Carrefour - 2017 Registration Document

CORPORATE SOCIAL RESPONSIBILITY CSR at Carrefour 2017 REGISTRATION DOCUMENT | CARREFOUR 2. 34 Driving CSR policy Carrefour’s CSR methodology Carrefour’s CSR methodology can be split into four iterative steps: review and improve strategy and objectives; plan; act, innovate and assess performance; and ensure risks are managed. Change is shared at operational level by countries, stores and across all business lines. Innovation is promoted as a source of creativity that brings new solutions, as ideas are shared among all of the stakeholders. Dialogue with stakeholders is the essential component of the methodology. CSR governance is based on materiality analysis, Stakeholders’ Meetings and CSR Committees. CSR reporting comprises monitoring and reporting the Group’s non-financial performance. It is also subject to an external audit and results in non-financial performance ratings for Carrefour by the ratings agencies. CSR reporting consists of several documents and events, including this Registration Document, the year-end financial results, and conferences, days and meetings organised specifically for investors. CSR governance The Carrefour Board of Directors' CSR Committee meets at least twice a year. In 2017, the committee assessed the progress made by the Group’s CSR policy and the results obtained in relation to issues surrounding responsible procurement (e.g., milk, beef and bananas), waste management, and customers’ perception of CSR. Formed more than ten years ago, the Group’s CSR department oversees implementation of the CSR methodology to help meet Carrefour’s objectives in all of the countries where the Group operates. It reports directly to the Group’s General Secretary. Rollout of CSR Governance relies on the CSR departments in each country who have managers tasked with implementing and coordinating CSR action plans. The Group distributes national CSR results and objectives to each Country Executive Director. To coordinate and manage all aspects of CSR policy, each Country Executive Director has appointed a CSR correspondent and oversees the implementation of projects. Teams from the various countries take part in international events, such as the Great Supplier Challenge (see Section 2.4.2). Business lines are arranged into networks (merchandise, supply chain, quality and CSR, technical, finance, etc.) which are used to exchange information between countries and business lines. CSR follows this same information stream to call on operational teams and encourage them to propose innovative projects based on the pillars of the CSR strategy. For certain activities, such as the sourcing of imported non-food products or seafood, Carrefour joins forces with its business lines to establish the purchasing rules to be followed, and carries out compliance checks to ensure these rules are applied. Each store assimilates and implements the planned actions and commitments made. Stores are still the main stage for the Group’s CSR policy, through, for example, the Antigaspi waste reduction initiatives, partnerships with beekeepers, relationships with waste treatment facilities and food donations. Improving the CSR strategy and objectives 2.1.2 Carrefour’s CSR strategy is built around four criteria taken from the CSR Index, namely: Waste reduction (detailed in Section 2.2); ● Biodiversity (detailed in Section 2.3); ● Partners (detailed in Section 2.4); ● Social dynamics and diversity (detailed in Section 2.5). ● This strategy has its foundations in the Group’s commitment to social and environmental responsibility. After almost 25 years, it reflects the attention paid to developments over time. Did you know? The origin and quality of products are key concerns for consumers. Three major challenges for Carrefour group stakeholders are human rights in the supply chain (see Section 2.4.5), sustainable relationships with suppliers (see Section 2.4.3), and the listing and purchase of products that meet specific social and environmental criteria (see Section 2.3). Defining challenges and the materiality matrix Following on from the initial ISO 26000 diagnostic performed in 2012-2013 that was used to draw up its CSR strategy, Carrefour performed a materiality assessment in 2014 which was updated in 2016 to take regulatory changes into account. The mapping and materiality were assessed by reviewing the documentation available. Similarly, they were assessed by around 30 internal and mainly external expert stakeholders. Challenges were identified and ranked in terms of materiality based on: Their importance for stakeholders; ● Their financial and regulatory impact, their impact on Group ● business and its relationship with investors, customers and employees, and their impact on the Group’s reputation.