Green bonds

1. Group’s issuance history

ENGIE is at the forefront of the green bond market and was amongst the first corporate to issue a green bond when it issued its first green bond in April 2014. Since then, it has been a regular issuer of such instrument to support its ambitious development plan in renewable energy and energy efficiency. At the end of December 2025, ENGIE’s total green bond issuance reached ~€27 billion, further reinforcing the Group’s position as one of the leading corporate issuers on the green bond market.

2. Allocation principles and frameworks

Since 2017, and in line with best market practices, the Group’s green bonds are governed by the terms of a referential framework – Green/Financing Framework – which is updated regularly. The last version of the Green Financing Framework is dated March 2026, and fully complies with the Green Bond Principles 2025 (GBP) administered by the International Capital Market Association.

The principles of the Green Financing Framework of March 2026 are as follows:

• the funds raised are allocated to projects supporting the transition to a low-carbon economy directly linked to ENGIE’s strategy (“eligible green projects”). The eligible green projects must fall in a pre-defined category of projects and meet certain technical criteria. These eligibility criteria were determined by ENGIE and reviewed by Moody’s Investors Service.
• until the funds raised are entirely allocated to eligible green projects (or after, in case of a substantial change in allocations), ENGIE is committed to providing information in its Universal Registration Document on the fund allocations made during the period concerned;
• the funds may be allocated to eligible green projects carried out after the issue of the green financing instrument, or used to refinance capex or opex on eligible green projects having taken place in the 24 months prior to the issue of the green financing instrument . The allocated amounts are calculated after deduction of any external funding already dedicated to these projects;
• the funds raised can be allocated to refinancing other green financing instruments previously issued by ENGIE. For each issue, ENGIE undertakes to allocate at least 50% of the funds raised to new spending (on eligible green projects) not allocated before;
• as of December 31 of each year, the Group must hold cash (and cash equivalents) of an amount at least equal to the funds raised by the green bond(s), less amounts allocated to fund eligible green projects at that date.

A Green Financing Committee meets regularly to discuss market developments and projects likely to be financed by green bonds. It is jointly led by the ESG Department and the Corporate Finance Department and brings together the contributing GBUs and support functions.

3. Contribution of funded projects to Sustainable Development Goals

The June 23 Green Financing Framework defines eligible project categories which contribute to at least two of the United Nations Sustainable Development Goals (“SDGs”), namely goal 7. Affordable and Clean Energy and goal 13. Climate Action.

The categories of projects and their eligibility criteria are available in the Green Financing Framework.

4. Impact reporting methodology

Calculating the contribution of eligible projects to avoided CO₂ emissions

Methodology of the calculation since 2024

ENGIE uses the concept of avoided emissions for its customers to enhance the decarbonizing nature of its products and services. The Group has developed an internal calculation methodology and a database of emission factors which are regularly updated to bring them into line with international standards on the subject.

For a given customer need (e.g. electricity supply), the emissions avoided by an ENGIE product or service correspond to the difference between the baseline emissions and the emissions of the ENGIE product/service. All emissions are calculated using the LCA (Life Cycle Assessment) approach. The baseline corresponds to the market average of solutions that the customer would have had access to in order to satisfy its needs, in the absence of ENGIE. For each ENGIE product generating avoided emissions, particular care is therefore taken in defining the baseline, in order to build a credible and consistent scenario over time of user behaviour by country. In particular, this baseline evolves over time to reflect the decarbonization of energy systems.

Avoided emissions can therefore be calculated over the lifetime of an ENGIE asset, or on an annual basis. In the case of green bonds, avoided emissions are expressed on an annual basis.

Emissions factors are a key element in calculating avoided emissions. ENGIE uses an internal database, maintained and developed by a dedicated R&D team. It is based on the external sources (IPPC guidelines, Ecoinvent, Enerdata for example).

For renewable electricity generation projects, the baseline corresponds to the average electricity consumption mix of the country in which the project is located, reflecting the average of technologies supplying the country’s electricity. This baseline is compared with the life-cycle emissions of the ENGIE asset (solar, wind, hydro or thermal asset consuming decarbonized fuel).

For energy storage projects, the decarbonizing character comes from the fact that the assets are charged with electricity when the network is experiencing low demand (and therefore when the electricity is low-carbon) and are discharged during peaks in demand in order to relieve the network, when the electricity on the network is high in carbon. The emissions avoided come from the difference in the grid’s emission factor between the peak (baseline) and off-peak periods, taking into account losses at the storage asset.

For countries where data was available, daily peak and off-peak emission factors averaged over the year were reconstructed using hourly data. For other countries, a simplified and conservative methodology was applied: the emissions of the ENGIE asset are based on the country’s average electricity consumption mix, and the baseline (i.e. the network during peak periods) is modelled by a gas turbine.

For renewable gas projects, the baseline corresponds to the gas mix of the country in which the project is located, including a penetration rate for renewable gases (biomethane and green hydrogen).

To calculate the contribution of energy efficiency projects (including green buildings) to avoided emissions, ENGIE evaluates them by multiplying the energy savings brought by the project by the emissions of the energy mix of the country where the project is developed. Avoided emissions are calculated for one year of project operation, considered in the normal operating phase.

For clean mobility projects, avoided emissions are calculated by comparing the level of emissions of ENGIE projects with a baseline scenario, in this case the use for the same distance travelled of vehicles representative of the average vehicle fleet in the country or region of the project, taking into account local decarbonization trends (electrification of part of the fleet, greener fuels).

Methodology of the calculation before 2024

For renewable energy projects, the methodology for calculating avoided emissions is based on a comparison of the Life-Cycle Analysis (LCA) emission value of the energy generation technology being used by the project and that of the energy mix of the country in question. ENGIE estimates the contribution to avoided emissions resulting from green bond-funded projects by multiplying the difference between the two LCA values stated, with the plant’s capacity and the technology’s average load factor. The contribution to avoided emissions is calculated for one year of operation of the projects, considered in a full operational mode and taken at 100% regardless of the Group’s ownership rate of these projects.
Per-country reference data on average operating rates of technologies used and the average CO2 emission rates per kWh of the generation mix were drawn from data from Enerdata. The technologies’ LCA data is derived from work performed by the Intergovernmental Panel on Climate Change (IPCC). For the projects involving bioenergy and injection in the network, the quantities of biogas produced and injected into the network are considered to avoid an equivalent quantity of energy of the country mix.

For energy storage projects, The methodology for calculating the contribution to avoided emissions for storage projects is based on a comparison of the emission factors of the energy production technique implemented by the project and the reference scenario. In the case of pumped storage, a gas turbine is used as the reference. ENGIE estimates the contribution to avoided emissions of green bond-funded projects by multiplying the difference between the above emission factors by the average production of the facilities. The contribution to avoided emissions is calculated for one year of operation of the projects, considered in full operational mode and taken at 100% regardless of the Group’s ownership rate of these projects.

For energy efficiency projects, the calculation of avoided emissions is done by comparing the level of emissions of ENGIE projects with a reference scenario, the use of an individual gas heating system in the case of a district heating network, or individual air conditioning in the case of a district cooling network. The contribution to avoided emissions is calculated for one year of operation of the projects, considered in a fully operational mode and taken at 100% regardless of the Group’s ownership rate of these projects.