EDF Energy Annual Sustainability Report 2013 Driving Progress for People Our 2013 highlights At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary > HIghlights CHALLENGES performance In 2013 we continued to make progress on our journey to be a successful and responsible long-term energy business as part of the EDF family.

We reached a record number of We achieved very strong We were named as Energy household customer accounts, safety performance with Provider of the Year at with more than two million accounts a 47% reduction in the total The Pod, our award-winning sustainable schools the Consumer Moneyfacts actively switching to our low-carbon, recordable incident rate programme, reached over 50% of UK schools with Awards 2014. These used nuclear-backed product, Blue. compared to 2012. free resources to educate and engage on energy, science feedback from 90,000 and sustainability. consumer surveys to review our customer service and products in 2013. Cheapest major dual fuel Our nuclear power stations produced 60.5 TWh of low-carbon electricity, our supplier in 2013 for 49 out of We signed an innovative 52 weeks, at typical consumption. best performance in eight years - enough to power around 50% of UK homes. 10-year framework agreement with Network Rail to provide low-carbon In line with our commitment to be open and We completed construction electricity to power the UK transparent across our nuclear business we opened of our offshore wind farm at rail network. the remainder of our visitor centres at all of Teesside – this is EDF Energy our nuclear power stations. These allow visitors Renewables’ first UK to learn about nuclear power, electricity generation offshore wind farm. We launched a three-year partnership with Marie Curie Cancer and our operations through films, interactive displays Care and our employees raised over £100,000 six months ahead and tours. Our Torness and Hunterston visitor of schedule – with match funding from EDF Energy that’s enough to centres even received five star ratings from fund over 1,100 full nine-hour nursing shifts. Visit Scotland.

We launched a new version of ‘Our Compelling Story’, a highly innovative way to bring our story and strategy as a sustainable and responsible energy company to life for all of our people. We created the EDF Energy Better Energy Ambitions – these are our plan for a sustainable business. We achieved a milestone We scored 95% in the Business in the They put sustainable and We completed the commercial operation of our in our nuclear new build Community Corporate Responsibility responsible business at the heart West Burton B Combined Cycle Gas Turbine plant programme, agreeing the Index. Our approach to sustainability was of our approach so we benefit in Nottinghamshire – this will produce enough commercial terms of our awarded a ‘Platinum Big Tick’, the highest our customers, our people, our power to keep the lights on for 1.5 million homes while investment contract with possible standard, and it placed us best in business and the world around us. we expand our low-carbon and renewable energy the UK Government. our sector. That’s something that we think production for the future. everyone can feel better about.

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 3 Some of our 2013 challenges At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary HIghlights > CHALLENGES performance At EDF Energy, we are working hard to be a better kind of energy company. That means we need to be honest about our challenges and about where we can improve what we do or how we operate.

We need to do more to improve customer service and reduce complaints. Trust in business, and in energy companies in particular, has fallen. The Customers section of this reports highlights some of the achievements we have made on For the energy sector, there is deeper scrutiny because of mistrust of our actions improving the services we offer and reducing complaints. We have made good progress and and our motives. For us, that means openness, honesty and transparency are even are top in our sector in some customer satisfaction measures. However, satisfaction scores for more important to how we run our business. It also means we need to make the sector as a whole are very low so we need to maintain our focus on better service and promises clearly and make sure we deliver on these. Our Better Energy Ambitions simplicity as well as ensuring fair value for all of our customers. make this a key theme for us and our report shares what we are doing in more detail - find out more in the Finance and Ethics section of this report. We achieved a milestone The safety and security of our power in our nuclear new build generation sites is our top priority but not programme when we agreed everyone agrees with how we need to generate the commercial terms of our Rising costs affect everyone – so we have a the energy that society needs. This issue came investment contract with the Our regulator, Ofgem, recently responsibility to do everything we can to keep to the fore in October 2012 when climate change UK Government, but there announced a proposal to our costs down and ensure fair value across our protesters from the ‘No Dash For Gas’ environmental is still more to do. We must refer the energy industry to services. The energy bill for a typical family has doubled group entered our new Combined Cycle Gas now complete the process of the new Competition and to around £1,300 over the last ten years. EDF Energy Turbine power station at West Burton. Our decision securing State Aid approval from Markets Authority. Although not has consistently championed the consumer – we were to launch a civil claim for damages of £5 million the European Commission for our welcomed by everyone, EDF Energy the cheapest major dual fuel supplier for 49 out of caused considerable outcry from environmental proposed Hinkley Point C station. CEO Vincent de Rivaz first called 52 weeks in 2013 at typical consumption, and offer campaigners, the public, customers and some of our We also need to finalise funding for an independent competition industry-leading tariffs that freeze prices with no exit key stakeholders. We know that we need to be better for the project – that includes inquiry in to the energy market in fees. We tell our customers when and where they could and more consistent at responding to events like this, finalising the agreements with our September 2011. We should expect save more than £1 per week at typical consumption, and in engaging our wider stakeholders on what we partners announced in October that the assessment will have some even if it’s with a competitor. However, there is no room do and how we operate. Find out more in the Civil 2013 and with further equity critical comments to make about for complacency on cost. Reducing our own costs and Society Dialogue section of this report. partners. We will report more the energy market. We also know challenging those of the sector must remain a priority on progress throughout 2014. that an inquiry won’t restore trust for us and we must continue to ensure we deliver fair by itself. However, it will be an value for our customers. Find out more in the Customer important opportunity to show section of this report. that we have nothing to hide and The evidence for the human impact on climate change is overwhelming to prove to our customers that we but tackling this is not a simple journey. As it always has, the carbon have their best interests at heart, so intensity of our energy generation will fluctuate each year as a result of annual that we can earn and retain their energy demand and the availability and affordability of different types of trust. We will report news on our generation in the short term. This will continue until new low-carbon and website as the inquiry progresses. renewable generation comes online and at scale. It is why investment in low-carbon and renewable technology and infrastructure must be a priority for the UK. As the largest producer of low-carbon power in the UK, and with ambitious goals to cut emissions even further, we are uniquely placed to play a key role in this challenge but a strong investment framework and long-term vision for the UK is needed. Find out more in this report.

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 5 Our performance in 2013 At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary HIghlights CHALLENGES At a glance > performance

To achieve Zero Harm to people To power society without costing the Earth

Measure Unit 2013 2012 2011 2010 Measure Units 2013 2012 2011 2010

Total Recordable Incidents per 0.84 1.58 1.78 n/a Carbon dioxide Tonnes per gigawatt 256.0 251.7 208.1 219.5 Incident Rate (TRIR) 1,000,000 hours (CO2) intensity from hour (GWh) (employees and worked generation

contractors) 1 Total carbon footprint CO2e in million tonnes 22 21 15 14 Lost Time Incident Rate Incidents per 0.47 0.62 0.61 1.12 Nitrogen oxides(NOX) Tonnes 38,905 38,696 29,084 27,255 (LTIs) (employees and 1,000,000 hours emissions contractors) worked Sulphur dioxide (SO2) Tonnes 15,831 14,884 12,707 13,580 Primarily work-related Incidents per 4.86 5.83 5.01 4.08 emissions ill health (employees) 1,000,000 hours worked Total net generation Terawatt hours (TWh) 85.4 83.1 72.4 63.7 Number of days lost to Days 135,634 140,953 124,013 119,884 CO2 from commercial Kilotonnes 19.8 21.8 22.5 31.1 sickness (employees) buildings

CO2 from commercial Tonnes/FTE 1.37 1.50 1.51 1.61 building To be the best and most trusted for customers CO2 from transport Kilotonnes 10.6 10.6 11.1 23.6

CO2 from transport Kilotonnes/FTE 0.73 0.73 0.75 1.22 Measure Unit 2013 2012 2011 2010 CO2 tonnes abated CO2 million tonnes 1.88 0.98 0.80 0.70 Customer product Millions of accounts 6.0 5.8 5.8 5.5 from customer energy avoided accounts consumption Electricity priority Numbers of customers 264,550 246,988 226,596 236,912 Paper waste from Tonnes of paper 2062 199 294 416 service customers energy billing Gas priority service Numbers of customers 140,891 127,354 115,466 95,590 Building waste recycled % of waste recycled 94% 88 87 82 customers Children engaged by Cumulative number of 10,000,000 9,331,834 5,811,217 3,115,451 Number of customers Numbers of customers 109,908 124,905 n/a n/a our sustainable schools children engaged since referred to Energy programme, The Pod programme launched Companies Obligation in September 2008

(ECO) 1 This calculation includes CO2, N2O, CH4, SF6, On site fleet/mobile plant, Generators, CO2 in AGR blow down. Number of smart Number of meters 16,934 5,911 n/a n/a The increase in our total carbon footprint is due to increased output across all types of generation. 2 meters installed electricity electricity Paper waste has increased due to higher numbers of customer accounts and a new requirement to add a Giro Slip on bills.

2,054 gas 252 gas Number of customers Number of proactive 1,056,766 46,043 n/a n/a proactively provided contacts (including with information letters, text messages, on how they can emails, outbound calls) reduce their energy consumption Warm Home Discount Number of eligible 200,000* 117,000 n/a n/a scheme customers

* Warm Home Discount Scheme relates to the year ending 31st March 2014.

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 7 Our performance in 2013 At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary HIghlights CHALLENGES At a glance continued > performance

To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance

Measure Units 2013 2012 2011 2010 Measure Unit 2013 2012 2011 2010

Unplanned automatic Number of unplanned 0.45 0.64 0.74 0.58 Sales £m 8,311 7,908 7,465 9,145 trip rate automatic trips Earnings Before £m 1,689 1,666 1,664 2,339 per 7,000 hours of Interest, Tax, operation Depreciation and Number of nuclear Number of events 10 15 19 13 Amortisation (EBITDA) safety events rated Level 1 (lowest) on the International Nuclear To empower our people to be a force for good Event Scale (INES) Number of nuclear Number of events 0 0 0 0 Measure Unit 2013 2012 2011 2010 safety events rated Level 2 or above on the Employee High % positive score 68 63 61 68 International Nuclear Performance Index Event Scale (INES) Number of employees Number of people 15,162 15,153 15,536 15,441 Nuclear reportable Number of events 0 3 7 9 Number of leavers Number of people 1,321 1,624 1,589 1,307 events

Three-year average man-Sieverts 0.076 0.069 0.089 0.109 Number of working Hours 25,492,346 25,309,116 25,685,663 27,115,624 collective radiation dose (man-Sv) reactor hours Company maximum milliSiverts (mSv) 4.622 8.179 7.621 4.338 Number of female Number 4,927 4,886 4,991 4,739 individual radiation employees dose Radiation dose to the mSv 0.006 0.006 0.006 0.007 most exposed member of the public Uranium sent off-site Tonnes 177 216 211 132 Spent fuel stored in Tonnes (of heavy 540 481 507 512 cooling ponds on site metals) Amount of Cubic metres 178 161 161 162 Intermediate Level Waste (ILW) generated Disposal of Low Level Cubic metres 655 694 608 498 Waste (LLW) or waste that will be disposed of as LLW after treatment

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 9 Chief Executive’s 2013 summary At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary > CHief executive’s 2013 summary Stakeholder Advisory Panel Statement

Delivering sustainable energy to customers at an affordable price is a priority at the heart “... powering a thriving society of our business. and a healthy environment.” Our commitment to sustainability is stronger than ever and it reached new levels in 2013. We refreshed our Rebuilding trust and bearing down Mission and Ambitions to make clear that sustainability on costs is at the heart of our business. This report demonstrates our progress during 2013 and our plans for 2014 The importance of rebuilding trust with customers and beyond. became even more important last year. After maintaining our standard variable prices throughout Our new Mission and Ambitions the year, we took the difficult decision to increase them from 3rd January 2014. However we knew that rising During 2013 we developed our new Mission: costs were hurting customers, and we knew that doing Driving progress for people – a successful and nothing was not an option. So we held back the full responsible long-term energy business, trusted by impact of rising costs: our increase was less than half customers and powering a thriving society and a the size of those that had been announced by some healthy environment. This mission is summed up of our competitors. by our new Ambitions: We were the first company to take action. We did –– to achieve Zero Harm to people so because we were confident that, working with –– to be the best and most trusted for customers the industry, the Government would find ways to bear down on costs. We chose to pass on the benefit of –– to deliver safe, secure and responsible nuclear electricity that in anticipation of the decision we were expecting –– to achieve strong financial and ethical performance from the Government. After our move, the Government announced changes to the roll-out of various schemes –– to power society without costing the Earth to reduce their cost for customers. As a result our main –– to empower our people to be a ‘force for good’ competitors have followed our lead. Our new Mission and Ambitions have sustainability We have embarked on our programme to deliver at their heart. They are at the forefront of our minds smart meters. The benefits to customers of smart throughout the year. meters are clear: real-time energy use will be recorded allowing customers to see exactly how much energy Our first priority is to deliver Zero Harm, and we have they are using, ending the need for estimated bills. seen a 47% improvement in the Total Recordable It is another way we are working to rebuild trust Incident Rate, which at 0.84 for the whole year is very with customers. We are building our smart metering strong. The Lost Time Incident rate of 0.47 is sector team in preparation for the full rollout. This includes leading. Safety is an area in which we must constantly a new smart meter apprenticeship scheme to train strive for improvement towards Zero Harm. We did up the people we will need to deliver this ambitious experience a very serious incident at Cottam last year, programme. We are committed to making this which is a reminder that we have to relentlessly manage beneficial programme as cost-effective as possible, the hazards we face. We all need to continually challenge and this will always be a priority. ourselves, and each other, to put Zero Harm at the heart of everything we do. Into 2014, the new structure of our company demonstrates our commitment to stand on the side In our retail business, our objective for 2013 was to of customers. We have simplified our business around be the best and most trusted at helping customers, to the fundamental role that we play: generating electricity, enable us to grow. During 2013, we added 255,000 supplying electricity and gas to customers, and customer accounts and reached a record high of 5.71 delivering nuclear new build for the future. million residential customer accounts. At the heart of our growth are our nuclear-backed Blue products and we now have over two million Blue customer accounts.

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 11 Chief Executive’s 2013 summary At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary > CHief executive’s 2013 summary Stakeholder Advisory Panel Statement

NUCLEAR NEW BUILD - low-carbon 2013 in spite of a major outage programme was a Our wider generation portfolio continued to expand with EDF Group, and our external partners—local generation FOR THE FUTURE real test. So it is with great pleasure that I can say we during 2013. We addressed some significant engineering communities and customers. delivered 60.5 TWh in 2013. challenges to complete construction of our new Delivering a new generation of nuclear power stations During 2013, our Campus Network of training and 1305MW Combined Cycle Gas Turbine power station at will be vital if the UK is to meet its legally binding climate The ongoing improvement in generation performance meeting facilities around the UK continued to develop, West Burton B, and transferred it from commissioning targets. New nuclear is the most affordable of all the is matched by ongoing improvement in safety. The and we are now set to launch the MyCampus virtual into full commercial operation. low carbon options and we are leading the UK’s nuclear magnitude of the change since 2009 is impressive. hub in July 2014. This will enable individuals to reach renaissance through our project at Hinkley Point C. One key measure is nuclear reportable events, which Inspiring our people and educating out and make connections across, and outside the have seen a fall of over 75% over that time. There have business to other people and organisations with shared 2013 was a milestone year for this project. We saw been no events at all across the fleet for more than a the next generation aims. The physical hub for Campus, Cannington Court planning permission granted in March, confirmation year. A targeted effort on improving industrial safety There is a critical need for more STEM skills to help in Somerset, is also progressing, and this will open later that the project would be eligible for the UK in the same period has seen dramatic improvements support the transition to a low-carbon economy. 2013 this year. This will be a unique training, meeting and Infrastructure Guarantee scheme, agreements made in worker safety; with the average number of lost time saw more progress in our attempts to inspire and train collaboration centre; not only for EDF Energy but also with the four main contractors, and partnership incidents down by 65%. the next generation of engineers. The total number of for our supply chain, schools, universities, academics, agreements with trade unions. schools registered to the Pod, EDF Energy’s sustainable and the wider community. As we look ahead to 2014, we continue our work on On 21st October, we had the landmark announcement schools programme, is now over 18,000, with almost nuclear plant life extensions. The next station being Our team of Company Makers—inspired by the of our agreement with the UK Government on the 27,500 individual users (typically teachers) signed up considered for further life extension is Dungeness B. success of the Games Makers during the London commercial terms of the investment contract for the and nearly 52,000 resources downloaded since August We have been working hard on this and expect to Olympic Games—continued to make an important project. This momentous day was marked by a visit to 2013. More than 10 million children have been engaged make a final decision on life extension for Dungeness contribution during 2013. The team of over 300 were our Hinkley Point site by Prime Minister David Cameron, through the programme, and over 50 per cent of UK by the end of 2014. Our life extension programme will involved in a wide range of exciting activities, which Energy Secretary Ed Davey, and EDF Group Chairman schools are registered. ensure the existing nuclear plants continue to generate had our new mission and ambitions at their heart. The and CEO Henri Proglio. the low carbon electricity the UK needs for as long as This effort to engage young people is supported by programme is a unique opportunity for employees to The end of 2013 saw Royal Assent of the Energy Bill. practical. It used to be the case that most of the existing more than 260 of our trained STEM ambassadors. gain knowledge, develop new skills and increase their This legislation is key to delivering Electricity Market nuclear stations were expected to close by 2023. In They go into schools and mentor teams of children in profile across the company. Reform, including the Contract for Difference that fact, through the investments made in the life extension exciting projects, with the aim of stimulating interest The work we have done already was recognised in underpins the investment contract for Hinkley Point C. programme most will now operate beyond that date. and highlighting the opportunities for young people in the Business in the Community Corporate Responsibility It will also help drive investment across all forms of science, technology and engineering. We have continued to deliver on the commitments we Index, when we were awarded ‘Platinum Big Tick’ low-carbon technology, so is therefore an important made following the events at Fukushima in 2011. In We have also opened up a new way to inspire people status for our approach to sustainability. With an tool in our efforts to decarbonise the UK’s power sector. December 2013 I opened our new Emergency Response to learn about climate change through our collaboration overall score of 95%, we were best in our sector. OUR EXISTING POWER GENERATION Centre at Sizewell which is designed to provide further, with the Met Office and the University of Exeter. We This is an endorsement of our long-term approach robust back-up for our safety systems. It is another have launched a new website to educate and engage to being a responsible and sustainable business. It For our existing power generation business, the first key milestone of our £180 million safety and resilience called ‘Climate and Us’. The site aims to encourage recognises a huge amount of hard work by people objective of 2013 was to achieve an output consistent programme, which was completed in March this year. people to think about what climate change means to right across our company and in the community. We with 2012 for our nuclear plants, even in spite of us now and what it will mean in the future - to the way were also further awarded six ‘Big Ticks’ in the BITC During 2013 we opened our final three visitor centres: additional planned work, and greater output than we live, work, and go about our everyday lives. In the Responsible Business Awards. Dungeness in February, Heysham in June, and our final in 2012 from our coal plants. initial phase, the site will act as a hub for climate change centre at Hartlepool in November. The visitor centres These actions show that sustainability is at the heart information (largely with a UK focus), from a wide range This was an extremely stretching target. Since are about the transparency and openness of our of our outlook, our strategy, and our leadership. Our of respected organisations and individuals. The Met EDF Energy’s acquisition of British Energy (Nuclear nuclear operations. They promote two-way dialogue, intent is to build on the progress made in 2013, learn Office brings its world-leading authority on weather Generation) in 2009, we have invested significantly and connecting EDF Energy with the public. They have been from our experiences and deliver even more together and climate to the site, whilst the University of Exeter steadily improved the output from our fleet of nuclear a huge success to date, with over 26,000 visitors so far in 2014 and beyond. provides world-class interdisciplinary research to address power stations from 40.2 TWh in 2008, just prior to and recognition for Hunterston and Torness with both the challenges of climate change. acquisition, to 60 TWh in 2012. That year saw the being awarded ‘Five Stars’ by Visit Scotland. highest output since 2005. To achieve that again in This year, we have seen further progress of EDF Energy’s Campus Project. Campus is an integrated network of learning, development and knowledge sharing that “... sustainability is at the heart of our reaches every corner of EDF Energy. Its mission is to Vincent de Rivaz CBE improve business performance by connecting staff Chief Executive, EDF Energy outlook, our strategy, and our leadership.” across business units, across different generations, June 2014

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 13 Stakeholder advisory panel statement At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary CHief executive’s 2013 summary > Stakeholder Advisory Panel Statement

STAKEHOLDER PANEL STATEMENT

Throughout 2013 the Stakeholder Ed Miliband’s announcement of a EDF Energy has also continued to address The panel has also led on the Civil Society Advisory Panel has played an proposed two-year freeze on energy bills the issue of long-term affordability of Dialogue programme in response to important role in offering strategic ignited political debate on energy costs. energy by pressing forward with plans for protests at the West Burton B CCGT. This advice and direction to EDF Energy It was followed soon after by significant nuclear new build in the UK. Last year, a is an important piece of work that will during this eventful year for the price rises from other major suppliers, number of significant milestones were inform how EDF Energy responds to any industry. We have seen considerable which only added to the debate about reached. This included an agreement protests in the future. It will also help focus on the industry from the public the future of the industry. with the Government on the investment improve trust as the company strives to and politicians, particularly over contract for Hinkley Point C, which is a improve the way it responds to its critics. EDF Energy’s decision to anticipate the issues of costs for consumers. major achievement. Further challenges Government action on reducing energy I know that the EDF Energy leadership Meanwhile, the Government’s remain, including securing approval bills and pass these savings on directly team will continue to tackle the programme of Electricity Market from the European Commission that the to customers was an important step priorities facing the business, such as Reform continued its progress, with investment contract is compliant with towards rebuilding trust. It also put reducing costs for customers, continuing the Energy Act receiving Royal Assent State Aid rules. This is a key decision, pressure on other major suppliers to alter the record high output levels from in the final days of 2013. not just for EDF Energy, but the whole their price changes to reflect the changes generation, and continuing to progress of the UK Government’s programme of I am delighted to have taken on the role in policy costs that were implemented towards nuclear new build. The Panel Electricity Market Reform. The company as the Panel’s Chair, and look forward to by the Government. The company was will continue to scrutinise this work and will need to work closely with the the challenges of the coming year. The able to set itself apart from the rest of support the company as it builds a more Government as it presents this case to Panel has provided its recommendations the industry in a move that the panel sustainable business. the European Commission. on how to improve consumer trust, and supported. This decision demonstrated ensure that this is a guiding principal that the company is committed to During 2013 the panel gave feedback on for EDF Energy. This was particularly addressing the short-term affordability the new EDF Energy company ambitions important when the political spotlight of energy. and mission. These have been updated focused on the costs of energy in the and now centre on ‘driving progress Of course, there is more to be done final months of 2013. for people’. I was pleased to see the Sir Richard Lambert and the recently announced market way that sustainability has been weaved Chair, EDF Energy Stakeholder investigation by the Competition into all these ambitions. This will help Advisory Panel and Markets Authority will be EDF Energy maintain its industry-leading another opportunity to help improve position in this area. transparency, which is a vital step towards improving trust.

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 15 Our business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary > Overview An overview oUR mission and ambitions

EDF Energy is an integrated energy In 2013, we supplied 52.7 TWh (versus Lifetime extensions for these stations, During 2013, the renewables A better company with over 15,000 employees. 51.6 TWh in 2012) of electricity and where safe and commercially possible, operational portfolio increased by 225 31.5 TWh (versus 31.1 TWh in 2012) of will allow the UK to continue to benefit MW. This included three new onshore We generate and supply electricity and gas to residential and business customers. from low-carbon nuclear energy until wind farms: Fallago Rig, Boundary Lane gas for the UK from a nuclear, coal, At the end of 2013, we had 6 million additional new low-carbon capacity and Glass Moor II, as well as EDF Energy kind of gas and renewable energy portfolio. customer accounts (up from 5.8 million can come online at scale. The stations Renewables’ first offshore wind farm, In 2013, we maintained our position in 2012). These were mainly residential will continue to provide employment Teesside which has an installed capacity energy as the largest generator of electricity customers (5.7 million customer accounts) opportunities and enable us to maintain of 62 MW and began commercial (in terawatt hours, TWh, produced) with around 323,000 customers from the skills needed in the UK for a low- operation in July 2013. At the end of and as the largest producer of low- small and medium-sized enterprises carbon future. 2013, EDF Energy Renewables operated carbon electricity1 in the UK. and major businesses. 25 wind farms with a total capacity of company. We continue to operate our two coal 529 MW. These are primarily located in We are a wholly owned subsidiary power stations at Cottam and West Nuclear New Build the north of England and in Scotland. of the EDF Group. Burton in Nottinghamshire until new We plan to build four new nuclear forms of low-carbon energy are available Bringing our Generation business Shaped to deliver reactors in the UK – two at Hinkley Point to securely meet the UK’s energy needs. together, and ensuring a long-term in Somerset and a further two at Sizewell Our new gas power station at West strategy that puts a low-carbon and As we started 2014, we simplified the in Suffolk subject to ongoing studies and Burton will also back up intermittent renewable energy mix central to our structure of our business to focus our relevant permissions. forms of renewable energy. approach, means we are better able to functions on Customers, Generation, and play a key role in delivering a sustainable Nuclear New Build. These businesses are Hinkley Point C, once at full capacity, We generated 23.1 TWh of electricity energy future for the UK. supported by our Corporate and Steering will generate around 7% of the UK’s from our coal stations in 2013, consistent Functions. Our simpler structure means electricity when complete. Construction with 2012. The coal and gas plants, and For more detailed information on we are better placed to more efficiently of the two new reactors at the site will the teams that operate them, continue to our business please visit About Us. deliver our role as the largest producer of create around 25,000 jobs. Once finished, play a vital role in keeping lights on. Their low-carbon electricity in the country and the station will provide 900 jobs during contribution to the UK’s energy needs as as a better kind of energy company – one its 60 years of operation. part of the diverse generation mix will that stands on the side of the customer. continue to be vital in 2014. For more information about our Customers nuclear new build programme, see our media centre. In 2013, we retained our position as the number one2 supplier of electricity to Generation non-domestic customers (as measured Our existing nuclear power stations in TWh sold3). As of October 2013, we continue to provide the UK with safe, were the sixth largest residential supplier secure and reliable low-carbon electricity, to domestic gas and electricity customers with the highest output in eight years (measured by the number of accounts). achieved in 2013 at 60.5TWh. However, EDF Energy gained over In February 2014, we also confirmed 300,000 accounts over the two last that we expect to achieve a ten-year life months of 2013, reaching a record extension for our Dungeness B nuclear 5.7m B2C customer accounts at year power station to 2028, again subject to end. Considering this, and customer receiving the necessary approvals. Based divestment announced by RWE npower, on expected life extensions, all seven of EDF Energy expects to be the fourth our Advanced Gas Reactor (AGR) stations largest residential supplier overall. 1 Source: Elexon Reporting. and the Sizewell B Pressurised Water 2 Source: Cornwall Energy Associates Reactor (PWR) station will be operating Business Sector – Electricity as at 31 October 2013. Data excludes in 2023, when Hinkley Point C is due to Northern Ireland. be commissioned, subject to the final 3 According to the available data, investment decision being taken in 2014. excluding Northern Ireland. Hunterston Power Station

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 17 Our business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary Overview Our mission and ambitions > oUR mission and ambitions Driving Progress for people

At EDF Energy, we want to be a different kind of energy We will deliver our mission through our company We have set targets for each of our Better Energy company – one that everyone can feel better about. ambitions – the Better Energy Ambitions. These are our Ambitions so we can track our progress and report That means thinking long-term to keep energy plan for a sustainable business. They focus on the most how we are doing. Our performance will continue affordable, make sure we have a secure supply of important issues for our customers, our people, our to be published on our website and in our Annual energy for the future, and tackle climate change. business, and for the communities and environment that Sustainability Report. we are part of. They directly address how we will tackle To focus on this, and to put sustainable and responsible The following sections of this report introduce our the key challenges facing the energy sector. business at the heart of our approach, we developed a Better Energy Ambitions in more detail and provide new mission for EDF Energy in 2013: To achieve Zero Harm to people an overview of how we are doing so far. “Driving progress for people – a successful and To be the best and most trusted for customers responsible long-term energy business, trusted by To power society without costing the Earth customers and powering a thriving society and a healthy environment.” To deliver safe, secure and responsible nuclear electricity This builds on our longstanding commitment to, and strong track record in, sustainability. To achieve strong financial and ethical performance To empower our people to be a force for good

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 19 Our business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary Overview Our mission and ambitions > oUR mission and ambitions

To achieve Zero Harm to people To deliver safe, secure and responsible nuclear Ranked ‘Best in Sector’ Lowest ever, and sector-leading, electricity Lost Time Incident rate with a score of 95% in the Business in the 94% of our employees agree that Safe nuclear operations for Community Corporate safety is a priority for everyone in over 50 years in the UK and Responsibility (CR) Index, the company best ever performance by our nuclear power stations in the UK’s leading voluntary 2013 – over 60 TWh of low- To achieve strong financial benchmark for CR. With our carbon electricity produced and ethical performance Better Energy Creating 25,000 jobs in Invested over £3.5 billion in the Ambitions, To power society without the construction of Hinkley UK over the last three years costing the Earth Point C and 900 jobs for the we’ve put 60 years of its operation Reinvested all of our The largest producer of low- operational profit, and sustainable Opened visitor centres at all more, back in to our business carbon electricity in the UK, of our nuclear power stations and responsible producing around 50% of to help deliver the UK’s with both our Scottish centres low-carbon energy needs business at the the UK’s low-carbon power receiving five star ratings Opened one of the UK’s from Visit Scotland Paid £114m in corporation Won seven Big heart of our largest onshore windfarms tax in 2013 Tick awards in the approach. To be the best and most All of our nuclear power 2013 Responsible trusted for customers stations in England have Business Awards, for received the Wildlife Trusts achievements in: We think that’s Cheapest major dual fuel Biodiversity Benchmark Inspiring social action something that supplier for 49 out of 52 Met our target to cut Environmental weeks in 2013, at typical CO2 emissions from our leadership everyone can feel consumption commercial buildings by 30% Customer better about. Three simple tariffs for Won the Environmental engagement on domestic customers, no exit Leadership for Behaviour sustainability fees, and a tariff increase of Change Award in the just 3.9% in November 2013 – Rural action National 2013 Environment To empower our people to be a force for good giving the lowest variable rate and Energy Awards Building stronger prices of the major suppliers £15 million investment in Campus, our Skills Management and Training communities And 90% of our people say Centre in Somerset First supplier in Britain to offer we are an environmentally Sustainable travel fixed prices with no exit fees responsible business Engaged over 10m young people on energy, science and sustainability Employee to small business customers since 2008 and helping 50% of all UK schools through our schools volunteering Met all of our targets programme, The Pod under the Carbon Emissions Raised over £650,000 for the British Paralympic Association and set a Reduction Target (CERT) world-first in sustainability and sport with ParalympicsGB and the Community Energy Raised over £282,000 in ten months for Marie Curie Cancer Care Saving Programme – enough to fund 14 Marie Curie nurses for a year ‘Energy Provider of the Year’ 82% recommend EDF Energy as a good place to work at the Consumer Moneyfacts Awards 2014 84% of our people believe strongly in our ambitions and 83% say they are clear about what they need to do to make EDF Energy a more

sustainable business Simon Round (left), BITC Employee Volunteer of the Year.

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 21 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary > To Achieve Zero Harm To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance To empower our people to be a force for good

Ensuring safety is top priority for our metering teams “I follow up the work of our metering teams, ensuring safety remains a top priority, and that our customers are happy. We are using the National Skills Academy for Power approved assessments to make sure our people reach the highest levels of understanding and competence for smart metering installation and maintenance. I’m really proud to be involved in our ongoing success as smart metering providers.”

Phil Sobey, Quality Inspector

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 23 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary > To Achieve Zero Harm To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance To empower our people to be a force for good

Our aim is Zero Harm to our Our approach people and the communities Health, safety and wellbeing are our –– Supporting our leaders at all levels to we serve. top priority. Our approach to Zero be role models for health, safety and Harm, and our related improvements wellbeing. in performance, have been achieved Our commitment to safety remains our top priority, with our ambition –– Involving our people in the management through a company-wide approach to strengthened by targets for wellbeing and public safety. This builds on of risk and promotion and achievement risk management. This is supported our long-standing commitment to Zero Harm and our strong safety record. of safe and healthy conditions through by robust Health and Safety and a network of joint management/worker wellbeing management systems, and safety committees at company, Business a clear governance framework to Our key targets Unit and local levels. manage personal and process safety Focus Goal Targets as well as wellbeing. –– Setting stretching Health and Safety targets – these are reviewed on a In particular, our approach involves: Our safety Zero harm to our people 50% reduction in Total Recordable monthly basis by our Executive Team. –– Our company-wide Health, Safety and Incident Rate (TRIR) by 2020 (against –– Ensuring a Daily Safety Message is Environment Assurance and Integrity a 2012 baseline) discussed at the start of every business Management System (A&IMS). This meeting. This ensures that Occupational Long-term aspiration remains Zero provides the management framework Health and Safety is at the forefront of Harm to our people by 2030 and sets expected standards across our our minds everyday. business to assess and control Health Our wellbeing Mentally fit, physically, 25% reduction in work-related and Safety risks from our activities. engaged employees ill health by 2018 (against a 2012 baseline) –– A company-wide Health and Safety Action Framework. This sets out the Public safety Zero Harm to the public from Maintaining our public safety steps on our journey towards making our operations performance and developing a Zero Harm a reality. Each Business Unit specific performance metric in 2014 produces its own annual action plan with the aspiration as Zero Harm to to support delivery of the key actions the public from our operations within the framework.

“We believe that all harm is preventable so our aim is Zero Harm. That means providing healthy workplaces that are safe for all, a strong focus on wellbeing, and taking positive action to ensure the public is not harmed by our operations.” Vincent de Rivaz, CBE, Chief Executive

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 25 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary > To Achieve Zero Harm To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance To empower our people to be a force for good

Our safety Our wellbeing Public safety

In 2013, we continued to build on our In 2013, we increased our efforts on In our annual Employee Engagement In 2013 we broadened the scope FIVE SIMPLE strong safety performance. Our 2012 wellbeing as part of our commitment Survey 76% of our employees agreed of our Zero Harm ambition Lost Time Incident (LTI) rate of 0.6 to Zero Harm. This meant we were that management are interested in the to specifically reference ‘the ACTIONS incidents for every one million hours able to reduce the number of work- well being of employees compared to communities we serve’. With safety worked was our best ever. In 2013, related ill health incidents across 72% in 2012. as our highest priority, Zero Harm we achieved an even better result our business. In 2012, we had 5.83 to our people and the communities In 2014, we will maintain our focus on – a sector-leading LTI rate of 0.47 incidents of primarily work-related we are part of has always been wellbeing. This includes our Employee per million hours worked. ill heath per million hours worked. central to how we operate. However, Assistance Programme which offers We always keep Our ongoing focus on employee our updated Zero Harm ambition We also improved our Total Recordable support on a range of work and home our workplace wellbeing in 2013 saw this rate drop makes this more explicit and also Incident Rate (TRIR) in 2013. In 2012, issues, including relationships, finance, tidy and free from to 4.86 incidents per million hours complements our ambition to provide our TRIR was 1.58 incidents per one parenting, health and wellbeing, careers, obstructions worked – around 17% improvement. safe, secure and responsible nuclear million hours worked. In 2013, we made retirement and more. electricity. a 47% improvement in this, achieving As part of our continual improvement We will also be taking a more systematic a TRIR of just 0.84 incidents per million plans, we have set out a five-year strategy In 2014, we will develop a specific approach to stress risk assessment and hours worked. This shows the value to help us to achieve our ambition. metric to formally track and report our management for all employees, and We always attend of maintaining a consistent focus and For example, last year, we provided performance on this. In the interim, applying more consistent measurement work fit for duty support to our people on Zero Harm. flu vaccinations for our people and further details on our performance can of our performance and the impact of 3,500 employees took part in this. We be seen in the ‘Performance at a glance’ We use our Employee Engagement the actions we are taking to improve also launched our stress management table on page 6 of this report. Survey results as an indicator of how mental wellbeing. e-learning programme which has been we are embedding Zero Harm into completed by more than 40% of our We always hold our processes and culture. In our 2013 employees in 2013 alone. the hand rail on Employee Engagement Survey, 94% of stairs our employees agreed that safety is a We offer our people a range of health, priority for everyone in the company fitness, social and leisure activities – a further increase from 92% in 2012. through our leisure programme and ran local wellbeing initiatives at many of our In 2014, we will maintain our focus on sites in 2013. These included healthy We always look health and safety, reinforcing the five eating campaigns, talks on wellbeing, where we are ‘Simple Actions’ that we launched in fitness classes and awareness-raising by going to avoid 2013. These are designed to encourage voluntary health and wellbeing advocates slips, trips and falls safe behaviour at work and put our Zero across our company. Harm culture in to practice, whatever the working environment.

We always address unsafe behaviours

Ivan Prozesky, Environmental Safety Engineer and STEM Ambassador.

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 27 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm > To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance To empower our people to be a force for good

Making a difference through our support for vulnerable customers “We want EDF Energy to stand out for the support we provide customers. I work on the warm home discount project and on redeveloping our Personalised Support Service. It’s all about providing personal and sustainable help and advice, not just offering a quick fix. Our support can make a real difference to customers.”

Sarah Thacker, Vulnerable Customer Innovation Executive

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 29 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm > To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance To empower our people to be a force for good

We will be the best and most Our approach trusted energy company, In March 2012, our Chief Executive Helping our customers use energy known for helping customers. made three promises to our efficiently to keep bills low is important customers: to deliver fair value, and we need to play our part too. By better service and simplicity. These keeping the costs of our energy efficiency Being best and most trusted for customers goes beyond being just picked as a Customer Commitments represented programmes low, we are better able to supplier - it’s about how we help customers use and save energy, and how we our dedication to putting customers keep energy affordable for the benefit support vulnerable customers. first and they continue to do so. They of all of our customers. We will also are a public acknowledgement of our continue to provide strong support for Our key targets responsibilities as an energy supplier customers who need additional help. and a producer of electricity. We will need to earn the position of Focus Goal Targets We know that trust in our sector is still being the ‘best and most trusted’ energy low and that we can always improve how company by continually improving our Customer service Earn the position of Put customers at the heart of our we operate. This is why we have set out customer service and performance, and and trust being the ‘best and most approach by publishing progress on our ambition to be the best and most delivering on our promises. Our Customer trusted’ energy company our Customer Commitments of Fair trusted energy supplier for customers. Commitments and ‘Customer Index’ (a by continually improving value, Better service, and Simplicity By living up to this ambition and our selection of performance measures that our customer service and Customer Commitments in all of our give us an overview of how we are doing) performance Show continual improvement in a ‘Best for Customer Index’ activities, we believe we can become a will help keep us on track. We have also true force for good – one that is known appointed a Customer Compliance Officer Energy efficiency Be the best energy Be the most cost effective energy for standing on the side of the customer. to make sure that we, and those who company in the delivery company in delivering the Energy represent us, live up to the expectations For our Better Energy Ambitions we have of our energy efficiency Company Obligation (ECO) of our customers, our regulators and our taken the concept of ‘fair value’ from obligations, minimising the programme as reported by DECC by own people. our Customer Commitments and applied costs to all our customers March 2017 it to our energy efficiency programme. Vulnerable Provide ongoing support Report annually on how we are customers to our most vulnerable helping our most vulnerable customers, ensuring they customers by: get the right help at the right time ––Reducing the amount of energy they use ––Reducing their household costs ––Helping them manage household debt ––Ensuring they know what help is available and how to access it “Our focus is on fair value, ––Providing inclusive services that cater for their needs better service and simplicity, with energy efficiency and support for vulnerable customers at the heart of our approach.” Beatrice Bigois, Managing Director, Customers

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 31 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm > To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance To empower our people to be a force for good

Customer service and trust: Our Customer Commitments

We publish progress on our Customers have also benefitted from We are also backing proposals for energy Customer Commitments on the EDF developments such as our moving out suppliers to offer a single unit price We have stuck closely to, and built on our Energy website. This provides details service which allows customers to move for gas and electricity. In this way, the Customer Commitments since 2012. We have on how we are delivering fair value, out of their property without having introduction of ‘petrol forecourt-style’ developed a Trust Test to make sure we meet better service and simplicity for our to call us. We have also developed a pricing would mean customers would Ofgem’s standards of conduct. It means residential and business customers, as product renewals service, allowing only need one price (the unit price) to that when we create new processes, policies well as regular performance updates. customers to go online; choose a new compare between different suppliers. or communications, we ask ourselves ‘is this tariff and automatically switch to it when In August 2013, Ofgem’s standards of the right thing to do for our customers?’ Better service their existing deal ends. Focusing on conduct came into force to make sure Then we ask five more questions: simplicity and fairness, the customer gets We took action to improve service for energy suppliers treat customers fairly. to stay on the deal they are on until it Is this a fair thing to do? business customers in 2013. In August, This is one of many positive changes that ends regardless of when they switch to EDF Energy became the first supplier in will make the market simpler, clearer and Are we being professional? the new tariff. Britain to offer fixed prices with no exit fairer for customers and help them to Are we offering products, services and fees to small business customers whose choose the best deal. Fair value advice that are appropriate for each contracts are automatically renewed. For residential customers, the standards customer’s needs? The move ended automatic rollover We are committed to providing cover all interactions with customers and ‘lock-ins’ for small business customers, affordable energy for all customers. We Are we being transparent and for small businesses, the standards cover giving them the freedom to better launched our innovative Blue products, communicating clearly? everything relating to bills, contracts and review the service they received and use including the Blue Price Promise tariff changing supplier. The standards mean Are we being honest, including that to inform their choice of supplier. in 2012, providing electricity backed by that whenever we deal with a customer, admitting mistakes and acting quickly We also launched two new innovative low-carbon nuclear generation. Our Blue we make sure it is in a fair, professional, to put them right? tariffs for Small and Medium Enterprises fixed products have allowed customers appropriate, transparent and honest (SMEs) in 2013. ‘New Start’ for business to freeze their energy prices without way. All our tariffs and services must be is a new product designed to help having to fear a price increase for up to tailored around our customers’ needs, entrepreneurs and start-ups progress four winters, without exit fees. At the just as information given to customers through those critical first phases of end of 2013, we had 2.1 million Blue should be clear, easy to understand, and businesses. Our ‘Freedom for Business’ product accounts. Our customers have jargon-free. We need to make it easy for complements this, offering SMEs a also benefited from one of the cheapest customers to get in touch, and leave no simple variable price product with standard dual fuel tariffs on the market. stone unturned in putting things right if 30 days notice of any price change. EDF Energy has been the cheapest major we make a mistake. dual fuel supplier for 49 out of 52 weeks For our residential customers we in 2013, at typical consumption. We need to make sure everyone at continued to provide a range of EDF Energy understands the standards self-service channels. MyAccount Simplicity expected of them so we welcomed the continued to be very successful with new standards from Ofgem and have thousands of transactions every week We know that life is already complicated complemented them with our own EDF and record numbers of visitors to the enough so we have reduced the number Energy ‘Trust Test’. We have launched MyAccount website. of tariffs we offer to just three – a these across our business to make sure standard variable tariff, a short term fixed we put customers at the heart of all tariff, and a longer term fixed tariff. We our decision making today and in our apply the same standing charge across all planning for the future. our tariffs to make it easier for customers to compare and choose the right product.

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 33 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm > To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance To empower our people to be a force for good

A thank you from us! Customer service and trust: Our ‘Best for Customers’ Index

We know we have a lot more to do Our ‘Best for Customers’ Index looks As well as a fair deal, customers want Gaining Customers trust on our journey to be the best and at a range of customer service and to be able to get in touch with us easily We measure customer trust through our most trusted for customers but we employee measures to keep track and to have issues dealt with efficiently. monthly ‘Trust Survey’. Trust is based on are pleased with our progress and of how we are doing in meeting our This is why we publish performance on the experiences our customers have with how this is being recognised by our ambition to be the best and most both of these measures on a weekly basis. us, so in our Trust Survey we measure customers and consumer bodies. trusted for customers. In particular, For further information please visit five key behaviours, identified through it looks at our Net Promoter Score, In 2013, we came second in the uSwitch Our Service Performance. qualitative research, that we need to reduction in customer complaints, Customer Satisfaction Report and we display to build and maintain the trust call handling performance, a were also placed first in the same awards customers have in us. We ask: customer trust survey score, and the for “Value for Money”, “Best Deal” and NCSI score percentage of EDF Energy employees Is your energy supplier a “Transfer Process”. who are also customers. consistent and reliable company Our efforts in 2013 were also rewarded to deal with? early in 2014 when we were named Building customer satisfaction Does your energy supplier as ‘Energy Provider of the Year’ at the In 2013, we were ranked joint first in the recognise its customers’ loyalty? Consumer Moneyfacts Awards 2014 from

National Customer Satisfaction Index Company Quarter 1 2012 Quarter 1 2013 from Change 2012 to 2013 a shortlist of nine large and small energy Does your energy supplier make (NCSI). As outlined in the table opposite, providers. The awards use feedback from things simple and easy in the first quarter of 2013 we improved EDF Energy 65 71 +6 more than 90,000 consumer surveys to understand? by 6 points in the NCSI, to move to joint to select their winners and showcase SSE 73 71 -2 first position with Scottish and Southern Does your energy supplier take companies that provide not only good Energy (SSE). This was a significant jump Scottish responsibility for its actions and customer service, but the best products 68 70 +2 from our last place position in the first Power proactively sort out mistakes? on the market. The shortlist for Energy quarter of 2012. British Gas 67 67 0 Provider of the Year was selected by an Does your energy supplier treat you independent research team who looked a Our focus throughout 2013 has been E.On 69 67 -2 as an individual, not as a number? wide range of our products and services to further improve our customer service Npower 68 63 -5 In 2013 we were in joint first position including price, tariff length, exit penalties, and operational efficiency. We have Note: At time of publishing this report, 2014 Q1 data was on our Trust Survey amongst the other customer contact options and available been open and honest about our plans not available. major suppliers. payment methods. to deliver better service, and published Source: National Customer Satisfaction Index – United Kingdom information about our service and our So, thank you to all of our customers and complaint levels on our website. Company Trust everyone who took part in these surveys. Feedback from our customers, our EDF Energy 48 regulators and consumer bodies is always British Gas 46 welcome and we will continue to use this to make sure EDF Energy is a better kind E.On 48 of energy company. Npower 38 Scottish Power 43 SSE 48

Illuminas Research, 19,404 interviews with customers of the six major energy suppliers Jan-Dec 2013

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 35 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm > To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance To empower our people to be a force for good

Energy efficiency

Reducing customer complaints Even in the best organisations, people In 2013, we met all of our obligations Through HHCRO, we have already make mistakes and IT systems go wrong. under the Carbon Emissions Reduction installed 30,198 measures which have We achieved a consistent reduction in the When mistakes happen, we will act Target (CERT) and the Community resulted in £284m of energy savings level of customer complaints throughout promptly and courteously to put things Energy Saving Programme (CESP). for our customers. These measures are 2013 and are working hard to have one of right. We aim to resolve complaints by primarily loft insulation, cavity insulation the lowest levels of complaints of all major For CERT we achieved 108.3% of our the end of the next working day. At peak and gas boiler replacement. We are energy suppliers. Our aim is to achieve Priority Group obligations1, 116.1% of times and for more complex complaints, achieving this through cost-effective the lowest level of customer complaints our Super Priority Group obligations2 this may take longer. contracts with installers, as well as of the major energy suppliers by 2015, as and 109.6% of our Insulation obligations. offering these measures directly to reported by Consumer Futures. Consumer We publish our complaints data online, We achieved three quarters of our overall our customers. Futures ranks suppliers on the number of making it easy for our customers to see. carbon savings by promoting3 insulation complaints received by the Citizens Advice measures and roughly 20% by promoting Our customers can apply through our consumer service, Consumer Futures and Support from our people lighting measures. website or by calling our specialist Green the Energy Ombudsman, adjusted to Hub Customer Services team. As part Our people are potentially some of the For CESP we achieved 133% of our total reflect market share. of our approach, we are also proactively most powerful advocates of our business. obligation. This was by far the highest of targeting those who could benefit from For further information on our complaints If we are getting things right, then we any energy company (E.ON, who came in improvements to their home. In particular, performance please visit Complaints would hope that employees who have second place, achieved 116%). this focused on those most in need, such Performance. control over their energy bill at home Our focus now moves to the as those in low income areas. would choose us as their energy provider. government’s Energy Company So, as part of our customer index, we We have proposed action to reduce Obligation (ECO). ECO is an energy want 100% of our people who can select ECO costs too whilst ensuring energy efficiency programme that was their energy provider to select EDF Energy efficiency measures can still be delivered. introduced into Great Britain at the as their supplier. From 2014 we will start We took a different approach to other beginning of 2013. It places legal to report the percentage of employees suppliers when we announced our tariff obligations on the larger energy suppliers who are EDF Energy customers. increase of just 3.9% in November 2013. to deliver energy efficiency measures This was less than half the size of the to domestic energy users and has a increases announced and implemented particular focus on vulnerable consumer by other major suppliers at that time. We groups and hard-to-treat homes. focused the benefit of the ECO changes There are three main ECO targets: on our variable rate customers rather than our fixed rate customers, as our fixed rate –– Home Heat Cost Reduction Obligation customers already benefit from highly (HHCRO) - aimed at vulnerable private 1 The Priority Group includes those aged competitive products with price security households on lower incomes; 70 and over and those on a wider set and no termination fees. of qualifying benefits. –– Carbon Saving Communities Obligation 2 The Super Priority Group represents a subset of the Priority Group. It includes (CSCO ) - targeted at low-income those on certain qualifying benefits communities (with a rural sub-target); as defined in the Order, including households in receipt of child tax –– Carbon Emission Reduction Obligation credits and under an income threshold. 3 A supplier achieves an obligation (CERO) – with a focus on homes with by promoting qualifying actions to harder to treat energy issues. a domestic energy user for CERO and CSCO or to a ‘householder’ for HHCRO. A qualifying action is the installation (or in the case of boilers, replacement or repair) of a measure that satisfies conditions laid out in the Order. The act of promoting is therefore linked to the act of installing a measure.

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 37 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm > To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance To empower our people to be a force for good

Vulnerable customers

In 2011*, the number of fuel poor Citizens Advice Bureau London Warm Zone (LWZ) In 2013, the EDF Energy Trust made households in the UK was estimated partnership over 2,000 awards to households. We are working with London Warm at around 4.5 million, representing This amounts to a total value of We work in partnership with the Citizens Zone, a not-for-profit organisation that around 17% of all UK households. £1,645,732 in awards. We donated a Advice Bureau, the largest providers of helps people on low incomes improve total amount of £1,993,000 through the The UK government is now legislating independent debt advice in the UK. the energy efficiency of their homes and Warm Home Discount* by the end of the to change the definition of fuel poverty We originally funded the Energy Debt increase their income. Our partnership is year. In October 2013, we also donated and will publish a new Fuel Poverty Advice service, which offered customers running a pilot scheme for 600 homes an additional £1,007,000 voluntary Strategy in 2014. This will set the future free access to independent advice on in London, focusing on vulnerable funding to support customers coming strategy to tackle fuel poverty in the how to deal with household debts households and hard-to-treat homes. off our price reassurance scheme. UK over at least the next five years. through Citizens Advice. In June 2011, To date, LWZ have delivered new or This brought our total donation for The Department of Energy and Climate we progressed our partnership with replacement boilers and improved 2013 to £3m. Change (DECC) recently published a Fuel Citizens Advice to create an EDF Energy heating systems in over 160 homes. Poverty Framework consultation in which Debt Helpline to support customers who This has achieved around £2.4m of Personalised support service they proposed a new model of ‘Low would benefit from independent, free savings in home heating costs. Another Income High Fuel Cost’ as an improved and confidential debt advice. Recognising that all of our customers are 100+ homes have also been surveyed method to identify customers who are different and some need extra help, we In June 2013, we reviewed our and appointments made for installation. in fuel poverty. We support this model offer a range of personalised support partnership with Citizens Advice to LWZ is on target to deliver a total of and will now await the outcome of the services. This can include information on enable us to expand the service of our £6m savings to date. consultation in 2014. free benefit entitlement checks and energy EDF Energy Debt Helpline and reach even efficiency measures for our vulnerable As a responsible energy company, more customers. We set new objectives EDF Energy Trust Fund customers, as well as advice on whether support to our vulnerable customers to reflect the national reach of the The EDF Energy Trust, established in 2003, they are on the best tariff and payment remains at the heart of our approach. programme. Our renewed partnership is an independent Charitable Trust that method, and help with debt or paying bills. The following pages highlight some of will continue to be funded until May 2015. helps tackle fuel poverty in society. the key developments in 2013. For more information about the range During 2013, our partnership with the It has a particular focus on fuel poverty of additional services we provide and EDF Energy Debt Helpline, delivered by and helping families or individuals who are how this helps our customers, Plymouth Citizens Advice Bureau, had struggling to pay their gas and electricity see our website. provided direct support to 4,976 of bills. For example, it awards grants to our customers. individuals and families to clear domestic gas and electricity debts and other priority household debts, and to purchase essential energy-efficient household items (such as washing machines and cookers).

*The Warm Home Discount (WHD) Scheme is a 5 year programme introduced by the Government in April 2011 and administered by energy suppliers to provide rebates on the * 2011 is the most recent fuel poverty data electricity bills of households that need it published by DECC. most in England, Scotland, and Wales.

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 39 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm To be the Best and Most Trusted for Customers How are we doing? > To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance To empower our people to be a force for good

Generating low-carbon energy and protecting biodiversity at our sites “Through my work, I’ve gained a better understanding of the environment around our sites – biodiversity, archaeology, agriculture and public access. We’re working collaboratively to manage these. It means we can protect and enhance the land around our sites as well as continue to generate low carbon power in to the future.”

Ian Ord, Plant Lifetime Extension Manager

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 41 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm To be the Best and Most Trusted for Customers How are we doing? > To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance To empower our people to be a force for good

We will lead the Our approach decarbonisation of the The scientific evidence on climate world on a trajectory to pass the trillion UK electricity sector whilst change is clear. The recently released tonne mark in less than 30 years. Only a Fifth Assessment Report from the rapid and focused response can avoid Intergovernmental Panel on Climate this happening. achieving an increasingly Change (IPCC) revealed the strongest As the largest producer of low-carbon consensus yet amongst scientists that electricity in the UK, EDF Energy is human activities are the main cause positive environmental uniquely positioned to play a key ongoing of warming since the 1950s. role in tackling climate change. We impact across our operations. The latest science points to multiple already produce around 50% of the changes in the Earth’s climate including UK’s low-carbon energy and continue We have introduced a new ambition to EDF Energy - ‘To power society longer and more frequent heat waves, to invest to safely and securely meet the without costing the Earth’. This captures our plans to reduce the carbon increased extreme rainfall events and UK’s energy demands whilst bringing intensity of electricity generation and to have an increasingly positive flooding, and rising sea levels. This will emissions down. We continue to work environmental impact along the way. have real and significant impacts on with organisations like the Corporate economies and societies. Leaders Group on Climate Change, part of the Cambridge Institute for Governments have agreed that in order Our key targets Sustainability Leadership, to make a to minimise the risks of the worst impacts low-carbon economy a reality. Focus Goal Targets of climate change, global average warming should be stabilised below 2°C. Whilst taking the carbon out of Carbon intensity To lead the UK in reducing To reduce the intensity of carbon The IPCC reports that this goal equates electricity production is one part of the

of our electricity the carbon intensity of dioxide (CO2) emissions from our to a cumulative amount of around one equation, we need to do this in a way generation electricity generation electricity production to less than trillion tonnes of carbon from manmade that is environmentally responsible too.

100g CO2 per kWh by 2030 CO2 emissions. Already over half of this This is why we have introduced a new has been emitted globally, with the ambition to our plan for a sustainable Our wider To achieve an increasingly Land: 100% of our operational annual rate of emissions putting the business: ‘To power society without environmental positive environmental sites to hold the Wildlife Trusts’ costing the Earth’. impact impact from our operations Biodiversity Benchmark by 2018; no across land, air and water net loss of biodiversity by 2030

––Land: Protect and In 2014, re-baseline and extend our enhance biodiversity footprinting to cover all greenhouse “Climate change and environmental ––Air: Reduce total gas emissions from our buildings, protection remain among the most greenhouse gas emissions transport and supply chain. In 2015, across our buildings, set new reduction targets (absolute pressing global challenges – today transport and supply chain and relative) across this new scope of reporting and for the future. We will lead ––Water: Ensure sustainable the way in cutting emissions from water use across our Water: Establish and report our operations water footprint by 2015 electricity generation and achieve an increasingly positive environmental impact across our activities today and through our planning for the future.” Paul Spence, Director of Strategy and Corporate Affairs

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 43 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm To be the Best and Most Trusted for Customers How are we doing? > To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance To empower our people to be a force for good

Reducing the carbon intensity of electricity generation

Affordability of energy, security of energy demand and reliance on coal in the Before the end of 2014 we expect to be renewables projects, whilst maintaining energy supply for the future, and absence of more abundant and immediate able to confirm a 10-year life extension our involvement through site management, climate change are three of our low-carbon and renewable generation. for our Dungeness B nuclear power operations and maintenance. biggest challenges in energy sector. station to 2028, subject to receiving With the evidence for the human impact Finally, our proposed Navitus Bay Wind We believe that nuclear power is the the necessary approvals. on climate change being so overwhelming, Park is a 50-50 Joint Venture between most affordable low-carbon option we have a duty to do our utmost to cut Achieving this would mean that all eight Eneco Wind UK Ltd (Eneco) and EDF to address these challenges as part of emissions and minimise the risks of future of our existing nuclear power stations Energy Renewables. The final phase of a diverse energy mix for now and in climate change. As part of our Better would be operational until at least 2023. consultations for this development took to the future. Energy Ambitions, we have therefore set Three of the seven Advanced Gas Reactors place in September 2013 with Design We already operate eight nuclear power ourselves an interim target of reducing our (AGRs) would be operating until 2030 and Consent Order submission expected to be stations around the UK. These supply carbon intensity to less than 100g CO2 per Sizewell B, our Pressurised Water Reactor submitted in April 2014. The development around 19% of the UK’s energy. Subject kWh by 2030. We are currently reviewing (PWR) would remain open until 2055. of Navitus Bay has been scaled back to to the right investment framework and our strategy however, as, in line with the address stakeholder concerns about the relevant permissions, we plan to build four Committee on Climate Change, we aspire Renewables size of the project. If the project receives new reactors over the coming years – two to reduce this intensity even further. consent, the development will cover an During 2013, the renewables operational at Hinkley Point in Somerset and two We will report more on this in 2014. area of 155 km² with a maximum of portfolio increased by 225 MW. This at Sizewell in Suffolk. These will play a 194 wind turbines, each generating up In the meantime, updates from 2013 on included the development of three vital role in securing safe and reliable low- to 5MW. The site will have a maximum our generation business are set out here. new onshore wind farms: Fallago Rig in carbon electricity for the UK. installed capacity of 970MW, generating the Scottish Borders, Boundary Lane in enough low-carbon energy to power We know that the path towards a low- Nuclear generation Northumberland, and Glass Moor II in approximately 710,000 homes. carbon economy is not a simple journey. Cambridgeshire. It also included the first Our nuclear fleet already plays a crucial As it always has, the carbon intensity EDF Energy Renewables offshore wind role in powering a low-carbon UK. In 2013, Thermal generation of generation will fluctuate each year farm at Teesside. At the end of 2013, EDF our nuclear power stations generated (coal and gas) as a result of energy demand and the Energy Renewables operated 25 wind 60.5 TWh of electricity. This was our best availability and affordability of generation farms with a total capacity of 529 MW. In 2013, our thermal plants produced ever performance, exceeding our previous in the short term. This will continue 23.1 TWh of electricity which was best of 60 TWh output in 2012, and the Teesside has an installed capacity of 62 until new low-carbon and renewable consistent their output in with 2012. first time that consecutive output has MW and began commercial operation in generation comes online and at scale. It These plants, and the teams that been over 60TWh since 2002/03. In total, July 2013. The 27 wind turbines, located is why investment in low-carbon and operate them, continue to play a vital our nuclear fleet helped avoid 43 million off the coast at Redcar, will generate renewable technology and infrastructure role in keeping the lights on until new tonnes of carbon emissions compared to if enough low-carbon electricity to power must be a priority for the UK. low-carbon and renewable generation the electricity had been generated by the up to 40,000 households. The site was sources are operational. In 2013 the CO2 intensity of our electricity prevailing fossil fuel energy mix. This is the officially opened in April 2014. generation was 256g/kWh. The intensity equivalent of taking 67% of UK passenger All three units of the new 1300 MW Fallago Rig was officially opened in July was largely driven by increased operation cars off UK roads. CCGT power station are now in 2013. The site, which started generating of our coal-fired stations – coal remains commercial operation and the site was Extending the life of our nuclear power in March 2013, is one of the largest more cost effective than gas or lower officially opened in April 2014. The generation stations makes good economic onshore wind farms to be built in the UK. carbon alternatives in the short term. station will serve 1.5 million homes over sense, provides low-carbon electricity Its 48 turbines have an installed capacity its 25 year life and has carbon emissions This brought us closer to our original goal to keep the lights on in the UK and of 144MW - the windfarm’s annual that are half those from a coal plant. In of reducing our carbon intensity to no safeguards jobs in our local communities output will be equivalent to the electricity addition, the new plant can be operated more than 250g/kWh by 2020, set as and in our wider supply chain. Plant consumption of around 90,000 homes. more flexibly and cost effectively in part of Our Sustainability Commitments lifetime extensions to date have saved In December 2013, the sale of 80% of periods of high demand. in 2010. However, it is not as low as the around 150 million tonnes CO2 that would Fallago Rig was completed which enabled intensity of 208.1g/kWh that we achieved otherwise have been emitted by fossil fuel us to release equity to reinvest in other in 2011 – again because of short-term power generation.

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 45 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm To be the Best and Most Trusted for Customers How are we doing? > To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance To empower our people to be a force for good

ACHIEVING AN INCREASINGLY POSITIVE ENVIRONMENTAL IMPACT

Environmental impact: Land Environmental impact: Air This will include setting new standards and targets to minimise greenhouse gas EDF Energy’s power stations include large Our former Sustainability Commitments emissions when we upgrade or move landholdings which can often support a included two key targets on CO2 locations or equipment. In addition, we wide range of wildlife, including many emissions from our business – to reduce will work with our strategic suppliers to protected species. We work with the CO2 emissions from our commercial develop a robust baseline for our Scope 3 Wildlife Trusts and other organisations to buildings by 30% by 2012 and to reduce supply chain emissions. This will include a protect and enhance this biodiversity. Our CO2 emissions from our transport by 20% new focus on evaluating and minimising work has been formally recognised by the by 2012 (both against a 2006 baseline). the emissions embodied in the products Wildlife Trusts through the Biodiversity We were As we reported last year, we met and services we use. Benchmark and featured on the BBC’s extremely proud our transport target in 2012 through Countryfile in November 2013. in 2013 when a combination of proactive travel Environmental impact: Water we won the The Biodiversity Benchmark is the only management and changes to our We have always taken positive steps Environmental award for business that recognises business. In 2013, we also met our to manage the use of water within our Leadership and rewards continual improvement in target for commercial buildings as the business. This has included ensuring that for Behaviour biodiversity management. It provides a carbon savings from our programme of we use water efficiently and maintain Change Award framework to help businesses make sure improvement works were realised. full compliance with abstraction and in the National their impact on biodiversity is as positive By December 2013, we had reduced discharge consents. With the impacts Environment and as it can be. It does this using robust, emissions from our commercial buildings of climate change becoming more of a Energy Awards independent verification of planning and to 1.37 tonnes per FTE (1.02 tonnes reality and water resources coming under for our approach implementation of land management excluding data centres) against a 2012 increasing pressure from population to environmental practices. This looks at how a business target of 1.4 tonnes per FTE. growth and environmental change, we management. restores its land (through proactive are formalising our focus on this through management of existing wildlife and sites Having met our original targets, we a specific water target. of conservation importance), recreates are now developing a new and more wildlife habitat on land previously used comprehensive greenhouse gas baseline In line with the water-related Corporate for other purposes, and reconnects sites for our business in 2014. Operational Responsibility Commitment developed by to build a network of habitats for wildlife. emissions from the use of gasses in our parent company, EDF, we have set a air conditioning, refrigeration and fire target to establish and report our water We set a target for all of our operational suppression will be included in our footprint by the end of 2015. This will sites to receive the Biodiversity Benchmark environmental footprint from 2014 include both our operational and non- by 2018. As of 2013, all of our nuclear onwards. Initial data for 2013 indicate operational footprints. In addition, we will power stations in England have achieved that these emissions were the equivalent continue to maintain our environmental this. Our focus in 2014 will be on our two of 6% of the total energy emissions from compliance on water management to Scottish nuclear power stations at Torness our buildings. ensure we have a minimal impact on local and Hunterston. and regional water resources. We will Having established our updated baseline report more on this over the next year. in 2014, we will set targets to optimise our use of energy and to minimise losses of gas from refrigeration systems.

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 47 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth > To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance To empower our people to be a force for good

Dedicated to improving safety and efficiency in our nuclear stations “Since finishing my apprenticeship, I’ve worked as a mechanical technician at Hartlepool power station. I work to maintain our systems in the reactor controlled areas. We take a collaborative approach so we’re constantly sharing information across our sites to make sure all our power stations are running efficiently and safely.”

Sam Jones, Mechanical Technician

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 49 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth > To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance To empower our people to be a force for good

We will continue to deliver the highest standards of

nuclear safety in our existing Our approach EDF Energy is in a unique position and new build activity, and to play a key role in building a low-carbon economy for the help shape long-term solutions UK. As we play our part in this transition, we know that how to radioactive waste. we operate our business is just as important as what we We’ve clarified our ambition to talk more about safe, secure and responsible do. For this reason, our Better nuclear electricity – that includes an ongoing focus on nuclear safety and Energy Ambitions build on our helping achieve long-term solutions to radioactive waste. former ambition to ‘lead the way in nuclear generation’ by very specifically stating what we Our key targets mean by this. For us, this is all about delivering safe, secure and Focus Goal Targets responsible nuclear electricity.

Nuclear safety To achieve a Zero Harm We will report annually against a range nuclear safety record of established safety measures: ––Nuclear reportable events ––Collective radiation exposure ––Delivery of new plant design to meet the safety case and project milestones ––Promoting an open reporting culture ––Maintaining nuclear competency status “Nuclear safety remains our overriding priority, Long-term To demonstrate real Work with government, NGOs and with security of low-carbon electricity supply, solutions to progress towards others to demonstrate real progress radioactive waste implementing a long- towards implementing a long-term UK and our sites, at our core. Our commitment to term UK radioactive radioactive waste solution responsible business means we will work with waste solution government, Non-Governmental Organisations and others to demonstrate real progress towards finding long-term UK radioactive waste solutions” Stuart Crooks, Managing Director, Generation Humphrey Cadoux-Hudson, Managing Director, Nuclear New Build

Stuart Crooks (left) and Humphrey Cadoux-Hudson (right).

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 51 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth > To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance To empower our people to be a force for good

Nuclear safety

As a responsible nuclear operator Nuclear Reportable events (NRE) and organisational arrangements. MAINTAINING NUCLEAR we have a Nuclear Safety Policy. Our project organisation and processes COMPETENCY STATUS Our nuclear site licence requires This clearly defines the practices we have therefore been developed around comprehensive arrangements for In order to safely deliver a high quality deploy to sustain a healthy nuclear strong project management including reporting and investigating any incidents nuclear construction project, we will safety culture across our business and design, engineering, procurement at our power stations to the ONR. The ensure that we have a skilled, capable, to ensure that nuclear safety remains and construction. most significant of these are known as resilient organisation with the ability at the heart of all our activities ‘Nuclear Reportable Events’. These present Developing a secure design that meets all to provide an enduring oversight of We have operated safely (EDF Energy only minor failures in very reliable plant of our safety requirements is fundamental nuclear and construction safety. We will and predecessor companies) for over and management systems to protect to the success of the project. In order to maintain and develop a knowledgeable 50 years in the UK and work to some safety and maintain legal compliance. support this, safety objectives for the workforce with the capacity and of the highest safety standards of any Fluctuations from year to year in the design have been established in the capability to control decisions that could global industry. number of such events are expected, and safety case and these are being built in impact on safety for the whole lifecycle efforts to improve our arrangements to the design process. of activities. That means through design, The safety of nuclear installations in and reduce the incidence of these events construction, commissioning, operations the UK is regulated by the Office for The EPR design process has evolved further are continuing. In 2013, we had and decommissioning. Nuclear Regulation (ONR) under the specifically for the HPC Project. It no such events. Nuclear Installations Act (NIA). This has a incorporates outcomes of the Generic Our ‘Nuclear Baseline’ provides a standard set of 36 conditions which are Design Assessment process to reduce statement of what competencies and Collective radiation exposure attached to all nuclear site licences. The any future design risks. Our processes capabilities our organisation needs, both NIA places the responsibility for the safety We operate strict procedures to minimise have been set up to ensure safety leads now and in the future. We use this of a nuclear installation on the licensee. and control the radiation doses received the design of HPC, and that it includes statement to check, report and test our Many of the licence conditions require by employees and contractors at all of specific milestones for safety case resilience as an organisation. As part of the licensee to ‘make and implement our nuclear power stations. Any worker production and agreement to enable our approach, individuals undertaking adequate arrangements’ to control some required to enter a radiological controlled major construction activities. To date, the work that has the potential to impact aspect of risk. area is issued with an electronic personal first version of the safety case has been nuclear safety must be demonstrably dosemeter. This measures radiation dose issued and the early milestones have competent to undertake the work they Trust and Transparency and warns the wearer if pre-determined been met. are assigned. We also work closely with dose levels are exceeded. our supply chain to ensure that suitably In line with our commitment to trust You can find out more about our qualified and experienced persons are and transparency, and in support of Simulator training facilities, procurement progress at EDFEnergy.com. available and ready to undertake work EDF Group’s listing on the FTSE4Good and use of improved equipment, coupled safely on our behalf. Index, we also publish disclosures in line with a highly trained and experienced Open reporting culture with the FTSE4Good Nuclear Criteria. workforce resulted in better than We have continued to manage our A fundamental part of our nuclear safety This provides information on our nuclear anticipated improvements in 2013. organisational capability resilience culture is the development of an open safety, security and radioactive waste through 2013 in line with our project reporting culture – one that supports policies, management systems and Delivering new plant design workload. We regularly share information continuous learning and improvement. performance over the last three years. which meets the safety case on this across our business and with We have established processes to support and project milestones our regulators. For further information, please visit this and continue to monitor the level of Our Journey Towards Zero Harm. Building a new European Pressurised open reporting, as well as the timely and Reactor (EPR) at Hinkley Point C (HPC) effective resolution of issues, across our in Somerset is a complex project – one nuclear business. This has seen reporting in which it is imperative for nuclear levels maintained in line with project Nuclear safety is our safety to be central to our processes activity and an improvement in resolution of any issues raised. overriding priority.

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 53 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth > To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance To empower our people to be a force for good

Long-Term solutions to radioactive waste

Repository site selection Radioactive waste policy is a “reserved Repository design Funded Decommissioning issue” for the Scottish Government. In Programme (FDP) The government’s process for the Progress continues to be made with 2011 the Scottish Government set out development of a deep geological the technical planning of the repository, Our proposed FDP arrangements for their position on Higher Activity Wastes repository to store nuclear waste is based although development of the detailed Hinkley Point C are now close to being (HAW) stating that they do not support on developing a partnership with local design will depend on the selection of a finalised with the government. We hope deep geological disposal. communities who volunteer to explore specific site. In parallel, the Radioactive to formally submit them for approval in the implications of hosting a repository. The Scottish policy for HAW is long Waste Management Directorate, part 2014. The FDP will be a legally binding Such a partnership has been operating term storage or disposal in near-surface of the Nuclear Decommissioning document setting out the legal, financial with the West Cumbrian community facilities. Facilities should be located Authority (NDA), continues to work on a and technical arrangements associated since 2009. as near to the site where the waste is robust technical programme to address with Hinkley Point C. It will ensure that produced as practicable. Developers will knowledge gaps arising from their design sufficient money is set aside over the In January 2013, after a Cumbria County need to demonstrate how the facilities and safety assessment work. operating lifetime of Hinkley Point C to Council vote against continuing, the will be monitored and how waste meet the full costs of decommissioning current repository site selection process We are a member of the Geological packages, or waste, could be retrieved. and our full share of the costs of waste in Cumbria was brought to a close. On Disposal Facility Users’ Group. This management and disposal. 31 January 2013, the Department of The Scottish Government policy impacts was set up by the NDA’s Radioactive Energy and Climate Change (DECC) HAW which will arise during the Waste Management Directorate to keep issued a Ministerial Statement from the decommissioning of the Torness and organisations that may need to use Secretary of State, Ed Davey, recognising Hunterston B power station sites of the a geological disposal facility for their this situation. The statement also EDF Energy Generation power station fleet. future waste informed on progress. confirmed that government policy on We participate in this group to make The Scottish Government is now the development of a repository was sure any future GDF meets the needs developing a strategy to enable the HAW unchanged and that the Cumbrian of our industry safely and securely. Policy to be implemented. A Project Board, decision does not undermine the chaired by the Scottish Government and prospects for new nuclear power stations. Packaging of radioactive comprising representatives of the Scottish wastes for disposal A ‘Call for Evidence’ ran in May and Government, regulators, Local Authorities June 2013, followed by a consultation and the main waste producers of HAW In our Nuclear New Build business, from September to December 2013. This in Scotland - including EDF Energy - has we continue to work with the NDA to sought views on proposals about how been formed. demonstrate how radioactive wastes aspects of the site selection process from our new build sites will be safely for a Geological Disposal Facility (GDF) and securely disposed of. We obtained a could be improved. This should then help Conceptual Letter of Compliance for the communities and local authorities engage disposal of Intermediate Level Waste from in the process with more confidence and the NDA in 2012. We are now working ultimately help deliver a GDF. to progress the assessment from a conceptual stage through to a final stage DECC published all responses and a short assessment to support active operations. report on this in February 2014. A revised siting policy is expected to be published later in 2014.

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 55 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity > To achieve strong financial and ethical performance To empower our people to be a force for good

Doing the right thing by everyone “EDF Energy has been using the United Nations Global Compact (UNGC) to be more environmentally and socially responsible in all that we do and buy. We have also been working proactively with suppliers to improve our supply chain. For example, we got an independent report on the workplaces and pay from our supplier’s factories for the Zingy Christmas Baubles we sent to customers last year. It’s about more than reputational risk – it’s about doing the right thing by everyone in the supply chain.”

Lucy Dagg, Marketing Operations Communications Executive

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 57 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity > To achieve strong financial and ethical performance To empower our people to be a force for good

We will make strong and Our approach trusted financial and ethical We provide an essential service important contribution to the UK as a performance central to how to society and need to do this in whole through tax, employment, and a responsible way. This is why we investment in the country’s low-carbon have an ambition to achieve strong energy supply and infrastructure. we do business – providing financial and ethical performance. How we conduct our business, and our We have deliberately made this impact and influence through our wider central to how we do business. It an essential service in a supply chain, is equally important. We are means we can be a better kind of using standards like the United Nations energy company – one that thinks responsible way. Global Compact (UNGC) and DEFRA long-term and does business fairly, Sustainable Procurement Framework to openly and ethically. We’ve strengthened our ambition by adding a clear commitment to strong help focus and improve our performance. ethical performance – how we manage our business and our supply chain. For our financial performance, this means In line with our parent company’s This ambition also has a focus on transparency and honesty across our making sure that we are transparent and Corporate Responsibility Commitments, financial activities. It’s all about a responsible long-term approach to our honest in our approach and in how we we also refuse to tolerate any fraud, whole business. communicate what we do. Specifically, corruption or abuse of human rights. it means bearing down on costs across This is reinforced through our Code our operations, investing our profits of Conduct and Corporate Social Our key targets wisely, and continuing to demonstrate a Responsibility Agreement. responsible and honest approach to our Focus Goal Targets tax management. This puts the customer first, ensuring fair value and making an Value long-term Strong financial We will challenge costs across our performance performance: We will operations and achieve a long-term over short-term ensure a transparent and return on capital which is at least in opportunity to honest approach to our line with our cost of capital build a sustainable financial performance and responsible We will invest our profits to benefit business our customers, our people and our business, while striving to have a positive free cash flow

We will continue to demonstrate a responsible and honest approach to our tax management

Strong ethical performance: We will maintain a UNGC compliant “Openness, honesty and ethical We will ensure sustainable, supply chain and show continuous behaviour, with a focus on long- ethical practice across improvement aligned to the our supply chain and principles of the DEFRA Sustainable term performance, will guide our our business, and refuse Procurement Framework approach to doing business. Our to tolerate any fraud, corruption or abuse of performance will inspire confidence, human rights build credibility, ensure commercial success and establish trust.” Simone Rossi, Chief Financial Officer, Finance

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 59 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity > To achieve strong financial and ethical performance To empower our people to be a force for good

Strong financial Strong ethical performance performance

Headlines from our financial Our investment in our existing nuclear A sustainable and responsible business United Nations Global Compact (UNGC) performance in 2013 are given in our power stations resulted in their best does things the right way, not at any – a strategic initiative for businesses that ‘Performance at a glance’ table on performance for eight years and we cost to society or the environment. specifically focuses on human rights, labour, page 9 of this report. In addition, you believe that their operating lives can Encouraging a culture of openness, environmental issues and anti-corruption. can read more about our results on be safely extended – for example, we integrity and accountability as part of During 2013, we continued our work in this the EDF Energy website and see more expect to be able to confirm a 10-year this promotes good business practice and area, engaging new suppliers to our business about the performance of EDF Group life extension for our Dungeness B station positive behaviour. This is reflected in and making further progress in assessing as a whole on the EDF website. before the end of 2014. This means our focus on ethical business through our and developing our existing supplier base. existing nuclear can hand over directly Better Energy Ambitions. In 2013, EDF Energy’s operating profit Our process involves sending our suppliers a to the next generation of nuclear power (‘EBIT’) was £863m. In 2012, we reported At EDF Energy, our Ethics and Business questionnaire linked to the risk associated with stations without the need for more fossil our operating profit as £801m. This Conduct Policy sets out our standards for their categories of supply across the four areas fuel generation. included the impact of a one–off charge upholding ethical business practice and covered by the UNGC categories. We look at of £190m relating to the value of EDF Our customer numbers also continued demonstrates our commitment to working the supplier’s response and, depending on the Energy’s gas generating assets. This to grow in 2013. We took early action to with integrity. By that, we mean being honest category of supplier, we then follow up any means our underlying profitability was limit price rises and will continue to work and transparent about our operations and identified non-compliances. 12.9% lower in 2013. closely with policy-makers to bear down performance. The policy also establishes For suppliers classed as low risk, we issue on rising costs for consumers. You can how appropriate and expected standards of We reinvested all of our operational profit, them with a practical guide providing find out more in the Customers section of behaviour will be set and communicated to and more, back into our business. As further information about the UNGC and this report. our people. part of this, we invested over £1.1bn on our assessment process. This also identifies existing nuclear and coal stations, our Making a fair return on the investments To supplement the policy, we provide practical steps they can take to demonstrate new nuclear project, new generation we have made is essential if we are to guidance to our people on a range of issues, compliance. For our more strategic or critical capacity, gas storage facilities and our be able to keep the lights on now and including confidential reporting of serious suppliers we assign a UNGC Development customer supply business. Over the last invest in a low-carbon future for the concerns, equal opportunities, gifts and Action to the category buyer responsible for three years, we have reinvested around UK. As part of this and to live up to hospitality and more. Our Code of Conduct managing the relationship with the supplier. £3.5bn back into the UK. our commitment to be transparent and sets expectations for those directly employed The category buyer then becomes responsible honest about our financial performance, by us and for temporary or agency workers. for discussing any areas of non-compliance As well as the significant investment, in we’ve made three key commitments We also run a confidential helpline that staff with the supplier. They work together to 2013 we also paid £300m in interest on finance as part of our Better Energy can use to report any concerns. identify any additional controls that the payments on loans, £114m in corporation Ambitions. We will report more on these supplier may already have in place or to tax, and £170m to repair the deficit in our We have used our Better Energy Ambitions each year in this report and on agree mutually accepted actions to achieve employee pension scheme. to make an explicit commitment on our website. compliance. refusing to tolerate fraud, corruption Our financial performance means we can or abuse of human rights. This applies In 2013, we engaged an additional 608 make the big investments the country across our business and our supply chain. suppliers in this way, completing an additional needs to give it the reliable low-carbon It also supports a goal shared by our 283 supplier development actions. This resulted energy it needs now and in the future. It parent company as part of the EDF Group in a compliance improvement of 91.5% (up also means we can invest in jobs and skills Corporate Responsibility Commitments. from 88.4% at end of 2012). for the long-term. This is not just about how we behave In 2014, our work will continue and we will be though – it is also about our supply exploring how we can comply with the UNGC chain and our impact on society and Advanced Level by 2017. Having a practical the environment through the goods and strategic approach to ethical performance Our underlying profitability and services we procure. Through our means we are better placed to be an energy former Sustainability Commitments, we company that everyone can genuinely feel began our journey on engaging our better about. was 12.9% lower in 2013. supply chain on the 10 principles of the

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 61 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance > To empower our people to be a force for good

Employee networks: Promoting inclusion and refining skills “EDF Energy’s Black, Asian and Minority Ethnic (BAME) Network is all about developing a better understanding of race and ethnicity issues among employees, customers and local communities – and then finding positive, inspiring ways to promote inclusion and help people refine existing skills or develop new ones. It’s always really satisfying to see people getting together and realising their potential.”

Donna Fraser, Smile Specialist (Health and Leisure) and Chair, EDF Energy BAME Network

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 63 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance > To empower our people to be a force for good

We will inspire and enable our Our approach people to perform as a ‘force At EDF Energy, our people are the As a sustainable and responsible business for good’, driving progress ones who make our business great. we are also mindful that our duty is not Their passion, commitment and just about the kind of planet we leave enthusiasm underpin everything we our children, but also about the kind of at work and across the do – at work and in the communities children we leave the planet. So, we are that we are part of. So, we are doing also helping the next generation develop communities we serve. everything we can to help our people the skills they will need for the future succeed in their roles at EDF Energy in science, technology, engineering and We want to empower our people to be a force for good. This means creating and make an active contribution to mathematics. We are preparing them for a truly inclusive EDF Energy where everyone can be themselves and achieve the places they live and work in. That some of the sustainability challenges they their best, providing the skills and opportunities for our people to achieve means creating the right working will face along the way too by educating great things at work and in the community, and inspiring and preparing the environment, the right opportunities and engaging them on energy, science next generation to join our journey. and the right skills for success. and sustainability through initiatives like our award-winning schools programme, We invest in training, skills, diversity and The Pod. Our key targets inclusion and actively engage with our employees on what we do and how we All of this is central to our plan for Focus Goal Targets do it. We believe that motivated, inspired a sustainable business. We call it employees deliver a better service for empowering our people to be a force Inclusion Create a truly inclusive EDF Achieve the National Equality Standard customers and more innovative solutions for good. Energy where everyone can by 2015 and year on year improvement for our business. Their energy and be themselves and perform in Employee Engagement Survey scores achievements then also help us to their best for inclusion attract the most talented people into our company. Skills Give our people the skills By 2018, all of our people will have they need to achieve great experienced our Campus network and performance across our used this experience to tangibly improve business, and inspire the their performance and productivity at work next generation to join our journey By 2018, 50% of our new apprentices and graduates will have been inspired to join our business as a result of taking part in our Future Capabilities and Science, Technology, Engineering and Mathematics (STEM) programmes “We will build a world-class training Communities Enable our people to By 2020, we will have achieved achieve great things in industry-leading levels of employee network and culture of inclusion to the communities we participation in our Company Makers help our people achieve their full serve, and prepare the and volunteering programmes (2016: next generation for the 15%; 2020: 20%) potential and work as a force for sustainability challenges good in the community. We will lead they face We will continue to work with over 50% of all schools in the UK on energy, on building skills and inspiring the science and sustainability, increasing their engagement with our sustainable next generation.” schools programme by 20% by 2020 Janet Hogben, Chief People Officer

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 65 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance > To empower our people to be a force for good

Creating a truly Skills: Investing inclusive EDF Energy in our people

We believe that a culture of Our approach towards diversity and We also work closely with Business A sustainable business relies on inclusion forms the basis of a truly inclusion is reinforced by our employee in the Community as members of developing and retaining high- sustainable business and is vital to networks – our Black, Asian and Minority their Race for Opportunity and performing people. So we have shaping a strong and fresh-thinking Ethnic (BAME) Network; Disabilities and Opportunity Now campaigns, helping continued to invest heavily in training organisation. We recognise that Carers Network; Lesbian, Gay, Bisexual to improve opportunities for ethnic and development across our business, people perform better when they and Transgender (LGBT) Supporters minorities and drive gender balance including through our own Campus can be themselves – they can better Network, and Women’s Network. These in the workplace respectively. Project which we have made a focus focus on their role, developing their provide a platform for our people to in our Better Energy Ambitions. We are committed to building on our potential, and important issues connect as a community, share ideas, position as a Diversity Champion with Campus is an investment in the future of like the safety and wellbeing of support one another and help us improve Stonewall, the UK’s leading Lesbian, Gay our business – an integrated network of themselves and their colleagues. as a company where opinions and and Bisexual charity, too. Our aim is to be learning, development and knowledge So a working environment where difference are valued. In 2014, we plan the first major energy company in the Top sharing that will reach every corner of EDF people know and feel that they ‘fit to launch a fifth employee network – a 100 of Stonewall’s Workplace Equality Energy. At the heart of Campus is a £15 in’ and are accepted for who they Working Parents and Families Network. Index. We are also proud supporters of million project redeveloping the historic are is crucial. To help us build on our success so far, Brighton Pride and our active employee Cannington Court in Somerset. This will We recruit from the widest possible we work in partnership with a range of network supports all of our people on become our Campus Management and pool of talent and assess every organisations. For example, our work LGBT issues, whatever their background. Skills Training Centre. Cannington Court potential employee against our four key with the Business Disability Forum, will connect people, bringing us closer In 2012, we were proud to be one of only behaviours: Integrity, Inclusion, Inspiration sponsoring the Great with Disability together as one company with strong four companies to achieve the Diversity and Impact. Their unique perspectives not site and working with the Graduate shared values, and be a base from which Works for London Gold Standard for our only give us a better understanding of Recruiter’s Disability Café Club gives us a to develop the skills we need for now and approach to Diversity and Inclusion – a customers from all walks of life, but bring better understanding of how to build a for the future. nationwide assessment that supports fresh ideas to our business on all aspects more accessible EDF Energy. businesses in realising the benefits of Campus is more than a physical training of how we work. diversity in the workplace. centre though. As part of the Campus programme, we will work with skills We built on this success in 2013, when bodies to develop new qualifications to our BAME Network won the prestigious deliver skills need for a low-carbon UK. Employee Network Award at the In 2014, Campus will also launch Business in the Community 2013 Race through our regional training centres for Opportunity Awards and when we and as an innovative online learning received the award for diversity and hub – MyCampus. inclusion at the 2013 Personnel Today Awards. We were also delighted to win You can find out more about Campus the 2013 private sector Diversity and on our website. Inclusion Award from the Employers Network for Equality and Inclusion (ENEI). Looking forward, we have set an ambitious target to achieve the National Equality Standard by 2015, the next stage in our diversity and inclusion journey.

August 2013 - EDF Energy’s Chief People Office, Janet Hogben, opens Bexleyheath Training Centre - part of our Campus August 2013 – Brighton Pride. network.

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 67 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance > To empower our people to be a force for good

Skills: Investing in future capabilities

To support our substantial investment We were thrilled in April 2013 when two We continue to work outside our –– Along with the Institute of Physics, plan in the UK, we expect to recruit of our apprentices won awards at the formal work placement programmes we arranged a ‘Lab in a Lorry’ visit to nearly 4,000 talented employees from COGENT UK Nuclear Skills Awards. Five to build interest and skills in Bridgwater College Academy for 150 2013 to 2016. This ambitious plan will years in to their careers at EDF Energy, science, technology, engineering Year 9 students in September 2013. only be possible if we can successfully Hunterston’s Paul Donohoe and Heysham and mathematics (STEM) too. For Students swapped their classroom for work with our stakeholders to build 1’s Damien Murphy were crowned example: a lesson delivered from the mobile the science, technology, engineering, Scottish Apprentice of the Year and North laboratory and had the opportunity –– Over 400 school children from across mathematics and wider skills base West Apprentice of the Year respectively. to explore science though specially Kent were treated to a science and in the UK. Both were among the first EDF Energy created interactive experiments. The visit maths ‘festive extravaganza’ in apprentices to join the scheme at followed a three month sponsorship by In 2013, we continued our successful December 2013 when we helped HMS Sultan. EDF Energy earlier in 2013 where the programmes on apprentice training, the annual LabLive Lecture come mobile lab hosted 2,700 students from industrial placements, and graduate Our graduate scheme has remained to Romney Marsh. The event gave 14 Somerset schools. recruitment. an excellent source of new recruits – in students the opportunity to experience 2013 we recruited 58 graduates across ‘spectacular science’ and understand –– We are also the principle sponsor of Our latest group of 55 nuclear the company. We also ran 58 industrial the benefits of studying STEM subjects the Cheltenham Science Festival and apprentices began their new careers at placements and 68 intern positions in 2013. at GCSE. The free LabLive shows have the Generation Science programme EDF Energy with a team-building week in amazed around 1,000 Key Stage 3 in Scotland. We have supported The the Lake District in September 2013. The Working in conjunction with Bridgwater pupils with two hours of ‘entertaining, Times Cheltenham Science Festival for week was the culmination of a testing College in Somerset, we funded the inspiring and mind-expanding science’ 11 years and are principal sponsors of recruitment process for the Engineering development of a new construction skills since it started in 2011. its Science for School’s programme, Maintenance Apprenticeships Scheme. centre, which was opened by Ed Davey, which offers 16 educational lectures the UK Secretary of State for Energy and We are now in process of recruiting and 37 interactive science workshops Climate Change, in March 2013. apprentices for the year ahead. Our 2014 for student visitors. scheme will see 50 apprentices join our We have also invested £1.6 million in four-year scheme which, for the first West Somerset Community College, “The investment in West Somerset Community College and the support two years, takes place at HMS Sultan – a with a significant proportion to be world-class training centre in Portsmouth. focused on apprenticeships. given by EDF Energy have been a catalyst for transformational change The apprentices will return for on-site in the college provision and in its ability to change the lives of the young In addition, we have created an training for the final two years. people and adults of West Somerset. employment brokerage scheme with Job Centre Plus to help match people to Young people can choose from a wider variety of skills training and the significant number and range of job academic STEM-related provision. In addition, the facilities and capabilities opportunities which will be generated have resulted in a significant number of unemployed candidates by our project to build two new nuclear engaging with skills interventions that have led directly to work or further reactors at our site in Hinkley Point, Somerset. Construction will potentially engagement in training. We are particularly pleased that three of our provide 25,000 jobs, whilst operation of candidates have been employed by Laing O’Rourke. the new station will create 900 future jobs. Business engagement through upskilling the workforce, as well as apprenticeships and traineeships, has gained positive momentum. The developments so far have been inspirational and hugely motivational to the team of staff involved with supporting the range of activity on offer. The college feels privileged to be able to play its part in this unique project.” Marguerite Bowden, Vice Principle Head of Further Education and Enterprise, West Somerset Community College

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 69 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance > To empower our people to be a force for good

Communities: Volunteering

Sally Cottrell (left), Community Enabling our people to achieve –– Building on the success and spirit of the Investment Manager, EDF Energy great things at work and in the London 2012 Olympic and Paralympic with Lucy Caslon (right), Marie Curie Cancer Care, Senior Corporate communities we serve means giving Games Maker volunteers, we launched Account Manager. them the opportunities to step out our own internal ‘Company Makers’ of the day job and make a positive programme. Around 300 employees difference to the world around them. (former Games Makers, Torch Bearers This develops skills, builds pride and or Sustainability Stars from 2012) took engagement, and benefits customers part in this pilot programme that gave and communities. them the opportunity to volunteer on activities linked to our business strategy. In 2013, we reviewed our approach to This included our Bringing Nuclear to volunteering and set some specific targets Life programme, Diversity Day activities, to help us achieve industry-leading levels charity partner launch and more. Based of volunteering over the next few years. on the success of this programme, we We will report formally on our progress have opened Company Makers up in 2014/15. In the meantime, we have to all of our employees in 2014 and continued to build on our practice to date structured the opportunities we offer in a number of ways: around our Better Energy Ambitions. –– Our Helping Hands programme allows This will provide unique opportunities all of our employees to spend up to for our people to gain knowledge, –– Following a company-wide vote in hospices, and raise awareness of the two days of work time volunteering develop new skills, increase their profile which 7,000 employees took part in work and services it offers. Our goal in the community each year. across the company, and make a December 2012 / January 2013 to select at the start of the partnership was for Volunteering can be done individually positive difference to our business and our new charity partner, we launched employees to raise £100,000 each or as team and can support charities, our culture. our new three-year partnership with year of the partnership which EDF schools or community organisations Marie Curie Cancer Care in May 2013. Energy would match fund to a total on social, environmental and We are working together to raise vital of £300,000 over the three years. educational projects. funds for the charity which provides free The partnership has surpassed all practical care and support to people expectations with employees raising suffering from terminal illness, either over £182,000 to date. With £100,000 at home or in one of the charity’s nine of match funding, this is enough to fund hospices. Working with the charity, 14 Marie Curie nurses for a year. we are also using our expertise to help improve the energy efficiency of their

“We are delighted to be working in partnership with EDF Energy. Since the partnership launched on May 1st 2013, an astonishing £282,000 has been raised during the first 10 months of the partnership. This is enough to fund 14 Marie Curie Nurses for a year, and we are very excited to see how the partnership progresses in 2014. With the Three

Chris Hammill from EDF Peaks Challenge, and an energy efficiency project at our hospices, it Energy Nuclear New Build promises to be a very good year.” leading his Helping Hands group digging the garden at Hampstead Hospice. Lucy Caslon, Marie Curie Cancer Care, Senior Corporate Account Manager

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 71 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance > To empower our people to be a force for good

Communities: Volunteering (Continued)

–– The partnership with Marie Curie As a result, the BPA achieved a Cancer Care follows on from our world-first, with the ParalympicsGB previous highly successful three-year 2012 preparation camp in Bath charity partnership with the British becoming the first event of its kind Paralympic Association (BPA) between to receive a global gold accreditation 2010 and 2013. The BPA is the charity for sustainability from the Council responsible for selecting, preparing, for Responsible Sport. This was funding and managing Great Britain’s announced in January 2013. In March teams at the Paralympic Games and 2013, we announced that we will also supports disability sports at grass continue to work with the British roots level. During the partnership, EDF Paralympic Association as part of a Energy and its employees raised more four-year sponsorship deal with the than £650,000 for the BPA, exceeding organisation and ParalympicsGB. This the initial fundraising target. We also will see us support ParalympicsGB worked with the organisation to reduce through to Rio 2016. its environmental impact through its ‘Greening the Team’ initiative.

“Having worked together so successfully with EDF Energy through the London Games, including to support our world-first sustainable training camp in Bath, we are delighted to have renewed the partnership for another four years through to Rio 2016. We have a proud record of success in both the Summer and Winter Paralympic Games, having recently returned from Sochi 2014 with a record medal haul. The achievements of our athletes, and the world class back-up services provided by the wider ParalympicsGB team, are only possible because of the support we receive from partners like EDF Energy who share our values and our ambition not only to win on the field of play but through that inspiration have a wider impact on society and attitudes to disability.”

Tim Hollingsworth, CEO, British Paralympic Association (BPA) Caption to come here

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 73 Delivering our plan for a sustainable business At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary To Achieve Zero Harm To be the Best and Most Trusted for Customers How are we doing? To power society without costing the Earth To deliver safe, secure and responsible nuclear electricity To achieve strong financial and ethical performance > To empower our people to be a force for good

Communities: Schools and education

EDF Energy’s Claire Coulston, Lucy The Pod is our award-winning We work closely with a number of Brown and Jane Williams sharing our sustainable schools programme – it partners on the Pod, including: sustainable schools programme at now reaches 50% of all schools (over Cheltenham Science Festival in 2013. –– The British Science Association who 18,000 schools) in the UK. champion access, engagement and Established in September 2008, the Pod ownership on science to people from was founded on a concept of ‘learn, all walks of life. act, inspire’ to engage young people –– Eco-Schools, an international in energy, science and sustainability. It programme that guides schools on provides free curriculum-linked resources their sustainability journey by providing and runs campaigns to teach young a framework to embed this into the people (aged 4 – 14) about these issues, heart of school life. empower them to act on their learning, and enable them inspire others with –– The Meteorological Office who are their achievements. world leaders in climate science. Our programme provides a wide range of –– Wastebuster, an environmental resources for schools including lesson and education programme that supports assembly plans for different age groups, teachers to creatively explore waste in practical activity guides, films, games the curriculum, and helps children work and resources linked to campaigns such towards creating sustainable schools, as the Pod’s Waste Week and Switch Off homes and communities. Fortnight. Pod campaigns are designed to In addition to its annual Waste Week help get the whole school, parents and and Switch Off Fortnight campaigns the local community engaged in living in 2013, the Pod, Wastebuster and more sustainable lifestyles. Building on our success so far, we Commission. This made EDF Energy one the British Science Association joined launched a ground-breaking initiative in of only three UK companies recognised Since September 2008, the Pod is forces to launch a new campaign, January 2014 through the Pod to inspire in the awards. The Pod’s Waste Week estimated to have engaged over 10 ‘Science in Schools’. The campaign over 100,000 children, their parents recycling film, produced in partnership million young people on energy, science combines environmental education and teachers to participate in a series with Wastebuster, was also Highly and sustainability. It also now reaches about waste and climate science with of mass participation experiments that Commended in the Environment Award 138 schools in 30 different countries. a textile recycling programme. Schools tackle real scientific questions. The‘Great of the 2013 TVE Global Sustainability and community groups can exchange EDF Energy Experiment’ is a five-year Film Awards at a ceremony held at the unwanted clothing and textiles for free programme run in partnership with the BAFTA headquarters in London. Our resources and equipment to get children British Science Association. The first programme also received a Big Tick “EDF Energy’s Sustainable Schools Programme the Pod had excited about science and engineering. experiment is called the Big Bumblebee award from Business in the Community ambitious targets in 2008 to engage 2.5 million children Schools book a collection and encourage Discovery and will run throughout and was shortlisted for a BITC by 2012. The EDF team should be rightly proud of meeting everyone to donate unwanted textiles for summer 2014. We will report more on Responsible Business Award in 2013. those targets two years early. The programme has now recycling. These are collected, weighed this through the year ahead. This reflects considerable commitment and the school then receives points and passion from the EDF Energy engaged with over 50% of UK schools and engaged 10 In 2013, we were thrilled when the Pod for the recycled textiles that can be team behind the Pod and from all of million school children. We’ve really enjoyed helping the was awarded a Highly Commended exchanged for science equipment. In our partners, friends of the Pod and Pod team and are looking forward to doing more work award in the first ever European CSR 2014, we plan to expand the programme everyone taking part in the programme Awards, funded by the European together to help young people understand climate science.” to EDF Energy offices and other Pod for which we are very grateful. Rob Varley, Meteorological Office Operations and Services Director partners.

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 75 Civil Society Dialogue At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary > Civil Society Dialogue Stakeholder Advisory Panel Statement Assurance Statement

Focus on a key 2013 Panel Recommendation EDF Energy Action challenge: Civil society dialogue – report back Whilst EDF Energy can reasonably We believe that EDF Energy has a very powerful story to tell about what we The safety and security of our sites is Over the summer of 2013, consideration claim to be the most committed are doing to address the important issues of emissions, decarbonisation and central to EDF Energy being able to was given to practical steps that could be of the large energy producers to climate change. We are the UK’s leading supplier of low-carbon energy, successfully deliver secure energy to taken to minimise the risk of disruptive or low-carbon energy production and have always put sustainability at the very heart of our business. our customers, whilst ensuring Zero dangerous protest, including how we can and sustainability, this does not preclude it from being a target for The fact that we have made great efforts to respond to sustainability Harm to people. better develop an open and constructive challenges is recognised by many commentators and other stakeholders. dialogue with objectors. Following protest. Therefore more should This issue came to the fore in October Nonetheless, we accept that being clear about what we are doing in this area discussion with a number of stakeholders be done to ensure that protestors 2012 when a number of climate change should be a priority. Will Hutton’s report is a timely reminder that we must across industry, media and politics, as know about the character of EDF protesters from the ‘No Dash For Gas’ communicate what we are seeking to achieve to all relevant groups. well as environmental campaign groups, Energy, and a clear vision of its role environmental protest group breached In order to do this, we will: a report was presented to EDF Energy’s in a sustainable future should be the perimeter of our new Combined Stakeholder Advisory Panel, which articulated more consistently. Cycle Gas Turbine power station at ––Review how we report our annual performance against our included several recommendations for us West Burton. ambitions, in order to better engage our stakeholders and encourage to respond to. two-way dialogue. Considerable disruption was caused and The report and its recommendations were the plant was temporarily shut down for ––Work with external partners to ensure that our story as a business reviewed and approved unanimously – safety reasons. Following the arrest of is told in a simpler, more accessible way. We recognise that we cannot both by the Panel, and by EDF Energy. the protestors, we pursued legal action, expect all stakeholders to understand our business in our terms. Since then we have implemented a including a civil claim for damages of number of the recommendations, whilst ––Maintain our existing strong relationship with Business in the £5 million. The decision caused others are in progress. The table opposite Community in order to better engage business stakeholders in a considerable outcry – not just from sets out what we have done so far and conversation about our energy future. environmental campaigners, but also the actions that we are taking over the ––Invite third parties into EDF Energy in order to see first-hand how our from the wider public, customers and coming months. business works, and to communicate this back to the public in a meaningful, some of our key stakeholders. understandable way, as part of our strong commitment to transparency. To review a full copy of this report please In light of this, we sought to identify visit Civil Dialogue. how we might better address the issue of protest at our sites in the future. We EDF Energy should take steps not EDF Energy strongly supports the principle of open dialogue. therefore asked Will Hutton – then Chair only to engage with environmental Therefore we have committed to establishing an annual dialogue with of our Stakeholder Advisory Panel – to campaigners, but actively to representatives of the environmental and social movement (including lead a dialogue, the aim of which was facilitate discussion. Serious sustainability organisations, NGO s and protest groups) based around our to establish what protocols should guide consideration should be given to sustainability report. EDF Energy’s response to such situations the establishment of a forum for We will invite feedback on our report and use this to help identify key in the future. Will Hutton was supported discussion between EDF Energy issues that our environmental and wider stakeholders would like to talk to by fellow Stakeholder Advisory Panel and the environmental movement. us more about. Working with our stakeholders, we will then review how member Tamara Ingram, with legal EDF Energy should take the lead best to engage further on those specific issues and identify where any counsel provided by Ingrid Simler QC. in establishing this, and should facilitate it on an ongoing basis. further collaborative working may help. The process will be overseen by our Senior representatives of EDF Energy Sustainable Business Panel – which will now include representation from should be involved to demonstrate external sustainability partners as well as our own senior management. that the company is serious about We also want to ensure that sustainability is at the heart of our Stakeholder meaningful, open dialogue. Advisory Panel who provide our senior leadership team with independent advice and challenge. Therefore as we review the membership of our Stakeholder Advisory Panel, we are ensuring that specific environmental expertise and sustainability knowledge are key considerations in the selection of Panel members.

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 77 Civil Society Dialogue At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary > Civil Society Dialogue Stakeholder Advisory Panel Statement Continued Assurance Statement

Panel Recommendation EDF Energy Action Panel Recommendation EDF Energy Action

The twin objectives of sustaining Following the protest at West Burton, we reviewed our site security Steps need to be taken to review Protest situations present a number of complex challenges, and we recognise electricity supply whilst respecting arrangements and strengthened them. how the company responds the need for a clear and coherent response. Above all, we accept the report’s the right to lawful protest need to internally and externally in the event comments about the need for seamless communication between different be reconciled. The best practical Whilst unlawful activity is a matter for the police, we recognise the legitimacy of a site protest. This should include departments within EDF Energy at times of protest. response the company can offer is to of lawful protest. Therefore we are looking to transfer learning from scenario planning, clearer sign-off ensure that its sites are secure and, successful practice at our Hinkley Point site to our other sites. processes, improved negotiation To address this, we have established, for the purposes of any potential in the event of unlawful protest, work with protestors, and/or disruption at our sites, a dedicated protest response team. The team At Hinkley Point, we established a Protest Liaison Team to act as an is project managed by one individual, includes representatives from all take and support whatever steps intermediary and conduit of information between protest organisers and EDF the establishment of a dedicated are required to regain control of its ‘protest response’ team. key departments – including operations, legal and communications – and Energy. We also demonstrated our willingness to facilitate lawful protest by has clear reporting lines in place. We have also reviewed and tightened property. As well as discouraging providing amenities to protest groups. unlawful protest, it should actively Furthermore, protocols should internal communication procedures, for example sign-off processes. encourage lawful protest. We will now establish how to use this experience at our other sites around be established to ensure that all The result will be better joined-up thinking, so that we stand ready to the country so that what we do is more consistent across our operations. relevant parts of the business are respond – coherently – to any potential protest. kept fully appraised in situations such as that at West Burton. We recognise that during protest situations it is vital that all EDF Energy staff are kept informed. We will therefore build on and better utilise our EDF Energy should consider a new EDF Energy commissioned an external review of our use of social media strong, existing internal communication structures to share information set of guidelines and protocols on during the West Burton protest, which set out a number of recommendations quickly and efficiently, such as our senior leader updates, intranet, all- the use of social media in protest that are aligned with those in Will Hutton’s report. We are now acting on employee emails and internal social media. EDF Energy does not work in situations. The company’s position these recommendations, and much of the work is already underway. isolation: we have a number of partnerships and joint ventures, so will – whatever that may be – must be also take steps to ensure that our partner companies are kept fully articulated to reach a wide audience, ––We are working to create a set of crisis communications key principles, informed of our position during protests. and more must be done to engage which will underpin the way we utilise social media during a crisis. with the public online. ––We will brief social media teams with crisis classification details, to enable those working on the channels to understand what is expected of them and who to liaise with, including escalation paths in the event of a crisis. ––We will establish process maps for teams working across social media, to enable a quick response to crises. ––We will develop a process to enable teams to measure and monitor social media activity through use of new, robust monitoring tools.

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 79 Assurance statement At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary Civil Society Dialogue Stakeholder Advisory Panel Statement > Assurance Statement

Independent Assurance – Interim Observations

DNV GL was commissioned to Here we summarise our observations and On the basis of the work undertaken so –– EDF Energy has now launched the undertake independent assurance we will provide a full assurance statement far, nothing has come to our attention ‘Better Energy Ambitions’, which are of the EDF Energy Sustainability for the Sustainability Performance Report to suggest that the data published supported by a range of quantitative Performance Report 2013, which once the remainder of the work is are materially misstated and that EDF and qualitative targets. These will is scheduled to be published in completed. This will include (but is not Energy has not properly collated and enable EDF Energy to show how mid-2014. limited to): consolidated data and other information. it is meeting its ambition to be a To date, we are not aware of any errors sustainable and responsible business Our assurance work is designed to gather –– Review of the current sustainability that would materially affect the overall and how stakeholder concerns have evidence with the overall objective of issues that could affect EDF Energy and consolidated company data. been addressed. As part of our providing moderate assurance as defined are of interest to stakeholders; review we will consider the extent to in AA1000AS (2008), which covers Key observations from the process so far: –– Interviews with selected directors which the ‘Better Energy Ambitions’ –– Evaluation of adherence to the and senior managers responsible for –– The EDF Energy Information represent an appropriate medium/ long AA1000APS (2008) principles management of sustainability issues Governance team continues to conduct term challenge, and how well these of inclusivity, materiality and and review of selected evidence to a thorough internal review process are supported by the planned data responsiveness (the Principles); and support issues discussed; which results in the collection and consolidation methodology, review, presentation of strong supporting validation and sign-off processes. –– The reliability of specified sustainability –– Review of selected areas within evidence for data and claims in the performance information. the ‘Better Energy Ambitions’, to Report. This remains an example of understand the process undertaken to EDF Energy are currently developing a best practice in the sector. develop the headline and supporting new performance website which will measures, as well as associated targets, –– EDF Energy continues to recognise that host their Better Energy Ambitions and including sample testing of related customer trust remains a challenge related performance data, This website Anne Euler performance information; for the industry as a whole. The “Our is scheduled to go live in June 2014. In Principal, DNV GL – Business Assurance challenges” section addresses this topic line with their commitment to publish –– Review of information provided to us April 2014 and other issues EDF Energy faced in performance data in a timely manner it by EDF Energy on its reporting and 2013. We recommend EDF Energy was agreed that the assurance would be management processes. should take a more balanced approach undertaken in two parts this year. The work undertaken so far includes: to reporting on its material issues This statement represents the interim throughout the Report. –– Review of supporting evidence for a observations based on the work sample of the highest materiality claims completed so far, which has focused in the Report; upon data and claims checking. –– Review of EDF Energy’s processes for gathering and consolidating data, and review of the evidence collected by EDF Energy’s Information Governance team to support these calculations.

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 81 Definitions and Glossary At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary

Carbon dioxide (CO2) CO2 Department of Energy and Climate Change Key measures include insulation and heating, with an Full-Time equivalent (FTE) Definition:Carbon dioxide is a colourless, odourless gas. It is (DECC) increased focus on more expensive and complex solid Definition:The FTE used for this measure is the average produced both naturally and through human activities, such as Definition:The carbon dioxide emissions from our wall insulation. number of FTE EDF Energy employees during the year. burning gas, coal, oil, and wood. generating plants are independently verified in accordance Employee Engagement Survey (MyEDF) High Performing People Index with the requirements of the EU Emission Trading. The CO2 avoided Definition:I n 2012, EDF Energy’s Employee Engagement Definition:The High Performing People Index is based on the emissions are divided by the total net generation from our Definition:Amount of CO2 that would have been emitted Survey was integrated into the first-ever EDF Group-wide percentage of favourable scores across a sub-set of questions stations and renewable assets. if the electricity generated by Nuclear Generation (by low or Employee Engagement Survey. Our Group Engagement model taken from our annual Group EDF Employee Engagement zero carbon methods) had been produced by the prevailing Company maximum individual radiation dose has three components: Survey. The questions used relate to topics on which high UK fossil fuel mix. Definition:We operate to strict procedures to minimise –– Loyalty – how loyal are your people to the organisation? performing companies are differentiated from the rest, and for and control the radiation doses received by employees and which comparative norm data exists. CO2 emissions from business travel (absolute and –– Involvement – what is their level of involvement with their contractors at all of our nuclear power stations. Any worker emissions per Full Time Equivalent - FTE) daily job? Intermediate Level Waste (ILW) generated (m3) required to enter a radiological controlled area is issued with Definition: Definition:The Intermediate Level Waste Indicator provided an electronic personal dosemeter which measures radiation –– Alignment – how clearly aligned are your people with the (1) Absolute – The annual total of CO2 emissions from our by EDF Energy is derived from the UK’s 2013 radioactive dose and warns the wearer if pre-determined dose levels are organisation’s strategy and leadership vision? company vehicles, car use for business purposes, and taxi, waste inventory produced by the Nuclear Decommissioning exceeded. Radiation dose is measured in units of milliSieverts rail and air travel 133,659 Group employees participated in the Survey, which Authority. It provides an estimate of the annual arising (mSv), and the legal dose limit is 20 mSv per year. The company (2) Per Full Time Equivalent (FTE) – The absolute emissions ran between 30th September to 25th October, 2013. The volume of waste that will be classified as Intermediate maximum individual radiation dose is the highest dose received divided by the average FTE of EDF Energy employees results were available at a Group-wide level, for each entity Level Waste at the end of the site’s life. The waste volume by an employee or contractor during 2013. during the year. and their subsequent levels, and benchmarked against the is given as a packaged waste volume based on the Nuclear Disposals of radioactive waste Energy Norm (world-wide energy sector) and for EDF Energy, Decommissioning Authority proposed waste package types. CO2 emissions from commercial buildings Low Level Waste (LLW) the UK Norm (all sectors). All Intermediate Level Waste is stored on power station sites (absolute and emissions per FTE) Definition:According to UK law, LLW is waste having a pending a national decision on final disposal. Definition: Employee numbers radioactive content not exceeding 4 GBq (gigabecquerels) (1) Absolute – The annual total of electricity and gas Definition:The number of EDF Energy permanent full and International Nuclear Event Scale (INES) per tonne of alpha, and 12 GBq per tonne of beta/gamma consumption measured via meters for EDF Energy office part-time employees by headcount, as of 31 December 2013 Definition:The International Nuclear Event Scale (INES) is activity. The data in this report is the volume of waste from buildings. For those buildings not managed by us, the and includes employees on maternity leave. Employees on a rapid alert system used for consistent communication of all of our nuclear power stations sent off site during 2013 to current landlord’s billing is used. The figures provided in career break are excluded. events across the nuclear industry. These are categorised be disposed of at the designated National LLW Repository our sustainability report will differ from those published by between Level 1, which is an anomaly with no impact on the near Drigg in Cumbria, incinerated at Hythe, or metal sent Fuel Poverty the Environment Agency as part of the Carbon Reduction safety of the general public or workforce, and Level 7 which for recycling at Lillyhall in Cumbria. In order to reduce the Definition:O ur vulnerable customers assisted by means of Commitment Energy Efficiency Scheme (the CRCEES). represents a major accident. overall volume of waste for disposal, there are a number of our discounted tariff are defined as those customers living CRCEES data has been produced for the purposes of treatments that are carried out on the waste prior to disposal, in or at risk of fuel poverty. The UK government definition Lost Time Incident Rate meeting the CRCEES scheme requirements only. As a for example shredding or compacting. of a household in fuel poverty is one which spends more Definition:The Lost Time Incident (LTI) rate is the number consequence the scope and reporting metrics are not the than 10% of their net income on gas, electricity or other of lost time incidents per 1,000,000 hours worked. Lost Time aligned with our Sustainability or Financial Reporting of EBIT fuels in order to keep warm. This in turn is defined using Incidents are defined as the number of workplace accidents EDF Energy or any of the EDF Group of companies. The Definition:Earnings Before Interest and Tax. the World Health Organisation definition that in order to that lead to a day or more off work. A day represents the next consumption for gas and electricity is converted from EBITDA keep warm, a home should be heated to 21 degrees in the full working day following the accident. The measure covers all Kilowatt Hours (KWh) to CO2 using defined conversion Definition:Earnings Before Interest, Tax, Depreciation and lounge and 18 degrees in all other rooms. It is our assumption staff – employees, agency and contractors. factors published annually by Department for Environment, Amortisation. that households living on income support or pension credit Food and Rural Affairs (DEFRA). The emissions are then Nitrogen Oxide (NOx) emissions benefits are very likely to be spending more than 10% of their divided by the average Full-Time Employee of EDF Energy Energy Companies Obligation (ECO) Definition: The emissions of NOx from all of our power income on energy bills. The discounted tariff, Energy Assist, employees during the year to provide a normalised Definition:EC O is a new, supplier only obligation replacing stations (including nuclear) that are regulated by the therefore benefits vulnerable customers who are in receipt of emission rate. Carbon Emissions Reduction Target (CERT) and Community Environment Agency under Environmental Permitting income support or pension credit, or who can otherwise prove (2) Per FTE – The absolute emissions divided by the average Energy Saving Programme (CESP). It is a larger and more Regulations, and in accordance with the European Pollutant that they are fuel poor. The figure in the report is captured as FTE of EDF Energy employees during the year. complex programme than CERT or CESP, which is focussed on Release and Transfer Register (E-PRTR) Regulations. Data is customer product accounts and not the number of customers end-to-end refurbishment of residential dwellings. audited periodically by Deloitte on behalf of the EDF Group. on the Energy Assist tariff.

EDF ENERGY ANNUAL SUSTAINABILITY REPORT 2013 83 Definitions and Glossary At a Glance chief executive’s 2013 summary Our Business Delivering on our plan for a sustainable business Materiality Definitions and Glossary Continued

Number of days lost to sickness procedures are periodically audited by LRQA as part of our ISO the local population. Doses to the public are a very small fraction have been made from Climate Balance Product and Read, Definition:The total number of days of sick leave taken by 14001 and OSHAAS 18001 certification. of the legal limit and the average radiation dose due to natural Reduce, Reward. These products were withdrawn from the employees in the year. Non-working days (e.g. weekends) background in the UK. market during 2011. Pod schools registered during the period of sickness absence are excluded. For Definition:The Pod provides registered teachers with lesson Smart Meters Tonnes of uranium sent off-site part-time employees, absence days are recorded on a plans, resource packs, activities, games and a place to blog Definition:I s taken to mean an Advanced Domestic Meter, Definition: Tonnes of spent fuel sent off-site excluding pro-rata basis. and to share ideas about sustainability issues including energy, which is defined as a meter installed in a domestic premise cladding and packaging measured as weight of unirradiated Number of customers referred water, waste, transport, biodiversity and climate science. It also that provides gas or electricity consumption data for multiple uranium in tonnes. to government scheme provides materials that students can use to inspire parents and time periods and is able to provide the supplier with remote access Total Net Generation (CERT/CESP/ECO) the local community. Data relating to the number of schools, to such data. Definition:The output from all our generating plants Definition:N umber of customers specifically advised about, teachers and students registered to www.jointhepod.org is Spent fuel stored in cooling ponds including coal, gas, nuclear and renewable generation as or referred to, a government scheme or to the Carbon sourced from the website’s content management system. on site measured at the power station gate. Emissions Reduction Target (CERT)/ Community Energy Saving This system is also used to measure estimated engagement Definition:Amount of spent fuel stored in our on-site Programme (CESP)/ Energy Companies Obligation (ECO) in this with the programme. Engagement calculations are based on Total Recordable Incident Rate (TRIR) (employees cooling ponds at our Advanced Gas-Cooled Reactors (AGRs) reporting period. registration information provided by users when they register and contractors) and Pressurised Water Reactors (PWR) measured in tonnes with the site such as the number of pupils in the school, the Definition: TRIR annual total combined number of Lost Number of leavers (heavy metal). level and type of interaction with different Pod resources, Time Incidents, fatalities, Restricted Work Injuries and Definition:The total number of employees of EDF Energy the target student size for particular activities and a set of Sulphur Dioxide (SO2) emissions Medical Treatment Injuries (excluding FirstAid) / number of leaving the company during the year for any reason. This assumptions such as average class size. Definition: The emissions of SO2 from all of our power million hours worked. This covers all employees, agency and includes resignation, retirement, employees who have a stations that are regulated by the Environment Agency under contractor staff. Excludes EDF Energy Renewables. suspended contract of employment (e.g. for a sabbatical), Primarily work-related ill-health rate Environmental Permitting Regulations, and in accordance with who are expatriated or seconded outside the company, Definition: The rate is the number of musculoskeletal or Vulnerable Customers the European Pollutant Release and Transfer Register (E-PRTR) departure before the end of a fixed-term contract, departure mental ill-health incidents per year per 1,000,000 hours Definition:EDF Energy has two definitions of vulnerable Regulations. Data is audited periodically by Deloitte on behalf during trial period, deceased, and dismissal. worked. We count only those incidents where work has been customers: those who are vulnerable by virtue of being of of the EDF Group. judged to be the primary cause, measured by an independent pensionable age, disabled or chronically sick, and those who Number of reportable nuclear events assessment of employees via self or management referral to Three-year collective radiation dose (man Sv/ are living in fuel poverty by spending more than 10% of Definition:Events that are required, by arrangements made Occupational Health and the Employee Support Programme. reactor) their income on energy in order to heat their home to an under conditions attached to our nuclear site licences, to Contractors and agency staff are excluded. Definition:Average three-year collective radiation dose acceptable standard. be reported formally in writing to the Office for Nuclear per reactor as defined by the World Association for Nuclear Regulation. Priority Services Register Unplanned automatic trip rate Operators (WANO). The measure covers all staff – employees, Definition:Energy suppliers are obliged to offer a range of Definition:N umber of unplanned automatic trips per 7,000 Number of working hours agency and contractors. It does not include a guided party free services, known as the priority services register, to their hours of operation as defined by WANO. Definition: The total number of hours worked by employees of visitors; these parties walk a known visitors’ route where most vulnerable customers. These services are free to join during the year. This is the annualised number of days at their exposure is negligible. and are available from all mains gas and electricity suppliers. contracted working hours for the week less statutory holidays, The scheme is available to all household gas and electricity Tonnes of CO2 avoided from customer’s energy personal annual leave and sickness absence. consumers who are any of the following: pensionable age, consumption Office and depot waste have a disability, have long-term ill health or have a hearing Definition:We help our customers cut their carbon footprint Definition: Office and commercial buildings waste is and/or visual impairment. in a number of ways. The calculation to demonstrate the any waste that arises from EDF Energy business activities emissions reduction is based on the summation of the actual Radiation dose to the most exposed member of undertaken at an office or depot. It includes office waste tonnes of CO2 saved through the three sub initiatives which the public streams such as paper, cardboard, IT equipment, furniture and make up this commitment which are Carbon Emissions Definition:We are required to assess the radiation dose to the plastic cups. Office and commercial building waste is re-used, Reduction Target, Smart Meters and Renewable, for example most exposed members of the public in the vicinity of our sites recycled or disposed of through assigned, dedicated and heat pumps. Historically contributions to this commitment using the results of environmental monitoring. However, this does specialist disposal routes managed as part of a contract with not distinguish between the impact of our discharges and those waste service providers. The volumes of waste are supplied to of neighbouring operators. Discharge modelling is used to make EDF Energy by its waste contractors and business performance a conservative assessment of the impact of our discharges on reporting of that data is carried out in-house. Processes and

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