THE AUCHAN GROUP OBJECTIVES PURSUE OUR PROFITABLE AND HIGH-QUALITY GROWTH ANTICIPATE CUSTOMER EXPECTATIONS ADAPT TO THE CHANGING ENVIRONMENT IN A ...

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THE AUCHAN GROUP OBJECTIVES PURSUE OUR PROFITABLE AND HIGH-QUALITY GROWTH ANTICIPATE CUSTOMER EXPECTATIONS ADAPT TO THE CHANGING ENVIRONMENT IN A ...
THE AUCHAN GROUP OBJECTIVES

      PURSUE OUR PROFITABLE
     AND HIGH-QUALITY GROWTH

 ANTICIPATE CUSTOMER EXPECTATIONS

ADAPT TO THE CHANGING ENVIRONMENT
     IN A SUSTAINABLE MANNER

 SEIZE OPPORTUNITIES FOR GROWTH

 DIFFERENTIATE OURSELVES THROUGH
    EXCELLENT HUMAN RELATIONS
THE AUCHAN GROUP OBJECTIVES PURSUE OUR PROFITABLE AND HIGH-QUALITY GROWTH ANTICIPATE CUSTOMER EXPECTATIONS ADAPT TO THE CHANGING ENVIRONMENT IN A ...
INTERVIEW

                         SOCIAL RESPONSIBILITY:
                              CENTRAL TO
                         OUR CORPORATE VISION
                                          INTERVIEW BY MARIE-HÉLÈNE BOIDIN-DUBRULE,
                                 COMMUNICATIONS DIRECTOR IN CHARGE OF SUSTAINABLE DEVELOPMENT.
                                                                                                                                                   2011 WAS AN IMPORTANT YEAR FOR THE AUCHAN
                                                                                                                                                   GROUP: COMPANY MEMBERS, PARTNERS
                                                                                                                                                   AND CUSTOMERS CELEBRATED THE GROUP’S
                                                                                                                                                   50TH ANNIVERSARY WITH A FOCUS ON SOCIAL
                                                                                                                                                   RESPONSIBILITY.

                                                                                                                                                   Vianney Mulliez: Sustainable development and
                                                                                                                                                   corporate social responsibility have been key focuses
                                                                                                                                                                                                                                               “              Since 2008, when the
                                                                                                                                                                                                                                                      international synergy was created,
                                                                                                                                                                                                                                                      we have been working at Group level
                                                                                                                                                                                                                                                      to develop internal expertise
                                                                                                                                                                                                                                                      in sustainable development. “
                                                                                                                                                                                                                                                                                                                         Patrick Coignard
                                                                                                                                                   throughout these anniversary celebrations. The Auchan
                                                                                                                                                   youth foundation has been extended to all 12 countries
                                                                                                                                                   where the Group is present. This foundation is now open
                                                                                                                                                   to proposals from all our hypermarkets for social                                     Patrick Coignard: A strategy for growth and progress
                                                                                                                                                   solidarity initiatives aimed at young people in difficulty                            requires measuring and comparing different elements
                                                                                                                                                   or from underprivileged neighbourhoods. Each project                                  over time; the Auchan Group has been using sustainable
                                                                                                                                                   provides an opportunity to combine the expert skills                                  development indicators for this purpose since 2009.
                                                                                                                                                   of our company members with those of non-profit                                        These indicators need further improvement and the data
                                                                                                                                                   organisations involved in the local community.                                        collection process requires a standardised process
                                                                                                                                                   “Citizen Days” were also held in France for non-profit                                 in order for the progress chart to be effective.
Vianney Mulliez                                        Patrick Coignard                                                                            organisations such as Restos du cœur and Banques                                      This is a key concern: ISO 26000 introduces the notion
Chairman of the Board of Directors                     Chairman of Spain and Portugal hypermarkets,
                                                                                                                                                   Alimentaires.                                                                         of “an organisation’s performance with regard to the
                                                       Chairman of sustainable development synergy
                                                                                                                                                   Patrick Coignard: The environment has also been                                       society in which it operates and with regard to its impact
                                                                                                                                                   a key focus throughout all our initiatives and events.                                on the environment”.
                                                                                                                                                   “Green Days” were held at all hypermarkets and
                                                                                                                                                   supermarkets in our different countries: a day for                                    ONE OF THE GROUP’S SUSTAINABLE
                                                                                                                                                   planting trees in cities, often involving children from                               DEVELOPMENT PRIORITIES IS TO DEVELOP AN

                                                                                             “
                                                                                                                                                   local schools, because trees play an essential role in
                                                                                                                                                                                                                                         OFFER THAT USES SUSTAINABLE PRODUCTION
                                                                                                                                                   minimising climate change and atmospheric pollution.
                                                                                                         Our strategies for                        These “Green Days” were so successful that many stores                                METHODS, PARTICULARLY IN THE FOOD SECTOR.
                                                                                                                                                   now want to make them a yearly event.
                                                                                                  growth and progress are                                                                                                                Vianney Mulliez: The food industry produces
                                                                                                                                                   2011 WAS ALSO MARKED BY THE RELEASE                                                   over 20% of the world’s greenhouse gas emissions.
                                                                                                  developed within a wide                          OF THE FIRST INTERNATIONAL STANDARD                                                   In 2011, the United Nations Food and Agriculture
                                                                                                  range of national regulatory,                    CONCERNING CORPORATE SOCIAL RESPONSIBILITY                                            Organization – UNFAO(2) – alerted the international
                              IN JUNE 2012, 20 YEARS AFTER THE 1ST                                                                                 – ISO 26000. THIS STANDARD PROVIDES                                                   community about the pressing need for the food industry
                              “EARTH SUMMIT”, STATE AND GOVERNMENT                                economic and social                              GUIDELINES RATHER THAN OFFICIAL                                                       to consume less energy. To minimise transport,
                              OFFICIALS ARE MEETING ONCE AGAIN                                                                                     REQUIREMENTS AND MARKS THE BIRTH                                                      the Auchan Group has increased its line of local and
                              IN RIO DE JANEIRO TO FOCUS ON SUBJECTS
                                                                                                  environments. “                                  OF AN INTERNATIONAL CONSENSUS ON SOCIAL                                               regional produce, with stores in all countries developing
                              THAT HAVE BECOME ESSENTIAL FOR THE FUTURE:                                                         Vianney Mulliez   RESPONSIBILITY ISSUES THAT BUSINESSES NEED                                            partnerships with local producers and regional SMEs.
                              SUSTAINABLE DEVELOPMENT AND THE “GREEN                                                                               TO ADDRESS THROUGHOUT THEIR OPERATIONS.                                               Our logistics system encourages alternative, cleaner
                              ECONOMY”.                                                                                                                                                                                                  methods of transport, with an increasing use of rail
                                                                                          Patrick Coignard: Our international sustainable          Vianney Mulliez: Reporting is a key process in corporate                              and river transport. In France, such methods enabled
                              Vianney Mulliez: Auchan is highly attentive to such         development synergy was created in 2008. Ever since,     social responsibility and this is highlighted in ISO 26000:                           the elimination of 4,645 trucks on the road in 2011.
                              subjects: in March 2011, the entire Group, including        the Group has been developing internal expertise         for companies, reporting involves identifying priorities                              Patrick Coignard: Organic farming is also one
                              all business sectors and countries, joined the Global       in the field of sustainable development. In parallel,     for sustainable development, describing resources                                     of the solutions used to minimise greenhouse gas
                              Compact, a UN initiative launched in 1999 to promote        we have set objectives to target common concerns         deployed and announcing results. The Auchan Group has                                 emissions and store CO2 more efficiently in the soil.
                              social, environmental and corporate responsibility across   that are shared by all countries: decrease our           been publishing a yearly sustainability report(1) since                               This is why we have made it a priority to expand
                              companies worldwide. This pact is supported by              environmental impact, develop a range of sustainable     2010 which is aimed at both an internal and external                                  our organic food range and make it accessible to all.
                              thousands of companies of all sizes, with one shared        products accessible to a large number of consumers       readership and presents our strategies for growth and                                 In all our countries, particularly in the EU, Auchan
                              objective: to participate in a collective strategy          and offer healthy food ranges in response                progress, including those that fall within highly diverse                             has developed its own organic produce ranges using
                              to steadily progress towards a sustainable economy.         to our customers’ dietary concerns.                      national regulatory, economic and social environments.                                sustainable farming methods.

                                                                                                                                                   (1) In 2010, an initial “Group sustainability” report was distributed internally.     (2) UNFAO : United Nations Food and Agriculture Organization.
                                                                                                                                                   In 2011, a digital report was published (available on auchan.com) aimed at internal
                                                                                                                                                   and external readers.
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THE AUCHAN GROUP OBJECTIVES PURSUE OUR PROFITABLE AND HIGH-QUALITY GROWTH ANTICIPATE CUSTOMER EXPECTATIONS ADAPT TO THE CHANGING ENVIRONMENT IN A ...
PRESENTATION OF THE AUCHAN GROUP

ACTIVITIES DISTRIBUTED ACROSS                                                                                               2ND GROUP SUSTAINABILITY REPORT
12 COUNTRIES AND REGIONS
THE AUCHAN GROUP IS ORGANISED INTO INDEPENDENT AND COMPLEMENTARY LINES OF                                                   THE AUCHAN GROUP IS A FEDERATION OF COMPANIES GROUPED TOGETHER UNDER THE STORE’S ORIGINAL BUSINESS NAME. IT IS
BUSINESS. IN 2010, E-COMMERCE BROUGHT A NEW DIMENSION TO THE GROUP, BECOMING                                                STRUCTURED IN A DECENTRALISED MANNER, WITH COMPANIES OPERATING INDEPENDENTLY IN THEIR DIFFERENT LINES OF BUSINESS
ITS 5 TH LINE OF BUSINESS AND COMPLEMENTING ITS HISTORICAL CORE ACTIVITIES                                                  AND IN THE DIFFERENT COUNTRIES WHERE THEY ARE BASED.
– HYPERMARKETS, SUPERMARKETS, IMMOCHAN AND BANQUE ACCORD.
                                                                                                                            THE GROUP’S SUSTAINABLE DEVELOPMENT POLICIES ARE DRAFTED AND COORDINATED BY AN INTERNATIONAL SYNERGY WHICH
                                                                                                                            PROMOTES SHARED OBJECTIVES, EXCHANGE OF GOOD PRACTICES AND DEVELOPMENT OF NEW SKILLS.
                                                                                                                            THIS 2ND EDITION OF THE GROUP SUSTAINABILITY REPORT PROVIDES AN OVERVIEW OF PROGRESS MADE IN 2011. THE REPORT COVERS
                                                                                                                            EACH LINE OF BUSINESS AND EACH COUNTRY. THESE ARE REPRESENTED PROPORTIONALLY IN TERMS OF THE POSITION THEY HOLD
                                                                                                                            WITHIN THE GROUP. SINCE 2009, WE HAVE BEEN WORKING ON DEVELOPING INDICATORS TO GAUGE CHANGES IN RESULTS FROM ONE YEAR
                                                                                                                            TO THE NEXT, AND TO DEFINE TARGET FIGURES FOR THE FUTURE.

HYPERMARKETS                  SUPERMARKETS        IMMOCHAN                   BANQUE ACCORD         OTHER BUSINESSES         DISTRIBUTION OF REVENUE PER BUSINESS SECTOR (%)                               DISTRIBUTION OF EMPLOYEES PER BUSINESS SECTOR (%)

12 countries and regions      5 countries         12 countries and regions   10 countries          3 countries                                           1.0                                                                          0.7
616 hypermarkets              759 supermarkets    320 managed shopping       Net banking income:   22 Alinéa stores                                   1.1    1.9                                                                   0.2    1.6

Turnover: €35.4 bn            Turnover: €7.2 bn
                                                  centres                    €353 M                10 Little Extra stores
                                                  Turnover: €503   bn        2,000 employees       E-Drive, E-commerce                                                                        ■ Hypermarkets                      10.2
235,000 employees             27,500 employees                                                                                                    16.3
                                                  550 employees                                    Turnover: €837    M                                                                        ■ Supermarkets
                                                                                                                                                                                              ■ Oney Banque Accord
                                                                                                   4,200 employees                                                                            ■ Immochan
                                                                                                                                                                                              ■ Other businesses                           87.3
                                                                                                                                                              79.7
INTERNATIONAL PRESENCE

                                                                                                                                                    €44.4 bn                                                                      269,000
                                                                                                                                                        TURNOVER                                                                    EMPLOYEES
                                                                                                                                                                                                                       (equivalent number of full-time employees)

                                                                                                                                 NUMBER OF HYPERMARKETS PER COUNTRY                                             NUMBER OF HYPERMARKETS PER COUNTRY

                                                                                                                                                China 45

                                                                                                     FRANCE                         Taiwan 18                                 France 126
                                                                                                     LUXEMBOURG                                                                                                  Italy 276                                  France 268
                                                                                                     SPAIN                       Russia 48
                                                                                                     ITALY
                                                                                                     PORTUGAL                   Ukraine 8
                                                                                                                              Romania 9                                              Luxembourg 1
                                                                                                     POLAND                    Hungary 12
                                                                                                     HUNGARY                      Poland 26                                   Spain 53                                                                    Poland 27
                                                                                                     ROMANIA
                                                                                                     UKRAINE                            Portugal 33                                                                   Spain 125                     Russia 63
                                                                                                                                                                 Italy 52
                                                                                                     RUSSIA

                                                                                                     CHINA
                                                                                                                                                          431                                                                          759
                                                                                                                                                    HYPERMARKETS                                                                 SUPERMARKETS
                                                                                                     TAIWAN
                                                                                                                                             (excluding the 185 RT Marts in China)

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THE AUCHAN GROUP OBJECTIVES PURSUE OUR PROFITABLE AND HIGH-QUALITY GROWTH ANTICIPATE CUSTOMER EXPECTATIONS ADAPT TO THE CHANGING ENVIRONMENT IN A ...
EMPLOYEES

                                                                                                      269,000 SOURCES
                                                                                                          OF IDEAS
                                                                                                      AS AN ACTIVE PLAYER ON THE EMPLOYMENT MARKET, AUCHAN
                                                                                                      FULLY A SSUME S ITS CORPOR ATE RE SPONSIBILIT Y FOR ITS
                                                                                                      269,0 0 0 EMPLOY EE S. THE GROUP FEEL S S TRONGLY ABOU T
                                                                                                      D E V E L O P I N G J O B S E C U R I T Y, A H I G H - Q U A L I T Y W O R K I N G
                                                                                                      ENVIRONMENT, GOOD REL ATIONS AND A STRONG LE VEL OF
                                                                                                      INVOLVEMENT FROM ALL EMPLOYEES. IT DRAWS ON THE DIVERSITY
                                                                                                      OF PROFILE S A MONGS T I T S HUM A N RE SOURC E S TO MOV E
                                                                                                      FORWARD IN A CULTURE OF RESPONSIBILITY AND SHARING.

                                                                                                      OUR 3 GUIDING PRINCIPLES

                                                                                                      • Auchan is an inclusive company that is open to all profiles. We place
                                                                                                      great importance on staff training, managerial staff support and internal
                                                                                                      promotions.

                                                                                                      • Our human resources policies are founded on the notion of continuous
                                                                                                      improvement, focusing on improving working conditions and developing
                                                                                                      a more participatory management model, so that value creation can
                                                                                                      be shared by all.

                                                                                                      • A culture of diversity is nurtured, promoting gender equality, prospects
                                                                                                      for disabled employees, intergenerational relations and the development
                                                                                                      of schemes and initiatives for young and senior citizens.

                                                                                                      OUR 3 IDEAS FOR THE FUTURE

                                                                                                      • 7,000 additional shareholder employees in 2012.
                                                                                                      • Jointly develop more diploma-granting and sandwich courses with
                                                                                                      partner schools and universities.
                                                                                                      • Support the development of a dozen projects initiated by employees,
                                                                                                      with candidates selected for their “Creative Attitude”.

3 FIGURES FOR 2011
                     269,000
                     EMPLOYEES
                                          152,000
                                       EMPLOYEES IN 9 COUNTRIES OWN
                                                                                          4.4
                                                                            MILLION TRAINING HOURS
                     IN 12 COUNTRIES     11.9% OF THE GROUP'S STOCK   PROVIDED BY THE GROUP IN 2011
THE AUCHAN GROUP OBJECTIVES PURSUE OUR PROFITABLE AND HIGH-QUALITY GROWTH ANTICIPATE CUSTOMER EXPECTATIONS ADAPT TO THE CHANGING ENVIRONMENT IN A ...
EMPLOYEES

                                            OPPORTUNITIES
                                           FOR ALL PROFILES
IN-HOUSE TRAINING                                                          +5.5%                  2011 GROUP EMPLOYMENT STRUCTURE
                                                     2009       2010     2011
Total number of hours                              4,023,987 4,153,166 4,381,411
Overall training rate                                 79%       79%      81.6%                                             Part-
Employee training rate                                66%       76%      75.8%                                             time
Management training rate                              74%       83%      83.2%                                   Full-     32.4%
                                                                                                                 time
Senior executive training rate                        64%       85%      77.4%                                   67.6%
Average number of training hours per employee         20.1      19.3      20.7                                                                     FIGHTING JOB INSECURITY                                           KEY FIGURE                       improved, and employees with potential
                                                                                                                                                   Since 2007, Auchan France has systematically                                                       received better support and guidance

                                                                                                                                                                                                                4,381,411
                                                                                                                                                   offered employees the choice of taking on                                                          on an ongoing basis.
                                                                                                          Permanent
                                                                                                             contract                              full-time positions. Over 3,000 employees have
                                                                                                                11.8%
                                                                                                                                                   taken this opportunity and have gone from                    training hours in 2011
 FIGURES FOR ALL EMPLOYEES*                                INTERNAL PROMOTION RATE
                                                                                                                                                   working a 28-hour week to a 35-hour week.
 2010                                   214,877            2011                                                          Fixed-term
                                                                                                                                                   Auchan also offers benefits and perks for its                                                                      CLOSE-UP
                                                –1.58%                                                                     contract                employees.                                        OFFERING OPPORTUNITIES
 2011                                   211,550                    31.5%                                                    88.2%
        * Excluding RT Mart China.                                                                                                                                                                   FOR OUR EMPLOYEES
                                                                                                                                                                                                     Training and internal promotions contribute
                                                                                                                                                                                                     to employee reliability, professionalism,
                                                                                                                                                                                                     enthusiasm and recognition. In 2011, almost
                                                                                                                                                                                                     4.4 million hours of training were provided
                                                                                                                                                                                                     throughout the Group. While these courses
                                                                                                                                                                                                     primarily target specific positions, they are
                                                                                                                                                                                                     also used as an opportunity to raise awareness
                                                                                                                                                                                                     amongst employees on matters concerning
                                                                                                                                                                                                     the company’s social and environmental             PÃO DE AÇÚCAR
AS A RESPONSIBLE EMPLOYER, AUCHAN TAKES A PROACTIVE AND INCLUSIVE                                                                                                                                    responsibilities. Common modules are provided
APPROACH TO EMPLOYMENT IN ITS 12 COUNTRIES, OFFERING POSITIONS TO A WIDE                                                                                                                             for all positions in all countries, giving an
                                                                                                                                                                                                                                                        FOUNDATION
RANGE OF PROFILES AND ENSURING A HIGH QUALITY OF LIFE FOR ITS EMPLOYEES.                                                                           Auchan provides private health insurance and      overview of the Group’s sustainable                The Pão de Açúcar Foundation
                                                                                                                                                   social benefits, even in countries where doing     development policies. Other more specific           is a social fund that was initiated
THE COMPANY ENDEAVOURS TO IDENTIFY TALENTED INDIVIDUALS, OFFERING THEM
                                                                                                                                                   so is not common practice. In 2011, Auchan        modules are offered to complement the main         in Portugal in 1992 by company
SPRINGBOARDS FOR SUCCESS AND PROVIDING THEM WITH THE RESOURCES THEY                                                                                                                                                                                     executives with the mission
NEED TO EXPRESS THEIR TALENT.                                                                                                                      Ukraine considerably improved medical             programmes focusing on subjects such
                                                                                                                                                                                                                                                        of creating and nurturing
                                                                                                                                                   insurance coverage for its employees, going       as energy savings, waste sorting, sustainable      cooperation, mutual aid and
                                                                                                                                                   well beyond standard company practice for         products, healthy diet, health and safety,         solidarity for employees and their
                                                                                                                                                   the country. An anti-HIV health prevention        and social solidarity. These courses are held      families: it runs an educational
OPEN TO ALL PROFILES                            training in the store. Auchan France runs                                                          programme has also been launched, with            in an environment that encourages individual       support and job training scheme
Offering a broad range of professions,          several schemes to counter discrimination                                                          poster campaigns and awareness-raising            expression from participants. Auchan               and offers activities for retired
the company places great importance on          in recruitment. The “1,000 employment                                                              meetings held in stores. In some countries,       prioritises internal promotion. In China,          employees and assistance for
                                                                                                                                                                                                                                                        families in times of hardship.
integration, making a large number of its       opportunities” operation was held for the 3rd                                                      depending on the local context, employees         21% of retail department managers are former
                                                                                                                                                                                                                                                        In 2011, the foundation set up an
career openings accessible to people of all     year running. This scheme was set up to recruit                                                    can shop at their store at a discounted rate,     store employees, 100% of retail sector             equipment bank for lending items
backgrounds. A lack of qualifications is not     young people from underprivileged                                                                  and receive a transport allowance, meal           managers are former retail department              such as pushchairs, to facilitate life
necessarily a hurdle in terms of employment     neighbourhoods with problems entering                                                              vouchers and/or medical services. Pre-school      managers and 100% of store managers                for company employees. A website
opportunities. Working together with the        the job market.                                                                                    childcare facilities are available for children   are former retail sector managers.                 was also created to promote the
national French employment centre, Auchan       Initially aimed at cashiers and other staff,                                                       of employees in France and Portugal.              During 2011, RT Mart Taiwan focused on             foundation’s activities. In 2010,
France runs a specific scheme to facilitate      the “Recruitment without a CV” operation          Public Instruction, to recruit 200 job seekers   Auchan China implemented an EEC(1) system         identifying internal talents and key skills        the Amadora store opened a pre-
                                                                                                                                                                                                                                                        school childcare centre for children
employment for under-qualified job seekers.      has been tried out for recruiting managers        with disabilities. With the same goal in mind,   to improve working relations and to assist        to create future managerial teams.
                                                                                                                                                                                                                                                        of employees, open all year round
Before they sign their employment contract,     in the Nord region.                               Immochan held job fairs in its shopping centre   employees facing hardship. All stores have        In France, Auchan developed an innovative          for children in the local community.
all beneficiaries of this scheme go through      Hypermarkets and supermarkets in Italy have       in Portugal. Organised jointly by stores and     a social fund and a committee that meets          career management system in response               A 2nd pre-school childcare centre
an orientation period consisting of general     worked in collaboration with job centres and      employment partners, these events provided       regularly to grant emergency financial support     to the company’s need to expand and diversify      will be opening in 2012.
training followed by a week’s on-the-job        municipalities, supported by the Ministry of      an opportunity to publicise 1,000 job offers.    or zero-interest loans.                           its operations. The identification process was

                                                                                                                                                   (1) Employer – Employee – Committee.

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THE AUCHAN GROUP OBJECTIVES PURSUE OUR PROFITABLE AND HIGH-QUALITY GROWTH ANTICIPATE CUSTOMER EXPECTATIONS ADAPT TO THE CHANGING ENVIRONMENT IN A ...
EMPLOYEES

           PROMOTING ATTENTIVENESS, SHARING,
             RESPONSIBILITY AND INNOVATION                                                                                                               DEVELOPING A MORE                                   Spain and Italy. The company members
                                                                                                                                                         PARTICIPATORY MANAGEMENT                            returned to their respective countries with
       PERCENTAGE OF ELIGIBLE EMPLOYEES HOLDING SHARES                                     NUMBER OF SHAREHOLDER EMPLOYEES                               MODEL                                               innovative ideas.
       Hypermarkets                          2009           2010          2011                                                                           Business success is underpinned by listening        The company embarked upon the
       China                                 86%            100%          99%              2009                        119,642                           to and involving those who are in direct            management 2.0 to develop interaction
       Spain                                 98%            98%           98%              2010                           137,023 +10.9%                 contact with customers.                             between colleagues, launching forums for
       France                                94%            94%           93%              2011                             152,000                      All hypermarket and supermarket managers            colleagues and stores. To mark the Group’s
       Hungary                               90%            93%           93%                                                                            started their career at Auchan in front-line        50th anniversary, the French and Italian
       Luxembourg                            62%            57%           84%                                                                            jobs. The “If I were a customer” training           “Simplynautes” of “Mysimplymarket” could
       Italy                                 83%            88%           98%                                                                            module, launched in France and Spain                chat with Vianney Mulliez, Group Chairman,
       Poland                                94%             93%          89%                                                                            in 2009, puts employees in the shoes of             to discuss the Group’s results and prospects.    company savings plan and thereby benefit
       Portugal                              99%             98%          99%                                                                            customers as they do their shopping: they           In Portugal, the internal social network         from a matching policy that tripled the value
       Russia                                 —             74%           64%
                                                                                                                                                         assess the overall atmosphere, clarity of offers,   “Entre Nos” was set up in 2011.                  of this bonus. This brought an additional
       Supermarkets                          2009           2010          2011
                                                                                                                                                         availability of sales assistants, queueing times    It is used for announcing and communicating      3,200 company members into the shareholding
       France                                76%            77%           92%
                                                                                                                                                         at the check-out, etc. The conclusions drawn        corporate and business information concerning    scheme. At the end of 2011, 152,000 company
       Spain                                 80%            78%           86%
                                                                                                                                                         from this study are used to improve the             the company.                                     members were shareholders, owning 11.9%
       Italy                                  —               —           77%
       Alinéa                                95%             91%          69%                                                                            shopping experience and customer relations.         On its 1st birthday, AuchanCnous had over        of the Group’s stock, which represents over
       Banque Accord France                  95%            98%           93%                                                                            For its 50th anniversary, Auchan wanted             6,500 members. The network has a wealth          €1.9 billion. The employee shareholder scheme
                                                                                                                                                         to tap into the wealth of its employees’ talents    of exchanges on a daily basis, enriched with     will be rolled out at the Portugal Banque
                                                                                                                                                         by launching a call for internal candidates         offers, articles on special interests, news on   Accord branch in 2012.
                                                                                                                                                         to create a corporate signature embodying           recent innovations and updates on in-store
                                                                                                                                                         all the Group’s entities. The signature             events.
                                                                                                                                                         presented by Sylvain Fauconnier, a designer
                                                                                                                                                         from Auchan Production, was selected from                           KEY FIGURE
                                                                                                                                                                                                                                                                              CLOSE-UP
                                                                                                                                                         the 750 signatures designed by teams and

AT AUCHAN, GROWTH IS DRIVEN BOTH BY AND FOR ITS COMPANY MEMBERS. THE COMPANY IS COMMITTED
                                                                                                                                                         company members across the Group’s
                                                                                                                                                         12 countries, representing a perfect balance                €1.62 billion
TO IMPROVING THEIR WORKING CONDITIONS AND INVOLVES THEM IN THE PROCESS OF DEVELOPING                                                                     between the company’s roots, values and                      of company stock is owned
IMPROVEMENTS AND INITIATIVES. WORKING IN PARTNERSHIP WITH EMPLOYEES IS ALSO ABOUT SHARING                                                                forward-looking principles.                                   by shareholder employees
RESULTS WITH SHAREHOLDER EMPLOYEES. THIS SCHEME IS AVAILABLE IN 9 OF THE GROUP’S COUNTRIES.                                                              Exchange of experience, insight into other
                                                                                                                                                         cultures and broadening of professional
                                                                                                                                                         horizons: 80 company members travelled              SHARING SUCCESS
                                                                                                                                                         to meet their peers as part of the Erasmus          Auchan has been operating an employee
                                                                                                                                                         operation. In the summer of 2011, they              shareholder scheme since 1977, through
COMMITMENT TO EMPLOYEE                              commitment, with a focus on 20 different                                                             travelled in small groups to visit stores           Valauchan common investment funds.
WELL-BEING                                          criteria. In response to requests for                                                                and meet teams in different countries.              This shareholding scheme is one of a kind
For 11 years now, internal opinion surveys          improvements, Auchan France developed                                                                An exchange was organised between Atak and          in the mass retail sector. Company members         CREATIVE ATTITUDE
have been conducted at regular intervals            occupational health and safety guidelines                                                            Auchan Russia teams, and the teams in France,       have the opportunity to benefit from the value      Create, act and innovate! Three words
amongst company members in all Auchan               to improve working conditions, covering all                                                                                                              they helped create and to build an investment      to describe the objectives of “Creative
countries. These surveys are anonymous and          occupational hazards inherent in the                                                                                                                     fund. In Spain, for example, average assets        Attitude”, a programme launched in
                                                                                                                                                                                                                                                                October 2011. This initiative aims to boost
allow company members to assess the                 hypermarket sector. This comprehensive                                                                                                                   are around €10,000 and in France around
                                                                                                                                                                                                                                                                professional creativity and encourage
company and its HR and managerial policies          scheme reaches beyond legal requirements,                                                                                                                €27,000. Italian supermarkets began their          the development of new activities within
from the perspective of its employees. Results      focusing on equipment and its impact on                                                                                                                  employee shareholding scheme in 2011:              the Group. In a challenging climate
from the surveys are processed nationally and       employee working methods. Any non-                                                                                                                       77% of eligible employees have subscribed.         created by the financial crisis, this gives
locally to identify potential areas for progress    conformities are identified and corrected                                                                                                                 On 6 July 2011, to mark the 50th anniversary       each employee the chance to express
and to draw up action plans. In 2011, 87.4%         by a prevention plan. A similar project was                                                                                                              of Auchan, all Group members received              their creativity and innovative spirit, and
                                                                                                                                                                                                                                                                to participate in developing selected
of Auchan Italy employees and 68% of Simply         developed for the drive-through service to       for its harmonious working relations” and                                                               a one-off bonus equivalent to two days’ pay.
                                                                                                                                                                                                                                                                projects. Over a thousand Group
Market Italy employees participated in this         prevent the risk of musculoskeletal disorders.   Portugal maintained its SA8000 social                                                                   Company members in countries operating             members submitted a project
survey. In Poland, a new system was introduced      Policies implemented by Auchan China won the     accountability certification in spite of the harsh                                                       the shareholding scheme were invited               to the selection committee.
to gauge not only satisfaction but also             company an award as an “exemplary company        financial climate.                                                                                       to invest all or part of their bonus in the

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THE AUCHAN GROUP OBJECTIVES PURSUE OUR PROFITABLE AND HIGH-QUALITY GROWTH ANTICIPATE CUSTOMER EXPECTATIONS ADAPT TO THE CHANGING ENVIRONMENT IN A ...
EMPLOYEES

               PROMOTE AND INTEGRATE DIVERSITY
EMPLOYEES IN SITUATION OF DISABILITY WITHIN THE WORKFORCE (2011)                      WORKFORCE BREAKDOWN (2011)
Hypermarkets             Number                 Rate            Legal requirement     Hypermarkets                Men                Women
China                      527                  4.0%                   1.6%           Employees                  53,430              92,934
Spain                      415                  3.3%                   2.0%           Managers                   12,453              9,873
France                    3,990                 7.0%                   6.0%           Senior executives           940                 231
Hungary                    29                   0.5%                   5.0%           Total                               169,861
                                                                                                                                                         students in France, running a theory course        of equipment and services: touch pads,             women to management positions. Over
Italy                      406                  4.1%                   7.0%           Supermarkets                Men                Women
                                                                                                                                                         in parallel. The Russia hypermarkets also set      voice-controlled computers and toll-free           46% of management positions and 41%
Poland                     380                  3.4%                   6.0%           Employees                   6,993              18,924
                                                                                                                                                         up a bakery school offering diploma-granting       helplines providing information about              of store manager positions are held
Portugal                    89                  1.0%                   None           Managers                    1,792              1,369
Romania                    59                   1.3%                   4.0%                                                                              programmes in stores that give course              procedures for receiving assistance, which         by women at Auchan China and Auchan
                                                                                      Senior executives            305                 68
Russia                     617                  3.0%               2.0% to 4.0%       Total                                29,451                        participants State-recognised qualifications.       are often unclear.                                 Russia respectively. In Poland, there are more
Taiwan                     122                  1.9%                   None                                                                              Each new trainee is mentored by an                                                                    women than men in the retail sector manager
Ukraine                    195                  5.3%                   4.0%                                                                              experienced senior company member.                                                                    positions.
Luxembourg                  21                  3.0%                   4.0%                                                                              Since 2010, Auchan France has been                                                                    Alcampo, Simply Market France and Spain
Supermarkets             Number                 Rate            Legal requirement                                                                        operating a proactive employment policy                                                               signed their first equal rights charter between
France                    750                   5.0%                      6.0%        PERCENTAGE OF WOMEN MANAGERS IN THE GROUP                          for senior staff members, which includes                                                              management and labour. Such agreements
Spain                     122                   2.1%                      2.0%                                                                           conducting mid-career assessments.                                                                    formalise the company’s commitment
Italy                     369                   3.8%                      7.0%        2011                                                                                                                                                                     to developing a series of measures on equal
Poland                     9                    0.8%                      6.0%                 42.5%                                                                                                                                                           employment opportunity, work-life balance,
                                                                                                                                                         WORKING WITH DISABILITIES                                                                             promotions, training and information.
                                                                                                                                                         All Group companies have a proactive work                                                             These measures aim to prevent direct
                                                                                                                                                         integration policy aimed towards people with                                                          or indirect gender discrimination.
                                                                                                                                                         disabilities, accompanied by awareness-raising                                                        Employees at Auchan France who participated
                                                                                                                                                         programmes for customers and company                                                                  in the gender equality program started
                                                                                                                                                         members. In 2011, the company was once                                                                a dedicated network on the Web to raise
                                                                                                                                                         again recognised for its policies by the public                                                       awareness amongst the company’s men and
                                                                                                                                                         authorities in China, Portugal and Hungary.                                                           women concerning equality in the workplace
THE WEALTH OF THE COMPANY’S HUMAN RESOURCES IS DIRECTLY LINKED TO                                                                                        The ratio of employees with disabilities                                                              and access to positions at all levels. The dozen
THE RICH DIVERSITY OF ITS COMPANY MEMBERS. AUCHAN TAKES PRIDE IN THIS                                                                                    is often higher than legally required, as is the                                                      volunteers running this network started
DIVERSITY IN EACH COUNTRY AND BUSINESS SECTOR AND DRAWS ON IT AS A                                                                                       case in Ukraine (5.2%), where the company          GENDER EQUALITY                                    the site and organised forums to provide
VECTOR OF SUCCESS. THE GROUP LOOKS RESOLUTELY TO THE FUTURE, ENCOUR-                                                                                     has also been recognised for its training          Approximately 2 thirds of company members          insight into the different positions, correspond
AGING THE ARRIVAL OF YOUNG EMPLOYEES SUPPORTED BY THE KNOWLEDGE                                                                                          courses for deaf workers, which offer course       at Auchan are women, demonstrating                 with company executives and encourage
AND EXPERTISE OF THOSE WITH THE MOST EXPERIENCE.                                                                                                         content translated into sign language. In          a proactive commitment to gender equality,         information sharing. Some 400 members
                                                                                                                                                         Hungary, up to 20 deaf or hearing-impaired         with a particular emphasis on promoting            participate in this discussion forum.
                                                                                                                                                         cashiers work at the Dunakeszi store. To gain
                                                                                                                                                         a better understanding of disabilities, almost
                                                                                                                                                                                                                                                         CLOSE-UP
IDENTIFYING AND TRAINING                           In China, Auchan visited 46 universities,                                                             all Auchan France managers
FUTURE COMPANY MEMBERS                             resulting in the implementation of training                                                           (6,000 individuals) took a training module                                                 SIGNS FOR ALL
The company uses social media and                  agreements with vocational training                    the Auchan Italy website. Working              entitled “Disabilities: misconceptions”.
                                                                                                                                                                                                                                                    Many hearing-impaired employees work in our stores,
partnerships with schools and universities         institutions.                                          in partnership with schools, Auchan France                                                                                                often in cashier positions. Customers were notified
to promote its image as a career of choice         In 2011, an employment partnership                     launched its “Manager for a Day” programme                      KEY FIGURE                                                                whenever their cashier had a hearing impairment.
for young people, offering internships             agreement was signed between Alcampo                   in 2009 to promote the position of retail                                                                                                 However, the problems encountered by hearing-
sandwich courses for students and sending
company members out to schools and
                                                   and Alcalá university in Henares. As part
                                                   of this agreement, Auchan hired 20 young
                                                                                                          department manager amongst students.
                                                                                                          Around 300 students have now participated                       8,100                                                                     impaired employees when communicating with other
                                                                                                                                                                                                                                                    company members had not been accounted for.
universities to involve students in training       students for practical training in the retail          in the programme, spending a day working                positions are held by people                                                       Having learnt sign language in order to communicate
programmes. It also recruits interns and           department manager position. After                     as a manager and discovering the different                     with disabilities                                                           with his cousin, one of the managers in the Wola store,
young graduates. In 2009, RT Mart launched         a six-month period working in the store and            aspects of this profession in a real-life                                                                                                  in Warsaw, recruited the store’s first deaf and
                                                                                                                                                                                                                                                     hearing-impaired employees and then taught sign
its “Seeds” programme to identify future           300 hours of training, they were awarded               situation. Auchan and Atak Russia developed    Simply Market France celebrated the
                                                                                                                                                                                                              language basics to the store teams. His approach sparked significant interest and,
employees with high potential. This                a university-level diploma. A total                    a programme together with the Russia           10th anniversary of its disability scheme            on the initiative of the Modli ska store, resulted in courses being run by an external
programme specifically seeks to recruit             of 64,000 applicants uploaded their CV                 university of business and economy to          in 2011. This scheme offers specific support          organisation with professional sign-language teachers.
students from the top universities in Taiwan.      to the “Lavora con noi”(1) page on                     organise courses and internships for Russian   for company members in the form

                                                   (1) Working with us.

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THE AUCHAN GROUP OBJECTIVES PURSUE OUR PROFITABLE AND HIGH-QUALITY GROWTH ANTICIPATE CUSTOMER EXPECTATIONS ADAPT TO THE CHANGING ENVIRONMENT IN A ...
PARTNERS

                                                                                                               PROGRESS: A
                                                                                                            COMPREHENSIVE IDEA
                                                                                                              PROGRESS IS DRIVEN BY A COLLECTIVE EFFORT AND ITS IMPETUS
                                                                                                              RE ACHE S OUT TO ALL STAKEHOLDERS. FOR THAT RE A SON,
                                                                                                              AUCHAN AIMS TO MAINTAIN EXCELLENT, WELL-BALANCED AND
                                                                                                              SUSTAINABLE BUSINESS RELATIONS WITH ITS PARTNERS, IN
                                                                                                              PARTICULAR SMES, FARMERS AND SHOPPING CENTRE TENANTS.
                                                                                                              THE COMPANY WORKS CLOSELY WITH ITS STAKEHOLDERS IN ITS
                                                                                                              QUEST FOR PROGRESS IN TERMS OF SOCIAL, CORPORATE AND
                                                                                                              ENVIRONMENTAL RESPONSIBILITY.

                                                                                                              OUR 3 GUIDING PRINCIPLES

                                                                                                              • Each partnership forms part of a framework based on compliance with
                                                                                                              major legal principles, with particularly stringent methods of monitoring
                                                                                                              and supporting Auchan house-brand products.

                                                                                                              • In 2011, the entire Group adhered to the 10 key principles of the Global
                                                                                                              Compact, resulting in the yearly announcement of progress targets
                                                                                                              and the achievement of these targets.

                                                                                                              • Stores are rooted in their local community, with sustainable partnerships
                                                                                                              in place with local producers reducing middlemen and transport
                                                                                                              and subsequently the store’s carbon footprint. Auchan also encourages
                                                                                                              producers to implement sustainable production methods.

                                                                                                              OUR 3 IDEAS FOR THE FUTURE

                                                                                                              • Socially assess 100% of non-food suppliers for Auchan brand name
                                                                                                              products.
                                                                                                              • Increase the quantity of local products carried.
                                                                                                              • Extend green leases with partner shops in shopping centres
                                                                                                              in all European countries with Immochan centres.

3 FIGURES FOR 2011
                     1
                     GROUP PARTICIPATION
                                                       170
                                                 SOCIAL AUDITS CONDUCTED
                                                                                          1,200
                                                                               INTERNAL VISITS CONDUCTED
                     IN THE GLOBAL COMPACT   EXTERNALLY USING THE ICS METHOD     BY SOURCING OFFICES OVER
                                                                                         THE PAST 3 YEARS
THE AUCHAN GROUP OBJECTIVES PURSUE OUR PROFITABLE AND HIGH-QUALITY GROWTH ANTICIPATE CUSTOMER EXPECTATIONS ADAPT TO THE CHANGING ENVIRONMENT IN A ...
PARTNERS

                                      JOINT RESPONSIBILITY
          BUYERS AWARE OF WORKING CONDITIONS IN PRODUCTION FACILITIES (2011)
          China                         100%                                  Covered in the training manual
          Spain                         100%                                Code of ethics known by all buyers
          France                          ND                     Awareness-raising modules during training for new buyers
          Hungary                        0%
          Italy                         100%
                                                                                                                                                     KEEP A CLOSE EYE ON THE                             and environmental criteria (waste processing,               relations in Italy while Auchan France runs
          Poland                         0%                                           Planned for 2012
          Portugal                       88%
                                                                                                                                                     WORKING CONDITIONS                                  wastewater treatment, CO2 emissions, etc.)                  workshops for SMEs in conjunction with
          Romania                        0%                                         Target: 20% in 2012                                              IN PRODUCTION FACILITIES                            was also subject to an internal procedure                   the FEEF (federation of businesses and
          Russia                          ND                                    Covered in the code of ethics                                        Since 1997, Auchan has adopted a code               with 1,200 quality inspections conducted over               entrepreneurs in France). Sharing experiences,
          Taiwan                        100%                                                                                                         of business conduct which is set out in its         the past three years.                                       good practices and providing customized tools
          Ukraine                       100%                                                                                                         sales agreements. All suppliers undertake                                                                       foster joint progress in areas such as quality,
                                                                                                                                                     to comply with the 10 main criteria in this                                                                     safety, logistics and development.
                                                                                                                                                     code of conduct: prohibition of child labour                                                                    Auchan prevents the creation of dependencies
SOCIAL AUDITS CONDUCTED EXTERNALLY               INTERNAL INSPECTIONS CONDUCTED                   NON-FOOD SUPPLIERS, CHILDREN’S                     and forced labour, safe and healthy work                                                                        between its suppliers and purchasing groups,
USING THE ICS METHOD                             BY SOURCING OFFICES SINCE 2008                   PRODUCTS, AUDITED FOR RETAILER BRAND               environment, etc.                                                                                               supporting the growth of SMEs by gradually
                                                                                                  NAME PRODUCTS
                                                                                 +600 visits                                                         In 2011, the ban on sandblasting was added                                                                      introducing their products in one and then
2009                 91                          2010                 640
                                                                                                                                                     to product listing agreements for suppliers                                                                     several stores, first at a national level and then
2010                   105                       2011                               1,240         2011
                                      +62%                                                                                                           of house-brand jeans. The Group also strives                                                                    internationally. In 2011, Auchan Italy organised
                                                                                                                  67%
2011                            170                                                                                                                  to develop clear collective and international                                                                   and funded a trade fair in Milan to encourage
                                                                                                                                                     messages concerning working conditions,                                                                         the export of 600 regional products to stores
                                                                                                                                                     aimed at suppliers and public authorities,                                                                      in other Group countries.
                                                                                                                                                     particularly through its participation in                                                                       At Auchan France, 11 regional trade fairs
                                                                                                                                                     GSCP(1). For all import purchases, Auchan asks                                                                  were held so that the attending retail
                                                                                                                                                     each new supplier to self-assess its company.                                                                   department managers and retail sector
                                                                                                                                                     This is followed up by internal inspections                                                                     managers could select local produce
                                                                                                                                                     conducted by the quality teams and audits                                                                       for their stores and place their orders directly.
AUCHAN PERIODICALLY AUDITS THE WORKING CONDITIONS AT MANUFACTURING                                                                                   conducted by external companies. In 2011,           WEAVING SUSTAINABLE LINKS                                   75% of Auchan brand name products are
SITES PRODUCING HOUSE-BRAND PRODUCTS AND DEVELOPS BALANCED AND                                                                                       600 production sites were inspected and             WITH PARTNER SMEs                                           produced by SMEs. Auchan also sells certified
FAIR PARTNERSHIPS WITH SMES AND SMALL-SCALE PRODUCERS TO FOSTER                                                                                      170 company audits were carried out                 Auchan aspires to maintaining balanced and                  fair trade products (Max Havelaar, Oxfam).
THEIR DEVELOPMENT.                                                                                                                                   by independent consultancies using ICS(2)           sustainable business relations with its partner             Sixteen of its fair trade products are available
                                                                                                                                                     guidelines, shared by 15 retail brands.             SMEs. A Web portal is used to nurture such                  under the Auchan brand name.

                                                                                                                                                                                     KEY FIGURE                                                            CLOSE-UP
A FRAMEWORK OF STANDARDS                         GROUP PARTICIPATION
ABOVE AND BEYOND                                 IN THE GLOBAL COMPACT                                                                                                                                                                              PALM OIL
Auchan abides by the 1948 Universal              The Group demonstrated its desire to operate                                                                                         75%                                                           The overexploitation of palm trees to produce palm oil,
Declaration of Human Rights, the ILO 1998        as a responsible company by joining the Global                                                                 of Auchan brand name products                                                       a common ingredient in consumer food products, is often
Declaration on Fundamental Principles and        Compact, which aligns with its principles. The    will move forward in a working environment                        are produced by SMEs                                                           a major cause of old-growth forests destruction. Palm trees
Rights at Work and OECD guidelines, which        Global Compact was launched in 1999 by the        based on targets suitable for their national                                                                                                     forests are mainly found in Indonesia and Malaysia and are
are recognised by all 42 member governments.     UN Secretary General, encouraging companies       and local context.                                                                                                                               the natural habitat of endangered animal and plant species,
These texts form a corpus of civil, political,   to work towards compliance with the               Indicators have been established to monitor       In 2009, Auchan continued its collaborative                                                    contributing to the living environment of local populations.
                                                                                                                                                                                                                                                    In addition to these environmental considerations, food with
economical, social and cultural rights which     10 principles related to human rights and         actions and results, and the company              work with the ICTI Care Process(3) in the area
                                                                                                                                                                                                                                                    high palm oil content can increase the risk of developing
Auchan applies to its partnerships.              standards for working conditions, the             undertakes to announcing new developments         of toy products.                                                                               cardiovascular diseases.
                                                 environment and the fight against corruption,      once a year. In parallel to the Group’s           This programme involved 2,400 suppliers
                                                                                                                                                                                                           Since 2010, Auchan has been committed to eliminating this ingredient from its house-brand
                                                 and to promote the adoption of these              adhesion, each business and country can also      (approximately 1.4 million employees)                 products whenever it is possible to do so without jeopardising product quality. Some
                                                 principles by their stakeholders.                 join its local Global Compact network, as it is   in a certification process which was granted           239 recipes have been revised and over 2,400 tonnes of palm oil eliminated, focusing
                                                 Auchan is aware of its responsibility             already the case for Alcampo (2002), Auchan       to half of the suppliers and is monitored yearly.     on the Baby and Rik & Rok ranges in priority. When this ingredient cannot be substituted
                                                 as a committed group and aspires to adhering      France (2004), Auchan Poland (2011), Simply       Auchan obtained the certification of around            due to its binding properties, certified RSPO* oil is used.
                                                 to this proactive strategy for long-term          Market France (2011) and Simply Market Spain      100 production sites in addition to the social        * Round table on Sustainable Palm Oil.
                                                 progress, wherein each business and country       (2012).                                           audits conducted. Compliance with company

                                                                                                                                                     (1) Global Social Compliance Programme.
                                                                                                                                                     (2) Social Clause Initiative.
                                                                                                                                                     (3) International Council of Toy Industries.
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THE AUCHAN GROUP OBJECTIVES PURSUE OUR PROFITABLE AND HIGH-QUALITY GROWTH ANTICIPATE CUSTOMER EXPECTATIONS ADAPT TO THE CHANGING ENVIRONMENT IN A ...
PARTNERS

                      PROSPECTS FOR PARTNERSHIPS
         THE COMPANY STRIVES TO DEVELOP SUSTAINABLE PARTNERSHIPS WITH MINIMAL ENVIRONMENTAL IMPACT.
        THE GROUP’S “LOCAL PRODUCTS” POLICY, ITS COOPERATION WITH THE SUPPLY CHAIN AND THE DEVELOPMENT
          OF A GREEN LEASE FOR COMMERCIAL REAL ESTATE STOCK ALL CONTRIBUTE TO ACHIEVING THIS TARGET.

                                                                                                                                                  1996. The 11,000 cattle sold each year are          Zenia, in Spain and Mestre, in Italy. In 2011,
                                                                                                                                                  raised in farms that respect animal welfare,        106 of the 187 Immochan shopping centres
                                                                                                                                                  reclaim wood and invest in photovoltaic             have implemented waste sorting systems
                                                                                                                                                  energy.                                             for its partner stores. Specific training
                                                                                                                                                  In Taiwan, sustainable pig farms ensure             programmes are rolled out to stores
                                                                                                                                                  “Happy Pig” label certification. As a member         and service providers in the Nantes
                                                                                                                                                  of the REAP(1) forum, the Group seeks to define      Saint-Sébastien shopping centre which,
                                                                                                                                                  and disseminate its commitments to progress,        following the example of the Portuguese
                                                                                                                                                  and endeavours to share good practices with         shopping centre Alegro Alfragide in 2010,
                                                                                                                                                  professional networks in the sustainable retail     has achieved a recycling rate above 60%,
                                                                                                                                                  sector. In 2011, the Group produced a formal        compared with its previous rate of 20%.
                                                                                                                                                  definition of its forest policy. It was supported
                                                                                                                                                  by the expertise of TFT(2), an NGO with
                                                                                                                                                  the mission of tracking wood supplies                                                                    CLOSE-UP
                                                                                                                                                  and supporting local communities in obtaining
                                                                                                                                                  FSC certification for their products. In 2012,                                                                   A LOCAL PRODUCT
                                                                                                                                                  Auchan decided to prioritise its project                                                                        RANGE
                                                                                                                                                  to analyse its in-house paper consumption
                                                                                                                                                                                                                                                              Each country carries a range of local
                                                                                                                                                  and sales of paper and wood products (reams
                                                                                                                                                                                                                                                              products grown and/or produced near
                                                                                                                                                  of paper, toilet paper, paper towels, furniture),                                                           stores, forging direct partnerships
MINIMIZE THE IMPACT                             4% for Alinéa, reducing CO2 emissions            PROMOTING SUSTAINABLE                            and to carry new green-label products.                                                                      with small-scale producers. In Russia,
OF GOODS TRANSPORT                              by 1,903 tonnes. When transporting major         PRODUCTION METHODS                                                                                                                                           each store carries products from
To reduce its carriers’ greenhouse gas          import goods via shipping containers between     As a responsible partner of the agriculture                                                                                                                  50 to 150 local suppliers. Turnover
emissions, Auchan conducts a policy of          the ports of arrival and their warehouses,       and fishing industry, Auchan France prioritises   IMPROVING SHOPPING CENTRES’                                                                                 from these products can represent up
                                                                                                                                                                                                                                                               to 25% of the segment. Auchan France
streamlining goods transport and warehouse      Auchan France mainly uses alternative            and fosters partnerships with responsible        ENERGY PERFORMANCE                                                                                          carries 4,000 local products, sourced
management, prioritising locally sourced        transport methods: 7,745 TEU containers          farms and fisheries. Auchan has carried Label     Partner stores in shopping centres consume             from about 1,000 different suppliers. Since 2010, these products have been identified with
products and ecologically designed house-       were transported in this way in 2011             Rouge-certified Aveyron and Ségala veal since     20% to 30% of the overall energy consumption.          promotional banners and shelf tags. Pages are dedicated to the subject in our sales
brand products. The company develops            (80% by river and 20% by rail), generating                                                        Immochan included an environmental clause              brochures, explaining the eco-friendly and qualitative benefits of these products.
innovative transport solutions using dual       overall savings of 4,645 trucks, 1,127,360 km,                                                    in its business leases to associate partner            The short distance between the production site and the sales site minimises the products’
or tri-temperature trucks with double runners   338,200 litres of diesel and 2 thirds less                                                        stores in an effort to improve overall energy          carbon footprint. The local product range responds to increasing demand from locavore
(an ingenious mechanism with two decks          greenhouse gas emissions.                                                                         efficiency. Factors such as energy, water              consumers who want to buy local specialities and contribute to local development. Alcampo
of pallets that allows optimal use of space     Auchan also maintains excellent relations                                                         and waste management, carbon footprint                 now carries a new range called “Yo crio, yo produzco, yo fabrico*”, which uses an integrated
                                                                                                                                                                                                         production process, from the raw material through to the finished product. Such a system
when loading goods). The transport methods      with its transport partners. In France,                                                           reduction and environmental quality
                                                                                                                                                                                                         contributes to the independence and development of small-scale producers in remote
used in Hungary, Portugal, Spain and France     the transport charter introduced by Auchan                                                        improvement in store fittings are now                   areas. With its “de la Tierra” fruit and vegetable range, Spanish supermarkets carry
take preliminary routes to rail or river        10 years ago concerns working conditions                                                          addressed when negotiating contracts.                  produce grown in the Zaragoza and Logroño areas, delivered daily to stores and sold
terminals.                                      for truck drivers and the nature of relations                                                     This environmental clause has been in force            on the same day. The “Sabores de Portugal” brand name guarantees the geographical
The majority of the journey is made by these    between the different parties. The charter                                                        in France since 2010 and has been                      source of this range of Lusitanian products and uses only traditional local recipes.
methods (80% to 90%). The goods are then        was renewed in 2011, with the addition                                                            implemented in Ukraine for its CityPark                In China and Taiwan, direct sourcing is encouraged by governments and is also being
transported to the final delivery terminal       of two new topics: security procedure for                                                         expansion project. It has been recommended             developed for non-food cottage-industry products.
by road. In 2011, for example, the percentage   receipt of goods and the integration of new                                                       to partner companies for three future                  * Literally: I raise, I produce, I manufacture.
of journeys made by rail increased by           communication methods.                                                                            Immochan projects: Setúbal, in Portugal,

                                                                                                                                                  (1) Retailers’ Environmental Action Programme.
                                                                                                                                                  (2) The Forest Trust.

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CUSTOMERS

                                                                                                              A NEW TAKE ON THE
                                                                                                              BUYING POWER IDEA
                                                                                                               PURCHASING POWER: “THE QUANTITY OF GOODS AND SERVICES
                                                                                                               THAT CAN BE PURCHA SED WITH ONE WAGE UNIT ”. AUCHAN
                                                                                                               ENDEAVOURS TO BREAK DOWN THE BARRIERS OF PURCHASING
                                                                                                               POWER THROUGH ITS “RESPONSIBLE DISCOUNT“ CONCEPT. IT AIMS
                                                                                                               TO OFFER A RANGE OF ENVIRONMENTALLY-FRIENDLY AND HEALTHY
                                                                                                               PRODUCTS ACCESSIBLE TO ALL BUDGETS.

                                                                                                               OUR 3 GUIDING PRINCIPLES

                                                                                                               • Auchan’s consumer offer consists of responsible products that contribute
                                                                                                               to sustainable development, minimising the use of natural resources and
                                                                                                               greenhouse gas emissions and promoting human health and social progress.

                                                                                                               • The store promotes the adoption of a healthy and balanced diet,
                                                                                                               developing an accessible range in response to individual consumer needs.

                                                                                                               • The “responsible discount store” concept is conveyed throughout
                                                                                                               the store’s communications: tangible examples to promote healthier eating
                                                                                                               and respect for the environment.

                                                                                                               OUR 3 IDEAS FOR THE FUTURE

                                                                                                               • Allow customers to better identify the selection of responsible products
                                                                                                               in our stores.
                                                                                                               • Continue to reduce packaging on house-brand products and to improve
                                                                                                               their eco-friendly design.
                                                                                                               • Provide young people with information on healthy eating habits.

3 FIGURES FOR 2011
                     11,630            TONNES
                     OF PACKAGING ELIMINATED
                                                        320
                                                     HYPERMARKETS WITH
                                                                             A TOTAL OF      1,195
                                                                            ORGANIC PRODUCTS CARRIED UNDER
                     SINCE 2004 FOR HOUSE-BRAND   A SELF-DISCOUNT SECTION       RETAILER BRAND NAMES IN ALL
                     PRODUCTS                          IN 10 COUNTRIES                           COUNTRIES
CUSTOMERS

                             THE BEST FOR ONE AND ALL
                NUMBER OF PRODUCTS CARRIED TOTAL NUMBER OF PRODUCTS CARRIED                      TONNES OF PACKAGING ELIMINATED ON AUCHAN
                 BRANDED ORGANIC PRODUCE NATIONAL BRANDED ORGANIC PRODUCE                        BRAND PRODUCTS SINCE 2004
                      RETAILER (2011)              AND RETAILER (2011)
Hypermarkets                                                                                     2007                    3,915
China                          ND                                   2,477                        2008                              7,692
Spain                           91                                   957
                                                                                                 2009                                  9,283
France                         311                                  1,661
Hungary                         0                                    382                         2010                                    9,966      +16.6%
Italy                          150                                   794                         2011                                        11,630
Poland                         17                                    250
Portugal                         4                                   624
Romania                        58                                    58                          HYPERMARKETS WITH A SELF-DISCOUNT
Russia                         205                                   205                         DEPARTMENT
Taiwan                         124                                   722
                                                                                                 2009                                  275                                                                      electronic devices, light bulbs and cooking oil.
Ukraine                         1                                     1                                                                                                       KEY FIGURE                                                                                            CLOSE-UP
Luxembourg                     ND                                   1,650                        2010                                    307                                                                    In 2011, 11 events were organised in shopping
                                                                                                                                                     +4.2%
                                                                                                 2011                                      320*
                                                                                                                                                                                   7
Supermarkets                                                                                                                                                                                                    centres across Europe to raise consumer
France                         166                                   564                                * 51.9% of hypermarkets.                                                                                awareness about the virtues of recycling
Spain                           6                                    80                                                                                       sustainable development events organised          and re-using disposable products.
Italy                          52                                    541                                                                                                in 6 countries in 2011                  The stores worked together with certified
Poland                          10                                   69                                                                                                                                         recycling centres, and with organisations
                                                                                                                                                             In Poland, Immochan offers to fill out tax          collecting unwanted second-hand clothes
                                                                                                                                                             returns for its clients. Over 17,000 people        and objects (see page 38). To mark
                                                                                                                                                             have benefited from this free service.              its 50th anniversary, Auchan France also             BULK
                                                                                                                                                                                                                conducted 11 collection events in
                                                                                                                                                                                                                                                                     Fighting waste landfill, reducing
                                                                                                                                                                                                                its 127 stores throughout the year.                  packaging to its most simple form and
                                                                                                                                                             SECOND LIFE                                                                                             allowing customers to only pay for what
                                                                                                                                                             What should customers do with batteries,                                                                they want to consume at the lowest
AUCHAN PROMOTES RESPONSIBLE CONSUMERISM BY DEVELOPING NEW PRODUCT                                                                                            light bulbs, plastic bags, household appliances    PACKAGING:                                           possible price: such are the virtues
RANGES AND LESS EXPENSIVE FORMATS. TO HELP REDUCE ITS PRODUCTS’                                                                                              and recyclable packaging? To avoid throwing        THE BARE MINIMUM                                     of the 320 self-discount sections available
                                                                                                                                                                                                                                                                     in hypermarkets since the end of 2011.
ECOLOGICAL FOOTPRINT, IT IS PARTICULARLY FOCUSED ON ELIMINATING                                                                                              out such items and components                      Reduced packaging means reduced
                                                                                                                                                             indiscriminately alongside other waste,            consumption of raw materials such as paper,          The range mainly concerns food products
SUPERFLUOUS PACKAGING AND ENCOURAGING CUSTOMERS TO RECYCLE OR
                                                                                                                                                             Auchan and Immochan have installed                 cardboard, glass, aluminium and plastic.             in Western Europe, but is also being
RE-USE THEIR ITEMS.                                                                                                                                                                                                                                                  developed for non-food consumer
                                                                                                                                                             “environment” containers and facilities            It also alleviates consumer waste bins and           products in countries such as Romania
                                                                                                                                                                                                                subsequently the task of waste processing            and Russia. These departments include
                                                                                                                                                                                                                centres. It optimises the loading of carriers’       flour, oil, fruit juice, washing powder
                                                                                                                                                                                                                trucks, thereby reducing greenhouse gas              and even DIY screws. The product range
                                                                                                                                                                                                                emissions.                                           is very broad indeed!
PRODUCTS AND SERVICES                             message is publicised to the broadest                                                                                                                         Since 2004, 11,630 tonnes of packaging               Combining economy and ecology, Auchan
FOR BETTER LIVING                                 possible audience for maximum impact.                                                                                                                         were eliminated from house-brand food                France was the first mass retail brand
To better meet the needs and expectations         7 promotional events were organised in                                                                                                                        and non-food products. It is becoming                to sell organic products in bulk (pulses,
                                                                                                                                                                                                                                                                     pasta, confectionery, coffee, etc.) and
of inhabitants, Auchan aims to expand its         6 countries in 2011. Highlights of the year,                                                                                                                  increasingly challenging to make further
                                                                                                                                                                                                                                                                     has done so in 50 of its stores.
sustainable production range. Its discount        these events provided an opportunity                                                                                                                          progress in this area and the focus has now
pricing policy means that organic products        to offer a wider range of eco-friendly                                                                                                                        turned to the eco-design of such packaging.
are accessible to all budgets. These dedicated    products at more affordable prices,                                                                                                                           At the end of 2010, the Auchan Group
departments are being introduced in all stores.   thereby encouraging consumers to try                                                                                                                          enhanced its national packaging reduction          proactive example is the eco-design
In 2011, the range of 50 organic products for     them out. To celebrate Environmental                   financial resources. But not at any cost!                                                               programmes in 5 European countries, creating       of low-consumption light bulbs, which
under €1 was maintained by Auchan France,         Protection Day, Auchan Hungary hosted                  Banque Accord has proved to be particularly         for their collection. The recycling installation   an international group for exchanging good         was awarded with a Packaging Oscar.
in spite of the rising costs of raw materials.    a trade fair for eco-friendly products,                active in fighting for positive credit histories     in Romania heightens consumer awareness.           practices and developing joint initiatives.        The new packaging was developed and
Luxembourg has one of the largest                 explaining their benefits and identifying               in spite of the reluctance of many banks            In Spain, the installation of the first             Some 20 tonnes of cardboard and 20 tonnes          patented by Auchan. It is fully recyclable
departments of this kind, carrying some           their positions on supermarket shelves.                to do so. In other words – prevent excessive        “Ecoparque” at the Colmenar shopping centre        of CO2 were saved simply by eliminating            itself and is designed to use a minimum
1,500 organic products. The environmental         A healthy lifestyle is also about having               debt by sharing client files.                        in Madrid has allowed the collection of waste,     cardboard toothpaste packaging. Another            of 80% recycled materials.

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CUSTOMERS

                                                  FEEDING VITALITY
                                           NUMBER OF HOUSE-BRAND PRODUCTS STILL CARRIED WITH
                                           REVISED INGREDIENTS SINCE THE START OF THE SCHEME
                                                                                                                                                        DIVERSE, ADAPTED                                  by the “Donne-moi tes yeux” organisation.         and understanding of the indicators used.
                                           2010                           383                                                                           AND ACCESSIBLE PRODUCTS                           The effectiveness of touch reading is             Another original initiative in Portugal took
                                                                                             +30%
                                           2011                                   500                                                                   The Group uses the services of nutritionist       monitored regularly by means of in-store          the form of awareness-raising programmes
                                                                                                                                                        consultants to raise health and diet awareness    inspections conducted by blind people.            about healthy eating, divided into product
                                                                                                                                                        amongst product and packaging engineers.                                                            types and age groups to cover the full
                                                                                                                                                        By 31 December 2011, 500 recipes for                                                                spectrum targeted.
                                           NUMBER OF AUCHAN HOUSE-BRAND PRODUCTS WITH
                                           BRAILLE LABELS
                                                                                                                                                        house-brand products had been revised since       AWARENESS-RAISING
                                                                                                                                                        the scheme began. A total of 16 tonnes of salt,   Since 2006, healthy eating programmes have
                                           2010                                 2,638       +7.8%                                                       grease and sugar were eliminated in an            been formalised in 5 countries in tandem with
                                           2011                                   2,844                                                                 attempt to fight obesity, diabetes, cholesterol    the growing importance of dietary concerns.
                                                                                                                                                        and high blood pressure. Special dietary          These programmes aim to develop healthy
                                                                                                                                                        demands also apply to the fresh food sector:      living habits from childhood, highlighting
                                                                                                                                                        the salt content in bread, for example,           the benefits of following a balanced diet
                                                                                                                                                        has been reduced by 18% since 2008 in             and taking regular exercise. The messages
                                                                                                                                                        France. Particular attention has been focused     are communicated internally to employees and
                                                                                                                                                        on the Rik & Rok range for kids, especially       to our customers through a variety of media.
                                                                                                                                                        on the snack range available in France, Spain     Brochures, digital devices and smartphone
                                                                                                                                                        and Portugal. Since 2010, all Auchan France       apps are available, with well-balanced recipe
                                                                                                                                                        stores have a display island featuring 8 fruits   ideas featuring seasonal produce; in-store
                                                                                                                                                        and vegetables priced under €1 all year long.     events are hosted by culinary specialists
                                                                                                                                                        The range will be extended to 14 products         demonstrating simple recipes and offering
                                                                                                                                                        in 2012. The meat department sells portions       tastings. Hungarian customers, for example,       In Italy, Auchan and Simply Market
                                                                                                                                                        of meat for under a euro per person.              have been able to watch demonstrations on         set up a partnership with Barilla which
                                                                                                                                                        Organic and frozen products are also available    preparing seafood, which is rarely served up in   will be tested in 2012. Aimed towards
AUCHAN IS COMMITTED TO PROMOTING HEALTHY AND RESPONSIBLE EATING. ITS                                                                                    at the same price.                                the vast majority of households. In some stores   families with children of pre-school
STORES DEVELOP A RANGE OF NUTRITIOUS FOODS SUITABLE FOR A HEALTHY,                                                                                      House-brand product ranges have been              and shopping centres in France and Portugal,      and primary school age in the northeast
BALANCED DIET. BY PROMOTING AND RAISING AWARENESS ABOUT HEALTHY                                                                                         designed in response to specific dietary           the services of medical staff are called upon     of the country, the project aims
EATING HABITS, AUCHAN ENCOURAGES CUSTOMERS TO ADOPT A GOOD DIET FOR                                                                                     requirements. With low-fat, salt-free,            to carry out glycaemia and cholesterol checks,    to provide them with information about
A HEALTHIER LIFE.                                                                                                                                       gluten-free, sucrose-free and lactose-free        BMI calculations and health treatments for        the food pyramid and to apply their
                                                                                                                                                        ranges, alternatives are offered with similar     customers. Simply Market and Auchan France        knowledge in a practical shopping situation.
                                                                                                                                                        flavours to the products that they are             answered positively to an experiment initiated    Lastly, for the European Sustainable
                                                                                                                                                        replacing.                                        by the Ministry of the Environment aiming         Energy Week, Alcampo distributed 2 million
                                                                                                                                                                                                          to expand environmental labelling on retailer     bookmarks to its customers with 5 different
IMPROVED                                              range. Some subjects are passed on to                                                                              INDICATOR                        branded products. Over 10,000 customers           models available, offering day-to-day
FOOD SAFETY                                           independent scientific networks for further                                                                                                          voiced their opinion about the representation     advice on saving energy.
Faced with legitimate requirements for food
and environmental safety, Auchan brings
                                                      in-depth study.
                                                      Allergy, cardiology and toxicology specialists                                                                    2,844                                                                       CLOSE-UP
together a network of internal experts from           are consulted to gain a better understanding                                                               products labelled in Braille
its different countries on a yearly basis to          of the scientific debates and to better answer                                                                                                                                        BALANCE 2.0
discuss the challenges and risks experienced          customer queries. Working groups are                                                                                                                                                 Simply Spain continues to promote healthy eating and in
in all of its production and retail sites’ regions.   then formed to focus on very specific subjects                                                     Auchan contributes to independent living                                           2011 launched its site www.simplysano.es in partnership
At the start of 2012, 70 subjects were studied        such as supplier assessments (a process                                                           for blind and vision-impaired people. It is                                        with San Jorge University in Zaragoza. Via this platform,
to gauge their impact on consumer life,               standardised for all Auchan countries),                                                           the only European mass retail store to label                                       which was developed jointly with students and professors
including azo dyes, parabens and post-                while Portugal, Spain, Italy and France          In 2011, Auchan also endeavoured to reduce       its house-brand products in Braille. In 2011,                                      specialised in health, the customers can ask questions
                                                                                                                                                                                                                                           to a nutritionist, post healthy recipes for all Web users,
Fukushima radioactivity.                              agreed to clamp down on pesticide use            the proportion of GMOs in animal feed.           2,844 products with Braille labels were carried
                                                                                                                                                                                                                                           or even take a virtual tour of the health food section
Auchan has developed product ranges based             by implementing more stringent inspections       A tracking system is being implemented           in France, Spain, Portugal and Romania,                                            in a store to browse through the range of organic and health
on these studies, such as children’s ranges           and identifying target product categories        to track the full supply chain from the animal   facilitating product identification for people                                      food products.
free of azo dyes and a paraben-free cosmetics         for monitoring in Europe.                        feed through to the end product on the shelf.    with sight problems. This scheme is supported

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