The world is our horizon
Our commitment to future generations
20 18 Corporate Social Responsibility Report 2 Summary 2018 Corporate Social ResponsIbility Report CSR withinCMACGM 14 certifications &collaborations 2018: Awards, 12 2018 CSRHighlights 10 About theGroup 06 The worldisourhorizon Introduction: 05 MARSEILLE CMA CGM 1. 23 over thevaluechain Added valuecontribution 22 38 2. 38 1. Businessethicsandanticorruption 35 to ethicsandcompliance An exemplaryapproach 32 3. 29 2. 27 7.Duty ofcare –vigilanceplan 7.Duty 41 6. 40 5.Compliance: acompanyculture 39 4. 39 3. Personal dataprotection Innovation &digitaltransformation Economic sanctions Sustainable procurement Customer satisfaction Ethics Hotline A whistleblowingsystem: Competition The information presentedThe information inthereport hasbeenidentifiedbasedonthe materialissuesatstakeandisavailablein the methodologicalnote. of theGrenelle 2ActandtheEuropean Directive regarding thedisclosure ofnon-financialinformation. This report outlinestheCMACGMGroup’s keycorporate, social,societalandenvironmental responsibilityand measures information forthe 2018period,incompliancewithArticle225 4. 75 3. 73 2. 70 1. 67 and security Excellence insafety 65 5. 64 4. 54 3. 49 2. 46 1. 46 of ouremployees The commitment 44 Awards andcertifications An attractiveemployer International security International Cargo security and safety Occupational health Maritime safety Work organisation Diversity Workforce 3. 106 2. 105 1. 99 and localscales engagement onaglobal The Group’s societal 98 6. 95 5. 94 4. 92 3. 89 2. 86 1. 80 Environmental protection 76 – naturaldisasters Emergency assistance communities Actions outwithinlocal Fondation CMACGM Awards andcertifications Employee commitment Customer solutions Circular economy AIR: Energy transition OCEANS: preserving biodiversity
Statutory Auditor Report bythe 122 Glossary Methodological Note Table ofindicators 110 directions CSR goals,2018achievements, 107 120 114 non-financial Statement the European Directive of Table ofcorrespondence with 112 CMA CGM is committed to build everyday a sustainable future by pursuing its ambitious Corporate Social Responsibility
05The world 4 is our horizon Tanya Saadé Zeenny Executive Officer
CMA CGM Group, a world leader in maritime For this reason, CMA CGM is committed The world is our horizon 2018 Corporate Social ResponsIbility Report transport, has developed for more than 40 to build everyday a sustainable future by years on strong human and entrepreneurial pursuing its ambitious Corporate Social values: initiative, boldness, integrity and Responsibility carried by 6 pillars: imagination. • Ethics and compliance Values that are reflected every day on our • Value chain CSR policy, that make our commitment a • Social involvement true conviction. • Security and safety The conviction to leave our planet cleaner. • Environment The conviction that a global company • Societal commitment has not only economical but also societal responsibilities; its purpose is to go beyond Through this report, you will discover every the financial performance. challenge our Group faces, and the actions A conviction particularly strong for CMA implemented to answer them concretely. CGM and its staff members, given the Actions that demonstrate the Group Group’s family dimension and profoundly and its staff members’ commitment, the human values to which we are committed. commitment for future generations.
We share this conviction with our clients, our suppliers and partners that expect an exemplary performance from our Group. The Group now has over 750 offices in more than 140 countries. The brands associated with the Group’s business activities are as follows:
06About the Group OTHER MARITIME ACTIVITIES
CMA CGM, founded by Jacques R. Saadé, is a leading worldwide shipping group. Now PORT ACTIVITIES headed by Rodolphe Saadé, CMA CGM enjoys continuous growth and is constantly innovating to offer its customers new mari- time, inland and logistics solutions. INTERMODAL ACTIVITIES
To continue its development, the Group’s strategy is structured around 4 main thrusts:
• Customer-centric services, by providing SUPPORT ACTIVITIES About the Group Report 2018 Corporate Social ResponsIbility them innovative solutions tailored to their needs; • Maritime, inland and logistics development; • nnovation and digitalisation; • Human expertise, combined with an agile 7 internal organisation; CMA CGM has various business lines This strategic ambition is conveyed through which are broken down as follows: its vision: “SHIPPING THE FUTURE”.
CMA CGM The CMA CGM Group’s • Shipping activities : brands, business activities, business lines and value chain • Inland activities: port, Over the past few decades, CMA CGM intermodal and logistics has expanded its scope of activity which is now broken down into 3 main areas:
As an expert logistics provider, one of CMA Indeed, with over 30,000 suppliers and 65,000 customers • Office-based activities: CGM’s core business, the Group must set worldwide, CMA CGM is innovating and imagining the goods head office support, regional offices, an example at all stages of its value chain. transport solutions of the future. network of Group agencies and subsidiaries
Adding value over the entire An exemplary approach The commitment of our employees Excellence in terms of safety Environmental protection The Group’s societal commitment value chain to ethics and compliance at a global and local level 37,092 employees worldwide, “Safety First”: safety of people and Commitment by CMA CGM to the Strategic course set based on Strengthening of the Compliance including 4,905 at sea. property. energy transition: equip the nine Containers of Hope: over 700 customer centricity, Group organisation. 22,000-TEU vessels with Liquefied containers and 5,000 tons of expansion, innovation and human 212,342 hours of training provided Triple Quality, Safety of people and Natural Gas which are scheduled to be humanitarian aid carried via the expertise. Continued implementation of the to employees in 2018. Environment certification for the commissioned in 2020. It should also programmes of partner organisations measures and procedures stipulated owned fleet. be noted that 4 LNG Containerships since the start of the operation. Innovative projects and initiatives by the Sapin II Law. 6 Partnerships with top French will be commissioned in 2019. as part of the Group’s transformation. universities (Grandes Ecoles). Significant improvement in the 200 associations supported by the Updating or creation of a Code frequency rate of accidents affecting 2.5% improvement of the Group’s CMA CGM Foundation since its A programme to improve of Ethics, Partnership Charter, “We are shipping”: female the Group, the fleet and terminals energy performance in line with the creation. Report Corporate Social ResponsIbility 2018 CSR Highlights the customer experience. Anticorruption Code, Gift and leadership transformation over the past 5 years. -30% goal between 2015 and 2025, Hospitality Policy, programme. and 6.5% increase in atmospheric 2018 call for projects: 180 A responsible procurement Third-Party Assessment Policy, Maritime solidarity: 13 search and emissions alongside the rise in applications received, 16 associations programme for a lasting relationship Conflict of Interest Policy and Interest Telecommuting scheme rescue missions at sea. business activity in 2018. selected in 2018 making it possible with our suppliers and subcontractors. representation Policy. experimented in Marseille to provide assistance to over 8,000 and Le Havre. Preventive security policy within a Introduction of an ETA 2020 children. Training and whistleblowing system context of major natural events and programme as part of preparation 11 (Ethics Hotline), fundamental for risk Attractive employer: “Happy geopolitical instability. for the Global Sulphur Cap in Launch of a skills sponsorship prevention. Candidates 2018” for France. 2020, determination of the Group’s programme for employees at the strategy in terms of conventional Group’s head office. Achievement of the Group Rollout of a Company Mobility plan fuels, LNG and the scrubbers system. Surveillance Plan. at the head office. Over 38 projects in favour of local Development of the Customer Care communities achieved in 2018 by Launch of a worldwide simplification Sustainability Program, including CMA CGM employees. approach. value-added services such as MyCarbon Footprint, the promotion of transport and logistics solutions or the commitment and cooperation through Sustainability pacts and the Clean Cargo Working Group.
No major oil pollution in 2018, however 138 containers were lost during a storm at sea in early 2018.
Continuation of the programmes to reduce the impact of the vessels, especially as regards energy efficiency, reduction of atmospheric pollution, underwater and ambient noise, liquid and solid discharges.
The Group was once again rewarded for its environmental policy in particular via the French Ship Owners 2018 CSR Association Blue Charter, customer awards as well as awards received Highlights in connection with voluntary port CSR within CMA CGM 10 programmes worldwide. Cooperation 2018: As part of its open continued improvement drive, the Group Awards, relies on inter-company cooperation to effectively anticipate the CSR issues and risks and to share the experience certifications feedback and good practices with its peers, partners and all 12 & collaborations its stakeholders. Awards In 2018, the Group received 40 distinctions and Awards. These awards recognised the high quality of service, customer relationship and operational excellence provided by the Group as well as its CSR and environmental initiatives. Maritime Anticorruption Business Actions to Stop Cargo Incident Notification Network Conterfeiting & Piracy System is a global business is is a platform that 2018: Awards, Report certifications & collaborations 2018 Corporate Social ResponsIbility network working towards the an inter-company initiative was established between the development of a maritime against counterfeiting and shipping line members to industry free of corruption that piracy. quickly share information on enables fair trade to the benefit security and safety incidents of society at large. affecting the containerised cargo. EcoVadis - In 2018, for the CDP - Carbon Disclosure Happy Trainees - In 2018, 4th consecutive year, the Project - With a B- rating, for the 4th consecutive Group achieved a GOLD CMA CGM received an year, the CMA CGM head level with a substantial above-average score in its office received the “Happy improvement of its rating. business sector in 2018. Trainees” label rewarding EcoVadis, the CSR rating the Group’s HR policy for European Community agency, has ranked CMA trainees and apprentices. Shipowners’ Associations CGM amongst the 1% of is a trade association which 13 the most efficient shipping Container Ship Safety Forum - promotes the interests of companies. Launched in 2014, the CSSF European shipping so that Clean Cargo Working is a NGO that brings together the industry can best serve Group is an inter-company the major shipping players European and international initiative involving major whose aim is to improve trade in a free and compe- brands, cargo carriers and Safety at sea prize – In safety performance and titive environment to the freight forwarders which November 2018, APL was ISO certifications: management practices in the benefit of shippers and is dedicated to reducing awarded the Crew Connect The entire scope of the container shipping industry. consumers. the environmental impacts Global safety at sea prize. This CMA CGM owned fleet1 of international goods prize was bestowed upon APL obtained the triple ISO carriage. Happy candidates - In 2018, for its practices and initiatives 9001, ISO 14001 and the CMA CGM Group HR which helped to reduce risks OHSAS 18001 certification. department was awarded for human life at sea. 39% of the Terminals the choosemycompany. subject to the CMA CGM com / HappyIndex® HO Terminals SSE policy2 / Candidates 2018 are ISO 9001, 14001 and/or accreditation. This new OHSAS 18001-certified. label recognises the high quality of the recruitment Armateurs de France is a World Shipping Council process implemented is the industry trade professional organisation Centre INter-entreprises by the Group HR group representing the which brings together De l’EXpatriation (CINDEX department which, for its international liner shipping Lloyd’s List Global Award - all French shipping and – Shared company 1st participation placed 2nd maritime service providers. industry. The WSC supports CMA CGM was presented expatriation centre) is a in the general ranking of Its role is to represent the the development and the with the Environment Prize unique platform for discussing companies with over 1000 French shipping companies supervision of regulatory at the Lloyd’s List Global and sharing good practices employees. with national and EU public issues relating to safety, Awards, a prize which regarding the international authorities, the International security, environment and highlights the pioneering mobility strategies and Maritime Organisation and other maritime regulations. role played by the Group in policies of major global the International Labour the energy transition in the European groups. shipping industry. Organisation.
1 CMA Ships scope excluding Mercosul Line. 2 Scope of the Terminals subject to the CMA CGM HO Terminals SSE policy – List available in the methodological note. Main thrusts and challenges
During 2018, the Group’s CSR approach was elaborated and adjusted based on its business activities to better reflect its desire to be a driving force of environmental, economic and social transition. 14CSR within CMA CGM The approach is broken down into 6 thrusts and 15 challenges:
“The CMA CGM Group has always believed that its economic performance was inextricably linked to social and environmental performance.” Ethics and compliance Value chain
Customer Centricity Diversity Report Corporate Social ResponsIbility CSR within CMA CGM 2018 Rodolphe Saadé Innovation and digital Collaborators' working conditions Chairman and Chief Executive Officer of the CMA CGM Group transformation Collaborators' development Sustainable procurement
15
Safety and security Environment Societal
Health, safety and security Energies Territorial integration of our collaborators Materials& waste & development Assets safety Pollution & release CMA CGM Foundation Ocean : biodiversity local & emergency relief
The ambitions of the 6 thrusts
Ethics and compliance Safety and security Prevent corruption risks and develop our policy Prevent and reduce accidents, security risks, regarding ethics and compliance among all and improve work life quality our stakeholders Environment Value chain Improve vessels' energy efficiency and Carry on with our development and innovation develop "eco-friendly" technologies policy, to improve our client's satisfaction Societal Social Continue our commitment with communities Promote diversity among our teams and de- through the Foundation and the Group and velop training courses for all our employees local actions. Inclusion of the Sustainable Development Goals – SDGs within the Group’s CSR approach Group CSR materiality matrix The UN Sustainable Development Goals have established the new course for businesses he materiality analysis3 was updated in order In 2018, 80 Group and17 subsidiary employees which, like CMA CGM, are acting responsibly to rank the Group’s 15 CSR challenges. and 4 customers were surveyed and gave and would like to take responsibility for their These challenges have been ranked based their opinions regarding the CMA CGM CSR economic, social, societal and environmental on priority both by taking into account the approach. impacts. In 2018, CMA CGM measured its CSR approach strategy of the Group and its subsidiaries and against the 17 SDGs. The aim was to determine by incorporating the vision of its stakeholders. This list of 17 global goals includes the the extent to which the Group’s CSR approach respect for human rights and fundamental free- was in line the UN programme. The results of doms, the fight against inequality and the pre- these efforts are outlined in the introduction servation of the environment. to each part of this document. Pollutions CMA CGM & release CRS issues Assets Employees safety security Energies & security
+++ 16 Customer Ethics Innovation Centricity & Compliance & sustainable Ethics and compliance Value chain added value
Employees Ressources, working conditions materials and waste
CSR within CMA CGM 2018 Corporate Social ResponsIbility Report ++ Responsible procurement: Diversity sustainable partnerships with our suppliers Employees Territorial integration, development Development
Fondation Ocean: + Local actions biodiversity & Philantropy
Safety and Security Environment Societal
+ ++ +++ Stakeholders CSR issues
During 2019, the priority SDGs for the Group will be identified alongside the completion of As a reminder, the CSR thrusts and challenges were identified with reference to the exhaustive the CSR risk assessment and the comparison with the CSR challenges. list of CSR criteria included in Article 225 of the Grenelle II Act.
3 The details regarding the methodology used to prepare the materiality matrix are provided in the Methodological Note of this report. Risk management and mapping of the CSR reporting is coordinated by the CSR The Group’s CSR Group’s risks Department. The data from the “CSR risk mapping Dashboard” is checked by an Independent Risk management is handled by the Third-Party Organisation every year. The With support from the Risk Management Corporate Risk Management and Internal report from this Independent Third-Party department, a CSR risk mapping was Audit Department. The Risk Management Organisation is appended hereto. – cf. page created in connection with the materiality team implements a Corporate level approach 107 Report by one of the Statutory Auditors matrix. The 2018 work involved: under the impetus of Top Management, with Analysing the trends of these indicators contribution from the various business lines. serves to quantify the impact of the policies - Firstly, identifying the existing mappings of The methodology is based on a qualitative implemented, identify the thrusts for growth the Group’s risks associated with each of the assessment carried out at a given time and and determinine and/or adjust the goals and 15 CSR challenges and positioning each of projected over a year. action plans for the year in progress and in these risks in a “CSR” risk mapping; The Group’s risk mapping and the micro risk the medium term. – cf. page 107 CSR Goals, mappings per business line / function are 2018 achievements, 2019 action plans - Secondly, the challenges of the materiality based on two criteria: matrix and the risks of the CSR risk mapping - Probability of occurrence of the risk; A CSR Committee meets on a quarterly were measured against each other. This - Severity of the impacts of the risk. basis to analyse the “CSR Dashboard”, served to determine: didentify the strategic thrusts driven by Top Management and determine • The challenges without associated risks. Steering of CSR the appropriate course of action. This Efforts are underway to conduct analyses of performance Committee is made up of members from Report Corporate Social ResponsIbility CSR within CMA CGM 2018 the missing risks; departments such as Human Resources, The CSR and Environment Department Risk Management and Internal Audit, reports to General Management and is • Whether the positioning of each risk was Compliance, Finance, Communication and tasked with: similar to or differed from the challenges. In Marketing, and the network of agencies, • Implementing the CSR policy in line with this exercise, differences were identified and Purchasing, Transformation and Innovation, all of the Group’s policies; explained. Security, Safety and Environment, the Lines • Identifying stakeholder’s CSR issues, as well as CMA Ships, the CMA CGM priorities and expectations; Foundation and subsidiaries. To date, the following CSR-related risks 19 • Setting CSR goals and coordinating the It is also worth noting that specific “business have been identified: CSR action plans; line” or “project” Committee meetings • Assessing, measuring and reporting on - Risk of non-compliance with “ethics are held in parallel and more operational the CSR performance. and compliance” regulations especially working groups are set up at a greater regarding: competition, corruption, frequency. has been established to economic sanctions and personal data A CSR dashboard At the same time, an expanding network of measure and steer the Group’s sustainable protection CSR officers has been established. development performance, through a series - Risks in partnerships with our suppliers and of quantitative and qualitative indicators which The Group’s CSR performance subcontractors cf. are consolidated on a half-yearly basis. – recognised by EcoVadis - Breach of human rights page 110 Table of Indicators. - Improper working conditions The exhaustiveness and reliability of the data, - Poor health & safety management CMA CGM communicates about its CSR which increases from year to year, is guaranteed - Poor security management approach both within and outside the by indicator sheets describing in particular - Uncontrolled climatic change company. Moreover, in our efforts to extend the collection and consolidation scope and - Scarcity of materials and uncontrolled our CSR policy beyond the mere regulatory processes. An extract of these indicator sheets waste production requirements, every year, the Group is included in the “Methodological Note” - Uncontrolled pollution voluntarily submits its CSR performance for section of this document. – cf. page 114 - Harm to biodiversity assessment by EcoVadis. Methodological Note. With a GOLD rating in 2018, CMA CGM ranks amongst the top 1% of companies assessed by EcoVadis worldwide.
Furthermore, in 2018, the Silver Sustainability Award was bestowed upon CMA CGM by Nike to recognise its sustainable 18 development commitment. “Our future development Joint actions and interactions cannot be reasonably achieved with stakeholders without an ambitious social 21 responsibility policy. This assessment, which ranks us amongst the top 1% of the most responsible companies demonstrates our desire to chart Joint actions and interactions CSR days: raising the awareness of 2 Open Days with stakeholders employees to the Group CSR approach Meeting of the employees with the members a course towards an even more During the european sustainable develo- of 3 associations, for the launch of the skill Recognising that the CSR approach is an pment week 2018, cma cgm organised a sponsorship programme by the CMA CGM evolving issue, and with a view to fostering respectful future and encourages series of conferences, workshops and open Foundation. days at the head office bringing together the sharing of views and practices, the Group 6 workshops demonstrates its commitment through: over 600 employees. Holding of 6 more targeted workshops for • Inter-company and multi-organisation us keep stepping up our efforts. approximately twenty employees per session cooperative actions; 2 Conferences to raise their awareness regarding: 20 • Its participation in conferences ; This ambition is intrinsically • Presentation of the 6 main thrusts and the > The Environment strategy: new CO , SOx, 2 • Partnerships with other companies CSR strategy within CMA CGM ; NOx challenges; new regulations, etc. and economic players particularly by • Presentation of the environmental challenges > Ethics & Compliance: Gift and hospitality, contributing to work and initiatives ; linked with the family-oriented for the shipping sector. • And of course, training and associating hotline, AFA Question, Due diligence, etc. customers and suppliers and all of the dimension of our group and its Group’s stakeholders in the CMA CGM
CSR within CMA CGM 2018 Corporate Social ResponsIbility Report CSR approach and raising their awareness Examples of the Group’s various actions strong human-focused values.” are given throughout this report. Tanya Saadé Zeenny Executive Officer Delegate of the CMA CGM Group
ETHICS COMPLIANCE
SOCIAL ENVIRONMENT
VALUE CHAIN
SOCIETAL
SAFETY SECURITY
Video showing the CMA CGM CSR approach for all stakeholders:
https://www.youtube.com/ watch?v=e45k9ub7r70&feature=youtu.be In 2018:
Strategic course centred Innovative projects and initia- A responsible procurement around the customer, Group ex- tives as part of the Group’s programme for a lasting rela- pansion, innovation and human transformation tionship with our suppliers and Added value expertise subcontractors A programme to improve the contribution customer journey and experience over the value SUPPLIER CMA CGM CUSTOMERS chain
Responsible Innovation Customer Procurement Digital Centricity
transformation Report Added value contribution over the chain 2018 Corporate Social ResponsIbility Added value
As an expert in logistics, a core business of the Group, CMA CGM must be exemplary at all stages of its value chain. As a matter of fact, with over 30,000 suppliers and 65,000 22 customers worldwide, CMA CGM innovates and imagines the goods shipping solutions of the future by developing: • Innovation & digital transformation to serve operational performance; • Customer satisfaction: improving the customer experience at all stages of the process; • Responsible procurement: establishing a lasting and efficient relationship with suppliers and subcontractors.
23 1. Innovation & digital transformation to enhance performance
A dedicated organisation • How can we remain relevant in an Digital transformation is a strategic goal for constantly changing industry? the Group. It includes both improving the • How can we continuously and efficiently Group’s performance and enhancing the optimise the management of operations? service provided to customers. • How can we optimise our rates and The Group relies on 3 elements as a means of volumes for our customers? concretely bringing about this transformation: • How can we foster customer loyalty through a tailored customer experience? 1. Several dedicated teams • How can we provide the Group’s employees (Digital Office, Transformation, Digital with the tools to do their jobs better? Factory, Data) to achieve the digital transformation of the Group. Their common 3. An investment fund called CMA CGM aim is to initiate new projects, prove their Ventures, which invested in a dozen start-up concept and commercial value, develop in France and abroad. The goal is to support the best of these projects and ease their the growth of these start-up internationally, implementation within the Group’s business while allowing them to draw from the CMA lines at an international scale. CGM ecosystem and the expertise of all employees. In most cases, these are start- 2. Our digital strategy is built on 5 strengths up with which the Group has developed which will transform the shipping sector over operational partnerships (Nyshex4 , e-dray5 , the next 10 years and which will help to Traxens) so that they can continue over the answer to the following 5 questions: long term.
4 NYSHEX: leader on the digital market for sea freight contracts. 5 E-dray: software aimed at improving the container shipping operations. In 2018, the transformation launched some 45 projects 24 and partnerships, such as: 2018 Corporate Social ResponsIbility Report Added value contribution over the chain 2018 Corporate Social ResponsIbility
and to attract start-up from all around the The driving objective is to become a world to this incubator. This ambitious world benchmark for innovation: artificial incubation project was launched with a view intelligence, blockchain, virtual reality / to addressing several key issues: augmented reality, ecosystem of connected SmartPort Challenge BLUEBOX: first in-house innovation • Encouraging boldness and innovation; objects, cybersecurity, robotics, etc. competition • Taking an active part in the economic As part of the SmartPort Challenge, the buoyancy of the Provence Alpes Côte ZEBOX has three goals: Group tasked start-up with imagining the port BlueBox is a virtual suggestion box to d’Azur region; of the future and particularly with optimising promote innovation and creativity for digital • Creating optimum conditions for innovation • Guiding the success of the start-up with container logistics: Optimisation of Gate Out transformation. “Digital technology plays a within the shipping sector; projects developed based on cutting- by Trucks. pivotal role in the company’s transformation • Accelerating the Group’s digital transformation; edge core technologies such as artificial The SmartPort Challenge was initiated by the through its agility, simplification and • Assisting in the emergence of a specialised intelligence, blockchain, the ecosystem Marseille Provence Chamber of Commerce especially the collaborative applications”, innovation ecosystem in particular in the of connected objects and robotics by 25 and Industry, Aix Marseille University and explained Thierry Billion, Senior Vice- area of logistics. immediately steering them towards the Grand Port Maritime de Marseille with President and sponsor of the Digital Culture international perspective; a view to further enhancing the existing port theme. This project will build on the various • Fostering open innovation by establishing ecosystem in France. CMA CGM decided initiatives developed by CMA CGM in the arrangements between major corporations to champion this innovative approach by Three themes were selected to guide the region: and the start-up so that they can innovate becoming a partner of this project alongside employees’ ideas: • Support of “Carburateur”, a business together; 6 other major international groups. incubator located in the Northern districts • Creating a genuine network of business In October 2018, Rajesh Krishnamurthy, • Customer Focus; of Marseille and created with support from and cooperation opportunities by Senior Vice-President of IT, presented the • Operational Experience; public authorities; establishing solid partnerships with the challenge to the start-up : • Digital Culture. • Partnership with Aix Marseille French Tech; various ecosystems and prominent figures • Partnership with The Camp, an innovative in innovation worldwide. “This challenge stemmed from a simple This virtual suggestion box was a resounding campus bringing together major corpo- and operational observation: shipping is success given that: rations, start-up, professors and researchers The support provided is customised to match very competitive and one major issue for • 379 ideas were deposited into the Bluebox; – cf page 62 – Fostering creative cooperation the needs of each independent business as it is the industry’s players is the optimisation of • 60% of the Head Office employees took with The Camp; prepared with a dedicated, expert and human- container flows, as several steps are required part in the competition by offering ideas, • Partnerships with global IT leaders such as centric ZEBOX team. Sector experts and the for the timely departure of the container from voting for or commenting on their favourite IBM and Infosys. ZEBOX mentor network thereby provide the the terminal [...]. The aim of this challenge is ideas. start-up with assistance on a daily basis. to improve the supply chain so as to provide The 3 selected projects subsequently took ZEBOX the best possible service to customers part in the Design Thinking phase. For 3 The start-up hosted by ZEBOX can draw and reflect the CMA CGM Group’s overall days and based on collaborative workshops, ZEBOX is an international start-up incubator on a solid network of partners; French and digitalisation policy.” the various groups refined their ideas, and accelerator that was created in Marseille international corporations from various Start-up had until late 2018 to submit their determined the user needs as well as the in 2018 by Rodolphe Saadé, Chief Executive complementary sectors including CMA CGM, projects. The selected candidates will be issues in order to achieve a design draft Officer of the CMA CGM Group. It works in the founding Corporate partner of ZEBOX, able to test and implement their solutions and a description of the various desired areas such as transport, logistics, mobility and Accenture, BNP Paribas, Centrimex and for a period of 3 months in early 2019 within functionalities. and X.0 industry. EY. This network of partners provide the The Camp and will be presented with a start-up with valuable business expertise and € 15,000 grant. Key partnerships signed As part of its incubation programme, ZEBOX grant them access to exceptional resources hosts 15 start-up for a period of 12 to 18 including experts, technologies, the possi- At the Salon des Entrepreneurs business months. An acceleration programme will bility of completing proofs of concept, busi- fair held in October 2017, Rodolphe Saadé be launched in early 2019 and will make it ness opportunities, international network, announced his intention to create a CMA possible to host 8 start-up for a period of 8 capital-risk, business angels, etc., thereby CGM start-up incubator in Marseille (France) months. fostering their development. “In terms of customer experience, we have to listen to and take into account the views of each customer, throughout their journey and their interactions with us.” Patricia PICINI, 11 start-up were selected for the incubation Head of Global Accounts, Customer Experience & Marketing programme and 4 for the acceleration programme.
Below is a list of some of the hosted start-up:
The annual survey carried out in late 2017 2. Customer satisfaction: was used to gather the opinions of over 23,000 customers in 180 countries. Based on
improving the customer Report Added value contribution over the chain 2018 Corporate Social ResponsIbility these results, CMA CGM carried out a more experience at each step thorough analysis of customer expectations via 1,700 interviews conducted in 2018. of the journey Service indicators have been established on this basis and dashboards are now used The “Customer Centricity” goal is a key to give customers greater visibility. They strategic priority of the Group. Within this therefore fall within a process of continued AltGR develops Smart Sailors SailEazy offers Triend, Transpare, context, a programme to improve the improvement. This approach was supported tools to automate develops digital self-service incorporated was founded in customer experience was launched to allow by a Customer Journey Mapping carried out the tasks of data solutions and sailboats via a in Lebanon, Morocco. This start-up CMA CGM to: with 11 customers. scientists. It seeks interfaces for highly flexible develops a travel is a marketplace to broaden access an optimum digital platform booking platform which establishes • Meet new customer expectations; New initiatives have been launched: to data science; management of and combines the that relies on contacts between • Stand out from competitors with an vessel fleets, crews advantages of recommendations shippers and innovative range of services; • CMA CGM invested in a new multi-channel and inventories rental with that of from a community forwarders. By • Capitalise on its closeness to customers. customer contact centre. It is fundamental 27 in all sectors ownership. Over of travellers. tailoring the digital to ensure consistency between the various connected with 100 members It seeks to features and tools Rodolphe Saadé, Chief Executive Officer of channels and this will benefit employees the shipping share a fleet of provide greater to the needs of the the CMA CGM Group, has set all his teams by lightening their work load and industry; fifteen sailboats transparency and business sector, the goal of becoming the No. 1 shipping line improving the quality of service provided. moored in authenticity via the Transpare reinvents of its customers. In 2019, this tool will be integrated into Marseille, Hyères, verified opinions the freight the e-commerce platform and will include Ajaccio and La that are collected; procurement The CMA CGM Group chose the TPM6 a self-service function. The first pilots were Rochelle. It is process as well conference to present its new “Customer conducted in 2018 in 4 countries. This worth noting as the current Centricity” strategy and also introduced phase preceded a plan for global roll-out that the start-up methods of the Customer Experience programme in the shared services agencies and centres just completed a cooperation driven by a powerful ambition: “Caring to ensure end-to-end service quality. fundraising round between Importers/ beyond Shipping”, working closely with our amounting to EUR Exporters customers. • To enhance the Group’s digital transfor- 1.7 M; and sector mation, which will provide interested professionals. It Therefore, CMA CGM prepared an ambitious customers with a fully digital service in aims to simplify transformation plan which will improve all 2019, CMA CGM also added twenty dealings between of its interactions with its customers. This new features to its e-commerce solution companies and involves changes to the internal structure, an throughout 2018. These include online provide greater acceleration of the training programmes and payment (gradually implemented in transparency new digital tools. each country), new simplified customer regarding costs and dashboards with a self-service reporting expertise. Customer satisfaction is a core concern module, new operational notifications of CMA CGM and as such the company regarding the transported goods, a has committed to improving its service shipment geo-tracking tool, a dynamic quality, through the performance of annual online support, the provision of all inland customer surveys and the establishment of rates, etc. Other features will be rolled out the Customer Charter defined in 2015. in 2019, such as the Geo schedule, instant booking confirmation, electronic B/L, etc.
26 6 The TPM conference, organised by the Journal of Commerce, is one of the shipping sector’s most important events. Over 2,000 vistors attended the eighteenth edition held in Long Beach, USA, from 04 to 07 March 2018, including some of our biggest customers. In addition, as a means of providing further better traceability and cost optimisation 3. Sustainable support to customers in the development of tools; their business, CMA CGM has created new • Cargo Value SERENITY: the first product procurement: establishing value-adding innovative services. Through of the SERENITY range intended to this strategy, the company can specifically compensate for unforeseen events during a lasting relationship address customer needs, thereby making goods transport; with suppliers and CMA CGM a key partner in their logistics • Reeflex : a new technological system for the chain. transportation of liquids via a bag installed subcontractors in a container; CMA CGM places fundamental importance before any agreement is made. In 2018, 6 new value-adding products were • : controlled atmosphere tech- Climactive in establishing a stable and long-lasting This charter is systematically included in the launched: nology, which maintains products’ fresh- relationship with its suppliers. To this end, the contracts. To strengthen its approach and ness up to destination by more rapidly re- • : the smart container. As a Group, purchasing advisors, suppliers and promote responsible behaviour amongst Traxens ducing the oxygen level within a container; matter of fact, the containers are series- subcontractors work in close cooperation for suppliers, the CSR contractual clauses • : to secure the goods and prevent equipped with top-of-the-line connected Bar locks this purpose. are added in the contracts and General thefts; technologies, serving to transmit data, Purchasing Conditions. • : offering tailored expertise almost in real time, regarding the position Reefer pharma The adoption of the Sapin II Law and the law and enhanced control for the pharma- (geographic location, etc.) and condition of on the duty of care of parent companies and ceutical industry. Mapping of procurement risks as a corner- the goods (temperature, impact detection, contracting authorities has led the Group stone etc.). Therefore, the customer benefits from to strengthen its oversight mechanism in In 2018, a mapping of “procurement risks” relation to the fight against corruption, was implemented at Group level, with the risk respect for human rights and the fight against assessment methodology used being that Specific training courses are organised per region to provide sales teams with the necessary environmental impairment related with its applied by the Group’s Risk Management expertise regarding these products. business activity. – cf. page 35 Compliance department. – cf. page 18 Risk management with requirements of the Sapin II Law. and mapping of the Group’s risks. Moreover, other actions implemented for customers were recognised during 2018. Strategically, the Group has opted to conduct Below are a few examples: this work simultaneously and in accordance This mapping of “procurement risks”: with a unique methodology in order to foster • Outlines the purchasing areas and regions; the adoption and implementation thereof. • Assesses the risks in terms of corruption, 28 economic sanctions, human rights, health The establishment of a Supplier Risk & safety, the environment, etc; Committee • Classifies the risks into segments associated During 2017, the Group created a Supplier Risk with a given category of suppliers and Committee in order to enhance the coordination intermediaries; of procurement risks within the Group and to • Determines the action plans to reduce the CMA CGM Mexico named APL honoured with the “Ship APL earns the highest score monitor the actions put in place. In addition risk level. “Carrier of the Year 2017” by Owner / Operator” Award at in equipment and operations to all the operational representatives from Wal-Mart – April 2018 the Seatrade Maritime Awards and wins the 2018 Quest for the purchasing department, this Committee The establishment of a supplier and Asia 2018 Quality Award aggregates the key stakeholders working in the subcontractor assessment system to During 2018, CMA CGM Mexico relevant areas of expertise (Legal, Compliance, enhance the steering of procurement risks received the “Carrier of the Year In April 2018, APL won the “Ship In October 2018 in Singapore, APL Audit and Risk, Human Resources and CSR An overall supplier and intermediary 2017” Award during the annual Owner / Operator” Award at the announced that it had received departments). Within this context, the Group assessment system has been established awards ceremony organised by Seatrade Maritime Awards Asia the 2018 Quest for Quality award has put in place the action plans regarding the and covers the aforementioned main risks. Added value contribution over the chain 2018 Corporate Social ResponsIbility Report Wal-Mart for its suppliers. This 2018. The award acknowledges from Logistics Management (LM) – regulatory changes involving suppliers. Since January 2018, the Group’s Central award highlights the high level APL’s excellent performance in Nashville, USA. Purchasing Department has worked, with of operational performance terms of innovation, customer APL earned the highest score in The Third-Party Code of Conduct to support from an outside consulting firm, on achieved over the year. Wal-Mart service, operations, commercial the equipment and operations strengthen its responsible approach developing a specific procedure aimed at used this evening, attended by development and environmental category among the 12 winning cf. page 36 The Group’s compliance policies. strengthening the steering of supplier risks. the managers of the ten largest protection. APL’s Chief Executive ocean carriers. In 2014, the CMA CGM Group created a Partner This procedure relies on a classification of carriers in the region, to set its Officer stated: “This is a Likewise APL has impressed Charter which outlines all of the Group’s CSR the purchasing categories based on three objectives for the rest of the year. momentus win as APL celebrates buyers of logistics and commitments and obligations as well as the risk levels (High, Medium, Low). 170 years of global shipping. This transportation services with expectations for its suppliers and subcontractors. award reflects the confidence that excellent on-time performance, Therefore, the suppliers consulted during calls shippers have in the APL brand. information technology and for tenders and those awarded contracts via At the heart of our customer-first customer service, posting above- other methods must sign this Partner Charter culture is APL’s innovative spirit, average weighted scores. which will live on for many more Ed Aldridge, APL’s North America years to come.” President, who received the award, stated: “This Award is an important benchmark of customer satisfaction and performance excellence.” 29 The “Business hold” concept The criteria used to assess the risk level are as follows: Should, after being qualified, a supplier board may ask the supplier in question to - Location: the countries in which the supplier operates represent a heightened risk in particular immediately prepare a full report on the - The level of sensitivity of the supplier’s business activity with regard to the compliance risk regarding the anticorruption or human incident, the potential consequences and rights theme, its status may be considered as the corrective action plans. The management The enhanced comprehensive supplier and intermediary assessment system will be “Business hold”. In this case, the purchaser will board may decide to suspend certain implemented in 2019 under the supervision of the Group’s Central Purchasing Department, carry out a more thorough investigation into activities for a given period or decide on more initially with a pilot period of 3 months before being gradually rolled out to the entire Group. the issue. If it is confirmed, the management appropriate actions. The aim is to harmonise the various practices and to have a common procedure applied at Group level.
The assessment system consists of 5 steps: support division, a 3rd level of analysis will be conducted, with the involvement The establishment of ➊ The “pre-qualification“, this step of the CMA CGM support functions is aimed at identifying the suppliers (finance department, legal/compliance monitoring indicators and intermediaries at greatest risk. It is department, CSR department). as part of a continued achieved with a tool that relies on country- In 2019, the purchasers will receive training specific indices regarding corruption, and guidance in order to quickly identifty improvement approach ethics, environment and type of activity. the areas for improvement and thereby develop progress plans with the suppliers. To measure the efficiency of the implemented 30 ➋ The step, includes “risk-assessment” actions, 5 monitoring indicators have been iden- the systematic sending of an assessment ➍ The fourth step is the step “Qualification” tified and cover the main procurement risks. questionnaire to all suppliers and and depends on the overall grade received by intermediaries. This questionnaire contains the supplier and the level of priority: • % of suppliers which signed the Partner Charter; several sections with the following themes: - For the suppliers who obtain an above • Number of assessed suppliers; general information, financial elements, average grade per area (approx. 60%), a • Average score of the companies assessed fight against corruption, economic standard qualification is issued and is valid by EcoVadis; sanctions, human rights, health & safety, for 4 years; • Average score of the companies assessed the environment, etc. This assessment - For suppliers between 25% and the previous by CMA CGM with Cscreen; questionnaire was developed with the threshold, a 2-year qualification is issued; • Ratio of suppliers at risk. assistance of all the relevant support - For suppliers below 25%, a 1-year quali- functions of the company (Legal, CSR, fication is issued. The pilot period will help to obtain a refe- Finance, Purchasing, etc.), and is enhanced rence point and define the required adjust- by feedback. ➎ The last step, the “Monitoring” step, is ments. These monitoring indicators will be Added value contribution over the chain 2018 Corporate Social ResponsIbility Report The whole of this information is recorded used to carry out watch and take advantage disclosed in the next report on non-financial in a single qualification report per supplier. of a dynamic system. As a matter of fact, information. given the fast-moving and ever-changing ➌ The third step is the “analysis” step. It is market, each supplier qualification may be carried out at a 1st level by the purchasers reassessed under the following cases: of the various relevant areas. In the event - Legal change of the supplier entity; of a more thorough 2nd-level analysis, the - Changes in the market environment (finan- purchaser will call on the support division cial, legal, CSR problems, etc.); of the Centrale Purchasing Department. - At the end of the qualification period Finally, for the complex cases or cases (mentioned above); which have not been resolved by the - In the event of changes to the contract. 31 In 2018
Strengthening of the Updated or created Code Training and whistle- Compliance organisation of Ethics, Partner Charter, blowing system (Ethics Anticorruption Code, Gifts & Hotline), fundamental Hospitality Policy, Third-Party for risk prevention Continued implementation of Assessment Policy, Conflict the measures and procedures of Interest Policy, Interest Achievement of the stipulated by the Sapin II Law representation Policy Group Vigilance Plan
The Compliance Department reports to Personal Anti- Economic Competition data the Legal Department corruption sanctions and is comprised of fif- protection teen legal practitioners at the Marseille head office and compliance officers Business Economic Competition Personal data worldwide. ethics and sanctions protection It is structured into four Anti- main components: Corruption
An exemplary approach to 33Code of Ethics: The Code of Ethics is the centerpiece of CMA CGM’s com- mitment to upholding the highest standards of business CMA CGM’s ethics, personal integrity and compliance in all of its bu- ethics and Foundation siness activities.
document The Code of Ethics is applied worldwide to all legal enti- compliance ties, subsidiaries, affiliates, partnerships, joint ventures and other business associations directly or indirectly controlled by CMA CGM. The CMA CGM Partner Charter contains the main principles of the Code of Ethics, and is intended for third parties.
The Code of Ethics applies to all individuals worldwide wor- king for CMA CGM, regardless of their management level, particularly the executive officers, managers and employees.
The Code of Ethics is available in French, English, Arabic, 32 Spanish and Mandarin. In 2018, the Code of Ethics was updated to take into account the changes which occurred regarding the fight against corruption, compliance with economic sanctions, competition law and personal data protection. “As a company, employer and responsible corporation, CMA CGM must be exemplary and must adopt the highest standards in terms of integrity.” 1. Business ethics - and anticorruption Rodolphe Saadé, 35 Chief Executive Officer CMA CGM has continued its efforts to strengthen its anticorruption compliance programme of the CMA CGM Group by adhering to the requirements of the Sapin II Law (A) as well as revising or creating specific Compliance procedures for the Group (B) while taking part in joint actions with other shipping players (C).
A. Compliance with requirements of the Sapin II Law
In 2018, the Group continued to towards identifying, assessing, ranking and develop an anticorruption programme managing the corruption risks to which the including the eight pillars of the French Group is exposed. It also serves to report anticorruption law, known as the Sapin to Top management and the persons in II Law. This anticorruption programme charge of Compliance, the information includes: needed to establish measures to prevent and detect the risks of corruption that are • The introduction of an Anticorruption appropriate for the identified challenges; Code of Conduct, forming an integral • The strengthening and updating of the part of the Binding Corporate Rules of procedures (due diligence) to assess companies established in France and the compliance situation of CMA CGM’s concurrent updating of the Code of Ethics. partners, intermediaries, suppliers and The Anticorruption Code of Conduct customers; contains rules applicable to the fight • The introduction of internal and external against corruption and influence peddling accounting check procedures to ensure and the disciplinary sanctions in the event that the ledgers, registers and financial of breach; statements are not used to conceal acts of • The generalisation of a whistleblowing corruption or influence peddling; platform (Ethics Hotline) intended to • The updating of a classroom-based and gather reports from employees and e-learning training system intended for third parties concerning the existence of the execustives and staff who are most conduct or situations that conflict with the exposed to the risks of corruption and Group’s ethical rules; influence peddling; • The performance of a Sapin II risk mapping • The performance of an assessment of the under the responsibility of the Group’s anticorruption compliance system carried Risk Management Department, geared out by the Internal Audit Department. B. The Group’s The Gifts and Hospitality Policy describes C. The Group’s actions compliance policies the acceptable and prohibited behaviours. to guarantee compliance In 2018, the Group also revised its Conflict within the shipping In 2018, the CMA CGM Group revised and of Interest Policy. This policy involves created various ethics and anticorruption an annual conflict of interest disclosure industry policies. These policies form part of the statement which is mandatory for all Group’s compliance programme and persons considered as “key people” and contribute to the application of the Sapin a list of whom is included in the appendix. Since March 2014, the Group has been a member of the Maritime Anticorruption II Law. The 2018 Conflict of Interest Policy has Network, which is fighting to eliminate corruption in the shipping and port sectors. expanded the list of key people subject to The Maritime Anticorruption Network is a global business network working towards this mandatory annual disclosure statement. the development of a maritime industry free of corruption that enables fair trade to the All other CMA CGM Group employees must benefit of society at large. make a disclosure statement whenever they are faced with a potential risk of conflict of interest. Furthermore, in 2018, with The MACN the introduction of the Ethics Hotline, the In 2018, the network had over 100 members from the maritime industry. The secretariat of the conflict of interest disclosure statements MACN is based in Copenhagen and is carried out by BSR, a Non-Governmental Organisation. must be made via this new system. However, Its responsibility is to advance the initiatives and actions of MACN and it produces various an alternative procedure is planned for tools or communications that are made available to the members. The Code of Ethics, as mentioned in the employees who do not have access to the introduction, applies to the entire CMA Internet. These changes are included in the The work of the MACN is structured around three core areas: CGM Group. new Conflict of Interest Policy initiated in 2018. The Third-Party Code of Conduct is intended for all “Business Partners”, i.e. In 2018, the CMA CGM Group worked all individuals or organisations which/who on the development of an Interest do business with CMA CGM, in particular Representatives Policy. This policy will 36 the suppliers, intermediaries, dealers, take effect in January 2019. The Interest distributors, subcontractors, consultants Representatives Policy lays down the and joint ventures. Our Business Partners applicable code of conduct and ethical rules are required to join the Partner Charter. and specifies a “due diligence” procedure They are expected to strictly adhere to before CMA CGM hires any interest CMA CGM Partner Charter or equivalent representative. COLLECTIVE STRENGTHENING INTEGRITY rules of behaviour. – cf. page 29 The Third- ACTION CAPACITIES CULTURE Party Code of Conduct to strengthen its The CMA CGM Group has also developed responsible approach a compliance “due diligence” procedure Working with Assisting member Raising awareness of applicable to third parties with whom governments, companies in the challenges faced In 2018, pursuant to the Sapin II Law, CMA CGM intends to develop a business non-governmental implementing the and heightening the and following consultation with the Staff relationship. Given the sectors in which organisations and civil MACN anticorruption standards of integrity Representative Bodies (CE, CHSCT, CCE) it operates, CMA CGM has business society to identify principles, developing within the maritime and DIRECCTE, CMA CGM launched the relationships with many third parties and mitigate the root tools and sharing best community. Anticorruption Code of Conduct. The (customers, suppliers, subcontractors, causes of corruption practices within the An exemplary approach to ethics and compliance 2018 Corporate Social ResponsIbility Report An exemplary approach Anticorruption Code of Conduct is included intermediaries, brokers, co-investors, and improving network. in the Binding Corporate Rules of all CMA etc.). By exercising vigilance regarding the the operational CGM companies located in France. integrity of the third parties with which environment. it does business, CMA CGM is acting to In 2018, the Group revised its Gifts enforce its anticorruption policy. and Hospitality Policy. Whenever they are not reasonable, gifts, meals, travel, accommodation, marketing or recreational events can be considered as bribes. As a result, all CMA CGM Group employees must display honesty and transparency in these areas, so that their behaviour is not construed in any respect as the acceptance or the offering of a bribe. 37 2. Economic 4. Personal sanctions data protection • Close link with the geopolitical context For the past several years, CMA CGM has • Need to comply with European embarked upon a personal data protection and American regulations policy within its information systems.
CMA CGM implements the organisational > The dissemination of the policies over and technical means to protect the personal the Intranet: the documents comprising 3. Competition data of data subjects (customers, suppliers, the Group’s Compliance programme can be As a leading French player in maritime employees, third parties) and extends its consulted by all employees on the Group’s shipping, CMA CGM must carry out its An exemplary approach Report to ethics and compliance 2018 Corporate Social ResponsIbility The CMA CGM Group has made it its top priority to ensure compliance policy to subcontractors and Intranet, on a dedicated page. This page business by complying with regulations that its employees know and comply with competition law. subsidiaries to guarantee compliance with aggregates all the Group’s Policies and regarding economic sanctions. At the end of the maritime conferences in Europe in 2008, the European personal data protection Procedures and tools for all employees such Leveraging on a dedicated team within the Group developed a competition law compliance standard worldwide. The enforcement of as interactive charts to identify the countries the Legal Department and by raising the programme designed to guarantee that all the business this policy is supported by: subject to economic sanctions. At the same awareness of each employee to these activities of the Group’s entities and subsidiaries in time, the “Ethics and Compliance” space problems, CMA CGM has embarked upon a France and worldwide comply with competition law. The • An intra-Group data protection policy; on the www.cma-cgm.fr website provides security and compliance approach. programme applies to all Group employees, especially • A network of Data Protection Officers – DPO; all individuals with the Code of Ethics, the in connection with their relationship with customers, Partner Charter and outlines our various The ever-changing requirements in this area • An Audit Plan; competitors, partners and suppliers. Ethics and Compliance policies. call for constant monitoring of regulatory • A training plan for employees. developments, close cooperation with This programme has led inter alia to the creation of a The Data Protection Officer (DPO) appointed > Employee training. Training is also a key the relevant national and international division of legal practitioners specialised in competition by the Group ensures that this personal data element in the Group’s Compliace policy: authorities as well as empowerment of law within the Group’s Legal Department and to the protection policy is properly enforced. all staff through access to an interactive delivery of many classroom and online training courses. • Guidance is offered for all the Group’s platform allowing them to understand employees via classroom courses taught at the guidelines and good practices in the 39 Following the delivery of an e-learning programme from the head office and in the regions. These business activities involving the countries 2008 to 2018 which helped to train tens of thousands of courses are renewed on a regular basis and exports at risk. employees in France and abroad, the Competition Law 5. Compliance: and are intended for those employees Compliance division of the Group’s Legal Department who are most exposed to Compliance risks Moreover, CMA CGM has enhanced its a company culture developed a new general competition e-learning irrespective of their geographical location; approach for compliance with economic module based on a more interactive format and which achieved through • e-learning modules on Compliance are sanctions via a training programme with includes the differences in the legal systems of the compulsory for Group’s employees and e-learning modules made available to foreign companies acquired by the Group over time. raising awareness are regularly updated. In 2018, two new each employee and newcomer, as well as e-learning modules were introduced, one classroom training sessions. and training of all This online training module is supplemented by tailor- entitled “Introduction to personal data made classroom training sessions for certain categories employees protection” on European Competition of employees, subsidiaries and entities of the Group. Law and another entitled “Fighting The dissemination of the Compliance corruption”; At the same time, a good practices guideline, memos culture within the Group is achieved via • All new employees receive support in and regular publications on competition law news are various methods: their compliance training. Firstly, they are broadly disseminated within the Group. required to sign the Code of Ethics online > "Tone at the top": lManagers must set before starting their employment contract. In the event of doubt, employees are strongly the example and ensure that the projects They then receive a reminder email encouraged to consult the Competition Compliance that they supervise are handled ethically concerning all the e-learning modules division of the Legal Department or its local officers and comply with the Code of Ethics and on compliance that they are required worldwide to ensure that their actions are compliant. applicable laws. to take. Finally, as of December 2019, a > Adaptation of the compliance approach member of the Compliance Department Any breach by an employee to the competition rules based on the perceived risk: the sectors at will briefly explain to new employees the may be reported via the professional whistleblowing 38 risk of non-compliance should be highlighted Department’s actions during the various platform “Ethics Hotline”. by correlating the compliance efforts to the orientation sessions. sectors where the risk of non-compliance is Suppliers and service providers from whom the Group the highest based on our risk mapping. purchases goods and services are also required to comply with the Group’s policy relating to competition law.
Finally, the Group implements specific measures when it acquires companies or creates joint ventures with partners in order to adhere to the competition rules applicable to these economic transactions. Human rights Health, Safety & fundamental Environment & Security liberties
Suppliers & subcontractors 6. A whistleblowing system: Ethics Hotline 40 The reporting of potential or proven breaches The introduction of this new system will also to laws, regulations, policies or procedures go in hand with new policies, such as the of the Group are embodied in the Code Non-Retaliation Policy intended to remind of Ethics and encourages accountability employees of CMA CGM’s commitment amongst the Group’s employees in their to protecting whistle-blowers who make 7. Duty of care commitment to ethical conduct. reports in good faith of a potential breach to the law or internal policies. – Vigilance Plan CMA CGM provides employees and third parties with a website: As such, all employees are encouraged to In 2017, as soon as the law on the duty of care http://cma-cgm.ethicspoint.com use any means to report, by any method, by parent companies and large corporations Note: which allows them to: to Top Management, their line managers or was voted, a cross-functional and multi- detailed progress of the actions carried the Group Compliance Department and/or disciplinary work group involving the CSR, out as part of the vigilance plan is • Ask questions to the Compliance by any other existing channel, any breach to Risk Management and Purchasing divisions presented in the following pages. Department; the Code of Ethics, the compliance policies was created to meet the 5 requirements of They will be analysed during 2019. The An exemplary approach to ethics and compliance 2018 Corporate Social ResponsIbility Report An exemplary approach • Make a report via an online form; as well as the applicable procedures and the law. effectiveness of these actions will be • Make a report via a dedicated phone regulations, irrespective of their area and presented in the 2019 CSR Report. number (the phone numbers are listed per particularly: Their first tasks, to best enforce the Law on the country and are available on the Group’s Duty of Care, were to: website or on the intranet); • Fraud and/or corruption; • Ensure that whistleblowers remain • Anti-competition practices; • Identify all the actions undertaken by anonymous, if they so desire and if the • Respect for human rights; the Group regarding health, safety, the local regulations so allow; • And generally any potential breach to the environment and social aspects; • Access to a 24/7 platform. Group’s Code of Ethics or Policies. • Identify the scope and breakdown the Group’s business activities; As of 2019, the Ethics Hotline system will • Within the company: office-based activities, be used to gather statistics in terms of the operational, maritime and terminal activities; reports made. • Outside the company: suppliers and subcontractors. 41 1 2
Risk Assessment Risk Assessment Risk Assessment Risk Assessment mapping procedure mapping procedure mapping procedure mapping procedure
Monitoring Adapted Monitoring Adapted Monitoring Adapted Monitoring Adapted & evaluation & evaluation actions & evaluation actions actions & evaluation actions 3 Whistleblowing Whistleblowing Whistleblowing Whistleblowing system system system system
4 Regular assessment procedures with re- Appropriate gard to the subsidia- actions to mitigate Whistleblowing
Main actions ries and suppliers of risks or prevent and reporting system An exemplary approach Report to ethics and compliance 2018 Corporate Social ResponsIbility conducted Focus the risk mapping Focus severe damage Focus
Establishment of a whistleblowing system by the Compliance Department intended for employees and Assessment and integration In order to cover the entire The methodology applied by The Environment, Health and Appropriate actions are Health and Safety of third parties – cf page 40 - Whistleblowing system: of the risk of non-compliance Group and the diversity of the Group’s Risk Management Safety risks of the Group’s already implemented in people: Policy, annual goals with the Duty of Care law in its business lines, the scopes department includes the operational activities already connection with the policies and action plans. Prevention Ethics Hotline Additional measures for operations: 24/7 emergency the mapping of the Group’s used in the CSR report (in identification of existing form the subject of a risk and risks identified by the campaign via the reporting lines, 24/7 weather surveillance network, recording of major risks presented to the accordance with the materiality controls and the gathering assessment, environmental Group. of near misses, Accident Audit and Risk Committee on matrix) were adopted. of the action plans asso- analyses or preliminary Prevention Committee for emergencies concerning the following themes: Envi- ronment /Health & Safety /Safety of People /Geopoliti- a quarterly basis. ciated with the assessed risks. societal and environmental Revision of Group’s Code of the fleet, specific programme cal and Sanitary Monitoring. The risk assessment scope impacts studies Ethics and Partner Charter on the quality of life at the Consultation of the risk covers shore-based activities Presentation of the in connection with new (refer to III – Compliance workplace and the prevention mappings existing in the va- in France and abroad, Maritime mapping of the Group’s projects. regarding Business ethics of the asbestos risk, policy rious Group departments, in operational activities, the major risks (including the and anticorruption / B. The and procedures in connection particular the mapping of the Terminals, Logistics and risk of Non-Compliance with Participation in various Group’s compliance policies). with the travel of employees Group’s major risks and the suppliers and subcontractors. the Duty of Care law) every cooperative work groups to countries at risk (Travel- mapping of the HSE (Health quarter to the Audit and Risk such as Clean Cargo, Mari- Revision of the Third- safe), etc. Safety Environment) risks. 5 Human Rights risks, 5 Envi- Committee as well as the Di- time Anticorruption Network, Party Code of Conduct, ronment risks and 6 Procure- rectors and Auditors during ContainerShip Safety in particular the suppliers Environment: crisis mana- 43 Assessment of the risks ment risks have been identified the Audit and Accounting Program, Cargo Incident and subcontractors, which is gement plan in the event of relating to fundamental as part of this exercise. The Committee meetings. Notification Scheme, or the included in the contracts and major pollution, programme Risk Assessment freedoms, health and safety main risks are as follows: Business Actions to Stop systematically signed. to equip the entire fleet mapping procedure of people, and the environ- Monitoring and regular Counterfeiting & Piracy. with ballast water treatment ment which are not covered • Risks for the health and update of the mapping Creation of contractual system, policy and goal to by these mappings based of HSE risks (Health Safety reduce CO emissions per safety of people onboard clauses and revision of the 2 on the Environment) by the Global Monitoring methodology of the owned vessels and at the General Purchasing Condi- transported container by Adapted Group’s Risk Management terminals, Security risks Environment & Sustainability tions at Group level. 30% between 2015 and & evaluation actions department. abroad. department. 2025, investment in Liquefied Natural Gas-powered vessels, • Risks of pollution and 5 With regard to Suppliers and Discussions on the Duty of scrubbers and better-quality damage to biodiversity: Whistleblowing Subcontractors, a mapping Care law with our partners, fuel especially in relation to system hydrocarbon pollution or of the risks was carried out suppliers, customers and the Sulphur 2020 regulation, pollution through the loss in 2018. A pilot assessment other stakeholders. dismantling policy only in of containers, pollution by with 120 suppliers was also shipyards which have been vessels, pollution of the soil. initiated via the EcoVadis tool. Enhancement of the Group’s audited and certified to be • Risks associated with the Responsible procurement compliant with the guidelines climate: CO2 emissions, programme. – cf. page 29 of the Hong Kong conven- physical, technological, regu- Sustainable Procurement: tion, etc. System to track the implemented latory and financial risks. establishing a lasting rela- measures and assess their effectiveness • Risks associated with the tionship with suppliers and Fundamental freedoms, use of subcontractors/ subcontractors. working conditions: conti- suppliers/ service providers nued dialogue with the staff who may not be compliant representative bodies, trade • The tracking of the mea- • Integration of the Law with the law. union agreements concerning sures and the assessment “Devoir de Vigilance” in working time organisation, of their effectiveness the internal audit work • Risks associated with the procedures for compliance are already performed program & in the auditors dismantling of vessels, with the Maritime Labor upon the monitoring of and correspondents health and safety of Convention regulations for the responses to the training program. workers, pollution, working under the seagoing personnel. identified risks, • Planning of an internal conditions and fundamen- responsibility of the various audit mission to evaluate tal rights. organisations. Responsible procurement: the progress of the the pilot assessment carried • In addition to the various implementation of the out in 2018 will help to iden- existing committees including Law “Devoir de Vigilance” tify the appropriate actions to the health, safety and within the Group. be implemented as it is being environment committee, • A non-exhaustive list of the risk management rolled out in order to prevent performance indicators is the risks related to the duty committee and the suppliers available in this CSR Report. 42 of care. The programme is committee, a Duty of Care coordinated by the Group Steering Committee has Purchasing Department and been created comprising the Supplier Risk Committee. Top Management as well as the Legal, Audit and Risk, Purchasing and CSR depart- ments. This committee is responsible for developing the Duty of Care approach within the Group. In 2018
The commitment • 37,092 employees worldwide, • Telecommuting system experimented including 4,905 at sea in Marseille and Le Havre • 6 Partnerships with Prestigious French • Attractive employer: “Happy Candidates of our employees Universities 2018” for France • 212,342 hours of training received • Company Mobility Plan by employees in 2018 • Launch of a worldwide simplification approach • “We are shipping”: female leadership transformation programme
The CMA CGM Group’s global reach, its wide range of business lines and large number of business activities 44 foster employee career development on shore and at sea. The Group’s workforce is divided into 3 large categories7 with different and complementary activities and jobs. These are: Breakdown45 • Office-based activities: the support functions at the head office, regional offices, network of agencies of the Group of the workforce and its subsidiaries; per type • Maritime and shore-based activities (ports and terminals, of activity logistics and intermodal activities (road, river, air), etc.).
Shore-based activities
12 %
13 % Maritime activities Breakdown of the workforce Office-based per type of activity activities
CMA CGM
75 %
7 The Group’s entire consolidated workforce, i.e. 37,092 employees The commitment of our employees 2018 Corporate Social ResponsIbility Report 47
th 32% 0,2% 2,3% 4,9% 2018 29,6% 19,8% 11,2% men and women image and reduce t image and reduce he status gap between GENDER EQUALITY to feminise the Group's 14 <20 20 – 29 30 – 39 50 – 59 >60 No age reported 40 – 49 Age anniversary, it is partly due to the diverse anniversary, profiles and ages of its employees that the foundation. solid a such acquired has Group As over 60% of employees the are Group’s between 20 and 40 and mentoring initiatives have conferences years old, “expert” talents young to support been developed and foster the transfer of expertise. B. Intergenerationality B. Intergenerationality Within the Group, the and age of years 37 is employees the average age average number of of years of In service is 2018, 7. the Group celebrated its 40 11% 14% 19% 13% 43% 2018 different generations different INTERGENERATIONALITY INTERGENERATIONALITY transfer of skills between the transfer of skills between to develop knowledge and the to develop knowledge
13 France (except France) Europe Africa – Middle-East Americas Asia - Oceania Region In 2018, the workforce increased in Oceania Asia, and the Americas, as a strengthening result of of the staffing levels within services centres. the shared A. Multiculturalism people of consists workforce Group’s The 140 across spread 149 nationalities, from countries. As multiculturalism is a initiatives have of richness for the Group, source been developed, particularly via training to facilitate dialogue and tools, in order optimise communication, not only within but also with its customers and the Group all its stakeholders. by region: of workforce Breakdown of different foreign foreign of different INTERCULTURALITY INTERCULTURALITY encourage exchanges partners' culture and thus partners' culture to improve understanding to improve Breakdown by age: Information available for 95% of the C&Me shore-based workforce – i.e. 77% of the Group’s consolidated workforce. – i.e. 77% of the Group’s workforce C&Me shore-based by age: Information available for 95% of the Breakdown Breakdown of workforce per region: Information available for 100% of the C&Me shore-based workforce – i.e. 81% of the Group’s consolidated workforce. consolidated Group’s the of 81% i.e. – workforce shore-based C&Me the of 100% for available Information region: per workforce of Breakdown 13 14 The strength of the CMA CGM Group lies in Group of the CMA CGM The strength working Women and Men the of diversity the there. Diversity plays a fundamental role in guiding the Group’s strategy. As a source it helps us to of inspiration and innovation, customer expectations, better understand transport tailored them to offer and solutions and high-quality diversity services. within the The Group multi-culturalism, and gender equality, is defined by to foster in order intergenerationality emulation to enable mutual enrichment. strives to give The CMA CGM Group they everyone the same opportunities so can avance in the organisation. Our Code expand aim to our explains clearly Ethics of diversity and equal We opportunity. derive and protecting our integrity by respecting as the fundamental rights and freedoms instituted in the Universal Human Declaration of Rights. Through this any to eliminating have committed we declaration, on discrimination of any kind, based gender, class, race, disability, nationality, and political views. age, religion anti-discrimination the Group’s broadly, More policy is based on the principles of freedom for and retention of opinion, job placement per disabled employees and job equality as the collective bargaining agreement. have been put in place such, many projects As underway between and continuous talks are bodies and the personnel representative in-depth more management to address of action for the labour climate and areas in general. the work environment created Group CGM CMA the 2017, May In the “Diversity for a committee. better performance” The goal of this Committee is to make of performance for the diversity a source of 3 areas around and is structured Group focus: 2. Diversity 479 2018 2018 4,424 4,903 37,092 people. 494 12 2017 2017 4,019 4,513 34,647 people. The total 8
employees. 10 people and the number of and the people 11
was 37,092 9 French seagoing staff French Group total workforce workforce total Group Incl. international seagoing personnel International seagoing staff International seagoing staff Total seagoing employees Total Regarding seagoing staff: Regarding As of 31/12/2018, the number of seagoing amounted to: staff The upward trend in the number of seafarers the number of seafarers in trend The upward in can be explained by the slight increase vessels as well as an adjustment of the calculation methods. The number of new hires amounted The number of new hires to 8,208 As of 31/12/2018, the number of Group As of 31/12/2018, the number of Group employees was 32,670 1. Workforce number including international seagoing staff
departures amounted to 6,337 departures 46 Number of new hires: Information available for 100% of the C&Me shore-based workforce – i.e. 81% of the Group consolidated workforce. – i.e. 81% of the Group workforce Information available for 100% of the C&Me shore-based Number of new hires: consolidated workforce. – i.e. 81% of the Group workforce Information available for 100% of the C&Me shore-based Number of departures: International seagoing staff: seagoing staff with a permanent employment contract or a contract with CMA CGM or all its subsidiaries: these employees with a permanent employment contract or a contract with CMA seagoing staff International seagoing staff: Group consolidated workforce excluding international seagoing staff, i.e. French shore-based + seagoing staff – i.e. 88% of the Group consolidated workforce. consolidated Group the of 88% i.e. – staff seagoing + shore-based French i.e. staff, seagoing international excluding workforce consolidated Group International seagoing staff: seagoing staff with a permanent employment contract or a contract with CMA CGM or all its subsidiaries: these employees subsidiaries: these its or all CGM with CMA contract a or contract employment a permanent with staff seagoing International seagoing staff: work on the vessels of the CMA CGM Group fleet or, on vessels of other ship owners, which carry out occasional operations with other entities of the Group. the of entities other with operations occasional out carry which owners, ship other of vessels on or, fleet Group CGM CMA the of vessels the on work work on the vessels of the CMA CGM Group fleet or, on vessels of other ship owners, which carry out occasional operations with other entities of the Group. the of entities other with operations occasional out carry which owners, ship other of vessels on or, fleet Group CGM CMA the of vessels the on work 12 9 10 11 8 C. Gender equality In 2018, on the United Nations’ International Day of Persons with Disabilities, the CMA With women representing 45% of the CGM Foundation and the Human Resources Group’s workforce, and 13% of employees Department invited employees of the Tower in a management position, the CMA CGM to take part in a round-table discussion Group has committed to fostering gender about disabilities. This informal event gave equality at the workplace for many years. employees the opportunity to discuss this This commitment is demonstrated by a issue, share their experiences and report strong recruitment, promotion and training any difficulties. As a further step, the Group policy as well as the organisation of events Human Resources Department initiated such as themed lunches, as a time to share, a working group in December 2018 on talk and to inform, collect suggestions from the consideration of disabilities within the female employees and recommend new company. The goal is to ultimately increase actions (Day of the Woman, Pink October, awareness with regard to diversity as a Launch of a world conferences, range of communication source of richness, inspiration and creativity campaigns, etc.). for the company. simplification approach It is also worth noting that pursuant to the Copé-Zimmermann law laying down rules The commitment of our employees In late July 2018, the Group launched for gender balance in boards of directors 3. Work organisation an approach to simplify procedures with (over 40% of female directors), the CMA A. Quality of life at the workplace a view to improving its efficiency. This CGM Board of Directors is comprised of approach is intended for all employees, over 45% of female directors. whether on land or at sea, irrespective of Several steps have been taken to ensure a their department or subsidiary. The goal good work-life balance for employees. For 15 16 is to identify a problemlatic area which Gender 2018 example, a gender equality agreement may be simplified or improved within Female 45% specifies in particular the 100% coverage of the day-to-day working practices and paternity leave for shore-based and seagoing Male 55% thereby help to streamline the Group’s We are Shipping personnel, working time arrangements organisation. for pregnant women, provision of 12 49
cribs within a private daycare centre to The CMA CGM Group has set up the Report 2018 Corporate Social ResponsIbility A specific address has been created to allow We Are Shipping program, which aims D. Disability accommodate 18 children of employees employees to share their simplification to support women in their professional or the payment of an “early childhood ideas. This programme has received development and to promote harmonious The CMA CGM Group helps to support allowance” through the works councils, and strong support from employees since its internal diversity in management people with special needs during their the establishment of individualised hours introduction, with over 280 ideas received functions. professional career. At the head office for full-time employees (variable time slots) in just a few months. In 2018, 12 women joined this leadership in Marseille, the Occupational Health for all onshore institutions in Metropolitan transformation program. Through a department is responsible for identifying France. These ideas are studied during a whole series of actions and events (group people with disabilities. Once the Group simplification committee meeting, attended coaching, testimonials of women with has been informed, it steps in by offering Barring any emergencies, travel must be by the CEO of the Group and the entire an inspiring course, personal branding individual measures to adjust, adapt or planned in advance. The seagoing staff also executive team. At the end of the committee workshop, training, co-development, transform the work station thereby enabling needs fair warning of ship departures so meeting, some initiatives are approved to personalized HR...), they were able the relevant employee to retain his or her that they can make family arrangements as be implemented whereas others which do to work on their development plan job. Some of the top initiatives implemented expressed by the employees. The working not require strategic decisions are directly and create a network in France and include work station adjustment (foot conditions are discussed at meetings of the validated by the relevant departments. internationally with women occupying rests, headsets, ergonomic chairs, specific Health and Safety Committees attended by The Group provides regular updates on the responsible positions. The program is computer hardware, etc.) and the provision Union and Management Representatives. initiatives which have been implemented, already starting to produce encouraging of a designated parking space. and those underway or which have been results with mobilities and promotions, in Throughout the year, CMA CGM calls on Efforts to improve the quality of life at the validated and encourages staff to continue France and internationally and a general companies from the sheltered employment workplace mainly relate to ensuring better contributing to the simplification approach. awareness of the interest for all to sector to provide brochures or office follow-up of employees. For instance, a develop internally diversity. supplies to the head office. Furthermore, support process has been introduced to In 2019, a second group of 14 women will in 2017, the Group decided to grant two assist employees returning from long-term benefit of the same program. The We Are days of additional leave to employees absences which includes inter alia various Shipping program will also be deployed with a dependent disabled child. As of meetings organised between the human in several other countries. 31/12/2018, 22 employees have taken resources team, the manager and, as 48 advantage of this agreement. applicable, the occupational psychologist. 15 Breakdown of workforce per gender: Information available for 100% of the C&Me shore-based workforce – i.e. 81% of the Group’s consolidated workforce. 16 Agreements relating to the scope of the CMA CGM UES: CMA CGM SA (including the Paris, Le Havre and Marseille sites), CMA CGM Antilles Guyane, CMA CGM Agences France, CMA Ships, Traveller’s Club, CMA CGM Réunion, CMA CGM Logistics, CMA CGM LOG France. been provided with various information Company concierge service • It is comprehensive as it acts on the social- Company sharing forums and communication tools organisational levers in connection with the Mobility Plan to discuss their mobility on a daily basis work activity and assists employees with their (dedicated email address, community specific health needs. In May 2018, a specific mobility team network, information on the Group’s was put together in Marseille primarily to intranet, etc.). The CMA CGM Group has set up a company The joint Quality of Life at the Workplace improve day-to-day mobility and simplify The company has also signed a partnership concierge service at the Head Office to attend group has continued its work. Its role is to the use of public transportation. to the well-being of its employees, help them analyse the results of the social follow-up and Following a survey of employees, several save time and generally make their life easier Quality of Life at the Workplace surveys, while avenues have been explored and practical on a daily basis. issuing recommendations. solutions have been proposed. These The “Conciergerie by CMA CGM” offers a include: wide range of services to employees such as: Within this context, it carries on the initiatives implemented in previous years: ergonomy of • the “C-Park” in-house application: this agreement with “La Cité des Entrepreneurs” • Daily services: dry cleaning, ironing, shoe the vessels, Land-Sea relationship, Quality of application was developed by the CMA (an association bringing together the repair shop, sewing workshop, administrative Life at the Workplace onboard vessels. New Chamber of Commerce and Industry and procedures, etc. actions have been conducted to promote and Euroméditerranée) to take part in, meet, • Home service: child minding, homework raise the awareness of the crews to the Quality share and keep abreast with new transport assistance, house cleaning, DIY projects, of Life at the Workplace, good managerial The commitment of our employees alternatives. gardening, etc. practices, and the prevention of addictions. The HR team assigned to the Company • Delivery services: medication, flowers, Furthermore, this year, new measures were Mobility Plan will continue to work in 2019 take-away, etc. introduced, including the simplification of the and will rely in particular on the various • Other services: shirts and ties, coffee administrative processes on board, the analysis CGM digital teams as a means of optimising partnerships established with institutions capsules, stockings, etc. of accidents with fault tree analyses alongside the unused parking spaces at the CMA CGM such as: Métropole, Région Sud (Auditorium, the persons involved in the accidents. Tower (leaves, absences, business trips, etc.). working groups on Mobility, etc.). Every day, employees can consult with the Following a trial period in the Summer of concierge during the opening hours. They The CCP group has set up specific training for 2018, the application was officially launched Skills-based sponsorship program are also able, via a private connection, to the Quality of Life at the Workplace officers in November 2018. This solution serves to contact a 24/7 call centre which allows them onboard the vessels. This training has been reallocate an average of 80 parking spaces In 2018, the CMA CGM Group and the to book the services that they require. The tailored then transferred to the Maritime 51 per day, to employees who are in need of company foundation introduced the Skills services can be paid for online through a Prevention Institute for qualification purposes Report 2018 Corporate Social ResponsIbility a parking space; up to 150 spaces may be sponsorship programme. secure payment or via an e-wallet. and extended to all shipping companies. distributed per day during holiday periods. This programme is an effort to harness In 2018, 6,754 employees used the services employees’ professional and/or personal offered by Conciergerie by CMA CGM, with The Quality of Life at the Workplace officers • A dedicated car sharing platform: “Klaxit”. skills, to the benefit of a solidarity project. an average of 550 visits per month. onboard the vessels will be provided with The employees who are interested in the 10 volunteers in Marseille (under an awareness raising tools to conduct their solution and offering their services sign up indefinite-term contract for over 6 months prevention actions. The CCP group will act as and with the consent of their manager) a “back-up” support for these individuals. spent two half-days of their working time in one of the four partner associations of the A partnership with ESP Consulting, an scheme to help them with specific tasks. Partnership with Hôpital Européen expert sports and performance centre has This is a genuine commitment by the Group’s been implemented, in order to optimise the and input their journey into the application. employees to their civic responsibility to The CMA CGM Group has developed a health and physical performance of seagoing The first 20,000 kilometers are offered by support associations which help children in partnership with Hôpital Européen since personnel and reduce accident rate. ESP CMA CGM to employees. This solution was difficulty on a daily basis. 2015. This hospital is located close to Consulting set up a pilot group onboard a introduced in 2018 and enabled 82% of the – cf page 103 – Set-up of the Skills-based the CMA CGM Tower, thereby enabling vessel for three months to carry out its tasks, registered employees to receive car sharing sponsorship program. employees to receive high-quality medical be identified by staff at sea and gather from offers. care closeby. They have a dedicated the seagoing personnel the options for future email address to make appointments for improvement. The result obtained revealed an Furthermore, during the Mobility week, consultations and medical exams. improvement of 40% of the physical condition various communication initiatives were for all the assessed criteria. organised to pass on the solutions proposed The quality of life at the workplace and to promote the day-to-day mobility of of seagoing staff Another area for improvement for seagoing employees (open house days, information personnel is the food onboard vessels. A sessions, poster campaign in the elevators, This approach is both proactive and compre- test phase was conducted with direct supply creation of a community group, article in the hensive: of the vessels without using the services of a company’s internal newsletter, etc.). shipchandler. The outcome was a positive one In addition, employees in Marseille have • It is proactive as it seeks to improve the both in terms of the quality of the food and Quality of Life at the workplace as a whole the pricing. This experiment will be gradually and not simply to comply with the legal extended to the other vessels. requirements of preventing Psycho-social 50 Risks; Work organisation B. Psycho-social risk prevention C. Work organisation 53 for seagoing staff The Group’s policy on psycho-social risks Work schedules are routinely organised in line with the The work organisation for seagoing staff complies with the international is covered by an agreement signed on prevailing local legislation. Working time arrangements standards set by the Maritime Labour Convention 2006 which entered into 20 May 2010 (agreement on preventing have been instituted in some areas to enhance the work- force on 28 February 2013. psycho-social risks among CMA CGM home life balance and best meet the needs of customers. UES employees). The document provides Consequently, on the vessels: milestones for a preventive programme to Since 2007, the CMA CGM France UES (economic and measure, analyse and monitor psycho-social social unit) for shore-based staff in France has an Agreement • The number of working hours cannot exceed 14 hours per period of 24 risks. The recommended actions include: on Scheduling and Reducing Working Time. In addition to hours and 72 hours per period of 7 days; the legally mandated 35 hours of effective working time, • The minimum rest time cannot be less than 10 hours per period of 24 hours Preventing risks of workplace or sexual it ensures flexibility for employees who are paid a flat • and 77 hours per period of 7 days; harrassment and instituting a reporting rate. On a general basis for any organisation, managers procedure; must ensure workloads are properly divided and optimum organisation for their teams. The fleet management department adopted the rest time system, and the • Organising training courses for managers in psycho-social risk prevention. monthly working hours are monitored on board and on land to ensure our In 2016, a system was put in place to track, count and check compliance. Since the agreement was signed, a employee attendance on the Marseille site (Attendance Check Agreement). The working time remains unchanged, In order to see to it that seagoing staff get enough rest and avoid fatigue, psychological support unit has been set up. the Group initially set a monitoring threshold of 120 hours for ratings and The unit is available by telephone or online however it may vary by relatively 3 hours per week, provided 24/7 and is a completely confidential space for that the average time per month is observed. The arrival 150 hours for the hospitality department. employees to talk to someone of their choice. and departure time ranges of the employees have been In general, the Captain and the Chief Mechanic on board oversee that the In addition to preventing psycho-social risks, extended for greater flexibility in the management of standards established in the convention are followed. it embodies the Group’s sustained promise to their schedules. improve life in the workplace for its employees. Several long-term projects have been launched In 2018, the pilot programme for telecommuting in the Maritime Labour Convention company was introduced. 2018 Corporate Social ResponsIbility Report at both the individual and collective levels. The The International Labour Organisation (ILO) met in 2006 to create a priority areas to work on are work environment, Telecommuting is an innovative form of working organisation unique document aggregating all the obligations concerning the working 52 social climate and employee guidance. which enables inter alia a better home-life balance, As part of the 2018 action plan, the Group improved working conditions for employees and greater conditions and life onboard vessels. The Maritime Labour Convention commissioned an external training organisation independence in the accomplishment of their tasks. (MLC) was created, adopted and published, and this convention became to continue providing training to managers mandatory as of 2013. regarding good managerial practices. To this end, a pilot programme for telecommuting was experimented for four months for a limited number of International maritime law now has 4 pillars: An action plan on the Quality of Life at the services and employees at the Marseille and Le Havre sites. • SOLAS: Safety - Convention for the safety of life at sea; Workplace has also been introduced and is structured around optimising working 77 volunteers who met the eligibility criteria telecommuted • MARPOL: Environment - Convention for the prevention of maritime processes and procedures and specific for one day per week as mutually agreed between the pollution; The commitment of our employees employee and his or her manager. To support them in workshops dedicated to good practices for • STCW: Training and certificate - International convention on standards of reducing psycho-social risks. this process, a guideline has been compiled to answer all their questions. training, certification and watch-keeping for seafarers; • MLC: Social protection and working conditions – Maritime Labour The plan will be continued in 2019 with the occupational psychologist via the provision of As the deadline date for the end of the experiment Convention, i.e. the minimum living and working conditions for all seafarers training to managers regarding Quality of Life approached, it was found that the initial period of 4 In August 2017, 84 members of the ILO ratified this convention, representing at the Workplace: Identification of risk factors, months was insufficient to make an accurate and definitive 89% of global shipping. support to employees experiencing difficulties, assessment. Therefore, in October 2018, the trial period was emotional and relational intelligence. extended by 4 months as officialised by the signature of an amendment to the agreement covering the telecommuting MLC is organised into 5 parts: • Minimum requirements for seafarers to work on a ship; In connection with an individual approach, a scheme within the Marseille and Le Havre facilities. review will also be conducted on 4 areas relating • Employment conditions; to employee wellbeing: emotional balance • Accommodation, recreational facilities, food and catering; (dedicated conferences and workshops), • Health protection, medical care, welfare and social security protection; improvement of organic nutritional intake at • Compliance and enforcement. the company restaurant (dedicated dietician), physical activity (improvement of the facilities offered at the fitness centre), and sleep. Due to the high quality of its vessels, CMA CGM was able to implement the MLC well before the deadline date of 2013. During the certification phase, no major shortcoming was found and whenever the vessels are inspected, the Group demonstrates excellent working and living conditions onboard its ships. D. Social dialogue
Social dialogue is a vital part of company life. of organisations depending on activities. It mainly occurs by providing employees with Within this context, the Group has information. Strategy, economic, finance, implemented a “High Potential” social and organisational questions are identification process. This international addressed in a range of meetings attended review of “High Potential” is used by staff and management representatives. to determine the key positions and In addition to the staff representatives anticipate succession plans. 17 appointed at each entity , these include the Furthermore, the Group encourages the Group Committee, Central Works Council initiatives of all employees seeking to in France, Entity Commitees, the CHSCT embark upon new challenges. To this (Health, Safety and Working Conditions end, the Performance Interview, which Committee) and a variety of specialised joint has been officialised since 2015 in the commissions. new human resources management tool Pursuant to the International Labour C&Me, allows shore-based employees Organisation (ILO) conventions and by and their line managers to take stock of virtue of the principles instituted in its Code their goals, measure their performance, of Ethics, the Group undertakes to respect formulate new career development Finally, every year, the Group offers role and responsibilities of the Mentor. the freedom of labour unions and the rules wishes and express their training needs. of association in the countries where it employees expatriation contracts in a As support, a group for discussion and number of different countries. In addition sharing between mentors will be formed. operates. Mobility makes it possible to put skills to sharing best practices and standardising where they are needed within the Group. working methods, international mobility The Lead Program was continued in 2018, The Group’s mobility policy offers a variety 18 gives employees exposure to more with: In France, several agreements were signed of innovative career paths in addition to responsibility and the chance to widen their in 2018: regular types of mobility (expatriation, range of skills. • The launch of the 3rd promotion 2018 Corporate Social ResponsIbility Report
local contracts, secondment). As a result, deficated to the Americas (ended in late • 2018-2020 profit sharing agreement; employees are better able to expand The programme involves discussions, 2018); 54 • 2018 NAO agreement; their range of skills, hone their expertise conferences and targeted communications • The start of the 4th promotion (24 • Agreement on the telecommuting expe- or rise up through the ranks in managerial throughout the year, whereby employees participants for the Europe Middle riment within the Marseille and Le Havre positions. facilities; learn about the interests of international East Africa region). This CMA CGM mobility. Corporate leadership training • Amendment No. 1 to the telecommuting JUMP (Junior Upwards Mobility Program), In 2017, new programmes were introduced programme that was established as a experiment within the Marseille and Le as an innovative scheme, gives our to attract, retain and develop the talents partnership with Sciences Po Paris & Havre facilities young talents a chance to work abroad within the Group. Financial Times |E Business School CLA, • Modification of the binding corporate rules for 6 months to discover new jobs and The Sponsorship programme is aimed at is designed to prepare young Talents in of the Marseille and Le Havre entities and a different working environment. Every accelerating and easing the integration of managerial positions to cope with the other sites in France to comply with the year, some twenty employees take part
The commitment of our employees Executives. future challenges of our industry and Group’s Code of Ethics, the Anticorruption in this international mobility programme. Code of Conduct and the whistleblowing Mentoring is also available to support our take up positions of responsibility. talents in taking their job positions. policy. “SWAP” is another option whereby two These two programmes are based Since its launch in 2017, 91 Group employees from different entities trade on establishing a special relationship, employees have taken part in this jobs. confidence and mutual respect, and allow leadership programme, including 68 in experienced employees to share their 2018. 4. An attractive employer The VIE programme (Volontariat knowledge of the Group, their network and Work is currently being conducted on International en Entreprise – French intern- A. Career management their experience. the new directions to be given to the ship programme) sends young graduates programme for 2019. In 2017, the Group continued the abroad to our local organisations to In 2019, focus will be placed on developing development of career management, inter expand their knowledge, acquire new Mentoring within the company. alia by transforming its HR tools. A new interpersonal skills and help standardise A panel of managers will be invited to take talent management approach was proposed practices and procedures within the part in an information session on Mentoring for better support through the roll-out of Group. At the end of their contracts, that will be coordinated by the Group Human the C&Me “Talent Management” module we offer them career opportunities and Resources Department. At the end of this as an employer, in more than 40 countries a chance to take on new challenges to session, some of the managers, who have for over 15,000 employees. It involves help the Group grow. In 2018, 30 VIE volunteered to take part in the programme, succession plans, identification of talents, participants were stationed primarily in will receive a half-day of training on the assessments, optimisation and forecasting Africa, Asia, North and South America. 55 17 UES Maritime entities not including French seagoing personnel. 18 Agreements relating to the CMA CGM UES scope: CMA CGM SA, CMA CGM Antilles Guyane, CMA CGM Agences France, CMA Ships, Traveller’s Club, CMA CGM Réunion, CMA CGM Logistics, CMA CGM LOG France. Onboarding process Integration is an essential issue which 56 has emerged as a driving force behind the retention and development of our new talents. It is a decisive period of the Projet Feedback 360° employee’s career which must be given our entire attention and requires the involvement In 2018, the Group decided to embark upon of all stakeholders in the company. the development of an overall feedback In 2017, the implementation of the Espace MAPP culture in the company. “Onboarding” process in the USA, CMA CGM is also a member of the Espace and then in France, allowed the CMA MAPP Association in the PACA region Feedback 360° is an individual development CGM Group to professionalise the new (Mobility and Career Guidance). Espace
tool: employee orientation process. At present, MAPP supports the inter-company mobility The commitment of our employees even before arriving in the company, new of employees from several locally influential • Comparing self-perception (self-assess- employees receive special guidance for companies through shared experiences or ment) and colleagues’ perception serves “Thomas International” the accomplishment of administrative feedback enhanced by training sessions to identify the strengths and areas for questionnaire formalities and key information (via a digital also conducted by the association, thereby improvement of a participant whether he portal) in order to foster adherence to the offering a diverse range of career paths. or she knows them; In France, CMA CCGM has been using company’s culture and values. • The procedure is continued by an indiv- the “Thomas International” questionnaire In 2019, the “Onboarding” process will be In 2018, a new concept “Talents & Territoires” idual development plan around concrete for the past several years as a tool for introduced in Singapore and the employees was introduced in connection with Espace actions. making good recruiting decisions. This will have access to a new information portal Mapp. assessment tool specifically describes the which can now be consulted from C&Me. “Talents & Territoires” is aimed at The pilot project was launched with a behavioural module of an individual in a This new version of the digital portal will also establishing contact between employees 57
portion of the Corporate Officers in work situation. The result gives rise to a be implemented in the US and in France in of major corporations with local SMEs/ Report 2018 Corporate Social ResponsIbility Marseille so that, in turn, they can become constructive discussion with the candidate 2019. start-up so that these companies can take actors of the feedback culture within their which confirms or disproves the analysis of advantage of the specific skills offered by organisation. his or her professional profile. The “Thomas the employees. In summary, the project is APP” provides additional information which akin to a skills sponsorship programme by In implementing Feedback 360°, the supplements the assessment made by the local corporations for the local economic company would like to institute a long- recruiter. environment. term process with the teams and enable All of the HR teams abroad have been individual and collective development. trained in using the tool and propose it to all their candidates. Managing the careers of In 2019, the “Team” version of the questionnaire will be tested in Marseille. seagoing personnel: The “APP Team” questionnaire will serve The fleet management department regularly to pool all the profiles of a team, create monitors the careers of seagoing personnel. a profile therefrom and highlight the key A briefing is held at each embarkation points thereof (support points, comple- during which the validity of certificates mentarity of the profiles, areas to be is verified and a check is conducted to developed, etc.). Therefore, the tool and determine whether seafarers attended the its analysis enable a better understanding mandatory training sessions. The Group is of the various interactions of the team working to set up a “land-sea-land” career for better cooperation and to determine management system for officers of its owned the avenues for making full use of its fleet. They are given assignments at the development potential. head office to facilitate discussions between The operational HR teams in Marseille the various sectors and provide them with will be trained in using the tool and will future career opportunities on shore. subsequently coordinate workshops with the various teams. B. A competitive wage policy
In order to attract, retain and motivate talents, CMA CGM relies on a wage policy 20 59 that has 3 priorities: Reform of the Pay As You Training 2018 • Equality within the company Earn (PAYE) system Training of shore-based staff 85,067 • External competitiveness In 2018, the Group Human Resources Training of French seagoing staff 16,550 • Performance-based Department wanted to assist all employees remuneration Training of international seagoing staff 110,725 of the France scope in the transition process to the Pay As You Earn (PAYE) system as of Since July 2016, as part of the integration of Total number of hours of training 212,342 January 1, 2019 the APL teams, the CMA CGM Group has Therefore, in addition to the official campaign undertaken an overall approach to harmonise led by the Tax Authorities, at all the sites, salaries and health insurance, welfare and pension the employees were invited to information CMA CGM Academy helps all employees on a daily basis in all their job-related activities schemes, in approximately 40 countries. This sessions coordinated by Ernst & Young. and offers a wide range of e-learning or classroom-based courses with an instructor process was conducted via comparative studies The aim was to help them understand and to fulfil everyone’s needs. Its purpose is to guide the Group’s strategy particularly via regarding the levels (salary, social benefits) anticipate the change, outline all the impacts strategic actions such as the strengthening of human expertise combined with an agile and the structures for the relevant countries. of the reform and give them the opportunity organisation. This is obtained through the administering of agile training courses to As a follow-up, an audit was initiated in late to ask questions to a tax lawyer. support the projects (raising awareness to the agile method, Lean Six Sigma, etc.). 2017 for all the Group companies. In 2018, the audit report provided an exhaustive assessment of the Group’s supplementary 2018 Corporate Social ResponsIbility Report health care, welfare and pension schemes. • In 2018, CMA CGM Academy organised Department and CMA CGM Academy 58 training on the IFRS 16 standard. This is introduced a new compulsory training The approach to harmonise the health insurance a new international accounting standard module for the entire staff on the basic and welfare schemes continued in 2018 and for the finance teams (classroom and data protection rules. gave rise to the signature of an umbrella policy e-learning sessions), which must be • The CMA CGM Group is currently with an international broker on 1 December applied as of 1 January 2019. deploying Office 365 suite to all 2018. • All the Group’s operations worldwide employees. In addition to the Microsoft The broker’s scope will initially extend to 55 are subject to rules on competition office automation tools (Word, Excel, countries for which it will negotiate the policies law. To deepen employees’ insight into etc.), Office 365 also offers new online or policy renewals for the Group (life insurance these rules, CMA CGM Academy offers collaborative services such as Teams and / disability and health care). e-learning courses related to Competition Yammer. To guide employees in their
The commitment of our employees Compliance. familiarisation with these tools, a set of The CMA CGM Group is thereby demonstrating C. A strategic training policy • CMA CGM Academy offered employees video tutorials (from beginner to expert its desire to align the level of health and an overview of the general anticorruption level) is available on the Academy portal. welfare coverage for the Group’s employees The Group’s training policy is part of laws and principles and, more generally, This is intended to help them broaden their to market practices (similar industry), while a comprehensive strategy on career the laws and principles applicable in the knowledge of the new version of the office taking into account unique local and regional management and skills development. shipping sector. automation tools as well as to learn about characteristics. • The European General Data Protection the new tools which are fundamental to The CMA CGM Group is committed to Regulation (GDPR) lays down strict rules collaborative working. For information, on 31/12/2018, the payroll maintaining and strengthening the skills for the handling, storage and processing • In order to ensure optimum implementation amounted to: USD 1,886 M. of its workforce. In 2018, the Group of data. These rules apply to all CMA of the various LISA training modules (SAP), administered 212,342 hours of training to all CGM companies worldwide which process CMA CGM Academy has put together, its employees. The difference in the number the data of citizens and residents of trained and guided a network of “Super
19 of hours of training in 2017 and 2018 is due the European Union. The Group Legal Key Users” and “Key Users”. Payroll 2017 2018 to a change in the method of calculating the USD M 1,699 1,886 training hours.
20 The scope of the classroom training data corresponds to France shore-based and seagoing employees, i.e. 23.6% of the 2018 Group consolidated workforce // The scope of the distance training data corresponds to shore-based and World Crewing employees in C&Me, i.e. 94% of the 2018 Group consolidated workforce. It should be noted that the “training” data reporting process is being rendered more reliable with the ultimate goal of achieving a scope of 100% of the Group’s consolidated workforce. It is also worth noting that all the data related to the training of employees from all Group entities is ultimately intended to be collected by the C&Me tool. Finally, as the reporting methodology has changed for 19 Financial consolidation scope. the calculation of distance training hours, the 2017 data was not reused as it could not be compared with the 2018 values. Creation of the LAB Training The commitment of our employees The Lab by CMA CGM was also created in for seagoing staff: 2017. It is an area dedicated to innovation and transformation. This disruptive working space is based on 4 The Training for seagoing staff is based on pillars: STCW 2010 training courses (international convention that determines the required > Imagine professional certificates for each onboard > Experiment function), some of the certificates are > Create renewed every 5 years after refresher > Work together training, and after some training courses 61
needed for CMA CGM tools as requested by Report 2018 Corporate Social ResponsIbility The Lab offers a modular working area as CMA Ships (internal software, techniques, well as digital equipment providing access safety, simulators, etc.). Certificate Launch of blended to exclusive resources such as the work headed by the Academy’s teams in “Design training programmes training courses Thinking”21 mode. In 2018, the occupancy rate of the Lab was 72%. In 2018, the Academy also developed In 2018, the Academy also focused on the certificate training programmes for France. development of innovative blended training The development of this type of programme courses at the head office and in the agencies. D. Key partnerships requires a sizable investment from the The blended courses combine various types The CMA CGM Group proactively pursues dialogue between higher education and business, company as well as the training organisations of learning activities (e-learning, classroom- so it forms close working relationships with universities and colleges. to comply with a stringent regulatory context. based, various resources). These comprehensive and professional For example, the INSIGHT programme uses In France, the CMA CGM Group formed active partnerships with Sciences Po Paris, HEC development programmes are an asset for this type of training as it offers a course that Paris, Kedge BS, Aix Marseille Université, IAE Aix-en-Provence and IEP Aix-en-Provence. employees’ employability as their skills are is comprised of inspiring videos, e-learning These agreements created official links between CMA CGM and these institutions, and valued and recognised by the certification. modules prior to sessions and inter-sessions, provide a framework for the mutual commitments that they have made. The joint initiatives For example, the language certificate as well as regular and fruitful interactions take the form of conferences, round-table discussions, CMA CGM industry experts speaking training courses are validated by TOIEC (Test with the instructor and leader, via exercises in university courses, and business projects, the Group’s participation in the examination of English for International Communication), to be handed in and co-development committees or its taking part in opening ceremonies and gala evenings. the office automation training courses by workshops. TOSA (Test On Software Applications) and The same formula has been used for targeted Outside of the agreement, the Group also conducts occasional partnership actions by the managerial training courses by Titles training courses: sales representatives, attending conferences, round-table discussions and job fairs organised by top French such as Head of business administration maritime operational staff, line management universities (Grandes Ecoles) such as forums at ESCP, Polytechnique or EM Lyon. These and management issued by Kedge Business controllers. events give the Group the opportunity to expose students to the business and the wide School. variety of jobs in the industry.
21 Design Thinking is an innovation and management approach that is considered as a synthesis between analytic 60 thinking and intuitive thinking. It relies heavily on a co-creativity process involving feedback from the end user. E. An efficient information system
Since 2014, the Human Resources information In 2017, two new modules were deployed: The International system, C&Me, has been helping standardise Trade & Logistics HR processes around the world. This tool • “On Boarding”, dedicated to the integration offers greater visibility of all HR programmes of new employees. With the roll-out of this Master’s Degree (mobility, development, training courses) new module in the USA and in France, the th and fosters better performing and more entire integration process is now paperless, celebrates its 60 Hosting of 10 detailed management of human resources from the performance of administrative through elements such as objectives and formalities to the provision of practical anniversary grade interns The commitment of our employees skills management. Lastly, it encourages information provided to employees even On the 60th anniversary of the Interna- at the head office employees to be more proactive and before their first day at the company; tional Trade & Logistics Master’s De- effective in their careers. Throughout the year, the CMA CGM • “Work Force Analytics” is a reporting gree administered by Kedge Business Group hosts young high school students tool that offers each HR BP synthetic School Marseille, the CMA CGM Subsequent to the roll-out of “Talent in Marseille as part of their 10th grade information and key indicators depending Group attended a conference of ex- Performance” in 2015, two other modules internship entitled “Discovery of the on his or her scope. perts brought together to discuss were added to the C&Me HR series in 2016, world of work”. Exclusively reserved “Land and sea silk roads, economic providing HR teams and managers with the for the children of employees, this This tool also offers a new approach for and geopolitical reflections on the necessary leeway to steer the teams and initiative is highly popular with the the extraction of C&Me data with reliable China, India, Russia relations”. Over manage resources: employees of the head office. It is Fostering indicators shared by all the countries where the years, CMA CGM and Kedge Bu- a means for them to introduce their it has been introduced. 63 siness School have developed a close • “Talent Acquisition”, dedicated to recruiting Report 2018 Corporate Social ResponsIbility children to their working environment creative cooperation partnership specifically due to this and internal mobility; and for the children to find out what The roll-out of C&Me continued in 2018 to master’s course which is designed to with Thecamp • “Talent Management”, career management their parents’ jobs entail. It is also a reach over 30,000 employees managed in develop the skills of future managers tool. way for the company to provide insight Thecamp, located close to Aix-en- the tool across more than 80 countries. The / leaders in the international trade into its operations and increase its local Provence, is a campus for innovation roll-out mainly related to the Africa region and logistics sector. This is a key ele- The entire recruiting process is now presence. and interaction dedicated to the city of and some subsidiaries recently integrated ment for the company which is always paperless, from the recruitment request In 2018, the company also welcomed tomorrow and digital transformation. It is within the Group. on the lookout for new talents. to the selected candidate’s joining the pupils from the priority education area a unique and extraordinary place where company. C&Me allows managers to (ZEP – Zone d’Éducation Prioritaire) to students at the end of their studies and 2018 ended with the implementation of monitor the progress of their requests as do their 10th grade internship at the professionals go to receive training the new C&Me interface ensuring a better well as their recruitments. They are able facility in Marseille. Accordingly, several and information (training courses, user experience for the Group employees to review the application and assess them periods were identified during the year conferences, meet-ups, hackathons, (simplified design, more intuitive interface, online. It is also a new talent management to guarantee optimum organisation events, collaborative projects, etc.). compatibility with mobile terminals, etc.). initiative which is being offered to provide and make them feel especially welcome better support to HR and managers in their in the company. As a private partner and founder In 2019, the “Onboarding” module will day-to-day activities: talent acquisition, As of 31/12/2018, over sixty 10th grade of Thecamp, CMA CGM takes its be introduced in Singapore and the new training, performance, development and interns have been hosted at the head employees there throughout the year, digital portal will be migrated to the US and mobility. office. to get inspiration and to imagine, in France. The Group recruiting portal will 62 Furthermore, in 2018, the CMA CGM anticipate and build a desirable future also be entirely redesigned and will receive All the HR processes have been reviewed Group and the local Education Authority that is being made possible by new a new ergonomy to guarantee enhanced through C&Me, making them simpler, more signed an innovative partnership technologies. user experience (clearer view of openings standardised and leaner and thereby more introducing teaching of maritime – cf page 24 – Key partnerships signed. at the Group, compatibility with mobile in line with the key issues at stake for the transport in secondary schools. The telephones, etc.). Group. CMA CGM Group is delighted to have the opportunity to share its shipping experience and expertise with the teaching staff and students. Therefore, 2018 saw visits from groups of students and their teachers to the site in order to learn about the Group, its business operations and its wide variety of jobs in an international context. Excellence in
5. Awards and certifications safety and The Group received several awards in 2018, thereby honouring the initiatives put in place security to develop its attractiveness. 65
“Happy Candidates” “Happy Trainees” label label The CMA CGM Group Human Resources In 2018, the head office of CMA CGM was Department was awarded the 2018 awarded the “Happy Trainees” label for the choosemycompany.com / HappyIndex® / 4th consecutive year, in recognition of the Candidates accreditation. Group’s HR policy for interns and work-study students. The head office was ranked 16th in This new label recognises the quality of the Happy Trainees ranking which lists the the recruitment process established by the French companies recommended for the Group’s HRD which, for its 1st participation, quality of their internships and work-study was placed 2nd in the general ranking of the programmes. companies with over 1,000 employees. 136 interns and work-study students in Marseille answered a questionnaire conducted by Meilleures-entreprises.com. They gave their opinions on the quality of their experience at CMA CGM in 6 areas: career advancement, working environment, management, motivation, pride and enjoyment.
In the end, 92% of the interns recommend CMA CGM for the quality of its internships and work-study programmes. These results pay tribute to the Group’s specially designed HR policy for interns and work- 64 study students. In 2018
• “Safety First”: safety of • Significant improvement • Preventive security policy 1. Maritime safety people and property in the Group’s accident against a backdrop of frequency rate: fleet and major natural events and Maritime safety is governed by stringent local Indicators 2017 2018 201824 and international laws and regulations that • Triple Quality, Safety of terminals over the last 5 years geopolitical instability Average number 0.71 1.08 0.91 people and Environment are usually determined at the international of deficiencies certification for the owned • Maritime solidarity: 13 save level through the International Maritime per inspection fleet and rescue missions conducted Organisation (IMO) as well as at the regional Number of 4 11 7 and local levels. detentions These laws and regulations are complex and change often. The Group’s compliance is routinely evaluated through a series of In 2018, 11 ships were detained. Of these external audits by the authorities, the port of 11 ships, complaints have been filed for call country, classification societies, as well as 6 to have the ships released (including 4 through internal inspections and audits. REGULATORY FLEET CENTER, ships detained in Nakhodka). The 5 other CMPLIANCE ASSESSMENT OF RISKS Accordingly, each vessel is subject to three- detentions are as follows: & CERTIFICATION + & CRISIS MANAGEMENT fold regulations each with their own specific inspections: • CMA CGM FORT SAINT PIERRE was detained under the PARIS MOU due • International regulations (MARPOL, to poor deck condition. The ship was SOLAS, Code IMS...); released further to performance of the Excellence in safety and security • The regulations of its flag. The CMA repair work. = SAFETY CGM owned fleet is distributed under • CMA CGM TANGER was detained 14 different flags: primarily European under the VINA DEL MAR MOU and Singapore flags; due to poor training of the team in • Local or regional regulations. emergency procedures. At the time Goods People Merchandises the ship was detained, it was not As a means of checking the seaworthiness managed by CMA Ships but by a third- of the vessels, the port of call countries carry party Shipmanager. Therefore, it was not 2018 Corporate Social ResponsIbility Report out regular inspections onboard the ships: a CMA Ships crew that was manning the General policy Certifications Port State Control – PSC. If problems are ship. Since then, ship management has
66 67 Employee health and safety is a major detected, deficiencies are recorded and may been recovered directly by CMA Ships. Report 2018 Corporate Social ResponsIbility CMA Ships has undertaken an additional priority for the Group. Some operations and result in the detention of the ship. The ship was released after training of process of triple certification for its entire jobs represent significant risks, particularly the crew. scope22: • APL SAVANNAH was detained under the onboard vessels, as well as in the terminal During 2018, the owned fleet obtained PARIS MOU due to a crack in the body and warehouse operations. a deficiency rate per PSC (Port State • ISO 9001 Quality and Customer Satisfaction; of the oily water separator. The ship was Control) of 1.08, this same rate was 0.71 • OHSAS 18001, Occupational Health released after this crack was repaired. The CMA CGM Group’s safety policy is deficiencies per PSC in 2017. This increase and Safety; • APL HOLLAND was detained by USCG designed to avoid any accident which may stemmed from 2 factors: • ISO 14001, Environmental Protection. result in injuries or the loss of human life, due to failure to comply with security Excellence in safety and security whether to employees at sea or on land, • A problem with a PSC officer in Nakhodka procedures for the screening of people As part of the efforts to continuously improve or major damage to the vessels, goods (Russia). This PSC officer records at the gangway. The ship was released the QHSSE performance of the terminals23, or the environment. This is achieved by deficiencies which are not based on after the crew received training and an 2018 ended with 18 OHSAS 18001, ISO establishing a set of procedures in an regulations, and detains vessels based additional audit by the classification 14001 and ISO 9011 certifications obtained Integrated Management System (IMS) only on their flag States. If the United society. for all of the 23 covered terminals, i.e. which are periodically assessed and revised. Kingdom detains a Russian vessel, he • CMA CGM AMBER was detained under approximately 39% of the Terminals subject These procedures are common to all vessels will detain a British vessel in a spirit the TOKYO MOU due to safety exercises to the CMA CGM QHSSE policy which has managed by CMA Ships, regardless of the of reciprocity. Complaints have been (fire, confined space) which were not established a voluntary certification process. flag. filed to invalidate the deficiencies and done or which were poorly done. The The goal for 2019 is to maintain this level of detentions via the relevant flag States ship was released further to crew training certification. A dedicated organisation, the SSE (Security, of the vessels (France, UK, Cyprus). and satisfactory performance of the Safety, Environment) department, analyses These complaints have been sent to the exercises. and prevents risks inspects and implements Russian authorities as well as the Tokyo technical and organisational procedures in MOU secretariat. accordance with the regulations in force. • The rise in the number of PSCs in 2018 Every year, the department conducts audits increased the risk of deficiency. onboard the vessels and on land, to verify that the CMA CGM safety policy is properly applied. It is also in charge of operational coordination in the event of a major crisis.
22 CMA Ships scope excluding MERCOSUL Line. 24 Without the Nakhodka PSCs 23 Scope of the Terminals subject to the CMA CGM HO Terminals SSE policy – List available in the methodological note. Fleet Navigation Center: state-of-the-art vessels, to study navigation-related risks The severity of the maritime events is • On CMA CGM VOLGA, the ship’s cook technological resources and to proactively set the rules of access classified based on a matrix rated from was found dead in his cabin due to a Modern technological resources such to the ports. Indeed, this involves adjusting A to D, with D being a serious event. heart attack. as those related to the weather are the cargo capacity in order to guarantee This matrix takes into account 4 major • On CMA CGM OHIO, the ship’s captain developed in-house by the expert captains economic profitability while constantly categories of impacts: was found dead in his cabin due to a of the Fleet Centers in order to mitigate preserving the vessels, crews and the port heart attack. navigation-related risks. These resources environment. Therefore, the rules of access are then provided to the captains and concern the sizes of the ships (length, • Impacts on the health and safety of the • On APL SCOTLAND, a mechanic was vessel and the crew; found dead in his cabin due to a heart officers onboard the Group’s Vessels and width and draught), the necessary support • Environmental impact; attack. include navigation aid systems or decision- equipment (such as tugboats) as well as the • Impact on the public; • On APL SOUTHAMPTON collided with making systems for navigation during bad acceptable hydrometeorological conditions • Financial impact. a fishing boat of the coast of China. The weather. At the centres located in Marseille, (tides, currents, wind). In similar fashion, fishing boat sank, resulting in the death Singapore and Miami, experienced ship feedback is collected so as to provide the Between 2017 and 2018, the major maritime of 2 seafarers. captains constantly track the routes, analyse successive ship’s captains with the most up- events, rated D, slightly increased from 5 to 8. • On APL SOUTHAMPTON, a lieutenant risks and advise and support the fleet vessels to-date and relevant information possible. was found dead. This death was due to as well as the Group’s operational staff. suicide. Search and rescue Indicators 2017 2018 • On CMA CGM G. WASHINGTON, 138 The navigation centres are also tasked Because of the vastness of the oceans, the with ensuring optimum piloting practices Number of major maritime 5 8 containers were lost at sea in the Pacific various players in the shipping industry events due to bad weather. in terms of Fuel consumption, compliance have to work together to rescue people in • CMA CGM NORMA collided with with ship speeds in whale reproduction danger. At whatever time, the vessels may a ship in China. The other ship sank areas, compliance with the regulated have to be diverted to lend assistance to without causing any injuries. navigation areas. To this end, the experts another ship in distress. These operations In 2018, 8 major maritime events (D) at the centres have developed innovative are Search & Rescue (SAR) operations. In piloting methods, as well as methods for Excellence in safety and security were recorded: The SSE department carried out 2018, 13 operations were carried out by the kinematic monitoring of the vessels investigations subsequent to each of vessels in the owned fleet. associated with powerful analysis tools • On CMA CGM TIGRIS, a kilogram of these events to determine the causes and cocaine was discovered on the deck by recommend corrective actions to avoid their the dockers. The vessel was detained re-occurrence. for 1 week by the Chinese authorities to conduct an investigation. The investigation proved that the crew was not involved. This event was rated D due to the financial impacts of the delay in 69 vessel departure. 2018 Corporate Social ResponsIbility Report 2018 Corporate Social ResponsIbility
EMERGENCY EVENTS
24/7 Officer on duty > Assessment of the severity of the event
Communication to management 68 which take into account the geography, Stowaways Measures have been put in place onboard Triggering crisis > Positive meteorological elements and marine currents in real time, as well as the risks ships in order to prevent the boarding of related to piracy. This year, a new tool was stowaways, make regular searches to detect Crisis management > • SSE management > • Executive their potential presence and, as applicable, • CMA ships Management developed to anticipate Deadlines and • Line management • Communication congestions in order to reduce as early as to manage the stowaways found on board. • Finance Department Investigation/ Feedback Departement possible the speed and waiting time before These procedures have been included in the … the ports and thereby lessen the Carbon Ship Security Plan (SSP), which is set by the footprint via innovative actions. International Ship and Port facility Security (ISPS) code. In partnership with the Reefer Department, The ship’s SSP is a confidential document. A proven crisis management plan In the event of a crisis, the affected entity the fleet centers have become GDP- In 2018, 9 stowaways were found onboard Although the CMA CGM safety management will firstly call the 24/7 emergency hotline compliant (good distribution practices of vessels of the owned fleet. procedures are mainly preventive, the Group where it will be put in touch with the person pharmaceutical products) and now monitor also has a comprehensive plan for managing on call. This person will inform the various in real time very sensitive Reefers such as crisis situations. This plan contains responses departments of the situation, and based on Aquaviva, Pharmaceuticals & Superfreezer. to emergency situations onboard ships as the severity of the event, will decide to start well as at the branches and terminals. The a crisis unit bringing together all the relevant A team of ship’s captains with expertise in plan is tested at least once per year and parties. There is a dedicated room for this Vessel operation study and set the rules routine training sessions are conducted to purpose in Marseille and Singapore with all for nautical access to all the ports at which improve the response capabilities of the the necessary means of communication. The the Group calls. Given the introduction crisis management teams. In addition, the crisis will therefore be managed from this of new ships into the fleet, as well as the Group carries out regular drills in conjunction room. Once the crisis has been resolved, constant changes being made to ports and with the authorities to prepare for potentially an investigation will be carried out to terminals, a group of experts is needed with dangerous events. These include pirate determine the causes of the problem and strong experience in the operation of large attack simulations, emergency towing, fire to draw lessons therefrom in order to avoid and pollution. recurrence of the same event.
Every quarter, feedback on the events Shipping26 2017 2018 The accidents onboard vessels involving 2. Occupational health which occurred on board (accidents, near Frequency 0.9 1.25 seagoing staff are not the only ones counted misses and inspections) is compiled and rate of work by the Company. The accidents affecting and safety discussed among the owned fleets. This accidents - with shore-based staff working on board are also sick leave The Group’s prevention policy revolves gives seafarers the opportunity to draw from monitored and are reported and analysed. around risks analyses of safety and working each other’s experiences and put them in a Fatal accidents 127 028 conditions. This is a process of continuous better position to anticipate risks. Work accidents with leave of more than 24 improvement whereby all players, from hours and/or near misses considered very Top Management to seagoing staff and Training and awareness campaigns are For the maritime scope, the frequency rate serious are routinely investigated to analyse operational staff, are involved on a day-to- crucial components of prevention. They of accidents increased in 2018 compared the causes and to introduce the appropriate day basis. revolve around compulsory job-related with 2017, with a rate of 1.25 in 2018 against corrective and preventive actions. training courses, knowledge-building 0.9 in 2017, with a constantly growing The vessels of the owned fleet sail under sessions on land, on board, at the work number of vessels each year. There were different state flags, in international waters station, remote training tool and catalogue more accidents in 2018, however they were with seafarers from different cultures and for seagoing staff, special training less severe and involved shorter absences. nationalities. As a result, the standardisation courses for all second officers as well as a of the procedures and practices within our programme of regular drills and navigation In 2018, the Severity Rate was integrated fleet has become a major issue. With this in simulators. Seminars are held at the head as a performance indicator for vessels. This mind, the Accident Prevention Committee office and attended by officers from all the rate measures the number of days sick leave (APC) was created. This committee meets Group’s fleets. Attendees discuss a range further to a work accident per thousand of regularly and reviews results concerning of operational and onboard safety-related hours worked. For 2018, the score was 0.2. topics (analysis of reported events, safety
health and safety, regulatory changes, Excellence in safety and security feedback from the vessels and innovations management, etc.). which may improve safety onboard the Furthermore, the Group is an active member vessels. of the CSSF – Container Ship Safety Forum. This non-governmental organisation which 71 At the various maritime, inland or shore- was started in 2014 brings together major based entities and in accordance with shipping players with the aim of improving applicable regulations, all risks are identified, safety performance and container shipping assessed and covered annual prevention management practices. plans. These prevention plans address various During 2018 : 71 themes such as personal protection Report 2018 Corporate Social ResponsIbility equipment, chemical risks, psychosocial Terminals25 2017 2018 risks, addictions and noise exposure. Frequency 19.1 1 3 . 2 rate of work The main health and safety risks to the accidents - with employees differ based on the business sick leave activities: Fatal accidents 0 1
Shipping activities Terminal activities The frequency rate of work accidents with • Fire / explosion • Collisions between sick leave at the terminals managed by machinery and the Group decreased in one year due to pedestrians an efficient prevention policy for the entire • Falls from height or • Falls from height scope. 2018 saw an increase in the volumes tripping and falling and operations of the terminals. However, • Risks associated with • Manual handling the risk assessment approach implemented manual handling at the terminals serves to decrease the work operations accidents with sick leave. In 2018, a fatal
• Psychosocial risks • Tripping and falling accident occurred at one of our terminals. It was a collision between a pedestrian, • Movement and posture • Falling objects (mainly employed at the terminal, and a handling lashing bars) vehicle that was reversing at the time. The victim died further to the injuries sustained. • Noise / Vibration • Vibrations
• Electricity
25 2017 scope: Terminals subject to the CMA CGM HO Terminals SSE policy (i.e. a total of 18 terminals) excluding the Lattakia, Umm Qsar, Alterco, Manuco and Udemac Terminals // 2018 scope: Terminals subject to the CMA CGM HO Terminals SSE policy – List available in the methodological note. 26 2017 scope: CMA Ships excluding Mercosul // 2018 scope: Mercosul included. 27 Of the 3 people who died in 2017 as reported in the major maritime events, only 1 person falls within the scope of fatal accidents: a member of the CMA CGM Herodote crew, as the others do not fall within the scope of fatal accidents: a subcontractor and not a member of the crew and a person who died from a heart attack. 28 Of the 6 people who died in 2018 as reported in the major maritime events, none of them falls within the scope of fatal accidents: 2 non-crew member seafarers, 3 heart attacks and one suicide. • Goods qualified as dangerous by international regulations (International Maritime Dangerous Goods (IMDG) code) or national laws (CFR49 – Code of Federal Regulations) that impose strict APL receives Safety at regulations on transport (packaging, segregation, temperature, stowing, etc.); Sea award at the Crew • Potentially dangerous goods that require recommendations: chemicals Connect Global Awards in reefers, loading and admissibility of 2018 heavy goods, etc. to search for asbestos prior to any work • Controlled goods subject to regulations Near misses on materials and equipment likely to In November 2018 in The Philippines, APL on stopping or limiting motion (waste, A near miss is an involuntary incident which expose workers to asbestos. The terms received the Safety at Sea award at the Crew protected species, etc.). could have caused damage, injuries or and conditions of the preliminary search for Connect Global Awards 2018. The award is death, but which was narrowly avoided. asbestos are outlined in decree dated 9 May a recognition of APL’s best practices and Moreover, in June 2016, the VGM (Verified These near misses must be studied, 2017, supplemented by orders specific to initiatives which led to the reduction of risk Gross Mass) international regulation took recorded and the experiences shared to the maritime sector as well as an enforcing to human life at sea. effect and involves compulsory container Excellence in safety and security reduce the probabilities of similar incidents standard. CMA CGM is one of the ship APL reaffirms the emphasis placed on safety weighing prior to loading them on vessels. occurring. Most work accidents are owners which contributed to the preparation onboard the vessels and at the terminals This regulation is intended to prevent preceded by near misses which should have of this standard, and preliminary searches operated. accidents and loss of containers at sea. served as a warning. In 2018, CMA Ships have already been carried out on the RIF- “Through safety protocols and training, APL The Group anticipated this regulation recorded 1,950 near misses, an increase of flagged ships. encourages seafarers to adopt the right and therefore modified its information approximately 2% compared with 2017. An action plan is underway with support attitude towards safety management” said systems before the effective date, in order from an ad-hoc committee, the services of Dennis Yee, global head of safety, security to electronically incorporate the Verified specialised companies accredited to remove and environment at APL. Gross Mass data of the container sent 2018 Corporate Social ResponsIbility Report Asbestos risk these parts containing asbestos have been APL adopts policies and processes that by customers. This data is transmitted to 72 planned and the Group has also ordered safeguard early detection, prevention and the relevant people at each stage of the 73
CMA Ships took the initiative of updating regulatory inspections (e.g. measures to mitigation of associated risks to enable safe shipping process, thereby ensuring the Report 2018 Corporate Social ResponsIbility the Inventory of Hazardous Material (IHM) remove dust in the atmosphere). Dedicated and secure operations. security of the shipping chain. on the managed vessels of its owned personal protection equipment has been In 2017, APL reported its 10th consecutive fleet. This update is recommended by the provided and the operating process of the year of zero fatality and a very low injury To manage dangerous goods, the Group 2009 Hong Kong Convention and by the ships includes the potential presence of frequency rate. has a dedicated computer application European Regulation on ship recycling materials containing asbestos on board. In addition, APL joins over 160 shipping which is connected to the global booking IT adopted in 2013, which will soon enter into Asbestos has been prohibited onboard companies to provide a worldwide safety system. This application which electronically force following a ratification process by the French vessels since 2002; however this network that assists search and rescue incorporates the international regulation International Maritime Organisation (IMO). prohibition is not in force in all countries. The Excellence in safety and security coordinators in responding to emergencies makes it possible to determine the way During these expert investigations, materials ship building contracts and the contractual at sea. dangerous goods are declared then and products containing asbestos were conditions for purchase of consumables packaged and stowed in the container. As found on some ships. for the ships clearly prohibit the presence a means of managing and checking the 1 These stem from maintenance operations of asbestos in the building process as well 3. Cargo security million 500 thousand requests received per carried out by third parties or the deliveries of as the delivered parts. An “Asbestos free” year for the carriage of dangerous goods, The CMA CGM Group is commissioned to spares performed by unscrupulous suppliers certificate is supplied with new ships and the Group relies on a network of 7 dangerous transport a wide variety of cargo that range which do not comply with the Group’s part deliveries. Furthermore, since 2013, goods offices that are strategically located from consumer products to dangerous contractual conditions aimed at adhering to CMA CGM requires that classification worldwide to be close to our customers goods, whether manufactured or not. the regulations in force and prohibiting any companies perform asbestos surveys before and reduce the processing time of these Some cargo can represent a danger during installation of new equipment containing delivery of the vessels built in Korea, China requests. As a matter of fact, for each transport, so the Group put in place a asbestos onboard the ships. and The Philippines so as to verify that there dangerous goods request, the assigned dedicated organisation to inspect, analyse The Group immediately took measures is no asbestos on board. dangerous goods office must check whether and prevent risks related to the carriage of to protect the crews, inform the relevant the request complies with the IMDG Code, goods. For this purpose, the Group divides authorities (State flag, class, seafarers’ our in-house procedures, the various port goods into three categories: physicians and the Labour Inspectorate restrictions of the ports used during the for vessels flagged under the French carriage of said cargo and whether the International Register (RIF)), and the CHSCT dangerous goods are authorised by the for French citizens. charter party of the vessel(s) involved in the French law has introduced an obligation transport. If the goods must be loaded on a partner vessel, then we must also check Finally, the CMA CGM Group uses its best On land whether it is authorised by the partner endeavours to prevent unlawful carriage For the past several years, CMA CGM has procedures. of goods in accordance with the various developed an overall inland security policy. regulations and the Group’s Code of Ethics. This policy uses relevant and appropriate In early 2019, an improved upgrade of This mainly relates to goods on the IUCN measures and equipment to reduce the our IT application will make it possible to (International Union for Conservation of exposure to security, health, natural and respond in almost real time to over 60% Nature) red list of threatened species, those technological risks by the Group’s business of the requests for the loading onto our covered by Appendix I of the Convention on activities and staff across the globe. vessels of dangerous goods under the International Trade of Endangered Species 4. International security Accordingly, CMA CGM seeks to optimally Group’s shipping contracts while retaining (CITES) or the Washington convention, the At sea safeguard and protect everyone’s safety the current level of safety. At present, the United Nations Convention against illicit With the aim of preventing threats at sea and For example, the countries around timeframe is approximately one working traffic in narcotic drugs and psychotropic as a means of coping therewith, CMA CGM the world are categorised into various day. substances, and various UN rules on has developed a comprehensive range of criticality levels, depending on the risks embargoed goods. operational, legal and human measures. identified in each country. For each country, With regard to potentially dangerous goods, These measures are constantly reassessed appropriate measures are introduced to i.e. which may represent a risk such as the and tailored to the changing security secure the Group’s site as well as to protect out-of-size or conventional loads, reefers, context (piracy, traffic, etc.). Therefore, the the employees whether they are local, flexitanks, poorly declared goods, the risk of piracy is continuously monitored and expatriates or on assignment. Within the Group has provided its in-house customers analysed, and each solution is tailored to Group, 85 countries have been categorised with 3 experts who are tasked with providing appropriately respond to the identified hot as high risk. Any traveller going to these safety advice to the lines and agencies. bed of piracy (West Africa, Indian Ocean, countries must be registered with the South-East Asia, etc.). Group Security Department, and briefed as As regards the goods with controlled In 2018, approximately 266 piracy events applicable. movement, the 3 aforementioned experts were recorded worldwide, 223 of which In 2018, some 1,000 visits to high-risk are responsible for advising the lines, the included confirmed pirate attacks. Of these countries were managed in this way. 2018 Corporate Social ResponsIbility Report
agencies and the dangerous goods offices. 223 attacks, most took place in South-East Moreover, in 2017, the Group had to cope 74 Asia and in West Africa. 4 CMA CGM vessels with over 70 situations directly involving experienced acts of piracy over the elapsed its operations and/or staff, some of which year. required the set-up of an ad-hoc crisis unit. These situations related to natural disasters, armed conflicts, threats against a number of employees and emergency medical evacuation. Active involvement of CMA CGM within the BASCAP The Group works closely with recognised organisations to fight against counterfeiting and arms trafficking, such Excellence in safety and security as for example the BASCAP – Business Actions to Stop Counterfeiting & Piracy. 75
Active involvement of CMA CGM within the CINS The Group is a founding member of the Cargo Incident Active involvement by CMA CGM within CINDEX Notification System (CINS), an information sharing Cindex (inter-company expatriation centre) is a place for platform for large maritime companies (70% of carried dialogue and sharing of good practices on international TEUs) that enables rapid notifications of security and mobility strategies and policies by a network of safety issues with container-transported goods. This major European groups. Each member benefits from system has already significantly improved the quality the experience of the others, while maintaining full of transporting goods in containers. freedom of action and decisions, and observing absolute To fight against false declarations, the 17 CINS member confidentiality. It is an informal network between peers, companies took the initiative to set up a joint system based on pooled knowledge and trust. The fact that to detect poorly declared loads in order to improve Cindex co-opts its members guarantees a genuine sharing the overall safety of container ships. of concerns. In 2018
Commitment by CMA CGM to Group’s strategy in terms of Continuation of the pro- the energy transition: equip the conventional fuels, LNG and the grammes to reduce the impact nine 22,000-TEU vessels with scrubbers system. of the vessels, especially as re- Liquefied Natural Gas which are gards energy efficiency, reduc- scheduled to be commissioned Development of the Customer tion of atmospheric pollution, in 2020. It should also be noted Care Sustainability Program, underwater and ambient noise, that 4 LNG Containerships will including value-added services liquid and solid discharges. be commissioned in 2019. such as MyCarbon Footprint, the promotion of transport The Group was once again 2.5% improvement of the and logistics solutions or the rewarded for its environmen- Group’s energy performance in commitment and cooperation tal policy in particular via the line with the -30% goal between through Sustainability pacts French Ship Owners Association 2015 and 2025, and 6.5% in- and the Clean Cargo Working Blue Charter, customer awards crease in atmospheric emissions Group. as well as awards received in alongside the rise in business connection with voluntary port activity in 2018. No major oil pollution in 2018, programmes worldwide. however 138 containers were Introduction of an ETA 2020 lost during a storm at sea in programme as part of prepara- early 2018. tion for the Global Sulphur Cap in 2020, determination of the
The CMA CGM Group’s environmental policy relies on 3 strategic axes:
• Air : climate change and air quality • Oceans : ocean preservation and marine biodiversity • : innovative and environmentally-friendly solutions Environmental 77 Innovation General protection Policy Environmental protection is a key focus of the CMA CGM Group’s commit- ment to sustainable and responsible development. Major key issues for the Group include the conti- nued reduction of the global environmental footprint of all maritime Inauguration of CMA CGM ANTOINE DE SAINT EXUPERY and inland operations, regulatory compliance In September 2018, CMA CGM inaugurated its flag ship, CMA 76 CGM ANTOINE DE SAINT EXUPERY, the largest container ship and above all the an- ticipation of future in the world flying the French flag: regulations, and the • A 20,600-TEU (Twenty foot Equivalent Unit) capacity; development of more • End-to-end, the 20,656 TEUs represent a 123 kilometre eco-efficient logistics long chain of containers; chains with its customers • 400-metre long and 59-metre wide; and partners. • Longer than 4 football fields and bigger than the Empire State Building and the Eiffel Tower. Modern fleet, equipped with the latest technologies
in the water at the new speeds applied on CMA CGM ANTOINE the FAL; • A Becker Twisted Fin, a system placed DE SAINT EXUPERY in front of the propeller and serving to features the best improve water flows and significantly reduce the energy expenditure and CO2 eco-technologies: emissions (- 4%); • An electronic injection engine that • A system for the treatment of ballast water significantly reduces fuel consumption by filters and UV lamps used to release to the sea, water that is entirely free of
2018 Corporate Social ResponsIbility Report (- 3% on average) and oil consumption
(- 25%); living organisms and capable of impacting 78 marine biodiversity; • An optimised hull and bow shape: • A shore power connection system for The bulbus bow was therefore entirely operations when in port. redesigned to improve vessel penetration
CMA CGM chooses LNG Environmental protection protection Environmental The CMA CGM Group has decided to use Liquefied Natural Gas (LNG) to power its next nine giant 22,000-TEU ships which will be commissioned in 2020. Containerships Exhaust gas For the first time in the history of container shipping, a shipping company has made the ambitious CMA CGM has continued its choice of a cutting-edge technology for its large-capacity vessels. treatment systems external growth strategy with the acquisition of CONTAINERSHIPS. On 30 March 2018, the Group The building of the first ship in the series was officially launched with the “steel cutting” ceremony held In early 2019, 4 new LNG-powered took delivery of CMA CGM on 26 July at Jiangnan Shipbuilding in Shanghai, China. 1,400-TEU vessels will enter the PREGOLIA, a 2,500-TEU Ice Class fleet. This opportunity confirms vessel assigned to the Baltic sea. our desire for innovation and our It is the first vessel of the fleet to GREEN SOLUTIONS DEVELOPED BY THE GROUP choices in favour of LNG and be equipped with a scrubber. This also expands our skills and future investment is mainly driven by LNG experiences from building to the the fact that the vessel will serve first bunkers. at navigation zone exclusively situated in the Sulphur Emission Control Area (ECA). This system scrubs the exhaust gases, thereby capturing the Sulphur oxide (SOx) and nitrogen oxide (NOx) particles. These releases are then retained to be reprocessed on land. The fleet of scrubber-ready vessels has been supplemented with the entry into service of CMA CGM NEVA and 79 CMA CGM LOUGA. 1. AIR: Energy transition By the very nature of the transport business, which relies heavily of fossile fuels, energy consumption remains a major issue. It is an economic, environmental and public health challenge for the Group and is carefully monitored by its various entities. The Group’s energy consumption is directly associated with the level of both greenhouse gas and polluting air emissions. Climate change is a major issue that in the long run will result in more technical, regulatory, financial and operational restrictions, yet will also give rise to new opportunities for responsible and sustainable marine transport. 81 The CMA CGM Group now holds market leadership for innovation in energy transition.
A. Energy consumption - Another example of efforts to reduce B. Energy transition was the first year of reporting and each
energy consumption is CMA Ships’ limiting carrier has submitted the report of its CO2 the capacities of the main engines of its emissions to the European Union. The Indicators 2017 2018 2018 a. CO2 target, 2018 achievement largest vessels to adapt to the current compared with the set target Group has developed a dedicated reporting Fuel 7 783 8 259 6% navigation speeds. According to the International Maritime tool in order to ensure its compliance, in consumption - In 2018, the Group introduced a of the maritime Organisation (IMO), CO2 emissions from cooperation with the classification society 29 fleet ktons programme to install recovery boilers shipping account for 2.2% of global CO2 ABS. for the auxiliary engines (as for the main emissions. Energy / loaded 413 399 - 3%
2018 Corporate Social ResponsIbility Report 30 engine). Indeed instead of burning oil to During the MEPC 72 meeting (Marine Alongside the European system, an IMO TEU kg/TEU produce the necessary steam, the boiler will environment protection committee) held global CO2 emissions reporting system 80 recover the heat from the auxiliary engines In 2018, the fuel consumption for the CMA in April 2018, the IMO entered into an referred to IMO DCS (Data Collection exhaust gases, even when the main engine agreement regarding the reduction of CO System) will take effect in January 2019. CGM Group’s maritime activity was 8,259 2 is shutdown. This technology has been ktons, i.e. 6% higher than in 2017. With emissions associated with the shipping These two systems will coexist as of 2019, installed on vessels. regard to energy efficiency, we reported a industry, thereby contributing to involve the however discussions are underway between net improvement in the amount of fuel per sector in the fight against climate change. the European Union and IMO to harmonise The Navigation Support Centres’ role is This agreement sets a goal of– 50% of CO the two reporting systems. container carried that equals a 3% decrease 2 to anticipate extreme weather events and in 2050 versus 2008, a reduction in CO over 2017. 2
Environmental protection protection Environmental advise Captains in choosing a route and emissions per container of 40% in 2030 GROUPE CO EMISSIONS minimising the consumption of our vessels. 2 For many years now, the Group has and 70% in 2050, and the strengthening of 3 “Fleet centers” covering all the time zones Between 2005 and 2015 conducted several initiatives to reduce fuel standards for new ships. are manned 24/7 by seagoing personnel consumption which include replacing the assigned to the shore-based facilities. fleet, monitoring consumption, reducing CMA CGM is well aware of its challenges Moreover, a Group operations department -50% speed, optimising routes and improving and has therefore set a new ambitious goal has been set up in order to optimise all of 30% less CO per carried container by propulsion and hydrodynamic technology. 2 the Group’s operations (maritime and 2025. Following the 50% improvement of its operational management of the ships, performance in relation to CO emissions per - More specifically, in 2013, CMA CGM 2 decrease of port congestion, optimisation launched a programme to optimise its container and per kilometre between 2005 of the CMA CGM sea and land network). owned fleet primarily by modifying its and 2015, the Group has already reduced its CO emissions per carried container by Between 2015 and 2025 bulbus bows. These changes were done in 2 dry dock and help to maximise the ship’s 15% since 2015. hydrodynamics at applied speeds. 64 ships have already been modified, 4 of which in As a reminder, in 2015 the European -30% 2018. This innovation can cut fuel use and Parliament passed the Monitoring, Reporting and Verification (MRV) regulation CO2 emissions by 5-10%. Moreover, there is also a propeller change programme whose that requires companies to mandatorily report CO emissions in the direction of, design enables energy optimisation. In 2 2018, 25 propellers were changed. to and within the European Union. 2018
29 Global maritime scope – Owned and chartered fleet – 2018 annual consumption. 30 Loaded TEU = Remunerative TEU 2018 – Finance. 83 b. Overall assessment of waste (solid and liquid) by the vessels, C. Air pollution CMA CGM pre-empts and studies all business trips taken by employees, the technological solutions to ensure its of the Group’s CO2 emissions consumption of fuel oil specific to inland In addition to CO2, the Group is very compliance such as the use of low sulphur transport and the upstream phase of the concerned about sulphur emissions, fuel, installing scrubber systems or any The main source of greenhouse gas emissions production and transport of the consumed nitrogen oxides emissions and fine other alternative such as LNG propulsion. of the CMA CGM Group is the combustion fuel. particulates. Since these emissions create of fuel oil consumed by the vessels which issues for public health and air quality, > Test of new 0.5% sulphur content fuel increasingly stricter international and local oil formulations in cooperation with represents more than 85% of the Group’s In 2018, the fleet’s CO emissions were 25.76 2 regulations are being in force. our suppliers; total energy balance. Energy consumption million tons, i.e. an increase of 6% over > Ordering of 9 LNG-powered vessels; (mainly electricity) in relation to shore activities 2017. CO emissions per container fell by 2 a. Global Sulphur Cap 2020 > Delivery taken of three 2,500-TEU ships (agencies and terminals) is not significant 4% with respect to 2017. Air emissions of the In October 2016, the International Maritime equipped with hybrid scrubber systems in comparison with the consumption of the Group’s maritime activity, CO and SOx, are 2 Organisation (IMO) set a 0.5% cap for the On 30 March 2018, the Group took delivery 2018 Corporate Social ResponsIbility Report shipping fleet. independently verified by a third party, on a The main indirect sources of CO emissions for sulphur contained in the fuel used onboard of CMA CGM PREGOLIA Ice Class, a 2,500- 2 voluntary basis. 82 the Group are associated with the building of ships that will enter into force on 1 January TEU vessels assigned to the Baltic line. It is the vessels operated by the Group as well as the 2020. This will reduce the quantity of sulphur the first vessel of the fleet to be equipped production of fuel oil used onboard the vessels. Indicateur 2017 2018 Variation oxide from vessels by 85% and should with a scrubber. The Group opted for a In 2018, scope 3 represented approximately have a significant impact on improving air hybrid scrubber which can operate in open CO2 14% of the Group’s CO emissions. emissions32 quality, particularly for the populations living loop or in closed loop. This investment is 2 24.28 25.76 Millions of 6% close to ports and coasts. This regulation mainly driven by the fact that the vessel tons Assessment of the greenhouse gas is subsequent to the implementation of will serve a navigation zone exclusively 31 Annex VI of the MARPOL convention for the situated in the sulphur Emission Control Environmental protection protection Environmental emissions produced by the Group - in CO2 / carried 33 tons of CO eq emissions TEU 1.29 1.24 - 4% prevention of air pollution from ships. Area (ECA). This system scrubs the 2 Tons / TEU The Group has set up a dedicated working exhaust gases, thereby capturing the group (Countdown 2020 WorkGroup) sulphur oxide (SOx) and nitrogen oxide Indicators Breakdown c. Clean Cargo aggregating representatives from (NOx) particles. These releases are then Scope 1 85% many departments at the head office retained to be reprocessed on land. The Through the Clean Cargo Working Group (Bunkering, Operational Management, fleet of scrubber-ready vessels have been Scope 2 0.2% (CCWG), a discussion and collaboration Sales Representatives, Environmental supplemented with the entry into service platform, maritime carriers and major shippers Department, Legal Department, etc.) who of CMA CGM NEVA and CMA CGM Scope 3 14.7% are helping develop standard methods to are tasked with anticipating all the issues LOUGA. CMA CGM is conducting 3 pilot calculate air emissions in the sector. The related with this new regulatory obligation projects to install this technology on its working group represents over 80% of to ensure compliance by the Group: large vessels. Indeed, even though this > Scope 1 includes the emissions container shipping capacity. CMA CGM has purchase of fuel oil, cleaning of the tanks, scrubber technology has been proven in associated with the consumption of fuel been an active member since 2003. procurement prospects, etc. the land industry, it must be adapted to oil by the owned and chartered vessels Based on the methodology set up within the the high powers of our vessels. as well as the fuel oil consumed at the CCWG and to meet regulatory requirements terminals by the handling machinery; and customer needs, in 2008, CMA CGM set Scope 2 includes the emissions from the > up a monitoring system for its CO2 emissions In 2018, the average rate of sulphur in the consumption of electricity by the terminals, and performance (in g/TEU-km) which is fuel oil purchased by the Group was 2.42%. offices (agencies and HO) and the ships checked by an independent accredited connecting to shore power; organisation. The CMA CGM Group (via > Scope 3 emissions stem from the building APL) is a member of the CCWG executive of ships and containers, the production committee.
31 Scopes 1, 2 and 3 as set by the Greenhouse Gas protocol - http://www.ghgprotocol.org/ // It is worth noting that the Scope 2 and 3 data is 2017 data, and the Scope 1 data is 2018 data. 32 Total maritime scope, 2018 – Finance – Owned and chartered fleet. 33 Loaded TEU = Remunerative TEU 2018 – Finance EMISSION CONTROL AREAS
CO2 jusqu'a -25%
NO x EEDI SOx LNG tank -85% +20% -99%
0,1% ( ECAs and at berth ) Particules Fines -99% 0,5% worldwide *indice d’efficacité énergétique par rapport à un navire propulsé au fuel
biofuels and hydrogen. Fuel cells, batteries d. Sulphur and Nitrogen Oxide emissions and wind power are interesting options Environmental protection b. Shore connection c. Emission Control Areas which must be considered as secondary or In California, since 2014, local regulations To date, there are 3 main areas where sulphur Indicators 2017 2018 Variation back-up sources. require maritime companies to use shore emissions from vessels are regulated: Sulphur oxide The CMA CGM Group decided on LNG power instead of using on-board engines. The Northern Europe, North Amercia and, since emissions by ordering 9 LNG-powered 22,000 TEU (SOx) 378 400 6% vessels. initial threshold of 50% was increased to 70% 2018, China. Ktons in 2017, thereby reducing fuel consumption LNG has many environmental advantages and inherent air emissions by an additional China has established Emission Control in comparison to heavy fuel oil, such as the Nitrogen significant lowering of CO emissions, the 20%. To ensure regulatory compliance of our Areas (ECA) in its territorial waters, in order oxide 2 85
emissions absence of sulphur oxide (SOx) as well as Report 2018 Corporate Social ResponsIbility vessels and calls, thirty of CMA CGM ships to handle the recurrent problem of air 667 700 5% were equipped with alternative shore power pollution. This environmental programme (NOx)34 the substantial reduction of nitrogen oxide ktons systems. took effect on 1 April 2016 and requires (NOx) emissions and fine particulates. Our vessels fited with this technology connect vessels to use low sulphur fuel. As a true technological breakthrough in support of environmental protection, to shore in China on a voluntary basis in the Since 1 April 2016, the Group’s vessels In 2018, the fleet’s SOx and NOx emissions ports which are equipped with this system. calling at the Shanghai, Ningbo-Zhoushan, compared with the current fuel-powered were respectively 400,000 tons and 699,811 vessels, LNG offers: Due to this technology, some 28,000 tons of Suzhou and Nantong ports must switch to a tons. CO2, 14 tons of SOx and 35 tons of PM10 fuel with less than 0.5% sulphur content at • Up to 25% reduction in CO2; have not been released into the air. anchorage and at berth. • The reduction of 99% of sulphur emissions; The Group is studying the possibility of shore Since 1 January 2018, the obligation to use D. Alternative energy • The reduction of 99% of fine particulate connection to standalone systems supplying 0.5% fuel oil has been generalised to all The IMO’s decisions to limit the sulphur emissions; the electricity produced on site with gas Chinese ports. content of the fuel used by vessels as of 1 • The reduction of 85% of nitrogen oxide turbines. January 2020 to 0.5% and the ambitious emissions. The next stage of the Chinese environmental strategy recently adopted to reduce programme will take effect on 1 January greenhouse gas emissions by 50% in 2050 The vessels powered by LNG will comply 2019. Indeed, all vessels shall be obliged have directed the sector towards the search with IMO regulation aimed at reducing to burn fuel oil with a sulphur content of for alternative solutions to conventional fuel. sulphur emissions as from 2020. maximum 0.5% whenever they enter the In fact, there is clear global phenomenon These new vessels are the culmination of
Emission Control Areas. towards the reduction of CO2 , NOx, SOx over 7 years of work by our expert teams, All of the Group’s vessels comply with and particulate emissions. and ship building engineers, our seagoing the Chinese requirements, the necessary In light of these challenges, energy personnel as well as close cooperation with bunker purchases are anticipated in order to transition is a major issue for the shipping many technical and port partners. guarantee full compliance upon entry into industry as a whole and the CMA CGM force of the new requirements. Group in particular. The main challenges Alongside the building of new vessels, associated with the use of these alternative CMA CGM carried out risk assessments fuel solutions lie in the compatibility of their in coordination with the shipyard, the various environmental benefits with regard classification society and stakeholders to pollution, the availability of the required in the project to ensure proper conduct quantities for the sector and the cost of the of the project particularly in terms of the fuel. environment. To guarante the smooth 84 The most promising solutions are LNG, progress of the project, risk mitigation measures were listed and should be
34 Total maritime scope – Owned and chartered fleet – 2018 – Finance. Matrice de sévérité des pollutions
Impact Description 87CMA GM
Significant volume released D Very high Very significant and/or multiple surface areas 0 polluted implemented before the arrival of the first The prevention of these types of pollution ship in the series scheduled for the first is achieved through the equipment present Volume of oil released > 5,000 Litres C High 0 quarter of 2020. on board, human management, all the Significant impact operational and inspection procedures A training programme in accordance with which have been put in place. Released volume > 100 Litres B Average 1 the codes in force has already been initiated Localised pollution to enhance the skills of all future seagoing Firstly, the vessels are equipped with staff who will be promoted on these giant “SOPEP” (Ship Oil Pollution Emergency Released volume ≤ 100 Litres A Low 5 ships. The documentary system is also being Plan) equipment comprising dispersants, Minimum impact on the environment changed to include these new technical, rags, saw dust, protection goggles, shovels, operational and safety / environmental buckets, portable pump, absorbent pads, Number of events35 which led to accidental and fauna issues, associated with this technological gloves, bags, etc. releases to the sea36 in 2018: While the issue of protecting biodiversity development. Liquid releases are controlled with • A single event had a moderate impact on mainly stems from managing the risk instruments that comply with regulations, the environment. It involved fuel leakage of liquid releases or solid waste at sea, At the same time, the biofuel, hydrogen such as the oily water separator. It is used during refuelling; container ships can potentially impact and wind propulsion (Kite) solutions are also to control the maximum concentration of oil • Five other releases to the sea were biodiversity due to the pollution caused to being studied as the Group’s experts are in the water released at sea when the vessel reported but involved a low risk. marine species. convinced that the solution to the energy is en route, i.e. 15 ppm. Moreover, certain 2018 Corporate Social ResponsIbility Report transition challenges lies in combining the vessels feature a separator that is only 5 Indicators 2017 2018 a. Cetaceans and sea mammals 86 technologies. ppm. Human management and procedures Several programmes have been set up are fundamental in the prevention of Loss of containers in the United States and Canada for the 37 0 139 As part of a partnership with Yves Parlier and pollution. at sea protection of cetaceans. On the East coast, his company “Beyond the sea”, tests have CMA CGM’s vessels must reduce their been carried out to assess the feasibility The teams have entered into partnerships According to the World Shipping Council38, speed to maximum 10 knots in certain of the Kite rig ship pulling system of the with: 2,000 containers were lost at sea worldwide areas recognised as the breeding sites of Group’s vessels. • The Bataillon des Marins Pompiers (Naval every year from 2006 to 2013 primarily due cetaceans. Fire Brigade): firefighting and pollution to difficult navigation conditions or a rare Environmental protection protection Environmental exercises are organised on board as part of accident. In 2018, the CMA CGM Group In addition, on the West coast of the 2. OCEANS: preserving a commitment to continued improvement; recorded the loss of 139 containers at sea, of United States, CMA CGM has voluntarily • The Cedre (Centre de documentation, which 138 in a single event during a storm. committed to the “Green Flag” speed biodiversity de recherche et d'expérimentations sur reduction programme that was established les pollutions accidentelles des eaux - The loss of containers at sea is generally in the sanctuary close to the Santa Barbara A. Accidental release to the sea and Centre for documentation, research and associated with the shipper’s declaring islands. The Long Beach port has rewarded containers lost at sea experimentation on accidental water a lower weight of the container. The risk CMA CGM for lowering the speed of its Accidental releases to the sea and in pollution). This centre is based in Brest is also increased by bad weather. Every container ships with a compliance rate of particular oil pollution from vessels or (France) and CMA CGM personnel receives effort is made to prevent losing containers: almost 100%. terminals operated by the Group are the training there on an annual basis; weather watch, navigation centre, weather biggest threat to the environment. A set • Specific organisations, such as ECM, routing, onboard container security system. Furthermore, with support from the “Fleet of measures is in place to prevent this risk, acting as the point of contact between the The CMA CGM Group began talks with Navigation Center”, the Group watches such as fleet maintenance, routine drills and Group and the American Coast Guards. Armateurs de France (French shipping out for the areas where it is recommended simulations between land and the vessels, association) and the relevant authorities to to lower the speed of vessels. Whenever and a strong crisis management policy. further reduce the risk of losing containers at possible, the Group strives to lower its There are several types of marine pollution: sea. – cf page 73 – Cargo Security. speed and thereby limit the risk of collision • Fuel; in these cetacean protection sanctuaries. – • Oil; cf page 69 – Fleet Navigation Center: state- • Chemicals; of-the-art technological resources. • Sludge.
B. Biodiversity: protection of cetaceans
35 Events identified irrespective of CMA CGM’s level of liability. 36 Excluding containers lost at sea (reported further on). 37 The containers lost by the CMA CGM owned vessels are taken into account, the containers lost by chartered or partner vessels are excluded. It should be noted that the containers which fell into the waters of a port and then were recovered are not counted. 38 Survey Results for Containers Lost At Sea – 2014 Update- World Shipping Council. b. Endangered species CMA CGM preempted the entry into force To limit the carriage of endangered species, of this convention by installing ballast water 3. Circular economy the Group has set up procedures during the treatment systems on most new vessels, Circular economy refers to an economic concept which forms part of sustainable order intake process by which staff can give thereby ensuring that the water released development and which is aimed at producing goods and services while limiting an alert to this type of cargo. – cf page 73 – to the sea is fully free of any living organism consumption and the waste of raw materials, water and energy sources. As a shipping Cargo Security which may affect the marine biodiversity. and logistics operator, CMA CGM is an active player of the circular economy by providing services at all phases involved in the transport of raw materials, intermediate The United States have also implemented and finished consumer goods as well as end-of-life products, depending on the needs local regulations on the treatment of ballast of its customers. The Group pays special attention to the responsible use of resources, water. It approved 6 ballast water treatment raw materials and consumables. systems that comply with American regulations, which are more stringent than international regulations. The CMA CGM vessels are equipped with approved systems
and must treat their ballast water via one of MANUFACTURE these systems before releasing them into American waters.
CMA CGM CMA CGM The Group has put in place a schedule for installing the systems on its owned fleet,
in accordance with the requirements of Environmental protection the international convention and American Circular economy regulations. 81 vessels of the Group have in the CMA CGM already been equipped. Group RECYCLING DISTRIBUTION b. Other eco-technologies: FORS system, dual hull, additional tank for bilge water
In addition to the ballast water treatment CMA CGM CMA CGM 89
system, the owned fleet features many 2018 Corporate Social ResponsIbility Report 2018 Corporate Social ResponsIbility technologies serving to limit its impact on biodiversity. The “ FORS: Fast Oil Recovery System”, a pollution management technology, is a simple, reliable and safe system that can be CONSUMERS used at any time, via a system of standardised connections, to quickly recover the oil C. Eco-technologies located in the vessel bunkers in the event A. Recycling solution and waste treatment This initiative is structured around four of grounding,. This technology has been process key aspects: a. Ballast water treatment system ➊ Ballasts are tanks filled with sea water located installed on 57 vessels. Selective sorting of all waste; A variety of waste is produced by the fleet: ➋ on both sides of a vessel which are used to Up until 2010, the fuel oil of container ships The replacement of incinerators by ensure stability and structural integrity. The was generally stored in tanks with a single hull. • Solid waste made up of food waste, new-generation compactors, thereby ballast water contains living species which, Since the MARPOL 12A rule (circa. 2010) took domestic waste, maintenance waste; preventing the emission of polluting gases; ➌ when released, may disrupt the balance of the effect, they are now equipped with a double • Liquid waste from sewage, oily water and The formal prohibition of disposing of local fauna and flora. hull. As a matter of fact, the installation of a sludge. waste overboard (excluding food waste); ➍ The IMO ballast water management second wall, around the fuel tanks, prevents Optimisation of waste recycling systems convention adopted in February 2004 the risks of maritime pollution in the event of a. Solid waste on shore. was ratified in 2016 and took effect on8 collision or piercing of the ship’s hull. The Group has committed to an innovative, Therefore, the quantities of waste September 2017. Additional tanks, installed during the building environmentally-friendly and exemplary of our new vessels, make it possible to better approach to exceed the requirements of produced are monitored, updated and process bilge water and grey water. the MARPOL regulation: the “Green Ship” reported, and specific training sessions Programme. All the Group’s owned vessels are conducted onboard the ships as well now take part in this programme, i.e. 179 as on land. vessels. Indicators 2017 2018 Production of solid waste by the owned 1839 19 40 fleet 88 Thousands of tons
39 18,448 = production of solid waste reported for 2017. 40 19,289 = production of solid waste reported for 2018. CMA Ships scope (excluding: AML, BS, NSB, MERCOSUL, CPO Fund). In 2018, a ship produced an average of 10 as research with dismantling sites in Europe m3 of solid waste per month. and Asia. The sites can be audited in Indicators 2017 2018 Variation accordance with the guidelines as stipulated The programme also enables vessels to share Production of total in the Hong Kong Convention. It should be fleet sludge “good practices” or “issues encountered”. 187 190 2% noted that the Group’s fleet is one of the As such, the ports collecting the waste for Thousands of tons youngest in the industry and the vessels are recovery are listed by the type of waste they usually sold before their end of life. collect (ink cartridges, plastics, etc.); while Nevertheless, whenever a vessel must The waste production from the CMA CGM These eco-containers include three main other ports are not recommended. The goal be sent for dismantling, the Group takes Group’s offices and branches is comparable technologies: is to draw up a central map of ports that measures to send it to a dismantling site to standard office activities. The waste provide the best selective sorting process. that complies with international and local • Bambou flooring: generated at dry ports and terminals mainly health, safety and environmental regulatory standard containers have wood flooring to involves non-hazardous waste (pallets, In addition, the programme also makes it standards. In 2018, one Group vessel was receive goods. The wood used traditionally wood, shrink wrap) and accounts for less possible to set up waste treatment systems. sent to a certified site for dismantling in comes from an exotic tree that takes 60 years than 1,200 m3 per year within the Group’s This year, a mapping of the companies accordance with international standards, to mature and which is becoming increasingly scope of consolidation (Finance). able to treat asbestos waste, as well as this vessel was the APL PHILIPPINES (aged rare nowadays. New wood species have electrical and electronic waste, based on 21 years). been sought and bamboo was selected for the best available techniques, had to be B. Dismantling of vessels its exceptional properties: bamboo grows drawn up. This documentary system for C. Water consumption at the terminals back once it has been cut and Considering current dismantling practices the management of waste on board has only requires 4 to 5 years to reach and the materials used to build the ships, been amended to take into account these Water consumption is not a significant issue maturity. At present, 14% of the Environmental protection the end of life of ships is potentially a major 2 new types of special waste. In particular, for the CMA CGM Group’s maritime transport container fleet used by the Group it includes a module to train and inform activity. Indeed, water consumption on (owned and leased) is comprised seagoing personnel of these new risks for ships is neutral as sea water is pumped in, of containers with bamboo their health and the environment. Systematic inventory of desalinated and treated for everyday uses flooring. hazardous substances on on board. board • Low-consumption reefers: b. Liquid waste reefers are refrigerated containers that are For the Terminals, water consumption Liquid waste is primarily due to the use of specially designed for the transport of food is mainly associated to the washing of fuel oil. Vessels run on “residual” fuel that and perishable goods requiring energy 91
handling vehicles, the quays and containers. Report 2018 Corporate Social ResponsIbility contains water and heavy metals. To be and refrigerating gases. Low-consumption Most of the sites are located close to other combustible, it has to be centrifuged on reefers feature a more efficient motor port industries which produce a lot of dust, board. The centrifugation process requires serving to reduce its electricity costs and thereby requiring frequent washing of the water to be added to the water and heavy fuel consumption by a factor up to 3. At working environments. In 2018, within the metals extracted from the fuel. All this present, 65% of the reefer fleet used by the Group’s scope of consolidation, total water waste creates “sludge” which is considered Group (owned and leased) is comprised of consumption amounted to 214,896 m3. as hazardous waste. It is discharged on low-consumption reefers. land and managed by land-based waste • Light-steel containers: streams. CMA CGM takes care of the sludge Indicateurs 201741 201842 Variation generated by the owned fleet but it depends END-OF-LIFE SHIPS light-steel containers are as on the charter party for chartered vessels. It Water resistant as standard containers consumption may be managed by the ship owner or the 97,441 214,896 + 120% but are lighter and therefore help Thousand of m3 charterer. to optimise fuel consumption and limit greenhouse gases as well as air
A special team was put together in June pollution. At present, 3% of the container Dismantling sites The significant increase in water consumption fleet used by the Group (owned and leased) 2015 to monitor the discharging of sludge is due to a broadening of the scope and the which served to refine the method for audited and certified in is comprised of light-steel containers. line with the guidelines heightened exhaustiveness of data collection. assessing the quantity of sludge produced. required by the Hong For 2018, a ratio of 2.3% of the fuel oil Kong Convention D. Eco-containers consumed was defined to assess the total quantity produced. The CMA CGM Group maintains a fleet of issue for the industry. Pending the ratification young and reliable containers by investing of the Hong Kong international convention, in innovative containers, thereby limiting in 2008, the Group began establishing its impact on the environment. inventories of hazardous materials (IHM) on board, which will eventually be compulsory. The Group has proactively undertaken a vast plan to install or update the IHM for the entire owned fleet. The Group is continuing 90 its regulatory and technical watch, as well
41 Terminals subject to the CMA CGM HO SSE Terminals policy (i.e. a total of 18 terminals) excluding the Lattakia, Umm Qsar, Duch Harbor, TMG, Alterco, Manuco and Udemac terminals.
42 Scope of the terminals subject to the CMA CGM HO SSE Terminals policy – List available in the methodological note. 4. Customer solutions To ensure that we deliver highly reliable environmental data to customers, the methodology of all the CO2 information provided has been checked and certified by A. Carbon optimisation studies KPMG, acting as an independent third party. Transporting goods on container ships 92 creates a lower ton-kilometre carbon footprint than other methods of transport. CUSTOMIZED CO2 REPORT To capitalise on this advantage, the Keys to make your supply chain greener environment department offers the Group’s CO2COO2 report iss a usefulseful tool forfor customersmerse who want too monitorm FEATURES & BENEFITS lines technical support in order to add value theirr logistics carboncarb footprintffootpprri per year, pepererr trade and per mmode, a to their offers of new maritime services. The fi rst step towards CO2 ememissionssioons optimizatiop tiono goal is to quantify the excellence of the #1 CO2 #2 environmental performance with respect to Your carbon KPIs at a glance Evolu on of your emissions Detail of your global carbon A quarterly outlook of your CO2 other rival maritime or land solutions. For footprint (maritime and inland) emissions and the distribution and related shipments in TEUs by transport mode (main liners, example, a study was conducted in order feeders, inland) to promote the modal shift from road to “short sea” for a shipment of tomatoes in #3 #4 refrigerated containers between London Trade analysis Focus on POO/FPD analysis and Morocco. A snapshot of your top trades An analysis of your n°1 door and preferred services ; their to door traffi c, allowing you to performance and share in your compare the CO2 weight of the
total CO2 emissions over the different services and modes Environmental protection In addition to maritime transport and period you favored and spot potential CO2 savings port operations, the CMA CGM Group designs and implements multi-modal POO #5 Malta Tanger Med logistics solutions and these pre- and post- New Delhi POL Mundra Jeddah shipmentsolutions enable the Group to POD Istanbul CMA CGM Environment and Sustainability News www.cma-cgm.com offer customers comprehensive transport 0.538 0.619 0.465 0.270 0.318 CO2 Footprint (tons per leg)
Inland (rail) Maritime leg 100% on EPIC Perf = 271 g / Teu-km Perf = 73 g / Teu-km solutions that are also environmentally- 993 km = 24% 11 385 km = 76% of total CO2 emissions of total CO2 emissions friendly. Contact your usual sales representative to get your own personalized report 93
2018 Corporate Social ResponsIbility Report 2018 Corporate Social ResponsIbility
B. CO2 services for customers available on our website. Maritime transport customers are increasingly C. Sustainability pacts asking for environmental information on Since 2013, in compliance with French For the customers that are more advanced in their the services they buy. Customer requests legislation, for every booking, the CSR approach, the Group offers the signature of a concerning the environment and the CSR customers connected to the e-commerce sustainability pact. This non-legally binding document relate to approximately 20% of the total platform have been given a calculation and is the concrete expression of a principle agreement volume carried. The growing significance of automatic display of the carbon footprint of on the implementation between two signatories of all the carbon footprint criterion when selecting their shipment both at sea and inland. their transport provider explains the Group’s methods likely to minimise their common impact on efforts to offer a broadening range of the environment, such as the identification of “green corridors”. Moreover, the partners undertake to actively premium customers tailored services that For the third consecutive year, the Group pursue synergies and opportunities for practical positive are focused on their various impacts. also provides a service of customised CO 2 action in the community, wherever they are established. This trend is manifested by the growing reports indicating the carbon footprint for number of shippers joining the Clean all the bookings of an individual customer. Cargo Working Group. At the Autumn 2018 In 2018, 85 customers of the Group session, we noted the presence of major selected based on the volume achieved as operators such as DECATHLON, LEVIS and well as environmental involvement received PROCTER & GAMBLE as observers and who an analysis of the breakdown of their total may integrate the working group in 2019. carbon emissions, by trade and by mode of transport. As in previous years, the most frequent The goal in the upcoming years is to In September 2018, a new pact was signed with PANALPINA. This is the 3rd agreement of customer requests pertain to the carbon develop these reports in a more dynamic this type signed between the Group and one of its customers, after Borouge and Schenker. footprint of their shipments with CMA CGM. format. 4 others are being prepared for 2019-2020. Historically, with a view to meeting this The Panalpina pact is centred on 4 main thrusts: the environment (both partners have official requirement, in 2011, the Group developed carbon reduction goals for 2025 and will systematically strive to pursue any joint opportunity an eco-calculator that can estimate the for timely achievement of these goals), the social policy within both groups, observance of an carbon footprint for maritime transport officially documented Code of Ethics and serious examination of the company’s role within between two ports. The eco-calculator is the broader community. 94 5. Employee Sulphur CAP 2020 conference On 25/10 and 9/11 2018, two conferences were organised commitment for the pricers of the lines, and the key accounts sales teams in charge of calls for tenders, in order to review the A. Dedicated training regulatory obligations concerning sulphur emissions for CMA CGM invests in training courses 2020 and the direct consequences on their jobs, especially designed to make environmental protection as regards the inclusion of BAF (Bunker Adjustment Factor) an integral part of all business activities. clauses in sales contracts.
Upon hiring, all the Group’s new employees Environmental protection receive safety and environment training for their particular job so that they can do their work in full compliance with these rules. 6. Awards and Depending on their job, every employee then has to attend specific training modules certifications for their field (for example: ISO 14001 for The Group helps to further a large number internal auditors, chemical risks for workers of voluntary initiatives that contribute to who handle chemicals, etc.). preserving the environment and as such is 95
Moreover, for all seagoing employees of the Report 2018 Corporate Social ResponsIbility recognised for its commitment each year by Group, a training schedule is determined B. Conferences and both customers and local authorities. based on the rank and employee’s potential workshops impact on the environment. This training course is conducted through e-learning A. Voluntary environmental initiatives The CMA CGM Group is an active member of and each employee may connect to the CSR Days: Environmental ESI Focus – Environmental diverse environmental programmes focused programme on board as well as on land. conferences on ocean preservation, the protection of fauna Shipping Index Special seminars for officers are also and air quality. routinely organised at the Group’s head On 5 June 2018, during the sustainable office to inform, raise their awareness and development week held at the head office, a Below are some of the highlights of 2018: WPCI – World Ports Climate Initiative is an train officers on issues relating to health, conference open to all employees laid down initiative that was launched by the main ports safety, security and the environment. The the Group’s CSR policy. • The CMA CGM Group was honoured worldwide, which have committed to reducing seminars are held twice per year at the head This conference, which was followed by a by ISO 14001 in Spain, Green Flag in their greenhouse gas emissions via the ESI – office. question and answer session, was supplemented California, Clean Vessels Incentive in New Environmental Ship Index. The ESI is a platform An e-learning module that is accessible to by two workshops intended more specifically for York and Blue Circle in Vancouver; that collects and rates the environmental all employees and which lists the key points the Key Accounts sales teams. The aim was to • Environmental Ship Index - ESI. The Group information of ships regarding greenhouse gas of the Group’s environmental policy to be inform these teams, who are in contact with the has been taking part in this initiative for emissions and air pollutants. Based on the data presented to customers, has been created Group’s largest customers, of the environmental several years in 14 ports in Europe, the that is updated quarterly, the ports “reward” on the Academy portal. This training projects as well as the latest technological United States and in Asia. In 2018, two the vessels with the highest performance. It module lasts 30 minutes and was taken by developments to be put forward. – cf page 21 new agreements were signed with the Port should be noted that the ports of Longbeach over 4,500 employees worldwide in 2018. CSR days: raising the awareness of employees of Marseille/Fos and the Port of Pointe des (Green Flag Incentive Programme), New York to the Group CSR approach. galets in Reunion Island. (Clean Vessels Incentive Programme) and Vancouver (Blue Circle) rely on the ESI rating to reward the ships with the highest performance based on their own local programmes.
Between 1 May and 15 November 2018, CMA CGM took part in a voluntary campaign to reduce the speed of ships which was organised by the NOAA’s Office of National Marine Sanctuaries (ONMS). The goal was to reduce the speed of vessels to maximum 10 knots in the breeding sanctuaries of sea mammals on the West coast of the United States in order to avoid collisions. Awards and certifications
• The CMA CGM Group has • In September 2018, CMA • In October 2018, at • In November 2018, the been IWAY-certified since CGM was named Company its second Sustainable CMA CGM Group received 2009. In July 2018, the of the Year and APL, Development seminar, the “MOST ACCOMPLISHED certification was successfully Containership Operator of Nike’s operations, logistics, ASIA PACIFIC SHIP renewed with zero deficiency the Year: the Group received packaging and transport OWNER OF THE YEAR” noted by the auditor, in Singapore two of the managers presented prize which was awarded who expressed his “great most distinguished awards CMA CGM with the Silver during the Maritime 2020 satisfaction as to the quality, at Lloyds List Asia Pacific Sustainability Award. conference, in Singapore. transparency and expertise Awards, a true benchmark in The prize is bestowed upon the shipping industry. the ship owner which has demonstrated the most efforts in making its fleet more sustainable, efficient and environmentally-friendly. Environmental protection
of the various persons involved in the process”. In the upcoming years, IKEA’s expectations will relate to the development of business projects in the intermodal sector, bioenergies for the 97
maritime industry, as well as Report 2018 Corporate Social ResponsIbility Other proactive compliance with Sulphur Cap environmental initiatives 2020. Charte Bleue – Armateurs de France is a Charter that seeks to ensure safety at sea and promote respect for the environment: prevention and management of pollution risks, reduction of in-house gas emissions and efficient waste management • ISO 14001 – the last • In December 2018, • In December 2018, the monitoring audit prior to CMA CGM received the Group also obtained a DHL CDP - Carbon Disclosure Project renewal of the Group’s triple Environment Prize at the GO GREEN 2018 rating of a not-for-profit international organisation that certification took place at Lloyd’s List Global Award. 3/4. manages the largest environmental reporting the head office in December This prize illustrates the platform for companies and cities. 2018. The absence of major pioneering role played by deficiency confirmed the the Group in the energy maturity of our management, transition of the shipping environmental, quality and industry. safety system. 96 In 2018
Containers of Hope: over 700 200 associations supported by Launch of a skills sponsorship containers and 5,000 tons of the CMA CGM Foundation since programme for employees at humanitarian aid shipped via the its creation; the Group’s head office; programmes of partner organi- sations since the beginning of 2018 call for projects: 180 Over 38 projects in favour the operation; applications received, 16 asso- of local communities carried ciations selected in 2018 making out in 2018 by the CMA CGM it possible to provide assistance employees. to over 8,000 children; The Group’s Report societal engagement on a global and local scales 2018 Corporate Social ResponsIbility
The Group operates in over 140 countries. The Group respects human rights and is committed to advancing the social and economic growth of the countries where it does business. It helps these regions to develop economically and socially by making investments to create jobs and additional business opportunities. Alongside its business activity, the Group has embarked upon a civic approach through the provision of financial and in-kind support to NGOs and local associations via the Foundation as well as employee initiatives. Moreover, the Group also takes part in solidarity initiatives during natural disasters through the implementation of emergency action projects.
99 1. The CMA CGM Foundation Mrs Naïla Saadé started the CMA CGM The Group's Foundation in 2005 to sponsor advocacy projects for children. Since its inception, it has helped over 200 associations. Its societal mission is to foster personal development for disabled children, improve the daily life of children with illnesses and trauma engagement victims and promote equal opprortunity for disadvantaged youths; through the the “Containers of Hope” campaign, it is helping on a global humanitarian transport operations for the most vulnerable children all over the world.
and local scales A. Containers of Hope expanded in 2014 to include the French Red In 2018, the Foundation resumed its Cross and other NGOs which so request. humanitarian transport campaign, Containers of Hope, which provides Since the start of the campaign and the NGOs with maritime transport for around end of 2018, 700 containers carrying 5,000 one hundred containers per year on the tons of humanitarian supplies have been CMA CGM Group’s ships to deliver aid transported to partner NGO programmes in to populations in conflict zones or areas some thirty-five different countries, primarily exposed to health and humanitarian in Africa. The supplies have helped to fight threats. The first campaign was launched in against infant malnutrition, improve access October 2012 with Action against Hunger to water and satisfy the healthcare needs of 98 the most vulnerable populations and mostly and Doctors Without Borders and then children. B. Call for projects Lebanon: 18 associations were supported in France and > Société Saint-Vincent-de-Paul: renovation and Lebanon in 2018 via a call for modernisation of the library to transform it into a projects and the awarding of documentation centre. the Foundation Prize. > ASSABIL: purchase of tablets, e-books and In 2018, the Foundation educational software to learn about digital continued to back projects technology in the public libraries and the bibliobus helping at-risk children in (Kotobus) of the association. France and Lebanon. As part > Association Dar Al Amal: purchase of laptops and of this effort, it launched its tablets to help vulnerable out-of-school children and sixth themed call for projects young people to achieve digital literacy. focused on promoting > Centre Mar Semaan: outfitting of a library in the the equal opportunity of boarding school housing 90 young people with children from disadvantaged difficult social and family situations. backgrounds. The various projects of these associations > Center for Development Democracy and will provide assistance to Governance: renovation of several study rooms in 8,000 children. Tripoli orphanage housing 120 children. Of the 180 applications > Annas Linnas: acquisition of a bus for school pick- received, the Board of up to allow Syrian refugee children across the Directors ultimately selected region to have access to schooling and take part in 16 associations (10 French leisure and sporting activities. This bus will also be and 6 Lebanese), awarding a used for the distribution of food aid. 100 total of € 220,300: 101
For the Provence Alpes activities aimed at fostering access to the sport in priority districts and the detection Côte d’Azur region: of young talents. > ANEF: renovation and outfitting of the > IMAJE Santé: to improve the reception kitchen and laundry room of a home facilities and psychological care of for teenagers with extremely difficult homeless isolated minors or minors who circumstances. have been entrusted by Child Welfare > Association Sportive et Culturelle Services. La Castellane: purchase of a minibus > APIS: acquisition of musical instruments allowing the children from disadvantaged The Group’s societal engagement on a global and local scales 2018 Corporate Social ResponsIbility Report The Group’s as part of a social assistance programme areas to have access to a broader variety called “Harmonie Cités” based on the of leisure activities. shared learning of music as part of an > Coup de Pouce: acquisition of “coups de orchestra. pouce pour jouer à la maison” (a helping > Les Apprentis d’Auteuil: installation hand to play at home) sets comprising fun of a green terraced roof at the Maison educational materials to develop reading des familles, a place where children and skills as part of the early prevention of parents can make connections, spend time school drop-out. together and have fun. > Centre Social de Culture Ouvrière: > Fraternité Belle de Mai: the development purchase and outfitting of a minibus to and outfitting of a multi-activity field be used as a mobile annex to the Centre initiated by high-school students from Social de Sainte Marthe. the Belle de Mai district who are also > L’institut Télémaque: financing of supporting the project. scholarships for 5 deserving secondary > L’Ecole des Pointes: acquisition of sporting school pupils from priority districts, a project equipment for the coordination of athletics including mentorship within a company and guidance from an educational supervisor. D. Other local actions: Support of 3 elementary schools in Marseille 103 The Foundation is committed to supporting local actions carried out in the areas surrounding the CMA CGM Tower. Indeed, one of the poorest neighbourhoods in Europe, the 3rd arrondissement in Marseille, is located near to the head office. Three public elementary schools in this district applied to the Foundation for the organisation of nature trips (classes vertes) and ski trips for the various classes. Many pupils live below the poverty line and have never been outside of their disadvantaged neighbourhoods. These schools, through the OCCE13 association, will receive subsidies which will allow over 200 children to be able to experience a complete change of scenery and discover other horizons.
102 Set-up of the skills-based sponsorship program. In 2018, the CMA CGM Group also launched the skills-based sponsorship programme through its Foundation. Within this context, a test phase was initiated for a group of 10 CMA CGM employees, based in Marseille. These employees got the opportunity, during their working time (paid for by the Group), to spend two half-days working alongside a partner association, from the month of September C. Awarding of the Foundation Prize school pupils from disadvantaged to late December 2018. – cf page 50 – Skills- backgrounds, by offering them an after- based sponsorship program The Foundation awarded its 2018 school programme associating homework Many associations are in need of Prize to two associations working for assistance, tutoring and rugby sessions. administrative, technical, organisational and disadvantaged children. support expertise. The volunteers provide In Lebanon, the 2018 Foundation Award their skills in these areas. To mark the 10th anniversary of its Prize, was presented to Arcenciel, on 26 In 2018, the skills sponsorship programme The Group’s societal engagement on a global and local scales 2018 Corporate Social ResponsIbility Report The Group’s the CMA CGM Foundation decided to December, during a ceremony held at CMA allowed employees from the Group to lend call on a prestigious patron: Martine CGM head office in Beirut. Since 1985, their expertise to four associations based in Vassal, President of the Bouches-du- Arcenciel has been contributing to the Marseille: Rhône Local Council and President of sustainable development of the Lebanese • Relais Enfants-Parents helps to foster the Aix-Marseille-Provence Metropolitan society by providing support to fragile relationships between incarcerated Area. On 29 November 2018 at the CMA populations and working towards the parents and their children; CGM Tower in Marseille (France), Martine integration of marginalised people. 50,000 • Ecole des XV fights against school drop- Vassal and Naïla Saadé, President of the people have received assistance from this out through rugby; CMA CGM Foundation, presented the organisation and pioneer of social and • SOS Méditerranée organises rescue 2018 Foundation Award to the heads of solidarity-based economy in Lebanon. All operations in the Mediterranean sea; the Ecole des XV association. This Award their projects include the consideration of • Secours Populaire has been fighting recognises the work carried out by this people with difficulties, the preservation against poverty since 1945. association to fight against school drop- of natural resources, business profitability out and school failure amongst secondary and financial independence. Tragic incident at Rue d’Aubagne in E. Cultural sponsorship Marseille The Foundation also responds to emergency The Foundation remains loyal to sponsoring cultural events. situations. In 2018, it once again supported educational activities at the Aix-en-Provence Festival. The CMA CGM Group was very affected by It sponsored Bach’s Mass in B minor by the “collegium musicale choir corelli baroque the tragedy that occurred on 5 November orchestra” and Gianluca Marciano, at the Festival Al Bustan; the concert given by at rue d’Aubagne in Marseille and, via its Mathieu Chedid at the Baalbeck Festival and, as part of the Festival International de Foundation, was keen to express its full- Piano de La Roque d’Anthéron, it sponsored the piano recital given by Nelson Freire fledged solidarity to the victims and those and Sinfonia Varsovia (Mozart) in the Parc du Château de Florans. 50 tickets for this most affected. This support was provided recital were offered to CMA CGM employees. through:
• a donation of EUR 1,500 to Destination Familles, an association located in rue d’Aubagne which works for social cohesion in the Noailles district. This donation will 2. Actions carried out within local communities be paid over in full to the family of a child 104 For CMA CGM, local action involves a voluntary, one-off or recurrent initiative, carried out who lost a parent in the incident; by a CMA CGM entity, involving CMA CGM employees, that has an environmental, social or • a donation of EUR 10,000 to Croix-Rouge societal theme and which directly impacts the local communities in which the Group or its Partnership with the Télémaque Institute française intended to assist the families As part of the same effort to foster the who have been relocated; subsidiaries carry out their operations. engagement of employees, the CMA CGM • a donation of EUR 30,000 over three years This year, the Group was involved in over 38 local community actions across 20 countries, i.e. 90% more local actions reported compared with 2017. Foundation set up a partnership with the to the Fondation Abbé Pierre Provence The following map shows a few of the 2018 initiatives, with the countries where the Group Télémaque Institute in connection with Alpes Côte d’Azur to work towards a its 2018 call for projects. This association sustained action against poor housing carried out the action shown in blue: works to promote equal opportunity in conditions. education from the secondary school level by assisting deserving and motivated youth International Day of Persons with Disabilities from disadvantaged backgrounds via a dual In 2018, the Foundation organised events “company-school” sponsorship (for each for supported associations and CMA CGM young person: a mentor at the company + a employees. supervisor in his or her school). On October 9, 2018, on the International Day The goal of this support is to enable these for Persons with Disabilities, the Foundation young people to broaden their social and organised a Round-Table Discussion at cultural horizons and learn about the working the Head Office in Marseille centered on world and to encourage them to stay in school disabilities. 20 Marseille employees took and develop self-confidence. part in this discussion and shared their views on improving the daily life of persons with Through this partnership, the Foundation disabilities, and their families, as well as the offered 5 Group employees the chance to difficulties encountered for their inclusion mentor one young person during their free into the workforce and how hard it is to time for a renewable period of one year. assert yourself when you are disabled. Mentors help their mentees to develop their potential and to open up to the cultural and Forum of associations business world so that they can have all the On November 29, on the same day as the opportunities that they deserve. This takes Fondation France Prize giving ceremony, a place along three lines: first edition of the Forum of associations was - By offering them cultural and sporting held in the CMA CGM Tower. outings (museums, theatre, sports game, etc.) Of the 10 French associations whose once per month; applications won the 2018 call for projects, - By teaching mentees about their job, nine came to present their actions to the encouraging the mentees to think about their CMA CGM employees and offered volunteer own career path and meet other professionals; missions. This forum was well received and - By encouraging mentees to believe in was an opportunity for interaction and the themselves and to aim for studies that are in sharing of views between the associations line with their potential. and employees. 3. Emergency assistance APPENDICES – natural disasters In times of crisis, the CMA CGM Group works in conjunc- CSR goals, tion with governments and humanitarian organisations worldwide to provide aid to affected populations and meet their immediate basic needs. The CMA CGM 2018 teams strive to make a difference in the lives of extre- mely vulnerable populations and demonstrate their wil- lingness to assist those most in need by providing logis- tics expertise for the transport of aid and by collecting achievements, donations in kind such as water, food and clothing. directions
Below are a few examples of initiatives raised 15 million Indonesian Ruppies to buy carried out in 2018: products such as food, water and hygiene products. These goods were transported by • In August 2018, the Kerala region in CMA CGM to be distributed to the affected 107 India was severely affected by flooding. areas. The CMA CGM Group carried a container filled with basic necessities such as food and • In Saipan, devastated by the super medication to assist the victims. typhoon Yutu in October 2018, the Group transported a cargo of emergency aid which • In October 2018, after a tsunami hit was received by the Red Cross and the Indonesia, CMA CGM Indonesia rallied Federal Emergency Management Agency. to help the victims: the employees on site
Humanitarian Services Office • Offering them guidance in the shipment of humanitarian aid supplies, via appropriate In late 2017, CMA CGM decided to create transport methods, reliable end-to-end the Humanitarian Services Office to offer solutions and procedures at competitive international organisations and NGOs a prices; single point of contact. This office allows • Helping them to maximise the effect of the Group to offer “tailored” solutions to the aid they provide and take part in their these emergency organisations, such as: mission to overcome humanitarian crises.
• Giving them direct access to CMA CGM’s Since the Humanitarian Services Office services and global network of agencies; was launched, NGOs and international • Centralising and rationalising their specific organisations have praised the initiative transport needs and requirements; and have worked with the office on a daily • Providing them with professional advice basis to devise appropriate solutions. In by leveraging on the Group’s experience 2018, the office enabled the humanitarian and expertise in handling logistics issues; transport of 10,665 twenty-foot equivalent (TEU) containers. CSR goals, 2018 achievements, directions The aim of the Group in 2018 was to enhance the CSR approach. Therefore, the following table outlines for each of the Group’s CSR thrusts and challenges, the main goals, the results for 2018 and the directions.
CMA CGM CSR Axes Goals 2018 results 2018 KPIs Directions CMA CGM CSR Axes Goals 2018 results 2018 KPIs Directions
CSR Approach Deliver Consolidation of the CSR approach of the Not Applicable Consolidation of the CSR Health, Safety & Security Prevent and Significant improvement regarding accident Average number Reduction of accidents sustainable and Group with the creation of the 6 CSR axes approach Safety excellence reduce accidents, frequency rate of the Group's operational of deficiencies per (maritime, people, goods) value-creating and the structuring of a network of CSR Identification of programs or security risks and activities: fleet and terminals over the last 5 inspection: 1,08 transportation correspondents (more than 100 people) projects to integrate ensure the safety years * Target to reach 100% of our assets and and logistics deployment abroad and in Number of major of certified operational Group assets solutions the subsidiaries Reinforcement of the preventive safety policy maritime events: 8 activities in a context of major natural events and geopolitical instability Death: 1 External evaluation of the Group CSR Nearly 330 customer Continuation of the work of The entire scope of the CMA CGM owned approach: 1st external publication of the CSR requests in 2018 valorization of the approach Fleet - LTIFR: 1,25 fleet obtained the triple ISO 9001, ISO 14001 Report, GOLD rating by the EcoVadis rating and + 15% EcoVadis externally and OHSAS 18001 certification. 39% of the agency, responses to nearly 330 customer rating sharing Terminals subject to the CMA CGM HO Terminals - LTIFR: inquiries concerning the CSR approach request in 2018 Terminals SSE policy are ISO 9001, 14001 13,2 and/or OHSAS 18001-certified.
Value Chain Customer Continue our Procurement: Launch of a pilot responsible Not Applicable Procurement: Generalize the * Increase iof the LTIFR between 2017 and Adding value experience development procurement program in collaboration with for 2018 responsible procurement 2018 for the fleet over the entire and innovation Ecovadis - 100 suppliers evaluated in 2018 program at Group level value chain Innovation & policy in order digital to improve the Innovation: Launch of ZeBox, incubator of Innovation: Identify transformation satisfaction of start-up and many innovative projects (Smart innovative sustainable our customers Port Challenge, BlueBox) solutions and projects Environment Improve the en- 2.5% improvement of the Group’s energy CO2 emissions - Pursue the energy
while supporting Report Appendicies 2018 Corporate Social ResponsIbility sustainable Environmental protection ergy efficiency of performance in line with the -30% goal millions of tons: 25, 8 improvement of ships: suppliers and the ships and de- between 2015 and 2025 preparing the Global Sulphur procurement subcontractors Customers: Continuation of the Customer Customer: Digitize product Experience program through the launch of offerings and deploy a velop eco-frien- CO / carried TEU - Cap legislation and the entry in a responsible dly intermodal 2 of the fleet to LNG approach many high value-added products (Serenity, single point of contact for Establishment of an ETA 2020 program as Tons / TEU: -4% bt Traxens, Climactive, ...) customers technologies and part of the preparation for Global Sulphur Cap 2017 &2018 solutions in 2020, definition of a Group's strategy in Reduce pollution risks: 108 terms of conventional fuels, LNG or flue gas Major oil pollution: 0 hydrocarbons, containers 109 treatment system lost at sea
Ethics & compliance Preventing the Code of Ethics update Not Applicable Train, support and supervise Containers lost at Exemplary approach risk of corruption for 2018 all Group employees in their Implementation of a Customer Care sea: 139 Developpe solutions and Sustainability Program, including value-added partnerships with strategic to ethics and compliance and developing Implementation of new rules within the Group: daily work to reinforce the
Appendicies 2018 Corporate Social ResponsIbility Report solutions such as MyCarbon Footprint, the clients our ethics and gift policy and anticorruption code of conduct integrity and responsibility: compliance promotion of transport and logistics solutions or the commitment and collaboration through policy with all our - Development and support Launch of a whistleblowing platform Sustainable Development pacts or the Clean stakeholders a network of international Cargo Working Group compliance correspondents SAPIN II and Devoir de Vigilance programs (risk mapping and vigilance plan) - Trainings for all Group Societal Continue our Containers of Hope: more than 700 containers Number of Deploy the Skill Sponsorship employees The societal commitment of the commitment and 5,000 tons of humanitarian materials Containers of Hope Program Group at global and local level to societal delivered through partner organizations' transported since Continue the deployment of engagement via programs since the beginning of the operation the beginning Develop local and the Sapin II and Devoir de the Foundation of the action: international projects and Vigilance programs and the Group Launch of a skills sponsorship program for 700 containers partnerships to affirm the local actions employees at Group headquarters representing nearly Group's commitment 5,000 tons of materials 38 projects for local communities carried out in 2018 by CMA CGM employees Number of associations Social Promote diversity Employee skills development with more than Breakdown by gender: Strengthen the diversity supported by The commitment within the teams 212,000 training hours delivered in 2018 55% M/ 45% F policy the CMA CGM of our employees and training of all Foundation as part of employees Promoting diversity with the launch of the % of women in Pursue the Group's training the Call for Projects: program "We Are Shipping" management policy with the new ambition 18 position: 13% of the CMA CGM Academy Launch of pilot to improve the quality of life at Number of work via a plan for inter-company mobility and Number of employees the experimentation of teleworking nationalities: 149 engaged in the skills sponsorship program: 10 Total training hours: 212,342 Number of local actions: 38 Table of indicators 2018 Corporate Social ResponsIbility Report 111
either 81% of the Group consolidated workforce either 81% of the Group 100% of the C&ME sedentary workforce – 100% of the C&ME sedentary workforce i.e. 81% of the consolidated Group’s workforce Group’s i.e. 81% of the consolidated – workforce 100% of the C&ME sedentary workforce consolidated either 81% of the Group – workforce 100% of the C&ME sedentary workforce consolidated either 81% of the Group – workforce 100% of the C&ME sedentary workforce consolidated either 81% of the Group Owned vessels scope Owned vessels scope Owned vessels scope consolidation Group France - Bouches du Rhône and Lebanon TTerminals subject to the CMA CGM HO Terminals SSE policy subject to the CMA CGM HO Terminals TTerminals in scope due to a change 2017/2018 data cannot be compared Scope workforce consolidated All of the Group’s – workforce All of the C&Me office-based Terminals subject to the CMA CGM HO Terminals SSE policy subject to the CMA CGM HO Terminals Terminals vessels scope Owned and chartered vessels scope Owned and chartered vessels scope Owned and chartered vessels scope Owned and chartered vessels scope Owned and chartered The scope of the classroom-based training data corresponds to the France training data corresponds The scope of the classroom-based 23.6% of the 2018 office-based employees and seagoing personel, i.e. // The scope of the e-learning workforce data corresponds consolidated Group i.e. 94% of the in C&Me, World Crewing to the office-based employees and the reporting It is worth noting that 2018 consolidated workforce. Group and eventually reliable, more of the “training” data is being rendered process consolidated workforce. entire the goal is to achieve a scope of the Group’s all all the data associated with the training of employees from Furthermore, as via the C&Me tool. Finally, entities will ultimately be gathered the Group’s of e-learning to calculation methodology has changed in relation the reporting with the 2018 as it cannot be compared hours, the 2017 data was not reused; values. Financial consolidation scope Owned vessels scope Owned vessels scope Owned vessels scope Terminals SSE policy Terminals subject to the CMA CGM HO Onwed fleet and Owned vessels scope Owned fleet 140 45% - Female 13 45 149 0 139 10 38 18 214,896 2018 37,092 55% - Male 13.2 8,259 399 25.8 700 400 212,342 hours 1,886 8 1.08 11 1 1.25 0.2 140 43% - Female 13 46 145 0 0 9.9 20 13 97,441 2017 34,647 57% - Male 19.1 7,783 413 24.3 667 378 308,229 hours 1,699 5 0.71 4 1 0.9 3
emissions - 2 Countries where the Group the Group Countries where is present Women in managementWomen positions - % of on the Board Women % - Directors Number of nationalities Containers lost at sea production Maritime - Waste - m3/vessel/month Number of Local actions - Call for Projects Associations supported by Foundation Major pollution - C & D impact Indicators Employees by gender - % Breakdown Maritime fleet Fuel consumption - k tons carried Energy/TEUs - kg/EVP CO millions of tons NOx emissions - kilotons SOx emissions - kilotons consumption - m Water Frequency Rate Frequency Payroll M USD Payroll Major maritime events Deficiencies per inspection Detention number Fatal accidents Injury Maritime - Lost Time Rate Frequency Maritime - Gravity rate - Terminals Injury Lost Time Total training hours Total 8, 10 5 5 10 14 12, 14, 15 2, 4, 8, 11, 14, 15, 17 4 14, 15 ODD 8 5 7, 12, 13 7, 12, 13 7, 13 6, 12 8 8 3, 8 3, 8 4, 8 G 4-8 G4-9 G4-LA12 G4-EN12 G4-EN23 G4-EN15 - G4-EN12 Correspondence GRI G4-9 G4-10 G4-EN15 G4-EN15 G4-EN15 G4-EN8 G4-EC1 G4-LA6 G4-LA6 G4-LA9 Table Table of indicators 110 CMA CGM CSR Approach Relevant pages
Qualitative data Quantitative data
Non Financial Table of CSR Table of indicators 6 Axes 15 Issues Statement Objectives, 2018 Page 110 Page Achievements
and directions Table of correspondence with the European Directive Report of non-financial Statement 2018 Corporate Social ResponsIbility Page
Innovation and digital 23 108 N.A. transformation
Value Chain Customer Centricity 27 108 N.A.
Sustainable procurement 29 108 N.A.
Ethics and Compliance 32 108 N.A.
Number of nationalities Gender distribution (%) Diversity 46 108 Women in management positions Women on the Board of Directors
Social Collaborators’ working N.A. 49 108 conditions
Collaborators’ Total training hours 54 108 113 Table of development Lost Time Injury Frequency Rate Health, safety and security 70 109 Gravity rate correspondence of our collaborators Safety and Security Deficiencies per inspection Cargo security 73 109 Detention number with the European Major maritime events
Maritime fleet Fuel consumption Energies 80 109 Directive of Energy/TEUs Carried
Maritime - Waste production Materials and waste 89 109 non-financial m3/vessel/month Environment Major oil pollution Pollution et release 87 109 Statement Containers lost at sea
Ocean : biodiversity 88 109 N.A.
Local actions Territorial integration & 98 109 Country where the Group is development present
Societal CMA CGM Foundation, Number of Local actions local actions and 98 109 Call for Projects - Associations emergency relief supported by Foundation
112 Note that the following information has been considered as not applicable to the Group’s business activity: - Fight against food insecurity - Protection of animal welfare - Responsible, fair and sustainable food Methodological note
Social : C&Me reporting tools (excluding seag-oing Social indicators were defined in 2013 and personnel and international employees updated in 2018. Established based on scope): Global Reporting Initiative (GRI) criteria and The indicators are collected and designed to meet French legal requirements consolidated by the HR C&Me information (NRE Act of 15 May 2001 and Article 225 system. C&Me relates to 81% of the Group of the enforcing decree dated 24 April consolidated workforce. Excel spreadsheets 2012), while including current international supplement the reporting for the office- maximum standards. based employees – relate to 6% of the Group workforce. Scope: The reporting of the CMA CGM Group’s Workforce: non-financial data pertains to a consolidated Note 1 : The workforce broken down per scope (excluding French and international individual relates to the Group consolidated seagoing personnel). world scope as of 31 December of the The Total Workforce and breakdown of reference year. They include employees with workforce per region indicators apply to the an employment contract at one of the CMA
consolidated entities in the global scope as CGM Group‘s companies as of 31 December Report Methodological Note 2018 Corporate Social ResponsIbility of 31 December of the reference year. of the reference year. The following are Gender, Age, Hiring & Departure indicators included: indefinite-term work contracts, are made available for a limited portion fixed-term work contracts, expatriates of the consolidated scope because some (by site of secondment), employees on subsidiaries have not been reported. maternity or paternity leave, interns and VIE • Gender and geographical area - Information participants (excluding France). available for 81% of the Group consolidated Note 2 : The workforce broken down by workforce gender includes the percentage of male 115 • Age - Information available for 77% of the employees and the percentage of female Group consolidated workforce employees. The distribution by age is • Hiring & Departures - Information available broken down as follows: younger than 20 for 81% of the Group consolidated years old, 20 to 29 years old, 30 to 39 years workforce old, 40 to 49 years old, 50 to 59 years old, Methodological • The number of training hours scope: the 60 years and older. These categories were scope of the classroom-based training established based on available data. Some data corresponds to France office-based branches and subsidiaries do not report due note employees and seagoing personnel, to specific local regulatory constraints (or i.e. 23.6% of the Group consolidated inclusion in scope). workforce for 2018 // The scope of the Note 3 : The breakdown of workforce by e-learning data corresponds to office- geographic area pertains to the following based employees and Global Crewing in categories: France, Europe (excluding C&Me, i.e. 94% of the Group consolidated France), Africa – Middle-East, the Americas, 2018 workforce. It is worth noting that Asia – Oceania. the reporting process of the “training” data is being rendered more reliable, and Hirings and dismissals: eventually the goal is to achieve a scope of Note 1 : Hiring pertains to the number 114 the Group’s entire consolidated workforce. of employees who joined the company Furthermore, all of the data associated between 01 January and 31 December with the training of employees from all of the reference year, depending on the of the Group’s entities will eventually be contracts as defined in Note 1 / Workforce. gathered via the C&Me tool. Finally, as the Someone is also considered a new hire in reporting methodology has changed in their company when they are reassigned relation to calculation of e-learning hours, and signed a new employment contract with the 2017 data was not reused; as it cannot a different company within the Group or be compared with the 2018 values. have an amendment to the original contract that results in a permanent assignment to a Period: The reporting period is from different Group company. 01/01/2017 to 31/12/2017 and from 01/01/2018 to 31/12/2018. Kaohsiung / VICT Vietnam / Natal Note 2 : Dismissals relate to the number Training of French and international Frequency rate of maritime work accidents: of employees leaving the workforce due Crewing: The number of training hours LThe frequency rate for work accidents is to the company’s decision between 01 for the French and international seagoing calculated for the maritime scope (fleet Environnement January and 31 December of the reference personnel corresponds to the sum of the owned by CMA Ships) based on the number The reporting period runs from 01 January year, employees under contract. This number of e-learning training hours, added of accidents with sick leave and the total 2018 to 31 December 2018. includes redundancies, dismissals for actual to the number of classroom-based training number of hours worked. Maritime fuel oil consumption: The fuel and serious cause, dismissals for gross hours: oil consumption is monitored for the entire misconduct, dismissals for unfitness (further • The number of classroom-based training It includes accidents among the seagoing fleet in operation. Fuel oil consumption for to a work accident, occupational disease) or hours is obtained by applying an average staff employed by the Group, as well as land activities are considered insignificant in for non-professional reasons. The dismissal duration of 7 hours of training per day of the seagoing staff employed by Manning comparison. The fuel oil consumption of the rate is calculated based on the number of training administered agencies. An accident with leave is considered maritime activity is expressed in tons of fuel dismissed persons / total workforce. • The number of e-learning training hours is to be any accident that results in leave from oil and represents the total consumption of obtained via the online training software work onboard ship. Accidents that result in different types of fuel oil used by the fleet Training work leave only after disembarkment are not (HSFO / LSFO / MGO-DO). Note 1 : All types of training courses are Note: the change in the number of taken into account. Q consumed per voyage = ∑ ROB beginning included (internal and external) and all training courses between 2017 and 2018 voyage – ROB end of voyage + ∑ voyage training methods (classroom, e-learning) is primarily associated with the change in Number of hours worked of the shipping bunkers purchase are counted, as long as the training action the calculation method. activity: sum of the actual number of days on contains an educational objective, is tracked board x 24 hours : The CO Maritime CO2 emissions: 2 and is administered by an employee of the emissions relate to the entire operated fleet CMA CGM Group. Safety Frequency rate = number of work accidents / and are expressed in tons of CO . They are Report Methodological Note 2018 Corporate Social ResponsIbility • The classroom-based training courses Workplace safety: Fatal accidents and (number of hours worked) x 1,000,000. 2 accidents with leave longer than 1 day are directly calculated from fuel oil consumption. are taken into account as of 1 hour. The The following emission factors are applied to calculation is based on the hours of tracked and consolidated at the Group The number of hours worked corresponds to level by CMA Ships, for the owned fleet fuel oil consumption for the maritime activity: training provided to employees and not the number of hours spent on board including • 1 ton HFO = 3.114 tons of CO the planned or budgeted hours. maritime activity, and by CMA CGM HO SSE at night, hence a low frequency rate with 2 Terminals, for terminals under management. • 1 ton LFO = 3.151 tons of CO2 • The e-learning courses (interactive content) respect to other industries. • 1 ton MGO/ DO = 3.206 tons of CO is calculated as from 4 minutes, and the Accidents that occurred on chartered 2 vessels are not reported or consolidated, 116 educational videos as from 30 seconds Severity rate of maritime work accidents: Ref.: “RESOLUTION MEPC.245(66) 2014 117 of connection. The calculation of the since they are under the responsibility of the Number of days’ sick leave further to a respective ship owners. GUIDELINES ON THE METHOD OF e-learning hours are tracked based on the workplace accident per thousand of hours CALCULATION OF THE ATTAINED ENERGY hours completed, unless the connection worked over a period of twelve sliding With reference to the change % EFFICIENCY DESIGN INDEX (EEDI) FOR time is not consistent (i.e. more than 2 x the months. For seagoing staff which are no NEW SHIPS” theoretical time and 1.25 for IMDG). In this presen-ting the business model: longer in the workforce as of 31/12/reference case, the theoretical duration is reported. year, the days of leave which occurred during Methodological Note 2018 Corporate Social ResponsIbility Report Definition of Scope 3: /!\ - Caution: as the methodology changed the reference year are not taken into account Scope 3 emissions are emissions resulting from for calculating the e-learning training time, LTIFR Terminals Maritime in the calculation of the severity rate. the building of vessels and containers, vessels the 2018 data cannot be compared with solid and liquid waste production, employees the 2017 data. 2014 36 1.55 Frequency Rate of accidents with business trips, fuel oil consumption specific bodily injury with sick leave for terminal to the pre- and post-shipment services and Regarding French Crewing: The payroll 2015 31 1.78 employees: The frequency rate is calculated upstream emissions stemming from the actual tool specific to French Crewing is used to over the scope of the terminals subject to the production and transport of fuel burnt on our obtain all the information concerning the HR 2016 29.5 1.63 CMA CGM Corporate Terminals QHSSE policy vessels. data of the French seafarers. as of the number of work accidents with sick 2017 19.1 0.9 leave of more than 1 day and the total number • Ship building: For each vessel built in the Regarding International Crewing: The of hours worked. FR = (number of accidents / 2018 13.2 1.25 year, we consider the weight of the vessel workforce counted in the International number of hours worked) x 1,000,000 (no ballast, fuel, oil, cargo) in tons and we Crewing HR indicators correspond to apply an emission factor of 1.75 (1.75 tons seafarers with a permanent employment Scope of the terminals subject to the of CO emitted to produce 1 ton of steel); contract or a contract with CMA CGM or CMA CGM HO Terminals SSE policy: Dutch 2 all its subsidiaries: these seafarers work on Harbor APL Terminal Unalaska / Kingston • Container building: For all the containers the vessels of the CMA CGM Group fleet, Freeport Terminal / SAMR La Réunion / GMM built during the year on behalf of CMA the vessels of other shipowners, which carry Martinique / GMG Jarry Terminal Guadeloupe CGM, we consider the empty weight (tare out one-off jobs at the other entities of / SOMARIG Guyane / TGO Montoir / TDF weight of a twenty-foot container = 2.2 tons) the Group. If the shore-based assignment Dunkerque / BKP Odessa / Medeurope and we apply an emission factor of 1.75 is definitive (via a change of contract), the Terminal Marseille / Marseille Manutention / (1.75 tons of CO2 emitted to produce 1 ton employee is therefore counted in the shore- Malta Freeport Terminal / Terminal Sevilla / of steel); based workforce. Thessaloniki / Lattakia / Umm Qasr Berth n°5 / Casablanca / Kribi / Mundra / Yokohama / • Solid waste: Owned vessels take part in our time. NOx emissions are expressed in tons of CSR challenges +++: The stakeholder has determined that the Green Ship programme. Within this context, NOx. The identification of the major CSR challenges CMA CGM CSR challenge is a fundamental they report the solid waste produced. We NOx = total fuel consumption by type * NOx for the Group was developed in partnership challenge from its standpoint emission factor by type of fuel ++: The stakeholder has determined that the apply an emission factor of 182 kg of CO2 with various Group departments: Environment, for 1 m3 of waste to the total volume of solid The following emission factors are applied to Security, Safety, Human Resources, Ethics & CMA CGM CSR challenge is secondary from waste reported; the fuel consumption for the maritime activity: Compliance, Purchasing Risk. its standpoint +: The stakeholder has determined that the • Liquid waste: mainly sludge produced by • HSFO / LSFO: 86 kg of NOx / tons of fuel oil An initial list of material CSR challenges for the CMA CGM CSR challenge is not a priority for the vessel. For 2018, the estimated sludge • DO: 56 kg of NOx / tons of fuel oil maritime transport sector was drawn up using the moment from its standpoint produced was 2.3% of the consumed fuel (Source: 3rd IMO GHG study 2014) a documentary and regulatory analysis. Note: In 2018, 80 Group and subsidiary oil, therefore we consider 2.3% of CO The following challenges were identified: 2 employees and 4 customers were surveyed produced. Accidental releases: Accidental releases • Business ethics: Economic sanctions and and gave their views on the CMA CGM CSR relate to unintentional releases of hazardous embargoes, free competition, corruption, • Employee business trips: the CMA CGM approach. or non-hazardous liquid discharges from the conflict of interests, fraud, data confidentiality Group in-house travel agency supplies the owned vesselsl, whether or not the CMA and protection CO emissions stemming from trips (train > therefore, the risk is more important than 2 CGM Group is liable. The reporting scope • Value chain: Customer Centricity, Innovation / plane) of the Group business travellers the challenge itself, given the procedures pertains to the owned fleet of the Group and and sustainable added value, Long-term outbound from France. This corresponds to and work underway. is based on the feedback from the Report of partnerships with our suppliers the Head Office scope. Notification (RON) sent in by the vessels. • Social: Diversity – Mixity & inclusion, CSR risks • Fuel oil consumption for pre- and post- Employee working conditions, employee With support from the Risk Management shipment services: we extract this information Solid waste: The volume of solid waste development Department, a CSR risk mapping in connection from the Group’s booking management (hazardous and non-hazardous) is reported • Safety and security: maritime safety, with the materiality matrix is being prepared. system with a transport mode criterion = by the ships based on waste reduction occupational safety (H&S), goods safety, The 2018 work involved: programme called “Green Ship”. Each vessel Barge / Rail / Road / Third-Party Feeder safety of assets, international security > Identifying the existing Group risks in which incorporates the transport carried out sends a summary by category of solid waste • Environment: Energy, Resources, Materials connection with one of the 15 Group CSR on behalf of the Group by external service generated on board on the basis of the crew’s & Waste, Pollution and releases, Oceans: challenges and determining the challenges providers. We then apply the standard visual estimation. They are expressed in m3 or biodiversity with no associated risks in pieces, depending on the category. These Report Methodological Note 2018 Corporate Social ResponsIbility emission factors for each transport mode in • Societal: Territorial development and > Compiling the “CSR” risk mapping for the order to calculate the corresponding carbon reports are then compiled and the figures are integration, sponsorship, local actions, risks and associated challenges. The rules analysed to determine the total volume of footprint. (Source: CO2 emission of transport philanthropy, Emergency Relief applied are: services, Methodological Guide / Ministry waste generated by the owned fleet. Sludge is not taken into account in this indicator. of Ecology, Sustainable Development and Assessment of importance for CMA CGM - Based on the activity and the scope, Energy. 2017 for rail, road and barge; CMA Each of the challenges determined is assessed several risks have been grouped into a “risk CGM Source for feeder). Sludge: The production of sludge covers the by the various departments based on 4 category”, of which the current risk level is 118 entire operated fleet. Sludge is expressed criteria: finance, legal/regulatory, Operation/ defined by the average of the frequencies 119 • Upstream phase fuel emissions: we use in tons. The quantity of sludge is calculated Business, Image/Reputation. The challenges and the average of the severity rates. the emission factors of the EcotransIT base using a ratio that is calculated annually by were then ranked by priority depending on - If a challenge is covered by 2 risk categories, which applies the default factors of the the Sludge team based on the quantities the following criteria: the final risk level is the higher of the2 EN16258 standard. For the MDO: 0.68 kg discharged and inspected during the sludge categories. CO e/kg; for the HFO: 0.26 kg CO e/kg. unloading operations. This ratio is applied to 2 2 +++: CMA CGM identified the importance > Comparing the assessments of the http://www.ecotransit.org/download/ETW_ the total quantity of fuel oil burnt over the year of CSR challenges and has made them one challenges vs the risks. In this exercise,
Methodological Note 2018 Corporate Social ResponsIbility Report Methodology_Background_Report_2016.pdf in order to calculate the quantity of sludge of its priorities. The Group implements the differences were identified and explained (p. 96). produced. necessary resources to address this challenge as follows: ++: CMA CGM has identified that this CSR - The challenge is higher than the position of SOx emissions: SOx emissions cover the Terminal energy consumption: The energy challenge is important and has put actions in the risk: the challenge is strong and known. entire operated fleet. SOx emissions are consumption of the Terminals relates to the place CMA CGM has undertaken actions to limit expressed in tons of SOx. SOx emissions are Terminal activity subject to the CMA CGM HO +: CMA CGM has identified that this CSR the risk inherent to the challenge > therefore, calculated based on fuel oil consumption Terminals SSE policy. challenge is not a priority for the moment, and the risk is controlled and the challenge per type of fuel oil, average ratio of sulphur has implemented limited actions / or has not remains strong. concentration per type of fuel oil, emission Terminal water consumption: The Terminal put any actions in place for the moment - The challenge is less than the position of the factors between sulphur and SOx: 2 t of SOx water consumption pertains to the Terminal risk: the challenge is emerging. CMA CGM is activity subject to the CMA CGM HO are emitted for every 1 t of sulphur (S) in the Assessment of importance for CMA CGM implementing actions to mitigate the risk Terminals SSE policy fuel oil. (Source: EEMS Atmospheric Emissions stakeholders Calculation). For this assessment, the stakeholders were The sulphur ratios are taken from data from Scope of Terminals subject to the CMA not directly contacted. The stakeholders have the fuel purchasing and management control CGM HO Terminals SSE policy: Dutch been identified depending on the interest in department and from 2018 Bunker Delivery Harbor APL Terminal Unalaska / Kingston the Group’s activities. They are divided into 2 Notes (BDNs). An average sulphur ratio Freeport Terminal / SAMR La Réunion / GMM sub-groups: weighted by the quantity is calculated for Martinique / GMG Jarry Terminal Guadeloupe Priority stakeholders: Government, each type of fuel oil. / SOMARIG Guyane / TGO Montoir / TDF Public Authorities, Investors, Customers, Dunkerque / BKP Odessa / Medeurope Shareholders, Employees / Trade Unions, NOx emissions: NOx emissions cover the Terminal Marseille / Marseille Manutention / Suppliers, Subcontractors entire operated fleet. NOx emissions for Malta Freeport Terminal / Terminal Sevilla / Secondary stakeholders: NGOs, Media, land activities are considered insignificant in Thessaloniki / Lattakia / Umm Qasr Berth n°5 Professional organisations, Local communities comparison and are not consolidated at this / Casablanca / Kribi / Mundra / Yokohama / The challenges were then ranked by priority Kaohsiung / VICT Vietnam / Natal based on the following criteria: Glossary
AMF Armateurs de France – French shipowners association BDN Armateurs de France – French shipowners association BSR Business for Social Responsibility – NGO which supports the member companies towards a fair and sustainable world CCE Comité Central d’Entreprise – Central Works Council – Replaces the Works Council in companies with several facilities CCI Chambre de Commerce et d’Industrie – Chamber of Commerce and Industry CDP Carbon Disclosure Project – Environmental reporting platform CDP Comités d’Etablissements – Works Committee – Managed by the Central Works Council CHSCT Comité d’Hygiène, de Sécurité et des Conditions de Travail – Health, safety and working conditions committee
CO2 Carbon dioxide CRM Customer Relationship Management CSR Corporate Social ResponsIbility Glossary DIRECCTE Directions Régionales des Entreprises, de la Concurrence, de la Consommation, du Travail et de l’Emploi – Regional directorate for companies, competition, consumption, work and employment ECA Emissions Control Area ESI Environmental Ship Index FORS Fast Oil Recovery System GDP Good Distribution Practice ILO International Labour Organisation 120 IMO International Maritime Organisation IMS Integrated Management System LNG Liquefied Natural Gas MLC Maritime Labour Convention MOU Memorandum of Understanding NAO Négociation Annuelle Obligatoire – Mandatory annual negotiation NGO Non-Gouvernmental Organisation NOx Nitrogen oxide OTI Organisme Tiers Indépendant – Independent third-party organisation PSC Port State Control PSR Psycho-Social Risks QHSSE Qualité, Hygiène, Santé, Sécurité, Environnement – Quality, Hygiene, Health, Safety and Environment RIF Registre International Français – French ship register ROTI Rapport Organisme Tiers Indépendant – Independent third-party organisation report SIRH Système d’Information des Ressources Humaines – Human resources information system SOPEP Ship Oil Pollution Emergency Plan SOx Sulphur oxide TEU Twenty Equivalent Units UES Unité Economique et Sociale – Economic and social unit USCG United States Coast Guards VIE Volontariat International en Entreprise – French international internship programme WPCI World Port Climate Initiative Report by Report by one of the Statutory Auditors, appointed as an independent third party, on the consolidated non-financial performance statement in the Management Report
the Statutory For the year ended December 31st, 2018
Auditor To the Annual General Meeting
In our capacity as Statutory Auditor, appointed as an independent third party, of CMA CGM S.A., certified by the French Accreditation Committee (Comité Français d'Accréditation or COFRAC) under number 3-104943 , we hereby report to you on the consolidated non-financial performance statement for the year ended 2018 (hereinafter the “Statement”), included in the Group Management Report, in accordance with 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).
Responsibility of the Company 122 It is the Management Board's responsibility to prepare a Statement in accordance with legal and regulatory provisions, including a presentation of the business model, a description of the main non-financial risks, a presentation of policies applied to mitigate these risks and the outcomes of those policies, including key performance indicators. The Statement has been prepared applying the procedures of the Company, (hereinafter the “Guidelines”), the most significant aspects of which are presented in the Statement and available upon request at the Company’s headquarters.
Independence and quality control Our independence is defined by the provisions of Article L.822-11-3 of the French Commercial Code (Code de commerce) and the French Code of Ethics (Code de déontologie) for statutory auditors. Moreover, we have implemented a quality control system that includes documented policies and procedures to ensure compliance with applicable ethical rules, professional standards, laws and regulations.
1.Statutory Auditor’s responsibility On the basis of our work, it is our responsibility to express a limited assurance opinion about whether: • the Statement complies with the provisions of Article R. 225-105 of the French Commercial Code (Code de Commerce); • the information provided (hereinafter the “Information”) is fairly presented in accordance with Article R.225-105-I and II of the French Commercial Code (Code de commerce) concerning policy outcomes, including key performance indicators and actions relating to the main risks;
It is our responsibility to express, at the request of the Company and outside of the scope of accreditation, reasonable assurance that information selected44 by the Company and identified with the symbol √ in the Management Report has been prepared, in all material respects, in accordance with the Guidelines. However, it is not our responsibility to express an opinion on: • the Company’s compliance with any other applicable legal and regulatory provisions, relating, in particular, to the duty of care requirement; • the compliance of products and services with applicable regulatory provisions.
Nature and scope of our work We performed our work described below in compliance with Article A.225-1 et seq. of the French Commercial Code (Code de commerce), defining the conditions under which the independent third party performs its engagement, and with the professional guidance issued by the French Institute of Statutory Auditors (Compagnie nationale des commissaires aux comptes or CNCC)
43 Scope available at www.cofrac.fr 44 CO2 emissions, SOx emissions and NOx emissions related to the fuel consumption of the maritime fleet. 124
Report by the Statutory Auditor 2018 Corporate Social ResponsIbility Report individuals responsible forpreparing theStatement. the with interviews twenty around conducted We specialists. responsibility and social corporate development sustainable firm’s our on called we work, our conducting in us Toassist Our workdrew ontheskillsofsixindividuals Means andresources cannot betotallyeliminated. Statement the in misstatement material a detecting not of risk the systems, control internal Due totheuseofsamplingtechniquesandotherlimitations inherentand toinformation our on based opinion. assurance A higherlevelofassurancewouldhaverequired ustocarryoutmore used, extensiveprocedures. limited our have for basis we a provide sizes to sufficient sample are judgment, and professional methods sampling the that believe We • • > > • • • • • • • • • • and legal with compliance Statement’s the on opinion regulatory provisions andthefairpresentation therein: oftheInformation an form to work conducted We on assuranceengagementsotherthanauditsorreviews ofhistoricalfinancialinformation). standard (International 3000 ISAE with and engagement this relatingto CNCC) or comptes Company. the of understanding our on based Statement the of consistency overall the assessed We qualitative outcomes); due the corroborate diligence procedures thatwedeemedthemostimportant(organization, to policies, actions, interviews conducted and sources documentary to referred We the mostimportant,wesetup: indicatorsandtheotherquantitativeoutcomesthatweconsideredFor keyperformance that mustbementionedintheStatement; the ensure to Company the completeness andfairpresentation indicators by ofthepolicyoutcomesandkeyperformance implemented process collection data the assessed We with ArticleL.233-16[where applicable: withinthelimitsspecifiedinStatement; We verified that the Statement covers all companies procedures in the management consolidation risk scope in and accordance control implemented bytheCompany; internal of existence the about enquired We main risks; We obtained an understanding of the process for identifying, prioritizing and validating the if theyare relevant giventhemainrisksorpolicies presented; diligence We verified due that the Statement presents the disclosures required under policies, article R. 225-105-II and 225-105-I, R. Article procedures indicators; andoutcomes,includingkeyperformance under required disclosures the and with relevant if – including scope, accordance in services, consolidation or productsrelationships, business its to due the risks – proportionate in companies all of activity relating risks the main to the and model business the presents Statement the that verified We socialandenvironmental;L.225-102-1, ParagraphIIIconcerning We verified that the Statement covers every category of information required under Article best practices; reliability, neutralityandclarity, bytakingintoconsideration,where relevant, thesector’s We assessed the appropriateness of the Guidelines in terms of their relevance, completeness, and, ifapplicable,,includinganyrelated policiesandtheiroutcomes; scope consolidation of theexposure tothemainsocialandenvironmental risksrelatingthe tothebusinessactivity in companies all of activity the of understanding an gained We represents between 24% and 100% of consolidated data of key performance performance key of data consolidated of indicators andoutcomesselectedforthesetests; 100% and 24% between work represents The documents. supporting with data was carriedoutwith a selectionof entities contributing to the reported dataand reconcile to and applied correctly that anychangestothedataare consistent; analytical procedures toverifythat data collectedare correctly consolidatedand tests of details based on sampling to verify that definitions and procedures are procedures and definitions that verify to sampling on based details of tests and maritimewaste;Measures implemented tofightagainstcorruption;CSRevaluationofthesuppliers. 47 46 45 Sustainability Services Partner Philippe Arnaud been prepared, inallmaterialrespects, inaccordance withtheGuidelines. In our opinion, the information selected by the Company and identified with the symbol √ has Conclusion selectedbytheCompanyandidentifiedwithsymbol√. information regardingthe assurance reasonableexpress to us proceduresenable these that believe We Consequently, theselectedsamplerepresents 100%ofenvironmental information. depth, particularlyregarding thenumberoftests. of our work” (for However,the most important Information). these procedures were more in- we conducted the same procedures as those described in the paragraph “Nature and scope √, symbol the with identified and Company the by selected information the to regard With Nature andscopeofourwork 2. ReasonableassuranceonaselectionofCSRinformation. as limits, significant mentioned intheStatement. present indicators training of comparability and scope reporting The Code (Codedecommerce), wedrawyourattentiontothefollowingmatters: Without qualifying our opinion, in accordance with article A. 225-3 of the French Commercial Comment material in accordance withtheGuidelines. no have we responsibilities, applicable regulatory provisions, orthefairpresentation takenasawhole, oftheinformation, our of the with Statement’scompliance the scope question into call the would that report given to misstatements and work, our on Based Opinion safety andenvironment; Measures implementedtoreduce CO of containerslostatsea;Production ofsludgefrom unburntfuel. Environmental indicators: Fuel consumption of the maritime fleet; Number of accidental discharges to the sea; Number for Crewing workforce. Safety indicators: Frequency rate of lost-time accidents for Terminals and Crewing workforce; Severity rate of accidents Number ofleavings;traininghours. Measures implemented in terms of work organization and safety at work; Certification process in terms of quality, of terms in process Certification work; at safety and organization work of terms in implemented Measures CMACGMFrance,APLAmericaLLC,KingstonFreeport Terminal, TGOMontoirdeBretagne, Group fleet. Socialindicators:Total headcountat31/12splitbyage,genderandgeographicarea; Number ofrecruitments; Paris-La Défense,2019,March the 1 KPMG S.A. 2 emissions;Measures implementedtoreduce pollution st Georges Maregiano Partner
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Report by the Statutory Auditor Statutory the by Report
2018 Corporate Social ResponsIbility Report ResponsIbility Social Corporate 2018 Copyright : CMA CGM, Thierry Dosogne, Philip Plisson, Ammar Abd Rabbo, François Lefebvre, Patrick Gherdoussi, Don Wilson, Zheng Kai, Shutterstock, Istock, creativestories.fr