Sustainability at ENGIE - July 2021
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Sustainability at ENGIE
July 2021
Sustainability at ENGIE | June 2021 1
A recognized integrated report, Leading CSR ratings
attentive to stakeholders
Committed to Net Zero by 2045, across all
scopes, and following a “well below 2°C”
trajectory
A certified impact fund,
purpose driven
A leader on the corporate
green bond market worldwide
€12.75bn collected to date
2 Sustainability at ENGIE | June 2021 2
1 2 3 4 5
MANAGEMENT NETWORKS POLICIES OBJECTIVES & IMPACT BOOSTER
ACTION PLANS
CSR is represented at all Additional networks Several policies1 frame ENGIE follows a set of 19 A Group impact fund
levels of the management: complete the governance sustainability at ENGIE and objectives for 2030, boosts our positive impact
Board, EXCOM, with CSR ambassadors and are regrouped in the main proving its positive impact and leads the way towards
Corporate, BUs & entities focus groups open to all CSR policy on the Planet and People sustainability
employees
1 Environmental policy; Societal policy; HR and Health and Safety development policy;
Purchasing and Supply Policy; Ethics Policy; Social Responsibility Policy; Tax policy
Sustainability at ENGIE | June 2021 3
OUR POSITIVE IMPACT
Sustainability at ENGIE | June 2021 4
ENGIE’s purpose
Act to accelerate the transition towards a carbon-neutral economy,
through reduced energy consumption and more environmentally-
friendly solutions.
The purpose rings together the company, its employees, its clients and its
shareholders, and reconciles economic performance with a positive impact on
people and the planet.
ENGIE’s actions are assessed in their entirety and over time.
Sustainability at ENGIE | June 2021 5
2020 figures
INTELLECTUAL HUMAN
• 900 researchers • 172,703 employees, of whom 21.5% are
• €190 million allocated to R&D women & 24.1% of managers are women
• €50 million invested in start-ups in 2020 • 29,481 hires
• €180 million invested in ENGIE New Ventures • 70.1% of employees trained
INDUSTRIAL NATURAL
• €4 billion growth Capex • 76.8 million m3 of water consumed
• €2.4 billion maintenance Capex • €553 million in environmental expenses
• €1.3 billion in financing of nuclear provisions (investments and recurring expenses related to
environmental protection)
CAPITALS • 285 TWh of primary energy consumption
FINANCIAL SOCIETAL
€
• €34 billion in shareholders’ equity • ISO37001 certified anti-corruption process
• €13.3 billion in net cash • 25.1% of senior managers of nationalities other
• €22.5 billion in financial net debt than Belgian or French
• 4.0x net economic debt/EBITDA • €35 million invested by Rassembleurs d’Énergies
• Credit rating Baa1 (Moody’s) ; BBB+ (S&P) ; A- (Fitch) • €7.8 million annual endowment for the ENGIE
(26/03/2021) Foundation
6 Sustainability at ENGIE | June 2021 6
6 Key SDGs
7 Relevant SDGs
7
Sustainability at ENGIE | June 2021 7
Planet People Profit
Respecting planetary limits by acting Building a new and more inclusive Ensuring responsible and
in particular for the Paris Agreement world of energy together profitable performance
• 43 Mt CO2 eq from production of electricity (regardless • Frequency rate of accident (including suppliers on closed • 2021 NRIgs2 guidance reaffirmed: € 2.3bn to 2.5bn
of asset ownership), aligned with the SBT trajectory by 2030 sites) limited to 2.9 by 2030 (‘BRIGHT’ fully contributing)
• 52 Mt CO2 eq from gas sales, in line with the SBT trajectory • 50% women in the management of the Group by 2030 • 2023 NRIgs2 guidance3: € 2.7bn to 2.9bn (No contribution
by 2030 from ‘BRIGHT’)
• Score of 100 of the gender equity index at Group level
• 58% of renewable energy in the electric capacity mix by 2030 • Maintain commitment to “Strong investment grade” rating
• Helping its customers reduce their carbon emissions by 45 Other indicators followed • Dividend policy: 65-75% payout on NRIgs2 + €0.65 floor for
mt by 2030 • Parity objective in the Executive Committee 2021-23
• 100% of our preferred suppliers (except energy purchase) • Health & safety prevention rate • Growth Capex € 15 – 16 bn for 2021-23
certified SBT or SBT aligned by 2030
• Share of apprentices in Europe • €9-10 bn of disposals for 2021-23
Other indicators followed
• Share of employees with annual training
• GHG emissions from our ways of working
• Training of the staff most exposed to the risk of corruption
• Share of activities, projects and dismantling sites 2. Net Recurring Income group share
with an environmental plan
• Number of beneficiaries with access to clean and reliable
3. Main assumptions for these targets and indications: average weather in France,
energy full pass through of supply costs in French regulated gas tariffs, no major
• Share of industrial sites with an ecological management • Share of activities, projects and dismantling sites
regulatory or macro-economic changes, no change in Group accounting policies,
market commodity prices as of 12/31/2020, average forex rates as follows: €/$:
• Water consumption from industrial activities compared with a societal plan 1.23 for 2021, 1.25 for 2022 and 1.26 for 2023; €/BRL: 6.27 for 2021-2023. No
additional stringent lockdowns and a gradual easing of restrictions over 2021.
to 2019 • Responsible purchasing index score1
1 Index includes CSR evaluation, payment
delays and inclusive purchasing
Sustainability at ENGIE | June 2021 8
Carbon intensity Greenhouse gas emissions Path to
of energy production (gCO2e / kWh) on use of sold products (MtCO2e) Net
Zero
3481 • Coal exit
Corresponds to
target of 43 Mt
• Capex alignment : investments in
230 791 projects and regions compatible with
our targets
60
158 52 • Carbon budgets assignment
Net Net & carbon price integration
Zero Zero • Carbon objectives to top management
2017 2025 2030 2045 2017 2025 2030 2045 incentives
1 2017 being the reference for existing SBT 2°C trajectory certified 2030 targets
Sustainability at ENGIE | June 2021 9
Merit order for a ‘just Coal power generation Coal power generation
(GW@100%1) (# plants1,2)
transition’ that benefits
all stakeholders Closing
1. Closing 15.1 10
4
2. Conversion Conversion
-72%
3. Disposal
4
Disposal
4.3 no no
0.8 COAL 2 COAL
1.8
2015 2020 2023 2025 2027 2020 0
2027
1 As of 31 December
2 Base case of the coal exit route
Sustainability at ENGIE | June 2021 10Taking into account the social impacts of the transition to a low-carbon economy
Employment Regional benefits Stakeholder inclusion
Processes and initiatives to boost: Initiatives to create economic value Stakeholder inclusion to promote
- job opportunities, for the regions and benefits for the just transition in a co-constructive
communities way
- skills development
- and employee retention, Seeking cooperation-based
solutions between the company,
along with measures to support government and civil society
employees
Sustainability at ENGIE | June 2021 11Transformation of the ENGIE’s generation portfolio
2018 2025
8% 1%
Renewables
59%
Diesel Renewables
+ 2.0 GW
Renewables
58%
1.9 GW 0.8 GW 3.4 GW
Coal Installed
Installed Coal closure 10%
capacity capacity
Biomass
33% 0.7 GW 1
Conversion
Gas 29%
2%
Gas
Diesel
1. Conversion also includes the coal asset commissioned in 2019
Sustainability at ENGIE | June 2021 12Helping clients incrementally reduce their carbon emissions with a robust methodology
GHG emissions
(ton CO2e) ~20 Mt CO2e
avoided for clients in
Emissions that would have occurred 2020
1 under a credible baseline1 case (Mt)
1 Production of green energy
2
ENGIE’s contribution Decentralized energy
infrastructures
to the decarbonization
of a Client = 20 11
and associated services
Energy Savings certificates
5
1 minus 2 Purchase and resell
of green energy
2
Emissions related
to the use of ENGIE’s product or service
~45 Mt CO2e
Time avoided / year by
2030
1. The baseline is the most likely alternative in the absence of the product or service provided by ENGIE
Sustainability at ENGIE | June 2021 13(Cancun pledge)
UNSG Summit Pledge letter
Business commitment to a just
transition and green, decent jobs
Sustainability at ENGIE | June 2021 14Sustainability at ENGIE | June 2021 15
OUR CSR PERFORMANCE
Sustainability at ENGIE | June 2021 16ENGIE listed in the main indexes
DJSI World, DJSI Europe MSCI EMU ESG, MSCI Europe ESG Euro Stoxx 50 ESG
Euronext Vigeo Eris Europe 120 / Eurozone 120 / France 20 CAC40 ESG Stoxx Europe 600 ESG, Stoxx Global 1800 ESG
A
81 A-
A
A1+ B B 75 ENGIE
65 BBB 1
Sector
51 2 average
45 45
2020 2020 Climate 2020 Water 2020 2020 2020 2020
Communication on progress:
1 Ranked 21 on 55 within the multi-utilities sector
Advanced level
2 Median of the multi-utilities sector
Sustainability at ENGIE | June 2021 17Total GHG emission evolution* 2020 carbon footprint (175 Mt all scopes)
Mt CO2 éq
Energy 67.5 Mt **
237 production -37% since 2017
199
182 175
Use of 61.5 Mt
products sold -23% since 2017
2017 2018 2019 2020
-26% of total GHG emissions since 2017
All other 45.9 Mt
emissions -10% since 2017
-52% of direct GHG emissions since 2017
* Emissions likely to be revised from one year to the other by the introduction of new items or
ex-post corrections of existing items
** Including 36,4 Mt in scope 1 et 31,1 Mt in scope 3
18 Sustainability at ENGIE | June 2021 18A Climate Notebook
Climate governance disclosing our commitments in the
fight against climate change
• Climate under the responsibility of the • Reporting following TCFD
Board (as per internal regulation of the recommendations in the URD and
Board) integrated report
• Priority risks reviewed every year by the • Extensive work on activities and assets
board of the Group to assess impact of major
climate events
• Internal carbon prices and carbon
budget to comply with Group’s climate • Adaptation plans under construction to
targets ensure resilience of our business
• CSR targets on CO2eq emissions
covering the whole value chain
• Publication of a climate lobbying policy
19 Sustainability at ENGIE | June 2021 19ENGIE supported the Task Force on Climate-related Financial Disclosures work and is implementing
its recommendations. We are now currently:
• Assessing physical risks of climate change on our assets and activities
• Designing Group adaptation plans to reduce our vulnerability to climate change events
In details
1 2 3
We identified the specific vulnerability We built a partnership with IPSL Based on the elements, we shall rate and
to climate change of each type of assets own (Institut Pierre Simon Laplace) measure the potential impacts of climate
by the Group to get the projections to 2030 and 2050 of change on our assets/activities. Assets with
the 4 main climate change events relevant for high vulnerabilities will elaborate its
the needs previously defined adaptation actions plan.
4 climate change
vulnerability events
Sustainability at ENGIE | June 2021 20Hiring, Training,
Diversity Health & Safety
Engagement
Gender Equality Index Apprenticeship3 Safety
• France: 871 ; International: 801 • ~ 6,000 FTE1 • “No life at risk” program
• Target 2030: 100 globally • Target 2030: ≥ 10% of workforce • Injury frequency rate = 3.21.4
Gender Diversity • Apprenticeship training center • Target: ≤ 2.9 by 2030
dedicated to energy transition and
• 24.1%1 of women in management climate occupations Mental health
• Target 2030 : 50% of women in • “No mind at risk” program
management Training
• 9 commitments for workplace
• ~70%1 of employees trained wellbeing
Afnor diversity • Target 2030: 100%
label extended to ENGIE Care
October 2022 in France Employee commitment 2
• Social protection for all Group
• 90%1 proud to work for ENGIE employees worldwide by 2023
• > 84% fully committed
1. 2020 figures
2. ENGIE internal survey
3. In Europe
4. Excl. Covid-19 effects
Sustainability at ENGIE | June 2021 21PARTNERSHIPS
WITH CIVIL SOCIETY
INTEGRATED
INDUSTRIAL PROCESS
CSR performance objective;
criteria in investment process
METHODOLOGY
AND TOOLS
Stakeholder mapping and
Engagement Framework
DEDICATED TRAINING
For business developers and project managers
Sustainability at ENGIE | June 2021 22Directors Directors elected by the
representing the Shareholders’ Meeting upon
French State recommendation of the
appointed by decree French State (in compliance
with the French law)
Directors representing WOMEN MEN
employee-shareholders
elected at the
CEO 5* 5*
Shareholders’ Meeting
60% Independent*
14 Independent Chairman
A balanced and
Board of the Board independent Board
Members
16 meetings in 2020
98% attendance rate
Independent
Directors Directors
representing
employees elected Chairman
*In compliance with French law and Afep-Medef governance Code, directors representing
employees or employee shareholders are not taken into consideration when calculating the
by the employees percentage of women and independent directors.
23 Sustainability at ENGIE | June 2021 23Short-term incentives Long-term incentives
20% 25%
35% 32.5% ESG Criteria NRIgs
ESG and Profitability
non-financial - NRIgs
criteria 50%
- EBIT
Based on
relative growth
to peers
30% 25%
32.5%
ROCE Total
Cash and balance sheet
Shareholder Return
- Free Cash Flow
ESG & non-financial criteria : - Economic net debt
• 10% CO2 emissions ESG criteria :
• 10% Injury rate • 50% CO2 emissions
• 10% CSR rating • 25% women in management position
• 70% Other objectives • 25% Renewable energy
24 Sustainability at ENGIE | June 2021 24ERM approach for endogenous risks Duty of vigilance for exogenous risks
• Monitoring of main CSR risks on our • Identify risks within the supply chain and
activities: health & safety, climate change, prevent violations (French law)
water stresses, etc. • 4 main axis: human rights; health & safety;
environmental and societal; purchasing
Controversies management Dialogue to mitigate risks
• Constant monitoring using external tool • Participating in public debate, directly or via
• Examination at Board level business associations
• Stakeholder engagement on each project
• CSR risk analysis available in the non-
financial statement
Sustainability at ENGIE | June 2021 25Referring to major
Audited CSR performance
international standards
• Reasonable assurance notice covers 20 • Communication on corresponding
indicators (11 environmental and 9 social) table with GRI
• Moderate insurance notice covers all CSR • Ongoing work on the implementation
information based on an audit sample of TCFD recommendations
covering the most important information
• No reserve from the auditors
26 Sustainability at ENGIE | June 2021 26Adherence to the
Member of the
B Team >75%
Responsible tax Principles of assets funding pension liability
CFO Taskforce for the SDGs
invested with asset managers
signatories of UN PRI
€2.5bn
€5bn of assets funding Group’s French
pension liabilities
of Sustainable Revolving Credit Facility. with integrated ESG criteria
Margin index on
A pioneer & leader
on the Green Bond market two climate change KPIs: €30m of investments
1) direct CO2 émissions in gender equality funds
€12.75bn 2) renewable electricity capacities
of green bonds issued since 2014.
Green bonds represent 40% of bonds in
effect and 31% of the Group's total
≃ 20,000 100% of Money Market funds
gross debt at the end of 2020. invested by Group’s treasury
employees invested in solidarity fund with ESG investment screening
Rassembleurs d’énergies
27 Sustainability at ENGIE | June 2021 27A robust track record
A GLOBAL & DIVERSIFIED PORTFOLIO
• 19 active investments
• €35m invested as of end of 2020
Solutions énergétiques Solutions énergétiques Cuisson propre
collectives propres individuelles propres
SOCIAL LEADERSHIP
B.Corp certification
French
‘Société à Mission’
Economie circulaire Efficacité et sobriété
énergétique status
La Foncière
du Possible HIGH SOCIAL & ENVIRONMENTAL IMPACT
• 5.5 million beneficiaries for energy access
• 20,000 jobs created
EMPLOYEE ENGAGEMENT • 4 women CEOs, a gender equality focus
• 2 MtCO2eq avoided per year
≃20,000 employees
invested in Rassembleurs d’énergies solidarity fund • 3.9 Mt of waste processed per year
Sustainability at ENGIE | June 2021 28European Taxonomy
Committed to the EU goal of climate neutrality for 2050,
ENGIE supports the expansion in the EU of sustainable
~80%
finance of which the taxonomy – a classification system growth CAPEX* expected to
for economic activities viewed as sustainable – is an be compatible with draft
important element. European Taxonomy.
Member of the
European Financial Reporting Advisory Group (EFRAG) Taskforce
on non financial reporting (CSRD).
* Over 2021-2023
Sustainability at ENGIE | June 2021 29You can also read
