CSR SECTION OF THE 2016 MANAGEMENT REPORT EMPLOYEES ENVIRONMENT page 5 page 21 PARTNERS CUSTOMERS page 39 page 49 SOLIDARITY page 59 APPENDIX page 65 2 CSR section of the 2016 management report I FOREWORD Groupe Auchan announced the reorganisation of its The external auditors use this protocol as a basis governance at the end of 2015. This saw the entity for their checks. With effect from 2016, Auchan being split into three large stand-alone businesses, France and Alinéa also fall within the scope of this all coming under the Auchan Holding umbrella: protocol. Auchan Retail, which encompasses all the food In their conclusion for financial year 2015, the retailing formats (hypermarkets, supermarkets, convenience stores, drive-through outlets and external auditors “did not identify any significant e-commerce sites) anomaly liable to call into question the fair presen- Immochan, the retail property arm tation of the CSR information, taken as a whole”. Oney, the banking activity. The auditors made two observations, the first re- garding the exclusion of the French hypermarkets This transformation was prompted by an ambition, from the gas indicator, and the second the difficul- shared by all three of the businesses above, to ty of comparing 2014 and 2015 carbon emissions improve their performance levers, acquire greater from refrigerants, due to a change in the reporting leeway and enhance their flexibility and ability to period, which was redefined when the reporting take swift action. protocol was updated during the period. No such Beyond the structural changes that this transition observations have been made regarding 2016. entails, 2016 was an opportunity to redefine business projects in order to keep up with the The balance sheet for 2016 incorporates the data, ever-evolving expectations of employees, now consolidated, for Chronodrive and for all the customers and other stakeholders. sites opened or acquired that came under our ban- The launch of such a large number of new pro- ners between 1 October 2014 and 30 September jects has not, however, diminished the businesses’ 2015. It reflects the changes in each indicator long-standing ambition to be recognised for their across all geographic regions and formats, insofar ethics. as such changes can be compared. As tangible evidence of this course of action, an For each Auchan Holding business, the progress International Committee has been in charge of made and any problem areas are identified with drafting, implementing and monitoring Corporate the help of the corporate teams’ review work and Social Responsibility (CSR) polices since late 2008. a detailed analysis for each business at the end of It promotes the sharing of objectives through the financial year. These findings serve as a basis common policies and shared best practices and for corrective actions. Beyond the publication of ensures that its members assimilate labour-related earnings, this provides an ideal opportunity to re- and social issues. The company has been com- member the very purpose of the reporting exercise municating on such issues since 2010. Its resolve and illustrates the benefits of ever-deeper em- was underpinned further in 2016 when Auchan ployee involvement, creating momentum behind Retail International joined the Global Compact a responsible approach that lends itself to the ex- network, launched by the United Nations in 1999 pression of local initiatives, nurturing commitments and long-supported by some of our entities. on a broader scale. Under Article 225 of the Grenelle 2 Act, Auchan The businesses of Auchan Holding see this reorga- Holding and Oney are required to communicate nisation as a chance to review their policies, crea- certified qualitative and/or quantitative data in ting material and immaterial value. This objective respect of their entire business with regard to can only be sustained through a constant pursuit of 42 CSR issues. A reporting protocol, available to excellence, driven by an openness that implies the all contributors, sets out clear, uniform proce- cultivation of relationships built on trust. dures across all sites. It is updated every year in response to consolidation problems reported in certain countries or with certain store formats and to reflect changing regulations. CSR section of the 2016 management report I 3 4 CSR section of the 2016 management report I EMPLOYEES As major employers, Auchan Retail, Immochan and Oney take the responsibility they have towards their 351,474 employees very seriously. Mindful of the importance of safety in the workplace and quality of working life, and eager to forge a trusted relationship with each and every individual, all Auchan Holding entities draw on the diversity of their employee bases to move forward and cultivate a sense of responsibility and sharing. CONTENTS WORKFORCE BREAKDOWN AND ANALYSIS 6 LABOUR DIALOGUE AS A LEVER FOR SOCIAL PROGRESS 8 WELCOMING NEW TALENT 10 CONTRIBUTING TO THE PERSONAL DEVELOPMENT OF EACH EMPLOYEE 10 HEALTH, SAFETY AND WORKING CONDITIONS 12 COMBATING INSECURITY AND PREVENTING HEALTH RISKS 15 DIVERSITY AND EQUAL OPPORTUNITY, A CORPORATE AFFAIR 16 FOSTERING AND SUPPORTING THE INTEGRATION OF PEOPLE WITH DISABILITIES 17 SHARING IN THE COMPANY’S SUCCESS 18 ENCOURAGING INNOVATION 19 CSR section of the 2016 management report I 5 EMPLOYEES WORKFORCE BREAKDOWN AND ANALYSIS > TRENDS IN THE WORKFORCE BUSINESS At 30/09/2015 : 346,800 employees At 30/09/2016 : 351,474 employees +1.3% 335,905 345,396 7,702 2,741 2,304 2,396 889 941 Retail Banking Other Retailing Retail Banking Other Retailing property 0.7% 2.2% 96.9% property 0.7% 0.8% 98.3% 0.2% 0.3% As at 30 September 2016, the businesses within Auchan Holding’s scope employed 351,474 people across the 15 countries in which they operate. This marks a 1.3% increase on 2015. Employee numbers have changed to varying degrees in different geographical regions. The workforce in Asia, for instance, rose by 4% with the opening of 38 new sites. The Western European workforce was stable on 2015 (dipping by 0.1%). The “Other” category comprises Alinéa and Little Extra. The sharp decrease in the number of employees in this category stems from the incorporation of e-commerce and Chronodrive employees into the Auchan Retail workforce numbers, before comprised in “Other”. > BREAKDOWN OF THE WORKFORCE > BREAKDOWN OF PERMANENT/FIXED-TERM EMPLOYEES BY GEOGRAPHICAL REGION AS AT 30/09/2016 BY GEOGRAPHICAL REGION AS AT 30/09/2016 Total 69.1% 30.9% 150,665 123,746 Asia 39.7% 60.3% 90.4% 76,851 Western Europe 9.6% 212 Central & Eastern 92.3% 7.7% Europe Africa 65.6% 34.4% Africa Central & Eastern Western Asia 0.06% Europe Europe 42.9% 21.9% 35.2% PERMANENT FIXED-TERM Africa is included in this breakdown in 2016 following the ope- 60.3% of the Asian workforce is employed under fixed-term ning of new stores in Senegal in June 2015 (4 supermarkets contracts. The disparity with the other geographical regions with a total workforce of 212). is due to local employment practices. In China, fixed-term contracts (which can be renewed only once) can be as long as 10 years. Employers therefore tend to prefer such contracts. 6 CSR section of the 2016 management report I EMPLOYEES > BREAKDOWN OF FULL-TIME/PART-TIME > BREAKDOWN OF THE WORKFORCE BY AGE BRACKET WORKFORCE AND GEOGRAPHICAL REGION AS AT 30/09/2016 Total 13.4 % 28.4 % 44.2 % 14.1 % Total 81.4% 18.6% Asia 13.1 % 34.1 % 47.6 % 5.2 % Asia 93.5% 6.5% 15.2 % 21.5 % 42,6 % 20.7 % Western Europe 64.5% 35.5% Western Europe Central & Eastern 84.8% 15.2% Central & Eastern 11 % 28 % 39,9 % 21.1 % Europe Europe Africa 100% Africa 15 % 59 % 24.1 % 2.4 % FULL-TIME PART-TIME <25 25-35 35-50 >=50 Number of full-time contracts has not changed in relation to The percentage of the workforce aged 25 and under 2015, accounting for 81% of the workforce. decreased whereas the percentage aged 50 and over increased. There was a sharp rise (+68%) in the proportion of Russian employees aged 50+. This was because large numbers of persons in that age bracket were hired as a result of changes to legalisation that led many people to return to work. > TURNOVER RATE* IN THE PERMANENT WORKFORCE BY GEOGRAPHICAL REGION The overall turnover rate fell between 2015 and 2016 30.9% (from 18.8% in 2015 to 16.8%), although it remained high in 27% certain regions. The introduction during the period under consideration of policies aimed at securing employee loyalty, notably in Central and Eastern Europe, helped to 19.2% 18.8% improve the stability of the workforce. 16.8% 14.5% 11.4% 10.8% This was notably the case in Romania, where a new integration programme entitled “My first year at Auchan” 4.7% was launched. The objective is to enable new employees 0% to move up the pay scale faster through more regular Africa Central & Eastern Western Asia Total appraisals. Europe Europe *The turnover rate is calculated from 1 October 2015 to 30 September 2016.1 N-1 N > TREND IN THE NUMBER OF HIRES UNDER PERMANENT CONTRACTS BY GEOGRAPHICAL REGION The total number of hires at Auchan Holding decreased -28.1% 59,578 from 59,578 to 42,807. 42,807 New hires in Central & Eastern Europe fell between 2015 and 2016. The number of hires had risen in 2015 with the acquisi- 28,349 tion of stores in Poland and Romania. Western Europe registered an increase of 12.4%, mainly 17,825 driven by a resumption of hiring in France and Italy when the 16,944 15,062 employment protection plans implemented in 2015 came to 13,404 10,730 an end.