ENGIE : Biodiversity notebook 2022

BIODIVERSITY NOTEBOOK 2022

EDITORIAL

Our businesses and projects integrate biodiversity protection from the investment decision to operations for two simple reasons: the loss of biodiversity reduces the performance of ecosystem services and has an impact on climate change. If we fail to halt the loss of biodiversity, we lose the fight against climate change. The deployment of the technologies needed to decarbonize our energy mix must take into account the expectations of local stakeholders with regard to biodiversity. For this reason, at ENGIE, we have strong commitments in terms of both the climate and biodiversity. Our strength lies in our ability to combine a global approach to the energy system with a local approach to

biodiversity and stakeholder engagement. We have set ambitious objectives for biodiversity, through act4nature international: in particular, we undertake to have implemented action plans in coordination with stakeholders for 100% of sites near a protected area by 2030 and to implement nature-based solutions to combine climate change adaptation of assets with the preservation of biodiversity.

Pierre-François Riolacci

Executive Vice President in charge of Finance,

Corporate Social Responsibility and Purchasing

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GOVERNANCE THAT MEETS THE CHALLENGES

As climate and biodiversity challenges are intrinsically connected, they are subject to rigorous attention and management at the highest level of the Group.

A governance process based on demanding benchmarks

ENGIE's biodiversity strategy is broken down into objectives monitored by the Executive Committee and the Board of Directors (via the Ethics, Environment and Sustainable Development Committee) and validated externally by a third party such as the steering committee act4nature international. Performance progress is measured at least once a year and published in official documents (website, Universal Registration Document and Integrated Report). All results are verified each year by external auditors.

ENGIE wishes to incorporate the future recommendations of the Taskforce on Nature-relatedFinancial Disclosures (TNFD) and the Science Based Targets for Nature (SBTN) as soon as possible. The Group monitors work in progress and participates in the pilot phase of the SBTN, as these are two relevant tools for thein-depth analysis of the risks and opportunities concerning nature and for incorporating the financial aspect of biodiversity-related impacts into the strategy.

Integrating biodiversity into project analysis

ENGIE does not develop any projects without assessing their impact on biodiversity and systematically strives to make a positive impact. The Group implements a four-stage process:

1. Avoid any negative impact;
2. If this is not 100% achievable: reduce negative impacts as much as possible;
3. Offset those which cannot be reduced;
4. If the residual impact cannot be offset: abandon the project.

When the potential impact cannot be avoided or offset, the Group does not hesitate to abandon projects. This was the case for two projects in the Grand Est region of France due to the potential impact on species and habitats, particularly on Red kites, a species classified as vulnerable on the IUCN Red List. This was also the case in the United States, where a solar farm project would have disturbed gopher tortoises.

A collaborative approach

Believing that a collaborative approach is essential to increase its impact, and keen to share its commitment and experience, in 2021 ENGIE took part in major events aimed at accelerating collective engagement in favor

of biodiversity: the One Planet Summit, the first part of COP 15, the European Business and Nature Summit and the World Nature Congress. We have also signed up to Business for Nature's Call to Action to defend biodiversity at the highest level.

The Marseille Manifesto adopted on this occasion was based on three major themes:

• adopting a global framework for biodiversity - transformative, effective and ambitious - at COP 15 in May 2022;
• incorporating the protection of nature into the global post- Covid recovery; and
• taking coordinated action against the interconnected crises of climate and biodiversity.

Eva Zabey,

Executive Director, Business For Nature

We need to shift our relationship with nature. The upcoming COP15 Biodiversity Conference is our best chance to secure a healthy future for people and the planet. Businesses are part of the solution; they must rapidly scale and speed up action and raise their voice for nature publicly. For example, by calling on governments to adopt a mission to halt and reverse biodiversity loss by 2030 and to redirect subsidies that are harmful to biodiversity. Companies can take 'no regret' actions today like ensuring their supply chains are deforestation free and investing in the protection and restoration of ecosystems. We must act now and work together to deliver an equitable, nature-positive and net-zero future.

04 I 2022 BIODIVERSITY NOTEBOOK

BIODIVERSITY AT THE HEART OF

ENGIE'S STRATEGY AND ACTIVITIES

To contribute to the fight against the global erosion of biodiversity, remedy its impact, and continue to benefit from ecosystem services, since 2010, the Group has been committed to integrating biodiversity into its strategy with a global approach: from project conception to a site's end of life.

Since 2012, this approach has been accompanied by external commitments to preserving global biodiversity, thereby reaffirming the importance of biodiversity in the Group's strategy and its desire to help achieve global biodiversity objectives. On this basis, for several years ENGIE has been committed to the Stratégie nationale française pour la biodiversité (French National Biodiversity Strategy, SNB), the Business and Biodiversity Pledge, and the preservation of UNESCO World Heritage sites. For over a decade, the Group has also been supported by the French Committee of the International Union for Conservation of Nature (IUCN) and France Nature Environnement (FNE).

In 2021, ENGIE renewed its worldwide act4nature international commitments and was involved in the French initiative "Entreprises engagées pour la nature" (Companies committed to nature). The Group also set out a new road map for 2020-2030 based on the major pressures on biodiversity identified by the IPBES (Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services), the United Nations SDGs (Sustainable Development Goals), joint act4nature commitments and issues specific

to its activities. These individual commitments can be categorized into four areas, each associated with one or more objectives:

Area 1

Footprint and ecological

continuity

ENGIE can contribute to the preservation

of biodiversity at its various sites

by optimizing the use of its land footprint, restoring green corridors and reducing the presence of invasive non-native species.

Area 2

Climate change

The preservation of biodiversity and the fight

against climate change share strong ties.

Reducing greenhouse gas emissions

to combat global warming is one of the key requirements for preserving biodiversity.

The reverse is also true: by preserving the ecological

balance and functionalities of a habitat, climatic conditions are naturally regulated.

Area 3			Area 4
Value chain		Awareness
Impacts on biodiversity are felt	The Group's commitments can only be
throughout the value chain. For this reason,	achieved with the active involvement
the Group includes the potential impacts	of its employees. To achieve this, ENGIE is developing
of its own activities, as well as those	resources for raising awareness and
of its supply chain, in its risk and opportunities	sharing good practices, making them accessible
analyses and maintains an ongoing	to all and disseminating these resources widely.
dialogue with its stakeholders
throughout the value chain.

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Area 1 • Footprint and ecological continuity

Priority sites for biodiversity*

Continued development of action plans1 for sites located in or near biodiversity hotspots using the new definition of a priority site and now including all sites located near a protected area2, with no exceptions.

Ecological site management

Implementation of ecological site management3 for all of the Group's industrial activities, with no phytosanitary products used and minimal maintenance of green spaces in harmony with nature.

Our achievements in 2021

• 41% of action plans deployed by the end of 2021.
  Our objectives

2025: 50% of priority sites with action plans established in consultation with stakeholders.

2030: 100% of priority sites.

Our achievements in 2021

• As of the end of 2021, 28% of sites are maintained without phytosanitary products and in compliance with local biodiversity programs.

Our objectives

2025: 50% of sites. • 2030: 100% of sites.

Area 2 • Climate change

Nature-based solutions

Contribution to the implementation of nature-based solutions (NbS) in the regions to combat both climate change and biodiversity issues.

Area 3 • Value chain

Our achievements in 2021

• Work with the IUCN French Committee and the internal biodiversity network to identify solutions that comply with the IUCN Standard.

Our objectives

• 2022: 10 projects identified that comply with the IUCN Standard for Nature-based Solutions. • 2025: implementation of these projects.

Avoid Reduce Offset

Implementation of the "avoid reduce offset" workflow in development projects submitted to the Commitments Committee (CDE) globally and in consultation with stakeholders.

Supply chain

Integration of biodiversity criteria in life-cycle assessments in order to perform an in-depth analysis of the impacts and dependencies on biodiversity related to the Group's activities throughout the value chain with a view to identifying the issues and the appropriate solutions to tackle them.

Our achievements in 2021

• Revised CSR matrix included in the files presented to the CDE to incorporate compliance with the "avoid reduce offset" workflow. Project files greater than or equal to €30 million reviewed by the Group CSR Department.
• Increased monitoring of matrix implementation scheduled for 2022 including the deployment of internal training.

Our objectives

2022: 100% of files submitted to the Group CDE analyzed for biodiversity issues in consultation with stakeholders4.

2025: Review procedure gradually extended to include files with amounts below to the Group CDE's submission threshold.

Our achievements in 2021

• Analysis of two activities via life-cycle assessment (solar and biomethane). The results will be compared against other methods used in the context of SBT for Nature.

Our objectives

Review every year two Group activities until 2025.

Area 4 • Awareness

Awareness

Provision of biodiversity awareness modules for all employees (renewal of the 2018 objective).

Sharing

Creation of a platform for sharing best practices.

Our achievements in 2021

• The platform was launched in 2021.
  Our objectives
  Platform in operation by the end of 2022.

Our achievements in 2021

• October 2021: training modules created and made available online. Around 300 employees trained in 3 months.
• Group biodiversity workshop launched.

Our objectives

At least 2 modules/year by 2025, offered in 3 languages.

• 2022-2023:3,000 employees trained/year.
• 2024-2025:5,000 employees trained/year.

• This objective is included in the 2030 CSR objective of implementing environmental plans for all sites, activities and projects in consultation with stakeholders 1 - The action plans are part of a defined Group-level framework and are verified on site annually by auditors.
  2 - Expand the type of areas included in the list of protected areas.
  3 - Industrial sites included in the Group's environmental reporting scope totaled 792 in 2021.
  4 - In 2020, ENGIE made investments (excluding acquisitions) of €2.3 billion, of which approximately 73% were approved by the CDE.