Carrefour - 2017 Registration Document

CORPORATE SOCIAL RESPONSIBILITY Carrefour’s duty of care plan 2017 REGISTRATION DOCUMENT | CARREFOUR 2. 92 Preventive action at suppliers Carrefour takes a holistic approach to prevention (training, support and self-assessment) and control over its suppliers (internal and external audits, monitoring action plans) and its partners in order to prevent serious violations. This approach is based on and will evolve in line with the types of risk identified for each country. Risk prevention: support and self-assessment for suppliers All contracts include the Supplier Charter, which presents an opportunity to remind suppliers and service providers of Carrefour’s commitments. Carrefour develops training and awareness tools for its suppliers in partnership with consultants or local NGOs. For example, the “Good Factory Standard” is a practical training manual which is broken down by sector and/or product type (household goods, textiles, wood, leather, etc.) and contains photographs to ensure that all factory workers can understand it, regardless of their geographical location or level of education. Training courses are also given in specific subjects based on the potential risks identified in a country, area or activity. The self-assessment tool for suppliers (Valorise), which is available online and has been shared with other retail brands since 2017, also helps suppliers to embark on a CSR approach. (For further details, please see Section 2.4.4 “Promoting CSR in the supply chain” of the 2017 Registration Document). Supplier social compliance audits In countries where a geographical risk has been identified, Carrefour’s ultimate aim is to perform social audits on all production facilities that manufacture Carrefour-brand products. The process comprises several steps: a preliminary review by Carrefour of the facility’s compliance ● with social, environmental and basic quality requirements; an initial audit, preferably unannounced, performed by an ● independent firm selected by Carrefour, based on a standard shared with other brands, to determine whether the facility can be listed; unannounced follow-up audits performed periodically by an ● independent firm to validate actions taken; specific audits may be performed by an external company or by ● partners to review specific or one-off incidents involving the facility or the audit firms’ practices and procedures. For suppliers not based in countries identified as at-risk, the audit system is adapted to take account of the risks related to the supplier’s business, local problems and practices. Going even further, Carrefour conducts an in-depth analysis in certain countries to identify and take into account specific risks related to agricultural practices. (For further details, please see Section 2.4.5 “Ensure that Carrefour suppliers respect human rights” of the 2017 Registration Document). Supplier environmental compliance audits Environmental audits are performed at the premises of suppliers that manufacture labelled or certified Carrefour-brand products, and where production facilities or processes may present a risk for the environment. Carrefour implements specific programmes for major identified risks, such as the Clean Water Project in Asia, in order to prevent or remedy industrial pollution risks. Health and safety issues and water treatment are currently covered by Carrefour’s social compliance audit process. Carrefour’s teams are in the process of determining their suppliers’ vigilance level and methods in terms of overall environmental compliance, based on action already taken. (For further details, please see Section 2.2.5 of the 2017 Registration Document). Carrefour Foundation actions to protect fundamental freedoms Created in 2000, the Carrefour Foundation runs outreach programmes in countries where the Group operates. As a retailer, Carrefour’s efforts are focused on two major areas: food solidarity and emergency humanitarian aid. In 2016 and 2017, the Foundation expanded its action to encompass two new areas of expertise, with two new funds: one dedicated to humanitarian aid and improving the living ● conditions of the families of workers in countries where Carrefour sources its products; one dedicated to preserving biodiversity. ● Ethics alert system and procedure Carrefour’s partners and employees are all permanent conduits for raising the alert when necessary. A dispute management procedure is incorporated in the UNI Global Union agreement, enabling complaints made by a trade union representative or Carrefour employee to be reported to the UNI and Carrefour’s management, with assurance that the matter will be dealt with. Carrefour has also set up its own ethics alert system that can be used by Group employees or stakeholders to report any situations or behaviour that do not comply with the Group’s Ethics Principles. The system covers all the subject matter addressed in the Ethics Principles, in particular human rights and the environment.