Workstream have been carried out at Engie for four years to anticipate the chronic impact of climate change on production

for the different technologies as well as the impact of the evolution of extreme events on the Group’s assets.

They were made possible thanks to the collaboration with the Institut Pierre Simon Laplace on one side and the mobilization

of the Group’s operational experts on the other side.

PHYSICAL RISKS REVIEW – CLIMATE ADAPTATION

Integrity of the facilities. Asset integrity may be affected

by the increase in the number of extreme events.

For the last three years, the Group has organized itself

to boost its resilience against four major risks: heatwaves,

drought floods and extreme winds In 2023 mud slides

forest fires and extreme rainfall for hydraulic activities

and the temperature of rivers for thermal activities

will also be studied

Examples of existing impacts due to climate change

Summer 2021: Inability of firefighters to come to a site adjacent

to Elengy because of too many local fires

Summer 2022: Damage to the foundations of a solar facility

in Italy due to drought

All this work allows for the development of adaptation plans for the Groups assets and activities currently being rolled out

after a pilot phase in 2022 as well as the integration of the impact of climate change in the Groups investment decisionmaking

process see page 76

Health of employees and subcontractors In addition to

the risks discussed above particular attention is paid

to the impact of extreme heat and thermal stress

combination of temperature and humidity on employees

and subcontractors

Examples of existing impacts due to climate change

Summer 2021 Inability of ENGIE employees in the Middle East

to come to work because of extreme heat 50C

Summer 2022 Support of the housing relocation of ENGIE

employees in Pakistan in order to ensure continuity of service

following floods

Evolution of production. While renewable energy (solar,

wind and hydro) is essential in building a Net Zero Carbon

system, it remains the most affected by the physical

impacts of climate change. In the regions where ENGIE

operates, hydroelectric generation is the most exposed

technology with the strong variations in annual and

infra-annual generation expected between now and 2050.

Conversely, thermal assets are expected to be particularly

resilient in terms of production variation.

Examples of existing impacts due to climate change

Cold wave in Texas: -€30 to €40 million on net income loss

Drought in France and Portugal in 2022: buybacks of 1.3 TWh

for 127 M€ EBIT

Change in demand. The impact of climate change on

the change in demand results in a change in heating

and cooling needs. Heating needs should decline

sharply, while cooling needs are expected to increase

massively over the coming decades.

Minimum and maximum evolutions of ENGIE’s existing sites bewteen

2020 and 2050 according to a high warming scenario (RCP8.5).

Wind Power

Hydropower

Thermal

Solar Power

0%-3%

PRODUCTION

+5%-2%

+7%-8%

+18%-15%

0

Evolution between 2020 and 2050 according to a significant

warming scenario (RCP8.5) on median demand in the countries

where ENGIE operates heating and cooling activities.

Cooling

Heating

-20% to -13%

+13% to +109%

DEMAND

0

2023 INTEGRATED REPORT - 73