DECARBONIZE ENERGY PRODUCTION (SCOPES 1 AND 3)

The GHG emissions related to ENGIE’s energy production (electricity, heating and cooling) have decreased by 44% since 2017 over

all of scope 1 (direct emissions associated with fully and proportionately consolidated assets) and scope 3 (indirect emissions

associated with ENGIE equity associates). This represents 74% of the reduction target to reach 43 Mt CO

2

eq. in 2030 versus 2017.

Four primary levers are used: the phase-out

from coal, the reduction of the gas-fired

power plants (closure of several plants at

the end of life), the reduction in the utilization

time of gas assets (reduction of the load

factors) and the decarbonization of

the heating networks.

Between 2017 and 2022, thermal

generation (coal and gas) fell by 22%

(-35 TWh). In 2030, gas-fired power plants

in Europe will act primarily as flexible

capacity to support the development

of renewable energy.

The Group currently estimates that the

Ukrainian crisis accelerated the decreases

in the use of fossil gas and the utilization

rate of our power plants over the 2025-2030

period; the uncertainties related to the

evolution of the energy system make any

increase in the 2030 targets difficult at

this stage.

The strong growth in the centralized

renewable fleet, as a replacement for

thermal assets, plays an essential role in

the Group’s decarbonization and enabled

a reduction from 343 gCO

2

eq. / kWh to

216 gCO

2

eq. / kWh in the carbon intensity

of the energy production (scopes 1+3)

between 2017 and 2022. This is ENGIE’s

first decarbonization lever and will count

for around half of the decrease in carbon

intensity over the 2017-2030 period.

Moreover, in 2022, renewable energy and

recovery energy represented more than

50% of the energy mix of ENGIE’s large

heating networks and industrial services

in France.

Three main levers are used the end of

coal sales since 2017 the reduction in

gas sales related to energy sufficiency

energy efficiency and the transfer to other

energy vectors as well as the greening of

sales biomethane and hydrogen This last

lever will become more important between

2022 and 2030 before becoming the first

decarbonization lever between 2030

and 2045 All the reductions in sales

volumes between 2017 and 2022 have

been replaced by the development of

renewable electricity sales

DECARBONIZE THE USE OF THE SOLD PRODUCTS (GAS SALES)

GHG emissions linked to the use of the sold products (sales of fuels, primarily natural gas) have fallen by 23% since 2017.

This represents 66% of the reduction target to reach 52 Mt CO

2

eq. in 2030 versus 2017.

DECARBONIZE IN THE LONG TERM

20302045

Over the longer term the Group will

continue to use all the levers presented

and is targeting a reduction of at

least 90 in its absolute emissions

compared to 2017 across all scopes

Massive use of renewable gases

biomethane renewable hydrogen etc

will progressively become the Groups

primary decarbonization lever with

renewable electricity capacity ahead

of the overall reduction of fossil gas

To a lesser extent carbon capture CCS

technologies will help the Group to

achieve its 2045 targets

To become competitive renewable

gases will have to benefit from public

support the creation of partnerships

and market mechanisms in order to

scale up these new energy vectors

This will also imply an adaptation of

existing gas networks in order to achieve

the goal in the case of France of

100 renewable gases in the transport

and distribution networks in 2050

CHANGE IN GHG EMISSIONS RELATED TO ENERGY GENERATION TO 2030 (SCOPES 1+3)

E m i s s i o n s i n M t C O2 e q.

Coal

phase-out

Coal

phase-out

Coal

phase-out

Gas

portfolio

reduction

Gas portfolio

(reduction)

and greening

Greening

of fuels

Gas

portfolio

reduction

Gas plants

load

factors

reduction

2017

107

2022

60

2045

Net

Zero

74% OF 2030

REDUCTION

TARGET

REACHED

IN 2022

-44%

2025

61

2030

43

CHANGE IN GHG EMISSIONS RELATED TO THE USE OF SOLD PRODUCTS TO 2030 (SCOPE 3)

Coal

phaseout

Reduction

in gas sales

Reduction

in gas sales

Green gases

sales

Green gases

sales

Green gases

sales

2045

Net

Zero

2017

80

2022

61

E m i s s i o n s i n M t C O2 e q.

66% OF 2030

REDUCTION

TARGET

REACHED

IN 2022

-23%

2025

60

2030

52

2023 INTEGRATED REPORT - 69

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