Workstream have been carried out at Engie for four years to anticipate the chronic impact of climate change on production
for the different technologies as well as the impact of the evolution of extreme events on the Group’s assets.
They were made possible thanks to the collaboration with the Institut Pierre Simon Laplace on one side and the mobilization
of the Group’s operational experts on the other side.
PHYSICAL RISKS REVIEW – CLIMATE ADAPTATION
Integrity of the facilities. Asset integrity may be affected
by the increase in the number of extreme events.
For the last three years, the Group has organized itself
to boost its resilience against four major risks: heatwaves,
drought floods and extreme winds In 2023 mud slides
forest fires and extreme rainfall for hydraulic activities
and the temperature of rivers for thermal activities
will also be studied
Examples of existing impacts due to climate change
Summer 2021: Inability of firefighters to come to a site adjacent
to Elengy because of too many local fires
Summer 2022: Damage to the foundations of a solar facility
in Italy due to drought
All this work allows for the development of adaptation plans for the Groups assets and activities currently being rolled out
after a pilot phase in 2022 as well as the integration of the impact of climate change in the Groups investment decisionmaking
process see page 76
Health of employees and subcontractors In addition to
the risks discussed above particular attention is paid
to the impact of extreme heat and thermal stress
combination of temperature and humidity on employees
and subcontractors
Examples of existing impacts due to climate change
Summer 2021 Inability of ENGIE employees in the Middle East
to come to work because of extreme heat 50C
Summer 2022 Support of the housing relocation of ENGIE
employees in Pakistan in order to ensure continuity of service
following floods
Evolution of production. While renewable energy (solar,
wind and hydro) is essential in building a Net Zero Carbon
system, it remains the most affected by the physical
impacts of climate change. In the regions where ENGIE
operates, hydroelectric generation is the most exposed
technology with the strong variations in annual and
infra-annual generation expected between now and 2050.
Conversely, thermal assets are expected to be particularly
resilient in terms of production variation.
Examples of existing impacts due to climate change
Cold wave in Texas: -€30 to €40 million on net income loss
Drought in France and Portugal in 2022: buybacks of 1.3 TWh
for 127 M€ EBIT
Change in demand. The impact of climate change on
the change in demand results in a change in heating
and cooling needs. Heating needs should decline
sharply, while cooling needs are expected to increase
massively over the coming decades.
Minimum and maximum evolutions of ENGIE’s existing sites bewteen
2020 and 2050 according to a high warming scenario (RCP8.5).
Wind Power
Hydropower
Thermal
Solar Power
0%-3%
PRODUCTION
+5%-2%
+7%-8%
+18%-15%
0
Evolution between 2020 and 2050 according to a significant
warming scenario (RCP8.5) on median demand in the countries
where ENGIE operates heating and cooling activities.
Cooling
Heating
-20% to -13%
+13% to +109%
DEMAND
0
2023 INTEGRATED REPORT - 73