Opening new opportunities

Transcription

1 Opening new opportunities Our CSR ambition February 2018

2 Summary 1/ Context Becoming low-carbon and connecting to stakeholders 2/ Integrated Performance CSR at the heart of ENGIE s business model 3/ A new ambition CSR ambition contributing to ENGIE s transformation 2

3 1/ Context

4 A unique positioning to embrace the energy revolution Low CO 2 power generation mix & strong positions in renewables 88% low CO 2 emissions, 21% renewables (1), #1 in solar & wind energy in France, present in many countries on every continent ENGIE s strategy to gradually end its coal activities Stop all projects which had not yet been firmly committed Since 2015 ENGIE announced the sale or closing of ca. 60% of its coal capacity Leading energy company supporting countries in their move towards the energy transition Without waiting for worldwide spread carbon prices, ENGIE uses a carbon price in its investment assessments Developing the uses of natural gas to replace more carbon emitting energies and paving the way for green gas tomorrow Biogas, hydrogen, small-scale LNG 100,000 people dedicated to energy efficiency solutions Enabling customers to achieve their own sustainability objectives Priority to lowest CO 2 options CO 2 light activities (2) will represent more than 90% of Group s Ebitda by 2018 (1) Data at 100%, as of end of June 2017, excluding pumped storage for hydro capacity (2) Low CO 2 power generation, gas infrastructures, downstream 4

5 Evolution of ENGIE GHG emissions in accordance with the 2 C target of the Paris Agreement Our 2 C trajectory based on a 100% renewable scenario in Europe and a 2 C IEA scenario outside Europe as mentioned by Isabelle Kocher at COP23 Our mix combines development of renewable and use of natural gas for transition Greenhouse gas emissions : Reduce by 85% our scope 1 emissions by 2050: Group s CO 2 emissions from electricity generation from ~140Mt in 2012 to ~20Mt by 2050 (~120Mt in 2016) Exit from coal Development of renewable energy Push for Green Gas In 2012, the Group s CO 2 emissions from electricity and heat purchases (scope 2) amounted to ~5.7Mt. The disposals and closures of assets reduced scope 2 emissions to ~3.9Mt in Scope 3 CO 2 emissions accounted to ~211 Mt in 2016 of which 68% from gas sales to third parties 5

6 TERRAWATT Initiative: massive solar scale-up The context of the 21 st century Energy Revolution A massive expansion of electricity both geographically and in its usages, leading to a fast modernization, universalization and de-fossilization of our power systems The alliance of renewable energies, digital power management technologies, power storage and energy efficiency, to provide everyone everywhere with an energy service of quality, clean and much cheaper than today. Because it is universal, simple, scalable, flexible, clean and competitive, solar PV provides a simple and pragmatic solution to a very substantial part of our our needs for low cost power. The Terrawatt Initiative Engie, together with a group of energy, industry, technology and finance global leaders decided at COP 21 in Paris to launch, alongside the International Solar Alliance, the Terrawatt Initiative (TWI), the first private nonprofit organization aiming at accelerating the cost reduction of solar PV generation, by tackling the structural barriers existing in the market, to unlock as fast as possible all its benefits for humanity. TWI is willing to (i) promote the deployment of 2.5TW of solar PV in the 10 coming years, (ii) draw collectively a positive vision the society the Energy Revolution may lead to, (iii) propose a pathway and concrete steps to achieve it, and (iv) mobilize the world s public opinion through education, information and communication actions and to empower the citizens into the Energy Revolution. As a first step, TWI promotes concrete political, economic, legal and financial actions. With its global network and partners, TWI actively works on (i) leaner regulations, (ii) more efficient market practices, in particular standardized contractual documentation, and (iii) structural risk mitigation tools. It offers technical assistance to accompany key stakeholders in their implementation, including via cross-cultural capacity building programs and leadership sessions. 6

7 Hydrogen: a key pillar of the energy transition Hydrogen: a key pillar of the energy transition Hydrogen technologies have the potential to create opportunities for sustainable economic growth Hydrogen could account for ~20% of total final energy consumed by 2050 Hydrogen could contribute to 20% of CO2 emissions reduction targets by 2050 Potential for hydrogen to power about 10 to 15 million cars and 500,000 trucks by 2030 Many uses in other sectors: industry processes, building heating and power, power generation and storage Source: Hydrogen Council s vision, Hydrogen, Scaling up study, November 2017 ENGIE is positioning on one of the most promising markets of the future The group is accelerating the deployment of its strategy to lead the energy transition by creating a global entity in charge of developing its activities in the renewable hydrogen market. This entity is being structured The objective is to materialize a renewable hydrogen business in order to make ENGIE s ambition of 10% of renewable gas by % in % in 2050 come true The end game is to have ENGIE becoming a renewable hydrogen major 7

8 Investing in new territories 165m ENGIE New Ventures fund dedicated to investing in businesses, developing innovative solutions that will transform our activities in the domain of the energy transition >1,200 startups reviewed by ENGIE New Ventures since its creation (2014) ENGIE New Ventures is the winner of the 2018 Cleantech Group Corporate Investor of the Year award 8

9 Find business solutions: call for projects 2,200 propositions submitted by startups in response to 70 calls for projects Call for projects to connect start-ups with innovative solutions that respond to the needs of businesses and customers 70 calls for projects have already be launched (France, Belgium, UK, Brazil, Chile ) Some examples: - Ideas for urban district renewal - New technology for small size bio gas plants - New application for Vertuoz, COFELY, energy monitoring software 9

10 Be part of the eco-system ENGIE member of the established by the Solar Impulse Foundation assess and select 1000 clean and profitable business solutions to protect the environment labelled Efficient Solutions to be presented to governments, businesses and institutions at COP 24 to encourage them to adopt more ambitious environmental targets and energy policies Work with external incubators who provide the premises, an ecosystem and coaching for both startups and our own project owners 10

11 2/ Integrated Performance

12 ENGIE well-positioned in CSR ratings and indexes ENGIE listed in the main indexes DJSI World, DJSI Europe Euronext Vigeo Eiris World 120, Europe 120, Eurozone 120 and France 20 CAC40 Governance A BBB A A- (1) A - B (1) ENGIE Sector average Climate 2017 Water 2017 CERTIFICATIONS Communication on progress: Advanced level 81% of revenues covered by ISO 14001, EMAS (2), other external EMS (3) certifications and internal EMS (2016) (1) Sector CDP (EDF, EON, RWE, ENEL, IBERDROLA, ENGIE) (2) Eco Management & Audit Scheme (3) Environmental Management Scheme 12

13 ENGIE first among CAC40 companies to publish an Integrated Report Objectives Provide a comprehensive understanding of the Group s value creation on the short & long term Make the company more attractive to investors, particularly SRIs Allow large customers to better understand ENGIE and initiate new partnerships Develop relations with all Group stakeholders, among which NGOs 2017 version based on an integrated thinking approach Connecting the CSR objectives of the Group and their contribution to long-term value creation, to take up the challenges of ENGIE and its stakeholders (materiality matrix) and to the United Nations Sustainable Development Goals 2018 new version to improve integrated information and transparency Update of the materiality matrix (through interviews, panels, on-line survey of stakeholders) More focus on value creation, ENGIE s commitments and partnerships Disclosure including TCFD recommendations and calculation of avoided emissions More infographics, interviews 13

14 A CSR training adapted to interlocutors CSR training for sales department and business developers CSR in procurement training in November 2017 U.Camp First ephemeral campus July 2017: Training on stakeholder engagement 14

15 Green finance to support ENGIE s ambitious development strategy in renewable energies and energy efficiency Categories of eligible Green Projects (1) : Renewable energy projects: hydro, geothermal, wind, solar, biogas, biomass and any other renewable sources of energy Energy efficiency projects: heating & cooling network, co-generation, optimization of buildings or plant efficiency, systems for energy management (Smart Grids, Smart Metering) Natural Resources Preservation projects: water and/or waste management Criteria set to select projects validated by Vigeo Eiris Transversal Governance with the establishment of the Green Bond Committee Regular reporting on projects financed with Green Bond proceeds, with impact indicators (GHG emissions avoided, renewable energy production, reduction of energy consumption, reduction of waste) validated by Deloitte In 2017 ENGIE successfully issued 2 Green Bonds for 2.75bn In January 2018 ENGIE placed its first Green Hybrid Bond of 1bn Total amount of Green Bonds issued by ENGIE reaches 6.25bn, making ENGIE the largest Corporate issuer of Green bonds globally (1) Eligible Green Projects include investments in projects, major acquisitions of companies and minority equity participations, and R&D aiming at developing new products and solutions 15

16 3/ A new ambition

17 What is CSR for ENGIE? Long term business thinking Designing successful services & offers in line with the expectation of our clients Improving relationships with our stakeholders to deliver sustainable projects and reinforce our integration into the territories Mastering more efficiently risks (operational, environmental, regulatory, legal, reputation) including for supply chain Increasing staff engagement and attracting talents Improving processes and optimizing global costs Facilitating access to financing 17

18 A new CSR policy to address business trends Placing the environment at the heart of our activities Minimize our ecological footprint Promote a low carbon energy system Apply CSR criteria in all of our investment choices and their financing Help our customers to minimize their ecological footprint Giving meaning to our action Commit to generating shared value with civil society Expand the scope of our CSR commitments to our suppliers Guarantee constant respect for fundamental rights Acting like a responsible community Actively contribute to social debate Foster diverse talents and competencies Always act in line with our ethical principles Make everyone s safety a priority Promoting a different way of consuming Make residential, industrial customers and local authorities actors in the energy transition Promote access to energy for all Enhance sustainability awareness among our customers 18

19 On track to achieve 2020 Group ambition ENGIE committed in 2016 to 6 ambitious CSR objectives to be achieved by 2020 To support its strategic ambition and demonstrate its impacts on society 2016 results on track, the Group is fully committed to implement its sustainable growth strategy CSR governance designed to ensure commitment across the Group CSR performance reviews led by CSR Department with Business Units Objective 1) Supporting our customers in the energy transition Key Performance Indicator Effective value in 2015 Effective value in 2016 Target value in 2020 Satisfaction rate among our B2C customers na 81% 85% 2) Renewables Share of renewable energy in the electricity generation capacity 18.3% 19.5% 25% 3) Greenhouse gas emissions % reduction in ratio of CO 2 emissions to energy production compared with % -11.3% -20% 4) Stakeholder dialogue % of industrial activities covered by a suitable dialogue and consultation mechanism na 20% 100% 5) Gender diversity % of women in the Group s workforce 21.6% 21.9% 25% 6) Health and safety Internal frequency rate for occupational accidents < 3 19

20 Contribution of ENGIE CSR Objectives to United Nations SDGs ENGIE CSR objectives support the Group s ambition of energy transition leaderships and contribute to the global sustainable development priorities defined by the United Nations 25% (1) renewable energy in the generating capacity mix, new renewable projects, sustainable energy access for all with 20 million (1) beneficiaries of sustainable-energy access programs at the Base of the Pyramid 1,5bn Expenditure in emerging & digital technologies between 2016 and 2018, 115m ENGIE New Ventures fund investing in startups Objective of Health & Safety (internal accident frequency rate below 3 (1) ), our livesaving rules to reduce fatal accidents Objective of gender diversity (25% (1) of woman in the workforce), 33% of woman appointed as Topex in 2016 Support our customers in the energy transition (B2C satisfaction rate above 85% (1) ), develop Stakeholder Engagement (all industrial activities covered by a suitable dialogue (1) ), objective of 100% of target sites with an integrated environmental management plan drawn up in collaboration with their stakeholders (1) Cut CO 2 emissions ratio for energy production by -20% (2), exit from coal power generation (60% cut in coal power generation capacity as of End 2017, vs 2015) Member of the CEO water mandate from 2008, objective to reduce freshwater withdrawal ratio associated with energy generation ENGIE s commitment to the French National Strategy on Biodiversity (SNB) from 2012 (1) By 2020 (2) By 2020, vs 2012 level 20

21 Developing new commercial offers, aligned with the Group s CSR ambition: Green electricity supply in France Since October 2016, for new contracts, ENGIE exclusively sells green electricity at no additional cost to Households and small Business in France. Offers are covered by Guarantees of Origin from renewable energy producers. 1,2 Million green electricity clients as of End 2017 Objective of 2 Million green electricity clients by the end of 2018 * ENGIE purchases the equivalent of the amount of electricity consumed by the customer in Guarantees of Origin issued by renewable energy producers, for any new electricity contract subscribed by a particular customer, excluding the Happ'e electricity supply. A Guarantee of Origin certifies that electricity has been produced from a renewable energy source and injected into the electricity grid. 21

22 RASSEMBLEURS D ENERGIES PORTFOLIO 19 investments on 4 continents on 3 types of technologies beneficiaries of clean energy Group employees have invested in ENGIE Rassembleurs d Energies FCPE Off Grid electrification 6 3 N Company Country 1 Simpa Networks SHS India 2 Rural Spark SHS India 3 Ilumexico SHS Mexico 4 Fenix international SHS Uganda 5 PEG Ghana SHS Ghana 6 BBOXX SHS Rwanda/Kenya 7 KINGO SHS Guatemala 8 Mera gao Power microgrid India 9 Ausar Energy microgrid West Africa 10 CDS microgrid Mauritania Clean cooking solutions N Company Country 1 Green Bio Energy, (cookstoves, ren briquettes) Uganda 2 Sistema Bio, biogas Mexico 3 Simgas, biogas Tanzania 4 Atec, biogas Cambodia Energy efficiency N Company Country 1 Les toits de l espoir France 2 Le Chênelet France 3 Habitat et Humanisme France 4 LivingStones Belgium 5 Estera France 22

23 Impact investment fund ENGIE Rassembleurs d Energies Recent investments overview Micro biogas and cookstoves Created in 2016, active in Cambodia ENGIE Rassembleurs d Energies participated in 1 financing round as series A Objective: improve lives of over people in Cambodia and South East Asia by 2020 Solar Home System using Pay As You Go Created in 2013, active Latin America (Guatemala, Colombia) ENGIE Rassembleurs d Energies lead latest financing round > people served to date > beneficiaries of clean electricity >1 500 employees Impact of ENGIE Rassembleurs d Energies (as of October 2017) > Group employees have invested in ENGIE Rassembleurs d Energies FCPE 23

24 Conclusion A CSR policy revised Development of an internal CSR ambassadors network CSR still represented at high level at ENGIE The Group wishes to be 2 C compliant Follow-up of TCFD recommendations and harmonized avoided emissions calculation Work on transparency in the framework of the Duty of Care Act voted in France in 2017 CSR ambition contributing to ENGIE s transformation 24

25 APPENDICES

26 ENGIE Top Management Involvement in CSR Terrawatt Initiative: global non-profit organization, bringing together governments, investors, energy suppliers, NGOs and citizens to promote competitive solar power as a decisive tool to address power needs, sustainable development goals and climate change Launch of Foundation for social investment and human development (Fondation pour l investissement social et le développement humain, «FISO») Foundation «Agir Contre l Exclusion»: in favor of social and civil commitment to fight against all forms of exclusion Green Finance: one of the pioneers in Green Bond issuance, support to the Paris Green Financial Center and Green Bond Principles Carbon Price: determination of an internal Carbon Price applied to our investments and support of worldwide market mechanism to promote a higher carbon price Access to energy: commercial offer development Social network: Twitter, LinkedIn Definition or our ambition for 2020 with 6 CSR objectives and strong involvement of CSR within the Group Integrated Thinking 26

27 Full allocation of the 1 st Green Bond ENGIE s Green Bond launched in 2014 A green bond for a total of 2.5 billion, in 2 tranches comprised of 1.2 billion for 6 years and 1.3 billion for 12 years 2.5 billion allocated at end of 2016 on 48 projects 77 projects with an average size of 32 million. Projects funded by Green Bond from 2014 to 2016 % FUNDS ALLOCATED BY GEOGRAPHICAL AREA % FUNDS ALLOCATED BY TECHNOLOGY Western Europe 40.3% Africa 0.4% Central Europe 4.0% Latin America 45.7% Wind 22.7% Solar 14.8% Biomass 9.6% Cooling network 1.7% Energy Efficiency 13.4% Geothermal 1.4% North America 9.7% Hydro 36.3% 27

28 RENEWABLE ENERGY: ~ 20% OF GROUP S GENERATION CAPACITY As of 06/30/2017 Hydro (1) Wind Biomass & biogas Solar AT 100% % CONSOLIDATION (2) NET OWNERSHIP (3) 3% 5% 4% 3% 4% 4% 21% 22.0 GW installed 71% 21% 15.8 GW installed 72% 24% 11.9 GW installed 67% in MW Hydro (1) Wind Biomass & biogas Solar EUROPE 4,032 3, NORTH AMERICA LATIN AMERICA 11, MIDDLE EAST, TURKEY & AFRICA ASIA OCEANIA TOTAL 15,621 4, ,010 in MW Hydro (1) Wind Biomass & biogas Solar EUROPE 3,994 2, NORTH AMERICA LATIN AMERICA 7, MIDDLE EAST, TURKEY & AFRICA ASIA OCEANIA TOTAL 11,313 3, in MW Hydro (1) Wind Biomass & biogas Solar EUROPE 2,453 2, NORTH AMERICA LATIN AMERICA 5, MIDDLE EAST, TURKEY & AFRICA ASIA OCEANIA TOTAL 7,923 2, (1) Excluding pumped storage (2) % of consolidation for full and joint operations affiliates and % holding for equity consolidated companies (3) ENGIE ownership 28

29 DISCLAIMER Forward-Looking statements This communication contains forward-looking information and statements. These statements include financial projections, synergies, cost-savings and estimates, statements regarding plans, objectives, savings, expectations and benefits from the transactions and expectations with respect to future operations, products and services, and statements regarding future performance. Although the management of ENGIE believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of ENGIE securities are cautioned that forward-looking information and statements are not guarantees of future performances and are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of ENGIE, that could cause actual results, developments, synergies, savings and benefits to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the public filings made by ENGIE with the Autorité des Marchés Financiers (AMF), including those listed under Facteurs de Risque (Risk factors) section in the Document de Référence filed by ENGIE (ex GDF SUEZ) with the AMF on 24 March 2017 (under no: D ). Investors and holders of ENGIE securities should consider that the occurrence of some or all of these risks may have a material adverse effect on ENGIE. 29