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Corporate governance
Risk management
Corporate responsibility
Operations
3.5.1.3
Looking beyond regulatory compliance, given consumers’ growing
Relevance and performance of economic
concerns about responsible and sustainable trade and the nature and
reality of commitments, CSR policies and actions may impact the
and business models
Group’s reputation and its financial performance.
In a highly competitive environment with very unstable markets, the
For a number of years, the Group has maintained a proactive and relevance of economic and business models and their rapid
committed CSR policy, described in detail in the chapter
2 of the adjustment to changing consumption habits and patterns, as well as
Registration Document on Corporate Responsibility, with a wide range efficient and effective purchasing, can have a significant impact on the
of concrete actions, and the involvement in a decentralised Group’s operational and financial performance, in its organisation and
organisation based on the principle of subsidiarity of each country in design as well as in the ability to deploy in stores.
which the Group operates. Assessment of environmental, labour and
Adapting business models to customer expectations is a major
societal risk provides essential input when developing and updating
challenge for the teams in charge of development and concepts, using
the Group’s CSR approach.
a forward-looking approach and constant oversight. Careful oversight
Environment
and numerous pre-deployment studies are also used to fully account
for all factors and effects involved in establishing the economic
In the scope of its activities, the Group may be exposed to a wide range models.
of environmental risks (water, air and ground pollution, noise pollution
On January
4, 2016, the Group announced the finalisation of its
or visual pollution) mainly with respect to its large number of operated
acquisition of 100% of the share capital of Rue du Commerce from
sites.
Altarea Cogedim. This acquisition is a further step in Carrefour’s
While environmental regulations have been developing in many
roll-out of its omni-channel approach in France, to better serve its
countries, along with increased consumer awareness of the stakes,
customers in stores and on-line.
certain activities and processes are especially sensitive (waste
Operational and financial control of growth
treatment, recycling of own-brand product packaging, consumption of
refrigerants and energy, explosive atmospheres, service stations,
and expansion
alternative transport, etc.) with particular attention paid to natural
In a significant competitive environment with cost pressure and
resource management (water, fish stocks, wood, etc.).
increasingly scarce high-quality locations in certain countries, the
Environmental protection and preservation is naturally considered by
Group faces the inability or difficulties in identifying, obtaining or
the Group along with industrial risks, with a focus on prevention
developing the best sites, in a constant search for higher profitability
through study and analysis, but also through the operational
based on valid and reliable assumptions while taking into account all
implementation of prevention or treatment systems, such as for risks
risk factors. This may impact its financial performance and fulfilment
related to service stations. All actions intended to reduce the
of its objectives, along with inadequate identification, assessment and
environmental footprint of our business activities are presented in the
integration of new assets or companies.
chapter 2 of the Registration Document on Corporate Responsibility.
All of these elements are considered in the dossiers analysed by the
Assessment of environmental risk aims to improve our knowledge and
country-level Financial departments, in connection with the
understanding of the challenges, to better address risks in order to
Development department and, where applicable, with the Carrefour
protect the Group’s business and employees.
Property teams. The most significant dossiers are reviewed and
Disputes/Litigation
approved by the Group Investment Committee (CIG).
Partnerships and franchising
In the scope of its normal activities, the Group is involved in various
legal and administrative proceedings and is subject to administrative
Since most of the Group’s stores under banner are operated as
audits, whose outcomes are uncertain with potentially significant
franchises and the Group’s growth relies on partnerships in several
impacts on our financial position or reputation. The Group’s potential
countries, the evaluation, selection, support and oversight of these
exposure to any significant litigation is described in Note
9 of the
various franchisees and partners may have an impact on financial and
annex to the Consolidated Financial Statements.
operational performance, and on its reputation in the event the
The Legal department manages and oversees disputes at the country
partners’ practices do not comply with regulations or with the Group’s
level and at Group level. Provisions are also set up in the accounts for
standards and values.
disputes and litigation when an obligation toward a third party exists at
As part of the implementation and execution of franchise and
period-end.
partnership agreements, support documentation necessary to
To the Group’s knowledge, other than those described in Note
9 of the business operations is provided to franchisees and partners. This
annex to the Consolidated Financial Statements, there are no other
documentation covers the Group’s business and financial methods, its
ongoing governmental, judicial or arbitration proceedings to which the quality, health and safety standards and the graphic charter. The
Group would be a party that are likely to have, or have had during the documents are periodically updated, and franchise advisers offer
last 12 months, a material impact on the Group’s financial position.
support for their implementation through regular visits to partners and
franchisees.
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