3.10 Report by one of the Statutory
Auditors, appointed as independent third party, on the consolidated
non financial statement 115
3.11 Statutory auditors' reasonable assurance report on selected social, environmental and governance
information 117

Governance 119

4.1 Corporate governance bodies AFR 120

4.2 Dialog with shareholders AFR 147

4.3 General Management AFR 148

4.4 Compensation and benefits paid to members of the administration
and management bodies AFR 149
4.5 Additional information concerning
corporate governance 171

4.6 Corporate Governance Code 176

4.7 Statutory auditors' report on related

party agreements 177

Information on the share

capital and shareholding 179

5.1 Information on capital AFR 180

5.2 Non-equity securities AFR 182

5.3 Green Bonds 183

5.4 Shareholding AFR 193

5.5 Financial reporting schedule 195

Financial informations 197

6.1 Review of the financial position AFR 198

6.2 Consolidated financial
statements AFR 221
6.3 Statutory auditors' report on the consolidated financial
statements AFR 328
6.4 Parent company financial statements for the year
ended December 31, 2020 AFR 334
6.5 Statutory auditors' report

on the financial statementsAFR 378

Additional information 383

7.1 General information on ENGIE

and its bylaws 384

7.2 Material contracts 385

7.3 Litigation and arbitration AFR 386

7.4 Public documents 386

7.5 Party responsible for the Universal

registration document AFR 386

7.6 Conversion table 387

7.7 Units of Measurement 387

7.8 Short forms and acronyms 388

7.9 Glossary 389

7.10 Comparison table 392

AFR Information disclosed in the Annual Financial Report is indicated in the contents by the pictogramm

Universal registration document 2020

INCLUDING ANNUAL FINANCIAL REPORT

This Universal registration document has been filed on March 17, 2021 with the AMF, as competent authority under Regulation (EU) 2017/1129, without prior approval pursuant to Article 9 of the said regulation.

The Universal registration document may be used for the purposes of an offer to the public of securities or admission of securities to trading on a regulated market if completed by a securities note and, if applicable, a summary and any amendments to the Universal registration document. The whole is approved by the AMF in accordance with Regulation (EU) 2017/1129.

The annual financial report is a reproduction of the official version of the annual financial report which has been prepared in ESEF (European Single Electronic Format) and is available on the issuer's website.

MESSAGE FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS

AND THE CHIEF EXECUTIVE OFFICER

2020 was a pivotal year for ENGIE: despite the shock of the pandemic, we continued to prepare for the Group's future by laying the foundations for a strategic transformation in line with our purpose.

The year 2020 was characterized by the health crisis and its economic consequences. How did ENGIE get through it?

Jean-Pierre Clamadieu: During this period, ENGIE and its employees have shown tremendous mobilization and a remarkable ability to adapt. We are an energy producer and supplier, and we know that every com-pany, every community, and every household needs energy. It was therefore necessary to ensure continuity of service to our customers while guaranteeing the best sanitary conditions for our employees; to do this, we made massive changes, sometimes in just a few hours, to our working methods. Our teams are well aware of their public service role and what this implies in terms of mobilization, even in extreme situations. Like many companies, we also reached out to our shareholders, asking them to waive the dividend for 2020. This allowed us to maintain leeway at a time when we still didn't know the full depth of the crisis or how long it would last. We are pleased to propose a return to our dividend policy to the 2021 Shareholders' Meeting. Catherine MacGregor: I am struck on a daily basis by the incredible commitment of our teams and their desire to go the extra mile in the energy transition. I'm very proud to be working with the entire ENGIE team, alongside our customers and regions, to accelerate the transition towards a carbon-neutral economy. This commitment has allowed the Group to get through the crisis. The full-year results that we announced in February very much speak to this. Not surprisingly, the Group is suffering from the 2020 economic downturn, but our performance recovered noticeably starting in the second half. This is extremely satisfying for us because it shows ENGIE's resilience and our ability to bounce back. This allows us to approach 2021 with complete calm.

Climate change is increasingly high on the agenda for businesses and public authorities alike. How is ENGIE preparing for this?

Jean-Pierre Clamadieu: The health crisis has made the vulnerability of our societies to major risks, starting with those related to climate change, considerably more noticeable. We have seen this in Europe, where recovery plans include major components designed to accelerate the decarbonization of the economy, and the United States is now embarking on the same path. Against this backdrop, the purpose statement that our shareholders approved unanimously in 2020 - by a 99.9% vote - provides a clear framework for our strategic decisions. It also shows that Engie's Board of Directors and the Group's teams became aware earlier than others of the transformations occurring, and that we are therefore in a better position to benefit from the opportunities that they open up.

Catherine MacGregor: Over the past few months, we have constantly demonstrated our ability to align our industrial resources with the energy transition. For example, we added 3 GW of renewable power capacity to the grids, mainly in offshore wind, and negotiated corporate PPA for a total of 1.5 GW. We also earned the Science Based Targets certification, which means that the Group is now on a trajectory to reducing its greenhouse gas emissions in line with the Paris Agree-ment. We are now positioned to make a commitment to move out of coal-fired energy production by 2025 in Europe and by 2027 worldwide. Climate objectives will soon be systematically incorporated into the variable compensation criteria of the Group's executive mana-gers and certain key employees.

" I'm very proud to be working with the entire ENGIE team, alongside our customers and regions, to accelerate the transition towards a carbon-neutral economy. "

Catherine MacGregor

Chief Executive Officer

The Group has also continued to work on its strategic challenges.

What can you tell us about that?

Jean-Pierre Clamadieu: Within the context of modern and effective governance that acknowledges everyone's roles, the Board of Directors has set the Group's strategic trajectories for the years to come. Guided by our purpose and the conviction that we needed to move forward in the direction of simplifying and clarifying our priorities, in July 2020, we announced that we would henceforth focus on two strategic areas, renewable energies and energy infrastructure, while concentrating our Client Solutions activities around operations related to the optimization of the use of energy. After an in-depth research and selection process, the Board of Directors chose to appoint Catherine MacGregor as the Group's CEO, because she brings the experience and unique qualities needed to successfully implement these strategic objectives.

" The purpose statement that our shareholders approved unanimously in 2020 will be invaluable in guiding our key strategic decisions. "

Jean-Pierre Clamadieu

Chairman of the Board of Directors

Catherine MacGregor: Renewable energy and energy infrastructures are our two key strengths. They enhance each other, and this is where we will have the greatest impact, because we have a unique lead and unparalleled knowledge. Both require an ability to finance, design and operate complex systems over the long term. This is where I see the legacy of our history. Over the years, from Compagnie de SUEZ to Société Générale de Belgique, Tractebel, Electrabel, International Power and of course Gaz de France, we have helped finance and operate infrastructures at every major economic turning point. Today we must concentrate our efforts into making our transformation a success and seizing the opportunities created by the energy transition in both France and around the world. With the management team by my side, I will present our strategic road map to our shareholders when we report our quarterly results and at the next Shareholders' Meeting.

ENGIE a leader in energy transition

RENEWABLES

OUR BUSINESS LINES

NETWORKS

THE PURPOSE

Accelerate the transition to a carbon neutral economy

" Act to accelerate the transition to a carbon-neutral economy, through low-energy solutions that are more respectful of the environment. The purpose brings together the company, its employees, its clients and its shareholders, and reconciles economic performance with a positive impact on people and the planet. ENGIE's action is assessed in its entirety and over time. "

CLIENT SOLUTIONSTHERMAL & SUPPLY

NORTH AMERICA

4.2bn€

revenue

REST OF EUROPE

15.7bn€

revenue

FRANCE

20.3bn€OTHER 1

revenue

LATIN AMERICA

4.8bn€

revenue

MIDDLE EAST,AFRICA, ASIA

2.4 bn€

revenue

8.4 bn€

revenue

2030

2020 Financial results

Current Operating Income: €4.6 bn

Net Recurring Income, group share: €1.7bn

"Strong investment grade" rating

Economic net debt to EBITDA ratio: 4x

CSR targets

43 Mt

GHG emissions for energy generation

58% 3 of renewable energy in the electricity production capacity mix

50%

of women in Group management

1- Encompasses the activities of GEM, Tractebel, GTT, Hydrogen and the Group's holding and corporate activities 2- December 31, 2020

3- Counted at 100% regardless of the rate of detention

Annual Financial Report, Management Report and Board of Directors' Report on corporate governance

This Universal registration document includes (i) all the items of the Annual Financial Report mentioned in section I of Article L.451-1-2 of the French Monetary and Financial Code, and in Article 222-3 of the General Regulations of the Autorité des Marchés Financiers (AMF), the French Financial Markets Authority, (ii) all the mandatory information included in the Management Report of the Board of Directors to the Annual Shareholders' Meeting of May 20, 2021, as stipulated in Article L.225-100 of the French Commercial Code, and (iii) all the information included in the Board of Directors' Report on corporate governance as provided for in Article L.225-37 of the French Commercial Code.

Appended to this document is a comparison table between the documents mentioned in these texts and the corresponding headings in this document.

Incorporation by reference

In accordance with Article 19 of European Regulation No. 2017/1129 of June 14, 2017, this Universal registration document incorporates by reference the following information, to which the reader should refer:

• for the ENGIE fiscal year ended December 31, 2019: the management report, consolidated financial statements prepared according to IFRS and the related Statutory Auditors' report appearing on pages 196 to 216 and 217 to 345 of theregistrationdocumentfiled with the AMF on March 18, 2020 under number D.20-0141;
• for the ENGIE fiscal year ended December 31, 2018: the management report, consolidated financial statements prepared according to IFRS and the related Statutory Auditors' report appearing on pages 186 to 204 and 205 to 344 of theregistrationdocumentfiled with the AMF on March 20, 2019 under number D.19-0177.

The information included in these documents, along with the information mentioned above, is replaced or updated, as necessary, by the information included in this Universal registration document. These documents are available under the conditions described in Section 7.4 "Documents available to the public" of this Universal registration document.

Forward-looking information and market data

This Universal registration document contains forward-looking information, particularly in Section 1.1 "History and organization", Section 1.6 "Description of the Group's activities", and Section 6.1.1.1.2 "Financial targets". This information is not historical data and therefore should not be construed as a guarantee that the events and data mentioned will occur or that the objectives will be achieved, since these are by nature subject to unpredictable events and external factors, such especially as those described in Chapter 2 "Risk factors and control".

Unless otherwise stated, the market data appearing in this Universal registration document comes from internal estimates by ENGIE based on publicly available data.

Note

In this Universal registration document, the terms "ENGIE," the "Company," the "Issuer," and the "Enterprise" refer to ENGIE. The term "Group" refers to ENGIE and its subsidiaries.

A list of units of measurement, abbreviations and acronyms and a glossary of the most frequently used technical terms are featured in Sections 7.6, 7.7, 7.8 and 7.9 of this Universal registration document.

Copies of this Universal registration document are available at no cost on the Company website (engie.com), on the website of the AMF (amf-france.org), as well as from ENGIE, 1 place Samuel de Champlain, 92400 Courbevoie (France).

Presentation of the Group

1.1 History and organization 8

1.5 CSR performance 16

1.1.1Presentation 8

1.5.1CSR policy 16

1.1.2History and evolution

1.5.22020 CSR targets 16

of the Company 8

1.5.32030 CSR targets 17

1.1.3Organization of the Group 9

1.5.4CSR ratings 18

1.2 Strategy and objectives 11

1.6 Description of the Group's activities 19

1.2.1Positioning 11

1.6.1France 19

1.2.2The strategic acceleration in 2020 11

1.6.2Rest of Europe 25

1.2.3Internal performance 12

1.6.3Latin America 29

1.3 Innovation and R&D 12

1.6.4United States and Canada 31

1.4 Financial performance 13

1.6.5Middle East, Asia & Africa 32

1.6.6Others 34

1.4.12020 Highlights 13

1.4.2Financial targets for 2021 14

1.7 Real estate, plant and equipment 38

1.4.32020 key financials 15

1.1

History and organization

1.1.1

Presentation

"The purpose ("Raison d'être") of ENGIE is to act to accelerate the transition to a carbon-neutral economy, through low-energy solutions that are more respectful of the environment. The purpose brings together the company, its employees, its clients and its shareholders, and reconciles economic performance with a positive impact on people and the planet. ENGIE's action is assessed in its entirety and over time.ˮ

ENGIE is a European and world leader(1) in low-carbon electricity production, centralized and decentralized energy networks, and associated services:

• low-carbon power generation and gas and electricity supply: ENGIE is the second-largest hydropower operator, the number one wind and solar energy company in France and a benchmark operator in nuclear energy in Belgium. The Group is one of the leading power producers in Europe. ENGIE is a key player in international tenders, particularly in Latin America and the Middle East, with strong positions in Brazil, Peru, Mexico and Chile.
ENGIE provides gas and electricity to end-customers worldwide, with around 21 million contracts. Nearly half of its customers are located outside France.
In Europe, ENGIE is one of the top gas sellers and importers. In France, ENGIE is the historic leader of gas marketing and the second-largest producer and supplier of electricity. In Belgium, ENGIE, through its subsidiary Electrabel, is the leading producer and supplier of electricity and supplier of natural gas;

• centralized energy networks: the Group is the leading gas network operator in Europe, particularly through independent subsidiaries, with a portfolio that includes transmission networks, distribution networks, and LNG storage and terminals. It is also a major player in Mexico and Brazil, operating gas and electricity transmission networks;
• decentralized energy networks and energy services: ENGIE is the world's largest cooling network operator and third largest heating network operator (in TWh). Within Europe, it is the leading supplier of energy efficiency services and the number one supplier of installation services. ENGIE is also the world's second largest supplier of charging stations for electric vehicles.

ENGIE has taken a leadership position in new distributed generation segments and in solar units for industrial and commercial customers. It also ranks fifth in microgrids and isolated microgrids.

The Group relies on its key business lines (Renewables, Decentralized infrastructure, Client Solutions, Thermal Generation and Energy Supply) to offer its customers competitive, high value-added solutions that enable them to achieve their carbon-neutrality targets. Thanks to these business lines, it can act in different areas to decarbonize power production equipment, set up high-performance urban networks, and offer associated energy efficiency services. The Group's website is:www.engie.com. Not all the information available on this website is included in this Universal registration document.

1.1.2

History and evolution of the Company

The Company is the result of the merger of SUEZ into Gaz de France, following the decisions of the Combined General Shareholders' Meetings of Gaz de France and SUEZ of July 16, 2008. The merger took effect on July 22, 2008.

Gaz de France was initially incorporated in 1946 as an EPIC (French public industrial and commercial enterprise). It became a limited liability company with a 99-year term under Law 2004-803 of August 9, 2004, on the public service of electricity and gas and electricity and gas companies (amending Law 46-628 of April 8, 1946).

On July 7, 2005, Gaz de France publicly floated its shares on the stock market. The Company's shares were first listed on July 7, 2005.

Law 2004-803 of August 9, 2004, as amended by Law 2006-1537 of December 7, 2006, governing the energy sector and Decree 2007-1784 of December 19, 2007, authorized the transfer of the Company from the public to the private sector. On July 22, 2008, Gaz de France absorbed SUEZ in a merger which entailed transferring the majority of the Company's share capital to the private sector. The new Company took the name "GDF SUEZ".

SUEZ itself was the result of the merger in 1997 of Compagnie de Suez and Lyonnaise des Eaux. SUEZ became an international industrial and services group whose objective was to meet essential requirements in electricity, gas, energy and industry services, water and waste management.

The deregulation of European energy markets in the early 1990s accelerated the international development of both Gaz de France and SUEZ, which progressively expanded their activities beyond their respective traditional markets, both in Europe and internationally.

On February 3, 2011, GDF SUEZ completed a merger with International Power. In 2012, it reaffirmed its strategy to become a leading player on the global energy market, finalizing the purchase of shares held by the minority shareholders of International Power on June 29.

On July 29, 2015, the Extraordinary General Shareholders' Meeting approved a change in the Company name, and adopted "ENGIE" as its new legal name.

The SUEZ Environnement Company shareholders' agreement expired on July 22, 2013, and was not renewed. The cooperation and shared functions agreement and the financing agreement between the Company and SUEZ Environnement Company have also come to an end. The Company now uses the equity method to consolidate SUEZ Environnement Company's activities in its financial statements, rather than full consolidation.

In early March 2016, the two companies signed an agreement providing for the contribution by ENGIE to SUEZ of all of the share capital of SUEZ IP, which owns all intellectual property rights related to the SUEZ brand. On October 5, 2020, ENGIE sold the majority of its stake in Suez, i.e. 29.9% of the capital, to Véolia.

(1) These competitive positions are established on the basis of specialist work within the Group, carried out using available information published by stakeholders or entities providing external analysis (Bloomberg and Global Data)

1.1 History and organization

On May 14, 2020, the shareholders' meeting approved the introduction to the bylaws of the Company's purpose: "The purpose ("Raison d'être") of ENGIE is to act to accelerate the transition to a carbon-neutral economy, through low-energy solutions that are more respectful of the environment. Thepurpose brings together the company, its employees, its clients and its shareholders, and reconciles economic performance with a positive impact on people and the planet. ENGIE's action is assessed in its entirety and over time.ˮ

1.1.3

Organization of the Group

At the end of 2020, ENGIE was made up of 25 operating entities (Business Units or BUs), four Global Business Lines and various support and operating functions (see Section 1.6 "Description of the Group's activities"). There is also a twenty-sixth entity comprising the holding and corporate activities, including the entities responsible for the Group's centralized financing, ENGIE SA's Businesses and Local Authorities activity, and the contribution of the associate SUEZ until its disposal.

In the second half of 2020, the Group confirmed its strategic objectives, (i) accelerating in Renewables and Networks (particularly in its decentralized activities), (ii) a strategic review of a part of its Client Solutions business, and (iii) increasing its asset rotation programme to finance growth in Renewables and Networks.

In parallel, the refocusing of geographical areas has continued. The Africa BU and the China BU were merged with the Middle East, South and Central Asia, and the Asia Pacific BU, respectively, on January 1st, 2021.

In early January 2021, Catherine MacGregor instigated a change to bring ENGIE's organization into line with the strategic objectives, simplify the Group's management with a focus on performance, and, lastly, to make the organization easier to understand, both internally and externally.

The new Executive Committee is therefore structured around four main business lines: Renewables, Networks, Client Solutions, and Thermal Generation and Energy Supply. Activities related to nuclear and energy management will be managed separately in view of their specific features. Following the strategic review of Client Solutions (see Section 1.2), a new entity will be created, based on multi-technical service activities.

The support and operational functions have been streamlined into four areas:

• General Secretariat, Strategy, Research and Innovation, and Communication;
• Finance, Corporate Social Responsibility, and Purchasing;
• Digital and Information Systems; and
• Human Resources. The Shared Service Centers report to the General Secretariat.

Each activity and transversal function identified reports directly to an Executive Committee member.

The organization as at December 31, 2020 and the changes that have taken place since early 2021 are described below.

1.1.3.1

Description of the Business Units

The Group's various BUs implement strategy at the level of the four main business lines. Most of them are constituted to manage operations for a country or group of countries, depending on the density of the activities carried out in the geographical areas concerned. They bring together the Group's activities to meet the expectations of their customers and stakeholders in a given area.

The following were therefore created:

• in France, seven BUs dedicated to the activities, one BU in charge of renewables development (France Renewable), four BUs dedicated to the gas networks (transmission; distribution; terminals, and storage), one BU dedicated to Client Solutions (Engie Solutions), divided into three groups (Cities & Communities, Properties & Proximity, and Industries), one BU in charge of BtoC sales;

• in Europe and worldwide, and nine geographical BUs: North America; Latin America; Asia Pacific China; Benelux; Brazil; North, South and Eastern Europe; South and Central Asia, Turkey and Africa; and UK and Generation Europe. These geographical BUs are responsible for the central management of all Group activities within their region;
• lastly, in addition to the operating entities, there are four global BUs with worldwide scope: Global Energy Management, Gaztransport & Technigaz (GTT), Tractebel, and Hydrogen. A fifth dedicated BU is also responsible for operating the nuclear generation units in Belgium.

Each of these BUs is represented on the Group Executive Committee by an Executive Vice President, who oversees it.

1.1.3.2

Description of the Global Business Lines

The four Global Business Lines, created in April 2019, complete this geographical structure. They cover the following business sectors: Renewables, Networks, Client Solutions and Thermal (see Section 6.2.2 "Consolidated financial statements - Note 6 Segment information"). A Director manages each GBL, reporting to an Executive Vice-President who is an Executive Committee member. The aim of these GBLs is to:

• put forward an inter-BU strategy for the activity;
• prioritize the allocation of resources between the various BUs;
• identify and oversee the main digital and excellence transversal programs;

• identify and establish global partnerships;
• support, measure and present the overall performance activities.

With these GBLs, the activities of energy supply and management and nuclear constitute the Group's six main families of activities.

On February 1, 2021, the scope of the GBL Thermal changed into Thermal Production and Energy Supply, with the nuclear and energy supply activities remaining autonomous.

1.1.3.3

Description of the support and operational functions

The support functions and the operational functions complete the organization. They aim to reinforce the action of the Global Business Lines to develop synergies within the Group and support the BUs. As of February 1, 2021, the support functions are divided into four areas:

• General Secretariat, Strategy, Research and Innovation, and Communication. The Group's Shared Service Centers report to these functions;
• Finance, Corporate Social Responsibility, and Purchasing;
• Digital and Information Systems;
• Human Resources.

The Company operates its own business. The number of subsidiaries directly or indirectly controlled by the Company was 3,327 at the end of 2020. In addition to the lists provided in Section 6.2.2 "Consolidated financial statements - Note 2, Main subsidiaries at December 31, 2020" and Section 6.4.2 "Parent company financial statements - Note 4.4, Subsidiaries and affiliates," a list of subsidiaries can be found on the Group's website (www.engie.com, regulated information section).

The presentation of the Company's activities and the strategic economic assets of its main subsidiaries as well as their geographical location are presented in Section 1.6

In addition, a cross-functional area dedicated to the "Description of the Group's activities." transformation and management of the geographical BUs supports the operating performance of the businesses.

SIMPLIFIED ORGANIZATION FOCUSED

ON STRATEGY IMPLEMENTATION

Activities structured around four business lines

4 GBL

16 BU geographies

RENEWABLES

NETWORKS

CLIENT SOLUTIONS

THERMAL & SUPPLY

7 BU FRANCE

France Renewables

Elengy GRDF GRTgaz StorengyENGIE Solutions

Industry Services and Proximity Cities and Communities

France BtoC

4 BU WORLD

5 BU WORLD

Benelux	United Kingdom
North, South and Eastern Europe	Generation Europe
North America	Brazil
Latin America	Middle East, South and Central Asia,
Asia Paci c China	Turkey, Africa

5 GLOBAL

GEMNuclearGTT

Tractebel

Hydrogen

Pooling of support functions and operational management

Organization as of February 1st, 2021

1.2 Strategy and objectives

1.2

Strategy and objectives

1.2.1

Positioning

The Group was one of the first to adopt a purpose, at its 2020 shareholders' meeting. The purpose sets out its already existing aim of working towards a carbon-neutral energy transition. It allows the Group to make a long-term commitment in the service of all of its stakeholders. The Group hopes that, through this purpose, it will have a positive impact on society and meet growing demand from citizens, politicians and industry for large-scale decarbonization.

In recent years, the ENGIE Group has undergone a deep transformation, by focusing its development on three core activities: renewable energy, networks and energy efficiency, while firmly positioning itself in innovative activities (green mobility and smart grids in particular). This transformation has allowed ENGIE to return to organic growth. In 2020, ENGIE embarked on a new stage of simplification of the Group and

clarification of its strategy, announcing its priorities for growth in renewable energy and networks.

The Group thus confirmed its aim of becoming the world leader in the energy and climate transition of companies and local authorities.

The public, and particularly the younger generations, are increasingly voicing concern about the climate. This unprecedented worldwide health crisis has accelerated global awareness. When drawing up their economic recovery plans, many governments have confirmed their aim of combating climate change. As well as its economic impact (Section 1.4), this crisis has strengthened the Group's resolve, making it possible to step up the implementation of its strategy in its various areas of activity.

1.2.2

The strategic acceleration in 2020

Able to mobilize additional energy drivers to serve the transition, the Group has core competencies throughout the value chain, from production, transmission, distribution, and service through to the end-consumer. Its strong positions in renewable energy, and both centralized networks and decentralized urban networks, allow it to generate synergies that are essential for the roll-out of ambitious decarbonization programs to its customers.

It can also mobilize its cross-functional capacity in financial engineering, project structuring and management, as well as its global digital platforms, to benefit the two drivers of the transition: a greener energy supply and more efficient and smarter energy usage.

To make the most of its advantages, a renewed strategic focus on core businesses and skills, bringing value-added for the transition, was launched in 2020. This refocusing is based on a simplification of the business areas around strategic objectives. These objectives are structured as follows by business line:

• Renewables: to develop green power generation resources within an integrated system; the acceleration of investments in renewable energy is the foundation for a medium-term target of 4 GW per year of renewable electricity commissioned. Investments in onshore wind and ground-mounted solar power will continue. Offshore wind, through the Ocean Wind joint venture with EDPR, is a high priority, with target capacity of 5 to 7 GW in operation or under construction in 2025. ENGIE is a major player in hydropower generation, particularly in Brazil and France: there will be targeted development in this area.
• Networks: to invest in high-performance networks for the energy transition, supporting balanced, carbon neutral energy mixes; heavy investment in the gas and electricity networks should be expected in the coming years. They are responding to the challenge of energy access in emerging economies, and of implementing the energy transition everywhere, with adaptation to the injection and transmission of renewable energy. The high-performance operation of the French gas networks through independent subsidiaries and their adaptation to the development ofbiomethane and hydrogen will be prioritized. Worldwide, the Group's investments are fostering the development of balanced, decarbonized energy mixes: the development of gas networks is thus supported where this allows for immediate steps to be taken to decarbonize the energy system.

• Decentralized energy networks and energy services: to propose large-scale integrated solutions based on long-term contracts.
Following the strategic review of its Client Solutions activities, the Group will focus on developing decentralized energy networks and associated services (urban heating and cooling networks, decentralized power production for use on-site, energy efficiency, the smart city, green mobility, and engineering). It offers its customers integrated solutions to meet their decarbonization needs, based on long-term contracts, that provide visibility and resilience as well as attractive growth potential.
• Thermal production and energy supply: to develop low-carbon capacity and support the transition of existing power systems; in addition to investments in renewables, the Group is pursuing targeted development of thermal capacity. This objective also fits within the context and specific needs of each country where the Group operates, in order to meet the need for flexibility in the power system and to enable the first stage of decarbonization. The aim is still to disengage from the remaining carbon capacity. In response to growing demand for the supply of decarbonized energy and management of consumption, new offers are being developed for the Group's retail customers (for example, Green Electricity, launched in 2016, the Heating Pack, launched in 2016, the Edeiris Connected Boiler and €1 Boiler in January 2019, the MesDépanneurs platform, purchased in late 2017, and the My Power PV roof offer). Comprehensive green energy supply solutions with a local component are offered to its business customers, with long-term contracts and energy efficiency commitments. Lastly, the development of green gas (hydrogen and biomethane) will be a strategic target, particularly in the context of the French recovery plan and the European Commission initiatives.

Presentation of the Group 1 1.3 Innovation and R&D

• Energy management and nuclear: Management of the energy markets remains a strong point of the Group: it is based on recognized financial and market expertise and takes account of renewable energy in its evolution. In nuclear, following the Belgian government's confirmation of its intention to withdraw from nuclear, the Group has been supporting the transition of the Belgian power system, while complying with the highest nuclear safety standards.

The simplification of the Group around these objectives led to a strategic review of the assets engaged in early 2020. The review resulted in the gradual identification of the business segments that had to be sold or put on the market. Most of the Group's stake SUEZ was therefore disposed of in October 2020.

In addition, the process of disengaging from ENDEL and GTT has been announced. Lastly, the strategic review of Client Solutions resulted in a decision to create a new entity bringing together the multi-technical services activities, which are not destined to remain within the Group in the long term. Details of the configuration of this entity and how its shareholding structure will develop will be provided during 2021.

The Group also pursued its aim of simplifying its geographical footprint in 2020. ENGIE plans to refocus its activities, decreasing them from more than 70 geographical areas in 2019 to approximately 30 in 2023. The aim is to be one of the three leading groups in these geographical areas and to densify its operations in these regions. The financial resources released by these disposals will enable an ambitious program to be established to fund growth and step up its target activities.

1.2.3

Internal performance

The Lean program, designed to reduce the Group's internal costs and strengthen its profitability, has continued. 2019-2021 performance program targets are confirmed. The program consists of cost reduction initiatives, spanning purchasing, dematerialization, and the Shared Service Centers. It identifies revenue and margin enhancement opportunities through the optimization of ENGIE's assets and customer offers.

The aggregate operating profit impact of the program at COI level is currently targeted at €800 million, with delivery weighted slightly towards 2020 and 2021. At end-2020, the results were in line with targets and savings of more than €500 million had already been made.

In terms of human resources, the Group is implementing an action plan, in order to become more agile and adapt to the changes in its environment. The plan makes individual and collective concerns a central part of the transformation. It is based on three strategic areas:

• culture and leadership: decentralized responsibility, innovation and performance;
• the adaptation of skills and Métiers to client and digital solutions;
• agile organization, project mode and continuous improvement.

1.3

Innovation and R&D

Research and Innovation plays an important role in the achievement of the ENGIE's strategic objectives. Being a major player in the energy transition means being at the forefront of new trends, technologies and business models. Innovation is rich, abundant and omni-present in ENGIE's projects. In 2020, a coordination process for innovation, designed to align all of the Group's stakeholders, resulted in the creation of strategic road maps for Group innovation around priority areas, selected according to ENGIE's main markets (Renewables, Networks, Client Solutions, and Thermal Generation and Energy Supply). The implementation of this strategy was based on cross-functional management of operational action plans common to all the contributing entities, guided by operational pilot studies.

In line with the innovation strategy, ENGIE's research and innovation activities meet a certain number of companies' needs to ensure their future growth, with regard to three horizons:

• Horizon 1 - current activity: remaining competitive on the market entails improving the efficiency of current processes and technologies and introducing changes gradually in response to customer's evolving needs;
• Horizon 2 - new opportunities: in order to benefit from potential new technologies and business models, these have to be tested, approved and employed in industrialization and marketing as soon as possible;

• Horizon 3 - suggestions for future growth: to ensure profitable future growth, ENGIE is creating alternatives now, through research projects, secondary investments in start-ups, and in-depth strategic analyses of technologies/ trends likely to disrupt the market.

The Research & Technologies network, which is led and managed by ENGIE Research encompasses all the Group entities and BUs conducting research related to their areas of activity and operations, as well as the R&D teams of CRIGEN, Laborelec, Tractebel, Storengy, ENGIE Impact and Cylergie. Business research is structured into 23 themed Labs working on all aspects of detecting, testing, and developing new technologies, thus helping our BUs stay competitive and prepare for the future. The research road map, which is updated yearly, ensures that major emerging technological trends are taken on board. The Labs can also provide the necessary technical support for key operations, innovation projects and the long-term continuation of activities. The main events in 2020 were the opening of ENGIE's new business research center (CRIGEN) in Stains (France), which is dedicated to green gas and carbon neutral solutions, and the commissioning of the REIDS SPORE (multi-fluids micro-grid) research platform in Singapore. A new Lab dedicated to smart grids and a bifacial photovoltaic panel testing platform were opened at Laborelec.

In 2020, Group expenditure on research and technological development amounted to €190 million.

The Group's many innovation teams, coordinated by the Business Innovation Ecosystems team, are working on innovation projects relating to all three horizons and all geographical areas. ENGIE's annual Innovation Awards receives more than 500 submissions every year (540 projects in 2020) and there are various other functional innovation awards. At the entity level, they demonstrate an innovative spirit and the successful enhancement of operations, technologies and management systems through innovation. They are also evidence of the practical realization of new and disruptive business ideas. In the spirit of a true "open innovation" approach, many of these projects were created in partnership with start-ups, suppliers, customers and other stakeholders.

Start-ups are engaged in many aspects of the organization. They take part in collaborative projects and partnerships, as suppliers of new products and services. They are also sometimes investment targets in various structures at the Company or BU level. ENGIE New Ventures, our corporate venture capital (CVC) subsidiary, offers alternatives for ENGIE'sfuture through secondary investments in start-ups with promising new technologies and/or business models (€50 million invested in start-ups in 2020, 26 investments to date). Global Smart Businesses manages the start-ups after acquisition so that they are integrated and made into entities dedicated to ENGIE. The BUs also acquire start-ups in order to resolve local challenges, and Rassembleurs d'Énergies invests in companies with a strong environmental and/or societal impact.

ENGIE Factories in Paris, Singapore and Santiago create and develop subsidiaries on the basis of sensitive issues and business opportunities arising from real life, combining technological components and business models derived from internal and external sources.

Digital transformation is a key aspect of innovation with a number of digital projects detected through the various Innovation Trophies and supported by our internal platforms (DigiPlace, Common Data Hub, Inner Source) and communities (ENGIE Digital 50).

1.4

Financial performance

1.4.1

2020 Highlights

Rapid progress on a new strategic orientation

Following the announcement in July of a new strategic orientation to simplify the Group and accelerate growth in Renewables and Infrastructure assets, ENGIE has delivered rapid progress, despite the challenging backdrop.

The disposal of 29.9% shareholding in SUEZ for €3.4bn was completed in October, and ENGIE launched strategic reviews of a significant part of Client Solutions activities, GTT and ENGIE EPS.

In addition, ENGIE also progressed on geographic rationalisation and strengthening its position in key countries. An example of this is the acquisition of an additional 7% shareholding in ENGIE Energia Chile, thereby reducing the level of minority holdings. A strategic review of part of Client Solutions was launched towards the potential creation of a new leader in multi-technical services, which would benefit from scale and strong growth prospects. In February 2021, the employee representatives consultation related to the proposed organization design for the new entity was launched. This consultation is expected to conclude by the end of the second quarter of 2021. The Group will consider next steps and review future ownership options for the potential new entity in the second half of this year. ENGIE will consider all options to maximize value and will act in the interests of all stakeholders.

A new Executive Committee and simplified business organisation

In January, the appointment of new Executive Committee (ExCom) was announced reflecting the intention to implement a simplified business organisation focused on four businesses: Renewables, Networks, Client Solutions and Thermal & Supply. Along with the ExCom members responsible for functional activities and specific projects, the new leadership team is engaged in executing ENGIE's new strategic direction and enhancing the Group's performance culture.

Update on Belgian Nuclear Assets

Following the announcements of the Belgian government in Q4 2020, it has been decided to stop all the preparation works that would allow a 20-year extension of two units beyond 2025, as it seems unlikely that such an extension can take place given the technical and regulatory constraints. This change in lifetime assumption as well as changes in the commodity price scenario have led to an impairment of €2.9bn for nuclear assets, which have been accounted as non-recurring items in the 2020 P&L.

ENGIE remains committed to Belgium and to contributing to the country's security of supply. Alongside renewables, the Group is also developing projects of up to 3 GW of gas-fired power plants. These projects could participate in the Belgian Capacity Remuneration Market through auctions in the second-half of this year, once approved by the European authorities.

Continued operational delivery and €4bn growth investment, despite challenging backdrop

Operationally, the Group continuously adapted processes to ensure delivery of essential services, while maintaining high health and safety standards. Overall Capex amounted to €7.7 billion in 2020, including €4.0 billion of growth investments, €2.4 billion of maintenance Capex and €1.3 billion of nuclear funding.

Over 90% of growth investment was dedicated to Renewables, Networks and Asset-based Client Solutions activities in line with the new strategic direction announced in July.

Presentation of the Group 1 1.4 Financial performance

Delivering on ESG goals, commitment to exit coal in Europe by 2025 and globally by 2027

Carbon neutrality is at the heart of ENGIE's purpose and central to its strategic direction. In 2020, greenhouse gas emissions were reduced by 9% to 68 million tons from energy production benefitting mainly from the disposal of coal plants in Western Europe.

ENGIE has today announced a commitment to exit all coal assets in Europe by 2025 and globally by 2027, including coal generation for DHC networks. As a reminder, coal represents 4 GW of ENGIE's 101 GW centralized power generation portfolio.

ENGIE also increased the share of renewables in its portfolio to 31% in 2020 from 28% at the end of 2019 with the addition of 5 GW of renewables.

On gender diversity, there was a small increase in the number of women in the management and ENGIE had 24% women in management at the end of 2020.

2020 Dividend proposed at top-end of payout ratio

The Board has reaffirmed the Group's dividend policy of NRIgs payout ratio in the range of 65 to 75%. For 2020, the Board has proposed a payout ratio of 75%, at the top end of the policy range. This translates to a dividend of €0.53 per share, which will be proposed for shareholder approval at AGM on the 20th of May.

1.4.2

Financial targets for 2021

When presenting its 2020 annual results ENGIE updated its financial objectives for 2021.

2021 Guidance expects significant improvement

Overall financial performance in 2021 is expected to improve significantly after a Covid-19 impacted 2020, assuming no additional stringent lockdowns and a gradual easing of restrictions over 2021.

For 2021, ENGIE anticipates a Net Recurring Income group share in the range of €2.3 to 2.5bn. This guidance is based on an indicative EBITDA range of €9.9 to 10.3bn and a COI range of €5.2 to 5.6bn.

Expected drivers for 2021 COI

Included within this guidance is an estimated impact that follows the extreme cold weather in Texas earlier this month. ENGIE is assessing the situation, which mainly affects Renewables and Supply activities. Overall ENGIE currently estimates a potential net negative impact at the Group COI and Net Recurring Income Group share levels of between €80 to 120 million.

Expected drivers for business line COI growth expectations for 2021 are as follows:

Renewables	Growth in the US and France should benefit financial performance, partly offset by a lower contribution
from rulings in Brazil relating to the recovery of past energy costs and a weaker BRL
Networks	Networks are expected to remain stable with the impact of the new, lower RAB remuneration rates in France
offset by reversal of the warm temperature effect of 2020 and growth in Latin America
Client solutions	Overall Client Solutions should demonstrate strong recovery from Covid-19, albeit with a relatively slower
recovery for Asset-light activities, and benefit from y-o-y accretion from SUEZ and EV-Box disposals
Thermal	Expect normalization after a particularly strong 2020 performance in Europe
Supply	Expect strong recovery from Covid-19 and the reversal of the 2020 warm temperature effect
Nuclear	Much improved performance expected driven by better availability following LTO completions and higher
achieved prices

Focus on execution of capital re-allocation and expected investements between €5.5 to 6.0bn growth Capex Regarding disposals, ENGIE remains focused on executing at pace to simplify the Group, crystallise value and re-allocate capital towards strategic priorities. This guidance assumes disposals of around €2bn with a related COI dilution of up to €0.1bn, in addition to previously signed transactions such as EVBox.

With respect to investment, ENGIE expects to invest between €5.5 to 6.0bn growth Capex, with over 90% in Renewables, Networks and Assetbased Client Solutions and €4.0bn in maintenance including the funding of Belgian nuclear provisions Capex.

ENGIE will update the market on the implementation plan for its new strategic orientation and provide medium-term guidance on 18 May 2021.

Group net debt: ENGIE remains committed to a strong investment grade rating and continues to target a leverage ratio of below or equal to 4.0x economic net debt to EBITDA over the long-term.

Investment criteria: ENGIE applies rigorous strategic and financial investment criteria, and has a clear perspective on attractive investment characteristics. Complex, innovative, integrated, longer-term, outcome-based customer programs are preferred to simple, commoditized, standard fee-for-service business. Investment will be differentiated over distinct time horizons, with consistent hurdles of 200 bps over ENGIE's WACC, and 400 bps over cost of equity.

1.4.3

2020 key financials

In millions of euros

1. Revenues

of which generated

outside France

2. Income

EBITDA

2018	2017
2020	2019	restated(a)	2,018	restated(b)	2,017	restated(c)	2,016
55,751	60,058	56,967	60,596	59,576	65,029	64,840	66,639
33,311	35,635	33,306	35,612	34,325	39,307	39,942	41,693
9,276	10,366	9,236	9,236	9,199	9,316	9,491	10,689
4,578	5,726(g)	5,126	5,126	5,172	5,273	5,636	6,172
(1,536)	984	1,033	1,033	1,320	1,423	(415)	(415)
1,703	2,683	2,425	2,425	2,518	2,662	2,477	2,477
1,703	2,683	2,458	2,458	2,233	2,372	2,430	2,477
3. Cash flow
Cash flow from operating	7,589	8,178	7,873	7,873	9,335	9,309	10,174	10,174
activities
of which cash generated	8,788	9,863	8,464	8,464	8,150	8,305	9,117	10,263
from operations before
financial income and
income tax
Cash flow from investment	(4,046)	(7,193)	(6,095)	(6,095)	(5,171)	(5,157)	(3,655)	(3,655)
Cash flow from (used in)	(562)	212	(1,928)	(1,928)	(4,734)	(4,725)	(6,034)	(6,034)
financing activities
4. Balance sheet
Shareholders' equity	28,945	33,087	35,551	35,551	36,282	36,639	39,578	39,578
Total equity	33,856	38,037	40,941	40,941	42,122	42,577	45,447	45,447
Net debt	22,458	25,919	21,102	21,102	22,520	22,548	24,807	24,807
Net debt excl. internal debt	2.42	2.50	2.28	2.28	2.26	2.25	2.43	2.32
E&P/EBITDA
Total assets	153,182	159,793	153,702	153,702	150,141	150,332	158,499	158,499
5. Per-share
data (in euros)

2016

• Current operating income(d)
• Net income, Group share
• Net recurring income, Group share
• Net recurring income from continuing operations, Group share

• Average outstanding shares (e)
2,416,820,377 2,412,518,837 2,396,308,756 2,396,308,756 2,395,732,581 2,395,732,581 2,396,131,620 2,396,131,620

• Number of shares at period-end

2,435,285,011 2,435,285,011 2,435,285,011 2,435,285,011 2,435,285,011 2,435,285,011 2,435,285,011 2,435,285,011

6. Total average

workforce

(0.71)	0.34	0.37	0.37	0.49	0.53	(0.23)	(0.23)
0.63	1.04	0.95	0.95	0.99	1.05	0.97	0.97
0.53	0	0.75	0.75	0.70	0.70	1.00	1.00
222,268	-	249,795	238,029	238,216	239,710	241,509
•	Fully consolidated	173,398	170,475	-	158,505	151,480	151,667	152,175	153,950
entities
•	Proportionately	748	756	-	780	685	685	764	764
consolidated entities
•	Entities consolidated	1,727	90,908	-	90,510	85,864	85,864	86,771	86,795
using the equity method

• Earnings per share(e)
• Net recurring income, Group share, per share(e)
• Dividend paid(f)

(a) Some of the December 31, 2018 data have been restated due to the retrospective application of the new presentation of operational derivatives (with impact on Revenues) but not IFRS 16 due to the transition method applied (see Note 1 of Section 6 "Consolidated financial statements" of the 2019 Universal registration document)
(b) Some of the December 31, 2017 data have been restated due to the retrospective application of IFRS 9 and 15 and the classification of LNG as discontinued operations (see Note 2 of Section 6 "Consolidated financial statements" of the 2018 registration document)
(c) Some of the December 31, 2016 data have been restated due to the classification of E&P as discontinued operations (see Note 30 of Section 6 "Consolidated financial statements" of the 2017 registration document)

(d) Excluding MtM of operating derivatives but including share in net income of equity method entities
(e) Earnings per share calculated on the basis of the average number of shares outstanding, net of treasury shares
(f) 2020 : proposed to the OGM
(g) Figure restated in 2019 : 5,819

1.5

CSR performance

The Group's Corporate Social Responsibility performance (CSR) is an essential part of its overall performance. It is based on CSR commitments and a CSR policy at the Group level (see Section 1.5.1), as well as sectoral policies and dated and quantified CSR targets (see Sections 1.5.2 and 1.5.3). It is

externally assessed by the leading CSR rating agencies (see Section 1.5.4).

The Group's Non-Financial Statement (NFS) details the governance and results of this policy (see Chapter 3).

1.5.1

CSR policy

With regard to CSR, the Group aims to make energy a source of progress and development for all. Within ENGIE, CSR plays an integral part in the business strategy, through:

• the development of sustainable business, which involves identifying environmental and societal issues and transforming them into opportunities for the Group's businesses;
• the management of the CSR risks and impacts of its projects and activities and its value chain, i.e. relating to the environment, social acceptability, health and safety, human resources, ethics, and governance.

ENGIE published its CSR policy in 2014 (it was updated in 2020), and in 2016 set six CSR targets for 2020. The achievement of these targets is announced to the market at each annual closing of the financial statements and published in each edition of this document. 2020 was the last year in which these targets were monitored.

The forward-looking work on ENGIE 2030 and the Group's Purpose Statement, published in February 2020 and approved for inclusion in the bylaws by the Shareholders' Meeting in May, have resulted in the definition of a new set of 19 CSR targets for 2030. Eight "rank 1" targets will be monitored each year. 2020 was therefore the first year in which the targets were monitored.

The CSR commitments and policies are systematically approved by the Group Executive Committee and the Ethics, Environment and Sustainable Development Committee (EESDC). They result in the Group not only fulfilling its statutory and regulatory obligations in the various CSR areas, but also, and in particular, adopting the best possible practices to anticipate and manage as effectively as possible the impacts of its activities on its sphere of influence, and vice versa. Another aim of the CSR commitments and policies is to maximize value creation for all stakeholders.

All these objectives align perfectly with the 17 Sustainable Development Goals for 2030 established by the United Nations. They are also part of the acceleration of the Group's strategy approved in July 2020. They correspond to the Group's materiality matrix, which was updated in December 2020 following a consultation process with stakeholders and management (see Section 3.3).

Climate change constitutes today a major environmental challenge for our society in general, and for ENGIE in particular. To address it, the Group has engaged in a Greenhouse Gas (GHG) reduction programme, in a climate vigilance plan, in a natural resources consumption reduction programme, and finally, in a business model adaptation programme to make it resilient to climate evolutions while complying with the constraints of a fair transition.

ENGIE thus includes an internal carbon price in its Group Commitments Committee process for major investment decisions. This system is complementary to the carbon budgets allocated to the entities in order to meet the Group's 2030 target in terms of GHG emissions.

The Group also takes 12 CSR criteria into account for its major investment projects, assessed using risk and opportunity analyses. These criteria mainly relate to: ethics, GHG emissions, social impact, human resources, environmental management of ecosystems, cooperation with stakeholders, sustainable purchasing, and employee health and safety.

Lastly, an increasingly sizeable part of the Group's investments is successfully funded through green bonds, demonstrating the market's recognition of their durability (seeSection5.3).

1.5.2

2020 CSR targets

ENGIE set itself six CSR targets in 2016 to be achieved by 2020. They respond to changes in the energy sector, the gradual integration of environmental and societal issues into stakeholder requirements, and its aim of being a leader in the energy transition.

2020 was the last year in which these targets were monitored. They have been replaced by the 2030 CSR targets, the first year of achievement of which is presented below. The 2020 results of the indicators for the 2020 CSR targets are shown in the table below, with a reminder of the 2018 and 2019 figures.

1.5 CSR performance

2020	2020	2019	2018
Theme	Indicators	targets	results	results	results
Customer satisfaction	Satisfaction rate of BtoC customers	≥ 85%	76%	72%	81%
Renewables	Share of renewable energy in the electricity	≥ 25%	31%	28%	24%
production capacity mix
GHG emissions	% reduction of the CO2 equivalent emissions ratio	≤ -20%	-52%	-44%	-29%
for energy production compared with 2012
Stakeholder dialogue	% of industrial activities covered by an appropriate	100%	100%	74%	53%
mechanism for dialogue and consultation
Gender diversity	% of women in Group workforce	≥ 25%	21.5%	20.9%	21.1%
Health and safety	Frequency rate of accidents with employee lost-time	≤ 3.4	3.0	3.7	3.4
injuries

The satisfaction rate of BtoC customers at end-2020 was 76%, up 4% compared with 2019. This indicator was reconfigured in 2019 with a change of methodology. Customers are now questioned online, rather than by telephone, which automatically resulted in a decrease of 12 points in the indicator in 2019 and 2020. Despite a difficult year in 2020 due to the health crisis, this increase mainly reflects the specific measures taken by the BUs to support their customers and keep in contact with them. The initial target was not restated to take account of the change in methodology, resulting in its apparent non-achievement. Monitoring of customer satisfaction will continue via a Net Promoter Score (NPS) indicator, which also showed an improvement in 2020.

Renewables capacity, counted at 100%, regardless of the rate of detention, as a proportion of the electricity production mix increased to 31% in 2020 (from 28% in 2019). The Group has therefore amply exceeded its initial target of 25% since 2019. ENGIE commissioned 3GW of renewables capacity in 2020, including 2GW in the United States. At end-2020, the capacity of ENGIE's renewables assets was 31.5GW. The 3GW commissioned in 2020 was made up of onshore wind for 70%, solar power for 21% and, for the first time, offshore wind for around 9%, due to the commissioning of the first tranche of the Seamade Mermaid wind farm in Belgium. Monitoring of this indicator will continue in the context of the 2030 targets. The ratio of greenhouse gas (GHG) emissions relating to energy generation (scope 1) decreased by 52% in 2020 compared with 2012, with emissions of 212.5 gCO2/kWh in 2020. This result was far better than the target of -20% set at the end of 2015, which was achieved in 2018. It is attributable to the acceleration in exit plan of thermal power plants in recent years. It also shows the Group's commitment to achieving a trajectory compatible with a maximum global

warming level of 2°C. Monitoring of this ratio will continue through the SBT 2030 target for reducing the ratio of GHG emissions relating to energy generation (scopes 1 and 3) and a 2020 target for these GHG emissions, now expressed as an absolute value.

The level of industrial activities covered by an appropriate mechanism for dialogue and consultation was 100% at the end of 2020. This target was achieved partly due to awareness-raising and training of employees with respect to dialogue with stakeholders, and partly due to technical support from the CSR sector for the creation of action plans adapted for regional issues. Monitoring of this target will continue through a broader 2030 societal target relating to the creation of societal action plans extending to all our activities.

The gender diversity rate within the Group's workforce was 21.5% in 2020, up 0.6 percentage points compared with 2019. This improvement is not insignificant, given the Group's difficulties in hiring female engineers and technicians to the technical functions and the small proportion of women in the Bac Pro and Bac 2/3 training routes within the technical sectors. The health crisis has also seriously affected external hiring and slowed the roll-out of the Group's various projects to increase female representation. However, this increase was not enough to achieve the initial target of 25%. Efforts to improve gender diversity in the Group's workforce will, of course, continue, with a new 2030 target focused on management.

The lost-time injury frequency rate of employees was 3.0 at the end of 2020, enabling the Group to achieve its target. Monitoring of this target will continue as part of the new 2030 target, extended to subcontractors on sites with controlled access.

1.5.3

2030 CSR targets

In 2020, the Group set itself 19 ambitious targets to be achieved by 2030, in order to meet its CSR commitments by this deadline.

Based on the Group's purpose, these targets are part of a continuous improvement approach, taken in response to a growing expectation on the part of the Group's variousstakeholders interested in CSR risk management and the alignment of its performance with national or international sustainable development goals.

The results of the eight key objectives, referred to as Tier 1, will be published annually in this document.

The 2020 results of the indicators for the eight Tier 1 2030 SCR targets are shown in the table below, with the 2019 figure where available.

Themes CO2 energy generation

Indicators

2030 targets

2020 results

2019 results

GHG emissions (scopes 1 and 3)

CO2 gas salesRenewablesDecarbonization of our customers Decarbonization of our suppliersHealth and safety

Gender diversity W/M equity

for energy generation (in Mt CO2 eq.) in accordance with SBT commitments GHG emissions relating to the use of sold products (in Mt CO2 eq.),

in accordance with SBT commitments % of renewable energy in the electricity production capacity mix, in accordance with SBT commitments % of our offers including an alternative that helps to decarbonize % of preferred suppliers (excluding energy) certified by or aligned with the SBT initiative

Total frequency rate of employee time-loss accidents % of women in Group management Equity ratio women/men

≤ 43
≤ 52

≥ 58%

100% ≥ 10%

≤ 2.9

≥ 50%

France 100

Outside Fr. 100

68 75

62 61

31% 28%

51% 15%

2.7

24.1%

France 87

Outside Fr. 80

not available not available

3.3

23.5%

France 72

Outside Fr. 72

GHG emissions from energy generation have fallen sharply, mainly due to withdrawal from the coal business. They now stand at 68 Mt CO2, breaking down into 36.4 Mt for emissions from controlled assets (scope 1) and 31.1Mt for emissions from assets consolidated by the equity method (scope 3). GHG emissions relating to the use of sold products (scope 3) stand at 62 Mt CO2 eq., practically equivalent to the 2019 level. They essentially correspond to gas sales.

Renewables now make up more than 31% of the Group's capacity due to the development strategy in renewable energy sources.

The decarbonization level of customers is 51%, demonstrating our approach to helping our customers combat climate change. The indicator is calculated according to the proportion of commercial offers to customers containing an alternative that helps them decarbonize. The offers helping customers with decarbonization were determined according to a pre-established list of products and services based on the taxonomy used in the Group's information systems. This target will likely be replaced to make it more relevant.

The decarbonization level of preferred suppliers reached 15% in 2020. This indicator has been monitored since early 2020. An action plan has been created to raise awareness among the Group's preferred suppliers (around 250) of ENGIE's carbon footprint targets and to encourage them to obatin a SBT certification. The actions taken with respect to suppliers will vary according their level of maturity.

The total lost-time injury frequency rate (including subcontractors on sites with controlled access) reached 2.7. The marked improvement on the end of 2019 can be partially explained by a positive "Covid-19" effect, however difficult to quantify, mainly due to partial unemployment and work at home.

The proportion of women in management is 24.1%, up 0.6 percentage points compared with 2019. The fifty-fifty program, dedicated to the cultural transformation of the Group, was launched in early 2020 to attract and retain female talents and thus accelerate and support the promotion of gender equality.

The professional and pay gender equity index, which reached 87 in France and 80 outside France, has improved markedly. All the entities in France exceeded the minimum threshold of 75 points established by the French government. These positive results reflect an awareness of the need to rebalance levels of pay between women and men, a review of the associated processes and the preparation in 2020 of remediation plans by all the entities.

Most of the Group's social indicators (see Section 3.4), environmental indicators (see Section 3.5), and societal indicators (see Section 3.6) are audited by an independent third party (see Section 3.10).

1.5.4

CSR ratings

ENGIE's CSR performance was again recognized in 2020 by the SAM rating agency with a score of 81/100, confirming its inclusion in the Dow Jones Sustainability Index (DJSI) World and Europe.

The Group remains present in the three Euronext indices VigeoEiris Europe 120, Eurozone 120 and France 20, and was listed A1+ with a rating of 65/100 in 2020 by the VE rating agency (formerly VigeoEiris).

In 2020, the Sustainalytics rating agency assessed the Group's CSR risk with a rating of 30 at the borderline between medium and high risk. This rating keeps the Group in the top half of its sector.

The MSCI rating agency rated the Group A in 2020, referencing it in its MSCI EMU ESG and Europe ESG indices. The ECOVADIS rating agency rated the Group with a score of 75/100.

Finally, as it does every year, ENGIE also answers the CDP (ex-Carbon Disclosure Project) questionnaire. In 2020, the Group maintained its position on the list of leaders in terms of strategy and actions to combat climate change ("A-list"). The Group made progress on its performance in the protection of water resources by moving from the "B-list" to the "A-list".

In conclusion, the Group has very good CSR ratings with performances above the sector average.

1.6

Description of the Group's activities

Until December 31, 2020, ENGIE's organizational structure comprised 25 BUs(1), primarily geographical. For financial reporting purposes, the Group has grouped operating segments in accordance with IFRS 8 and presents sector information organized around seven reportable segments (see Section 6.2.2 "Consolidated financial statements" - Note 6 "Segment information").

In this section, the description of the Group's businesses and strategic economic assets is primarily structured around financial reporting requirements, with the sections organized according to the reportable segments.

1.6.1

France

1.6.1.1

France (excluding Infrastructures)

The France BtoB, France BtoC, France Networks and France Renewable Energy operating segments include all French downstream energy business lines and renewable energy production, which is becoming increasingly decentralized. These are complementary businesses that are supported by a strong regional network. These activities are structured into five entities. These are:

• the France BtoC BU, in charge of energy sales and related services for residential and small business customers;
• the France Renewable Energy BU, in charge of the development, construction, financing, operation and maintenance of all renewable power generation and biomethane assets in France;

• three groupings within the ENGIE Solutions BU:
- - Cities & Communities (C&C),
- - Properties & Proximity (P&P),
- - and Industries.
  These three entities are responsible for energy sales and services for buildings and industry, cities and regions, and major infrastructure. They are engaged in the design, financing, building and operating of decentralized energy production and distribution facilities, and power, heating and cooling networks.

Key figures

In millions of euros Revenues

EBITDA

At Dec. 31, 2020 14,856 1,391

At Dec. 31, 2019

Total change (in %)

15,854 -6.3%

1,673 -16.9%

1.6.1.1.1

ENGIE Solutions

1.6.1.1.1.1 Mission and activities

ENGIE Solutions designs, builds and operates high-performance facilities, buildings and infrastructure to help businesses and local authorities in their transition to a low-carbon economy. These solutions are being rolled out in a challenging national context, influenced by both governments' commitments to comply with their decarbonization trajectories and by post-Covid recovery plans.

The solutions deployed by ENGIE Solutions are based on the strong expertise of its entities, enabling it to offer complex solutions. These benefit from a dense regional presence in France and the Overseas Territories. ENGIE Solutions has proven capacity to support the financing of its customers' projects. It builds a dynamic of innovation, anticipating and supporting new needs by combining digital innovations (Building Information Modeling, hypervision, data analysis, etc.), technological innovations (hydrogen, biogas and biomass, mini-cogeneration, micro-grids, etc.) and behavioral innovations (self-consumption, short circuits, shared use, recycling, virtual economy, etc.).

To consolidate its position as France's leading integrator of energy and environmental efficiency solutions, ENGIE Solutions is continuing its organic growth and targeted acquisitions strategy along three lines:

• Greening of the technical facilities of its customers, in urban networks (heating and cooling networks, public lighting, new green mobility, etc.) and in industrial and building equipment (environmentally responsible energy generation, cooling and refrigeration, air treatment, etc.);
• Design and operation of complex projects, combining several disciplines, with a performance commitment over a period of use;
• Development of innovative energy-efficiency and environmental solutions by combining new technologies and digital.

Leveraging a brand that groups together its historic expertise in climate, energy, electric, mechanical and industrial engineering, ENGIE Solutions acts throughout the entire energy services value chain, from auditing & advisory, design & build, new construction and renovation (with financing), and repair and maintenance, to full operation with useful long-term energy supply and performance commitments.

These solutions to support the transition to carbon neutrality are aimed at manufacturers, the tertiary sector (public or private), infrastructure managers (of transport, energy and telecommunications), municipalities and local authorities, and multi-dwelling unit managers.

(1) There is also a twenty-sixth entity comprising the holding and corporate activities, including the entities responsible for the Group's centralized financing, ENGIE SA's Businesses and Local Authorities business activity, and the contribution of the associate company SUEZ

Since early 2020, ENGIE Solutions in France has comprised three operating entities: the "Industries" BU, the "Properties & Proximity" BU and the "Cities & Communities" BU. This organization will evolve during 2021 following the strategic review of Client Solutions.

1.6.1.1.1.2 Description of the entities' activities

ENGIE Solutions provides its various solutions to three customer segments, each managed by a dedicated entity:

Solutions for the Industries

ENGIE Solutions (through the "Industries" BU, which coordinates these actions) uses its range of expertise and skills, strong regional roots and social and societal commitment to support the transformation of industrial players, enabling them to consume less, consume better and preparing them for future challenges.

To optimize energy use, ENGIE Solutions ensures that industrial processes perform sustainably by offering competitive global solutions that are environmentally friendly. The projects developed build safe and efficient working environments, with the aim of enriching the user experience and providing a model: for example, ENGIE Solution's support for ARKEMA in the recovery of its waste via fatal heat recovery and utility management.

To help its customers consume carbon-neutral energy and resources, ENGIE Solutions provides "low-carbon" energy from renewable resources. It ensures the availability of local energy sources in line with the level of activity of its customers: for example, the management by ENGIE Solutions of MONDELEZ's utilities under a global maintenance and facility management contract.

To develop the industry of the future, ENGIE Solutions supports new development and industrial transformation projects in France and internationally. This is the case with SOITEC, for which ENGIE Solutions participates in the design and implementation of execution studies and the continuous improvement of its processes.

Solutions for buildings (tertiary and collective residential)

The priority areas for development in the tertiary segment (coordinated by the "Properties & Proximity" BU) are to position ourselves in the sectors supported by the "France Relance" ("Relaunch France") plan (State building stock, cf. calls for tenders in progress for the renovation of administrative cities and army housing), university and healthcare facilities, sectors that are resilient or have a strong digital component (station data centers), and more generally, to develop global offers with guaranteed results (energy performance contracts with commitments to reduce or even neutralize the carbon footprint).

For example, in 2020 ENGIE Solutions entered into:

• the 11-year energy performance agreement with Océanopolis in Brest, including the direct supply of renewable energy via a green PPA favoring the development of new renewable energy capacity in France;
• the renewal of the agreement for the "Cœur Défense" office buildings, i.e. 350,000 m2 (two forty-story towers and three high rise buildings), of which 25% of the energy consumption will be offset by a solar park, currently under construction in the south of France;
• the eight-year "Smart stations" agreement with "SNCF Gares & Connexions", to monitor and optimize the energy consumption of 579 stations, remotely monitor various technical equipment in real time and control equipment remotely to reduce travel by staff.

These activities are structured (obligations and deadlines) by the regulatory framework for energy transition, which was strengthened in 2019 by the Multi-Year Energy Program, the ELAN Law, the Energy and Climate Law, the Mobility Orientation Law and the Tertiary Decree.

ENGIE Solutions Property and Proximity has been a player in the recovery following the Covid-19 crisis, particularly in the achievement of the goals of the France Relance plan concerning the thermal renovation of public buildings and collective housing. Its regional network and the synergies established with thousands of SMEs throughout France make it a natural partner to boost the economy and employment at the local level.

Lastly, to respond specifically to the health challenges caused by the pandemic, a "Healthy Building" offer was designed during the first lockdown. This is currently being rolled out to the tertiary sector (public and private).

Solutions for Cities and Communities

ENGIE Solutions is positioned as the trusted partner for the energy transition of the regions in three areas, developed by the "Cities & Communities" BU:

• acceleration of development in energy networks, with financing wherever ENGIE Solutions can be the leader by offering increasingly decarbonized energy, both in activities where it is already present (heating networks, cooling networks, overseas electrical networks, public lighting, etc.), and in new markets (urban operators of districts, charging networks, etc.). In 2020, the main features of this acceleration were:
- - the use of new contractual models such as the SAS EnR model in Rueil-Malmaison, where ENGIE Solutions produces geothermal energy-based heat through a company dedicated to generation in which the City is a minority shareholder. This company's main customer will be the City's future heating network,
- - the award of a first charging network concession, granted by the Eurometropolis of Strasbourg;
• development of global, multi-business and multi-service Smart City solutions, with the symbolic Angers Loire Metropolis contract, launched in 2020, as a model;
• optimization of the performance of our existing assets, in particular by accelerating the roll-out of our digital platforms, such as Darwin. This performance is both a source of growth in itself and a showcase for the conquering of new networks. In November 2020, ENGIE Solutions launched Rezomee, a new digital platform for, and inspired by, its customers (heating and cooling networks) and their users; Rezomee is both a website and a mobile application designed manage all communication across all of our networks.

1.6.1.1.2

France BtoC

1.6.1.1.2.1 Missions & Strategy

The France BtoC teams handle energy sales and related services for residential and small business customers.

The goal of the France BtoC BU is to become the leader in home comfort and the preferred supplier of the French, in order to help its customers in their transition to carbon neutrality.

Its four strategic priorities are: (i) increased sales of electricity and services; (ii) customer satisfaction; (iii) operational excellence; and (iv) innovation.

1.6.1.1.2.2 Description of activities

In an environment where competition in the energy market is becoming ever more intense, the BU is still the leader in natural gas sales in France and is continuing to expand in electricity. The BU confirmed its lead over other alternative power suppliers with a portfolio of 5 million customers at the end of 2020, including almost 3 million in green electricity. The successful launch of its green offers in 2016 has continued in the years since, positioning ENGIE as France's leading supplier of green energy. ENGIE now offers a wide range of green electricity and gas contracts.

• decentralized power (individual or collective own consumption or load shedding) or heat (heat pump) generation solutions based on renewable energy solutions;
In Services, the France BtoC BU is active in:
• green comfort services: energy diagnostics, energy coaching, installation of high-performance equipment, facility maintenance, remote monitoring and financing. Among other things, the Group is a leader in domestic boiler installation and maintenance through its ENGIE Home Services subsidiary;
• green mobility services: consultancy, installation of charging points and electric vehicles leasing.

In order to help its least financially secure customers manage the crisis, ENGIE decided to offer two months of payments in electricity to 600,000 homes. The BU also set up payment facilities very early on for business customers affected by the crisis. The teams of technicians also worked hard to ensure that no households were left in emergency situations and to catch up with routine operations that could not be carried out during periods of lockdown. ENGIE Home Services thus ended the year having completed its entire intervention program.

Regulatory changes: France's Energy and Climate Act, which passed into law on November 9, 2019, set deadlines for the end of regulated tariffs for natural gas sales. For individual customers (and apartment buildings and condominiums consuming less than 150,000 kWh/year), regulated tariffs will end on July 1, 2023. The Energy Climate Law also stipulated that regulated electricity tariffs would end at the end of December 2020 for all business consumers with more than ten employees, with annual turnover, revenue or total annual balance sheet assets of more than €2 million. In accordance with the law, ENGIE stopped marketing contracts on regulated tariffs on December 8, 2019.

1.6.1.1.3

France Renewable

1.6.1.1.3.1 Missions & Strategy

The role of the France Renewable BU is to develop, build, finance, operate and maintain ENGIE's biomethane and power production in France. The BU offers green energy production capacity that is diversified as part of a more local and secure approach spanning four sectors: solar power and onshore wind power (ENGIE Green), hydroelectric energy (CNR and SHEM) and biogas (ENGIE Bioz).

The BU also provides technical expertise and industrial support, including purchasing, to the Group and its subsidiaries or joint ventures, through pooled teams of experts.

It performs its missions using its own teams and through the ENGIE subsidiaries that report to the BU and are described in the following section.

The BU is active in all the above activities, which are driving and will drive the green growth in the French energy mix. The BU aims to substantially boost its development in wind and solar, as well as biomethane, while bolstering its positions in hydroelectricity:

• onshore wind: strengthen the Group's leadership in a market that is expected to more than double by 2023. The BU mainly positions itself by responding to government calls for tenders;
• solar power: significantly accelerate growth in a market expected to more than triple by 2023. The BU will respond to dedicated calls for tenders and contribute to the emergence of private contracts;
• hydroelectricity: maintain a leadership role by seizing any market opportunities while strengthening the positions of the Group, which is the leading alternative operator in France;
• biogas: build on the initial projects developed in order to accelerate significantly and make ENGIE a decisive player in this high-potential market.

1.6.1.1.3.2 Description of activities

The France Renewable Energy BU comprises a set of subsidiaries owned by ENGIE, either alone or in partnership:

• ENGIE Green (Entity resulting from the merger of French businesses Futures Energies and Maia Eolis (2016), Compagnie du Vent (2017), Solairedirect (2018), Langa (2018), Saméole (2019) and Renvico France (2020)): onshore wind, solar power);
• SHEM (Société Hydro-Électrique du Midi): hydroelectricity around the Pyrenees mountain range;
• CNR (Compagnie Nationale du Rhône, in which ENGIE has a 49.97% stake), and its subsidiary CN'Air: hydroelectricity, onshore wind, solar power;
• ENGIE Bioz, a subsidiary jointly owned by ENGIE Green and Storengy SAS, is responsible for developing regional methane conversion projects and operates across the entire biomethane value chain, from prospecting and development to financing and the monitoring of the construction of methane conversion projects and their operation.

The Covid-19 health crisis has slowed down project authorizations, and the schedule for government calls for tenders has therefore been adapted.

Regulatory changes: the Multi-Year Energy Program (PPE), published in April 2020, contains a tender schedule and a satisfactory objective for offshore wind and solar power (particularly ground-mounted). Regarding biomethane, trajectories are lower than the development potential in France in relation to the number of known projects.

The tender specifications of the Energy Regulation Commission (Commission de régulation de l'Energie) should include new measures, particularly in relation to the carbon footprints of the various sectors.

After the entry into force of the reform of the flat-rate tax on network companies for solar, other measures have been taken to simplify the legislation regarding onshore wind, including the removal of a level of jurisdiction in the event of appeal.

1.6.1.2

France Infrastructures

The France Infrastructures reporting segment groups together the activities of four BUs: GRDF, GRTgaz, Elengy, and Storengy. These BUs develop, operate and maintain natural gas transmission, storage, and distribution networks and facilities, along with LNG terminals. They mainly operate in France, as well as in Germany and the United Kingdom. They sell access rights to these infrastructures to third parties.

The GRDF, GRTgaz, Elengy and Storengy operating segments, which comprise the gas infrastructure businesses in Europe (distribution, transport, LNG terminals, and storage), have been grouped together within the France Infrastructures reporting segment as they are all regulated businesses (or businesses likely to be regulated) with similar risk profiles and margins.

Key figures

In millions of euros Revenues

EBITDA

At Dec. 31, 2020	At Dec. 31, 2019	Total change (in %)
5,439	5,569	-2.3%
3,290	3,539	-7.0%

1.6.1.2.1

GRDF

1.6.1.2.1.1 Missions & Strategy

In France, GRDF, an independent subsidiary of ENGIE, develops, operates and maintains distribution networks and delivers gas for consumers. GRDF is tasked with giving all natural gas suppliers and biomethane producers equal access to its network.

GRDF develops its activities according to the three objectives stated in its enterprise project: (i) strive for operational excellence in the performance of its business lines to be recognized as a committed professional; (ii) make gas an energy of the future by demonstrating its relevance in the energy mix; and (iii) build a responsible, more open and collaborative business model with all the business lines.

1.6.1.2.1.2 Description of activities

The distribution activity has specific features related to its classification as a local utility. Each municipality where natural gas supply is available grants a concession to an authorized distributor to operate the natural gas utility in its territory. Concessions are entered into or renewed based on a standard agreement established jointly by the French national federation of concession-granting and state-controlled municipalities (Fédération nationale des collectivités concédantes et régies or FNCCR), the Urban Landowners' Association (Association Foncière Urbaine or AFU) and GRDF.

The concession-granting bodies then carry out controls to ensure the proper execution of the obligations arising from these concession agreements.

The concession agreements with the City of Paris and the City of Lyon were renewed in late 2019 and early 2020 respectively. Since mid-2018, GRDF has also been engaged in discussions with the French national federation of concession-granting and state-controlled municipalities (Fédération nationale des collectivités concédantes et régies or FNCCR) and the Urban Landowners' Association (Association Foncière Urbaine or AFU) with the aim of modernizing the model contract that will be used for future contract renewals with the concession-granting authorities.

Distribution structures belong to the municipalities even when they are built and financed by GRDF. GRDF is the concession operator of these structures and has exclusive use of them. The Energy Code recognizes the entitlement of the historical concession operators, i.e., GRDF and 22 local distribution companies (ELD), to exclusive service areas. As holders of a "distribution monopoly," they are the sole operators with which the conceding municipalities may renew the concession. The grounds for terminating a concession contract early are strictly controlled (listed exhaustively) as is the date the concession can be terminated (it cannot be in the first half of the contracted term). Termination also requires two years' notice and the concession-granting authority must pay compensation to the concession operator for early termination.

Apart from the exclusive service areas of GRDF and the local distribution companies, all municipalities not supplied with natural gas may entrust their public gas distribution to the authorized operator of their choice, following competitive bidding.

Apart from this specific case of public service delegations recently acquired after a competitive bidding process, GRDF's activity is remunerated by a tariff set by the CRE. Following the CRE's decision of January 23, 2020, the new GRDF natural gas distribution tariff, "ATRD6," entered into force on July 1, 2020 for a period of four years. It applies to the GRDF exclusive service area. The structure of this tariff is consistent with the previous tariff.

The CRE took into account all major projects that GRDF will take on during the period, such as the end of the smart meter roll-out in 2023 and the gas changeover project (conversion from B gas to H gas in northern France). The CRE thus changed the remuneration rate of the regulated asset base of GRDF to 4.10% (real before tax) for 2020-2023.

The new ATRD6 tariff will lead to more or less stable tariffs (average change of around 0.3% per year). It gives GRDF the leeway it needs to maintain a high level of security and play an active role in the energy transition.

As a result, the tariff decreased slightly by 0.4% on July 1, 2020.

2020 also marked the end of the pilot phase of the Dunkirk sector gas changeover project, with conversion in late October 2020. The feedback from this pilot phase should allow CRE to set the tariff framework and trajectory for this project over the period 2021-2029.

GRDF has emerged from this year of crisis while fulfilling its fundamental goals of safety and customer service, thanks to an evolving organization that is adapted to the context and to the constraints imposed by the public authorities. On the financial level, however, the analysis will have to be carried out comprehensively over a period of several years, although the impact on 2020 was certainly limited.

1.6.1.2.2

GRTgaz

1.6.1.2.2.1 Missions & Strategy

GRTgaz is an independent subsidiary of ENGIE. The employees of GRTgaz own 0.35% of the capital of their company. ENGIE and Société d'Infrastructures Gazières (SIG), a public consortium composed of CNP Assurances, CDC Infrastructures and Caisse des Dépôts, hold 75% and 25% of the share capital respectively.

GRTgaz develops, operates and maintains the main gas transmission network in France. It manages the natural gas flows that flow through it, and markets network access services to gas suppliers and customers directly connected to its network. It manages gas transmission operations in Germany through its GRTgaz Deutschland subsidiary. In 2017, GRTgaz acquired ENGIE subsidiary Elengy, which operates LNG terminals in France. Following the acquisition in 2020 by Elengy of TOTAL's shares in their joint subsidiary Fosmax LNG,

GRTgaz's strategy is to ensure the company's development in the long term both in France and internationally. GRTgaz aims to:

and the acquisition by Société d'Infrastructures Gazières of a stake in Elengy's capital, GRTgaz's holding in this subsidiary was reduced to 82.2%.

• continue to operate gas infrastructures in a secure and optimized way by contributing, in particular, to the increased integration of European markets in gas (currently methane, but potentially, and in the long term, hydrogen);
• pursue its firm commitment to the energy transition, working with stakeholders and regions, in particular by promoting the development of renewable gases (biomethane injected into the transmission network and hydrogen), the use of renewable and low-carbon gas (in industry, mobility), and research on the recovery of surplus renewable electricity (power to gas).

1.6.1.2.2.2 Description of activities

In France, it owns and operates more than 32,000km of buried pipeline and 26 compression stations to take gas from suppliers to consumers (distributors or manufacturers directly connected to the transmission network). GRTgaz has a public service mandate to guarantee the continuous supply of gas to consumers. It also sells transmission services to network users. GRTgaz plays an active role in the energy transition, investing in innovative solutions to adapt its network accordingly and combine competitiveness and security of supply with environmental protection.

GRTgaz's business is conducted within a general framework designed to guarantee the independence of the grid manager. The financial and operational consequences of the Covid-19 crisis should be limited for GRTgaz. The company's revenues are largely based on capacity subscriptions that depend little on the volumes actually consumed.

Regulatory changes: France's Energy Code stipulates that the construction and operation of natural gas transmission pipelines shall be subject to a specific and non-transferable authorization issued by the competent administrative body. By resolution of January 20, 2020, the CRE defined the methodology and set the tariffs for the use of transmission networks in France known as "ATRT7," applicable for 2020-2023.

In this context and applying the methodology and inflation assumptions used, the gas transmission tariff applicable at April 1, 2020 (ATRT7) will increase by 1.4% on average per year in the period 2020-2023 (CRE Decision of January 20, 2020). The CRE thus changed the remuneration rate of the regulated asset base of GRTgaz to 4.25% (real before tax) for 2020-2023.

With this new tariff, CRE is maintaining the resources granted to GRTgaz to meet the challenges of energy transition in the context of the previous tariff (ATRT6), while requiring a high level of performance from the operator.

1.6.1.2.3

Elengy

1.6.1.2.3.1 Missions & Strategy

LNG terminals are port facilities that allow liquefied natural gas (LNG) to be received and regasified. New services have been developed since 2012, such the reloading of LNG tankers, transshipment between vessels, and LNG tank truck loading.

Elengy is the second-largest European LNG terminal operator (source: GIIGNL), with three LNG terminals in France. The facilities operated by Elengy had a total regasification capacity of 21.25 billion m3 (Gm3) of gas per annum as of December 31, 2020.

Elengy's strategy is defined around on the following key points:

• optimize the operating methods of each of the three sites in order to make them as efficient as possible, regardless of their utilization rate;
• design and offer new LNG storage and transfer services at its terminals or at remote satellite sites;
• increase or find a new use for LNG, particularly as an onshore or marine fuel; and
• become a decarbonization player dedicated to the development of clean energy imports and the associated port infrastructure, in France or internationally.

In 2017, GRTgaz, ENGIE's independent subsidiary, acquired Elengy. Following Elengy's acquisition of TOTAL's stake in their joint venture Fosmax LNG in 2020, Elengy is now the sole owner of its three terminals, and Société d'Infrastructures Gazières has become a shareholder of Elengy with a stake of 17.8% (with GRTgaz holding the remaining capital of 82.2%).

1.6.1.2.3.2 Description of activities

Commissioned in 1972, the Fos Tonkin terminal is located on the Mediterranean coast and receives LNG primarily from Algeria. Its regasification capacity stands at 3 billion Gm3 of gas per year. Its dock can accommodate vessels carrying up to 75,000 m3 of LNG while its tank has a total capacity of 80,000 m3. Its commercial capacity was reduced to 1.5 Gm3/ year on January 1, 2021.

The Montoir-de-Bretagne terminal, commissioned in 1980, is located on the Atlantic coast and receives LNG from various sources. It has a regasification capacity of 10 Gm3 of gas per year, two docks that can accept tankers transporting up to 260,000 m3 of LNG (Qmax) and three storage tanks with a total capacity of 360,000 m3 of LNG. The work completed in 2017 allowed the start-up of a new, sustainable transshipment activity.

The Fos Cavaou terminal, brought into commercial service in 2010, has a regasification capacity of 8.25 Gm3 of gas per year, a dock that can accommodate Qmax-size tankers, and three tanks with a total capacity of 330,000 m3 of LNG. Regulatory changes: the LNG terminals are accessible to all LNG suppliers. The tariffs for access to regasification are regulated. The current tariffs were set by the CRE resolution of January 18, 2017 and have been in force since April 1, 2017. They were revised by the resolution of November 15, 2018 for application from April 1, 2019. The tariffs for the next period starting April 1, 2021 have been defined since the resolution of January 6, 2021. The CRE has redefined the rate of remuneration of Elengy's asset base for 2021-2024 by resetting the base rate before specific increases for LNG to the rate applicable to transmission since 2020 (ATRT7 tariff). The tariffs apply to a basic service, which is the main offer of LNG terminal operators. This offer may be supplemented by an option guaranteeing a uniform emission for 20 to 40 days. The LNG tanker transshipment and loading services are not regulated.

1.6.1.2.4

Storengy

1.6.1.2.4.1 Missions & Strategy

With Storengy, the Group is the leader in underground natural gas storage in Europe, with net storage capacity of 12.2 billion m3. Storengy adapts to handle the risks weighing on its core business and develop new ambitions made possible by the energy transition, particularly in the following areas:

• promoting underground storage as a key part of developing intermittent renewable energy. Storengy's annual storage capacity (138 TWh) corresponds to the energy generation of 9,200 offshore wind turbines or the energy needed to power 20 million electric vehicles;
• renewable gases, with production and storage of biomethane, hydrogen and synthetic methane, the combination of which is expected to result in a 100% carbon-neutral energy mix by 2050 in Europe, while generating positive external factors for the regions (decentralized systems, local jobs, waste processing, etc.);
• renewable heating and cooling, with the use of the sub-soil to produce and store heat and cold, providing a comfort service to users on the scale of a building, a district or a town, while reducing their environmental footprint;
• renewable electricity, by managing high-temperature geothermal energy and decarbonized and non-intermittent energy.

1.6.1.2.4.2 Description of activities

Gas storage and conversion to renewable gas

In France, Storengy SA operates 14 underground storage facilities. Nine of these are in aquifers (total useful storage volume of 9 billion m3), four are in salt caverns (1 billion m3) and one is in a depleted field (80 million m3). Three of these sites are in reduced operation according to precise regulatory procedures (880 million m3).

Regulatory changes: the storage reform introduced in 2018 enabled regulation of this activity in France under an offset auction scheme, ensuring maximized fill levels for the facilities and visibility on revenues. The third year of sales (2020-2021 capacity) was thus a success: 95 TWh were sold (100% of supply).

A new ATS2 period defining the authorized revenue of operators for 2020-2023 was also implemented in 2020. In its Resolution no. 2020-011, the CRE changed the remuneration rate of the regulated asset base of Storengy to 4.75% (real before tax) for 2020-2023 and introduced an incentive regulation for its operating costs.

In Germany, Storengy Deutschland GmbH, a wholly owned subsidiary of Storengy, holds and operates six storage sites (1.7 billion m3; three salt sites and three depleted sites), and operates a seventh storage facility for a third party.

In the United Kingdom, Storengy UK Ltd, a wholly owned subsidiary of Storengy, operates the storage site in saline caverns in Stublach (400 million m3). With 20 caverns, this storage facility is the largest in operation in the UK. Furthermore, thanks to the expertise it has acquired in Europe, Storengy is positioned on projects to develop new storage sites in countries where natural gas is a major driver for the energy transition (for example: Brazil and Mexico).

In Europe, Storengy is also preparing to convert storage assets to renewable gas in order to add value to gas storage in a decarbonized market. Since June 2017, Storengy France has approved unlimited injection of biomethane into French underground storage facilities.

In hydrogen, Storengy is working closely with the other gas operators to assess the tolerance of its equipment to hydrogen and to prepare as far as possible for the integration of this hydrogen into its gas infrastructure (HyGreen and Hypster projects in France, Centurion in the UK). In France, the Energy and Climate Act extends the right of access to the natural gas networks to all types of renewable gas or gas deriving from energy recovery intended for injection, as long as this does not disrupt the operation and security of the networks.

Production and storage of renewable gas

Storengy SAS is now a key player in biomethane production in France through ENGIE BiOZ (16 units in production). The development of this business will take place in accordance with the new strategies set out in the Multi-Year Energy Program and with the evolution of systems to guarantee the origin of the biomethane injected into the natural gas network.

Storengy has also undertaken as of now to develop projects for the production and use of renewable hydrogen at the regional level. Storengy is thus developing a portfolio of renewable hydrogen production, storage and use projects of around 50 MW. These projects are part of the France Hydrogène strategy in the national recovery plan.

Lastly, Storengy is positioned on synthetic methane production via methanization, through pilot projects currently being developed (Hycaunais, Méthycentre), in addition to commercial projects.

Heating, cooling and power generation from geothermal energy

In 2020, the development of geothermal energy was accompanied by several regulatory changes, particularly in France. The lifting of certain legal restrictions, a reform of the Mining Code undertaken by the French government, and geothermal energy's place in the Multi-Year Energy Program are factors that have strengthened Storengy's positioning on these markets.

Storengy is working on several heating and cooling network projects at city and regional level in the Netherlands and in France, in partnership with other Group entities. In particular, the aim of the Plaine Garonne Energie Project, with ENGIE Solutions, is to design, build and operate a new heating network in the center of Bordeaux, with a 30-year public service delegation. This project enables 19,000 tons of CO2 emissions to be avoided each year.

Meanwhile, Storengy has developed a geo-energy offer for eco-districts and sustainable buildings, completing its first project in France in 2019 (G-STORE): the construction of the geothermal heating and cooling network of the new Issy Cœur de Ville eco-district. Storengy is currently developing the geothermal solution for the future Campus of the ENGIE Group at La Garenne-Colombes.

Lastly, Storengy is working to develop new power generation capacity based on high-temperature geothermal energy. Storengy took over the development of an electricity production project in La Dominique (60 MW) in early 2020, and is working to develop several other projects worldwide. The health crisis has not had a major impact on Storengy's business. A significant amount of gas storage has been used to ensure the security of supply in France, Germany and the United Kingdom.

1.6.2

Rest of Europe

The Rest of Europe reporting segment comprises the activities of five BUs:

• the Benelux BU;
• the Nuclear BU;
• the United Kingdom BU;
• the North, South and Eastern Europe BU; and
• the Generation Europe BU, which encompasses the Group's thermal power generation activities in Europe.

The Benelux, United Kingdom and North, South and Eastern Europe operating segments have been grouped together within the Rest of Europe reporting segment. These three BUs have a similar business mix (energy services, and renewable energy marketing and generation). They operate in mature energy markets that are undergoing a process of transformation as part of the energy transition.

Key figures

In millions of euros	At Dec. 31, 2020	At Dec. 31, 2019	Total change (in %)
Revenues	15,655	-9.3%
EBITDA	1,750	1,757	-0.4%

17 267

1.6.2.1

Benelux

The Benelux BU includes the Group's activities in Belgium, the Netherlands and Luxembourg, in renewable power generation, electricity and natural gas sales, and energy installation and services. Renewable power generation covers onshore wind and photovoltaic solar in Benelux.

As mentioned in Section 1.1.3, on January 1, 2020, a new Nuclear BU dedicated to power generation from nuclear plants was created in Belgium.

1.6.2.1.1

Missions & Strategy

The Benelux BU is the historical leader in the supply of electricity and natural gas in the Belgian market, and the leader in the energy services segment in the Benelux countries. The BU aims to be a leader in global and sustainable solutions that make the difference for its customers in its areas of expertise. Its vision is to be at the heart of the carbon-neutral transition by making its countries the champions of this challenge.

In line with the Group's strategy, the Benelux BU is particularly well-positioned to provide carbon-neutral transition solutions to its various customers. The BU has a unique presence on the ground, with more than 15,000 employees working daily on Client Solutions. It also has prime positions in both renewable power generation and green mobility solutions. Lastly, it is working on previews of hydrogen projects (Benelux), Local Energy Communities (Belgium) and geothermal energy (the Netherlands).

1.6.2.1.2

Description of activities

In the market for residential customers and small businesses, the Benelux BU manages 2.49 million electricity supply contracts (~8.5 TWh) and 1.35 million natural gas contracts (~19.6 TWh) in Belgium, and approximately 379,000 electricity contracts (~1.5 TWh) and 356,000 natural gas contracts (~5.2 TWh) in the Netherlands.

In 2020, the BU continued to roll out its innovative offer, aiming to help residential customers manage their energy using tools and solutions to improve their energy efficiency (smart tools, heating-related offers) or through the roll-out of photovoltaic solutions. It also has a portfolio of business customers (industry and tertiary) in electricity (~14 TWh in Belgium, ~9.3 TWh in the Netherlands) and natural gas (~17 TWh in Belgium, ~10.2 TWh in the Netherlands), as well as energy services offers.

The BU develops, builds and operates renewable energy generation assets. It has onshore wind capacity of 430 MWe (+43 MWe in 2020) in Belgium and the Netherlands. As regards Offshore High Voltage Substations (OHVS), the BU - through ENGIE Fabricom - is also a market leader (28 substations constructed and 4 substations under construction or ordered). In photovoltaic power generation, the BU has continued to develop turnkey solutions for its business customers and facilities on the Group's sites in Benelux. This cumulative capacity reached 90.5 MWc at the end of 2020. It is the leader in Belgium and the challenger in the Netherlands in this segment.

Since July 2020, the BU has reorganized all of its installation and energy services activities in Belgium according to a customer-centric model. The activities, customers and employees of ENGIE Axima, ENGIE Cofely and ENGIE Fabricom have thus been divided into three new entities:

• Cities & Communities: for networks shared and managed by public authorities;
• Industries: for customers with industrial activities in their core business;
• Properties & Proximity: for customers owning or operating tertiary buildings and for customers with non-industrial core businesses.

Through ENGIE Solutions (in Belgium) and ENGIE Services NL (in the Netherlands), the Benelux BU operates in the tertiary, industrial, energy and transport sectors and provides public and private customers with various multi-technical services and solutions, such as:

• greater energy efficiency and limited environmental impact of buildings (energy efficiency audits and contracts, HVAC systems, multi-technical management and maintenance, etc.);
• production, operation and distribution of local and renewable energy sources (cogeneration plants, industrial utilities, etc.);
• integrated services (facility management, multi-site management, public-private partnerships, etc.);
• maintenance of networks (low & medium voltage power, low pressure gas, telecoms, water, public lighting, etc.);
• installation & industrial maintenance activities (3D printing, electricity & instrumentation, process solutions, automation, etc.);
• construction and maintenance activities to mobility infrastructures in the field of roads (lighting, traffic management, etc), waterways, airport, ports and rail & metro (stations, catenaries, signalization, passenger information systems, etc.).

Regulatory changes: in 2020, the federal government approved funding for the capacity remuneration mechanism (CRM). This step made it possible to submit the entire dossier to the European Commission (Directorate-General for Competition).

On 21 September 2020, the European Commission announced the opening of an in-depth state aid investigation into the Belgian Capabilities Mechanism's scheme. Electrabel has

1.6.2.2 1.6.2.2.1

United Kingdom Missions & Strategy

The United Kingdom (UK) BU has the defined mission to assist businesses and local authorities on the journey to carbon-neutrality. The BU combines its capabilities in energy and services to enable customers & stakeholders to embrace a greener, more efficient and increasingly digital world. It does this through reducing energy consumption and driving efficiency, greening supply and enabling progress through innovative technology, data & partnerships.

1.6.2.2.2 Description of activities

There are five divisions and one entity in the UK BU:

Energy infrastructure (power generation, renewables, trading and portfolio management): The BU has over 2 GW of generation assets including the UK's foremost pumped storage facility (First Hydro) in North Wales and an established renewables development business (on & offshore wind and solar).

Energy Supply (energy supply & power purchase): The BU provides supply of gas, electricity and power purchase agreements for both public and private (SME, Industrial and Corporate) organisations. 2020 has seen ENGIE secure a number of key contracts including a new contract to provide London's Heathrow Airport with 100% green biomethane from anaerobic digestion until March 2022.

Business Services (energy efficiency, facilities management, technical services): The BU focuses on supporting the operations of businesses throughout the UK serving sectors including corporate, manufacturing and industry, leisure, transport and utilities. In 2020, ENGIE and EDF Energy signed a major extension to their existing long-term partnership, which will see ENGIE continue to provide a range of facilities management and specialist technical support services to EDF's 11 power stations in the UK until the end of 2027. Places & Communities (design & refurbishment of homes, buildings and places, energy efficiency, facilities management, technical services). The UK BU is a strategic partner in

provided all the necessary elements to the Commission to present its analyses, as part of its investigation into a final decision. Then, the Belgian authorities will have to define the modalities allowing the first auction to take place in November 2021.

placemaking to create and regenerate communities as well as maintain and support them. Activities also include provision of energy efficiency measures and renewable technologies. Customers include local authorities, housing associations and register housing providers. In 2020 ENGIE secured a new 10-year contract with Rotherham Metropolitan Borough Council to provide repairs and maintenance services to 9,800 homes across the area.

Public Sector (energy efficiency, facilities management, technical services) : The BU is a key partner to central government departments, healthcare and educational institutions providing solutions to maintain and operate buildings with high levels of efficiency. In 2020, ENGIE was awarded a major 9-year contract for HM Courts and Tribunal Service, to provide facilities management services across Crown, Magistrate and Tribunal court buildings throughout England and Wales and Tribunal court buildings in Scotland. Futures (district energy networks, electric vehicles, smart buildings): Futures is the entity which manages the UK BU's advancement of technologies, new innovations and services technologies that will directly assist customers with their carbon-neutral transition. This includes established operations such as district energy networks and also rapidly evolving digitally driven offerings for buildings and green mobility. In 2020 ENGIE was awarded a major project to design, build and operate a new low-carbon energy scheme for the Nine Elms district in London.

The UK BU was impacted significantly by Covid-19, especially within Business Services and Energy Supply due to lower demand. Its activities within the Public Sector, particularly healthcare and for local authorities continued to maintain critical services to customers throughout the crisis. Performance of Energy Infrastructure remained strong. The diversity of sectors and customers within the UK BU portfolio means that envisage a solid recovery from the pandemic in 2021.

1.6.2.3 1.6.2.3.1

North, South and Eastern Europe (NECST)

Missions & Strategy

The North, South & Eastern Europe BU is currently present in Austria, the Czech Republic, Germany, Greece, Italy, Norway, Poland, Portugal, Romania, Slovakia, Spain and Switzerland. These countries present a strong market potential, particularly given the industry footprint, the awareness of cities towards sustainability, and the presence of numerous international firms committed to lower their carbon footprint. The BU's mission is thus to co-develop, with clients, reliable and zero carbon solutions for a new energy world.

The BU's business encompasses Client Solutions (BtoB, BtoT), Renewable (hydropower, wind, solar), gas Networks (distribution, storage) and energy Supply (BtoC, BtoB). The BU implements its strategy through a country-by-country organization, enabling it to accelerate its expansion to the benefit of its customers.

1.6.2.3.2

Description of activities

As a BU, it has been severely hit by the sanitary crisis, with different patterns across countries and business areas. If Western countries, client solutions and energy supply activities suffered significantly, but the BU has been able to protect employees and clients, maintain critical activities and mitigate part of the financial consequences. The BU recovery path is favored by its strong reactivity and its presence in resilient sectors (such as cities, data centers, pharmaceuticals…).

In Romania, the main activity is natural gas distribution via Distrigaz Sud Retele subsidiary, which operates a 21,104 km distribution network. The BU is engaged in natural gas storage through its subsidiary Depomures. ENGIE Romania supplies natural gas and electricity to 2 million customers (BtoC and BtoB) and energy services in particular to 0.8 million BtoC customers through ENGIE Servicii. ENGIE Romania operates two wind farms for an installed capacity of 98 MW and acquired, in December 2020, two operational ground-mounted PV farms of 8 MW.

Regulatory changes: retail and wholesale gas prices have been deregulated on July 1st, 2020. The retail electricity price for households has been deregulated on January 1st, 2021. The new amendments to the Energy Law approved in 2020 impose a tax on natural gas suppliers calculated as 90% on the difference between the acquisition cost of gas molecule and 68 lei/MWh. It also imposes to gas distributors the obligation to connect household consumers in 90 days from their request and increases the penalties for non-compliance. The new law also requires from gas distributors to extend gas networks in all localities in the area where they hold a concession contract. The costs related to customer connections and network extensions are to be included in the distribution tariffs, with an accelerated depreciation for investments related to household consumers.

In Italy, the BU is active in natural gas and electricity sales with ~820 consumers (BtoC and BtoB). It is one of the main players in public lighting, reaching 500,000 lighting points under management in July, and it also kept reinforcing its position in district heating networks in 2020. The BU also provides, with a market leader positioning, energy efficiency and decentralized solutions to residential clients, businesses and public authorities, participating also to many Consip public procurement tenders. ENGIE Italy operates 308 MW of wind and ground-mounted solar power assets, as well as biomass units. In September, Amazon chose ENGIE to provide a 10-year virtual PPA of 66 MW sourced by two PV parks under construction in Sicily.

In Germany, with its stakes in four municipal utilities, the BU encompasses activities in energy supply, heating networks, energy distribution and decentralized solutions. The BU isalso a significant player in energy contracting, and is active in the installation, operation and maintenance (O&M) of energy efficiency solutions and has a leading position in technical building services. It also operates 339 MW of renewable energy (wind, hydraulic pumping station) and battery storage sites.

In Spain, the BU operates 112 MW of solar and hydropower and 536 MW of wind. The BU also operates cogeneration units in Barcelona and the Netherlands and cooling and heating networks in Barcelona and Saragossa. ENGIE Spain is also active in installation and maintenance services and supply of energy efficiency solutions. It supplies natural gas and electricity to BtoB customers.

In Portugal, the BU is mainly involved in renewable energy power generation, via TrustWind (a 50-50 joint venture with Marubeni) operating 489 MW of wind power. In December 2020, ENGIE, together with Crédit Agricole Assurances and Mirova, closed the acquisition of a 1.7 GW hydroelectric portfolio. It has a strong positioning in decentralized PV for BtoB through ENGIE Hemera subsidiary. ENGIE Portugal also distributes heating and cooling to the city of Lisbon through its Climaespaço subsidiary and provides O&M services and energy efficiency solutions.

In Poland, the BU is active in installation and integrated services and has a BtoB customer portfolio in electricity. It is also active in renewables, with an installed capacity of 138 MW of wind and 8 MW of solar, as well as in heating networks.

In Slovakia, the BU is an important private heating network operator and also provides installation and O&M solutions.

In Austria and Switzerland, the BU is mainly active in energy efficiency, installation and maintenance. ENGIE Switzerland also handles the facility management of the Geneva and Zurich airports. In 2020, ENGIE Austria reinforced and greened its positioning in district heating by signing, in July, the construction and operation of a new energy supply system in Vienna, and acquiring in April Naturwärme-Montafon, which owns and operates a biomass cogeneration and an associated network.

In Norway, the BU and Susi Partners commissioned, in July, a 208 MW wind farm in Tonstad where the power is sold under a 25-year offtake agreement with aluminum producer Norsk Hydro.

In the Czech Republic, the BU provides installation and O&M solutions. and owns facilities for manufacturing switchboards. In Greece, ENGIE Hellas subsidiary is active in energy efficiency solutions and technical services for buildings and supplies electricity and gas to retail, industrial and commercial customers.

1.6.2.4 1.6.2.4.1

Generation Europe Missions & Strategy

The market of the Generation Europe BU is accelerating its transition to less carbon-intensive energy generation. The European energy market, oriented by European and domestic regulatory developments, is characterized by a strong expansion of renewable energy sources (RES) and plans to phase out coal-based generation. The industrial sector is following in the footsteps of the energy transition.

The emergence of intermittent RES has resulted in greater volatility in the production profile, and the phasing out of coal production, coupled with the phasing out of nuclear in Germany and Belgium, will create a need to match electricity supply and demand in the medium term. In this context, natural gas power plants now have a key role to play by offering the necessary flexibility in the energy markets, alongside emerging solutions such as batteries. Governments are introducing various remuneration mechanisms for power generators (reserve capacity mechanisms, strategic reserves, etc.). These mechanisms enable existing capacity to remain operational.

In this context, the Generation Europe BU contributes to security of supply and helps major industrial customers to face the challenges of the energy transition. The BU offers competitive energy services in the European markets and innovative solutions to its industrial customers.

To achieve this, it generates and markets energy by:

• operating and developing low CO2 emitting power generation activities;
• operating pumped-storage facilities and developing battery storage, either in combination with its own power plants or at customer sites;
• offering on-site power and heating generation solutions to major industrial customers to ensure their security of supply and reduce their CO2 emissions;
• developing projects for the production and use of green hydrogen.

1.6.2.4.2

Description of activities

The Generation Europe BU manages a portfolio of thermal generation assets with installed capacity of 18.2 GW in seven European countries (France, Belgium, the Netherlands, Italy,Portugal, Spain, and Greece), including its own power plants and assets decentralized with customers. Installed capacity broken down by technology is as follows: gas (16.0 GW), hydropower and pump storage (1.2 GW), biomass & other (0.8 GW).

In addition, BU Generation Europe offers services to large industrial customers around energy supply, operation and/or maintenance solutions. It relies on proximity to its customers and its strong references to help them face the challenges of the energy transition.

Regulatory changes: following the promulgation of the European Green Deal, the European Commission proposed the accelerated reduction of CO2 emissions between now and 2030. To this end, the development of renewable energy and the production of carbon-free fuels such as green hydrogen have been emphasized. Following this, various European countries have stepped up the phase-out of coal-based production and subsidized the production and development of green hydrogen networks. Some have set up compensation mechanisms for electricity capacity.

1.6.2.5

Nuclear

Since January 1, 2020, the Nuclear BU has been dedicated to the operational management of the seven nuclear reactors in Belgium and the rights held by EDF's two power plants in France.

1.6.2.5.1

Role & Strategy

The BU is structured around the following operational priorities:

• to ensure the optimum availability of nuclear power plants during their operational phase, thus contributing to the generation of carbon-free power; and
• to prepare for the shutdown and decommissioning of the first reactor in 2022 in both technical and organizational terms.

Nuclear safety is a key part of these priorities. The current nuclear safety system is being continuously strengthened, in close collaboration with the nuclear safety authorities.

1.6.2.5.2

Description of activities

The BU employs more than 2,200 people in Belgium, divided between Doel, Tihange, and Brussels. The BU operates, in compliance with the strictest nuclear safety standards, the Doel and the Tihange nuclear power plants. These plants represent a total installed capacity of 5,943 MWe (including 897 MWe in partnership with the EDF Group). The BU also has 1,118 MWe of rights in the Tricastin and Chooz B power plants in France.

The legal framework in place provides for the operation of nuclear power plants in Belgium until 2025. defining, amongst other things, the economic parameters governing the lifetime extension of Tihange 1, Doel 1 and Doel 2 until 2025 and the mechanism to calculate the nuclear contribution to be paid by ENGIE Electrabel.

The Group assumes obligations resulting from the April 11, 2003 Belgian Law relating to the management of spent nuclear fuel and the decommissioning of nuclear power plants. Following the three-year review of nuclear provisions carried out in 2019 under the authority of the Commission for Nuclear Provisions, the technical scenarios for downstream management of the nuclear fuel cycle were revised.

The discount rates of nuclear provisions were adjusted from 3.50% at the end of 2018 to 3.25% for provisions for the downstream nuclear fuel cycle, and from 3.50% to 2.50% for provisions for dismantling nuclear power plants, with inflation unchanged at 2%. Nuclear provisions stand at €13.5 billion in 2019. The next review is scheduled for 2022. Regulatory changes: in its government agreement dated September 30, 2020, specified by the general policy note of the Minister of Energy of November 4, 2020, the Belgian federal government confirms the end of nuclear power generation in 2025, already planned in law. However, this principle is accompanied by a mechanism to reassess this decision at the end of 2021, according to its impact on security of supply. If the monitoring mechanism shows that there is a problem with security of supply, the government agreement provides for the option of adjusting the legal schedule by up to 2 GW of capacity. In terms of nuclear provisions, the government recommends strengthening the legal framework and plans to set up a working group to carry out discussions to update this framework.

1.6.3

Latin America

The Latin America reporting segment includes the activities of two BUs: the Latin America BU (Argentina, Chile, Mexico, Colombia, and Peru) and the Brazil BU.

Key figures

In millions of euros	At Dec. 31, 2020 At Dec. 31, 2019	Total change (in %)
Revenues	4,774 5,341	-10.6%
EBITDA	2,014 2,221	-9.3%

1.6.3.1 1.6.3.1.1

Latin America (excluding Brazil)

Missions & Strategy

The Latin America BU aims to be the preferred partner providing sustainable solutions for a carbon-neutral world in the five countries where ENGIE is present (Argentina, Chile, Colombia, Mexico, and Peru).

The BU's targets, which are fully aligned with its role, are to:

• provide its customers with cleaner energy;
• help its customers to improve their consumption;
• extend the activities of its networks as key "regional anchors" to roll out its solutions;
• support growth in these countries by developing social infrastructure (universities, hospitals, airports, etc.).

1.6.3.1.2

Description of activities

1.6.3.1.2.1 Power Generation and Energy Infrastructure In Peru, ENGIE owns a 61.77% stake in ENGIE Energia Peru, a leading power generation company with an installed capacity of around 2,500 MW (50% are renewable and gas), making it the largest energy producer in the country. ENGIE Energia Peru's shares are traded on the Lima stock exchange.

In Chile, ENGIE owns a 59.99% stake in ENGIE Energia Chile (EECL). This company has installed capacity of around 2,065 MW and manages 2,300km of transmission lines. Its shares are traded on the Santiago stock exchange. In 2019 the company announced an aggressive decarbonization plan that includes a major investment in renewables. By 2025, EECL will operate near 1.500 MW of solar and wind plants and will have closed 800 MW of coal units.

In addition, EECL owns 50% of TEN (Transmisora Electrica del Norte), a company that operates 600 km of transmission lines that interconnects Chile´s north and center electricity grids.

In the gas business, ENGIE holds a 63% stake in GNL Mejillones, an LNG regasification terminal with a 5,5 Mm3/day capacity, and 100% in ENGIE Gas Chile and ENGIE Stream Solutions Chile, companies dedicated to the commercialization of natural gas through distribution pipelines and LNG by trucks.

In Mexico, ENGIE operates 8 local distribution companies providing natural gas to nearly 630,000 customers through an 12,500 km network, and 3 gas transmission companies operating around 1,300 km of pipelines. In August, the first phase of Cuxtal Gas Pipeline was completed, interconnecting our Mayakan system with the National Pipeline System. This constitutes the first of three phases that will enable the supply of cleaner energy to more than 700,000 homes and industries in the Yucatan Peninsula.

In power generation, by mid-2021, ENGIE Mexico will operate near 1,000 MW of renewable power plants.

In Argentina, ENGIE holds a 64.2% stake in Litoral Gas, a gas distribution company with more than 740,000 clients. It also holds an equity investment of 46.7% in Energy Consulting Services (ECS), a company that sells electricity and gas and provides energy advisory services. ENGIE also holds an interest in Gasoducto NorAndino, an approximately 1,000 kilometers pipeline between Argentina and Chile, wholly owned by ENGIE Energia Chile.

In Colombia, ENGIE opened a new development office in 2019.

1.6.3.1.2.2 Client Solutions

On December 2018, ENGIE Latin America, acquired CAM, a services company with activities in Chile, Colombia and Peru, and focused on providing solutions in the field of installation, operation and maintenance for the electricity and telecommunications sectors.

During 2019, an integration process took place between CAM and the current ENGIE services companies in Latin America, resulting in the creation of a regional services platform composed by 100% ENGIE client solutions subsidiaries in Chile, Colombia, Mexico and Peru. These companies provide a comprehensive portfolio of solutions mainly for extractive industries, cities and properties.

1.6.3.2 1.6.3.2.1

Brazil

Missions & Strategy

Brazil is a rapid growth economy with a population of approximately 200 million. Electricity demand has been steadily growing over the last decade. Electricity supply in the country still relies heavily on hydroelectric power (64% of total installed capacity). The energy mix is being diversified, with the development of thermal and non-conventional renewable energy (NCRE) sources.

Centralized power generation will continue to play an important role. The growing contribution of NCRE to the country's energy mix, added to new hydroelectric power projects, have increased the thermal generation requirement (the system has become more vulnerable due to unfavorable hydrological scenarios). Growing environmental issues and difficulties with obtaining licenses represent further challenges in the creation of new hydroelectric power plants.

In this context, gas will play a key role in the energy mix in the medium term, reinforced by recent discoveries in the pre-salt region (which have practically doubled potential domestic production) and the need to deal with increasingly volatile components.

The Brazil Bu's mission is to provide innovative and sustainable solutions in energy and services to companies and territories.

More specifically, the BU Brazil's strategic directions are focused on:

• centralized power generation and electricity transmission: be at the forefront of the transition towards an increasingly renewable world of energy, investing in wind, leveraging sites to invest in centralized solar PV while maintaining core competencies in hydropower;
• gas: be in the forefront of the re-structuring of the gas market in Brazil resulting in a more competitive market and benefit from new opportunities to come;
• energy services with assets: become a major player in energy services in Brazil, with a focus on large industrial and commercial sites;
• decentralized power generation: support development of "prosumers" (producers and consumers) in Brazil by setting up decentralized electricity production solutions for residential customers.

1.6.3.2.2

Description of activities

1.6.3.2.2.1 Centralized energy generation

ENGIE Brasil Participacoes Ltda (EBP), a subsidiary of the Group, owns power generation assets of 430 MW in operation and 361.2 MW under construction, representing around 6% of Brazil's total capacity. 83% of installed capacity comprises hydroelectric power plants, 11% thermoelectric plants and 6% complementary plants (biomass, wind, small hydroelectric power plants and solar).

EBP holds 68.71% of the share capital of ENGIE Brasil Energia (EBE), which is responsible for the centralized generation business. The company is listed on the Brazilian stock exchange. EBP has an equity investment of 40% in Energia Sustentavel do Brasil Participações S.A. ESBR wholly owns the Jirau hydroelectric power plant (3,750 MW).

1.6.3.2.2.2 Infrastructures in December 2017, ENGIE entered the transmission lines market in Brazil. EBE won an auction for a project involving around 1,000 km of transmission lines and five substations in the southern state of Paraná.

In January 2020, ENGIE won a call for tenders for the acquisition of a 30-year concession project that includes the building, operation and maintenance of a 1,800-km transmission line in the north of Brazil.

ENGIE has thus become the biggest power infrastructure player in Latin America, with close to 3,000km of lines rolling out in Brazil by 2022 and 2,200km already in operation in Chile.

In natural gas pipeline infrastructures, ENGIE has acquired 65% of TAG's assets. This acquisition took place through the consortium comprising ENGIE S.A, ENGIE Brasil Energia and the Caisse de dépôt et placement du Québec (CDPQ). TAG is one of the biggest natural gas transmission companies on the regulated market in Brazil, with a network of pipelines of approximately 4,500km, representing 47% of the country's total gas infrastructure. TAG has 11 gas compression facilities, 14 gas reception points (including two LNG terminals) and 90 gas distribution points.

ENGIE Brasil Energia executed an agreement for the purchase of 100% of the stock of Sterlite Novo Estado Energia S.A., the holder of a concession for the construction, operation and maintenance of 1,800 kilometers of transmission lines in the states of Pará and Tocantins. The BRL 410 million deal also includes construction of a new substation and upgrades to three existing substations in the two states.

1.6.3.2.2.3 Client Solutions

ENGIE Brasil is also active in the development and implementation of integrated solutions focused on reducing costs and improving infrastructure for businesses and cities. Its activities include energy efficiency, energy management, and management of energy supply contracts, as well as public lighting, HVAC systems, telecommunications, security, and urban mobility systems for cities. The Brazil BU is currently the leader in energy management, managing and monitoring more than 25,000 points. It is also one of Brazil's leading public lighting network managers, with 300,000 points.

1.6.3.2.2.4 Decentralized solar power generation

ENGIE is expanding its decentralized solar power generation business in Brazil, with more than 2,300 solar panels. In addition, ENGIE Solar PV Utility-Scale, an entity reporting to the Group's Corporate function, provides large-scale photovoltaic solutions, mainly involving development and EPC (Engineering, Procurement and Construction) services. The company operates photovoltaic power plants with installed capacity of 260 MW.

Regulatory changes: on the gas market, a new law, which is in the process of being approved, aims to open up the market and create opportunities in areas such as gas distribution, gas storage and biogas. In the electricity sector, after a public consultation in 2018, numerous measures have been implemented or are planned with the aim of modernizing the sector in the light of the energy transition. These measures include a gradual reduction in subsidies, the extension of concessions, the gradual widening of eligibility criteria on the free market, a review of the electricity market (electricity prices on an hourly basis, remuneration of capacity, etc.), the taking into account of hydrological risk, and smart meters for individual customers.

1.6.4

United States and Canada

The United States & Canada reporting segment corresponds to the North America BU. The BU entities provide renewable power generation, district energy services, retail electricity sales, natural gas, the United States, Canada and Puerto Rico.

Key figures

In millions of euros	At Dec. 31, 2020 At Dec. 31, 2019	Total change (in %)
Revenues	4,229 4,457	-5.1%
EBITDA	245 269	-8.8%

1.6.4.1

Missions & Strategy

The United States registered significant growth in total renewable energy capacity of approximately 9.3 GW in wind and 6.9 GW in solar in 2019. More and more of these assets are connected to end-customers. Thus, direct purchase contracts for green energy with industrial customers or communities represented nearly 20GW in the United States in 2019. Furthermore, the US energy efficiency market generates turnover of around $7 billion. After Europe, it is one of the largest and most mature markets. The municipalities, universities, schools and hospitals sectors (MUSH) represent around 70% of total North America revenues.

Campuses, hospitals and universities require integrated, complete solutions to manage their facilities and improve their efficiency. Lastly, distributed production and storage have accelerated, with community projects being increasingly encouraged in the States (particularly in Massachusetts and California).

The aim of the North America BU is to help to build a sustainable future and to provide local authorities and businesses with clean, affordable, and resilient energy and supporting infrastructure.

The BU is thus developing in two key growth areas: (i) renewable energy generation (wind, centralized and decentralized solar and storage), to meet growing demand for clean energy from customers, and (ii) client solutions to help customers modernize their facilities, reduce their costs, preserve their resources and optimize the environment for their users in terms of comfort, security and productivity. It aims to encourage customers achieve their transition to carbon-neutral by adopting a partnership approach.

The North America BU has clear opportunities and ambitions for the future:

• having built nearly 2 GW of new renewable capacity in 2020, to accelerate the development of renewable energy;
• to be recognized as a leader in integrated carbon-neutral solutions by: combining the technical capabilities and internal technologies of the BU in order to offer sophisticated and financed solutions to its customers;
• to industrialize the development of solutions based on decentralized infrastructure (starting with district heating and cooling, distributed solar, and batteries).

1.6.4.2

Description of activities

The BU's three main business segments are:

• The generation of mostly renewable power: the BU builds and operates wind, solar and storage projects across North America, and built nearly 2 GW of new renewable energy capacity in 2020. This energy is intended for end-customers in the form of long-term purchase contracts. Customers such as Microsoft are thus relying on a hybrid wind and solar power solution that allows them to achieve their carbon neutrality goals and access clean energy 24 hours a day, seven days a week. The BU is also active in decentralized solar energy.
• Services:
- - to cities and communities with tailor-made solutions to help them use resources more efficiently to meet the essential expectations of stakeholders, while paying greater attention to their essential role;
- - to businesses and industries with solutions designed to meet changing regulatory requirements while taking into account competitive market opportunities and shareholder concerns;
- - buildings with solutions that meet the essential priorities of this customer segment - programming, price certainty, reliability and safety - while taking into account all fiscal and social factors, down to the local level.
• The supply of electricity and gas to more than 40,000 industrial, business and community customers in 14 states: Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Texas, and Washington D.C.

The BU's successes in 2020 were:

• an agreement with Meridiam in January 2020 for the concession of the University of Iowa concerning energy efficiency, water management and sustainability in general. ENGIE will be responsible for the operation, maintenance, optimization, and improvement of public service systems on the university campus. The project includes the provision of heating, cooling and power to the campus through a dedicated network, and the management of high-quality sanitary water and rainwater services;
• an agreement with Hannon Armstrong for the sale of a 49% share of a portfolio of 2.3 GW of renewable energy. ENGIE will retain control of part of the portfolio and continue to manage the assets. This portfolio represents 2.3 GW, which includes 1.8 GW of onshore wind projects and 0.5 GW of solar photovoltaic (PV) projects;
• the commissioning of 0.4 GW solar power and 1.4 GW wind power in 2020 in the United States.

Regulatory changes: Since Joe Biden's election in November 2020, the new administration has shown a greater commitment to energy transition and the fight against climate change.

1.6.5

Middle East, Asia & Africa

The Middle East, Africa & Asia reporting segment comprises the activities of four BUs: the Asia Pacific BU (Australia, New Zealand, Thailand, Singapore, Indonesia, and Laos), the China BU, the Africa BU, and the Middle East, South and CentralAsia, and Turkey BU (including India and Pakistan). In all of these regions, the Group is active in electricity generation and sales, gas distribution and sales, energy services, and seawater desalination in the Arabian Peninsula.

Key figures

In millions of euros	At Dec. 31, 2020	At Dec. 31, 2019	Total change (in %)
Revenues	2,382	2,937	-18.9%
EBITDA	600	725	-17.2%

1.6.5.1 1.6.5.1.1

Asia-Pacific Missions & Strategy

The Asia-Pacific BU operates in a vast, diverse fast-growing region. A need for basic energy infrastructure in some countries, growing digitalization and urbanisation and growing or nascent environmental concerns offer immediate and future opportunities. In addition, the region has many Fortune 500 and RE100 companies physically present which provides the opportunity to assist global customers in achieving their Sustainable Development Goals.

During 2020, the Asia-Pacific BU has further narrowed its geographic focus and through the cessation of business development activities in North Asia (Japan and South Korea).The Asia-Pacific BU is focusing its activities in five countries with the continuation of developing our stronghold markets of Australia and Singapore, as well growing our presence in South East Asia (Singapore, Philippines, Malaysia, Indonesia) where we look to turn existing footholds into strongholds.

Following the completion of our asset rotation strategy (8,000 MW thermal), while the portfolio has a presence in all Business Lines, the Asia-Pacific growth strategy is primarily orientated around Renewables and Client Solutions.

1.6.5.1.2

Description of activities

Australia: ENGIE operates over 1,100 MW (gross) of renewable (wind turbine) and gas-fired plants, 750,000 customer accounts in B2C Supply business, a B2B Client Solutions (multi-technical services) business and a growing B2T business servicing customers such as Springfield City Group and Monash University. Australia has a >3,000 MW pipeline of solar and wind projects under development and is actively engaged with customers seeking Corporate PPAs to help meet their sustainability goals. In October 2020, ENGIE launched an innovative equity finance platform in partnership with Infrastructure Capital Group (ICG) to accelerate the development of renewable energy assets.

South East Asia (Singapore, Philippines, Malaysia, Thailand, Indonesia):

• Client Solutions: Well established position for future growth in Client Solutions through multiple successful acquisitions and organic growth, with strong capabilities (technical maintenance, energy efficiency, district cooling systems, onsite generation) to provide low carbon offers as a service. ENGIE secured a partnership with Sunway (leading local real estate developer) to deploy DCS over

their portfolio of assets in Malaysia (complementary to our partnership with Filinvest in the Philippines).

• Renewables: Across the five countries in South East Asia has renewable pipeline of > 4,000 MW of solar, wind, hydro, storage projects under development. In Indonesia, ENGIE is a key player in geothermal through our investment in Supreme Energy with 85 MW in operation and 90 MW under construction (COD 2021). During 2020, ENGIE was awarded 135 MW project in Malaysia as part of large scale solar 3 (LSS3) auction which is now under construction (COD 2021).
• Thermal: In Singapore, ENGIE holds a 30% stake in Senoko Energy, operating a portfolio of power generation assets with a combined capacity of 2,807 MW. Senoko is present in the B2B electricity retail market and is also the B2C retail market which has been fully open since 1 May 2019.
• Networks: In December 2020, ENGIE divested its 40% stake in PTTNGD, a distributor of natural gas to industrial customers in Thailand.

Throughout 2020, Covid-19 became a global health crisis and while the duration of the pandemic remains unclear, many countries have announced significant stimulus packages which should see countries within the Asia-Pacific perimeter, accelerate out of the temporary dip in growth caused by the pandemic.

Myanmar: Mandalay Yoma Energy, a joint venture between GDF International SAS (GDFI), a member of the ENGIE Group ("ENGIE") and Sol Partners Pte. Ltd. ("Sol Partners") is focused on providing access to energy through the deployment of micro-grids.

Regulatory changes: a number of countries in the Asia-Pacific region are taking further steps to increase the penetration of renewable generation and energy efficiency measure. Key evolutions in 2020 include:

• In Australia, the Federal Government released the Technology Investment Roadmap, its flagship decarbonization policy with a $18 billion AUD investment commitment over ten years for five priority areas: hydrogen, carbon capture and storage (CCS), soil carbon, storage options and 'low-carbon' steel and aluminium production.
• In the Philippines, the Department of Energy confirmed 2020 its moratorium for greenfield coal power plants to further enhance the prospect of the renewable energy landscape and is imposing a 1% YoY increase in favour for renewables and set of renewable energy tax incentives.

• Review of the Malaysia Electricity Supply Industry 2.0 (MESI 2.0) ongoing, including the liberalization of the electricity retail market, trial run for the third-party access of TNB's transmission assets, as well as independent sourcing of coal and gas from third parties for independent power producers (IPPs) are all positive evolutions.

• In Indonesia: with growing discontent towards fossil fuels, President Jokowi is adamant for the country to reach their Paris Agreement renewable target of 23% in 2025 (from 11% today). Key regulatory changes are underway, setting the right conditions for transparent procurement and pave the way for bankable and profitable renewable investments.

1.6.5.2 1.6.5.2.1

China

Missions & Strategy

After the Covid-19 crisis at the start of the year, China pursued its economic expansion. On September 22, 2020, it announced a carbon neutrality target of 2060 to the United Nations General Assembly, with a peak in emissions expected before 2030.

In this context, the China BU is focusing its development activities on two main sectors: renewable energy and decentralized energy infrastructure for local authorities and industry.

The China BU joins the APAC BU in 2021.

1.6.5.2.2

Description of activities

The China BU is pursuing the strategy defined by the Group on the Chinese market and developing clean energy offers based on renewable sources (solar PV, wind power, and energy storage) and decentralized energy solutions (heating and cooling networks, electric vehicles charging, and energy efficiency services).

The China BU also continues to support the Group by optimizing the supply chain for equipment and services from China. When the Covid-19 health crisis became generalized, the BU also provided very substantial support relating to personal protective equipment (masks in particular). Regulatory changes: China continues to modernize towards a more deregulated electricity market without subsidies for renewable energy.

1.6.5.3 1.6.5.3.1

Africa

Missions & Strategy

There is a growing need for energy in Africa, to sustain the economic growth that is forecast for the coming years. In response to the challenge of access to energy in Africa, ENGIE has the unique capability of implementing integrated solutions throughout the energy value chain, from infrastructure and centralized power generation to off-grid solutions (domestic solar systems, micro-grids) and energy services.

The Africa BU was in charge of developing ENGIE activities in African countries which offer a promising balance between risks and rewards for the core activities of ENGIE. In line with the Group decision to streamline its operations, the regional organizations of Africa and MESCAT Business Units have merged in early 2021.

1.6.5.3.2

Description of activities

In the centralized power generation business, ENGIE has a strong presence in Egypt, Morocco, Senegal and South Africa with 3.15 GW of power generation capacity in operation or construction and development projects in Djibouti and Tunisia. During the year 2020, major milestones have been achieved :

• In Djibouti, Engie signed an agreement with the Djiboutian Ministry of Energy for the development of the 30 MW Grand Bara PV power plant.
• In Egypt, ENGIE and its consortium partners are developing the 500 MW Red Sea wind farm.

• In Senegal, ENGIE finalized the construction of two PV solar power plants totaling 60 MW under the IFC Scaling Solar - program.
• In Tunisia, the consortium led by ENGIE and NAREVA has been declared preferred bidder for the construction of the 120 MW Gafsa PV power plant.

Alongside its grid-connected centralized energy generation activities, ENGIE also has a presence on the off-grid solutions market. In 2020, ENGIE realized the integration of Fenix International, ENGIE Mobisol and ENGIE PowerCorner and created a new entity, ENGIE Energy Access. With over 1,700 employees, operations in nine countries across Africa (Benin, Côte d'Ivoire, Kenya, Mozambique, Nigeria, Rwanda, Tanzania, Uganda and Zambia), over 1 million customers and more than 5 million lives impacted so far, ENGIE Energy Access is Africa's leading off-grid company.

ENGIE's energy services activities are spread throughout the continent but with a particularly strong presence in Morocco with ENGIE Services Maroc. In South Africa, ENGIE operates through ENGIE Thermaire & Ampair. ENGIE Services Côte d'Ivoire is the services company for West Africa.

The Covid-19 pandemic has a limited impact on the centralized generation business despite negative impact of FX corrections. ENGIE Energy Access registered a decrease of sales in its main markets. Lockdowns and associated reduced economic activities have strongly impacted the installation sector.

1.6.5.4 1.6.5.4.1

Middle East, South and Central Asia, and Turkey (MESCAT)

Missions & Strategy

The Middle East, South and Central Asia, and Turkey region includes a population of over two billion in more than 30 countries. The target countries are showing signs of resilience despite the impact of Covid-19 and the drop in the price of oil, particularly in some Gulf countries which have substantial reserves through their sovereign wealth funds. While their economic conditions vary, most countries have renewable energy projects under development as well as high levels of urbanization.

Due to its long-term contracts, the results of the BU were minimally affected by the Covid-19 crisis, but the crisis involved the extensive mobilization of all the teams to continue to ensure the production of energy and desalinated water at the numerous plants.

The BU's strategy is based on the following two key pillars: (i) preserving and increasing the value of the portfolio of existing assets, and (ii) generating growth through new business lines and services in the countries of the MESCAT BU via acquisitions and increasing equity investments.

The MESCAT BU, a key contributor to the Group's results, continues to develop strong positions in low-carbon centralized energy generation (natural and renewables). It is accelerating in new activities such as the independent production of desalinated water and cooling networks, which are becoming a major contributor to the results of the BU.

1.6.5.4.2

Description of activities

1.6.5.4.2.1 Thermal generation/desalination

In the Gulf Cooperation Council (GCC) Countries, the ENGIE acts as an asset developer, owner and operator. The BU sells the electricity and water it produces under long-term public power and water contracts. ENGIE is the leading private power and water developer and/or operator in the region. The total power generation capacity of 31 GW serves more than 40 million people. The desalination facilities in operation or under construction produce nearly 6 million m3 of water/ day. In 2020, ENGIE won the Yanbu contract in Saudi Arabia with capacity of 100 MIGD.

In Pakistan, ENGIE owns 100% of two combined cycle gas turbine (CCGT) plants with total capacity of 932 MW. The electricity produced is sold under long-term PPAs to the distribution companies.

In Turkey, ENGIE holds a majority stake in the Baymina CCGT plant, with total production capacity of 763 MW. The plant has now been mothballed due to a drop in demand and low prices in the electricity market.

1.6.5.4.2.2 Renewable energy

In India, ENGIE holds a portfolio of nearly 1.1 GW in renewable energy capacity (280 MW of wind power and 1,100 MWc of solar power), installed or under construction.

1.6.5.4.2.3 Client Solutions

In 2019, ENGIE acquired all of the Cofely-Besix joint venture, which became ENGIE Solutions Middle-East. In the GCC countries, ENGIE Solutions is a major facility manager and provides its customers with energy performance services and a range of services in the areas of facility management, decentralized energy generation, and public lighting. ENGIE Solutions has established itself in Saudi Arabia and is experiencing satisfactory development.

ENGIE holds a 40% stake in Tabreed (National Central Cooling Company PJSC), the leader in urban cooling networks in the GCC. The company distributes the equivalent of one million tons of cooling produced by its 83 urban cooling plants located in the Gulf countries, and is expanding in India. Tabreed has had several commercial successes with the acquisition of the cooling networks of Downtown Dubai and the cooling plant of Masdar (water).

ENGIE provides operating and maintenance (O&M) services to industrial companies, in both power generation and distribution, in Turkey and in the GCC countries.

In the GCC countries (particularly Saudi Arabia), ENGIE has begun to develop corporate PPAs with industrial customers.

1.6.5.4.2.4 Energy supply

In India, ENGIE owns Simpa Networks, which markets individual solar electrification solutions in disadvantaged rural areas in northern India. The Covid-19 health crisis significantly affected this activity.

In Turkey, ENGIE owns 90% of IZGAZ, the country's fifth-largest natural gas distributor, which distributed and marketed natural gas to 360,000 residential, commercial and industrial customers in the Kocaeli region in 2019.

1.6.6

Others

The "Other" reporting segment encompasses the following activities:

• the Global Energy Management (GEM) BU manages and optimizes the Group's portfolios of physical and contractual assets (excluding gas transmission, distribution and storage infrastructures), particularly in the European market, on behalf of the BUs that hold power generation assets and of customer portfolios. It is also responsible for selling energy to national and pan-European key industrial accounts and for supplying energy to the BUs which sell it on to their customers. Lastly, it leverages its expertise in the energy-related financial markets to provide solutions to third parties.

• the Tractebel BU (engineering companies specializing in energy, hydropower and infrastructure);
• the GTT BU (specializing in the design of cryogenic membrane confinement systems for maritime transport and onshore and offshore storage of LNG);
• and the contribution of the Hydrogen BU, the Businesses and Local Authorities activities of ENGIE SA, and the holding company and Corporate activities, which include the entities responsible for the Group's centralized financing and the contribution of the associate company SUEZ until its disposal in October 2020.

Key figures

In millions of euros	At Dec. 31, 2020	At Dec. 31, 2019	Total change (in %)
Revenues	8,417	8,633	-2.5%
EBITDA	(14)	182	-107.5%

1.6.6.1 1.6.6.1.1

Global Energy Management (GEM)

Missions & Strategy

With a staff of around 1,400, offices in 16 countries and eight main trading platforms covering Europe, the United States and the Asia Pacific region, the Global Energy Management (GEM) BU is in charge of two main purposes. On one hand, GEM BU optimizes the value of Group's power, gas and renewable assets, manages portfolio risks on behalf of the Group through markets and contributes to the competitiveness of the Group's Business Units. On the other hand, GEM develops commercial activities with more than 800 external clients in more than 50 countries.

In line with ENGIE's strategy, GEM pursues its plan to expand its green energy management portfolio, which includes renewable power, low carbon and green gases, sustainable biomass, guarantee of origin and green certificate. In this respect, GEM develops the management of long-term renewable power purchase agreements "Green PPAs". GEM already concluded such transactions amounting to 1 GW over 10 years.

This business development is strengthened by cultural change initiatives and specific training programs, and by taking into account social, environmental and carbon emissions criteria in decision-making process.

1.6.6.1.2

Description of activities

GEM provides wholesale energy market access and risk management services, including market risk hedging products. The BU develops energy supply activities, delivering gas, electricity and associated risk management services to major industrial clients in Europe and to ENGIE's sales entities.

With regard to power asset management, GEM provides dispatching and optimization activities for ENGIE's power generation assets as well as for third party assets. Concerning gas asset management, GEM manages gas upstream supply, transportation and storage capacity portfolio, including valorizing and optimizing asset flexibility through the markets.

GEM also provides energy transition services, managing and optimizing intermittent renewable assets, offering demand side management solutions and battery storage services. The BU is developing activities in the purchase and supply of renewable energy and low-carbon gases.

Finally, GEM delivers LNG and biomass supply solutions worldwide.

In 2020, the unprecedented crisis triggered by the Covid-19 hit the commercial and energy supply activities of GEM BU. The BU faced 46 of credit incidents, but its market activities were able to leverage high volatility in the context of exceptional market conditions.

Regulatory changes: on 27 May 2020 the EU announced a major Recovery Plan intending to repair the economic and social damage brought by the coronavirus pandemic. A third of the total 1,8 b€ plan will be earmarked to the energy transition in order to incentive innovation, development of renewable energy and decarbonization technologies. Power and gas markets will benefit from this plan, including the transport sector. The upcoming "Decarbonization Package", to be set by the European Commissions by 2022 for the decarbonization of the gas sector, will be at the crossroads of the Green Deal (issued in 2019) and the Recovery Plan.

1.6.6.2 1.6.6.2.1

Tractebel

Missions & Strategy

For more than 150 years, Tractebel has been known as an engineering company of prime standing in the areas of energy, water and urban infrastructure worldwide. Tractebel is now focused on designing, engineering and building integrated solutions to support its customers all over the world as they make the carbon-neutral transition. The BU aims to be the leader in engineering for a carbon-neutral future.

Tractebel offers an integrated range of engineering, project management and advisory services throughout the entire life cycle of its customers' projects.

1.6.6.2.2

Description of activities

In the energy sector, Tractebel continues to employ its multidisciplinary technical skills in the service of the Group's internal and external customers to design, plan, develop and oversee the construction of electricity and gas projects or large-scale transmission and distribution networks. Tractebel works on the very high-performance, hybrid solutions that itscustomers demand. The thermal energy teams support ENGIE in the development of new power plants in Belgium under the CRM mechanism. Tractebel is also involved in several wind projects in Africa and Asia (Gulf of Suez in Egypt, Taiba in Senegal, and Hong Phong 4 in Vietnam), from design to commissioning.

In support of the energy transition, Tractebel offers an offshore hydrogen production platform and provides engineering, procurement and construction management (EPCM) services for the Rhyno project in South Africa. Tractebel is also in charge of design, project management and construction management for a project to strengthen one of the North-South corridors of the electricity grid in Germany.

With 60 years of experience, Tractebel has developed cutting-edge knowledge in the field of nuclear power. Operators, constructors and investors have confidence in its services, which include designing new facilities, supporting safe, profitable operations, preparing and overseeing decommissioning activities and developing new reactors. Tractebel continues to roll out its services to operators such as EDF in France and ESKOM in South Africa.

Tractebel is also taking part in the development of power reactor construction projects at the Hinkley Point and Sizewell sites in the UK and in large-scale defense infrastructure projects in France. In the field of small modular nuclear reactors, Tractebel is carrying out a study for a Finnish industrial company interested in decarbonizing its district heating energy source.

Benefiting from expertise and an international reputation, Tractebel has planned, designed and supervised the construction of more than 1,000 hydro infrastructures on all continents. These developments include dams and hydroelectric projects of all sizes as well as irrigation systems, water supply and sanitation projects, water transfer works, and marine and waterway infrastructure projects.

The services cover the entire life cycle of projects, from planning to the operation of structures, including the design, construction and commissioning phases. The solutions offered are at the cutting edge of modern engineering and also include consulting services to effectively support the development of projects.

Tractebel is conducting the execution studies for the Snowy 2.0 pumped-storage hydroelectric power station (PSHPS) in Australia and is helping to develop a digital decision support tool for the management of infrastructure on inland waterways in Walloon (Belgium).

Lastly, Tractebel is helping to achieve a sustainable living environment by incorporating its know-how in the areas of energy, water, infrastructure, construction and mobility. More than 1,000 urban planners, engineers and environmental specialists at Tractebel design solutions to make urban environments more livable, greener and more sustainable. Using building information modeling (BIM) and complex modeling and simulation tools, Tractebel is taking part in various low-carbon transport infrastructure projects in Antwerp, Ghent, Luxembourg, Frankfurt, Delhi, Santiago and Greater Paris. The teams have won low-consumption building design projects in Belgium, Italy, and France and act as experts for Isocarp (the International Society of City and Regional Planners), and for ENGIE, in order, for example, to outline the global urban landscape in 2030.https://www.engie.com/en/nine-types-cities-imagine-world-tomorrow

1.6.6.3 1.6.6.3.1

Gaztransport & Technigaz (GTT)

Missions & Strategy

The company specializes in systems of cryogenic, or very low temperature, membrane containment used for sea transport and onshore and offshore storage of LNG and other liquefied gases.

The GTT BU's missions are to (i) provide the various players in the LNG chain (shipyards, shipping companies, gas companies) with containment systems designed by the Company, which make it possible to transport and store liquefied gas in bulk, reliably and safely; (ii) provide engineering, advisory, training, maintenance assistance and technical study services at all stages of the liquefied gas chain, and (iii) promote new LNG outlets, by contributing in particular to the development of LNG as a fuel for the propulsion of ships (LNG as fuel), and of LNG transportation by sea or inland waterways in small or medium-sized ships.

1.6.6.3.2

Description of activities

Over the past 50 years, GTT has developed tried and tested technologies for sea transportation and onshore and offshore storage of LNG and other liquefied gases.

The confinement systems designed by GTT are based on its Mark and NO membrane technologies for LNG tankers and other floating units and GST for LNG onshore storage tanks. These systems make it possible to transport and store liquefied gas in bulk, safely and reliably.

GTT also provides solutions for the use of LNG as a fuel for shipping as well as a broad range of services in engineering, assistance in emergency situations, consulting, training, maintenance assistance and the performance of technical studies. In 2019, the trend in orders for LNG tankers, ethane tankers, and GBS terminals (gravity based structures) continued, with new achievements in the field of LNG fuel. Traded in Compartment A of the Euronext Paris market, GTT is 40.41% held by ENGIE. It is currently under strategic review.

1.6.6.4 1.6.6.4.1

ENGIE SA Entreprises & Collectivités activities (Businesses and local communities)

Missions & Strategy

Entreprises & Collectivités (E&C) aims to be the preferred energy supplier for businesses, local authorities and condominiums (BtoB segment) in France. E&C and its 700 employees support around 50,000 customers and supply gas and electricity (approximately 36 TWh of natural gas and 30 TWh of electricity sold in 2020) for around 400,000 delivery points.

E&C also supports its customers as they make their zero-carbon transition, responding to their need to be competitive and anticipating changes in their expectations. It is thus developing the supply of carbon-free energy, local generation and self-consumption of solar power, energy efficiency and the production of energy saving certificates (EEC) as well as green mobility.

1.6.6.4.2

Description of activities

E&C has developed new partnerships, through the acquisition of Certinergy and CN Solutions in January 2019, leaders in EEC production on the BtoB market, and the creation of Réservoir Sun, a joint venture with Green Yellow (Casino group) dedicated to self-consumption, in October 2018. It has also focused on customer satisfaction, the experience of its employees, risk management, commercial synergies within the Group, and the sale of biomethane (it is the leading buyer and seller in France with 50% of market, representing around 1 TWh in 2020).

In 2020, the health crisis and the temperatures, some of the highest recorded in the last century, strongly impacted the profitability of E&C. These two events combined resulted in the risks sustained. They prompted measures to make the energy supply business resilient in the long term, while continuing to diversify its activities, levers for accelerating the energy transition of BtoB customers in France.

1.6.6.5 1.6.6.5.1

Hydrogen BU Missions & Strategy

ENGIE's Hydrogen Business Unit (H2 BU) was launched in 2018 in order to devise carbon-free energy solutions based on renewable hydrogen, produced from the electrolysis of renewable electricity, to make a 100% renewable world a reality for territories.

Renewable hydrogen is the missing link in the energy transition. It frees up the potential for developing renewable energy by storing energy generated intermittently, and enables the Group to support its customers as they make their carbon-neutral transition in industrial processes that are hard to decarbonize (fertilizer, mining, refineries, etc.).

Lastly, the development of technologies such as fuel cells makes it possible to envisage the development of new uses and markets where hydrogen from renewable sources would be the "green fuel" of the future (heavy mobility: trucks, trains, ships, etc.), a generator of electricity, heating and cooling.

The BU has adopted a comprehensive and phased approach, developing large-scale projects with its industrial customers in the most favorable geographical areas. It designs models for replicable offers for targeted segments.

1.6.6.5.2

Description of activities

The BU is developing hydrogen production centers in stages, starting with the local development of industrial applications. Two projects are currently under construction: the Zero Emission Valley project near Lyon, in France, (involving the construction of 20 hydrogen fueling stations, in partnership with the Auvergne-Rhône-Alpes regional authorities and Michelin) and a project at the Mogalakwena mine in South Africa, in partnership with Anglo American. The aim of the latter project is to jointly develop the first hydrogen-fueled haul truck.

A test project on hydrogen trains was also successfully carried out in February 2020 in the Netherlands, as part of a partnership with Alstom and Gasunie, paving the way for the larger-scale roll-out of this solution in the region. Several large-scale projects are being developed with key players, including Yara in Australia, Enaex in Chile, and Gasunie in the Netherlands. Each of these projects could eventually result in the implementation of large-scale (GW level) projects.

At the same time, prospection is progressing in areas most favorable to the development of projects, such as Australia, Chile, and Europe (the Netherlands, France, Portugal and Germany).

ENGIE is also continuing to boost the hydrogen sector by supporting the development of future technologies. The signing of a partnership with Ariane Group in the field of renewable hydrogen liquefaction demonstrates this commitment to decarbonizing heavy long-distance transport. Regulatory changes: the combined actions of industrial companies, including ENGIE, with respect to the public authorities has led many countries to adopt national hydrogen roll-out plans. These plans provide for financial and regulatory support for the development of an industrial supply chain (South Korea, Germany, France, Chile, Australia and Japan). Government support has increased further in Europe in the form of the stimulus packages announced in 2020 (€9 billion in Germany, €7 billion in France, €1 billion in Portugal, etc.).

In 2020, the European Commission presented a strategy for the development of hydrogen with a view to climate neutrality in Europe. Ambitious regional funding mechanisms such as the European Innovation Fund, endowed with €10 billion, have come into force to support major decarbonization projects, including hydrogen. ENGIE has submitted several of its major projects to this assistance program. The BU has already obtained public funding for some projects in Europe and Australia. Advances in the area of traceability and guarantees of origin are also enabling recovery of hydrogen from renewable sources.

1.7

Real estate, plant and equipment

The Group owns or leases a significant amount of industrial real estate around the world. Many Group activities involve operating very large plants that the Group only partially owns. As of December 31, 2020, the Group operated electricity power plants, natural gas terminals and storage facilities in over 40 countries.

The tables below show the main facilities currently in operation, either wholly or partially owned by the Group. Leased properties are discussed in Notes 21 and 22 of Section 6.2 "Consolidated financial statementsˮ.

Power plants (capacity > 400 MW excluding units under construction)

Country South Africa Saudi Arabia

Site/plantTotal capacity (1) (in MW)

Avon Fadhili Marafiq Ju'aymah Shedgum Uthmaniyah Riyadh PP11

669

Type of plant Fuel-oil fired

2,744

1,507

1,729

484

Natural gas Natural gas Natural gas Natural gas Natural gas Natural gas

Australia BahrainPelican Point

Al Dur Al Ezzel Al Hidd

489 1,234 954 929

Natural gas Natural gas Natural gas Natural gas

Belgium

Amercœur

Coo

1,071

451

Natural gas Hydraulic pumping

Doel Drogenbos Herdersbrug

2,934

460

480

Nuclear Natural gas Natural gas

Tihange

3,008

NuclearBrazil

Cana Brava

Estreito Jaguara

Jirau Miranda

Ita Jorge Lacerda

1,442

3,750

1,068

404

413

439

Hydroelectric Hydroelectric Hydroelectric Hydroelectric Hydroelectric Hydroelectric

Machadinho

Salto Osòrio Salto Santiago

1,415

1,135

1,072

777

Coal Hydroelectric Hydroelectric Hydroelectric

Chile

Mejillones Tocopilla

1,212 Coal-fired and natural gas

676

Natural gas, coal- and fuel oil-firedUnited Arab EmiratesSpain

Shuweihat 1 Shuweihat 2

Taweelah Umm Al NarFujairah F2

Cartagena Castelnou

Mirfa

1,599

2,000

1,532

1,500

1,496

1,592

1,199 791

Natural gas Natural gas Natural gas Natural gas Natural gas Natural gas Natural gas Natural gas

France

CombiGolfe

435 490

Natural gas

CyCoFos

Natural gas and steelworks gas-fired plantDK6 (Dunkirk)

788

Natural gas and steelworks gas-fired plant

Génissiat

423 435

Hydroelectric

Montoir-de-Bretagne

Natural gas

1.7 Real estate, plant and equipment

Country	Site/plant	Total capacity (1) (in MW)
Greece	Viotia	570
Italy	Torre Valdaliga	1,134
Vado Ligure	782
Kuwait	AzZour North	1,522
Morocco	Safi	1,250
Oman	Al-Rusail	665
Barka 2	678
Barka 3	737
Sohar	585
Sohar 2	737
Pakistan	Uch 1	551
Netherlands	Eems	1,925
Flevo	852
Peru	Chilca	917
ILO Nodo	600	Fuel-oil fired
ILO 31	564	Fuel-oil fired
Puerto Rico	Ecoelectrica	530	Natural gas
Portugal	Bemposta I&II	438	Hydroelectric
Elecgas	839	Natural gas
Pego	576	Coal
Picote I&II	433	Hydroelectric
Turbogas	990	Natural gas
Qatar	Ras Laffan B	1,025	Natural gas
Ras Laffan C	2,730	Natural gas
United Kingdom	First Hydro	2,088	Hydraulic pumping
Singapore	Senoko	2,723	Natural gas and fuel oil
Turkey	Ankara Boo	763

Type of plant

Natural gas Natural gas Natural gas Natural gas

Coal Natural gas Natural gas Natural gas Natural gas Natural gas Natural gas Natural gas Natural gas Natural gas

Natural gas

(1) Capacity of assets in which ENGIE holds a stake, all of which are taken into account irrespective of the real ownership percentage

Underground natural gas storage (> 550 Mm3 of total useful storage volume (1))

Country	Location	Gross useful volume (Mm3) (1)
France	Gournay-sur-Aronde (Oise)	1,310
France	Germigny-sous-Coulombs (Seine-et-Marne)	820
France	Saint-Illiers-la-Ville (Yvelines)	680
France	Chémery (Loir-et-Cher)	3,600
France	Céré-la-Ronde (Indre-et-Loire)	570
France	Étrez (Ain)	690
France	Cerville (Meurthe-et-Moselle)	650
Germany	Uelsen	840

(1) Useful storage volume held by ENGIE, all of which is taken into account irrespective of the real ownership percentage

LNG terminals

Total regasification capacity
Country	Location	(Gm3(n) per annum) (1)
France	Montoir-de-Bretagne	10
France	Tonkin (Fos-sur-Mer)	3
France	Cavaou (Fos-sur-Mer)	8.25
Chile	Mejillones	2.0
Puerto Rico	Penuelas	2,7

(1) Capacity of assets held by ENGIE, all of which are taken into account irrespective of the real ownership percentage

Risk factors and control

2.1 Risk management process 43

2.3 Internal control procedures 61

2.1.1Enterprise risk management policy 43

2.2.4Financial risks 51

2.2.5Industrial risks 53

2.2.6Other operational risks 56

2.2.7Social and societal risks 58

Risk factors and control

The material, specific risks to which the Group is exposed, based on its own assessment, are described below. They are divided into seven categories of risks:

• political and regulatory risks;
• risks deriving from climate and environmental issues;
• economic and competitive risks;
• financial risks;
• industrial risks;
• other operational risks;
• social and societal risks.

The risks presented have been assessed and prioritized on the basis of "net risk", taking into account the means of management established.

The summary table below covers the most important risks in each category, classified in decreasing order of criticality (potential medium-term impact (six years) x probability of occurrence).

Country risk (changes in regulation, sovereign default, convertibility, expropriation, acts of war or terrorism, etc.)

Risks	Criticality	Section
Political and regulatory risks
***	2.2.1.1
**	2.2.1.2
**	2.2.1.3
**	2.2.1.4
**	2.2.1.5
*	2.2.1.6
*	2.2.1.7
**	2.2.2.1
**	2.2.2.2
**	2.2.3.1
**	2.2.3.2
**	2.2.3.3
***	2.2.4.1
***	2.2.4.2
**	2.2.4.3
**	2.2.4.4
**	2.2.4.5
**	2.2.4.6
**	2.2.5.1
**	2.2.5.2
**	2.2.5.3
*	2.2.5.4

Nuclear safety and security

Risk of change in the regulatory framework and of the amount of provisions set aside for the decommissioning of Belgian nuclear power plants and the management of spent fuel

Risk of a downward trend in the return on gas distribution, transmission, storage and regasification assets in France

Risk of a posteriori invalidation of the law authorizing the extension of the operating life of the Doel 1, Doel 2 and Tihange 1 nuclear units in Belgium

Risk of changes in regulations in Brazil in various business sectors (electricity production and sales, transportation of gas), including changes in taxes

Risk associated with renewal of hydraulic concessions in France

Risk of disagreement with the Australian regulator over the conditions for rehabilitating the Hazelwood coal mine

Risks deriving from climate and environmental issues

Position of gas in the French energy mix

Risk of climate change affecting energy demand and generation Economic and competitive risks

Increased competition risk in energy sales and services, with an effect on margins

Weakened economic climate if the Covid-19 crisis and related lockdown measures continue

Risk of decrease in revenues from power plants in the Gulf when long-term contracts expire

Financial risks Commodities market risk

Foreign exchange risk (translational, transactional, conversion)

Tax risk (instability of the standard (e.g. reform projects initiated by the OECD/EU), tax insecurity (e.g. transfer pricing, etc.)

Pension funding risk

Counterparty risk

Risk on the return on the amount of provisions invested by Synatom towards nuclear decommissioning and the management of spent fuel.

Industrial risks

Risk of industrial accident

Risk of increase in the cost of processing and storage of various categories of radioactive waste in accordance with the technical requirements of ONDRAF

Unavailability of one or more nuclear units for technical, security or nuclear safety reasons

2.1 Risk management process

Risks	Criticality	Section
Other operational risks
Cybersecurity	**	2.2.6.1
Risk relating to major projects	**	2.2.6.2
Acquisition and integration	**	2.2.6.3
Risk of malicious acts on tangible and intangible assets	*	2.2.6.4
Social and societal risks
Risks related to human resources (skills, employee engagement and risks of social	**	2.2.7.1
movements)
Ethical risks	**	2.2.7.2
Reputational risks	**	2.2.7.3
Security of people (terrorism, crime, social protest, etc.)	**	2.2.7.4
Risks associated with health and safety at work (including psychosocial risks/wellbeing	*	2.2.7.5
at work)
Level of criticality legend: High * / Medium / Weak *

Other, less significant risks or risks unknown to date could also affect the Group. If these risks were to materialize, they could have a negative impact on the Group's operations, financial position and earnings, image and outlook, and/or on the ENGIE share price.

2.1

Risk management process

2.1.1

Enterprise risk management policy

The Group has adopted an Enterprise Risk Management (ERM) policy, the principles of which are consistent with professional standards (including ISO 31000 and the Federation of European Risk Management Associations). The policy sets out ENGIE's ambition to "manage its risks in order to ensure its performance".

The Group's Enterprise Risk Management Policy applies to the Group's businesses and controlled entities, while observing the rules of governance that apply to each entity.

This policy promotes risk-taking at a reasonable level from a legal perspective, acceptable to generally held opinion and economically viable. It stipulates that all managers are risk managers. Generally, the Management Committees of the Group's entities are the main bodies that determine the actions to be taken to manage risks, except when a specific risk committee is created, such as for market risk.

To achieve this aim, the Group has appointed the Risk Management Director as Chief Risk Officer. His objective is to ensure the effectiveness of the risk management system. He coordinates the designated Chief Risk Officers of each of the BUs and Corporate Functions. These Chief Risk Officers assess

the BU's or Function's overall risk exposure and ensure that risk mitigation plans are implemented.

Risk analysis and coordination of action plans are performed in collaboration with all the Group's functional lines.

Each year, the Group's ERM process begins with a risk review by the Risk Committee within the Executive Committee. An ERM campaign is then launched across the Group, setting out guidelines for risk management throughout the year. It highlights priority risks, each of which is coordinated by an Executive Committee member and will be monitored specifically by one of the Board's standing committees (see Section 4.1.2.4 "Standing committees"). It results in a new Group risk review that is presented to the Executive Committee, then to the Audit Committee. After examining the review, the Audit Committee gives its opinion on the effectiveness of the risk management system to the Board of Directors.

Knowledge of risks resulting from the reporting of operating entities and functional departments is supplemented by interviews with directors, an analysis of publications by external analysts and a review of major events.

2.1.2

Crisis management

In order to deal with the occurrence of all types of crises and minimize their impacts, ENGIE has established an overall crisis management system. The Group is thus equipped with a major incidents warning and reporting system (Crisis App). Crisis analysis is carried out at the local level by a locally run crisis unit. Decision-making to manage a crisis is made at the relevant organizational level, according to the principle of subsidiarity.

Each BU has to carry out one exercise a year to test the resilience of the structure and to ensure continuous improvement. Similarly, all the Group's permanent crisis management staff is trained and takes part in regular exercises. An annual report is drawn up and shared with each BU.

The Covid-19 health crisis underlined the Group's ability to anticipate events as of January 2020. Rapid and efficient responses were provided to issues arising in particular from the international nature of the crisis. Throughout the pandemic, employees and sites were protected and the logistics chain secured.

However, the existence of this system does not eliminate the risk that the Group's activities and operations might be disrupted in crisis situations. Moreover, this system cannot guarantee the absence of the risk of impacts on third parties or on the environment.

Risk factors and control 2 2.1 Risk management process

2.1.3

Risk and insurance cover

ENGIE's Insurance Department is responsible for preparing, establishing and managing insurance programs in the areas of Group asset protection (against property damage and loss of earnings), personal protection, third-party claims (civil liability) and automobile insurance, and for prevention.

For each of these areas:

• the amounts insured depend on the financial risks resulting from potential claim scenarios and coverage conditions offered by the market (available capacities and tariff conditions);
• financing is optimized: low or moderate hazard risks are covered by self-insurance plans, through deductibles and retentions or through the use of the Group's reinsurancecompany whose commitments on a cumulative basis represent a maximum estimated loss of approximately 0.21% of the Group's 2020 revenues.

However, the Group could, in certain cases, be required to pay out sizable compensation not covered by the current insurance program or could incur very high costs that its insurance policies do not reimburse or reimburse inadequately. Although the Group has excellent insurance coverage, specifically with regard to civil liability and environmental risks, it could be liable beyond the maximum insured amount or for events not covered (primarily due to the common insurance exclusions).

2.1.3.1

Civil liability

A civil liability program for corporate officers and managers covers the representatives of ENGIE, its subsidiaries and Group representatives within its equity holdings.

A general civil liability program (including for environmental damage) has been taken out for all the entities for a totalamount of €800 million. This program predominantly provides first-euro coverage or coverage for amounts in excess of the underlying coverage taken out by some entities (usually up to USD 50 million).

2.1.3.2

Nuclear civil liability

As an operator of nuclear units in Doel and Tihange (Belgium), Electrabel's civil liability is governed by the Paris and Brussels Conventions, which aim to ensure that victims receive compensation and to encourage solidarity among signatory countries, and by the Belgian Law of July 22, 1985, (amended by the Laws of June 29, 2014 and December 7, 2016) and a Royal Decree dated December 10, 2020.

This liability falls exclusively on the operator of the facility where the nuclear accident occurs. In return for this strictly objective liability, the amount of the compensation is capped per accident and limited in time to a period of 10 years. This period was increased to 30 years by the amended Law of June 29, 2014, and reduced again to 10 years by the Law of

December

7,2016. The signatory countries to theconventions also created a mechanism that provides additional compensation beyond the maximum amount.

The nuclear civil liability insurance program taken out by Electrabel complies with the Belgian national law requiring the operator to provide financial guarantees or to take out civil liability insurance up to €1.2 billion. Insufficient capacity in the insurance markets, however, resulted in a shortfall of up to €891 million. This only affected the liability extended by the Law of June 29, 2014, and only for nuclear accidents that allegedly occurred between January 1, 2016, and December 24, 2016, when the Law of December 7, 2016 came into force.

2.1.3.3

Property damage

The Group's entities have property insurance covering the facilities that they own, lease or manage on behalf of third parties, with the exception of gas transmission and distribution network pipelines and heat networks in France. The main programs provide cover based either on replacement value or on contractual limits per loss event. In the latter case, the limits are set on the basis of major

scenarios estimated in accordance with insurance market rules and available offers (cost and capacity).

Insurance covering business interruption and additional operating costs is taken out based on each risk analysis and in consideration of existing assistance plans.

Construction projects are covered by "Erection All Risks" programs taken out by the owner or operator, project manager or prime contractor.

2.1.3.4

Employee protection programs

The operating entities develop programs covering employees against the risk of accidents and for medical expenses, in accordance with legislation in effect and pursuant to company agreements.

2.2

Risk factors

2.2.1

Political and regulatory risks

The Group is sensitive to the structural and economic risk factors that affect the energy sector. These risks are all analyzed and assessed as part of strategic planning processes that allow the Group to anticipate certain changes in the external environment and prepare for them. The Group's research and innovation policy also helps to deal with strategic developments (see Section 1.3 "Innovation and R&D").

In Europe and in some other regions including the United States, Asia Pacific and Brazil, public authorities intervene in the energy sector through regulation and the extension of regulatory powers in the competitive field. These measures can take the form of increased taxation on energy company profits, changes to the rules governing the markets and the security of supply, interventions by regulators in the deregulated sector to encourage the development of competition, or the move towards the remunicipalization of certain utilities.

Through its presence in the EU and Member State institutions, the Group tries to anticipate any legislation likely to affect its activities and the associated revenues, and formulatesproposals for decision-makers. The Group also partially diversifies regulatory and legislative risks by conducting its business in a number of different countries. However, some regulatory developments offer new opportunities for the Group's activities.

Some regulatory changes may alter the risk profile of the Group and impact its earnings and its business model. The most significant of these for the Group are mentioned below. The greatest risk in this category in 2019 ("Risk of non-extension of the Doel 4 and Tihange 3 second-generation Belgian nuclear units beyond 2025, the date set in the Law of January 31, 2003") was integrated into the Group's accounts at the end of 2020 and generated an impairment loss as set out in Note 13.3.1.2 of Section 6.2.2 - "Notes to the consolidated financial statements". On the basis of the announcements by the Belgian government in Autumn 2020 and the subsequent discussions with the Group, the operational conditions for the pre-extension work were no longer deemed to have been met for the assumed 20-year extension of half of the second-generation units beyond 2025.

2.2.1.1

Risk of change in the regulatory framework and of the amount of provisions set aside for the decommissioning of Belgian nuclear power plants and the management of spent fuel (***)

In Belgium, all nuclear waste management is the responsibility of ONDRAF, the Belgian National Agency for Radioactive Waste and Enriched Fissile Material. ONDRAF proposes, as a national policy, that high level radioactive waste and/or long-lived waste be stored in deep geological repositories and not in long-term storage facilities.

Spent nuclear fuel is currently stored at generation sites. At present there are two possible scenarios for its management: either a portion of spent fuel is reprocessed and the rest is discharged directly into deep geological repositories; or all of the spent fuel is discharged into deep geological repositories. It is up to Synatom to propose a solution that is likely to be approved by the Belgian government.

Costs associated with the management of spent fuel and the dismantling of plant and equipment are included in the costs of nuclear power production and are the subject of provisions. The assumptions and sensitivities regarding the assessment of these amounts are detailed in Note 19.2 of Section 6.2.2 "Notes to the consolidated financial statements". In accordance with the law, a process of reviewing nuclear provisions is undertaken every three years. The Nuclear Provisions Commission (CPN) communicated its decision to Synatom in December 2019 on the re-evaluation of the provisions of the Belgian nuclear power plants for thedecommissioning and management of spent fuel (based on a scenario combining reprocessing of a portion of the spent fuel and direct discharge of the remaining waste - which is more costly than a scenario with no reprocessing), resulting in an increase in provisions of €2.1 billion in 2019.

These provisions could be increased further under the next triennial review scheduled for 2022. An increase in provisions may result from a further decline in the discount rate or a higher estimate of the costs of decommissioning and waste management relating to this business:

• on one hand, spent fuel (for example, due to new technological choices for the long-term management of category B and C waste (long-lived waste));
• and on the other hand, changes in conditioning and removal costs applied by ONDRAF for category A waste (short-lived waste of low or medium activity) generated by decommissioning (see also Section 2.2.5.2).

A reform proposal of the Law of April 11, 2003 on the provisions made for the decommissioning of nuclear power plants and for the management of fissile material irradiated in these power plants was initiated by the Belgian government.

Risk management measures

The Group works in partnership with the CPN for the review of nuclear provisions.

The Group provides the Belgian government with evidence to demonstrate that it is in a position to meet the costs relating to the decommissioning of plants and the management of spent fuel.

The Group contributes directly to working groups with ONDRAF on the technical, legal and financial aspects of radioactive waste management and storage.

2.2.1.2

Risk of a downward trend in the return on gas distribution, transmission, storage and regasification assets in France (**)

Tariffs for access to gas infrastructures (distribution, transmission, storage, regasification terminals) in France are regulated. The tariffs are fixed by the French Energy Regulation Commission (CRE), which may change their level and structure if it deems this justified, particularly in view of financial market trends, the analysis of the accounting of the operators and foreseeable changes in operating and investment costs. These tariffs also include performance incentives. In most cases, they are reviewed every four years, following a public consultation process and public hearings. On January 24, 2020, the CRE published, most notably, the resolutions setting the gas infrastructure tariffs (distribution, transmission, storage) applicable for a period of approximately four years.

With regard to future regasification tariffs (ATTM6), the CRE published the resolution fixing the tariffs for the use of regulated LNG terminals on January 7, 2021, with anapplication date of April 1, 2021 for a period of four years in principle. This is in line with the previous tariff but includes an acceleration in asset depreciation for the Montoir terminal. The next Transport (ATRT8), Distribution (ATRD7) and Storage (ATS3) tariff review is expected to be launched in 2023 for implementation in 2024. Regarding ATTM7 regasification tariffs, a review should be launched in 2024 with a targeted implementation of 2025). If the rate of return on assets decreases, operational and strategic risks associated with the business are not fully taken into account in the return on assets, investments decline, certain charges are not covered, or in the case of a particularly strict incentive regulation, the contribution of gas infrastructure assets to the Group's results and the profitability of its investment in this business could decline.

Risk management measures

The Group is in discussions with the CRE in the context of the tariff review system, which places great emphasis on dialog with all stakeholders. In addition to introducing measures to develop the production of green gas and ensuring it is competitive in the long term, the Group is defending positions that aim to ensure a fair return on assets that is adapted to the new short and long-term economic environment, and adequate coverage of its costs in order to maintain a high standard of service and to enable the necessary investments for the energy transition. ENGIE also promotes the recognition of the flexibility provided by the gas system to the energy system and its valuation; it also strives to enhance its performance in order to establish a competitive tariff trajectory.

2.2.1.3

Risk of invalidation of the decision already granted to extend the operating life of the Doel 1 and 2 and Tihange 1 nuclear units in Belgium (**)

The decision to extend the operating life of the nuclear power unit Tihange 1 to 50 years took effect on October 1, 2015, with a program of associated works. The Belgian government's decision to extend the date of shutdown of the Doel 1 and 2 nuclear units after 50 years, which was confirmed by parliamentary vote in June 2015, was approved by the Belgian Federal Agency for Nuclear Control (FANC) as part of its fourth ten-year review, on the basis of a committed modernization program that ended in 2020. Legal proceedings were brought by environmental organizations before the Constitutional Court against the Belgian state regarding the lack of any environmental impact analysis or public consultation in connection with the adoption of the law passed in June 2015 (see Note 25.3.1 of Section 6.2.2 "Notes to the consolidated financial statements"). The ConstitutionalCourt delivered its judgment on March 5, 2020, by which it annuls the Belgian law extending the lifespan of the Doel 1 and Doel 2 nuclear units in that it was adopted without carrying out the required prior environmental assessments. However, the Court agreed that the effects of the law should be maintained until 2022 to ensure the security of the country's supply. The Doel 1 and Doel 2 units can therefore continue to operate until the situation has been resolved. It is now up to the Belgian State to regularize the situation within this period.

The invalidation of the decision to extend the operating life of the Doel 1 and 2 and Tihange 1 nuclear units could have a significant unfavorable effect on the group's revenues and on the value of the nuclear assets concerned.

Risk management measures

The Group is working in partnership with the Belgian state as part of the regularization process.

The Belgian state has confirmed the schedule set out for the regularization process within the time frame provided by the Belgian Constitutional Court and that it has already started the preparatory work for the required environmental assessments.

2.2.1.4

Risk of changes in regulations in Brazil in various business sectors (electricity production and sales, transportation of gas), including changes in taxes (**)

The Group is exposed to changes in the regulation of Brazil's electricity markets, such as the reduction of subsidies or the introduction of new taxes for producers. The administration may announce new initiatives in line with a modernization of the electricity market design, to open the market to competition, improve its functioning and ensure the necessary investments in modular production capacities.

Brazil now represents 4% of Group revenues. ENGIE Brasil Energia invests in the transportation of gas (acquisition of TAG) and electricity (Gralha Azul and Novo Estado project - construction of high-voltage lines). The Gralha Azul and Novo Estado activities are regulated, while those of TAG are both regulated and covered by long-term contracts. The institutions have launched a process to review and modernize the design of the gas market. The probable evolution of the regulatory framework for the gas transmission activity is closely monitored by the Group, to ensure that it has a neutral effect on TAG's risk profile and return.

The Brazilian tax system is complex and could potentially evolve. Several disputes are underway relating to the application of tax and settling these disputes could take several years. Moreover, numerous modifications to taxregimes may be adopted in the years ahead, in particular relating to VAT (PIS COFINS), dividends (not taxed to date), or corporation tax. Any impacts - that could compensate one another - are not known to date.

Risk management measures

Thanks to its international presence, the Group has extensive experience in market design. This experience is made available to the Brazilian institutions, including through participation in the formal process of revising the market design in Brazil. Changes in the design of the electricity and gas markets will affect all companies active in these sectors. Other companies present in electricity generation or gas transmission in Brazil share the Group's opinion and have taken action to ensure the neutrality, and even positivity, of developments in market design. Politically speaking, Brazil's need to continue to attract foreign investment limits the risks.

In Brazil, the Group closely monitors any regulatory and legislative reforms to anticipate any changes in these fields as best as possible and introduce measures to limit any negative impact on the profitability of its businesses.

2.2.1.5

Risk associated with renewal of hydraulic concessions in France (**)

Hydropower makes up a substantial proportion of French electricity generation. The state has granted concessions which are gradually expiring, or which have already expired, and which must be put up for tender when they expire, according to the European directive relating to the assignment of concession contracts (directive of February 26, 2014). However, no tender procedures have been launched in France. Expiring concessions are placed on "rolling deadlines", as permitted by the Energy Code. Law No. 2015-992 of August 17, 2015 on the energy transition for green growth also introduced the notion of connected hydroelectric chains (or barycenters), involving the bundling of several concessions assigned to the same water course, but with different expirydates, and setting a single expiration date. The implementation of the concessions directive in France and the associated uncertainties, particularly concerning France's position in terms of creating a public hydropower cluster for the bulk of concessions on the French market, has led to uncertainty regarding the future of SHEM's concessions.

Schedule uncertainties also weigh on the extension of the CNR concession for which a procedure is underway.

These uncertainties could impact the revenue and values of concessions (see Note 13.3.1.5 in Section 6.2.2 "Notes to the consolidated financial statements").

Risk management measures

An application for the extension of the CNR's concession was presented to the French state, which accepted it and submitted it to the European Commission. The internal legislation procedure is currently underway and the application for an amendment to the concession was filed by the CNR. This procedure should lead to the issue of a decree by the Council of State during 2021 amending the current concession, following an environmental assessment procedure (opinion delivered by the environmental authority) and a consultation of the public and interested parties.

The Group is also defending its interests and finding solutions to safeguard SHEM's future.

2.2.1.6

Risk of disagreement with the Australian regulator over the conditions for rehabilitating the Hazelwood coal mine (*)

As part of its strategy to gradually withdraw from the coal business, in 2017 the Group closed the Hazelwood plant in Australia, which generated electricity from coal from the adjacent mine. The Group is now engaged in decommissioning the plant and rehabilitating the site, aiming to ensure the long-term stability of the ground and walls. The rehabilitation project is based on the creation of a lake in the space left by the open cast mine. Several technical options were studiedregarding the size of the mine lake (full or partial) and the origin of the water to be used to fill it. In the event of regulatory non-approval of the options recommended by the Group, it would have to face longer and higher than expected delays and rehabilitation costs, which would have an impact on the level of provisions (see Note 19.3.2 in Section 6.2.2 "Notes to the consolidated financial statements").

Risk management measures

The Group is continuing its studies and discussions with the Australian regulator and the various stakeholders in order to implement the best solution in terms of safety and costs.

2.2.1.7

Country risk (*)

The Group is present, develops its activities or procures natural gas and a variety of industrial components in a large number of countries. The Group is, therefore, exposed to a variety of risks, including notably changes in regulation, sovereign default, convertibility, expropriation, corruption, acts of war, riots orterrorism, extra-territorial effects of some legislation and sanction mechanisms and tariff escalation. Moreover, in certain countries, a dispute with the State in question or other local public entities may make defending its rights before local courts more difficult for the Group.

For example, in the United States, the CAATSA (Countering America's Adversaries Through Sanctions Act) of August 2, 2017 allows (on a discretionary basis) the US President to impose secondary sanctions on any entity that participates, in particular through investment, in the construction and/or maintenance of Russian gas export pipelines (Section 232). On October 31, 2018, the State Department published public guidance on the way in which it intends to implement the Act in practice. In this guidance, the State Department indicated that projects that had been initiated before August 2, 2017 would not be subject to potential sanctions under this Section 232. It is specified that "projects initiated before August 2, 2017" must be understood as any project contracted before said date, which is the case for project Nord Stream 2 which is excluded de facto.

On December 20, 2019, new provisions (Article 7503 of the National Defense Security Act of 2020 or "PEESA" (Protecting Europe's Energy Security Act)) were passed by the United States Congress, with the aim of sanctioning, at the end of a period of 30 days, after publication of a report by Congress, the companies supplying pipe-laying vessels for the Nord Stream 2 project. As a result, work was immediately suspended by Allseas, the company contracted to carry out said pipe-laying activities. These measures in no way target the financial backers of the project, including ENGIE.

On July 15, 2020, the State Department published new guidance related to the CAATSA which cancels and replaces, as of this date, the previous guidance. The new guidance now includes in its scope of application all projects whether they had been initiated before or after August 2, 2017 and therefore Nord Stream 2. Nevertheless, it does not affect measures taken under the previous guidance, which are not subject to sanctions. The new guidance states that sanctions are not retrospective. They are therefore only applicable to measures underway as of July 15, 2020, which excludes the funding provided by ENGIE from their scope of application (see Note 16.1.1.3 in Section 6.2.2 "Notes to the consolidated financial statements)".

On January 1, 2021, Congress adopted, in section 1242 of the "National Defense Authorization Act for fiscal year 2021", a new legislation called "PEESCA" (Protecting Europe's Energy Security Clarification Act), which modifies previous "PEESA" legislation by extending the scope of potential sanctions to include, in particular, activities relating to the laying of pipelines, insurance activities, as well as inspections related to the Nord Stream 2 project.

ENGIE's contractual financing commitments, which were signed before August 2, 2017, have been fulfilled and ENGIE will not make any further payments. The Group is paying close attention to the effects of all sanctions concerning Nord Stream 2.

These previous activities for ENGIE do not fall within the scope of this legislation.

Risk management measures

The diversity of the Group's locations mitigates country risk to some extent. Attention thresholds by country or group of countries enable the Group's exposure to be monitored. The Group also manages these risks within partnerships or contractual negotiations adapted to each location. It chooses its locations by applying a formal investment procedure that appraises risk. The inclusion of international arbitration clauses in major contracts is applied as widely as possible.

The Group's decentralized organization means that the Business Units are responsible for their own income statements and investments. Each Business Unit is overseen by a Group Executive Vice President who is a member of the Executive Committee. This organization enables the Group to closely manage political and regulatory changes in each country in which it operates, while ensuring that country risk and risk management measures are taken into account at the appropriate level.

2.2.2

Risks deriving from climate and environmental issues

The Group's businesses are exposed to numerous rules and regulations (relating to respecting and protecting the environment and persons or to the energy transition). Its strategy and results could be impacted by the above laws, or others yet to come.

Internationally

Following the adoption of the Paris Agreement, the world's first universal climate change agreement, at the COP21 in December 2015, the COP22, COP23, COP24 and COP25 began to draw up the road map for the signatory States. Although much work remains to be done to finalize the arrangements to implement the agreement, the 1.5°C report produced by the IPCC (Intergovernmental Panel on Climate Change) demonstrates that there can no longer be any doubt as to the need to accelerate national CO2 emissions policies. The Group is actively preparing for this. It already sharply reduced the proportion of coal in its energy mix (electricity generation at the end of 2020 was divided as follows: 62% natural gas, 23% renewable energy (hydropower, wind and solar, biomass and biogas), 9% nuclear, and 5% coal. The Group has just announced its intention to fully withdraw from coal-based activities by 2027.

In Europe

Europe's climate and energy policy promotes energy efficiency, GHG emission reductions, and an increase in the percentage of renewable energy in the energy mix. The new EuropeanCommission has significantly stepped up its decarbonization objectives under the European "Green New Deal" by proposing a GHG reduction target of -55% (versus -40% previously) by 2030 (compared with 1990). This should lead to a mechanical increase in renewable energy and energy efficiency targets. The Hydrogen strategy published on July 8, 2020 by the European Commission, together with the establishment of the European Clean Hydrogen Alliance under its tutelage and ambitious hydrogen strategies published by various countries (Germany, Portugal, ...) including France will also play a key role in this decarbonization of the European economy. In addition, an energy system integration project is currently underway to optimize, in particular, the cost of the transition, which could represent an opportunity to promote the role of gas networks and their adaptation in view of a hydrogen boom and the means of transporting this element. These developments constitute potential growth accelerators for the Group if they are accompanied by a regulatory and financial framework adapted to these ambitions.

Certain sector initiatives, such as the new energy lending policy of the European Investment Bank and the regulatory initiatives relating to "Taxonomy", intended to encourage sustainable investment, may constitute risks if they were to limit access to financing for activities that the Group considers essential to achieve the European objectives of the energy transition, particularly the development of renewable gases. Current developments imply that the processing of renewable gases will not be unfavorable, although it is prudent to await the final texts of the European Commission for confirmation.

2.2.2.1

Position of gas in the French energy mix (**)

The dominant strategy of the energy policy, based on the national energy regulations adopted in 2019 (SNBC, PPE, LEC) and targeting decarbonization through a strengthened and rapid electrification of all uses, may have a major influence on natural gas market share. This vision entails a number of risks that are currently being assessed, in particular concerning the increase in peak electricity needs and the additional cost necessary to meet them, as well as the recurrent challenge of balancing the electricity grid for which the gas vector (natural and progressively green gas), given its cost and its flexibility, could provide more appropriate solutions.

Moreover, the future thermal regulation, which was made public on November 24 and intended to modify how the CO2 footprint of new buildings in favor of electricity is taken into account, could revive the use of electric heating, to the expense of gas.

In addition, the European "Taxonomy" project mentioned above has created uncertainty about the financing of certain Group activities related to renewable gases (biomethane and hydrogen produced from renewable electricity) if they were not labeled "green" according to the criteria defined by the future European Regulation.

Risk management measures

The Group has strengthened, with French public bodies and the European authorities, its promotion of the gas sector as indispensable to the acceleration and achievement of the energy transition in various areas (including the defense of heating use, the competitiveness of green gases, the market design of biomethane and the energy complementarity).

The Group has defined a strategy for the development of green gases, with the launch of an industrial and commercial plan to expand production of biomethane of agricultural origin (effluent and crop growing residues) and the transition to industrial scale of this production line in France. Downstream of the production chain, the Group's transmission and distribution networks are adapting their infrastructures to enable the transmission of biomethane to customers as inexpensively as possible. The Group is also developing second-generation biomethane production lines, using biomass pyrogasification. It is also leading the way in developing and investing in green hydrogen production projects based on renewable electricity water electrolysis, converting some of its saline cavities to store this hydrogen and improving the technical conditions of its injection into the gas network, all with the purpose of promoting renewable hydrogen as a credible key component of the future French energy mix.

Moreover, the Group intends to diversify its infrastructure portfolio to include growth regions.

2.2.2.2

Risk of climate change affecting energy demand and generation (**)

Information presented here and in Section 3.3.1 Risk F "Climate change impact" reflects the financial risks associated with the effects of climate change and the measures taken by the company to mitigate them by implementing a low carbon strategy in all the components of its activity.

In the short term, climate phenomena (e.g. temperature variation, flooding, wind, drought, heat waves) affect energy generation (in the case of lack of water in dams in particular) and energy demand (e.g. gas supply during a warm winter). They have a direct effect on the Group's results.

In the longer term, climate change could have a greater impact on the Group's activities, for example through changes in regional or seasonal energy demand, changes to the network's production, the obligation to reduce CO2 equivalent emissions and heightened regulations, conflicts over water use, increases in sea and river levels and temperatures, the preservation of natural carbon sinks and conflicts over biomass use.

Risk management measures

(see also Section 3.5.4 "Group actions")

To adapt its offering to fluctuations in annual demand, ENGIE optimizes its portfolio of assets, its gas resources (by modulating its supplies and managing its underground storage), and its power generation fleet.

To manage this risk in the longer term, ENGIE acts on different levels:

• The Group is firmly committed to combating climate change by investing in low-carbon technologies, reducing its greenhouse gas emissions and adapting its operations accordingly. The Group promotes international carbon pricing in order to accelerate the transition to a low-carbon society, while guaranteeing a level playing field for all players.
• The Group has set 2030 targets for greenhouse gas emissions and renewable energy (see Section 1.5.3 "2030 CSR targets" The expansion of its renewable energy fleet, the replacement of natural gas by renewable gas, and the development of carbon-free service offerings are the main drivers of ENGIE's energy transition strategy. The Group therefore decided at the end of 2017 to pursue a trajectory compatible with the goal of limiting the global temperature increase to 2°C and obtained SBT (Science Based Target) certification at the beginning of 2020 (see Section 3.1.4 "Science Based Target certification and carbon neutrality"). For the longer term, ENGIE aims to reduce its direct emissions by 85% by 2050.
• The Group is gradually developing adaptation plans to prepare for an increase in extreme weather events.
• Since anticipating the implementation of Article 173 of the French Energy Transition Law regarding greater transparency on climate risks, the Group has followed the work of the TCFD (Task Force on Climate-related Financial Disclosures) and is gradually implementing its recommendations.

2.2.3

Economic and competitive risks

The Group's activity is impacted by the level of energy demand and commodity prices, as well as by far-reaching changes in the energy sector (e.g. the decentralization and decarbonization of generation, renewable energy, newtechnologies, digitization, new competitor profiles, etc. (see Section 1.1.1 "Presentation" and Section 1.6 "Description of the Group's activities").

2.2.3.1

Increased competition risk in energy sales and services, with an effect on margins (**)

In its different businesses, the Group competes with players with increasingly diverse profiles, both in terms of size - with major international players and local emerging players - and sectors. The decentralization of energy generation systems due to energy transition has allowed smaller players to compete with the Group in some activities (photovoltaic power, services).

The emergence of digital and smart energy technologies has impacted the gas and electricity value chain, as well as services in general, with new competitors from the information technology and equipment manufacturer sectors. More generally, competition is intensifying on energy markets, with key players (oil companies, etc.) becoming more and more active throughout the entire value chain.

The Group is keen to develop its trading activities to focus on new products and new markets, notably to support its decarbonization efforts. Within this context, it will be faced with new competitors.

In this very competitive context, the Group faces several challenges:

• maintaining its market share in energy sales and services in countries where it has a long-term presence, and sometimes a leading position on these markets, while also maintaining an optimal level of profitability;
• maintaining an optimal break-even point in a period of increased consumer protection, notably in Belgium;
• renewing heating and cooling concessions;
• developing its activities and customer portfolio in target countries.

Risk management measures

The Group continually monitors its competitive position using specific watch systems.

It regularly develops new offers to meet changing customer demand: digitization, green offers, and development of "carbon-neutral" solutions.

It continually improves the operating performance of the networks it operates and is progressively greening their energy mix.

2.2.3.2

Weakened economic climate if the Covid-19 crisis and related lockdown measures continue (**)

The Covid-19 pandemic is still underway, for the foreseeable future, and preventative measures introduced by the authorities (on an international, national and local scale) are constantly changing. The Group could be faced with decisions taken by the governments of the various countries in which it operates, such as the closure of certain production sites and companies in the services sector (such as offices and hotels), or the decision to defer the payment of energy bills (as is being considered for VSEs in France). Demand for its products

and services could be reduced due to a decline in industrial production or empty office space, and certain projects may be postponed. The Group could also be exposed to an increase in customer defaults (see Section 2.2.4.5 "Counterparty risk"). Such a situation, if it were to be lasting, could have an impact on the Group's earnings, mainly in energy supply activities and services, or on its financial position.

Risk management measures

The Group rapidly adapted its processes to ensure business continuity while protecting the health of its employees and customers.

The Group has redefined its sales development priorities to target the most resilient sectors.

The Group is adapting the content of its energy supply offers to safeguard against changes in consumption or to reduce their consequences.

The Group is downscaling its future head office in Colombes, France, due to the development of home working.

2.2.3.3

Risk of decrease in revenues from power plants in the Gulf when long-term contracts expire (**)

In the Gulf countries, the MESCAT BU acts as an asset developer, owner and operator (mainly of combined cycle gas turbine plants), selling the electricity and water it produces under long-term public contracts (Power (& Water) Purchase Agreements or P(W)PAs). On expiry of these contracts, the sales environment in which these assets exist will be uncertain and impacted by the legal and regulatory regime in force at that time.

Several outcomes are possible that could have an impact on Group revenue:

• an extension of the contracts under conditions to be negotiated;
• the sale of the electricity produced on the markets, with exposure to market price volatility;
• the mothballing of assets in the event of temporary market overcapacity;
• the permanent shutdown of assets.

Risk management measures

The Group is carrying out an in-depth study of the markets and is taking proactive measures to extend or replace these agreements by taking part in contract extension processes organized by the relevant national authorities. The focus on the performance and flexibility of power plants also increases the chances of achieving a more competitive sales position.

2.2.4

Financial risks

2.2.4.1

Commodities market risk (***)

The Group is chiefly exposed to two kinds of commodity market risk: price risk directly related to fluctuating market prices, and volume risk (weather risk and/or risk depending on economic activity). The Group is exposed to these risks, particularly with regard to gas, electricity, CO2 and other green or white products related to the energy transition (Guarantees of Origin, energy savings certificates and the Capacity Remuneration Mechanism (CRM)) (see Note 17.1.1 of Section 6.2.2 "Notes to the consolidated financial statements").

The Group has substantially reduced its exposure to market risks in recent years, after the sale of its thermal power plants in the US, its exploration & production and LNG activities, and its European coal-fired power plants. However, its exposure to price risk remains high for nuclear power,hydropower and thermal gas assets. Renewable assets, a large share of which are under contract until 2030, generate very little exposure to price risk but are exposed to risks relating to their intermittent nature.

With the exception of trading activities, market risks are assessed by means of their impact on EBITDA. Accordingly, the main risk indicators for managing the energy portfolios include sensitivity to unit price changes, EBITDA at Risk, portfolio hedging ratios and stress tests based on predefined unfavorable scenarios. For trading activities, and in accordance with market standards, risk indicators include sensitivities, Value at Risk (VaR) and stress tests (see Note 17.1.1 of Section 6.2.2 "Notes to the consolidated financial statements").

Risk management measures

The Group has implemented a specific governance process to manage market and counterparty risks based on (i) the general principle of separation of risk management and risk control, (ii) a Group-level Energy Market Risks Committee that is responsible for validating risk policies and monitoring consolidated exposure, (iii) following the market and counterparty risk mandates, and (iv) a specific risk control function coordinated by the Finance Department.

Part of its electricity production activity outside Europe is covered by long-term Power Purchase Agreements (PPA) in which variations in operating expenses, in particular for fuels, are transferred as "pass-throughs" into electricity sale prices. This substantially limits exposure to fuel price fluctuation risks, even if, under certain contracts, the transfer is not carried out in exactly the same way.

The Group also uses derivatives to offer hedging instruments to its customers and to hedge its own positions either through forward curves for the price risk or shorter term hedging instruments for risks relating to the intermittent nature of renewable generation.

2.2.4.2

Foreign exchange risk (***)

The Group is exposed to foreign exchange risk, defined as the impact on the financial position and income statement of exchange rate fluctuations, in the performance of its operational and financial activities. These are broken down into (i) a transactional risk related to current operations, (ii) a specific transactional risk related to investment, merger-acquisition or disposal projects, and (iii) a translational risk which arises from conversion when consolidating the elements of the statement of financial position and the income statement of entities whose functional currency is not the euro. The main exposures to translational risk correspond, in orderof importance, to assets in US dollars, Brazilian real and British pounds. In a particularly volatile market context (with notably a major depreciation of the Brazilian real over 2020), the translational risk remains a major risk for the Group.

The breakdown by currency of outstanding borrowings and net financial debt, as well as an analysis of foreign exchange risk sensitivity are presented in Note 17.1.3.1 and Note 17.1.3.2 respectively of Section 6.2.2 "Notes to the consolidated financial statements".

Risk management measures

As part of the Group's foreign exchange risk policy, recurring transactional risk is subject to systematic hedging as soon as this risk is material and almost certain to arise. During the examination of investment projects, the specific transactional risk is subject to a case-by-case hedging strategy. Finally, translational risk is covered by partial hedging strategies subject to a reasonable hedging cost and sufficient market liquidity in relation to the risk of currency depreciation.

2.2.4.3

Tax risk (**)

Given their budget constraints, that the increase in public debt due to the Covid-19 public health crisis will only exacerbate, coupled with pressure from civil society, several national governments have recently introduced both general and specific anti-abuse measures, with a broad and partly subjective scope, and have given their supervisory authorities increased powers of investigation. Subsequently, EU Member States transposed several Directives aimed at combating tax avoidance (see ATAD1 and 2 (1), DAC6 (2)).

Considering current discussions regarding challenges relating to the digitization of the economy, within the OECD and its Inclusive Framework, other international tax reform projects are to be expected in the medium term: the Group could be impacted by Pillar Two of this project which aims to introducean additional tax within the jurisdiction of the parent company for its undertaxed foreign subsidiaries (increase in its tax liability and compliance costs due to the significant complexity of the mechanism).

The new European Commission could implement the OECD's projects, even without consensus at the international level, by proposing a Directive aimed at realigning tax rights to value creation and by setting a minimum taxation level, and by relaunching its former European standardization project (see CCTB (3)) which would represent a major change in the tax system in Europe.

These reform proposals create uncertainties and may have an impact on the Group's earnings over different time horizons.

Risk management measures

The Group has established and published a tax policy since 2015. It was last updated and validated by the Board of Directors and its main subsidiaries on January 29, 2020. It is available on ENGIE's website.

The policy highlights the importance of taxation for the Group and its commitment to a sustainable, stable and clear tax system, administered in a fair and transparent manner. The tax function and risk management are entrusted to the Group Chief Financial Officer and more particularly to the Group Tax Department, which informs the Audit Committee of the implementation of the tax policy and the internal control system. Internal procedures, including regular control mechanisms, have been put in place to ensure compliance with tax obligations in the concerned countries. Procedures also cover the choice of location for the Group's structures. The Group does not take speculative tax positions which create a tax risk or which do not reflect their economic reality. The Group maintains official, open and constructive relations with governments and tax authorities and closely monitors reform proposals. Furthermore, tax practices within the Group comply with its Code of Ethics and its environmental, social and societal principles. The Group therefore considers that it is compliant with the requirements of the new Article L.22-10-36 of the French Commercial Code relating to combating tax fraud.

2.2.4.4

Pension funding risk (**)

A significant portion of the Group pensions commitments and the assets associated with these plans are concentrated in France and in Belgium. Other defined-benefit pension plans are mainly located in Europe and Brazil.

In recent years, the Group has terminated a number of defined-benefit plans and replaced them with defined-contribution plans.

Note 20 of Section 6.2.2 "Notes to the consolidated financial statements" details the items measured and recognized.

The calculation of commitments is estimated via actuarial methods using methodologies, assumptions and models to assess liabilities or determine asset allocations and associated risks that could have a significant impact on hedging levels and financing requirements.

In France, the special Electric and Gas Industries (EGI) regime is a legal regime and the related commitments are estimated using actuarial assumptions and rules governing, respectively, benefits paid out by statutory plans and amounts that remain the Group's responsibility. These assumptions andrules may be subject to changes that increase the Group's commitments and therefore require an increase in the relative relevant provisions.

Substantial commitments exist in the form of other post-employment benefits and other long-term employee benefits, in addition to pension liabilities. These mainly comprise energy-related benefits provided to retired employees within the scope of the EGI.

Hedging levels and financing requirements for the Group's pension plans vary according to the performance of financial markets and asset allocations, as well as interest and inflation rates and changes in the applicable legal and regulatory framework.

For some plans outside the scope of the EGI, ENGIE may be required to fully or partly finance any difference between the market value of these assets and the hedging levels projected for these plans, or any insufficiency in the return on the assets in respect of the guaranteed minimum average rates.

(1)ATAD: Anti-Tax Avoidance Directive

(2) Directive relating to administrative cooperation

(3)CCTB: Common Consolidated Tax Base

As an illustration, on December 31, 2020, the actuarial debt was €14.9 billion. According to the Group's estimates, an increase (decrease) of 100 basis points in the discount rate would result in a decrease (increase) of approximately 18% in the actuarial debt.

Despite the Covid-19 crisis, pension funds proved resilient over 2020 as a whole and the majority recorded a neutral or slightly positive performance.

Risk management measures

The Group has implemented a policy to cover pension commitments specific to each of the countries and legislation concerned.

Within the scope of the EGI, the scheme is financed through the outsourcing of assets within the framework of life insurance contracts. For the majority of international schemes, liabilities are covered through the funding of pension funds in which the Group strives to be present in governance, as far as legislation allows.

It should be noted that the energy benefit in kind granted to the personnel within the scope of the EGI during the retirement period is not covered.

2.2.4.5

Counterparty risk (**)

Due to its financial and operational activities, the Group is exposed to the risk of default by its counterparties (customers, suppliers, partners, intermediaries, and banks) - see Note 17.2 of Section 6.2.2 "Notes to the consolidated financial statements".

The impact of this may be felt in terms of payment (non-payment for services or deliveries made), delivery (non-delivery of supplies or services that have been paid for),assets (loss of financial investments), or loss of earnings in the event of customer bankruptcy or additional costs in the event of supplier default.

The development of green offers through Corporate PPAs over longer periods than traditional sales increases counterparty risks. Moreover, these contracts are often signed with counterparties that are not always rated Investment Grade (AAA to BBB- rating).

Risk management measures

The financial soundness of customers is assessed before contracts are signed, using the same methods and tools across the entire Group.

These risks are managed via framework agreements that use standard mechanisms such as third-party guarantees, netting agreements and margin calls, or dedicated hedging instruments. Operational activities may also involve prepayments or suitable recovery procedures (especially for retail customers).

Note 17.2 of Section 6.2 "Consolidated financial statements" provides further information regarding these risk measures in the context of the Covid-19 public health crisis.

2.2.4.6

Risk on the return on the amount of provisions invested by Synatom towards nuclear decommissioning and the management of spent fuel (**)

Synatom invests the amount of provisions paid by Electrabel to cover the costs of decommissioning nuclear power plants and the management of spent fuel on the financial markets - see Note 16.1.1.2 of Section 6.2.2 "Notes to the consolidated financial statements". If, when using the funds, it turns out that the amounts provisioned were insufficient, Electrabel should compensate for the difference.

In the shorter term, the value of Synatom's investments is protected by a guaranteed value agreement between Electrabel and Synatom under which if, at the end of the agreement (in 2025), the market value is lower than the book value, Electrabel must cover the difference in value.

Risk management measures

Investment management is entrusted to a team led by a chief investment officer. An investment committee composed of experts will be responsible for overseeing investment decisions. These are guided by an investment policy based on a controlled risk profile aimed at achieving the Group's performance objectives and a strong diversification of risks and is supported by a strict risk control policy.

2.2.5

Industrial risks

The areas of activity in which the Group operates carry industrial risks capable of causing harm to individuals, property or the environment. These risks could expose the Group to claims for civil, criminal and/or environmental liability. These may relate to facilities that belong to the Group or are managed by it on behalf of customers, orfacilities where employees work. The process safety of the facilities that the Group operates is one of its major concerns. The handling of these risks is subject to in-depth monitoring and specific targeted investments, and audits of the facilities in question are performed regularly.

Industrial facilities and Seveso sites

The Group operates and builds systems for gas transmission, distribution and storage, regasification, gas liquefaction and bio-methanization. It also operates and builds electricity production plants, hydro facilities, wind farms andphotovoltaic facilities and provides services in an industrial environment. Some of these facilities are classified as "upper tier" Seveso sites.

2.2.5.1

Industrial accident risks (**)

Risks of industrial accident can stem, for example, from operating incidents, design flaws or from external events (including third-party actions and natural disasters). These accidents could cause injuries, loss of life, property or environmental damage, activity interruptions and operating losses.

During the Covid-19 pandemic, no industrial accidents or significant event relating to the reduction in operating activities were recorded. Business Continuity Plans (BCP) were adapted to the pandemic and implemented. The operation of all industrial assets was maintained and the associated risks continued to be managed.

Risk management measures

The Group carries out its industrial activities in compliance with a framework of safety regulations, including the "Seveso III" European directive (1). These industrial risks are controlled by implementing safety management systems based on the principle of continuous improvement. These systems aim to reduce the level of residual risk by responding to the highest risks as a priority. Moreover, process safety is part of the Group's audit and internal control programs.

The protection of industrial control systems is now included in the Group's IT system security policy roll out.

For the greatest part, these risks are covered by insurance policies. In the event of a major claim, these policies could prove insufficient (see Section 2.1.3 "Risk and insurance coverage").

A Group Process Safety Committee meets twice a year, and more often if a specific issue needs to be addressed. The main purposes of this committee include:

• developing a comprehensive and cross-divisional culture of safety and industrial performance that encourages the positive contribution of operators and labor collectives;
• promoting the inter-BU and inter-divisional exchange of information on risks and accidents and sharing best practices in the Group's various activities;
• supporting the implementation of any cross-company initiatives within the Group;
• sharing and questioning the analyses and feedback on any major industrial accidents, or events that could have serious repercussions, within the Group's various activities.

Nuclear activities

Electrabel has established governance principles for the operation, maintenance and decommissioning of nuclear power plants based on its experience as an operator and service provider. It is also active in employee recruitment, training and retention, both for facilities in operation and nuclear services entities, and is involved in developing new services.

In Belgium, Electrabel, a Group subsidiary, owns and operates seven pressurized water reactors at two nuclear power stations at Doel and Tihange.

2.2.5.2

Risk of increase in the cost of processing and storage of various categories of radioactive waste in accordance with the technical requirements of ONDRAF (**)

a/ ONDRAF could require the application of stricter acceptance criteria for short-lived waste with low or medium levels of radioactivity (category A) (see also Section 2.2.1.1). In the past, category A waste was conditioned in accordance with the acceptance criteria at the time. If acceptance criteria should become stricter, this could lead to a need to recondition the waste. There is also a processing risk for certain waste barrels where a gel-like substance was discovered on their surface. Finally, ONDRAF tariffs could rise, leading to an increase in the waste-disposal tariffs for radioactive waste generated by the operation of power plants.

b/ Electrabel is developing a plan to construct a new building for temporary storage of spent fuel at the Tihange power plant. The construction of this building is required for thetemporary storage of spent fuel on the site, to continue activities there and prepare the site for decommissioning. The project was granted the required operating and planning permits on January 26, 2020 and February 21, 2020 respectively. Appeals for annulment were filed against these permits by local citizens. These appeals, which do not have suspensive effect, are currently underway.

c/ Following the discovery of a gel-like substance on the surface of certain barrels of medium level radioactive waste, waste conditioning processes were subjected by ONDRAF to additional and stricter tests with more rigorous acceptance criteria. As a result, the accreditations for a number of processes were either not renewed or were withdrawn. Without these accreditations, the processing of this kind of waste must be outsourced.

(1) Directive 96/82/EC (Seveso II), amended and superseded by Directive 2012/18/EU (Seveso III)

Risk management measures

• With regard to point a) above, a working group was established with ONDRAF to process the technical, legal and financial aspects of the category A waste storage solution.
• With regard to point b) above, the appeals filed against permits are closely monitored.
• With regard to point c) above relating to the accreditation of the conditioning of resins and concentrates, the program to validate the process is still underway. In the meantime, this waste is stored in tanks on the sites. The situation regarding the storage capacity and availability of waste treatment facilities remains complex. Temporary solutions have had to be developed to increase storage capacity at the two generation sites.

2.2.5.3

Risk of unavailability of one or more nuclear units for technical, security or nuclear safety reasons (**)

The risk of one or more nuclear units not being available for technical, security or nuclear safety reasons could have a negative impact on performance objectives.

The industrial performance and safety of Electrabel's nuclear facilities have improved over the 2019-2020 period and the key indicators are performing well.

The availability of the nuclear generation fleet at the end of December 2020 was 62.6%, corresponding to a production of 32.6 TWh. The availability of the nuclear generation fleet was 79% in 2019, representing a significant increase compared with 2018. The year 2020 was very specific in terms of availability with a large number of planned outages at the same time. Availability should, however, return to a high level as of 2021, barring any unforeseen incidents.

Unavailability can be caused by several factors: a/ Technical problems relating to aging facilities or the reliability of certain equipment; b/ An insufficient number of qualified operators onsite; c/ Saturation of temporary radioactive waste storage; d/ The unavailability of fuel from a supplier's plant in

Germany following legal action launched by a German citizen against the supplier's fuel export licenses for the Doel 1 and Doel 2 power plants.

Risk management measures

• With regard to point a) above, the management of the aging of the generation fleet is closely monitored.
• With regard to point b), a policy and specific measures to maintain skills have been introduced.
• With regard to point c), several procedures for the accreditation of new suppliers or additional equipment are underway with the authorities. The first accreditation has been obtained for a new container supplier and the first containers are currently being manufactured.
• With regard to point d), the Group has intervened in support of the supplier in relation to the ongoing legal proceedings.

2.2.5.4

Nuclear safety and security (*)

Since the commissioning of the first reactor in 1974, the Doel and Tihange sites in Belgium have not experienced any major nuclear safety incidents that could have resulted in danger to employees, subcontractors, the general population or theenvironment. However, they could present civil liability risks for Electrabel, specifically in the event of a nuclear accident or the discharging of large quantities of radioactive material into the environment.

Risk management measures

Electrabel has implemented an internal and industrial control system for nuclear safety and the security of facilities in accordance with the extremely high standards of the profession, which operates on several levels:

• the Safety Report establishes the control structures for the design, operating procedures and behaviors;
• safety principles are integrated into the operational management of the power plants;
• compliance with the principles is subject to managerial supervision at several levels;
• compliance with the principles is subject to controls independent of the operational organizations;
• it can be based on numerous, documented and quantified control points, as well as audits.

All individuals working at Group nuclear power plants have the appropriate qualifications and are aware of their personal responsibility with regard to nuclear safety, in particular control room operators. During operations, compliance with safety and security rules and conditions at the facilities are subject to inspection by the Belgian Federal Agency for Nuclear Control (FANC), assisted by Bel-V, its technical support subsidiary. Independent checks are also carried out by Electrabel's nuclear safety department, which reports directly to its Chief Executive Officer, independently of the line management of the nuclear power sites. In addition, both nuclear sites have OHSAS 18001 certification (the Tihange power plant has just gained ISO 45001 certification, the Doel power plant will switch to ISO 45001 in 2021), as well as ISO 14001 and EMAS certification.

Electrabel takes into account feedback and external peer reviews in order to continue to improve the safety and security of its facilities (the most severe natural disasters, risks of cyber-attack and sabotage). The terrorist risk is addressed with the competent authorities of the Belgian State.

In order to strengthen the safety culture at Doel and Tihange, Electrabel, in agreement with the FANC, has set up the CORE (COmmon REsponsibility) plan, which concerns the central functions and the two nuclear sites. The plan was successfully completed and was closed by the FANC in August 2019. The measures taken form an integral part of the management system and are monitored during management system inspections. The internal nuclear safety department, as well as the FANC and peers from WANO have all noted an improvement in terms of the safety culture within Electrabel.

2.2.6

Other operational risks

2.2.6.1

Cybersecurity (**)

The Group is continually exposed to new threats due to the use of new technologies, the multiplication of connected objects, the evolution of industrial control systems, the spread of mobility tools, cloud computing, and the development of new uses, including social networks and the in-depth analysis of data. Cyber incidents such as ransomware attacks, theft of personal or sensitive information, corruption of industrial control systems orcompromised connections with the Group's customers or suppliers could lead to blockages, delays and/or additional costs in the management of the Group's services or production networks. This could harm the Group's activities or reputation. The risk may increase as the digitization of its business lines expands and working from home becomes more popular, in particular in the context of the global pandemic.

Risk management measures

The Group continually adjusts its prevention, detection and protection measures for all of its information systems and critical data. It therefore has:

• a Security Operation Center (SOC) which is responsible for the surveillance of its networks and applications and the detection of incidents. The center intervenes on a global basis and is jointly operated with Thales;
• a Computer Emergency Response Team (CERT) which ensures the correct response to cyber attacks through the coordination of all Group entities and interaction with external cyber bodies such as the French National Agency for Information Systems Security (ANSSI);
• stringent controls for access to its internal and cloud platforms. The use of collaborative cloud-based tools, which are secured with a two-factor authentication, has allowed the Group to continue its operations during the Covid-19 pandemic without increasing its cyber risk exposure;
• devices to prevent network intrusion and to encrypt sensitive data;
• cyber-insurance cover.

To comply with the regulations (European Regulation 2016/679 on personal data protection, European Directive 2016/1148 on the security of networks and information systems), assessments are organized for the sites or applications concerned and some Group entities have taken steps to obtain ISO 27001 certification of the security of their information systems. ENGIE also works in partnership with a cyber rating agency to ensure a continuous independent review of its cybersecurity.

Major attacks are managed by a specific cyber-incident response system and a cyber-crisis management system that completes the Group's crisis management system. Sensitive system reboot exercises are carried out, to test the Group's resistance in the event of incidents such as ransomware attacks.

The organizational, functional, technical and legal security measures are subject to continuous controls that include testing (intrusion, social engineering and phishing) and campaigns to raise awareness.

2.2.6.2

Risk relating to major projects (**)

The Group bases its growth on various industrial construction projects, such as gas or electricity infrastructure for production or transportation, of which it is the owner. Among these projects are certain thermal power plants (including Fadhili in Saudi Arabia), offshore wind farms (Le Tréport and Noirmoutier in France, Moray East in the United Kingdom) - which now fall within the scope of the ENGIE-EDPR subsidiary Ocean Winds - and electrical infrastructure (Gralha Azul and Novo Estado high-voltage lines in Brazil) and a majority of medium to small projects: wind projects in Brazil, Chile, the United States, Spain, France and India, solar projects in Mexico, Saudi Arabia and India in particular, local heating or cooling networks, and urban infrastructure. The profitability of these assets depends greatly on cost control and construction deadlines, the operational performance of the industrial asset, external phenomena (e.g. naturaldisasters and strike actions), regulatory and fiscal changes and changes in the competitive environment and energy markets over the medium and long term, which could reduce the profitability of certain assets and result in lost revenues or asset impairment.

The Group is also designing and building large-scale facilities for third-party customers. Although these projects are always subject to in-depth studies and the Group has recognized expertise, construction deadlines may not always be met, resulting in penalties, construction costs may be higher than anticipated, the facilities' performance may not comply with the specifications or subsequent accidents may trigger the Group's civil, professional and/or criminal liability. This could have a negative impact on the Group's image, financial position, or earnings.

Risk management measures

The Group implements operational support for projects and their supervision and has implemented management of the portfolio of projects over €30 million - whether investment or installation type - to provide the alerts necessary to implement corrective measures. A policy on supervision of project construction and common methods on project management have reinforced existing mechanisms within the entities executing industrial projects. In addition, ENGIE continues to roll out training courses focusing on risk and contract management in projects for project managers and developers. On this basis, ENGIE has updated and improved its project risk management guide and the related tool. With the same objective of professionalizing this business line, and to complement this guide, a planning training course has also been launched.

Lastly, ENGIE implements contract management systems to proactively manage contractual relationships with its customers, partners and suppliers. In its capacity as client, the contracts entered into by ENGIE with builders include guarantee and compensation clauses covering construction defaults and manufacturer's failures relating to deadlines and the performance of the industrial assets delivered. Moreover, insurance subscription allows for insured losses to be indemnified and also improves prevention.

2.2.6.3

Acquisition and integration (**)

For the purposes of external expansion, especially by means of acquisitions, the Group may issue equity securities or have recourse to borrowing. Acquisitions present risks related to integration difficulties and failure to achieve expected benefits and synergies. Risks related to the valuation of assets or liabilities or non-achievement of expected results could arise at the end of the acquisition process, resulting in provisions for asset impairment.

Partnerships and acquisitions of equity stakes are one of the ways in which the Group can share the economic and financial risks inherent to some projects, by limiting its capitalemployed and allowing it to adapt more appropriately to the specific context of local markets. The Group strives as much as possible to protect its interests as a partner, including through the signing of shareholders' agreements, possible representation in governance (Board of Directors, management positions) and reporting. However, changes to the project, the economic situation, the partner's or the Group's strategy, and even the local political environment may, in some cases, lead to changes in the control or governance of a partnership or to disinvestment.

Risk management measures

The processes implemented by the Group for analyzing, auditing (due diligence) and structuring risks during a planned acquisition are designed to provide a more accurate assessment of the uncertainties that arise in such cases and to propose mechanisms to protect against the risks identified. The resulting risk allocation depends on the quality of the information transmitted to the Group (especially given the legal and regulatory constraints), and the outcome of the negotiation process. With regard to integration, the Group has set up a dedicated team (Integration Management Office or IMO) to develop an adapted policy and tools and to support BUs and the Corporate M&A team through the process from the development phase (before signing). The Group's integration policy has therefore been in place since January 2020. During 2020, the IMO team has provided support to around five acquisition projects. These include the acquisition of six hydroelectric power plants in Portugal, the integration of Mobisol (Germany) in the new ENGIE Energy Access entity, as well as the completion of the integration of Powerlines in Austria.

In the context of its partnerships, the Group may notably establish contractual provisions to resolve stalemates within partnerships (deadlock resolutions), exit clauses and, in the event of disputes with the partner(s), litigation resolution clauses.

2.2.6.4

Risk of malicious acts on tangible and intangible assets (*)

The Group's sites and industrial or tertiary facilities, which make up its tangible assets, may be exposed to malicious acts. Information, whether digital, physical or communicated

verbally, constitutes its intangible assets and may also be exposed to malicious acts.

Risk management measures

The Group has introduced a policy for the protection of tangible and intangible assets, covering technical (including IT), legal, managerial and organizational areas. Regarding tangible assets, sensitive sites are subject to protective measures tailored to the local situation and revised according to the threat status.

As part of the deployment of the policy for the protection of assets, the Group has introduced a system to catalog incidents to improve risk anticipation and prevention in order to limit the impact of any malicious acts.

Regarding the anticipation of threats to tangible assets, the Group provides the following for the BUs:

• permanent and comprehensive monitoring of all threats to the Group's facilities. The information collected is forwarded to the BU security officer or the relevant entities. These are responsible for taking urgent and long-term protective measures to ensure the protection of the targeted facilities;
• permanent and comprehensive "country risk" monitoring in order to anticipate the threat and adjust the level of protection measures.

In terms of data protection, the Group continuously adapts its approach with a view to:

• process any incidents reported;
• preventing any internal or external action aimed at capturing and using sensitive information.

The Group has set up a process to report malicious acts. Their analysis is included in a quarterly report and makes it possible to implement the necessary, strategic and operational prevention and mitigation measures.

2.2.7

Social and societal risks

The Group is also exposed to risks the direct financial impact of which is difficult to assess, but the non-financial impact of which is considered significant. These risks are developed in

more detail in Chapter 3 "Statement on non-financial performance and CSR information".

2.2.7.1

Risks related to human resources (**)

The Group's transformation includes major HR challenges such as the ability to adapt its skills profile and to unite employees around its business plan.

Two major events stood out in 2020 that had a significant impact on HR risks:

• the global public health crisis that may increase psychosocial risks due to partial unemployment and remote working;
• the Group's strategic refocusing (see Section 1.2.2 "The strategic acceleration in 2020"), which could undermine employee engagement and lead to a decline in the social climate during a period of uncertainty surrounding the specific organization goals and their social consequences.

Skills

The adaptation of skills is a recurring topic due to a chronic shortage of technicians in the service professions and skill requirements in digital or data-related professions.

In terms of recruitment, the Group pays close attention to the following two risks:

• difficulties in finding candidates for apprenticeships due to a shortage of technical-related profiles despite ENGIE being prepared to invest in young people and promote apprenticeships as a route to excellence to access the professions of the future;

• difficulties in finding a sufficient number of women that are trained in the Group's field on the employment market which presents a risk of not reaching ENGIE's ambitious non-financial objectives relating to social responsibility.

The Group is also faced with redeployment challenges due to a decline in business following regulatory decisions (Belgium's progressive exit from nuclear power, the end of gas sales at regulated tariffs in France in 2023) or in the event of an economic crisis due to the current public health crisis.

Engagement of employees

Given the scale and speed of the Group's transformation, it needs to support managers and employees to give meaning to the changes and promote buy-in.

Risk of social movements

The major organizational changes that the Group and its entities must undergo in the context of the transformation may be misunderstood or anxiety-provoking and may result in rejection or blockages.

Reactions by social representatives demonstrate that they are very receptive to being involved in discussions regarding changes relating to the public health crisis (homeworking for example) and the economic impact on employment.

Risk management measures

Skills

(see Section 3.4.2.1 "Hiring and the employer brand"and Section 3.4.3 "Human Resources development policies")

• The ENGIE Skills approach provides an annual general overview of the evolution of the Métiers and the Group's skills requirement. This system is closely linked to the two other drivers of HR support for transformation, which are ENGIE Mobility (for France and Belgium) to stimulate the internal job market and ENGIE Schools, the Group's internal international network of business schools.
• In response to the structural labor shortage and to build a skills pool, the Group is currently setting up an ambitious program to host work-study students and has set a target of these students accounting for 10% of the workforce.
• In support of its gender equality ambition, ENGIE has set a Tier 1 non-financial objective aimed at achieving a rate of 50% of women in management positions. For this purpose, it has launched the fifty-fifty project aimed at creating the conditions necessary to reach this managerial parity.

Engagement of employees

(see Section 3.4.2.2 "The employee's commitment to the Group's strategy")

• In October 2020, the Group carried out its "ENGIE&Me" commitment survey for the fifth consecutive year. Circulated among Group employees across the globe, excluding regulated entities, this survey provided them with the opportunity to express their opinion on the key aspects of employee commitment. The main strengths of the Group highlighted by the survey are adherence to ENGIE's goals and objectives in the move towards carbon neutrality (+13 points) and the sustainable engagement index (+3 points).
• By communicating regularly about innovation, new business models, and other topics related to the transformation, the Group is fostering discussions with its staff in order to strengthen engagement.
• With the "ENGIE Leadership Way", ENGIE promotes managerial behaviors that encourage innovation and the development of employees and has also implemented a new policy of recognition of experts essential for its competitiveness.
• The Group continued to extend the community of technical ambassadors set up at the end of 2018. The Communau'Tech now has 300 French and 50 Italian members.
• In 2020, ENGIE launched ExpAND, a program that identifies and recognizes Group experts, develops expertise communities and makes ExpANDers ENGIE ambassadors both within and outside the Group.

Risk of social movements

(see Section 3.4.6 "Social Dialog")

• Within national and European representative bodies and through national, European and global collective agreements, ENGIE associates its social partners with the implementation of its social ambition.

2.2.7.2 Ethical risks (**)

The main risks identified are: corruption, violations of human rights, non-compliance with competition and/or embargo rules, fraud, and breaches of personal data (privacy). Any breach of the ethical principles of the Group could constitute a legal, judicial and reputational risk (see Note 25 of Section 6.2.2 "Notes to the consolidated financial statements").

Risk management measures

In order to prevent the occurrence of such risks, ethical compliance policies and procedures are rolled out throughout the Group and apply to all of the controlled entities. The Ethics, Compliance & Privacy Department promotes their generalized implementation within the Group, relying on management, the network of Ethics & Compliance Officers and Data Protection Managers, as well as on employee training. They contribute to compliance with the Sapin II and Duty of Vigilance laws as well as with European Regulation 2016/679 on personal data protection.

Ethical and non-compliance risks are analyzed annually and action plans are implemented if necessary. Moreover, risks relating to corruption and human rights/duty of vigilance are specifically assessed as part of the Group's risk analysis process (see Section 3.8 "Ethics and compliance").

In addition, the policy on the analysis of ethical risks relating to investment projects and major contracts and the human rights guidelines applicable to the whole Group require the entities to analyze corruption risks and human rights risks for every new project.

Finally, the Group obtained ISO 37001 certification in 2018: the certification audit was followed by a two-year surveillance program (2019-2020); these two surveillance audits were successfully validated. This certification provides a guarantee of the Group's Ethics and Compliance system.

2.2.7.3

Reputational risk (**)

The energy sector is the subject of various public debates due to the profound changes that it is undergoing.

The Group is exposed to reputational risk, both directly and indirectly, especially when the Group's values, ethics,operational excellence or legitimacy as an operator are called into question. Damage to the Group's reputation could have an impact on its business and its ability to win new contracts.

Risk management measures

As a vital part of the Group's intangible corporate assets, the "ENGIE" brand (registered in more than 100 countries) is constantly monitored to protect it against any fraudulent use that could harm the Group's image.

Through its policies, organization, procedures and governance, the Group endeavors to prevent operational risks (see Sections 2.2.6 "Industrial risks" and 2.2.7 "Other operational risks") and smear campaigns that could affect its reputation (see Section 3.3.2 "Main societal risks").

The Group uses external monitoring to record disputes, including those on social networks, where its name is mentioned, in order to identify and deal with any problems at the source.

2.2.7.4

Security of people (**)

The international scope of the Group means that some employees and other parties such as subcontractors may be exposed to health and security risks. This threat is managed via a specific organization that includes a "country watch". The Group's activities in regions where political, economic or social instability is considerable carry risks to the security of certain employees. Sensitive countries for the Group include

Peru, Colombia, Mexico, Indonesia and the Philippines. Risks relating to terrorism targeting the French community and its interests have never been considered as high as they are currently. Terrorist attacks in France and violent protest against France in certain countries are among the factors weighing on the security of employees.

Risk management measures

Wherever it operates, the Group continually assesses the risks related to security: terrorism, armed conflict, political or social unrest, organized or ordinary crime and, more generally, the occurrence of "unconventional" situations.

Geographic areas are subject to classification that corresponds to specific prevention and protection measures. To accomplish this mission, the Group relies on State services as well as specialized providers.

Measures are implemented across all BUs led by the Group's Security Department. For example, the following have been rolled out:

• tools to provide training and information, monitoring and assistance to employees;
• an alert, analysis and prevention system that is constantly updated by specialized and recognized providers. The Group works in partnership with these providers to manage security and health risks.

2.2.7.5

Health and safety at work (*)

The Group is committed to eradicating serious accidents and continuing to reduce occupational accidents among its employees, subcontractors and temporary workers, to improving well-being at work and to preventing psychosocial risks.

The Group has identified a specific risk of employees focusing on Covid-19 protection measures to the detriment of rules aimed at managing other health and safety risks. To counteract this potential decline in vigilance, a specific communication campaign was run.

Furthermore, the pandemic may give rise to a significant increase in psychosocial risks for certain employees due to several factors: social distancing and even isolation, particularly with work from home measures, fear of contamination for themselves and their loved ones, and fewer interactions with management as a result of new working conditions.

Risk management measures

The Group health and safety policy was agreed with the union federations at European level and subsequently worldwide. This policy is broken down into multi-year action plans. In 2020, the 2016-2020 action plan was implemented, and the 2021-2025 was drafted. It includes a specific action program called "No Life at Risk", "No mind at risk", "No asset at risk". This program is intended to continue to improve results and develop a culture of safety, commitment and vigilance among all individuals to protect their lives and those of others. The provisions introduced are described in Section 3.4.8 "Health and safety policy".

In 2020, the BUs relied on four commitment drivers to strengthen the safety culture and guide the practices and behaviors of every individual:

• the leadership of managers: improve the accountability of all managers when taking into account health and safety risks;
• risk anticipation by prioritizing the identification and management of events with high potential of severity (called "HiPo");
• the integration of newly-acquired companies by rapidly bringing them up to Group standards;
• acculturation, by sharing our health and safety culture with all our employees and all our subcontractors.

The Group is determined to take care of the physical and mental well-being of all its employees who constitute its main strategic resource. In 2020, this ambition was concretized by the following measures:

• establishing diagnostic testing using social climate barometers and surveys;
• during the pandemic, surveys aimed at assessing, in particular, employees' well-being at work;
• the development of training for managers on the prevention of psychosocial risks;
• the provision of assistance tools to employees (via dedicated telephone lines);
• the implementation of awareness and prevention campaigns.

Measures taken to manage the Covid-19 pandemic are described in Section 3.9 "Vigilance plan (synthesis)".

2.3

Internal control procedures

2.3.1

Internal control definitions and objectives

2.3.1.1

Internal control standard

ENGIE's internal control is based on the COSO II model of the Committee of Sponsoring Organizations of the Treadway Commission and the AMF reference framework. It includes five components: control environment, risk assessment, control activities, information and communication, and monitoring activities.

2.3.1.2

Internal control objectives

ENGIE's internal control aims to provide reasonable assurance that the following objectives are being met: compliance with laws and regulations, reliability of accounting and financial information, and effectiveness and efficiency of operations. Internal control is adapts to changes in the Group's organization and businesses and contributes to the rolling out of its strategy.

2.3.1.3

Internal control limits

Internal control cannot provide absolute assurance, particularly due to possible dysfunctions relating to error or human failure and arbitrage between the costs relating to the potential occurrence of a risk and the cost of the measures designed to prevent it.

2.3.1.4

INCOME program

Each year, ENGIE updates the scope of the most significant controlled entities on the basis of financial materiality and an analysis of risks. Thanks to the Group's Internal COntrol over Management Efficiency or INCOME program, ENGIE monitored 188 entities in 2020.

2.3.2

Internal control organization and stakeholders

2.3.2.1

Organization of internal control

The organization of internal control complies with the principles of the Group's organization, including decentralization, autonomy and the accountability of managers. In the context of the authorities delegated by the Chief Executive Officer, each manager is responsible for implementing and overseeing an internal control system thatconforms to the regulatory framework. The Internal Control Department reports to the Finance Department and is responsible for leading and coordinating the Group's internal control system. It updates the standard, methodology and information system which centralizes the assessments of the system's effectiveness.

2.3.2.2 2.3.2.2.1

Elements of the general compliance framework

Ethics and compliance

In line with its values and its undertakings, ENGIE aims to act in compliance with the laws and regulations in force in the countries where it operates in all circumstances. To this end, the Group has established an ethics policy that guides its strategic decisions, management and professional practices. It also has the necessary tools to measure compliance with this undertaking (see Section 3.8 "Ethics and compliance").

2.3.2.2.2

Recruitment, training and skills management

The quality, commitment and skills of its employees are necessary conditions for the management of the Group's operations. In accordance with the CSR and diversity policies, recruitment, training and talent management contribute to the internal control system. They help ensure the required level of skill in all areas, in particular those requiring specific expertise (see Section 3.4 "Social information").

2.3.2.2.3

Information systems

The IT solutions strategy, policies and standards are defined by the Group Digital and Information Systems Department. The security of information systems of the sectors and central functions of the Group is the responsibility of the corresponding functional departments, in accordance with these policies and standards. The BUs are responsible for the security of their Information Systems under the supervision of the Group Digital and Information Systems Department. The industrial control systems (ICS), under the joint control of the Global CareDepartment and the Group Digital and Information Systems Department, which coordinates the technical actions to secure their connection to the cybersecurity supervision platform of the Global Security Operations Center.

Important subjects for internal control, such as the segregation of duties and the management of access rights, are taken into account during the design stage of new information systems and regularly reviewed thereafter. The IT managers of the BUs are responsible for the information system recovery plans, while the BU's information systems security officers are responsible for cybersecurity.

2.3.2.2.4

Internal policies and standards

All the decisions, standards and procedures issued by corporate defining the Group's methods of operation are available on its intranet. The Finance Department provides the procedures and rules intended to ensure the reliability of the accounting and financial information applicable to the Group's entities. The Internal Control Department provides Group employees with access to 61 standards covering business, support and global processes (for example sales, procurement, payroll, information systems, accounting, taxes, cash management, etc.). Each standard details the intrinsic risks and the key controls designed to manage them. The Internal Control Department provides all entities with methodological guides relating to the definition, assessment and coordination of an internal control system adapted to the nature of their activities. It updates and shares best practice on subjects such as the segregation of duties, the role of directors and data protection.

2.3.2.3

The system's stakeholders

The stakeholders and their respective roles are presented according to a management model with three lines, overseen by ENGIE's governance bodies.

2.3.2.3.1

The Group's governance bodies

The Board of Directors ensures the correct functioning of the Group's internal control. The Executive Committee defines the organization and responsibilities of managers and ensures compliance with the delegations of authorities. An annual review of internal control is submitted to the Executive Committee and the Audit Committee.

2.3.2.3.2

First line of management

The operational managers, who are responsible for the internal control of their organizations, constitute a key element of the system. They ensure that control activities are implemented, analyze the results, correct any deficiencies and endeavor to improve the efficiency of their system.

The Management Committees of the BUs and entities are responsible for establishing and overseeing the internal control covering the scope of their activities. They play a vital role in the quality of the control environment: promoting Group values, defining the organization, assessing results, etc.

2.3.2.3.3

Second line of management

This line of management is organized into sectors, overseen by the Group's corporate departments.

The Finance Department carries out internal accounting and financial control (see Section 2.3.3 below). Within this department, the Insurance division is involved in risk identification, loss prevention, and the definition and implementation of hedging strategies.

The General Secretariat helps to make the Group's operations and the decisions of its managers legally secure, particularly in the following areas: commitments, litigation, arbitration, studies and actions to protect the criminal liability of the Group and its managers, embargo, company law, financial and stock market regulation, intellectual property law, competition law and regulation and financial law.

Within the General Secretariat, the Legal, Ethics, Compliance and Privacy Department is responsible for overseeing the legal and ethics lines, which are tasked with managing legalities with respect to the Group's activities and ensuring compliance with the Group's ethical principles.

The Societal Responsibility Department is responsible for compliance with environmental laws and regulations throughout ENGIE. It assesses the environmental maturity of the Group's various businesses and is in charge of regulatory environmental reporting.

The Internal Control Department coordinates the implementation of the internal control policy approved by the Executive committee. It coordinates a network of representatives who are in charge, under the responsibility of the managers of the entities, of guiding internal control. It monitors and anticipates regulatory and Group developments to adapt the relevant procedures. It organizes training and information sessions.

2.3.2.3.4

Third line of management: the Internal Audit Department

Reporting to the Chief Executive Officer, the Audit Department operates throughout the Group in accordance with an annual plan based on risk analysis and interviews with the operational managers. This plan may be expanded at the request of the Executive Committee according to the Group's priorities. Submitted for approval to the Audit Committee, the plan is designed to cover all of the entities and enables the quality of the business control and management environment to be checked.

Internal Audit helps review the reliability of the self-assessments of controls carried out under the INCOME program and the internal control of operational and financial processes. Internal Audit presents its conclusions to the managers of the BUs and entities. It reports to the Executive Committee and Audit Committee on its key observations and the progress of related action plans. It meets with the Statutory Auditors to share internal control analyses.

2.3.3

Internal control relating to financial information

2.3.3.1

Organization and stakeholders

The Group Accounting Department is in charge of financial reporting, preparing the parent company financial statements of ENGIE, producing the consolidated financial statements, and liaising with the Statutory auditors and the accounting departments of the AMF. It establishes the Group's accounting principles and oversees their implementation to ensure compliance with the accounting standards.

It monitors the evolution of standards and their impact on the Group's financial statements and adapts the principles accordingly. Within the Group Accounting Department, the Group Consolidations Department and the Accounting Standards Department optimize the handling and resolution of complex technical problems. These departments strengthen the quality and standardization of the analyses performed and the positions taken.

The Enterprise Performance Management Department is tasked with establishing the analyses and reports required by the Executive Committee for the economic and financial coordination of the Group. It draws up and maintains the Group's management control toolkit and oversees the rolling out of these toolkits to the various entities. It guides the Management Control sector in defining and implementing processes and tools. It coordinates the Group's performance program.

The IT Solutions Department Finance Sector is a centralized activity at the corporate level that is responsible for the IS strategy of the Finance Function and for the determination and coordination of the IT solutions policies, rules and standards applicable to the sector. Applications and infrastructure are distributed to the BUs and Métiers in accordance with the policies defined by corporate. The IT Solutions Department Finance Sector oversees the implementation of the Group's IS security policy within the sector and monitors and plans IS spending and investments. The consolidated reporting entities all use the SAP software package "Business Objects Financial Consolidation" for the consolidation of the Group's financial statements and management reporting. This application is jointly managed by the Accounting IT Center of Expertise (which handles administrative tasks and system configuration and provides operating assistance to users) and the Information Systems Department, which is in charge of specific underlying infrastructures.

2.3.3.1.4 The Group Tax Department is responsible for defining and rolling out the Group's tax policy. It coordinates the validation of tax returns and transfer pricing documentation and ensures that tax data are uniformly reported. The Group Tax Department is hierarchically responsible for all tax activities. Generally speaking, it is closely supported by the Finance Departments of the BUs, which assume responsibility for tax in terms of compliance and transparency.

2.3.3.1.5 The Investor Relations Department is in charge of relations with institutional investors and analysts. With regard to management information, the Management Control sector of corporate is the Investor Relations Department's only source of information. Other information arising from the legal reporting process, that is classed as regulated information pursuant to AMF rules, is provided by the Group Accounting Department. Lastly, the department oversees and coordinates the process of market communication (financial information and information on major transactions) in collaboration with the General Secretariat.

Through the functional lines, all of these corporate departments oversee the internal control of their respective fields via the Finance Departments of the BUs. These Finance Departments are responsible for producing the separate financial statements of the legal entities and converting them according to IFRS. The consolidation of this data converted according to IFRS standards is carried out by Corporate as well as the implementation of internal control procedures at all operating subsidiaries and the decentralized management control (see Section 2.3.3.3 "Setting objectives and coordination").

The Finance Department also uses the current "Missions and operating principles of financial communication" procedure, which sets out management principles for the Group's financial communication and defines its activities relating to investor and analyst relations as well as market intelligence.

2.3.3.2

Consolidation process

The Group Accounting Department is in charge of producing the consolidated financial statements. It is supported in this task by the BUs' Enterprise Performance Management and management reporting teams. It updates the accounting principles manual and closing instructions shared before the consolidation phases.

Each of these entities carries out controls in its own area of responsibility to ensure that Group accounting standards and policies have been circulated and applied correctly. Corporateimplements second-tier controls of information prepared by the BUs, which do the same regarding data provided by the reporting entities.

The CEO and CFO of BUs attest to the quality and comprehensiveness of the financial information provided to the Group in a representation letter. Discussions with the Statutory Auditors enhance the quality of financial information, particularly in the case of complex situations that are open to interpretation.

2.3.3.3

Setting objectives and coordination

Every year, each of the Group's BUs produces an Medium Term Business Plan (MTBP), a budget and budget re-estimates. The Enterprise Performance Management Department, prepares instructions for this purpose for each BU, including details such as macroeconomic hypotheses, financial and non-financial indicators, the timetable and the segmentation of the scope of activity. Each BU is responsible for sending these instructions to the subsidiaries and reporting entities within its scope after tailoring them to the specific characteristics of its business activity.

The Executive Committee approves for each BU the objectives set for the following year, the corresponding budget and the outlook beyond the current year derived from the budget process and the Medium-Term Business Plan (MTBP). The testing process for the impairment of goodwill and long-term assets is based on this data. The Group's consolidated budget and MTBP are presented to the Audit Committee and the Strategy, Investment and Technology Committee before being submitted to the Board of Directors.

2.3.4

Formalization and coordination of internal control

Within the scope of the INCOME program, the operational managers oversee the implementation of the control activities of their processes, assess their results and rectify weaknesses detected. They carry out a self-assessment of key controls, with the support of internal control within the entities. Internal Audit, for its part, reviews the quality of these self-assessments and the general control environment. Outside the scope of the INCOME program, internal control toolkits and a specific questionnaire are provided to the entities. These enable sensitive areas to be covered, such as the separation of tasks and the protection of assets.

The Group also implements a system of commitment involving the managers of the BUs and the main Corporate Departments concerning the establishment, oversight and effectiveness of an internal control system covering their organizations. Each year, meetings take place between the Internal Control Department and the Statutory Auditors in order to share analyses of the quality of the existing systems and to identify action plans to rectify weaknesses detected.

2.3.5

Recent actions to strengthen the system

In 2019, the Internal Control Department updated the Group's internal control policy which was approved by the Chief Executive Officer. One of the new priorities is the automation ofcontrol activities. The Highbond project was launched for this purpose and continued to be rolled out, beginning with controls delegated by the BUs to GBS.

Non-Financial Statement and CSR information

3.1 Corporate Social Responsibility 66

3.6

Societal information 105

3.1.1CSR policy and governance 66

3.6.1 Dialogue with stakeholders

3.1.22030 CSR objectives 66

and partnerships 106

3.1.3Climate trajectory (related to the recommendations of the TCFD: Task Force on Climate-related
3.6.2 Combating fuel poverty 106
3.6.3 Just transition 107
Financial Disclosures) 67
3.7 Purchasing, subcontracting
3.1.4Science Based Targets certification
and suppliers 108
and carbon neutrality 68

3.8 Ethics and compliance 109

3.2 Business model 69
3.8.1 Ethics and compliance governance 109
3.3 Analysis of main CSR risks and challenges 71
3.8.2 Risk assessment 109
3.8.3 Reference texts 109
3.3.1Main environmental risks 76
3.8.4 Whistleblowing and reporting
3.3.2Main societal risks 78
of ethics incidents 110
3.3.3Main social risks 79
3.8.5 Training and awareness 110
3.3.4Main governance risks 81

3.8.6 Controls and certifications 111

3.4 Social information 82

3.9 Vigilance Plan (synthesis) 111

3.4.1Social data 83

3.9.1 Identification and management of the risks of serious harm to

3.4.2Attraction, hiring
individuals and the environment 111
and retention of talent 84
3.9.2 Third-party assessment 114
3.4.3Human resources
development policies 86
- 3.9.3 Alert mechanism
  and collection of alerts 114
3.4.4Social commitment: a company committed to corporate citizenship
and solidarity 88
- 3.9.4 Steering, governance and follow-up of the deployment
  of the plan 114
3.4.5Remuneration, social protection, employee savings plans,
- 3.10 Report by one of the Statutory
and employee shareholding 91

3.4.6Social dialogue 92

Auditors, appointed as independent third party, on the consolidated
3.4.7Note on the calculation method
non financial statement 115
for social indicators 93
3.4.8Health and safety policy 94
3.5 Environmental information 97
3.11 Statutory auditors' reasonable assurance report on selected social, environmental and governance
information 117

3.5.1Legal and regulatory framework 97

3.5.2Environmental management 97

3.5.3Performance control

and measurement systems,

a prerequisite for environmental

responsibility 98

3.5.4 Group actions 100

French ordinance 2017-1180 dated July 19, 2017 and French Decree 2017-1265 dated August 9, 2017 transposed European directive 2014/95/EU, also called the non-financial reporting directive (NFRD), as regards disclosure of CSR information by companies via the Non-Financial Statement (NFS), thus amending Article 225 of the French Commercial Code, which required companies to incorporate their social, environmental and societal information into their management reports.

Pursuant to this legislation, the ENGIE Group's NFS comprises the following elements:

• a description of the Group's activities presented in a summary form by major business segment in Section 3.2

"Business model", and in a detailed form in Section 1.6 "Description of the Group's activities";

• an analysis of the CSR risks relating to the areas referred to in the NFRD Directive, detailed in Section 3.3 "Analysis of the main CSR risks and challenges";
• a presentation of the governance of CSR performance in Section 3.1 "Corporate Social Responsibility", together with: the Board of Directors' diversity policy, described in Section 4 "Corporate Governance", the Vigilance Plan described in Section 3.9 "Vigilance Plan (synthesis)", and the rules of ethics described in Section 3.8 "Ethics and compliance".

3.1

Corporate Social Responsibility

The fundamental principles of Corporate Social Responsibility are elaborated on in the Group's purpose statement and enshrined in the Group's bylaws.

Rethinking the global energy landscape has today become a necessity in the face of global warming.

The urgent need to reduce environmental impacts means that we have to establish a lower-carbon, more decentralized, more digitized and more pared-back energy system. The Group's societal approach is fueled by its quest for positive impacts on the planet.

3.1.1

CSR policy and governance

ENGIE's Corporate Social Responsibility (CSR) policy sets out the Group's CSR priorities and commitments to bring together everyone's skills, create shared value for all its stakeholders and contribute to the achievement of the Sustainable Development Goals defined by the United Nations. By acting for a positive impact on people and the planet, the Group contributes to ensuring its leadership, over the long term, as a benchmark player in energy transition and related services beyond energy. This policy is detailed in Section 1.5.1.

The Corporate Societal Responsibility Department (CSR Department) is supported by a network comprising a Chief Sustainability Officer and an Environmental Officer for each BU. To engage employees as widely as possible on these subjects, the CSR Department also has an internal network of global CSR ambassadors.

The CSR Department provides regular presentations on the latest CSR topics (Science-Based Targets, Task Force on Climate-related Financial Disclosures, CSR commitments, discussions with civil society) and an annual report (CSR ratings, CSR objectives, the environmental and societal actions of the Group and the BUs) to the Ethics, Environment and Sustainable Development Committee (EESDC).

The CSR Department jointly chairs the Green Financing Committee with the Finance Department, overseeing projects likely to be financed by green bonds regularly issued on the market by the Group. It also jointly chairs the Duty of Vigilance Committee.

The CSR Department regularly meets with a range of stakeholders (NGOs, investors, rating agencies, clients, opinion leaders, and experts), and organizes panels and discussion forums to work on the sustainability of offerings, projects and services related to the Group's operations. The Group regularly holds training courses on sustainable development and stakeholder engagement for its employees.

Each year, at its Shareholders' Meeting, Engie publishes an integrated report on its overall financial, environmental, social and societal performance, which it discusses in advance with its main stakeholders.

The CSR Department has also launched a project to ensure the roll-out and proper implementation of the purpose. Initially based on a detailed analysis of the purpose in order to clarify what it means - particularly the concept of a positive impact, tools are being developed to facilitate this roll-out: long-term CSR goals, an internal taxonomy, a compatibility tool and an integrated reporting process. The CSR Department has joined forces with other departments to develop these tools and roll them out to the teams, updating the Group's major processes by incorporating the purpose within them. All of this work is designed to ensure that the decisions made are consistent with ENGIE's new purpose.

3.1.2

2030 CSR objectives

In 2020, the Group has set itself 19 CSR 2030 objectives in line with its purpose and its new strategic orientations.

Each objective has an Executive Committee member as a sponsor and a manager who works in partnership with the functional line concerned to take the necessary action to achieve it.

The 2020 results of the eight key CSR objectives (referred to as Tier 1) are presented in Section 1.5.3 of this document.

3.1 Corporate Social Responsibility

3.1.3

Climate trajectory (related to the recommendations of the TCFD: Task Force on Climate-related Financial Disclosures)

3.1.3.1

Governance

The Ethics, Environment and Sustainable Development Committee (EESDC) studies and decides on climate-related issues and in particular points concerning the implementation of TCFD recommendations, decarbonization objectives and climate policy. This role was confirmed by its inclusion in the Internal Regulations of the Board of Directors in 2019.

In order to fulfill this mission, the EESDC relies on an annual climate assessment, an analysis of climate-related risks and opportunities, as well as other more specific elements (e.g. progress on the adaptation plan). These reports are prepared by the CSR Department, which also includes a chapter dedicated to climate change in its CSR reporting to the EESDC.

The CSR Department leads a committee to monitor and manage the Group's decarbonization objectives, and a committee to monitor and implement TCFD recommendations. The Group has also set up training modules for directors so that they can ensure that they have sufficient skills to fulfill their roles. The climate is one of the training topics.

The CSR Department also makes proposals to the Appointments, Compensation and Governance Committee on the criteria for compensating the Chief Executive Officer in relation to ENGIE's main non-financial challenges. The Group's GHG performance is one of these.

3.1.3.2

Strategy

In line with its purpose, contributing to the decarbonation of the economy is at the heart of the Group's strategy.

It also takes the form of medium- to long-term commitments to a GHG emissions trajectory compatible with the Paris Agreement (SBT certification) (see Section 3.1.4). In order to define its commitments, the Group has studied the resilience of its business model by comparing it to different decarbonation scenarios (work undertaken as part of the ENGIE adaptation process), and by varying the assumptions for the development of its activities.

These commitments are already reflected in the Group's processes: for example, the allocation of a carbon budget to the main businesses as well as a revision of the investment framework memorandum.

3.1.3.3

Risk management

Climate change entails risks for the Group:

• The transition risks to which the Group is exposed mainly result from the strengthening of emissions regulations and decarbonization policies, changes in market and consumer behavior, and technological developments.
The Group has been setting itself greenhouse gas emissions targets since 2012, Since the Paris Climate Agreement was signed in 2015, the Group has reduced its direct emissions by almost 60%. It has set ambitious new goals for 2030 - certified by SBTi.
As well as the emissions of its own industrial assets, the Group acts throughout its value chain, including suppliers, work practices, and support for customers as they decarbonize their footprint.

Moreover, climate change brings new opportunities: it strongly encourages the development of new technologies and solutions, which also are opportunities for the Group, particularly in terms of:

• strong development of renewable power and gas that is more energy efficient (e.g. heating and cooling networks);
• more offers of decarbonization support and solutions for our customers.

• Physical risks are inherent in the assets and activities of the Group that might be exposed to the impacts of climate change. The collaboration of the CSR Department with the Group's operating entities has made it possible to identify the climate indicators that affect our activities (rising temperatures, floods, droughts, wind, and heat waves). The Group has also forged a partnership with the Pierre Simon Laplace Institute to obtain climate change data for the periods to 2030 and 2050.
In addition to risk management, insurance coverage and short-term continuity plans, a plan to adapt our high-risk assets for 2030 and 2050 is being drafted.

3.1.3.4

Indicators and targets

ENGIE has a robust panel of KPIs that enable it to measure its carbon footprint with all the desired level of detail. These indicators allow it to very precisely control changes in its GHG emissions.

The results of the decarbonization targets are shown in Section

3.1.4

Science Based Targets certification and carbon neutrality

The Science Based Targets (SBT) initiative aims to encourage companies to take ambitious climate action by validating the compliance of their forecast chronicles of CO2 eq emissions with the commitments of the Paris Agreement.

Mindful of its environmental responsibility, Engie submitted at the end of 2019 a request for certification of its CO2 eq emissions to the +2°C commitments of the Paris Agreement. It obtained this certification in February 2020.

For this, the Group is engaged on two points:

• reduce the carbon intensity of its electricity production (scopes 1 and 3) by 52% by 2030 compared to 2017;
• reduce emissions from the use of products sold (scope 3) by 34% by 2030 compared to 2017.

This certification demonstrates ENGIE's aim of becoming a major player in the energy transition to a carbon neutral world.

As well as analyzing the potential GHG emissions trajectories resulting from the SBT commitment, ENGIE has launched a project dedicated to Carbon Neutrality. This work has mobilized many of the Group's entities and has focused on all the components of decarbonization, including emissions from industrial assets, emissions generated by employee activity, and impacts on the value chain, i.e. on all of the Group's scope 1, 2 and 3 emissions.

ENGIE has also developed a method for assessing its contribution to the avoided emissions of its customers, which it plans to share so that the approach can be standardized. ENGIE is committed to ending its coal activity in 2025 for Europe and in 2027 for the rest of the world for all its coal assets.

This exit from coal is achieved through conversions, disposals or plant closures. If the closure of a coal-fired power plant is indeed preferable to its disposal from an environmental point of view alone, its implementation faces two limits: ENGIE is almost never the sole decision-maker in this matter and closure is often impossible when the coal plant contributes to the energy security of a State.

Finally, when ENGIE decides to sell a coal-fired power plant, it always chooses the purchasing partner taking into account CSR considerations. The proceeds from the sale also enable the Group to finance the development of renewable capacities that are beneficial to the climate.

Concerning natural gas, the Group's ambition is to gradually replace fossil gas by green gas through the development of biomethane and green hydrogen.

3.2 Business model

3.2

Business model

The acceleration of the energy transition is shifting the sector's value towards more environmentally-friendly activities and services that are closer to the end customer. It has also created a need to provide responses tailored to each region, incorporating a good understanding of local situations and resources. ENGIE is involved in raising awareness of, and co-constructing, the energy transition with its stakeholders.

The Group's activities, detailed in Section 1.6 "Description of the Group's activities", can be represented as follows:

Renewables (€1.6 billion i.e. 17% EBITDA)

• 10.1 GW
• No. 1 onshore wind producer in France
• Activities under PPA

• 3.1 GW
• No. 1 producer in France
• Activities under PPA

• 0.3 GW
• No. 1 producer in France
• Activities under PPA

• 17.9 GW (hors pumped storage: 3.3 GW)
• No. 1 producer in France
• Activities under PPA

Wind

Solar

Infrastructure (€3.9 billion i.e. 42% EBITDA)

Biogas/BiomassHydropower

• Brands: GRTgaz and Elengy (France),
Transmission
gas transmission subsidiaries in Germany, Mexico, TAG (Brazil, Gralha Azul (Brazil), etc.
• Positioning: No. 1 transporter in France and No. 2 in Europe - through independent subsidiaries, No. 1 terminals operator in France and No. 2 in Europe
Storage
Distribution
• Activities: Management of lines of transmission, electricity and gas

• Brands: Storengy France,
Storengy Deutschland, Storengy UK
• Positioning: Leader in underground gas storage in Europe
• Storage activities regulated in France, competitive in the UK and Germany

Stockage

Client Solutions (€1.2 billion i.e. 13% EBITDA)

• Brands: GRDF (France), Distrigaz (Romania), Engie MaxiGas (Mexico), Turkey, Argentina, Thailand
• No. 1 natural gas distribution network in Europe - through independent subsidiaries
• Most activities regulated

• Brands: ENGIE Solutions in France, outside France: ENGIE Cofely, ENGIE Axima, ENGIE Ineo, ENDEL ENGIE, and TRACTEBEL
Cities and Communities
• Employees
• Positioning:
- • No. 1 global operator of cooling networks
- • 350 heating and cooling networks in 20 countries
- • No. 4 operator of heating networks (in TWh)
- • No. 2 global provider of EV charging points
• Activities: Management of urban power networks, green mobility (NGV, hydrogen), Smart city: Solutions for cities (1.5 million public lighting points, video surveillance)

IndustriesTertiary

Thermal: (€1.6 billion i.e. 17% EBITDA)

• 52.5 GW
• Major presence in the Middle East (30.1 GW)

• Activities under PPA

• 4.3 GW
• Withdrawal in progress

Natural gas

• Brands: ENGIE Solutions in France, outside France: ENGIE Cofely, ENGIE Axima, ENGIE Ineo, ENDEL ENGIE, and TRACTEBEL
• Employees
• Positioning:
- • No. 1 provider of energy ef ciency services
- • No. 2 facility provider in Europe
- • Leader in solar units for industrial and commercial customers
• Activities: Decentralized energy generation, Adigital systems and platforms

• Brands: ENGIE Solutions in France , outside France: ENGIE Cofely, ENGIE Axima, ENGIE Ineo, ENDEL ENGIE, and TRACTEBEL
• Employees
• Positioning:
- • No. 1 provider of energy ef ciency services
• Activities: Smart building management, facilities management, digital systems and platforms

Other activities (€1.0 billion i.e. 11% EBITDA)

Coal

BtoC customers

• Brand: ENGIE	• 6.2 GW	• Supply and management
• 24 M contracts o/w	• No. 1 producer	of gas assets
11 M in France	in Belgium	• Management
• 126 TWh of gas	• Activities under PPA	and development
sales and 36 TWh	of electricity assets
of electricity sales	• Energy supply
• No. 1 French provider	• 8 trading platforms
of natural gas	• Commercial activities
in more than 50 countries

NuclearEnergy supply

Non-Financial Statement and CSR information 3 3.2 Business model

The Group's four segments of activity (Renewables, Networks, Client Solutions, and Thermal) and Other activities utilize capital or resources of different kinds and create value according to five areas, as shown below. This presentation covers the International Integrated Reporting Council (IIRC) principles.

Value creation for ENGIE

RESOURCES

Financial capital equity capital, borrowed capital, etc...

See Section 6.2 "Consolidated nancial statements"

Industrial capital industrial assets, capital expenditure, expenditure on development and maintenance, etc... See Section 6.2 "Consolidated nancial statements"

Intellectual capital workforce and expenditure on R&D and innovation, etc... See Section 1.3 "Innovation and R&D"

Human capital workforce, expenditure on staff and training etc...

See Section 3.4 "Social Information"

Societal Capital stakeholders mobilized internally and externally, etc...

See Section 3.6 "Societal Information"

Natural Capital volumes of and expenditure on purchasing raw materials, other supplies, expenditure relating to environmental preservation, etc...

See Sections 3.5 "Environmental Information"

and 3.7 "Purchasing, subcontracting and suppliers"

BUSINESS MODEL

RenewablesNetworksCustomers SolutionsThermalOther activities

VALUE CREATION

A sustainable energy transition

Renewable power generation capacities, proportion of renewable energy in the portfolio, waste recycling rate, rate of reduction of CO2 emissions and other pollutants, % of power generation sites with an environmental plan agreed with the stakeholders, etc...

See Section 3.5 "Environmental Information"

A pro table energy transition

Organic growth in revenue and EBITDA, remuneration of shareholders, ROCE, etc...

See Sections 1.2 "Key gures"

and 6.2 "Consolidated nancial statements"

An energy transition for the future

Investment in innovation and digital, number of labs created, etc... See Section 1.5 "Innovation, Research & Technologies"

An energy transition for all recurring amount of taxes paid, amount of local purchasing, % of SMEs among suppliers, number of customers bene ting from subsidized tariffs, number of bene ciaries with access to energy See Sections 3.6 "Societal Information"

and 3.7 "Purchasing, subcontracting and suppliers"

An energy transition that brings together compensation policy, percentage of employee shareholding, level of employee engagement, accident frequency rate, % of industrial sites that have established a system for stakeholder dialogue See Sections 3.4 "Social nformation"

and 3.6 "Societal Information"

ENGIE aims to create a group (code name BRIGHT) on July 1st, 2021, leader in multi-technical installation and maintenance services. This entity will develop its skills mainly in the fields of electrical, climatic and energy engineering, as well as in the fields of telecommunications, video and digital, for industrial, tertiary and local authority customers.

3.3

Analysis of main CSR risks and challenges

In order to identify the main CSR risks, ENGIE relied on the most recent version (2020) of its matrix of challenges, called materiality matrix, which was created to gain a better understanding of the expectations and priorities of its stakeholders and its management and to target its strategy and actions more effectively.

This results in 20 challenges, divided into four categories, namely: four fundamental, seven material, two major, and seven decisive.

The fundamental challenges are long-lasting issues that form the founding basis for the responsible conduct of the Group's industrial and commercial activities. Therefore, they were not ranked or compared with other challenges. The other challenges were assessed and classified according to three categories of increasing materiality:

• the material challenges that create value for the Group;

Importanceforstakeholders

Value creation for ENGIE

• the major issues that make a significant contribution to this value creation;
• and the decisive issues that make an essential contribution to it, six of which constitute the Group's strategic priorities. The challenges are positioned on the matrix:

• according to their importance for stakeholders (vertical axis);
• according to the impact in terms of value creation for ENGIE (horizontal axis).

The methodused to construct the matrix can be found on the Group's website (Corporate Social Responsibility area).

Levers of value creation

Strategic Priorities

Structural bases for activities

The definitions of the 2020 challenges are provided in the following tables:

Challenge

2020 definitions

1. Responsible leadership & governance

Ensure exemplary and transparent leadership and governance, adapted to the strategic challenges; ensure transparency and integrity of information through reliable communication, effective management of potential controversies and ENGIE's brand image; ensure the clarity of the Group's objectives; ensure that the Group's actions are consistent with its purpose.

2. Digital

Put our digital expertise at the service of the energy transition by offering our customers innovative and differentiating solutions and services; leverage these technologies to improve the Group's operational efficiency and to strengthen cohesion between our employees through new collaborative tools.

3. Sustainable growth

Ensure the resilience of the Group's business model as well as the growth of financial results over the long term; guarantee value sharing with all stakeholders (incentive-based compensation for senior management and all employees; ensure shareholder attractiveness and loyalty); limit the risk of stranded assets; ensure stability in terms of financial and CSR ratings.

4. Security and resilience of installations

Ensure the operating safety of facilities and business continuity by guaranteeing: the security and surveillance of the Group's sensitive sites (nuclear and industrial), the resilience and adaptation of facilities to climatic risks, the cybersecurity of industrial systems, the confidentiality and protection of the personal data of our employees and clients; ensure the dismantling of nuclear sites under the required security conditions.

5. Employees' skills and commitment

Encourage employees to take ownership of ENGIE's purpose, strategy and values by making them actors in their deployment; strengthen the relationship of trust between management and employees; explore and develop new ways of working adapted to employees' needs; ensure quality social dialogue within the Group; to capitalize on employees' skills and support them in their professional development; attract and develop talent; strengthen intrapreneurship in our practices.

6. Occupational health & safety

Guarantee safety and optimal working conditions for our employees, contractors and subcontractors in all geographic areas where the Group operates.

7. Diversity & inclusion in the workplace

Promote equal opportunities and make equal treatment a reality; ensure non-discrimination with respect to both our employees and our candidates; promote diversity of profiles and experience at all levels of the company.

8. Circular economy

Encourage circularity throughout the value chain by guaranteeing the recycling, reuse and recovery of resources in operations; control the consumption of resources (responsible consumption); ensure efficient use of raw materials.

9. Preservation of biodiversity, water & the environment

Prevent and control the impact of the Group's operations on biodiversity, water and the environment (noise pollution, soil pollution, water and air pollution); be a player and driving force in environmental protection and contribute to the restoration of natural habitats through targeted and concrete commitments.

10. Low-carbon transformation

Acting positively for the environment and the climate by ensuring a clear and ambitious shift towards low-carbon activities, by withdrawing from carbon activities, by developing offers aimed at reducing the carbon footprint of the Group's customers, by controlling the carbon footprint of our supply chains and our working practices (ways of working).

11. Renewable electricity generation

Strengthen our investment in a competitive and sustainable portfolio of renewable energy power generation activities and ensure their local acceptability; anticipate new renewable energy sources and be a player in their deployment.

12. Green gases

Sustainably develop the entire green gas value chain (biomethane, hydrogen); raise awareness among our clients and stakeholders of the role of green gases as levers for resilience and performance in the energy transition.

13. Centralized and decentralized energy infrastructures

Pursue the development of gas and electricity energy infrastructures as well as decentralized infrastructures (heating and cooling networks, networks of charging stations for electric vehicles, urban public lighting networks, etc.); take advantage of new technologies for the intelligent and connected management of networks and infrastructures.

Challenge

2020 definitions

14. Agility & innovation

Change the corporate culture towards greater agility and openness to innovation; strengthen our ability to evolve (adaptation of business models and group organization, transformation of working methods, development of intrapreneurship, etc.) in the face of changes in the Group's environment (expectations, uses, etc.).

15. Dialogue with our customers

Engage in a strategic dialogue with our current and historical clients in order to best support them in their low-carbon transformation; make all our clients aware of our values and commitments; develop a quality partnership relationship and adapt to the specificities of our geographical locations; commit to long-term performance (energy, carbon, etc.) with our clients.

16. Business ethics & conformity
Ensure responsible business conduct through robust and transparent ethical practices in operational activities (e.g. anti-corruption, taxation).
17. Impact & development of communities and stakeholders

Work for the respect of human rights throughout our value chain ; maintain a continuous and quality dialogue with stakeholders ; develop new partnership dynamics; contribute positively to territorial development, while respecting local communities and taking into account changing needs ; contribute to a fair and efficient energy transition ; encourage a more inclusive and equitable economy.

18. Sustainable finance

Work towards sustainable finance through: promoting responsible financial instruments (green bonds, etc.), integrating ESG issues into the investment process in order to encourage the development of sustainable activities; demonstrate the alignment of ENGIE's actions with the growing expectations of investors and CSR rating agencies; anticipating and adapting to regulatory changes in this area.

19. Sustainable supply chain (goods, services, energy)

Promote ENGIE's CSR practices throughout its supply chains; foster quality dialogue with its suppliers; forge strategic partnerships for sustainable development; control the social and environmental risks related to the activity and geographic location of suppliers of goods, services and energy; favor a diversified panel of suppliers in order to guarantee business continuity.

20. Energy efficiency & sufficiency

Support an individual and collective approach to technical changes, uses, practices and organizational methods aimed at reducing energy consumption; at all levels of the Group: daily work practices, operations, supply chain and at our clients' sites through our offers as well as at the level of our infrastructures.

• societal;
These 20 challenges generate CSR risks and opportunities. These CSR risks are classified in accordance with the regulations into the following categories:
• environmental;
• social;
• and governance.

The main United Nations Sustainable Development Goals (SDGs) that could be impacted by these risks are also indicated.

The risk analysis included in Chapter 2 "Risk factors" is different from the analysis of these CSR risks. In Chapter 2, risks referred to as "net specific material risks" are assessedand ranked. They are specific to ENGIE's activities and could have a financial impact in the short or medium term in the context of investment decisions concerning ENGIE. They are classified as net because they are presumed to be material even after the measures taken by the Group to manage them have been taken into account.

The risks included in this Section are CSR-related, not necessarily specific to ENGIE's activities, and may have a medium- or long-term impact. These are gross risks because they do not take account of the management measures implemented by ENGIE.

These different approaches explain the differences between the list of risks presented in Chapter 2 and those presented in this Section.

ENVIRONMENTAL RISKS

Challenge 2: Digital Challenge 8: Circular economy

Challenge 9: Preservation of biodiversity, water and the environment Challenge 10: Low-carbon transformation

Challenge 11: Renewable electricity generation Challenge 12: Green gases

Challenge 13: Centralized and decentralized energy infrastructures Challenge 20: Energy efficiency and sufficiency

Associated CSR risks

Associated opportunities

Associated SDGs

Industrial safety: corresponds to the risk of harm to the integrity of persons or property due to the Group's operational activities.

Nuclear safety: corresponds to specific risks in the event of accidents that might result in radioactive releases from the Group's nuclear plants.

Cyber attack on industrial systems: corresponds to the risk of an attack on industrial command systems.

Malicious damage to tangible and intangible assets: corresponds to malicious acts affecting the Group's industrial or tertiary sites and facilities, which make up its tangible assets, as well as those affecting information, which is part of the Group's intangible assets, whether conveyed on computerized or physical media or even verbally.

Sales of services: digitization, robotization, security and monitoring of sensitive sites, help with adapting customer facilities to climate change, and help with the decarbonization of customer portfolios

Contribution to climate change

F G H

Impact of climate change Biodiversity

Water stress

I J K

Waste management Atmospheric pollution

Pollution of the surrounding environment

Service sales: reducing the carbon footprint of industrial sites, environment management plans Program to restore flora and fauna Mobilization of stakeholders: customers, employees, regions and NGOs

SOCIETAL RISKS

Challenge 3: Sustainable growth Challenge 15: Dialogue with our customers

Challenge 17: Impact and development of communities and stakeholders Challenge 18: Sustainable finance

Challenge 19: Sustainable supply chain

Associated CSR risks

Associated opportunities

Associated SDGs

Societal acceptance: the Group's activities involve the holding of various permits and authorizations, the obtaining or renewal of which with the competent regulatory authorities may involve long and costly procedures. The Group may face opposition from the local population or associations during the installation or operation of certain equipment.

Management of major projects: particularly including non-compliance with costs and construction deadlines and the operational performance of large-scale industrial projects.

Reputation: inability of the company to establish and maintain the trust of stakeholders and to obtain the benefits associated with this, inability to maintain the values a nd social standards of the company, including with its suppliers or subcontractors, inability of the company and the project to build and protect its brand image, and inability of projects aimed at improving access to energy to reach their targets.

Co-construction of offers with stakeholders

Continuation of industrial activities Development of the access to energy offer in unserved regions

Tackling fuel poverty with adapted offers

Group's societal role beneficial to its internal and external reputation

SOCIAL AND GOVERNANCE RISKS

Challenge 1: Responsible leadership and governance Challenge 5: Employees' skills and commitment Challenge 14: Agility and innovation

Associated CSR risks

Associated opportunities

Associated SDGs

Skills: i.e. a shortage of qualified people, unavailability

of resources that are flexible according to needs, the loss
of key knowledge in the event of departure due to lack
of succession plans or due to more attractive conditions in the same geographical area.

Employee commitment: in the context of the Group's transformation, the lack of engagement could result in social movements.

Adapting to changes in occupational sectors

Appeal of the Group to young people aware of carbon neutrality Digitization improving work efficiency

Challenge 7: Diversity & inclusion in the workplace

Challenge 6: Occupational health & safety

Challenge 1: Responsible leadership and governance Challenge 16: Business ethics & conformity

Associated risks

Associated opportunities

Associated SDGs

Corruption: the risk of criminal wrongdoing by which a person solicits or accepts a benefit with a view to carrying out an act within the scope of his or her duties.

Tax: the risk of non-compliance with tax regulations, reporting obligations and their development.

Group setting an example as a good citizen Employee motivation

Challenge 17: Impact and development of communities and stakeholders

Furthermore, pursuant to the French Act of March 27, 2017, ENGIE has drawn up a vigilance plan to monitor risks associated with human rights in the broadest sense, including aspects related to health and safety, responsible purchasing and the environment. This vigilance plan covers all of ENGIE's activities and its controlled subsidiaries world-wide, as well as those of its main suppliers. The vigilance plan is described in Section 3.9 "Vigilance plan (synthesis)".

In accordance with the regulations, these risks are analyzed, on the following pages, by means of:

• a summary of the policies or action plans implemented to limit them;
• indicators established to monitor them, sometimes with targets set;
• and the results of these indicators over three years (2018, 2019 and 2020).

3.3.1

Main environmental risks

Policies or action plans established to cover or remedy risks moreSteering resources or KPIs, objectives

2020 results 2019 results 2018 results

Risk A: Industrial safety (see Section 2.2.5.1)

ENGIE's health and safety policy incorporating Monitoring of incidents andindustrial safety

Industrial safety policies specific to the different activities conducted by Group subsidiaries

Action plans implemented by the subsidiaries that integrate feedback as part of a continuous improvement approach

accidents related to industrial safety at subsidiary level Assessment of the level of risk control achieved through dedicated internal control standards (IND 2 & 3)

No significant incident at industrial facilitiesNo significant incident at industrial facilitiesNo significant incident at industrial facilities

Risk B: Nuclear safety (see Section 2.2.5.4)

Nuclear Safety and Radiation Protection Policy

Independent supervision of nuclear safety 2016-2020 Global Nuclear Safety Plan Minimum requirements for systems of management of nuclear actorsMonitoring of significant incidentsNo significant incidentNo significant incidentNo significant incident

Risk C: Cyber attack on industrial control systems (see Section 2.2.6.1)

The Group policy review on Security of Industrial Control Systems

Technical security standard assessement Qualitative assessment of the maturity level of the cybersecurity culture on the entitiesMonitoring of the security rate of priority sites to be secured (critical and sensitive sites) Assessment of the level of risk control achieved through dedicated internal control standards (IND 4)

Maintaining the security of existing sites and

Maintainingthe security and sensitiveof existing sites and

securing new securing newAll criticalsites in accordance with objectivessites in accordance with objectivessites were secured at the end of 2018

Risk D: Malicious damage to assets (see Section 2.2.6.4)

Group policy to protect individuals and tangible and intangible assets Prevention and protection measures implemented on the basis of the criticality of the geographic location

Group Information Security CommitteeMonitoring of threats to the Group, particularly from terrorists Monitoring of damage to assets

No significant damage to assetsNo significant damage to assetsNo significant damage to assets

Risk E: Contribution to climate change (see Section 2.2.2)

The Group's environmental policy, which specifies:

• the environmental challenges faced by the Group, including climate change;
• the resources used by the Group to meet these challenges and improve its performance;
• the governance elements that contribute to the implementation of the Group's environmental policy.

2020 targets:

• Percentage reduction of the CO2 emissions ratio from energy production of 20% compared with 2012

-52.0%

-43.7%

-28.7%

• 25% of power capacity from renewables (counted at 100%, regardless of the rate of detention)

31.2%

27.8%

23.7%

2030 targets:

• 43 Mt of GHG emissions (scopes 1 and 3) from energy production, in line with the SBT commitments
68
75
86
• 52 Mt of GHG emissions from use of sold product, in line with the SBT commitments
62
61
62
• 0 Mt of GHG emissions from its working practices (after offsetting)
0.49
0.7
na
• 58% of power capacity from renewables

27.8%

23.7%

Policies or action plans established to cover or remedy risks moreSteering resources or KPIs, objectives

2020 results 2019 results 2018 results

Risk F: Impact of climate change (see Section 2.2.2)

The Group's environmental policy

2020 target: 100% of its target sites

(i.e. presenting a risk to the environment according to a multi-criteria approach integrating biodiversity, water, waste and air pollution) with an integrated environmental management plan, drawn up in collaboration with their stakeholders, and include adaptation of the Group's facilities to respond to climate change

100%

86%

75%

Risk G: Biodiversity

• or even to offset them as a last resort.

The Group's biodiversity policy which aims to:

• avoid the direct or indirect impacts of its activities and those of its value chain on biodiversity;
• failing this to reduce them;
2020 target: 100% of the priority sites (i.e. those likely to affect biodiversity due to their proximity to a protected natural area) with an action plan to respond to the challenges of preserving biodiversity 2030 target: 100% of industrial activities with ecological site management plans
100%
94%
94%
0%Not commu-nicatedNot commu-nicated
Risk H: Water stress
The Group's water policy, which focuses in particular on the management of water used in energy generation and wastewater treatment processes
2020 targets: 15% reduction in the level of freshwater withdrawals per MWh of energy generation compared with 2012 100% of the sites in areas of high water stress with local action plans in collaboration with stakeholders 2030 target: 35% reduction in the water consumption of industrial activities compared with 2019
-46.2%
-36.4%
-39%
100%
63%
58%
-19%
0%
na
Risk I: Waste management
The Group's circular economy policy, which aims to ensure that each site or activity works on the recovery and/or recycling of its waste
% of non-hazardous waste recovered % of hazardous waste recovered
76% 31%
76% 31%
85% 28%
Risks J and K: Air pollution and pollution of the surrounding environment
The Group's environmental policy
NOx SO2
Fine particles
47,538 t 119,584 t 4,406 t
50,408 t 129,026 t 4,544 t
60,412 t 118,291 t 4,873 t

3.3.2

Main societal risks

Policies or action plans established to cover or remedy risks more

Steering resources or KPIs, objectives

2020 results

2019 results

2018 results

Risk L: Societal acceptance

• the resources it uses to meet these challenges;
The Group's societal policy, which specifies:
• the Group's societal challenges;
• the governance elements that contribute to implementation of the policy.

2020 target: 100% of industrial activities covered by an appropriate mechanism for dialogue and consultation with stakeholders 2030 target: 100% of its activities, projects and sites that are being decommissioned with an environmental plan in consultation with stakeholders Annual monitoring of BUs or entities trained in the stakeholder engagement tool, which is a self-assessment framework based on standard AA1000 - Stakeholder management, produced by the Accountability NGO

100%

74%

53%

21%

10%

Risk M: Management of major projects (see Section 2.2.6.2)

Investment procedure for projects passing through the Group Commitments Committee which provides for a risk analysis and a self-assessment matrix of 12 CSR criteria based on information from the EIA (Environmental Impact Assessment) and ESIA (Environmental Social Impact Assessment)

Risks analysis

12 CSR criteria matrixNo indicator

Risk N: Reputation Protection of the brand

2020 target:

85% BtoC customer satisfaction level

(*): change in methodology in 2019, with a questionnaire administered by email and no longer by phone leading to a reduction in satisfaction of 12 points)

76% (*)

72% (*)

81%

2030 target: 100% of offers proposing an alternative option contributing to decarbonization

51%

naEnvironmental policy

Number of environmental complaints and convictions

6 complaints 10 complaints 24 complaintsand 2 convictionsand

and

1 conviction no convictionEthics Charter

Code of conduct for business relations Code of conduct for relations with suppliers

Ethical malfunctions monitored using the INFORM'ethics reporting tool

283 282 incidents, 218 incidents,incidents, proven or non-proven

proven or non-provenproven or non-proven

Group Purchasing Policy that sets out the obligations and commitments applicable to ENGIE in terms of its relations with suppliers

2020 target: 100% of the entities with a system in place for responsible supply chain management 2030 targets: 100% of preferred suppliers (excluding energy purchasing) SBT certified or aligned

100%

86%

84%

15%Not commu-nicatedNot commu-nicated

Ratio of 100 on responsible purchasing (excluding energy): CSR assessment, payment terms, and inclusive purchasing

Not commu-nicatedNot commu-nicated

Policies or action plans established to cover or remedy risks more

Promotion of access to energy for populations living far away from networks, including in Africa, and through the social impact fund, Rassembleurs d'ÉnergiesSteering resources or KPIs, objectives 2020 target: 20 million recipients at the base of the pyramid with access to sustainable energy (including the Rassembleurs d'Énergies fund) 2030 target: 30 million recipients with access to affordable, reliable, and clean energy from 2018 (excluding the Rassembleurs d'Énergies fund)

2020 results

2019 results

2018 results

11.5 M

8.9 M

3.7 M

0 MVigilance Plan (synthesis) (see Section 3.9)

3.3.3

Main social risks

Policies or action plans established to cover or remedy risks

Steering resources or KPIs, objectives

2020 results 2019 results 2018 results

Risk O: Skills

The Group's mobility development policy, which is based around:

• ENGIE Skills, which is aimed at developing skills early to prepare for the future;
• ENGIE Mobility, which fosters internal mobility;
• and is supported by ENGIE University.

2020 target: 66% of employees trained during the year

70.1%

69.2%

66.1%

2030 target: 100% of employees trained during the year

Monitoring of number of hires (permanent and fixed-term) Monitoring of voluntary turnover rate

70.1% 29,481

69.2% 37,182

66.1% 29,754

5.4%

7.1%

5.8%The Group's innovation policy, which is based on:

• the ENGIE Fab entity to implement new businesses;
• the ENGIE New Ventures investment fund to support start-ups.

The Group's research & technology policy that relies on the ENGIE Research entity, which brings together several Labs and centers of expertise and engineering

R&D budget

€190 M

€189 M

€182 M

Risk P: Commitment

The Leadership Way, which defines four key behaviors: caring - demanding - open - bold. These behaviors enable us to meet five objectives: Prepare the future - Cultivate and give responsibility - Act and challenge the status quo - Deliver results - Adopt inspiring behavior on a daily basis.

2020 target: 80% employee engagement rate through the worldwide annual "ENGIE&Me" survey

83%

80%

79%

Privileged forums for consultation between management and employee representatives: The European Works Council and the French Group Works Council

These bodies monitor and sign Group collective bargaining agreements

No new agreementNo new agreement

Professional equality agreement

(Europe)

Policies or action plans established to cover or remedy risks

Steering resources or KPIs, objectives

2020 results 2019 results 2018 results

Risk Q: Diversity Group diversity policy Diversity label

2020 targets: 25% of the workforce are women 25% of international senior managers are neither French nor Belgian, calculated within the scope of the Group Managed Roles (GMR)

21.5% 25%

20.9% 25.5%

21.1% 24%

33% of senior managers appointed are women, calculated within the scope of the Group Managed Roles (GMR)

25.4%

28%

24%

2030 target: 50% of managers are women

24.1%

23.5%

23.3%Employment of young people

2030 target: 10% of European workforce are apprentices

4.3%

3.9%Not commu-nicated

Risk R: Inequality Professional equality policy

2030 target:

Equity ratio of women to men of 100

France

Not commu-nicatedRest of world

Not commu-nicated

Risk S: Health and safety at work Global agreement on health and safety at work that states the goals and strategies of the health and safety policy

2020 target:

Frequency rate of lost-time employee accidents of less than 3.4 by 2020. This target was revised in 2019 to take account of the structural change in activities 2030 target:

3.0 for a 2020 target of 3.4

3.7 for a 2019 target of 3.9

3.4 for a 2018 target of 3.5

Total lost time injury frequency rate for employees and subcontractors on sites with controlled access ≤ 2.9

2.7 for a 2020 target of 3.3

3.3

It constitutes, for every person, a reference point to ensure that health and safety are incorporated within all the actions of the Group

Health and safety policy that sets out the fundamental principles that have to be met for all the ENGIE entities, in order to respect the integrity of people and assetsManagerial safety inspections Identification of potentially serious situations and events 2020 targets: 100% of Group entities with a process that ensures training in the "life-saving rules" for subcontractors 100% of Group entities with a process that ensures the identification and management of events with high potential of severity 2030 target:

Health and safety prevention rate ≥ 0.75

97%

92%

99%

95%

93%

0.59

0.42

Not commu-nicated

European agreement on the improvement of working conditions

2016-2020 Health and safety action plan "No Life at Risk" program of specific actions designed to strengthen the health and safety culture

Annual health and safety reviews conducted with each BU Monitoring of health and safety results by the Executive Committee, the EESDC and the Board of Directors

Utilization by the BUs of a internal control questionnaire on health, safety and security

Policies or action plans established to cover or remedy risks

Steering resources or KPIs, objectives

2020 results 2019 results 2018 results

Annual communication campaign Feedback shared among the BUs and subsidiaries

Communi-cation campaigns focused on the prevention of the Covid-19 risk and on maintaining vigilance in terms of health and safetyCommuni-cation campaign to carry out a risk analysis on the ground, immediately before starting the activityShared vigilance "United together for everyone's safety"

Risk T: Safe travel

Safety rules for international trips Employee access to the ISOS international medical and health portal

Employee access to the analyses and reports of the Control Risks Group site on country risks and to e-learning on personal security when traveling abroad

Reinforcement of event-detection No significant No significant No significantmechanisms

"Travel Tracker" tool to monitor individuals traveling in high-risk areas

Alert system for office-based personnel which supplementing the alert system for international personnel mobility

event event event

3.3.4

Main governance risks

Policies or action plans established to cover or remedy risks

Steering resources or KPIs, objectives

2020 results 2019 results 2018 results

Risk U: Corruption Anti-corruption policy based on:

• the Ethics Charter;
• the Practical Guide to Ethics;
• the integrity reference system;
• the Ethics Compliance reference system;
• specific policies: Third party assessments, business consultants, gifts, invitations, conflicts of interest, lobbying in particular and supplier relations;
• ethics and CSR clause in the general terms of sales.

System for whistleblowing and reporting ethics incidents Control process

Annual compliance procedure by means of a specific reporting system INCOME COR 4 internal control program

Internal audits and external audits including the

ISO 37001 certification audit (certification received in 2018 and renewed in 2019)

283 proven 282 incidents 218 incidentsor unproven incidents reported in

(proven or unproven) declared in

My Ethics INFORM'ethics INFORM'ethicsIncident, including 20 cases of alleged corruptionincluding 9 cases of alleged corruption

Annual publication of the communication on the progress of UN Global Compact Principle 10 Alert system:ethics@engie.com

201 incidents 183 incidentsincluding 20 concerning business ethics casesincluding 17 concerning business ethics casesNot communi-cated

The Group is committed to training its senior managers, expanding its commitment for 2019 to Group managed roles (GMRs) and anti-corruption in 2025 2030 target: 100% of employees most exposed to corruption risk trained

86% of GMR

91% of senior managers and 86% of executive managers

91% of senior managers

21%

25%

Policies or action plans established to cover or remedy risks

Steering resources or KPIs, objectives

2020 results 2019 results 2018 results

Risk V: Tax

Tax policy that sets out the rules and principles for the payment of taxes in the countries in which the Group operatesTax reporting by country Adherence to the principles of the United Nations BTeam initiative

See websiteSee websiteSee websiteRisk W: Human rights violations Human Rights referential and policy Vigilance Plan

Ethics due diligence policy (suppliers, subcontractors, and commercial partners)Checklist on the risk of violating human rights (annual risk review, see Sections 2.2.7 and 3.8.2) Annual ethics compliance report (quantitative and qualitative indicators, see Section 3.8.6)

System for whistleblowing and reporting ethics incidents Monitoring of the Group Vigilance Plan (see Section 3.9.3)

283 incidents 282 incidents 218 incidentsin My Ethics

Incident (alleged or

(proven or non-proven) declared in

unsubstan- INFORM'ethics, INFORM'ethics,

including 6 allegationstiated),including no case concerning

relating human rights to human rights and environmental law (excluding allegations relating to sexual harassment and moral harassment)

34% of which involve social responsibility and human rights, including HR practices

3.4

Social information

ENGIE's Human Resources (HR) strategy supports and contributes to the Group's strategy to meet the challenges of today and anticipate those of tomorrow. Listening to its stakeholders, the HR function constantly reconciles economic performance, human progress and contributions to society. It is a necessary and complex responsibility which calls for a strong and agile HR function, . capable of transforming itself to provide concrete and innovative responses to the multiple challenges that ENGIE has to meet. Passionately committed to the success of the business project, HR pursues three strategic objectives: developing skills within the Group, developing leadership and building ENGIE's culture.

ENGIE sees women and men as the main driver of its performance. The Group must be able to rely at all times on skills tailored to its changing needs. Accordingly, the HR function plays a major role:

• anticipating and identifying the needs of the BUs and businesses as well as emerging trends;
• developing and adapting skills to our new solutions and business challenges;
• strengthening the Group's ability to attract, recruit and retain the talents of today for tomorrow in an increasingly competitive market.

The health and economic crisis that has been going on since March 2020 is unprecedented. It has affected people both collectively and individually. Its impact is global and has required the rethinking of models and operations. From the start, the HR department has been a strategic player in crisis management. It has played a central role in the definition, application and roll-out of health rules. It has had to adapt working methods and implement measures to support employees and preserve jobs. It recognized the extent of the social crisis very early on, accelerating the roll-out of the ENGIE Care worldwide social protection program.

The HR transformation project created a global, united and interconnected HR community. Throughout the crisis, this community has been sharing and adapting the practices put in place within its regions to ensure the safety, health and well-being of employees and to maintain their commitment. Ongoing consultation with union representatives has strengthened internal cohesion and enhanced performance during this period. More generally, the crisis has tested its great capacity for resilience. The Group has maintained its social commitments without compromising its objectives: 50% female managers by 2030, professional and pay equity between women and men, professional integration with a target of 10% of staff consisting of students on work-study programs in 2021 in France and in 2030 in Europe, and 100% of staff trained each year by 2030.

3.4.1

Social data

3.4.1.1

Workforce

ENGIE was present in around 60 countries in 2020, with 172,703 employees. The workforce increased by 1,600 employees, or around 1%, compared with 2019. This change was due to business expansion and the acquisition and integration of new companies within the Group in connection with the development strategy.

2020	2019
United	France	France	Middle
States	excluding	infra-	East,
and	Infra-	structures	Rest of	Latin	Asia &
GRI 102-7 /405-1	Canada	structures	and others	Europe	America	Africa	Others	Group	%	Group
Managers □□	1,439	14,801	4,666	10,338	2,066	2,064	9,906	45,280	26.2%	42,963
Men	1,078	11,485	3,129	8,513	1,604	1,629	6,923	34,361	75.9%	32,856
Women	361	3,316	1,537	1,825	462	435	2,983	10,919	24.1%	10,106
Non-managers □□	1,847	44,697	12,773	44,391	10,700	8,178	4,837	127,423	73.8%	128,141
Men	1,422	38,102	9,495	34,256	9,022	6,793	2,191	101,281	79.5%	102,527
Women	425	6,595	3,278	10,135	1,678	1,385	2,646	26,142	20.5%	25,614
TOTAL □□	3,286	59,498	17,439	54,729	12,766	10,242	14,743	172,703	100%	171,103
Men	2,500	49,587	12,624	42,769	10,626	8,422	9,114	135,642	78.5%	135,383
Women	786	9,911	4,815	11,960	2,140	1,820	5,629	37,061	21.5%	35,720
% reporting	100%	100%	100%	100%	100%	100%	100%	100%	100%

As of December 31, 2020, the workforce comprises 45,280 managerial staff, i.e. 26.2%, and 127,423 non-managerial staff, i.e. 73.8%. The proportion of managerial staff increased slightly, from 25% to 26.2%. The proportion of women in the workforce increased from 20.8% in 2019 to 21.5% and represented 24.1% of managers (see Section 3.4.4.1).

3.4.1.2

Contract types and trends

At the end of December 2020, 156,140 employees were on permanent contracts, making up 90.4% of the workforce. 10,602 employees were on fixed-term contracts, mainly in the Latin America, Asia Pacific and China BUs. Furthermore, with 5,961 young people on work-study programs (5,523 in

2019), ENGIE favors the inclusion of young people. Work-study programs combine practice with the teaching provided at their training centers. They are also an important source of recruitment (see Section 3.4.2.1.3).

2020

2019

United States and

France excluding

Infra-France infra-structures

GRI 102-8

Canada structures and othersRest of EuropeLatin AmericaMiddle

East, Asia & Africa

Others

Group

Permanent □□ Fixed-term □□ Work-study contracts □□ % reporting

96.5% 3.3% 0.2%

91.5% 2.4% 6.2%

93.6% 0.2% 6.2%

94.3% 4.6% 1.1%

70.6% 29.3% 0.1%

81.1% 17.8% 1.1%

90.0% 6.6% 3.4%

90.4% 90.3%
6.1% 6.5%
3.5% 3.2%

100%

3.4.1.3 Workforce by age bracket

The average age of employees on permanent contracts is 42.8, unchanged compared with 2019.

2020

2019

United States and

France excluding

Infra-France infra-structures

GRI 405-1< 25 yrs old 25-34 yrs old 35-44 yrs old 45-54 yrs old > 55 yrs old % reporting

Canada structures and othersRest of EuropeLatin AmericaMiddle

East, Asia & Africa

Others

Group

3.3%

4.0%

2.6%

3.1%

5.3%

3.1%

2.3%

3.4% 3.7%
20.9%
23.5%
25.3%
17.2%
33.3%
34.4%
26.5%
23.0% 23.4%
25.2%
29.3%
31.3%
25.3%
32.1%
34.0%
33.0%
28.8% 28.6%
26.1%
27.3%
28.2%
30.4%
19.8%
20.4%
24.2%
27.3% 27.4%
24.5% 100%
15.9% 100%
12.6% 100%
24.0% 100%
9.6% 100%
8.1% 100%
14.0% 100%
17.5% 16.7%

100%

3.4.1.4

Hiring

Nearly 29,500 employees were hired. They are suited to our future skills requirements and will support the transformation. 70% of them relate to occupations in the technical, engineering and business development areas. The profile of these hires is shifting towards increased expertise, particularly in the digital occupations. These hires reflect different situations in terms of activities and countries. 11,393 hires took place in France, including 6,420 on permanent contracts and 4,973 on fixed-term contracts (12,802 in 2019). Internationally, 18,088 hires took place in 2020, compared with 24,380 in 2019, down 6,292 or 26%. The impact of the health crisis resulted in a 21% drop in hires, particularly in those occupations hit hardest in the first half of the year in Latin America, the United Kingdom and France. 21.5% of hires were women. In addition to these hires, 6,494 employees benefited from the internal mobility selection procedures (7,914 in 2019).

2020	2019
United	France	France	Middle
States	excluding	infra-	East,
and	Infra-	structures	Rest of	Latin	Asia &
GRI 401-1	Canada	structures	and others	Europe	America	Africa	Others	Group	Group
Permanent hires	620	5,526	815	5,041	1,552	1,227	1,759	16,540	20,388
Women	130	871	279	1,165	298	249	619	3,611	4,477
Men	490	4,655	536	3,876	1,254	978	1,140	12,929	15,911
Fixed-term hires*	86	4,161	775	2,076	4,143	521	1,179	12,941	16,794
Women	23	982	292	498	358	132	438	2,723	3,296
Men	63	3,179	483	1,578	3,785	389	741	10,218	13,498
TOTAL	706	9,687	1,590	7,117	5,695	1,748	2,938	29,481	37,182
% reporting	100%	100%	100%	100%	100%	100%	100%	100%	100%

Including work-study students

3.4.1.5

Departures

The Group registered a 9.3% decrease in departures in 2020: 19,537, compared with 21,545 in 2019. The specific context of the health crisis resulted in a decrease in resignations worldwide. The decrease was limited in France: 3.6%, compared with 4% in 2019. Internationally, countries with historically high levels of resignations registered sharp drops:Latin America 10.1% compared with 19.4%, United Kingdom 8.1% compared with 12.4%, and United States 8.3% compared with 9.3%. On the other hand, the health crisis caused a sudden shutdown of projects, with the early departures of employees recorded as redundancies, explaining the increase in some areas: the United Kingdom, Latin America, and India.

2020	2019
United	France	France	Middle
States	excluding	infra-	East,
and	Infra-	structures	Rest of	Latin	Asia &
GRI 401-1	Canada	structures	and others	Europe	America	Africa	Others	Group	Group
Departures	638	4,922	627	5,523	4,351	2,294	1,182	19,537	21,545
Retirements	22	809	404	774	53	86	100	2,248	2,196
Resignations	288	2,698	180	2,864	1,320	1,385	709	9,444	12,120
Dismissals	326	841	23	1,329	2,802	598	247	6,166	5,691
Contractual terminations	2	574	20	556	175	225	126	1,677	1,537
Levels of resignations	8.3%	4.6%	1.0%	5.2%	10.1%	12.7%	5.0%	5.4%	7.1%
TURNOVER*	17.8%	7.0%	1.3%	8.6%	32.8%	20.2%	7.6%	10.0%	11.3%
% reporting	100%	100%	100%	100%	100%	100%	100%	100%	100%

Excluding retirements

3.4.2

Attraction, hiring and retention of talent

3.4.2.1 3.4.2.1.1

Hiring and the employer brand

Hiring talent

Faced with a highly competitive job market, changing occupations, and constantly evolving candidate expectations, the talent recruitment strategy is aligned with ENGIE's purpose and the transition to a carbon-neutral economy. This strategy stands out because it favors an approach that places the candidate at the center of the recruitment process in the service of the occupations and the business. In this sense, ENGIE has developed its methods, strengthened theprofessionalization of its HR teams and cultivated its agility. The Group has developed strategic partnerships with LinkedIn, Indeed, and Glassdoor. This is how the HR sector identifies, supports and develops the profiles, skills and resources to enable the Group to anticipate and respond to the challenges of today and tomorrow. ENGIE has therefore initiated an active policy of developing its employer brand to attract the best talent and roll out its strategy. Multiple communication actions take place on networks and recruiting

sites to publicize ENGIE's occupations. ENGIE had more than 547,000 subscribers on LinkedIn at the end of 2020 and ranks 7th on LinkedIn's list of "Top Companies."

3.4.2.1.2

Academic relationships

ENGIE has forged special relationships with many prestigious engineering schools and universities that are levers for recruiting and attracting future young talent: Polytechnique, CentraleSupelec, Centrale Lyon, INSEE/ENSEA, MINES ParisTech, Télécom ParisTech, IAE, Gobelins, Grenoble INP - Ensimag, INSA, etc. In the Renewables occupations, the Group has embarked on numerous partnerships with laboratories and engineering schools (Mines, Centrale, Supelec, Polytechnique, ENSEEIGHT, etc.). They give their students the opportunity to take part in the ENGIE adventure through work-study programs and internships and the hosting of PhD students and students researching specific areas. ENGIE has launched the first 100% renewable Graduate Program. Lastly, partnerships have also been established in digital occupations (EPITHEC and Ecole 42) and with the major French business schools (HEC, ESSEC, EDHEC, ESCP, Sciences Po, Paris Dauphine and Institut Magellan).

3.4.2.1.3

Apprenticeships

To tackle the skills war and guarantee the Group's performance, ENGIE relies on young people and apprenticeships as a path of excellence towards its future occupations.

The Group has set itself two strategic targets:

• the proportion of apprentices in the Group's workforce to reach 10% in France by the end of 2021 and 10% in Europe by the end of 2030;
• a level of transformation into permanent or fixed-term contracts in France of 50% by the end of 2021.

Representativity of apprentices compared to permanent and fixed-term contracts

FRANCE	EUROPE	OTHER	GROUP
7.1%	1.0%	0.5%	3.6%
3.4.2.2

ENGIE&Me

ENGIE had 5,961 apprentices at the end of 2020. For several years, ENGIE has been working with the Apprentice Training Centers (Centres de Formation d'Apprentis or CFA) throughout France. They support the Group in designing its training courses and searching for skills through a regional network that provides information on its occupations in all four corners of the country. In France, the percentage of staff undertaking work-study programs compared to permanent and fixed-term contracts is 7%. Developing the skills of the future to serve the transition to carbon neutrality is more than ever a priority for the Group, and promises to have a positive impact on people and the planet. Furthermore, on November 2, 2020, ENGIE opened its own CFA in France: the "Academy of Energy and Climate Transition Occupations." This human-scale Academy will welcome several hundreds of students by the end of 2024. The CFA offers the vocational Baccalaureate Diploma and higher technician's license (brevet de technicien supérieur or BTS) for young people aged 16 to 29, in close partnership with well-known educational establishments. The aim is to meet the changing needs of the Group and to attract more young people, particularly women, to its occupations. All of the training courses have the same foundation, focused on the transition to carbon neutrality, in order to raise awareness of environmental and climate issues, and what behaviors to adopt in terms of health and safety and with regard to customers. By creating its business CFA, ENGIE has confirmed its commitment to employment and the inclusion of young people. The Academy of Energy and Climate Transition Occupations is helping ENGIE achieve its target of 10% of its French employees on work-study programs by the end of 2021 (of which 3% young people with disabilities), i.e. double the legal limit of 5% for companies with more than 250 employees. The Group also aims to hire 50% of its employees on work-study programs at the end of their training by 2021, particularly in the technical occupations, which represent more than two-thirds of its total hiring needs. With the same aim, on October 6, 2020, ENGIE Benelux launched ENGIE Academy at Gand in Belgium, which is fully in line with the Group's commitment to making energy occupations accessible to all.

Lastly, the Group's work in welcoming interns, the VIEs (Volunteers for International Experience) and all other forms of dual training have been maintained despite the health crisis.

The employees' commitment to the Group's strategy

In line with the large-scale transformation program launched in 2016, the Group implemented the ENGIE&Me engagement survey in October 2020, for the fifth consecutive year. Addressed to employees on permanent contracts all over the world (1), it allows them to express themselves on the key dimensions of commitment: strategy, working conditions, relations within the team, quality of management, prospects for development and mobility, sense of security, etc. The results make it possible to measure the progress made from one year to the next and to determine an action plan for improvements on each scope, at the local level and at all levels of the organization: team, management, entity, BU, and Group. It is a key tool for driving change. In 2020, 53% of employees took this opportunity and responded to the survey despite the context of the health crisis. The main strengths of the Group

(1) Excluding regulated entities

highlighted by the survey are adherence to ENGIE's goals and objectives in the move towards carbon neutrality (+13 points) and the sustainable engagement index (+3 points). The management of the health crisis by the Group and by the management line was praised: 84% of employees trust ENGIE's ability to ensure their safety and health. Questions relating to the quality of management and the sense of security each increased by 4 points on average, which is very significant at Group level. In addition, 90% of employees say they are proud to work for the company (up 10 points in a year) and 81% would recommend the Group as an employer. Lastly, 79% of employees consider that they have the equipment/tools/ resources they need to do their job effectively (up 5 points). Notable improvements where there is still room for progress: 40% of respondents have reservations about the Group's ability to have a clear vision of the future.

In the context of the health crisis, particular attention was paid to the health, state of mind and morale of employees, measured by regular ad hoc surveys, organized at BU level and adapted to the specific context of each BU.

To meet the challenge of engagement, retention and upgrading of skills, the Group promotes, among other measures, the establishment of communities that enhance the employee experience.

3.4.2.3

The Technical Ambassadors

In 2018, ENGIE launched Communau'Tech, a community of Technical Ambassadors with the task of promoting the technical sector, both internally and externally. This system creates value from our technicians, builds their loyalty, and disseminates an attractive image of hard-to-fill positions. The Technical Ambassadors take part in events for specific occupations, jobs forums and trade fairs organized by the Group or by the entities to which they belong, explaining their occupations and promoting the technical sector. They also work with schools to make young people aware of environmental and climate issues and the importance of our occupations in the transition to carbon neutrality in order togenerate interest in them. Finally, they may be called upon to intervene internally as part of "flying schools", which are technical trainings actions between peers, organized on an ad hoc and bespoke basis at the request of an entity (for example, the flying school between France and Chile in late 2019). The goal is to build a community of 500 Technical Ambassadors at the European level by the end of 2021. The Communau'Tech currently has 350 Technical Ambassadors, including 20 women: 300 French ambassadors from the ENGIE Solutions, GRDF, France Renewables, BtoC, Storengy, and Generation Europe BUs and 50 Italian ambassadors from the NECST BU.

3.4.2.4

The Experts

In 2020, ENGIE completed the first ExpAND campaign. The program aims to identify and recognize the Group's experts, to develop communities of expertise and make the ExpANDers ambassadors for ENGIE both inside and outside the Group. It is also a development program that allows experts to develop their "soft skills", such as leadership and communication. Each application is voluntary and allexpertise aligned with the Group's strategy is recognized, whether technical, technological or functional. Three levels of experts have been established - Global, Key and Local - according to their impact scope and their exposure. At the end of the first campaign, 560 ExpANDers had been identified: 38 "Global", 354 "Key" and 168 "Local". A second campaign is scheduled for 2021.

3.4.3

Human resources development policies

The Group offers opportunities to build a range of career paths by benefiting from continuous training programs adapted to provide long-term employability. ENGIE can thus better adapt to the evolution of organizations and occupations. The transition to carbon neutrality and technological accelerations due to digitization and artificial intelligence are transforming the professions of employees and creating shortages of qualified personnel in the Group's many businesses, whether traditional or newly emerging. To tackle this, ENGIE is implementing a social strategy toincrease the skills and mobility of its employees in three directions: advance skills management to prepare for the future; enhanced internal mobility to serve the transformation of the company; and professional training objectives for all employees. They are being implemented in order to favor the enrichment of tasks, the renewal of experiences, and the consideration of employee initiatives and empowerment, which strengthen their engagement and foster their development and employability.

3.4.3.1

ENGIE Skills, the jobs and expertise advance management system

In order to anticipate changes in the Group's occupational sectors and skills needs, the ENGIE Skills system challenges the BU and entities every year on their three-year projections. In 2020, ENGIE Skills strengthened its system by setting up a reference framework for occupations, ENGIE Jobs, which lists 100 technical/business occupations and 60 support functions. Making use of this framework and the survey carried out across all of the Group's BUs, ENGIE Skills has made it possibleto map the Group's workforce in these ENGIE Jobs and to measure their development. The aim is to have a strategic skills management tool oriented around three main area:

• mapping of the skills available to Group executives;
• improvement of HR performance and skills management by the BUs, operational entities or functional sectors;
• knowledge of our occupations in order to develop employees and increase their mobility.

3.4.3.2

ENGIE Mobility, the internal mobility system to support the Group's transformation

In order to stimulate the internal labor market and to address the challenges projected by ENGIE Skills, the ENGIE Mobility system plays a major role in supporting the mobility of employees. ENGIE believes that mobility is a key lever in employee development and business performance. For this reason, the Group stipulates that all internal job applications must be prioritized in the recruitment process. In addition to this policy, "My Mobility", a digital space dedicated to constructing the professional project and to mobility was rolled out toemployees in France in 2019. It is expected to become available for all employees, including abroad, in 2021. In connection with its aim of strengthening local talent, ENGIE Mobility has expanded its services offer to support the return of expatriates. ENGIE Mobility is regularly called upon during transformation projects to contribute its expertise and a services offer tailored to the projected changes. Finally, ENGIE Mobility supports the Global Business Lines when they carry out their cross-BU HR reviews in order to identify all the strategic positions.

3.4.3.3

Training, skills development, and leadership

Developing skills and maintaining employability are crucial areas for the achievement of the Group's strategy. In February 2020, a non-financial goal was thus defined of training 100% of employees each year by 2030. In response to this, ENGIE favors a skills development approach of diversification of its methods.

3.4.3.3.1

ENGIE Schools

Since 2019, ENGIE Schools has been boosting the skills development of employees with technical profiles, i.e. 70% of the workforce and more than 100,000 employees worldwide, by focusing on peer-to-peer training. Addressing a technical/ business target, skilling up actions shared between entities complement ENGIE University's actions for managers. ENGIE Schools asserts itself as the international internal network of the Group's occupational schools. It is made up of 32 internal training centers, half of which are in France, with a tailor-made technical training offer adapted to the requirements of our businesses. It ranges from the "Ecole du gaz GRDF Energy Formation" to the "Institut du Froid Axima Réfrigération" and the "Chile ENGIE Services Escuela" of the LATAM BU. It is the driving force behind a dynamic of cross-functional projects, acting as a catalyst for awareness-raising and shared Group training projects, capitalizing on experience, internal skills and inter-entity cooperation. This dynamic resulted in an inter-BU course on the skill of "Preventing low-voltage electrical risk" and the corresponding accreditation in 2019. In 2020, a training offer of "Occasional Technical Trainers" was added to the catalog to encourage and structure peer-to-peer training. All technical training resources are shared between the Group's entities on a dedicated digital portal.

3.4.3.3.2

Occupational pathways

Launched in 2018 to meet the internal mobility needs of the technical occupations, the occupational pathways developed further in 2019, with a focus on recruitment through training. They enable current or future employees to join an occupation by going through a training process over several months as part of a work-study program within a Group entity. In 2019, nearly 300 trainees spread over 11 occupational pathways attended these qualifying training courses. More than 85% of them joined a Group entity, thus making a strong contribution to the objectives of welcoming and integrating work-study students. In 2020, the same volume of trainees enrolled and new courses were established, but the training was postponed given the health context. The pathways are also a way of meeting the challenge of integrating populations distanced from employment.

3.4.3.3.3

ENGIE University

In 2020, ENGIE University stepped up the implementation of programs enabling every employee to learn about the Group's strategy. These programs focus on issues related to carbon neutrality, the energy transition, customer orientation and the organizational agility of managers and executives. In addition, to fulfill the Group's diversity aims, the University has launched an Inclusive Leadership program for all managers.

The year 2020 was strongly marked by the pandemic. This had significant effects on training, in terms of both course content and format. In terms of content, during a short and intense period, specific programs were rolled out to meet thenew needs of managers, on subjects including remote management, individual and collective resilience, leadership in times of uncertainty, new business models and factors of competitiveness. In terms of format, the pandemic accelerated the transition to distance learning.

Since 2016, the University has been increasing learning opportunities by rolling out new modalities. For example, the number of hours of digital training quadrupled between 2016 and 2020. In this context, and in response to training needs, the University organized the Learning Festival in October 2020. This event, which was 100% digital, consisted of a week of intense training for all of the Group's employees, all over the world. Provided in addition to the traditional training courses, it is a key driver for ENGIE's culture of engagement, belonging, and ownership of strategy. It, first of all, involved the development of key skills, a need that goes hand in hand with the crisis and which requires a readjustment of our know-how. It also responded to the need to change perceptions of virtual training. The Learning Festival brought together more than 2,300 employees from 43 different countries, representing all of the Group's BUs on 100 different programs. It involved 50 internal stakeholders and 40 external teachers. Every day, more than 1,000 employees took part in one of the programs.

As the transformation of the Group also entails the evolution of occupations, ENGIE University is developing programs so that employees can upskill in their occupations. It supports the ENGIE Boost program, which is dedicated to the talent population and supports executives via new training programs: on leadership with Co-leaders Extreme, on high-performance teams with Team Accelerator and on "customer-centricity" with Customer Academy.

3.4.3.3.4

Development of high-potential talent

ENGIE Boost is a system for identifying, developing and retaining high-potential talent at all levels of the organization in order to prepare these individuals to occupy the most strategic roles at the Group. It consists of the Rise! and Pulse! programs, which, over 24 months, prepare leaders with the capacity to assume strategic responsibilities within ENGIE in the near future. A third program, called Up!, is designed for High-Potential talent within each BU. Inclusion in the Rise! or Pulse! programs is determined by the Group Human Resources Department, which uses People Reviews carried out with the BUs and a range of assessment and development tools to ensure a clear and coherent approach. In 2020, 202 talented individuals take part in the Pulse! program and 126 joined the Rise! program. In the BUs, 1,519 talented individuals joined the Up! programs. This initiative is not intended to reward performance or to be used as a recognition tool; it is an opportunity offered to employees in order to develop their potential and to ensure we are in the best position for future development. It is also an opportunity to create an active diverse community of leaders who are committed to ENGIE's future and who engage their teams.

The majority of the development actions offered under these programs aim to strengthen understanding of the ENGIE Leadership Way, ENGIE's management charter. It is structured around five fundamental aspects (Prepare the future/ Cultivate and give responsibility/Act and challenge the status quo/Deliver results/Adopt inspiring behavior on a daily basis) and four behaviors (being bold/demanding/open/caring) to underpin the Group's transformation, inspiring the day-to-day behavior of managers and thus also affecting their teams.

To support these programs, ENGIE launched a Strategic Resource Planning approach at the end of 2019, centered on the Group's 500 key positions. In the course of 2021, it will provide a consolidated three-year view of the key skills to be developed and will adapt talent development programs according to the priorities identified.

Proportion of people trained

GRI 404-2

United States and

France excluding

Infra-France infra-structures

Canada structures and others

As a result of the implementation of all these systems, ENGIE trained 70.1% of its employees in 2020, despite the backdrop of the pandemic.

2020

2019

Rest of EuropeLatin AmericaMiddle

East, Asia & Africa

Others

Group

Proportion of women trained

14.6% 30.4% 27.3%

47.1% 60.1% 58.0%

64.2% 72.8% 70.5%

82.1% 75.9% 77.1%

100.0% 100.0% 100.0%

68.5% 66.7% 67.0%

77.2% 61.5% 67.5%

69.2% 62.0%
Proportion of men trained Proportion of employees trained □□ % reporting
70.3% 71.1%

70.1%

69.2%

45.37%

100%

96.90%

98.66%

97.42%

Training hours

GRI 404-1

United States and

France excluding

Infra-France infra-structures

Canada structures and others

2020

2019

Rest of EuropeLatin AmericaMiddle

East, Asia & Africa

Others

Group

Total nb. of training hours Average nb. of hours per person trained % reporting

9,369 23

759,605 22

490,831 781,998 581,379 181,783

158,277 2,963,242 3,271,154

45.37%

100%

96.90%

98.66%

97.42%

Breakdown of training hours by topic

GRI 404-1

United States and

France excluding

Infra-France infra-structures

Canada structures and others

2020

2019

Rest of EuropeLatin AmericaMiddle

East, Asia & Africa

Others

Group

Business techniques Quality, safety and environment Languages Management, personnel development

62.6% 14.7% 1.1% 11.4% 10.2% 45.37%

33.2% 45.6% 3.9% 11.2% 6.1% 100%

30.2% 15.9% 0.7% 8.0% 45.1% 100%

41.4% 32.9% 2.4% 19.7% 3.6% 100%

17.9% 57.8% 3.8% 6.3% 14.3% 100%

54.9% 22.8% 1.3% 12.2% 8.8% 100%

48.3% 9.6% 10.3% 19.4% 12.3% 96.90%

35.9% 38.9%
33.7% 32.6%
3.0% 2.0%
13.1% 15.0%
Others % reporting
14.2% 11.4%

98.66%

97.42%

3.4.4

Social commitment: a company committed to corporate citizenship and solidarity

For many years, the Group has implemented a corporate social responsibility (CSR) policy that is proactive, ambitious and innovative to combat discrimination and promote equal opportunity and treatment. ENGIE's diversity policy was rewarded by the four-year renewal of its Diversity label in October 2017 for all Group activities in France. A follow-up audit in September 2020 confirmed the Group's commitment to promoting diversity and equal opportunities and praisedthe many initiatives taken by all the BUs and entities. At the European level, ENGIE has again signed the European "Embrace Difference" petition on diversity and inclusion of the European Round-Table of Industrialists. Lastly, ENGIE has renewed its commitment to professional equality by signing up in September 2019 to the Women's Empowerment Principles defined by the United Nations.

3.4.4.1

Diversity and the commitment to professional and pay equality between women and men

ENGIE aims to become a benchmark for professional and pay equality. Accordingly, in February 2020, the Group's Board of Directors approved two new, rank 1, non-financial targets:

• The Group's consolidated gender equality index to reach 100 out of 100 points by the end of 2030;
• women to make up 50% of the Group's managerial staff in 2030.

3.4.4.1.1

Gender diversity

To support its gender diversity goal, ENGIE has rolled out the "Fifty-Fifty" project, which aims to create the necessary conditions for gender parity in management. This ambitious project came in response to demand not only from the entire Company and ENGIE's customers, but also investors. A Group-level roadmap has been drawn up in order to attract the best talent and make ENGIE a benchmark player in the field. It is based on six pillars: structuring and governance, diagnostics, awareness and communication, organizational adaptation,development, and external partnerships. All of the Group's BUs are already taking steps to make the "Fifty-Fifty" goal a reality.

In addition, to promote gender diversity in the occupations, ENGIE is raising awareness among young female audiences through the "Elles Bougent" association, which promotes the role of women in technical sectors in France. Lastly, as part of its partnership with Le Laboratoire de l'Égalité, ENGIE has been helping since September 2019 to develop an artificial intelligence pact to ensure that new technologies underlying HR processes that incorporate AI are not discriminatory in terms of gender.

In December 2020, women made up 21.5% of the Group's workforce. The proportion of women in management was 24.1% Within the ENGIE 50, a body made up the CEOs of the BUs and the operational managers of central services, the proportion of women is 27.6% 13 women and 34 men. The proportion of women on the Group Executive Committee is 36% 4 women and 7 men.

2020

2019

GRI 405-1

United States and Canada

Infra-structuresFrance excludingFrance infra-structures and others

Rest of EuropeLatin AmericaMiddle

East, Asia & Africa

Others 38.2% 30.1%

Group

Proportion of women in workforce □□ Proportion of women in management □□ % reporting Proportion of women in permanent hires Proportion of women in permanent management hires % reporting

23.9%

16.7%

27.6%

21.9%

16.8%

17.8%

21.5% 20.9%
25.1%
22.4%
32.9%
17.7%
22.4%
21.1%
24.1% 23.5%

100% 21.0%

100% 15.8%

100% 34.2%

100% 23.1%

100% 19.2%

100% 20.3%

100% 35.2% 31.6%

100%

21.8% 22.0%
22.4%
25.7%
40.7%
20.6%
32.7%
21.1%
27.0% 25.4%

100%

3.4.4.1.2

Equal pay

The efforts made with regard to professional and pay equality in 2019 were pursued in all of the French subsidiaries to improve the gender equality index. In 2020, as part of its CSR policy and to support its purpose, ENGIE extended the obligation to calculate the index annually in each of its legal entities in France and internationally. In France, the consolidated index score is 89 (1), up 17 points compared with 2019. The consolidated index also showed a marked improvement at Group level, reaching 84 versus 72 in 2019. To facilitate the implementation of the BU's action plans in favor of professional and pay equality between women and men, the Group HRD has developed EQUIDIV, a decision-making tool that enables automatic calculation of the index from individual data and provides priority remedial actions. The tool was rolled out to all the entities concerned by the calculation of the index in France and internationally, between 2019 and 2020.

3.4.4.1.3

Professional equality

On November 22, 2017, ENGIE signed a European Agreement for an indefinite period on professional equality between women and men, the fight against discrimination and violence, and the prevention of sexual harassment. Sexist behavior was the subject of a specific article.

(1) Calculate with 2020 data

Management is committed to developing awareness campaigns to combat sexism, to take all necessary measures to prevent incidents of sexual harassment and to put in place reporting tools to enable any deviant behavior to be flagged. In addition, on the basis of an international benchmark of legislation in force in this area, the Group has defined a common international reference framework designed to eradicate sexual harassment. As an extension of this theme, and because lockdown has increased the occurrence of this risk, ENGIE has launched a global information and awareness campaign on domestic violence on the occasion of the International Day for the Elimination of Violence against Women. Through this agreement, the Group has undertaken to encourage a better work-life balance, in particular through the organization of working time and a proactive parenting policy.

In France, most of the Group's entities have signed an agreement to implement regular remote working, on the basis of one or two days a week. Before the lockdown in March 2020, fewer than 30% of employees worked from home. With the advent of the health crisis, negotiations to renew expiring agreements will be an opportunity to take feedback on generalized remote working into account. Some entities have also signed agreements on the right to disconnect.

In France, the Group provides access to a company nursery with 60 places and to networked places. During the lockdown, ENGIE offered a home care service for children and dependent relatives to help employees with no alternative resources. Since it was launched, more than 1,000 employees have signed up and more than 1,500 services have been provided throughout France. ENGIE has extended the scheme to cover the 2020-2021 school year.

In addition, an experiment was launched at ENGIE SA's Corporate function in France in early 2020 which involved the extension of paternity leave from 11 days to six weeks, with employee fathers actively encouraged to take advantage of it. The experiment will be generalized in line with the instructions of the French public authorities.

These various arrangements for working time and improvements to working conditions help to limit absenteeism.

2020	2019
United	France	France	Middle
States	excluding	infra-	East,
and	Infra-	structures	Rest of	Latin	Asia &
GRI 403-2	Canada	structures	and others	Europe	America	Africa	Others	Group	Group
Absenteeism	2.6%	7.0%	8.9%	5.9%	3.3%	3.8%	5.1%	6.0%	5.2%
Absence due to sickness	0.8%	5.3%	3.9%	4.2%	1.6%	1.0%	1.9%	3.8%	3.4%
% reporting	100%	100%	100%	100%	100%	100%	100%	100%	99.13%

3.4.4.2

Inclusion and job-seeking support

ENGIE is a major, engaged and active player and develops many innovative initiatives in partnership with its ecosystem to promote learning.

A founding member of the Collectif des entreprises pour une économie plus inclusive ("group of companies for a more inclusive economy"), since 2018 the Group has been taking action countrywide, alongside 34 large companies and public authorities, to promote the inclusion of young people, particularly those who have been distanced from employment or come from the most disadvantaged areas. In particular, ENGIE has undertaken to host 3,000 young people from priority neighborhoods for a period of three years, from the third grade until they start their working lives.

The Group is committed to the social and professional inclusion of people in severe difficulty or in a situation of exclusion via the Parcours Emploi - Mobilité - Sport (PEMS) program. This program helps young people aged 17 to 26 from priority neighborhoods, or young isolated minors supported by child welfare or charities, to sign up to a work-study contract. More than 300 young people have been supported by the initiative since it started in 2016, with a positive exit rate still above 60%. For this initiative, ENGIE relies on a network of volunteer employee sponsors, who help the young people find work-study contracts and a host company while providing them with moral support. To combat isolation during lockdown, ENGIE stepped up its commitment by distributing computers and packed lunches to the young people on the program.

In 2020, the Group made a commitment alongside the apprenticeship foundation, Fondation Innovations Pour les Apprentissages (FIPA), to support the "Ingénieuses" program, assisting around a dozen female work-study students taking the vocational baccalaureate who want to gain a higher technician's license and then enter a general engineering school.

With Nestlé, ENGIE has launched the "Apprenti Swap" pilot project, in which four young people hired as apprentices are taking part in a two-year master's 2 in Digital Marketing, starting in the autumn of 2020, spending one year as an apprentice at each of the two partner companies.

At the European level, ENGIE has been a partner in the Alliance for Youth movement since December 2015. It renewed its support for the "Entreprendre Pour Apprendre" initiative, providing seven Group volunteers to coach six mini-enterprises and funding 50 "European Skills Pass" places in the 2019-2020 school year. With its coalition partners, the Group made recommendations to the European Commissioner for Employment and members of the European Parliament to promote actions in favor of young people.

At the global level, ENGIE became a member of the Global Apprenticeship Network (GAN), a worldwide network of apprenticeships chaired by France since November 2020. ENGIE also assists with job creation via its employment foundation, Fondation Agir Pour l'Emploi (FAPE), which operates under the auspices of the Fondation de France. The foundation's resources come from donations by Group employees and retirees, which are fully matched by their companies. Since its establishment in 2013, FAPE (in France and Belgium) has awarded more than €1.7 million in grants for 150 projects working for access to employment and against exclusion. These 150 projects created 250 jobs and consolidated 250 across the region. The SNC (Solidarité Nouvelle contre le Chômage) is one of the associations that FAPE supports. Volunteers from ENGIE partner up to mentor around a dozen people in long-term unemployment living in Ile-de-France. Lastly, for the ninth straight year, ENGIE raised awareness of intergenerational issues among around 40 employees by taking part in the Octave program, a powerful tool for change led by Danone. By opening itself up to other enterprises in this way, ENGIE has developed its capacity for innovation.

3.4.4.3 3.4.4.3.1

Diversity

Employees with disabilities

ENGIE is fully committed to the area of disability, including at the highest levels of the Group. In France, it is mainly involved in recruitment, integration, support and job retention, awareness-raising, communication and collaboration with the sheltered sector. In 2019, the Group reaffirmed the need for collective corporate action by signing, alongside 130 largecompanies, the "Manifesto for the Inclusion of People with Disabilities in Economic Life". Through this charter of operational commitments, ENGIE is taking action, with the other signatories, that includes bringing the world of education and the world of work closer together, in order to help young people discover occupations and access the labor market through work-study programs.

Thanks to financial and human resources -€3 million per year on average and more than 20 disability officers supported by local representatives - ENGIE has more than 2,800 employees with disabilities in France and around 3,300 worldwide. ENGIE's direct employment rate in France was 3.7% in 2020

ENGIE sees work-study programs as a lever for recruiting young people with disabilities. The Group has undertaken to make a substantial effort to recruit people with disabilities for work-study programs each year, aiming for a level of 3% by the end of 2021 in France, i.e. more than 200 people with disabilities on work-study programs. At the end of December 2020, the estimated level of work-study students with disabilities was close to 1.2%. During the health crisis, an experiment took place in the Nantes area in conjunction with vocational high schools. Humando Pluriels, a partner of ENGIE, sourced candidates and facilitated the hiring of four people to technical occupations on a work-study basis, including three women, who are being retrained and who have disabilities.

The collaboration with the protected and adapted work sector makes the inclusive vision of the Group's CSR commitments a reality. It aims to ensure the viability of indirect jobs, promote the local economy and encourage professional integration. In France, ENGIE is a partner of the GESAT network. It puts ENGIE in economic contact with service providers in the protected and adapted work sector. The services provided represented around €7 million in 2020.

3.4.4.3.2

Religious diversity

One of the 26 legal criteria of the principle of non-discrimination applies to the actual or perceived adherence to a religion. ENGIE is committed to ensuring that no employee or applicant is treated unfavorably because of their religious beliefs. To support managers with this issue, in 2015 the Group prepared some points of reference on religious diversity in the company. This guide was updated in 2019 and provided to the entities, along with an interactive version and a meeting coordination kit.

3.4.4.3.3 LGBT+ (Lesbian, Gay, Bisexual, Transgender/Transsexual plus)

As part of its initiatives to boost diversity and combat discrimination, ENGIE signed the L'Autre Cercle's LGBT+ commitment charter on December 6, 2017. In 2019, ENGIE participated in the IFOP-L'Autre Cercle survey, which made it possible to assess the perception of employees, regardless of their sexual orientation or gender identity, of the inclusion of LGBT+ people in their working environment and to take the necessary steps. In October 2020, in France, ENGIE published the practical guide "LGBT+, understanding to act together" in order to raise awareness of the question of LGBT+ in the workplace. ENGIE participated in the 2020 edition of L'Autre Cercle's 95 LGBT+ & Allié.e.s au Travail Role Models in France. Two employees were designated in the LGBT+ Leaders and Allié.e.s Dirigeant.e.s Role Models category.

3.4.5

Remuneration, social protection, employee savings plans, and employee shareholding

3.4.5.1

Principles of the remuneration policy

Group policy is to offer everyone remuneration that is personalized, fair and competitive on the market, which reflects the performance and level of responsibility of each person. The Group uses external information provided by specialized firms to establish its positioning in relation to the local reference market. It also ensures compliance with theminimum wages applicable in the different countries in which it operates. The overall remuneration structure consists of a base salary and, depending on the level of responsibility and the country, variable remuneration schemes to reward collective and individual performance.

3.4.5.2

Social protection

ENGIE ensures that it adheres to the best practices of major international groups in the area of social protection and ensures the competitiveness of its entities' systems in relation to local practices. In 2020, ENGIE rolled out the ENGIE Care social protection program worldwide. It allows each employee to benefit from health coverage, guaranteeing reimbursement of at least 75% of costs in the event of hospitalization. It also protects the employees' family or loved ones in the event of their death or permanent disability by paying a benefit equal to at least 12 months' salary. Moreover, ENGIE Care offers 100% coverage for a minimum of 14 weeks of maternity leave and a minimum of four weeksof paternity leave. ENGIE Care accelerates the Group's performance in terms of employee benefits by providing access to a pool of international insurance policies with optimized subscription conditions and the possibility to share local and global surpluses.

As well as protecting employees against the vagaries of life all over the world, ENGIE Care contributes to the attractiveness of the Group and the employee retention. It facilities a better home-life balance. It improves equal opportunities between men and women and strengthens ENGIE's CSR policy.

3.4.5.3

Group employee savings plans policy

The Group's employee savings plans are available to employees of companies that are fully consolidated or whose share capital is majority-owned, directly or indirectly, by ENGIE SA.

3.4.5.3.1

Savings plans

In France, since the end of 2009, the Group's employees have had access to a Group Savings Plan (Plan d'Épargne Groupe - PEG), which includes employee shareholding funds as well as a large range of diversified savings options totaling close to €2 billion in assets at the end of 2020. Outside France, measures have also been put in place in some countries to allow employees to save, under terms adapted to local laws.

3.4.5.3.2

Retirement savings plans

In France, since 2010, all employees may, at their own pace, build funds for retirement by paying into the ENGIE Group Collective Retirement Plan (Plan d'Épargne pour la Retraite Collectif - PERCO). Outside France, products exist in some countries that allow employees to supplement their pensions by making voluntary contributions on favorable terms.

3.4.5.3.3

Solidarity funds

In France, the ENGIE solidarity employee mutual Fund (FCPE) called "Rassembleurs d'Énergies Flexible" is one of the largest dedicated solidarity funds in the French market. It has supplemented the range of Group Savings Plan and Retirement Savings Plan investment products since the beginning of 2012 and enables employees to take part in a social initiative that is consistent with their occupations.

3.4.5.4

Profit-sharing and incentive plans

Due to the existence of legally separate companies, there is no common collective profit-sharing and incentive plan for the Group. Collective variable compensation systems are widely developed in the subsidiaries. In 2020, the employees of the various French subsidiaries thus saved nearly €80 million in Group employee savings plans, to which was added a further €27 million.

At the ENGIE SA level, a profit-sharing agreement was signed with three representative trade unions on July 20, 2020. This agreement provides for the payment of an envelope of 7% of

3.4.5.5

Employee shareholding

With an employee shareholding level of 3.2%, ENGIE has a particularly dynamic and innovative shareholding policy. ENGIE periodically organizes the global employee shareholding operation known as "Link". ENGIE carried out the largest employee shareholding operation of 2018 with a volume of €340 million. This operation was subscribed by more than 40,000 employees worldwide at attractive conditions in terms of discount and employer contribution.

the principal remuneration in the event of the achievement of financial (3%) and non-financial (4%) targets. The amount paid out in 2020 for 2019 profit-sharing was €15,574,863. The agreement setting up the employee profit-sharing system for ENGIE SA was signed on June 26, 2009. Application of the statutory profit-sharing formula for 2019 resulted in no payment being made to employees in 2020.

ENGIE is also particularly innovative as it is the only issuer to offer a "LINK +" structured product. Its 10-year lock-up period in return for a discount and a specific employer contribution enabled the largest number possible to subscribe by offering payment terms spread over time. Given the resources employed, this type of operation does not take place every year.

3.4.5.6

Performance shares/Long-term incentives

ENGIE grants performance shares, which are described in detail in Section 4.4.3. These shares, which have a minimum maturity of three years, are subject to internal and external performance conditions. This system is not reserved forexecutives, and ENGIE has for several years granted performance shares to more than 7,000 employees around the world.

3.4.6

Social dialogue

Within national and European representative bodies and through national, European and global collective bargaining agreements, ENGIE involves its social partners in theimplementation of its Social Ambition, which has been opened and broadened to take into account environmental and societal challenges.

3.4.6.1

Representative bodies

At Group level, social dialogue is organized around two representative bodies that are privileged forums for consultation between management and employee representatives:

• The European Works Council (EWC): comprising 41 full members representing the Group's 140,813 employees throughout Europe, the purpose of the EWC is to develop and strengthen European social dialogue, ensure balanced representation between the Group's countries and main business activities, and develop social dialogue within these activities. A secretariat with 13 members representing eight countries meets every two months. In 2020, the EWC held two plenary meetings, along with sixEWC secretariat meetings, and eight meetings of the health and safety, social, strategy and research working groups. It should be noted that from April, meetings have been held by videoconference due to restrictions on travel and physical meetings owing to the health crisis.

• The French Group Works Council: this body, which represents more than 78,400 employees in France, has 30 full members. The French Groupe Work Council is an information body with representatives of institutions representing the employees of French companies. Two meetings were held in 2020.

3.4.6.2

Group collective bargaining agreements

In line with its commitments, in September 2020 ENGIE opened negotiations with the international union federations for a worldwide agreement on fundamental rights and social

responsibility. This agreement is expected to be concluded in the first quarter of 2021.

3.4.7

Note on the calculation method for social indicators

3.4.7.1

Tool

The social indicators are derived from Group social reporting (GSR). These are set out in a shared Group database that may be viewed on request. The collection, processing and reporting of data entered by the local entities, subsidiaries of the ENGIE Group, is carried out in the SyGMA consolidationtool, in accordance with the IFRS financial scope. The indicators published in this report relate to fully consolidated companies, whose capital and management are under the control of ENGIE. The social indicators are fully consolidated, regardless of the percentage of the company's capital owned.

3.4.7.2

Scope of reporting

The Group data include those of the BUs existing in 2020 and of Corporate, grouped into seven reporting sectors that essentially correspond to the geographical areas of the Group's activities (see Section 1.6 for further details). Areporting percentage is attached to each indicator, according to the workforce covered. Data relating to professional training in the GTT BU and for some US entities have been excluded.

3.4.7.3

Consolidation methods

The content of the report is based on indicators selected to reflect the main social and societal impacts of the Group's activities. The indicators are chosen in accordance with the Global Reporting Initiative (GRI) standards.

The indicators for this report are consolidated using defined procedures and criteria. Data on the organization's structure, employee turnover, working conditions, training and safety were consolidated by aggregation.

3.4.7.4

Internal control

The social data are successively consolidated and verified by each operational entity and by each BU, before reaching the Group HRD level.

3.4.7.5 3.4.7.5.1

Additional information on some indicators Employment

Administrative employees are recognized under "senior technicians and supervisors". The Belgian entities in the energy sector do not declare "manual workers, clerical staff and technicians" (Electrabel). Contractually, unskilled or low-skilled workers have employee status. This might cause an underestimation of this category. The French concept of cadres (managerial staff) (≥ 300 points on the Hay Guide Chart, the universal job classification and evaluation system) is sometimes difficult to understand in other countries. This can lead to a slight underestimation because some entities may take only their senior management into account.

3.4.7.5.2

Employee flows

Indicators in this section have been calculated on a current scope basis, i.e. the fully consolidated reporting entities included in the scope of consolidation at 12/31/Y.

The lay-offs indicator does not include contractual terminations.

3.4.7.5.4

Career development

When all data cannot be provided within the timelines, the most recent are provided as well as a forecast of the missing data at year-end.

Training: the definition of the indicator was changed in 2020 to ensure that it included face-to-face and e-learning training courses. The format and duration of a training may vary but must include a description of educational content. The breakdown of training hours by topic does not include e-learning hours.

3.4.7.5.5

Organization of working time

The working hours of personnel within the Group companies are organized within the legal framework for working time, which varies from country to country.

Days of absence per person are calculated according to the Group convention of eight hours of work per day.

3.4.7.5.3

Diversity and equal opportunity

The declared percentage of people with disabilities provides the best possible information on the inclusion of people with disabilities. The Group does not consider it relevant to provide a reporting percentage for this indicator, since some entities are unable to gather the relevant information due to local regulatory restrictions.

3.4.8

Health and safety policy

3.4.8.1

Performance

The Group's performance in terms of health and safety is as follows:

• a total frequency rate of lost-time accidents for employees and subcontractors operating on site with controlled access of 2.7, which is well below the maximum target for the year of 3.3. The impact of the public health crisis on this performance was particularly significant during lockdown periods in the countries in which the Group operates;
• a severity rate of occupational accidents of 0.11 which, in the unprecedented context of 2020, was down markedly compared with the previous year (0.14 in 2019).

3.4.8.2

The health and safety management system

The Group's health and safety policy sets out the key principles for the management of health and safety. This policy was subject to an agreement with the representative bodies of European personnel and the representatives of the global federations.

To implement these principles, the Group's Health and Safety Rules set out the minimum standards and requirements that apply within the Group.

3.4.8.2.1

Performance reporting

The Group's performance in terms of health and safety in the workplace and process safety are monitored by:

• the Executive Committee;
• the Board of Directors;
• the Ethics, Environment and Sustainable Development Committee (EESDC).

In 2020, all analyses of fatal workplace accidents were presented to the Executive Committee and to the EESDC. Regular updates were also provided at meetings of the Board of Directors and of ENGIE 50 (all directors of the BUs and the Group's main functional departments).

The health and safety performance is shared with managers and the Group's health and safety functional line. It is distributed to the BUs via managers and made available to all employees on the Group intranet.

Periodic updates and annual reviews are carried out with each BU in order to assess the effectiveness of the measures implemented. These also serve to evaluate the BUs capacity to prevent serious and fatal accidents involving employees and subcontractors.

The number of fatal accidents arising from the exercise of a professional activity among all Group employees, temporary workers and subcontractors was six in 2020 - three employees and three subcontractors.

In the field of occupational health, the number of new cases of recognized occupational illness was 106 in 2020, marking a decrease compared with 2019 (120).

From the beginning of the crisis, the Group decided to limit contamination as much as possible by drawing on the best external practices. The Group enlisted a service provider specialized in managing health risks in different territories to help guide its decision making. Measures to prevent the infection of employees, subcontractors and customers were applied which took into account the contamination level in each country.

Managers were made aware of the need to reinforce communication and listening time with both employees working from home and those active at their usual places of work. Particular attention was paid to detecting weak signals that are markers psychological discomfort. The BUs carried out regular surveys of their employees to assess their well-being at work. These made it possible to qualify their feelings, in particular regarding the support provided to them, and to identify any needs they might have.

All employees were provided with masks suited to their activities, thanks to rigorous inventory management. The Group introduced weekly monitoring of the number of contaminated employees. Contamination rates remained in line with those of the countries in which the activities were carried out.

The system put in place was part of a continuous improvement cycle. Feedback from BUs expressing their needs and sharing any difficulties helped adapt the prevention system to the Group's various organizational levels. A more in-depth survey was carried out during summer 2020 covering both health and safety and human resources aspects. This survey helped identify areas for improvement, such as the need to adapt the Group's Covid-19-related rules in order to maintain them over the long term.

3.4.8.2.2

The management of risks arising from the Covid-19 pandemic

To manage the risks arising from the Covid-19 health crisis, crisis management committees were set up at the different levels of Group governance. A Group Covid-19 steering committee was tasked with supervising ENGIE's actions. In addition, three specific committees were created, of which one dedicated to the protection of people. This committee was responsible for drafting and then adapting general health risk management guidelines as well as various thematic guidelines.

A dedicated communications system was set up to support the roll out of the various personal protection measures. Throughout the crisis, the health and safety, human resources and communication functional lines worked in close collaboration with the Group's various organizational levels. This collaboration helped to implement prevention measures that were best-suited to the various situations faced by the BUs.

3.4.8.2.3

The management risks relating to health and safety at work

Vigilance in terms of risks to health and safety at work was stepped up during the Covid-19 period, in particular when resuming activity after a period of lockdown. The aim was to avoid the risk of contamination would overshadow the other risks which remained present. A targeted communication campaign was launched to ensure this. Alongside its major investment to manage the pandemic-related risk, the Group continued to improve its management of risks in the workplace.

The action program to reinforce the safety culture of everyone, with a focus on preventing serious and fatal accidents ("No Life at Risk") continued. This program includes various provisions such as "Life-Saving Rules", the suspension of work if safety is not guaranteed ("Stop the work" process), and the identification of events with a high potential for serious repercussions (see Section 3.4.8.4). These provisions are subject to regular awareness-raising campaigns within the entities.

During 2020 ENGIE improved its lifting risk management. The Group and its BUs thus rolled out various tools to manage this risk which focused on the key stages of lifting operations. Guidelines, a risk-awareness raising video and a tool for the self-assessment of compliance with fundamentals were also made available to the operational teams.

Over the last several years, the Group, its BUs and subsidiaries have stepped up the number of initiatives aimed at improving the well-being at work of their employees. In 2020, the Group set up a network of well-being at work contacts, with the following objectives:

• to pool existing tools and resources and those being developed;
• to design new tools;
• to share feedback and best practices between BUs;
• to reinforce the sharing of information between the human resources and health and safety functional lines.

Particular attention has been paid to the management of psycho-social risks, in particular through measures to improve well-being at work.

3.4.8.3

Strengthening the health and safety culture

Various tools were used to strengthen the health and safety culture among the Group's employees and subcontractors. The Group's ambitions in terms of health and safety, major measures to be implemented, as well as the Group's performance, have been regularly presented to the Group's senior executives. The "No Life at Risk" action plan, which covers in particular the prevention of serious and fatal accidents, continued to be implemented.

The health and safety functional line animation makes extensive use of digital tools, with a great deal of work going

3.4.8.2.4

Definition of the new 2021-2025 action plans

The Group's objectives in terms of health and safety at work, which are reflected in its policy, are set out in multi-annual action plans. The new 2021-2025 action plan covers the Group four major health and safety challenges:

• leadership : to improve the accountability of all managers when taking into account health and safety risks;
• forward planning, by prioritizing the identification and management of events events with a high potential for serious repercussions (called "HiPo");
• integration, with the aim of rapidly bringing the standards of newly-acquired companies up to the Group level;
• acculturation, by sharing our health and safety culture with all our employees and our subcontractors.

The new action plan covers three areas of prevention:

• "No life at risk", the management of physical risks relating to the direct execution of activities;
• "No mind at risk", well-being at work, vigilance, the management of risks relating to the context of activities being executed;
• "No asset at risk", dedicated to the safety of our industrial activities.

Two major cross-functional drivers will be implemented:

• the use of digital tools with the aim of improving the safety of Group employees and subcontractors, as well as improving their well-being at work;
• communication to support the strengthening of the health and safety culture and the commitment of each individual.

into dissemination of information to the various BUs and entities. This work is supported by the organization of thematic monthly webinars, the presentation of the analysis of fatal accidents and the provision of various technical support.

A weekly newsletter, "Prevention News", covering most of the exchanges with the BUs, was sent out to the entire health and safety functional line. This document enables information on all accidents, significant hazardous situations and events with high potential of severity (HiPo) to be shared Group-wide.

3.4.8.4

Prevention of serious and fatal accidents

The Group has defined nine "Life-Saving Rules", which constitute the last barrier before a serious or fatal accident, if all other barriers have not worked. The BUs have also implemented a systematic approach to identifying, analyzing and handling events with high potential of severity (HiPo) that are precursors to serious accidents.

Moreover, operators are asked to stop working if safety conditions are not met (the "Stop the work") approach. Operators must also implement "the life-saving minute", which consists of carrying out a new on-site review of risks to ensure that these are correctly under control.

Finally, the Group expects all of its employees to be mindful of the safety of others, under its "shared vigilance" provision.

3.4.8.5

Dialogue with social partners

In 2020, dialogue with employee representatives continued at all levels of the Group and particularly with global and European bodies. A permanent health and safety at work working group has been set up within the European Works Council. Each half year, this working group reviews the performance and actions taken in terms of health and safety at work.

With regards to the management of the pandemic, the representative bodies were regularly informed and consulted regarding new provisions to be implemented.

Health and safety data

Additional information regarding the health and safety indicators

The analyses carried out in this document concern the entities and activities in which ENGIE has operational management, regardless of the method of financial consolidation.

The health and safety at work reporting scope includes the data of entities sold during the year up to their date of transfer. Concerning the indicator number of new cases of occupational illness, we do not consider it relevant to provide a refund rate since some companies cannot collect this indicator due to local regulatory constraints.


GROUP (1)
2020
% reporting
2019
% reporting
2018
% reporting
NORTH AMERICA
2020
% reporting
2019
% reporting
2018
% reporting
FRANCE EXCLUDING INFRASTRUCTURE
2020	1
% reporting	100%
2019	1
% reporting	100%
2018	1
% reporting	100%
FRANCE INFRASTRUCTURE
2020	0
% reporting	100%
2019	0
% reporting	100%
2018	1
% reporting	100%
REST OF EUROPE
2020	1
% reporting	100%
2019	0
% reporting	100%
2018	0
% reporting	100%
LATIN AMERICA
2020	1
% reporting	100%
2019	0
% reporting	100%
2018	1
% reporting	100%

Number of
Number of fatal	Severity rate (2)	new cases of
accidents	Frequency rate	(French	Severity rate (2)	occupational
(employees)	(employees) □□	framework)	(ILO framework)	illness
3	3	0.19	0.11	106
100%	100%	100%	100%
2	3.7	0.21	0.14	120
100%	100%	100%	100%
4	3.4	0.19	0.13	91
100%	98%	98%	98%
0	1.03	0.08	0.05	1
100%	100%	100%	100%
0	1.73	0.11	0.09	0
100%	100%	100%	100%
0	1	0.03	0.03	0
100%	100%	100%	100%
4.47	0.36	0.19	4
100%	100%	100%
5.25	0.36	0.21	108
100%	100%	100%
5.22	0.34	0.20	82
100%	100%	100%
2.02	0.07	0.07	0
100%	100%	100%
2.1	0.10	0.08	0
100%	100%	100%
2.47	0.12	0.07	1
100%	100%	100%
3.27	0.19	0.12	1
100%	100%	100%
3.60	0.23	0.17	5
100%	100%	100%
3.72	0.12	0.11	0
100%	100%	100%
2.83	0.07	0.06	84
100%	100%	100%
5.28	0.12	0.09	6
100%	100%	100%
1.84	0.10	0.10	1
100%	100%	100%

3.5 Environmental information

Number of


MIDDLE EAST/AFRICA/ASIA
2020
% reporting
2019
% reporting
2018
% reporting
OTHER
2020
% reporting
2019
% reporting
2018
% reporting
(1) Groupe covers the ENGIE 7 sectors

Number of fatal	Severity rate (2)	new cases of
accidents	Frequency rate	(French	Severity rate (2)	occupational
(employees)	(employees) □□	framework)	(ILO framework)	illness
0	1.26	0.02	0.02	0
100%	100%	100%	100%
1	1.09	0.02	0.01	0
100%	100%	100%	100%
0	0.48	0.01	0.01	4
100%	80%	80%	80%
0	0.68	0.02	0.02	16
100%	100%	100%	100%
0	1.64	0.03	0.03	1
100%	100%	100%	100%
0	1.09	0.03	0.03	0
100%	97%	97%	97%

(2) The evolution of severity rates does not include fatalities

3.5

Environmental information

ENGIE faces the main environmental challenges: climate change, the quality and availability of natural resources (air, water, soil and energy) and the protection of biodiversity and ecosystems. Although its activities sometimes have an impact on ecosystems and natural resources, the Group seeks to measure and reduce this via the environmental management of its activities.

ENGIE's challenges and ambitions in this area are reflected in the Group's environmental policy (available on the ENGIE website) and in the performance indicators deployed across all its activities. The challenges also include the risks identified in the environmental vigilance plan. A team in charge of analysis and coordination is specifically dedicatedto environmental responsibility and reports to the Director of Environment. It has environmental coordinators in each BU who lead their own networks of coordinators, organize actions, supplement corporate expertise with their knowledge of operations, and implement environmental reporting.

The Corporate Social Responsibility Department produces an annual report which is sent to the Executive Committee and then presented to the Board of Directors' Ethics, Environment and Sustainable Development Committee. This report is supplemented by BUs' own reports and letters of environmental compliance, as well as the results of environmental audits ordered by the Executive Committee.

3.5.1

Legal and regulatory framework

The Group actively monitors regulatory developments (set out in Chapter 2 "Risk factors and controls"), stating its positions while they are being prepared and applying the new rules as soon as they are published. In particular, the Group has been calling for the harmonization of international regulations and greater integration between the various environmental and energy policies. In the run-up to COP21, the Group strongly pledged to support an ambitiousinternational climate agreement to limit the global temperature rise to 2°C. It also pledged to support the more widespread application of regulations on carbon pricing, which would be a price signal for investment in low-carbon technologies and an incentive to reduce greenhouse gas emissions. To this end, the Group plays an active role in the CPLC (Carbon Pricing Leadership Coalition).

3.5.2

Environmental management

At the end of 2020, the entities that had implemented an Environmental Management System (EMS) accounted for 75.7% of relevant revenue (1). The need to obtain external EMS

certification is assessed locally with regard to local economic conditions and benefits.

(1) Relevant revenue excludes revenue generated by activities not considered pertinent in terms of environmental impact (services, trading, sales, activities, etc.)

Non-Financial Statement and CSR information 3 3.5 Environmental information

Percentage of relevant revenue covered Indicator title

ENGIE 2020 3.72% 57.25% 2.80% 63.77% 11.92% 75.68%

ENGIE 2019

ENGIE 2018

By an EMAS certification
By an ISO 14001 (non-EMAS) certification
By another external EMS certification

3.09% 2.42%

59.09% 65.99%

2.90% 2.15%

TOTAL EXTERNAL CERTIFICATIONS

By an internal certification (but not by a certified EMS)

TOTAL INTERNAL AND EXTERNAL EMS

65.08% 7.36% 72.43%

70.57% 9.73% 80.30%

When the implementation of a certified or registered management system is not economically justified, entities are encouraged to define an internal management system ensuring concern for the environment in carrying out their activities. As a result, some Group entities have defined theirown management system standard. When an internal or external EMS is implemented, employees take part in awareness and training sessions relating to the environmental issues they encounter at their sites so that they adopt the EMS and make it their own.

3.5.3

Performance control and measurement systems, a prerequisite for environmental responsibility

To monitor the implementation of its environmental policy, control environmental risks and encourage the communication of its environmental performance to stakeholders, ENGIE implements a specific reporting system that goes beyond the requirements of French law and which takes into account the Global Reporting Initiative (GRI) recommendations.

Methodological elements

ENGIE conducts its environmental reporting using a dedicated tool that allows data to be reported following a defined methodology. This tool, called EARTH, is an environmental reporting IT solution used to manage the network of environmental correspondents and coordinators; to handle the management and documentation of the scope of environmental reporting; to manage data entry, monitoring and consolidation of indicators; to draft reports; and to provide the documentation necessary for producing and collecting data (reporting procedures and instructions). EARTH is deployed in each of the BUs and thus covers the entire ENGIE organization.

The legal entities included in the reporting scope are those whose operations are relevant in terms of environmental impact and that are consolidated fully or proportionately under the rules of financial consolidation (IFRS). Legal entities solely engaged in energy trading, financial activities or engineering are excluded. The selected entities report on the performance and impacts of the industrial facilities over which they have technical operational control, including facilities operated on behalf of third parties. Legal entities consolidated at equity are excluded.

Thus, in accordance with the rules of financial consolidation, 100% of the impact data collected is consolidated when the entities are fully consolidated. For entities proportionately consolidated, the environmental impact data are consolidated in proportion to the Group's consolidation rate provided that it has 100% technical operational control or that, as a minimum, this is shared with other shareholders.

For disposals occurring during the year, the entities concerned complete the environmental questionnaire with the data available as of the last day of the month preceding the disposal. If it is not possible to collect all the environmental indicators,Environmental reporting is closely tied to operational performance reporting, thus becoming a management tool. The Group's Executive Committee transmits this goal of making environmental concerns an integral part of management responsibilities.

A system of letters for environmental compliance ensures operational management involvement.

they are extrapolated on the basis of the main activity (e.g., energy production for a power plant) and historical data. For acquisitions made during the year, it may happen that their environmental management system is not sufficiently mature to meet all the environmental indicators. In this case, the missing indicators are extrapolated on the basis of the main activity and indicators available in entities with a similar technical profile. A correction of these extrapolated values can be made a posteriori the following year, at the end of the first full fiscal year.

To calculate environmental management indicators such as the "share of relevant revenue covered by an environmental certification, an environmental crisis management plan, etc.", the relevant revenue is estimated for each legal entity. To obtain the relevant revenue, operations regarded as "not relevant in terms of environmental impact" (e.g. trading, finance and engineering) are stripped out of the consolidated revenue figure for each legal entity.

The environmental data reporting procedures encompass general procedures defined as standard guidelines to be implemented at the appropriate levels of the reporting process. Procedures and guidelines are rolled out Group-wide via a network of duly mandated environmental contacts and coordinators. These procedures and guidelines at Group and BU level describe in detail the environmental data collection, control, consolidation, validation and transmission phases at the different levels of the organization, as well as the rules for defining the scope of consolidation. They include technical documents that provide methodological guidelines for the calculation of some specific indicators. Depending on its activities, each entity is assigned a profile that determines the indicators to answer. The list of the entities included in the scope of environmental reporting is approved by each BU.

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Engie SA published this content on 22 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 March 2021 14:38:01 UTC.

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May. 02	CAC40: down towards 7900pts, weighed down by Stellantis and STMicro	CF
May. 02	Engie, EDP Renewables JV Securer Feasibility License for Australian Offshore Wind Farm	MT

CAC40: down towards 7900pts, weighed down by Stellantis and STMicro	May. 02	CF
Engie, EDP Renewables JV Securer Feasibility License for Australian Offshore Wind Farm	May. 02	MT
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ENGIE : Goldman Sachs reaffirms its Buy rating	Apr. 30	ZD
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France's Engie to Sell Moroccan Coal Plant Stake By 2027	Apr. 29	MT
Engie SA entered into agreement to acquire Ostwind International SAS and Ostwind Engineering S.A.S from Ørsted A/S.	Apr. 28	CI
Engie to Divest from Morocco's Safi Coal Plant Before 2027	Apr. 26	CI
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RTX Signs Renewable Electricity Deal With Engie Resources	Apr. 18	MT
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Engie Buys Two Biomethane Plants in the Netherlands	Apr. 16	MT
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Engie, Iberdrola and Funds Reportedly Eye Bids for Electricity North West	Apr. 15	CI
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