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The EDF Group's CSR Agreement

EDF / FCE-CFDT – Presentation, 14 September 2007

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EDF - a committed Group,like other multinationals

Major companies committed to CSR

Around forty international framework agreements: Danone, Carrefour, Accor, Club Méditerranée, Renault, Rhodia, Adia, Lafarge in France,

As well as Endesa, ENI, Statoil, Freudenberg, etc., and voluntary procedures of various kinds: FT, La Poste, CDC, Suez, Casino, L’Oréal, Nestlé, Unilever, IBM, Shell, Ford, ABB, etc.

A long history of many initiatives within the EDF Group: Agenda 21, ISO 14001 certification, ethical approach, compliance with the Global Compact,

public service commitments (in France), sustainable development indicators, Mission

Solidarité actions, etc.

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Brenspar

Facing issues raised by globalisation

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EDF opts for a negotiated approach. An opportunity to:

- reassert the specific nature of what we do

- support the Group's recent construction

- enrich social dialogue throughout the Group

- have a consistent reference framework

- help control risks

- mobilise and motivate employees

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An approach that supports the construction of the Group

A long-term approach:

Two years of shared discussion and six months of negotiation

Unanimous signature on 24 January 2005

Implementation of the agreement planned over three years and jointly monitored

A negotiated approach to:

- have a consistent reference framework making it possible to highlight our actions as a socially responsible Group and to give impetus to new initiatives;

- enrich the social dialogue throughout the Group and build a place of social dialogue at multinational level ensuring that commitments are followed up;

- mobilise and motivate employees with respect to actual achievements that improve the life of personnel and the company in general; and in so doing enhance the satisfaction and pride of our teams about working in the EDF Group;

- increase the collective buy-in of the Group's international dimension and activities, as well as buy-in of social responsibility and sustainable development as the foundation of its values.

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An Agreement that sets the benchmark

An innovative Agreement:

- due to its method: a global Agreement, negotiated directly between representatives of workers and management at the main companies controlled by the EDF Group, with the support of the international trade union federations;

- its objective: strike a balance between internal social responsibility and external social responsibility;

- its quality as a unifying project in the construction of the Group's identity.

An ambitious Agreement:

due to its magnitude (22 articles, around 50 principles and commitments) and scope (all companies controlled by EDF, around the world).

A realistic Agreement:

- which complies with the principle of subsidiarity (no single normative framework, but rather common general principles that can be applied in each country);

- which is actively implemented within the various companies and monitored by the Group's Social Responsibility Dialogue Committee (CSR/DC);

- which involves multiple players: management, workforce representatives, as well as certain issues, local partnerships, NGOs, etc.

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Social responsibility:one pillar of the EDF Group's performance

Financial Performance

Business Excellence Social & Environmental

Responsibility

Benchmark Group in sustainable

development

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Balance between 'internal' CSR and 'external' CSR

- International standards and ILO Conventions (Article 1: Respect for human rights – International Labour Organisation conventions)

- Commitments and guidelines specific to the EDF Group on:

- The balance of responsibility between the Group and its employees. . Art. 2: Health and safety

. Art. 3: Employees' ability to adapt and their career paths: training, mobility

. Art. 4: Social protection, specifically coverage for industrial accidents, illness and pensions

. Art. 5: The fight against discrimination

. Art. 6: Anticipation of and social support for industrial restructuring

. Art. 7: Principle of making employees interested and involved in the results of their company

- The balance of responsibility between our customers and subcontractors. Art. 8: Actions in favour of access to electricity. Art. 9: Actions in favour of destitute customers. Art. 10: Vigilance over our subcontractors' practices in terms of respect

for the law, health & safety, ethical conduct with customers and respect for the environment

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Balance between 'internal' CSR and 'external' CSR

- Protecting the environment and promoting energy efficiency. Art. 11: The environmental safety of our facilities, our equipment

and our processes. Art. 12: Exemplary environmental actions by EDF Group companies

and employees . Art. 13: Promoting energy efficiency by customers and within

Group companies

- Urban commitment. Art. 14: Helping integrate the disabled. Art. 15: Involvement in economic and social development programmes . Art. 16: Involvement of the company and its employees in general-

interest actions. Art. 17: Solidarity by the Group and its employees in the wake of

natural disasters impacting on electricity networks outside our areas of activity

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Balance between 'internal' CSR and 'external' CSR

- Principles of governance

. Art. 18: Sharing information

. Art. 19: Dialogue between employees and managers

. Art. 20: Social dialogue

- Methods for monitoring and checking the Agreement (creating a Corporate Social Responsibility Dialogue Committee within the EDF Group)

. Art. 21: Implementation of the Agreement

. Art. 22: Methods for monitoring and checking the implementation of the Agreement

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Deployment and appraisal of the Agreement for 2005:creation of the CSR Dialogue Committee (CSR/DC)

The EDF Corporate Social Responsibility Dialogue Committee, chaired by Pierre Gadonneix, met for the first time on 4, 5 and 6 April 2006:

25 workforce representatives from Group companies (an average of 2 trade unionists per country except France: 2/federation+EWC secretary, UK: 4 and China, Vietnam and Mexico: 1 per country) + 1 representative per international industry federation (4),

as well as a 'managerial team' similar to the CSR/DC bureau: with representatives from the Social Affairs Management, EDF Energy, DEMASZ, BAP, Light, as well as from RTE, the Delegation for Regional Action, International Management, Management for Sustainable Development

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Deployment and appraisal of the Agreement for 2005: method

The Agreement has been communicated and deployed within each Group company in connection with local social dialogue and action plans with accompanying priorities have been defined locally (cf. monitoring group for France and association of business areas and regions).

The first Group appraisal was carried out with the HRDs of the various entities, coordinated by EDF's Industrial Relations Department. The appraisal was discussed and debated at the first meeting of the Corporate Social Responsibility Dialogue Committee in early April 2006.

Three different documents were drafted on that occasion:

1. The actual appraisal of the Agreement's implementation

2. A collection of 'Socially Responsible Practices', comprising feedback from the Group's various entities (Annex 1) – some 50 reproducible good practices)

3. All of the analyses and actions plans for 2006 from all Group companies (Annex 2) that were used in the local consultation process between workforce and management representatives.

This presentation is reproduced in the exact same way at each annual meeting of the CSR/DC (attended by all members). Moreover, these documents are regularly examined and debated with the 'select bureau' throughout the year.

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Deployment and appraisal of the Agreement for 2005: main lessons learned

1. Despite the very different economic, social and cultural contexts, the Group companies were already at a very high level in terms of complying with the commitments made.

2. A dynamic process was launched with respect to the Group's collective commitment and led to new initiatives and practices and buy-in in order to meet the requirement that the Agreement continue to make progress.

3. An expansion of the social dialogue and the recurrence of mobilising themes were seen everywhere (Articles 3, 5, 9, 10, 13, 14)

4. However, the CSR approach still needs internal collective buy-in and greater 'proximity'.

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CSR/DC impact and the Group's 2006 Action Plan

1. Implementation of action plans in compliance with the principle of subsidiarity and local social dialogue and sharing of 'good practices'.

2. Finalisation, together with the bureau, of work on indicators and joint travail management/union work to deepen the jointly defined themes:

[Article 2: workplace health and safety, a subject which is better monitored by the EWC]

Articles 3 and 6: career paths, employee mobility and industrial restructuring

Article 5: the fight against discrimination

Article 9: actions targeting destitute customers

Article 10: subcontracting

Article 13: energy efficiency

Article 14: assistance in integrating the disabled

[Article 21: communication and collective buy-in]

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2005 results and 2006 action plan at EDF SA

1. 2005 results:

1. Implementation and operation of an Agreement monitoring group

2. In-depth work on the choice of monitoring indictors for the parent company

3. A fresh look at actions already launched (health & safety, handicap agreement, etc.).

4. Fresh impetus: call centres label, socially responsible subcontracting, diversity project, initiatives in connection with the European year of mobility.

2. 2006 actions:

1. Continue the work initiated in respect of Articles 3/6, 5, 10, 14.

2. Identify new priorities: Articles 8, 9, 13 and 19.

3. Monitor issues such as the call centres label.,

4. Bolster collective buy-in.

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Main lessons learned two years after the signature of the agreement pursuant to the CSR/DC in April 2007

A confirmed dynamic approach revolving around the Group's collective commitment, enhanced managerial involvement and ongoing coordination between the various approaches linked

to sustainable development and CSR.

Very satisfactory appraisal of the implementation of the CSR Agreement in 2006.

The main objectives have been achieved: the social, societal and environmental challenges have been taken on board within the Group and within the companies. On the whole, the companies complied with the commitments made in the agreement.

The approach to these challenges was the subject of high-quality social dialogue, at both Group level (CRS/DC) and in the national bodies. Managerial involvement grew, making it possible to ensure that CSR is more deeply anchored in business-related processes (with, in particular, the monitoring of CSR indictors in management performance review).

Employees are more informed about the social responsibility approaches taken by their companies and the Group as a whole. In their respective businesses, buy-in of multiple themes from the CSR Agreement is now visible thanks to action plans, awareness-raising sessions and the sharing of good practices. They are increasingly being invited to contribute directly (cf. One planet ambassador, Planet action, sustainable development trophies).

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Main lessons learned two years after the signature of the agreement pursuant to the CSR/DC in April 2007

Alarms were sounded – Who took part in the progress approach set out in the Agreement.

The joint monitoring groups from the companies and the CSR/DC itself played their part as an 'alarm'. The ensuing debates contributed to adjustments to the approaches taken by management and the companies in question (e.g., update of a sustainable development charter between EDF and its suppliers). Serious and fatal accidents involving Group employees and subcontractors were the most striking events. They were analysed and information on them was sent to interested parties and to the local and global trade union organisations (CRS/DC).

Fresh impetus

Fresh impetus was particularly visible in the CEECs and the Americas on the issues of the disabled, outsourcing, anti-discrimination, and early adoption of and social support for restructuring. In all of the Group's regions, the involvement of workforce representatives and employees in sustainable development issues dealt with by the companies really made itself felt. In its second year of deployment, the CSR Agreement genuinely contributed to the common culture within the EDF group, which made social and environmental responsibility one of the three key pillars of its performance.

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Conclusion and avenues to explore for the debate:Proposed actions for 2007

2007, the last year of the CSR Agreement of 24 January 2005, will be a time for producing an overall assessment of the three years in question. The aim will be to check that the commitments made have been respected, as far as possible within the context of each individual Group company. The three-year assessment of the Agreement focused on detecting and showcasing the direct impetus of the agreement, which would not have come into being if there had not been this concerted global approach.

The 2006 appraisal of the Agreement made progress and also noted progress that still needs to be made to comply with the commitments made and the commitments anticipated for the Group in the medium term.

In 2007 the aim will therefore be to jointly monitor the issues set out in the Agreement, emphasising certain articles that seem to be particularly relevant this year:

the fight against discrimination (Article 5): pursue the impetus observed, specifically with regard to taking diversity on board;

destitute customers (Article 9): in a year when multiple companies are separating the distribution and marketing arms of their business (in response to European Commission directives);

the safety and security of our facilities and respect for the environment (Articles 11 and 12): in order to pursue the Group's collective involvement in the earth's environmental challenges;

the integration of the disabled (Article 14): by stepping up action taken everywhere and preparing as best as possible for the Paralympic Games in Beijing.

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Conclusion and avenues to explore for the debate:Proposed actions for 2007

Relations with subcontractors

Getting employees interested and involved in the Group's results

Social protection for all (sickness cover, pensions)

Lastly, to go even further in ensuring collective CSR buy-in by the Group's management and employees, the following actions could be implemented:

The directory of socially responsible practices from Group entities as well as a summary of the appraisal of how well the CSR Agreement has been implemented could be used as a basis for communicating the Group's achievements in 2006 to employees.

Now that the actual achievements have been made, external communication could be gradually extended: the EDF Group's communication kit could be shared and refined in order to be made available to management and workforce representatives.

In order to ensure the long-term deployment, follow-up and monitoring of the Agreement and to have the time needed to work on its renewal, the chairman of EDF and all of the relevant trade union federations extended the Agreement's duration by one year (they signed an addendum to this effect). The next Agreement should be negotiated throughout 2008 and will cover a new term of three years.