EDF_REGISTRATION_DOCUMENT_2017

ENVIRONMENTAL AND SOCIETAL INFORMATION − HUMAN RESOURCES Optimising the use of natural resources and preserving the environment

In order to further increase climate change transparency, over the next few years up-to-date with the requirements of financial markets with regard to climate EDF will undertake a comprehensive alignment process of its climate change-related change-related risks. financial risk disclosures with the recommendations of the TCFD, in order to stay

3.4

OPTIMISING THE USE OF NATURAL RESOURCES AND

PRESERVING THE ENVIRONMENT

A CIRCULAR ECONOMY PRINCIPLE 3.4.1 Against the backdrop of the scarcity of natural resources, the circular economy aims to respond to the increase in needs by uncoupling the use of these resources, and by breaking free from the linear industrial model of extraction – output – use – waste. It is a matter of reconciling growth, wellness and comfort with the planet’s limits, in a logical extension of the principle of sustainable development. This is done through a number of levers of actions, such as repairing, re-using and recycling objects. The eco-design of products is also encouraged. EDF pursues this approach. Electricity and heat generation is an industrial activity which requires means of generation that themselves result from a process of transformation of natural resources to build them, then operate them and manage their end of life. EDF’s integrated industrial model: being a designer – builder – operator – decommissioner of its generation facilities, places the EDF group in a privileged position to contribute to the development of this new form of economy through eco-design, improving the yield and lifespan of its facilities and properly managing the materials and waste generated by their operation. Electricity is also a means of transforming economies through the development of new patterns of use which provide improved comfort while reducing the use of natural resources (electric mobility, new energy services). In accordance with the requirements of the energy transition, the Group makes optimum use of reclaimed natural resources through its value chain – a central element of its corporate responsibility and has included this area in its sustainable development policy. It represents a very important expectation on the part of the Group’s stakeholders, and its objective goes well beyond waste management alone (1) . The principles of the circular economy guide the Company’s management (2) . We are carrying out concrete actions on the ground, particularly in the area of energy recovery within our processes or the processes of our customers, and also by promoting the reuse of our materials and equipment on our major construction or decommissioning sites (thermal and nuclear power plants) and as part of our waste processing activities like the manufacture of biological protection elements from metallic waste at SOCODEI. Eco-design becomes crucial in the engineering entities as seen in the consideration of the “design phase recommendations to facilitate decommissioning” during the definition of the basic design of future nuclear reactors. A dedicated group was set-up within the R&D Department which focuses its research on the promotion of resources by optimising the integration of local multi-energy systems, waste and soil management in a circular economy. 3.4.2 Global demand for energy and water is intensifying against a backdrop of climate change. The entire energy sector, from primary energy production to electricity generation, is entirely dependent on water. Water is needed to produce energy (with the exception of wind power and photovoltaic power); this is the quantitative aspect of water. For the qualitative aspect, the materiality matrix identifies water as a major material issue (issue no. 22 Management of milieux: soil and water pollution). This refers to the management of pollution and contamination risks that are likely to cause biological, physical and chemical changes in land and aquatic milieux, and to their effects on health. WATER

As a network manager and major user of water, EDF must protect, manage and share water throughout the regions in which it operates by fully integrating the local dimension of water management. The EDF group has included “water” risk in its risk management policy. Each investment decision undergoes a detailed risk analysis, as well as an in-depth impact assessment. Water: a resource for energy 3.4.2.1 production Water is a fundamental element in energy production. Water power is the raw material that drives hydroelectric output. Water is also required for cooling thermal power plants and for the extraction and refinement of oil and gas products. Hydroelectricity, and therefore water, also plays an important role in electricity systems. Large dams and pumped-storage hydro-power plants provide storage capacity for water which can be quickly transformed into electrical power. As such, large reservoirs still serve as the only form of large scale electricity storage today (14GW can be made available in around 10 minutes in France), which is indispensable during peak demand periods, for the development of intermittent renewable energy sources, and to cope with emergency situations in order to prevent blackouts. In 2017, the launch of the STEP project studies were validated in Sampolo in Corsica. In France, EDF manages 7.5 billion cubic metres of water stored in its reservoirs (representing around 75% of the country’s artificial reserves). At Group level, around 50 billion cubic metres of water (including sea water) are used for cooling thermal power facilities, of which 99% is returned virtually instantaneously to the natural environment; as such, EDF is a significant user, but negligible consumer, of water. Controlling the use and consumption of water The Group is committed to continuing to improve performance in terms of water withdrawal and consumption at existing power plants and to researching the most efficient way to use water across territories and major river basins. The breakdown of the water used to cool the EDF's group's thermal power plants is 53% saltwater, 34% freshwater and 13% brackish water. In France, this consists of 44% saltwater, 40% freshwater and 16% brackish water. Exposure of the Group’s generation resources to water stress has been assessed and controlled. Most of the water withdrawal from its facilities is carried out in France (77%) and the UK (18%) in areas where there is no permanent water stress; the nuclear and thermal facilities are mainly established in coastal locations and therefore do not use fresh water. Moreover, in situations where a specific, potential risk has been identified, suitable measures have been taken either during design or operation. Therefore, the Lunax reservoir was constructed from the outset upstream of the Golfech nuclear plant to overcome a possible water shortage from the Garonne used for its cooling in periods of serious drought. Accessibility to water for generation needs is therefore ensured even under special, or even extreme conditions. Particular attention is paid to water stress when screening any new project presented to the Group Executive Committee's Commitments Committee (CECEG).

3.

Note that with regard to food waste, as mentioned by the Decree of 19 August 2016 in application of Article L. 225-01 of the French Commercial Code, EDF may be concerned (1) for example through employee canteens; their management is mainly entrusted to the EDF CWC and at this juncture, EDF does not consider this information as being material. The circular economy is one of the new requirements of ISO 14001 which is used as the basis for on the ground management action. (2)

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EDF I Reference Document 2017