2019 DECLARATION OF EXTRA-FINANCIAL PERFORMANCE - VITALITY RESPONSIBILITY GENEROSITY AUTHENTICITY

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2019 DECLARATION OF EXTRA-FINANCIAL PERFORMANCE - VITALITY RESPONSIBILITY GENEROSITY AUTHENTICITY
DECLARATION
OF EXTRA-FINANCIAL
PERFORMANCE
2019

                  VITALITY
            RESPONSIBILITY
               GENEROSITY
             AUTHENTICITY
2019 DECLARATION OF EXTRA-FINANCIAL PERFORMANCE - VITALITY RESPONSIBILITY GENEROSITY AUTHENTICITY
SUMMARY
    __                   CHALLENGES                            PEOPLE AND                          PRODUCTS
                         AND STRATEGIES                        MANAGEMENT                          AND SERVICES
    DECLARATION          ___                                   ___                                 ___

    OF EXTRA-FINANCIAL   5 E DITORIAL                         27 P
                                                                   UTTING PEOPLE AT               51 I NTEGRATING INNOVATION

    PERFORMANCE          6 D ECATHLON IN FIGURES                 THE HEART OF OUR GROWTH              AT EVERY LEVEL
                                                               32 M
                                                                   AKING RESPONSIBILITY           55 G ENERALISING THE ECO-DESIGN

    2019
                         8 2 019 HIGHLIGHTS
                                                                  AND FREEDOM A PRIORITY               OF OUR PRODUCTS
                         10 O UR BUSINESS MODEL
                                                               37 D
                                                                   EVELOPING SKILLS               60 P
                                                                                                       ROVIDING USEFUL
                         14 O UR MAIN EXTRA-FINANCIAL RISKS      AND REVEALING TALENT                ECO-FRIENDLY OFFERS
                         16 O UR 2015-2019 SD AMBITIONS       41 D ELIVERING HEALTH AND SAFETY   65 C
                                                                                                       REATING SAFE
                         18 O UR STAKEHOLDERS                 44 A
                                                                   TTRACTING, PAYING                 HIGH-QUALITY PRODUCTS
                         20 O UR 2019 ORGANISATION               AND MOTIVATING TEAMMATES
                         22 O
                             UR COMMITMENT TO RESPOND         47 T HE DECATHLON FOUNDATION
                            TO THE CLIMATE CHALLENGE

                         RESPONSIBILITY                        STORES                              INDICATORS
                         IN PRODUCTION                         AND TRANSPORT                       AND METHODOLOGY
                         ___                                   ___                                 ___

                         71 M
                             AINTAINING LONG-TERM             85 E CO-DEVELOPING                 103 O UR PERFORMANCE INDICATORS
                            RELATIONSHIPS                          OUR GLOBAL NETWORK              124 C
                                                                                                        ORRELATION OF SUSTAINABLE
                         76 A
                             CTIONS TO PROMOTE                90 G
                                                                   ETTING INVOLVED IN                 DEVELOPMENT OBJECTIVES
                            HUMAN PROGRESS                        TERRITORIAL DYNAMICS             126 M
                                                                                                        ETHODOLOGICAL NOTE

                                                                                                                                         DECLARATION OF EXTRA-FINANCIAL PERFORMANCE 2019
                         81 D
                             EPLOYING ENVIRONMENTAL           95 O
                                                                   PTIMISING OUR WASTE                GENERAL ORGANISATION OF REPORTS
                            MANAGEMENT                            AND ENERGY MANAGEMENT            132 O UR MAIN
                                                               99 T
                                                                   RANSPORTING OUR PRODUCTS,           EXTRA-FINANCIAL RISKS
                                                                  PROMOTING ECO-MOBILITY           134 L IST OF 2019 STAKEHOLDERS
                                                                                                   136 C
                                                                                                        ONFIRMATION OF PARTICIPATION
                                                                                                       AND REPORT ON THE FAIRNESS
                                                                                                       OF THE INFORMATION

2                                                                                                                                                3
2019 DECLARATION OF EXTRA-FINANCIAL PERFORMANCE - VITALITY RESPONSIBILITY GENEROSITY AUTHENTICITY
CHALLENGES AND STRATEGIES       PEOPLE AND MANAGEMENT   PRODUCTS AND SERVICES         RESPONSIBILITY IN PRODUCTION                                            STORES AND TRANSPORT                        INDICATORS AND METHODOLOGY

                                                                                                    2019 was marked by the increasingly vocal

    CHALLENGES
                                                                                                    concern of all our stakeholders regarding the
                                                                                                    environmental crisis and climate change in
                                                                                      particular. Our generation is facing unprecedented challenges
                                                                                      and must find the right solutions to the unequivocal                                            These conditions have been supplemented with various
                                                                                      conclusions coming from the scientific community. We                                            initiatives that include support with environmental challenges.

    AND STRATEGIES
                                                                                      have now arrived at a tipping point: the next 10 years will be                                  What’s more, we are also mobilising these production units with
                                                                                      decisive ones.                                                                                  a view to reducing their carbon footprint. This year, we have
                                                                                                                                                                                      demonstrated our strong commitment to act by signing the UN
                                                                                      For several years now, the Decathlon teams have been tackling                                   Fashion Industry Charter for Climate Action4, which brings
                                                                                      the issues of sustainable development. This year, the company                                   together various players of the clothing and fashion sectors
                                                                                      began to implement some real changes in line with the                                           behind an objective to reduce their CO2 emissions in order to
                                                                                      recommendations of scientific experts, using the Science                                        meet the target levels set by the Paris Agreements
                                                                                      Based Target initiative to validate new commitments in the fight
                                                                                      against global warming.                                                                         In a world in which the ability to adapt is essential, the way we

    68%
                                                                                                                                                                                      operate as an international network and the restatement of the
                                                                                      Among the measures taken to comply with these                                                   fundamentals of our human policy will be major assets. That’s
                                                                                      commitments, we are continuing to ramp up the consumption                                       why we believe more than ever in everyone’s Responsibility
                                                                                      of electricity from renewable sources and we are committed                                      and in the principle of subsidiarity, which means that decisions
                                                                                      to ensuring that 100% of our products are eco-designed by                                       are taken where they can make the most impact.
    OF SPORTS USERS                                                                   2026.                                                                                           By reworking our unique Decathlon Academy training platform,
                                                                                                                                                                                      each team member can assess their skills and attitudes,
    DELIGHTED                                                                         Every day, these sports products are manufactured within the                                    develop skills where and when they need to in keeping with the
                                                                                      context of a relationship based on mutual trust, established over                               purpose of their duties, and define the way forward in order to
     IN 2019                                                                          the years working with our industrial partners. Thanks to this                                  fulfil all their ambitions.
                                                                                      collaboration, we include them in our action plans addressing
                                                                                      human and environmental issues. Having always been                                              Finally, because these concerns are shared by our customers,
                                                                                      particularly concerned with regard to Human Rights, we have                                     our users and our team members working in the stores,
                                                                                      shown how prepared we are in this area this year by drawing                                     we promote more responsible consumption by providing
    LOCATIONS IN                                                                      up our Modern Slavery Statement, which lays out the actions

    57countries
                                                                                                                                                                                      second-life products, repair services in our workshops and an
                                                                                      we have taken in the fight against modern slavery, and our 2nd                                  ever growing range of eco-designed products. In France, the
                                                                                      Vigilance Plan2. At the same time, in 2019, in accordance with                                  sum total of these products and services is being translated
                                  1                                                   the principle of subsidiarity, each area manager3 reaffirmed
                                                                                      their commitment to comply with Decathlon’s requirements in
                                                                                                                                                                                      into long-term sales in our stores and we are monitoring its
                                                                                                                                                                                      progress.
                                                                                      terms of production conditions.
                                                                                                                                                                                      The entrepreneurial adventure of Decathlon is marked
                                                                                                                                                                                      by a very strong commitment: we now believe that this
                                                                                                                                                                                      determination must be experienced collectively, through

    8.7kg
                                                                                                                                                                                      dialogue. Working alone, we will not be able to provide the
                                                                                                                                                                                      solution to emerging issues, particularly when it comes to the
                                                                                                                                                                                      question of the unique consumption of our products and the
                                                                                                                                                                                      creation of a circular economy. In order to rethink the dream
                                                                                                                                                                                      of a new and sustainable world while continuing to serve our
                                                                                                                                                                                      ambition, which is “to make the benefits of sport and sporting
    CO2 EQ. PER
                                                                                      EDITORIAL
                                                                                                                                                                                      disciplines accessible to as many people as possible over the
                                                                                                                                                                                      long term”, we must develop co-creation with our customers
    PRODUCT SOLD

                                                                                                                                                                                                                                                          DPEF2019 CHALLENGES AND STR ATEGIES
                                                                                                                                                                                      and our users, strengthen our partnerships, build stronger ties
                                                                                                                                                                                      with local players, form new alliances and bring to
     +1.2% SINCE 2016                                                                                                                                                                 life our common commitments.

                                                                                                                                                                                                ANNE DÉSORMAIS
                                                                                                                                                                                                SD REPORT - MANAGING EDITOR
                                                                                                                                                                                                Swimming enthusiast

                                                                                      ___
                                                                                      1. Countries in which Decathlon is present commercially, excluding production and franchises.
4                                                                                     2. http://developpement-durable.decathlon.com/documents-et-rapports/documents/                                                                                            5
                                                                                      3. Decathlon area: country or City.
                                                                                      4. http://unfccc.int/
2019 DECLARATION OF EXTRA-FINANCIAL PERFORMANCE - VITALITY RESPONSIBILITY GENEROSITY AUTHENTICITY
CHALLENGES AND STRATEGIES                       PEOPLE AND MANAGEMENT                                                 PRODUCTS AND SERVICES                                        RESPONSIBILITY IN PRODUCTION                  STORES AND TRANSPORT                INDICATORS AND METHODOLOGY

                                                                                                                                                                                       BREAKDOWN OF TEAMMATES BY GEOGRAPHIC AREA

            DECATHLON
                                                                                                                                                                                       AS OF 31/12/2019

                                                                                                                                    165
                                                                                                                                                                                       ___
                                                                                                                                                                                                                                                    EUROPE
                                                                                                                                                                                                                                                    AND RUSSIA:

            IN FIGURES
            AS OF 31/12/2019
                                                                                                                               STORE OPENINGS
                                                                                                                                              IN 2019
                                                                                                                                                                                                                                                    67%

                                                                                                                                                                                                                                        KIEV
                                                                                                                                                                                                                                      UKRAINE

                                                                                                                                                                                                                                       BELGRADE

                                                                                                           1,647
                                                                                                                                                                                                                                                                                                        NISHINOMIYA

                             73
                                                                                                                                                                                                                                           SERBIA
                                                                                                                                                                                                                                                                                                        JAPAN
                                                                                                                                                                                                                             ALGER
                                                                                                                                                                                                                            ALGERIA
                                                                                                                                                                                                                                      SLIEMA
                                                                                                                                                                                                                                      MALTA                                                     HANOI
                                                                                                                                                                                                                                                                                                VIETNAM

                    WAREHOUSES AND                                                                     STORES WORLDWIDE,                                                                       AMERICAS:
                                                                                                     IN 938 URBAN CLUSTERS
                  LOGISTICS PLATFORMS
                                                                                                                                                                                               4.1%                                                                    ASIA:
                                                                                                              165 MORE THAN IN 2018
                                                                                                                                                                                                                                 AFRICA AND
                                                                                                                                                                                                                                 MIDDLE EAST:
                                                                                                                                                                                                                                                                       24.4%
                                                                                                                                                                                                                                 4.2%                                    OCEANIA:

           €12.4
          BILLION IN TURNOVER
                                                                     400
                                                   MILLION SPORTS USERS   OF SPORTS USERS
                                                                                                                                  68%                                                    DECATHLON
                                                                                                                                                                                         LOCATIONS IN
                                                                                                                                                                                                                                                                         0.3%

                                                                                                                                                                                         57 countries                                                                  6
               (EXCL. VAT)1                      IMPACTED BY OUR PRODUCTS    DELIGHTED
                                                            IN STORES AND ON INTERNET                                                  RATE: 4.48/5
                                                                                                                                                                                                                                                     NEW DECATHLON               NEW
          +9.1% COMPARED WITH 2018
                                                                                                                                                                                                                                                           CITIES IN             COUNTRIES

              102,307       TEAMMATES
                                                                                                                 54%
                                                                                                      OF OUR TEAMMATES
                                                                                                                                                                                                 85                                      61.1%
                                                                                                                                                                                                                            ENVIRONNEMENTAL LABELLING
                                                                                                                                                                                                                                                                                    8.7 kg
                                                                                                                                                                                               DECATHLON                                                                               CO 2 EQ./
                     46% WOMEN AND 54% MEN                                                          ENJOY COMING TO WORK 2                                                                                                    OF DECATHLON PRODUCTS
                                                                                                                                                                                                BRANDS                                                                              PRODUCT SOLD
                     +6.6% MORE THAN IN 2018                                                                             50% IN 2018                                                                                                                30.1% IN 2018
                                                                                                                                                                                                                                                                                      +1.2% SINCE 2016

    BREAKDOWN OF TEAMMATES                                                        BREAKDOWN OF TEAMMATES

                                                                                                                                                                                                                                                                                                                      DPEF2019 CHALLENGES AND STR ATEGIES
    BY AGE - AS OF 31/12/2019                                                     BY ACTIVITY - AS OF 31/12/2019

                                                                                                                                                                                                   86%                                              80%
    ___                                                                           ___
                                                  20-29 YEARS
                                                  60.3%

                                                                                                                                                                                                                                                                                        43
                                                                                                                                               SUPPORT SERVICES
          UNDER 20 YEARS                                                                    RETAIL AND
                                                                                                                                               5.1%
               5.2%                                                                           SERVICES
                                                                                           78.2%                                                     DESIGN/
                                                                                                                                                                                                  OF RANK 1                              OF RANK 1 AND RANK 2
    50 YEARS AND OLDER                                                                                                                               PRODUCTION                                PRODUCTION SITES                           PRODUCTION SITES
                2.4%                                                                                                                                 5%                                   WERE GIVEN A, B OR C RATINGS                  WERE GIVEN A, B OR C RATINGS
                                                                                                                                                                                                                                                                                       PARTNERS
                                                                                                                                                                                             FOR THEIR HUMAN                          FOR THEIR ENVIRONNEMENTAL
              40-49 YEARS                                                                                                                         LOGISTICS
                                                                                                                                                                                       RESPONSABILITY IN PRODUCTION                           MANAGEMENT                               SUPPLIERS
                7.4%                              30-39 YEARS                                                                                     11.7%                                      STABLE COMPARED TO 2018                       +15.9% COMPARED TO 2018
                                                  24.8%
                                                                                                                                                                                ___
                                                                                                                                                     1. At constant exchange rates.
6                                     2. Percentage of people who answered «yes, absolutely» to the questions relative to hapiness at work, given by the annual and internal survey.                                                                                                                                        7
2019 DECLARATION OF EXTRA-FINANCIAL PERFORMANCE - VITALITY RESPONSIBILITY GENEROSITY AUTHENTICITY
CHALLENGES AND STRATEGIES   PEOPLE AND MANAGEMENT         PRODUCTS AND SERVICES       RESPONSIBILITY IN PRODUCTION      STORES AND TRANSPORT     INDICATORS AND METHODOLOGY

                                                                           +6                                                 58.9%                     3.2%
                     2019                                              NEW CITIES
                                                                            OPENED                             OF DECATHLON’S OVERALL                    OF AIR

              HIGHLIGHTS                                          ACROSS THE WORLD:                          ELECTRICITY CONSUMPTION                   TRANSPORT
                                                                                                                                                         TO SHIP OUR
                                                                    ALGER, BELGRADE,                       WAS FROM RENEWABLE ENERGY
                                                                                                                                                       PRODUCTS IN 2019
                                                                  KIEV, MALTA, HANOI,
                                                                         NISHINOMIYA
                                                                                               IN ORDER TO REACH OF               COMMITMENT         STABLE COMPARED TO 2018

                                    18                           1 UNIQUE
                                                             DIGITAL TRAINING
                                                                                        COTTON

                                                                                        95%
                                 INNOVATIVE
                                  PRODUCTS                      PLATFORM
                                                                     IN THE WORLD
                                 PROMOTED AT THE                                        SUSTAINABLY-SOURCED
                                 INNOVATION                                             +25% COMPARED TO 2018

                                   AWARDS
                                       IN 2019
                                                                                        MATERIALS
                                                                                        SELECTION

        +1.2%
                                    REPORTING OF SUSTAINABLE
                                    TURNOVER HAS BEEN PUTTED                            POLYESTER
                                                                                                                               503                  START OF
                                                                                                                                                    WORK ON
                                                                                                                         World CleanUp Day

                                                                                        16.3%
          INTENSITY OF                 IN DECATHLON STORES                                                                                          THE 2109-2022
           CO2 EMITTED                                                                                                       EVENTS
         BY QUANTITY OF
                                IT MESURES ECONOMICAL RESULTS LINKED TO SECOND
                                  LIFE OF PRODUCTS, ECO-DESIGNED PRODUCTS SOLD                                            HELD IN 42 COUNTRIES,     NEW HUMAN
    PRODUCT SOLD IN 2019,                    AND WORKSHOPS ACTIVITY.                    SUSTAINABLY-SOURCED                 24,500 PERSONS,         CHALLENGES
                                                                                         -5.9% COMPARED TO 2018            124 TONS OF WASTE
         COMPARED TO 2016       4.1% OF SUSTAINABLE TURNOVER IN 2019 IN FRANCE                                                 COLLECTED
                                                                                                                                                     IN FRANCE

                                                                                                                                                                                  DPEF2019 CHALLENGES AND STR ATEGIES
                                          VALIDATION OF OUR OBJECTIVE
                                                                                                                          ALLIANCES WITH
                                           TO REDUCE OUR IMPACT                                                           NEW STAKEHOLDERS
                                         USING THE SBT INITIATIVE                                                         INCLUDED UNFCCC AND FASHION PACT
                                                        ON OUR SCOPES 1 AND 2

8                                                                                                                                                                                       9
2019 DECLARATION OF EXTRA-FINANCIAL PERFORMANCE - VITALITY RESPONSIBILITY GENEROSITY AUTHENTICITY
CHALLENGES AND STRATEGIES                    PEOPLE AND MANAGEMENT                        PRODUCTS AND SERVICES                            RESPONSIBILITY IN PRODUCTION                           STORES AND TRANSPORT                     INDICATORS AND METHODOLOGY

      OUR BUSINESS MODEL                                                                                                                                                                                        KEY FIGURES AS OF 31/12/2019

      OUR RESOURCES                                                                                                                                                                                            CREATING VALUE
     OUR TEAMMATES                                                                                                                                                                                             OUR TEAMMATES
     102,307 TEAMMATES                                                                                                                                                                                         54% OF OUR TEAMMATES ENJOY COMING TO WORK EVERY DAY
     46% WOMEN / 54% MEN                                                                                                                                                                                       48.6% OF OUR TEAMMATES ARE SHAREHOLDERS
     BREAKDOWN BY SECTOR:                                                                                                                       PRODUCT DESIGN                                                 SUPPORT FOR PERSONAL DEVELOPMENT
     78.2% RETAIL AND WEB SERVICES, 5% DESIGN/PRODUCTION,                                                                                       SPORTS INNOVATIONS,                                            AND SKILL-BUILDING
     5.1% SUPPORT SERVICES, 11.7% LOGISTICS                                                                                                    TECHNICAL, EXCLUSIVES,                                          19.1% PAYROLL/TURNOVER
                                                                                                                                              RECOGNIZED, ECO-DESIGNED,
     DECATHLON ACADEMY TRAINING DIGITAL PLATFORM                                                                                                                                                               48 NEW PROJECTS HELPING 28,895 NEW BENEFICIAIRIES
                                                                                                                                                 AT THE FAIREST PRICE
     AND 10 DECATHLON EXCHANGE TRAINING CENTRES
                                                                                                  OUR
                                                                                               TEAMMATES
     PRODUCT DESIGN                                                                       SPORTS PEOPLE, PASSIONATE,                                                                                           PRODUCT DESIGN
     85 DECATHLON BRANDS                                                                         RESPONSIBLE                                                                                                   65 PATENTS HAVE BEEN FILED AND EXTENDED AROUND THE WORLD
     TO MEET USER NEEDS                                                                                                                                                                                        IN-HOUSE NET PROMOTER SCORE OF 35,
     IN-HOUSE LABORATORIES/PROTOTYPING WORKSHOPS
                                                                                                                            OUR PURPOSE :                                                                      INFLUENCE COEFFICIENT: 3.3
     3,000 PROTOTYPES                                                                                            WE MAKE THE BENEFITS OF SPORT AND                                                             95% OF OUR COTTON AND 16.3% OF OUR POLYESTER
     ON-SITE TESTING                                                                                         SPORTING DISCIPLINES ACCESSIBLE TO AS MANY                                                        COME FROM MORE SUSTAINABLE SOURCES
     AND CO-DESIGNING WITH USERS                                                                                                                                                                               61.1% OF PRODUCTS HAVE AN ENVIRONMENTAL LABEL
                                                                                                               PEOPLE AS POSSIBLE OVER THE LONG TERM
     SUPPLY CHAIN                                                                                                                                                                                              SUPPLY CHAIN
     47 PRODUCTION COUNTRIES                                                                                                                                                                                   29% OF OUR PRODUCTS ARE SOURCED FROM OUR INDUSTRIAL PARTNERS
     AND 42 PRODUCTION OFFICES                                                                                                                                                                                 86% OF OUR RANK 1 SUPPLIERS WERE GIVEN ABC HUMAN RESPONSIBILITY
     1,353 SUPPLIERS (RANK 1 AND RANK 2)                                                                                                                                                                       IN PRODUCTION (HRP) SCORES (93% FOR OUR PARTNERS),
     INCLUDING 43 PARTNERS                                                                                                                                                                                     80% OF OUR RANK 1 AND RANK 2 SUPPLIERS WERE GIVEN ABC SCORES
     16 INDUSTRIAL PRODUCTION PROCESSES                                                                                                                                                                        FOR LOCAL ENVIRONMENTAL RESPONSIBILITY
                                                                                                                                                                                  SUPPLY CHAIN                 (100% FOR OUR PARTNERS)
     1,025 HUMAN RESPONSIBILITY IN PRODUCTION AUDITS                                                                                                                          COMMON VALUES SHARED
     AND 110 ENVIRONMENTAL AUDITS                                                                                                                                              WITH OUR INDUSTRIAL             10.3 YEARS OF AVERAGE LENGTH OF SERVICE
                                                                                                                                                                             PARTNERS, ENVIRONMENTAL           FOR THE 100 FIRST SUPPLIERS IN TERMS OF TURNOVER
                                                                                                                                                                             AND HUMAN ASSESSMENTS

     TRANSPORT AND LOGISTICS                                                                                                                                                                                   TRANSPORT AND LOGISTICS
     73 WAREHOUSES AROUND THE WORLD                                                  OMNICOMMERCE                                                                                                              1,333 ITEMS SHIPPED/M2
     5,710 MILLION TONNE-KILOMETRES TRANSPORTED                                   RETAIL, ON-LINE, MARKET                                                                                                      53.1 m3 AVERAGE PER LORRY LOAD RATE
                                                                                PLACE, SERVICES PLATFORMS,
     PRODUCT TRANSPORT:                                                             DECATHLON BRANDS,                                                                                                          ENVIRONMENTAL IMPACT OF PRODUCTS SHIPMENT IN EUROPE:
     3.2% AIR TRANSPORT, 82.2% MARITIME TRANSPORT,                                    TRADEMARKETS                                                                                                             +3.5% OF CO2 EMISSIONS IN 2019 COMPARED TO 2018
     4% RAIL TRANSPORT AND 10.6% ROAD TRANSPORT                                        SIGNED SPORTS                                                                                                           INVOLVMENT IN SOFT MOBILITY GROWTH

     OMNICOMMERCE                                                                                                                                                                                              OMNICOMMERCE
     1,647 STORES AND DIGITAL PLATFORMS LOCATED                                                                                                                                                                400 MILLION: NUMBER OF CUSTOMERS/SPORTS USERS
     IN 57 COUNTRIES AND 938 CITIES AND TOWNS                                                                                                                                                                  68% OF SPORTS USERS DELIGHTED
                                                                                                                                    TRANSPORT
     ENSURING OUR PRODUCTS ARE ACCESSIBLE                                                                                                                                                                      €12.4 BILLION IN TURNOVER (EXCL. VAT), THAT COMES FROM
                                                                                                                                   AND LOGISTICS
     THROUGH ALL OUR DISTRIBUTION CHANNELS                                                                                        PRODUCTS AVAILABILITY,                                                       PRODUCTS SALES, ACTIVITIES, SECOND-LIFE PRODUCTS
     ORGANISING SPORTING EVENTS                                                                                                   OPTIMAL STORAGE TIME                                                         AND EVENTS, WORKSHOP ACIVITIES, +9.1% GROWTH
     WITH HELP FROM OUR COMMUNITIES                                                                                                                                                                            8.7 Kg CO2 eq. PER PRODUCT SOLD (+1.2% COMPARED TO 2016)
     180 INTERNATIONAL PARTNER BRANDS

                                                                                                                                                                                                                                                                                 DPEF2019 CHALLENGES AND STR ATEGIES
                                                                                                                                                                                                                           MICHEL ABALLEA
                                                                                                                                                                                                                           DECATHLON UNITED RESPONSIBLE

          L’ÉCO-SYSTÈME                                                                                                                                                                                                    Open Water Swimming enthusiast

          TEAMMATES                               CUSTOMERS AND USERS                 SUPPLIERS                                              NGOs/CIVIL SOCIETY                         PUBLIC REGULATORS                                SHARHOLDERS
          TEMMATES, SOCIAL PARTNERS               CUSTOMERS, USERS, CONSUMER          BUSINESS PARTNERS,                                     MEDIAS, NGOS, PROFESSIONAL BODIES,         EUROPEAN COMMISSION, OECD, NCPs,                 AND INVESTISSORS
                                                  ASSOCIATIONS, SPORTS CLUBS          DECATHLON PRODUCTS SUPPLIERS                           EDUCATION AND RESEARCH,                    ECOLOGY MINISTERS, ECO BODIES,
          GOWING THROUGH GREATER FREEDOM                                                                                                                                                                                                 AFR/AFM, BANKS, ETC.
                                                                                                                                             LOCAL COMMUNITIES, CSR EXPERTS             AUTHORITHIES
          AND RESPONSABILITY, TAKING DECISIONS    OBJECTIVE : SPORT USER DELIGHTED    BUILDOND LONG-TERM RELATIONS                                                                                                                       CONTROL AND SECURING
          WHERE THEY HAVE AN IMPACT               OR DELIGHTED                        TO SHARE VALUES AND HUMAN AND                          EMBRACING DIALOG IN A PRAGMATIC,           BEING PROACTIVE RATHER THAN                      INVESTMENTS FOR AN SUSTAINABLE
                                                                                      ENVIRONNMENTAL OBJECTIVES TOGETHER                     TRANSPARENT AND HONEST MANNER              SPECTATORS OF THE LEGISLATION RYTHM              AND RESILIENT COMPANY

10                                                                                                                                                                                                                                                                               11
2019 DECLARATION OF EXTRA-FINANCIAL PERFORMANCE - VITALITY RESPONSIBILITY GENEROSITY AUTHENTICITY
CHALLENGES AND STRATEGIES                                      PEOPLE AND MANAGEMENT                                       PRODUCTS AND SERVICES                               RESPONSIBILITY IN PRODUCTION                      STORES AND TRANSPORT                      INDICATORS AND METHODOLOGY

                                    INTERVIEW                                                                                                                                              AT DECATHLON, WE BELIEVE IN COLLECTIVE INTELLIGENCE

                                  FRANCK VIGO
                                                                                                                                                                                      AND WE WANT EACH TEAM MATE TO HAVE THE POSSIBILITY
                                                                                                                                                                                      TO EXPRESS THEIR IDEAS AND DESIRES FOR THE FUTURE OF
                                                                                                                                                                                      THEIR COMPANY.
                                  LEADER OF EXPLORATION AND ACQUISITIONS                                                                                                              WITH VISION 2030, WE WANTED TO OPEN THE EXERCISE
                                                                                                                                                                                      TO EVERYONE, WITHOUT EXCEPTION, UNDER THE GUIDING
                                                                                                                                                                                      PRINCIPLE THAT ALL IDEAS HAVE THE SAME WORTH,

     1   OUR GENERATION IS FACED WITH AN UNPRECEDENTED
         CHALLENGE IN THE AREA OF CONSUMPTION:
     HOW IS IT POSSIBLE TO CONTINUE PROVIDING THE BEST
                                                                                              3     WHAT SHAPE WILL DECATHLON’S BUSINESS MODEL
                                                                                                    TAKE TO MEET THESE CHALLENGES?
                                                                                                                                                                                      WHEREVER THEY COME FROM.
                                                                                                                                                                                      DECATHLON EXISTS BECAUSE OF ITS ECOSYSTEMS WHERE ITS
                                                                                              This change will only take place by bringing to life local                              USERS, CUSTOMERS, PARTNERS, NEIGHBOURS AND SPORTS
     POSSIBLE OFFERING TO MAKE SPORT ACCESSIBLE                                               experiences which are as closely connected to our ecosystem                             CLUBS ALL RESIDE. TO OPEN OUR VISION EXERCISE TO ALL
     TO ALL, WHILE TAKING INTO ACCOUNT THE CHALLENGES                                         as possible: it is our enthusiastic team members who will fulfil                        STAKEHOLDERS, WE CREATED A DIGITAL PLATFORM.
     OF PROTECTING OUR ENVIRONMENT?                                                           Decathlon’s potential, by adding value at every level, thanks to
     The distribution model as we have known it over the last 40                              our products and a successful digital platform.                                         CHARLIE FELGATE, LEADER VISION DECATHLON,
     years, needs to be reviewed; i.e. the mass market is probably                            At the same time, we must also adopt a multi-local mindset: we                          PASSIONATE ABOUT POSITIVE CHANGE
     no longer the answer to achieving growth that is respectful of                           will have to respond to several needs with a single activity. For
     natural resources. We cannot therefore keep using this single                            example, when a client from Lyon wants to go surfing in Hendaye,
     source of growth and must adopt new ways of measuring                                    we must offer all the solutions to issues associated with the                           In 2018, Decathlon relaunched its Vision process, to dream up a new collective adventure.
     performance. Rather than turnover, we must think in terms                                sporting discipline: how to reserve the equipment, where to surf,
     of sustainable business volumes, with the creation of shared                                                                                                                     The company decided to put forward this approach in a collaborative mode, open not only to everyone inside the company but
                                                                                              which community or coach can help them make progress, and                               also to contributions from outside. Consequently, the Vision process is accessible to all those stakeholders who are interested:
     value, which will accompany a fair and equitable transition                              how to monitor and share their sporting performance?
     with the other agents in our ecosystem. We are starting to                                                                                                                       customers, users, partners, etc.

                                                                                              4
     explore this and it is particularly evident this year through our                              IS THERE A DEADLINE FOR THIS CHANGE                                               It is coordinated at a local level, in towns and Decathlon Cities, in order to include as many participants as possible throughout the
     partnership with the All-Tricks market place.                                                  OF BUSINESS MODEL?                                                                network.

     2
                                                                                              Like all the agents involved, Decathlon follows the underlying
           SO WHAT ARE THE CRITERIA FOR DEVELOPING
                                                                                              trends that will stand up to the world of tomorrow. In this                             THEMES OF THE 2030 VISION: The 2026 Vision took up 5 fixed topics, stemming from collective intelligence.
           THIS NEW GROWTH BASED ON PARTNERSHIPS?                                                                                                                                     These topics have evolved and we have chosen to take a step back and continue with 3 major topics, all of which are informed by
                                                                                              uncertain, volatile world, it is difficult to plan a long-term
     The first step is to separate exploration from the development                           strategy, but we can set ourselves ambitious goals. We must                             the two major pillars of our time: sustainable development and digital technology.
     aspect. We are looking for new pathways, with the sole                                   be able to adapt to this changing, unstable and exciting world.
     conviction that there will be few certainties, while sticking firmly
                                                                                              We also need to be able to get everyone on board internally, and
     to certain sustainable development criteria: respect for human
                                                                                              not to be driven purely by immediate results in terms of cost, but                                   FUTURE                                      FUTURE                                           FUTURE
     rights, minimum impact on our environment, building a resilient                                                                                                                              OF PEOPLE                                OF SPORTPEOPLE                                      OF LIVING
                                                                                              also to have a more composed outlook on the future, using other
     economy. This is how we will protect ourselves from the risks
                                                                                              criteria linked to our human and environmental performance.                                                                             “We believe that sport can bring                  “We believe we are moving
     without jeopardising the activities that underpin our current                                                                                                                          “We believe that people are
     development. Then, our obsession will become local growth,                                                                                                                                                                     people together through deep-seated             towards a sharing economy where
                                                                                                                                                                                          the beating heart of the future”
     and the priority will be to build the most relevant external                                                                                                                                                                        and strong human values”                      sports will play a social role”
     partnerships in their field.
                                                                                                                                                                                                                                                                                                  ISABELLE
                                                                                                                                                                                                       MATHIEU RENIER                               FLORENT MARTIN
                                                                                                                                                                                                                                                                                                  BLONDET GONTE
                                                                                                                                                                                                       Future Of                                    Future Of
                                                                                                                                                                                                                                                                                                  Future Of
                                                                                                                                                                                                       People Leader                                SportsPeople Leader
                                                                                                                                                                                                                                                                                                  Living Leader
     OPPORTUNITIES ASSOCIATED WITH TRENDS IN SOCIETY
     ATTRACTION OF THE BENEFITS OF SPORT                                                      DAMAGE TO THE ENVIRONMENT
     HELPING PEOPLE DISCOVER AND EXPERIENCE THE BENEFITS                                      PRESERVING OUR PLAYING FIELDS BY REDUCING                                               Each topic covers sub-topics,                                       THE PROCESS
     OF SPORT IN A SUITABLE AND EASILY ACCESSIBLE FORMAT,                                     THE ENVIRONMENTAL IMPACTS OF OUR ACTIVITIES.                                            so that the subjects can be examined in depth.                      With co-creation and collective intelligence platforms: we
     ANYWHERE AND AT ANY AGE.
                                                                                              DIGITAL TRANSFORMATION                                                                                                                                      are convinced that the Vision must be fulfilled in the most
                                                                                                                                                                                      THE FUNDAMENTALS FOR A VISION
     URBANISATION OF POPULATIONS                                                              PROVIDING OUR TEAMS, SPORTS CUSTOMERS, SUPPLIERS                                                                                                            collaborative way possible. In order to test the different
     SEIZING THE OPPORTUNITIES PROVIDED BY THESE ENVIRONMENTS                                 AND PARTNERS (COMMERCIAL, INDUSTRIAL AND INSTITUTIONAL)                                 THAT EVERYONE CAN EXPERIENCE
                                                                                                                                                                                                                                                          interactions, the Nabaiji Signed Sport started up the process by
     BY PUTTING FORWARD OUR PRODUCTS AND SERVICES.                                            WITH A NEW, QUICKER AND MORE FLEXIBLE MODE OF EXCHANGING,                               On the principle of Co-Construction: the 2030 Vision is being
                                                                                              WORKING AND CONNECTING.                                                                                                                                     experimenting with the platform for the Swimming Vision in 2020.
                                                                                                                                                                                      put together with all the team members and open to all of
                                                                                                                                                                                      Decathlon’s ecosystems, because the creation and deployment         A co-creation platform open to everyone, so that you can be

                                                                                                                                                                                                                                                                                                                               DPEF2019 CHALLENGES AND STR ATEGIES
     OUR COMPETITIVE ADVANTAGES                                                                                                                                                       of our own future is a collective adventure.                        inspired, better understand the challenges of each subject and
                                                                                                                                                                                      At the local level: in order to take up the action plans in the     express yourself on each topic:
     THE INTEGRATION OF THE VALUE CHAIN, THE VALUE OF OUR HUMAN VITALITY, GENEROSITY AND AUTHENTICITY, THE VALUE                                                                      most effective way possible and deploy them in such a way that      https://vision2030.decathlon.com/drivingchange/debate/1
     OF OUR RESPONSIBILITY THAT WE USE TO MAKE BOLD DECISIONS, OUR EASILY ACCESSIBLE PRODUCTS FOR A WIDE AUDIENCE                                                                     they match the needs, the 2030 Vision must be experienced at
                                                                                                                                                                                      the centre of the Decathlon Cities.

     THE GLOBAL MARKET FOR SPORTS
                                                                                                                                                                                      With new ways of working together: the changes in scale
                                                                                                                                                                                      (increasing from 70,000 to 100,000 employees and from 25 to
                                                                                                                                                                                                                                                               220                        9,000
                                                                                                                                                                                                                                                               TRAINED VISION             CONTRIBUTIONS
     Decathlon manages its activities on the global market, with a commercial presence in 57 countries and production activities in 47 countries. The field of activity is            50 countries) require a proactive search for balance between
     specialised distribution with the following 3 sub-sectors: manufacturing sporting goods, retailing sporting and leisure goods, and sports-related activities. The distribution   maintaining control of Operational Excellence while attaining            COORDINATORS               ACROSS 57 COUNTRIES
     is fulfilled by pure-players (specialised chains of single-brand or multi-brand sporting goods) and non-specialised distributors (sports departments of department stores,
     distributor chains or independent distributors). In terms of consumption, sporting goods are used both for sports or for their extended uses (casual wear, streetwear or
                                                                                                                                                                                      and living out our transformation objectives at the same time.
     outdoor wear). The distribution is across multiple channels: physical stores (big box stores to convenience stores), e-commerce (store deliveries, drop-off points and
     home deliveries). According to Capitalmind, the world market is valued at €388 billion. It is growing by 4 to 5% per year.
                                                                                                                                                                                                                         https://fr.decathlonvision2030.com/
12                                                                                                                                                                                                                                                                                                                             13
2019 DECLARATION OF EXTRA-FINANCIAL PERFORMANCE - VITALITY RESPONSIBILITY GENEROSITY AUTHENTICITY
CHALLENGES AND STRATEGIES                        PEOPLE AND MANAGEMENT                        PRODUCTS AND SERVICES                    RESPONSIBILITY IN PRODUCTION                            STORES AND TRANSPORT                            INDICATORS AND METHODOLOGY

     OUR MAIN                                                                                                                                  METHODS

     EXTRA-FINANCIAL RISKS
                                                                                                                                            The main extra-financial risks are identified and updated during the review of Decathlon’s global risks by the internal audit and risk management
                                                                                                                                            teams, after which they are validated by the Audit Committee.
                                                                                                                                            To keep control of its extra-financial risks, Decathlon takes organisational measures with:
                                                                                                                                            A «Company Representative» (the risk coordinator), who defines the autonomy framework (action framework), makes it available and leads it.
                                                                                                                                            They circulate it in the community of representatives located in the countries. Each leader (the manager for the Country, Decathlon City, store and/
                                                                                                                                            or Signed Sport/Manufacturing Process), with the support of their coordinator, is responsible for adapting this autonomy framework to the local
     For Decathlon, a risk is the possibility that an event will have     value, and managing deviations in performance. The extra-         situation and enforcing it. This organisation is in keeping with the principles of subsidiarity (responsibility as close as possible to the consequence)
     consequences likely to affect the human, environmental,              financial risks are managed using internal management and         in force at Decathlon.
     material, financial and reputation capital. Decathlon implements     control systems which play a key role in running and monitoring   The table presents and describes the main extra-financial risks identified within the company. Assessing these risks is an ongoing task and can be
     measures to identify, prevent, manage and control its risks in       its activities: design, production, logistics and distribution.   supplemented according to changes in the internal and/or external situation. Decathlon conducts its analyses both from the point of view of the
     order to achieve its different objectives: creating and preserving                                                                     risks [-] and the opportunities [+].

                 CATEGORY                                                       SUB-CATEGORY                                                                                 DESCRIPTION OF OPPORTUNITIES [+]; RISKS [-]

                                                                              MEANING AND VALUE                                                                               Teammate commitment, cohesion [+]; Loss of a sense of value [-]

                                                                                                                                              Skills availability and quality, talent development [+]; Loss of skills including expertise, insufficient attractiveness,
                                                                 EMPLOYMENT SKILLS AND MANAGEMENT
                                                                                                                                                          disemployability, non-response to development needs, failure to anticipate job evolutions [-]
                TEAMMATES
                                                                                                                                                                                     Sharing value, participating in company development,
                                                                                 SHARING VALUE
                                                                                                                                                                                              project involvement [+], Pay cut [-]

                                                                                                                                                                                      Teammate health and safety, quality of work life [+];
                                                                              HEALTH AND SAFETY
                                                                                                                                                                                          Accident, illness, occupational stress [-]

                                                                                                                                                                                  Customer/sports user health and safety, product safety
                                                                                                                                                                              (harmlessness, strength, etc.) [+]; Danger for health during use [-]
                                                                              HEALTH AND SAFETY
                CUSTOMERS                                                                                                                                                                    Customer safety in store [+]; Accidents [-]

                                                                                                                                                                         Customer satisfaction, recommendation, loyalty, shopping cart amount,
                                                                           CUSTOMER SATISFACTION
                                                                                                                                                                        product innovation [+]; Negative image, dissatisfaction, loss of turnover [-]

                                                                                                                                                                                   Opportunities [+]; Serious infringement of human rights,
                                                                             BASIC HUMAN RIGHTS
                                                                                                                                                                                fundamental freedoms and the health and safety of people [-]
                    ÉTHICS
                                                                                                                                                                                          Integrity, loyalty, trust in business relations [+];
                                                                                   CORRUPTION
                                                                                                                                                                                         Internal and external acts of fraud/corruption [-]

                                                                                                                                                                                                                                                                                                       DPEF2019 CHALLENGES AND STR ATEGIES
                                                                                                                                                                                              Energy savings, resource availability [+];
                                                                                CLIMATE CHANGE
                                                                                                                                                                                                Physical and transition hazards [-]
              ENVIRONMENT
                                                                                                                                                    Management of emissions and pollution, protection and optimisation of resources in the value chain [+];
                                                                          ENVIRONMENTAL IMPACTS
                                                                                                                                                                         Pollution, loss of resources in availability and quality [-]

                                                                                                                                            OTHER RISKS UNDER CONSIDERATION:
                                                                                                                                            Decathlon devotes particular attention to the risks associated with the inappropriate disclosure, loss or modification of the personal data of its
                                                                                                                                            customers and employees, by complying with the general data protection regulations (GDPR) in particular. Other additional risks may exist, of which
                                                                                                                                            Decathlon is unaware on the date of this declaration or that are deemed insignificant on that date and which could have a negative effect on the
                                                                                                                                            Company in the future.
14                                                                                                                                                                                                                                                                                                     15
2019 DECLARATION OF EXTRA-FINANCIAL PERFORMANCE - VITALITY RESPONSIBILITY GENEROSITY AUTHENTICITY
CHALLENGES AND STRATEGIES                                      PEOPLE AND MANAGEMENT                                                  PRODUCTS AND SERVICES                                    RESPONSIBILITY IN PRODUCTION                                              STORES AND TRANSPORT                 INDICATORS AND METHODOLOGY

      OUR 2015-2019 SD AMBITIONS                                                                                                                                                                       OUR 2019 AMBITIONS TO PROTECT THE ENVIRONMENT
                                                                                                                                                                                                       AND CONTINUALLY REDUCE OUR ENVIRONMENTAL IMPACT*
                                                                                                                                                                                                       *Target dates for some goals may not be 2019 given the current situation and the progress made in each area.     ACHIEVED 2018 ACHIEVED 2019
     Decathlon completed its materiality matrix in 2018. As a result of these observations and the many changes within the company,
     it was decided to start a more global project on Decathlon’s ambitions in terms of sustainable development, which would bring
     together all of Decathlon’s human ambitions.
                                                                                                                                                                                                                          REDUCTION IN OUR CARBON INTENSITY BETWEEN 2016 AND 2026
                                                                                                                                                                                                                          > We create action plans for each activity based on our environmental impact
                                                                                                                                                                                                                                                                                                                           8.4kg                8.7kg
     > Find the Decathlon’ s materiality matrix: www.developpement-durable.decathlon.com/documents                                                                                                     -40%                  assessment and we are working together to reach the target approved
                                                                                                                                                                                                                                                                                                                           CO2 EQ./
                                                                                                                                                                                                                                                                                                                           PRODUCT
                                                                                                                                                                                                                                                                                                                                                CO2 EQ./
                                                                                                                                                                                                                                                                                                                                                PRODUCT
                                                                                                                                                                                                                             by the SBT initiative
     In 2019, work was carried out in this area, in coordination with the teams responsible for Human Resources, while involving the                                                                                                                                                                                         SOLD                 SOLD
     international network of sustainable development teams. This new 2020-2026 Transition Plan on Decathlon strategies in favour of
     Sustainable Development will be communicated within the company during the first half of 2020 and therefore integrated into the                                                                                      REDUCTION IN CO2 EQ. EMISSIONS PER ITEM DELIVERED                                                 311g                322g
     2020 version of the Extra-Financial Performance Declaration.
                                                                                                                                                                                                       -15%               IN EUROPE BETWEEN 2015 AND 2020
                                                                                                                                                                                                                          > We are optimising the transport of our products
                                                                                                                                                                                                                                                                                                                            CO2 EQ./             CO2 EQ./
                                                                                                                                                                                                                                                                                                                            ARTICLE              ARTICLE
       OUR 2019 AMBITIONS TO EMPOWER OUR TEAMMATES
       AND MAKE WORK MORE ENJOYABLE                                                                                                              ACHIEVED 2018 ACHIEVED 2019                                                                                                                                             83 CERTIFIED 89 CERTIFIED
                                                                                                                                                                                                                                                                                                                             SITES                SITES
                                                                                                                                                                                                                          OF NEW COMPANY-OWNED SITES ARE CERTIFIED
                    OF TEAMMATES LOOK FORWARD TO COMING TO WORK EACH MORNING                                                                                                                                              TO THE MOST EXACTING ENVIRONMENTAL STANDARDS                                                      Stores:              Stores:

       65%
                    BECAUSE THEY ARE WORKING TOWARD PERSONAL AND COLLECTIVE GOALS
                    > We recruit people who are passionate about sport, vital, pragmatic and service-oriented                                           50%                      54%                   100%               > We are improving the energy efficiency of our sites and reducing                            118 kWh/m         2   111 kWh/m           2
                                                                                                                                                                                                                             the CO2 equivalent emissions stemming from their energy use
                    > Taking only “yes, absolutely” answers                                                                                                                                                                                                                                                               Warehouses:          Warehouses:

                    OF TEAMMATES PLAY THEIR SPORT REGULARY                                                                                                                                                                                                                                                                58 kWh/m     2       53 kWh/m        2

      100%                                                                                                                                                  -                   82%
                                                                                                                                                                                            1
                    AND CELEBRATE VICTORIES TOGETHER
                                                                                                                                                                                                                          OF THE ELECTRICITY WE USE WILL COME FROM RENEWABLE SOURCES BY 2026
                    > We encourage everyone to play a sport
                                                                                                                                                                                                       65%                > In accordance with our commitment as part of the RE 100 initiative                            55.6%                58.9%
                    OF OUR TEAMMATES HAVE A VOICE IN THEIR OWN DEVELOPMENT
                    AND LEARNING > We support the development of each individual                                                                                                                                                                                                                                           Stores:              Stores:

      100%          I AM SUPPORTED IN MY KNOW-HOW                                                                                                       85%                       85%                                     INCREASING SORTED WASTE                                                                           39%                  39%
                    I AM SUPPORTED IN MY PERSONAL DEVELOPMENT                                                                                           81%                       82%
                                                                                                                                                                                                                         > We optimised the sorting rate for waste generated by our stores and warehouses                Warehouses:          Warehouses:
                    I AM SUPPORTED IN MY PERFORMANCE                                                                                                    83%                       86%                                                                                                                                       66%                  63%
                    TEAMMATES THRIVE BY TAKING ON MORE RESPONSABILITY
                    AND DECISIONS CLOSE TO THEIR CONSEQUENCES                                                                                                                                                             OF SUPPLIERS AT RISK FOR WATER, SOIL OR AIR POLLUTION
                                                                                                                                                                                                                          ARE ASSIGNED AN A, B OR C SCORE ACCORDING TO OUR AUDIT CRITERIA
                    > We make it possible to put the principles of subsidiarity,
                                                                                                                                                                                                       80%                                                                                                                  69%                 80%
                                                                                                                                                                                                                                                                                                                                                           7
                                                                                                                                                                                                                          > We improve the environmental performance of our suppliers’ industrial sites by
      100%             responsability and autonomy into practice
                                                                                                                                                                                                                             helping them continuously reduce their environmental impact based on their risks
                    I HAVE A QUANTIFIABLE MISSION WITH CLEAR KPIs                                                                                       78%                       79%
                    I MAKE DECISIONS ON SUBJECTS I AM INVOLVED
                    AND I MEASURE THE CONSEQUENCES                                                                                                      92%                       94%
      100%          OF TEAMMATES FEEL SAFE IN THEIR WORKPLACE                                                                                           93%                      94%                   WE ARE REDUCING THE ENVIRONMENTAL IMPACT OF OUR
                                                                                                                                                                                                       PRODUCTS BY USING RAW MATERIALS FROM SUSTAINABLE SOURCES                                                          ACHIEVED 2018 ACHIEVED 2019
                    OF TEAMMATES ARE SHAREHOLDERS IN THE COMPANY, IF THEY WISH TO BE2
      100%          > We share the value created at the company                                                                                     52.5%                    48.6%
                    OF TEAMMATES CREATE HUMAN, ENVIRONMENTAL
                                                                                                                                                                                                       100%               SUSTAINABLE COTTON FOR OUR DECATHLON TEXTILE PRODUCTS BY 2020
                                                                                                                                                                                                                                                                                                                            76%                  95%
      100%          AND ECONOMIC VALUE TO ACHIEVE OUR COMPANY PURPOSE                                                                                   92%                      94%
                                                                                                                                                                                                       100%               SUSTAINABLE POLYESTER FOR OUR DECATHLON TEXTILE PRODUCTS BY 2022
                                                                                                                                                                                                                                                                                                                           17.2%                16.3%
       OUR 2019 AMBITIONS FOR THE SUPPLY CHAIN:
       PUT PEOPLE FIRST                                                                                                                          ACHIEVED 2018 ACHIEVED 2019
                                                                                                                                                                                                                          PACKAGING MATERIALS WILL COME FROM
                                                                                                                                                                                                       95%                MORE SUSTAINABLE SOURCES6 BY 2025                                                                85.5%                88.2%

                                                                                                                                                                                                                                                                                                                                                                       DPEF2019 CHALLENGES AND STR ATEGIES
                    OF OUR SUPPLIERS4 ARE GIVEN AN A, B OR C SCORE BASED ON OUR AUDIT CRITERIA
       80%                                                                                                                                              86%                      86%
               3
                    > We regularly assess our suppliers to verify that working conditions comply
                    with our Code of Conduct

                                                                                                                                                                                                       OUR 2019 AMBITIONS TO COMMUNICATE RESPONSIBLY,
       OUR 2019 AMBITIONS TO BE A LEADER IN PRODUCT SAFETY                                                                                                                                             PRAGMATICALLY AND HONESTLY ABOUT OUR SUSTAINABLE
       AND LONG-TERM USER SATISFACTION                                                                                                           ACHIEVED 2018 ACHIEVED 2019                           DEVELOPMENT ACTIONS                                                                                               ACHIEVED 2018 ACHIEVED 2019

                                                                                                                                                                                                                           OF TEXTILE, FOOTWEAR AND HEAVY STITCHING PRODUCTS
                    SATISFACTION FOR USERS OF OUR SPORTS PRODUCTS5
                                                                                                                                                                                                                           WILL BE ASSIGNED AN ENVIRONMENTAL SCORE BY THE END OF 2019
       67%          > We ask them to share feedback about our Decathlon products
                    so that we can continuously improve them
                                                                                                                                                        65%                      68%                   60%                 > We ensure complete transparency in labelling the environmental performance                   30.1%                61.1%
                                                                                                                                                                                                                              of our Decathlon products to support responsible consumption

                                                                                                                                                                                                ___
                           1. Due to the evolution of DTMB survey between 2018 2019, the question’ terminology is not exactly the same. The results are not completely comparable to last year.
16                                                     2. In the countries where the process does take place for Decathlon. - 3. Common objective for social and environnemental audits for 2019.                                                                                                                                                                      17
                                                                   4. Rank 1 - 5. Percentage of users awarding our products a score of 4 to 5. 6. Made from paper pulp. - 7. Both rank 1 and rank 2.
2019 DECLARATION OF EXTRA-FINANCIAL PERFORMANCE - VITALITY RESPONSIBILITY GENEROSITY AUTHENTICITY
CHALLENGES AND STRATEGIES                        PEOPLE AND MANAGEMENT                     PRODUCTS AND SERVICES                 RESPONSIBILITY IN PRODUCTION                     STORES AND TRANSPORT                     INDICATORS AND METHODOLOGY

     OUR STAKEHOLDERS                                                                                                                     ISABELLE GUYADER,
                                                                                                                                          IN CHARGE OF SUSTAINABLE DE VELOPMENT AT DECATHLON
                                                                                                                                          “As a designer and distributor of sports products, we have a responsibility to act regarding the targets for sustainable
                                                                                                                                          development defined by the United Nations. Over the last 10 years, we have made progress on Climate issues, by
     For Decathlon, 2019 was marked by an acceleration of the collaborative work with our stakeholders. This work means that we           implementing measurement tools, initiatives to reduce our CO2 emissions, the gradual transfer to renewable energy sources,
     can confirm our commitments in terms of sustainable development, strengthen our methodologies and contribute to a collective         the development of an eco-design process for our products, etc.
     impact. > Find all our Stakeholders on page 134.
                                                                                                                                          We want to move forward on matters related to biodiversity and protecting our oceans. We are convinced that working
                                                                                                                                          collectively and sharing will enable us to move faster and set up sustainable solutions.”
                                                                          MIKE PEIRCE,
                                                                          CORPOR ATE PARTNERSHIPS DIRECTOR,
                                                                          THE CLIMATE GROUP                                               JANTINE WERDMÜLLER VON ELGG, MANAGING DIRECTOR STRONGER TOGETHER,
     QUOTES                                                               “We are delighted to be working with Decathlon on the           ANDHANNAH NEWCOMB, MANAGING DIRECTOR RESPONSIBLE RECRUITMENT TOOLKIT
     FROM OUR
                                                                          RE100 initiative – by committing to make the switch to
                                                                                                                                          “Modern slavery is a risk to any business and its supply chain and we are pleased to have worked with Decathlon on
                                                                          renewable energy, they are demonstrating the growing
                                                                                                                                          proactive steps in mitigating the risks. In 2019, Decathlon introduced Stronger Together’s e-learning to raise awareness

     STAKEHOLDERS
                                                                          demand for clean power. We applaud their ambitious
                                                                                                                                          amongst the large population of Decathlon employees. Decathlon is using the e-learning as an educational tool, as well as
                                                                          commitment of switching to 100% renewable electricity
                                                                                                                                          an engagement opportunity to have conversations and build capacity with their Purchasing, Production and Sustainability
                                                                          in all their geographies by 2026 through impactful methods,
                                                                                                                                          teams. In October 2019, we facilitated an interactive workshop in which 35 Decathlon Operational Process Managers came
                                                                          and urge other companies to follow their lead.”
                                                                                                                                          together to learn more about detecting, deterring and dealing with modern slavery in order to take next steps.
                                                                                                                                          In 2020, we will continue to collaborate with Decathlon on addressing hidden labour exploitation risks, focusing on
                                                                                                                                          responsible recruitment. Decathlon will join with other leading UK and global retailers as a Sponsor of the Responsible
                                                                                                                                          Recruitment Toolkit, providing a package of support to their supply chain to help embed responsible recruitment practices.”
        LINDITA XHAFERI-SALIHU,                                           ALEXANDER FARSAN,
        SECTORS ENGAGEMENT LE AD,                                         GLOBAL LE AD FOR SCIENCE-BASED TARGETS AT W WF,
        UN CLIMATE CHANGE, GLOBAL CLIMATE ACTION                          ONE OF THE SCIENCE BASED TARGE TS INITIATIVE PARTNERS
        “Acting on climate has never been more urgent. Fashion            “Congratulations to DECATHLON on having their emissions
        Industry Charter is an extraordinary mechanism for fashion        reduction targets validated by the Science Based Targets        GÉRALDINE FORT,
        companies, suppliers and retailers to collaborate on climate      initiative. By setting targets that align their business with   MANAGING DIRECTOR OF THE ORSE
        solutions.                                                        global efforts to avoid the worst impacts of climate change,    “This year, the CSR Observatory (ORSE) is celebrating its 20th anniversary and we are very proud to count Decathlon
        Decathlon is an important partner of the charter and we           Decathlon is positioning itself to thrive as the global         among our members and recently, as a board member. Indeed, Decathlon is a company that is constantly looking for new
        look forward to its active contribution in fulfilling charter’s   economy transitions to a low-carbon future.”                    challenges, developing its methods and making improvements at the service of its employees, customers and partners in
        mission to drive the industry to net zero emissions.”                                                                             keeping with societal issues.”

                                                                                                                                             RESPONSIBILITY IN PRODUCTION                                               PRODUCTS SAFETY AND QUALITY

              ENVIRONNEMENTAL MANAGEMENT                                                INSTITUTIONAL RELATIONS

                                                                                                                                                               DUTY OF CARE                                                         GREEN IT
                                ECO-DESIGN

                                                                                                                                                                                                                                                                        DPEF2019 CHALLENGES AND STR ATEGIES
                                                                                                                                          FIND THE PRESS INFORMATIONS WHICH                                                         RAHEL DAMAMME
                                                                                                                                          DETAIL OUR COMMITMENTS IN 2019:                                                         LEADER SD REPORTS
                                                                                                                                          http://developpement-durable.decathlon.com/                                         STAKEHOLDER RELATIONS
                                                                                                        Le projet Plastic Leak            documents-et-rapports/documents/                                                                 Yoga enthusiast

18                                                                                                                                                                                                                                                                      19
CHALLENGES AND STRATEGIES                      PEOPLE AND MANAGEMENT                         PRODUCTS AND SERVICES                     RESPONSIBILITY IN PRODUCTION                    STORES AND TRANSPORT               INDICATORS AND METHODOLOGY

     OUR 2019 ORGANISATION                                                                                                                                                                         SANDRA POPIHN
                                                                                                                                                                                                   SD LOGISTICS
                                                                                                                                                                                                   AND TRANSPORT
     The Decathlon sustainable development team is organised into a network of more than 80 team members, covering every                               RAFFAELE DUBY
                                                                                                                                                       ENVIRONMENT
                                                                                                                                                                                                                       RAHEL DAMAMME
     topic and country.                                                                                                                                                                                                SD REPORTS
                                                                                                                                                PRODUCTS AND DESIGN
     THE AGENTS                                                                                                                                                                                                        STAKEHOLDER RELATIONS
     Country Sustainable Development Leaders: Country Sustainable Development Leaders: With their teams, they uphold
     Decathlon’s sustainable development strategy in their country, along with the action plans, and are in direct contact with their       JULIEN
     stakeholders.                                                                                                                                                                                                                 EMILIE AUBRY
                                                                                                                                           GONTIER
                                                                                                                                                                                                                                   CO2 MANAGEMENT
     Leaders of the Transformation Process: Given their responsibility for a key topic, they prepare for changes affecting society          GREEN IT
     and are in contact with stakeholders relating to their subject. With the team members, they co-construct the tools and methods
                                                                                                                                                                                      SUSTAINABLE
     so they can become autonomous and guarantee the application of their process is globally consistent.                                                                             DEVELOPMENT
     Decathlon SD Leader: In collaboration with the Decathlon Leader and in keeping with the company’s strategy, they define the         KATY DRAPER                                  TRANSFORMATION
     sustainable development goals in consultation with the SD team and team members. They head the team of transformation              EXTRA-FINANCIAL
     process leaders and the network of leaders in each country.                                                                          PERFORMANCE                                 PROCESS                                         MATHILDE DEFRENNE
                                                                                                                                                                                                                                      INTERNATIONAL
     MANAGING THE SD STRATEGY                                                                                                                                                         LEADERS                                         SD NETWORK FOR RETAIL
     The strategy is managed by the SD leader, the circle of Sustainable Development contributors (made up of representatives
     from various geographical areas and business activities), the external stakeholders, the internal auditors, the Decathlon Leader
     and the board of directors.                                                                                                          ISABELLE GUYADER                                                                         MARIE CHAILLOU
                                                                                                                                        DECATHLON SD LEADER                                                                        COMMUNICATION
                                                                                                                                        DECATHLON SD LEADER
                                                            PETAR GLUHAK                                                                            FRANCE
                                                                    CROATIA
                                                                                                                                                                                       RONAN LE MOGUEN
                                         ANTHONY WEI                                                                                                                                   SUSTAINABLE                  SOUNDOUS HASSOUNI
                                         CHINA
                                                                                                                   ELIS RICAURTE                                                       DEVELOPMENT                  DUTY OF CARE
                                                                                                                   COLOMBIA                        RASHIDA ARSHAD                      IN PRODUCTION
                                                                                                                                                   PAKISTAN

                       HILAL YILMAZ              THAIS SALOMAO
                       TURKEY                              BRAZIL
                                                                                                 PIERRE FAHY
                                                                                                 FRANCE           HOSSAM
                                                                                                                ELGAWANY                         JULIA HSU                                                                CIRCLE OF CONTRIBUTORS
                                                                                                                      EGYPT                                                                                               (INTERNAL AND EXTERNAL)
                                                            MARINA STASSINOPOULOS                                                                TAIWAN
                          SIRA
                          JUNTRASOOK                        GERMANY
                          THAILAND                                                                                                                                LEANDRO SA
                                                                                                                                                                  PORTUGAL

                                                            JEREMY PIOLET
                         NADÈGE IFF                                 VIETNAM                                                                                                                                                                     DECATHLON
                         PHILIPPINES
                                                                                                                                                                                          IÑIGO GARCIA             MANAGEMENT                   LEADER
                                                                                                                                                        ANNIE GEORGE                      SPAIN
       VIANNEY
                                   ROELAND VERVLOET
                                                                                                   COUNTRY                                              INDIA
      BURUCOA
      INDONESIA                          NETHERLANDS                                               SUSTAINABLE
                                                                                                   DEVELOPMENT                                                                                                                              BOARD OF
                                                                                                                                                                                                                                            DIRECTORS
                                                                                                                                                                  SERGEI TIUVETSKII
                                                                                                   LEADERS                                                        RUSSIA
                                                                                                                                                                                                  RANA RAHMAN
                                                                                                                                                                                                  BANGLADESH
                                                       GIORGIO POSSI
                     MAKARA PICH                               ITALY                                                                                                                                               INTERNAL
                         CAMBODIA                                                                                                                                                                                  AUDITORS

                                                                                                                                                                                                                                                              DPEF2019 CHALLENGES AND STR ATEGIES
                                                                                                                                                 AMJAD SBAYTI
                                                                                                                                                 MOROCCO
          IZUMI
      SHIBASAKI

                                                                                                                                                                                                                EVERYBODY
                                                 EMMA WOOLLEY                                                                                                                          ALIX GOURSAT
           JAPAN
                                                 UNITED-KINGDOM                                                                                                                        SINGAPOR
                                                                                                                                             JOERI MOONS

                   LOUISE-EGLANTINE
                          GUILLAUME                      RADOSLAW
                                                                                                          LETIZIA ABRAMO
                                                                                                                      SWISS
                                                                                                                                                   BELGIUM
                                                                                                                                                                                                       HAS TO PLAY A ROLE !
                                MEXICO                 POLECHONSKI                                    CIPRIAN MOISE                                    DASA POTOCNIK   ANASTASIA BOIKO                                        ALL DECATHLONIANS
                                                             POLAND                                                                                    SLOVENIA                 UKRAINE
                                                                                                      ROMANIA

20                                                                                                                                                                                                                                                            21
CHALLENGES AND STRATEGIES                PEOPLE AND MANAGEMENT                        PRODUCTS AND SERVICES                                       RESPONSIBILITY IN PRODUCTION                                             STORES AND TRANSPORT                                          INDICATORS AND METHODOLOGY

     OUR COMMITMENT                                                                                                                                    2019 REPORT
                                                                                                                                                       ON GREENHOUSE
                                                                                                                                                       GAS EMISSIONS:

     TO TACKLING THE                                                                                                                                   In order to monitor its greenhouse
                                                                                                                                                       gas emissions3, Decathlon has been
                                                                                                                                                       examining all the GHG emissions

     CLIMATE CHALLENGE
                                                                                                                                                       associated with its activities since 2013.
                                                                                                                                                       Starting with the extraction of the raw
                                                                                                                                                       materials needed for production and up
                                                                                                                                                       to the sale of the products in stores and
                                                                                                                                                       their end-of-life; the analysis includes                                  OUR COMMITMENT:
     In 2017, the attending States signed the Paris Agreement in response to the urgent need to reduce greenhouse gas emissions                        manufacturing, product transportation,                                    TO REDUCE OUR GREENHOUSE GAS EMISSIONS
     in order to keep global warming below a threshold beyond which the disastrous consequences for our environment would be                           customer and teammate travel, and
     irreversible. In 2018, the IPCC1 college of experts defined the maximum warming value to be 1.5°C by the end of the century.                      onsite emissions. This reporting is now                                   BY 40% PER PRODUCT SOLD BETWEEN 2016 AND 2026

                                                                                                                                                                                                                           1
                                                                                                                                                       conducted quarterly.
                                                                                                                                                       After some encouraging results in 2018,                                        OBJECTIVES VALIDATED
                                                                                                                                                       Decathlon projected a 3.8% reduction                                                                                                     OUR AIM IS TO BECOME
     THE FIGURES OF                                              Given the situation, in 2019, Decathlon sought to put together an                                                                                                    BY THE EXTERNAL SBT
                                                                 action plan involving all its internal players and suppliers, aimed                   in carbon intensity between 2016 and                                                                                                     A CLIMATE POSITIVE
     OUR COMMITMENT                                                                                                                                    2019. Despite the decisions made and                                           INITIATIVE4
                                                                 at tackling the climate challenges. This projection of initiatives                                                                                                                                                             BUSINESS 7 BY 2030
     IN FAVOUR OF THE CLIMATE                                    incorporates the company’s economic growth forecasts and                              initial actions taken, the results of the                           Decathlon has worked on developing
     AS OF 31/12/2019                                            provides a realistic trajectory towards a low-carbon economy,                         GHG emissions report showed a 1.2%                                  its CO2 trajectory using the method                                  This objective will be achievable by
     ___                                                         validated by the SBT initiative.                                                      rise in 2019 compared to 2016. These                                proposed by the SBT initiative. The                                  modelling the actions associated with

     1.2%
                                                                                                                                                       results must quickly influence the                                  final objective is to align this trajectory                          our commitment to using electricity
                                                                 Thanks to the carbon footprint assessments conducted since
                                                                                                                                                       decisions of the company, particularly                              with a common global effort in order to                              that is exclusively generated from more
                                                                 2013, Decathlon is aware that greenhouse gas emissions can only
                                                                                                                                                       regarding product impact. Indeed, the                               keep global warming below 1.5°C, (the                                renewable sources by 2026.
                                                                 be reduced close to the local sources of emissions: this is why
                                                                                                                                                       main reason for this poor performance                               threshold set by the Paris Agreement
                                                                 the strategies aimed at training the teams, the effective use of                                                                                                                                                               On scope 3, which represents indirect
     INCREASE IN CO 2 EMISSIONS                                                                                                                        is the low percentage of eco-designed                               (COP21) and revised in 2018 following
                                                                 measurement tools and the appropriation of practical action plans                                                                                                                                                              emissions (supply, transport, end-of-life
                                                                                                                                                       products (4% in 2019) and the lack of any                           the conclusions of the IPCC). This
     PER QUANTITY SOLD IN 2019                                   put together on site are more important than ever.
                                                                                                                                                       improvement in this percentage.
                                                                                                                                                                                                                                                                                                of products, etc.), the objective is to
                                                                                                                                                                                                                           trajectory is defined using a series of                              convince Decathlon’s main suppliers to
       COMPARED TO 2016                                                                                                                                This is why the decision was taken in                               commitments on costed objectives,                                    define their own science-based target
                                                                                                                                                       2019 to manage the monthly percentage                               the results of the analysis of our action                            plan for reducing their CO2 emissions
     8.7 KG CO2e IN 2019, 8.6 KG CO2e 2016                                                                                                             of eco-designed products sold, in order                             plans and the means deployed to achieve                              by 2024. As of 31/12/2019, 827
                                                                                                                                                       to motivate the internal teams (Signed

     6.6%
                                                                                                                                                                                                                           these objectives and tackle the climate                              companies worldwide have made the
                                                                                                                                                       Sports & industrial processes, financial                            challenge.                                                           same commitment as Decathlon to the
                                                                                                                                                       teams).                                                             The Science-Based Target expert                                      SBT initiative, and 340 have a validated
                                                                 KEY POINTS FOR 2019                                                                   Currently, all the resources, action
                                                                                                                                                       plans and commitments suggest that
                                                                                                                                                                                                                           committee       has     validated     these
                                                                                                                                                                                                                           objectives. For Decathlon’s scopes 1 & 2,
                                                                                                                                                                                                                                                                                                objective.
     INCREASE IN GLOBAL EMISSIONS                                                                                                                      conditions are in place for improving the
                                                                                                                                                                                                                                                                                                For the first time, Decathlon also
                                                                                                                                                                                                                           i.e. carbon emissions directly associated                            responded to the CDP non-govern-
     10,532,129 T CO2e IN 2018,                                  > THE PLAN TO IMPROVE OUR CARBON FOOTPRINT,                                           carbon performance in the medium term.                              with the company’s activities and                                    mental organisation5 “climate change”
     11,226,200 T CO2e IN 2019                                   WHICH INCLUDES ALL OF OUR ACTION PLANS BASED                                          To build this new low-carbon economy                                indirectly associated with the company’s                             questionnaire, which aims to assess the
                                                                 ON OUR ECONOMIC PROSPECTS, HAS BEEN VALIDATED                                         and the business model that will sustain                            energy consumption, Decathlon is

     12%
                                                                                                                                                                                                                                                                                                transparency of the initiatives taken by
                                                                 BY THE SBT INITIATIVE. Decathlon is committed to reducing                             it, the companies must change more                                  aiming to reduce its total CO2 emissions                             companies to reduce their greenhouse
                                                                 its total CO2 emissions by 75% on the scopes 1 and 2, by 2026.                        quickly and be more efficient than ever                             by 75% by 2026.                                                      gas emissions. Decathlon received an
                                                                                                                                                       before.
                                                                 In 2019, Decathlon reduced its GHG emissions on this perimeter                                                                                                                                                                 “A-” grade6, which means that the action
                                                                 by 12%, compared to 2016.                                                                                                                                                                                                      plan is ambitious and transparent, but
     FEWER GHG EMISSIONS                                                                                                                                                                                                                                                                        that the results are not yet significant.
     ON OUR SCOPES 1 AND 2                                       > ON OUR SCOPE 3, WE ARE ROLLING OUT AN AMBITIOUS
                                                                 PLAN TO REDUCE OUR EMISSIONS AT OUR PARTNER AND
           2019 VS 2016
                                                                 STRATEGIC SUPPLIERS’ SITES, by helping them to define
                                                                 their own science-based target trajectory for reducing                                BREAKDOWN OF OUR                                                                                      BREAKDOWN OF OUR
                                                                                                                                                       GHG EMISSIONS BY SCOPE                                                                                GHG EMISSIONS BY ACTIVITY                             PRODUCT
                                                                 CO2 emissions by 2024.                                                                                                                                                                                                                            USE
                                                                                                                                                       TONS OF CO2 EQ.                                                                                       IN %
                                                                                                                                                                                                                                                                                                                   7%

                                                                                                                                                                                                                                                                                                                                            DPEF2019 CHALLENGES AND STR ATEGIES
     OUR OVERALL OBJECTIVE                                       > WE ARE SUPPORTING OUR GOALS WITH EXTERNAL
     ___                                                                                                                                                                                                                                                                                                               SITE CONSTRUCTION
                                                                 INITIATIVES, which we use to share our best practices                                       SCOPE 1                                                26,894 T. CO2 EQ.

     40%
                                                                                                                                                                                                                                                                                                                       AND OPERATIONS
                                                                 and take collective action.                                                                                                                                                                       PRODUCT
                                                                                                                                                                                                                                                              MANUFACTURING                                            3%
                                                                 > WE ARE MAINTAINING OUR SUPPORT FOR THE LOCAL                                              SCOPE 2 (Market-Based Method2)                         141, 026 T. CO2 EQ.                                   46%                                              TEAMMATE
                                                                                                                                                                                                                                                                                                                           AND CUSTOMER
                                                                 NETWORK, so that each player can appropriate their own GHG                                                                                                                                                                                                TRAVEL

     LESS CARBON INTENSITY                                       emission measurement and define the best action plans for                                   SCOPE 3                                                11, 058,280 T. CO2 EQ.                                                                                 16%
                                                                 reducing the carbon footprint of their activity.
     PER PRODUCT SOLD                                                                                                                                                                                                                                                                                                  PRODUCT
                                                                                                                                                       SCOPE 1: direct emissions. SCOPE 2: indirect emissions from energetical
                                                                                                                                                       consumptions. SCOPE 3: other indirects emissions (Supply, transport, use,
                                                                                                                                                                                                                                                                     RAW MATERIALS
                                                                                                                                                                                                                                                                        EXTRACTION                                     TRANSPORT   4%
       BETWEEN 2016 AND 2026                                                                                                                                                                                                                                                    19%                    END OF SERVICE
                                                                                                                                                       end-of-life...).                                                                                                                                LIFE FOR PRODUCTS   5%
                                                                                                                                                ___    ___
                                                                                                 1. IPCC: Intergovernmental Panel on Climate Change.   2. The scope 2 result (Market-Based Method) is in the KPIs board in this report. - 3. Greenhouse gases = GHG
22                                                                                                                                                     4. SBT: Science Based Target - 5. CDP: Carbon Disclosure Project: https://www.cdp.net/fr/ - 6. The scores range from D to A, A being the best score.                                 23
                                                                                                                                                       7. The climate positive concept is being defined with external companies and NGOs: http://www.netzero-initiative.com/
CHALLENGES AND STRATEGIES                         PEOPLE AND MANAGEMENT                               PRODUCTS AND SERVICES                                      RESPONSIBILITY IN PRODUCTION                                  STORES AND TRANSPORT                     INDICATORS AND METHODOLOGY

                                                                                                                                                                    3
       FOCUS                                                                                                                                                                   A NETWORK OF LOCAL                                Finally, the design teams for the Signed
                                                                                                                                                                                                                                 Sports and industrial processes have an
                                                                                                                                                                               LEADERS EQUIPPED
     WHY SHOULD THE CHANGE                                                                                                                                                                                                       eco-design module which supports them
                                                                                                                                                                               WITH DEDICATED                                    in calculating the life cycle analyses of

                                                                                                                                                                                                                                                                              4
     IN CARBON INTENSITY
                                                                                                                                                                               TOOLS TO DRIVE                                    the components and final products. The
                                                                                                                                                                                                                                                                                      NETWORKING WITH
     BE MONITORED RATHER                                                                                                                                                                                                         dedicated teams have also had access to
                                                                                                                                                                               PERFORMANCE                                                                                            EXTERNAL PARTNERS
     THAN THE GLOBAL VOLUME                                                                                                                                                                                                      analysis tools and training since 2018, in
     OF GHG EMISSIONS?                                                                                                                                              In 2019, the international network was                       order to easily extract the environmental            IN ORDER TO COMBINE
                                                                                                                                                                    made up of 136 sustainable development                       impacts at different levels.
     After several years’ experience in carbon                                                                                                                      leaders, including 35 country leaders10,                                                                          OUR STRENGTHS
     accounting for the entire footprint of                                                                                                                                                                                      All of these tools provide a comprehensive
                                                                                                                                                                    64 Signed Sports leaders and 37                                                                           In order to situate Decathlon’s actions
     Decathlon, the kg CO2e/product sold                                                                                                                                                                                         overview of Decathlon’s impacts: by
                                                                                                                                                                    industrial process leaders.                                                                               within the global effort needed to achieve
     indicator turns out to be the one that                                                                                                                                                                                      country, by product family and by Signed
                                                                                                                                                                    These local players are responsible for                                                                   the objective of limiting climate change,
     has the most meaning for the company,                                                                                                                                                                                       Sport. 75% of the Signed Sports products
                                                                                                                                                                    defining the impact reduction strategy                                                                    the company has joined forces with
     whose goal is to make the pleasures and                                                                                                                                                                                     have an estimated environmental impact.
                                                                                                                                                                    and the associated local action plans.                                                                    several initiatives to act collectively and
     benefits of sport accessible to as many                                                                                                                        Consequently, the impact of our                                                                           have the biggest possible impact.
     people as possible in the long-term.                                                                                                                           products, sites (stores and warehouses)
                                                                                                                                                                                                                                 KEY FIGURES                                   Joining the UNFCCC initiative11 :
     This indicator focuses on the changes                                                                                                                          and around 280 suppliers is today                                                                         DECATHLON has signed the Fashion
     rather than a particular figure in order to                                                                                                                                                                                 AS OF 31/12/2019
                                                                                                                                                                    measured locally.                                                                                         Industry Charter for Climate Action. Under
     reflect the daily efforts made to reduce                                                                                                                                                                                    ___
                                                      The energy supply of our suppliers:          The objective is to eco-design all new                          The impact of sites and transportation                                                                    the aegis of the UN Climate Change,
     the impact of the company’s activities.         Decathlon is supporting its partner            products by 2021, in order to reach                                                                                                                                       this commitment brings together the
     However, it is still important to continue
                                                                                                                                                                    includes the following: the movements                        NEARLY

                                                                                                                                                                                                                                 1,460
                                                     and strategic suppliers in managing            100% eco-designed products by 2026.                             of teammates and customers, energy                                                                        signatories and organisations to act
     monitoring the total emissions curve.           the energy transition through a network                                                                                                                                                                                  collectively in the fight against global
                                                                                                     Product transportation: The strategies                        consumed, product transportation, waste
     The reference year is 2016, which was           of CO2 advisers. The network was set           to reduce CO2 emissions associated                              production, building construction, pur-                                                                   warming.
     when the main Decathlon commitments             up to assist the suppliers of Decathlon        with transportation include initiatives                         chasing consumables, and air conditioning                                               SITES             In practical terms, taking part in working
     were made. This reference base means            products in monitoring their energy            on haulage transport (lorries and barge                         leaks.                                                                                                    groups can help define the tools and
     that the analysis is not solely focused         consumption and in their action plans;                                                                                                                                        STORES AND WAREHOUSES
                                                                                                    transportation) and distribution (from

                                                                                                                                                                                                                                   279
                                                                                                                                                                    In recent years, training courses,                                                                        select the most suitable methods for
     on annual performance, given that the           the work is based on action plans aimed        warehouses), which have dropped by                                                                                                                                        speeding up the reduction of the impacts
                                                                                                                                                                    tutorials and the quarterly reporting
     results of certain actions can only be          at reducing greenhouse gas emissions,          4% and 7% respectively. The strategy of                                                                                                                                   with our suppliers, given that several
                                                                                                                                                                    of environmental data have made it
     perceived in the medium term and require
     a longer period of analysis (particularly
                                                     following a trajectory validated by the
                                                     SBT. The supplier training and teaching
                                                                                                    reducing air transport has resulted in no                       possible to monitor results site by site.                    AND                                          clients are asking them to make the
                                                                                                    further increase in the utilisation of this                                                                                                                               same efforts.
     for actions related to the design of our        initiatives were deployed throughout           transport mode. However, the proportion
                                                                                                                                                                    Since 2018, the programme to reduce                          PRODUCTION SITES
     products).                                      2019.                                                                                                          local    environmental     impacts  on                                                                     Committing with the signatories of
                                                                                                    of our transported products is on the                                                                                        ARE TRACKED IN                               the Fashion Pact : Launched in August
                                                                                                                                                                    suppliers’ sites has gone hand-in-hand

     2
                                                      The eco-design of the Signed Sports          rise, which has dented the effectiveness
                                                                                                    of this strategy with an 11% increase in
                                                                                                                                                                    with monitoring their CO2 emissions,                         THE EMISSIONS                                2019 during the G7 meeting in Biarritz,
              WHAT ARE OUR                           products to reduce impact through                                                                              using the software that we make                              CALCULATION TOOL                             the Fashion Pact aims to bring together
                                                     the different stages of the life cycle.        the CO2e/product sold.                                                                                                                                                    players in the fashion and textile sectors
              HIGH-PRIORITY                                                                                                                                         available to them (see p. 83).
                                                     Decathlon is continuing its environmental      Actions on waste and the end-of-life                                                                                                                                      to define common objectives around
              STRATEGIES?                            assessment work, with 75% of its               of products are also being deployed                                                                                                                                       the following three issues: climate,
      Energy supply: by integrating the             products assessed by the end of 2019.          and managed at the local level. As a                                                                                                                                      biodiversity and the oceans.
     RE100 initiative8 , Decathlon has               The historical data are re-evaluated,          result, 39% of store waste and 63% of
                                                                                                                                                                                                                                                                               Validation of our SBT trajectory has
     committed to sourcing all of its                based on the added databases,                  warehouse waste was sorted in 2019.                                                                                                                                       meant we have also been able to join
     electricity from renewable sources              particularly thanks to work done in            All in all, every initiative has been                                                                                                                                     the call to action launched by the United
     by 2026. In 2019 58.9% ofelectricity            collaboration with ADEME9. The impact          implemented and will gradually be                                                                                                                                         Nations and participate in the #Our Only
     consumed came from renewable                    of products is a key component of the          rolled out to more countries. The carbon                                                                                                                                  Future awareness campaign, which aims
     sources, which means we reduced the             overall carbon footprint. Reducing this        performance of 2019, which represents                                                                                                                                     to build awareness among businesses
     CO2 emissions of the electricity used on        impact will be linked to the percentage        an increase of 1.2% in our carbon                                                                                                                                         about their share of the responsibility to
     our sites by 4% between 2016 and 2019           of eco-designed products available in          intensity per product sold compared                                                                                                                                       limit the rise in global temperatures to
     (see p. 96).                                    the range of Signed Sports products            to 2016, is linked to the time taken to                                                                                                                                   1.5°C above pre-industrial levels.
                                                     developed by the Signed Sports teams           implement strategic actions (e.g. a
     In 2019, we are backing up this effort in two
                                                     on the one hand, and the efforts of our        period of approximately 24 months is
     ways: by reducing energy consumption
                                                     sales assistants in store to accelerate        necessary between a product being
     at our sites (5% kWh/m² decrease in our
                                                     user demand for these products.                designed and being available for sale).
     stores and 8% kWh/m² decrease in our

                                                                                                                                                                                                                                                                                                                            DPEF2019 CHALLENGES AND STR ATEGIES
     warehouses), thanks to the relamping            In-store training, supported by the recent     We have observed a 12% decrease in
     operations in particular (see p. 86); and by    monitoring of sustainable turnover, are        GHG emissions on our scopes 1 and 2
     increasing the consumption of electricity       practical initiatives designed to boost        (between 2016 and 2019), which is an
     from renewable sources, thanks to the           these sales, with the transformation           encouraging sign of the effectiveness of
     massive commitment of new countries             of the business model being geared             our action plans on our direct emissions.
     such as India and Germany. By the end of        towards making second-life products
     2019, 100% of the power consumption             more easily accessible (see p. 61).
     of Belgium, France, Spain, the United
     Kingdom and India was from renewable
     sources, with Italy at 97%, Germany at
     85% and the Netherlands at 84%.

                                                                                                                                                             ___    ___
                                                                                                                                          8. http://there100.org/   10. Countries concerned: see our organisation, page 21
24                                                                                                9. ADEME: French energy agency website: https://www.ademe.fr/     11. UNFCCC: United Nations Framework Convention on Climate Change                                                                                       25
CHALLENGES AND STRATEGIES   PEOPLE AND MANAGEMENT   PRODUCTS AND SERVICES         RESPONSIBILITY IN PRODUCTION                                                STORES AND TRANSPORT                                            INDICATORS AND METHODOLOGY

                                                                                       PUTTING PEOPLE AT
     PEOPLE AND                                                                        THE HEART OF OUR GROWTH
     MANAGEMENT
                                                                                       As part of its commitment to deploying a social and human
                                                                                       resources policy that is in keeping with its core values,
                                                                                       Decathlon believes that teammates who are happy in their jobs
                                                                                       contribute to its long-term performance. This is why quality of
                                                                                       life at work2 has become an essential and integral part of the
                                                                                       company’s concerns.
                                                                                       In order to encourage measures that improve working
                                                                                       conditions as well as the overall performance of the company,
                                                                                       Decathlon provides tools and creates a work environment in
     PEOPLE                                                                            which employees can express themselves and act freely.
     AT DECATHLON                                                                      Well-being at work is a powerful means of fostering a strong
                                                                                       commitment and a spirit of enterprise that drives social
     IN FIGURES                                                                        innovation. A direct result of the latter is the creation of value
     AS OF 31/12/2019
     ___
                                                                                       within a business. In 2019, 54% of teammates stated that they
                                                                                       were happy in their job (total of “yes, strongly agree”). This
                                                                                       indicator, which is the cornerstone of Decathlon’s human
                                                                                                                                                                                                On the other hand, were projects aimed at getting people on the

     54%
                                                                                       resources policy, is measured using an annual in-house survey.
                                                                                                                                                                                                job market, creating greater diversity in the teams, promoting
                                                                                       Teams can use this to assess themselves and set up action
                                                                                                                                                                                                intergenerational cooperation and having many positive
                                                                                       plans to promote happiness at work.
                                                                                                                                                                                                repercussions including the performance and fulfilment of
                                                                                       2019 was marked by the restatement of commitments on                                                     every employee at Decathlon.
                                                                                       various topics related to the Quality of Life at Work (“QLW”)
     OF TEAMMATES                                                                      in France. On the one hand, there were initiatives promoting
     ARE HAPPY                                                                         diversity, whether these were in the area of gender equality and                                                                            PEOPLE AT DECATHLON
                                                                                       the prevention of sexism or on topics related to people with
                                                                                                                                                                                                                                   IN FIGURES
     IN THEIR JOBS1                                                                    disabilities.
                                                                                                                                                                                                                                   AS OF 31/12/2019
                                                                                                                                                                                                                                   ___

     74.3%
     OF TEAMMATES IN
                                                                                       KEY POINTS FOR 2019
                                                                                                                                                                                                                                   3.8%
                                                                                                                                                                                                                                   OF TEAMMATES
     THE TOTAL WORKFORCE                                                               1. DECATHLON RAMPED UP ITS CAMPAIGN                                                                                                         ARE DISABLED
                                                                                       AGAINST SEXISM AND CONTINUED TO RAISE AWARENESS
     WERE ON PERMANENT                                                                 AMONG TEAMMATES ABOUT THE MULTIPLE BENEFITS
                                                                                                                                                                                                                                   (ITALY SCOPE)
     CONTRACTS

                                                                                                                                                                                                                                   65.5%
                                                                                       OF DIVERSITY WITHIN THE TEAMS.

     WORLDWIDE                                                                         2. DECATHLON’S MISSION HANDICAP DIVISION
      AT THE END OF 2019                                                               CELEBRATED 20 YEARS OF DEDICATION TO ITS CAUSE
                                                                                       AND HIGHLIGHTED INITIATIVES IN FAVOUR
                                                                                                                                                                                                                                   OF TEAMMATES ARE

                                                                                                                                                                                                                                                                                                    DPEF2019 PEOPLE AND MANAGEMENT
                                                                                       OF RECRUITMENT AND JOB RETENTION.
                                                                                                                                                                                                                                   UNDER 29 YEARS OLD

                                                                                                                                                                                                                                   0.84%
                                                                                       3. DECATHLON CONTINUED THE PROJECT
                                                                                       CALLED “Y A PAS D’AGE” (THERE’S NO AGE LIMIT)
                                                                                       ENCOURAGING THE TRANSFER OF SKILLS
                                                                                       FROM OLDER EMPLOYEES.
                                                                                                                                                                                                                                   ARE OVER 55 YEARS OLD
                                                                                                                                                                                                                                      THROUGHOUT THE WORLD

                                                                                       ___
                                                                                       1. Result of the “Decathlon Team Barometer” survey of Decathlon teammates at the end of 2019, to which 67,575 teammates responded. Percentage of people who answered “yes, strongly agree”.
26                                                                                     2. Quality of Life at Work encompasses the following areas: disability; intergenerationality; equal opportunities in the workplace; occupational well-being; psychosocial risks; as well as getting people   27
                                                                                       (back) into employment.
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