and Irma. This task force has the ability to mobilise up to 2,000 people, 24 hours a day, seven days a week, both in France and abroad. In 2017, an innovative substation kit, ready in 96 hours (compared to nine months for reconstruction) was successfully tested in south-east France and now bolsters the range of FIRE solutions. TRANSPARENCY As part of its CAP2030 strategy, EDF aims to be a responsible and efficient electricity company that champions low-carbon growth. EDF is committed to exceeding the requirements of the 2° С limit set forth in the Paris Agreement, and to maintaining its leading position amongst European companies that generate electricity using renewable energy sources. EDF therefore develops its strategy by taking climate change into account, in every respect. In addition to its own commitments, for several years EDF has been involved in a number of volontary corporate climate initiatives, such as complying with the Global Compact’s Business Leadership Criteria for Carbon Pricing, or its contribution to the climate commitment made by French companies during COP 21. The Group’s assessment in 2017 of the Science Based Target initiative also forms part of this commitment. Furthermore, the not-for-profit InfluenceMap lists EDF amongst the 16 most influential organisations in terms of climate policy (3) . When the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) published its recommendations, on 29 June 2017, on voluntary disclosures of financial risks relating to climate change, for use by companies in their communications to investors, lenders, insurers, and other stakeholders, EDF was one of the first organisations worldwide to adopt the recommendations (4) . EDF’s financial and non-financial communication is already in line with the TCFD’s key guidelines; with regards to the governance section of the TCFD’s recommendations, information relating to the Board of Directors’ approach (5) to risks and opportunities generated by climate change is specifically included, as well as a description of the role of management in the understanding and management thereof (see sections 2.2, 3.1.8 and 4.2); with regards to the strategy component, information relating to the description of the effects of climate change on EDF’s strategy, climate-related risks and opportunities, as well as information relating to EDF’s scenario-creation process are available in sections 1.3, 2.1, 1.6.2, 3.2, and 3.3; regarding risk management, information on the description of the Group’s risk identification, assessment and management process (also including climate change risks, included in the Group’s risk map reviewed by the Audit Committee of the Board of Directors), and on the description of the process for managing these risks, can be found in sections 2.2 and 3.1.8; lastly, information relating to the Group’s existing indicators and objectives, in order to assess climate-related risks and opportunities, are available in the table of environmental indicators presented in sections 3.7 and 3.1. COMMITMENT AND 3.3.3

The four main priorities, which focus on physical risks and transition in relation to climate change, are: assessing the current and future impacts of climate change on facilities and ■ business activities; adapting the installations concerned to make them less sensitive to the expected ■ climatic conditions and increase their resilience to the extreme changes and situations that are the most difficult to predict; taking into consideration future weather conditions in the facilities’ design; ■ adapting the Group’s solutions, internal operations and know-how in light of ■ climate change. Through its R&D Department, EDF has methods and tools to model and alleviate the impacts of climate change and to anticipate the direction in which energy systems might evolve in a context of energy transition developments. In order to manage the physical risks of climate change, EDF created a “Climate ■ Department” tasked with creating a database of expert and “ready-to-use” climate projections. Intended for Group managers and experts, this initiative helps implement the strategy throughout the Company. Furthermore, EDF launched a research programme on the robustness of nuclear and thermal power plant heat sinks in operation; this programme includes results obtained from assessments of water availability in the main French watersheds. Nuclear power plants have been designed to withstand extreme weather (1) ; The Group has also launched research projects to anticipate the developments of ■ energy systems, discover the decisive factors and constraints which they will face, identify the disruptive factors, and produce global energy market forecasts that guide the Company’s strategy. Adapting to the physical effects of climate change mainly concerns structures with a long life cycle: nuclear and thermal power plants, hydropower dams, hydrocarbon platforms at sea. As wind and solar power plants are intended to be operated for a shorter period (approx. 20 years), they are relatively unaffected, especially as they are lightweight facilities with easy-to-replace equipment. This means taking measures on existing assets and designing future assets by taking into account climate change. In order to increase the efficiency of nuclear and thermal power plants when operating in hot and cold weather, refurbishment work (almost €400 million by 2019) is being carried out on French power plants. An important milestone was reached in 2017, involving the completion of the first phase of “extreme heat” modifications on the 900MW CP1 and CP2 units. In order to provide hydropower facilities with stronger protection against extreme weather risks, some plants have been reinforced by installing spillways. This is the case of the Record Dam, the last EDF dam to benefit from the “Piano Key Weirs” spillway technology. This technology was developed by EDF’s hydropower engineering and R&D divisions, in collaboration with HYDROCOOP, the École polytechnique fédérale de Lausanne and the University of Liège. On 2 December 2015, EDF received the Large Group Award for the “Adapting to the effects of climate change” category of the Climate Solutions Trophy. In the United Kingdom, in addition to the Group’s adaptation strategy, EDF Energy has reassessed its risks, and particularly those associated with increased air and sea temperatures, and the United Kingdom’s national plan is incorporated within EDF’s climate change adaptation plan. In terms of design, for example, a potential increase in the level of the sea and oceans has been built into the design of the Group’s new EPR nuclear power plants, thus factoring them in at the design phase of the most accurate and most recent future studies.

Such as flooding, fire, etc. (1) Enedis is a fully independent subsidiary. (2) The Carbon Policy Footprint Corporate impact on climate policy may be more important than physical emissions – introducing the 50 Most Influential, InfluenceMap (3) September 2017. https://www.fsb-tcfd.org/wp-content/uploads/2017/06/TCFD-Supporting-Companies-28(28)June-2017-final.pdf. (4) Through its various Committees. (5)

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