Carbon neutrality by 2050
In early 2018, EDF Group made the commitment to reduce its direct CO2 emissions* by 40% compared with 2017, aiming to bring them down from 51 million tonnes to 30 million tonnes by 2030.
At the beginning of 2020, the Group committed to achieve carbon neutrality by 2050. He joined the “Business Ambition for 1.5°C: our only future” initiative, currently comprising more than 300 other companies that have undertaken to be CO2 neutral by 2050, in order to help limit the increase in global temperature to 1.5 °C compared with the pre-industrial period.
Also, as regards Executives in France (EDF SA), a new criteria for their variable remuneration has been introduced in 2020 which is linked to carbon intensity and more precisely specific CO2 direct emissions from electricity and heat generation (gCO2/kWh)(2). It is based on group CO2 reduction net zero 2030 trajectory. Moreover, as regards to managers in generation business units in France (EDF SA) and the United Kingdom (EDF in the UK), 10% of the variable part of their remuneration (which represents up to 40% of their salary) is indexed to the availability of the nuclear fleet, and therefore to the carbon content of the electricity produced, which does not generate direct CO2 emissions.
On December 2020, the EDF Group's reinforced downward trajectory of CO2 emissions has been validated by Science Based Targets(1) as being aligned with a well-below 2°C pathway, whilst also establishing a dedicated climate-related governance (two Climate point persons from within its Executive Committee and Board of Directors), aligned with best practices recommended by the Taskforce on Climate-Related Financial Disclosure (TCFD).The CO2 emission reduction targets that the EDF Group set itself in early 2020, covering both its direct emissions (scope 1) and indirect emissions (scope 2 and 3), were validated by Science Based Targets as being aligned with a “Well Below 2°C” trajectory in accordance with their specifically developed methodology for the electricity sector.
For the EDF Group, it involves:
- reducing its direct and indirect CO2 emissions (scope 1 and 2) by 50% (2017 basis), including emissions from non-consolidated generation assets and emissions associated with electricity purchased for sale to end customers;
- reducing its CO2 emissions associated with the burning of gas sold to end customers (scope 3) by 28% (2019 basis).
This trajectory represents an absolute reduction of direct greenhouse-gas emissions amounting to 25 Mt CO2 by 2030, equivalent to a carbon intensity of approximately 35 g CO2/kWh in 2030.
* Direct emissions excluding the life cycle analysis of generating plant and fuel.
(1) The SBTi promotes a methodology to assess and track the reduction of greenhouse gas emissions, in line with the objectives of the Paris Agreement.
(2) The Group specific CO2 direct emissions was 55g/kWh in 2019 and our target is 35 g/kwh by 2030