Carrefour - 2017 Registration Document

CORPORATE SOCIAL RESPONSIBILITY Combatting waste 2017 REGISTRATION DOCUMENT | CARREFOUR 2. 44 Following a significant reduction in CO 2 emissions achieved in 2016, in particular through efforts made to improve refrigeration units, CO 2 emissions were stable in 2017. This decrease since 2010 is in line with the target of a 40% reduction in emissions by 2025. Total (direct and indirect) greenhouse gas (GHG) emissions amounted to 3.0 million tonnes of CO 2 equivalent (t. CO 2 eq.), up 0.3% on 2016. Carrefour measures GHG emissions from the following sources: Direct sources of GHG emissions (Scope 1) such as gas and fuel ● consumption and use of refrigerants in cooling production plants and air conditioning; Indirect sources of GHG emissions (Scope 2), mainly electricity ● consumption; Indirect external sources of GHG emissions (Scope 3), namely ● downstream goods transport. Most GHG emissions are either Scope 1 (39.2% in 2017) or Scope 2 (49.3% in 2017). Outbound logistics (Scope 3) operations account for 11.5% of emissions measured. Owing to the geographic breakdown of the Carrefour group’s activities, greenhouse gas emissions are concentrated in Europe (including France), which accounts for more than half of total emissions. Emissions are calculated according to the guidelines of the international GHG Protocol, and are then subject to reasonable assurance checks by an independent third party. According to the Organisation Environmental Footprint Sector Rules (OEFSR), the three most significant Scope 3 items for retailers are: Upstream production of products (43%); ● Product usage (43%); ● Logistics (8%). ● Because of the complexity of measuring emissions for the first two items, Carrefour launched a Scope 3 climate action plan with its partners in 2017 (see hereafter). GHG EMISSIONS BY SOURCE (IN THOUSANDS OF T. CO 2 EQ.) Scope 3 (logistics) 348.5 Scope 2 (electricity) 1,494.7 Scope 1 (refrigerants, gas and heating oil) 1,189.9 11.5% 49.3% 39.2% GHG EMISSIONS BY AREA (IN T. CO 2 EQ.) 13.0% 28.4% 22.1% Other Europe countries France Asia Latin America 36.5% Highlights Carrefour put together a structured Scope 3 climate action plan ● in 2017. This plan, which is pending validation under the Science Based Targets initiative, targets a 2°C carbon trajectory for Carrefour’s indirect external emissions, in conjunction with the Group’s partners. Since the first three indirect external emission items account for close to 90% of all Scope 3 emissions, Carrefour’s Scope 3 climate action plan focuses on three priority areas: Downstream goods transport (see Section 2.2.3); ● Goods, particularly products grown or raised (see Section 2.3.1) or manufactured using wood or paper (see Section 2.3.6); Partnerships with suppliers. This point includes, for example, ● an objective on the ten biggest suppliers of Carrefour adopting an approach consistent with the Science Based Targets initiative, and the 30 biggest suppliers taking up a climate commitment by 2025. At the One Planet Summit organised by the French government ● in 2017, Carrefour initiated the Consumer Goods Forum publication “Low carbon solutions for a sustainable consumer goods sector”. (www.theconsumergoodsforum.com/wp-content/uploads/2017/ 12/low-carbon-solutions-sustainable-consumer-goods.pdf). Carrefour restated its support for a major reduction in ● greenhouse gas emissions by signing the French Business Climate Pledge 2017 along with 88 other French companies. To step up the adoption of low-carbon technologies, all the ● leaders of teams involved in drafting investment proposals in each country were trained on factoring in an internal carbon price. Throughout 2017, the greenhouse gas impact was fully taken into account in the investment decision process. Carrefour contributed to promoting the adoption of internal ● carbon prices at Caring for Climate (C4C), the world’s largest coalition of companies committed to combatting climate change. In the “Carbon Pricing Unlocked” guide, Carrefour provided feedback on team engagement, the mechanism of impact on decision-making processes, the calculation methodology and the rollout of internal carbon prices in countries and business lines. This publication, put together by CDP, Ecofys and the Generation Foundation, sets out recommendations and best practices to help companies use the principle of internal carbon pricing. Carrefour continued its involvement in the Assessing Low ● Carbon Transition initiative run by ADEME (French environment and energy management agency) and the CDP. The aim is to set up a standard system of assessment of companies’ performance and put them on a 2°C compatible trajectory in terms of their strategy, business, investments, operations and GHG emissions. In 2017, Carrefour contributed to the ACT report, which sets out the project for evaluating the low-carbon transition, along with the approach and the results to date.