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2013 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT

CHALLENGES

Carrefour has a proactive role

in relation to its suppliers,

providing them with the support

they need to improve their own

social responsibility policies.

Since the

“produits libres”

were

first introduced in 1976,

Carrefour has worked with

many companies and SMEs in

order to provide its customers

with high-quality products

manufactured locally. In order

to identify the impacts that their

activities have and implement

a complete sustainable

development policy, Carrefour

has developed, since 2006,

an online self-diagnostic tool

– created with the help of the

ADEME and the WWF – which it

makes available to its suppliers

of own-brand products.

In 2013, nearly 5,300 suppliers

in 11 countries used this tool,

now aligned with the

requirements of the ISO

26000 standard, to measure

the performance of their

CSR policy against 49 criteria.

Examples of best practice

are thus showcased every year

in France at the Carrefour

sustainable development

awards.

Other initiatives have also

been implemented to guarantee

suppliers’ long-lasting growth.

For example, Carrefour has

entered into multi-year

partnerships for its quality

product lines throughout the

world. And in 2013, it set up a

number of training programmes

in China on food quality and

safety with more than

500 farming cooperatives.

Supporting suppliers

Responsible procurement also

means reducing the impact that

one’s logistics operations have

on the environment. In order to

reduce its carbon footprint from

transporting its merchandise,

Carrefour strives to maximise

its delivery vehicles’ fill rate.

In 2013, these optimisation

drives resulted in French

hypermarkets saving the

equivalent of 10,300 tonnes

of CO

2

by having 25,000 fewer

lorries on the roads. The Group

is also developing alternative

forms of transport (rail, river,

etc.) and innovative new

technologies. These include

gradually increasing its

numbers of hybrid and electric

lorries, and testing, in northern

France, lorries which run on

biomethane, a fuel produced by

the methanisation of biowaste

from 14 hypermarkets.

Optimising logistics

PURCHASING LOCALLY – EVERYONE BENEFITS

Throughout the world, the Group’s stores are

widening their selections of local products

and are sourcing their supplies from farmers,

breeders, SMEs and artisans who are based

near to where the customers live. In France,

each Carrefour hypermarket works with around

100 local producers on average. This direct

supply policy generates benefits at all levels.

It provides customers with a wider choice,

as well as better-tasting regional products;

it guarantees product freshness and quality

since there is a direct relationship between

producers and stores. Only a very short time

is spent getting the products from the farm or

factory to the store shelves; low logistics costs

mean lower prices for customers, and local

producers have an outlet for their products,

stimulating the local economy.

Customers are encouraged to purchase locally

especially through the development of regional

brands such as

Reflets de France

and

Terre

d’Italia,

quality product lines which shorten

supply channels. In China, within the framework

of a nationwide programme, Carrefour has

been sourcing products directly from farming

cooperatives, representing more than

1.2 million Chinese farmers, since 2007.

At Group level, nearly 75% of all Carrefour

food products come from national suppliers.

Carrefour employees do not simply buy from

local producers. They help them, providing

themwith the support and training they need.

In Spain, for example, several thousand

products were showcased in 2013 as part of

in-store campaigns, major agricultural shows,

Carrefour award events for innovative SMEs,

and along the route of

La Vuelta

(Tour of Spain

cycling race).

“In the Hainaut region, our stores have entered into partnerships with local artisans

and producers located within around 40 km. Their products are sold in a special dedicated

area. Our customers are delighted to find products from where they live available on the shelves.

And that way, we are boosting the local economy.”

Nathalie Cornard,

in charge of local supplier partnerships for the Hainaut region (Belgium)