Carrefour - 2017 Registration Document

2 CORPORATE SOCIAL RESPONSIBILITY Combatting waste CARREFOUR | 2017 REGISTRATION DOCUMENT 47 Combatting transport waste Carrefour’s policy To reduce its energy consumption, CO 2 emissions and transport costs, supply chain teams are working with carriers to improve truck loading, optimise travel distances and phase in alternative transport modes. Implementation of this Group policy is adapted to local contexts in each country. In France, it is focused on four areas: clean and quiet shipping: fleet of trucks running on 1. biomethane (for less noise and better health and air quality), and electric vehicles for urban deliveries; shorter travel distances and optimised truck loading: 2. warehouse locations close to stores and optimised delivery rounds; responsible purchasing: founding member of Fret 21 with 3. ADEME, minimum three-year contracts with carriers and driver acknowledgement programmes; partner motivation: creation of Cercle des Transporteurs, an 4. innovative project incubator with 22 carrier members, and founding member of the Club Demeter sustainability innovation network of logistics chain operators. A modern fleet, for clean, quiet transport Carrefour is modernising its fleet. More than 100 trucks are already running on biomethane fuel, emitting less pollution and making less noise. Carrefour is also taking steps to reduce noise pollution related to night deliveries. Towards the end of 2017, some 15 Carrefour France stores in dense urban areas received the Certibruit ® “low-noise deliveries” label. Where the necessary infrastructure is in place, Carrefour continues to prefer waterway, rail or multimodal transport. In France, warehouse delivery – or upstream logistics – involves multi-modal means of transport, which are used for 52% of non-food products: 3,123 containers were shipped by waterway in 2017, ● representing 30% of imported products; 2,338 containers were shipped by rail, corresponding to 22% of ● imported products. Delivery to stores – or downstream logistics – involves a combination of rail and road solutions. With these solutions, close to 2.5 million kilometres of travel were avoided in France in 2017. Optimising logistics and shrinking the carbon footprint Under a logistics optimisation programme begun in 2013, Carrefour France is working to reduce its carbon footprint by optimising delivery rates, increasing the number of packages per truck and having suppliers make direct deliveries to stores when volumes permit. Logistics teams, suppliers and stores work together to streamline deliveries of different orders from different store formats. Vehicles load goods from several suppliers in the same store delivery round, and reload at suppliers located near Carrefour stores on the return trip. The aim is to reduce the environmental impact of transport activities by minimising empty-truck mileage, optimising use of available resources and keeping the number of trucks on the road to a minimum. In France in particular, a logistics transformation programme has reduced mileage by bringing loading and delivery locations closer together and by setting up multi-format, multi-product warehouses. Responsible purchasing and cooperation with shipping partners The Cercle des Transporteurs is an innovative project incubator comprising 22 major Carrefour shipping partners. Since 2011, the Group has discussed and developed new initiatives addressing the medium- and long-term challenges of shipping goods by road: flow optimisation, vehicle and equipment technologies, personnel training, rollout of best practices, sustainability, road safety and IT solutions. In France, Fret 21 is a voluntary initiative on CO 2 commitment by carrier order-givers. Carrefour France was a founding signatory of this initiative in 2015, committing to a 10% reduction in CO 2 emissions in three years, through rollout of biomethane-fuelled vehicles, optimisation of travel distances and fuelling, and cooperation with partners on projects such as the development of virtuous solutions with the Cercle des Transporteurs. Carrefour’s performance Carrefour is committed to a 30% reduction in its transport-related CO 2 emissions by 2025 compared with 2010. The reduction to date stands at 5.3%. % change in transport-related CO 2 emissions compared with 2010* 2017 2016 Change TOTAL (5.3) (7.1) -1.8 points 2010 data restated. * CO 2 emissions per shipping unit represented 6.5 kilogrammes of CO 2 per pallet compared with 6.4 kilogrammes in 2016, a 2.0% increase.