CARREFOUR GROUP Sustainability- LINKED BOND FRAMEWORK

JUNE 30, 2021 CONTENT

PART 1 Business Overview...... 4

PART 2 Sustainability Strategy and Performance...... 6 2.1. Sustainability Strategy...... 6 2.2. Carrefour’s approach for leading on the Food transition for all...... 6 2.3. Carrefour’s Contribution toward the United Nations Sustainable Development Goals (SDGs)...... 9 2.4. External ratings of Carrefour ESG performance...... 11 2.5. Climate change...... 12 2.6. Circular economy...... 14

PART 3 Sustainability Financing and SLB Framework...... 18 3.1. Sustainable Financing...... 18 3.2. SLB Framework...... 19 3.3. Selection of Key Performance Indicators (KPI(s)) and Calibration of Sustainability Performance Targets (SPT(s))...... 20 3.4 Bond Characteristics...... 24 3.5 Reporting...... 24 3.6 Verification...... 25

2 I CARREFOUR GROUP SUSTAINABILITY-LINKED BOND FRAMEWORK I 3 PART 1 BUSINESS OVERVIEW

Business Overview

With a multi-format network In 2018, Carrefour launched the of some 13,000 stores in more "Carrefour 2022" transformation plan, with the aim of positioning the than 30 countries, the Carrefour Group as leader of the food transition Group is one of the world's for all, based around a sustainable and leading food retailers. It has profitable growth model. more than 320,000 employees The progress of Carrefour’s ESG who help to make Carrefour performance is tracked, in particular, the world leader in the food through the evolution of our CSR and transition for everyone, Food Transition Index, a comprehensive and detailed index composed of 17 key providing customers access to performance indicators and targets, high-quality, affordable food the performance of which is measured every day. annually, disclosed in our Universal Registration Document (“URD”) and audited annually by an independent third party (for more information please refer to section 2 “Corporate social responsibility and performance” of our URD, available at www.carrefour.com). 30 In 2019, the Group reiterated its ambition to become the leader of the COUNTRIES food transition for all, by adopting its "raison d’être". 13,000 Carrefour’s position as a leading global STORES retailer gives it a unique ability to pursue transformative change across the supply chain and lead industry-wide action to 320,000 tackle some of the biggest social and EMPLOYEES environmental challenges facing us today.

4 I CARREFOUR GROUP SUSTAINABILITY-LINKED BOND FRAMEWORK I 5 PART 2 SUSTAINABILITY STRATEGY AND PERFORMANCE Sustainability Strategy and Performance

2.1. SUSTAINABILITY 2.2. CARREFOUR’S APPROACH STRATEGY FOR LEADING ON THE FOOD In January 2018, Carrefour launched, TRANSITION FOR ALL under the leadership of Alexandre The Group’s CSR methodology has Bompard, its five-year transformation evolved significantly due to the actions plan, "Carrefour 2022" in order to taken in implementing the “Carrefour respond to identified global challenges 2022” transformation plan. The by becoming the leader in the methodology is based on the following food transition for all. The objective principles: of Carrefour's business model transformation is to promote healthier, $ Transparent goals with stakeholders Alexandre Bompard. Internal food $ Working towards a positive accessible food, while committing supported at the highest level of the transition advisory committees were set transformation in market standards: to the agricultural transition and the organisation: Carrefour works with its up at Group level in integrated countries Carrefour acts for progress in market preservation of the planet's resources. partners in setting specific, quantitative and within the various professions standards through initiatives supported targets. The Group presents its short depending on the issues addressed. by retail companies, suppliers and and long-term goals in line with material $ Actions for its customers stakeholders in the value chain, issues identified with its stakeholders. integrated into products and stores: organisations and public authorities. The Group’s objectives associated Carrefour SA has also included the The integration of actions tested by These coalitions come together to with CSR and the food transition are following mission in its by-laws: customers into stores is a key marker facilitate market transformation by measured through a set of performance collectively shaping practices and "Our mission is to provide our of the methodology, as these actions indicators. The most strategic objectives bringing about large-scale changes, customers with quality services, embody the Group’s long-term are integrated into the CSR & Food which can sometimes anticipate new products and food accessible to objectives. Transition Index. This index measures regulations. The Group also takes part all across all distribution channels. an achievement rate, which is also a in different working groups to identify Thanks to the competence of our To achieve its mission of becoming criterion factored into management emerging solutions and co-build action employees, to a responsible and the leader of the food transition, the compensation. plans at a collective industry level. multicultural approach, to our Group acts at all levels to participate in broad territorial presence and to $ Dedicated governance: Governance transforming markets; directly engaging $ Implementing exclusive initiatives our ability to adapt to production bodies for CSR and the food transition suppliers, partners, and customers; and at a local or international level that and consumption modes, our have been set up at every level in the bringing innovative solutions that can serve as an industry benchmark and ambition is to be the leader of the organisation. The Group has created reshape production and consumption can change consumer standards. food transition for all." an external Food Transition Advisory modes. Carrefour uses the following Initiatives that have been successful with Committee, which is chaired by drivers to make this mission a success: consumers are applied industry-wide

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and help bring about transformation on common objectives on biodiversity, 2.3. CARREFOUR’S CONTRIBUTION TOWARD THE UNITED the market. Campaigns include “C’est transparency, health and nutrition, NATIONS SUSTAINABLE DEVELOPMENT GOALS (SDGS) qui le patron ?” (Who’s the Boss?), “Bring climate and packaging. your own bag”, returnable packaging, Carrefour's business model aims at creating value for its stakeholders and generating $ Educating and engaging customers: no-waste boxes, and the elimination of a positive impact on society. Carrefour's mission is to offer its customers quality To transform consumer habits, Carrefour services, products and food accessible to all through all distribution channels. plastic from the fruits and vegetables offers products and solutions in stores to section. Carrefour and its partners work Through its activities, Carrefour primarily contributes to 10 Sustainable Development promote sustainable consumption. This Goals ("SDG"): to identify innovative solutions, support enables Carrefour to identify and better the implementation of these solutions meet customers’ emerging societal and and, as such, suggest new ways of environmental expectations. But the producing and using products. Group also hopes to educate people $ Getting direct suppliers and about sustainability issues and co-build partners involved: Carrefour has direct solutions that everyone can adopt. relationships with thousands of farmers, Carrefour also established customer manufacturers and service providers: consultation and engagement channels to define its strategies (for example, ZERO HUNGER - The Group uses its trade relations, activist consumer groups in Spain and Group objectives: especially with its suppliers of France). Carrefour-brand products, to include - 50% reduction in food waste by 2025 vs. 2016 standards in line with CSR and the food Carrefour uses analysis and dialogue - 100% of countries have deployed transition. In 2020, Carrefour updated tools to identify material issues, and an annual Act For Food its purchasing rules to support the to define its policies and action plans communication program food transition, for example including while taking a continuous improvement - 100% of countries have a criteria and requirements to respect approach. The Group implements the dedicated local food and marine resources, protect forests, following actions, which are detailed in purchasing program in place by integrate ecodesign into packaging other sections of this document: and promote agroecology. 2020 - engaging with stakeholders and - 30,000 local partners by 2025 - Carrefour sets up voluntary consumers on societal issues; GOOD HEALTH AND collaborations with its suppliers of - defining policies and helping the WELL-BEING Carrefour-brand products and national business segments to deploy action Group objectives: brands to initiate the transformations plans and achieve objectives; necessary to bring about the food - Banning controversial substances transition for everyone. For instance, - risk analysis and materiality analysis; GENDER EQUALITY - Ensure the quality and safety of Carrefour products Carrefour offers its suppliers - and evaluating non-financial Group objectives: - 6,000 products in stores with a opportunities to work on joint projects performance. - 35% of womens top managers by nutritional benefit by 2022 (e.g., Collaboration for Healthier 2025 - 100% of countries have Life in Lyon), innovation platforms - GEEIS certification for gender implemented an action plan on (e.g., RESET project for ecodesign equality in all countries nutrition in all countries in packaging) and technical support - 100% of countries have for supply lines (e.g., development implemented an action plan on of agroecology in Carrefour Quality health, safety and quality of life at

Lines). Finally, the Group launched the work J Food Transition Pact in 2020, which unites national brand suppliers around

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2.4. EXTERNAL RATINGS OF CARREFOUR ESG PERFORMANCE Carrefour answers questionnaires from rating agencies to assess its economic, social and governance performance. CLIMATE ACTION Since 2017, Carrefour has in particular been among the top-performing companies DECENT WORK AND in the Dow Jones Sustainability World Index (DJSI). This distinction positions the ECONOMIC GROWTH Group objectives: - 30% reduction in GHG emissions Group among the top five global retailers in terms of CSR. Group objectives: (scope 1+2) by 2030 and 55% by The table below sets out the ESG rating of Carrefour by each of the listed rating - 100% of supply plants located in 2040 compared to 2010 agencies: high-risk or at-risk countries must - Reduce GHG emissions from undergo a social audit products sold in stores by 20 MT by 2030 RATING AGENCY 2016 2017 2018 2019 2020

CDP - Carbon Disclosure Project B (1) A- A- A A-

Oekom Prime C+ Prime C+ Prime C+ - (4) Prime C+ LIFE BELOW WATER 74 Group objectives: DJSI – RobecoSAM 74 69 73 77 - Increase the share of seafood 68 (2) products from responsible fishing by 2025 MSCI A A A AA AA - 20,000 tonnes of packaging saved RESPONSIBLE by 2025 (since 2017) including Sustainalytics - 75 74 70 - 15,000 tonnes of plastic CONSUMPTION AND A1+ (3) Vigeo Eiris 55 67 - 67 PRODUCTION 68 Group objectives: - 25% of products sold contributing CDP Forest - - - - - to the food transition in 2025 - 4.8 billion in sales of organic LIFE ON LAND Palm oil B A- B- B B products by 2022 Group objectives: - 15% of fresh food products sold - Deployment of a Sustainable Soy B B B- B B come from sustainable agriculture Forestry action plan on products by 2025 linked to deforestation by the end - 8 key objectives of our animal of 2025 (palm oil, wood and paper, Beef C B C B- B welfare policy deployed in all Brazilian beef, soy, cocoa, paper countries by 2025 packaging, textile fibers) Wood and paper B A- B- B- B - Guarantee the transparency and - 100% of new shopping centers traceability of Carrefour products and expansions to be BREEAM- - 100% reusable, recyclable and certified and deployment of CDP Water - - - - A- compostable packaging by 2025 BREEAM In-Use certification in - 100% of waste recovered by 2025 France on 75% of sites by 2021 (1) Change in rating system in 2016. (2) Change in rating system in 2018 - equivalent rating with new rating system. (3) Rating requested from Carrefour Group in addition to standard rating. (4) No rating in 2019.

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The Group has evaluated its greenhouse by phasing out hydrofluorocarbon cutting 20 megatonnes of CO2 gas (GHG) emissions accordingly: (HFC) gas refrigerants and limiting between 2030 and 2019; - 97% fall into scope 3 (indirect emissions, refrigerant leaks; - product use: reducing emissions from activities upstream of Carrefour Scope 3: Carrefour has set itself the from product use (especially for fuel itself, as opposed to scopes 1 and 2, goal of achieving a 29% reduction in and consumer electronics) by 27.5% direct emissions); its indirect GHG emissions (scope 3) by 2030, compared with 2019 (2°C - 76% of the Group’s scope-3 emissions by 2030, compared with 2019. scenario); are from products and packaging sold - outbound transport: reducing CO2 In view of its main indirect emissions in stores; emissions linked to outbound transport drivers, Carrefour has structured its by 20% by 2030, compared with 2019 - and 12% from the use of fuel sold. Climate Action Plan around three (2°C scenario). Carrefour experiences a number of priority areas that together account for risks and opportunities arising from 90% of scope 3 emissions: climate change. To start with, regulatory - purchases of goods and services: pressure incites stores to achieve reducing emissions from goods and greater energy efficiency. Second, there services purchased by 30% by 2030, is the physical risk of extreme climate compared with 2019 (well below events, such as flooding, hail and snow, the 2°C scenario). This target means 2.5. CLIMATE CHANGE damaging roofs that were not designed $ Context and definition to undergo them. Then we have the fact that new consumption habits (such In 2015, the COP21 Paris climate as a preference for local produce or Total Scope 1 & 2 GHG emissions agreement set goals for limiting global organic food), deriving from concern Scope 3 GHG emissions warming, advocating reorientation of the on environmental protection, will exert 3 500 000 (Only transport is reported here, the Group 3 009 535 is working to develop a methodology of reporting world economy toward a low-carbon of the emissions linked to the products) an increasing influence on purchase 3 000 000 model and the phase-out of fossil fuels. decisions and Group preferences. 2 500 000 This sets a major challenge for large- 2 031 138 1 830 539 scale retail, whose environmental impact $ Policy and performance 2 000 000 1 663 797 extends not only to the actual stores but 1 500 000 1 281 377 Scope 1 and Scope 2: Carrefour has through the entire logistics chain, from 1 000 000 -30% vs 2019 production site to the customer’s home. set itself the goal of achieving a 30% 361 476 335 961 342 636 337 224 500 000 239 845 reduction in its GHG by 2030 and a -20% vs 2019 At its Shareholders’ Meeting of May 29, 55% reduction by 2040, compared 0 2020, Carrefour announced new goals, to 2019. In-store consumption of gas, 2010 2018 2019 2020 2030 approved by the Science Based Targets electricity and refrigerants are the main initiative, a partnership between the contributors to the Group's total direct Carbon Disclosure Project (CDP), the UN greenhouse gas emissions. Global Compact, the World Resources $ Joint initiatives and partnerships: Institute (WRI) and the WWF®. To meet these targets, Carrefour pledges - Signatory to the French Business Climate Pledge to focus on: For more detailed Carrefour has been certified, along - Consumer Goods Forum (CGF) network - cutting energy consumption, information on the with more than 800 other companies, - Science Based Target Initiative (SBT) action plan, please in light of its commitment to keeping - increasing the proportion of renewable - Climate Disclosure Standard Board (CDSB) refer to our URD. the global temperature increase to energies in power consumed, - Carbon Disclosure Project (CDP) - Reporter Services below 2°C by 2100 compared to pre- - reducing refrigerant-related CO2 Membership industrial temperatures. emissions by 2025 compared to 2010, - Food Transition Pact

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2.6. CIRCULAR ECONOMY $ Policy and performance Packaging waste avoided 20 000 Carrefour’s policy seeks DEVELOPING ECODESIGN AND (cumulative since 2017) to reduce the quantity of (IN TONNES) A CIRCULAR ECONOMY FOR packaging it places on the PACKAGING market as well to improve the $ Context and definition use and ultimate disposal of the packaging that remains 6 155 More than 350 million tonnes of plastic necessary, by guaranteeing, 3 460 are produced each year worldwide, 1 867 for example, its re-use or Group 2018 Group 2019 Group 2020 Target 2025 with 40% for packaging. And the figure recycling. is constantly on the rise. Because Scope : 100% of 2019 consolidated sales excl. VAT packaging is considered throw-away by nature and of low cash value, and because collection infrastructures are not highly effective, the environmental As the results of the CSR index are above so that performance relative to this impact is very considerable, as we the targets set for 2020, Carrefour has objective can be measured. revised its packaging reduction target can see with the proliferation of waste Carrefour has achieved its target of 80% to 20,000 tonnes by 2025, including plastic in the ocean. of recyclable packaging for its own- 15,000 tonnes of plastic. The rise in packaging volumes is closely brand organic products. Moreover, the linked to the boom in large-scale retail: Carrefour is targeting 100% reusable, target of discontinuing plastic packaging packaging facilitates goods transport, recyclable or compostable packaging for organic fruits and vegetables was extends product conservation and helps for its own-brand products by 2025. achieved for 70% of produce in 2020 consumers identify product differences. A common reporting system across and this figure will be 90% in 2021. If major retail is responsible for the several retailers is being developed emergence of large quantities of single- use packaging, it is also ideally placed New Plastics Economy European Plastic Pact Pacte National Participate in the market transformation to bring about the necessary changes Global Commitment Plastic Pact Poland sur les Emballages Plastiques in packaging practices, especially in the involvement across the entire Carrefour Mission Zéro Plastique Get customers involved light of growing consumer awareness ecosystem is needed to address Défi Zéro Plastique on the issue. this issue and smoothly bring in the Implement innovative solutions Loop Carrefour wishes to spearhead a retail necessary changes. to transform practices (Re)set packaging industry transition toward a more Consumers are getting behind the 6,154 tonnes of packaging avoided since 2017 reasonable and measured consumption Make our initiatives visible in stores Developing bulk grocery shopping: 1,100 stores equipped efforts undertaken: according to Possibility of bringing refillable containers to all stores (deli section) of packaging, by working alongside a comparative study by Alkemics its rivals to promote the innovations OpinionWay, although the health crisis eco-designs of product and packaging has resulted in a slight decline in the suppliers, by raising consumer relative importance accorded to this $ Joint initiatives and partnerships: awareness on the matter, and by issue, it still remains highly relevant - Global Declaration on Plastics & New Plastics Economy: signed in December 2018 partnering with NGOs in the field. An and topical. Despite the impact of the - National pact on plastic packaging for 2025: founding signatory in 2019 initial analysis covering 800 suppliers health crisis, customers continue to - (RE)SET: innovation accelerator on replacements for problematic packaging in 2018 estimated the yearly amount express a preference for recyclable or standards (non-recyclable plastics, nomad packaging, etc.) of Carrefour own-brand packaging at even reusable packaging across many - Loop: launch of the Loop by Carrefour project in cooperation with Carrefour own- more than 120,000 tonnes. Concerted categories of food products. brand and national brand suppliers

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COMBATING FOOD WASTE AND transformation stage, 14% at the retail of its activities and for improving FOOD INSECURITY stage, 14% at restaurants and in catering, operational efficiency. Methods such and 19% in domestic consumption (2). as discount management for products $ Context and definition At each step in the farming and food nearing the sell-by date and recovery of Every year across the planet, 1.3 billion chain, there are measures to be taken unsold produce open opportunities for tonnes of food end up uneaten (1), on cutting down waste In 2018, cutting down waste. though still edible, with no health risk. This global issue took on a whole new The cost of wasting farming produce Carrefour evaluated food waste dimension in 2020 as the health crisis (excluding fish and seafood) is estimated throughout the value chain, from the worsened the situation of vulnerable at 750 billion dollars per year worldwide. farm to the consumer’s table, for five of people and low-income households. In environmental terms, food waste its best-selling fresh products: avocados, It became even more important to cut accounts for the release of 3.3 Gt of cod, carrots, bread and chicken. This down on the amount of perfectly healthy greenhouse gases per year, making it evaluation yielded a number of solutions and nutritious food being wasted so that the third biggest polluter in the world, throughout the value chain: crop it could be given to the most deprived. after the United States and China. growing & harvesting, sorting, packaging & transport, quality control, distribution Food waste has a number of causes: and consumption. These solutions overproduction, calibration criteria, could eventually be rolled out across all interruption in the cold chain, poor the products sold by Carrefour. stock management, supply-demand mismatching, etc. In France, 32% Cutting down on food waste is a $ Policy and performance of food waste is generated at the major challenge for Carrefour, both for agricultural production stage, 21% at the shrinking the environmental footprint Carrefour shares the Consumer Goods Forum (CGF) goal of achieving Reduction of in-store food waste 2 a 50% reduction in food waste by (% OF REDUCTION IN TONNES PER M ) 2025 (compared to 2016). Carrefour’s Group 2019 Group 2020 Target 2025 global policy on cutting down food -9,7% waste has three focus areas: in-store measures, cooperation with suppliers, and consumer education. Carrefour’s -28,7% ambition is to ensure operational excellence in its own waste reduction -50,0% and to catalyse action among stakeholders (suppliers and consumers) Scope : 75% of 2019 consolidated sales excl. VAT Including: Argentina, France, Poland and Italy throughout its business ecosystem.

$ Joint initiatives and partnerships: - Consumer Goods Forum - Too Good To Go pact: bringing together industry, retail, NGOs, trade organisations and digital operators in the fight against food waste

(1) Source : Organisation des Nations Unies pour l’alimentation et l’agriculture (FAO), 2019 (2) Source : Ademe, 2016

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In June 2019, Carrefour amended and extended two credit facilities, Sustainability incorporating an innovative Corporate Social Responsibility (CSR) component in the first CSR-linked credit transaction Financing and SLB in the European retail sector. As part of these credit facilities, an investment structure dedicated to the food transition Framework for all has been put in place, funded by Carrefour and the banks, depending on the evolution of Carrefour's CSR & Food Transition Index. The related sums are Carrefour actively contributes to 3.1. SUSTAINABLE FINANCING used to finance “Act for Food” initiatives, agricultural food transition projects and, such funding supplier projects linked to or any other internal project conducted The Group is committed to contribute more generally, to numerous initiatives, the food transition (e.g., transitioning to by the Issuer as part of its CSR (corporate to the financing of sustainable projects such as combating food waste, energy and initiatives. organic farming and switching to more social responsibility) strategy. consumption and the overall impact of animal-friendly farming methods). The Carrefour Foundation, which its operations on climate change (for For the avoidance of doubt, SLBs celebrated in 2020 its twentieth birthday, more information please refer to section Through the issuance of Sustainability- are not "sustainable bonds" or "green has encouraged and funded numerous 2 “Corporate social responsibility and Linked Bonds (“SLBs”), Carrefour is bonds" where the proceeds would sector-based and local stakeholders performance” of our URD, available on committed to further reinforce the be exclusively applied to finance or committed to promote sustainable www.carrefour.com). In 2018, Carrefour alignment of its funding strategy with its refinance green or social projects or a agricultural practices, in France, in the launched "Je Participe" - crowdfunding sustainability goals. combination of both green and social projects. Carrefour does not intend to 8 other integrated countries of the and crowd-lending platform - enabling it To this end, Carrefour has decided comply with the Green or Social Bond Carrefour Group (Argentina, Belgium, to invest in local agricultural projects in to include the option to issue SLBs Principles as published by ICMA. Brazil, Spain, Italy, Poland, Romania and line with the Food Transition alongside (as further described in Section 3.2 Taiwan) and around the world. with its customers. (SLB Framework) below) into its Euro Medium Term Notes programme in 3.2. SLB FRAMEWORK 2021, which includes Sustainability This Sustainability-Linked Bonds Performance Targets that are aligned Framework (the "SLB Framework") is with the sustainability goals identified by aligned with the five core components Carrefour. of the Sustainability-Linked Bond In that respect, regardless of whether Principles published by the International or not the applicable Sustainability Capital Market Association ("ICMA") in Performance Target(s) has/have been June 2020 as may be amended from reached (as defined below), Carrefour time to time (the "ICMA SLBP") (3). may elect to dedicate part of the The ICMA SLBP are voluntary process proceeds of any SLB issuance to fund guidelines that outline best practices CSR Projects. for financial instruments to incorporate For the purpose of SLB issuance, "CSR forward-looking sustainability Projects" means the "Act for Food" outcomes and promote integrity in project (as described in the 2020 URD) the development of the SLB market by

(3) See: https://www.icmagroup.org/green-social-and-sustainability-bonds/sustainability-linked-bond-principles-slbp/

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clarifying the approach for the issuance of a SLB. CLIMATE CHANGE The following five core components form the basis of the ICMA SLBP: KPI 1: Group Greenhouse Gas (GHG) Emissions reduction (Scope 1 and 2, in tCO2e) 1. Selection of Key Performance Indicator (“KPI”) and Calibration of Sustainability $ Sustainability Performance Targets (SPT(s)): Performance Targets (“SPTs”) Carrefour has set itself the target of reducing its GHG emissions by 30% by 2. Bond Characteristics 2030 and 55% by 2040, compared to 2019. Gas, electricity and refrigerants 3. Reporting consumed in stores are Carrefour's main direct sources of greenhouse gas 4. Verification emissions. To this end, Carrefour is committed to the following areas of work: Sustainability-Linked Bonds ("SLBs") - reducing energy consumption, are any type of bond instrument for - increasing the share of renewable energy in energy consumption, which the financial and/or structural - Reduce CO2 emissions from refrigerants by 2025, compared to 2010, by characteristics can vary depending on specifically to projects or business phasing out hydrofluorocarbon (HFC) refrigerants and limiting refrigerant whether the issuer achieves predefined activities meeting sustainability criteria, leaks. Sustainability/Environmental, Social the use of proceeds is not a determinant and Corporate Governance (“ESG”) in the SLB categorization. $ Scope and methodology for measurement: objectives. In that sense, issuers of Regardless of whether or not the Baseline : 2019 SLBs are further committing explicitly applicable SPT(s) has/have been Scope : integrated stores in the Group's integrated countries (Argentina, to future improvements in sustainability reached, Carrefour may elect to Belgium, Brazil, Spain, France, Italy, Poland, Romania, Taiwan). outcome(s) within a predefined timeline dedicate part of the proceeds of any SLB Metrics : tonnes of CO2 equivalent. that are relevant, core and material issuance to fund CSR Projects. to their overall business. SLBs are a Methodology : in order to assess the CO2 emissions linked to energy forward-looking performance based consumption (electricity, gas and fuel oil) and to store refrigerants, conversion instrument. 3.3. SELECTION OF KEY factors (from kWh and kg to kg CO2 equivalent) from internationally recognized PERFORMANCE INDICATORS organizations, such as the IPCC (Intergovernmental Panel on Climate Change) In this context, Carrefour intends to and the IEA (International Energy Agency) are used. BUs also have the option issue SLBs which would comply with (KPI(S)) AND CALIBRATION of using specific national factors. the ICMA SLBP and thereby intends to OF SUSTAINABILITY define ESG objectives that are material PERFORMANCE TARGETS to the Group's core sustainability and (SPT(S)) business strategy (as described in Section 2 above). The relevant KPI(s) Carrefour has selected the below three 2020 and SPT(s) will be selected by Carrefour KPI(s), which are core, relevant, and INDICATOR Units vs 2020 2019 2018 2019 prior to each issuance of SLB under material to its business and measure Carrefour 's EMTN programme and will progress against its sustainability Scope 1 GHG emissions t CO2 -15% 698,695 822,116 879,081 be specified in the final terms of the commitments. The SPTs described relevant SLB issue. following pages have been calibrated Scope2 GHG emissions t CO -4% 965,101 1,008,422 1,152,057 for each KPI and reflect the level of 2 The net proceeds of the issues of SLBs ambition Carrefour is ready to commit Total scope 1&2 GHG emissions t CO2 -9,1% 1,663,797 1,830,539 2,031,138 will be used for the Group's general to and its sustainability strategy as corporate purposes. Carrefour does not described in Section 2 (Sustainability commit to allocate the net proceeds Strategy and Performance).

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CIRCULAR ECONOMY CIRCULAR ECONOMY KPI 2: Tonnes of packaging avoided KPI 3: Food waste generated by the stores (in tonnes/m2)

$ Sustainability Performance Targets (SPT(s)): $ Sustainability Performance Targets (SPT(s)): Carrefour's packaging policy aims to reduce the quantity of packaging placed In line with the objective of the Consumer Goods Forum (CGF), Carrefour on the market but also to improve the use and end of life of those that are still aims to reduce its food waste by 50% by 2025 compared to 2016. To this needed by ensuring, for example, their reuse or recyclability. end, Carrefour's overall food waste reduction policy is based on three levers: Carrefour's objective was to avoid the placing on the market of 20,000 tonnes in-store actions, collaboration with suppliers and consumer awareness. The of packaging by 2025 (cumulative since 2017), including 15,000 tonnes of Group's ambition is to be irreproachable in its activities but also to play a plastic through the elimination of unnecessary packaging or the placing of leading role in the fight against waste within its ecosystem, by involving all the place of eco-design projects. other stakeholders (suppliers and consumers).

$ Scope and methodology for measurement: $ Scope and methodology for measurement: Baseline : 2017 Baseline : 2016 Scope : sales in integrated countries (Argentina, Belgium, Brazil, Spain, France, Scope : integrated stores in the Group's integrated countries (Argentina, Italy, Poland, Romania, Taiwan). Belgium, Brazil, Spain, France, Italy, Poland, Romania, Taiwan). Metrics : tonnes of packaging (cumulative since 2017). Metrics : tonnes of food waste per square meter of in-store sales area. Methodology : accounting for packaging reductions linked to eco-design Methodology : evaluating and consolidating data on in-store food waste is a projects or the elimination of plastic packaging products or stores. The weight pioneering process on which Carrefour is working with the Consumer Goods of packaging saved or plastic avoided is multiplied by the number of products Forum. Carrefour has deployed a tool for monitoring food waste in stores sold over the period considered when this is still active. which allows it to monitor changes in the percentage reduction in its food waste compared to the 2016 reference year. The indicator calculation method is based on the standard food waste accounting referent of the Food Loss and Waste Accounting and Reporting Standard (or FLW Standard).

Packaging waste avoided Reduction of in-store food waste (cumulative since 2017) (% OF REDUCTION IN TONNES PER M2) (IN TONNES) 20 000 Group 2019 Group 2020 Target 2025 -9,7%

-28,7% 6 155 3 460 1 867 -50,0% Group 2018 Group 2019 Group 2020 Target 2025 Scope : 75% of 2019 consolidated sales excl. VAT Scope : 100% of 2019 consolidated sales excl. VAT Including: Argentina, France, Poland and Italy

22 I CARREFOUR GROUP SUSTAINABILITY-LINKED BOND FRAMEWORK I 23 PART 3 SUSTAINABILITY FINANCING AND SLB FRAMEWORK

3.4 BOND CHARACTERISTICS or before the date of publication of Carrefour's URD, the interest step up (as The financial characteristics of any SLBs described above) will be applicable. issued by Carrefour under its EMTN programme will be detailed in the corresponding bond documentation 3.5 REPORTING (i.e. the final terms). In order to provide investors with The failure by Carrefour to satisfy any of adequate information about the the applicable SPT(s), specified as being progress made on the KPI(s) and the applicable in the relevant final terms, achievement or not of the SPT(s) set out on the relevant target observation date in this SLB Framework and in the terms will give rise to an interest step up (as and conditions of the SLB, Carrefour will specified in the relevant final terms) (the provide relevant reporting on an annual "Sustainability Trigger Event"). For the basis, and in any case for any date/ avoidance of doubt the relevant final period relevant for assessing the trigger terms may specify more than one SPT(s) of the SPT(s) leading to an interest step and more than one target observation up of the relevant SLB. date. Such reporting will be included in Any Sustainability Trigger Event will a dedicated section of Carrefour's result in an interest step up (as specified URD or published on its website as a in the applicable final terms), applying to separate report or document and kept the relevant SLBs as at the date specified readily available and easily accessible in the relevant final terms. on Carrefour's website (https://www. carrefour.com). If for any reason, Carrefour does not publish the applicable sustainability Such reporting will contain: The reporting may also include when robustness and reliability of the selected performance report, the assurance - the level of the relevant KPI(s) as at 31 feasible and possible: KPI(s), the rationale and level of ambition report or, if applicable, the SPT December in each year; - a qualitative or quantitative explanation of the proposed SPT(s), the relevance verification assurance certificate, on of the contribution of the main factors, and reliability of selected benchmarks - an assurance report issued by an and baselines, and the credibility of the external verifier on an annual basis including M&A activities, behind the evolution of the performance/KPI(s) on strategy outlined to achieve them (the confirming the level of the applicable "SPO"). KPI(s); an annual basis; and - a verification assurance certificate - illustration of the positive sustainability The SPO will be made available on provided by the external verifier impacts of the performance Carrefour's website. confirming the level of the KPI(s) improvement. against the applicable SPT(s) following 2. Post-Issuance Review each date of assessment of the SPT(s); 3.6 VERIFICATION Carrefour's performance of each KPI(s) and against the applicable SPT(s) at the 1. Pre-Issuance Review - information in relation to any change relevant target observation date will be to the levels of the KPI(s) used as a Carrefour's SLB Framework has been verified by an external verifier with the baseline, of the Baseline Date and/ reviewed by Vigeo Eiris who provided relevant expertise at least once a year. or of the SPT(s) in the event of any a second party opinion confirming To this end, the external verifier will issue recalculation made in accordance with the alignment with the ICMA SLBP five assurance reports as further described in the terms and conditions of the SLBs. core components and the relevance, section 3.6 (Reporting) above.

24 I CARREFOUR GROUP SUSTAINABILITY-LINKED BOND FRAMEWORK I 25 PART 3

The external verifi er means Mazars, or any such other qualifi ed verifi er of third party assurance or attestation services appointed by Carrefour in replacement of the initial external verifi er who will provide an assurance report. In the event of a recalculation made pursuant to the terms and conditions of the SLBs, the consistency of the proposed revision with Carrefour's ESG Disclaimer strategy and with the initial level of ambition of the SPT(s) will be confi rmed Certain statements, estimates and opinions made in this SLB Framework are forward-looking statements. Phrases such as “aim”, “plan”, “intend”, “should”, “anticipate”, “well-placed”, “believe”, by the external verifi er, as a pre- “estimate”, “expect”, “target”, “consider” and similar expressions are generally intended to identify requirement to such recalculation. forward-looking statements. Forward-looking statements are based on current expectations and assumptions which may or may not prove to be correct and are subject to a number of risks, The external verifi er assurance report uncertainties and other important factors that could cause actual results, performance, achievements will be made publicly available on or events to diff er materially from what is expressed or implied by those statements. Many of the factors Carrefour's website as provided in that could cause actual results, performance, achievements of or events involving the Group to diff er materially from its expectations are outside of its control and not predictable, including, among other section 3.6 (Reporting) above. things, general business and economic conditions globally, industry trends, competition, changes in government and other regulation and policy, including in relation to the environment, health and 3. Amendments to this Framework safety and taxation, labour relations and work stoppages, interest rates and currency fl uctuations, Any future updated version of this SLB changes in its business strategy, and political and economic uncertainty, including as a result of Carrefour may review this SLB global pandemics. As such, undue reliance should not be placed on the forward-looking statements Framework that may exist will either contained herein. Any forward-looking statement is based on information available to the Group as Framework from time to time, including keep or improve the current levels of of the date of this statement. All written or oral forward-looking statements attributable to the Group its alignment to updated versions of transparency and reporting disclosures, are qualifi ed by this caution. No liability is accepted by the Group in respect of the achievement of or the ICMA Sustainability Linked Bonds in connection with any such forward-looking statements or assumptions. Neither Carrefour nor any including the corresponding review by of its offi cers, employees, agents or affi liates makes any express or implied representation, warranty Principles as and when they are released, an external verifi er. The updated SLB or undertaking with respect to the information, opinions or forward-looking statements contained with the aim of adhering to best Framework, if any, will be published on herein, and none of them accept any responsibility or liability as to their accuracy or completeness or practices in the market. Carrefour may for any loss howsoever arising, directly or indirectly, from any use of or reliance on such information, Carrefour’s website and will replace this opinions or forward-looking statements or otherwise arising in connection therewith. Other than also review this SLB Framework in case Framework. in accordance with legal and regulatory obligations, Carrefour undertakes no obligation to publicly of material changes in the perimeter, update or revise any forward-looking statement, whether as a result of new information, future methodology, or data accessibility, and 4. Recalculation events or otherwise. The information contained in this SLB Framework does not purport to be in particular in the event of a change to comprehensive and, unless otherwise specifi ed therein, has not been independently verifi ed by any Any changes (i) to the calculation independent third party. Nothing in this SLB Framework constitutes legal, fi nancial, regulatory or the KPI(s), the Baseline Date and/or the other advice or a recommendation with respect to any securities or fi nancial instruments. This SLB SPT's calibration in the context of any methodology of any SPT(s), or (ii) in Framework does not constitute an off er to sell or the solicitation of an off er to buy any securities recalculation made in accordance with data due to better data accessibility, or fi nancial instruments and nothing contained herein shall form the basis of any contract or commitment whatsoever. the terms and conditions of the SLBs. or (iii) in the Group's perimeter, which, individually or in aggregate, has a Such reviews may result in this SLB signifi cant impact on the levels of the Framework being updated and amended SPT(s), the level of the KPI used as a from time to time. The updates, if not baseline, of the baseline date and/or the minor in nature, will be subject to the SPT(s) may be recalculated in good faith prior approval of Vigeo Eiris or any such by the Carrefour to refl ect such change, other qualifi ed provider of second party in accordance and subject to with the opinion. terms and conditions of the SLBs.

26 I CARREFOUR GROUP SUSTAINABILITY-LINKED BOND FRAMEWORK I 27 www.carrefour.com @GroupeCarrefour

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