VITALITY & RESPONSIBILITY DECLARATION OF EXTRA-FINANCIAL PERFORMANCE 2018

4, boulevard de Mons - 59650 Villeneuve d’Ascq developpement-durable.decathlon.com CHALLENGES PEOPLE & PRODUCTS & STRATEGIES MANAGEMENT & SERVICES

3...... EDITORIAL 21.....PUTTING PEOPLE 45....DELIVERING INNOVATION AT THE HEART AT EVERY LEVEL 4...... DECATHLON IN FIGURES OF OUR GROWTH 49.....EXPANDING 6...... 2018 HIGHLIGHTS 26.....READY FOR RESPONSIBILITY ECO-DESIGN 8...... OUR BUSINESS MODEL AND FREEDOM FOR OUR PRODUCTS

10.....OUR MAIN 31.....DEVELOPING 54....OFFERING PRACTICAL EXTRA-FINANCIAL RISKS SKILLS AND AND ECO-FRIENDLY SERVICES ..... UNCOVERING TALENT 12 OUR NEW 59.....CREATING SAFE, MATERIALITY ANALYSIS 35....DELIVERING HEALTH HIGH-QUALITY PRODUCTS 14.....OUR SUSTAINABLE AND SAFETY DEVELOPMENT AMBITIONS 38....ATTRACTING, 2015-2019 REWARDING AND MOTIVATING 16.....OUR CLIMATE COMMITMENT TEAMMATES INDICATORS & 41.....DECATHLON FOUNDATION: METHODOLOGY ACCESS TO EMPLOYMENT RESPONSIBILITY THROUGH SPORT IN PRODUCTION STORES & TRANSPORT

99...... OUR PERFORMANCE INDICATORS

120 ... SUSTAINABLE DEVELOPMENT GOALS CROSS-REFERENCE TABLE .... 64 MAINTAINING LONG-TERM 122.... METHODOLOGICAL NOTE RELATIONSHIPS 126.... CONFIRMATION 70.....PUTTING OF PARTICIPATION PEOPLE FIRST 81.....ECO-DEVELOPING AND REPORT OUR GLOBAL NETWORK 76.....ROLLING OUT ON THE FAIRNESS ENVIRONMENTAL 85....SUPPORTING OF THE INFORMATION LOCAL COOPERATION MANAGEMENT 128.... LIST OF 90....OPTIMISING OUR ENERGY 2018 STAKEHOLDERS AND WASTE MANAGEMENT

94....TRANSPORTING OUR PRODUCTS AND ENCOURAGING ECO-MOBILITY

2 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

CHALLENGES EDITORIAL "THE HORIZON RETREATS AS In October 2018, a report from the IPCC2 found that the collective agreement to limit global warming to 2°C would not be honoured without massive collective YOU APPROACH, efforts. We now have just 11 years to combat climate change if we want to AND THAT IS LIVING & STRATEGIES preserve our world's biodiversity. The past year was marked by a realisation: the sense of urgency is palpable, our fellow citizens are aware of the new challenges PROOF THAT WHEN to society, and individuals are expected to behave responsibly. At Decathlon, we WE WORK HARD, must be even more determined in our mobilisation to contribute to limiting this ecological crisis. WE CAN ONE DAY

Nothing will be possible if we do not balance the three P's: People, Planet and REACH A PLACE Profit: one of these cannot advance at the expense of another. We are now THAT SEEMED seeing that performance cannot only be measured in financial terms and, at the same time, that everyone wants to make a real difference and play an active UNREACHABLE role in protecting the environment and helping to further human progress. YESTERDAY" That is why we worked in 2018 to integrate sustainable development into the IRWIN, PADDLEBOARDER, criteria for determining our share value. As part of this effort, we worked with HENDAYE (FRANCE) our stakeholders again this year to determine together our priority challenges through a materiality analysis.

At Decathlon we have always believed in working together, reflected in our values, “Vitality and Responsibility”. Now we are making this an integral part of our passion for sport and including it in our purpose: "To sustainably make the pleasure and benefits of sport accessible to the many”

The commitments we made this year will help us step up these efforts at every level of the company.

First, we made the environmental impact of our products visible: the eco-design team trains and supports the design teams as they assess their products so that we can deliver this transparency for our customers through environmental labelling. We committed to increasing our use of sustainably sourced cotton and polyester when manufacturing our products in an effort to further reduce their environmental impact. As for energy consumption, we joined the RE1003 initiative and committed to using 100% renewably-sourced electricity for all our distribution and logistics activities by 2026 in every country where we operate.

If we want to significantly improve our carbon footprint, we must look to the source of our impact. That is whywe provide on-the-ground support to our suppliers: we work with them to identify areas where they could be more energy efficient and to develop action plans that will help them reduce local pollution and their greenhouse gas emissions.

A commitment to ensuring that all our suppliers respect human rights across the entire value chain has been part of our 86% Social Charter since 2003. This ongoing collaborative work significantly improved management practices, with 82%4 of OF RANK 1 PRODUCTION 65% 50% our suppliers receiving A, B or C ratings for their working conditions at the end of 2018, 28% more than in 2017. OF OUR TEAMMATES SITES WERE GIVEN A, B or C OF SPORTS RATINGS FOR THEIR HUMAN ENJOY COMING TO RESPONSIBILITY Our current structure is country-based and some of the countries are vast and full of contrasts: different climates, different USERS DELIGHTED WORK EVERY DAY IN PRODUCTION seasons, different cultures and, at times, a wide range of sporting needs. We are gradually pivoting to a network-based (24% MORE THAN IN 2017) organisation of autonomous yet interdependent urban clusters. Because they are close to their communities and their 1,157 SOCIAL AUDITS 2018 neighbours, our teammates are always willing to take bold steps to be more effective. That is vital for issues like the circular ENVIRONMENTAL economy, for one, but also when it comes to getting the local community involved or putting on one of our thousands LABELLING: of local events, like World Clean Up Day. By implementing a role-based structure5 and offering training in sustainable development, we help ensure that more and more teammates are incorporating these skills into their work. Whether in 30.1% 7.9 kg stores, warehouses or service jobs, our teammates can all spearhead new initiatives in their workplaces. OF DECATHLON CO2 EQ. PER 69.4% 1 OF RANK 1 PRODUCTION SITES WERE WORKING TOGETHER TO MAKE THE WORLD A BETTER PLACE AND SHARE OUR PASSION FOR SPORT. PRODUCTS PRODUCT SOLD GIVEN A, B or C RATINGS FOR THEIR 16% IN 2017 -2,5% SINCE 2016 ENVIRONMENTAL MANAGEMENT THE DECATHLONIANS 3 1. 2018 Autumn-Winter season. 2. IPCC: Intergovernmental Panel on Climate Change. 3. www.there100.org 4. Rank 1 and Rank 2. 5. See page 28 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

BREAKDOWN OF TEAMMATES BY GEOGRAPHIC AREA AS OF 31/12/2018

EUROPE DECATHLON OVER 1,511 AND RUSSIA 67.3% IN FIGURES STORES WORLDWIDE ILNIS LITHANIA AS OF 31/12/2018* ASIA NTREAL IENNA IN 869 URBAN CLUSTERS CANAA ASTRIA INCHEN STH REA *All figures appearing in CRINTHE this report are as of 31/12/2018. 168 MORE THAN IN 2017 25% GREECE LE CAIRE AMERICAS EGT AAR HN ENH SENEGAL CL 3.3% SRI LANA CAIA NAIRI INSHASA ENA AFRICA R CNG 69 AND MIDDLE EAST kg WAREHOUSES SANTIAG 7.9 4.1% CHILI CO2 EQ. PER AND LOGISTICS DECATHLON LOCATIONS IN OCEANIA NEW CITIES IN PRODUCT SOLD PLATFORMS NEW COUNTRIES -2,5% SINCE 2016 51 COUNTRIES 0.3% +12

12 65% OPENINGS IN NEW 168 96,002 275 MILLION STORE TEAMMATES OF SPORTS COUNTRIES IN 2018 46.9% WOMEN SPORTS USERS IMPACTED OPENINGS AND 53.1% MEN USERS 27 OPENINGS IN NEW IN 2018 BY OUR PRODUCTS COUNTRIES SINCE 2016 +16.8% MORE THAN IN 2017 DELIGHTED

BREAKDOWN OF TEAMMATES BY AGE BREAKDOWN OF TEAMMATES BY ACTIVITY AS OF 31/12/2018 AS OF 31/12/2018

€11.3 SORT SERICES NDER EARS VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY 45 6.5% 85 PARTNER BILLION 4.6% EARS AND OLDER EARS DESIGNRODCTION RETAIL AND DEFP2018 DECATHLON SUPPLIERS IN TURNOVER 2.% 63.4% 5.2% SERICES BRANDS 10 MORE THAN IN 2017 (EXCL. VAT) 76.7% EARS EARS LOGISTICS DECATHLON +4.6% COMPARED WITH 20171 6.9% 23.% .6% 4 5 1. At constant exchange rates. CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

IN 2018, 86% O F R A N K 1 PRO DU C TIO N S ITE S CONDUCTING OUR WERE GIVEN A, B or C RATINGS A 2018 MATERIALITY 50% FOR THEIR HUMAN RESPONSIBILITY DECREASE IN ANALYSIS IN PRODUCTION (24% MORE THAN IN 2017) HIGHLIGHTS AIR TRANSPORT TO SHIP OUR PRODUCTS 1,157 SOCIAL AUDITS 2018

COMMITMENT 52.5% 69,4% OF RANK 1 PRODUCTION SITES TO THE OF DECATHLON WERE GIVEN A, B or C RATINGS TEAMMATES FOR THEIR ENVIRONMENTAL 12 NEW RE100 ARE EMPLOYEE OPENINGS INITIATIVE SHAREHOLDERS1 IN 12 COUNTRIES MANAGEMENT OR 49,503 TEAMMATES WORLDWIDE

ECO-DESIGN, MATERIALS SELECTION: VALIDATION 1,200 COTTON POLYESTER OF OUR FIRST 3 76% 17.2% VIGILANCE WCUD AND 20,000 SUSTAINABLY- SUSTAINABLY- EVENTS PARTICIPANTS SOURCED COTTON SOURCED POLYESTER PLAN HELD LOCALY WORLDWIDE 37.7% MORE THAN IN 2017 83% MORE THAN IN 2017

ENVIRONMENTAL JOINED THE LABELLING: -2.5% GLOBAL CREATING A SUSTAINABLE INTENSITY OF VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY 30.1% CO2 EMITTED BY FASHION OF DECATHLON DEVELOPMENT TRAINING QUANTITY OF

DEFP2018 2 AGENDA PRODUCTS PROGRAMME FOR OUR TEAMMATES PRODUCT SOLD 2020 CIRCULAR FASHION 16% IN 2017 IN 2018 SYSTEM COMMITMENT DECATHLON COMPARED WITH 2016 6 7 1. In the countries where the process does take place for Decathlon. 3. WCUD = World Clean Up Day 2. 2018 Autumn-Winter season. CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

OUR RESOURCES CREATING VALUE FINDING BUSINESS OPPORTUNITIES MODEL OUR TEAMMATES OUR TEAMMATES IN CURRENT 96,002 teammates   50% of our teammates enjoy coming to work every day TRENDS: 46.9% women / 53.1% men   52.5% of our teammates are shareholders Breakdown by sector: 76.7% retail and services,   Support for personal development and skill-building OUR VALUES: 5.2% design/production, 6.5% support services, 11.6% logistics   18.7% Payroll/Turnover Decathlon Academy Training Digital Platform   38 teammates sponsoring Foundation projects, THE BENEFITS and 9 Decathlon Exchange training centres  helping 65,000 direct beneficiaries VITALITY & OF SPORT > Helping people discover RESPONSIBILITY and enjoy the benefits of sport PRODUCT DESIGN PRODUCT DESIGN in a way that is accessible 85 Decathlon brands to meet user needs   Attractive high-tech sporting goods, and adapted to people of all In-house laboratories/prototyping workshops  increasingly eco-designed, at fair prices ages throughout the world. OUR PURPOSE : 3,000 prototypes   Exclusive, recognised and affordable innovations On-site testing and co-designing with users   45 patents have been filed and extended around the world TO SUSTAINABLY   In-house net promoter score of 40% URBANISATION  76% of our cotton & 17,2% of our polyester come from more sustainable sources > Seizing the opportunities MAKE THE  30.1% of products have an environmental label1 presented by these settings PLEASURE by selling our products there. ENVIRONMENTAL AND BENEFITS SUPPLY CHAIN SUPPLY CHAIN 47 production countries + 42 production offices   28% of our products are sourced from our industrial partners DEGRADATION OF SPORT 1,347 suppliers (Rank 1 and Rank 2), including 45 partners   86% of our suppliers were given ABC Human Responsibility > Preserving our playing fields ACCESSIBLE 16 industrial production processes  in Production (HRP) scores (96% for our partners) and reducing the environmental 1,157 Human Responsibility in Production audits   69.4% of our suppliers were given ABC scores for impact of our activities. TO THE MANY 93 Environmental audits  local environmental responsibility (93.5% for our partners)  10 years of average length of service for the 100 first suppliers in terms of turnover DIGITAL TRANSFORMATION OUR VISION 2026: TRANSPORT AND LOGISTICS TRANSPORT AND LOGISTICS > For our teams, sports users, suppliers and partners 69 warehouses around the world   Optimised sourcing:  Do what I love 8.7 million tonne-kilometres transported  product availability rates and inventory lifespan, (commercial, industrial and institutional), a new, faster and  Co-create Product transport: 3.2% air transport,  items shipped/m² and average per lorry load rate 84.7% maritime transport, 2.1% rail transport   Decrease of environmental impact of products shipment in Europe more flexible way of interacting, working and connecting. unique products and 10% road transport  (-19% of CO2 emissions in 2017 compared to 2018)  Involvment in soft mobility growth  Be where we are needed  Making @store VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY a fantastic experience OMNICOMMERCE OMNICOMMERCE 1,511 stores and digital platforms located in 51 countries and   275 million: Number of customers/sports users DEFP2018  Preserve to Protect 869 cities and towns,   65% of sports users delighted ensuring our products are accessible   Business at workshops and with Decathlon Occasions through all our distribution channels   11.3 Milliards: Turnover (excl. VAT), + 4.6% growth MICHEL ABALLEA DECATHLON DECATHLON Organising sporting events with help from our communities   7.9 kg CO2 eq. per product sold (2.5 % less than in 2016) UNITED RESPONSIBLE 8 Open Water Swimming lover 9 All the methodological specifications are in the "Indicators and methodology" part. 1. 2018 Autumn-Winter season. CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

OUR MAIN OUR ORGANISATION IN 2018 EXTRA-FINANCIAL RISKS The sustainable development team at Decathlon is a network of some 50 teammates covering all themes and countries. A risk is an uncertain event with a negative impact on our ability to achieve our goals that could endanger the future of the company. Risk and opportunity are two sides of the same coin. We have identified the main risks Decathlon is facing and devised plans to address each one. ANTHON OARD O ISAELLE GADER DIRECTORS EI DE D EDE SSTAINALE In accordance with the subsidiarity principle in effect at Decathlon: DE D EDE FE DEELOENT STEERING  A "company specialist" (the risk manager) determines the scope of autonomy (or framework), makes it available to all and ensures COITTEE that it is put into practice. The risk manager shares the framework with the community of local specialists in each country. IIGO GARCIA ROELAND  “Local specialists” are the first line of defence for preventing our main risks. P ERLOET  EED ANAGEENT  Each leader (country, city, store and/or Decathlon brand leader) is responsible for ensuring that the frameworks are implemented SSTAINALE DECATHLON at the local level. LEADER GIORGIO OSSI DEELOENT This table sets out and describes the main extra-financial risks that have been identified at Decathlon. LEADERS RIE IOLET These risks are assessed on an ongoing basis and may require more attention when the internal and/or external context changes. E INTERNAL ADITORS

CATEGORY RISKS DESCRIPTION OF RISK ARINA LEANDRO SA STASSINOOLOS P E OERI ONS  Risk that company strategies are misunderstood or not applied. E  Risk of losing people-management best practices that have made Decathlon so CANDICE LEE RAHEL DAAE Losing sight successful (e.g., regular one-on-one meetings). D EP EDE E of our purpose  Human resources risk (e.g., high turnover): If we do not lead change effectively, ARIE CHAILLO people may not enjoy coming to work as much and lose their motivation, with an impact on performance. AT DRAER EF SONDOS PEFE HASSONI PEOPLE D F E  Difficulties attracting and retaining the talent we need to implement our Managing talent SSTAINALE strategies. DEELOENT LIEN  Risk of corruption in the countries where Decathlon is developing and where TRANSORATION GONTIER Corruption corruption is a common, significant risk. RAAELE D ROCESS LEADERS EE EE  Risk in countries where we have significant purchasing volumes (for example, PD D DE production and procurement). RONAN EEROD LE OGEN E DEEPE EILIE AR  Violations of the physical safety of customers in stores, employees, service PD CAN LA A ROLE 2 EE EE providers and/or industrial partners. ALL DECATHLONIANS E D P Endangering the safety  Poor assessment of the ability to evacuate premises and prevent fires or and fundamental rights accidents (involving machines, chemicals, business trips, etc.), which may lead to issues facing society and engage with KEEPING of people inside and/or temporary, lasting or even fatal consequences, and/or impact Decathlon's image. outside the company  Respect for people, individual freedoms and fundamental rights among our THE PLAYERS stakeholders involved in their area OUR PURPOSE: PEOPLE SAFE employees, industrial partners and service providers (working hours, contracts, COUNTRY SUSTAINABLE of expertise. They work alongside AND ACTING salaries, minimum working age, etc.). DEVELOPMENT LEADERS: These teammates to co-create the tools and PRESERVE individuals work with their teams to lead methods needed to make them self- ETHICALLY the Decathlon sustainable development sufficient and ensure that their processes TO PROTECT Endangering the health and are applied consistently across the world.  Violations of the physical health and safety of a customer when using or coming strategy in their countries and are in ambitions in line with the ideas put forward safety of users when using into contact with our products, which may lead to temporary, lasting or even fatal direct contact with their stakeholders. products sold at Decathlon DECATHLON SD LEADER: In conjunction by the SD team and teammates. She also consequences and/or impact Decathlon's image. TRANSFORMATION PROCESS with the Decathlon leader, and in accordance leads a team of transformation process VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY LEADERS: Specialists for key themes, with the company strategy, this leader leaders and manages the leaders network they anticipate the challenges and sets out our sustainable development for each country.  A mismatch between how people actually behave and Decathlon's sustainable DEFP2018 development goals for the environment. THE  Environmental pollution (water, air and soil) and its impact on the people who live Environmental impact near our industrial facilities. DECATHLON ENVIRONMENT  A failure to take into account how our environmental impact affects our business OVERSEEING THE SD STRATEGY (resource depletion, changes in seasonality, more natural catastrophes, rising 10 prices for energy and raw materials, etc.). The strategy is coordinated by the SD leader, the Sustainable Development Steering Committee (made up of representatives from 11 different countries and business lines), internal auditors, the Decathlon leader and the Board of Directors. CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

OUR NEW A TRANSITION HOW DID YOU INTERPRET MATERIALITY ANALYSIS TOWARD RENEWED THE RESULTS? OUT OF MORE THAN 100 ISSUES, HERE ARE THE MOST STRATEGIC IN AMBITIONS IG: There were no surprises and THE OPINION OF OUR STAKEHOLDERS no major disconnects between what we are currently doing and the conclusions of the study. That 

being said, we must intensify ANTHON our policies in certain areas, for OARD O ISAELLE GADERHOW DID YOU GO instance when it comes to greater EI diversity and inclusion, as well DIRECTORS SSTAINALE RESORCE RESERATION & CIRCLAR ECONO DEABOUT D EDE PERFORMING ORING CONDITIONS & HAN RIGHTS as resource reservation and the THE STUDY? circular economy. DEELOENT SHARING ALE DE D EDE FE REENTION & ENIRONENTAL EICIENC IN OERATIONS IG: For this study we had several STEERING DELIGHTED SERS HEALTH & ELLEING ORING CONDITIONS goals in mind. First, we wanted COITTEE RODCT ALIT to be representative in terms of & SAET WHAT ARE TRANSITION ORIIGO A LOCARON GARCIA ECONO ISABELLE GUYADER our internationalROELAND development, LIING AGE & AIR ING RACTICES so we surveyed seven countries: THE NEXT STEPS? DECATHLON Bangladesh,ERLOET China, France, India, P RODCT IG: A materiality analysis is not an AGILE ORGANISATION & NETORED RELATIONSHI SILLS & NOHO DEELOENT AORDAILIT SUSTAINABLE DEVELOPMENT Italy, Spain and Vietnam. Then end in itself. This was an important SER ENIRONENTAL INORATION EED LEADER we got the broader Decathlon starting point for our 2020-2026 ANAGEENT SINESS ETHICS ENERG EICIENC & RENEALE ENERG SE DIERSIT organisation involved by RICHNESS & INCLSION strategy. We have already started DECATHLON structuring the project into batches. SORT ROOTION RACTICE SSTAINALE formulating our ambitions for & CONIT INOLEENT We followed up specifically with LEADER IN 2018 YOU PERFORMED 2020-2026. EOERING & teammates, users and customers, ATTRACTIE OS & TALENT ANAGEENT We must develop our response GIORGIO OSSI AIR ANAGEENT DEELOENTA NEW MATERIALITY suppliers, citizens, neighbours, business leaders and shareholders. to these challenges, starting from TEST. WHAT WERE YOUR RIEour IOLET culture, purpose and what LICENSE TO OERATE & SOCIAL IACT LEADERS We also wanted to get other ORERS EOERENT makes us unique. Our 2020-2026 & CONTRACTORS CAACIT ILDING GOALS? Decathlon players involvedE to INTERNAL conduct the study. ambitions will be finalised in 2019 IG: We undertook this study as a and described in our 2019 report. ADITORS chance to have a real conversation We asked many open-ended

STAEHOLDERS EECTATIONS STAEHOLDERS with our stakeholders about the questions to our activity leaders, 20 most important social, societal community representatives and ARINA 100 and environmental issues. shareholders,LEANDRO who SA by answering WHAT ARE  The previous materiality test was inP their own words helped us THE TAKEAWAYS STASSINOOLOSSINESS IORTANCE conducted in 2012 and it provided better understand and act on the basis of our current ambitions their concerns. Lastly, we directed FROM THIS PROCESS? TEAATES Governance was subject to a specialE qualitative process. In addition to the issues for 2015-2019. our questions about financial LAOR ISSES IG: The dialogue with our presented in the table, Decathlon identified the following themes as strategic for the As major changes have taken and governance topics at certain stakeholders was rewarding and company. ENIRONENT IN ACTIITIES place inside and outsideOERI the ONStargeted groups. We wanted to inspiring. Our interactions with & SL CHAIN ECONOMIC & GOVERANCE ISSUES: company since then, we decided take a comprehensive approach. teammates provided an opportunity • Transparency and traceability E to conduct this study again in order The process began in September to share a common vision of our SERS SLIERS • Stakeholders dialog and partnerships priorities and give meaning to our • Raw material prices and availability CANDICE LEE to develop a new set of ambitions. 2017 and endedRAHEL in October DAAE 2018. CITIENS SOCIAL ISSES actions. VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY • ESG integration in vision & value creation To obtain robust results,D we EP ECONOIC & followed a rigorous methodology With the materiality analysis, we GOERANCE ISSES EDE Ehave started the transition from DEFP2018 METHODOLOGY: and worked with AFNOR for ARIE CHAILLO Survey conducted in seven countries: France, Spain, Italy, China, India, Vietnam and Bangladesh, guidance and support. our 2015-2019 policy to our with 2,100 teammates, 2,200 customer-users and 60 suppliers responding to an online 2020-2026 ambitions, designed

DECATHLON questionnaire and with 45 representatives of civil society interviewed in order to take stock of to set us apart. stakeholder expectations. "Significance for the business" was informed by workshops with 30 in-house experts and 20 AT DRAER 12 13 interviews with company leaders and shareholders. EF SONDOS PEFE HASSONI D F E SSTAINALE DEELOENT LIEN TRANSORATION GONTIER RAAELE D ROCESS LEADERS EE EE PD D DE RONAN EEROD LE OGEN E DEEPE EILIE AR PD CAN LA A ROLE 2 EE EE ALL DECATHLONIANS E D P CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

OUR 2019 AMBITIONS TO PROTECT THE ENVIRONMENT OUR SD AMBITIONS 2015-2019 AND CONTINUALLY REDUCE OUR ENVIRONMENTAL IMPACT* ACHIEVED ACHIEVED *Target dates for some goals may not be 2019 given the current situation 2017 2018 These ambitions correspond to the policy set out in 2015 and are being updated to incorporate both the new materiality analysis and the progress made in each area. and the extra-financial risk analysis. A new 2020-2026 Sustainable Development policy will be included in the 2019 DEFP.  Our sense of vitality and responsibility are key drivers of our sustainable development approach. 8.2 kg 7.9 kg REDUCTION IN OUR CARBON INTENSITY BETWEEN 2016 AND 2026  In addition to active monitoring, we anticipate societal challenges and issues in order to innovate and direct our efforts. CO2 EQ./ CO2 EQ./ -40% > We create action plans for each activity based on our environmental impact assessment  Our priority is to create sustainable value(s) for our teammates, users, partners, neighbours and shareholders. and we are working together to reach the target approved by the SBT initiative PRODUCT SOLD PRODUCT SOLD -2,5% SINCE 2016

REDUCTION IN CO EQ. EMISSIONS PER ITEM DELIVERED -15% 2 DECATHLON TEAMS STRIVE TO MAKE A DIFFERENCE EVERY DAY IN EUROPE BETWEEN 2015 AND 2020 385 g 311 g > We are optimising the transport of our products CO2 EQ./ARTICLE CO2 EQ./ARTICLE

OUR 2019 AMBITIONS TO EMPOWER OUR TEAMMATES ACHIEVED ACHIEVED AND MAKE WORK MORE ENJOYABLE 2017 2018 78 CERTIFIED 83 CERTIFIED SITES SITES OF NEW COMPANY-OWNED SITES ARE CERTIFIED OF TEAMMATES LOOK FORWARD TO COMING TO WORK EACH MORNING 100% TO THE MOST EXACTING ENVIRONMENTAL STANDARDS STORES: STORES: 65% BECAUSE THEY ARE WORKING TOWARD PERSONAL AND COLLECTIVE GOALS > We are improving the energy efficiency of our sites 127.2 kWh/m2 118 kWh/m2 > We recruit people who are passionate about sport, vital, pragmatic and service-oriented 52% 50% and reducing the CO2 equivalent emissions stemming from their energy use > Taking only "yes, absolutely" answers WAREHOUSES: WAREHOUSES: 74 kWh/m2 58.1 kWh/m2 100% OF OUR TEAMMATES CAN PLAY THEIR SPORT REGULARLY, AT THEIR OWN PACE AND LEVEL 80% 79% > We encourage everyone to play a sport 100% OF THE ELECTRICITY WE USE WILL COME FROM RENEWABLE SOURCES BY 2026 > In accordance with our commitment as part of the RE 100 initiative 40.4% 55.6% OF OUR TEAMMATES HAVE A VOICE IN THEIR OWN DEVELOPMENT 100% AND LEARNING (I AM SUPPORTED IN MY PERSONAL DEVELOPMENT, STORES: STORES: 39% 39% MY KNOW-HOW AND MY PERFORMANCE) 83% 83% INCREASING SORTED WASTE > We support the development of each individual > We optimised the sorting rate for waste generated by our stores and warehouses WAREHOUSES: WAREHOUSES: 62% 66% 100% OF OUR TEAMMATES THRIVE BY TAKING ON MORE RESPONSIBILITY > We make it possible to put the principles of subsidiarity, responsibility and 89% 86% WE ARE REDUCING THE ENVIRONMENTAL IMPACT OF OUR PRODUCTS autonomy into practice by encouraging them to see the results of their decisions BY USING RAW MATERIALS FROM SUSTAINABLE SOURCES

100% 100% OF TEAMMATES FEEL SAFE IN THEIR WORKPLACE 94% 93% SUSTAINABLE COTTON FOR OUR DECATHLON TEXTILE PRODUCTS BY 2020 55.2% 76%

1 100% 100% OF TEAMMATES ARE SHAREHOLDERS IN THE COMPANY, IF THEY WISH TO BE SUSTAINABLE POLYESTER FOR OUR DECATHLON TEXTILE PRODUCTS BY 2021 9.4% 17.2% > We share the value created at the company 58.2% 52.5% PACKAGING MATERIALS WILL COME FROM 95% MORE SUSTAINABLE SOURCES5 BY 2025 84.4% 85.5% OF TEAMMATES CREATE HUMAN, ENVIRONMENTAL 100% AND ECONOMIC VALUE TO ACHIEVE OUR COMPANY PURPOSE - 92% 2 OF SUPPLIERS AT RISK FOR WATER, SOIL OR AIR POLLUTION 80% ARE ASSIGNED AN A, B or C SCORE ACCORDING TO OUR AUDIT CRITERIA > We improve the environmental performance of our suppliers' industrial sites by helping 26.8% 69.4% OUR 2019 AMBITIONS FOR THE SUPPLY CHAIN: ACHIEVED ACHIEVED them continuously reduce their environmental impact based on their risks PUT PEOPLE FIRST 2017 2018

3 2 OF OUR SUPPLIERS ARE GIVEN AN A, B or C SCORE OUR 2019 AMBITIONS TO COMMUNICATE RESPONSIBLY, 80% BASED ON OUR AUDIT CRITERIA ACHIEVED ACHIEVED > We regularly assess our suppliers to verify that working conditions comply 69% 86% PRAGMATICALLY AND HONESTLY ABOUT OUR SUSTAINABLE 2017 2018 with our Code of Conduct DEVELOPMENT ACTIONS

VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY OF TEXTILE, FOOTWEAR AND HEAVY STITCHING PRODUCTS 60% WILL BE ASSIGNED AN ENVIRONMENTAL SCORE BY THE END OF 2019 OUR 2019 AMBITIONS TO BE A LEADER IN PRODUCT SAFETY ACHIEVED ACHIEVED 16% 30.1% > We ensure complete transparency in labelling the environmental performance AW6 SEASON 2017 AW6 SEASON 2018 DEFP2018 AND LONG-TERM USER SATISFACTION 2017 2018 of our Decathlon products to support responsible consumption

SATISFACTION FOR USERS OF OUR SPORTS PRODUCTS4

DECATHLON 67% > We ask them to share feedback about our Decathlon products 60% 65% OUR AMBITIONS ARE REVIEWED ON AN ANNUAL BASIS, IN LINE WITH CHANGING so that we can continuously improve them CONTEXTS AND ACTION PLANS, WITH INPUT FROM ALL THE TEAMS INVOLVED 14 15 1. In the countries where the process does take place for Decathlon. 5. Made from paper pulp. 2. Common objective for social and environnemental audits for 2019. 6. AW: Autumn-Winter. 3. Rank 1. 4. Percentage of users awarding our products a score of 4 to 5. CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

BREAKDOWN OF OUR GHG EMISSIONS BREAKDOWN OF OUR GHG EMISSIONS OUR CLIMATE COMMITMENT BY SCOPE BY ACTIVITY In 2018 at the request of states, the experts that make up the IPCC1 – the Intergovernmental Panel on Climate Change – were TONS OF CO2 EQ. (MARKET-BASED METHOD) IN % tasked with studying the consequences of a global temperature increase of 1.5°C and how we could avoid crossing that threshold. They came up with several scenarios, including a temperature increase of 3°C caused by greenhouse gas emissions. This warming could lead to profound and irreversible changes in our ecosystems. To limit this rise to 1.5°C, we humans must reduce our carbon RODCT 4% RODCT TRANSORT ANACTRING emissions by 45% by 2030 and become carbon neutral by 2050. SCOE 2,454 T CO E 46% 7%RODCT SE

Decathlon identified reducing greenhouse an opportunity for the company to think 4% SITE CONSTRCTION SCOE gas emissions as one of our priority about our CO2 trajectory and adapt 153,32 T CO E AND OERATIONS challenges in 2013. In 2017 we increased our corporate strategies to ensure our oversight of emissions-measuring that they are comprehensible and that 5% TEAATE SCOE RA ATERIALS AND CSTOER TRAEL efforts and in 2018 we expanded these to they contribute to the effort necessary ,746,161 T CO E ETRACTION our product suppliers. worldwide. 5% END O SERICE In 2018 Decathlon decided to update We believe that this impact should be SCOPE 1: direct emissions. SCOPE 2: indirect emissions from energetical 9% LIE OR RODCTS consumptions. SCOPE 3: other indirects emissions (Supply, transport, use, our reduction target with guidance managed as closely as possible to local end-of-life...). from the Science Based Targets2 (SBT) emissions sources. That is why it is more international initiative. A new target will important and strategic than ever to train be submitted to this panel of experts, our teams, learn to use measurement which will then issue its opinion. The tools, and ensure ownership of goal of this initiative is to limit the rise approaches and action plans drawn up in temperatures to a maximum of locally. 2018 CARBON 1.5°C worldwide. This goal serves as FOOTPRINT Since 2013, Decathlon has counted all emissions that can be attributed to our activities in our carbon footprint, KEY FIGURES FOR OUR CLIMATE COMMITMENT: including the raw materials extraction required for production, in-store sales of products and their end-of-life stage, product manufacturing and transport, and site emissions. 7.9 kg -2.5% In 2018 Decathlon's carbon intensity stood at 7.9 kg CO2/product sold, 2.5% CO2 EQ. EMITTED BY EMITTED BY QUANTITY less than in 2017. This decrease resulted from some strategic decisions. QUANTITY OF PRODUCTS SOLD OF PRODUCTS SOLD IN 2018 We are now setting a goal for reducing approved by outside experts, for both our IN 2018 COMPARED WITH 2016 our impact by 2026 compared with strategies and the resulting action plans. our 2016 results. This goal is currently Such close monitoring ensures that our OUR under review by the Science Based company’s reduction target is in keeping Target initiative. with the scope of the climate challenge. COMMITMENT: Although SBT is a recent initiative, 515 1. NEW CALCULATION OF companies worldwide have committed REDUCE to take part and 164 have had their CO2 2018 ESSENTIALS OUR CO2 TRAJECTORY goals approved, including 10 companies OUR CARBON BASED ON THE SCIENCE in France. > OUR GOAL FOR REDUCING GREENHOUSE GAS EMISSIONS IS BEING REVISED TO ALIGN WITH BASED TARGET INITIATIVE THE PARIS AGREEMENT AND THE SCIENCE BASED TARGET INITIATIVE. THIS WILL MEAN FULLY INTENSITY, Why track changes in carbon intensity OVERHAULING OUR CARBON IMPROVEMENT PLAN, DETAILED SCENARIOS AND THE ASSOCIATED MEANING rather than overall GHG emissions? Decathlon worked to update our CO2

VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY ACTION PLANS. trajectory based on the proposed Calculating the absolute value of our THE CO2 emissions was no longer useful for > THE INDICATORS ARE MOVING IN THE RIGHT DIRECTION THANKS TO OUR CARBON INTENSITY methodology from the SBT initiative. The ultimate goal is to align ourselves tracking Decathlon's performance. DEFP2018 EFFORTS; THIS WILL HELP US TAKE INTO ACCOUNT OUR COMPANY'S ECONOMIC ACTIVITY AND EMISSIONS Instead, we chose a new indicator: TRACK CHANGES IN OUR PERFORMANCE. with the global trajectory to keep global PER PRODUCT warming under the 2° C limit set by the “carbon intensity”, or the average CO2 Paris Agreement (COP21). This goal is impact per product sold. DECATHLON > WE HAVE INCREASED OUR RANGE OF TOOLS AND TRAINING PROGRAMMES TO HELP EMPOWER LOCAL TEAMS. WE MUST ALL TAKE OWNERSHIP OF OUR CARBON FOOTPRINT. SOLD currently under review by the panel of experts. This method helps us develop 16 medium- to long-term goals that are 17 1. https://www.ipcc.ch/sr15/ 3. The scope 2 result is in the KPIs board in this report. 2. https://sciencebasedtargets.org/ CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

With the benefit of several years of perspective on the carbon footprint for NEARLY Decathlon's total impact, the "change in

kg of CO2/product sold" indicator proved to be the most relevant for our company, given that our goal is to make the joys SITES AND 115 PRODUCTION SITES and benefits of sport accessible to all. 1,460 The idea is to focus on a trend rather than STORES AND WAREHOUSES (SUPPLIERS) ARE MONITORED a single number, as this more accurately reflects our day-to-day efforts to reduce USING THE RESOURCE ADVISOR TOOL the impact of our business activities. We chose 2016 as the reference year, as that was the year when Decathlon made our main commitments. Having laid this foundation, we can get beyond thinking 4. GREEN FINANCING: In Taiwan, the Sustainable Development At the end of 2018, a 2.3% financial in terms of annual profits or losses, team created a group challenge to reduce bonus was distributed, coming largely since the results of certain actions INTEGRATING OUR environmental impact by playing a from the impact of carpooling (20% become clear only in the medium-term. 4 ENVIRONMENTAL serious game called the Seed Game. The less CO2 compared with teammate They require an analysis within a larger  Product transport: most notably, we By setting up training in the Resource game allows teammates to earn points transport in 2017) and energy savings timeframe (especially when it comes to PERFORMANCE INTO OUR obtained a 50% reduction in air transport Advisor tool and issuing quarterly reports by developing eco-friendly initiatives. (the most efficient site, Taichung, saved product design). FINANCIAL RESULTS when supplying our products. Through on environmental data, we have been The final result was a financial bonus, in over €6,000 on its electric bill). In Taiwan, addition to the economic result. 89.7% of Decathlonians took part in the 2. WHAT ARE this strategy we reduced the overall able to track results site by site over the impact of the transport of Decathlon past few years. In 2016, Decathlon recruited an extra- challenge, resulting in more than 4,500 OUR STRATEGIES products by 6.5% (see p. 94). environmentally friendly initiatives. Since 2018, the programme to reduce financial performance leader in the AND ACTION PLANS? Initiatives relating to waste and products’ our suppliers’ local environmental Sustainable Development team, to end of life are also implemented and impact also includes tracking of their introduce the notion of triple bottom line (People, Planet, Profit) into our overseen at the local level, resulting in a CO2 emissions using software that we In 2018 we overhauled our carbon 45% sorting rate in 2018. provide (see p. 78). performance. improvement plan, particularly with regard to Scope 3 on indirect emissions, For 2019 we are readying a programme In addition, the design teams for The first step in our CO2 approach was to calculate Decathlon's impact. Next, and we integrated CO2 emissions into the to support our suppliers as they navigate our Decathlon brands and industrial overall Decathlon value chain. the energy transition, thanks to a network processes are equipped with an we analysed the results to prioritise impact reduction initiatives. The third of CO2 specialists set up to assist them eco-design module that helps them When making investments, our priority is step is forecasting so that we can the emissions sources with the greatest in tracking their energy consumption and analyse and predict the life cycle of accurately plan our trajectory. Our CO2 impact. implementing their action plans to reduce components and end products. In greenhouse gas emissions. 2018 we also began using an analytical trajectory is now included in our monthly We reduced our CO2 intensity by tool that extracts data about our internal financial report to ensure that stepping up our efforts relating to environmental impact at different this criterion gradually takes its rightful Decathlon's strategic priorities. These 3. A NETWORK levels. The environmental impact has place alongside traditional economic apply primarily to: OF LEADERS OVERSEEING been estimated for more than 65% of indicators.  Our energy supply: in joining the OUR PERFORMANCE Decathlon brand products. To mobilise our employee shareholders, RE100 initiative, Decathlon committed All these tools help us see the full picture extra-financial criteria are being factored to obtaining 100% of our electricity from In 2018 the international network of Decathlon's impact: by country, by into our share value in 2018, including renewable sources by 2026. In 2018, comprised 126 sustainable development product family, by Decathlon brand and changes in CO2 intensity (see p. 40). 55.6% of the electricity we consumed leaders, including 25 country leaders, 64 by supplier. In 2018, we started a project to include came from renewable sources, enabling Decathlon brand leaders and 37 industrial the extra-financial performance into the us to reduce the carbon footprint of process leaders. the electricity used at our sites by 7% debt agreements with banking partners, between 2016 and 2018 (see p. 90). These local players have been tasked with the project is still in progress. developing the impact reduction strategy At the local level, Decathlon teams are  Eco-designing our Decathlon brands and local action plans. The impact of our also taking on board this link between products to reduce the impact of the products, sites (stores and warehouses) financial performance and carbon different stages in their life cycles. In 2018 and around 100 suppliers is now assessed performance. VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY 76% of the cotton used in the products locally. we design came from sustainable sources, and 17.2% of our polyester The impact of our sites and transport DEFP2018 was sustainable. These efforts helped methods includes: teammate and customer travel, energy consumption, us reduce the CO2/kg of manufactured products by 1.4% between 2016 and product transport, waste production,

DECATHLON 2018. building construction, consumables purchases and air conditioning leakage. 18 19 4. Serious game: an educational game played in a corporate setting. CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

PUTTING PEOPLE PEOPLE & AT THE HEART OF OUR GROWTH Our teammates’ workplace well-being This year 50% of teammates around the is one of Decathlon's primary concerns. world stated that they enjoy coming to Our company strives to implement work (total responding "yes, absolutely"). MANAGEMENT labour and human resources policies This indicator, which is central to our in line with our values. At Decathlon we human resources policy at Decathlon, is believe that happy, engaged employees measured using an in-house barometer contribute to a company's performance that helps our teams take stock of the over the long-term. current situation and implement suitable In 2018 the Quality of Life at Work (QVT) action plans to ensure that everyone team continued expanding their efforts enjoys coming to work. in France with help from their network of Decathlon once again topped the Great local specialists (316 QVT specialists in Place to Work rankings for France, 2018). The goal is to have one specialist at coming in first in the "Best Workplace each site who can oversee the following with more than 5,000 employees" issues: disability, inter-generational category. This ranking, a benchmark cooperation, gender equality and quality recognizing the companies employees of life at work, psychosocial risks and like to work for, confirms our teammates’ social engagement. satisfaction.

PEOPLE AT DECATHLON IN FIGURES AS OF 31/12/2018

68% TEAMMATES WORLDWIDE ARE UNDER 29 3.4% OF TEAMMATES IN FRANCE ARE LIVING AND 0.8% ARE OVER 55 WITH A DISABILITY IN FRANCE 76.9% OF OUR TOTAL WORKFORCE WORLDWIDE 46.9% HAD A PERMANENT CONTRACT 2018 ESSENTIALS IN FRANCE: AT THE END OF 2018 OF WOMEN > DECATHLON LAUNCHED A SEXISM PREVENTION CAMPAIGN CALLED BLOW THE WHISTLE. 50% > THE DECATHLON MISSION HANDICAP TEAM CONTINUED WORKING TO RECRUIT, RETAIN, OF OUR TEAMMATES ENJOY 53.1% RAISE AWARENESS ABOUT AND COLLABORATE WITH DISABILITY-FRIENDLY WORK CENTRES. COMING TO WORK EVERY DAY1 OF MEN > DECATHLON SHOWCASED THE SKILLS OF SENIOR EMPLOYEES THROUGH THE WORK KNOWS NO AGE PROJECT. 21 1. Results from the Decathlon Team Barometer survey of 61,952 Decathlon teammates from across the world in 2018 (Survey 2017 based on 60,028 answers). Percentage of people who answered "yes, absolutely" to the question “I am happy to come to work every morning to advance our goals and my goals”. CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

GENDER EQUALITY: SUPPORTING EMPLOYMENT FOR PEOPLE WITH ENSURING EVERYONE HAS DISABILITIES IN FRANCE AND AROUND THE WORLD Decathlon seeks to promote and support employment opportunities for people with disabilities. Our network of QVT2 specialists A VOICE AT THE COMPANY is helping Decathlon improve working conditions for our teammates. These 316 specialists are the liaisons for our disability policy, Knowing that diverse teams drive In 2018 we launched our Blow the which focuses on four areas: employment and training, hiring practices, job retention and using disability-friendly work centres. innovation and performance, we have Whistle campaign to prevent sexism In 2018 Decathlon formed a partnership with the French Handisport Federation to promote employment for people with made diversity a top priority. in the workplace. The goal is to disabilities. Through this partnership, employees learn about disability through sport and they are put in contact with candidates Achieving a balance between men and encourage people to speak up and to with sporting experience during hiring. Making sport accessible to all is one of Decathlon's core values, as sport helps all our women in the workforce is part of this. raise awareness. Some of the topics teammates feel more connected to their work environment. That is how two employees living with disabilities became Decathlon covered include telling the difference The purpose behind the project led brand ambassadors in 2018, a position which enabled them to actively contribute to the brand strategy and also have their friends between jokes and sexism, and between by our Decathlon France teams is to and family try out products. flirting and sexism. The campaign calls ensure that everyone can achieve their on teammates to be mindful of their We actively seek to promote job retention, including by modifying workspaces with help from ergonomics experts (105 in 2017 in goals and play a genuinely active role reactions. France and 78 in 2018). In addition, leaders receive advice on how to manage teammates with disabilities. in the company, all within a caring and respectful environment. Three training programmes have been developed to achieve this: Female Leadership and Boost’elles are both women-only programmes created to help female employees gain self- confidence and develop career goals. IN ITALY 19 WOMEN COMPLETED THE FEMALE The Work-Life Balance When You're LEADERSHIP TRAINING PROGRAMME IN 2018 Expecting training programme is open to both men and women. TO DEVISE THEIR CAREER PLANS, REMOVE UNFAIR ROADBLOCKS, BOOST THEIR SELF- CONFIDENCE AND DEVELOP THEIR POTENTIAL.

Sport training with blind people - Decathlon Hungary TESTIMONIAL SÉBASTIEN BERNARD HUMAN RESOURCES LEADER IN THE IT DEPARTMENT Other countries have followed France's Decathlon Italy website since 2017. They in 2018. At the same time, Decathlon lead when it comes to initiatives that are suitable for many different sports: teammates are working to make sport support employees with disabilities: basketball, tennis, fencing, swimming more accessible by organizing free sport and handcycling (three-wheeled bicycles practice for blind people. After receiving Italy has made a major effort to raise WHAT MEASURES HAVE BEEN IMPLEMENTED IN THE IT DEPARTMENT? powered by the arms, mostly used by training from the Hungarian Autism awareness with leaders in an effort to hire Our department is not very diverse, so it is vital that our teams get the message about gender equality at Decathlon. In 2018 paraplegics). Offcarr, an Italian company, Society, our teammates began to offer more people with disabilities. Through a all our managers received training about sexism through the Blow the Whistle workshop. We want to take care of our people, manufactures these wheelchairs quiet shopping times starting in October partnership with the Italian Association as they are at the heart of our ambitions and our values. exclusively for Decathlon and the models 2018. During specific hours, the stores for People with Down's Syndrome, were developed in collaboration with our suspend use of the loudspeaker, turn VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY Decathlon Italy offers internships to WHAT EFFECT DID THIS CAMPAIGN HAVE? teammates. In 2018, 80 wheelchairs and off the music and turn down the lights young sports players living with Trisomy around 100 spare parts and accessories to make shopping easier for customers The campaign helped managers and teams tackle the thorny issue of sexism. This is reassuring for everyone, because they 21, many of whom have gone on to be hired

DEFP2018 were sold. with autism and their families. understand the issue and they have information they can refer to. Everyone got the message very quickly thanks to the clear by stores. At the same time, the Aequalis frame of reference and easily identifiable contacts. project from Decathlon Italy is making In Hungary, an in-house campaign sport accessible to individuals with encouraged recruiters to hire people DECATHLON disabilities. Wheelchairs and spare parts with disabilities, resulting in the hiring have been available for purchase on the of nine teammates with disabilities 22 23 2. QVT: Quality of Life at Work. CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

Aréli Emergence Program WORK KNOWS NO AGE, THE INTERGENERATIONAL PROJECT AT DECATHLON FRANCE The goal of the Work Knows No Age As part of this work, a number of measures project launched in 2018 is to be more are available to help teammates prepare attentive to Decathlon France teammates for retirement, if that is what they want, over the age of 55. Experience- and to continue working and manage sharing between teammates and a the end of their careers under good multigenerational workforce make our conditions. For instance, we have offered company stronger and more productive. them the option to modify their working Among other things, older teammates hours and provided training courses have a great deal to offer in terms of with information about preparing for maturity, perspective and experience. retirement. Our company also offers The project involves implementing personalised retirement assessments and following through on our starting at age 55. retraining agency for the French Ministry intergenerational agreements from In addition to providing information, we OPENING DOORS AT DECATHLON of Armed Forces), with whom we formed October 2016. It enables Decathlon to also encourage our teams to honour the a partnership to help veterans find communicate more clearly about our careers of teammates who have been employment, or the Come See What I Do intergenerational policy and focuses with the company for 20, 30 or even 40 FOR GREATER SOCIAL INCLUSION project that helps year-10 students who on three main themes: hiring and job years by organising festive celebrations. do not have an extensive network land retention for seniors, sharing skills IN FRANCE their first internship. across generations, and navigating the end-of-career (retirement) transition. We also have a large number of local 0.8% For the past few years Decathlon has professional world and our passion for OF THE TEAMMATES been working to give a second chance sport. At Decathlon we believe in the partnerships. Through our partnership to people at or near the margins of power of sport to help individuals re-join with the Aréli organisation we were able ARE OVER 55 IN THE WORLD, society. These may be people looking society and get their careers on track. All to mentor 15 young people at Decathlon OR 756 TEAMMATES to join a new network, people who have these efforts will contribute to building in 2018. These five-year mentorships, experienced setbacks in their careers, or our commitment to corporate social part of the organisation's Emergence people who are getting back on their feet. responsibility. programme, are designed to help talented young people from underprivileged The goal is to help these individuals Decathlon is supported in this by backgrounds succeed academically and by welcoming them into our company a network of national reintegration professionally. where they can experience the partners like Défense Mobilité (the SATISFIED PART-TIME EMPLOYEES, A DECATHLON PRIORITY

At the end of 2018, Decathlon had 6,739 The Decathlon part-time policy is process. For instance, we put together a part-time employees on permanent based on giving priority to meeting the “part-time” tool kit for team managers in contracts in France. employee’s work schedule request at the order to give them useful guidance when TESTIMONIAL In early 2018 a new survey of all our time of hiring. Our company has modified it comes to complying with the rules for part-time employees on permanent our hiring process to ensure that the part-time employment. 3 FROM ARÉLI contracts revealed that 21% of them were needs of the future employee and those In addition, when part-time employees not satisfied with their hours. Decathlon of the recruiter are a good fit. Recruiters begin a new job, they receive an email took substantial steps to improve the now wait to see what the applicant's ideal to inform them of the rights and situation. The survey is conducted every hours would be before stating their own responsibilities of their new position. "The partnership between Decathlon France and Aréli's Emergence programme was first and foremost a chance to work needs. That prioritises the applicant's six months and the following survey These various measures are designed with incredible people and share our common values: promoting employment for young people, helping them discover the wishes and keeps employees from being showed that the number of employees to increase the number of part-time company, how it works, its jobs and responsibilities, and building bridges between young people and Decathlon through hired for hours they do not want to work. who were satisfied with their hours had teammates who are satisfied with their VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY sporting activities and training. risen by 3%. We undertook a series of actions in hours. We had some big successes in 2018: holding multiple events at Decathlon at key points in the programme, such as orientation parallel to these changes to the hiring

DEFP2018 day for the newest crop of young people and the launch of 15 mentorships that became part of team projects. We are delighted about the active collaboration with the Decathlon teams; the enthusiasm of our partners supporting our mentees over the long-term will, we hope, inspire other employees to join us!" DECATHLON

24 25 3. http://www.areli.fr/le-programme-emergence CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

READY FOR RESPONSIBILITY AND FREEDOM We live in a world that is volatile, uncertain, continued experimenting locally, making complex and ambiguous (abbreviated changes and diving even deeper. The as VUCA), with digitisation, globalisation goal is to prepare each teammate, each and the race toward progress on the team, each site and each country to one hand and resource depletion and experience and develop the first part of rising inequality on the other. In the our Vision 2026: “Do what I love”. face of these realities, companies This transformation is people-focused must be agile, quick and efficient. They and virtuous, yet it is also demanding need teammates who are willing to be and requires guidance in order to daring, assume responsibilities and take anticipate the problems teammates decisions locally that make sense for may encounter during a time of major their immediate surroundings. change. To encourage our Decathlon In 2015 Decathlon began a process teams to be autonomous and engaged, of managerial transformation that we have provided them with skills plans continues to this day. In 2018 our teams and the resources they need to succeed. RALLYING AROUND THE VISION 2026 AND PUTTING IT INTO PRACTICE AROUND THE WORLD RESPONSIBILITY AND FREEDOM AT DECATHLON IN FIGURES Decathlon's Vision 2026 has been rolled out in some 40 countries around the world since the five pillars were chosen in 2016: doing what I love, co-creating unique products, making @store a fantastic experience, being where we are needed, and protecting AS OF 31/12/2018, WORLDWIDE people and the planet. In September 2018 a company survey of 5,000 teammates around the world found that 75% of them were aware of the Vision, 10% were putting it into practice every day and 92% felt motivated to take it to the next level.

Vision Day in Milan: On 26 and 27 86% 412 90% OF ALL April 2018, Decathlon Italy launched OF OUR TEAMMATES TEAMMATES HAVE DECATHLONIANS STATED an annual Vision Day with 150 Vision THAT THEY ARE MOTIVATED leaders and point people. The event THROUGHOUT THE WORLD TAKEN ADVANTAGE OF was held at the former site of the Milan STATED THAT THEY TAKE INTERNAL MOBILITY AND INCENTIVISED TO universal exposition, a location with a DECISIONS AS CLOSE TO OPPORTUNITIES THANKS TAKE PART IN THE FUTURE strong sustainability ambition. The aim ACTIONS THAT ARE PART of the encounter was to talk about what THE ACTION AS POSSIBLE TO THE POSTINGS countries had already achieved with 4 IN THEIR WORK EVERY DAY ON THE IN-HOUSE OF THE VISION 2026 regard to the five pillars and to motivate CAUSE 1 CAUSE 5 JOB OFFER PLATFORM the ambassadors in attendance to Do what I love Protecting the planet implement the Vision in their home and its inhabitants to countries. Over the course of the two-day protect our purpose event there were plenty of opportunities to share and get inspired: our Italian teammates presented the Aequalis project, an in-store international sign language (ISL) project, the creation of 2018 ESSENTIALS the Fenc’it Decathlon brand for fencing, and an idea for recycling textiles into > DECATHLON ENCOURAGED TEAMMATES TO EXPERIENCE AND ENGAGE WITH THE VISION 2026. shopping bags. All these initiatives align VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY with one or more of the Vision 2026 > AUTONOMY, ACCOUNTABILITY AND LOCAL DECISION-MAKING ARE EXTREMELY POPULAR. priorities. CAUSE 2 CAUSE 4

DEFP2018 > EVERY TEAMMATE IS RESPONSIBLE FOR MANAGING THEIR OWN CAREER PLANS. Co-creating unique products Being there when > TEAMMATES CAN PLAY DIFFERENT ROLES AND TAKE ON DIFFERENT RESPONSIBILITIES we are needed AS PART OF THEIR JOB. DECATHLON CAUSE 3 26 Making @store a fantastic experience 27 4. For the 5,000 teammates who participated in the company survey. CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

DIVERSE RESPONSIBILITIES THE ENTREPRENEURIAL FOR GREATER FULFILMENT SPIRIT AT DECATHLON At Decathlon, each teammate is involved In the summer of 2017, the Entreprendre today’s challenges and the rapid in a project that entails one or more by Decathlon project was rolled out for changes occurring in society. Anyone responsibilities: TESTIMONIAL our French teammates (the first wave) in the company can be a part of this to help them "act boldly" by developing effort. Support from other people helps THEIR PRIMARY RESPONSIBILITY: AXELLE KIERS innovative projects. Coming out of the bring ideas to life with an ever-growing this is their job, accounting for up to Vision process developed in 2016 and palette of training programmes, regularly 100% of their working time. However, OLE building on the idea of freelancing, scheduled workshops and input from teammates may choose to structure N ET "I have been working as a our corporate transformation strategy communities (understanding how to their time so that they can take on one communications and events contributes to the first pillar of our vision: start a business, write a business plan, or more additional responsibilities that manager in the Innovation “Do what I love”. The goal is to encourage identify a target market, test an idea and contribute to other projects, with their department for three years now. people to act boldly and show initiative by so on). There is also a digital community team leader’s permission of course. That is my main role. Once I felt advancing the idea of entrepreneurship for any teammates interested in or ready proficient at this job, I was able to within the Decathlon culture to address to become entrepreneurs. M O take on another position with the

SECONDARY RESPONSIBILITIES: N OLE Sustainable Development team, in addition to their primary responsibility, where I now spend 20% of my these present an additional opportunity working time. That way I am able AT DECATHLON, TEAMMATES WHO WANT TO BE ENTREPRENEURS CAN CHOOSE FROM DIFFERENT OPTIONS: for teammates to express their talents to capitalise on my skills and put and contribute to value creation in a new 1. AS EMPLOYEES: THIS MAKES TEAMMATES "INTRAPRENEURS". them to work for another team." way. VALUE CREATED 2. BY BECOMING FULL PARTNERS (INDEPENDENT): THIS MAKES THEM "ENTREPRENEURS". 3. BY COMBINING THESE TWO OPTIONS AND BECOMING A HYBRID ENTREPRENEUR, SHARING THEIR TIME BETWEEN THE TWO.

Ten projects were created in 2018. These included in-store sport coaching from salespeople, having users loan each other sport products, renting second-hand sporting equipment at affordable prices, and setting up an innovative process that uses robotics and artificial intelligence to help stores stock shelves and do other tasks more efficiently. At Decathlon, people have always been Teammates can play multiple roles if they REASSERTING the heart and soul of our organisation. choose, supported by a developpment We identify four roles for our teammates: plan. Their responsibility is to adopt the THE ROLE  Resource teammates contribute to right attitude at the right time and to one or more projects as part of their choose the right role for the situation and OF LEADER work. the project.  Leaders lead a project and a team, and In 2018 we put our focus on the leader are responsible for creating value. role during Leader Day on 12 June, which was attended by 300 teammates from FOR OUR  Coaches support teammates in their many different countries. During this INTERVIEW personal development. event, the attendees were reminded of PROJECTS  Specialists put their specialised ALEXANDRE MIQUEL the importance of the leader mindset ATELIER SPORTIF INTRAPRENEUR AND SALESPERSON expertise and skills to work to support as well as their many responsibilities: AT THE PORTET-SUR-GARONNE STORE IN FRANCE IN 2018 teammates. clarifying what we do and do not stand for, putting subsidiarity into practice, and creating value. CAN YOU TELL US ABOUT YOUR PROJECT? Atelier Sportif is a gift card that is good for a workshop or a course on bike maintenance and repair and the equipment that goes with it. There are several levels to choose from (beginner, intermediate or expert) and you can add additional products to the gift card. At the end of 2018, a total of 430 gift cards had been sold at the Portet-sur-Garonne store and 380 customers had completed a workshop. Eleven other French stores have come on board since November 2018. VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY HOW DID DECATHLON SUPPORT YOU IN THIS INITIATIVE?

DEFP2018 I got in touch with the right people. Currently, my primary sponsor is the Workshop, which is funding the project, and the Rockrider Decathlon brand is helping me with the vision and value creation aspects. With their help, I will spend a year rolling out my project in other stores and testing it on a larger scale with the human and financial resources I’ve been given. Right

DECATHLON now I'm a salesperson on Saturday and a project manager on weekdays. I can take training that contributes to my personal RESOURCE LEADER COACH REFERENT development and directly supports my project. 28 TEAMMATES 29 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

EMPLOYEES TAKE OWNERSHIP DEVELOPING OF THEIR CAREERS WITH HELP FROM PEOPLE AND DIGITAL TOOLS SKILLS AND In conjunction with the existing mobility options, the self-management project gives each and every employee the chance to take UNCOVERING TALENT ownership of their career path. The project is based on transparent information through a training course and three interconnected digital platforms that include a programme called Create Your Own Journey: Providing employees with training creating new positions and providing throughout their careers is essential opportunities to develop new skills. for them to maintain the skill sets that By changing the way that knowledge In 2018, a total of 186 Belgian teammates  Talent presents each person’s career path and profile to promote interaction they need to develop all our company's is passed on, especially by defining the took advantage of a two-hour module on between teammates. Feedback indicates that Talent is a driver for spreading a culture strategies. role specialists play at the company, discovering and promoting their talents, of positive retroactive comments (especially through mutual recognition of skills and Training ensures that teammates we have shifted the emphasis to and 22 participated in training to identify recommendations). are able to pursue their professional sharing knowledge and real-world their value creation zone using the Ikigai  Job Offer optimises access to in-house job offers. This platform posted 691 development, both for skills directly experiences while continuing to method. job offers in 2018, to which a total of 5,461 applicants responded. Ultimately, 412 linked to their jobs and for their overall prioritise self-assessment and the digital teammates changed jobs thanks to the site. Born out of the Vision process in 2016, personal development, by helping them transformation. Create Your Own Journey fits with the adapt to the many changes in their work This learning method promotes  Projects makes it easier to post and share projects. The platform listed 1,099 “Do what I love” pillar by supporting the environment. projects in 2018. teammate autonomy by stressing the transition to a role-based structure. Decathlon makes sure that every importance of skill development and These platforms are available in all Decathlon countries. Eighteen countries now use teammate has the resources they need at personal fulfilment through an agile them actively (compared with10 in 2017); these are countries where there is a local every point in their careers to help them structure that is open to all. contact person to manage them. become more autonomous while also

TRAINING AT DECATHLON IN FIGURES AS OF 31/12/2018

PROMOTING SUBSIDIARITY 1,368,118 HOURS OF IN-PERSON TO ADVANCE OUR PURPOSE 6 DECATHLON TRAINING AND 190,887 HOURS OF E-LEARNING COURSES EXCHANGE COMPLETED BY DECATHLON TEAMMATES Since 2015, Decathlon has been pursuing In 2018 we sent out a survey to all our WORLDWIDE a managerial transformation process employees that included the question: TRAINING CENTRES to focus on trust and responsibility. In "Are you the person who takes decisions WORLDWIDE 2018 we concentrated our efforts on on issues that affect you?" Of the 7,131 the subsidiarity principle: ensuring that teammates who responded, 70% stated 5 EMBASSIES MONITOR TEAMMATES DELIVERED decisions are taken locally, as close that they put subsidiarity into practice 7,815 to actions and outcomes as possible. every day. AT LEAST 1 TRAINING SESSION IN 2018 The right conditions must be in place WORLDWIDE to ensure that each teammate has the chance to experience this subsidiarity: more collaborative working approaches, greater agility, more empowerment, TESTIMONIAL clearly defined frameworks and 2018 ESSENTIALS transparent information. The goal NATHALIE TIBERGHIEN is to move from a pyramid-based HUMAN RELATIONS MANAGER IN FRANCE

VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY management structure with centralised > DECATHLON DEFINED THE ROLE OF COMPANY SPECIALISTS FOR GREATER AGILITY decision-making to a set of autonomous IN THE ROLL-OUT AND SHARING OF SKILLS KNOWLEDGE BASES. and interdependent multidisciplinary

DEFP2018 "Personal development is key. The company cannot change unless the people > DECATHLON MADE IT EASIER FOR ALL OUR TEAMMATES TO ACCESS projects. These are human-scale and within it change. Working on your self, your emotions, your deeply held values.... SKILL-BUILDING TOOLS THROUGH THE DECATHLON ACADEMY PLATFORM. network-based projects that help people When you know who you are, you trust yourself and others, you choose your take decisions that are right for their local responsibilities and you decide." > DECATHLON EXCHANGE CONTINUED TO ADD CENTRES AND EMBASSIES THROUGHOUT DECATHLON contexts. THE WORLD. THEIR GOAL IS TO PROMOTE PERSONAL DEVELOPMENT, EMPOWER OUR TEAMMATES AND CONVEY OUR CORPORATE CULTURE. 30 31 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

DECATHLON ACADEMY: ENHANCING CAREERS AND EMPOWERING PEOPLE LOCALLY

Decathlon wants each and every teammate to be able to measure their progress and performance independently and develop the skills they need to advance their careers.

In 2018 Decathlon created a single point The project has been deployed in of entry resource for skill building: the France. Fo other countries, launching will digital Decathlon Academy platform. continue till 2020. In France, the choice The goal is to ensure that every was made to designate local training teammate can access the skills they leaders whose job would be to build a would need for any Decathlon position, network of specialists for a specific area HELPING PEOPLE REACH THEIR POTENTIAL so that they can take control of their own (for example, a given town, store, etc.). careers and make collaboration between The role of specialists as well as their AND PROMOTING OUR CORPORATE CULTURE sectors more fluid. skills framework and responsibilities were also determined. The Decathlon Academy group built THROUGH DECATHLON EXCHANGE up a skills database that will help our As part of our continuous improvement teammates take an à la carte approach to approach, we revisited the content of any Since 2005, the teams at Decathlon reach their full potential by encouraging Course, open to all employees with their career plans by choosing the skills training programmes given less than 4 Exchange, which are now active in nine them to think about their personal access to a complete range of content in that they actually need. Each skills leader out of 5 stars by learners. countries, have supported teammates development to promote empowerment- online and video formats; suggests processes, tools and trainings as they take control of and manage based management.  Our corporate culture shared with that facilitate local decision-making. their career plans; sharing Decathlon's The three main priorities for Decathlon 100% of our employees throughout the values, corporate culture and vision with Exchange in 2018 are: world through our Values and Purpose employees helps them dare to become  An educational training ladder, training programmes. empowered and make decisions. available online and in-person to A worldwide Decathlon Exchange Aligned with the first pillar of the facilitate the personal development of network was also set up to share our Decathlon Vision, "Do what I love”, the each teammate; values and encourage everyone to main goal is to help all employees  A new online learning platform, Dex embrace our corporate culture. THE ROLE OF A DECATHLON ACADEMY SPECIALIST : In 2018 we relied on local Decathlon Academy leaders and specialists to develop our training strategy. We wanted FOCUS to ensure that every Decathlon employee would be able to successfully use the skills base, in collaboration with the local Decathlon Academy leader. The Decathlon Academy specialist is in charge of all learning methods associated with a skill.

TESTIMONIAL The role of Decathlon Academy specialists includes three main responsibilities: NARATH CHHEAV 1. Developing the skills of each teammate: They are in charge of providing support and ensuring that teammates DECATHLON EXCHANGE LEADER IN CAMBODIA apply what they learn to their work. 2. Helping teammates acquire new skills: They analyse the requirements of a given area (country, store, etc.) and propose action plans that will help build the skills that are needed. WHY DID YOU WANT TO OPEN A DECATHLON EXCHANGE IN CAMBODIA? 3. Contributing to skill assessments: They make themselves available to skills leaders and coordinate the My main goal was to ensure that all our teammates would have local access to the Decathlon values and purpose. During various learning methods that have been selected by the leaders locally. They can also suggest and develop the week-long launch of the Decathlon Exchange, we held several workshops focusing on roles, in particular through the training programmes locally as needed. VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY Values and Purpose seminar. The purpose of this work is to promote self-assessment so that each individual can evaluate their own successes WHAT KIND OF SUPPORT DID YOU RECEIVE?

DEFP2018 and areas for improvement through questionnaires and interviews. The country leader was the first to support the project. Later, the Decathlon Exchange team in France provided a lot of assistance. We formed the team quickly thanks to our enthusiastic and motivated teammates. The Decathlon Exchange To encourage employees to apply to become Decathlon Academy specialists, a dedicated training course called Embassy network also gave us a great deal of support, especially the dedicated teams in India and Vietnam.

DECATHLON Thinking Like a Specialist was pilot tested in 2018 and has been rolled out since February 2019.

32 33 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

DECATHLON ACADEMY UP AND RUNNING IN CHINA DELIVERING Following in the footsteps of the French project, Decathlon Academy was launched in China in 2018 to help all our TESTIMONIAL HEALTH AND SAFETY teammates, especially those in stores, access training and encourage them TRACY SHI The health and safety of our teammates, development day-to-day, reduce stress to take charge of their learning. One DECATHLON ACADEMY LEADER FOR CHINA customers, corporate service providers and support teammates who are of the areas that the team overseeing and sports users is a top Decathlon experiencing difficulties. the project worked on was updating priority. The care that goes into creating a The personal safety of customers and the online learning platform that will fulfilling work environment for everyone, employees is a daily concern in every "We needed to launch and update this digital platform in China so that we replace existing tools over time so that thanks to prevention and safety country where Decathlon operates. could deliver a powerful learning experience to all our teammates. Our goal we will eventually have a single learning procedures, is extremely important. We follow a process based on safety was to encourage them to play an active role in their own learning, especially by ecosystem. Prevention initiatives for our teammates’ standards, groups of specialists who leveraging the post-training self-assessments. Plus, China's rapid economic health focus on two areas: first, physical discuss procedures, and teammates who Any teammate will be able use this development meant that we had to offer a mobile solution that was easy to health and arduous working conditions, are tasked with leading and upholding platform to take online or face-to-face use and accessible from any device. The initial feedback since we updated the with encouragement to play a favourite this responsibility at the local level. courses and interact with the various platform is highly encouraging: our teammates say that the platform is more sport and consideration of work communities that have been formed efficient and more in line with the direction our company is taking.” to share best practices and make the postures; and second, mental well-being, training materials on offer even better. with efforts to ensure professional

SUSTAINABLE DEVELOPMENT TRAINING FOR AN ACROSS-THE-BOARD IMPACT HEALTH AND SAFETY AT DECATHLON IN FIGURES AS OF 31/12/2018 Sustainable Development is a theme with was to make a real difference on the At the same time, we developed its own dedicated section on Decathlon ground, where they work. To help with and rolled out an engaging training Academy. We chose to organise the this, sustainable development training programme specifically for our stores in challenges in connection with this programmes for every level are now France to give our teammates what they topic on the platform so that we could available on Decathlon Academy. were asking for: a chance to organize cover all the Sustainable Development An online course (comprising 20 sustainable development initiatives that roles at Decathlon and offer a training e-learning modules: understanding are part of their daily lives. This training OF programme for each of the identified the issues, understanding eco-design, course was developed in collaboration 79% 93% 316 jobs. understanding the carbon footprint, etc.) with around 20 employees from all over TEAMMATES PLAY FELT SAFE IN THEIR QUALITY OF LIFE In 2018 an in-house barometer found was developed to help all our Decathlon France. THEIR SPORT REGULARLY WORKPLACE IN 2018 AT WORK SPECIALISTS that what teammates wanted most employees learn about the challenges and test their knowledge. 1% LESS THAN IN 2017 1% LESS THAN IN 2017 IN FRANCE

TESTIMONIAL CHARLES FRYS ROLLER SPORTS LEADER AT THE STORE IN LEERS, FRANCE

WHY WAS THE SUSTAINABLE DEVELOPMENT TRAINING PROJECT 2018 ESSENTIALS IMPORTANT FOR YOUR STORE? This is something I believe in and an important topic for our company in today's world, especially given how big we are! It's an issue that I really care about. More and more of our teammates are becoming attuned to this, which is why we > DECATHLON INSTITUTED A NETWORK OF LOCAL SAFETY MANAGERS THROUGHOUT THE VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY created this course; our goal was to develop a comprehensive training programme for the stores and to have sustainable WORLD TASKED WITH MANAGING AND ENSURING COMPLIANCE WITH SAFETY RULES FOR development leaders in each store. TEAMMATES AND CUSTOMERS IN OUR STORES.

DEFP2018 > WE CREATED AN OFFICIAL PROCESS FOR PREVENTING AND ADDRESSING PSYCHOSOCIAL WHAT CONCRETE STEPS HAVE YOU TAKEN IN THE WAKE OF THE TRAINING? RISKS THROUGH THE BE + PROJECT IN FRANCE. At the Leers store we started with small steps like replacing all disposable cups with reusable ones and implementing a

DECATHLON "zero discarded product" target thanks to partnerships, as well as a project at the Lompret warehouse to give products a > A REVIEW OF ARDUOUS WORKING CONDITIONS IN WAREHOUSES AND STORES IN FRANCE WAS second life. LAUNCHED AND ERGONOMICS EXPERTS ARE LOOKING AT WORK POSTURES AND SCHEDULES. 34 35 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

HIGHLIGHTING SOLUTIONS KEEPING CUSTOMERS TO PREVENT PSYCHOSOCIAL RISKS AND TEAMMATES SAFE According to the OECD, mental health Be + also offer a series of audio resources, concerns like depression affect more relaxation and meditation sessions, and AROUND THE WORLD WITH than one in six people in Europe and simple breathing exercises, all of which cost over €600 billion, or 4% of global help people become aware of the problem THE SAFETY UNITED NETWORK GDP. To achieve well-being at work, it and take a step back to get a sense of is essential to strike a balance between perspective; it also offers a dedicated DECATHLON CONSIDERS with criteria that have been tailored to safety risks. As part of this effort, each one’s personal life and professional life. community (Bubble and Well-Being). For THAT KEEPING account for local circumstances. member of the safety network makes Difficulties can arise in either of these day-to-day issues, Human Resources The Safety United network is made a commitment through a signed letter spheres, affecting the individual's entire contacts and QVT specialists (see p. 21) TEAMMATES, up of teammates from all levels of the of engagement with the Safety United outlook. are trained in active listening skills and USERS, company (from operations managers specialist and the country safety leader. taught to recognise warning signs. We are currently working to implement a To prevent these problems, Decathlon CUSTOMERS to country safety leaders all the way up has instituted a series of measures in If the risk is confirmed, teammates in to a global safety officer). The network global performance indicator for keeping France to alert us when our teammates France have many different internal AND SERVICE PROVIDERS maintains the focus on safety throughout people safe in 2019. are going through hard times so that and external resources that they can SAFE AROUND THE the world. In France, safety captains are in charge of keeping our teammates and users safe in we can offer them the support they access anonymously: social workers WORLD IS ITS PRIMARY Revised international specifications were need. These measures are part of the (hotline), psychological care (from published in April 2018. All country safety our stores and warehouses. Every store Be + project, which focuses on reducing an outside provider), and short-term RESPONSIBILITY. managers now have a contact person has an average of 6 to 12 safety captains psychosocial risks that include, for support programs after traumatic (in particular, all department managers), As part of our efforts to promote who acts as a specialist within the example, burnout, harassment and events, including the deployment of a who receive regular training on a variety autonomy and subsidiarity, safety is now Safety United network, enabling them to factors that may upset the work-life psychological response unit within 24 to of topics (handling evacuations and handled locally by those most familiar perform self-assessments and ensure balance. 48 hours after a death, a robbery, etc. accidents, for instance). with the local context. At Decathlon we that all the minimum requirements and maintain our strict standards in this local rules are in place and properly How well safety is managed locally is arena by giving each country and each overseen; whatever stage the country assessed using different metrics, from store a set of minimum requirements is at, the local level of oversight must on-site self-assessments to external (see below) that ensure safety remains be the same. Once again, the goal is audits performed by the Decathlon The risk factors are broken down into Two training programmes are available a priority. These are then fleshed out to ensure that the country is able to internal auditing team. RISK different categories, such as: in France to prevent risks and limit or independently and responsibly manage  work schedules (working at night, eliminate arduous situations for our PREVENTION: working on a series of alternating teams, teammates: “Movements and Posture” repetitive work); and “Preventing Risks Related to Physical Activity”. ARDUOUS  the physical environment (hazardous chemicals, high-pressure environments, In 2018 a working group in France extreme temperatures, loud noises, etc.); tasked with analysing conditions in our warehouses developed WORKING  significant physical strains on recommendations from ergonomics teammates (uncomfortable postures, experts, in particular with a group of handling heavy loads, etc.). CONDITIONS instructors and engaging content to get PROTECTING TEAMMATES ON INTERNATIONAL BUSINESS TRIPS

As part of a risk prevention process, the messages across more effectively. FOCUS International business trips are often a key part of Decathlon teammates' job responsibilities. To make their trips Decathlon has identified the occupational as safe as possible, Decathlon recommends that they take certain precautions before, during and after their risk factors that are likely to affect the trip. The recommendations can be found on a dedicated website and application5. As a preventive measure, the health and safety of our teammates TEAMMATES WHO STATE THAT around the world. These risk factors health centre for our Lille sites – where the vast majority of international travellers are based – is given a list are measured in terms of time (length THEY PLAY THEIR SPORT REGULARLY of teammates who are planning to travel a month before their trip. Travellers are offered an opportunity to talk of exposure in hours or frequency) and about potential health risks associated with their trip, such as the risk of certain diseases, vaccines or boosters intensity (weight, auditory volume, etc.). O they might need, risks related to water or food consumption, etc. During their overseas trip, teammates can at NOT EALL D any time request medical assistance from an advisor familiar with their specific destination, and ask for care NO NOT AT ALL S adapted to their needs. After the trip, teammates receive a questionnaire about the conditions during their trip. VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY 20% AOLTEL

DEFP2018 43%

DECATHLON S ATE 36 37% 37 5. Service provider : SOS International. CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

this role, special support resources, and ATTRACTING TOMORROW’S clear, streamlined pathways such as ATTRACTING, REWARDING the "work-study to future department TALENT THROUGH WORK-STUDY manager" track. Meanwhile, the #ChooseYourTeam AND MOTIVATING TEAMMATES communication campaign was launched OPPORTUNITIES IN FRANCE in 2018 to showcase Decathlon's Our teammates are the heart and soul commitment to hiring students with of our business at Decathlon, and To achieve our growth objectives, In 2018 a total of 35% of these hires signed a passion for sport, giving them the we communicate with them about Decathlon attracts work-study hires permanent contracts, compared with opportunity to turn a work-study compensation from the moment they by onboarding them and giving them 25% in 2017, and our efforts to improve position into their first job at Decathlon. join our team. Our compensation policy is responsibilities as rapidly as possible. how we bring our work-study hires on Decathlon helps make work-study hires designed to help employees feel involved At the end of 2018 we had 979 people board are expected to steadily increase more employable thanks to a positive in our company's financial performance, in work-study positions, representing this figure. Most importantly, 92.5% of first professional experience while to empower and motivate them, and to a significant recruitment resource our work-study hires were satisfied with positioning the company as a promoter attract new talent. for our company. We created these their experience at Decathlon in 2018. of professional and social inclusion for opportunities with several key goals in At Decathlon, our compensation We instituted a host of new initiatives young people in France. package has three goals: supporting mind: in 2018 to improve onboarding and In line with Decathlon's belief in company strategies, fairly compensating  Decathlon is committed to helping retention for our work-study hires: subsidiarity, work-study hiring strategies employees for the value they create, and young people enter the workforce;  During the onboarding process: take different forms in different locations. paying wages that are commensurate  Decathlon wishes to retain 100% of welcoming and orientation events for In some regions, we have formed strong with salaries paid to other teammates our work-study hires as they finish work-study hires in every part of France, partnerships with schools and clubs and with labour market rates. Decathlon their studies by offering permanent or a regular newsletter with the latest news, to help identify talent and offer young also gives employees the chance to temporary contracts; and a discussion community on the people the chance to set out on their first become company shareholders in many  100% of work-study hires and interns company social network; career adventure. of the countries where we operate. are satisfied with their experience at  Ongoing support: a mentoring Decathlon. programme to enhance and substantiate

COMPENSATION AT DECATHLON IN FIGURES AS OF 31/12/2018 GIVING TEAMMATES 52.5% A VOICE IN THEIR COMPENSATION OF TEAMMATES ARE The goal of Decathlon's compensation To help teammates better understand (overall package, sharing value created 2.1 scheme is to empower all our their compensation, the programme and employee benefits) as well as outside DECATHLON SHAREHOLDERS teammates and help them feel invested launched in 2017 – to give teammates information (pay scales elsewhere). BILLION OF EUROS IN 37 COUNTRIES in our company's financial performance, a voice in how they are compensated By bringing into perspective all of this TOTAL WORLDWIDE our mission and our values through a – was expanded to all locations in internal and external data and offering 59% comprehensive compensation package. France thanks to training for all Human a clear snapshot of each teammate's PAYROLL OF TEAMMATES FEEL THAT THEIR One of the core elements of the package Resources teams working on this topic. performance and level of responsibility, +4% COMPARED TO 2017 SALARY IS FAIR COMPENSATION is the idea of profit sharing, which draws The training module includes in-house we are helping our teammates play an FOR THEIR RESPONSIBILITIES on incentive and shareholding systems to information pertaining to Decathlon active role in their compensation. help employees become "part owners" of SAME NUMBER AS IN 2017 their company and also build up assets. Two years ago, Decathlon decided to incorporate customer satisfaction into OUR TEAMMATES FEEL THAT THEIR SALARY the incentive system in France. The IS FAIR COMPENSATION FOR THEIR RESPONSIBILITIES addition of non-monetary performance AS A % helps teammates feel more motivated 2018 ESSENTIALS about the company's financial and extra- VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY financial performance. > DECATHLON RELIES ON WORK-STUDY OPPORTUNITIES AND HAS IMPROVED THE DEFP2018 ON-BOARDING PROCESS OF NEW WORK-STUDY HIRES. % % % % > EMPLOYEES ARE GIVEN SUPPORT TO HELP THEM HAVE A VOICE IN THEIR COMPENSATION. 20 206 20 20

DECATHLON > WE CONTINUED TO MAKE SHAREHOLDING MORE INTERNATIONAL, WITH 37 COUNTRIES PARTICIPATING IN OUR EMPLOYEE SHAREHOLDING SCHEME. 38 39 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

PARTAKING IN THE VALUE THE DECATHLON FOUNDATION: CREATED THROUGH SHAREHOLDING Shareholding offers an opportunity SHARING THE VALUES for teammates to make a long-term investment in their company and to join in a shared venture. This gives them the OF SPORT TO HELP PEOPLE tools to better understand Decathlon's business and financial performance, so they can build up assets and feel more OVERCOME CHALLENGES involved and empowered. With teammates who help drive the company’s economic performance, IN THEIR LIVES shareholding is a real plus for our Since 2005, the Decathlon Foundation Serving all our Decathlon teammates, company and makes us a more attractive has provided support to teammates the Foundation supports any country employer. who wish to take part in initiatives by that is interested in developing their In 2018 a number of countries came on non-profit organisations with the aim of own local Foundation team. Today, four board with shareholding, keeping up the forging an alliance between sport and countries have autonomous teams. This rapid pace of country roll-outs. employability. aligns with our commitment to develop Our goal is to have our shareholding Believing that sport is an excellent projects as closely as possible to local liaisons, numbering 412 in 2018, driver for access to employment, concerns. communicate information to our the Foundation helps build lasting In addition to these community-focused teammates and make sure that everyone connections between teammates, the activities, the Foundation also works to has equal access. people they help and organisations assess our environmental and social Decathlon that are making a difference in their footprint, especially in India, so we can shareholding opening, communities. By making sport calculate the overall regional impact of Egypt (Nov 2018) accessible to people in difficulty and by Decathlon's activities. helping teammates create long-term ties with their neighbours, the Decathlon Foundation is putting our company's values and purpose into practice.

KEY FIGURES FOR THE FOUNDATION AS OF 31/12/2018

315,000 PEOPLE IN DIFFICULTY WHO HAVE OUR SHARE VALUE INCORPORATES 38 RECEIVED ASSISTANCE (SINCE 2005) NOW PLAY A SPORT THANKS DECATHLON'S EXTRA-FINANCIAL PERFORMANCE IN 2018 PROJECTS TO THE LOCAL ENGAGEMENT OF OUR TEAMMATES

FOCUS AND THE SUPPORT OF THE FOUNDATION Decathlon creates economic, social and environmental value, our sustainable development strategies and SPONSORED initiatives are built into the value of Decathlon shares. This means Decathlon's environmental, social and IN 2018 societal performance is directly tied to our financial performance. It also enables us to highlight extra-financial BY DECATHLON 65,000 PEOPLE HELPED values linked to long-term performance for all those who are part owners of the company. TEAMMATES BY PROJECTS APPROVED IN 2018 Decathlon's extra-financial performance is assessed based on all our sustainable development strategies and initiatives, with a focus on six representative indicators: how much our teammates enjoy coming to work, user satisfaction, human responsibility in production, environmental responsibility in production, carbon management and environmental labelling.

VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY 2018 ESSENTIALS

DEFP2018 > AUTONOMOUS CONTACTS WERE DEVELOPED IN COUNTRIES THAT HAVE CREATED THEIR OWN COMMITTEES AND SUPPORTED LOCAL PROJECTS. > THE FOUNDATION'S WEBSITE PROVIDES OUR TEAMMATES WITH ACCESS DECATHLON TO ALL THE INFORMATION THEY NEED TO CREATE A PROJECT AND BETTER UNDERSTAND WHAT INITIATIVES WE SUPPORT. 40 41 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

and select projects that align with the SUPPORTING TEAMMATES WHO WANT TO MAKE THE FOUNDATION'S Foundation's purpose and respond to local needs. Autonomous countries receive support from the Foundation A DIFFERENCE IN THEIR COMMUNITIES INTERNATIONAL ACTIVITIES team in France, supporting and clarifying The projects supported by the The Foundation funds community in events. We fulfil our mission by forging In line with our company's strategic The decision to create a country office processes with the goal of ensuring Decathlon Foundation are spearheaded initiatives through long-term investments ties with others and sharing the values of focus to ensure that decisions are taken is often tied to the number of projects that the local team can choose their by Decathlonians. Every project is in sports fields, facility renovations, sport, all in the interest of helping those by the people most directly affected by that are already spearheaded locally own community-oriented projects, proposed by one or more teammates sporting equipment and training for who have encountered difficulties in their them, the Foundation allows countries to by teammates. These autonomous coordinate their members and help local who co-develop the project with an careers in sport. lives. become autonomous if they so choose. entities organise their own committees teammates learn about community initiatives. organisation they have chosen to support Day-to-day oversight of the project in their region. Behind every project is a is provided by the Decathlonians personal story connecting teammates themselves. They co-develop the THE FOUNDATION'S INTERNATIONAL ACTIVITIES IN ITALY and the people they want to help. project, organise meetings and take part TAM TAM BASKETBALL 4 in team events even if the schools they YOUNG: COMMUNITY-BUILDING attend are far from the practice location. THROUGH BASKETBALL – LA FORGE DU VENT SOME EXAMPLES OF PROJECTS CASTEL VOLTURNO SCUOLA VELA MASCALZONE LATINO: TEACHING SUPPORTED BY THE FOUNDATION IN FRANCE The Tam Tam Basketball association is based in a coastal part of Italy's UNDERPRIVILEGED CHILDREN Campania region near the town of Castel TO LOVE THE SEA – NAPLES DECATH’LET: WALKING SOCCS : SAINT-OMER Volturno, which is home to large numbers WITH CHILDREN FROM THE CRICKET CLUB STARS of immigrants from non-EU countries The Scuola Vela Mascalzone Latino who often have trouble finding work. sailing school is located in Naples, on the MARC SAUTELET CENTRE INTRODUCES THE TOWN’S site of a former naval base. RESIDENTS TO CRICKET Born out of Decathlon teammates’ love Newfeel Decathlon brand leader David of basketball, the idea was to build a In 2010 the school's founder paid to and his wife work with children and SOCCS started out as a group of community of experienced basketball completely renovate the buildings. teenagers at the Marc Sautelet paediatric young disadvantaged immigrants in players who would teach residents to His idea was to help underprivileged Foundation provided funding for their centre in France's Nord department. Saint-Omer (a town in France's Nord play the game. children and teenagers in Naples sporting activities at every phase of discover a love of the sea by learning preparations and financed the purchase The goal for the project is to encourage department) playing their beloved game The Decathlon Foundation donated to sail. Today the organisation offers of 11 additional boats, apparel and basic children who are obese to increase their of cricket with rudimentary equipment. funds to buy apparel and sporting sailing lessons to girls and boys (ages equipment. physical activity and take up Nordic They came up with the idea, formed a equipment for these individuals, and, 6 to 18) from socially and economically walking. team and quickly made it to the regional thanks to the Tam Tam association, The long-term goal is to pass on the disadvantaged backgrounds. The group Through a partnership with the tournament. helped them build a community through values learned through sport, such as has gone one step further and now offers Decathlon Foundation, the Marc Sautelet The beauty of this project is the array of sport and receive psychological and loyalty, strength and perseverance, and The Foundation helped them build a many kinds of support, from after-school centre helped over 250 young people people involved, creating a local network educational assistance. The Foundation orient young people toward professional cricket field and reach out to many programmes to help finding a job and practice Nordic walking in 2018. that includes the store teams, the young also helped with the purchase of a bus, careers with a connection to the sea and children in the area, introducing them to access to a psychologist. The Decathlon sailing. the game. At the same time, the team job-seekers and local organisations so that the participants could take part at the local Decathlon store helped the (non-profits and NGOs). Some of these young immigrants in their efforts to find young people are now trying out for the DECATHLON FOUNDATION ACTIVITIES IN SPAIN employment by giving them guidance on French national team. resume writing and coaching them in job ALDEASSPORT: DEPORTEA: HELPING PEOPLE interview skills. PROTECTING CHILDREN FROM VULNERABLE FAMILIES AND WITH AUTISM EXPERIENCE GUIDING THEM TOWARD INDEPENDENCE – DECATHLON CUENCA THE JOYS AND BENEFITS WITH THE ALDEAS INFANTILES ORGANISATION OF SPORT – DECATHLON Aldeas Infantiles was created to support children from vulnerable families and to POZUELO STORE help them become independent, active members of society. The organisation works This project changes how adults with with children who have experienced parental neglect; through the organisation they autism live by helping them experience THE NEW DECATHLON FOUNDATION WEBSITE can find a secure, nurturing family environment. The organisation also works with the joys and benefits of daily physical the families of children placed in foster care to help the children return as quickly VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY activity. The new Foundation website went live in 2018. Any non-profits as possible to their biological families and if this is not possible, to improve family FOCUS that want to be part of what we do can use this platform to access relations. By improving the physical, mental and emotional well-being of people with DEFP2018 information, and any teammates who are looking for ways to make a The support does not end when they become adults; from then on, it focuses on the autism, the aim is to prevent disease, real difference can explore the available opportunities. skills they need to meet their own needs and to develop resiliency, by offering them the improve motor skills, boost self-esteem tools that will help them be full members of society and join the workforce. and develop autonomy. DECATHLON > www.fondationdecathlon.com/?lang=en The organisation's work is divided into four programmes: protection, prevention, autonomy and cross-disciplinary initiatives. 42 https://www.aldeasinfantiles.es/ 43 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

DELIVERING INNOVATION PRODUCTS AT EVERY LEVEL For Decathlon, innovation has always products as of the design phase and been a strategic priority. We aim to investing in cutting-edge technologies continuously reinvent ourselves so that are just a few of the ways we are making & SERVICES we can always deliver sports solutions this a reality. These approaches help us that work for everyone. This was more create more social value, be active where vital than ever in 2018, as profound global we are needed, have a positive impact changes have forced us to question our and make Decathlon a sustainable modes of consumption. company that innovates responsibly. In 2018 the Decathlon Innovation and The innovative ecosystem at Decathlon Sustainable Development teams chose today is made up of multidisciplinary to join forces to amplify our positive teams who promote innovation by impact. Doing more with less, favouring designing useful, simple and eco-friendly local resources, optimising production, sports solutions. thinking about a second life for our

INNOVATION IN FIGURES AS OF 31/12/2018 3,000 PROTOTYPES PRODUCED IN VILLENEUVE-D’ASCQ, FRANCE, EACH YEAR (SOURCE: PRESS KIT) 3,600 SPORTS ITEMS INCORPORATED INTO ENGINEERS DESIGNERS OUR LINES EACH YEAR 558 350 65% ECO-DESIGN, OF SPORTS MATERIALS SELECTION: USERS DELIGHTED COTTON POLYESTER ENVIRONMENTAL 2018 ESSENTIALS LABELLING: 76% 17.2% > WE EMPLOYED A RANGE OF METHODS TO DECREASE DESIGN COSTS 30.1% SUSTAINABLY- SUSTAINABLY- AND INCREASE THE VALUE OF OUR PRODUCTS. OF DECATHLON SOURCED COTTON SOURCED POLYESTER > WE DEVELOPED OUR INNOVATIVE MINDSET THROUGH FORWARD-LOOKING RESEARCH 1 AND THE OPPORTUNITY TO TRY OUT NEW PRODUCTION METHODS. PRODUCTS 37.7% MORE THAN IN 2017 83% MORE THAN IN 2017 16% IN 2017 > WE PROMOTED CO-CREATION WITH OUR SPORTS USERS AND INDUSTRIAL PARTNERS. 45 1. 2018 Autumn-Winter season. CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

Everyday”. A true ecosystem, it offers With this in mind, in 2018 the Alive ALIVE: both tools and support from real people team co-wrote Explore, a document on FRUGAL, SMART-COST INNOVATION: in a single physical location. societal trends that offers insight into EXPLORING Forward-looking ideas are integral what the world might look like in 2040. DECATHLON'S METHODS FOR INCREASING to the Alive project. That is why in As part of this collective intelligence 2018 the team explored topics like project, some 60 contributors from a FUTURE blockchain, e-sport, and functional range of backgrounds both inside and THE VALUE OF OUR PRODUCTS and cooperative economics. The goal outside Decathlon are providing their POSSIBILITIES is to help teammates understand the contributions and spreading its message changes happening around the world around the globe. Cutting costs, shortening turnaround For instance, by eliminating unnecessary features, etc.) and/or drastically reduce Alive by Decathlon, a part of the and aid them in their decision making. times and rethinking design are just a production steps (for example, its environmental impact. Our 2018 Decathlon Campus store in Villeneuve- few of the ways we are improving the embossing the brand directly onto achievements in this area include two d’Ascq, France, is Decathlon's dedicated "WE MUST CONTINUE EXPLORING value for money of our products. the leather instead of using a label), camping products. space for inspiration and exploration. Two of our current projects focus on we reduced both the cost and the CO2 The desert refrigerator is an evaporative Open to both teammates and people DECATHLON'S FUTURE HAND-IN-HAND this leaner design process. impact of a pair of our Tribord shoes cooling system that preserves food using from outside the company (customers, WITH LOCAL ECOSYSTEMS. by 10%. Likewise, we redesigned the nested containers separated by wet students and other companies), this is  The Smart Gain project aims to packaging for our Ekiden One shoes so sand. With our camping stove, hikers can the place where people can share, get maximise the value of a product TO BE TRULY SUSTAINABLE, IT IS VITAL FOR US that we could fit more items in the boxes, heat their food by using the resources inspired, create and test ideas. Alive is an as perceived by the user. The team TO WORK TOGETHER BECAUSE WE FACE THE SAME enabling us to save €92,000, 22,000 around them as fuel. The team worked redesigns the product with a focus on 3 acronym for “All Living Innovation Values tonnes of CO2 and 192 m of water. PROBLEMS, WHICH CANNOT BE SOLVED ALONE." improving transport, logistics, customs, with outside partners like Nomade des  The concept of frugal innovation Mers, an expert in low-tech solutions, to CHARLES FELGATE, VISION LEADER in-store management, design and industrialisation. The goal is to reduce involves using locally available resources bring these ideas to life. the cost for all our products by 1% and to to meet basic needs. The team aims to pass these savings on by lowering prices reduce product design costs by 80% in our stores. We used this approach to and use half of these savings (40%) to BIOMIMETICS: DRAWING INSPIRATION FROM optimise 30 products in 2018. deliver added value (aesthetics, new NATURE TO DESIGN OUR SPORTING EQUIPMENT Biomimetics is the practice of drawing inspiration from strategies found in the natural world to respond to technical challenges (products, services, energy consumption, transport, architecture and more) as part of a broader eco-design approach.

During the three-month challenge, CO-CREATING resources and coaching were provided to the participants to help them take their INTERVIEW ideas from dream to reality. This support WITH OUR included online classes, on-demand LUCIE BAILLEUL BIOMIMETICS LEADER remote availability from the organisers, SPORTS USERS a digital discussion forum and in-person Café des Sports meet-ups all over Decathlon has always made listening to France. WHAT IS YOUR JOB LIKE? our users a top priority. I explore biological models from the natural world that address the same situations and difficulties we face in our technical The 10 winning projects selected by our We wanted to take this a step further, so jury include an airtight, compressible challenges. That helps us identify strategies or functional principles that we can use to guide our product designs. For we launched a campaign to work with instance, certain kinds of fruit store water as a gel in small compartments, which reduces heat exchange and keeps them rubbish bin, a solar shower and sports users to co-create products for transportable zero-waste toilets. cool. That could be an idea to explore for future sports canteens. our Decathlon brands. Each winner received €1,000 and had an WHAT PROJECTS HAVE YOU WORKED ON? In June, the Randonnée Nature Decathlon opportunity to co-develop their project I began by compiling a corporate virtual library categorising natural principles by their function. More recently, I have brand, working with Oui Are Makers, with the Nature Hiking teams. been working with the Decathlon brands teams on how to eventually replace neoprene for diving, while maintaining body announced a competition encouraging temperature in the water, and on surf booties that surfers could easily slip off and on as they move from place to place. We hikers, campers and DIY enthusiasts are also working to replace lead in our fishing sinkers, using a more functional approach: rather than simply replacing lead to reinvent camping. Ultimately, 48 with another material, we are trying to understand and rethink the functionality of the sinkers. Five Decathlon explorers were applications from inside and outside the "INNOVATION IS A COLLABORATIVE PROCESS. trained in July 2018 by Ceebios, a nationwide biomimetics network in France, to study and test out this method. company were submitted, proposing 48 VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY functional prototypes. MOST OFTEN, IT TAKES MANY MINDS, WHAT DOES DECATHLON HOPE TO ACHIEVE WITH THIS METHOD? MANY PASSIONATE PEOPLE WORKING TOGETHER

DEFP2018 This is a win-win approach for our product designers and for the environment, as the scientific information we are collecting has the potential to improve the environmental impact of our products. We need to view the natural world with humility and TO COME UP WITH AN IDEA AND PRODUCE admiration; it has so much to teach us. That is how we will find new, more sustainable solutions for our technical challenges. A GREAT PROJECT." DECATHLON I firmly believe that this method will help us put a whole host of new innovations on the market. FABIEN BROSSE, NATURE HIKING LEADER AND DECATHLON CO-CREATION LEADER 46 47 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

ADD LAB, EXPANDING THE 3D PRINTING PROJECT Add Lab was established in May 2016 These include a cover that goes under ECO-DESIGN FOR for the purpose of integrating additive the bottom bracket of a bicycle with manufacturing technology into the an electronic gear-shifting system product design process. Its teams guide produced in a small production run, OUR PRODUCTS employees through the process of using or specialised tooling for workshops, According to the OECD report "Global In line with UN Sustainable Development software to model files and print parts factories and store fixtures. Material Resources Outlook to 2060"2, Goal 12 on sustainable consumption in 3D. A custom-made IT platform Add Lab has some 60 printers worldwide, global raw materials consumption is and production and in accordance with manages requests from the teams and including 41 in Lille, France, near most of set to double by 2060 if economies the fifth pillar of Vision 2026, "Preserve updates them about the status of their the design teams. Add Lab also provides bottle caps to transform them into the and lifestyles continue to develop at to Protect", at Decathlon we are printing projects. additive manufacturing support to other strands used as the raw materials for their current rate, which will contribute continuing our efforts to contribute to a Over 20,000 parts have been printed in Decathlon sites around the world, in printing. Several sites now have collection to resource scarcity. Materials use is global environmental transformation by the labs since 2016. Add Lab teams use places like Shanghai and Taiwan, to points for these types of plastic waste. expected to increase from 90 to 167 pivoting to more eco- and people-frien- additive manufacturing to produce parts better meet local needs. billion tonnes worldwide in 2060, as the dly activities. We are changing how with non-safety applications for our In 2018, Add Lab developed a method global population reaches 10 billion. we design, produce and distribute our products. for processing printing waste and plastic Moreover, unless concrete steps are products, as well as how we foster a taken to address these issues, this sustainable development culture within increase is likely to worsen pollution the company. of air, water and soil, and contribute significantly to climate change.

ECO-DESIGN IN FIGURES AS OF 31/12/2018 76% 17.2% OF OUR COTTON SUPPLY OF OUR POLYESTER SUPPLY 30.1% COMES FROM MORE COMES FROM MORE OF PRODUCTS HAVE temperature, etc.) and are able to SUSTAINABLE SOURCES SUSTAINABLE SOURCES THE BODYSIM PROJECT: visualise the effects on the human body. AN ENVIRONMENTAL 3 By varying the combinations of LABELLING 16 % IN 2017 PREDICTING HOW PRODUCTS parameters, we can produce multiple ENGINEERS ARE QUALIFIED TO EVALUATE simulations for different usage 53.8% conditions and environments. BodySim THE ENVIRONMENTAL IMPACT OF PRODUCTS AFFECT THE HUMAN BODY quickly produces results that we would Decathlon SportsLab, our research In the case of a shoe, for instance, we not be able to see with traditional analysis and development centre, is exploring can study the shock absorption of the methods. It also helps limit the number the inner workings and needs of the sole by simulating the mechanical stress of physical prototypes we make, keeping human body in the interest of leaner placed on the tendons. costs down (for producing moulds, for instance). product design. The expertise of our When using this tool, we select the 2018 ESSENTIALS 50 research engineers working in our parameters to be tested (material, four laboratories covers the science of thickness, terrain type, outside movement, behaviour and the senses, > IN PARTNERSHIP WITH ADEME (THE FRENCH ENVIRONMENT AND ENERGY MANAGEMENT

VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY morphology, thermal comfort, and AGENCY) AND OTHER COMPANIES IN THE TEXTILES SECTOR, WE CO-CREATED A NEW measurement and analysis tools. ENVIRONMENTAL LABELLING. One of the tools developed by the "THE SIMULATION HAS HELPED US BE DEFP2018 > WE MADE PROGRESS WITH REGARD TO THE USE OF MORE SUSTAINABLE RAW MATERIALS, SportsLab teams is BodySim, a digital LEANER AND MORE TARGETED FROM THE GET-GO. DELIVERING ON OUR COMMITMENT TO MAKE PRODUCTION MORE ECO-FRIENDLY. simulation tool that predicts how a product will affect the human body. WE ARE MOVING FASTER AND IMPROVING > WE ENCOURAGED ALL OUR COMPANY STAKEHOLDERS TO EMPLOY RESPONSIBLE DESIGN DECATHLON USER SATISFACTION.” STRATEGIES TO MAKE OUR PRODUCTS MORE SUSTAINABLE AND AFFORDABLE. 48 OLIVIER WEBER, PRODUCT ENGINEER FOR KALENJI 49 2. http://www.oecd.org/environment/waste/highlights-global-material-resources-outlook-to-2060.pdf 3. 2018 Autumn-Winter season. CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

COTTON: in 2018, nearly 76% of the NEW ECO-LABELLING OF PRODUCTS, COTTON, cotton used for our products was organically grown, recycled or Better POLYESTER Cotton Initiative (BCI) labelled cotton, A FRENCH STANDARD compared with 55% in 2017. AND WOOL: We have committed to eliminating the use of conventional cotton by 2020. DELIVERING POLYESTER: polyester is a synthetic textile fibre derived from fossil resources. We are aiming for the polyester used at ON OUR RAW Decathlon to be 100% sustainable by 2021. To accomplish this, we are using MATERIALS more recycled polyester, dope-dyed4 virgin polyester and dope-dyed recycled COMMITMENTS polyester. Decathlon wants to address the main By the end of 2018, 17.2% of the polyester challenges surrounding these particular thread used in our products was derived raw materials, from their countries of from more sustainable sources (9.4% in origin to their use in our products. That is 2017). In October 2018, Decathlon was featured why we created an official list of criteria MERINO WOOL: a code of best practices in the “Preferred Fiber & Material that must be met, ensuring that our teams has been implemented with livestock Report”5 put out by an NGO called Textile feel empowered to choose the most farms in South Africa to ensure that 1) Exchange. This annual report ranks 111 eco-friendly suppliers and methods. our suppliers do not engage in mulesing companies around the world according These criteria include reducing pesticide (a painful surgical procedure performed to their use of responsible textile raw

use and CO2 emissions, using renewable on sheep), 2) their animals are allowed to materials. Decathlon was ranked in resources, and safeguarding the welfare range freely, 3) proper living conditions fourth place for recycled polyester, Eco-labelling assigns Decathlon on a voluntary basis. Engineering In Europe, Decathlon engineers have of animals and local populations. are provided, and 4) proper shearing eighth place for Lyocell and tenth place products a score based on their consultants were able to model the been helping to create a common practices are implemented – all in an for more sustainable cotton (by volume, environmental impact. At the end of impact of product life cycles to develop a standard known as PEF (Product effort to safeguard animal welfare. in millions of tonnes). 2018 in France, 1,500 products on our shared database, which is now consulted Environmental Footprint) for use in all EU website had an environmental label, by other companies. The rating, by member countries. accounting for 30,1% of all textile, heavy Decathlon engineers calculated for While these efforts are taking place, To go further on Forclaz commitments: https://www.forclaz.fr/merinos-bp_1359 stitching and footwear items. The label the entire product life cycle, takes into other initiatives have been organised at consists of a blue symbol and a rating account criteria like climate change, air the local level to promote the eco-design from A to E. Users can use these ratings and water pollution, and the depletion of of certain products, especially the raw to compare products and choose the natural resources. materials used. This is true for Decathlon most eco-friendly ones. This was a joint Although the project originated in France, Italy, which has instituted its own green TRAINING PROGRAMMES project involving ADEME (the French Decathlon has rolled out these eco-labels label and created a section on its website environment and energy management in other countries, adapting them to local for eco-designed products. agency), the French Ministry for the cultural norms. TO PROMOTE ECO-DESIGN Ecological and Inclusive Transition, and In addition to our in-house commitments, footwear, electronics, etc.) that list best and the environmental performance of other textile companies that participated Decathlon is making important practices for materials selection or our suppliers. In 2018, 53.8% engineers commitments to external stakeholders. production methods. were trained on these eco-design In 2018 we joined the 2020 Commitment Meanwhile, e-learning and in-person principles. circular economy initiative led by Global training options teach our engineers how Fashion Agenda, a forum that aims to get to assess the impact of their products industrial players from around the world to work together to make fashion more INTERVIEW sustainable. We have pledged that by FABIENNE BENECH 2020 all of our engineers and designers TESTIMONIAL ECO-DESIGN AND ENVIRONMENTAL LABELLING MANAGER FOR ADEME will be trained in eco-design to improve product recyclability, reparability and MARC PEYREGNE ECO-DESIGN LEADER durability. VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY Tools and training have been made "We are giving our employees access to the kind of training that works for them WHAT HAS YOUR EXPERIENCE BEEN WORKING WITH DECATHLON? available to the design teams so they

DEFP2018 (e-learning, in-person with their peers, hands-on, etc.). We maximise the amount can start applying these guidelines right "Decathlon spearheaded this project and acted as the coordinator for the textile sector. This is a technical, complex issue, of information available online to make our discussions more relevant and we are away. We have eco-design guides for so we had to be sure we could trust the data before we used it and shared it with consumers. That took some time, but available to answer their questions and accelerate the eco-design process. We different product categories (textiles, Decathlon didn’t give up. The fact that a company like Decathlon is strengthening its commitments gives legitimacy to also check to make sure they are applying these new skills to real-life situations. DECATHLON environmental labelling as a tool, thereby raising awareness about responsible consumption and promoting sustainable That outcome is more important than how they get trained." production. The message is better received when it’s conveyed by one company talking to another company." 50 51 4. In dope-dyed treatment, pigments are incorporated directly inside the textile fiber, contrary to a post-dying treatment.. 5. https://textileexchange.org/downloads/2018-preferred-fiber-materials-benchmark-insights-report/ CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

SPOTLIGHT ON THREE ECO-DESIGNED PRODUCTS NEW PACKAGING SOLUTIONS MAKE SMARTER USE OF RAW MATERIALS The Forclaz Decathlon brand redesigned the trekking backpack to make it more The Packaging teams' strategy is to Some examples of new packaging limit the amount of additional materials durable and more eco-friendly. The new provide more eco-friendly packaging solutions for 2018: needed to protect these products. version of the backpack includes the solutions (when selling and transporting They examined the packaging for three following upgrades: items and on leaflets, hangers, bags, MINIMALIST PACKAGING models of elliptical trainers and reduced etc.). Most packaging at Decathlon the number of additional multi-material  Clever assembly makes replacing WITH LESS PLASTIC: plastic fasteners fast and easy, with is currently made from paper and Packaging has been optimised for two components from 39 to 9, yielding a spare parts available in stores; cardboard. However, a portion of our Kipsta Decathlon brand products, a 40% reduction in the CO2 footprint. This packaging is made from plastic, which whistle and a set of needles for inflating had the added benefit of improving the  Less harmful materials are being used, is derived from fossil resources. These balls. Previously sold in dual-material customer experience, as it takes less such as a dope-dyed interior lining and plastic materials have a significant time to remove the packaging and users "biton" rain cover; packaging (87% plastic and 13% environmental impact. As a result, cardboard), the packaging for these are left with less waste overall.  A dual closure system and the addition Decathlon has chosen to ensure that products is now 100% fully recyclable of compression straps keep the weight 100% of our packaging (made cardboard. A "multipack" concept A SECOND LIFE FOR SURPLUS inside the bag, reducing pressure and RAW MATERIALS IN ITALY: from paper pulp) comes from helped reduce the size as well: rather wear and tear on the zipper. than having a single package worldwide The Reused Bag project in Italy uses In addition, CO2 emissions were cut more sustainable sources by with information translated into every surplus textiles from a nearby production by 23% and the average customer 2025. language, there are now two versions with facility to make bags for shopping and satisfaction rating went from 4.1 to 4.42 two sets of languages. These changes footwear. Manufactured by production [1] out of 5. With regard to the paper and cardboard reduced emissions by 70%, from 30,668 teams in Albania, these bags have their [3] LA VESTE TREK 100 materials used in most of our current kg of CO2 to 9,200 kg. own barcodes, so that they are fully THE 900 FORCLAZ packaging, Decathlon is focusing our Similarly, Outshock kimonos traded their integrated into the products for sale in FORCLAZ : strategy on managing the supply chain individual plastic, non-woven packaging Italy. To date, 69,500 shopping bags TREKKING BACKPACK: for these materials, down to the source for either recyclable or reusable and 10,000 footwear bags have been This is our most eco-designed padded of the fibres used, with the goal of hangers, or for simple elastic ties with a sold or given away in Italian stores since jacket for mountain trekking. Based 100% PEFC or FSC certification self-adhesive label, resulting in an 88% November 2018, saving 24,402 kg – or on a life-cycle analysis (LCA), the 75 km – of fabric from being destroyed. reduction in their CO2 impact. [2] THE KALENJI Forclaz teams have found that nearly rates for paper pulp by 2025. 90% of the CO2 footprint of our padded OPTIMISED INSERTS: MOTION LIGHT: jackets results from materials and production, especially the dyeing stage To protect fragile, bulky products during This small running light can be seen that accounts for 40% of the fabric's shipping, additional components (tape, up to 100 metres away at night. It is footprint. foam, cardboard, bags, polystyrene, etc.) not battery powered. Instead, it runs are used to fill the boxes in which they are For this jacket, we chose a dope-dyed on a system similar to a dynamo on being transported. Our teams sought to a bicycle: a magnet moves inside a process; the padding is a polyester tube containing a bobbin, creating a wadding made 70% from recycled magnetic field strong enough to power plastic bottles and the inner lining is 6 small LEDs. The energy is generated by made of "biton ". the runner's motion. The light lasts for To provide product information to users at least 10,000 km of running time. without the need for an additional label, these characteristics are printed directly onto the product lining. OUR STORE CLERKS WEAR THEIR COMMITMENT TO SUSTAINABLE DEVELOPMENT ON THEIR SLEEVES At Decathlon, we believe that getting These new vests will gradually replace all our teammates on board with our the old models as we deplete our TESTIMONIAL more responsible approach is key. We inventory. VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY LUCIE MILOCHE put this into practice in our stores by On average, Decathlon Europe uses eco-designing the new vests to be worn 100,000 sales assistant vests per year. FORCLAZ PRODUCT ENGINEER by our clerks starting in August 2018. DEFP2018 This initiative has cut CO2 emissions by Each vest is produced from 10 recycled 5% and decreased our use of natural plastic bottles and features a "100%" resources by 24% compared with the "With the 100 trekking jacket, we wanted to show that we could reduce the environmental impact of our products with recycling symbol. DECATHLON the technology that Decathlon already has. I hope this will inspire our teams to apply these solutions to their products!" previous vest model. 52 53 6. Biton = composed of a dyed yarn and a non-dyed yarn. CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

To improve a product’s durability and WORKSHOPS: help sports users enjoy it longer, the OFFERING PRACTICAL Workshops and Decathlon brands have made reparability a key part of our INTEGRAL TO after-sales policy right from the design KEY PROJECT AND ECO-FRIENDLY SERVICES phase. FIGURES

OUR STRATEGY FOCUS Humanity is currently facing and exploring new operating methods. These local initiatives, alongside our The new policy encourages the Decathlon In 2018, 295,000 returned, environmental challenges directly By incorporating the circular economy long-standing Workshops and Decathlon brands to work with the Workshop repairable products teams to ensure that their services are linked to the exploitation of our planet's and functionality into our business Occasions second-hand platform, FOR EXTENDING were processed by the resources. In this volatile, uncertain model, we can harness the energies of highlight the range of options available a good fit for user needs. The Decathlon Workshops worldwide, context, we must be more proactive teammates who are already leading the to our sports users: incorporating PRODUCT brand teams are responsible for making than ever in combating the destruction way with their voluntary initiatives. These reparability right from the design stage, their products durable and listing the with repair solutions found of our environment by working to further include platforms that encourage people encouraging people to learn to maintain components needed to repair them. for 214,646 products, the economic, ecological and societal to reuse sporting equipment, workshops their sporting equipment, offering SERVICE LIFE The Workshops are furthering the accounting for 73% transition to new consumption models. that enhance product reparability second-life products that meet the company's digital transformation At Decathlon, we make it a point to help (+3% compared with 2017) and durability, events that feature needs of our sports users, and producing by detailing information about parts At Decathlon, we are taking stock of our our sports users enjoy their products for second-hand products, and donations. sporting equipment from recycled and providing step-by-step tutorials of the products donated responsibility in light of these challenges as long as possible. Repairing products materials. explaining possible repairs on the for repair by the Decathlon rather than discarding them is one way we after-sales website: reduce our impact on the environment. brands (79% in France, Present at our Decathlon stores since https://support.decathlon.fr 17% in Russia). DECATHLON OOTE T 1994, the network of Workshops (1,000 ECELL EA EOE DONATN worldwide and 20 throughout France) They also ensure that certain parts are Users reported their AND DONATON NOT OLE provides a place where products can be compatible and available once products satisfaction by rating ECCLE A A LAT EOT DCAD THE ODCT repaired, maintained or customised. OTN are commercialised. service quality a 4.55 out EENT of 5 (compared with 4.4 EELL out of 5 in 2017). EA DONATE ECCLE DCAD

OUR ACTIONS FOR OUR PRODUCT RANGES, IN FIGURES DECATHLON OCCASIONS: AS OF 31/12/2018 A SECOND LIFE 69,990 UNSOLD PRODUCTS WERE DONATED FOR SPORTING EQUIPMENT 4.55/5 ACROSS FRANCE AND SPAIN TO NOT-FOR-PROFITS USER SATISFACTION WITH Decathlon wants to encourage people to reuse our products, so we offer our users the chance to sell their sporting equipment at our Trocathlon events or on our Decathlon WORKSHOP-REPAIRED Occasions platform. PRODUCTS 295,000 PRODUCTS REPAIRED IN OUR WORKSHOPS IN 2018 https://occasions.decathlon.fr/ 3% MORE THAN IN 2017 1. TROCATHLON EVENTS Created in 1986, Trocathlon is our way of helping our sports users buy and sell second-hand equipment. We have made re-selling pre-owned sporting goods even easier with our website occasions.decathlon.fr. Until 2017, these events featured equipment from every type of sport and were limited by logistical and organisational constraints 2018 ESSENTIALS as a result. In 2018, nearly all events organised by Decathlon France were focused on a single sport and spearheaded by sports users. The Decathlon Occasions platform was upgraded, so that users could suggest events for their communities and get in touch > WE STEPPED UP COLLABORATION BETWEEN OUR DECATHLON BRANDS AND THE WORKSHOPS, with other users. The sporting equipment on offer is inventoried, and all products are tested and inspected before being put up for VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY APPLYING OUR AFTER-SALES POLICY FROM THE PRODUCT DESIGN STAGE ONWARD. sale. These events are scheduled based on the needs of local users. > WE LAUNCHED THE DECATHLON OCCASIONS PLATFORM FOR SECOND-HAND GOODS, 2. BUYBACKS DEFP2018 PROMOTING WAYS TO REUSE SPORTING EQUIPMENT AND ORGANISING LOCAL SPORTING Certain Decathlon stores are offering to buy back used B’twin bicycles in good condition, with the money put towards the purchase EVENTS (TROCATHLON). of a new bicycle. That way, sports users can save money while also taking their training to the next level.

DECATHLON The goal of this programme is to promote maintenance, repair, reuse and the adoption of eco-friendly habits to help reduce our > WE CONTINUED OUR EFFORTS TO OFFER SPORTING EQUIPMENT THAT IS PRE-OWNED OR environmental impact. SOURCED FROM RECYCLING STREAMS ALONGSIDE OUR NEW PRODUCTS. 54 In France, 50 Decathlon stores are currently participating in this programme. 55 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

We created an agreement and a guide to ORGANISING best practices to clarify and simplify the process as much as possible, in an effort INTERVIEW DONATIONS to facilitate and manage donations. FABIEN DECROZE COMMERCIAL DIRECTOR FOR B’TWIN CHILDREN'S BICYCLES The first challenge was finding not- for-profits that would be able to store OF UNSOLD products and ensure that they were distributed in a fair manner. A dedicated "We have two main reasons for instituting the buyback programme: parents often purchase bicycles that are too big for their PRODUCTS platform was tasked with this work, children in hopes of getting more use out of them. Buybacks are a great way to give a financial incentive to regularly change managing distribution to different local sizes, so that children can fully enjoy their bicycles. We were also looking for solutions that would enable us to increase our We began donating items to not-for-profit organisations depending on the time of influence on the market for second-hand children's bicycles, in which our B’twin bicycles have a significant share. organisations in 2017 to solve the year, target recipients and needs. Our sales account for two-thirds of new bicycles, but only 5% of the used bicycle market, which makes up a third of the problem of unsold products or items with Setting aside the question of Since 2017, nearly 3 millions of products market as a whole." quality issues, the goal being to avoid performance, the goal was first and have been donated in France, United having to destroy new items from old foremost to create a legal process that Kingdom and Germany to 209 not-for- collections. Decathlon decided to donate would make donating easier for all profits. these products instead of destroying Decathlon players. SECOND LIFE EVENTS: them. REFURBISHING OUR SPORTING EQUIPMENT Our Quechua teams launched the Second bags could be repaired and resold. products are then placed on the shelves, Life initiative in 2016, holding events in At the Mountain Store, the process of with a Second Life corner in each our stores or workshops for customers refurbishing products includes several department. and equipment users where damaged different services, such as patching, products like jackets, tents and sleeping changing press studs and sewing. The

Mountain Store : www.youtube.com/Second_life_by_Quechua TESTIMONIAL BETHAN AUMONIER CORPORATE AND INSTITUTIONAL RELATIONS MANAGER AT DONS SOLIDAIRES Our teammates are empowered to decide THE EASY RETURN whether to resell, recycle or donate the returned products. PILOT PROJECT: Dons Solidaires collects unsold, non-food products from companies and retailers and gives them a second chance to be LETTING CUSTOMERS In 2018, 50% of these products were useful by distributing them to over 500 organisations throughout France. returned to the shelves and sold TRY OUT PRODUCTS alongside new items. HOW DO YOU FEEL ABOUT DECATHLON'S COMMITMENT TO DONATING? AND LISTENING TO Currently, 150 stores in France are The partnership between Dons Solidaires and Decathlon got started in 2011, at the initiative of a logistics employee. THEIR FEEDBACK participating in this initiative. Decathlon's commitment has grown stronger over the years. In 2017, we signed an agreement with all the Decathlon brands and put in place procedures to make donating easier. It has been a real team effort! Today, their work goes beyond just We wanted to encourage users to try out donating products. Decathlon employees regularly donate their time during volunteer days. products and help them avoid buying Simply put, Decathlon's commitment to "donate rather than destroy" unsold products has been taken up by all the employees sporting equipment that does not work working with the brands, the head office, the warehouses and the stores. for them, so we implemented a process in our stores that makes returns much WHAT HAS RESULTED FROM THIS PARTNERSHIP WITH DECATHLON, easier. Thanks to this strategy, we can AND WHAT DO YOU HOPE TO SEE IN THE FUTURE? also receive detailed feedback from The feedback from the organisations and those who benefit from the programme has been uniformly positive. They are customers about how they used the grateful for Decathlon's donations, which run the gamut from warm clothing to football boots. products, in terms of quality or level of EDWIN DOMINGUEZ proficiency. HIKING, TREKKING & VERTICALITY LEADER Our work with Decathlon takes place in France – warehouses throughout the country regularly donate to nearby organisations – and in the United Kingdom and Germany, through our partners at the In Kind Direct International network. Through this initiative, Decathlon France (DIGNE-LES-BAINS STORE, FRANCE) processed 150,000 product returns in Going forward, we would like to work more closely with the brands and stores to build stronger local ties and better meet the VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY our stores in 2017 and 130,000 in our needs of the organisations. workshops. "Ensuring a second life for our products is a way for us to deliver on our sustainable development commitments. It also allows us to continue making DEFP2018 The returned items undergo rigorous testing and inspections, and are cleaned, sport accessible to as many people as possible, as our sports users can buy disinfected or repaired as needed. They these products at reduced prices while still being covered by our Decathlon guarantees. That's a real plus!

DECATHLON are eligible for exchanges and refunds like any new product. By promoting this project, I am doing my part to further our company's global strategy to promote sustainable development." 56 57 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

CREATING SAFE, HIGH-QUALITY PRODUCTS At Decathlon, we design and produce to prevent defects, detect anomalies our own branded products. To guarantee and apply corrective measures in real satisfaction for customers and users, we time. Maintaining a consistent level of have put safety and quality controls in standards ensures our products are place at every step of the value chain. Our safe, no matter where they are produced. company conducts product inspections Chemical risks are also assessed on a at different points in the design, regular basis to actively protect suppliers production and commercialisation and sports users. phases. As long as products are available for In 2018 the challenge for the Quality sale, their reliability is continuously Department, and for all our teams active monitored: Decathlon responds to all in the production chain, was to help inquiries from sports users concerning our suppliers increase their expertise, toxicological issues, and our product with the goal of greater autonomy design teams track online customer and more sustainable quality overall. reviews to continuously correct and Our partners and suppliers are trained improve product quality.

DECATHLON PRODUCT 65% OF SUPPLIERS COMMITTED QUALITY AND SAFETY OF USERS WERE 71% TO MANAGING CHEMICAL SUBSTANCES IN FIGURES DELIGHTED WITH BY SIGNING DECATHLON'S RESTRICTED AS OF 31/12/2018 THEIR DECATHLON SUBSTANCES LIST REWIND: APPLYING THE PRINCIPLES PRODUCTS OF THE CIRCULAR ECONOMY 1,159 5,266 The Rewind project, started by Decathlon A company has been chosen to manage In addition to this recycling project for PRODUCTS/MILLION 1.1 DAYS DECATHLON BRAND teams in 2016, involves collecting the collection and sorting of recyclable clothing at the end of its service life, we end-of-life clothing, reducing it into fibres, materials. also have a proven short-term solution WERE RETURNED TAKEN TO ADDRESS COMPLAINTS, PRODUCTS HAVE and using these fibres to make thread, In addition to supporting our involving production scraps. The system DUE TO DEFECTS IN THE EVENT OF A QUESTION OR BEEN TESTED FOR fabric, and ultimately new products. environmental strategy, this project is for collecting industrial fabric scraps is OR CUSTOMER ADVERSE SKIN REACTION TOXICOLOGICAL The French project team, composed of important for its economic impact and already well established and the scraps DISSATISFACTION COMPLIANCE a consortium of five members, has been long-term profitability. are clearly identified and uniform, making them easier to sort. In 2018 we sold granted funding by ADEME (the French There are technical limitations that must nearly 3.1 million pairs of tennis socks environment and energy management be addressed, especially with regard produced using this method. agency) to continue its work. to sorting (qualitative preparation of the materials) and shredding, as the 2018 ESSENTIALS thread must meet certain technical specifications (fibre quality at the end of the process). > WE IMPLEMENTED NEW QUALITY AUDIT CRITERIA TO ENSURE THE APPLICATION OF A UNIFORM SET OF STANDARDS THROUGHOUT THE WORLD. THIS WILL ALSO HELP OUR VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY SUPPLIERS BECOME MORE AUTONOMOUS. > WE APPLIED THE ISO STANDARD FOR STANDARDISING OUR ONLINE CUSTOMER REVIEWS, DEFP2018 MEANING WE NOW HAVE A SINGLE INTERNATIONAL KNOWLEDGE BASE FOR ALL OUR ACTIVITIES.

DECATHLON > WE HELPED SUPPLIERS INTEGRATE AND APPLY THE NEW RESTRICTED SUBSTANCE LIST (RSL) AND WE BECAME A MEMBER OF THE AFIRM INITIATIVE. 58 59 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

chosen to stop selling any Decathlon QUALITY DEPARTMENT PROCESSES: STANDARDISING ONLINE products with ratings lower than 3 out of 5. Products are only put back up for sale if they have been improved, and an insert EMPOWERING SUPPLIERS CONSUMER REVIEWS: BUILDING is provided to explain this. Consistently reminded of the importance of customer FOR CONSISTENT QUALITY TRUST IN ONLINE PURCHASES satisfaction, teammates and product managers read and reply to online The Quality teams ensure that Decathlon detecting non-compliant situations so IMPROVING THE CONTROL PLAN Since 2013, Decathlon has been working moderation and publication rules. reviews. These reviews directly impact applies our standards consistently for they can quickly remove products that do TO BETTER DETECT INSTANCES to standardise consumer reviews. The In 2018 Decathlon chose to take steps compensation for our Decathlonians, our branded products, no matter where not meet our standards and mastering OF NON-COMPLIANCE purpose of this voluntary initiative is to come into compliance with the ISO accounting for a percentage of their they are produced. all the critical control points that must to actively contribute to improving standard used worldwide, with the goal The control plan strategy was revised so quarterly bonuses. be monitored at the production site for sector practices to ensure more reliable of implementing a single transparency In accordance with the subsidiarity that our quality operators can now focus each product and each manufacturing information, fairer competition between benchmark for all countries where we principle from our Vision 2026, on helping suppliers gain proficiency in process. players and increased trust between operate. The reference framework for production quality is managed locally production processes, rather than on Decathlon and our users. the standard is used for Decathlon close to production sites. Suppliers To address these ambitions, we performing quality control inspections In January 2018, France’s Digital products as well as services such as the receive on-site support from local developed a new, three-point strategy of finished products. Through this Republic Act reaffirmed that online Workshops. Decathlon liaisons, whose work involves that will make us more consistent: work, Decathlon aims to help teams recommendations must be made more providing training and monitoring  Quality leadership: Suppliers must become partners who contribute to Consumer reviews as performance reliable and transparent. This French compliance with specifications. be able to independently identify process improvement with a shared indicators for teammates law was drafted at the same time as non-compliant situations, taking understanding of all production chain The reliability of customer reviews also NEW QUALITY AUDIT CRITERIA ISO 20488, which is divided into three ownership of product quality. variables. affects our internal performance: we have FOR GREATER SUPPLIER main parts: review submissions,  Internal assessment: In accordance The application of these strategies is AUTONOMY with the continuous improvement essential to continuously improve the To ensure that quality standards are method, suppliers must work to maintain quality of manufacturing of Decathlon applied over the long term, a new set of optimal quality on a daily basis. This products, by moving controls upstream assessment criteria was implemented also enables them to conduct self- in the production chain. in 2018, making it possible to evaluate assessments and independently develop In terms of Quality, 84% of our suppliers suppliers with two indicators: a rating corrective action plans. are rated A, B or C in 2018. from E (unacceptable) to A (model  Online audit: In lieu of inspections of supplier with continuous improvement) finished products, inspections take place INTERVIEW and a compliance percentage. at every stage of the process. This means Our teams provide suppliers with the source of the error can be detected ISABELLE RIMBERT on-site training and support to improve right away, increasing understanding and ASSISTANT DIRECTOR FOR STANDARDISATION AT AFNOR their autonomy in two specific areas: delivering lasting solutions.

QUALITY RETURN RATES FOR DECATHLON PRODUCTS WHAT MAJOR ISSUES ARE AT PLAY IN THE EFFORT PER MILLION PRODUCTS TO STANDARDISE CUSTOMER REVIEWS?

RPM* (returns per million) is a quality indicator for our products. An RPM Most consumers read online reviews before purchasing, even for in-store purchases. Thus, a portion of the value is created that is getting worse (with more products returned over time) may be a at the moment when the purchaser reads the reviews of other consumers. symptom of a problem with design or production, or it may indicate user These reviews must be reliable to protect customers and ensure fair competition between players. The standard does not dissatisfaction with the product. We observe how this indicator changes 2016 apply to the reviews themselves, but rather the processes for improving reliability over time rather than its value at any given moment in order to make our 2015 2017 201 analysis as useful as possible. WHY IS FRENCH LAW MORE STRINGENT FOR CERTAIN ASPECTS? *RPM = (number of units returned / units sold) × 1,000,000 France has taken the lead on this standard, with work that dates back several years. The French General Directorate for Competition Policy, Consumer Affairs and Fraud Control joined the drafting committee after the decree was issued. French law is more stringent when it comes to proof of purchase by the consumer, but the ISO standard offers a detailed operating As part of our effort to protect our method for improving reliability. At the same time, a voluntary certification process, currently in development, will ensure RECOVERING sports users and promote continuous compliance with the law. improvement, Decathlon collects products returned to our stores by WHAT ARE THE BENEFITS OF A LONG-TERM COMMITMENT TO THIS PROCESS? VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY DEFECTIVE 41,464 customers to improve their quality.RFDs This is an evolving standard based on user behaviour. Voluntary standards represent the best practices of the time from all (Returned for Defect) are sent to our RETURNED PRODUCTS over the world, and they are developed in concert with market players.

DEFP2018 PRODUCTS, design teams so that they can analyse SENT FOR QUALITY Taking up a leadership role in this effort gives a company a voice in developing the strategy: the fact that Decathlon is the ANALYSING THEM why the products were returned and ANALYSIS BY THE vice-chair of the committee means you have a clear view of what lies ahead. decide on the appropriate corrective By helping to develop this protective framework, you are doing more than just protecting your economic interests: taking the AND CONTINUOUSLY measures. Based on the returns, these DECATHLON DECATHLON BRANDS initiative gives you an active role in helping to change sector rules for the better. IMPROVING THE QUALITY may include repairs, discussions with suppliers, removal from shelves or TEAMS 60 OF OUR PRODUCTS product recalls. 61 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

MANAGING CHEMICAL RISKS: DECATHLON JOINS RAISING AWARENESS THE AFIRM WORKING GROUP WITH SUPPLIERS AFIRM's Restricted Substances List This list is updated every year. This collection of experts from (RSL) contains international information Since 1998, the Decathlon Chemical international companies provides us about the regulations governing the use with a comprehensive understanding As with any process related to production, and inform our suppliers about which Risk Management team has maintained of chemicals in finished products from through exhaustive regulatory watch. chemical risks are managed using a substances must be tested, how a document listing every potentially the textile and footwear industries. The Recommendations are standardised cross-disciplinary approach, the goal often inspections must take place and hazardous substance and the tolerance list is shared with suppliers for reference for all suppliers, particularly with regard being to help suppliers become more which corrective measures must be thresholds for every Decathlon product. purposes and is designed to simplify to chemical thresholds. These have autonomous through improved expertise implemented. In 2018 Decathlon joined the AFIRM their inspections and protect them from enabled us to expand our control plans in this arena. benchmark initiative so that we could On the ground, our liaisons educate the health and environmental effects and raise awareness to help make sense use their RSL for textile and footwear Testing methods and the frequency suppliers about risks, including in associated with the use of chemicals of regulations. of inspections for this project are terms of supply chain management processes. For our other processes, our in production. For each chemical, the Currently, 71% of the suppliers working established drawing on cross-sector and product conformity, and the proper company has joined working groups document lists the CAS registry number, with Decathlon have committed to coordination. Quality managers for our ways to handle and combine different to develop corresponding lists of common name, restriction level and comply with this list of substances and Decathlon brands and our industrial chemicals. substances. relevant testing methods. thresholds. activities are in charge of implementation

CHEMICAL TESTS MADE AT DIFFERENT STAGES, INCREASING THE NUMBER OF IN-COUNTRY CHEMICAL RISK LIAISONS AMONG SUPPLIERS, ON BASIC MATERIALS AND CHEMICAL PRODUCTS As China is a major production country for Decathlon, we wanted to have a permanent liaison there.

FOCUS An expert from the Chemical Risk Management team was dispatched to China to mentor a local teammate to help her gain the specific chemical risk skills she needed to work autonomously: understanding the RSL, implementing control plans, analysing risks and correcting instances of non-compliance. Our goal is to expand risk detection and facilitate the speedy resolution of problems at the local level. CONTOL LAN CONTOL PPE DEFEE E LAN

NCON CONTOL ONLNE CONTOL NAL CONTOL A COMPREHENSIVE REVIEW OF ALL CONTOL EOE AN ALL CONTOL ALL CONTOL ADONE PRIORITY OEATON ON ATEAL DONE ON OCE ON NHED OOD SENSITISING AND IRRITATING SUBSTANCES: RISK Allergies are increasingly common today. While there are extensive regulations SUBSTANCES for CMR (carcinogenic, mutagenic, and reprotoxic) substances, this is not PFCs, the case for allergenic substances. To DEECT LT AN EVER-PRESENT CONCERN: better protect our users, we have studied several allergenic substances – such as The European Chemicals Agency has isothiazolinones, for example – that will LAOATO TET listed PFCs as substances of “very high NCON ONLNE NAL CONTOL TOCOLO be included in our next version of the concern”. Our Textiles, Heavy Stitching RSL. and Footwear teams have made considerable progress in developing Today, more than 5% of people are VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY "PFC-free" solutions. Moreover, the sensitive to isothiazolinones. These not regulated in all consumer goods, but Mountain Sport division has reaffirmed substances are recognised as being we put them on our RSL in 2018 so that highly allergenic, meaning that when we could monitor their presence in our DEFP2018 its 2016 commitment to "eliminate PFCs they come into prolonged contact with textile and leather products. The Quality team is also responsible for managing customer relations with sports users so that we can answer their questions as from its textile products by 2020". the skin they may cause cutaneous quickly as possible. In 2018, we spent 1.1 days addressing complaints, with a response provided in 54 days. allergic reactions. These substances are DECATHLON

62 63 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

MAINTAINING RESPONSIBILITY LONG-TERM RELATIONSHIPS Decathlon entrusts the production of our products (textiles, heaving stitching, sports articles to a panel of suppliers electronics, metal equipment, etc.) organised by industrial process. Our means that our supply chain is extremely IN PRODUCTION local production teams, operating from complex, for instance when it comes to Decathlon's production offices, are in quality control, volume and expanded charge of day-to-day supplier relations. accountability. With our suppliers, we share a desire By 2026, we hope to address this to deliver the best possible value for complexity through increased money by working closely together collaboration and transparency with using a common framework based on the 150 partner suppliers who will be respect, team development, quality and manufacturing 80% of our product environmental preservation. quantities. We already had 45 partners The variety of manufacturing processes by the end of 2018. associated with our diverse range of

DECATHLON 10 YEARS SUBCONTRACTING 1,031 RANK 1 SUPPLIERS AVERAGE LENGTH IN FIGURES (FINISHED PRODUCT AND COMPONENT OF SERVICE FOR AS OF 31/12/2018 SUPPLIERS WITH DIRECT CONTRACTUAL TOP 100 SUPPLIERS RELATIONSHIPS) IN TERMS OF VOLUMES PURCHASED

2,100 28% PRODUCTION PART OF OUR 316 RANK 2 SUPPLIERS TEAMMATES PURCHASE AMOUNT (SUPPLIERS TO OUR RANK 1 SUPPLIERS WORKING WITH IS REALISED BY WITH NO CONTRACTUAL RELATIONSHIP SUPPLIERS ON OUR INDUSTRIAL WITH DECATHLON) A DAILY BASIS PARTNERS

2018 ESSENTIALS

86% > WE PURSUED OUR PARTNER SUPPLIER STRATEGY, WHICH CALLS FOR RELATIONSHIPS BASED 45 OF RANK 1 PRODUCTION SITES WERE GIVEN A, B or C ON COLLABORATION AND TRANSPARENCY. WE WENT FROM 35 TO 45 PARTNERS. PARTNER RATINGS FOR THEIR HUMAN RESPONSIBILITY > WE DOUBLED DOWN ON OUR COMMITMENT TO SUSTAINABLE DEVELOPMENT IN THE SKILLS IN PRODUCTION (24% MORE THAN IN 2017) SUPPLIERS BASE FOR OUR PURCHASERS. 1,157 SOCIAL AUDITS 2018 > WE IMPLEMENTED A SKILLS SELF-ASSESSMENT SYSTEM: ALL OF THOSE INVOLVED IN 10 MORE THAN IN 2017 PRODUCTION CAN TAKE CHARGE OF THEIR OWN PROFESSIONAL DEVELOPMENT. 69.4% > 86% OF OUR PANEL OF SUPPLIERS HAVE AN A, B or C RATING, AND FOR OUR PARTNER OF RANK 1 PRODUCTION SITES WERE GIVEN A, B or C SUPPLIERS IT IS 96%: WE CONTINUED TO APPLY OUR HUMAN RESPONSIBILITY IN PRODUCTION RATINGS FOR THEIR ENVIRONMENTAL MANAGEMENT CONTINUOUS IMPROVEMENT METHODS TO OUR PANEL OF SUPPLIERS. 65 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

MAP OF PRODUCTION COUNTRIES OUR PURCHASING STRATEGIES Map background: Decathlon has 42 production offices in 24 countries and works with suppliers in another 23 countries. Our Our purchasing strategies have prompted us to create and coordinate a panel of suppliers with three categories: teammates coordinate production in the countries where they are located, along with production in neighbouring countries in some cases when these countries do not have Decathlon production offices. OUR OWN PRODUCTION SITES: OUR SUPPLIERS: Decathlon has 10 production plants We maintain long-lasting relationships COUNTRIESPAYS DE PRODUCTION WITH A DECATHLON AVEC BUREAU (UIPE) UN BUREAU DE PRODUCTION DECATHLON EST PRSENT DANS LE PAYS where we manufacture some of our with our suppliers built on respect and PRODUCTION OFFICE AFRIUE gypte, thiopie, Maroc, Tunisie. AMRIUES Brsil, Mexiue. ASIE DU NORD Chine, Tawan. ASIE DU SUDEST Cambodge, Indonsie, articles. In these plants, we develop performance. We identify the suppliers Thalande,Africa: Egypt, Vietnam. Ethiopia, ASIE DUMorocco, SUDOUEST Tunisia. Bangladesh, Inde, Paistan, SriLana. EUROPE France, Italie, Pologne, Portugal, Roumanie, Turuie, the Decathlon Manufacturing Way with whom we do not have partnerships Uraine.Americas: CEI (CommunautBrazil, Mexico. des tatsNorth Indpendants) Asia: Russie. (DMW) network, which aims to but who do play a strategic role in our China, Taiwan. Southeast Asia: Cambodia, 1 PAYS DE PRODUCTION SANS BUREAU (UIPE DUN PAYS LIMITROPHE) increase operational excellence when supplier panel , either because they Indonesia, Thailand, Vietnam. Southwest it comes to managing teams, devising have proprietary technology or sensitive Asia: Bangladesh, India, Pakistan, Sri AFRIUEPAYS DE Madagascar. PRODUCTION ASIE AVECDU NORD BUREAU apon. (UIPE) ASIE DU SUDEST UN BUREAU Malaisie, DE PRODUCTION Myanmar. EUROPE DECATHLON Albanie, Allemagne,EST PRSENT Autriche, DANS Belgiue, LE PAYS Bosnie, manufacturing technologies and production volumes. Bulgarie,Lanka. Croatie,Europe: Espagne, France, Finlande, Italy, Gorgie,Poland, ongrie, Lituanie, PaysBas, Rpubliue Tchue, RoyaumeUni, Serbie, Slovauie, Slovnie, Suisse. AFRIUEPortugal, gypte,Romania, thiopie, Turkey, Maroc, Ukraine. Tunisie. CIS AMRIUES Brsil, Mexiue. ASIE DU NORD Chine, Tawan. ASIE DU SUDEST Cambodge, Indonsie, processes, implementing continuous Thalande,(Commonwealth Vietnam. of ASIE Independent DU SUDOUEST States): Bangladesh, Inde, Paistan, SriLana. EUROPE France, Italie, Pologne, Portugal, Roumanie, Turuie, improvement methods and organising AVERAGE LENGTH Uraine.Russia. CEI (Communaut des tats Indpendants) Russie. flows. This DMW network can be OF SERVICE FOR SUPPLIERS COUNTRIESPAYS DE PRODUCTION WITHOUT A SANS BUREAU (UIPE DUN PAYS LIMITROPHE) accessed by our partner suppliers. DECATHLON PRODUCTION OFFICE ON OUR PANEL AFRIUE Madagascar. ASIE DU NORD apon. ASIE DU SUDEST Malaisie, Myanmar. EUROPE Albanie, Allemagne, Autriche, Belgiue, Bosnie, OUR PARTNER SUPPLIERS: IN % 36% Bulgarie,Africa: Croatie,Madagascar. Espagne, North Finlande, Asia: Gorgie, Japan. ongrie, Lituanie, PaysBas, Rpubliue Tchue, RoyaumeUni, Serbie, Slovauie, Slovnie, Suisse. 10 33% Southeast Asia: Malaysia, Myanmar. Europe: We develop industrial projects and a 10 20 Albania, Germany, Austria, Belgium, Bosnia, common vision with companies that Bulgaria, Croatia, Spain, Finland, Georgia, share the Decathlon purpose and values. Hungary, Lithuania, Netherlands, Czech We make shared commitments built on 21% Republic, United Kingdom, Serbia, Slovakia, collaboration, transparency and trust. Slovenia, Switzerland. Integrated into our internal processes, this partner relationship drives us to improve our managerial culture on a daily basis to 5% 4% achieve operational excellence while also 1% 1 20 PAYS DE PRODUCTION AVEC BUREAU (UIPE) UN BUREAU DE PRODUCTION DECATHLON EST PRSENT DANS LE PAYS developing individual accountability and 1 autonomy. AFRIUE gypte, thiopie, Maroc, Tunisie. AMRIUES Brsil, Mexiue. ASIE DU NORD Chine, Tawan. ASIE DU SUDEST Cambodge, Indonsie, DECATHLON: A Thalande,MULTI-PRODUCT, Vietnam. ASIE DU SUDOUEST Bangladesh, Inde, Paistan, MULTI- SriLana. EUROPE France, Italie, Pologne, Portugal, Roumanie, Turuie, Uraine. CEI (Communaut des tats Indpendants) Russie. INDUSTRIAL PROCESS,PAYS DE PRODUCTION SANSMULTI-COUNTRY BUREAU (UIPE DUN PAYS LIMITROPHE) BUSINESS We offer a diverse range of articles meantAFRIUE for use Madagascar. in a wide ASIE array DU NORD of differentapon. ASIE sportsDU SUDEST to the Malaisie, users Myanmar. of our EUROPE 85 Decathlon Albanie, Allemagne, brands Autriche,. These Belgiue, Bosnie, IN 2018, 28% PART OF OUR PURCHASE AMOUNT Bulgarie, Croatie, Espagne, Finlande, Gorgie, ongrie, Lituanie, PaysBas, Rpubliue Tchue, RoyaumeUni, Serbie, Slovauie, Slovnie, Suisse. • articles, designed by Decathlon teams and our suppliers, are manufactured using many different industrial processes belonging IS REALISED BY OUR INDUSTRIAL PARTNERS. to the textile, metallurgy, electronics and footwear industries, to name a few. These products are designed and manufactured in accordance with our specifications and our social and environmental requirements. • OUR GOAL IS TO HAVE 80% OF OUR PRODUCTS MANUFACTURED BY 150 PARTNER SUPPLIERS BY 2026. BREAKDOWN OF VOLUMES PURCHASED BY DECATHLON NUTRITION % (BY PRODUCTION PROCESS) CHEICAL AND We are also pursuing our local production  MADE IN BRAZIL FOR BRAZILIAN RETAIL: UNAVAILABLE2 COSETIC PRODUCTS % development strategy so that we can FROM 1/01/18 TO 31/12/2018  MADE IN CHINA FOR CHINESE RETAIL: 91.5%3 ELECTRONICS % better respond to local market demand and reduce environmental impacts.  MADE IN EUROPE FOR EUROPEAN RETAIL: 22.7% OOTEAR % Our supplier panel and our distribution of volume follow total cost principles  MADE IN RUSSIA FOR RUSSIAN RETAIL: 9.8% TETILES % (also called TeCO: Total Environmental  MADE IN INDIA FOR INDIAN RETAIL: 40.4% Cost of Ownership). The combination of these two strategies SIOND % (local production and TeCO principles) VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY allows us to build a supplier base that "OUR PARTNERSHIP STRATEGY CONSISTS IN MAINTAINING ETAL 6% LOES % addresses our company's global and THE STRONGEST, MOST TRANSPARENT RELATIONSHIPS local challenges. DEFP2018 HEAY STITCHIN % POSSIBLE WITH OUR PARTNER SUPPLIERS. MUTUAL EDE COPOSITES % TRUST WILL FORM THE FOUNDATION FOR SUSTAINABLE

DECATHLON PLASTIC AND COPOSITE PYROTECHNICS % PERFORMANCE THAT ADVANCES OUR GOALS." PRODUCTS 68% OPTICAL PRODUCTS ELDEDINLATABLE PRODUCTS 8% LIONEL DIAS, PURCHASING PROCESS LEADER 66 BICYCLES 8% 6% HELETS % 67 1. KASs: Key Account Supplier 2. Purchases made by Brazil are no longer entered directly into our information system. It was therefore not possible to include the 2018 data. 3. In percentage of Turnover. CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

THE FIGHT AGAINST MANAGING A SKILLS CULTURE UNDECLARED OUTSOURCING FOR PRODUCTION TEAMMATES WITH A FOCUS Undeclared outsourcing by our suppliers To fight against this phenomenon, we is difficult to detect. have trained our teams to carefully ON SUSTAINABLE PERFORMANCE Despite our formal opposition to this plan for quantities at different stages of Production teams forge relationships For our teammates the goal is to unleash their full potential and advance practice, as signified by a contractual product development and during batch with suppliers on a daily basis objectively assess their job proficiency, sustainable performance. production. clause that all suppliers sign, and working in areas such as quality, and for Decathlon the aim is to ensure 2,384 active learners in the network of despite our teams' frequent site visits, The number of products delivered supply, industrialisation, sustainable that hard and soft skills are properly teammates for our industrial processes some suppliers could still turn to is regularly checked against actual development and continuous balanced for now and in years to come. and production offices: 96% of our outside companies to help manufacture capacity to minimise risks. improvement. Our skills culture initiatives were rolled production teams, 60% of our industrial our products without our prior consent. We believe that skills are an integral out in stages and shared with our processes teams. part of sustainable development partner suppliers to help everyone performance. In 2018, we developed the From Training to Active Learning corporate project, which gives each "PROFICIENCY IS AN INTEGRAL PART OF INDUSTRIAL person the power to take charge of his PERFORMANCE. THE OPERATIONAL EXCELLENCE TO or her individual development. As part of this project we provided access to WHICH WE ASPIRE REQUIRES US ALL TO ATTAIN A CERTAIN self-assessment tools and resources LEVEL OF PROFICIENCY.” to help employees learn the skills they OLIVIER DESBATS, PURCHASING PROCESS LEADER OUR SUPPLY CHAIN needed to lead projects for our teams. To manufacture Decathlon brand products that meet the needs of our users, we must maximise our coverage DESIN DEELOPENT INDUSTRIALISATION PRODUCTION TESTIMONIAL MARIA CHEN CEO OF SEMS – CHINA of the value chain. That is why we are SINED SPORTS RD PROCESSES PRODUCTION OICES SUPPLIERS developing supplier relationships at multiple levels: First, our rank 1 suppliers: they have DECATHLON'S MANAGEMENT CULTURE HAS IMPROVED HOW MY BUSINESS OPERATES a contractual relationship with a "As a leader I set myself clear, ambitious goals. My approach has sometimes come off as authoritarian. My employees were able Decathlon group company to produce to execute my vision, but they did not show much initiative. Decathlon helped me see how another more empowering form of or assemble finished/semi-finished management could help me grow my business. products (manufacturing contract) or I learned to think about how I communicate, to develop a culture that encourages feedback and to share decision-making to supply raw materials or components responsibilities with my employees. Today, I trust my team and they have the autonomy to solve day-to-day problems. As a result, (purchasing contract) and they receive my company is more efficient." purchase orders from and submit invoices directly to that company. RAN 1,031 RANK 1 SUPPLIERS RAN Rank 2 suppliers contribute to Decathlon’s product value chain. They RAN have direct commercial relations with a INCORPORATING ANTI-CORRUPTION rank 1 supplier, with whom they organise the management of purchase orders and invoicing. The Decathlon group retains ACTIITY EFFORTS INTO ALL OUR BUSINESS ACTIVITIES the option to get involved in choosing or TEAS In 2016, the French government In 2018 we continued the work of An Anti-Corruption Code of Conduct was approving these rank 2 suppliers, while passed a law addressing transparency, mapping corruption risks that we written and distributed in France. It will not interfering in the commercial and anti-corruption and economic began in 2017, applying a methodology be rolled out in our foreign subsidiaries COERCIAL RELATIONS legal relationship between these rank 1 modernisation4. In this field, Decathlon developed for our company's different starting in 2019. This document sets VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY and rank 2 suppliers. is putting in place measures to prevent business lines. out Decathlon's anti-corruption policies, 316 RANK 2 SUPPLIERS and detect corruption at our subsidiaries This mapping work was initiated in every describing and illustrating which types across the globe, in order to manage of practices are forbidden. DEFP2018 country where Decathlon operates. The risks in this arena. The aim is to seize the goal is to identify, analyse and rank the Employees will have access to an alert opportunity presented by this new law to risks to which the company is exposed system, intended to collect reports bolster our efforts to combat corruption DECATHLON in terms of solicitations from outsiders of practices that violate the Code of across all our business lines. to engage in corrupt practices. Conduct, starting in 2019. 68 69 4. https://www.legifrance.gouv.fr/eli/loi/2016/12/9/ECFM1605542L/jo/texte CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

PUTTING REVAMPING THE CODE OF CONDUCT AND ROLLING OUT PEOPLE FIRST NEW AUDIT CRITERIA In 2018 we celebrated the 70th Our Code of Conduct, which was fully We use an internal and external auditing anniversary of the Universal Declaration revised in 2017, addresses the social system to ensure that the Code of At Decathlon, Human Responsibility Conduct and the criteria were modified to of Human Rights. This milestone and environmental priorities highlighted Conduct is being applied, along with in Production dates back to our first include new environmental and societal provided an opportunity for Decathlon by various international organisations regular site visits from local Decathlon social charter in 2003. Since that time, priorities, such as provisions covering to reaffirm our commitment to actively (ILO, OECD, etc.), especially: human production teams. Our strategy for a variety of national and international forced labour, freedom of association, promote mechanisms for upholding and rights (child labour, modern slavery and making the process more reliable events have changed the landscape and human resources management and strengthening universal human rights at forced labour, freedom of association, and implementing lasting corrective regulatory context. compensation policies, a section that all our subsidiaries across the globe. discrimination, decent pay, etc.), health measures is improving year after year. In response to these changes and in has now been expanded. Clarifying the and safety (management environment, All of these improvements were rolled Our responsibility at Decathlon is In 2018, 86% of our rank 1 suppliers line with our own ambitions, Decathlon scope of audits made it possible to building safety, etc.), chemicals out using a collaborative process to ensure that these priorities are had brought human-related risks to revised the requirements in our Code of include the living quarters and transport management, environmental with input from internal and external observed and respected at all sites an acceptable level, and our goal is to Conduct in 2017. We updated our audit methods made available to employees protection, sustainable materials, stakeholders. where our products are manufactured, sustain 80% by 2019. criteria at the same time. The Code of by their employers. in 40 different countries, with uniform, corruption, and employee management consistent standards. and communication.

HUMAN 66% 57% BUILDING A NETWORK RESPONSIBILITY 86% OF RANK 2 OF RANK 1 PRODUCTION OF ASSESSMENTS PRODUCTION SITES IN PRODUCTION SITES RATED A, B, or HANDLED BY OF INTERNAL AND EXTERNAL AUDITORS RATED A, B, or C C ACCORDING TO OUR DECATHLON TEAMS IN FIGURES ACCORDING TO OUR ASSESSMENT CRITERIA FOR A TOTAL OF AS OF 31/12/2018 ASSESSMENT CRITERIA 1,157 ASSESSMENTS WITH CONSISTENT SKILL SETS

Our auditing teams are deployed in These factors help us deliver relevant To help ground these priorities, countries across the world to promote information, so that partners and Decathlon decided in 2018 to focus the application of the Decathlon Code of suppliers feel more involved. Our social our work on standardising auditor skills Conduct. performance priorities are thus clear by creating our Assessors’ Guidelines SUSTAINABLE DEVELOPMENT 28 OF TEAMMATES WORKING These audits are performed by and make an essential contribution document. IN PRODUCTION MANAGERS HANDLE MOST 62% IN PRODUCTION ACQUIRED SUSTAINABLE internal and external teams. In 2018 to our company's overall financial The goal is to ensure that each criterion OF THESE ASSESSMENTS, WITH SUPPORT DEVELOPMENT IN PRODUCTION SKILLS we performed 1,157 audits worldwide, performance, supported by an effective is tested and validated in the same way. FROM 37 DELEGATED EVALUATORS 57% of them conducted by our team of correction action plan. This approach This also means that the handling of internal auditors. is integrated into day-to-day operations non-compliance at production sites at our company, going well beyond The audits performed by internal will be better communicated, better occasional testing. Decathlon teams helped us address the understood and more sustainable. At following issues: The action plans, their implementation times, this work means that we are window and their sustainability are more stringent than local regulations  The quality of basic training for the 2018 ESSENTIALS directly linked to the quality of our require, for instance when it comes to trainers who certify internal auditors: supplier relations. That is why Decathlon the freedom of association, which is The training is based on the SA80000 > WE STRENGTHENED THE METHODOLOGICAL CONTENT OF OUR ASSESSORS’ GUIDELINES SO has made sustainable development why we always ask to meet with the standard. THAT EVERYONE WORKING IN HUMAN RESPONSIBILITY IN PRODUCTION WILL HAVE ACCESS TO a fundamental component of our production site representative.  Proper understanding by our suppliers A STANDARDISED FRAMEWORK THEY CAN APPLY INDEPENDENTLY. purchasing relations with our suppliers Audits performed by an outside of our messages concerning social (see Responsible purchasing). organisation5 are conducted using the > WE SAW A SIGNIFICANT INCREASE IN THE PERFORMANCE OF OUR PANEL OF SUPPLIERS, challenges, which ensures the longevity Since 2003, Decathlon has been same criteria. The Decathlon teams GOING FROM 69% AT THE END OF 2017 TO 86% ABC BY THE END OF 2018 FOR RANK 1. of this approach. providing ongoing skills acquisition and the external teams meet regularly

VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY > WE ARE ENHANCING OUR RISK ANALYSES THROUGH OUR WORK ON THE DUTY OF  Consistent auditing methods with the opportunities and training for auditors to ensure that our requirements are VIGILANCE THAT AIMS TO PREVENT THE SOCIAL (HUMAN RIGHTS, HEALTH AND SAFETY) AND same expectations, no matter where or so that we can successfully implement well understood and that they are being ENVIRONMENTAL RISKS ASSOCIATED WITH OUR BUSINESS ACTIVITIES AND THOSE OF OUR how the testing is being performed. strategies and prevention, conferring followed to the letter. DEFP2018 SUBCONTRACTORS AND SUPPLIERS. about questionable situations and attenuating identified risks. > WE LAUNCHED OUR TACKLE FORCED LABOR PROGRAMME INTERNALLY, WITH SUPPORT FROM

DECATHLON MULTIPLE NGOS, TO COMPLEMENT OUR AUDITING PROCESS AND HELP DETECT THE WARNING SIGNS OF FORCED LABOUR AND DEVELOP SUITABLE CORRECTIVE ACTION PLANS. 70 71 5. SGS CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

HOW OUR SUPPLIER HELPING TO STANDARDISE PANEL PERFORMED INTERNATIONAL METHODOLOGIES Among the rank 1 production sites in time, and we use them to identify services and the Purchasing and Since 2014, Decathlon has been a member of the Advisory Committee that is writing an OECD guide on due diligence for involved in our programme, 86% had A, areas for improvement over the short, Sustainable Development teams, which textile and footwear supply chains. This guide was published in January 2017 with the title “OECD Due Diligence Guidance for B or C performance ratings (24% more medium and long term at production are committed to this continuous Responsible Supply Chains in the Garment and Footwear Sector”. than in 2017) as did 66% of our rank 2 sites. improvement approach. The results The first forum took place on 30 and 31 January 2018. It was attended by over 400 participants from the business world, production sites (a difference of 34% In 2018 we took a major step we have seen reflect our teams’ deeper unions, civil society and member state governments. During the event we shared updates and explored ways to improve existing compared with 2017). In total, 1,157 forward in terms of our A-, B- and level of investment in 2018; however, mechanisms. assessments were carried out in 2018. C-rated suppliers by establishing they must be maintained over the long Our goal is sustainable performance. close collaboration between our term, particularly by offering training We understand that audits are a production teams and suppliers. This programmes for greater supplier snapshot of a situation at a moment collaboration is supported by central autonomy. COMPLIANCE AT PRODUCTION SITES THAT MANUFACTURE OUR PRODUCTS IN %, “A, B or C”

We are adding to our training options with a We are expanding our network of SD in Rank 1 production sites programme open to all teammates who want to Production managers to increase the adoption Rank 2 production sites

FOCUS learn more about how our Human Responsibility in of our strategy through a system of mentoring Production approach works through an awareness and skill transfers. Our partners’ sites model titled: SD Prod for All. 28 SD in Production managers Company-owned sites To date, 35 people have completed this training. at the end of 2018 96% 88% 90% 86% 86% DUTY OF VIGILANCE: 80% ENSURING HUMAN RIGHTS ARE PROTECTED THROUGHOUT THE VALUE CHAIN 68% 69% The concept of the duty of vigilance In 2018 we ranked the priority areas 66% was established by a 2017 French law in need of improvement based on the requiring multinational companies to mapping of our risks, responsibilities provide transparency on all the methods and focus areas for action. 60% they use to anticipate the social and This method of analysis confirmed that environmental risks associated with the most prominent risks for production their business activities and those of activities at our suppliers (ranks 1 and their subcontractors and suppliers. 2) matched the ones that had been The full strategy is laid out in our At Decathlon, we chose to focus first identified upstream. They are shared Vigilance Plan. It is regularly revised as VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY on our supply chain as part of creating with our suppliers through our Code of part of our continuous improvement an official Vigilance Plan for the 2017 Conduct and are verified through regular approach. 49% 49%

DEFP2018 financial year. We performed a risk rigorous audits at our rank 1, and some analysis, applying the ISO 31000:2009 rank 2, suppliers. DECATHLON VIGILANCE PLAN : Risk Management standard, that http://developpement-durable.decathlon.

DECATHLON covered our impact on human rights, com/documents-et-rapports/documents/ health and safety, and the environment. 6 8 72 73 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

PREVENTING AND ELIMINATING 1/ THE FULFILLED WORKERS PROJECT IN INDIA ALL FORMS OF FORCED LABOUR According to the Walk Free Foundation, this idea of detecting and preventing INTERVIEW over 24.9 million human beings were forced labour into our purchasing trapped in a form of forced labour in strategies, along with the Stronger PRATIMA SINGH 2016. Together multi-stakeholder initiative, for SD IN PRODUCTION MANAGER IN INDIA AND FULFILLED WORKER PROJECT LEADER At Decathlon, we were inspired by the which we co-developed a training tool Modern Slavery Act 2015 to strengthen in 2018 intended to help our suppliers our commitment to pay careful attention and production and purchasing teams to three modern slavery issues: increase their expertise in this arena. WHAT IS THE FULFILLED WORKER PROJECT?  Forced labour: Employees at suppliers Our goal for 2019 will be to train our The idea behind the project is to work directly with the human resources teams at our partner suppliers' facilities to improve must offer their work or their services of on-site Decathlon teams to detect quality of life at work. Our focus is on a few specific areas: absenteeism, employee turnover, strikes and workplace accidents. their own free will, free of the threat of the warning signs of forced labour, We create a schedule with them incorporating a series of employee surveys that aim to produce a single indicator: employee any form of punishment. especially in known at-risk areas. satisfaction at the site. We launched this process in 2018 with five of our partners in India (six by the end of 2018).  Responsible hiring practices at our The work of our Sustainable suppliers: The hiring, transport, transfer, Development in Production teams WHAT WERE SOME CONCRETE RESULTS YOU SAW IN 2018? housing or hosting of migrant workers will involve implementing a procedure for the purposes of paid employment for reporting information about We started by scheduling several surveys to assess the most sensitive situations and topics, as a way of responding to must take place without threats, our suppliers in order to flag any employees' needs and those of human resources management. These anonymous questionnaires are designed to provide violence or coercion. confirmed cases and connect with local insights for management into the primary sources of dissatisfaction, revealing the root causes so we can take steps to organisations, such as the NGO Vérité, resolve them for good. The results also help us strengthen our existing initiatives. Each production site is unique, with its  Debt bondage: The work or service so that they can conduct investigations, own areas in need of improvement. provided is not tied to debt cancellation. care for victims and develop corrective We will be rolling out the project with other partners in 2019 so that we can take in the bigger picture and work on our Well aware of the risks that exist in the action plans locally. evaluation methods. We will continue our improvement and satisfaction work with our partners in 2023. parts of the world where our production sites are located, we will incorporate

COLLABORATING WITH OUR PARTNERS 2/ SUPPORTING OUR CHINESE AND TESTING WAYS TO GO SUPPLIERS WITH A CONTINUOUS BEYOND REGULATORY COMPLIANCE IMPROVEMENT PROGRAMME

Every country has its own regulatory framework. We believe that a relationship To support our partner suppliers in continuous improvement programme) built on trust is only possible if all our HERE ARE JUST China as they incorporate Human assessment criteria. production employees feel fulfilled in Responsibility in Production (HRP) With greater autonomy, suppliers their work, and we seek to go beyond TWO EXAMPLES OF THE MANY management principles as Decathlon are able to assess themselves and basic compliance with health and safety conceives of them, local teammates in maintain consistent, persistent social regulations. PROGRAMMES THAT HELP US China have developed a turnkey module performance. that facilitates the adoption of the audit We are developing pilot projects for This module, currently in the testing process and points the way towards in-house training programmes led by TRANSFORM RISKS phase, involves nine partners or key local Decathlon teams in collaboration day-to-day continuous improvement. VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY account suppliers (KASs) who received with site management teams. INTO OPPORTUNITIES: The HRP module for increasing an A, B or C rating during their most autonomy comprises five training recent audits.

DEFP2018 sessions that can be adapted to different In China 86% of our 410 sites (ranks 1 audiences and groups at the production and 2) had A, B or C ratings. sites (executives, managers, workers,

DECATHLON etc.) and begins with an initial mapping exercise performed using the Decathlon 74 and Operational Excellence (an in-house 75 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

ROLLING OUT THE LOCAL ENVIRONMENTAL RESPONSIBILITY IN PRODUCTION PROJECT: ENVIRONMENTAL MANAGEMENT ENCOURAGING OUR SUPPLIERS Decathlon is committed to continuously these issues at our suppliers' facilities. reducing the environmental impact We have identified and prioritised of our business activities, particularly the suppliers for whom industrial TO REDUCE THEIR IMPACT the impact of manufacturing our wastewater production, air pollution and Decathlon brand products. Our priorities wasteful energy use may be an issue. A The focus of the project is to prevent local in connection with the utilisation special set of specifications has been water, air and soil pollution associated of resources, industrial water, soil drawn up to help bring them in line with with our industrial processes. and air pollution, and the impact of our requirements, with audits performed In 2018 we worked to train our suppliers, waste generated, as well as energy regularly. sharing the reasons behind these consumption and CO2 emissions must These priorities are now shared with environmental priorities locally so be shared with our suppliers' production our industrial partners and suppliers, that responsibility for these issues sites. The goal being to limit local ensuring that they all take ownership would become part of day-to-day life populations' and sports users' exposure of them, adopt them in turn and at the plants. Our top priority is our to pollution and to continue promoting become autonomous when it comes to partner suppliers who consume large 3 active lifestyles at our production sites. verifications and measurements on a amounts of water (over 50 m industrial Since 2017, Decathlon has conducted daily basis. wastewater processed per day) with environmental audits focusing on industrial processes that involve dyeing, leather tanning, textile printing, surface treatments or metal paint processes, for instance. We have identified 228 suppliers (at the end of 2018) for whom this is the case. ENVIRONMENTAL MANAGEMENT 228 IN FIGURES RANK 1 AND 2 SUPPLIERS WERE IMPACTED IN 2018 (93 PRODUCTION SITES UNDERWENT ENVIRONMENTAL AS OF 31/12/2018 MANAGEMENT ASSESSMENT IN 2018) Some of our teammate trainers from 2017 went

FOCUS through the process of becoming internal auditors 13 ENVIRONMENTAL 96 SUPPLIERS 69.4% to expand their skill MANAGEMENT POINT PEOPLE INITIATED PROGRAMMES OF THE AUDITED PRODUCTION sets. With this additional SUPPORT THE OPERATIONAL TO MEASURE AND MANAGE SITES WERE GIVEN AN A, B or C We use our environmental audits to make  Air pollution: Dangerous emissions TEAMS THEIR CO2 EMISSIONS RATING FOR WATER, AIR AND expertise under their belts, an assessment of the observed situation are treated, not released directly into the SOIL USING OUR ASSESSMENT they make a more credible with reference to our specifications. air. CRITERIA and convincing case. It is then verified using the Decathlon  Soil pollution: Hazardous waste is not When suppliers are making criteria that were updated based on our leached by rain and does not damage work with the ISO 14001 standard and investment decisions is the water tables that are used for an external sector benchmark. These drinking water. precisely the time for us audits are performed by an outside Our industrial wastewater specifications 2018 ESSENTIALS to share our values and service provider (SGS) and by our own cover most water pollution-monitoring in-house auditors (24 internal audits improve environmental criteria. They are based on the among a total of 93). Applying the audit > WE ARE TRAINING AND ENCOURAGING MORE AND MORE SUPPLIERS TO COMBAT LOCAL performance. This is when international wastewater discharge criteria, we calculate a final score for the quality standards established by the POLLUTION, MAKING THEM MORE AWARE OF THEIR ENVIRONMENTAL IMPACT AND HELPING highly skilled auditors are supplier ranging from A to E. World Bank and the Zero Discharge VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY THEM GAIN THE SKILLS TO MANAGE IT ON A DAILY BASIS. most valuable and effective. We assess the following points: of Hazardous Chemicals programme, > WE MADE SIGNIFICANT PROGRESS IN TERMS OF THE NUMBER OF SUPPLIERS GIVEN A, B or C In 2018, 69.4% of impacted  Water pollution: Any industrial whose work serves as a reference for

DEFP2018 RATINGS THANKS TO CLOSER MONITORING OF THE SUPPLIERS WHO RECEIVED D OR E RATINGS suppliers were given wastewater must meet Decathlon some hazardous substances. IN PREVIOUS YEARS, AND WE ARE WORKING TO FIND AN IMMEDIATE AND LASTING SOLUTION TO A, B or C ratings. standards. When local standards and ADDRESS AREAS OF CONCERN. our specifications differ, we respect the

DECATHLON stricter criteria. > WE TRAINED OUR INDUSTRIAL PARTNERS TO MEASURE THEIR ENERGY EFFICIENCY SO THAT THEY COULD REDUCE THEIR CO EMISSIONS. 76 2 77 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

This comprehensive approach helps

reduce the CO2 intensity for each item produced (see p.17), improve suppliers' "THERE IS A LOT OF INTEREST IN THE CO2 ISSUE, carbon trajectories and cut costs. It BOTH INTERNALLY ON OUR TEAMS AND AMONG EXPLAINING THE REASONS FOR OUR ACTIONS introduces the concept of continuous improvement by reinvesting the money OUR SUPPLIERS, WHO ASK FOR OUR ASSISTANCE WITH THIS saved in new processes that are even FOR GREATER SUPPLIER ENGAGEMENT more energy efficient. TECHNICAL EXPERTISE. THIS IS A LONG-TERM PROJECT Over time, the goal is to optimise our THAT REQUIRES A GREAT DEAL OF HUMAN CAPITAL suppliers' energy consumption and INVESTED UP FRONT, BUT THE ECOLOGICAL AND ECONOMIC encourage them to turn to less polluting INTERVIEW energy sources – especially renewables BENEFITS ARE TANGIBLE AND LONG-LASTING." – by 2026. These aspects are part of the MATTHIEU LEMMET SBT6 for our greenhouse gas emissions. ENVIRONMENTAL ASSESSMENT IN PRODUCTION PROJECT LEADER ADRIEN JOUVINIER CO₂ IN PRODUCTION PROJECT LEADER WHAT HAPPENS DURING AN ENVIRONMENTAL AUDIT? Environmental auditors come in with industry experience because they are already Human Responsibility in Production auditors. We always start by explaining the reasons for this approach to better address the audit priorities. So we go over the risks associated with pollution, the importance of using chemicals responsibly, and the impact pollution has on local populations and the environment. When inspections are performed on site, any irregularities are taken into account. HOW DO SUPPLIERS REACT TO THE SUGGESTION THAT THEY MODIFY THEIR METHODS? INTERVIEW When suppliers understand that this is about more than just assessment criteria and behind it all is a way to create more value and protect people better, they want to get involved. The better this approach is understood and taken on board, the JUDY ZHU more naturally responsible and autonomous suppliers become. That is what makes our internal auditors so valuable: they SUSTAINABLE DEVELOPMENT IN PRODUCTION MANAGER IN CHINA. can provide guidance and support for the action plans. IN 2018, SHE ASSISTED FOUR PRODUCTION SITES WITH THE PROCESS OF MEASURING THE ENERGY DATA FOR THEIR OPERATIONS WITH THE GOAL OF REDUCING THE GREATEST SOURCES OF WASTE AND CHANGING

HOW CAN WE MAKE SURE THESE STANDARDS ARE MAINTAINED OVER TIME? THEIR PRACTICES TO SEE HOW THEY COULD REDUCE THEIR CO2 IMPACT. The key is training. We have to start with what we have observed, then develop corrective processes and offer the kinds of professional development options that operators need. These are long-term strategies that also promise lasting environmental benefits. Generally speaking, suppliers feel more engaged as a result of this support. They want to do better and quickly see tangible results proving that the steps they have taken are paying off. WHAT CONCRETE STEPS WERE TAKEN AT THE FOUR PILOT PRODUCTION SITES? Our goal, after measuring the actual data on energy consumption, was to optimise processes to save energy in the parts of the production chain that produced the most pollution. We worked with the production sites and collaborated with outside experts to understand, analyse and implement appropriate action plans. At one site in particular, we set up a new, more efficient steam control valve and new steam sensors and improved humidity

measurement. They were able to save nearly €246,000 with an investment of €4,838. We also cut kilogrammes of CO2 per THE CO₂ MANAGEMENT PROJECT: tonne of product by nearly 25%. WHAT ARE THE BENEFITS FOR THE SUPPLIER? SUPPORTING PARTNER SUPPLIERS The first upside for everyone is changing their way of looking at the problem: the process is seen an opportunity rather than an imposition. This shift takes place because the supplier has control over their own data collection tools, and we work WITH EFFORTS TO REDUCE together to ensure our units of measurement and calculations line up. We are speaking the same language. No matter where they are located, suppliers quickly see what they stand to gain when they receive support to anticipate local GREENHOUSE GAS EMISSIONS regulatory changes that are inevitable in these areas. In 2018, two pilot projects were conducted in China in dyeing factories (the most energy-intensive process). Energy

VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY In 2017, Decathlon began measuring equipment. For the most part, this energy autonomous when it comes to using consumption decreased after they had training, measured their CO2 impact, and received our support in developing action our suppliers' CO2 impact in an effort comes from fossil fuels (coal, gas and actual data to measure and manage plans to limit this impact. For instance, by installing steam and water sensors, CO2 emissions dropped by 11.7% per year, to reduce our greenhouse gas (GHG) oil), which account for a large proportion their carbon footprint each month. This resulting in savings of nearly €220,000. DEFP2018 emissions. Today, we know that nearly of GHG emissions. was implemented with 96 suppliers in 45% of the CO2 impact of Decathlon We strengthened our commitment 2018. We are aiming for greater energy products comes from the energy used to improving our practices in 2018, efficiency. DECATHLON at our production sites. These sites need especially through training and the use steam or electricity for the processes of the Resource Advisor tool, which all 78 required to manufacture sporting our partner suppliers can use to be more 79 6. SBT : Science Based Target CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

ECO-DEVELOPING STORES OUR GLOBAL NETWORK To help bring sport within everyone's In addition to commitments that apply reach, Decathlon is developing to the buildings themselves, our aim is infrastructure all over the world. In 2018 now to expand our efforts by improving & TRANSPORT we opened 1,151 stores worldwide, landscaping practices at our properties bringing the number of countries with to better protect biodiversity. Decathlon locations to 51. At the same time, Decathlon is Recognising the impact new buildings embarking on a digital transformation to have on the environment, Decathlon gives promote access to sporting equipment. priority to eco-construction approaches This change impacts our entire network. for the sites we own, using international It involves buying new computer certification standards (HQE, BREEAM, equipment and making more extensive LEAD, etc.) to help limit our impact. use of it, as well as increasing new To date, we have 91 eco-built stores, technology resources. This will have a including 23 in France, which has been a significant environmental impact. For pioneer in this approach, accounting for this reason, the Decathlon teams are 20% of our company-owned premises. carefully studying the consequences of This expertise is also applied to expanding our digital activity, measuring renovations of our leased sites in terms and implementing strategies to reduce of lighting, heating, air conditioning and our environmental impact. building management.

TRANSPORT AND MOBILITY IN FIGURES AS OF 31/12/2018

SITES OF OUR 1,511 91 20% STORES WORLDWIDE WORLDWIDE HAVE COMPANY-OWNED 168 MORE THAN IN 2017 BEEN CERTIFIED FOR PREMISES ARE WITH 12 NEW COUNTRIES THEIR ENVIRONMENTAL ECO-CERTIFIED ADDED IN 2018 PERFORMANCE

MORE THAN 311 g eq. CO2 EMITTED PER 2018 ESSENTIALS 55.6% DECATHLON PRODUCT OF ELECTRICITY 20,000 > AROUND THE WORLD, LOCAL REALITIES ARE TAKEN INTO ACCOUNT TO INTEGRATE DELIVERED ECO-CONSTRUCTION METHODS AT NEW SITES: WEATHER CONDITIONS, REGULATIONS, USED BY STORES PARTICIPANTS AT STANDARDS, ETC. AND WAREHOUSES IS DECATHLON WORLD > IN FRANCE, DECATHLON CO-DEVELOPED A TOOL TO MEASURE ENVIRONMENTAL CLEAN UP DAY EVENTS PERFORMANCE IN AN EFFORT TO ACCELERATE THE ROLL-OUT OF OUR BIODIVERSITY RENEWABLY-SOURCED -19% APPROACH. IN 31 COUNTRIES COMPARED TO 2018 > THE ENVIRONMENTAL PERFORMANCE OF OUR DIGITAL TECHNOLOGY WAS MADE EUROPE PERIMETER A STRATEGIC PRIORITY FOR OUR IT DEPARTMENT. 81 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

BIODIVERSITY AT DECATHLON Biodiversity refers to the diversity of living The goal of the Biodiversity project species and their genetic characteristics. launched in France in 2017 is to ensure Unfortunately, biodiversity is shrinking that the impact of land and buildings day by day, disrupting ecosystems and owned by Decathlon is positive, leaving making them increasingly fragile. the environment in better shape than we At Decathlon, we believe we have a found it. responsibility to preserve and protect As part of this Biodiversity project, biodiversity in our outdoor landscaping. In Decathlon is taking action on five fronts addition to applying for certifications, our simultaneously: ecological continuity, Property teams also make adjustments water resources, soil assessment, to buildings to preserve ecosystems and climate and air quality, and light pollution. tackle biodiversity challenges like soil In addition to straightforward landscape artificialisation and ecological continuity. integration efforts, the project also aims Decathlon store - Saint-Malo (France) INITIATIVES AND AWARENESS to protect and restore habitats. TO PROMOTE ECO-CONSTRUCTION OF STORES At Decathlon we promote eco- In addition to pursuing certifications, power station on the roof, which has FOCUS :  We took special care in selecting a All these efforts have significantly construction approaches to protect additional eco-construction approaches been running since early 2019. variety of local trees and bushes and improved the site's environmental quality. DECATHLON TESTS local environments. Decathlon currently are being adopted at many of our stores. Around the world, all new Decathlon establishing a flower-filled meadow to Our diagnostic tool shows that our recognises four certifications: LEED, In 2018 two stores in France (Treillières stores are equipped with LED technology AN ENVIRONMENTAL replace the monoculture. Saint-Malo store has a higher biodiversity DGNB, HQE and BREEAM. In France all and Béziers) decided to apply these and some open with an eco-construction PERFORMANCE MEASURING  Animal species were introduced: we score compared with when intensive our company-owned buildings received methods. As part of the store relocation approach on site, as is the case in South TOOL IN SAINT-MALO set up beehives and brought in sheep for monoculture was used, and that carbon BREEAM or HQE certifications upon process, they chose to greatly increase Africa. an eco-friendly, non-mechanical form of sequestration has increased compared completion since 2010. For leased the use of natural light and install a solar landscaping. with the site's original state thanks to stores, we have a policy in place to In 2018 Decathlon developed a All this helped us develop a well-rounded, the plant species we have introduced. manage our consumption of energy and multicriteria analysis tool that measures well-balanced biotope: Thanks to all these efforts, we were able use of resources: we have now equipped and lists the major environmental to improve the local ecosystem. With every store in France (except Essential  The infiltration basin is now a wetland challenges at each store to then this tool our Property teams showed that stores) with LED lighting and centralised SOUTH AFRICA : TAKING ADVANTAGE where the flora and fauna associated determine the environmental impact Decathlon stores can have a positive building management systems that OF LOCAL CONDITIONS TO SAVE ENERGY with this kind of habitat are thriving. of the site. This tool, which has been environmental impact if we take the right regulate temperatures and equipment  The meadow is full of bee-friendly steps from the very start, as of the design FOCUS We opened our first two Decathlon stores in South Africa in 2017 and, operational since 2018, has been used operating times. flower species that will help increase phase. This initiative will help Decathlon in an effort to capitalise on local conditions, the teams worked to to assess the environmental impact of To reap the full benefits of this policy at pollination at our site and surrounding maintain closer and more harmonious integrate energy-saving features into the project. The Johannesburg our landscaping before and after we ones. our stores, it is important to ensure our move into a location. It was developed ties with local stakeholders. teammates are on board. That is why we store provides a good example. The idea was to use skylights to let in partnership with an outside firm  The use of phytosanitary products is developed our "ABCDE" environmental natural light into the store. The building's height was lowered by one that specialises in these issues and prohibited at the site. handbook, for stores, and in 2018 we metre to reduce heating and cooling costs, and the air conditioning the assessments are confirmed by an created a position for the coordinator 1 system that was chosen employs an energy-saving evaporated cooling independent auditing firm . The tool is of sustainable development practices in meant to serve as a benchmark and to be method that uses ambient humidity to cool the air. These changes our French stores. developed. “BY IMPROVING BIODIVERSITY AT THE SITE COMPARED helped our teams reduce energy use and keep construction and This approach to improve landscaping WITH THE PREVIOUS ECOSYSTEM, THE WILD DREAM OF operations costs down. They were able to pass on these savings to at our sites, and more specifically to South African consumers, thereby making sport more affordable. promote biodiversity, is modelled on our HAVING OUR DEVELOPMENT ACTIVITIES YIELD A NET Saint-Malo project, with the goal being POSITIVE IMPACT BECAME POSSIBLE. to have a net positive impact. During the design phase for the site we incorporated THANKS TO THE TOOL WE DEVELOPED, WE CAN FEEL this approach into our work by assessing PROUD TO CONTINUE OUR GROWTH IN A WAY THAT ALIGNS the initial state of the plot (intensive VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY CHANGE IN THE NUMBER monoculture). We then decided to focus WITH OUR VALUES, BY TEAMING UP WITH NATURE.” OF CERTIFIED COMPANY-OWNED % our efforts primarily on: CHRISTOPHE CHENEVIÈRE, PROPERTY TEAM DEFP2018 PREMISES WORLDWIDE %  Permeability: the site can now handle 2 2018 AS A % OF M 2017 all rainfall thanks to porous car parks, % infiltration basins and ditches with DECATHLON phytopurifying plants that fight soil 2016 erosion, leaching and pollution. 82 83 1. https://www.ericlequertier.com/fr/signature-biodiversite/dpe-diagnostic-performance-environnementale/ CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

SUPPORTING FRENCH STORES SUPPORTING AS THEY MAKE A DIFFERENCE EVERY DAY Because stores are the initial point of challenges, tools, best practices and recycling in break rooms, replacing LOCAL COOPERATION direct contact with our customers, we goals. Twenty teammates completed disposable cups with eco-friendly ones, Preserving local playing fields to have a Through our efforts to raise awareness must train our teammates to meet their this new training programme in 2018. etc.). We have also put new processes in long-term positive impact on the region is about sustainable development – sustainable development expectations. place (second-life initiatives for sporting The local initiatives we have implemented a key priority for new Decathlon locations. holding events where we help clean To help stores implement the strategies to equipment, prioritising green energy, include holding sporting events and Our subsidiarity strategy (autonomy, up local sports fields and assessing accomplish this, our Decathlon Support etc.). changing teammate habits (sorting responsibility and freedom) promotes the impact our stores have on their teams identify and develop a network local engagement, the implementation of surroundings – Decathlon helps ensure of volunteer Blue and Green leaders environmentally-friendly local initiatives that future generations can enjoy and specialists who are responsible for and a community-building role for each sport and strengthens our ties with our supporting in-store teammates. This site. neighbours. This encourages teammates network had 100 members at the end TESTIMONIAL and sports users to put the fifth pillar of 2018. The goal is to give operational of our Decathlon Vision into practice: teams all the resources they need to get THÉO ROCHE "Preserving the planet and its inhabitants stores involved in these efforts. RETAIL SUSTAINABLE DEVELOPMENT LEADER FOR FRANCE to protect our purpose." At the same time, we train our specialists so that they can share their subject expertise with others. For this we have set “With this training, teammates no longer feel so alone. It helps spur them into up a four-hour training programme that action. In addition to offering support, our goal is to empower our teams and teaches specialists about Decathlon's prepare them to adopt sustainable development best practices.”

GREEN IT: SUPPORTING IN FIGURES A SUSTAINABLE DIGITAL TRANSFORMATION AS OF 31/12/2018 Decathlon's digital transformation brings equivalent emitted by the end of 2018, We created an educational programme with it a significant increase in the amount or 420 kg of CO2 per employee. This for our IT teams so that each team TONNES of equipment and IT services used at carbon footprint results largely from could develop their own Green IT 73 5 COUNTRIES our stores and in our administrative the equipment used by teammates. In projects. Decathlon also incorporated OF WASTE WERE 5,632 offices. New technology like big data response, Decathlon implemented a environmental criteria into our IT CALCULATED COLLECTED DURING EVENTS WERE HELD and artificial intelligence are among four-step plan to extend the service life equipment purchasing processes. THEIR REGIONAL FOR CUSTOMERS IN the factors that increase Decathlon's for these tools: Meanwhile, certain digital tools were WORLD CLEAN UP DAY FOOTPRINT environmental footprint. They require  Having IT services fix and reuse this made available in 2018 to encourage FRENCH STORES more storage and more servers (both equipment for other employees; all our teammates to adopt a more IN 31 COUNTRIES internal and cloud-based), which has a  Having the stores share available sustainable approach to consumption: significant impact on the environment. equipment; a tool for measuring our digital impact Green IT became a strategic priority for and a website listing best practices. In  Selling to refurbishers when the our IT policy in 2018, as we strive to keep Spain we were able to save 196 tonnes of this impact in check and foster a more equipment has reached the end of its CO2 equivalent by replacing paper cash service life at Decathlon; sustainable digital transformation. register receipts with digital ones. Calculating the environmental impact  Lastly, if it is not possible to resell or of digital technology, we found that repair the equipment, recycling it with a 2018 ESSENTIALS it resulted in 35,000 tonnes of CO2 community organisation.

> DECATHLON PIVOTED TO MORE LOCALISED STORE MANAGEMENT.

VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY > WE ADDED NEW INITIATIVES FOR CLEANING UP LOCAL SPORTS FIELDS. GREEN IT

DEFP2018 > WE EXPANDED OUR EFFORTS TO MEASURE THE SOCIAL IMPACT OF OUR CORPORATE In 2018, the Green IT leader applied for and was granted a sustainable ACTIVITIES ON LOCAL COMMUNITIES. digital certification from Club Green IT, an organisation that certifies > LOCAL TEAMMATES AND STAKEHOLDERS WERE ENCOURAGED TO MAKE TANGIBLE DECATHLON FOCUS how well the methodologies, best practices, wording and basic knowledge behind this approach are implemented. CONTRIBUTIONS TO SUSTAINABLE DEVELOPMENT. 84 85 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

At the end of 2018 there were seven STRENGTHENING LOCAL TIES of these conglomerations in Belgium CALCULATING THE REGIONAL IMPACT (Hainaut, Liege, Antwerp, Brussels, Namur, Limburg and West Flanders). AT DECATHLON BELGIUM: Additional entities are now taking shape, OF OUR ACTIVITIES FOR MORE with the goal of ultimately covering the CONGLOMERATIONS entire country. The purpose of these SUSTAINABLE LOCAL DYNAMICS networks is to bring together all local GRADUALLY REPLACE talent to facilitate agile, rapid and concrete Decathlon is launching an exploratory process to calculate the social footprint of a given unit (a team, store, site, brand or country) actions and to clarify issues that would and measure the total impact of its activities, improve them and ultimately ensure our company’s sustainable growth. The goal have been more challenging to identify of this study is to "assess today so we can build tomorrow", involving all our stakeholders in the process (employees, customers, REGIONAL ORGANISATION using our former management structure. suppliers, and stakeholders from the local economy and civil society). An overall view is gained from the ground up, starting with The most mature conglomerations share local initiatives. This also helps our teammates and the local residents with whom we interact take pride in what we do. Prior to 2018, the management structure concerns in their area revolving around a sense of purpose, core principles and for Decathlon stores in Belgium was We measure the impact of our activities 2. Exploring and testing new solutions assessing their social footprint and have people, finances, expansion efforts and clear practices. A local leader known as organised into three geographic regions: based on their social, economic and that align with the identified priorities now completed the first step. more. a “pacer” oversees the entire structure, West, Central and East. In 2018, a new environmental effects, which are the (design, partnerships, products, working This collaborative system gave ensuring that the network is running At the end of 2018, the project team conglomeration-based network began to three pillars of sustainable development. methods, etc.). participants a chance to share problems, smoothly. was working with a network of around take shape. We have a four-step, three-year support 3. Incorporating the most relevant 15 local ambassadors, all trained in this suggest ideas and experiment, as well The former responsibilities of our A collective of local stakeholders from plan: options (new industrial processes or approach. as to take decisions that made sense regional directors have been reorganised stores in one catchment area began 1. Talking to local stakeholders to take more sustainable and responsible for their communities, local sports users to reflect the issues and talents identified In addition to calculating the regional meeting regularly to talk about common stock of our current activity based on products, for instance). and sports fields. among the network members. impact and implementing new operating four criteria: sustainability, inclusivity 4. Assessing, after a period of one or two methods, this project helps us call into (involving the local ecosystem), years, the value created compared with question Decathlon’s current global innovation and transferability (whether the baseline value. business model and imagine how we the model can be replicated elsewhere). In 2018 three countries (Ghana, the might operate in the future. A score from -1 (if value is destroyed) to Philippines and Lithuania) and two sites 5 is assigned. This report also includes (Mountain Store in Sallanches and Btwin recommendations and potential Village in Lille) expressed an interest in strategic focus areas. FOCUS ON OUR POINTS OF SALE IN FRANCE FOR SEVERAL YEARS NOW INTERVIEW WE HAVE OFFERED OUR SPORTS USERS NADÈGE IFF SUSTAINABLE DEVELOPMENT LEADER IN THE PHILIPPINES DIFFERENT TYPES OF STORES: WHY DID YOU CALCULATE DECATHLON'S SOCIAL FOOTPRINT IN THE PHILIPPINES? DECATHLON STORES We were very taken with this approach. It provides a snapshot that measures every aspect of our impact, not just within the located in city centres or outlying areas with a total surface area of over 1,000 m². company but also in the eyes of all our stakeholders. That is a key part of the project in the Philippines, which was inspired by the example of India, the first country to try this method. DECATHLON ESSENTIEL STORES WHAT DID YOU DISCOVER? in towns of 30,000 or fewer residents with a total surface area of 1,000 m². First, that just one year after opening our first store we already have some very promising results! This is a major motivator DECATHLON MOBILITY STORES for our employees, and it has led to some strategic avenues for the development of the project. for sports users in transit areas (e.g. railway stations). WHAT CHANGES WILL THAT BRING IN THE FUTURE? When we collaborate with our stakeholders and open ourselves up to the outside world, we are putting our values into DECATHLON CITY STORES practice. This is also transformative for our business model, with an approach built on the three sustainable development with a total surface area between 500 and 1,000 m². Since 2016 their tagline has been "Let's Get Moving" to promote sport in

VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY pillars. It's still something of a gamble and it's not always easy to defend, but I believe it will pay off in the long run. their communities. The Saint-Germain store in Paris (700 m²) offers local sports users three very different ambiances featuring exclusive Decathlon brand collections and products. Beneath the skylights, qualified coaches offer classes after store hours so WHAT INITIATIVES WERE DEVELOPED IN 2018 AS A RESULT OF THIS PROJECT?

DEFP2018 that customers from the neighbourhood can get back into sport and try out our products at the same time. Just to name a few, we hired 11 employees from shantytowns – through a partnership with the local branch of an NGO called LP4Y – and we sorted and recycled waste. We held eco-runs and open houses to introduce people from disadvantaged backgrounds to our company and we helped found a small local business that uses sport to further the development of DECATHLON children with special needs, such as autism or Down's syndrome. 86 87 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

 Eco-Hike Day (2 June 2018): With MAINTAINING the help of 130 stores in France, 2,500 hikers collected 3.5 tonnes of waste from 445 km of trails. In addition to our OUR PLAYING clean-up efforts, we set up workshops to help people understand sustainable FIELDS development issues. This event earned Quechua the prize for "sporting event of By maintaining clean sporting the year" from Stratégies magazine. environments, we are ensuring that  future generations can play sport and Earth Hour (24 March 2018): 90 stay healthy. Decathlon teams the world Decathlon stores in Spain turned off over engage in a range of initiatives that their exterior lights for one hour. Teams combine sport and simple habits that from WWF were on hand to teach people everyone can adopt. about climate change and to explain how it affects sports facilities.  World Clean Up Day (15 September 2018), one of the biggest civic initiatives in the world, encourages people around “THE RESULTS OF WORLD CLEAN UP DAY AND THE the globe to pitch in on the same day to help clean up the planet. In 2018 over FEEDBACK FROM OUR TEAMS HAVE BEEN A SOURCE LEADING CHANGE 20,000 participants from inside and OF JOY AND PRIDE. OVER 60 PARTICIPANTS SPENT outside the company collected 73 tonnes WITH THE SEED GAME IN TAIWAN of waste at 350 sites in 31 countries TWO HOURS PICKING UP RUBBISH OUTDOORS. IN THE END where Decathlon operates. WE FILLED THREE MAGNUMS2 WITH JUST WHAT WE FOUND Decathlon Taiwan has created an annual Some of the individual and group At the end of 2018 a total of 965 challenge known as the Seed Game to initiatives include cycling to work or teammates had engaged in at least one AROUND THE NORTHAMPTON WAREHOUSE.” help all their employees understand the helping to clean up local sports fields. local initiative (89.7% of employees). THE COMMUNICATIONS TEAM challenges of sustainable development The accumulated seeds can add up Among their achievements: helping AT THE NORTHAMPTON WAREHOUSE IN ENGLAND to make a real difference in their to a year-end bonus of up to 5% of an the Zhonghe store save over €27,000

communities. With this fun, engaging employee's salary. For 2018 the goal was and reducing commute-related CO2 system, teammates from the 12 stores to have employees earn a total of 80,000 emissions for Decathlon in Taiwan by and one warehouse in Taiwan earn virtual seeds in Taiwan. This community of 20% compared with 2017. A grand total seeds every time one of their actions sustainability-minded teammates shares of 63,233 seeds were "planted", earning LOCAL supports sustainability: creating value, ideas and actions through in-house our Taiwanese teammates a bonus equal promoting energy efficiency, reducing network, which has helped popularise to 2.3% of their annual salary. waste, supporting eco-friendly transport, and give impetus to the initiative. SPORTING eco-design or more sustainable production. They also earn a seed by EVENTS: acting as ambassadors of the strategy. MAKING SPORT ACCESSIBLE TESTIMONIAL 89.7% TO ALL CANDICE LEE OF TAIWANESE SUSTAINABLE DEVELOPMENT LEADER FOR TAIWAN TEAMMATES TOOK When Decathlon holds an event, it helps  Vitalsport events, where people can In 2018 Decathlon stores in France CONCRETE STEPS us connect to the community, build try between 10 and 45 sports over the held 5,632 sporting events attended “Our aim with the Seed Game was to simplify environmental challenges and trust in our products and make sport course of one or two days , usually the by 21,240 people. And 114 stores held find a fun way to mobilise teammates and encourage them to take action. This TO SUPPORT accessible locally. There are three types second weekend in September. Vitalsport events, attended by a total of system is built on trust and responsibility, which fosters a collective desire to of sporting events: To boost our teammates’ knowledge 565,000 visitors. participate, so that more and more teammates naturally join in the movement. SUSTAINABLE VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY  Product tests that take place in and give them more autonomy, we offer They get involved because they understand the stakes and how they can help." DEVELOPMENT our stores and simulate actual use a day of training and practical tools: conditions; a customisable communication kit, DEFP2018  Sporting events where people can technical safety data sheets and more. learn about and try out different sports by Teams can also use a dedicated site to using our products in real-life conditions; interact with participants and spread the DECATHLON word about their sporting events.

88 89 2. Magnum: a container holding approximately 0.8 m³ CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

CHANGE IN ENERGY CONSUMPTION PER YEAR FOR STORES AND WAREHOUSES WORLDWIDE OPTIMISING OUR ENERGY IN kWh/M2 AND WASTE MANAGEMENT STORES The technological progress that has Our energy leaders, who are active in most been made worldwide in the sectors of countries where Decathlon operates, WAREHOUSES 2017 2018 2017 2018 sustainable energy and the development are responsible for coordinating efforts of waste recovery is very encouraging. to reduce energy consumption at our Despite these advances, however, we sites. By capitalising on established best must redouble our efforts if we want to practices, their leadership resulted in a meet the UN's goals for 2030. 7.2% reduction in 2018 for our stores and To rise to this global challenge, Decathlon a 21% reduction for our warehouses. has a role to play in conserving the What to do with waste is a growing COMMITTING resources we consume, especially when concern for our customers and it comes to the use of raw materials and teammates. People want to make a energy. difference, and a number of initiatives TO USE ENERGY FROM That is why in 2018 Decathlon committed are being introduced worldwide. to use only electricity produced from 100% RENEWABLE SOURCES renewable sources by 2026, as part of the RE100 international initiative. In September 2018 Decathlon joined the As of today, 70% of Decathlon's total global RE100 initiative during Climate electricity consumption is generated Week in New York. This initiative brings in France, Spain, Italy and China. At the together all the companies that have end of 2018, 55.6% of our electricity ENERGY AND WASTE MANAGEMENT IN FIGURES committed to using renewably-sourced consumption was supplied by renewable AS OF 31/12/2018 electricity to speed up the transition to a energy. low-carbon economy. This voluntary effort is one concrete Decathlon has made a commitment step that Decathlon is taking to combat to use 100% renewably-sourced climate change and actively promote NEARLY 30 COUNTRY ENERGY LEADERS 45% OF ALL WASTE GENERATED electricity for all our activities by 2026. the development of renewable energy RESPONSIBLE FOR REDUCING ENERGY BY OUR ACTIVITIES IS SORTED This commitment applies to all our worldwide. It will also enable Decathlon CONSUMPTION AT DECATHLON SITES (39% IN STORES AND 66% IN WAREHOUSES) commercial and logistics sites (owned to gain some measure of control over or leased by Decathlon) throughout the energy costs at a time of volatility in the 13 MORE THAN IN 2017 NO VARIATION FOR STORES WAREHOUSES: 6% LESS THAN IN 2017 world. energy market. We will be using two methods to achieve this goal: on-site production and purchases of renewably-sourced ENERGY CONSUMPTION: electricity (from dams, solar panels and "IN JOINING THE RE100 INITIATIVE, 63.3% windmills). STORES EQUIPPED 2,289 When it comes to producing renewable WE HOPE TO LEARN FROM AND WORK WITH OTHER WITH LED TONNES OF HANGERS kWh/m2 kWh/m2 energy at our sites, five stores and COMPANIES IN AN EFFORT TO MAKE RENEWABLE LIGHTING, I.E. RECYCLED 58.1 118 warehouses are currently equipped FOR WAREHOUSES FOR STORES with solar panels in France, and the first ENERGY MORE AFFORDABLE WORLDWIDE. (COMPANY-OWNED 45% MORE THAN IN 2017 21% LESS THAN IN 2017 7.2% LESS THAN IN 2017 installations in China and India were AND LEASED) completed in 2018. IN SEEKING TO LIMIT OUR ENVIRONMENTAL For the majority of our energy IMPACT, WE ARE HONOURING DECATHLON'S consumption, this work will involve purchasing guarantees of origin for VISION 2026 BY CONTINUING TO PRESERVE power supplied by solar, hydro and wind 2018 ESSENTIALS energy. OUR RESOURCES AND PROTECT OUR PLAYING FIELDS AND OUR SPORTS USERS." VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY > WE COMMITTED TO USE 100% RENEWABLY-SOURCED ELECTRICITY FOR ALL OUR ACTIVITIES BY THE END OF 2026. EMMA WOOLLEY, SUSTAINABLE DEVELOPMENT LEADER DEFP2018 > OUR WASTE SORTING RATES REMAINED STABLE DESPITE GROWING AWARENESS IN THE UNITED KINGDOM AND RENEWABLE AMONG OUR TEAMMATES, IMPROVED SORTING HABITS AND A GROWING NUMBER ENERGY PROJECT MANAGER OF LOCAL INITIATIVES AROUND THE WORLD. DECATHLON > OUR GLOBAL NETWORK OF ENERGY LEADERS CONTINUES TO GROW. 90 91 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

sorting), develop the local strategy for A WORLDWIDE their areas in line with regional needs and THE #ZEROPRODUCTSDISCARDED INITIATIVE resources, and implement the resulting NETWORK action plans. IN THE GREATER LILLE AREA OF FRANCE The data they collect gives them accurate information about the environmental The #ZeroProductsDiscarded initiative That is why #ZeroProductsDiscarded practices and make people want to effect DEDICATED impact of sites, so they can take stock of began in 2018 based on an observation: has two parts: change. In 2018 a total of 400 people the main emissions sources and use this addressing the challenge of discarded  One part involves an experimental (Design and Central Services teams TO MANAGING information to design their action plans. sporting equipment must be done locally laboratory that catalogues types of based in the greater Lille area) took part This network-based structure means to be effective. products and the reasons they are not in this initiative. ENERGY that we can target our local efforts more Waste is something tangible and concrete sold, and looks for suitable solutions that The purpose of the program is to closely and take into account the realities that our Decathlon teammates want to can be easily implemented on the ground understand what gets discarded in To address the global imperative to of each region. After all, each country, and change. It presents certain dilemmas (sorting, repairing, recycling, donating, stores to manage the products being reduce energy consumption, we put each city within a country, has different as well, with store requirements like etc.) to answer the questions: "What returned today, and to find effective in place a network of energy leaders needs and resources depending on the customer safety and service quality on attitude should we adopt in each case?" solutions to prevent discarding products who strive to bring about change. Each local climate: the need for heating or air This makes it possible for us to exchange the one hand and the need to act urgently and "How can we roll out each solution in in the future. good practices for the benefit of all, and quarter, the teams are informed about conditioning, the need for more or less to preserve the environment on the other. as many stores as possible?". All five Decathlon stores in the greater to increase our expertise in this area for consumption in their country. lighting, or the ability to produce energy We need to get our teams and users on  The second involves an awareness Lille area have committed to ending the more flexible and effective decisions and They report on the energy consumed by with solar panels in areas with sufficient board through motivating approaches campaign called #ItStartsWithUs that practice of discarding sporting goods by faster local implementation. the networks of stores and warehouses in sunlight, for instance. that are easy to implement. aims to inform our Decathlon teams, 2019. their country. They collect environmental engage a conversation, inspire new data (electricity use, renewable energy, natural gas, and waste production and TYPES OF WASTE GENERATED TRENDS IN WASTE SORTING BY TEAMS BY OUR SITES WORLDWIDE DECATHLON STORES, BRANDED SITES AND STORES WAREHOUSES COMPANY-OWNED WAREHOUSES

SORTED PAPER 12 DECATHLON STORES 63.3% OF STORES AROUND THE AND CARDOARD % WERE EQUIPPED WITH SOLAR WORLD HAVE INSTALLED LED LIGHTS 36% PLASTC 2016 2% 10% MORE THAN IN 2017 % PANELS IN INDIA SORTED PACAN % 2018 5% 2017 OTHER OOD ETAL SCRAPS ED ASTE TETLES ETC % % % 55% 2016 2017 2018 BROADENING THE SCOPE 2% OF OUR WASTE TREATMENT POLICY Waste is the visible part of our (see p. 93), offering practical, locally Several initiatives have been introduced environmental impact that we witness focused solutions for efficient waste to support recycling and use fewer raw every day. Our business activities all sorting, better management of recyclable materials: APPLYING THE 3RS STRATEGY produce waste, which is managed daily waste streams, and improvements to  In Italy, the Reusable Bag project puts by teams in our stores, branded sites, second-life products and the product- reusable cloth shopping bags, made TO OUR HANGERS: REDUCE, REUSE AND RECYCLE central services and warehouses. The donation process. from fabric scraps or excess inventory, in In 2014 we launched a project for putting  We recycled 2,289 tonnes of plastic waste is mainly paper, cardboard, plastic, Each country is responsible for its own the hands of customers. “REUSING HANGERS IS ONE metal scraps and wood. These come clothes on hangers at our production hangers, an increase of 45% over the waste management. All countries where  In Spain, the Recycled Flip-Flop project from our packaging materials, defective sites rather than having our teammates previous year (1,575 tonnes in 2017). OF THE MOST IMPORTANT Decathlon operates do not have stringent recycles used tennis balls brought to products and everyday consumables. handle the hangers at the stores. All  Some of the recycled hangers were AREAS FOR US TO WORK regulations or the same standards stores by customers and transforms our clothing has arrived at the store on In 2018 81,019 tonnes of waste were applied to recycling and recovery sectors. used to produce new hangers for

VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY them into beach shoes for the Olaian hangers since 2015, and we wanted to ON IF WE WANT TO generated by our sites. That is why our network of environment Decathlon; in 2018 the new hangers were Decathlon brand. Nearly 235,000 balls create a closed collection loop to reduce produced using 16% recycled material. SIGNIFICANTLY REDUCE Customers and teammates want to see leaders encourages people to develop have been recycled and 7,300 pairs of our waste and our GHG emissions.  4.8 million hangers were reused, DEFP2018 initiatives and implement processes that new practices be put in place rapidly. We flip-flops have been sold. Now in 11 countries hangers are collected OUR CARBON FOOTPRINT.” do more than just comply with local laws. for savings of 300 T CO2 eq. (200,000 created our sustainable development (38% of all hangers provided) for ROELAND VERVLOET, training programmes to meet this need hangers collected in 2017, 19 T CO2 eq. recycling (16%) or they are immediately saved). HANGUP PROJECT LEADER DECATHLON reused. In 2018: AND ENERGY LEADER IN THE NETHERLANDS 92 93 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

BREAKDOWN OF PRODUCT CO2 EMISSIONS BY TRANSPORT METHOD TRANSPORTING VOLUMES TRANSPORTED BY IN Kg CO2 EQ. TRANSPORT METHOD WORLDWIDE OUR PRODUCTS AND AS OF 31/12/2018

AR ROAD ENCOURAGING ECO-MOBILITY 3.2% AR ARTE 71,137,392 6,626,488 Worldwide, 2018 was the fourth-warmest Decathlon is working to develop ROAD 84.7% year on record. The Earth's surface is alternatives to limit our impact and warming, and the consequences are promote sustainable mobility. Our 10% becoming more and more obvious each company is focusing on three areas: RAL RAL ARTE year, prompting us to join forces and take  the transport and storage of 2.1% 2,369,648 124,865,682 action to reduce our carbon footprint. merchandise The United Nations Environment  travel by customers and teammates to Programme has concluded that the reach our stores, logistics platforms and transport sector is largely responsible offices for air pollution and that it is the source  the promotion of soft mobility in users' of 24% of all greenhouse gas emissions. daily lives The volume of products transported by It is vital that we combat the causes STORING AND rail did not increase, despite the creation of of climate change by reducing net a direct link between factories in Wuhan, emissions of greenhouse gases linked to China and the Dourges multimodal transport (by rail, air, road, sea, etc.). TRANSPORT platform in 2017. In reality, the difficulty Our logistics teams are working to reduce of assembling the necessary volumes to emissions generated by transporting fill an entire train in the Wuhan region and the logistics involved in moving products TRANSPORT products from production facilities to our 3 stores. Reducing the distances travelled, from Dourges to distribution platforms AND MOBILITY 53.2 m optimising loads and using less polluting have limited our ability to take advantage IN FIGURES PER-LORRY LOAD RATE BETWEEN transport methods are just a few of the of this link. In 2019 we will be reducing areas our teammates are prioritising for the size of full trains from 40 to 20 AS OF 31/12/2018 MAJOR IMPORT WAREHOUSES AND their work. As a result, Decathlon was containers per train so that we can make DISTRIBUTION WAREHOUSES IN EUROPE able to halve our use of air transport in better use of the link between Wuhan COMPARED WITH 54.9 m3 IN 2017 2018, thanks to our teams’ additional and Dourges and further reduce our CO2 efforts to limit the need for this form of emissions from international transport. Catherine store (France) are made using transport. This impetus helped reduce To shrink the carbon footprint generated natural gas-powered lorries travelling the environmental impact of our products by transporting Decathlon products, from the closest warehouse. In Germany, transported from production countries to soft mobility solutions have also 89% of deliveries from the Dortmund 311 g CO2 eq. 16.2% Europe by 19%. been implemented for trips between warehouse to certain stores are made by EMITTED PER DECATHLON At the same time, Decathlon seeks to major import warehouses, distribution train. POST-SHIPMENT MULTIMODAL use rail and maritime transport, which platforms and stores. For shorter trips, One last area of focus is the lorry filling PRODUCT DELIVERED IN EUROPE TRANSPORT IN EUROPE are less polluting alternatives for the which usually take place on roads, we are rate for the return trip from stores to 19 % LESS THAN IN 2017 now increasingly turning to rail, short-sea COMPARED WITH 21.9% IN 2017 environment. warehouses. The HangUp project, for shipping (between countries on the same Maritime transport remains our top instance, involved picking up hangers continent) and natural gas-powered choice. It accounted for 84.7% of the from stores to be taken back to lorries. Deliveries to the Bordeaux Sainte- total amount of products transported at warehouses. the end of 2018. For that reason, over the past few years we have elected to have at least 80% of our goods transported with THE FINANCIAL COST OF HYBRID VEHICLES 2018 ESSENTIALS shipping companies that are part of the IS OFFSET BY THE ECOLOGICAL BENEFITS, Clean Cargo Ranking Group initiative. SAVING 17 Kg OF CO2 EACH DAY, AND BY ADVERTISING VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY > WE HALVED OUR USE OF AIR TRANSPORT BETWEEN 2017 AND 2018: 3.2% OF OUR PRODUCTS DISPLAYED ON THE SERVICE PROVIDER’S VEHICLE. WERE TRANSPORTED THIS WAY IN 2018, COMPARED WITH 6.5% IN 2017. WE BELIEVE IN THE BENEFITS OF THIS TRANSPORT METHOD DEFP2018 > WE POSITION OURSELVES AS A SUSTAINABLE MOBILITY LEADER BY DESIGNING, PRODUCING AND SELLING SOFT MOBILITY SOLUTIONS. AND WE ALREADY HAVE A SECOND PROJECT IN THE WORKS FOR STORES IN THE GREATER BORDEAUX AREA." DECATHLON > WE ENCOURAGE OUR TEAMMATES TO USE ALTERNATE FORMS OF TRANSPORT THROUGH ANTOINE ROLLAND, TRANSPORT LEADER OUR MOBILITY CHALLENGES IN MULTIPLE COUNTRIES. FOR THE REGIONAL WAREHOUSE (CAR) IN CESTAS, FRANCE 94 95 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

TEAMMATES RISE TO MEET MOBILITY CHALLENGES WORLDWIDE”

Our German teammates set themselves In Spain, the mobility challenge that The Ciclogreen mobile application, the challenge of using sustainable lasted the entire month of April 2018 developed expressly for this challenge, transport to commute to work each brought teammates together by engaging is still being used by Spanish teammates day. With assistance from the Coach by in friendly inter-store competition who want to track their eco-mobility

Decathlon application, which logs every and saved a total of 2.9 tonnes of CO2 progress. trip, teammates in Germany were able to equivalent in a single month.

save over 2.9 tonnes of CO2 equivalent during the two-month challenge.

ENCOURAGING ECO-MOBILITY

For our teammates and customers, In 2018 Decathlon sold nearly 4.7 million A total of 720,000 bicycles were repaired moving in more eco-friendly ways begins bicycles worldwide (4 million in 2017), at our global network of workshops with how they reach our stores. all models and age groups combined. (1,000 worldwide and 20 in regions) in We are positioning Decathlon as a player Decathlon is developing access to 2018, an increase of 5% compared with in sustainable mobility by designing and soft mobility options. We encourage 2017. producing soft mobility solutions like the regular use of these solutions by The market for spare parts grew by 4.7% bicycles and scooters. ensuring their longevity on the road compared with 2017. thanks to maintenance and repairs.

Campaign #ElDeporteEsMiMotor, to support new mobilities ENCOURAGING http://bit.ly/ElDeporteEsMiMotor ECO-MOBILITY AMONG In Belgium, several solutions are 2017, an ambitious mobility plan was put several sites, and full reimbursement of OUR TEAMMATES IN FRANCE available to teammates who want to use in place. It includes an online carpooling the cost of rail passes for teammates more sustainable forms of transport. platform that has resulted in 42,000 km who commit to taking the train to work. As a designer of soft mobility solutions, In 2018, a total of 4% of our French After Decathlon employees took part in travelled by carpool in one year, the Decathlon explores various ways to teammates took advantage of this a federal mobility survey conducted in provision of shared electric vehicles at encourage our teammates to reduce solo reimbursement (25 cents for each car commuting and choose alternative kilometre travelled, for a maximum of methods (carpooling, cycling, public €200 per year). This represents a 66% transport, etc.). increase over 2018, for a total of 256,000 One of the main incentives is the km or the equivalent of 6.4 trips around VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY reimbursement for every kilometre the world. By implementing mobility plans for all cycled, with three main aims: promoting Meanwhile, carpooling is becoming sites with more than 100 employees cycling and sport in general, improving the more popular with teammates; two in France, they can be adapted locally, DEFP2018 health and well-being of our teammates, sites in the greater Lille area (Campus resulting in a more efficient and less and reducing the environmental impact and Croix) now offer this option and the expensive eco-mobility approach. of urban mobility. Mountain Store in Sallanches (Savoy) DECATHLON has developed a carpooling partnership with a consortium of companies in the 96 Mont Blanc valley. 97 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

OUR PERFORMANCE INDICATORS & INDICATORS METHODOLOGY CHALLENGES & STRATEGIES

COMPANY FACTS AND FIGURES 2017 2018

Decathlon Turnover € 11 billion € 11.3 billion

Growth in turnover Y/Y-1 +10.8% +4.6% (Note 1)

Number of sports users (in millions) 250 275

Number of Decathlon distribution countries 39 51

Number of urban clusters where Decathlon distributes its products n/a 869

Number of Decathlon retail stores in the world 1,352 1,511

Number of new retail outlets Y/Y-1 +185 +168

Number of branded sports (Decathlon brand products) 58 69

Number of branded sports (Decathlon brand products) 69 85

Quantity of products sold (in billions) 1.204 1.249

Number of production countries:

• with physical presence of Decathlon team 25 24

• with no Decathlon teams physically present 24 23

Number of Decathlon production offices 43 42

Number of suppliers for Decathlon products:

• rank 1 suppliers (finished products and components) 1,090 1,031

• rank 2 suppliers 314 316

Number of teammates responsible for managing 1,943 2,100 and coordinating relations with suppliers

Number of Decathlon-owned production facilities 10 10

2018 DEFP methodological notes Note 1: At constant exchange rates. 99 Note 2: Openings alone, not taking closings into account. CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

CLIMATE CHANGE 2017 2018 PEOPLE & MANAGEMENT

Greenhouse gas emissions in tonnes of C02 equivalent 9,864,034 T CO2 eq. 9,928,944 T CO2 eq. emitted by scope (from 1/01 to 31/12) (Note 3) (Note 3) EMPLOYMENT 2017 2018

• Scope 1 29,656 T CO2 eq. 29,454 T CO2 eq. Total personnel (situation as of 31/12) 82,171 96,002 (Note 5)

• Scope 2 (location-based methodology) 195,845 T CO2 eq. 205,166 T CO2 eq. Workforce by gender (situation as of 31/12):

• % Women 48.5% 46.9% • Scope 2 (location-based methodology) 153,990 T CO2 eq. 153,329 T CO2 eq. • % Men 51.5% 53.1%

• Scope 3 9,680,388 T CO2 eq. 9,746,161 T CO2 eq. Workforce by age (situation as of 31/12):

Intensity of C02 emissions in kg C02 eq. per product sold 8.2 kg CO2 eq. / product sold 7.9 kg CO2 eq. / product sold • % under 20 4.9% 4.6% (Note 6)

• % 20 to 29 63% 63.4% Change in intensity of C02 emissions per product sold 1.2% -2.5% (Note 4) in relation to 2016 (reference year) • % 30 to 39 22.5% 23.1%

• % 40 to 49 7.5% 6.9% Breakdown in % greenhouse gas emissions by lifecycle stage: • % 50 and over 2.1% 2.1%

• Raw materials extraction 19% 19% Workforce by geographic area (situation as of 31/12):

• Product manufacturing 45% 46% • % Europe & Russia 71.9% 67.3%

• % Asia 24.7% 25% • Product transportation 5% 4% • % Africa & Middle East 1.7% 4.1%

• Product use 7% 7% • % Americas 1.6% 3.3%

• % Oceania n/a 0.3% • Construction and operation of sites 5% 4%

Workforce by activity (situation as of 31/12): • Teammate and customers travel 14% 15% • % Retail and services 74.3% 76.7%

• Product end of life 5% 5% • % Logistics 11.2% 11.6%

• % Design / Production 6.2% 5.2% 2018 DEFP methodological notes Note 3: Concerning the calculation method, the 2017 data has been updated to be comparable with the methods used for the 2018 data. • % Support Activities 8.4% 6.5% Scope 2 is calculated according to the recommendations of the GHG Protocol with the "market-based" and "location-based" methods. The total CO2 emissions and CO2 intensity are calculated using the "market-based" method. Important updates have been made regarding the product impact with an update of the impact data in order to use data from the Carbon Base. For example, for the 2018 DEFP methodological notes impact of certain industrial processes such as weaving, our teams now have different impacts depending on the density. Another example is that the impacts for Note 5: This indicator takes into account teammates on permanent contracts and non-permanent contracts and those on internships. certain industrial processes such as "Water repellent treatment", "Mechanical finishing" and "Print" have been added. New evaluations of product impact have also been calculated (69% of the products sold are now evaluated). Note 6: The change in the calculation of two age groups for the 2018 data should be noted: the “under 20” age group does not include teammates < or = age 17 (instead of 18 in 2017) in order to better take into account the minimum legal age in certain countries. The age bracket criterion was also moved to 67 years for 2018 instead of Note 4: We had planned on reducing CO2 emissions intensity by 0.5% between 2016 and 2018 and we ultimately reduced it by 2.5%. The renewable energy strategy has 65 years in 2017 due to the change in retirement age in more and more countries made it possible to significantly reduce CO2 emissions from electricity consumption (scope 2 decreased by 7% in absolute terms between 2016 and 2018).

The decrease in air transport has made it possible to reduce by 6.5% the intensity of CO2 / quantity transported of the impact of transport. Finally, the increase in the VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY use of polyester and cotton from more sustainable sources reduces the CO2 intensity of the product impact by 1.4%. This is a small reduction but the product impact represents 77% of the total CO2 emissions, this small reduction still has a significative impact on the variation in overall intensity. PAY AND PAY TRENDS 2017 2018 It should be noted that total CO2 emissions are increasing despite the reduction in intensity. DEFP2018 Our teams are in the process of defining an objective for 2026 that we would like to have validated by the Science Based Targets initiative. World payroll (€) (from 1/01 to 31/12) 2,026,583,062 2,108,174,115

DECATHLON % of world payroll / Turnover (from 1/01 to 31/12) 18% 18.7% 100 101 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

INFORMATION CONCERNING 2017 2018 EQUALITY OF TREATMENT THE EMPLOYEE SHAREHOLDING SCHEME MEASURES IMPLEMENTED TO PROMOTE GENDER EQUALITY 2017 2018 % of capital owned by shareholding employees (situation as of 31/12) 11.96% 11.96%

% of shareholding employees (situation as of 31/12) 58.2% 52.5% Breakdown of employees by gender (situation as of 31/12):

Number of shareholding employees (situation as of 31/12) 42,505 49,503 Worldwide: Number of countries involved in the employee shareholding scheme 24 37 (Note 7) (situation as of 31/12) • % Women 48.5% 46.9%

2018 DEFP methodological notes • % Men 51.5% 53.1% Note 7: The number of employee shareholders increased significantly compared to 2017 because the number of countries included in the 2018 CSR scope increased substantially compared to last year. Countries taking part in the 2018 employee shareholding scheme: France, Italy, India, Belgium, China, Germany, Hungary, Poland, Portugal, Russia, Spain, Australia, Europe & Russia: Brazil, Bulgaria, Cambodia, Colombia, Croatia, Hong Kong, Japan, Malaysia, Morocco, Mexico, Netherlands, Philippines, Czech Republic, Romania, Singapore, Slovakia, Slovenia, South Korea, Sri Lanka, Taiwan, Thailand, Turkey, United Kingdom, Egypt, Switzerland. Currently, the shareholding scheme is not available in Vietnam and Indonesia. Instead, local teammates receive a bonus corresponding to the shareholding scheme, • % Women 48.7% 48% which is not strictly speaking a shareholding scheme. • % Men 51.3% 52%

ORGANISATION OF WORK 2017 2018 Asia: % of employees on permanent contracts (from 1/01 to 31/12) 72.8% 76.9% (Note 8) • % Women 49% 45.2% % of employees on non-permanent contracts (from 1/01 to 31/12) 27% 21.6% • % Men 51% 54.8% % of employees in other types of contracts (from 1/01 to 31/12) 0.2% 0.4% Africa & Middle East: 2018 DEFP methodological notes Note 8: Representing 73,816 teammates on permanent contracts and 20,706 teammates on non-permanent contracts in 2018 worldwide. • % Women 41.5% 42.2% Percentages fluctuate according to labour laws in the different countries. It should be noted that some countries do not distinguish student and trainee contracts, which are categorised as permanent or non-permanent contracts. This does not allow us to specify the exact number of student contracts, hence the 1.1% difference. • % Men 58.5% 57.8%

Americas: TRAINING 2017 2018 • % Women 40.9% 43.4% % of payroll allocated to training plan in France (from 1/01 to 31/12) 3.98% 5.14% • % Men 59.1% 56.6% Number of teammate instructors who led at least one training during the year 9,554 7,815 (Note 9) (from 1/01 to 31/12) Oceania: Total number of face-to-face training hours (from 1/01 to 31/12) 1,154,105 1,368,118 (Note 10) • % Women n/a 47,8% Total number of e-learning training hours (from 1/01 to 31/12) 240,588 190,887 (Note 11) • % Men n/a 52,2% Number of teammates who have taken at least 1 e-learning course (from 1/01 to 31/12) 57,057 55,591

Number of teammates who have taken training courses leading 95 VAE 24 % of women leaders at the company (situation as of 31/12) 36% of the total of leaders 37.7% of the total of leaders to a qualification in France (from 1/01 to 31/12) (Note 12) Number of women leaders at the company (situation as of 31/12) 4,713 5,906 (Note 13) 2018 DEFP methodological notes Note 9: Taking into account people registered as instructors on the MyProgress tool who taught at least one hour of training during the year.

VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY 2018 DEFP methodological notes Note 10: The number of face-to-face training hours includes training sessions on the MyProgress tool. Note 11: The number of training hours for e-learning takes into account e-learning training hours (theoretical hours) with the MYLO tool. Note 13: Female teammates with hierarchical responsibility for at least 1 person. The number of hours devoted to developing teammates' skills continues to increase. Face-to-face training is progressing strongly thanks to the focus placed on product

DEFP2018 trainings such as "Testing products and understanding, comparing, advising," which is accessible to all (employees with permanent contracts and non-permanent contracts). On the other hand, digital device training (video, e-learning) is down by 50,000 hours, which may be explained by skill leaders’ efforts to simplify content (making it shorter and more concrete). The most significant trend is the stable number of people receiving training. The number of teammates who teach the training courses is decreasing. For this reason, the launch of the “referent” (specialist) role in 2019 is a priority to ensure skills

DECATHLON and sports development locally. Note 12: Training leading to a qualification from Decathlon and its partners who validate the professional experience of their teammates. 102 103 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

In accordance with the action plan implemented in the 2017 Sustainable Development Report, we are including this year three EQUALITY OF TREATMENT additional countries in the collection of data from payroll software in order to improve the representativeness and reliability of the scope. ANTI-DISCRIMINATION (WORLDWIDE) 2017 2018 Russia, India and Hungary joined the eight original countries (France, Spain, Italy, Belgium, China, Germany, Portugal and Poland), which expands the total scope covered to 81.3% of the global workforce. % of seniors (people aged 55 and over) (situation as of 31/12) 0.5% 0.8% (Note 14) The following indicators apply only to these 11 countries:

TEAMMATE RECRUITMENT AND REDUNDANCY (11 COUNTRIES) 2017 2018 DECATHLON TEAM BAROMETER SURVEY FINDINGS (WORLDWIDE) 2017 2018 Number of employees hired on permanent contracts (from 1/01 to 31/12) 12,674 15,097 % of employees who participated in the Decathlon Team Barometer (DTMB) survey 87% 82% (Note 15) Number of employees hired on non-permanent contracts (from 1/01 to 31/12) 55,536 55,703 Number of employees who participated in DTMB survey 60,028 61,952 Total number of employees hired on permanent and non-permanent contracts (from 1/01 to 31/12) 68,210 70,800

% of people who responded " Yes, absolutely" or "Yes, rather" to the question: Number of resignations (permanent contracts) (from 1/01 to 31/12) 10,375 10,870

• I create human, environmental and economic value for the company n/a 92% (Note 16) Number of redundancies (permanent contracts) (from 1/01 to 31/12) 881 1,112

• My pay is consistent with my responsibilities 59% 59% Number of retirements (permanent contracts) (from 1/01 to 31/12) 30 25

Other departures, permanent contracts (from 1/01 to 31/12) 457 2,059 (Note 17) • I am supported in my personal development 81% 81%

Total number of departures on permanent contracts (from 1/01 to 31/12) 11,743 14,066 • I am supported in my skills 85% 85%

Rate of turnover for permanent personnel (from 1/01 to 31/12): • I am supported with my performance 83% 83%

• France 22.1% 32.1% (Note 18) • I can express my thoughts and people listen 91% 91% • Sapin 21.1% 22.9% • I am happy to come to work every morning to advance our goals and my goals 91% 89% • Italy 6% 6% • I am proud and happy to work for Decathlon 93% 93% • Germany 39.5% 28.3% • I trust my manager and my manager trusts me 89% 89% • Belgium 15.1% 15.6%

• I feel safe in my work environment 94% 93% • Portugal n/a 14.9%

• Responsibility helps me grow and I take decisions as closely as possible to results 89% 86% • Hungary n/a 32%

• I regularly practise my sport 80% 79% • Poland 28.4% 20.5%

• We play sport and celebrate our victories together 74% 71% • China 46.5% 42.2%

VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY • India n/a n/a 2018 DEFP methodological notes Note 14: i.e., 756 teammates aged 55 and over in 2018. • Russia n/a 30.7% DEFP2018 Note 15: Results from the Decathlon Team Barometer survey carried out among Decathlon teammates in September 2018, for a total of 61,952 respondents (the 2017 survey was conducted in September 2017 with 60,028 teammates responding). Note 16: New question included in 2018 in the Decathlon Team Barometer survey. 2018 DEFP methodological notes DECATHLON Note 17: The category "Other departures" takes into account termination by agreement, expiration of probationary periods, etc. Note 18: The turnover indicator is calculated on the basis of an average number of employees on permanent contracts. 104 The turnover rate may also be explained by the strong seasonality of our activities and our readiness to allow students to finance their studies by working at Decathlon. 105 It should be noted that data for India was not included in this report because the information was not received in time. CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

ORGANISING WORKING TIME (11 COUNTRIES) 2017 2018 LIST OF AGREEMENTS SIGNED IN 2018 IN FRANCE

AGREEMENTS RELATING TO COMPANY OR AREA CONCERNED TITLE OF AGREEMENT % of employees on permanent contracts working full-time (situation as of 31/12) 56.3% 61.2% (Note 19) COMPENSATION AND SOCIAL BENEFITS

% of employees on permanent contracts working part-time (situation as of 31/12) 43.7% 38.9% • France DECATHLON SA EMPLOYEE INCENTIVE AGREEMENT AMENDMENT TO THE COLLECTIVE • France DECATHLON SA % of employees on non-permanent contracts working full time (situation as of 31/12) 14% 18.1% AGREEMENT NAO* PREMIUM RATE AGREEMENTS GOVERNING % of employees on non-permanent contracts working part-time (situation as of 31/12) 86% 81.9% ORGANISATION AND WORKING HOURS

• France DECATHLON SAS ANNUALISATION AGREEMENT

ABSENTEEISM (11 COUNTRIES) 2017 2018 AGREEMENTS RELATING TO DIVERSITY

Absenteeism rate for employees on permanent contracts (from 1/01 to 31/12): • France DECATHLON SA PROFESSIONAL EQUALITY

• France 3.2% 4.4% (Note 20) AGREEMENTS RELATING TO SOCIAL DIALOGUE

• Spain 3% 2.1% • France DECATHLON LOGISTICS PRE-ELECTORAL AGREEMENT PROTOCOL CORPORATE AGREEMENT CONCERNING THE • Italy 5.9% 3.6% • France DECATHLON LOGISTICS ESTABLISHMENT OF A SOCIAL AND ECONOMIC COMMITTEE FOR LABOUR UNION RIGHTS • Germany n/a n/a *Annual mandatory negotiations (NAO) are obligatory in France. They focus on wages, organisation of work and of working hours, etc.

• Belgium 4.8% 4.6%

• Portugal n/a n/a WORKPLACE ACCIDENTS (11 COUNTRIES) 2017 2018

• Hungary n/a 4.8% Number of accidents at work leading to stoppage (from 1/01 to 31/12):

• Poland n/a 6.2% • France 1,112 991 (Note 22)

• China n/a n/a • Spain 467 441

• Italy 173 51 • India n/a n/a • Germany 10 25 • Russia n/a n/a • Belgium 146 147 2018 DEFP methodological notes Note 19: Out of 57,662 on permanent contracts and 18,945 on non-permanent contracts in the 11 countries considered for these indicators in 2018. • Portugal 85 82 Note 20: This corresponds to the number of hours not worked because of absenteeism / number of hours worked in theory. The absenteeism indicator is not tracked by all the countries as part of their scope, hence the lack of data. • Hungary n/a 56

• Poland 63 61 ORGANISING SOCIAL DIALOGUE (11 COUNTRIES) 2017 2018 • China n/a 35

VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY Number of agreements signed during the year 2018 France: 19 8 (Note 21) • India n/a n/a

Number of agreements signed during the year 2018 as regards occupational health & safety 3 1

DEFP2018 • Russia n/a n/a

2018 DEFP methodological notes 2018 DEFP methodological notes

DECATHLON Note 21: This number only applies to agreements signed in France and in Poland in 2018. Note 22: A more detailed definition of the “accident at work” indicator is required, along with a better understanding of it by local teams, especially outside the EU. Note that some countries do not collect this data. 106 107 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

EQUALITY OF TREATMENT (11 COUNTRIES) PRODUCTS & SERVICES MEASURES IMPLEMENTED TO PROMOTE THE EMPLOYMENT 2017 2018 AND INTEGRATION OF PEOPLE WITH DISABILITIES (11 COUNTRIES) CONSUMPTION OF RAW MATERIALS 2017 2018 AND MEASURES TO USE THEM MORE EFFICIENTLY Rate of people with recognised disabilities (situation as of 31/12): % of product engineers having conducted at least 1 environmental assessment that has been verified and 59.4% 53.8% (Note 26) • France 3.9% 3.4% (Note 23) validated by an eco-design leader (situation as of 31/12)

• Spain n/a 2.5% A/W season 2017: 61.7% A/W season 2018: 67.2% (i.e., 2,670 products (i.e., 3,453 products out of 4,329 products designed) out of 5,138 products designed) • Italy 0.1% 3.5% % of Decathlon products having undergone an environmental assessment (from 1/01 to 31/12) S/S season 2019: 69.5% S/S season 2018: 54.2% (i.e., 2,505 products (i.e.,1,786 products • Germany 0.6% 0.8% out of 3,602 products designed) out of 3,294 products designed) (Note 27) • Belgium n/a n/a S/S season 2018: 26.3% S/S season 2017: 5% (i.e., 758 products (i.e., 201 products out of 2,880 products designed) out of 3,998 products designed) • Portugal n/a 0.1% % of Decathlon products with ABCDE environmental (Note 27) rating available on the Internet or in stores (from 1/01 to 31/12) • Hungary n/a 0.5% A/W season 2017: 16.5% A/W season 2018: 30.1% (i.e., 714 products (i.e., 1,545 products out of 4,329 products designed) out of 5,138 products designed) • Poland 0.7% 0.9% % of cotton used for Decathlon products that is derived 55.2% 76% • China n/a n/a from sustainable sources (from 1/01 to 31/12):

• % of BCI cotton 51% 69% (Note 28) • India n/a n/a

• % of organically grown cotton 4% 6% • Russia n/a n/a

• % of recycled cotton 0.2% 1% 2018 DEFP methodological notes Note 23: Some data was not collected in 2018 due to a lack of national legislation, limits on the right to obtain this information, etc. Tonnage of cotton used for Decathlon products that is 21,167 21,787 derived from sustainable sources (from 1/01 to 31/12):

PARTNERSHIPS AND SPONSORSHIPS 2017 2018 • % Tonnage of BCI cotton 19,394 tonnes 19,814 tonnes

Number of projects validated by the Decathlon Foundation (from 1/01 to 31/12) 33 38 • % Tonnage of organically grown cotton 1, 685 tonnes 1,720 tonnes

Number of beneficiaries of Decathlon Foundation projects (from 1/01 to 31/12) 21,463 65,000 (Note 24) • % Tonnage of recycled cotton 88 tonnes 253 tonnes

Number of countries concerned by Decathlon Foundation projects (from 1/01 to 31/12) 6 8 (Note 25)

2018 DEFP methodological notes 2018 DEFP methodological notes Note 26: Representing 227 teammates out of the 442 Product Engineers in 2018.

VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY Note 24: A beneficiary is someone in a vulnerable situation or with a disability and who benefits directly from the work done by our Foundation projects, i.e., playing sport, Note 27: These indicators focus on Decathlon products concerned by the following manufacturing processes: clothing, heavy stitching (textile-based materials, e.g. having access to facilities and sports equipment, etc. These actions mean that these beneficiaries are supported to improve their social integration and employability. backpacks, tents, sleeping bags, balls, etc.) and footwear. Decathlon products made using plastic, composite, metal, optic, electronic and agrochemical manufacturing processes have again been excluded from the scope in 2018. Note 25: In 2018, the Foundation validated more than 38 projects and supported 65,000 beneficiaries. It validated 25 international projects (Italy, Spain, India, Brazil, In 2018, this indicator referred to France and will be gradually extended in terms of the scope covered over the coming years.

DEFP2018 Taiwan, Slovenia and the Philippines). The objectives in 2018 were to revitalise the Foundation in France, and this made it possible to go from 6 French projects out of a total of 33 in 2017 to 13 French The implementation of a specific focus on initiatives concerning textiles made it possible to achieve these results in 2018. Eco-design teams have also benefited from projects in 2018. the improvement in the quality of design information, even if there is still room for improvement. Note: the target for the ABCDE environmental indicator is 60% of products (textiles, heavy stitching and footwear) to have environmental ratings by 2019.

DECATHLON Note 28: This indicator is calculated using the tonnage of organic cotton, BCI cotton and recycled cotton. The good 2018 results can be explained by the significant increase in the use of BCI cotton compared with conventional cotton, with the stabilisation of organic cotton and promising initial growth in recycled thread. The 2020 target set for this indicator is for all cotton used for Decathlon products to be derived from sustainable resources. 108 109 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

CONSUMPTION OF RAW MATERIALS 2017 2018 CHEMICALS MANAGEMENT 2017 2018 AND MEASURES TO USE THEM MORE EFFICIENTLY

% of polyester used for Decathlon products that is % of employees having received chemical compliance training 9.4% 17.2% (Note 29) 22% 20.9% (Note 36) derived from sustainable sources (from 1/01 to 31/12) (from 1/01 to 31/12) Tonnage of polyester used for Decathlon products that is 6,300 tonnes 11,374 tonnes % of suppliers having signed the latest version of Decathlon’s RSL derived from sustainable sources (from 1/01 to 31/12) 83.3% 71% (Note 37) specifications concerning chemical substances (from 1/01 to 31/12) % of materials used for packaging that is 84.4% 85.5% (Note 30) derived from sustainable sources (from 1/01 to 31/12) % of test reports that comply with Decathlon's toxicology standards 97% 89.7% (Note 38) % of paper pulp used in packaging that is FSC or PEFC certified (from 1/01 to 31/12) n/a 5.6% (Note 31) (from 1/01 to 31/12) Number of suppliers having received training in production 36 69 (Note 39) on chemical substances management (from 1/01 to 31/12) 2018 DEFP methodological notes Note 29: This indicator was calculated using the tonnage of polyester thread from the following sources: dope-dyed "traditional" virgin polyester, recycled polyester and Average time to make first contact after user feedback dope-dyed recycled polyester. 1.05 days 1,1 days (Note 40) The 2021 target set for this indicator is for all polyester thread used for Decathlon products to be derived from sustainable resources. The target for 2018 was 17% and (from 1/01 to 31/12) it has been achieved: the main advances concern the synthetic mesh (recycled polyester) and woven (dope-dyed polyester) processes. Note 30: The scope includes transport packaging and sales packaging. Excluded are e-commerce packaging, linearisable containers, shopping bags and gift wrappings. 30 days on average The sustainable source currently being considered is paper pulp. The 2018 tonnage of materials used for packaging that is derived from sustainable sources amounts Time to react to user queries concerning chemical substances (questions + adverse 54 days (Note 41) to 93,585 tonnes. As the measurement methodology for this indicator is based on numerous extrapolations and assumptions, the 2017-2018 variation in the figures or adverse skin reactions (from 1/01 to 31/12) should be analysed in relative terms. skin reactions) A target has been set for this indicator: 95% of materials used for packaging from sustainable sources by 2025. Note 31: The scope includes transport packaging and sales packaging. Excluded are e-commerce packaging, linearisable containers, shopping bags and gift wrappings. A target has been set for this indicator: 100% of the pulp used in packaging certified FSC or PEFC by 2025. The current strategy for paper and cardboard from 2018 DEFP methodological notes sustainably managed forests was adopted more recently, which explains the current rate of certified material. Note 36: This indicator concerns jobs in design and production at Decathlon, i.e., 1,407 teammates. Good results were obtained this year with many training sessions held in France or in other countries. The internal network of "Toxicology" Relays has become autonomous and this can be seen in the number of training courses given. There was a slight decrease in the % of teammates trained compared to 2017 (20.9% vs 22%). For the past five years we have been training between 200 and 350 people per year, thus the great majority of this group has been trained. Note 37: In 2018, the new K version of the RSL (Restricted Substances List) was released. Suppliers had to review, understand and verify that they could meet MEASURES TAKEN TO ENHANCE CONSUMER HEALTH these requirements before signing this new version of Decathlon’s RSL. The 2018 signature rate may therefore be explained by the time it took to communicate the 2017 2018 AND SAFETY / USER SATISFACTION information to ensure it was integrated throughout the supply chain, including to chemical suppliers. Note 38: Concerning the 2018 result of the "% of test reports that comply with Decathlon's toxicology standards” indicator, a new calculation method has been implemented, based exclusively on the Starlims tool extract. This figure is therefore not comparable to that of previous years. % of sports users delighted with Decathlon products 60% 65% (Note 32) The Starlims tool now in use makes it possible to more reliably extract the number of non-compliant reports. Note that 2018 is a year of transition between 2 tools; up (from 1/01 to 31/12) to 30% of requests go outside Starlims for some laboratories and are not included in these figures. From now on, Decathlon's Chemical Risks teams wish to use only the Starlims tool. Number of returns for quality issues per million This indicator covers 5,266 Decathlon products tested for toxicological compliance in 2018 (7,800 Decathlon products tested in 2017). Concerning the number of 1,158 1,159 (Note 33) Decathlon products sold (from 1/01 to 31/12) Decathlon products tested for toxicological compliance, the opening of our distribution activity in the United States as well as the company's strong commitment to chemical risk management have resulted in an increase in the number of chemical approvals of our products in 2017. The 2018 figures were closer to those of 2016. Number of corrective quality actions for Decathlon and other Note 39: Training suppliers about chemical substances management is one of the strategic priorities for Decathlon’s Chemical Risk team. As a result, 12 in-country 366 325 instructors were approved to provide this training, which will move the countries toward autonomy and make it possible to roll out this strategy much more quickly in international brand products (from 1/01 to 31/12) each region in 2019. The 2018 results are good with 69 instructors trained. Note 40: The average time to make first contact with customers remained stable compared with 2017 (1.1 days in 2018 vs 1.05 days in 2017). The 2017 target of less Number of Decathlon and other international brand products 2.8 million products 2.9 million products than two days has been achieved and we would like to maintain these results for 2019. concerned by these corrective quality actions (from 1/01 to 31/12) Note 41: There was a drop in performance for the indicator measuring how long it takes to respond to customers (54 days in 2018 vs 30 days in 2017). European regulations require us to answer questions about the chemical composition of products within 45 days, which we achieved in 2018 (31 days). However, this has not Number of defective products sent to design teams been done in cases of skin reactions. Several factors may explain this: accounting of cases where customers have never responded to our reminders or have never sent 43,673 41,464 (Note 34) for root cause analysis (from 1/01 to 31/12) back their product samples (i.e., half of cases), in addition to less stability in our internal organisation with a loss of knowledge of the process. For 2019, our goal is to reduce the number of days to 45 or less. NPS score on the quality of Decathlon product recommendations 36 40 (Note 35) by Decathlon employees (from 1/01 to 31/12)

2018 DEFP methodological notes Note 32: The choice of this indicator was revised for the 2018 DEFP. In 2018, work was done to bring the financial teams closer together to harmonise approaches and better take into account the weight of the different countries in the calculation of this global indicator. For each country, the “delighted user” rate is weighted by the estimated number of sports users. This indicator concerns the % of delighted sports users who gave a score of 5/5 on the product reviews score, thus targeting 65% of delighted sports users in 2019. This methodological alignment allows greater clarity and simplicity for the teams. The 2017 data was recalculated as a result.

VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY The 2018 result relates to 967,928 reviews collected on Decathlon products in 2018 (excluding other international brand products). The indicator covered 728,786 reviews collected in 2017 (+33%). These are the "pushed" reviews of our customers on Decathlon products. (Pushed reviews = reviews submitted following a customer solicitation).

DEFP2018 Note 33: The RPM indicator does not take into account returned items bought online, customer recalls and live fishing baits. We stabilise our RPM thanks to the monitoring work of our quality team. Note: the target for this indicator is 1,150 RPM. Note 34: This indicator concerns quantities of defective products or components shipped to the Decathlon brands design teams or the teammates in our production offices to analyse the root causes.

DECATHLON Note 35: This indicator was included in the DEFP for the first time in 2018. The Net Promoter Score (NPS) measures the recommendations of the company's team members (all positions/departments combined) for Decathlon products. The current scope includes employees in France, based on a survey of 10,427 Decathlon teammates who responded in 2018. The NPS 2018 score for all Decathlon brands 110 was 40 (52% promoters - 12% detractors). Our ambition is to have four times more enthusiasts than critics for all Decathlon brands and all product categories by 2020. 111 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

RESPONSIBILITY IN PRODUCTION IMPORTANCE OF SUBCONTRACTORS 2017 2018 Breakdown of volumes purchased by Decathlon by production area (from 1/01 to 31/12): SUPPLIERS AND SUBCONTRACTORS • North Asia 49.8% 47.3% (Note 46) IMPORTANCE OF SUBCONTRACTORS 2017 2018 • Europe 16.2% 18.1% • South-East Asia 16.9% 17.5% Number of production countries (situation as of 31/12): • South-West Asia 14.3% 14.3% • Number of production countries with physical presence of Decathlon teams 25 24 (Note 42) • Africa 2.5% 2.5% • Americas 0.1% 0% • Number of production countries with no Decathlon teams physically present 24 23 (Note 43) • CIS (Commonwealth of Independent States) 0.3% 0.3%

Number of Decathlon production offices (situation as of 31/12) 43 42 (Note 44) % of purchase amount realised by our industrial partners (from 1/01 to 31/12) 28% 28% (Note 47) Number of teammates responsible for managing and coordinating relations with 1,943 2,100 suppliers (situation as of 31/12) Breakdown of volumes purchased by Decathlon by production process (from 1/01 to 31/12): Number of suppliers for Decathlon products (situation as of 31/12) • Nutrition products (sport supplements and food) 1% 1.1% • Chemical and cosmetic products 0.4% 0.4% • Rank 1 suppliers (finished products and components) 1,090 1,031 (Note 45) • Electronic products 1.9% 1.5% • Rank 2 suppliers 314 316 (Note 45) • Footwear products 15% 14.5% • Glove products 1.4% 1.5% Number of Decathlon-owned production facilities (situation as of 31/12) 10 10 • Heavy stitching products (tents, backpacks, sleeping bags, balls, etc) 10.4% 10.5% Number of "partner" suppliers (situation as of 31/12) 35 45 • Pyrotechnic products (Solognac hunting equipment) 0.2% 0.2% • Bonded/inflatable products (air beds, rings, armbands, etc) 1.5% 1.8% Average length of service for suppliers (top 100 suppliers in terms of volumes purchased by Decathlon) (situation as of 31/12) • Helmet products 1% 1% • Optical products (sunglasses, swimming goggles, ski goggles, diving masks, etc) 1.6% 1.6% • < 1 year 1% 1% • Bike/cycle products 11.3% 11.8% • 1 – 3 years 23% 5% • Plastic and composite products 7% 6.8% • 3 – 5 years 16% 21% • Wedze Composites products (ski equipment) 0.2% 0.3% • Metal/metallic products 6.1% 6.2% • 5 – 10 years 39% 36% (scooters, fitness products, basketball nets, football nets, etc) • 10 – 20 years 17% 33% • Simond products (climbing equipment) 0.1% 0.1% • Textile products • > 20 years 4% 4% 40.9% 40.7% (natural fibres, synthetic fabrics, woven fabrics, yarn to finished products) • Average 9 years 10 years % of turnover resulting from Decathlon products manufactured locally (from 1/01 to 31/12): 2018 DEFP methodological notes Note 42: Production country with a team: the country has a Decathlon production office. • China 93% 91.5% Bangladesh, Brazil, Cambodia, China, Egypt, Ethiopia, France, India, Indonesia, Italy, Mexico, Morocco, Pakistan, Poland, Portugal, Romania, Russia, Sri Lanka, Taiwan, • Europe 20% 22.7% Thailand, Tunisia, Turkey, Ukraine and Vietnam. Note 43: Production country without a team: production country where suppliers are managed by Decathlon teams from another country; the country has no Decathlon • Russia 10% 9.9% office. Austria, Albania, Belgium, Bosnia, Bulgaria, Croatia, Czech Republic, Finland, Georgia, Germany, Hungary, Japan, Lithuania, Madagascar, Malaysia, Myanmar, Serbia, Slovakia, Slovenia, Spain, Switzerland, the Netherlands, United Kingdom. • India 45% 40.4% Note 44: List of Decathlon production offices: DP Bangladesh (DP Dhaka, DP Chittagong), DP Brazil, DP Cambodia, DP CIS (Commonwealth of Independent States), • Brazil n/a n/a (Note 48) DP China (DP Guangzhou, DP Nanjing, DP Ningbo, DP Qingdao, DP Shanghai, DP Shenzhen, DP Suzhou, DP Tianjin, DP Wuhan, DP Xiamen), DP Egypt, DP Ethiopia, DP VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY France, DP India (DP Chennai, DP Coimbatore, DP Mysuru, DP Surat, DP Kanpur, DP Delhi, DP Ludhiana), DP Indonesia, DP Italy (DP Desio, DP Padova), DP Mexico, DP 2018 DEFP methodological notes Morocco, DP Pakistan, DP Poland, DP Portugal, DP Romania, DP Singapore, DP Sri Lanka, DP Taiwan, DP Thailand, DP Tunisia, DP Turkey, DP Vietnam (DP Ho Chi Minh, DP Hanoi). Note 46: Concerning the breakdown of our purchases by production area:

DEFP2018 Note 45: Concerning the number of suppliers in 2018, we continued our strategy of consolidating our panel of suppliers. - North Asia: 5% decrease in favour of South-East Asia, South-West Asia and Europe; -Rank 1 supplier: Supplier who has signed an agreement with a Decathlon group company to produce or assemble finished or semi-finished products (via a manufacturing - Europe: strong increase due to our desire to significantly reduce the use of air transport. contract) or to supply raw materials or components (via a purchasing contract), receiving purchase orders and invoicing said company directly. Note 47: Target of 80% of the quantities of Decathlon products made at 150 industrial partners by 2026. -Rank 2 supplier: Supplier contributing to Decathlon’s product value chain, with direct commercial relations with a rank 1 supplier, with whom they organise the Note 48: Concerning the share of locally manufactured products: DECATHLON management of purchase orders and invoicing. The Decathlon group retains the option to get involved in choosing or approving this rank 2 supplier, while not intervening - China: slight decrease, slightly more supplies from North Vietnam, Cambodia and Bangladesh; in the commercial and legal relationship between these rank 1 and rank 2 suppliers. - Europe: significant increase due to our desire to significantly reduce the use of air transport and the need to obtain supplies on short notice for seasonal products; 112 - It should be noted that purchases made by Brazil in Brazil no longer go back into the IT systems of our purchasing teams. 113 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

TAKING INTO ACCOUNT SUPPLIERS’ AND SUBCONTRACTORS’ CSR TAKING INTO ACCOUNT SUPPLIERS’ AND SUBCONTRACTORS’ CSR 2017 2018 2017 2018 AS PART OF THE RELATIONS MANAGEMENT PROCESS AS PART OF THE RELATIONS MANAGEMENT PROCESS

% of the acquisition of the "Sustainable Development in Production" skills Number of production sites concerned by environmental assessments 57% 62% (Note 49) (situation as of 31/12) (situation as of 31/12):

• Number of rank 1 production sites concerned 201 180 (Note 54) Number of production sites concerned by HRP assessments (situation as of 31/12):

• Number of rank 2 production sites concerned 93 48 (Note 54) • Number of rank 1 production sites concerned 1,022 1,018 (Note 50)

• Number of rank 2 production sites concerned 314 338 Number of environmental assessments conducted (from 1/01 to 31/12) 115 93

Number of environmental assessments conducted by internal assessors 0 24 Number of HRP assessments conducted (from 1/01 to 31/12) 1,018 1,157 (from 1/01 to 31/12)

FOCUS ON ENVIRONMENTAL RESULTS (SITUATION AS OF 31/12): 2017 2018 % of HRP assessments conducted internally (from 1/01 to 31/12) 66% 57% (Note 51)

% of production sites rated A, B or C following environmental assessment: FOCUS ON HRP RESULTS: 2017 2018

• % of rank 1 production sites rated A, B or C 26.8% 69.4% (Note 55) % of production sites rated A, B or C following HRP assessment:

• % of rank 2 production sites rated A, B or C 12.9% 68.8% (Note 55) • % of rank 1 production sites rated A, B or C 69% 86% (Note 52)

• % of rank 2 production sites rated A, B or C 49% 66% (Note 52) Results of the environmental assessments of partners and company-owned production sites (situation as of 31/12):

Results of HRP evaluations of partners and company-owned production sites: 47.6% 93.5% A: n/a A: 6.5% • % of company-owned production sites rated A, B or C 80% 90% B: n/a B: 6.5% • % of partner supplier production sites rated A, B or C C: n/a C: 80.6% 21 production sites 29 production sites 96% of partner suppliers of partner suppliers 88% A: 2% rated A, B or C rated A, B or C A: 2% B: 44% B: 45% • % of partner production sites rated A, B or C C: 50% C: 41% Number of production sites monitoring their C02 performances monthly 100 production sites n/a 96 (Note 56) 56 production sites of partner suppliers (situation as of 31/12): of partner suppliers rated A, B or C rated A, B or C (Note 53) 2018 DEFP methodological notes Note 54: The scope of impacted sites has become more precise. In 2017, these were sites using industrial processes: dyeing, tanning, printing, washing, metal surface treatment and metal painting. 2018 DEFP methodological notes In 2018, the impacted sites were those that release more than 50 m3 per day of industrial water undergoing treatment. This clearer definition explains the decrease in Note 49: Corresponds to % autonomy on the Sustainable Development in Production skills. In 2017 a new Skill Matrix tool was rolled out, which was intended to manage the number of impacted sites. teammate skill sets, not training. After a little over a year of existence, the skill matrix is now integrated into the local competency management and monitoring is Note 55: The objective set for this indicator is to reach 90% of rank 1 and rank 2 production sites rated A, B or C by 31/12/2026. ensured by SD in Production managers. In 2018, the priority objective was to: Note 50: The 1,018 rank 1 sites correspond to 820 suppliers in our Supplier Data Base (SDB) tool as of 3/01/2019. - provide a more precise definition of impacted sites, which has resulted in a reduction in the number of sites: 21 fewer rank 1 production sites and 55 fewer rank 2 A control was set up in January 2018. It consists in periodically cross-referencing the list provided by the purchasing department of suppliers with turnover affected by production sites. This automatically leads to an improvement in the ABC % performance; HRP (Human Responsibility in Production). Carried out twice a year, this control highlights suppliers who do not appear in SDB extractions, which may be explained by - shed light on the overall performance of the 228 impacted sites (audit all the impacted sites); different technical reasons. A total of 84.4% of the rank 1 production sites and 81.3% of the rank 2 production sites were audited, making it possible to address this priority. As of 22/02/2019 there were still 152 suppliers for whom we did not have a precise explanation or for whom the corrections had not been made. VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY - train internal auditors to better support non-performing production sites (E & D), in particular sites audited in 2017 and rated E or D. This has led to a significant The 338 rank 2 production sites correspond to 316 suppliers in the SDB tool. improvement in performance. Note 51: With regard to the % of evaluations carried out internally, this rate has decreased as the total number of audits has increased. The number of audits carried Note 56: New indicator included in the 2018 DEFP following the implementation of the project to support suppliers for the measurement and reduction of their CO2 out by our internal teams has remained constant. emissions. DEFP2018 Note 52: Concerning the % of HRP ABC, a target was set for the ABC % of rank 1 suppliers to reach 80% by the end of 2018. The improvement in the % ABC of rank 1, including company-owned sites and partners, observed in 2018 (from 69 to 86%) can be explained primarily by: - stronger coordination at headquarters by the purchasing teams and at local level by the SD managers with regular follow-ups with the production teams; - a taskforce of Sustainable Development in Production managers intervening in instances of non-compliance with sustainability criteria. DECATHLON Note 53: For 2018, the scope of the % ABC partners indicator covered 105 production sites belonging to 45 Decathlon partner suppliers. 114 115 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

STORES & TRANSPORT POLLUTION AND WASTE MANAGEMENT MEASURES FOR PREVENTING, RECYCLING AND ELIMINATING WASTE 2017 2018 GENERAL ENVIRONMENTAL POLICY Quantity of waste generated by our sites (Decathlon stores, brand sites 81,019 tonnes 88,001 tonnes COMPANY ORGANISATION FOR HANDLING and company-owned warehouses) (from 1/01 to 31/12) (Note 59) ENVIRONMENTAL ISSUES AND ANY REQUIRED ENVIRONMENTAL 2017 2018 ASSESSMENT OR CERTIFICATION PROCEDURES 29,396 tonnes (36%) • Sorted paper and cardboard 24,730 tonnes (28%) (Note 60) Number of Decathlon stores with environmental certification (situation as of 31/12) 78 83 (Note 57) • Sorted packaging 5,283 tonnes (6%) 4,174 tonnes (5%) Number of Decathlon stores opened over the year that have been awarded 14 4 an environmental certification (from 1/01 to 31/12) • Sorted plastics n/a 1,369 tonnes (2%)

% of store sales area with environmental certification (m2) (situation as of 31/12) 19% 20% • Other materials (wood, metals, textiles, etc.) 3,177 tonnes (4%) 1,908 tonnes (2%) Number of Decathlon warehouses with environmental certification 8 8 (situation as of 31/12) • Mixed waste 54,811 tonnes (62%) 44,172 tonnes (55%)

2018 DEFP methodological notes Note 57: According to the LEED, BREEAM, HQE and DGNB recognised standards of international certifications. Waste sorting rates by activity (from 1/01 to 31/12):

39% THE GEOGRAPHICAL, ECONOMIC AND SOCIAL IMPACT (45% at a 2017 2017 2018 • Sorting rates in stores 39% OF THE COMPANY’S BUSINESS ACTIVITY comparable scope) (Note 61) Total number of sporting events organised in France for customers and users 3,438 5,632 (Note 58) 66% (from 1/01 to 31/12) • Sorting rates in warehouses 62% (71% at a 2017 comparable scope)

Number of stores in France concerned by these sporting events (from 1/01 to 31/12) 119 226 2018 DEFP methodological notes Note 59: Total waste volumes generated by our sites by type: sorted paper/cardboard, sorted plastic, unsorted mixed ordinary manufacturing waste, other waste (sorted metal, sorted organic waste, sorted wood, sorted textiles, sorted glass, sorted electrical and electronic devices, sorted hazardous waste, sorted batteries, sorted bulbs, 180 sorted packaging and sorted rubber).The indicator does not include: sites that have been in operation for less than 12 months, production offices, company-owned (130 Eco-Rando days production factories, and countries that had fewer than five sites in 2018. Number of events related to Sustainable Development organised by French stores Integration of 9 new countries for which data was missing in 2017. These are mainly countries where waste is not sorted. The representativeness of indicators has n/a + 50 World Clean Up (from 1/01 to 31/12) improved. Day events organised Concerning the indicator “total quantity of waste”, all countries are included. in France) Concerning the stores and warehouses sorting rates, only the countries that have shared data is included. The countries that are not included are Russia, Bulgaria, Croatia, Brazil and Slovakia. Note 60: The amount of mixed waste has decreased, as the ratio used to estimate data for countries without waste management has been updated, based on actual data for 2017. This ratio has been revised downwards. 2018 DEFP methodological notes Note 61: The proportion of sorted waste is stable for stores because the scope is broader with the integration of new countries for we had no data in 2017. These are Note 58: We had a good year in 2018, with French stores becoming increasingly involved in their sports initiatives. In 2018, 90% of the stores were active and held over mainly countries where waste is not sorted. For this reason, the improvement in the sorting rate is more significant at comparable scope (+6 points). 60% more sports activities throughout France. If we focus on Vitalsport, we also find a significant increase in the number of organising stores (114 stores in 2018 vs The share of waste increased by 4 points for warehouses despite the broader scope, which is less significant than for stores. The improvement in the sorting rate is 100 in 2017). The organising teams mobilised more than 2,300 partner clubs and welcomed more than 560,000 visitors over the various event weekends. more significant (+9 points) at comparable scope. VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY DEFP2018 DECATHLON

116 117 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

SUSTAINABLE USE OF RESOURCES TRANSPORT AND LOGISTICS 2017 2018

ENERGY CONSUMPTION, MEASURES UNDERTAKEN TO IMPROVE 2017 2018 ENERGY EFFICIENCY AND THE USE OF RENEWABLE ENERGY Distribution in % of volumes of transport products by means of transport worldwide (from 1/01 to 31/12): Overall consumption by energy type at our sites (Decathlon stores, brand sites and company-owned warehouses) (from 1/01 to 31/12): • % Air 6.2% 3.2% (Note 65)

• Electricity consumption, in kWh 547,329,326 559,590,555 • % Rail 2.5% 2.1%

• Gas consumption in kWh 63,406,341 62,379,964 • % Maritime 84.5% 84.7% (Note 65)

• Overall energy consumption in kWh 610,735,667 621,970,519 (Note 62) • % Road 6.8% 10%

Energy consumption in kWh per m2 in the stores (from 1/01 to 31/12) 127.2 kWh/m² 118 kWh/m² CO2 emissions by means of transport worldwide (from 1/01 to 31/12):

Energy consumption in kWh per m2 in the warehouses (from 1/01 to 31/12) 74 kWh/m² 58.1 kWh/m² • C02 emissions by air 182,026,125 71,137,392

Electricity consumption in kWh by stores and warehouses from renewable sources 220,896,638 311,069,797 (from 1/01 to 31/12) • C02 emissions by rail 3,706,841 2,369,648

% of electricity consumed by stores and warehouses from renewable sources 40.4% 55.6% (Note 63) (from 1/01 to 31/12) • C02 emissions by maritime 110,248,532 124,865,682

2018 DEFP methodological notes Note 62: The indicator does not take into account sites that have been operating for less than 12 months, production offices, and company-owned production plants. • C02 emissions by road 3,266,611 6,626,488 To be noted that despite a 15% increase in the number of sites integrated included in indicator monitoring in 2018, the total energy consumption increased by only around 1-2%. This shows that energy consumption kWh per m2 was reduced with a stabilisation of energy consumption of sites thanks to LED equipment, among other reasons. Note 63: The 2017 data has been restated from the 2017 SD Report to be comparable with the 2018 data. The indicator takes into account Decathlon sites (stores, C02 impact of transporting Decathlon products for delivery in Europe 385 g CO2 eq./article 311 g CO2 eq./article warehouses) that produce renewable energy for self-consumption and also those that now buy electricity from renewable sources for their consumption (solar panels, (from 1/01 to 31/12) wind turbines, hydraulic dams). A verification in 2018 by an external third party, Schneider Electric, was carried out for several countries to validate the percentages of electricity consumption from renewable sources by the Decathlon sites: for Spain (100%), Belgium (100%), the United Kingdom (100%), France (99.57%), Italy (89.18%) and the Netherlands (82.42%). In 2018, a target of 100% electricity from renewable sources was set for 2026. • From production countries to Europe 259 172.24

• From key import warehouses to distribution platforms 76.7 82.7 LAND USE 2017 2018

1,358 articles/m² Number of articles shipped per m2 in Europe (from 1/01 to 31/12) 1,413 articles/m² • From distribution platforms to stores 49.4 55.7 (Note 64)

2018 DEFP methodological notes % of post shipment multimodal transport in Europe (from 1/01 to 31/12) 21.9% 16.2% Note 64: Longer stock life in 2018, resulting in a greater need for continental warehouses to accommodate the additional stock.

3 3 Average per lorry load rate between the key import warehouses 54.9 m 53.2 m (14,666 articles (13,790 articles and the distribution platforms in Europe (from 1/01 to 31/12) VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY per lorry) per lorry)

DEFP2018 2018 DEFP methodological notes Note 65: Thanks to initiatives by country teams and Decathlon brand teams, there was a 7% reduction in products transported by air in 2017, to reach 3.2% in 2018, representing savings of 87 g CO2 equivalent per item. Air transport has a significant impact on the CO2 impact due to shipping Decathlon product deliveries.

DECATHLON It should be noted that the data for maritime transport is not comparable between 2017 and 2018. The difference comes essentially from transported weight taken into account. The data on reference weights is becoming more reliable, which explains the variations between 2017 and 2018. On the other hand, the number of maritime lines increased in 2018 to serve 37 central purchasing offices (instead of 32 in 2017). A central purchasing office can have 118 several ports of entry, which further increases the number of maritime lines. 119 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

> Completing eco-certifications for new company-owned sites in line p. 81 OBJECTIF 9 - INDUSTRY, INNOVATION with the most stringent international standards AND INFRASTRUCTURE: BUILD RESILIENT INFRASTRUCTURE, PROMOTE INCLUSIVE > Optimising waste and energy management at Decathlon sites p. 90 AND SUSTAINABLE INDUSTRIALIZATION AND FOSTER INNOVATION > Helping suppliers with the work of assessing and continuously reducing p. 76 CROSS-REFERENCE TABLE the environmental impact of their industrial sites

OBJECTIF 10 - REDUCED INEQUALITIES: > Ensuring that everyone is treated equitably at every level of the value chain REDUCE INEQUALITY WITHIN AND AMONG p. 72 COUNTRIES by implementing the Duty of Vigilance

> Taking part in community life, engaging in dialogue with neighbours OBJECTIVES > Decathlon initiatives to support this goal page p. 85 and all stakeholders OBJECTIF 11 - SUSTAINABLE CITIES AND COMMUNITIES: MAKE CITIES AND > Calculating and writing action plans to improve the regional impact of our HUMAN SETTLEMENTS INCLUSIVE, SAFE, p. 87 > Providing for living wages at sites that produce Decathlon products sites OBJECTIF 1 - NO POVERTY: p. 70 RESILIENT AND SUSTAINABLE > Helping to support people in difficulty through the work of the Decathlon END POVERTY IN ALL ITS FORMS EVERYWHERE p. 41 Foundation > Fairly compensating teammates p. 38 > Expanding eco-design and environmental labelling for Decathlon products p. 49 OBJECTIF 2 - ZERO HUNGER: OBJECTIF 12 - RESPONSIBLE CONSUMPTION > Reducing the impact of the use of raw materials p. 53 END HUNGER, ACHIEVE FOOD SECURITY > Promoting the use of cotton from sustainable sources AND PRODUCTION: ENSURE SUSTAINABLE p. 51 AND IMPROVED NUTRITION AND PROMOTE (organically grown cotton, BCI cotton, etc.) CONSUMPTION AND PRODUCTION PATTERNS > Offering environmentally friendly products and services p. 54 SUSTAINABLE AGRICULTURE > Training the Decathlon product design teams on the notion of the circular p. 51 economy > Selling sports articles that are accessible to as many people as possible p. 45 > Calculating the carbon footprint of Decathlon business activities p. 16 OBJECTIF 3 - GOOD HEALTH & WELL-BEING: > Delivering health and safety for our teammates p. 37 and implementing action plans to reduce it ENSURE HEALTHY LIVES AND PROMOTE WELL-BEING FOR ALL AT ALL AGES > Keeping users safe p. 59 > Eco-designing and extending the service life of Decathlon products p. 55 > Holding sporting events near our sites p. 89 > Reducing the impact of the use of raw materials p. 53 OBJECTIF 13 - CLIMATE ACTIONS: > Performing environmental audits to help suppliers continuously reduce > Making continuing education available to all as in-person TAKE URGENT ACTION TO COMBAT CLIMATE p. 76 or digital training sessions throughout the careers of our teammates p. 31 CHANGE AND ITS IMPACTS their environmental impact OBJECTIF 4 - QUALITY EDUCATION: and across all business lines > Consuming only renewably-sourced electricity by 2026 p. 83 ENSURE INCLUSIVE AND EQUITABLE QUALITY > Sharing the principles and values of sustainable development and the tools EDUCATION AND PROMOTE LIFELONG > Reducing the use of air transport for moving products p. 49 LEARNING OPPORTUNITIES FOR ALL to make a difference every day in each Decathlon store through dedicated p. 34 training available to all teammates > Incentivising and participating in the emergence of new forms of mobility p. 50 > Supporting supplier skill-building and autonomy p. 69 > Helping suppliers with wastewater treatment and chemicals management OBJECTIF 14 - LIFE BELOW WATER: p. 76 CONSERVE AND SUSTAINABLY USE THE to prevent water pollution OBJECTIF 5 - GENDER EQUALITY: OCEANS, SEAS AND MARINE RESOURCES ACHIEVE GENDER EQUALITY AND > Ensuring that everyone has the chance to live up to their potential and p. 22 FOR SUSTAINABLE DEVELOPMENT EMPOWER ALL WOMEN AND GIRLS achieve their goals by combating sexism in the workplace > Expanding the use of raw materials from more sustainable sources p. 51

> Conducting environmental audits at production sites that process more OBJECTIF 15 - LIFE ON LAND: > Working to protect the biodiversity present around our sites p. 83 OBJECTIF 6 - CLEAN WATER AND SANITATION: p. 78 than 50 m3 of water per day PROTECT, RESTORE AND PROMOTE ENSURE AVAILABILITY AND SUSTAINABLE SUSTAINABLE USE OF TERRESTRIAL MANAGEMENT OF WATER AND SANITATION ECOSYSTEMS, SUSTAINABLY MANAGE FOR ALL FORESTS, COMBAT DESERTIFICATION, > Using technologies that help reduce water usage p. 76 > Performing environmental audits to continuously reduce the environmental AND HALT AND REVERSE LAND DEGRADATION p. 76 impact of Decathlon product suppliers AND HALT BIODIVERSITY LOSS OBJECTIF 7 - AFFORDABLE AND CLEAN ENERGY: ENSURE ACCESS TO AFFORDABLE, > Committing to the RE100 initiative so that all electricity consumed p. 83 RELIABLE, SUSTAINABLE AND MODERN by Decathlon will come from renewable sources by 2026 OBJECTIF 16 - PEACE, JUSTICE AND STRONG ENERGY FOR ALL INSTITUTIONS: PROMOTE PEACEFUL AND INCLUSIVE SOCIETIES FOR SUSTAINABLE > Ensuring that we work fairly and equitably with our partners by combating

VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY > Developing a purchasing strategy for Decathlon products DEVELOPMENT, PROVIDE ACCESS TO corruption, p 69, and by enforcing our Code of Conduct at sites that p. 71 with privileged industrial partners and eco-constructing p. 65 JUSTICE FOR ALL AND BUILD EFFECTIVE, produce Decathlon products sustainable growth strategies with their input ACCOUNTABLE AND INCLUSIVE INSTITUTIONS

DEFP2018 OBJECTIF 8 - DECENT WORK AND ECONOMIC AT ALL LEVELS GROWTH: PROMOTE SUSTAINED, INCLUSIVE > Ensuring decent work at sites that produce Decathlon products AND SUSTAINABLE ECONOMIC GROWTH, FULL through human responsibility in production audits and support p. 70 > Joining forces with external stakeholders to develop and implement AND PRODUCTIVE EMPLOYMENT AND DECENT OBJECTIF 17 - PARTNERSHIP FOR THE for the teams on the ground GOALS: STRENGTHEN THE MEANS OF sustainable development goals: RE100, Fashion Global Agenda, ADEME, p. 128 DECATHLON WORK FOR ALL IMPLEMENTATION AND REVITALIZE THE etc. > Analysing the annual responses from teammates about their workplace p. 20 GLOBAL PARTNERSHIP FOR SUSTAINABLE 120 well-being through the DTB tool and deploying appropriate action plans DEVELOPMENT > Performing a materiality analysis by surveying over 4,400 stakeholders p. 12 121 CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

We are on a learning curve, adopting a continuous improvement approach over several years in order to reinforce the reporting process internally and enhance the reliability of data that we communicate in our extra-financial reports. METHODOLOGICAL NOTE The 2018 data was consolidated using a new dedicated computing tool (the PURE reporting tool), which helps make information gathering, processing and consolidation more efficient for Decathlon. GENERAL ORGANISATION OF REPORTS PRINCIPLES GOVERNING THE PRODUCTION OF THE SUSTAINABLE DEVELOPMENT REPORT In line with GRI (Global Reporting Initiative) G4 sustainability reporting guidelines, Decathlon applies the following principles when REGULATORY FRAMEWORK writing our Sustainable Development Report: Decathlon is bound by the extra-financial reporting obligation via Decathlon SA following the publication of article 225 of the Grenelle II • Completeness: to be as exhaustive as possible on relevant topics to enable readers of the report to assess the business’s CSR law and the decree of 24 April 2012, and has been since the financial year commencing after 31 December 2012. performance These reporting obligations were modified after Directive 2014/95/EU relating to the publication of non-financial data and information • Relevance: topics deemed relevant are those that we feel are most important for our own activities and governance about diversity was transposed into French law. • Clarity: to be universally understood The following are thus applicable under French law: ordinance no. 2017-1180 of 19 July 2017, which was modified by law no. 2018-938 of 30 October 2018, known as the Egalim Law; the decree pursuant to French ordinance no. 2017-1265 of 9 August 2017; the order of • Punctuality: to deliver the report on the same dates every year 14 September covering the manner in which the independent third-party body should conduct its assignment. • Balance: to present a fair idea of the business’s overall performance by reflecting both positive and negative aspects With regard to the publication of a vigilance plan following law no. 2017-399 of 27 March 2017 concerning the duty of vigilance, we made a special document available online. • Accuracy: to give accurate, detailed information to enable readers to gain a better understanding The regulatory stipulations concerning corruption (law no. 2016-1691 of 9 December 2016) are also applicable. REPORTING SCOPE Decathlon SA is not listed on the stock exchange. However, in light of their materiality we took into account the following criteria: promoting and respecting the eight fundamental conventions of the ILO (freedom of association and recognition of the right to collective Decathlon had a presence in 51 distribution countries, with 96,002 teammates and a turnover of €11.3 billion excl. VAT in 2018. bargaining; abolition of all forms of forced labour; abolition of child labour; abolition of employment and occupation discrimination) and As of 31/12/2018, the Decathlon group scope numbered: information about efforts to promote human rights. • 1,511 stores (all sales forms combined)1 In terms of the fundamental conventions of the ILO, Decathlon applies the same standards across the 10 production sites we own as those required of our suppliers. • 69 warehouses and logistics platforms To establish the CSR target reporting scope for the 2018 financial year, it was agreed to use the financial consolidation scope, which ORGANISATION OF REPORTING comprises all subsidiaries from the Decathlon group, closed on 31 December of the reporting year and from which restatements have This Declaration of Extra-Financial Performance represents the sixth exercise of its kind for Decathlon, and illustrates our commitments, been made. achievements and projects in terms of corporate social responsibility (CSR) for the 2018 financial year. These restatements correspond to subsidiary exclusions from the financial consolidation scope. To create this document, we implemented the following organization: Exclusions are operated on the basis of the: • A project officer responsible for CSR reporting; a chief editor; a reporting and audit process project manager; a reporting tool manager. - corporate purpose (companies whose sole purpose is acquiring shares; subsidiaries whose sole purpose is real estate ownership) • The team is responsible for the following components: writing and communications, technical aspects and project management, internal reporting protocols, and the implementation and roll-out of the reporting tool (PURE) - controls (art. L. 233-3 of the Commercial Code) • A network of contributors covering the various activities of the business (design, production, distribution, logistics, property, legal, etc.) - ongoing transactions • Strategic committees with different advisors (CEO of Decathlon, sustainable development director, industrial performance director, - turnover (threshold of 0.01% of total turnover for Decathlon group subsidiaries) of the subsidiary being considered communications and HR team representatives, etc.). Regarding the latter, we consider that the cost of obtaining environmental, social and societal data is disproportionate to the importance Indicators are provided by the contributors from the relevant operational activity, before being consolidated by the report project leaders. they represent. Excluding these companies has no significant effect on the representativeness of our data. Some of the extra-financial indicators are drawn from information that has been regularly coordinated internally by the business’s However, teammates. Indicators have been reviewed and organized every year since 2013 in order to align them with legislative requirements, the observations -any subsidiary with more than 10 stores must be included in the CSR target reporting scope, given their impact on the "Group" data of the independent third-party body and to take into account changes to internal sustainable development projects. point. In other words, the inclusion rule for the CSR target reporting scope with regard to the number of stores takes precedence over the exclusion rule for the CSR target reporting scope with regard to turnover. A reporting protocol including the indicator definitions and the various procedures for collecting and consolidating data is updated and shared with the relevant contributors each year. -any subsidiary registered with the RBU (Reporting Business Unit), which corresponds to the turnover relating solely to a production activity for Decathlon products, regardless of the total turnover, must participate in the CSR target reporting scope with regard to the VERIFIED INFORMATION duty of care expressed by the Human Responsibility in Production (HRP) indicator, even if – by virtue of the turnover threshold – it For the 2018 financial year, the quantitative data and indicators audited by Mazars are: would be excluded from the CSR target reporting scope. • Company information: Total headcount as of 31/12/2018; percentage of permanent employees; percentage of shareholding -for China, in light of local legal structures, we decided to institute a special rule, consisting of integrating all subsidiaries that engage in teammates; Decathlon Teammates Barometer results; number of training hours; health & safety policy (qualitative); diversity policy retail and logistics activities. (qualitative); disability policy (qualitative) The CSR target reporting scope coverage rate for 2018 was 99,96% of the total turnover for Decathlon group subsidiaries.

VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY • Environmental information: Percentage of products with an eco-label; energy consumption per square meter; waste sorting rates at sites. Percentage of ABC Supplier Environmental Management; energy and waste management optimisation policy (qualitative); transport & logistics policy (qualitative) DEFP2018 • Societal information: Percentage of HRP ABC ratings; purchasing policy (qualitative); returns rate per million; percentage of sports users delighted with Decathlon products

DECATHLON Note: the "emissions of scope 1 and 2 greenhouse gases" information was subject to a mock audit for the first time this year. Our efforts since 2013 to organise collections, and to consolidate data and make it more reliable, have enabled us to observe how 122 reliable certain data actually is. 123 1. Franchised stores are excluded, and their turnover is not consolidated in the balance sheet. CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

METHODOLOGICAL CLARIFICATIONS The scope taken into account for the GHG assessment consists of company-owned Decathlon sites that were trading on 1 December 2018, i.e., 1,420 Decathlon stores and 40 warehouses. 1. Note that the “Decathlon brands” term refers to company-owned Decathlon brands (examples of Decathlon brands include: Forclaz for trekking activities, Olaian for surfing, Tribord for sailing, etc.). We use a software solution to gather and consolidate the data from our sites. 2. The suppliers we refer to are those with whom we have direct or indirect commercial relations in the context of the production of Compared with the CSR reporting scope: our company-owned products and their components. The product development approach (eco-design, quality, human responsibility in production, etc.) presented here concerns only products manufactured for our company-owned brands. • energy data for our sites was calculated using actual energy consumption from 1,338 stores out of 1,431 (93.5%) and 41 warehouses out of 69 (59.4%) as of 31/12/2018. 3. Decathlon activities that come under facilities listed in environmental protection regulations concern 12 warehouses and two company-owned production sites in France (12 of which are subject to authorisation and two to declaration) • water consumption in our stores and warehouses is not considered significant as it is limited to sanitation facilities, staff rooms, watering green spaces and automatic extinguisher tests. The average consumption for 2016 was calculated based on actual data 4. Decathlon’s core business objective is the manufacture of its products, services and related equipment designed for sports enthusiasts obtained from a sample of 23 stores and one warehouse, and it confirmed that we did not have an exhaustive report, given the low and their families, and all associated wholesale and retail activities. Under our Aptonia brand name Decathlon sells sports nutrition consumption. products and diet supplements, which do not come under the category of foodstuffs. On this basis, Decathlon is not considered to be a distributor for the food retail sector. • waste data was calculated based on waste production at 82% of Decathlon stores (1,173 sites) and 55% of warehouses (38 sites). Given the above, the provisions of article L 225-102-1 of the Commercial Code (relating to actions to combat food waste) do not apply The remaining data was extrapolated using tonnage per quantity sold ratios (for stores) and tonnage per square metre ratios (for to Decathlon. Furthermore, these sports nutrition and food supplement products have a long use-by date, as they are not particularly warehouses). perishable. 8- Restatement of 2017 data and error correction: 5. For the social dimension: -There is a small chance that some data calculated in 2017 may differ from that published in our 2018 Declaration of Extra-Financial In accordance with the action plan implemented by the 2016 Sustainable Development Report, this year the HR reporting project Performance, especially since calculation and inputting errors were detected. manager, who was appointed in October 2018, included three additional countries when gathering social data sourced from payroll These modifications are not significant in any way. If these method changes were introduced between 2017 and 2018, this is mentioned software in order to improve the representativeness and reliability of the scope. in a footnote for the indicator concerned. India, Russia and Hungary were thus integrated alongside the eight previous countries (France, Spain, Italy, Belgium, China, Poland, REPORTING PERIOD Germany and Portugal), which increased the scope of social data sourced from payroll software to a total of 81.3% of the global workforce. The reporting period for extra-financial data is based on the calendar year (1 January to 31 December 2018), so as to ensure consistency with the trading year of Decathlon’s companies as well as the business's existing reports. Most of the quantitative data published for these countries are thus produced from ad hoc payroll software. In cases where data refers to a reporting period different to the calendar year, this must be specified in the body of the report. The quantitative data published for the remaining 18.7% are calculated using data reported in the “My Identity” tool, whose reliability is uncertain. METHODOLOGICAL LIMITS OF THE INDICATORS Note that certain indicators are calculated solely on the basis of the “My Identity” tool (% of female managers, % of seniors, breakdown Being Decathlon’s sixth extra-financial report, this report forms part of an improvement drive implemented over several years, with the by activity and breakdown by geographic region). aim of structuring and reinforcing the process internally. A data gathering framework has been established, with a standard definition for each indicator collected. Environmental, social and societal indicators can present methodological limits caused by: At the same time, remaining countries will be contacted over time, to test the data gathering framework using their payroll extracts in • non-harmonised definitions, national/international legislation and local practices order to make data more than 96% reliable for the 2021 DEFP: • pr oblems in collecting certain data without data collection software solutions • 2019: +3 countries (Brazil, Turkey, Czech Republic) • manual data entry in the PURE reporting tool: reliability depends on the quality of the information collection performed by the teams • 2020: +3 countries (Romania, United Kingdom, Morocco) • the availability of certain data within a limited field • 2021: +3 countries (Netherlands, Mexico, Taiwan) • extrapolating and estimating certain data in situations where actual data is not available A network of contributors for social data has been gradually implemented in our various countries by the HR reporting project manager in an effort to expand the scope for the qualitative HR information shared in our upcoming DEFP (primarily for France at this time). • the gradual deployment of our internal reporting protocol to cover the collection, consolidation and management of indicators 6. For logistics-related figures: In 2018 the majority of the logistics data was calculated by the contributors in charge of the data for Europe, due to the unavailability and lack of consolidation for the logistics data at the global level. Europe accounts for 71% of article volumes shipped in 2018. 7. For the greenhouse gas emissions assessment (GHG):

Calculating the CO2 emissions was done using the GHG Protocol method, which divides emissions into three categories (scopes 1, 2 and 3). We use the operational control approach. For scope 2, we calculate our emissions using the market-based and location-based methods. We primarily use the market-based VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY method for performance-tracking purposes. GHG emissions are calculated by multiplying activity data by an emission factor. Activity data was gathered from the defined area. DEFP2018 If data was unavailable or showed errors, it was used to make assumptions or was extrapolated using accurate data. Excluding calculations concerning product impact, most emission factors come from the Carbon database managed by ADEME DECATHLON (http://www.bilans-ges.ademe.fr/). Product impact modelling is performed using simplified lifecycle assessments. Calculations are performed using an eco-design module integrated into our in-house design tool. Product impact data comes from the ADEME Base 124 Impact database. 125 2. http://www.ghgprotocol.org/standards/corporate-standard. CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

• We ascertained the existence of internal control and risk management procedures implemented by the company; CONFIRMATION OF PARTICIPATION • We gained an understanding of the consistency of the selected results and key performance indicators in light of the main risks and policies presented; • We checked that the Declaration covers the consolidation scope, namely all the companies included in the consolidation scope in accordance with article L. 233-16, with the scope limits specified in the Declaration; AND REPORT ON THE FAIRNESS • We gained an understanding of the collection process implemented by the entity designed to ensure the exhaustiveness and fairness of the information; • For the key performance indicators and the other quantitative results1 we considered most important, we introduced: OF THE INFORMATION - analytical procedures, work that involved checking that the collected data was correctly consolidated and that changes in this data were consistent; - detailed tests performed using surveys, work that involved verifying the correct application of definitions and procedures and reconciling data from documentary evidence. This work was conducted with a select group of contributing entities2 and covers between 29% and 100% of the DECATHLON Report by an independent third-party body, relating consolidated data for the key performance indicators and results selected for these tests; FINANCIAL YEAR ENDED to the consolidated declaration of extra-financial performance • We consulted documentary sources and conducted reviews to corroborate the qualitative information (actions and results) we considered the most 31 December 2018 contained in the management report important3; TO THE SHAREHOLDERS, • We evaluated the overall consistency of the Declaration in light of our knowledge of the company. In our capacity as an independent third-party, member of Mazars’ network, statutory auditor of Decathlon, whose accreditation was accepted by • We feel that the work we have performed exercising our professional judgement has enabled us to formulate a conclusion providing reasonable COFRAC under the number 3-1058 (scope of accreditation available at www.cofrac.fr), we have drawn up this report on the consolidated declaration of assurance; greater assurance would have required more extensive verification procedures. extra-financial performance for the year ended 31 December 2018 (hereinafter named the "Declaration"), included in the management report, pursuant to the legal and regulatory provisions of articles L.225-102-1, R. 225-105 and R. 225-105-1 of the French Commercial Code (Code de commerce). METHODS AND RESOURCES For this work we enlisted the expertise of five individuals; it was carried out between early November 2018 and mid-May 2019, lasting a total of six COMPANY RESPONSIBILITY weeks. The Board of Directors of Decathlon is responsible for preparing a Declaration in accordance with legal and regulatory provisions, including a presentation We conducted some ten reviews with those responsible for preparing the Declaration who work in the administrative, financial, sustainable development, of the business model, a description of the main extra-financial risks, a presentation of the policies implemented with regard to these risks, and the internal audit, ethics & compliance, human resources, quality of life at work, human safety and security, logistics, and purchasing departments. results of said policies, including key performance indicators. The Declaration was produced according to company procedures (hereinafter named the "Guidelines"), the salient elements of which are presented in CONCLUSION the Declaration and available on request from the company's head office. The proofs of attendance used to track the training hours inputted into the My Progress, Decathlon Exchange and Mylo tools, which are used to report in-person and e-learning training hours, could not be provided. We are therefore unable to comment on the reliability of the data published INDEPENDENCE AND QUALITY CONTROL for this indicator. Similarly, the extrapolation assumptions used to calculate the "Percentage of sports users delighted with Decathlon products" key Our independence is defined by the provisions of article L. 822-11-3 of the French Commercial Code and the French Code of Ethics (Code de déontologie) performance indicator for the global scope were not documented. As a result, we are unable to comment on the fairness of these two indicators. of our profession. In addition, we have implemented a system of quality control including documented policies and procedures regarding compliance On the basis of our work, with the exception of the items mentioned above, we observed no significant anomalies likely to call into question the fact with the ethical requirements, French professional standards and applicable legal and regulatory requirements. that the Declaration complies with the applicable regulatory provisions and that the Information, taken as a whole, is presented in a fair manner and in RESPONSIBILITY OF THE INDEPENDENT THIRD-PARTY BODY accordance with the Guidelines. On the basis of our work, our responsibility is to formulate a reasoned opinion expressing a conclusion of reasonable assurance relating to: COMMENTS • the compliance of the Declaration with the provisions of article R. 225-105 of the French Commercial Code; Without undermining the conclusion above and in accordance with the provisions of article A. 225-3 of the French Code of Commerce, we offer the following comments: • the fairness of the information provided pursuant to section one and section two, paragraph three of article R. 225-105 of the French Commercial Code, namely the results of the policies, including any key performance indicators, and the actions taken with respect to the main risks, hereinafter named • the process for listing, ranking and validating the main extra-financial risks is not presented in the DEFP. The mapping work of listing and ranking the "Information". the extra-financial risks was performed by experts from the Decathlon Group (the internal audit department and country leaders) and this work was validated by the Audit Committee as well as the Strategic Committee. • It is not within our purview, however, to comment on: • the Declaration presents the main extra-financial risks, the material issues identified using the new analysis performed during the 2018 financial year • the company's compliance with other applicable legal and regulatory provisions, particularly with regard to the vigilance plan and efforts to combat and the 2015-2019 SD ambitions. However, the relationships between the main risks, the issues, the policies used to address them and the KPIs used corruption and tax evasion; to evaluate their performance have not been made explicit. With an eye to consistency and clarity in the presentation of the information, the correlation • the compliance of the products and services with applicable regulations. between these different elements should be made more explicit for the next financial year. NATURE AND SCOPE OF THE WORK • the policy relating to anti-corruption efforts is being developed. Accordingly, some of the actions and associated performance indicators will be implemented in upcoming financial years, once this policy has been rolled out. Our work described below was performed in accordance with the provisions of articles A. 225-1 et seq. of the French Code of Commerce setting out the ways in which an independent third-party body should conduct its mission, as well as with the professional guidance issued by the national auditing • Some of the policies have been rolled out within a limited scope. This is true of the policies associated with the social risks that cover between 23.7% body relating to this work and with the international norm ISAE 3000 – Assurance engagements other than audits or reviews of historical financial (for France) and 67.3% (for Europe) of the consolidated workforce. Only the Decathlon Teammate Barometer and Decathlon Exchange policies have information. been deployed at a global level. The policy associated with the issue of health and safety covers 23.7% of the workforce. Lastly, the policies associated with transport and logistics currently only pertain to the European geographic area, i.e., 71% of article volumes shipped during the 2018 financial year. The work we performed enabled us to evaluate the compliance of the Declaration with regulatory provisions and the fairness of the information: • We obtained an understanding of the business activities of all companies included within the consolidation scope and the exposure to the main social and environmental risks associated with that activity; Drawn up in Paris La Défense on 6 june 2019 Independent third-party body • We gained an understanding of the appropriateness of the Guidelines in terms of their relevance, their exhaustiveness, their reliability, their neutrality and their comprehensibility, taking into consideration good practices used within the sector, if applicable; MAZARS SAS • We checked that the Declaration covers each category of social and environmental information provided in section three of article L. 225-102-1;

VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY • We checked that the Declaration included an explanation justifying the absence of any information required by section three, paragraph two of article Isabelle MASSA Edwige REY L. 225-102-1; Partner CSR and Sustainable Development Partner • We checked that the Declaration presents the business model and the main risks associated with the business activities of all entities included in the DEFP2018 consolidation scope, including, when relevant and proportionate, the risks resulting from their business relations, their products or their services, as well as the policies, actions and results, including key performance indicators; 1. Total workforce as of 31.12.2018; Percentage of employees with permanent contracts; Percentage of employee shareholders; Results from the Decathlon Teammates • We checked, when relevant in light of the main risks and policies presented, that the Declaration presents the information listed in section two of article Barometer, Number of training hours; % of products with an eco-label; Energy consumption per square meter; Waste sorting rate; % ABC HRP; % ABC Environmental DECATHLON R. 225-105; Suppliers; % of sports users delighted with Decathlon products; Returns rate per million. • We gained an understanding of the selection and validation process for the main risks; 2. Decathlon France, Decathlon Italy, Decathlon India and Decathlon Global. 126 3. Employee health and safety policy; Diversity and disability policy; Energy and waste management optimisation policy; Product transport and logistics policy; Purchasing 127 policy, Anti-corruption policy. CHALLENGES & STRATEGIES PEOPLE & MANAGEMENT PRODUCTS & SERVICES RESPONSIBILITY IN PRODUCTION STORES & TRANSPORT INDICATORS & METHODOLOGY

LIST OF 2018 STAKEHOLDERS

INSTITUTIONNAL RELATIONS ENVIRONNEMENTAL MANAGEMENT Sits on the Environment Committee for the FCD (Federation for Commerce and Distribution) that works to promote OEF (Organisation Environmental Footprint): Participation in a European experiment to define a common multi-criteria Sustainable Development. method for calculating organisations’ environmental footprint. Member of the technical secretariat with different http://www.fcd.fr/qui-sommes-nous/actualites-de-la-fcd/detail/decouvrez-la-video-de-presentation-de-la-fcd/ stakeholders, including ADEME (French Environment and Energy Management Agency), PERIFEM*, ENEA**, Umweltbundesamt***, the NGO Global 2000**** and businesses (Carrefour, Colruyt, Kering, Picard and Office Depôt). On the CSR Commission since 2014 (including working on updating the code of conduct and on an event linking CSR and *PERIFEM: Technical Commerce and Distribution Organisation sport). http://assoperifem.wixsite.com/perifem http://www.entreprisesdusport.com/fr/infos-conso/developpement-durable/ **ENEA: National Italian Agency for New Technology, Energy and Sustainable Development http://www.unionsportcycle.com/ http://www.enea.it/it Since 2015, follow-up of work monitored by the CSR Commission of the WFSGI (sharing intelligence information, CSR ***Umweltbundesamt: Austrian Federal Agency for the Environment practice benchmarking, participation in webinars, etc.). http://www.umweltbundesamt.at/en/ http://www.wfsgi.org/ ****Global 2000 NGO https://www.global2000.at/ Member of the Eurocommerce Environment Committee, so as to monitor and anticipate any future strategic and legislative http://ec.europa.eu/environment/eussd/smgp/ developments for the European Union in terms of the environment. http://www.eurocommerce.eu/ RE100 is a global initiative created by The Climate Group and launched at the UN Climate Summit in New York in 2014. This initiative aims to involve, support and promote companies that are committed to 100% use of renewable energy A member of the ORSE for several years. This organisation provides continuous monitoring of social and environmental (including biomass, geothermal, solar, wind and tidal energy). responsibility in businesses across France, Europe and the world. http://there100.org/companies http://www.orse.org/ More information: https://www.decathlon.media/shared/dossiers-presse/pdfs/cp_re100_decathlon_media_energie_renouvelable_ ECO-DESIGN zlzmzuqq.pdf Part of the eco-labelling pre-roll-out project with ADEME and the French Ministry for the Environment. Leads the project committee (COPROJ) for textile eco-labelling. RESPONSIBILITY IN PRODUCTION http://www.ademe.fr/expertises/consommer-autrement/passer-a-laction/reconnaitre-produit-plus-respectueux- Technical support for Decathlon’s Human Responsibility in Production and Supplier Environmental Management lenvironnement/dossier/laffichage-environnemental/laffichage-environnemental-aujourdhui-demain-bilan- assessments (conducting of audits, wastewater samples and analyses). experimentations-perspectives http://www.sgs.com/ Sits on the Board of Directors and the Scientific Committee of Eco-TLC. Member of an advisory committee (with representatives from national contact points, businesses, the European http://www.ecotlc.fr/page-53-gouvernance.html Commission, multi-stakeholder initiatives, NGOs and unions) to draft a guide on due diligence in the textile and footwear industries. PEF (Product Environmental Footprint): Participation in a European experiment to define a common multi-criteria method https://mneguidelines.oecd.org/responsible-supply-chains-textile-garment-sector.htm for calculating products’ environmental footprint (T shirts). Member of the technical secretariat with different stakeholders, including ADEME (French environment and energy management agency), the French Ministry for the Environment, the Stronger Together is a multi-stakeholder business-led initiative aiming to reduce modern slavery providing evaluation OFEV5, brands (Promod, Pimkie, Okaïdi, etc.) and manufacturers (Les Tissages de Charlieu, TAD). tools. Co-creation of the digital training "Tackle Forced Labour in Supply Chain"”for our suppliers and the teams of our http://ec.europa.eu/environment/eussd/smgp/ industrial division (production and purchasing). *OFEV: Swiss federal office of the environment https://www.stronger2gether.org/ Decathlon joined the BCI (Better Cotton Initiative) in January 2012. This non-profit-making association seeks to promote NGO specialized and referent in the fight against forced labour and human trafficking. Verité provides tools and the development of better cotton throughout the world, to create a sustainable commodity that is better for those methodologies to detect and eliminate forced labour and human rights abuses in supply chains. producing it, better for the environment it is grown in, and better for the future of the sector as a whole. https://www.verite.org/ http://bettercotton.org/ Decathlon participates in the "2020 Commitment" initiative of the Global Fashion Agenda, which brings together companies that have committed themselves to taking concrete measures for the circular economy. Decathlon has made DUTY OF CARE the following commitment: "By 2020, all of our engineers and designers will be trained on circular design principles to Verisk MapleCroft is a British consulting firm specialising in the analysis of political, economic, social and environmental improve recyclability, repairability and longevity". risks on an international scale. Thanks to the associated data and analyses on these subjects, it enables companies to https://www.globalfashionagenda.com/logo/decathlon/ better anticipate, identify and manage the risks they face in their activities. https://www.maplecroft.com/ Decathlon is a member of the “Pôle Eco-conception”, the French national centre for eco-design and life-cycle performance. Created in 2008, it aims to support the development of sustainable consumption and production methods. The “Pôle Eco- conception” supports Decathlon on the eco-design of its products and the strategies implemented. PRODUCTS SAFETY AND QUALITY https://www.eco-conception.fr/ Sharing scientific knowledge about chemicals used in production processes and about emerging risks, in order to define Decathlon's future areas of work. https://www.anses.fr/fr VITALITY & RESPONSIBILITY RESPONSIBILITY & VITALITY GREEN IT The AFIRM group is an international working group composed of leading brands in the textile, footwear and sports goods industry that work to harmonize the chemical requirements of products. Decathlon is participating in the development of The Club Green IT brings together French-speaking Green IT project leaders from private and public organisations. Beyond a common list of prohibited substances that can be used by all these brands. DEFP2018 the services provided to its members, Club Green IT represents user organisations and enlightens the market on the https://www.afirm-group.com/ subject of responsible digital technology. In 2018, Decathlon's Green IT leader followed and obtained the certification “responsible digital” of the Green IT Club, which The course of the Groupe d'Etude et de recherche en Dermato-Allergo (GERDA) is the annual meeting of dermato-

DECATHLON attests to the level of mastery of the methodology, good practices, vocabulary and fundamental knowledge associated allergology in France. Decathlon is participating in order to share scientific knowledge on the chemicals used in production with this practice. processes and to reduce the risk of allergy among users to Decathlon products. 128 https://club.greenit.fr/ http://www.gerda2018.com/EventPortal/Information/GERDA18/HOME2.aspx 129 1. "Tackle Forced Labour in supply chain". THANKS

Decathlon would like to thank everyone who has helped to produce this report:

• The many internal contributors, for providing informations about their activities and strategies, their monitoring and performance indicators. • The teams from France, Italy and India who took part in the audits of their data. • The members of the dedicated management committee (Isabelle Guyader, Marie-Do Théodore, Michel Aballéa, Pascal Bizard, Pierre Fahy, Florent Rabouin, Jean-Baptiste Rivière, Anne Coquerelle, Beatriz Toribio, Nicoletta Latorre, Olivier Cestre). • The editorial team (Besa Kokonozi, Axelle Kiers, Sophie Jaworska and Anne Desormais). • The reporting team (Rahel Damamme and Marion-Yonna Delesque, Marie-Do Théodore). • Julien Gontier, Projet leader for Green IT, for his support on the datas consolidation tool PURE. • Philippe Cornet Conseil, Extra-financial reporting expert, in partnership with AFNOR Compétences.

RESPONSIBLE FOR THIS PUBLICATION:

Sustainable Development Director: Isabelle Guyader Chief Editor: Anne Desormais Sustainable Development Reporting Manager: Rahel Damamme

Graphic design: BāM retail design Translation: Dovetail Photo credits: Direction de la communication Decathlon

This report is printed on FCS-certified paper using vegetable-based ink by an ISO 14001 certified printing company.