CMA CGM _ CSR 2017

CARING FOR THE FUTURE TODAY EXTRACTS FROM 2017 CORPORATE SOCIAL RESPONSIBILITY REPORT _

ETHICS, SOCIAL AND SOCIETAL INITIATIVES, ENVIRONMENTAL PERFORMANCE

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CONTENTS 33 EXCELLENCE IN SAFETY & SECURITY 34 Maritime safety 5 Word from Executive Officer 37 Occupational health and safety 38 Cargo safety 6 2017 Highlights 40 International security

8 Our 2018 Goals 41 THE ENVIRONMENT PROTECTION 9 CSR within the Group 42 Environmental innovations and technologies 47 Energy, emissions 11 EXEMPLARITY IN THE FIELDS and air pollutants OF ETHICS AND COMPLIANCE 50 Oceans: waste, pollution, containers’ waste and biodiversity 15 ADDED VALUE CONTRIBUTION TO 54 Other environmental issues ALL THE VALUE CHAIN 55 Environmental initiatives 17 Responsible procurement and awards 18 Innovation & digital transformation 19 Customer satisfaction 58 THE GROUP’S SOCIETAL ENGAGEMENT ON GLOBAL 21 OUR EMPLOYEES’ AND LOCAL SCALES COMMITMENT 59 The CMA CGM Corporate Foundation 22 Workforce 64 Emergency relief – natural disasters 23 Diversity 65 Actions within local communities 25 Life quality at work 26 An attractive employer 67 Table of indicators 32 Awards and certifications 69 Glossary

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The CMA CGM Group, a global leader in shipping, was built on strong human, entrepreneurial and family values: initiative, boldness, integrity and imagination. Those values were present since the Group’s foundation 40 years ago, and they have contributed to its global success.

THE CMA CGM GROUP – A GLOBAL LEADER IN SHIPPING We are recognized not only for our leadership, our expertise and our business performance, The world’s third-largest container shipping company, the CMA CGM Group is based in but also for our environmental performance, our social and societal initiatives, as well as our . It employs over 30,000 people worldwide, of whom almost 4,500 in . ethics. Headed today by Rodolphe Saadé, the CMA CGM Group has become a leading player in international shipping, a dominant means of transport handling over 90% of global trade. Our customers, our suppliers and our partners expect us to be exemplary in every way. CMA CGM is present around the world with a network of over 755 offices in more than This is fundamental for our Group’s image, its success and its durability. 160 countries. With its fleet of 504 ships, the Group serves over 420 of the world’s 521 commercial ports. In 2017, the Group carried 18.95 million TEUs (twenty-foot equivalent From a sustainable development perspective, it is essential for us to take into account the units). challenges faced by society and the expectations of our stakeholders.

For this reason, the Group pursued an ambitious Corporate Social Responsibility Policy in 2017, based on six pillars: Key figures • An exemplary approach to ethics and compliance • Increased added value across the value chain Revenue 21 billion US dollars* • Employees’ commitment Volumes transported in TEU 18.95 million* • Excellence in safety and security Vessel fleet 504** • Environmental protection including company-owned 136** • Group’s social engagement at global and local levels Fleet capacity in TEU 2 530 000** Offices worldwide 755 Our commitment was recognized by the sustainability rating agency EcoVadis, which awarded the Group Gold recognition for the third consecutive year. We now rank among the Ports of call 420 in 160 countries top 1% of most responsible service providers in the world. Shipping services over 200

Employees worlwide over 30 000 Our Group is proud of the actions put in place. We remain aware of the challenges ahead including in France 4 500 and our duties towards our customers, partners and suppliers.

* In 2017 ** At 31 December 2017

TANYA SAADÉ ZEENNY EXECUTIVE OFFICER

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2017 HIGHLIGHTS •The CMA CGM Group CSR approach is based on 6 main axis: Ethics and Compliance, Value Chain, Social, Safety and Security, Environment and Societal CSR APPROACH •CMA CGM has won the “Gold Recognition Level” by EcoVadis for the third successive year, with an improvement of its grade every year. WITHIN CMA CGM GROUP •In 2017, the Group obtained 7 CSR-related awards.

ETHICS AND COMPLIANCE VALUE CHAIN SOCIAL SAFETY AND SECURITY ENVIRONMENT SOCIETAL • A strategy based on 4 axis: fight • A strategic course has been fixed • 34 647 collaborators worldwide, of • The average number of deficiencies • Ships of the future: CMA CGM chose • Containers of Hope Operation: 121 against corruption, respect of economic centered on the customer, the develop- which 4 513 seafarers per inspection has been reduced by LNG to propulse its 9 giant future containers in 2017, 600 since the begin- sanctions, respect of competition law, ment, the innovation, and the human • 145 nationalities in 140 countries 27% between 2016 and 2017 vessels. ning of the operation personal data management • 40 innovative projects and initiatives • A diversity comity has been established • Several certifications have been granted: • Energy efficiency: the CO2 perfor- • 2017 Call for proposals for the • The Ethics & Compliance policy and have been launched as part of the in order to work on 3 key axis: gender 13 ISO certifications for terminals, and mance has been improved by 10% Corporate Foundation: 51 applications organization have been strengthened Group transformation equality, intercultural, intergenerational one triple QSE certification for CMA between 2016 and 2017 received, 13 associations selected • 5 strategic partnerships have been • The “we are shipping” initiative has Ships • MyCarbonfootprint: a premium so- • More than 20 projects for local signed and a start-up incubator in been launched to promote parity • The health and security performances lution to evaluate CO2 emissions for communities have been launched by is being established between men and women in the Group for employees have been significantly more than 80 strategic clients has been CMA CGM employees in 2017 • A responsible procurement policy has and in the industry improved: the frequency rate of acci- developed been launched to sustain the durable • 7 partnerships with prestigious univer- dents at work with sick leave has been • Marine environment: 0 major pollution relations with suppliers and subcontrac- sities have been reappointed reduced by 35% for the fleet and 45% and 0 container lost at sea in 2017 tors for the terminals between 2016 and • Participation in 7 voluntary programs 2017 in 16 ports worldwide • The preventive safety policy in a context of major natural disasters and geopolitical instability has been repli- cated

2017: AWARDS, CERTIFICATIONS COLLABORATIONS

EcoVadis CDP - Happy Happy Best Place Safety At Sea ISO MACN CSSF CINS BASCAP CINDEX Clean Cargo Carbon Disclosure Trainees at Work to Work Awards 2017 Certifications The Maritime The Container Cargo Incident Business Actions Inter-Company Working Group Project Anti-Corruption Ship Notification to Stop Expatriation Centre Network Safety Forum System Conterfeiting & Piracy

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OUR 2018 GOALS CSR WITHIN THE GROUP

ENVIRONMENT For 2018, we aim to:

ETHICS AND COMPLIANCE SAFETY AND SECURITY Prevent corruption risks and develop our Prevent and reduce accidents, security risks, policy regarding ethics and compliance and improve work life quality among all our stakeholders Social ENVIRONMENT VALUE CHAIN Improve vessels’ energy efficiency and Carry on with our development and innova- develop “eco-friendly” technologies tion policy, to improve our clients’ satisfac- ECONOMY Ethics COLLABORATORS and Compliance tion SOCIETAL Societal Carry on with our engagement among SOCIAL communities through the Corporate Foun- Promote diversity among our teams and de- dation and the Group’s global and local Safety & security Value chain velop training courses for all our employees actions

STRATEGIC PRIORITIES: ADJUSTED CSR ISSUES Over the course of 2017, CSR issues were considered in detail and adjusted in order to better reflect the Group’s desire to be the driving force behind its ecological, economic and social transition.

THE CMA CGM GROUP’S 6 CSR PILLARS

VALUE SOCIAL SAFETY & ENVIRONMENT SOCIETAL CHAIN SECURITY

• Customer • Diversity - • Certification & • Energies • Regional Centricity Mixity & compliance • Raw Materials development • Innovation inclusion • Maritime & Wastes participation & sustainable • Collaborators Safety • Polutions • Corporate added Value Protection • Health & & releases philanthropie / • Responsible • Collaborators Safety • Biodiversity: civic actions Procurement development • Cargo security oceans • Emergency • Circular • Remuneration • International Relief Economy Policy security

ETHICS AND COMPLIANCE CMA CGM values • Core business strategy • Ethics & Conformity • Risk & Control • Stakeholders dialogue • Personal data protection • Anti-corruption • Compliance with competition and economic sanctions

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MATERIALITY ANALYSIS A materiality analysis was carried out in order to rank the Group’s CSR challenges in order of importance. These were prioritised, not only by reference to the strategy of the Group and its subsidiaries, but also by incorporating stakeholders’ expectations. These challenges can be broken down into 4 groups as shown by the chart below:

CMA CGM Group’s Materiality analysis

Innovation & sustainable CMA CGM added value CSR Issues Pollutions Collaborators Energies & release employability Customer +++ Centricity Ethics & Conformity Risk & Control Materials & waste Protection of employees Stakeholders Responsible dialogue Procurement

++ Diversity

Remuneration Circular EXEMPLARITY IN THE FIELDS policy Economy OF ETHICS AND COMPLIANCE Emergency Oceans: relief biodiversity +

Sponsoring, Local Actions & Philanthropy

+ ++ +++ Stakeholders CSR Issues

THE CSR STRUCTURE WITHIN THE GROUP The CSR and Environment Department reports to Executive Management and is responsible for: • Implementing the CSR policy in line with all group policies • Defining stakeholders’ CSR issues, priorities and expectations • Defining CSR objectives and coordinating CSR action plans • Evaluating, measuring and reporting on CSR performance

A CSR Committee meets regularly to draw up policies for strategic axis put forward by Executive Management and to take the appropriate action. This Committee is made up of the Human Resources, Audit and Risks, Compliance, Finance, Communication, Marketing, Branch Network, Purchasing, Transformation and Innovation and Security, Safety and Environment departments as well as CMA Ships and the Foundation. _

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IMPLEMENTATION OF THE SAPIN II LAW

The Group has taken all the necessary steps to • The development of a Sapin II risk map, comply with the new French anti-corruption designed to identify, assess, prioritise and law known as the Sapin II law. This includes manage the corruption risks to which the As a company, as an implementing and updating initiatives: Group is exposed. • Updating the management body’s com- It is also a means of communicating to Top employer and as a civic firm, mitment to the prevention and detection of Management and those responsible for Com- corruption in order to reaffirm the Group’s pliance the information required to implement “ CMA CGM has to be commitment to the fight against corruption. measures to prevent and detect corruption that are appropriate to the identified issues. • The introduction of an Anti-Corruption Code exemplary and adopt the highest of Conduct, an integral part of the Internal • Strengthening and updating the procedures Rules and the parallel updating of the Code of for assessing the situation of customers, standards in terms of integrity. ” Ethics. The Anti-Corruption Code of Conduct major suppliers and intermediaries. will contain the applicable anti-corruption and influence peddling rules. • The introduction of internal or external RODOLPHE SAADÉ, accounting control procedures to ensure that • The formalisation or review of Group poli- books, records and accounts are not used to CHAIRMAN AND CHIEF cies, including the gifts and hospitality policy, hide acts of corruption or influence peddling. EXECUTIVE OFFICER and the policies on marketing events, spon- sorship and charitable donations. The general • The introduction and updating of a training roll-out of an internal alert system to enable programme for those managers and employees employees to submit reports on behaviour who are most exposed to the risks of corruption or situations that are contrary to the Group’s and influence peddling. ethical rules. Strengthening Training and alert Competition law, Programmes dedicated of the Ethics system, essential anti-corruption, economic to anti-corruption and Compliance policy to risk prevention sanctions, personal data and the duty of care and structure in the value chain

THE CODE OF ETHICS: CMA CGM’S FOUNDATION DOCUMENT IMPLEMENTATION OF THE “DEVOIR DE VIGILANCE” LAW The Group has a Code of Ethics for employees and a Code of Conduct for third parties, including suppliers, subcontractors and partners. CMA CGM is affected by the Law on the “De- risks for our company. Interviews were then These are the Group’s reference documents in terms of ethics and compliance. voir de Vigilance” of parent and subcontrac- conducted with representatives of each They are designed to express the principles and rules that apply to each person ting companies enacted on 27 March 2017. business activity to identify the actions and when they perform their activities: the Group thus undertakes to comply with The CSR and Risk Management departments controls already in place or that are in the applicable regulations. The Code of Ethics provides employees with concrete worked together to develop a work pro- process of being deployed to mitigate these examples so that they can adopt appropriate behaviours when faced by risk gramme for 2018. risks. situations. The first step was to analyse the scope set This database is the starting point for the by law and apply it to CMA CGM, its subsi- mapping of Duty of Care risks - measure 1 of In addition, under the Sapin II Law on transparency, anti-corruption measures diaries and suppliers. The size of the Group the Law, which is currently under way. It will and the modernisation of economic life, an Anti-Corruption Code of Conduct is and the extent of its activities worldwide enable us to comply with measures 2 and 3 being drafted and will be the subject of a consultation among Staff Representative led to a separation of business activities of the Law (procedures for regularly assessing Bodies. The Anti-Corruption Code of Conduct will form an integral part of the into several “groups”: the situation of subsidiaries and implemen- internal rules of the French establishments. ting appropriate risk mitigation measures • Shore-based activities including the head and measures to prevent serious breaches) office, regional offices, the branch network once it has been completed and validated by and the offices of subsidiaries. In 2017, with a view to strengthening the Compliance Department is working Management. on 4 major activities: • Operational activities: Maritime: French flag and international flag To comply with the 4th measure of the Land: ports and terminals, logistics. Law, the whistleblowing mechanism, a tool Group suppliers and subsidiaries are dealt is being currently being rolled out across Personal with by the Purchasing Department. A tool the Group (see Sapin II). Anti- Economic Competition data was chosen to ensure that the situations of corruption sanctions protection subcontractors and suppliers are regularly An internal audit will be begun in 2019 to evaluated. comply with the 5th and final measure of Once the scope was defined, the legal the Law. concepts were analysed to identify the Business ethics, a corporate culture based on raising awareness and training of employees.

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THE DISSEMINATION OF THE “ETHICS & COMPLIANCE CULTURE “ WITHIN THE GROUP IS CARRIED OUT IN A VARIETY OF WAYS:

• The documents constituting the Group’s Ethics & Compliance programme are available to all employees on the Group Intranet site • At the same time, the “Ethics & Compliance” area of the public website www.cma-cgm.com provides public access to the Code of Ethics and the Partner Charter and describes our various ethics and compliance policies. Training is also a key aspect of the Group’s Ethics and Compliance policy: • Support is offered to Group employees: e-learning modules on European competition law and economic sanctions are mandatory for Group employees and are regularly updated • The Code of Ethics must be agreed to by any new joiner of the Group • To supplement the existing training program, an “Anti-Corruption” e-learning module is being produced and should be launched in the near future • An e-learning module recommended for all employees and any new joiner of the Group is disseminated so that all CMA CGM employees understand the principles, requirements and values set out in the Code of Ethics • Training for employees at the company’s highest levels was carried out in 2017 to raise awareness of the importance of business ethics

WHISTLEBLOWING SYSTEM

In order to prevent unlawful behaviour or conduct contrary to the Group’s values, and also to detect such conduct, openness and accountability initia- ADDED VALUE CONTRIBUTION tives have been launched for the Group’s employees. As such, all employees are encouraged to use any means to report breaches of the Code of Ethics, TO ALL THE VALUE CHAIN compliance policies and applicable procedures and regulations, regardless of the area they work in, to General Management, their line managers, the Group Compliance Department and/or to use any other existing channel, in particular breaches in the following areas: • Fraud and/or corruption • Anti-competitive practices • Compliance with human rights

_

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BRANDS ASSOCIATED TO CMA CGM GROUP ACTIVITIES: Strategy focused 40 innovative projects Customer centricity: Responsible procurement: on customers, and initiatives as part of the a program to improve for a long-term growth, transformation of the Group the customer experience relationship with suppliers innovation and people and subcontractors

OTHER MARITIME ACTIVITIES

SUPPLIERS CMA CGM CUSTOMERS

PORT ACTIVITIES

Responsible Innovation Customer Procurement Digital Centricity transformation INTERMODAL ACTIVITIES Added value

SUPPORT ACTIVITIES THE CMA CGM VALUE CHAIN

Over the past few decades, the CMA CGM Group has expanded its business activities, which are today divided into 4 main sectors: Maritime activities / Port activities / Intermodal and logistic activities / Support activities, notably through fleet management THE CMA CGM GROUP’S ACTIVITIES AND BUSINESSES

Three of the strategic objectives are set out below:

• Responsible procurement: creating long-term and successful relationships with suppliers and subcontractors BFM awarded CMA CGM The “Saga Familiale • Innovation & digital transformation enhancing operational performance de l’Année” Awards -Family Business of the • Customer satisfaction: improving the customer experience at all stages Year Award THE CMA CGM GROUP’S BUISINESSES At the annual BFM Awards ceremony, Rodolphe Saadé received the Prix de la Saga Familiale de RESPONSIBLE PROCUREMENT: CREATING A LONG-TERM RELATIONSHIP l’Année (Family Business of the Year Award). WITH SUPPLIERS AND SUBCONTRACTORS Each year, this prize is given to a family business that has been particularly distingui- Creating stable and sustainable relationships with suppliers is a key challenge shed. This price distinguishes between: for CMA CGM. As such, the Purchasing Department, purchasing advisors, •The Group’s unusual entrepreneurial and suppliers and subcontractors work closely together in this area. family path •Jacques Saadé’s vision focused on container Commitment to compliance with the Partner Charter ships, which allowed CMA CGM to become The Partner Charter details all the Group’s CSR commitments and obligations a world leader and the Group’s expectations of suppliers and subcontractors. •Rodolphe Saadé’s vision that pre-empted the All suppliers appointed during tenders and those selected via other means must unprecedented move towards consolidation first sign this Partner Charter, before an agreement is entered into. in the industry with the acquisition of APL and has successfully led to the Group’s continued Setting up a Supplier Risk Committee growth. Rodolphe Saadé used to occasion to During 2017, a Supplier Risk Committee was established to strengthen oversight explain his vision for the family business: of purchasing risks within the Group, including CSR-related risks. In addition to “It is an entrepreneurial spirit, a desire to go all the operational purchasing representatives, this Committee brings together further, to grow, to believe in its continuing key players involved in the relevant areas of expertise (Legal, Compliance, Audit good fortune. The Group has 29,000 and Risk Departments, Human Resources, CSR, etc.). employees, we are a fantastic team and we This committee implements action plans relating to regulatory changes (Sapin have decided to move forward together.” II, Duty of Care, etc.) applicable to suppliers. _ 16 17 CMA CGM _ CSR 2017 CMA CGM _ CSR 2017

Responsible Procurement at INNOVATION & DIGITAL TRANSFORMATION ENHANCING PERFORMANCE CUSTOMER SATISFACTION: IMPROVING THE CUSTOMER EXPERIENCE AT APL Innovation Committee CMA Ships ALL STAGES The APL Innovation Com- By obtaining triple A dedicated structure mittee is a cross-functional certification – ISO 9001, ISO Digital transformation is a strategic objective for the Group. It encompasses The ambition of the Customer Centricity project is one of the Group’s strategic team set up in February 14001 and OHSAS 18001, both improving the Group’s performance and enhancing the service provided priorities. Against this background, a customer experience improvement 2017 to generate and study CMA SHIPS has been able to customers. programme was launched to enable CMA CGM to: innovative and game-chan- to optimise its procurement In order to properly commit to this transformation, the Group relies on four •Meet new customer expectations ging ideas for the company. process and to improve factors: •While differentiating itself from competitors through an innovative offering In 2017, the Committee partnerships with suppliers >A team dedicated to digital transformation, consisting of employees from •While capitalising on its proximity to customers launch an internal contest and sub-contractors in terms business profiles and IT A Customer Charter was introduced in 2015 that set out a group of key called “WINGS”. The aim of of cost, reliability and >An innovation committee, composed of diversified and representative indicators for the customer journey. CMA CGM is committed to quality of this action is to invite inno- availability. As part of its employees from the Group’s various business lines, with the aim of identifying, service through these indicators. To ensure consistency in these KPIs and to vative ideas from APL staff revised procurement policy, analysing and structuring innovative ideas that may be reported back to the verify customer proximity, an annual customer survey has been introduced to all over the world. Through CMA Ships conducts company determine areas for improvement and priority actions for the Group. this initiative, it hopes to supplier audits every year to > A portfolio of over 40 initiatives divided into three areas: Lastly, in order to meet customer expectations in terms of digitalisation, e-com- cultivate a spirit of innova- ensure that the partner is in • Customer focus: modernising our relationships with our current customers, merce offerings were developed extensively in 2017 and will continue to be so tion and creative thinking compliance with the creating new digital business models, developing new types of markets/ until the end of 2019 with the aim of fully digitising the customer journey. within the company. company’s requirements. customers, etc. _ As an individual or as a _ • Operational excellence: simplifying structures and processes, accelerating team, share with us your in- our development, improving our decision-making processes, etc. novative or game-changing • Digital Culture: promoting innovation in collaboration and transversality, idea in any of the following developing flexible methods, creating a digital culture, etc. areas: >Investment fund to invest in 10 to 20 start-ups per year • Improve Efficiency • Improve Customer Experience • Increase Revenue • Reduce Cost KEY PARTNERSHIPS SIGNED _ At the fair “Salon des Entrepreneurs” in October 2017, Rodolphe Saadé announced his intention to create a CMA CGM start-up incubator in Marseille, Creation of the LAB and to attract start-ups from around the world. This ambitious incubator project Also launched in 2017, Le has been launched with a number of goals: Lab by CMA CGM is a space • Encouraging boldness and innovation dedicated to innovation and • Participating actively in the economic dynamism of the Provence Alpes Côte transformation. d’Azur region This disruptive workspace • Creating optimum conditions for innovation in the sector is built around four pillars: • Accelerating the Group’s digital transformation • Imagination • Contributing to the emergence of an innovative ecosystem specialising in • Experimentation particular in the logistics sector • Creation • Collaboration This project complements various initiatives launched by CMA CGM in France: The Lab offers a modular • Support for the “Carburateur”, a business incubator located in the work space or digital equip- northern part of Marseille, established with the support of the public authorities ment, and provides access • Partnership with Aix Marseille French Tech to exclusive resources such • Partnership with The Camp, innovative campuses that bring together large as work managed by the companies, start-ups, teachers and researchers Academy’s teams in “Design • Partnerships with global leaders in the IT sector such as IBM and Infosys Thinking“ mode1.

1 Design Thinking is an approach to innovation and management that is a synthesis of analytical thinking and intuitive thinking. It relies heavily on a co-creative process involving feedback from the end user. 18 19 CMA CGM _ CSR 2017 CMA CGM _ CSR 2017

IN ADDITION, OTHER ACTIONS IMPLEMENTED FOR CUSTOMERS WERE REWARDED IN 2017, FOR EXAMPLE:

› December 2017 : Silver Award “Global Car- › November 2017: CMA CGM Ecuador distin- rier of the Year“ assigned by Hellmann guished as the “Shipping Agency of the Year” during the BASC award ceremony › November 2017: “Supplier award“ assigned to CMA CGM by ELECTROLUX › November 2017: CMA CGM LOG Shenzhen named the “Best Service Support Award › July 2017: “SONY BEST PARTNER in 2017“ 2017” by ZTE Corporation assigned by SONY › November 2017: “Customer Service Awards” › March 2017: CMA CGM ranked “2nd best car- attributed to CMA CGM Australia at the Aus- rier“ by Kuehne Nagel tralian Shipping & Maritime Industry Awards 2017.

OUR EMPLOYEES’ COMMITMENT

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NUMBER OF EMPLOYEES IN THE GROUP 30,628 / INCLUDING INTERNATIONAL TOTAL EMPLOYEES SEAFARERS, THE NUMBER OF EMPLOYEES IS 34 647 / M M

NUMBER OF HIRING 7 191 / NUMBER OF DEPARTURES 5 343 / FRANCE RATE OF REDUNDANCY 2% / 145 NATIONALITIES IN 140 COUNTRIES AMÉRIQUES As of 31/12/2017 ASIE/OCÉANIE AFRIQUE/MOYEN-ORIENT Age 2017 Training 2017 <20 0% Classroom training 42 353 20 – 29 27% E-learning 51 184 30 – 39 33% 40 – 49 20% 50 – 59 12% >60 2% No age reported 6% 215 000 HOURS FOR THE SEAFARERS

DIVERSITY 34,647 employees Diversity Committee, 7 Partnerships with CMA CGM Academy: Quality of life at work: worldwide, including 3 key areas: parity, Grandes Ecoles creation of an excellence “Best Place To Work” The richness of the CMA CGM Group lies in the diversity of its male and 4,513 seagoing intercultural programme for CMA CGM female employees. Diversity plays a key role in supporting the Group’s strategy. employees and intergenerational for managers called the America, “Happy A source of inspiration and innovation, it leads to a better understanding of “LEAD Program” Trainees” and “Happy customer expectations and an offering of tailored transport solutions and At Work for Starters” high-quality services. Diversity within the Group is defined by equality, inter- for France culturality and intergenerationality that fosters an atmosphere that leads to mutual enrichment.

The CMA CGM Group strives to give everyone the same advancement oppor- tunities within the organisation. The Code of Ethics clearly defines the Group’s The international nature of the CMA CGM Group, the diversity of its business Workforce Breakdown by type of activity commitment to diversity and equal opportunities. We derive our integrity by lines and the number of activities it carries out support the career development respecting and protecting the fundamental rights and freedoms as instituted in of both land-based and seagoing employees. the Universal Declaration of Human Rights. Through this declaration, the Group 13% has committed to eliminating any discrimination of any kind based on nationality, Operational Today, the Group has 3 major groups of employees3 with different and comple- class, race, disability, gender, age, religion and political views. seafarers mentary activities and roles. These groups include: More broadly, the Group anti-discrimination policy is based on the principles of • Shore-based activities: support functions at head office, regional offices, freedom of opinion, job placement and retention for disabled employees, and branch networks of the group and its subsidiaries job equality as per the bargaining agreement. As such, several projects have 12% 75% • Operational activities: Maritime, Land (ports and terminals, logistics and been implemented and there is constant dialogue between the staff represen- Operational ashore Office intermodal transport (road, river, air), etc.) tative bodies and management in order to more fully address areas in which the employees employees employment environment climate and the atmosphere at work in general may WORKFORCE be improved. At 31/12/2017, the number of seagoing employees was At 31/12/2017, the Group had 30 6284 employees. Including international In May 2017, the CMA CGM Group created the “Diversity for Better Perfor- seagoing employees5, the number of employees was 34 6476. There were 7 1917 mance” Committee. 2017 hires and 5 3438 departures with a redundancy rate of 2%9. The Committee’s role is to make diversity a source of performance for the French seagoing employees 494 Group, and it is structured around 3 areas of work: International seagoing 2 2 Seagoing employees with an employment contract (fixed or indefinite term) with CMA Ships employees 4 019 PTE Ltd. they work on vessels in the CMA CGM Group fleet or on ships owned by other shipowners (APM and CNC), which are used for one-off missions by of other Group entities. Total number 3 100% of the consolidated Group workforce, i.e. 34,647 employees. of seagoing employees 4 513 4 Consolidated Group headcount excluding international seagoing employees, i.e. shore-based employees + French seagoing employees – i.e. 88% of the consolidated Group workforce. INTERCULTURALITY INTERGENERATIONALITY GENDER EQUALITY 5 This is the number of seagoing employees with an employment contract (fixed or indefinite term) with to improve understanding to develop knowledge and to feminise the Group’s CMA Ships Singapore PTE Ltd. these seagoing employees work on vessels in the CMA CGM Group fleet of different foreign the transfer of skills between image and reduce or on ships owned by other shipowners (APM and CNC), which are used for one-off missions by of other partners’ culture and thus Group entities. the different generations the status gap between encourage exchanges men and women 6 I00% Consolidated Group workforce. 7 RH5 indicator - Number of hires: Information available for 100% of the C&Me shore-based workforce - 81% of the consolidated Group workforce. 8 Indicator RH6 - Number of departures: Information available for 100% of the C&Me shore-based workforce - 81% of the consolidated Group workforce. 9 Redundancy rate: Information available for 100% of the C&Me shore-based workforce - 81% of the consolidated Group workforce. 22 23 CMA CGM _ CSR 2017 CMA CGM _ CSR 2017

Intergenerational This commitment is reflected in a policy of recruiting, promoting, training and collaboration through the organising events such as themed lunches, sharing time and organised “Y Team” discussions to provide information and understand female employees’ At the initiative of Rodolphe expectations and propose new actions (Women’s Day, Pink October, confe- Company concierge service Saadé, the “Y team” was rences, various communications, etc.). In order to employees’ created in December 2017 It should also be noted that CMA CGM’s Board of Directors is more than 46% day-to-day lives easier and to work on cross-functional made up of women, in accordance with the French Copé-Zimmermann Law, to save them time, the CMA subjects proposed by the which introduced rules for the balanced representation of women and men on CGM Group introduced a Chairman. This mixed team boards of directors (more than 40% of female directors). Interculturality company concierge service consists of employees under There are over 145 nationalities represented within the Group, spread across 140 at the Head Office in 35 years of age from various countries. Interculturality is a source of richness for the Group, and actions have November 2017. departments (Lines, Opera- been implemented, notably through training tools to streamline exchanges and Disability tions, Logistics, Transforma- optimise communications, not only within the Group but also with customers The CMA CGM Group supports people who require appropriate care during _ tion, Branch Network and and all its stakeholders. Breakdown of workforce by region: their professional career. In Marseille, at the head office, people with disabilities Major Accounts Department, are, more often than not, detected through Occupational Healthcare. Once Strategy). The aim of the “Y informed, the Group suggests individual measures that seek to adjust, alter Regions10 2016 2017 Team» is to propose rapid or transform workstations to enable employees to continue carrying out their and concrete actions and France 21% 14% work. The principal measures include changing the layout of workstations (foot to take a fresh look at key rests, telephone headsets, ergonomic chairs, special IT equipment, etc.) and Europe (except France) 14% 14% issues, while working providing a parking space. Partnership with the intelligently with all Africa – Middle East 16% 19% At the head office, CMA CGM has a year-round arrangement with companies in European Hospital stakeholders in charge of the disabilities sector to provide it with brochures or office supplies. Americas 13% 11% In 2015, the CMA CGM Group the relevant areas. entered into a partnership The creation of this team Asia - Oceania 36% 42% with the European Hospital follows on from the LIFE QUALITY AT WORK located near the CMA CGM initiatives aimed at giving a Tower, enabling employees voice to new generations to In 2017, the workforce grew sharply in Asia and Oceania due to an increase in the Several measures are taken to ensure that employees have an appropriate work- to benefit from a local and influence innovative number of employees at shared service centres in India and . life balance. A gender equality agreement13 provides for 100% paternity leave high-quality healthcare decisions and accelerate for shore-based and seagoing employees, flexible working hours for pregnant service. They have a specific the transformation of the Intergenerationality women, the provision of 12 optimised cradles to accommodate 18 children of email address company. Within the Group, the average age of employees is 37 and the average length employees within a private crèche or the payment of a “child allowance” to the for appointments of service is 8 years. establishment committees, the introduction of personalised working hours for _ and medical full-time staff (variable shifts) at all metropolitan shore-based establishments. examinations. Age11 2017 _ <20 0% In 2017, the actions taken to improve quality of life at work focused principally on improving employee monitoring. 20 – 29 27% For example, a support process for those returning from long-term absences 30 – 39 33% has been introduced in the form of various appointments between the human 40 – 49 20% resources department, the manager and, where necessary, the occupational psychologist. 50 – 59 12% >60 2% The exhibition “Portrait Life quality at work for seagoing employees 6% de femmes” (Portraits of No age reported The approach is both proactive and comprehensive: Women) • It is proactive as it focuses on improving Quality of Life at work as a whole and For International Women’s 60% of the Group’s employees are aged between 20 and 40, and “expert” confe- not in response to the legal constraint of preventing psychosocial risks Day on March 8, 2018, the rences and mentoring initiatives have been introduced to support young talent • It is comprehensive as it acts on the socio-organisational drivers of profes- and facilitate the transfer of expertise. Group organised an exhibi- sional activity and provides support to employees in their overall active health tion focusing on professional approach. parity and the role of women Gender equality In structural terms, a Quality of Life at Work group was formed. This group in the Group. This exhibition is made up of the Human Resources Department for seagoing employees, aimed to remind us that equa- Type12 2017 members of the employee representative bodies, the CMA CGM psychologist, lity in the workplace is at the the prevention officer, the seafarers’ healthcare department and the maritime core of the Group’s concerns Women 43% social service. Its role is to analyse the results of employee monitoring and and that team diversity Is Men 57% quality of life surveys, and then issue recommendations. the source of our success. It Against this background, an action plan has been put together: certain shines the spotlight on 30 specific actions have already been implemented. For example, the creation employees. These women Women account for 43% of the Group’s workforce, with 13% of women in ma- of a Planning Committee with the aim of improving the ergonomics of ships were chosen for their career nagement positions. Against this background, CMA CGM has, for a number of before being built, and improving communications between ships and land and paths, their involvement and years, been committed to promoting equality in the workplace. port services. As such, a more operational group that is closer to the seagoing their commitment to the 10 RH4 indicator – Breakdown of workforce by region: Information available for 100% of the C&Me employees, has been developed. This is an initiative of the quality of life at work Group. shore-based workforce - 81% of the consolidated Group workforce. 11 RH3 indicator – Breakdown of workforce by age: Information available for 94% of the C&Me shore-based _ workforce - 75% of the consolidated Group workforce. 13 Agreements within the scope of the CMA CGM ESU: CMA CGM SA (including its establishments in 12 RH2 indicator – Breakdown of workforce by gender: Information available for 100% of the C&Me Paris, and Marseille), CMA CGM Antilles Guyane, CMA CGM Agences France, CMA Ships, shore-based workforce - 81% of the consolidated Group workforce Traveller’s Club, CMA CGM Réunion, CMA CGM Logistics, CMA CGM LOG France. 24 25 CMA CGM _ CSR 2017 CMA CGM _ CSR 2017

group, known as the “Contact and Prevention Council” (CPC). The role of this group is to carry out preventive actions, train and support resources, support people with healthcare, advise on Quality of Life at Work and addictions. Its THE MARITIME LABOUR CONVENTION members comprise staff representatives on the Quality of Life at Work group, the prevention officer, the CMA CGM psychologist and the social worker. The International Labour Organisation - ILO As of August 2017, 84 ILO members have now met in Geneva on the 7th February 2006. ratified this convention and this represents During this conference there was a common 89% of world tonnage. Prevention of psycho-social risks desire to create a single, coherent instrument The Group’s policy on psycho-social risks (PSR) is the subject of an agreement embodying as far as possible all up to date MLC 2006 is organized into 5 General Titles: signed on 20 May 2010, (agreement on the prevention of psychosocial risks standards of existing ILO conventions with a • Minimum requirements for seafarers to work among employees of the CMA CGM ESU). The document provides milestones core mandate to promote decent working and on a ship for a preventive programme to measure, analyse and monitor psycho-social living conditions onboard. Having adopted • Conditions of employment risks. The recommended actions include: this convention, the MLC 2006 -Maritime La- • Accommodation, recreational facilities, food • Preventing the risks of moral or sexual harassment and establishing an alert bour Convention was published. The conven- and catering procedure tion became a mandatory requirement from • Health protection, medical care, welfare and • Organising training courses for managers on the prevention of psycho-social August 2013. social security protection risks International Maritime Law rests on four pil- • Compliance and enforcement Since the agreement was signed, a psychological support unit has been set lars: up. The unit is available by telephone or online 24/7 and provides a completely • SOLAS: Safety – International Convention Due to the high quality of its ships, CMA CGM confidential space for employees to talk someone of their choosing. In addition for the Safety of Life at Sea was in a position to actually implement MLC to preventing psycho-social risks, it demonstrates the Group’s commitment to • MARPOL: Environment – International across its multi flag ‘owned fleet’ well in ad- acting on its long-term promise to improve working life for its employees. A Convention for the Prevention of Pollution vance of this August 2013 deadline. number of projects have been launched to act at the individual and collective from Ships level over the long term. The main areas of focus are the working environment, • STCW: Training and certification – Interna- During the certification stage, no major defi- the social climate and employee support. Employee Survey - seagoing tional Convention on Standards of Training, ciencies were found and moving forward, on employees Certification and Watchkeeping for Seafarers every occasion that ships are inspected either During 2017, an IFOP Social relations • MLC: Social protection and work condi- by Flag or PSC, we continue to demonstrate Social relations are a vital part of company life. It principally consists of employee survey was tions – Maritime Labour Convention, i.e. the a very high standard of working and living providing information to employees. Questions on strategy, economics, finance conducted with French and minimum employment conditions and living conditions on board. and social and organisational issues are discussed by the various bodies com- international maritime conditions for seafarers. officers. With a higher rate prising employee representatives and management. In addition to the employee of return than the rates representatives appointed for each entity14, these involve the Group Committee, usually recorded for this the Central Works Council in France, the Entity Committees, the Health and type of survey, the survey Safety Committee and various specialist joint committees. has led to: a general observation of well-being In accordance with the conventions of the International Labour Organisation at work, an acceptance (ILO) and the principles laid down in its Code of Ethics, the Group is committed of the CMA CGM Group’s to respecting the freedom of association and the rules of association in the strategy and effective various countries in which it operates. Furthermore, in addition to the collective communications. bargaining agreements signed in 2017, it should be noted that the Group Seagoing employees also decided to grant two additional days of leave to employees with a disabled express attachment to the child. At 31 December 2017, 17 employees had benefited from this agreement. Group in which they see a positive professional future for themselves. In addition, AN ATTRACTIVE EMPLOYER seagoing employees are quick to recommend the Career management Group. In 2017, the Group continued its career development initiative, in particular This survey also highlighted through the transformation of its HR tools. The roll-out of the C&Me Talent areas for increased vigilance Management module sees the Group, an employer in more than 40 countries and areas for improvement and with more than 15,000 employees, offering a new approach to talent that were taken into account management that provides employees with greater support: succession plans, in the objectives and the identification of talent, evaluations, optimisation and screening of organisations HR action plan for seagoing based on their activities. employees. As part of this programme, the Group has a process for identifying “High _ Potential” employees. This international process for spotting “High Potential” employees has helped to identify key positions and to plan for successions. The Group also encourages initiatives proposed by any employee who wishes to take up new challenges. To this end, the performance interview, formally launched in 2015 as part of the new C&Me human resources management tool, allows shore-based employees and their line managers to take stock of their objectives, assess their performance, formulate new career development goals and discuss their training needs.

14 Maritime ESU entities excluding French seagoing employees

26 27 CMA CGM _ CSR 2017 CMA CGM _ CSR 2017

Sponsoring and mentoring in France “ONBOARDING” PROJECT In 2017, new programmes were introduced to attract, retain and develop talents Integration is an essential challenge that prior to joining the company, specialist sup- within the Group. today constitutes a powerful lever in the port on completing administrative formalities • The Sponsorship loyalty and development of our new talents. and key information (via a digital portal) to programme seeks This is a decisive period in the employee’s encourage their adherence to the company’s to accelerate and facilitate career, which requires our full attention and culture and values. the integration of Executives the involvement of all company stakeholders. In 2018, a discovery report will supplement • The Mentoring programme In 2017, the roll-out of the “Onboarding” the “Onboarding” tool so that each employee is aimed at supporting our project in the and then in may relate their experience and thus help the young talents in integrating. France allowed the CMA CGM Group to Human Resources Department improve the These two programmes, professionalise the induction pathway for new process of welcoming new employees. based on a special employees. New members of staff now have, relationship, trust and mutual respect, enable our experienced employees to share their knowledge of the Group and their network with new joiners. _ LEAD PROGRAMME TRAINING

In 2017, CMA CGM Academy set up a specific siness School and the Group. training programme for African executives What is more, in partnership with Sciences appointed to senior management positions. Po Paris, Corporate Learning Alliance, in 2017 Emphasis is primarily placed on developing the Group launched an excellence training Espace MAPP managerial skills, shipping and intermodal programme for Group executives in Singapore, CMA CGM is also a member business lines. entitled “LEAD”. It covers: of the “Espace MAPP” This 240-hour training programme over one • Being a driver of change Mobility allows for the internal deployment of available skills in the place where Association (Mobilité year (September 2016 – September 2017) was • Enhancing operational excellence they are most needed in the Group. The Group’s mobility policy also offers et Accompagnement des provided jointly by experts from KEDGE Bu- • Developing a culture of innovation traditional forms of mobility (expatriation contracts, local contracts, second- Projets Professionnels ments) and various innovative career paths. Consequently, employees are or Mobility and Support for better able to expand their skill sets, hone their expertise or be promoted to Professional Projects) managerial roles. Every week, a memo from the human resources department for the Provence-Alpes-Côte informs all Group employees of new job vacancies. d’Azur region. Espace MAPP facilitates the inter-com- JUMP pany mobility of employees JUMP (Junior Employer Mobility Program) is an innovative scheme that offers at several companies with our young talents the opportunity to go abroad for a period of six months to a strong local presence learn new skills and experience a different working environment. Every year, through exchanges approximately twenty employees participate in this international mobility pro- or positions facilitated by gramme. training that the association also provides, thereby SWAP offering a great variety and Alternatively, the “SWAP” programme allows two employees of two separate diversity of career paths. entities to swap positions. _

Under the VIE (International Work Volunteering) programme, young graduates go abroad to work in our local branches to broaden their knowledge, acquire new skills and help standardise practices and procedures within the Group. At the end of their contract, the Group offers them career opportunities and the opportunity of undertaking new challenges to support the Group’s develop- ment. In 2017, there were 30 participants in the VIE programme, mainly in Africa, Asia, and South America. Lastly, each year, the Group offers employees expatriate contracts in a number of locations. In addition to sharing best practices and standardising working methods, international mobility enables employees to broaden their field of expertise and assume more responsibility. Employees receive information about, and are made aware of, international mobility opportunities all year long through discussions, conferences and targeted communications.

28 29 CMA CGM _ CSR 2017 CMA CGM _ CSR 2017

Career management for seagoing employees: : E.g. TOEIC, TOSA, responsible management and business management. The careers of seagoing employees are regularly monitored by the person responsible for managing seagoing employees. Each sea journey is preceded In 2017, the Group continued to develop its commitment to training. by a briefing at which checks are carried out on the validity of certificates and CMA CGM Academy continues to roll out business training in the form of whether seagoing employees have completed the required training courses. “blended” training courses, i.e. courses that combine several teaching methods The Group is endeavouring to offer “land-sea-land” career management for (e-learning, classroom-based, telephone, etc.) at the head office and branches. officers of the owned fleet. They are given assignments at the head offices to With a view to ensuring optimal roll-out of the courses for the various LISA facilitate discussions between the different working communities and provide (SAP) modules, a network of “Super Key Users” and “Key Users” was put to- them with future land-based career opportunities. gether, trained and supported by CMA CGM Academy.

A competitive remuneration policy In addition, comprehensive training courses continued to be provided at the To attract, retain and motivate talent, the Group relies on a remuneration policy head office to: based on three priorities: • Area sales representatives, • Internal fairness • Cargo-flow and vessel operation staff, • External competitiveness • Line management controllers. • Performance-based pay Since July 2016, as part of the integration of the APL teams, the CMA CGM Emphasis was also placed on developing innovative blended training courses Group has undertaken an overall approach to harmonise salaries and healthcare, that combined different types of teaching activities. For example, the INSIGHT insurance and retirements schemes in approximately 40 countries. programme for managers offers a training course consisting of inspiring videos, This process was carried out using comparative studies on the levels (remune- e-learning modules before and during the sessions, as well as regular and lively ration, employee benefits) and structures in the relevant countries. exchanges with the trainer and facilitator, with work to be handed in and group Ecole de Management et With a view to continuing with this initiative, an audit was commenced at the discussions. de l’Innovation (School of end of 2017 in respect of all Group companies. The report on this audit will, The uptake of distance learning (e-learning, teaching videos) fell slightly on a Management and Innovation in 2018, provide an exhaustive overview of the Group’s healthcare, provident per capita basis: 1.76 hours per person in 2017 compared with 1.98 hours in 2016. or EMI) - Sciences Po Paris insurance and supplementary retirement plans. This is mainly explained by no mandatory global training programme being CMA CGM has, for the past By way of information, at 31 December 2017, the payroll amounted to: MUSD rolled out in 2017, unlike previous years, as well as by the integration of NOL two years, been a partner 1,699 from 1 January 2017. of Sciences Po Paris and, more specifically, since 2016, has been the sponsor of the Payroll15 2016 2017 In addition, these 7,000 new learners are not yet fully versed in using the portal and the library of training content, so the overall average has suffered as a result. Ecole du Management et MUSD 1,243 1,699 The average ratio is accordingly down by 11% in favour of long-term investment de l’Innovation. Established and training coverage for all CMA CGM Group employees, across all subsidiaries. in October 2016, the school A strategic training policy trains the economic players The Group’s training policy forms part of a comprehensive career management of the future, who, through and skills development strategy. Training for seagoing employees: their creativity and entre- The number of total hours of classroom and distance training for international preneurial vision, are able The CMA CGM Group is committed to maintaining and strengthening the skills seagoing employees was almost 215,000 hours in 201719. The training of to transform businesses and of its employees. CMA CGM provided 42,353 hours of face-to-face training in seagoing employees is based on STCW 20103 programs (an international redefine their role in society 2017 to French shore-based employees and French seagoing employees and agreement that determines the required professional certificates for each in light of future challenges. generated 51,184 hours of online training for Group shore-based employees. on-board function). Some of these certificates are renewed every five years In 2017, CMA CGM decided after a refresher course and training on the use of CMA CGM tools, requested by to renew its commitment to CMA Ships (internal software, techniques, safety, simulators, etc.). Sciences Po and EMI. Training16 2016 2017 _ Classroom training17 49,158 42,353 16 In 2017, the training report covers the consolidated scope. It is based on information extracted from the

18 management tool for face-to-face training = C&Me and login data for distance training. It should be noted E-learning 45,507 51,184 that the reliability of the process of reporting “training” data is currently being improved, and the long-term goal is to cover 100% of the workforce. It should also be noted that the long-term objective is to collect all data on employee training at all Group entities via the C&Me tool. In 2017, the Academy developed certified training programmes for France. 17 RH7 indicator – Number of training hours: The scope of the face-to-face training data corresponds to French shore-based employees and French seagoing employees, i.e. 12% of the consolidated Group Substantial investment from both the company and the training organisations workforce. is required to set up this type of programme, given the demanding regulatory 18 RH7 indicator – Number of training hours: The scope of the distance learning data corresponds to the environment. worldwide shore-based employees in C&Me, i.e. 81% of the consolidated Group workforce. These comprehensive and professional programmes enhance the employability 19 RH7 indicator - The number of training hours for international seagoing employees corresponds to the number of hours of distance training plus the number of hours of classroom training. The number of hours of the employee, who sees his skills valued and recognised by certification. of face-to-face training is calculated by applying an average of eight hours of training per training day provided. The number of e-learning training hours is calculated by applying an average of two hours per 15 Scope of financial consolidation e-learning session – Information available for 12% of the consolidated Group workforce 30 31 CMA CGM _ CSR 2017 CMA CGM _ CSR 2017

KEY PARTNERSHIPS

The CMA CGM Group proactively pursues dialogue between higher education and business and forges close working relationships with universities and colleges. In France, the CMA CGM Group renewed its partnership agreements in 2017 with Sciences Po Paris, HEC Paris and ESCP Europe, in addition to existing Welcoming year 10 students partnerships with Kedge BS, Aix Marseille University, IAE Aix-en-Provence and at the head office IEP Aix. Throughout the year, the These agreements create official links between CMA CGM and provide a CMA CGM Group welcomed framework for the mutual commitments that bind them. Joint initiatives are young secondary school organised, for example, in the form of conferences, round tables, the students to Marseille as involvement of CMA CGM’s industry experts with courses and business projects, part of their year 10 work and the Group participating in examination committees and the sponsorship of placement, entitled “Disco- various year groups. vering the corporate world”. Outside the framework of the agreement, the Group also undertakes one-off Exclusively available to the initiatives by attending conferences, round tables and job fairs organised by children of employees, this the Grandes Ecoles, such as the ESCP, HEC and EM Lyon forums. These events initiative is very popular provide the Group with the opportunity of introducing students to CMA CGM’s with employees at the head activities and the diversity of its business lines. office. It is a way for them to introduce their children to their working environment AWARDS AND CERTIFICATIONS and their roles at work. It is also a way for the company In 2017, the Group received a number of Awards that recognised the steps taken to present its activity and to to develop the Group’s attractiveness. develop its local presence. In the year to 31 December “Happy Trainees” label 2017, more than 36 year 10 In 2017, for the 3rd consecutive year, CMA CGM’s head office was work placement students awarded the “Happy Trainees“ label, which recognises the Group’s HR were welcomed to the head policy for interns and work-study students. EXCELLENCE office. _ “Happy At Work for starters” label IN SAFETY & SECURITY CMA CGM was ranked 10th best company as rated by employees under the age of 28 and was awarded the “Happy At Work For Starters” label with a score of 4.04/5 following a pilot survey conducted by Choosemycompany.com. Companies were assessed in six areas: professional development, stimulating environment, management and motivation, salary and recognition, pride, fun and enjoyment.

“Best place to work” pour CMA CGM America Every year, the Inside Business magazine ranks the best employers in the Hampton Roads region in Virginia (USA).

ASSISES DE LA MER

In November 2017, the CMA CGM Group invited approximately fifty students from the Grandes Ecoles to participate in the Assises de la Mer conference. By attending this annual meeting of the French maritime community, they were able to learn about the Group and the diversity of its activities, particu- larly through the conference led by Mr Rodolphe Saadé, CEO of the CMA CGM Group. Throughout the day, students learnt about the future challenges facing the maritime economy, a sector in which CMA CGM intends to continue playing its leading role. _

32 33 CMA CGM _ CSR 2017 CMA CGM _ CSR 2017

International Maritime Organisation (IMO), but also at regional and local levels. These laws and regulations are complex and change often. The Group’s compliance is routinely evaluated through a series of external audits by the authorities, the port of call country, classification firms as well as through Search and rescue internal inspections and audits. The vastness of the oceans REGULATORY FLEET CENTER, Each vessel is therefore subject to three levels of regulation, each with its own requires the various COMPLIANCE ASSESSMENT OF RISKS inspections: maritime operators to & CERTIFICATION + & CRISIS MANAGEMENT • International regulations (MARPOL, SOLAS, IMS Code, etc.) come to the rescue of other • The regulations of its flag state (14 flags at CMA CGM) people that may be • Local or regional regulations in danger. Ships may The port of call states regularly carry out inspections on board vessels to check that therefore be required at any vessels are seaworthy: Port State Control (PSC). Where problems are detected, the moment to change course PSC issues a deficiency finding, which may lead to the vessel being detained. to assist a vessel in distress. = SAFETY These are known as Search In 2017, the owned property fleet was given a deficiency rate of 0.71 by PSC & Rescue (SAR) operations. (Port State Control)21 , following a rate of 0.97 in 2016. This significant reduction In 2017, 14 operations were is due to a number of awareness-raising measures on board ships and on carried out by owned ships. land on the management of PSCs. In 2017, 4 vessels were detained: the non- _ compliances identified were immediately corrected. Goods People Merchandises

Indicator Evolution 2016-2017 Average % of deficiencies per inspection - 27% Significant Safety First: people Triple Quality, Safety Maritime solidarity: Preventive security improvement in the safety, goods and and Environment 14 rescue and recovery policy in a context Group’s safety Merchandises certification for operations carried out of major natural Maritime incidents are classified based on a matrix from A to D, with D being a performance: fleet CMAShips at sea events and geopolitical serious incident. This matrix takes account of four major categories of impacts: and terminals instability • Impacts on the health and safety of the ship and crew • Environmental impact • Impact on the public • Financial impact GENERAL POLICY Between 2016 and 2017, major nautical incidents, rated C and D, decreased The health and safety of the Group’s employees is a priority. Certain activi- drastically, by almost 38%. This decrease can be explained by the policies ties and business lines present significant risks, particularly on board, but also implemented by the Group and the reporting of near misses, which have led to terminal and warehousing operations. a better understanding of the risks.

Indicator Evolution 2016 - 2017 The objective of the CMA CGM Group’s security policy is to avoid any accidents that may result in injury or loss of life, either to shore-based or seagoing Number of major maritime events -38% employees, or major damage, either to vessels, goods or the environment, by establishing a set of procedures that are regularly evaluated and reviewed in an In 2017, 5 major maritime events were recorded: integrated management system (IMS). • On the CMA CGM BERLIOZ, a subcontractor was reported missing as the vessel passed through the red sea (man overboard). Unfortunately, the searches by A dedicated SSE (Safety, Security, Environment) Department is involved in both the ship did not lead to him being found analysing and preventing risks, and in auditing and implementing technical • On the CMA CGM FIDELIO, a fire broke out on the bridge at the back of the -38% and organisational procedures in accordance with prevailing regulations. This midship deckhouse while at sea. The crew managed to extinguish the fire major nautical incidents department carried out annual audits on board vessels and on land, in order • The CMA CGM CENTAURUS, following a manoeuvring error, collided with the to check that CMA CGM’s security policy is being properly applied. This same dock at Jebel Ali, causing one of the port’s gantries to fall and causing significant department is tasked with coordinating operations in a major crisis. damage to a second. The vessel also suffered damage to its hull • On the CMA CGM HERODOTE, a crew member was reported missing as the CERTIFICATIONS vessel passed along the Maltese coast. Unfortunately, the searches by the ship CMA Ships has initiated a triple certification process on 100% of its scope20: and the Maltese coastguards did not lead to him being found. • ISO 9001 Quality and Customer Satisfaction • On the CMA CGM KERGUELEN, a member of the crew was found dead in his • OHSAS 18001, Occupational Health and Safety cabin following a heart attack. • ISO 14001, Environmental protection Surveys by the SSE department were carried out following each of these inci- As part of the process of continually improving the QSSE performances dents in order to determine their causes and suggest corrective actions to avoid of Terminals, 12 ISO 14001 and OHSAS 18001 certifications were obtained in repeat incidents. 2017 covering all 20 Terminals, i.e. approximately 60% of Terminals that have introduced a voluntary certification approach. The 2018 goal is to increase the A proven crisis management plan number of certifications to 15. Although the CMA CGM safety management procedures are mainly preventive, the Group also has a comprehensive plan in place for managing crisis situations. MARITIME SAFETY This plan defines the responses to emergency situations on board ships, but Maritime safety is governed by strict local and international regulations, also in branches and terminals. The plan is tested at least once every year and which are, more often than not, determined at the international level by the routine training sessions are carried out to improve the response and interven- tion capabilities of the crisis management teams. The Group also regularly car-

20 CMA Ships scope excluding: AML, BS, NSB, MERCOSUL, CPOFund and CNC ries out joint exercises with the authorities to prepare for potentially dangerous 21 Calculation method: Number of deficiencies in 2017/Number of PSCs in 2017. incidents: pirate attack simulations, emergency towing, fire and pollution. 34 35 CMA CGM _ CSR 2017 CMA CGM _ CSR 2017

In the event of a crisis, the affected entity will first call the emergency 24/7 number, where it will speak to the on-call operator. The operator will inform the various departments of the situation, and depending on the severity of the incident, will determine whether to form a crisis unit made up of all relevant parties. There are dedicated rooms for such purposes in Marseille and Singa- pore equipped with all necessary means of communication. The crisis will then MARITIME ACTIVITIES TERMINAL ACTIVITIES be managed from this room. Once the crisis has been resolved, an investigation FLEET NAVIGATION CENTER: CUTTING EDGE TECHNOLOGICAL RESOURCES will be carried out to determine the causes of the problem and to draw lessons • Fire/explosion • Collisions between from the incident and to avoid a repeat thereof. • Falls from height machinery In order to prevent navigational risks, parti- routes, analyse risks, and advise and sup- or slips/trips and pedestrians cularly weather-related risks, modern techno- port all fleet vessels and the Grou due to bad • Risks associated to • Falls from height logical resources are developed in-house by weather in 2017. EMERGENCY EVENTS manual handling • Manual handling the experts at the Fleet Centres and then pro- • Psychosocial risks • Slips/trips vided to captains and officers on board the The centres also ensure that fuel consumption • Movements • Falling objects Group vessels. is optimal and that vessels comply with speed 24/7 Officer on duty > Severity assessment of the event and postures (mainly, container limits in whale breeding grounds and with re- • Noise/Vibrations lashing bars) These resources include routing assistance gulated navigation zones. • Vibrations systems and navigation assistance systems A team of experts in manoeuvring vessels Communication • Electricity for bad weather. In the Marseille, Singapore analyses and determines the nautical rules for to management and Miami Navigation Control Centres. accessing the ports where the group’s vessels Experienced captains continuously monitor dock. Triggering crisis > Positive Main risks related to employees’ health and safety by types of activities

Crisis management > • SSE management > • Executive • CMA ships Management • Line management • Communication • Finance Department Investigation/ Feedback Departement …

OCCUPATIONAL HEALTH AND SAFETY The assessment of risks associated with safety and working conditions is cen- tral to the Group’s preventive approach. It comprises an ongoing improvement process in which all employees, from Management to seagoing and operational employees, are involved on a daily basis.

As required by applicable regulations, all risks are identified, assessed and are the subject of annual prevention plans at the various maritime, land-based and shore-based entities. These prevention plans cover varied topics such as indi- vidual protective equipment, chemical risks, psychosocial risks, addictions and noise risks. Investigations are systematically conducted into workplace acci- dents with work stoppages of more than 24 hours and/or near misses that are considered to be serious, in order to analyse the causes and implement appro- priate corrective and preventive actions.

Every quarter, feedback on on-board incidents (accidents, near misses and inspections) is compiled and discussed by owned fleets. This allows sailors to benefit from others’ experiences and better anticipate risks.

In 2017, actions to develop the safety culture with the teams were strengthened. A third safety campaign for all crews was rolled out. The subject, this time, was Individual Protection Equipment, prevention for on-board dockers a satisfaction questionnaire on safety on board vessels. Training and awareness-raising are crucial aspects of prevention. These com- prise mandatory business line training sessions, on-shore, on-board, works- tation and tool familiarisation sessions, and a catalogue of distance training sessions for seagoing employees, specific training courses for all second offi- cers, as well as a programme of regular exercises and navigation simulators. Seminars were held at the head office for officers of all the Group’s fleets. Participants discussed various operational topics and on-board safety (analysis of reported incidents, safety management, etc.). The Group is also an active member of the CSSF ( Safety Forum). Launched in 2014, this is an inter-company network that seeks to improve safety performance and container transport management practices. 36 37 CMA CGM _ CSR 2017 CMA CGM _ CSR 2017

Near misses In 2017: A near miss is an ASBESTOS RISK unintentional incident that Terminals Evolution 2016 - 2017 CMA Ships has taken the initiative of updating An action plan is being implemented with the help could have caused damage, the inventory of hazardous materials (IHM) on its of an ad hoc committee, plans have been made for injury or death, but was Frequency rate of accidents at work owned vessels. This update was recommended by these asbestos-containing items to be removed by narrowly avoided. - with sick leave -45 % the 2009 Convention on the Recycling specialist approved companies, and the Group has Near misses must be studied of Ships, which will soon enter into force following a also ordered regulatory controls (in particular, the and recorded, and IMO ratification procedure. removal of dust from the atmosphere). experiences must be shared The Group’s managed terminals have seen the frequency rate of accidents with In the course of these investigations, materials to reduce the likelihood of work stoppages fall over the course of the year thanks to an effective preven- (consumables) containing asbestos were discove- Asbestos has been banned on French vessels similar incidents occurring. tion policy applicable to the entire scope. In 2017, several severe accidents at red on board certain vessels. since 2002, but is not banned in all countries. Ship Most workplace accidents the Terminals in question, which were analysed with a view to preventing similar construction contracts and the contractual condi- are preceded by near misses situations to those that gave rise to these accidents. Items containing asbestos derived from mainte- tions for purchasing consumables for ships clearly that should serve as a nance operations carried out by third parties or exclude any asbestos in the construction process warning. In 2017, CMA Ships Maritime Evolution 2016 - 2017 spare parts delivered by unscrupulous suppliers as well as in the parts delivered. An “asbestos free” recorded 1,916 near misses, that do not comply with the Group’s contractual certificate is issued for new vessels and parts that an increase of 91% Frequency rate of accidents at work terms and conditions. The Group immediately took are delivered. In addition, since 2013, CMA CGM has compared to 2016. - with sick leave -35% steps to protect crews, informed the competent au- required asbestos surveys from classification so- _ thorities (the flag state, class, seafarers’ healthcare cieties before the delivery of vessels built in South In the maritime scope, 2017 saw a further fall in the frequency rate compared service, and the labour inspectorate for RIF (French Korea, China and the Philippines in order to confirm with 2016, with a rate of 0.9 in 2017 compared with 1.63 in 2016. Furthermore, flag register) vessels), and the Health and Safety the complete absence of asbestos on board the ves- one fatal accident was recorded on the CMA CGM HERODOTE, also reported as Committee for French entities. sel. a major maritime incident. Accidents on board vessels involving seagoing employees are not the only -45% accidents recorded by the Company. Accidents involving shore-based employees accidents at work are also monitored, reported on and analysed. with sick leave for Terminals CARGO SAFETY • Dangerous goods within the meaning of international regulations (the IMDG The CMA CGM Group is required to transport highly diversified goods: non- (International Maritime Dangerous Goods) code) or national regulation CFR49, -35% manufactured products, consumer products and dangerous goods. Since under which transport is strictly controlled (segregation, temperature, stowage, Maritime accidents certain goods may present a hazard during transport, the Group has introduced etc.) at work - with sick leave a dedicated structure tasked with monitoring, evaluating and preventing the risks • Potentially hazardous goods requiring recommendations: chemical products associated with transporting goods. The Group accordingly divides goods into in controlled temperature containers (“Reefers”), the loading and receipt of three categories: heavy goods, etc. • Controlled goods subject to rules that seek to prohibit or control movement thereof. The Group is a founding member of the CINS (Cargo Incident Notification System), a communications platform for the largest shipping companies, which allows them to communicate very quickly on safety and security issues in connection with transported goods. The system has already significantly improved the quality of containerised goods transport. In addition, in June 2016, the international VGM (Verified Gross Mass) regulation came into force, under which containers must be weighed before being loaded. This regulation is intended to prevent accidents and containers being lost at sea. The Group planned for this regulation before it entered into force by modifying its information systems to electronically integrate the Verified Gross Mass of containers sent by customers. This data is communicated to the relevant people at each stage of maritime transport, leading to improvements in the safety of the transport chain.

Finally, the CMA CGM Group takes all necessary steps to prevent the illicit transport of goods in accordance with the Group’s various regulations and Code of Ethics.

These concern goods covered by the International Union for Conservation of Nature (IUCN), Appendix I of the Convention on Convention on International Trade of Endangered Species (CITES) and the Washington Convention, the United Nations Convention against Illicit Trafficking in Narcotic Drugs and Psychotropic Substances and the various United Nations Rules on goods subject to embargoes. The Group works closely with recognised organisations, such as BASCAP (Business Action to Stop Counterfeiting & Piracy) to combat the transport of counterfeit products and arms trafficking. 38 39 CMA CGM _ CSR 2017 CMA CGM _ CSR 2017

INTERNATIONAL SECURITY

At sea The CMA CGM Group implements all the legal, technical and human resources at its disposal to prevent and counter security threats at sea (piracy, trafficking, CMA CGM’s active etc). participation in Cindex In relation to piracy, particularly in the Indian Ocean and West Africa, a Cindex - Centre Inter- number of protective measures have been developed and introduced on board entreprises de l’Expatriation the Group’s vessels, combining passive and active protection. These measures, (Inter-Company Expatriation which are constantly adapted to changes in the nature of the threat, allow the Centre) is a privileged forum Group’s vessels to safely carry out their journeys. for exchanging and sharing In 2017, nearly 402 piracy incidents were recorded worldwide, including 302 good practices on interna- confirmed pirate attacks. Of these 302 attacks, the majority took place in Sou- tional mobility strategies th-East Asia and West Africa. 5 CMA CGM Group ships had to deal with piracy and policies for the major incidents over the past year, the most serious case leading to the capture of European groups, with a six crew members of a chartered ship off Nigeria. These crew members were global reach. Each member released after three weeks of negotiations. benefits from the experience of others, while retaining On land complete freedom over For several years, CMA CGM has been developing a global land security policy. their actions and decisions, Through the application of relevant and appropriate protective measures and and discussions are carried resources, this policy aims to reduce exposure to security, health, natural and out confidentially. It is a technological risks for the Group’s activities and employees throughout the genuine informal peer-to- world. CMA CGM is thus seeking to provide all employees with an optimal level peer network. It is based on of protection. mutual understanding and By way of example, countries are categorised into different criticality levels, trust, and the co-option of depending on the risks identified in each of them. For each country, appropriate members, thereby ensuring THE ENVIRONMENT measures are therefore put in place, both to secure the Group’s assets and to a forum of members with protect employees, whether they are local, expatriate or on secondment. shared concerns. PROTECTION Within the Group, 85 countries are classified as high-risk. Any person travelling _ to these countries must first be registered with the Group Security Department and briefed where necessary. In 2017, nearly 1,000 journeys to high-risk countries were managed. In addition, in 2017, the Group had to deal with 57 crisis situations, some of which required an ad hoc crisis cell. These situations were associated with natural disasters (hurricanes Irma, Maria, etc.), armed conflicts (Iraq, Syria, Libya, etc.), threats to certain employees and emergency medical evacuations.

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40 41 RSE 20

CMA CGM _ CSR 2017 CMA CGM _ CSR 2017

The environmentalGREEN SOLUTIONS DEVELOPED BY THE GROUP benefits of LNG LNG

LNG is a real technological breakthrough for the protection of the environment, and compared to current fuel-powered vessels it enables:

ENVIRONMENT

BLUE IS THE NEW GREEN Vessels of the future: Modern fleet with the Energy efficiency: MyCarbonfootprint: Marine environment: Environmental protection is a challenge and a major commitment CMA CGM chooses latest environmental the Group’s CO2 a premium solution to 0 major pollution LNG for its future technologies performance evaluate CO2 events and 0 for the Group, including the continued reduction of impacts, giant container ships improved by 10% emissions for our containers lost at sea new regulations on ballast water, air emissions and the growing in 2017 strategic customers LOW PRESSURE DUAL-FUEL ENGINE: expectationsEngine of fueled customers with gas and MGO and stakeholders. (less than 2% of MGO needed to create the spark necessary for its ignition) The objectives are structured around three main focuses: • energy and air emissions The CMA CGM Group places environmental protection at the heart of its • Preserving the oceans commitment to sustainable and responsible development. The major issues facing the Group include: continuous reduction of environmental footprint of • Innovation and development of ecological solutions all maritime and land-based activities, regulatory compliance and, above all, anticipate future regulations, development of more eco-efficient supply chains CMA CGM responds to each of these challenges through a fleet of modern ships, equipped with customers and partners. with eco-technologies and operated to minimise the environmental impacts. Modern fleet, equipped with the latest technologies The CMA CGM Group’s environmental policy has 3 strategic focus: •Air: climate change and air quality •Oceans: conservation of the oceans and marine biodiversity •Innovation: innovative and ecological solutions

ENVIRONMENTAL INNOVATIONS AND TECHNOLOGIES A reduction of up to 25% in CO ECOCONTAINERS 2 • BAMBOO FLOOR • LIGHT STEEL LIMITED AIR 24/7 FLEET NAVIGATION CENTER A 99% reduction• SOLVENT FREE PAINTS in sulphur emissionsPOLLUTANTS • ROUTING AND WEATHER OPTIMIZATION CMA CGM has chosen Liquefied Natural Gas • SLOW STEAMING CARGO HOLD BILGE LOW CONSUMPTION REEFER NOX, SOX The CMA CGM Group has chosen to equip its next nine giant 22,000 TEU ships A 99% reduction in fine particle emissions WATER HOLDING TANK with engines powered by Liquefied Natural Gas (LNG), with commissioning planned for 2020. An 85% reduction in nitrogen oxide emissions AMP For the first time in the history of containerised transport, a shipping com- pany has made an ambitious decision to choose pioneering technology for its ALTERNATIVE MARITIME POWER OPTIMIZED high-capacity vessels. SHORE POWER CONNECTION BULBOUS BOW

These new ships represent the culmination of more than seven years of work by The Energy Efficiency Design Index (EEDI*), which measures the environmental footprint MULTICHAMBER WASTE COMPACTORS teams of experts, engineers, sailors and close collaborations with a number of of a vessel, improves by 20% compared to a conventional vessel.TINFREE OPTIMISED HULL LINES NO INCINERATOR, NO WASTE AT SEA ANTIFOULING DOUBLE HULL PROTECTION technical and port partners. AIR SEALED COATING *energy efficiency design index comparedSTERN TUBE to a fuel-powered vessel The use of LNG has many environmental advantages over heavy fuel oil, such as

Exhaust gas by pass the significant reduction in CO2 emissions, the absence of sulphur oxide (SOx) TWISTED LEADING EDGE RUDDER FAST OIL RECOVERY SYSTEM emissions and the drastic reduction of nitrogen oxide (NOx) and fine particulate WITH BULB WATER BALLAST emissions. LNG vessels will be compliant with the IMO regulations that seek to OPTIMIZED TREATMENT SYSTEM PROPELLERS CHEMICAL FREE reduce sulphur emissions from 2020 onwards.

A genuine technological breakthrough for the protection of the environment, CO2 emission - energy efficiency LNG-fuelled vehicles have the following benefits over those currently powered ADDITIONAL BILGE GREY WATERS TANK WATER TANK by diesel: Ocean preservation ELECTRONICALLY CONTROLLED ENGINE ULTRA LOW SULFUR • 99% reduction in sulphur emissions AUTOTUNING ENGINE/ SELF AJUSTED ENGINE COMPLIANCE

• 99% reduction in fine particulate emissions Air quality • 85% reduction in nitrogen oxide emissions • CO2 reduction of up to 25% 42 43

2016 Annual Report

CMA-CMG RA16 Corporate_EN.indd 46 12/06/2017 10:41 CMA CGM _ CSR 2017 CMA CGM _ CSR 2017

Modern fleet, equipped with the latest technologies transported goods are the subject of requests from customers on the environment In 2017, the average age of vessels in the owned fleet was less than 8 years. and CSR. Every year, CMA CGM opens new buildings equipped with state-of-the-art en- vironmental innovations. At the same time, ships currently in the fleet are one As in previous years, most frequent customers request concerned the CO2 after another sent to dry dock to be upgraded bulbous brows retrofitting, pro- footprints of their shipments with CMA CGM. In 2011, the Group sought to peller changes etc., in order to ensure a uniform fleet. These technologies will meet this requirement by developing an eco-calculator that could estimate the be described in detail in the following sections: carbon footprint for maritime transport between two points worldwide. • Energy-related technologies: The eco-calculator is available on our website. ( cf page 47: Energy, emissions and air pollutant ) • Biodiversity technologies: To ensure reliability of data to our customers, the methods used in these CO2 ( cf page 50: Oceans: waste, pollution, lost containers and biodiversity ) reports has been verified and certified by KPMG, acting as an independent third party. Eco-containers – environmental innovations The CMA CGM Group runs a fleet of young and reliable container ships and Since early 2013, for every booking, customers connected to the e-commerce invests in innovative containers, thereby limiting its environmental impact. platform have been provided with a calculation and automatic display of the carbon footprint, both for maritime and land-based elements. Three technologies are used in these eco-containers: • Bamboo floor: so-called “dry” containers have a wooden floor on which goods In 2015, the Group developed an internal tool that generates customised are placed. The wood that has always been used takes 60 years to mature, and CO2 reports stating the carbon footprint for all single customer’s bookings, is now rare. A research has been carried out on new wood species and bamboo broken down by trade and by mode of transport. was chosen for its exceptional properties: bamboo regrows once it has been cut and it only takes 4 to 5 years to reach maturity. Today, 11% of the container fleet used by the Group (owned and leased) has bamboo flooring. • Low consumption reefers: reefers are refrigerated containers for perishable foodstuffs and products, requiring energy and refrigerant gases. Low consump- tion reefers have a more efficient motor that reduces electricity consumption and fuel consumption by up to two-thirds. Today, 63% of the reefer fleet used by the Group (owned and leased) comprises low consumption reefers. • Light steel containers: as robust as standard “dry” containers, light steel CUSTOMIZED CO2 REPORT containers are lighter to optimise fuel consumption and limit greenhouse gas emissions and air pollutants. Today, 3% of the container fleet used by the Group Keys to make your supply chain greener (owned and leased) comprises “light steel” containers. CO2COO2 report iss a usefulseful tool for customersmerse who want too monitorm FEATURES & BENEFITS Optimised transport solutions theirr logistics carboncarb footprintffootpprri per year, pepererr trade and per mmode, a Transport of goods by container ships has a lower tonne-kilometre carbon foot- fi rst step towards CO2 ememissionssioonso optimizatioop tion print than other potential modes of transport. This environmental performance #1 CO2 #2 is a key benefit for CMA CGM’s customers. Your carbon KPIs at a glance Evolu on of your emissions In addition to maritime transport and port operations, the CMA CGM Group designs and implements multimodal logistics solutions that combine river Detail of your global carbon A quarterly outlook of your CO2 footprint (maritime and inland) emissions and the distribution transport and rail and road transit. These pre- and post-transit solutions enable and related shipments in TEUs by transport mode (main liners, the Group to offer customers comprehensive transport solutions that are also feeders, inland) environmentally friendly. These services are offered by the CMA CGM’s Intermodal department and by its #3 #4 subsidiary, CMA CGM Log. For example, when launching the new RORO Morocco service, a numerical stu- Trade analysis Focus on POO/FPD analysis dy was carried out to determine the environmental benefits for the community A snapshot of your top trades An analysis of your n°1 door and preferred services ; their to door traffi c, allowing you to of replacing land transport between Morocco and France with a maritime route. performance and share in your compare the CO2 weight of the The factors that were analysed include the CO2 reductions, but also the nega- total CO2 emissions over the different services and modes period you favored and spot potential tive externalities avoided. At the end of 2017, a review showed that the loading CO2 savings rates for the RORO Morocco service were unsatisfactory and the decision was therefore taken to reduce this line and to re-develop it once the intermodal connections were better established and when market conditions were more POO #5 Malta Tanger Med favourable. New Delhi POL Mundra Jeddah POD Istanbul CMA CGM Environment and Sustainability News www.cma-cgm.com Customer solutions 0.538 0.619 0.465 0.270 0.318 CO2 Footprint (tons per leg) Maritime transport customers are increasingly asking for environmental information Inland (rail) Maritime leg 100% on EPIC Perf = 271 g / Teu-km Perf = 73 g / Teu-km on the services they buy. This trend is manifested by the growing number of loaders 993 km = 24% 11 385 km = 76% of total CO2 emissions of total CO2 emissions joining the Clean Cargo Working Group and by the increased importance of carbon Contact your usual sales representative to get footprints when customers are choosing a transport provider. Almost 20% of total your own personalized report 44 45 CMA CGM _ CSR 2017 CMA CGM _ CSR 2017

ENERGY, EMISSIONS AND AIR POLLUTANTS ENERGY EXPLOITATION Energy consumption

Due to the very nature of the transport business, which relies heavily on fossil fuels, energy consumption remains a major issue. It represents an economic, environmental and public health challenge for the Group and is carefully moni- tored by its various entities. The Group’s greenhouse gas or polluting emissions are directly linked to its energy consumption.

Indicators 2016 2017 Change Fuel consumption of the -10% 23

Energy / Loaded TEU (kg/TEU) maritime fleet22 ktonnes 5,883 7,783 32 % 23 The Group has been able to cut energy consumption per container Energy/loaded TEU by modifying bulbous bows, changing the propellers and fitting kg/TEU 459 413 -10% waste heat boilers. In 2017, the CMA CGM Group’s fuel consumption for maritime activity was 7,783 tonnes, an increase of 32% compared with 2016, as the 2017 figure includes the APL GROUP CO2 EMISSIONS scope. In terms of energy efficiency, there is a clear improvement in the quantity of fuel per transported container, with a 10% fall compared to 2016. Between 2005 and 2015

For several years now, the Group has undertaken numerous steps to reduce fuel consumption: renewal of the fleet, oversight and monitoring of consumption, reducing speed, optimisation of ships’ routes, technical improvements relating -50% to propulsion and hydrodynamism. • More specifically, in 2013 CMA CGM launched a programme to optimise its owned fleet primarily by modifying its bulbous bows. Carried out in dry dock, this change optimises the hydrodynamism of the vessels at the speeds at which they travel. These changes have already been applied to 60 vessels, including 8 in 2017. This innovation reduces fuel costs and CO2 emissions by 5% to 10%, respectively. Furthermore, the Group has also launched a programme for changing propellers with optimised energy efficiency. In 2017, 15 propellers were changed. Between 2015 and 2025 • In another example of steps taken to reduce energy consumption, CMA SHIPS restricts the main engines of its largest vessels to adapt to current sailing speeds. • In 2017, the Group launched a program to install recovery boilers for auxiliary engines (like for the main engines). Instead of burning hydrocarbons to produce -30% the required levels of steam, the boiler will recover the heat from the flue gases from the auxiliary engines, even when the main engine is at rest. 11 vessels are equipped with this technology. • Scope 1 includes the emissions linked to the Climate change consumption of fuel oil by owned and chartered ships and the fuel oil consumed by handling devices at the Evaluation of greenhouse gas emissions generated by the Group24 terminals in tonnes of CO2 equivalent • Scope 2 includes emissions resulting from the elec- Indicators Distribution tricity consumption of terminals, offices (branches and HO) and vessels connecting to the terrestrial Scope 1 88% power grid Scope 2 0% • Scope 3 emissions includes emissions from the construction of ships and containers, from the Scope 3 11% production of (solid and liquid waste by vessels, employee business travel, fuel consumption inherent The CMA CGM Group’s main source of greenhouse gas emissions is the in land-based transport and the upstream phase of combustion of fuel consumed by ships, which accounts for more than 88% of producing and transporting the consumed fuel the Group’s overall energy balance. The energy consumption (mainly electricity) _ of terrestrial activities (branches and terminals) is insignificant compared with the consumption of the maritime fleet. The main sources of the Group’s indirect CO2 emissions are the construction of ships operated by the Group and the production of fuel oil used by ships. In 2016, this represented approximately 11% of the Group’s CO2 emissions. CO2 emissions associated with the intermodal land transport of containers are negligible (<5%) compared with maritime transport emissions and are therefore not included in the table below. 22Overall maritime scope – Owned and chartered fleet – Annual consumption 2017 23 Loaded TEU = remunerative TEU 2017 – Finance In 2017, the fleet emitted 24.28 million tons of CO2, an increase of 32% on 2016, 24Scopes 1, 2 and 3 as defined by the Greenhouse Gas Protocol - http://www.ghgprotocol.org/ // Note that Scope 2 and 3 data are 2016 data, Scope 1 data is for 2017 due to the fact that APL was included in the group scope. At constant scope, 46 47 CMA CGM _ CSR 2017 CMA CGM _ CSR 2017

events and advise Captains in choosing a route and minimising risks. Major natural events are taken into account in our risk analysis and are included in our crisis management system.

Air pollution In addition to CO2, the Group is very concerned about sulphur emissions, nitrogen dioxide emissions and fine particulate matter. Since these emissions create issues for public health and air quality, increasingly stricter international Clean Cargo and local regulations are being enforced. Climate change is a major issue for maritime transport. According to the International Maritime Organisation26, these CO2 emis- sions represent 2.2% of worldwide emissions and are the subject of numerous discussions at the level of regional and international In October 2016, the IMO set a global limit of 0.50% for sulphur contained in the regulatory bodies. 2016 was marked by COP 21 (21st Conferences of the Parties) that resulted in an historic agreement to maintain fuel used on board vessels, to apply from 1 January 2020. This will significantly global warming under the 2°C limit, establishing bold objectives for many countries and mechanisms to fund and inspect these reduce the amount of sulphur oxide emitted by ships and should have signifi- commitments. In terms of the negotiations, there was debate over whether to include maritime transport in the agreement. The cant benefits for the planet, particularly for people living near ports and coasts. IMO subsequently committed to setting an ambitious target for the sector. At the most recent meeting of the MEPC (Maritime This regulation follows the implementation of Annex VI of the MARPOL Conven- Environment Protection Committee) in October 2016, the IMO adopted a regulation on the reporting of CO2 emissions, a key tion on combating air pollution by ships. component of its strategy to reduce CO2 emissions, including, in the long term, the implementation of auditing, financial and CMA CGM pre-empts and considers any technical solutions that may reduce technical mechanisms. these emissions, such as the use of low-sulphur fuel, installing scrubber systems In parallel, in 2015, the European Parliament adopted the Monitoring, Reporting and Verification (MRV) regulation on CO2 on vessels and any alternatives such as LNG propulsion. emissions from maritime transport, which requires shipping companies to report CO2 emissions from, to and within the European Since 1 January 2015, the Group has cut its sulphur emissions in northern Union from 1 January 2018. Europe, North America and the Caribbean to comply with the new ECA regula- Through the CCWG - Clean Cargo Working Group, a voluntary discussion and standardisation platform, shipping firms and major tion (Emissions Control Area) instituted by the IMO. customers are helping to develop standard methods of calculating air emissions in the sector. With a view to meeting regulatory requirements and customer needs, CMA CGM began using this method28 in 2008 to create a In 2017, the average sulphur level of fuel purchased by the Group was approxi- monitoring system for its CO2 emissions and performance (g/TEU-km) which is checked by an independent accredited mately 2.42%. organisation29. In addition, since 1 January 2017, in California, local regulations have required 26 Third IMO GHG Study 2014: http://www.iadc.org/wp-content/uploads/2014/02/MEPC-67-6-INF3-2014-Final-Report-complete.pdf. shipping companies to use on-shore electrical power at berth for 70% of vessels 28 CCWG methodology without taking into account the distinction between dry container and reefer container. at a Californian port of call, rather than using on-board engines, compared 29 Audits KPMG Audit en 2017. with 50% applied since 2014, leading to reductions in fuel consumption and, _ consequently, air emissions. For this reason, six CMA CGM vessels were equipped with a power grid connection system. the increase was 4%. CO2 emissions per container fell by 10% compared to 2016. Certain atmospheric emissions from the Group’s maritime activity are China has defined emission control areas (ECAs) in its territorial waters, in independently verified by a third party, on a voluntarily basis. order to address the recurring problems of pollution in China. This environmental programme took effect on the 1st of April and requires vessels to use low- Indicators 2016 2017 Change sulphur fuel with a sulphur content of no more than 0.5%. Since 1 April 2016, the Group’s vessels calling at the Shanghai, Ningbo-Zhoustan, CO2 emissions25 Suzhou and Nantong ports have been required to switch to a fuel with less than Million tonnes 18.4 24.3 32 % 0.5% sulphur content upon docking and at berth. CO2 /loaded TEU 26 Tonnes / TEU 1.43 1.29 -10 % The next stage in the Chinese environmental programme will be implemented in 2019. All vessels will be required to comply with a maximum sulphur content of 0.5% as soon as they enter the applicable waters. Climate change is a major issue that will eventually lead to more technical, regu- latory, financial and operational constraints, but will also create new opportuni- ties for responsible and sustainable maritime transport. Indicators 2016 2017 Change In 2015, the Group achieved its 2005 objective of reducing its CO2 emissions Sulphur oxide or SOx emissions per TEU-km by 50%, and a new reduction target was set by the Group: a ktonnes 279 378 35% reduction of 30% CO2 per TEU transported by 2025. In 2017, CO2 emissions per transported container were reduced by 10%. Nitrogen oxide or NOx emissions27 ktonnes 500 667 33% Adapting to climate change One of the consequences of climate change that could physically impact the In 2017, SOx and NOx emissions from the fleet were 378 thousand tonnes and Group’s operations is extreme weather events or a rise in sea level that may 667 thousand tonnes, respectively. There was a 35% increase in SOx emissions pose a risk for both our ships and the Group’s terminals within ports. For the compared with 2016 due to the integration of APL and due to the increase in maritime activity, the Navigation Centre’s role is to anticipate extreme weather total consumption.

25 Overall maritime scope, 2017 Finance Owned and chartered fleets 26 Loaded TEU = remunerative TEU 2017 Finance 27 Global Maritime Scope - Owned and chartered fleet - 2017 - Finance 48 49 CMA CGM _ CSR 2017 CMA CGM _ CSR 2017

CMA CGM’S POSITION REGARDING TO THE SULPHUR CAP 2020 fuel that contains water and heavy metals. It must be centrifuged on board before being used. The centrifugation process requires water to be added to the water and heavy metals extracted from the fuel.

All this waste is the “sludge”, and is considered hazardous waste. It is unloaded on land and managed by land-based waste streams. CMA CGM deals with sludge generated by the owned fleet but the charter partner deals with sludge generated by chartered vessels. They may be dealt with either the ship-owner or the charterer.

A team responsible for monitoring the unloading of sludge was put together in June 2015, which enabled the method used to assess the quantity of sludge produced to be refined. For 2017, a ratio of 2.4% of consumed fuel was used to calculate the total quantity produced.

Indicators 2016 2017 Production of solid waste by owned fleet Thousands of tonnes 1428 1829 Total fleet sludge production Thousands of tonnes 118 187

The waste produced by the CMA CGM Group’s offices and branches is compa- rable to that produced by traditional office activities. In dry ports and termi- nals, the waste produced is mainly non-hazardous waste (pallets, wood, plastic film) and represents less than 1,200m3 per year across the Group’s consolidation scope (Finance).

Accidental discharges to the sea Accidental discharges to the sea and in particular pollution from hydrocarbons lin- ked to the Group’s vessels or terminals represent the most significant environmental risk. A set of measures is in place to prevent this risk, such as fleet maintenance, routine drills and simulations between land and vessels, and a strong crisis mana- OCEANS: WASTE, POLLUTION, gement policy. CONTAINERS’ WASTE AND BIODIVERSITY

Production of waste on board The property fleet produces different types of waste: • Solid waste made from food waste, household waste, maintenance waste • Liquid waste consisting of waste water (sewage), oily water and sludge. In respect of solid waste, the Group has launched an innovative, ecological and exemplary approach that goes beyond the requirements of the MARPOL regulation: the “Green Ship” Programme. All of the Group’s owned ships now participate in this programme.

This initiative revolves around four key points: 1. Selective sorting of all waste 2. The removal of incinerators in favour of new generation compactors, eliminating the emission of polluting gases 3. The formal prohibition of throwing any waste overboard (excluding food) 4. Optimising waste recycling on land

The quantity of waste produced is continually monitored and reported. Specific trainings are carried out both on board and on land.

All owned vessels are currently committed to this programme. On average in 2017, vessels produced less than 10m3 of waste per month. The programme also allows for exchange on “good practices” or “difficulties encountered” with vessels. Ports that collect waste for recycling are listed by the type of waste they collect (ink cartridges, plastic, etc.), while certain other ports are not recommended. The aim is to draw up a central map of ports that provide the best selective sorting process. 28 13,860 = 110 owned vessels at end of 2016 x 12 months x 10.5 m3/month Liquid waste is primarily from fuel. The fuel used on board ships is a “residual” 29 CMA Ships scope excluding: AML, BS, NSB, MERCOSUL, CPOFund and CNC 50 51 CMA CGM _ CSR 2017 CMA CGM _ CSR 2017

There are several types of marine pollution: According to the World Shipping Council33 , 2,000 containers were lost at sea • Fuel worldwide every year from 2006 to 2013 primarily due to difficult sailing condi- • Oil tions or an exceptional accident. In 2017, the CMA CGM Group recorded no • Chemicals containers lost at sea. • Sludge Prevention of this pollution relies on on-board equipment, human management, The loss of containers at sea is generally linked to poor stowage of containers procedures and controls. associated with the shipper under-declaring container’s weight. The risk Firstly, the vessels are equipped with “SOPEP” equipment, comprising disper- is increased in bad weather. All resources are deployed to avoid contai- sants, cloths, sawdust, protective goggles, a shovel, buckets, a portable pump, ners being lost: weather monitoring, the navigation centre, weather routing, absorbent tape, gloves, bags, etc. on-board container securing system. The CMA CGM Group has engaged Liquid discharges are controlled by instruments that comply with regulations, discussions with Armateurs de France (French Shipping Association) and the such as an oily water separator. This controls the maximum authorised concen- competent authorities in order to reduce the risk of losing containers at sea. tration of hydrocarbons in water discharged into the sea while the vessel is travelling i.e. 15 ppm. Some ships are equipped with a 5 ppm separator. Protecting biodiversity Human management and procedures play a crucial role in preventing pollution. Biodiversity protection mainly lies in managing the risk of liquid releases or The teams have partnerships with: solid waste at sea. But, container ships can potentially impact biodiversity • Le Bataillon des Marins Pompiers: fire and pollution drills are organised on because they transport ballast water or as a result of collisions with cetaceans. board so that improvements may continually be made. • Le Cèdre: Documentation, research and experimentation centre on accidental Ballast tanks are receptacles filled with seawater located on either side of a ship, water pollution. Employees attend an annual training at this Brest-based orga- acting as ballast to ensure structural stability and integrity. The ballast water nisation. contains living species which, when released, may disrupt local fauna and flora • Specific bodies, such as ECM, act as a point of contact between the Group and balance. The Water Ballast Management Convention adopted by the IMO in the American Coastguards. February 2004 was ratified in 2016 and entered into force on 8 September 2017. In addition, many fleet vessels are equipped with the Fast Oil Recovery (FOR) system. (See details in the biodiversity section). CMA CGM pre-empted the entry into force of this convention by equipping as many new vessels as possible with a ballast water treatment system. This discharges water into the sea that is completely free from any living organism Impact Description CMA CGM that may impact marine biodiversity. In parallel, the US has also introduced local D Very high Significant volume discharged regulations on the treatment of ballast water. It has approved six ballast water Very large and/or multiple polluted areas 0 treatment systems that comply with US regulations, which are more stringent than international regulations. The Group’s ships are equipped with approved C High Volume of hydrocarbons discharged > 5,000 Litres systems and will be required to treat their ballast water using one of these Significantimpact 0 systems before discharging it into US waters. The Group has devised a schedule B Average Volume rejected > 100 Litres for installing these systems on its owned fleet, in accordance with requirements Localised pollution 0 of the international convention and American regulations. 72 Group ships are already equipped. A Low Volume rejected ≤ 100 Litres Minimal impact on the environment 7 In addition to the ballast water treatment system, the owned fleet is equipped with a number of technologies to limit its impact on biodiversity. Number of incidents30 resulting in accidental discharges into the sea31: in 2017, no significant discharge by CMA CGM’s owned vessels was observed. Never- The “Fast Oil Recovery System”, a pollution management technology, is a theless, seven incidents had an impact on the environment but all remained simple, reliable and safe system that recovers hydrocarbons in the hold without low-risk. needing to penetrate the ship’s hull in the event of the ship being grounded. 51 vessels are equipped with this technology. Containers lost at sea Until 2010, the fuel on container ships was generally stored in the hulls of vessels, protected by a single seal. Since the MARPOL 12A rule entered into Indicators 2016 2017 force (~2010), double seals have been used. The installation of a second wall Containers lost at sea32 7 0 around fuel tanks prevents from the risk of maritime pollution in the event of a collision or if vessel’s hull is punctured.

Additional tanks allow bilge water, machine water and grey water to be treated. In addition, the deck equipment is fully electric to avoid any leakages of hy- draulic fluid.

In parallel, several programmes have been introduced in the United States and Canada for the protection of marine cetaceans. On the East Coast of the United States and Canada, CMA CGM vessels are required to reduce their speed to a maximum of 10 knots in certain areas recognised as breeding grounds for ma- rine cetaceans. Also, on the West Coast, CMA CGM has voluntarily committed to the «Green Flag» speed reduction programme that was introduced in the sanctuary near the Santa Barbara Islands. The port of Long Beach rewarded CMA CGM for dropping the speeds of its container ships at both:

32 Containers lost by CMA CGM owned vessels are recorded, but containers lost on chartered or partner vessels are excluded. Note that containers that fall into the water at a port and are then recovered are not 30 Incidents recorded regardless of whether CMA CGM is responsible recorded 31 Exclusion of containers lost at sea 33 Survey Results for Containers Lost At Sea – 2014 Update- World Shipping Council 52 53 CMA CGM _ CSR 2017 CMA CGM _ CSR 2017

• 40 nautical miles from the port Circular economy • 20 nautical miles from the port The circular economy is an economic concept that forms part of sustainable development, the aim of which is to produce goods and services while limiting Furthermore, with the Fleet Navigation Centre’s help, the Group monitors the the consumption and waste of raw materials, water and energy sources. areas where lower speeds are recommended. Wherever possible, the Group As a transport and logistics operator, CMA CGM Group is a fully-fledged player strives to lower its speeds and thus, limits the risk of collision in these cetacean in the circular economy, working at all stages in the transport of raw materials, protection sanctuaries. intermediate and final consumer products, products at end of life, depending on the needs of its customers. The Group pays particular attention to the To limit the transport of endangered species, the Group has implemented responsible use of resources, raw materials and consumables. Further information procedures that raise alerts about this type of cargo (cf page 38 Cargo safety). are available in the Environment section of this report.

OTHER ENVIRONMENTAL ISSUES

End-of-life ships End-of-life ships are potentially a major issue for the industry, given current MANUFACTURE dismantling practices and the materials used to build ships. Pending the ratification of the Hong Kong International Convention, in 2008 the Group CMA CGM CMA CGM started to put together inventories of hazardous materials (“IHMs”) on board ships, which will soon be mandatory. The Group has proactively implemented an extensive plan to put together or update IHMs for the entire owned fleet. The Group is continuing its regulatory and technical monitoring, as well as research with dismantling sites in Europe and Asia. The sites are audited and certified in Circular economy line with the guidelines, as required by the Hong Kong Convention. It should be in the CMA CGM noted that the Group fleet is one of the youngest in the sector and the vessels RECYCLING Group DISTRIBUTION are generally sold well before their end of life. Nevertheless, when a ship has to be sent for dismantling, the group takes steps to send it to a dismantling site that complies with international and local health,

safety and environmental regulatory standards. CMA CGM CMA CGM

CONSUMERS

ENVIRONMENTAL INITIATIVES AND AWARDS

2017 environmental awards As part of a wide range of voluntary initiatives to help protecting the environ- ment, the group receives awards every year for its environmental commitment, END-OF-LIFE SHIPS both from customers and local authorities. The 2017 highlights were as follows:

• The CMA CGM Group was recognised by the Environmental Vessel Index Systematic inventory of Dismantling sites audited (ESI) in Europe, the United States and Asia, an obtained ISO 14001 certification hazardous substances on and certified in line with the in Spain and Green Flag certification in California. In total, over 14 ports world- board guidelines required by the wide rewarded the technical performance and environmental approach of the Hong Kong Convention group’s ships.

• February 2017: in California, the group participated in an initiative launched in 2016 by local and national stakeholders in the marine and environmental Water consumption sphere that aimed to reduce air pollution and protect whales during their annual Water consumption is not a significant issue for the CMA CGM Group’s migration periods. maritime transport activity. The water consumption of ships is effectively neutral as seawater is pumped, desalinated and processed for everyday use • May 2017: The CMA CGM Group has been IWAY certified since 2009. After on board. CMA CGM, it is now APL’s turn to comply with the IKEA standards on the envi- As for dry ports and Terminals34, water consumption is mainly linked to ronment, working conditions, safety and ethics, a mandatory procedure for all the washing of handling vehicles and quays. Many sites are located close IKEA suppliers, a precursor in terms of a sustainable development policy. to other port industries that generate a lot of different types of dust and require working environments to be frequently washed. In 2017, over the • August 2017: CMA CGM received an award from the Port of for Group’s scope of consolidation, total water consumption was approximately its participation in the Vessel Speed Reduction Program. 97,441m3. Terminals may be located in industrial complexes that generate continuous • 22 and 29 August: as they both passed through the new Panama Canal locks, dirt, leading to significant consumption at certain sites. the CC J. ADAMS and the CC T. ROOSEVELT were given the Green Connection Award. This award recognises the Group’s commitment to reducing emissions as well as its contribution to protecting and preserving the environment.

34 Terminals subject to the CMA CGM HO SSE Terminals policy (a total of 18 terminals) excluding the Lattakia, Umm Qsar, Duch Harbor, TMG, Alterco, Manuco and Udemac Terminals. • On 13 November 2017, APL was named Best Green Shipping Line by HAROPA, 54 55 CMA CGM _ CSR 2017 CMA CGM _ CSR 2017

Other proactive French ports of Paris Seine Normandie. This award recognises APL’s exemplary environmental initiatives environmental performance in reducing atmospheric emissions above and beyond the standards set by the International Maritime Organisation.

Environmental initiatives The CMA CGM Group is an active member of a number of varied environmental programmes focused on preserving the oceans, protecting wildlife, air quality, ESI FOCUS – ENVIRONEMENTAL SHIPPING INDEX etc. It also participates in social programmes alongside these purely environ- mental initiatives, such as EcoVadis certification and Biceps ratings. The ESI is a voluntary system measuring en- the same for all ports but the incentive system Charte Bleue – Armateurs vironmental performance of ships based on is at the option of each port. The platform is de France is a Charter that NOx, SOx and CO2 emissions. as well used as an evaluation base for 2 Nor- seeks to ensure safety at sea _ ESI provides a rating basis for an incentive th American port initiatives ie: PANYNJ Clean and promote respect for the system (mainly lower port charges for envi- Vessel Incentive Program in NEW YORK and environment: prevention and ronment-friendly ships). Score calculation is the EcoAction Port Metro Vancouver. management of pollution risks, reduction of green- house gas emissions and effective waste management.

CDP - Carbon Disclosure Project - is a not-for-profit charity that runs the global disclosure system for inves- tors, companies, cities, states and regions to manage their environmental impacts.

Club Déméter brings together stakeholders in the logistics chain to develop sustainable logistics practices through experimentation and collaboration. _

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THE GROUP’S SOCIETAL ENGAGEMENT ON GLOBAL AND LOCAL SCALES

Containers of Hope Over 20 projects in favour 2017 Call for Proposals: Involvement of the Group 121 containers in 2017, 600 of local communities carried 51 applications received, in emergency aid activities since the beginning out in 2017 by CMA CGM 13 associations selected following natural disasters of the operation employees

The Group’s activities extend to more than 140 countries. The Group is com- mitted to human rights and is committed to participating in the social and eco- nomic development of the countries in which it operates and contributing to the economic and social development of those countries through investments that lead to the creation of new jobs and business opportunities. Alongside its business activity, the Group carries out civic initiatives involving the pro- vision of financial or in-kind support to NGOs and local associations through the Foundation and also employee initiatives. It also participates in community projects following natural disasters through emergency action projects.

THE CMA CGM CORPORATE FOUNDATION

The CMA CGM Corporate Foundation was established in 2005 by Naîla Saadé to support projects aimed at children. Since being established, it has supported over 200 associations. Its mission is to encourage the personal development of children with disabilities, improve the daily lives of children with illnesses and promote equal opportunities for young people from disadvantaged backgrounds. Through the Containers of Hope campaign, it is facilitating humanitarian transport operations for the most vulnerable children all over the world.

Containers of Hope In 2017, the Foundation renewed its humanitarian transport campaign, Contai- ners of Hope, under which the CMA CGM group offers NGOs around one hun- dred containers per year on its ships to help people in conflict zones or subject to health and humanitarian risks. The first campaign was launched in October 2012 with Action Against Hunger and Médecins Sans Frontières and then ex- panded in 2014 to include Handicap International and the French Red Cross.

Between the start of the campaign and the end of 2017, 600 containers repre- senting nearly 4,000 tonnes of humanitarian equipment have been transported to NGO partner programmes, located in more than thirty different countries, mainly in Africa - including 121 twenty-foot equivalent containers in 2017. The supplies have helped fight child malnutrition, improve access to water and satisfy the healthcare needs of the most vulnerable populations and mostly children.

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CONTAINERS OF HOPE OPERATION Support to associations 13 associations supported in France and Lebanon in 2017 following a call for proposals - the Foundation Award In 2017, the Foundation continued to support projects aimed at helping vulne- rable childhood in France and Lebanon. It launched its fifth themed call for COUNTRIES THAT BENEFITED proposals focused on projects aimed at improving the daily lives of ill children who are victims of trauma. The various projects run by these associations will enable help to reach 3,200 children. FROM CONTAINERS OF HOPE Of the 51 applications received, the Board of Directors ultimately selected 13 associations (8 in France and 5 in Lebanon), with financial support of €140,300: The Foundation gave its 2017 Award to two charities > In France (Provence Alpes Côte d’Azur region): that work with vulnerable - Tout le Monde contre le Cancer for support with the “Toques en Truck“ (chefs in children. trucks) operation, in which renowned chefs lead cooking demonstrations at the Hospital in Aix-en-Provence for children with cancer and their families. > In respect of France, the - PREMA (Protection, Résilience, Education, Médiation, Art-thérapie) for the Foundation Award was acquisition of a 9-seater vehicle for school transport, cultural outings, meetings given on 7 December 2017 with social workers, placement hearings, meetings between parents and to the charity SOS Villages children and for children taken in by the association who are victims of serious d’Enfants whose mission is abuse. to reunite siblings so that - SOS Villages d’Enfants for the development of a Family House in the SOS brothers and sisters are village in Marseille intended for meetings between parents and children and for not separated as a result the long-term hosting of siblings pursuant to court orders. of court decisions and can - Sourire à la Vie to equip and fit out the Phare des Sourires centre in Marseille, grow up together in a real a day care centre, sports and leisure centre, a full-board accommodation centre, family environment. and a place of care and rehabilitation for children being treated for cancer, in _ remission or in palliative care. - Compagnie Après la Pluie for the creation of 1,000 books/videos, and the creation, printing and production of books produced during the association’s visits to hospital, based on stories created by children with cancer. - Héroïc Séjours for the acquisition of sound, light and projection equipment, decorations, costumes, accessories and IT equipment for individual and group sessions in which children are given the opportunity to create or participate in a fantasy history of which they are the hero. - Le Gai Rire for the purchase of computer and office equipment, musical instru- ments, accessories and costumes for clown shows mainly at the maternity and children unit at the CHU Nord de Marseille (North Marseille University Hospital). - Mécénat Chirurgie Cardiaque for the management of operations (pre- and post-operative check-ups, surgery, ambulance transport) at the Timone hospi- tal for two children suffering from serious heart disease from countries where they are unable to be treated.

> In Lebanon: - CHANCE (CHildren AgaiNst CancEr) to fund treatment for newborn babies,

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children and young people in Lebanon and, since 2011, Syrian and Iraqi refugees, the Foundation to finance a Christmas party for sick children in Aix hospital, in suffering from cancer (blood disorders, lymphoma, leukaemia) at the Hôtel Dieu France. de France. • The association 1, 2, 3 Soleil for two tablets donated for the annual end-of- - Heartbeat for surgical operations at Saint Georges Hospital in Beirut for year tombola, with proceeds going to sick and disabled children. Lebanese, Syrian and Iraqi children and newborn babies born with heart defects. • Médecins Sans Frontières (Doctors without Borders) France to buy medical - Assameh for contributing to the purchase of CT scanner for the Paediatric De- equipment for a paediatric intensive care unit at the new hospital opened by partment of the Karantina Hospital in Beirut, where diagnosis avoids the risk of MSF near the Syrian border in Lebanon. disability for premature babies and hospitalised children suffering from conge- • The association Assameh to develop its paediatric care unit at the Hôpital nital heart disease. Gouvernemental de la Quarantaine in Beirut. This unit looks after premature - Mission de vie for the development of an anger room in which young offenders children suffering from chronic illness. and trauma victims can neutralise their aggression with the help of music, televi- • The association Les Enfants de la Méditerranée and its partner Amel Association sion, painting and various games. International for the pre-carriage in France of a shipment to Lebanon with - Les Enfants de la Méditerranée (L.E.M.) for a circus skills initiation programme essentials for Lebanese children and Syrian refugees. aimed at children and young refugees from Syrian, who do not attend school, in • The association Relais Enfants Parents PACA with a contribution to a Christ- 8 camps in the South of Lebanon. mas party for the children of prisoners in Baumettes prison. • The association A.T.L.A.S to buy the special sports equipment required to Moreover, the Foundation awarded seven exceptional subsidies in 2017 to the organise badminton lessons geared to autistic children. following: • the association Un Maillot pour la Vie: although it was not selected in the Cultural events sponsorhip 2017 call for projects, this association requested an exceptional subsidy from The Foundation remains committed to sponsoring cultural events. - As such, in 2017, it renewed its sponsorship of the educational activities at the Aix-en-Provence Festival. - It sponsored the concert given by Renaud Capuçon and Khatia Buniatishvili, at the Festival Al Bustan on 1st March in Beirut. - It sponsored the concert of Ibrahim Maalouf at the Baalbeck Festival on july 22. - As part of the Festival International de Piano de La Roque d’Anthéron, it sponsored the piano recital given by Anne Queffélec and the Sinfonia Varsovia (Mozart) on 13 August in the Parc du Château de Florans. 50 spaces for this recital were provided to CMA CGM employees.

In 2017, the Foundation organised events for the charities it supports and for CMA CGM employees.

> On October the 9th, International Day of Persons with Disabilities, the Foundation organised a round table discussion in Marseille dedicated to disabilities, attended by three charities supported by the Foundation: 13 Accessible, ADAPEI Var Méditerranée and TCAP21. 30 employees from Marseille participated in the round table and discussed improvements made to the daily lives of people with disabilities, as well as their families, the difficulty of changing opinions on disabilities, the lack of suitable facilities for wheelchair users, and the various difficulties encountered in terms of inclusion at educational establishments and in the workplace.

> Throughout the year, tours of works of art displayed in the CMA CGM Tower were organised for employees in Marseille. Around 700 people took part.

ACTIONS AU SEIN DES COMMUNAUTÉS LOCALES Pour CMA CGM, une action locale est une initiative bénévole, ponctuelle ou récurrente, portée par une entité CMA CGM, impliquant les collaborateurs CMA CGM, ayant pour thème l’environnement, le social ou le sociétal et impactant directement les communautés locales dans lesquelles le Groupe ou ses filiales sont impliqués. Cette année, le Groupe s’est engagé dans plus de 20 actions en

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EMERGENCY RELIEF – NATURAL DISASTERS ACTION TAKEN WITHIN LOCAL COMMUNITIES

In times of crisis, the CMA CGM Group works in conjunction with governments For CMA CGM, local action may be a voluntary, one-off or recurrent initiative, and humanitarian organisations on a worldwide basis to provide aid to affected carried out by a CMA CGM entity, involving CMA CGM employees, that has an populations and meet their immediate basic needs. By offering their logistical environmental, social or societal theme and a directly impact on local communi- Launch of the Humanitarian Services Office expertise in transporting equipment and by collecting donations in kind (wa- ties with which the Group or its subsidiaries are associated. This year, the Group ter, food, clothes), CMA CGM teams seek to improve the situations of extre- is committed to more than 20 local community actions. At the end of 2017, CMA CGM decided to mely vulnerable people and have shown their willingness to help those with the The following map illustrates some of this years initiatives: launch the Humanitarian Services Office as greatest needs. a single entry point for international organi- Here are a few examples of actions taken in 2017: _ sations and non-governmental organisations. • In 2017, when cyclone Debbie hit the Coast of Northeast Australia, the Group This office allows the Group to offer transported 160 containers of supplies. “bespoke” solutions to organisations working • After hurricane Irma tore through the French West Indies, CMA CGM rallied in emergency situations and, in particular: to help victims and participate in the reconstruction effort. The group provided • Provides them with direct access to CMA a vessel to transport 46 office containers needed in the construction of camp CGM’s services and global branch network accommodation, several vehicles and food. Despite the difficult conditions, the • Centralises and rationalises their specific CM ACGM vessels were the first to arrive at the island of Saint Martin. The Group transport needs and requirements also transported 400 tonnes of essential items such as drinking water, medi- • Provides them with professional advice cines, food and safety equipment. thanks to the Group’s experience • To Puerto Rico, which was devastated by hurricane Maria, the Group trans- and expertise in handling logistics issues ported a container filled with water and ice for the refrigeration of food and • Offers them guidance on the shipping medicines with a view to avoiding the potential spread of epidemics. of humanitarian aid supplies through appropriate transport methods and reliable, end-to-end solutions and implementation methods at competitive prices • Helps them to maximise the effect of the aid they provide and to contribute to their mission to overcome humanitarian crises. Since the Humanitarian Services Office was launched, NGOs and international organisations have welcomed the initiative and worked with the office on a daily basis to devise appropriate solutions. In the last few months of 2017, the office arranged the humanitarian transport of around 10,600 twenty-foot equivalent containers. _

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TABLE OF INDICATORS

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GRI code Indicators 2016 2017 Scope

G4-9 Employees 32,500 34,647 100% of the consolidated Group workforce

G4-10 Breakdown by gender (%) 61% Men 57% Men 100% of the C&Me shore-based workforce - 81% 39% Women 43% Women of the consolidated Group workforce

G4-LA9 Number of hours of classroom training 49,158 42,353 French shore-based employees and French seagoing employees, (11% of the consolidated Group workforce)

Number of hours of distance training 45,507 51,184 Global shore-based employees, i.e. 81% of the consolidated Group workforce

Number of training hours Not available 214,692 Seagoing employees with an employment contract (fixed or indefinite term) with CMA for international seagoing employees Ships Singapore PTE Ltd.

(12% of the consolidated Group workforce)

G4-EC1 Payroll - M USD 1,243 1,699 Scope of financial consolidation

G4-LA6 1 1 Owned fleet and Terminals subject to the CMA CGM HO SSE Terminals policy excluding the Lattakia, Fatal accidents Umm Qsar, Alterco, Manuco and Udemac Terminals

G4-LA6 Frequency rate of workplace accidents 1,63 0.9 Owned fleet GLOSSARY

G4-LA6 29,5 19.1 Terminals subject to the CMA CGM HO SSE CO2 Carbon dioxide Frequency rate of workplace accidents Terminals policy excluding the Lattakia, Umm Qsar, Alterco, Manuco and Udemac Terminals CRM Customer Relationship Management ECA Emissions Control Area Terminals subject to the CMA CGM HO SSE LNG Liquefied Natural Gas G4-EN3 Energy consumption (ktonnes) 5,883 97,441 Terminals policy – In 2017, excluding Lattakia, MOU Memorandum of Understanding Dutch Harbor, Umm Qsar, Manuco, Alterco CSR Corporate Social Responsability and Udemac. Note, however, that electricity OAN Obligatory Annual Negotiation consumption is not reported for the SAMR and NOx Nitrogen Oxide Dutch Harbor terminals IMO International Maritime Organisation NB: in 2016, only 4 terminals were part of the NGO Non-Governmental Organisation scope, i.e. GMG, GMM, Intramar SA &STS and RIF French Flag Register Marseille Manutention, excluding the Lattakia RPS Psycho-Social Risk Terminal SIRH Human resources information system SOx Sulphur Oxide G4-EN15 CO2 emissions (millions of tonnes) 18,4 24.3 Owned fleet and chartered fleet TEU Twenty foot Equivalent Units G4-EN15 NOx emissions (ktonnes) 500 667 Owned fleet and chartered fleet ESU Economic and Social Unit VIE International Work Volunteering G4-EN15 SOx emissions (ktonnes) 279 378 Owned fleet and chartered fleet PSC Port State Control G4-EN8 Water consumption (m3) 5,784 5,065 Terminals subject to the CMA CGM HO SSE BDN Bunker Delivery Notes Terminals policy excluding the Lattakia Terminal IMS Integrated Management System and Umm Qsar, Duch Harbor, TMG, Alterco, ILO International Labour Organisation Manuco and Udemac MLC Maritime Labour Convention

G4-EN15 Major pollution 0 0 Owned fleet CSSF Container Ship Safety Forum BASCAP Business Actions to Stop Counterfeiting & Piracy

G4-EN12 Container loss 7 0 Owned fleet ISM International Safety Maritime MACN Maritime Anti-Corruption Network 10.5 9.9 G4-EN23 Waste (maritime) Owned fleet CINS Cargo Incident Notification System m3/vessel/month CSSF Container Ship Safety Forum CINDEX Centre Inter-entreprises de l’Expatriation (Inter-Company Expatriation Centre) 68 69 CMA CGM _ CSR 2017 CMA CGM _ CSR 2017

This report is an excerpt of the 2017 RSE report of the CMA CGM Group, in compliance with Article 225 of the Grenelle II Act.

All information presented constitutes a methodology note, stating the scope and limitations. This report was verified by an independent third-party organization.

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