ADAPTATION

PREPARE RESILIENCE BY MOBILIZING ALL EXISTING PROCESSES

Mobilize research and innovation

To reach a better understanding of climate

change and its impacts on ENGIE, a partnership with

the Institut Pierre Simon Laplace has been signed.

The goal is to model, as precisely as possible,

future trends in energy production as a function

of climate change scenarios (RCP 4.4 and RCP 8.5)

as well as the impact of extreme events on all

the Group’s technologies in the different regions

of the world.

Revise strategic processes

The impact of climate change on the Group’s strategy

is also studied as part of a country-by-country approach

or through an analysis of the major climate regions

that are of interest to ENGIE. The Group examines

this impact according to four main factors: country risk,

the value of existing assets, the strategic objectives

for 2030 and strategic challenges specific to the countries

studied in the context of the three IPCC climate scenarios

(RCP 2.6, RCP 4.5 and RCP 8.5).

1 2

Integrate the impact of climate change

in the management of investments

Adaptation to the physical risks of climate change

is embedded in the Group’s investment process.

Before any new investment, an analysis of sensitivity

to the change in production or energy demand and

the evolution of extreme events is computed.

Integrate adaptation within

the risk management process

The principal focus for increasing asset resilience is

the integration of the physical risks of climate change

into the Group’s ERM (Enterprise Risk Management) process.

Various risks are studied:

• changes in production / energy demand.

• the integrity of assets in relation with the evolution

of extreme events. The reduction in insurance coverage,

the increase in premiums and the risks incurred via

the supply chains are also taken into account.

• the health and well-being of employees, particularly

because of changes in thermal stresses.

3 4

The Group’s climate road map is built on interactions with nature-related issues

as well as societal-related issues, more particularly, the imperative for a just transition.

Responses to climate challenges are

intrinsically linked to those of nature

on one hand climate disruption

is one of the five causes of the

biodiversity collapse while on

the other Naturebased Solutions

are a credible response to the

need for resilience The Group is

committed to limiting its impact

on the other planetary boundaries

with targets for biodiversity water

forests pollution waste etc

see biodiversity notebook

NATURE

Questions of resource availability

arise both when it comes to

the end of fossil fuels and to

the development of renewable

energy The Group notably

conducts studies on

the following issues

Criticalities of certain resources

required for the successful

development of renewable energy

Conflicts of usages on certain

renewable resources

such as wood biomass

RESOURCES

The Group must meet the important

challenge of a just transition that

includes the human impacts of such

a transformation see Just Transition

notebook

In several cases the social

dimension was the first reason for

the sale of assets at the request

of local authorities for example

In the same way the participation

of the regions is a necessary

condition for the successful

development of renewable energy

JUST TRANSITION

76 - CLIMATE NOTEBOOK