To achieve its reduction targets for CO

2

emissions, the Group has developed dual capital financial and carbon accounting,

using management tools for both long-term strategic projections and investment decisions, as well as for infra-annual

operational management.

A reliable management process that secures the execution of the Groups climate strategy

A granular projection model, based on in-depth knowledge of the Group’s operational performance.

MITIGATION

REDUCE OUR EMISSIONS USING HIGH-PERFORMANCE MANAGEMENT TOOLS

THE CO

2

MEDIUM-TERM PLAN (CO

2

MTP)

2030 projection of the Group’s generation activities and energy sales via the consolidation of the following indicators:

GHG emissions (kt CO

2

eq.)

Electricity and heat generated and sold

(MWh eq. elec)

Fuels consumed and sold (MWh HHV)Electricity capacities (MW)

based on operational assumptions common to the entire Group, combined with internal

scenarios on market decarbonization

at the level of each sales entity and each generation asset as a function of their technology

load factors country consolidation methods etc

Define Group CO

2

objectives

ENGIE’s management has assigned limits not to be exceeded

for the main GHG emission sources of its activities (energy generation,

gas and electricity sales) along an SBTi well-below 2°C trajectory.

Milestones are set over the Group’s entire Net Zero trajectory

(2025, 2030, 2045) and allocated to each GBU.

1

3

Integrate CO

2

in investment management

Each investment decision must be made respecting

the carbon budgets assigned to the GBUs. To do this,

the Group has developed a CO

2

budget management

tool similar to the management of CAPEX budgets.

It allows to track the remaining CO

2

budget over the year

and the medium-term to avoid exceeding the limits set by

the top management. In addition, an internal price of CO

2

is integrated in the financial valuation of the project.

This price is based on changes in carbon pricing according

to internal scenarios of market decarbonization.

Allocate and manage CO

2

budgets

Since 2021, the Group has integrated non-financial items

in its medium-term financial plan (MTP) to assign CO

2

budgets.

The GBUs develop their operational decarbonization strategy

so as not to exceed the limits set (budget N+1, 2025, 2030

and 2045 limits).

As of 2023, an infra-annual management of emissions

will be conducted using quarterly GHG indicators. It will be

integrated in the management dialog on the operational and

financial performance via the Quarterly Business Reviews (QBR).

2

The trajectories are consolidated in a CO

2

performance cockpit shared with top management

CO

2

MediumTerm Business Plan

Updated every year

Via

Quarterly Business

Reviews QBR

Management of infraannual

performance

4

Aligned with the wellbelow 2C SBTicertified

trajectory and allocated by activity

2030 and

2025 limits

1

In line with the threeyear financial MediumTerm Plan MTP

Annual projections

until 2030

2

Allocated by activity

Allocations of CO

2

budgets

for year N1

3

2023 INTEGRATED REPORT - 75

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