Acting for the Environment

The Group’s Purpose, enshrined in its bylaws, places the environment at the heart of its concerns, based on the two components of the transition to a carbon-neutral economy and a positive impact on the Planet. The Group’s environmental policy is part of its broader corporate social responsibility policy, and has been drawn up in coherence with the other Group policies with which it interacts: health and safety, human resources, ethics, risks, purchasing, industrial safety, etc.

The environment is a major challenge for ENGIE and a key asset for creating value with its stakeholders. Its preservation, at the very least, through respect for the “Avoid/Reduce/Compensate” sequence, and whenever possible its improvement through the notion of “Positive Balance”, enable us to maintain the availability and richness of the natural resources that the Group uses for its activities and makes available to its customers.

The Group also adheres to the major international principles in favor of preserving the environment, and displays its support for the UN Global Compact, the UN Sustainable Development Goals, the OECD Guiding Principles and the Paris Climate Agreement.

Committing to the Climate

Certain that we are facing a climate emergency and fully aware of the importance of the role that we play, our Group has set itself the goal of contributing to a transition to a carbon-neutral world by considering the control of its greenhouse gas emissions as a major challenge. Since 2015, we have been firmly committed to aligning ourselves with the Paris Agreement. We are drastically reducing emissions related to our industrial activities, and we obtained in 2020, the SBTi “2°C” certification, followed by the SBTi “well-below 2°C” certification in February 2023, for our 2030 objectives, a key step towards the Group’s net zero emission by 2045.

Committing to Nature

December 2022 was a major step for biodiversity with the signing of the Kunming-Montreal Global Biodiversity Framework (GBF). Numerous economic players, including ENGIE, joined forces during this 15th Conference of the Parties to demonstrate their involvement and underline the need to act immediately to halt the loss of biodiversity and reverse the downward trend, while also continuing efforts to respect the Paris Climate Agreement. ENGIE is involved in the development of the Science Based Targets Network (SBTn) guides and participates in the Taskforce on Nature-related Financial Disclosures (TNFD) forum. To identify the necessary steps to become aligned with the European directive and the new international frameworks, the Group has analyzed how its practices deviate from these regulations, then worked on the implementation of the LEAP method (Locate, Evaluate, Assess, Prepare).

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To support them, ENGIE sets ambitious targets, proposes new policies, raises awareness among all its employees and implements concrete actions, for example:

• Greening its vehicle fleet by encouraging the renewal of the fleet with electric vehicles by 2030;
• Sobriety of its buildings by reducing Group-wide energy consumption by 35% by 2030;
• Responsible digital consumption practices, for which employee training is an essential element of success.
• Moderate and responsible business travel. The business travel policy was revised in January 2024, with the aim of significantly reducing the number of trips. To achieve this, in particular, a “carbon cost” was added to travel expenses to encourage their reduction and raise employee awareness of environmental impact.

Making our power grids more reliable

• ENGIE operates power transmission networks in Brazil, Peru and Chile. These networks have loss rates and unavailability rates measured by a SAIDI (System Average Interruption Duration Index) indicator.

Lengths considered (per country in kms)

Length considered in the calculations:

• Gralha Azul: All TL’s operated by Engie except TL Irati Norte – Ponta Grossa
• Novo Estado: All TL’s operated by Engie except TL Serra Pelada – Xingu C1 and C2
• Some transmission lines operated by ENGIE (like those in Peru) are only used to carry out energy from our generation facilities and are thus considered as part of these assets. So their lengths, availability, reliability performance and transmission losses rates are not computed here.
• Gralha Azul and Novo Estado: network fully operational from March 2023 (commissioning date).

Transmission losses

Remarks:

• TEN is the interconnection system between the former SING (Norte Grande Interconnected System) and the SIC (Central Interconnected System) networks in Chile. It is operated both ways: when the current flow is inverted, the electrical power goes to zero. In this range, the measurement equipment is less reliable which explains the high value for the transmission losses. In 2023, the calculations have taken into account a case of force majeure among the Chilean electricity authorities, which explains a higher result than in previous years.
• Losses of TL in Peru are not computed anymore because directly connected to thermal power plants (their losses correspond to the auxiliary power supplied from the system).
• In 2023, Brazil will see the commissioning of major transmission networks (Novo Estado). These networks link up with the northern part of Brazil and circulate a higher electrical intensity than the other networks, which explains the higher result.
• Here is the formula used to calculate the transmission losses : Transmission Losses (in %) = Total amount of losses / Total amount of trasmitted power

Line Availability

Remark: Here is the formula used to calculate the availability of the transmission lines :
Availability TLs (%) = ∑ (Ext lines/100) x N° of available minutes) / ∑ (Ext lines/100 (total) x N° of available minutes) > 100 %

Whereas: N° of available minutes) = N° of Total minutes – N° of forced outages minutes due to internal cause

In 2024, this availability rate resulted in 1 hour and 34 minutes of unavailability over the year.

Research and Innovation in the service of the energy transition

With its Research & Innovation division, ENGIE has the ability to identify, explore, experiment and deploy solutions that will make the energy transition possible and apply them to our industrial facilities or those of our customers and partners.

• In areas related to ENGIE’s strategy, chosen in close collaboration with the operational entities
• By acting simultaneously on all time horizons
• By orchestrating different means of intervention
• By combining internal expertise, partnerships and collaborations

In 2014, ENGIE also set up a venture capital fund ENGIE New Ventures, which invests in energy startups, to complement its existing activities and resources and stimulate internal innovation within ENGIE.

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ENGIE and the Sustainable Energy Transition label

The energy sector is one of the biggest emitters of greenhouse gases, which is why ENGIE is taking action to preserve the planet, by reducing its emissions and protecting biodiversity. Developing renewable energies, creating a Sustainable Energy Transition label, supporting the decarbonization initiatives of our customers in all sectors, increasing the use of sustainable funding with green bonds, investing in innovative technologies, such as synthetic fuels, etc.

The Group deploys the TED label in all the regions in which it develops, builds and operates solar and onshore wind projects. To date, 11 countries have been audited and certified: France, Belgium, Brazil, South Africa, Chile, India, Mexico, Spain, Italy, the United States and Canada, representing nearly 85% of solar and onshore wind activities.

These certified countries rigorously implement ENGIE’s commitments, from design to decommissioning of a wind or solar project. The TED label is a real guarantee of quality and attests to the expertise of ENGIE employees and their commitment to working alongside local players.

ENGIE and the sustainable management of hedgerows label

In 2023, ENGIE Solutions committed to the development of the Hedges Label. The aim is to encourage the wood-energy sector to adopt more sustainable production of supplies, preserve biodiversity and adapt to the effects of climate change. By signing a convention with Afac-Agroforesteries aiming to develop virtuous hedge-growing practices, ENGIE Solutions has promised that the whole of the Group will source 20% of wood chips used in biomass boilers from operations with the Hedges label by 2026.