Under the Euro Medium Term Note Programme ... - Finance - EDF

Risk Factors
transmission networks must regularly monitor electromagnetic fields generated by power
lines. The results of these actions must be submitted annually to the French Environmental
and Occupational Health and Safety Agency (Agence française de sécurité sanitaire de
l’environnement et du travail), which will publish them. All of the foregoing could expose the
EDF Group to risks of increased litigation or lead to the adoption of more stringent and costly
safety measures for the operation or construction of transmission or distribution networks.
Lastly, and more generally, the EDF Group operates or has operated facilities which, as
currently operated, could be or could have been the source of industrial accidents or
environmental and public health impacts (such as inadequately controlled emissions,
leakages in electricity supply lines insulated with pressurised oil, a failure of decontamination
facilities, pathogenic micro-organisms, asbestos, polychlorobiphenyls (“PCBs”), SF6 gas
emissions, etc.). In particular, large quantities of hazardous materials (in particular, explosive
or flammable materials, such as gas and fuel oil) are stored in certain facilities. These
facilities may be located in industrial areas where other activities subject to similar risks are
operated, which means that the EDF Group’s own facilities may be impacted by accidents
occurring at neighbouring facilities owned by other operators and not under the EDF Group’s
control.
In accordance with ISO 14001, the EDF Group implements appropriate measures to prevent
and, if necessary, repair any industrial accidents or environmental damage caused by the
facilities that it operates. These measures are intended, in particular, to protect the EDF
Group both against the risk of an accident (such as explosion, fire, etc.) occurring in its own
facilities and against the impact of such an accident occurring in a neighbouring facility
owned by a third party. However, in general, the EDF Group cannot guarantee that the
measures taken to control these risks will prove fully effective if any of the events listed
above were to occur. An accident of the type described above could have serious
consequences for persons, property and business continuity, and the EDF Group could be
found liable. Insurance policies for civil liability and damages taken out by the EDF Group
could prove to be significantly inadequate, and the EDF Group cannot guarantee that it will
always be able to maintain a level of cover at least equal to current cover levels and at the
same cost. The frequency and magnitude of natural disasters seen over the past few years,
in particular the nuclear accident that occurred in Japan in March 2011, could have a
significant impact on the capacities of the insurance and reinsurance market and on the
costs of civil liability and damages insurance cover for the EDF Group. Such accidents could
also lead to the shutdown of the facility affected and, potentially, of similar facilities that may
be considered to present the same risks.
Lastly, facilities or assets operated by the EDF Group may be targeted by external attacks or
malicious acts of any kind. Safety measures were incorporated into the design of the facilities
and sites, and protective measures have been taken by EDF. Moreover, safety measures to
counter all forms of attacks have been implemented in conjunction with the public authorities.
Nonetheless, like any safety measures intended to counter an external threat, the EDF
Group cannot guarantee that these will prove fully effective in all cases. An attack or
malicious act committed on these facilities could have consequences such as damage to
persons and property, the EDF Group’s liability being sought on the basis of measures that
are judged inadequate and interruptions to operations. In addition, the EDF Group cannot
guarantee that European and national legislation regarding the protection of sensitive sites
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