Carrefour - 2017 Registration Document

CORPORATE SOCIAL RESPONSIBILITY Carrefour’s duty of care plan 2017 REGISTRATION DOCUMENT | CARREFOUR 2. 88 Carrefour’s duty of care plan 2.6 As a leading food retailer and a key player in the global economy, Carrefour is well aware of its social responsibilities. Carrefour’s retail approach and business model are closely linked to the renewability of natural resources, the quality and quantity of agricultural production, the engagement of its employees and the confidence of consumers and all its stakeholders. For the past 20 years, Carrefour has demonstrated its commitment to the protection of human rights and the environment through partnerships with major NGOs working in these areas, including the WWF ® for environmental protection (1998), UNI Global Union for working conditions and fundamental freedoms (2001), and the FIDH for human rights (2000). Carrefour has been a party to the United Nations Global Compact since 2001. It is also one of the pioneers in implementing practical initiatives to improve environmental and social practices in global supply chains. Such initiatives include its membership to the Initiative Clause Sociale, which promotes the social responsibility of suppliers to the retail trade, and the sustainability self-assessment tool for suppliers. All of these commitments – which are embodied in formal pledges to external stakeholders – are relayed internally in Carrefour’s own business operations and among its employees through the Corporate Social Responsibility strategy. Carrefour has thus long fostered a risk-aware culture embracing the issues of human rights and fundamental freedoms, health and safety, and the environment – the areas addressed by France’s duty of care law passed on March 27, 2017. This document constitutes the duty of care plan required by the new law. It describes the formal processes and methods embedded in Carrefour’s social responsibility approach and the additional measures taken under the duty of care plan. This approach is based on Carrefour’s Ethics Principles, a Code of Conduct setting the framework for the day-to-day behaviour and actions of its employees. The aim is to instil these same principles throughout the global value chain through the Supplier Charter and Ethical Standards Charter, which are an integral part of all purchase contracts for goods and services in all Carrefour’s countries of operation. This commitment is present throughout the Group’s various business activities through many other initiatives, including partnerships, dialogue with stakeholders, CSR strategy, and social dialogue. It takes shape through the engagement of the women and men who work for the Carrefour group. Risk mapping 2.6.1 Risk mapping approach The risk mapping approach is defined and managed by the Group Risk and Compliance department. The aim is to give management and staff in the Group’s countries of operation a holistic view of the issues and risks that is as effective, objective and comprehensive as possible. It addresses risks related to Carrefour’s business operations and activities in all countries where it operates or sources products. It involves internal and external stakeholders in the process of identifying and reviewing the key risks according to their areas of expertise. The first step in the risk mapping process described below therefore involves consulting with the relevant operational staff and partner NGOs and trade unions. Lastly, it enables the countries and the relevant internal functions to share a structured process and an ordered view of the risks, and to take a harmonised approach in response to the current regulatory requirements. Risk mapping process The compliance risk mapping process comprises three steps: identifying as comprehensively as possible all the risks to which ● Carrefour exposes the environment and its stakeholders; assessing those risks with regard to the probability of occurrence ● and the severity of potential impacts. The risk is then rated based on a combination of its importance (Carrefour Group footprint) and its frequency (recurrence of risk situations); the next step is to prevent identified risks. ● Carrefour has identified three types of risk: risks related to its various business activities; ● risks related to business sectors with which Carrefour interacts ● on a day-to-day basis, particularly as part of supplier and service provider relationships; risks related to countries in which Carrefour operates or sources ● certain products. Carrefour uses the following proprietary and shared databases, which are updated regularly, to draw up a comprehensive risk map: compliance risk database: the various compliance issues are ● classified into generic risks, based mainly on the ILO’s fundamental conventions for the protection of human rights. For environmental protection, the identified risks include contribution to global warming, water pollution and uncontrolled waste management; third-party database: identifies and classifies stakeholders into ● 14 categories, such as public agents, intermediaries, shareholders, employees, media, etc.