How sustainability is governed at EDF Energy

We want to be held accountable to 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 and seek independent assurance of our reported 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 The Better Plan.

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. Additionally, they provide guidance and leadership on decisions relating to The Better Plan performance, including assurance and reporting.

Each of the goals and targets for under each of our Better Energy Ambitions is embedded within the relevant business plans within EDF Energy. Responsibility for implementing the strategy and delivering results against our targets sits with the relevant lead within the business. Oversight of performance against each individual goal or target takes place within the relevant functional or business governance structure. Collective oversight of collective performance against the Better Energy Ambitions and The Better Plan is delegated by the Executive Team to the Sustainable Business Oversight Group (as detailed below). 

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.

The SBC did not meet in 2017 due to organisational changes to our Executive Team. There are plans in place for this meeting to take place in 2018.

 

Sustainable Business Panel

The Sustainable Business Panel (SBP), chaired by our Director of Strategy and Corporate Affairs. It is composed of internal and external experts to challenge and support us in the delivery and communication of our progress against The Better Plan.

The Panel was established to gain a better understanding of the perspectives of our external partners on specific issues to help us to consider the impact of wider stakeholder issues on our business and reputation. 

The SBP is concerned with our strategic response to sustainable business issues and with progress in delivering The Better Plan. The Panel also works to advise on best practice and how we respond to external trends and challenges.

Beyond the chair and secretariat, the EDF Energy members of the SBP are drawn from our Senior Leadership Team depending upon which business issues are being discussed. Internal and external members act as the business’s sustainability conscience. External members have been appointed for their strategic and sustainability expertise.

The SBP met once in 2017 and discussed EDF Energy’s Future Electricity Market Vision.

Sustainable Business Oversight Group

The Sustainable Business Oversight Group is a key internal sustainability governance body that is composed of senior internal stakeholders, tasked to provide oversight of collective progress in delivering of The Better Plan and to provide advice and support to the business on future delivery plans. They also provide oversight of our sustainable business governance framework to ensure it remains effective and efficient.

It also includes representatives from our trades unions and a graduate to help us understand the views of our existing people and of the next generation.

The Sustainable Business Oversight Group met once in 2017 and provided collective oversight of the delivery against the targets under The Better Plan.

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 completed a review of our governance processes to make sure they continue to be suitable and effective. 

Material issues discussed by governing bodies

 (2017/2018)

Sustainable Business Panel

Discussion PointChallengesOur Actions

The Future Electricity Market Vision

How to communicate EDF Energy’s strategy on the Future Electricity Market Vision - Communicate EDF Energy’s purpose (CAP 2030) be transparent and consistent

Additional narrative for The Better Plan to include more on the diversity of our energy mix and its alignment with CAP 2030

 

 

 

 

 

 

 

Sustainable Business Oversight Group

Sustainable Business Oversight Group

Discussion PointChallengeOur Action

Sustainable Business Governance

Provide more oversight on collective performance against the 16 targets that underpin the Better Energy Ambitions with a focus on continuous improvement.

New Sustainable Business Oversight Group and terms of reference agreed which outline a clear performance oversight role for members.

The Better Plan Performance Reporting

How to develop new reporting scorecards for The Better Plan and how this should be communicated to internal and external stakeholders

New performance score cards developed in collaboration with key internal stakeholders. Bi -annual score cards implemented and communicated to all employees through the internal intranet and staff magazine.

 

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.