Environmental indicators

Assessment of EDF group greenhouse gas emissions

EDF⁽¹⁾ publishes an Assessment of Greenhouse Gas Emissions covering the entire⁽²⁾ EDF group and all the main emissions sources in the GHG Protocol⁽³⁾. Every year, it makes progress in analysing its emissions to produce information that is as accurate and exhaustive as possible. EDF goes beyond the legal requirements in France by having more than 71% of its emissions - of which 99% come under Scope 1, 85% under Scope 2 and 62% under Scope 3 - verified by a third party.

The analysis focuses on Scopes 1, 2 and 3 of the GHG Protocol, covering the seven greenhouse gases listed in the Kyoto Protocol (CO₂, CH₄, N₂O, HFC, PFC, SF₆, NF₃), and ranging from fuel manufacturing to employees’ office activities. The data is presented in CO₂ equivalent, with other gases converted based on their global warming potential (GWP).

Group perimeter

The Group perimeter is determined by the consolidation method applied to companies, in line with financial standards (IAS-IFRS(4)). EDF group uses the basis of full consolidation for the financial and non-financial data of its companies. The information presented here is from the 2018 Reference Document.

Full consolidation covers all companies that the Group controls. Companies that EDF group does not control are accounted for under the equity method.

However, criteria linked to relevance of the subsidiaries' activities in terms of environmental impact are also taken into account. As such, the assessment may not cover some subsidiaries included in the financial reporting scope if their business activity or size is deemed insignificant with regard to environmental issues. Conversely, some companies deemed to have a significant impact may be included in the environmental scope but do not appear in the financial reporting scope.

The scope defined for the assessment of GHG emissions covers the following companies: EDF SA, EDF PEI, Dalkia, Edison, Enedis, Électricité de Strasbourg, EDF Energy Services, EDF Energy, Framatome, EDF Renouvelables, Norte Fluminense, Meco, EDF Luminus, EDF Belgium and their subsidiaries. The subsidiaries included under the financial consolidation approach but excluded from this assessment represent less than 5% of the Group's total environmental footprint.

The companies accounted for under the equity method and factored into the assessment (Scope 3, under Investments) are: Shandong Zhonghua, Datang San Men Xia, Fuzhou, Sloe, Alpiq, Nam Theun Enercal, Sanmenxiatt, Électricité de Mayotte and Chacao. Scope 1 and Scope 2 emissions from these companies are calculated based on the Group's financial control approach prorata our share of ownership. Other companies accounted for under the equity method that are excluded from the assessment represent less than 5% of these emissions. Three companies - Chacao, Enercal and Électricité de Mayotte - are not included in the financial scope but, for the sake of completeness, are included in this assessment and accounted for under the equity method.

Breakdown of GHG protocol emissions for EDF group

Scope 1: Direct emissions

• produced by stationary combustion sources:
  • CO₂, CH₄ and N₂O emissions from fossil-fired power plants;
  • consumption of fossil fuels for heating in office buildings;
• produced by mobile combustion sources:
  • fuel consumption by fleet vehicles and worksite equipment;
• fugitive emissions:
  • fugitive emissions from hydro reservoirs;
  • fugitive emissions of SF₆ and coolant leaks.

Scope 2 : Indirect emissions associated with the generation of electricity, heating or cooling consumed for own use

• electricity consumption for own use (office buildings and data centres);
• consumption of heating and cooling systems for own use.

Scope 3 : Indirect emissions from operations not included in Scopes 1 and 2

• purchases of goods and services;
• upstream operations of fuels used in power plants (nuclear and fossil-fired), for heating in office buildings and for fleet vehicles and equipment: extraction, refining, enrichment, transport;
• upstream operations and losses of electricity, heating and cooling systems consumed for own use;
• amortisation of emissions from the production of fixed assets (power plants, electricity networks, buildings, vehicles and equipment);
• generation of electricity purchased for resale to end customers;
• power transmission and distribution (upstream operations and losses);
• upstream activities and combustion of gas purchased for resale to end customers;
• other: waste management, employee work-related travel, leased assets, downstream transportation of by-products, production of consumables.

⁽¹⁾The term "EDF" refers to EDF SA, the parent company. The terms "Group" or "EDF group" refer to EDF and its subsidiaries and shareholdings.
⁽²⁾ See section on Group scope.
⁽³⁾ The Greenhouse Gas Protocol Initiative, more commonly known as the GHG Protocol, is the most internationally recognised GHG accounting method. Introduced in 1998 by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), it was developed in partnership with companies, NGOs and governments. It provides a set of resources, tools and data for carbon footprint calculation (http://www.ghgprotocol.org/).
⁽⁴⁾ Accounting standards applied by the Group, see section 6 of the 2017 Reference Document.

2018 results for greenhouse gas emissions

The Group's direct and indirect emissions for 2018 total about 147 million tonnes of CO₂ equivalent. Two sources of emissions account for more than 65% of the Group's total environmental footprint: direct CO₂ emissions due to electricity and heat generation (most of Scope 1) and indirect GHG emissions associated with the combustion of gas sold to end customers.

EDF group’s direct and indirect CO₂ emissions in 2017⁽¹⁾ and 2018 (in Mt CO₂ eq. )

SCOPE 1

For several years, EDF group has published data on direct CO₂ emissions due to electricity and heat generation, which represent over 98% of all Scope 1 emissions. In 2018, emissions from electricity and heat generation and total Scope 1 emissions were down 30% over the 2017 figure.

Groupe EDF - Scope 1 - Total net direct CO₂ emissions due to electricity and heat generation (en Mt CO₂ eq. )

This significant reduction in emissions stems from the disposal of Polish power plants that emitted high levels of CO₂, but is also due to a considerable drop in emissions from EDF SA's power generation operations. This decrease results from less use of fossil-fired plants in France, a high level of availability for nuclear power, and excellent rainfall. At other Group entities, direct emissions were relatively stable between 2017 and 2018.

It is necessary to underline the high level of variability in annual emissions for EDF group, due to the very low proportion of fossil-fired electricity generation in EDF's total output. Annual variations in temperatures and rainfall, as well as the availability of the nuclear facilities, can have a significant impact on how much use is made of EDF's fossil-fired plants and lead to considerable differences in annual emissions. However, the trend towards lower emissions has been entrenched since 2007, as shown in the following graph.

Change in EDF group’s direct CO₂ emissions in absolute and specific values from 2006 to 2018

SCOPE 2

EDF group - Scope 2 - Indirect CO₂ emissions (in Mt CO₂ eq. )

Scope 2 emissions, which include electricity, heating and cooling purchased for EDF group's own use, are very limited compared with the rest of the assessment. Due to the Group's business activities as an electricity generator, most emissions connected to the Group's own use are reported under Scope 1. Furthermore, following the GHG Protocol's new Scope 2 Guidance, the Group's Scope 2 emissions are calculated based both on the average content of the network and on supplier content. Taking a conservative reporting approach, EDF decided to report Scope 2 emissions based on the average content of the network.

Between 2017 and 2018, the Group's Scope 2 emissions were fairly stable (down 3%). This slight reduction stems from the fall in the electricity emission factor in France.

SCOPE 3

Groupe EDF - Scope 3 - Indirect CO₂ emissions (in Mt CO₂ eq.)

Emissions associated with the combustion of gas sold to end customers account for the largest share of indirect emissions: 54.1 million tonnes of CO₂ equivalent⁽²⁾, representing 49% of the Group's Scope 3 indirect emissions in 2018.

On top of these emissions are emissions from upstream operations of gas sold, estimated at 10.6 million tonnes of CO₂ equivalent. Together, these two sources of emissions total 64.7 million tonnes of CO₂ equivalent, or 58% of indirect emissions.

Indirect emissions associated with the generation of electricity purchased for resale to end customers account for 21.7 million tonnes of CO₂ equivalent, or 20% of the Group's indirect emissions.

Scope 1 and Scope 2 emissions from power plants of companies accounted for under the equity method⁽²⁾ are reported based on the Group's financial control approach prorata to our share ownership.
These emissions are estimated at 9.9 million tonnes of CO₂ equivalent, i.e. about 9% of the Group's indirect emissions (emissions from organisations reported as Investments).

Upstream emissions from fossil and nuclear fuels consumed at the Group's power plants fell considerably (down 21%), accounting for 7.3 million tonnes of CO₂ equivalent, or 7% of Group emissions.

Other sources of emissions account for about 7% of the Group's indirect emissions.

Between 2017 and 2018, the most significant emissions associated with the combustion of gas sold to end customers were stable (up
0.6 million tonnes of CO₂ equivalent, a 0.6% increase). This was due to two factors that offset each other: sales increased by 8.3%, while the emission factor of gas combustion fell by 9.1%. The increase in sales came mainly from the United States.

Indirect emissions associated with electricity purchased for resale to end customers increased by 2.6 million tonnes of CO₂ equivalent, i.e. 14%.

Lastly, emissions from companies accounted for under the equity method increased slightly, by 5%.

EDF has therefore been able to present an exhaustive Scope 3 analysis, and is pursuing its efforts to provide an ever more accurate and exhaustive analysis of its indirect emissions.

Details on methodology

The reporting period for the data taken into account is from 1 January of year Y to 31 December of year Y.
Unless otherwise indicated, the emission factors used are from the Base Carbone®, a database of emission factors administered by France's environment and energy management agency (Ademe), dating from January 2019. The GWP⁽³⁾ data used is that set out in the fifth report of the IPCC⁽⁴⁾.

Details on Scope 1

Direct emissions from fossil-fired power plants (CO₂, CH₄ et N₂O) are measured or calculated based on fuel measurements or standard emission factors, and cover all electricity generation phases, including unit commis-sioning and shutdown phases.

• CO₂ emissions also include emissions from processes, such as flue gas desulphurisation.
• CH₄ and N₂O emissions are then converted into tonnes of CO₂ equivalent.
• Emissions due to fuel consumption by back-up power systems at nuclear power plants are calculated based on amounts of fuels purchased over the year from the Group's main supplier, as they are representative of real consumption.
• Emissions associated with filling hydro reservoirs with water: these CO₂ and CH₄ emissions are calculated using an IPCC method for reservoirs of more than 1 hectare. N₂O emissions cannot be assessed using this method.

Details on Scope 2

In compliance with GHG Protocol Guidance, Scope 2 emissions are calculated based both on the average content of the network and on supplier content. Taking a conservative reporting approach, EDF decided to report Scope 2 emissions based on the average content of the network.

Electricity consumption is converted into emissions (excluding upstream operations and network losses), all uses combined, by applying the emission factor of the average mix recommended by Ademe for the first case, and the content of the company's generation mix for the second calculation method.

These emissions also include generation of electricity consumed in office buildings (heat, cooling, processes, lighting, IT systems, various equip-ment, etc.) and in the two main data centres.

Emissions from electricity use in office buildings are calculated by taking the average electricity use per unit of surface area from a representative sample of occupied buildings. This average use is then applied to the total surface area of office buildings.

Details on Scope 3

Emissions from upstream activities in the nuclear fuel cycle include pur-chases of nuclear fuel (extraction, enrichment and MOX, transportation), calculated based on the amount of nuclear fuel load over the year. An emission factor from the Ecoinvent 2.2 database is applied for MOX fuel and extraction and enrichment activities.

⁽¹⁾ Scope 3 for 2017 was recalculated to include gas sales to a category of customer that was not taken into account at the time of the previous publication. These sales represent around 12 million tonnes ofCO₂ equivalent. 2017 and 2018 are therefore presented here like for like.
⁽²⁾ See Group perimeter.
⁽³⁾ GWP: Global Warming Potential.
⁽⁴⁾ IPCC: Intergovernmental Panel on Climate Change.

Assessment of EDF greenhouse gas emissions

This assessment covers all of EDF SA's activities, including mainland France as well as Corsica and Overseas France via SEI (island energy systems): Corsica, Reunion Island, French Guiana, Martinique, Guadeloupe, and St Pierre and Miquelon.

Starting with the 2017 report, EDF group chose to base consolidation rules on the financial control approach rather than the operational control approach to be consistent with the consolidation method that applies to the financial statements. However, there is no change to the manner in which buildings and vehicles under leasing contracts are consolidated in anticipation of changes to IFRS in 2019. This change in method has no effect on the assessment of EDF's greenhouse gas emissions.

The analysis focuses on Scopes 1, 2, and 3 of the GHG Protocol⁽¹⁾, cove-ring the seven greenhouse gases listed in the Kyoto Protocol (CO₂, CH₄, N₂O, HFC, PFC, SF₆, NF₃), and ranging from fuel manufacturing to employees' office activities. The data is presented in CO₂ equivalent, with other gases converted based on their global warming potential (GWP).

Emissions checks

The assessment helps improve knowledge of EDF's environmental impacts beyond the direct production of electricity and fine-tunes the action plan for reducing direct and indirect emissions.

EDF has made fighting climate change the main objective of its environmental policy and aims to continue to lower its CO₂ emissions, which are already at a level unequalled by any other major European corporation.

To achieve this objective, EDF zeroes in on the following three levers for action:

• improve the availability of its nuclear power plants;
• upgrade its fossil-fired power plants, thereby reducing its CO₂ emissions per kWh generated, and shut some plants down;
• reinforce its hydropower potential by renovating existing facilities and greatly increase the use of other renewable energies (particularly through the target of 30 GW of solar power by 2030).

EDF is also looking after its indirect emissions. For example, its efforts to reduce emissions connected with business travel include encouraging remote means of communication through an incentive scheme from 2017 to 2019. EDF also helps its customers to reduce their own emissions by offering advice on energy savings and a range of products and services suited to their needs.

Assessment of EDF SA greenhouse gas emissions (in kt CO₂ eq.)

Source: DOAAT – SoDATA EDF.
Overseas France: French administrative departments, regions and communities outside Europe.

Main changes between 2017 and 2018

In 2018, EDF SA's aggregate direct and indirect greenhouse gas emissions fell 13%.

SCOPE 1

In 2018, EDF SA's direct greenhouse gas emissions (Scope 1) fell 26% compared with 2017.

In mainland France, electricity demand for 2018 was slightly lower than in 2017 due to milder temperatures, particularly in January and December. At the same time, the export balance increased by 22 TWh, especially to Germany due to low wind and to CO₂ and coal prices. In Europe, the price of CO₂ rose from €7 per tonne to €24 per tonne, with a 10-year record high of €25.2 per tonne on 10 September.

Against this backdrop, the main features of 2018 output for EDF SA were good nuclear performance (up 3.7%), and improved hydropower output (up 25.4%), especially in the first half. Less use was made of fossil-fired plants than in 2017 (down 30%), which reduced greenhouse gases by 3.2 million tonnes. Total fossil-fired generation accounted for 2.4% of EDF SA's output, with a decrease of 37% in coal-fired electricity generation and of 26% in gas-fired generation, as well as the permanent shutdown of the last fuel oil-fired plants in 2018.

In this assessment, the share of direct emissions from EDF SA's island energy systems also fell, representing a decrease of 6%, or 69 kt, mainly due to adequate rainfall in Corsica and French Guiana.

SCOPE 2

The 19% drop in emissions from EDF SA office buildings is due to a 2% reduction in energy use and to a fall in the average emission factor from French electricity output.

SCOPE 3

Total Scope 3 emissions fell 4%, representing a 580,000-tonne reduction that is mainly due to:

• lower upstream fossil-fuel operations (down 26%) because of lower output (see Scope 1) ;
• lower upstream nuclear fuel operations (down 19%): fuel loading is spread over several years because the fuel can be used over several cycles in a reactor, explaining the fall in emissions even though nuclear output increased.

However, some emissions increased:

• combustion of gas sold to end customers (up 2%);
• decommissioning waste from nuclear power sites (up 10%).

Breakdown of GHG Protocol emissions for EDF

Scope 1: Direct emissions

• produced by stationary combustion sources:
  • CO₂, CH₄ et N₂O emissions from fossil-fired power plants;
  • consumption of fossil fuels for heating in office buildings;
• produced by mobile combustion sources:
  • fuel consumption by fleet vehicles and worksite equipment;
• fugitive emissions:
  • fugitive emissions from hydro reservoirs;
  • fugitive emissions of SF₆ and coolant leaks.

Scope 2 : Indirect emissions associated with the generation of electricity, heating or cooling consumed by EDF for own use

• electricity consumption for own use (office buildings and data centres);
• consumption of heating and cooling systems for own use.

Scope 3 : Indirect emissions from EDF’s emissions that are not included in Scopes 1 and 2

• purchases of goods and services;
• upstream operations of fuels used in power plants (nuclear and fossil-fired), for heating in office buildings and for fleet vehicles and equipment: extraction, refining, enrichment, transport;
• upstream operations and losses of electricity, heating and cooling systems consumed for own use;
• amortisation of emissions from the production of fixed assets (power plants, SEI electricity networks, buildings, vehicles and equipment);
• generation of electricity purchased for resale to end customers;
• power transmission and distribution (upstream operations and losses);
• upstream activities and combustion of gas purchased for resale to end customers;
• other: waste management, employee work-related travel, leased assets, downstream transportation of by-products, production of consumables.

Scope 2 emissions, which include electricity, heating and cooling purchased for EDF's own use, are very limited compared with the rest of the assessment. Due to EDF's electricity generation activities, most of these emissions are reported under Scope 1. As EDF decided to apply the general method recommended by the GHG Protocol for Scope 2 emissions, Scopes 1 and 2 show results that are higher than reality. Furthermore, following the GHG Protocol's new Scope 2 Guidance, EDF's Scope 2 emissions are calculated based both on the average content of the network and on supplier content. Taking a conservative reporting approach, EDF decided to report Scope 2 emissions based on the average content of the network.

⁽¹⁾ The Greenhouse Gas Protocol Initiative, more commonly known as the GHG Protocol, is the most internationally recognised GHG accounting method. Introduced in 1998 by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), it was developed in partnership with companies, NGOs and governments. It provides a set of resources, tools and data for carbon footprint calculation.

Aerosol precursor emissions

Human activities also emit other substances, including aerosols and aero-sol precursors. Aerosol precursors are gaseous substances that, as a result of various physical or chemical reactions, may lead to the formation of aerosols. The values for these emissions are presented in the summary tables of environmental indicators.

Aerosol precursor emissions include:

• sulphur dioxide (SO₂), a combustion pollutant produced by the burning of any product containing sulphur, notably coal and oil;
• to a lesser extent, nitrogen oxides (NOx).

EDF's efforts in this area are in keeping with the limits set out in the EU's National Emission Ceilings Directive (NEC Directive), which established emission ceilings effective from 2010 for the following pollutants in each member state: SO₂, NOx, VOCs (volatile organic compounds) and NH₃ (ammonia). EDF's activities in mainland France, Corsica and overseas France account for less than 2% of the national ceiling for NOx (1.9% or 810 kt) and 1% for SO2 (1.0% or 375 kt).

EDF group – SO₂ emissions from electricity and heat generation (in kt)

The 34% decrease in SO₂ emissions reflects lower fossil-fired production, due partly to the sale of Polish assets but also to a decline observed at all other Group entities except Meco (Vietnam), where SO₂ rose 15% as a result of higher gas-fired production (up 23%).

EDF group – NOx emissions from electricity and heat generation (in kt)

NOx emissions also declined significantly, by 28%, for the same reasons as for SO₂.

Water ressource managment

Water is needed for generating electricity. The force of water is a raw material used to generate hydropower, the Group’s most important renewable energy, with an installed capacity of 23 GW and 301⁽¹⁾ large dams in the world. Water is also needed for cooling fossil-fired plants and for extracting and refining oil and gas products.

Hydroelectricity, i.e. water, also plays an important role in electric systems. Reservoirs and pumped storage power plants are used to store water that can be rapidly transformed into electric energy. Reservoirs are thus a form of large-scale electricity storage (14 GW available in around 10 minutes in France), which is essential for covering peak consumption periods, developing intermittent renewable energies and responding to incidents in order to avoid blackouts.

In France, EDF manages 7.5 billion cubic metres of water stored in its reservoirs, representing around 75% of the country’s artificial water reserves. At Group level, some 50 billion cubic metres of water are drawn for cooling thermal generation plants, with 99% discharged back into the environment almost immediately. EDF, therefore, draws significant amounts of water but consumes very little.

Managing water withdrawal and consumption

The Group is committed to improving its performance in terms of water drawn and consumed for existing power plants, and to more efficient use of water at regional and water basin level. All production sites benefit from a water management plan.

The breakdown of water used in 2018 to cool EDF group's thermal generation plants and by EDF is presented in the following charts and the table of environmental indicators.

Overall, 67% of the water used by the Group for cooling purposes is drawn from the sea or estuaries, where there is no risk of water shortage. These sources account for almost 60% in France, more than 99% in the United Kingdom and almost 93% in Italy.

It should be noted that the amount of fresh water drawn from the ground is minimal, about 0.01% of the fresh water drawn on the surface.

The figure for water drawn is virtually flat (slight decline) compared with previous years, and the amount of fresh water drawn is down by around 4% due mainly to the sharp fall in coal-fired production.

Geographical breakdown of water drawn to cool EDF group thermal generation plants (in %)

The heat sensitivity of fossil-fired power plants is diminishing in France with the closure of old coal- or oil-fired facilities located near rivers. The Aramon power plant, for example, was closed in 2016. New thermal generation facilities are located near the sea (e.g. the Martigues CCGT) or equipped with air cooling systems (Blénod 5 and industrial commissioning of the very high performance Bouchain CCGT), which reduces water dependency. Water evaporated, which is comparable to the consumption of water necessary for cooling certain fossil-fired generation plants (closed circuit), accounts for only 1% of water drawn.

On that basis, almost 99% of all water drawn is returned to the environment. In accordance with local regulations governing discharges, Group companies implement measures to ensure that quality and temperature criteria are met, and they take corrective measures immediately if thresholds are exceeded.

EDF monitors indicator parameters on the quality of terrestrial and aquatic ecosystems around its sites. No major environmental issue involving water occurred in 2018.

Breakdown of type of water drawn by continent (in % and in 10⁹ m³)

The exposure of the Group's generation assets to water stress has been assessed and remains low as its facilities are located mainly in Europe (almost 99% of the total water drawn by the Group, of which over 81% in France and over 18% in the United Kingdom) and the majority of its nuclear and thermal generation plants are located near the sea.

Cooling water evaporated

The specific consumption of water evaporated per kilowatt hour of electricity generated by the Group's fossil-fired, gas-fired and nuclear power plants came to 0.97 l/kWh, compared with 1.03 l/kWh in 2017 and 2016. These values are lower than the averages for the sector published in specialist literature because open circuits and salt water are used for certain plants, 1.8 l/kWh to 2.8 l/kWh according to the International Atomic Energy Agency⁽²⁾. Accounting for energy produced by renewables, which do not use water, specific consumption is even lower, at 0.86 l/kWh in 2018. Based on the planned changes to generation facilities, freshwater drawn and used at Group level is expected to fall in coming years.

Specific consumption (in l/kWh)

⁽¹⁾ Number of large dams in gross data (270 dams net), regardless of EDF group's equity interest in these dams, and based on the French classiÞ cation system (Decree no. 2015-526) relating to class A and B dams (over 10 metres high).
⁽²⁾ Efficient water management in water cooled reactors, International Atomic Energy Agency, 2012.

Biodiversity

The Group has been actively involved in addressing biodiversity issues for decades as most of its industrial facilities are located in or near protected sites. In 2016, the Group made protecting biodiversity one of its Corporate Social Responsibility Goals with a view to achieving its long-term strategy. CSRG 6, which covers the Group scope, concerns the life cycle of facilities, from project design to construction and operation, through to the end of their useful life. It extends to the entire value chain. This illustrates the Group's determination to develop a positive approach to biodiversity by improving its practices and endeavouring to avoid causing irreversible harm to the environment, going beyond an approach that focuses solely on reducing the impacts of its industrial activities on ecosystems.

The CSRG works towards Sustainable Development Goals 14 (conservation of life below water) and 15 (protection of life on land) set by the United Nations in 2015. In 2018, the Group's commitment in the Act4nature initiative sets out how it will be deployed and breaks it down into five major objectives: get all Group business activities involved, understand biodiversity issues and implement concrete actions, innovate for biodiversity, enter into an open, participative process, and contribute to public policy.

The Group applies the principles of the mitigation hierarchy⁽¹⁾ or the specific regulations of the country in which it is operating, which may set even higher standards, particularly in Europe. In France, for example, Group companies apply the avoid-reduce-offset principle to all projects and existing facilities, which aims to avoid a net loss, and, preferably, even make a net gain in biodiversity, in line with article 69 of France's Biodiversity Act. The Group's practices have been compared with the international recommendations promoted by the BBOP⁽²⁾. Meanwhile, in the United Kingdom, EDF Energy targets a net positive impact before 2030.

Environmental issues, including biodiversity, are taken into account right from the design stage of a project to operation with a view to avoiding or reducing its impact. EDF seeks to reduce the land take to a minimum for all new projects. For deconstruction and dismantling projects, it aims to restore the natural environment. Biodiversity programmes are also implemented for facilities in operation. Their environmental and biodiversity impacts are monitored by public bodies (such as, in France, Ifremer, IRSN, Irstea, AFB/Onema). The results are reported and publicly available.

The avoid-reduce-offset sequence or hierarchy is the basis for regulations in France and the rest of Europe to limit the impacts of projects and programmes on the environment. By following this sequence, EDF:

• avoids impacts by taking account of biodiversity as early as possible in project design and by carefully choosing the site;
• reduces impacts (if they cannot be avoided) by adjusting the works schedule, for example;
• as a last resort, it offsets significant impacts (which could not be avoided or reduced) by aiming for "no net loss" (totally offsetting losses) or even a net gain in biodiversity, ultimately achieving a positive impact. Offset measures are monitored over time.

Number of Red List species in municipalities where EDF sites are located (G₄ EN₁₄)
Data collected in 2018

CR : critically endangered; EN : endangered; VU : vulnerable.

The Group aims to pay particular attention to sites presenting the strongest issues in terms of biodiversity, in particular:

• sites located in or near protected areas and areas of high biodiversity value (indicator G₄ EN₁₁) ;
• sites located near a Red List species (indicator G₄ EN₁₄).

Number of sites located in or near protected areas (G₄ – EN₁₁)⁽³⁾

⁽¹⁾ IFC's PS6 principle: performance standard 6 of the International Finance Corporation (a World Bank entity) framework focused on biodiversity and the sustainable management of living natural resources.
⁽²⁾ Business and Biodiversity Programme is an initiative that ran from 2004 to 2018. It promotes the use of best standardised practices through a network of experts and publications.
⁽³⁾ Disclosure 304-1: protected zones selected are national or under international conventions/agreements.
^(a) International Ramsar Site, Wetland of International Importance.
^(b) International UNESO-MAB biosphere Reserve.
^(c) List of sites of exceptional interest to the common heritage of humankind (updated each year by UNESCO).

Conventional industrial waste

Conventional waste includes all waste produced by site development, operation and service activities and discharged over the year to an outside treatment facility. It does not include radioactive waste, which is reported separately, as it is subject to special regulations and treatment processes. Coal ash and gypsum from processes are also reported separately, given the amounts produced and their recycling potential (mainly in cement manufacturing). This category only covers waste discharged by sites and does not include waste that remains stored at the site pending discharge or any substances reused on site (e.g. soil and construction debris), or equipment that is reused (sold or donated). Waste from construction and decommissioning is included in the reporting if EDF group is responsible for managing it, but not if waste management comes under the responsi-bility of service providers.

Recycling rate for conventional waste

The indicator "Conventional waste" includes two types of waste:

• hazardous waste, defined by regulations as being explosive/combustible/flammable, irritant/harmful/toxic, carcinogenic, corrosive, infectious, reprotoxic/mutagenic, ecotoxic;
• non-hazardous waste, which refers to inert waste and non-hazardous industrial waste (with collection and treatment processes similar to household waste).

Waste is recycled in two different ways:

• materials recovery: scrap iron and other metals, gravel and other aggregates;
• energy recovery: incineration of waste to produce energy (electricity or steam).

Amounts of waste and recycling for 2016 to 2018 are presented in the table of environmental indicators. The overall amount of waste for the Group fell 22%, with a 12% increase in hazardous waste and a 25% decrease in non-hazardous waste.

Recycling rate for conventional waste (in %)

The sharp decrease in conventional waste in 2018 is due mainly to non-hazardous waste produced by projects finalised in France in 2017: reinforcement of safety standards in nuclear power plants by the ASN; refurbishment of the Group's Property Division assets. Of subsidiaries in France, Dalkia posted a 22% increase in waste due to higher digestate production in biogas plants.

Elsewhere, Edison recorded a 65% decrease following the end of works to repair the damage caused by flooding in a hydro plant, the works having generated a high amount of waste in 2017.

Fluctuations in tonnage from one year to the next are significantly impac-ted by investments and decommissioning programmes under way. The Group's objective is to manage the end of the life cycle of its facilities efficiently and ensure that waste is recycled properly, rather than set any specific target as to the volume of waste produced.

Hazardous waste is harder to recycle. The Group therefore strives to reduce the amount of this type of waste it produces through concrete action to mitigate the characteristics that make it hazardous, for example by minimising the use of chemical products or by separating out the dangerous substances from concrete left over after building demolition to ensure a maximum amount of materials can be reused. EDF has also set up a project to encourage reuse throughout the Group and its subsidiaries. The target for total savings over a three-year period (2018-2020) has been set at €100 million. By the end of 2018, €15 million had been saved.

EDF's sustainable development policy set a target to recycle 90% of all waste from across the Group by 2021. The recycling rate for all conventional waste (excluding fly ash and gypsum, which are fully recycled) rose from 85% to 87.1%.

Waste associated with oil and gas activities

Waste generated by oil and gas activities includes:

• residual sludge from drilling operations;
• aqueous solution produced by drilling operations.

Relative to other Group activities, gas activities generate very little waste apart from residual water from gas extraction, which is classified as non-hazardous waste.

At the San Giorgio Mare operations site, and in line with Italian regulations, residue is treated on site at the Santa Maria a Mare field. Under applicable guidelines, this waste would not be reported. However, this waste is included here as non-hazardous conventional waste to remain consistent with figures reported by Edison. For information purposes, these amounts were 14,169 t in 2015, 12,378 t in 2016, 10,979 t in 2017 and 3,204 t in 2018.

Amounts of waste for 2016 to 2018 are presented in the table of environmental indicators. The total amount of waste fell 56% between 2017 and 2018, driven by the reduction in extraction activity at Santa Maria a Mare (down 71%). Excluding the Santa Maria à Mare figure, non-hazardous waste increased 83%. This in turn impacted recycled waste, which increased 10% (amount varying depending on the nature of hazardous and non-hazardous waste that could be recycled).

Radioactive waste

Radioactive waste is classified into different categories in accordance with regulations in specific countries depending on its nature, level of radioactivity and the lifespan of the radionuclides it contains.

The Group operates nuclear power plants in four countries: France, the United Kingdom, the United States and, more recently, China. Radioactive waste indicators for 2016 to 2018 are presented by country in the table of environmental indicators. China is not shown as commercial activity started there in 2018 and did not therefore produce any waste.

France

Radioactive waste is classified into four categories (VLLW, LLW, ILW and HLW) and is said to be "long-lived" if it has a half-life greater than 31 years.

United Kingdom

Radioactive waste is classified as high-, intermediate- or low-level waste (HLW, ILW and LLW respectively) with each type processed differently.

United States

The radioactive waste indicators of Constellation Energy Nuclear Group (CENG) are given in a separate table and are based on regulations applied in the United States. CENG is 49.99% owned by the Group.

◙  2018 indicator audited for limited assurance by KPMG SA.
* Further information on this nuclear waste from decommissioning: the total projected amount of nuclear waste from decommissioning (VLLW + LILW) for 2018 was 3,100 m³ (the actual figure in 2018 was 3,061 m³). The total projected amount for 2019 is 1,200 m³ for VLLW and 900 m³ for LILW. Year-on-year changes are due to the different decommissioning phases.
⁽¹⁾ The methodology for nuclear waste from decommissioning and operations was updated in 2016 (see section 3.9.2.2 "Methodology for social and environmental data").
⁽²⁾ In 2018, the methodology for waste from decommissioning and industrial operations was updated as part of the consolidation of Framatome. Framatome accounted for 1,383 m³ of Very low-level radioactive waste (VLLW) from decommissioning and industrial operations in 2018.

Radioactive emissions

Nuclear power plants do not produce any direct CO₂, SO₂ or NOx emissions. However, they do release radioactive effluents into the air and water.

For EDF in France, the environmental control systems monitoring radioactive emissions on a regular basis involve between 5,000 and 20,000 annual measurements for each nuclear power plant. Measurements are made in the terrestrial ecosystem and in the ambient air, as well as in surface and ground water receiving liquid effluents.
This monitoring programme meets regulatory requirements and is subject to the prior approval of the ASN. In order to become a member of the French national network of environmental radioactivity measurement (RNM) set up by the Institut de Radioprotection et de Sûreté Nucléaire (IRSN), France's national institute for radiation protection and nuclear safety, EDF requested accreditation for its laboratories. This was obtained by decision of the ASN in June 2009. To further minimise its environmental impact, EDF has put in place an active approach to treating its radioactive effluents to continue reducing them down as low as reasonably achievable.

EDF group has been obtaining results for liquid effluent emissions from its nuclear power plants that have remained well below regulatory limits for over 15 years.

Liquid effluent and atmospheric emissions of Carbon-14 and Tritium⁽¹⁾ are monitored for emitting companies. Indicators for radioactive emissions for 2016 to 2018 are presented by country in the table of environmental indicators.

The radioactivity of a substance is measured in becquerels (Bq, the SI unit of radioactivity). This unit represents levels that are so low that multiples are normally used: GBq (gigabecquerels) or TBq (terabecquerels).

◙  2018 indicator audited for limited assurance by KPMG SA.
⁽¹⁾ Tritium, a hydrogen isotope, has a low level of radioactivity and is produced in the primary circuit coolant of nuclear reactors. It exists naturally in small doses in seawater and rainwater.
⁽²⁾ The nuclear waste methodology was updated in 2017 (see section 3.9.2.2 "Methodology for social and environmental data").
⁽³⁾ Boiling water reactor: power reactors used in some American power plants.
⁽⁴⁾ Pressurised water reactor: the most commonly used nuclear reactors worldwide.
* The values calculated using the new methodology are shown in brackets.

Environmental protection expenditure

Environmental protection expenditure is the additional identifiable expenditure aimed at preventing, reducing or repairing the potential or effective damage caused by the company's activities. This definition is based on the recommendation issued by the Conseil National de la Comptabilité (the French national accounting council) on 21 October 2003, which, in turn, is based on the European recommendation of 30 May 2001.

1. Protection of ambient air
2. Limiting of greenhouse gas emissions
3. Wastewater management
4. Waste management
5. Protection and decontamination of soil, groundwater and surface water
6. Noise and vibration abatement
7. Protection of biodiversity and the natural environment
8. Radiation protection
9. Research & Development
10. Demand-side management
11. Other environmental protection activities

Environmental protection expenditure is distributed across the 11 budget areas of the Eurostat classification (the European Commission's Directorate General for the Environment):

These indicators can show significant fluctuations from year to year, depending on the Group's commitments on projects, investments and studies in progress.

⁽¹⁾ GRI - Global Reporting Initiative, version G4
⁽²⁾ Excluding legal fees for final court decisions.
⁽³⁾ Including companies covered by the Group's ISO 14001 certification and excluding companies managed independently.