Promoting sustainable fishing - and aquaculture - Carrefour Group

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 sustainable fishing
 and aquaculture

                                  sustainable fishing
                                  and aquaculture

                                                                Our__ aim
                Carrefour introduced its responsible fishing range in 2005. The Group set itself the target of having
                50% of all of the fish that it sells under its Carrefour brand (and under national brands at the traditional
                fish counter) coming from sustainable fishing practices by the end of 2020.

                With this in mind, Carrefour works closely with its producers and other players in the sector on the
                following points:
                   favouring the more abundant species, products certified by MSC as being from sustainable sources
                       and fishing techniques having the least impact on ecosystems. Carrefour also suspends sales of
                       endangered species;
                  supporting the development of responsible aquaculture(1) by promoting best practices (limiting
                       the use of non-responsible industrial fishing, banning antibiotics, GMO-free feed, for example) and
                       placing greater emphasis on ASC-certified or organic-certified products;
                    supporting local sustainable fishing through local partnerships;
                     giving in-store prominence to a broad range of responsibly sourced seafood products;
                      promoting the fight against illegal fishing.

                Carrefour is committed to supporting its partners in this area. The Group’s action plan here benefits from
                regular input from international NGOs, scientific committees and fishery organisations on biodiversity
                issues and seafood products. Overfishing is a global problem requiring local responses. Solutions to protect
                resources must be adapted to each fishing area and put into practice jointly with local stakeholders.
                The approach is therefore being phased in progressively together with country-by-country initiatives.

                In order to ensure a responsible supply of seafood and aquaculture products, the Group uses the
                following tools:
                  the Carrefour Quality Lines, selected lines that are traceable back to the boat or farm;
                   the Aquaculture Stewardship Council (ASC) label for responsible aquaculture, which guarantees
                       respect for the environment, ensures animal well-being and monitors working conditions;
                    the Marine Stewardship Council (MSC) label for sustainable fishing, which guarantees the commitment
                       of fishermen, abstaining from overfishing and ensuring respect for the marine environment;
                     the Bio label, which identifies products from environmentally friendly farms;
                      fishing techniques that do not harm the planet’s biodiversity and which ensure that other species
                       (such as dolphins and turtles) are not caught accidentally as well. Such techniques include cane
                       fishing and ones that do not involve aggregating devices;
                       fishery products that have implemented a robust local improvement project (or FIP: Fisheries Improvement
                       Project(2)) (except tuna for which the FIPs are not considered enough for a sustainability logo).
                  (1)Rearing fish and seafood products for commercial purposes. This method is in addition to the various fishing methods and
                  is used to produce marine products that meet consumer demand without the resources being overexploited.
                  (2)Multi-stakeholder initiatives that aim to help fisheries evolve towards sustainable modes of operation.

2020 CSR REPORT - June 2021. Verif ied information for the year 2020.                                                                           1
 sustainable fishing
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                                                 Our objectives
                                                and performancee

                                      50%                                                             50%
                                          Our 2020 goal:                                                  Our new goal:

                          of fish sold under the Carrefour brand                      of all of the fish sold under the Carrefour brand
                        (and for national brands in the traditional                      and under national brands to come from
                           section) will come from sustainable                            sustainable fishing practices by the end
                                fishing by the end of 2020.                                                of 2025(3).



            AN F ION
              D                                                                -3.7%
            TRAN X
                                                                  47.5%                  43.8%

                                            2018                    2019                   2020                             End of 2020

                   The target of selling 50% of Carrefour branded fish from responsible fishing by the end of 2020 is
                   not achieved, with a Group total of around 43.8% of responsible products (Carrefour brands and
                   national brands for fresh products). A slight decrease is observed in 2020 following the extension
                   of the geographical scope of application compared to 2019.

                   Following this result, Carrefour is strengthening its action plans and setting a more ambitious target,
                   extending the approach to all national brand products (fresh and convenience products) : to achieve
                   50% responsible fishing for Carrefour-branded and national and national brand products by 2025.

                                                                                                                    Change             Target
                      KPI                                                    2018         2019         2020
                     percentage of sales including VAT of                                                                              50% by
                     own-brand products derived from                          28,1         47,5         43.8           3.7 %           end of
                     sustainable fishing practices(1)                                                                                   2020

                     percentage of sales including VAT
                                                                                                                                       50% by
                     of own-brand and national-brand
                                                                               31           31           33             2%             end of
                     products derived from sustainable
                     fishing practices(1)

                     Total sales of Bio, MSC or ASC
                     certified fishing products                               339          403          602            49 %                -
                     (in millions of euros)(2)

                   (1) Scope: Non-comparable BUs (96.7% of 2020 consolidated sales excl. VAT vs 93.6% of 2019 consolidated sales excl. VAT).
                   Excluding Romania, Argentina, Taiwan and Poland that were included in 2020. Sustainable fish sales comprise fish certified
                   as organic, MSC, ASC or from Carrefour Quality Lines, as well as fish sold under other responsible programmes. This ratio
                   includes: – sales of products audited for all sections of products derived from fishing or aquaculture, – sales of national brand
                   products for the fresh fish section only.
                   (2) Scope: Comparable BUs. Excl. RO (96.7% of 2019 consolidated sales excl. VAT).
                   (3) Scope: unprocessed and relatively unprocessed aquatic animal products – - excluding for out-of-home catering

2020 CSR REPORT - June 2021. Verif ied information for the year 2020.                                                                                  2
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                              PRODUCTS (INCL.SEAFOOD COUNTER - WITHOUT NAMES)
                                                                             (IN €M)(1)

                                                                                                                Total sales - other responsible
                                                                                                                fishing initiatives - controlled
                                                                                                                products (incl. seafood counter -
                                                       566                                                      without names)

                        500                               70
                                                                                                                Total sales - CQL fish/livestock
                                                                                       58                       Total sales - Organic fishing/
                                                         205                                                    livestock - controlled products
                          178                                                                                   (incl. seafood counter - without
                          36                              76                                                    Total sales - ASC - controlled
                          66                                                                                    products (incl. seafood counter -
                                                                                       245                      without names)
                          151                            170
                                                                                                                Total sales - MSC - controlled
                                                                                                                products (incl. seafood counter -
                         2018                            2019                         2020                      without names)

                   (1) Scope: Non-comparable BUs (93.6% of 2019 consolidated sales excl. VAT vs 87.7% of 2018 consolidated sales excl. VAT). Excl.
                   RO, PL. Sustainable fish sales comprise fish certified as organic, MSC, ASC or from Carrefour Quality Lines, as well as fish
                   sold under other responsible programmes. This ratio includes:
                   – sales of products audited for all sections of products derived from fishing or aquaculture,
                   – national brand products for the fresh fish section only.

2020 CSR REPORT - June 2021. Verif ied information for the year 2020.                                                                                3
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                                             Our action
                   Deploying Carrefour Quality Lines

                   In order to guarantee an ever more responsible supply of fish and aquaculture products, the
                   Carrefour Group is supported by the development of its Carrefour Quality Lines (CQLs) – products
                   which are selected and then tracked right up to the vessel and/or the breeding basin. A fully-
                   fledged agro-ecological laboratory, these product lines adhere to more stringent specifications in
                   partnership with suppliers.

                   Below is the list of CQL fishery products currently sold across the Group:
                    Spain: Vannamei Prawn, meagre, bass, sea bream, octopus, bonito, Atlantic cod, trout
                     France: ASC-certified Norwegian salmon, MSC-certified cod, ASC-certified Madagascar prawn,
                             ASC-certified Ecuador prawns, fine fattened oysters / Marennes-Oleron IGP oysters, Brittany /
                             Cancale / East or West Normandy / Bouzigues oysters, flat oysters, STG Bouchot mussels, PDO
                             Bouchot mussels from the Bay of Mont-St-Michel, Rope-grown mussels, Rope bass and seam
                             bream, Corsica Label Rouge meagre, trout, MSC-certified whelk, St Brieux scallops, Normandy
                             Label Rouge scallops, crab.
                      Belgium: Smoked omega bass, Vannamei prawn.
                       Italy: Smoked salmon, Vannamei prawn
                        Argentina: Patagonian wild prawn.
                         Brazil: Tilapia
                          Poland: Vannamei prawn
                           Romania: Vannamei prawn
                            Taiwan: Milk Fish

                   Suspending sales of endangered species
                   Since 2007, Carrefour has been phasing out sales of endangered species. In France, for example,
                   several endangered species have now been removed from the counters. These include emperor,
                   blue ling, shark (except dogfish), sturgeon, forkbeard, pomegranate, grenadier, sabre fish, tusk,
                   eel, red sea bream and skate.
                   In 2018, fishing for bass was suspended during spawning season.

                   Fishing practices with lower environmental impact
                   Carrefour favours applying the principle of precaution with regard to electric fishing. In 2020,
                   Carrefour France confirmed its commitment to not selling species fished electrically. This method
                   has serious consequences on fish stocks and leads to difficulties reproducing, as well as some of
                   the overfishing which endangers the survival of certain species. All Carrefour France suppliers have
                   therefore confirmed their compliance with this exclusion for all fish sold in the fresh fish section
                   and for Carrefour-brand frozen fish.

                   Carrefour France sells several types of tinned tuna caught using alternative methods, such as line
                   fishing or methods that do not involve aggregating devices; these selective fishing techniques
                   have a lower impact and constitute a more responsible alternative for consumers.

                   Furthermore, the introduction of an «Exceptional product» approach has helped promote more
                   artisan forms of fishing, identifying products that are derived from small-scale coastal fishing
                   practices that are in compliance with certain specifications (type of vessel, duration of fishing
                   operation and product freshness). Sales for this segment have been growing strongly since 2018.

2020 CSR REPORT - June 2021. Verif ied information for the year 2020.                                                        4
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                           CASE STUDIES: Sustainable fishing in France and Italy

                                 FRANCE: customers in France can choose from a wide range of
                           sustainably sourced seafood products in stores:
                               t the frozen counter, all Carrefour wild cod and hake is MSC-certified; in 2020,
                              15% of sales of frozen counter products were for MSC-certified products;
                              in the canned fish section, specifications for Carrefour’s own-brand canned
                              tuna stipulate fishing techniques and methods that have a lower impact on the
                               t the fresh fish counter, a responsible fishing and livestock farming initiative
                              was deployed across all hypermarkets and supermarkets with a traditional
                              counter before 2020. These stores sell exclusively MSC-certified cod and ASC-
                              certified Carrefour Quality Line Norwegian salmon at their fish counters, reared
                              without GMOs (
 sustainable fishing
 and aquaculture

                           CASE STUDY: More environmentally friendly Carrefour Quality Line trout
                           in partnership with Bleu-Blanc-Coeur

                           As part of its ongoing drive to improve the specifications of its CQL products,
                           Carrefour has been working with an Ardèche producer, a food supplier and the
                           Bleu-Blanc-Coeur association to sell CQL trout that have been fed on food that
                           combines reduced environmental impact and increased nutritional value.

                           In order to promote the sustainability of natural resources, encourage the diversity
                           of the ingredients making up the trout’s diet and guarantee the nutritional quality
                           of the filets, Bleu-Blanc-Coeur is taking action to improve the diet of trout. This
                           involves increasing the diversity of plants, legumes and seeds which are rich in
                           nutrients such as flax or beans. In addition, the share of industrial fishing normally
                           used has been reduced and imported soybeans, the main cause of deforestation
                           worldwide, have been eliminated.

                           SPONSORSHIP FOCUS: The Carrefour Foundation supports the PELA-Méd

                           Since 2019, the Carrefour Foundation has been a partner of Planète Mer, an
                           association founded in 2007, which strives for a sustainable balance between
                           the marine world and human activity. The association spearheads numerous
                           initiatives and is now joining forces with the fishermen of the Var region in France
                           to launch the PELA-Méd programme: Fishermen committed to the future of the

                           This project shines a spotlight on small-scale fishing. Its aim: help fishermen in
                           the Var region to co-manage fishery resources, improve their knowledge of key
                           species such as urchins and rock mullet for example, and step up the fight against
                           poaching, which is a priority.

                           Planète Mer, in partnership with the Var Departmental Committee for Fisheries and
                           Marine Livestock (CDPMEM-Var), is supported by the prud’homies’ des pêcheurs,
                           a long established industrial tribunal made up of fishermen who structure their
                           fishing activities across the region.

                           11 members of the tribunal from the region make up the project’s steering
                           committee. Supported by scientists, managers of protected areas, government
                           marine services, local authorities and representatives of Planète Mer, the
                           11 members will help develop a co-management plan to determine and enforce a
                           sustainable level of exploitation for fish stocks.

                           PELA-Méd is designed as a “pilot” project to be extended and replicated across
                           other coastal regions in the future, the aim being to introduce fishing techniques
                           that do not damage fish stocks or interfere with people’s practices.

                   More responsible aquaculture

                   Carrefour works closely with its producers and the industry’s stakeholders to develop more responsible
                   forms of aquaculture by using farms with good practices. As such, Carrefour:
                     prohibits the presence of ingredients derived from illegal, unreported or unregulated fishing in
                         all its Carrefour branded products,
                      prohibits the presence of GMOs in its Carrefour Quality Line products,
                       is reducing or even phasing out the use of antibiotic treatments with its Carrefour Quality Line
                        is actively looking at how farmed fish are fed.

                   Actions are being implemented to reduce the share of farmed fish feed produced using industrial
                   fishing techniques(5), which accounts for nearly 20% of the world’s wild marine catch, and is replacing
                   it with fish trade by-products(6).
                   (5)Intensive industrial fishing intended to feed the industrial lines with small fish of low commercial value, which will be
                   transformed into fishmeal and fish oils for animal feed in aquaculture, livestock farming, etc.
                   (6)In most cases, this involves, after the wholesale purchase of seafood, transforming the fish and other crustaceans so as
                   to sell a processed finished product

2020 CSR REPORT - June 2021. Verif ied information for the year 2020.                                                                             6
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                   Nowadays, there are many steps involved in transforming this food:
                    Trials with partner suppliers (CQL salmon) are under way to reduce the share of marine feed derived
                      from industrial fishing, and also to replace some of the fish oils with algae oils or incorporate
                      insects into them.
                     Trials are also under way in France (on the CQL trout line) in order to reduce the use of industrial
                      fishing practices and to remove palm oil and imported soymeal from the ingredients used to
                      make the aquaculture feed.

                   Furthermore, promoting sales of shellfish helps to reduce the impact on marine resources – no
                   exogenous food is given to the shellfish, which feed exclusively on phytoplankton in the natural

                   Vigilance on practices along our supply chain

                   Carrefour conducts compliance audits on the premises of its direct suppliers and requires the
                   same level of vigilance from them in relation to their own suppliers. These audits are conducted
                   in accordance with strict standards (ICS and BSCI) and include major human rights themes. We
                   therefore make sure that no forced labour or child labour are used, that there are no forms of
                   harassment or discrimination, and that people work decent hours. These are all checked by auditing
                   our suppliers on a regular basis and then following up on these audits.

                   Auditing is not an end in itself, but rather a tool that opens up dialogue and enables a compliance plan
                   to be implemented so as to bring the supplier’s working practices into line with the requirements.

                   The European Union’s regulation to end illegal, unreported, and unregulated (INN) fishing requires
                   “third-party countries” (those outside the European Union) exporting fish to the EU or lending their
                   flags to vessels that import into the EU to comply with strict fishery management standards. If
                   these standards are not met, countries can be “carded”, which means that they could eventually
                   be excluded from the EU market.

                   In order to combat illegal practices, Carrefour prohibits the use of boats belonging to countries
                   which have received yellow or red cards from the EU.

                           FOCUS ON TRACEABILITY: Applying blockchain technology to Carrefour Quality
                           Line salmon

                           Carrefour propose à ses clients depuis le 21 janvier 2020, de découvrir l’ensemble
                           de Since 21 January 2020, Carrefour customers have been able to use blockchain
                           technology to find out everything about Carrefour Quality Line Norwegian fresh
                           salmon production. This currently applies to 140 g skinned salmon steaks (available
                           in packs of two or four), as well as to salmon fillet hearts, the aim being to roll the
                           technology out to all fresh Carrefour Quality Line salmon.
                           This Carrefour Quality Line product is underpinned by the expertise of producer
                           Leroy, which tracks the salmon from the egg right up to the finished product, and
                           is in line with a responsible approach, bolstered by ASC (Aquaculture Stewardship
                           Council) certification. Thanks to this close collaboration with Leroy, Carrefour is
                           expanding its range of seafood products that use blockchain technology, launching
                           it on one of its flagship fresh fish products – fresh Carrefour Quality Line salmon.
                           Blockchain technology guarantees consumers complete product traceability.
                           Consumers can scan a QR code on the label with their smartphones and then
                           access an interface which will give them a wealth of information about the route
                           that the product has taken – from where it was farmed right up to when it was
                           placed on the store shelves.
                           Consumers can, for example, view GPS coordinates to find out where it was farmed
                           and learn about the type of aquaculture in which Leroy engages. They can also use
                           blockchain technology to identify the various stakeholders involved in the whole
                           product line and find out about their livestock rearing practices and the quality
                           control practices in use along the entire length of the production process.
                           This technology has already been used to enable full traceability of other product
                           categories such as eggs, oranges and fresh milk. It is now being deployed with our
                           two other salmon producers.

2020 CSR REPORT - June 2021. Verif ied information for the year 2020.                                                         7
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                           FOCUS ON COVID-19: Carrefour is standing alongside fishermen to support them
                           during the health crisis

                                 FRANCE: During the current COVID-19 pandemic and in line with
                           Alexandre Bompard’s desire to help and support SMEs, Carrefour is taking action
                           to support the French fishing industry. As prices collapse, Carrefour is committing
                           to purchasing certain volumes at certain prices, so that the fishing industry can
                           continue to function, and fishermen can be guaranteed pre-pandemic prices.

                           The Carrefour group is standing alongside several players in the seafood industry,
                           including the Océalliance group, France’s leading seafood industry player. It is
                           supporting French fishing by guaranteeing volumes and purchase prices for
                           around ten major species, including mackerel, sardines, ling and whiting. Half of
                           the output of the fisheries sector usually goes to catering businesses and their
                           closure is having a significant impact. Carrefour is keen to provide its support and
                           give visibility to this sector, which is vital to the French agri-food industry.

                                   ESPAGNE : In December 2020, a preliminary agreement was signed
                           with the Spanish fishing industry. The aim of this partnership is to eliminate the
                           uncertainty associated with auction prices by guaranteeing fishermen prices that
                           will allow their fleet to continue to operate. At the same time, this type of purchase
                           commitment means that we can sell products at stable prices for our customers.

                           This preliminary agreement was signed with the Santona association in Cantabria
                           in order to sell mackerel caught in this port.
                           This commitment reflects Carrefour’s willingness to support the fishing
                           sector, which has been hit hard by the Covid-19 crisis. It is the first in a series of
                           12 agreements, which will be signed throughout 2021.

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                                                Our organization

                        A risk and supply committee was set up in 2018. It analyses the risks arising from Carrefour’s
                        sourcing practices and devises strategies for dealing with them, including a strategy for protecting
                        marine resources. It draws up and circulates the Group’s purchasing rules. It reports to the
                        Group Secretary General. This committee brings together the following departments: audit &
                        risk, CSR, own-brand, merchandise, fresh produce, legal affairs, quality.

                        The procurement rules are defined in a cross-category manner by the Group and disseminated
                        for application in all countries. The various departments represented on the risk and procurement
                        committee are responsible for enforcing the rules in force in the countries in which the Carrefour
                        Group operates.

                        The sustainable fishing policy performance indicators are incorporated into the CSR and Transition
                        Index. This index is given a 25% weighting as a criterion in a long-term executive compensation
                        plan and a 20% weighting in compensation for the Chairman and Chief Executive Officer.

                        The “Sustainable Fisheries” policy and the purchasing rules apply to all purchases of raw or
                        minimally processed products containing at least 50% aquatic products (wild or farmed),
                        Carrefour brand products (fresh, frozen and tin counter) or products sold under any other
                        brand (only for fish counter).

                                      COLLABORATIONS AND RESPONSIBLE LOBBYING
                        To learn more about our tuna-specific policy, please refer to our Tuna Policy, found in Act 5 of
                        Act For Food:

                          WWF : The World Wildlife Fund (WWF) is one of the world’s first independent environmental
                          organisations working to end damage to the environment and build a future where humans
                          can live in harmony with nature.

                          WWF has been one of Carrefour’s partners since 1998 and supports it with
                          • conducting regular assessments of species at risk,
                          • developing fishery improvement projects (FIPs)
                          • developing and evolving the Group’s fishing policies

                          ISSF : In 2009, leading scientists and the tuna industry launched the International Seafood
                          Sustainability Foundation (ISSF) based on shared concerns about the future of global tuna
                          fisheries. The ISSF cooperates with regional fishery management organisations (RFMOs).

                          As the majority of Carrefour tuna suppliers are members of this foundation, our internal tuna
                          policy is based on the ISSF’s recommendations. We therefore follow their scientific advice
                          for assessing stocks, managing transshipments, and training captains on conserving marine
                          resources (managing by-catch and fish aggregation systems). In addition, we use their
                          ProActive Vessel Register (PVR) list to select the boats for our supplies.

2020 CSR REPORT - June 2021. Verif ied information for the year 2020.                                                          9
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                          Marine Stewardship Council (MSC): The Marine Stewardship Council (MSC) is an international
                          non-profit NGO that fights overfishing through a certification programme and an MSC
                          label, giving consumers the option to choose to purchase products derived from responsible
                          fishing initiatives.

                          Gauging the sustainability of a fishery in accordance with MSC criteria involves looking at
                          three key areas: the sustainability of fish stocks, minimising the environmental impact and
                          efficiently managing the fishery. Fisheries meeting these broad criteria are therefore awarded
                          the certification.

                          Carrefour has joined the MSC Stakeholder Advisory Council (STAC), which advises the
                          organisation’s Board of Directors on matters including procedures for verifying compliance
                          with label requirements. Carrefour’s aim here is to help improve the label’s relevance by
                          aligning it as closely as possible with consumer expectations.

                          ASC : The Aquaculture Stewardship Council (ASC) is an international non-profit organisation
                          that establishes a protocol on farmed seafood while ensuring sustainable aquaculture.

                          The ASC’s mission is to help aquaculture develop such that it involves more environmentally
                          friendly and socially responsible practices. ASC certification thus implies compliance with
                          several criteria:
                          • Preservation of the natural environment and biodiversity.
                          • Sustainable water and effluent management
                          • Preserving the diversity of wild species and populations (for example, preventing escapes
                             that could pose a threat to wild fish).
                          • Responsible management of animal feeds
                          • Animal health control (no unnecessary use of antibiotics and chemicals).
                          • Respect for local populations and social responsibility


2020 CSR REPORT - June 2021. Verif ied information for the year 2020.                                                      10
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