THIRD COMMUNICATION ON PROGRESS (COP) – CEO RENEWED

EDFLuminus–ThirdCommunicationonProgress/GlobalCompactoftheUnitedNations-November2016–Page1/18

THIRDCOMMUNICATIONONPROGRESS(COP)–CEORENEWEDCOMMITMENTTOTHETENPRINCIPLES

IampleasedtoreaffirmthecommitmentofEDFLuminustothetenUnitedNationsGlobalCompactPrinciplesthatweendorsedin2013.Sincethen,wehavestrivedtomakesuretheywereembeddedinourdailypractices,andtoinformstakeholdersaboutourprogress.

OnNovember162016,wewereinformedthatEcovadis,acompanywhosecorebusinessistoratetheCorporateSocialperformanceofsuppliers,scoredus81/100,whichisasignificantincreaseincomparisontoour61/100scorein2015.Weareextremelyproudtohavereachedsuchascore,whichmeanswe’reamongthetop1%ofallcompaniesevaluatedbyEcovadis.

In2015,EDFLuminusinvestedarecord180millioneuro,principallyinrenewableenergysourcesandenergyservices.Thisrepresentsaremarkablefinancialeffort,butalsothesuccessofanentireteam,benefittingtheenvironmentandthewellbeingofourfellowcitizens.Ourteamsworkedveryhardtomakeustheleaderinonshorewindenergy,with254MWinstalled,andwecanrelyonawellfilledprojectportfoliotocontinueourgrowth.Wehavealsocontinuedtoinvestinourhydroelectricplants,andcontinuetohelpourcustomersdeveloptheirrenewableenergyproduction:thewindfarms in Tessenderlo, Beringen and Oevel were built in partnership with other companies. Our Dauvister subsidiary has built the largest solarinstallationsinWallonia,suchasatABInBevinJupille.Moreover,weofferourcustomerssolutionstoreducenotonlytheirenergyconsumptionandtheirecologicalfootprint,butalsotheirinvoice.Inthisway,wearehelpingourindustrialcustomerstoensuretheircompetitiveness,andourresidentialcustomerstoretaintheirpurchasingpower.Alongwiththis,weareextremelypleasedtoreportthattherewerezeroHealthandSafetyLostTimeIncidentsin2015;thatisatotalof532dayswithoutaccidentson31December2015.Therearenonerecordedsofarin2016.


Withourstrongcommitmenttotransparencyandaccountability,wecommittoremainingkeenparticipantstotheGlobalCompactandpublishour2016 COP in line with the requested guidelines. This third Communication on Progress (COP) includes, directly or via a reference to our 2015SustainableDevelopmentreport:

- thecurrentstatementexpressingcontinuedsupportfortheGlobalCompactPrinciples,- adescriptionofthepracticalactionsthecompanyhastakentoimplementthePrinciplesineachofthefourissueareas(humanrights,labor,

environment,anti-corruption),- andameasurementoftheoutcomes.

In2016,EDFLuminuswillcontinuetopursueitstransformationtobecomingthenumberoneenergypartner,offeringprogressandcomforttoallitscustomers.Weareproudtobeabletorelyonagreatteaminordertocontinueinvestingtobuildasustainablefuture.

SeesignatureonspecificPDFdocument

GrégoireDallemagne

CEOOnbehalfofLMASsprl


THIRDCOMMUNICATIONONPROGRESSANDSELF-ASSESSMENTREGARDINGTHE10PRINCIPLESOFTHEGLOBALCOMPACT

November2016 GCAdvancedCOPSelf-Assessment

EDFLuminusisreaffirmingitscommitmenttotheUnitedNationsGlobalCompactPrinciplesthroughpublishingourthirdCommunicationonProgressfortheperiodof1January2015until31December2015.Thestructureofthisdocumentfollowsthelatestself-assessmentformatusedbycompaniespursuingtheGlobalCompact“advancedlevel”.UsingthisformatwillhelpreadersunderstandthatEDFLuminusisnowcomplyingwithallthecriterianeededtoreachthe“advancedlevel”.

ThereportiswrittenwithregardstoouroperationsinBelgium.Wedonotoperateinanyhigh-riskand/orconflictedareas.Itusesquantitativeandqualitativemeasurestoassesstheoutcomesfor2015whicharefurtherelaboratedinour2015SustainabilityReport.WearepleasedthatwehavefullyconformedtotheGRI4SustainabilityReportingGuidelinesasabasisofour2015CSRReportandwewillcontinueformalizingourreportsusingthismethod.TheCOPissharedinternallywiththeemployeesandwithexternalstakeholdersthroughtheEDFLuminuswebsite.

ThisCOPisnotformallyreviewedandcertifiedbythird-parties.However:

• MostoftheinformationcontainedintheCOPisalreadypublishedintheEDFLuminusSustainableDevelopmentreport,whichincludesdatathatispartlyassessedbyexternalparties.

• PartsoftheSDRareextractsoftheAnnualReportsubmittedtotheNationalBankofBelgium,whichiscertifiedbyKPMGCompanyAuditorsandBoes&CoCompanyAuditors.Thisisespeciallythecaseforgraphsandfigurespublishedonpages34-37SDR.Itisalsothecaseforthe


socialbalancesheetsextractspublishedonpages50-51.TheAnnualreportisavailableontheNBBwebsitewhichallowsthird-partychecks.• TheGHGemissionsinventorypresentedintheSDRreporthasbeenrealizedbyClimact,arecognizedconsultingfirm,inaccordancewiththe

GHGProtocolinternationalstandard.Someoftheemissionfigurespublishedonpage44ofthereportareauditedandapprovedbyexternalfirms(VBBVforFlandersandVincotteforWallonia).

• Withintheframeworkofarticle225oftheGrenelleIIlawof12July2010establishingnewpublicationandverificationobligationsforFrenchlistedcompanies,theEDFstatutoryauditorsverifytheconsolidatednon-financialinformationpresentedintheEDFmanagementreport.ThisincludesinformationoriginatingfromEDFLuminus,especiallysocialandenvironmentalfigures,whicharesubjecttoperiodicaudits.Suchanaudit,donebyEDFGroupauditors,willtakeplaceinDecember2016andJanuary2017about2016reportingprocessesandmodifications.

• EDFLuminusisacertifiedTopEmployersince2013,anHR-orientedlabelwhichincludesworkingconditionsamongitscriteriaandinvolvesrandomauditsonsite.

• WeareawareoftheimpactouractivitieshaveonourcommunitiesandensureweworkwithstakeholderstodiscussourCSRreporting.In2015and2016,wereceivedfeedbackfrom88stakeholdersonour2014SustainabilityReport.Theyalsoprovidedinputonthemostmaterialtopicstobeadded,whichwerehighlightedinachartonpage15ofthe2015SustainabilityReport.Thestructureandcontentofthe2015reportwasmodifiedtakingthisfeedbackintoaccount.

• We have asked the company Ecovadis to evaluate 50 detailed questions about our practices and providing supporting documents tosubstantiateourstatements,allowedustobegranteda81/100score,i.e.a30%improvementoverthe2015score(62/100).

Regardingthe17SustainableDevelopmentGoals,ourSustainabilityreporthighlights4goalswherewehavealreadyclearlycommitted(seepage7ofthe2015Sustainabilityreport).ThereareespeciallycommitmentsregardingSafety,RenewableenergyandSustainablecities.

This COP refers to the 2015 EDF Luminus Sustainable Development Report (SDR) or to other documents/texts already posted on EDF Luminuscorporatewebsitewithlinksavailable.Foryourconvenience,youcanfindthe2015reportfollowingthislink:http://edfluminus.edf.com/fichiers/fckeditor/Commun/EDFLuminus/LUMCRE0017-Rapport2015-UK_58454_web.pdf


ImplementingtheTenPrinciplesintoStrategies&Operations

CriteriaforGCAdvancedLevel

OurApproach Moreinformation

Criterion1:TheCOPdescribesmainstreamingintocorporatefunctionsandbusinessunits

Placeresponsibilityforexecutionofsustainabilitystrategyinrelevantcorporatefunctions(procurement,governmentaffairs,humanresources,legal,etc.)ensuringnofunctionconflictswithcompany’ssustainabilitycommitmentsandobjectives. AtEDFLuminus,theCSRpolicyisendorsedbytheCEOandisadvertisedonallsites.TheCSRdepartmentreportstotheChiefStrategy,InnovationandBusinessDevelopmentOfficer.Thesustainabilitypolicyandactionplanisthereforereviewedregularlybytheexecutivecommittee.DepartmentsrepresentedintheCSRCommitteeincludePurchasing,Production,HSE,Marketing,CorporateAffairs,HumanResources,InternalAudit,etc.In2016,aCSRinitiativewaslaunchedaspartoftheTransformationplanofthecompany.Itincluded5tracks,includingSafety,Environment(compliancewithISO50001certification),Purchasing,Humanresources(Diversity)andreporting(compliancewithGRI4rules).ProgressregardingtheactionplanwasmonitoredattheExecutiveCommitteelevel.

Pages8-11ofSustainableDevelopmentReport2015(SDR).CSRPolicy:https://one-edfluminus.edf.com/sites/default/files/Lot%203/EDF%20LUMINUS/ENGAGEMENTS/accueil/csr_edfluminus.pdf

Criterion2:TheCOPdescribesvaluechainimplementation

Analyzeeachsegmentofthevaluechaincarefully,bothupstreamanddownstream,whenmappingrisks,opportunitiesandimpacts. We have identified each segment of the value chain, both upstream and downstream, andpublisheditonPage13of2015SustainableDevelopmentreport.Communicatepoliciesandexpectationstosuppliersandotherrelevantbusinesspartners.OurGeneralPurchasingConditionsaresenttosuppliersandcontractorsatthestartofeachtenderandforeachcontract.OurpurchasingconditionsincludeexpectationsregardingSafetyandCSRamongextra-financialcriteria.

Pages12-13SDRGeneralPurchasingConditionsclauseshttps://edfluminus.edf.com/en/edf-luminus/our-commitments/ethics-and-good-governance


RobustHumanRightsManagementPolicies&Procedures

Principle1:Businessesshouldsupportandrespecttheprotectionofinternationallyproclaimedhumanrights;and

Principle2:makesurethattheyarenotcomplicitinhumanrightsabuses.

Criterion3:TheCOPdescribesrobustcommitments,strategiesorpoliciesintheareaofhumanrights

Commitmenttocomplywithallapplicablelawsandrespectinternationallyrecognizedhumanrights,whereverthecompanyoperates.In 2011, EDFLuminus affirmed its respect for human rights by endorsing theEDFGroupCSRAgreement.Followingthis,weadoptedourownCSRPolicyandupdatedourCodeofConductbothofwhichexpressoursupportfortheUniversalDeclarationofHumanRights.TheCodeofConductofEDFLuminusisavailablebothontheintranet,toallemployees,andontheinternet,inFrenchandDutch.Integratedorstand-alonestatementofpolicyexpressingcommitmenttorespectandsupporthumanrightsapprovedatthemostseniorlevelofthecompany.SeeourCSRPolicyandCodeofConductonEDFLuminuswebsite(Ourcommitmentssection).Statementofpolicystipulatinghumanrightsexpectationsofpersonnel,businesspartnersandotherpartiesdirectlylinkedtooperations,productsorservices. OurCSRpolicymentionsexplicitlythatwecommittocomplywithapplicablelaws.WeensurethatoursuppliersalsorespectourvaluesbyincludingaCSRsocialclauseinourGeneralPurchasingconditions.Statementofpolicypubliclyavailableandcommunicatedinternallyandexternallytoallpersonnel,businesspartnersandotherrelevantparties. SeeourCSRPolicyandCodeofConductwhichincludesall10principlesoftheGlobalCompact.

http://edfluminus.edf.com/developpement-durable/ethique-292351.htmlhttps://edfluminus.edf.com/nl/edf-luminus/onze-engagementen/ethiek-en-goed-bestuurSeeClause29.2ofGeneralPurchasingConditions:https://edfluminus.edf.com/sites/default/files/Lot%203/EDF%20LUMINUS/ENGAGEMENTS/ethique%20et%20gouvernance/social_clause_edf_luminus.pdf

Criterion4:TheCOPdescribeseffectivemanagementsystemstointegratethehumanrightsprinciples

On-goingduediligenceprocessthatincludesanassessmentofactualandpotentialhumanrightsimpacts.Since2014,mandatoryreportingtotheEDFGroupincludesaspecificdocumentwhichistoincludeallsignificantethics-relatedincidents.Internalawareness-raisingandtrainingonhumanrightsformanagementandemployees.

P.18SDRhttp://edfluminus.edf.com/fichiers/fckeditor/Commun/EDFLuminus/pdf/CodeDeConduite_FR_2


InSeptember2015,aspartoftheCSRinitiativeincludedtheTransformationplan,welaunchedanewe-learningmoduletohelpemployeesunderstanddesiredbehaviorsregardingEthicsandourCodeof Conduct. This e-learning includes realistic situations regardingprotectionof customerdata, nepotism, and rules to be applied when using social media (among other ethics-relatedtopics).Attheendof2015,20%oftheemployees(186)hadvolunteeredtocompletethemodule.Theywere30%endofSeptember2016.Allocationofresponsibilitiesandaccountabilityforaddressinghumanrightsimpacts. Eachmanagerisinchargeofmakingsurehumanrightsarerespectedandbreachesaddressed.TheEDFLuminusCodeofConducthighlightstheroleofmanagersasthefirstalertlevelincaseofirregularities.TheBelgian lawalsomakes itmandatory for companies toappoint “confidentialcounsellors”inordertopreventpsychosocialincidents,especiallydiscriminationorharassment.

0_01.pdf

Criterion5:TheCOPdescribeseffectivemonitoringandevaluationmechanismsofhumanrightsintegration

Systemtomonitortheeffectivenessofhumanrightspoliciesandimplementationwithquantitativeandqualitativemetrics,includinginthesupplychain.Monitoringdrawnfrominternalandexternalfeedback,includingaffectedstakeholders.Our alert system is advertised in our general purchasing conditions and on internet. Foursignificantsupplierswereevaluatedin2015fromaCSRpointofview,viatheEDFGroupplatform(see results in SDR).The suppliersmappingdone in2013hasbeenupdated in2016andnewevaluationsrequested.Grievancemechanismsthatarelegitimate,accessible,predictable,equitable,transparent,rights-compatible,asourceofcontinuouslearning,andbasedonengagementanddialogue.AlertsystematEDFLuminusinvolvesconfidentialitycounsellors.TheGroupalertsystemalsoallowsdirectalerttotheGroupEthicalCommittee.Outcomesofintegrationofthehumanrightsprinciples.Noformalgrievancesrelatingtohumanrightshavebeenrecorded.NoalertsweresenttotheEDFGroupEthicalcommitteeregardingEDFLuminusin2015andnonesofarin2016.

Pages18,20SDR


RobustLaborManagementPolicies&Procedures

Principle3:Businessesshouldupholdthefreedomofassociationandtheeffectiverecognitionoftherighttocollectivebargaining;

Principle4:theeliminationofallformsofforcedandcompulsorylabor;

Principle5:theeffectiveabolitionofchildlabor;and

Principle6:theeliminationofdiscriminationinrespectofemploymentandoccupation.

Criterion6:TheCOPdescribesrobustcommitments,strategiesorpoliciesintheareaoflabor

Referencetoprinciplesofrelevantinternationallaborstandards(ILOConventions)andothernormativeinternationalinstrumentsincompanypolicies.Reflectionontherelevanceofthelaborprinciplesforthecompany.Writtencompanypolicytoobeynationallaborlaw,respectprinciplesoftherelevantinternationallaborstandardsincompanyoperationsworldwide,andengageindialoguewithrepresentativeorganizationoftheworkers(international,sectorial,national).Inclusionofreferencetotheprinciplescontainedintherelevantinternationallaborstandardsincontractswithsuppliersandotherrelevantbusinesspartners.EDFLuminussupportstheprinciplesconcerningfundamentalrightssetoutbytheInternationalLabourOrganisation’s-thisismentionedexplicitlyintheEDFGroupCSRagreementendorsedbyEDFLuminusin2011.Freedomtoassociate,negotiate,andcollectivebargainingisguaranteedbyBelgianlawandthespecificrulesoftheBelgianenergysector(FEBEG).Inlinewithourvalues,westrivetopromotediversityandgenderequalityinourworkforceindifferentways:

• Womencomprise41%ofouremployees,whichisexceptionallyhighintheenergysector.Since2012,webringwomenworkinginthehighestrankstogetheronceayeartoidentifytheirconcernsintheworkplace.

• Weputtogetheranactionplanforemployeesovertheageof45.• Ourworkforceincludedninedifferentnationalitiesendof2015.

Structuralengagementwithaglobalunion,possiblyviaaGlobalFrameworkAgreementTheEDFGroupCSRAgreementhasbeensignedbythreeGlobalUnionsin2009.Itstillappliesandupdatesonprogressandbestpracticesarediscussedwithunionseachyear.

Pages50-51,54-55SDR

EDFGroupCSRAgreement:http://about-us.edf.com/fichiers/fckeditor/Commun/RH/Publications/Annee/2009/EDF_Accord_RSE09_va.pdf

Criterion7:TheCOPdescribeseffectivemanagementsystemsto

Dialoguemechanismwithtradeunionstoregularlydiscussandreviewcompanyprogressinaddressinglabourstandards.

Page50and53SDR


integratethelaborprinciples

All of the EDF Luminus workforce is represented by elected employees who participate incollectivebargaining.Allocationofresponsibilitiesandaccountabilitywithintheorganization.Grievancemechanisms,communicationchannelsandotherprocedures (e.g.,whistleblowermechanisms)available forworkers toreportconcerns,makesuggestionsorseekadvice,designedandoperatedinagreementwiththerepresentativeorganizationofworkers. Confidentialitycounsellors,whoseappointmentmustbeapprovedbythesocialpartners,playanimportantpreventiveandcurativerole.Theycanbecalleduponbysimplerequest,byemployeesaswellasmanagers,incaseofpsychosocialdifficulties.InApril2014,theBelgianregulationextendedthescopeofinterventionbytheconfidentialitycounsellors:inadditiontoworkplaceharassmentandviolence,stressisnowalsoamotivetoaskfortheiradvice.ThishasledtothecreationofadedicatedpostforthepreventionofpsychosocialriskswiththeHealth,Security,EnvironmentdepartmentasofApril1st,2016.

Criterion8:TheCOPdescribeseffectivemonitoringandevaluationmechanismsoflabourprinciplesintegration

Systemtotrackandmeasureperformancebasedonstandardizedperformancemetrics.ThenumberofcasesreportedtoconfidentialitycounsellorsispartoftheyearlyHealth&SafetyreportsenttoBelgianauthorities.Seepage53ofourSustainabilityreport. Dialogueswiththerepresentativeorganizationofworkerstoregularlyreviewprogressmadeand jointly identifyprioritiesforthefuture.Dialogue with unions takes place in several instances at EDF Luminus. Among them aremonthlyworkscouncilsandHealthandSafetycommittees. Auditsorotherstepstomonitorandimprovetheworkingconditionsofcompaniesinthesupplychain,inlinewithprinciplesofinternationallaborstandards.

Wecarryoutariskanalysisintheworkplace.Anyincidentsarerecordedandthoroughlyanalysedtoidentifythemaincausesandsimilarincidentsinthefuture.Wearepleasedthatthesemeasureshaveledtozeroincidentsin2015.Outcomeofintegrationoflaborprinciples. OurlatestCSRratingbyEcovadis,onNovember2016,grantsusa80/100scoreregardinglabourpractices.

Pages52-53SDR


RobustEnvironmentalManagementPolicies&ProceduresPrinciple7:Businessesshouldsupportaprecautionaryapproachtoenvironmentalchallenges;Principle8:undertakeinitiativestopromotegreaterenvironmentalresponsibility;andPrinciple9:encouragethedevelopmentanddiffusionofenvironmentallyfriendlytechnologies.Criterion9:TheCOPdescribesrobustcommitments,strategiesorpoliciesintheareaofenvironmentalstewardship

Writtencompanypolicyonenvironmentalstewardship.OurHeath,SafetyandEnvironmentpolicyisavailableonEDFLuminuswebsite. Inclusionofminimumenvironmentalstandardsincontractswithsuppliersandotherrelevantbusinesspartners. We have implemented a Health, Safety & Environment policy (last update in 2011), an HSEmanagementsystemandweareISO14001certifiedglobally,i.e.forallouractivities.TheHealth,SafetyandEnvironmentpolicyandtheISO14001certificationareadvertisedonEDFLuminusinternetsite.OurCSRpolicyalsoincludesEnvironmentasoneofthe5keytopicstobeaddressed.OurGeneralPurchasingConditionsincludeaspecificclauseregardingEnvironment.Specificcommitmentsandgoalsforspecifiedyears.EDFLuminusplanstoinvest600millioneurosinrenewableenergyandenergyservicesfrom2015to2018.

http://edfluminus.edf.com/developpement-durable/sante-securite-et-environnement-88507.htmlClause24.2ofGeneralPurchasingConditionsPage7SDR

Criterion10:TheCOPdescribeseffectivemanagementsystemstointegratetheenvironmentalprinciples

Environmentalriskandimpactassessments. EDFLuminusdoesintegrateenvironmentalriskevaluationinitsHealth,Safety&Environmentriskanalysisforallindustrialsites.Risksareclassifiedin4categoriesforallproductionsites.Allrisks above a certain threshold have to be reduced. Also, impact on environment has to beassessedpriortoeachnewproductionassetbuilding(aspartof thepermittingprocess).Thisanalysis iscarriedoutduring thedevelopment,with thecommissioning,andevery5yearsorwhenthereareanychangesmadetothesite. Assessmentsoflifecycleimpactofproducts,ensuringenvironmentallysoundmanagementpolicies.

Page38SDRPage42-45SDR


In2013,EDFLuminuspublisheditsglobalcarbonfootprintforthefirsttime.Itwaspublishedagainin2014and2015inourSustainabilityreport.Thisallowsthecompanytoprioritizeactionstoreducetheenvironmentalimpactofitsactivities. Grievancemechanisms, communication channels and other procedures (e.g. whistleblowermechanisms) for reportingconcernsorseekingadviceregardingenvironmentalimpacts.Allalertsystems(purchasing,ethical)canalsobeusedforenvironmentalimpacts.Allocationofresponsibilitiesandaccountabilitywithintheorganization.Allocation of responsibilities and accountabilitywithin the organization is part of theHealth,Safety & Environment (HSE) management system. HSE and Production organizations areavailabletoemployeesviatheintranet.Internalawareness-raisingandtrainingonenvironmentalstewardshipformanagementandemployees.The HSE department of EDF Luminus prepares weekly messages dedicated to Safety andEnvironment. These are highlighted eachweek on the intranet, and at the beginning of eachmeeting.Specificpresentationsarealsopreparedforspecifictopicsandhavetobesharedeveryquarterduring“toolboxmeetings”whicharemandatoryandtracked.

Criterion11:TheCOPdescribeseffectivemonitoringandevaluationmechanismsforenvironmentalstewardship

Systemtotrackandmeasureperformancebasedonstandardizedperformancemetrics. EDFLuminusisISO14001certifiedgloballyforallitsactivities.CompliancecheckswiththeISO14000normareconductedregularly.Periodicenvironmentalauditsareperformedbyexternalcompanies.Wemeasureourtotalenvironmentalcarbonfootprintsince2013followingtheGreenhouseGasProtocol(GHG).LeadershipreviewofmonitoringandimprovementresultsThisisdoneattheleveloftheExecutiveCommitteeonaquarterlybasis.Detailedreviewtakesplaceonceayear. Processtodealwithincidents

Pages38,42-44SDR


The planned actions to reduce risks are reported on amonthly basis in accordancewith themethodologyofOHSAS18001.OutcomesofintegrationoftheenvironmentalprinciplesWehaveachievedthefollowingin2015:

• EDFLuminusinvested180millioneurosinrenewableenergysourcesandservices.• Wehavebecomethemarketleaderinonshorewindenergywithatotalof254MW

installed.• Wesupportourclient’seffortstodeveloprenewableenergysources,ieweinstall

windmillsonindustrialzones,orPVonindustrialroofs.• Byendof2015,60%ofthemonthlybillsweresentelectronicallytominimizenegative

environmentalimpact.• Frombeingthefirstbuilderofwindturbinesin2014,in2015EDFLuminusbecamethe

leadingproducerofonshorewindelectricityinBelgium.Inoneyear,itstotalwindenergycapacityrosefrom180MWto254MW,anincreaseof41%.Sixteenwindturbineswerebuiltandanother13acquired.

• In2015,permitapplicationsweresubmittedinWetteren,Lierneux,Emines,Nives,Couvin,Geel-Laakdal,Munsterbilzen,Courcelles,BeerveldeandDessel,representingatotalpowercapacityof84MW.

EnvironmentalincidentshavetobereportedtotheBelgianauthorities.TheenvironmentmanagementsystemofEDFLuminusincludesasystematicanalysisofincidentsandalistofcorrectiveactionstobeimplemented.InSeptember2015,biodegradableoil(lessthan1m3)wasdischargedintotheMeuse,duetoafailuretodetectapipeleakinalubricationsystemforoneoftheturbinesintheAmpsinhydropowerplant.TheglobalC02footprintofEDFLuminusismeasuredandpublishedeachyearsince2013.ThemethodologyisconstantlyupdatedtotakeintoaccountthelatestGHGprotocolchanges.Wearepleased to report that the average CO2 emissions linked to company cars has continued todecrease.Our latest CSR rating by Ecovadis, on November 2016, grants us a 90/100 score regardingenvironmentalpractices.


RobustAnti-CorruptionManagementPolicies&ProceduresPrinciple10:Businessesshouldworkagainstcorruptioninallitsforms,includingextortionandbribery.Criterion12:TheCOPdescribesrobustcommitments,strategiesorpoliciesintheareaofanti-corruption

Publiclystatedformalpolicyofzero-toleranceofcorruption.The2011versionoftheEDFLuminusEthicalCodeofConductincludesaclearstatementbytheCEOregardingethics,valuesandrespectforstakeholdersand,inparticular,the“fightagainstfraudandcorruptioninallitsforms”.Commitmenttobeincompliancewithallrelevantanti-corruptionlaws,includingtheimplementationofprocedurestoknowthelawandmonitorchanges.Wemonitorlawevolutiontomakesureweareinlinewithallrelevantanti-corruptionlaws.Policyonanti-corruptionregardingbusinesspartners.TheCodeofConductalsocontainsanti-corruptionrulesregardingbusinesspartners.Theserulesarepresentedtoallnewemployeeswhothentakeoure-learningmoduleformoreknowledgeofthecompanypolicies,includingraisingawarenessonfraud.Endof2013,webecameapartytoconsumerprotectionlawsfortheenergyindustry.Wealsoensureourclientsareprotectedfromcasesoffraud,especiallyregardingdoor-to-doorsalestechniques.WehaveaspecificCodeofConductthatallsalespersonsmustabideto.

Pages18and21SDR

Criterion13:TheCOPdescribeseffectivemanagementsystemstointegratetheanti-corruptionprinciple

Supportbytheorganization’sleadershipforanti-corruption.ThisisincludedintheCodeofConduct.Carryingoutriskassessmentofpotentialareasofcorruption.Four suppliers were evaluated by Afnor in 2015. No potential area of corruptionwasidentifiedthroughtheseevaluations.Managementresponsibilityandaccountabilityforimplementationoftheanti-corruptioncommitmentorpolicy.Managementisindeedaccountableforimplementingtheanti-corruptionpolicy.Thefraudpolicyisaccessibletoallemployeesonthecompany’sintranet.

Page20SDR


HumanResourcesproceduressupportingtheanti-corruptioncommitmentorpolicy,includingcommunicationtoandtrainingforallemployees.HumanResourcesprocedures supporting anti-corruptionpolicy include the company rules&CodeofConduct.Inordertohelpemployeeswithfollowingtherules,wecreatedane-learningmodulewhichismandatoryforallnewemployees,andwarmlyrecommendedtoall.Thismoduleincludespracticalsituationsinvolvingnepotism,conversationswithcompetitors,ITsecurity,etc.Internalchecksandbalancestoensureconsistencywiththeanti-corruption.WeupdateregularlyourDOA(Delegationofauthorities)documentstomakesuretheyareinlinewiththelatestorganizationalchanges.PurchasingrulesareembeddedintheITsystemandcannotbeoverruled–purchasingordersissuedwithouttheinvolvementofPurchasingareblocked.Internalaccountingandauditingproceduresrelatedtoanticorruption.Ourexternal auditorKPMGRéviseursd’entreprises includes internal controlprocesses in theannualaccountscertificationprocess.Internalcontrolsoccurregularly,performedbytheAuditdepartment.Thereisalsoanoverallannualriskassessment,whichregularlyincludesfraud&corruptiontopics.Communications(whistleblowing)channelsandfollow-upmechanismsforreportingconcernsorseekingadvice.Suppliers can use a specific mailbox ([email protected]) to report non-ethical conductrelatingtocurrentorfuturecontracts,whichispublishedonthecorporatewebsite.Also,EDFLuminushasananti-fraudplanwithaspecificalertsystemwhichwarranteestheanonymityofwhistleblowers.

Criterion14:TheCOPdescribeseffectivemonitoringandevaluationmechanismsfortheintegrationofanti-corruption

Leadershipreviewofmonitoringandimprovementresults.Aninternalassessmentofallalertsystemsisdoneeachyear. Processtodealwithincidents.Theanti-fraudplanincludesaprocesstodealwithincidentswhichisbrieflydescribedinEDFLuminusCodeofconductpage26.Allincidentsreportedareinvestigatedandgeneratecorrectivemeasuresifneeded.

Page20SDR


Publiclegalcasesregardingcorruption.TherearenopubliclegalcasesregardingcorruptionregisteredatEDFLuminusin2015.Useofindependentexternalassuranceofanti-corruptionprogrammes.In2013,asuppliers’cartographywasestablished,inordertoidentifysupplierswiththehighestrisks. Four suppliers were evaluated by Afnor in 2015. No potential area of corruption wasidentifiedthroughtheseevaluations.Thecartographywasupdatedin2016andmoreevaluationswillberequested.Outcomesofintegrationoftheanti-corruptionprinciple. In2014,theEDFGroupsetupareportingsystemwithinitscompaniesforseriousbreachesofthe Code of Ethics. EDF Luminus started to publish its own report in the 2015 Sustainabilityreport. In 2014, a (minor) fraud case was reported to the Group and to the local police. Noincidentslinkedtocorruptionwerereportedin2015.OurlatestCSRratingbyEcovadis,onNovember2016,grantsusa70/100scoreregardingethics.


TakingActioninSupportofBroaderUNGoalsandIssuesCriterion15:TheCOPdescribescorebusinesscontributionstoUNgoalsandissues

AligncorebusinessstrategywithoneormorerelevantUNgoals/issues. AdoptandmodifyoperatingprocedurestomaximizecontributiontoUNgoals/issues. InSeptember2016,EDFLuminuswasoneofthefirstplayersintheSDGVoiceseventlaunchedbyTheShiftinBelgium.EDFLuminusrespectsthe17SustainableDevelopmentGoalsandstrivestoincludeinitstargets&actionplansalloftherelevantSDGgoals,withaspecialfocusonthefollowinggoals:

- Goal3:Goodhealthandwell-beingofouremployees-whichisevidentfromthezeroLTIincidents.

- Goal7:Affordableandcleanenergy-through600millioneuroinvestmentinrenewableenergysourcesfrom2015-2018.

- Goal11:Sustainablecitiesandcommunities--Weaimtoincreasethenumberofpartnershipswithsustainablecities.Currentactionsalreadyincludeenergymonitoring,electricmobility,publiclighting,etc.

- Goal13:Climateaction:EDFLuminusparticipatedtoTheShiftinitiativetosupportCOP21agreement).

DeveloprelevantproductsandservicesordesignbusinessmodelsthatcontributetoUNgoals/issues. EDFLuminusproductsandservicescontributetoclimatechangemitigationandadaptation.Weoffervariousenvironmental-friendlyproductstoB2C&B2Bcustomersandsustainablecities(ie.paperless bills, guaranteed green electricity contracts, CO2 compensated gas contracts, smartthermostats, boiler maintenance, supply side management, energy performance contracts,energymonitoring,publiclighting,electricvehicles,etc.).EDFLuminusalsoregularlyincreasesitsrenewableenergycapacity.Between2015and2018,weplantoinvest600millioneurosinall,mostofitinwindmillsandenergyservices.

Page7SDRPage24to29regardingenergyefficiencyPage39to41regardingrenewablesPage52-53regardinghealth,safetyandwell-being

Criterion16:TheCOPdescribesstrategicsocialinvestmentsandphilanthropy

Pursuesocialinvestmentsandphilanthropiccontributionsthattieinwiththecorecompetenciesoroperatingcontextofthecompanyasanintegratedpartofitssustainabilitystrategy. In 2015, ourWe Love Your Project Program allowed us to provide financial support to five

Pages14,20,55SDR


projectssupportedbyouremployees,inpartnershipwithNGOsforcollectiveaction.Moreover,weprioritizedthehealthofemployeesbylaunchingvarioussportseventsthatcombinedhealthandcharityundertheGlobetrottersprogram,whichcurrentlyholds425participantsfromEDFLuminus.

Criterion17:TheCOPdescribesadvocacyandpublicpolicyengagement

PubliclyadvocatetheimportanceofactioninrelationtooneormoreUNgoals/issues. Commitcompanyleaderstoparticipateinkeysummits,conferences,andotherimportantpublicpolicyinteractionsinrelationtooneormoreUNgoals/issues. EDFLuminusisoneofthefirstmembersofTheShifttopublishitscommitmenttoGoals3,7,11,and13.OurCEO,GrégoireDallemagne,attendedtheSDGVoiceseventinSeptember2016tofurtheradvocateourcommitmenttothegoals.AreferencetotheGlobalCompactisalsomadeonpage19ofour2015SDreport,sinceweaskedateamof3studentsfromtheAntwerpManagementSchooltoestablishtheirownmaterialitygrid,includingamongothersGCcriteria,beforecontrollingsomeofthemostimportantdataincludedinthe2014Sustainabilityreport.

Page7SDRhttps://theshift.be/nl/our-members/edf-luminus

Criterion18:TheCOPdescribespartnershipsandcollectiveaction

Develop and implement partnership projects with public or private organizations (UN entities, government,NGOs,orothergroups)oncorebusiness,socialinvestmentsand/oradvocacy. SportandSolidarity:ouremployeeshavetakencollectiveactioninpartnershipwithvariousorganisations,suchasRunforParkinsonandBelgianCardiologyLigatopromoteahealthylifestyleintheworkplacewhiledonatingtoacharitablecause.WecontinuedourpartnershipswithFaune&BiotopesandBeeodiversitytoprotectbiodiversityonsomeofoursites(Angleur,Lixhe,Seraing,Ringvaart,Grands-Malades,Floriffoux).

Page49and55SDR


CorporateSustainabilityGovernanceandLeadershipCriterion19:TheCOPdescribesCEOcommitmentandleadership

CEOpubliclydeliversexplicitstatementsanddemonstratespersonalleadershiponsustainabilityandcommitmenttotheUNGlobalCompact.MakesustainabilitycriteriaandUNGlobalCompactprinciplespartofgoalsandincentiveschemesforCEOandexecutivemanagementteam. SeeLetterfromCEOabove.TheCEOofEDFLuminusconstantlyhighlightstheimportanceoffightingclimatechangebydevelopingrenewableenergyandenergyservices,especiallyenergyefficiency.ThebonussystemfortheexecutivecommitteeincludesUNSDgoalsrelatedcriteria,especiallyLTIs.

Page10SDR

Criterion20:TheCOPdescribesBoardadoptionandoversight

Board of Directors (or equivalent) assumes responsibility and oversight for long-term corporate sustainabilitystrategyandperformance. HereisanextractofthemessageofthePresidentoftheBoard,publishedintheSDreportfor2015:“SustainabledevelopmentisattheheartofthestrategicplanofEDFLuminus.In2015,weinvestedarecordamountof180millioneuro,primarilyinrenewableenergysourcesandenergyefficiencyservices.ThisenabledEDFLuminustobecometheleaderinonshorewindfarmsinBelgium,withaninstalledcapacityof254MW.Investinginenergyservicesisanotherwaytohelpcustomersimproveenergyefficiency,whichenablesthemtoreduceboththeirecologicalfootprintandtheirinvoice.Here,theacquisitionofthecompanyATSin2015representsadecisivestepinthetransformationofEDFLuminus.Thisstrategicplanenjoysthesupportofalloftheshareholders.”

Pages8and11SDR

Criterion21:TheCOPdescribesstakeholderengagement

Publiclyrecognizeresponsibilityforthecompany’simpactsoninternalandexternalstakeholders.Establishchannelstoengagewithemployeesandotherstakeholderstoheartheirideasandaddresstheirconcerns,andprotect‘whistle-blowers.In2015,stakeholderswereformallyconsultedtoproduceamaterialitygrid,amandatorysteptopublishaGRI4-compliantreport.SeedetailedprocesstoengagestakeholdersintheSDR.

Page14-16SDR

Documents

THIRD COMMUNICATION ON PROGRESS (COP) – CEO RENEWED