How sustainability is governed at EDF Energy

We want to be held accountable for the commitments we’re making and the targets we are setting. We are committed to keeping our promises and this is why we report annually with independent assurance of progress.

Sustainable Business Committee

We have established several bodies to oversee delivery of our sustainability agenda. The first is our Sustainable Business Committee (SBC) , chaired by our CEO. Its purpose is to provide company-wide leadership in the delivery of our Better Energy Ambitions.

The SBC is a standing committee of the EDF Energy Holdings Limited Board (the “Board”). Its primary function is to assist the Board in fulfilling its responsibilities by reviewing the general policies and practices of EDF Energy Holdings Limited and its controlled subsidiaries in respect of sustainability.

Our CEO and Executive Team have ultimate responsibility for our sustainable business strategy. Each Executive Team Member holds responsibility for one of the ambition areas, but may delegate authority for specialist topics or targets to progress. Additionally, they provide guidance and leadership on decisions relating to Better Energy Ambitions performance, including assurance and reporting.

Lead delegates on our Better Energy Ambitions are responsible for implementing the strategy and delivering results against our targets. They report progress directly into our Executive Team who review, challenge, and provide guidance.

As we are a 100% subsidiary of EDFSA, our Board is not a Unitary Board. We are not required or expected to employ independent non-executive directors. As such, we do not need to create a Nominations and Compensation Committee to select candidates for this Board.

As all our Directors are in effect employed by EDFSA, there is no particular conflict of interest associated with joining EDF Energy’s Board. The Board can, at the company’s expense, employ external advisers to address complex issues in order to facilitate the Directors’ duties.

Issues relating to conflicts of interest, confidentiality and transparency are covered in our employment contractual agreements where necessary.

 

Sustainable Business Panel

Our second key sustainability body is our Sustainable Business Panel (SBP), chaired by our Director of Strategy and Corporate Affairs. This has senior representation from across the business. It is composed of internal and external experts to challenge and support us in the delivery of our Better Energy Ambitions. It is empowered by the Sustainable Business Committee.

The SBP is concerned with our strategic response to sustainable business issues and with progress in achieving our six Better Energy Ambitions. The Panel also works to make sure we follow best practice and respond to external trends and challenges.

The EDF Energy members of the SBP are drawn from our Senior Leadership Team. Internal and external members act as the business’s sustainability conscience. External members have been appointed for their strategic role and sustainability expertise. Internal members are champions for making sustainability business as usual. We also include a union representative, and someone drawn from our graduate scheme to help us understand the views of the next generation.

Processes

Across the Sustainable Business Committee and Sustainable Business Panel, all members are kept up to date with key economic, environmental and social topics that impact EDF Energy. In governance meetings, members are ready to understand, discuss and effectively respond to material issues across the business.

In 2017 we began a review of our governance processes to make sure they are suitable. We will evaluate our current Sustainable Business Panel to make sure they can effectively oversee delivery of The Better Plan. We also want to gain a better understanding of the perspective of our external partners. This will help us to consider the impact of wider stakeholder issues on our business and reputation. 

Material issues discussed by governing bodies

 (2016/2017)

Our main discussion point for both groups throughout 2016 was the review of our six Better Energy Ambitions. This process led to the development of The Better Plan

Sustainable Business Committee

Discussion Point

Challenge

Our Action

Sustainability Strategy

Make sure a sustainable business strategy is in place to enable EDF Energy to become a more sustainable and responsible business.

Review of Better Energy Ambitions to make sure they are fit for purpose and deliver on our commitments. Introduction of The Better Plan model.

Performance Management

Better Energy Ambitions performance reviewed and direction provided for improvement where appropriate.

Our Better Energy Ambition performance scorecards discussed bi-annually.

Sustainable Business Panel

Discussion Point

Challenge

Our Action

Sustainability Governance

Ensure that sustainable business governance for Better Energy Ambitions is in place to support strategic changes to the way we do business.

Review of the governance structure to make sure it is fit for purpose and delivers on our commitments.

Better Energy Ambitions Report External Publication

Simplicity, transparency and openness in reporting.

Development of detail behind Better Energy Ambitions on our website. Review of website structure, imagery and messaging.

The Better Plan circle graphic - Sustainable Business strategy

The Better Plan

Our framework for being a sustainable and responsible energy business.

The Better Plan is an integral part of EDF’s 2030 vision – to be the efficient, responsible electricity company, and champion of low-carbon growth. 

We want to, deliver Better Lives, Better Experience and Better Energy for all of society.