Électricité de France

In 2022, 90% of EDF’s total capital expenditure (CapEx) was on low-carbon technologies. This figure includes all nuclear and renewable low-carbon CapEx. Over the next seven years, it is expected that EDF will invest over USD 68 billion in low-carbon technologies, including USD 35 billion (50%) on the second phase of its Grand Carénage nuclear programme, and the remaining amount on renewable generation (15%) and grid development and maintenance (35%).

EDF reports exemplary scenario analysis, used to inform its transition plan. The company’s analysis is company-wide and considers its value chain, both up and downstream out to 2100. EDF’s scenario testing covers five scenarios, including the International Energy Agency Net Zero Emissions 1.5°C scenario. EDF’s scenarios include considerations such as electricity demand, the development of electric mobility and hydrogen power, the cost of electricity production and the price of CO2. The company includes a carbon price of between USD 48/tCO2 to USD185 /tCO2, which aligns with the IEA’s expectations for carbon pricing.

EDF is aiming to reduce its scope 1, 2 and 3 emissions from purchased electricity (category 3) by 50% by 2030 from 2017. Although this target is SBTi validated against its “well below 2°C by 2030” scenario, it is not ambitious enough to align with a 1.5°C pathway. In 2022, EDF had one of the lowest carbon intensities among the benchmarked companies, at 50 grams of CO2 per kilowatt-hour (gCO2/kWh). EDF is committed to decreasing its carbon intensity to 35 gCO2/kWh in 2030. However, the company needs to aim for a greater reduction in its emissions intensity to aligned with its 1.5°C pathway in 2030.

The company’s emissions intensity decreased between 2017 and 2022. This is likely due to the 26% decrease in its electricity generation over the period, wherein its coal, gas and hydropower generation decreased, while its solar and wind generation increased. To align with its 1.5°C pathway in 2027, EDF must reduce its emissions intensity by 15% per year between 2022 and 2027 – more than double its emissions reduction rate between 2017 to 2022. However, based on forward-looking projections of its assets, EDF is expected to increase its emission intensity between 2022 and 2027.

EDF’s trend in emissions intensity for its purchased power significantly decreased between 2017 and 2022. Approximately 10% of EDF’s sold electricity is purchased by the company from third-party sources (63 terawatt hours (TWh) in 2022). To align with its 1.5°C pathway in 2027, the company must reduce its emissions intensity by approximately 14% per year. However, EDF’s future purchased power emissions intensity could not be assessed as EDF does not disclose relevant data or forward-looking commitments for its purchased power. Lack of disclosure on the company’s purchased power and energy sales creates lack of clarity on its intention to transition away from fossil fuel-based electricity generation.

EDF is actively developing business models for a low-carbon future. The company plans to significantly grow its installed renewables capacity from around 36 GW in 2022 to 60 GW by 2030. EDF has also identified opportunities to enable customers to use smart meter data to reduce emissions and has developed a customer monitoring app. By 2023, EDF aims to roll out 400,000 charging points and operate 20,000 smart charging points. EDF has also made a decision to build six new EPR-2 nuclear power reactors from 2035 and is involved in studies for an additional eight reactors.

EDF is committed to decrease its carbon intensity to 35 gCO2/kWh in 2030. Further, it is committed to reach net-zero scope 1, 2 and 3 emissions across its value chain by 2050. It is also aiming to reduce scope 1 and 2 emissions and scope 3 emissions from purchased electricity by 50% by 2030 compared to 2017. By 2030, EDF aims to have a renewable energy capacity of 60 GW, from around 36 GW installed renewable energy capacity in 2022. EDF is also committed to rolling out EV- and smart-grid technology.

EDF’s transition plan includes actions such as doubling its installed renewable energy capacity between 2015 and 2030 to achieve 60 GW by 2030, and the closure and divestment of its coal assets by 2030. EDF also has a solar power plan which aims for a 30% market share of solar photovoltaic (PV) energy in France by 2035. However, the company reports limited financial detail to back its transition plan. EDF has conducted scenario analysis using five scenarios, including the International Energy Agency’s (IEA’s) Net Zero Emissions (NZE) Scenario, to test the resilience of its transition plan.

EDF has a significant renewables portfolio and as of 2022, 90% of its electricity generation was from low-carbon sources, with 76% from nuclear sources and 13.9% from renewables. Despite having a coal phase-out date, EDF has not committed to phasing out oil or gas-fired power generation. In 2022, 10% of EDF’s electricity generation came from fossil fuels. In 2022, 90% of EDF’s total CapEx spending was on low-carbon technologies. EDF is investing in direct air capture (DAC) technology on the site of its Sizewell C nuclear power plant and is setting up a CO2 capture test facility in Le Chatou.

In 2020, the Science Based Targets initiative (SBTi) validated EDF’s carbon reduction target as being well-below 2°C. In 2022, EDF surpassed its carbon intensity target of 56 gCO2/kWh, as it reached 50 gCO2/kWh. On a global scale, EDF spent 60% of its total R&D budget over the last three years on low-carbon technologies. In support of its coal phase-out commitment, in 2021 EDF decommissioned two UK-based and one French coal plant (Le Havre). By the end of 2023, EDF closed its last UK-based coal-fired generation plant, West Burton A.

EDF is projected to significantly exceed its total 1.5°C carbon budget between 2022 and 2037 and increase its emissions intensity between 2022 and 2027. EDF is aiming to reduce its scope 1 and 2 emissions and scope 3 emissions category 3 emissions by 50% by 2030 from 2017. Although this target is SBTi validated against its “well below 2°C by 2030” scenario, it is not ambitious enough to align with a 1.5°C pathway. Although EDF has made progress towards its net-zero target, in order to align with a 1.5°C pathway, EDF should aim to reach net zero by 2040 across its global operations and by 2035 within its advanced economy operations.

The company commits to engaging in social dialogue with workers and unions. It also discloses the categories of stakeholders it engages with on a just transition, including employees, partners, service providers, suppliers, customers, host communities, trade union and representatives. However, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

The company has a commitment to create and support access to green and decent jobs as part of the low-carbon transition. Furthermore, it discloses the actions it takes to provide 1,000 jobs in its offshore wind farm. However, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. No relevant disclosure was found of the company’s assessment of employment dislocation risks. The company has a commitment to reskill and upskill workers and stakeholders affected by the low-carbon transition and discloses the actions it takes in this regard. For instance, it sets up a national program to support SMEs in the renewable energy sector which helps make energy projects territorial assets for employment, training, and integration. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. No evidence was found of the company having a process for identifying skills gaps for workers and stakeholders affected by the low-carbon transition.

The company demonstrates how it contributes to addressing the impact of the low carbon transition on workers’ and affected stakeholders’ social protection in which it operates. However, no relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. The company discloses that no gaps were identified between its lobbying activities with policies and regulations that support the just transition. The company also lobbies for just transition policies and regulations, such as supporting the European project on green jobs through SGI Europe.

The company commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. Furthermore, the company discloses a human rights due diligence process that includes the identification and assessment of salient human rights risks, such as harassment and discriminations, rights of local communities, and the use of security forces near conflict zones. The company takes action to mitigate these risks in its own operations and supply chain, and it engages with affected stakeholders. Additionally, the company has a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. The company is committed to paying a living wage and requires its business relations to pay their workers a living wage. However, no evidence found that the company describes how it determines a living wage for the regions where it operates. While the company publicly states that workers shall not be required to work more than 48 hours in a regular work week, no evidence found that the company publicly states that all overtime work must be consensual and be paid at a premium rate. The company discloses the proportion of its total direct operations workforce covered by collective bargaining agreements. Moreover, the company discloses some indicators of workforce diversity, including the age and gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity by each employee category. No evidence was found that the company commits to gender equality and women’s empowerment.

While the company commits to protecting personal data, no evidence was found of a privacy statement regarding the collection, sharing and access to personal data. The company discloses its global tax strategy and the corporate income tax paid for each relevant jurisdiction. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. However, no evidence that the company has a lobbying and political engagement policy, nor does it specify that it does not make political contributions. The company discloses its expenditure on lobbying activities.