To achieve its reduction targets for CO
2
emissions, the Group has developed dual capital financial and carbon accounting,
using management tools for both long-term strategic projections and investment decisions, as well as for infra-annual
operational management.
A reliable management process that secures the execution of the Groups climate strategy
A granular projection model, based on in-depth knowledge of the Group’s operational performance.
MITIGATION
REDUCE OUR EMISSIONS USING HIGH-PERFORMANCE MANAGEMENT TOOLS
THE CO
2
MEDIUM-TERM PLAN (CO
2
MTP)
2030 projection of the Group’s generation activities and energy sales via the consolidation of the following indicators:
GHG emissions (kt CO
2
eq.)
Electricity and heat generated and sold
(MWh eq. elec)
Fuels consumed and sold (MWh HHV)Electricity capacities (MW)
based on operational assumptions common to the entire Group, combined with internal
scenarios on market decarbonization
at the level of each sales entity and each generation asset as a function of their technology
load factors country consolidation methods etc
Define Group CO
2
objectives
ENGIE’s management has assigned limits not to be exceeded
for the main GHG emission sources of its activities (energy generation,
gas and electricity sales) along an SBTi well-below 2°C trajectory.
Milestones are set over the Group’s entire Net Zero trajectory
(2025, 2030, 2045) and allocated to each GBU.
1
3
Integrate CO
2
in investment management
Each investment decision must be made respecting
the carbon budgets assigned to the GBUs. To do this,
the Group has developed a CO
2
budget management
tool similar to the management of CAPEX budgets.
It allows to track the remaining CO
2
budget over the year
and the medium-term to avoid exceeding the limits set by
the top management. In addition, an internal price of CO
2
is integrated in the financial valuation of the project.
This price is based on changes in carbon pricing according
to internal scenarios of market decarbonization.
Allocate and manage CO
2
budgets
Since 2021, the Group has integrated non-financial items
in its medium-term financial plan (MTP) to assign CO
2
budgets.
The GBUs develop their operational decarbonization strategy
so as not to exceed the limits set (budget N+1, 2025, 2030
and 2045 limits).
As of 2023, an infra-annual management of emissions
will be conducted using quarterly GHG indicators. It will be
integrated in the management dialog on the operational and
financial performance via the Quarterly Business Reviews (QBR).
2
The trajectories are consolidated in a CO
2
performance cockpit shared with top management
CO
2
MediumTerm Business Plan
Updated every year
Via
Quarterly Business
Reviews QBR
Management of infraannual
performance
4
Aligned with the wellbelow 2C SBTicertified
trajectory and allocated by activity
2030 and
2025 limits
1
In line with the threeyear financial MediumTerm Plan MTP
Annual projections
until 2030
2
Allocated by activity
Allocations of CO
2
budgets
for year N1
3
2023 INTEGRATED REPORT - 75