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THE KNOWLEDGE WE BUILD IS KNOWLEDGE WE SHARE LEADING PARTNER FOR LUXURY ACROSS THE MIDDLE EAST 2015 SUSTAINABILITY REPORT www.chalhoubgroup.com This is an environmentally friendly brochure, printed with 100% recycled paper and vegetable oil. CO2-EMISSIONEN GEPRÜFT TÜV AUSTRIA SERVICES GMBH At the Chalhoub Group, the knowledge we build is knowledge we share. Throughout the years, we have built our expertise in luxury, intimate knowledge of Middle East markets and deep understanding of the region’s consumers. We share this OUR SUSTAINABILITY PERFORMANCE knowledge with our partners and together, we build successful brands in the region. Sustainability Highlights 2015........................................................... 5 Value Chain ...................................................................................... 6 Education .......................................................................................... 8 We believe that building and sharing our knowledge on Gulfanisation ................................................................................... 12 environmental and social issues help us make our business more Our Employees ............................................................................... 15 sustainable. A few examples of how knowledge sharing makes UNGC Membership ........................................................................ 18 Chalhoub IMPACT .......................................................................... 20 our business better and stronger are: optimising the way we use Environment, Health and Safety .................................................. 28 energy and natural resources, promoting quality, health and safety Our Journey .................................................................................... 30 practices, responsible behaviour such as recycling, supporting education, engaging and encouraging our employees to take THE CHALHOUB GROUP ownership and participate in volunteering activities. About Us .......................................................................................... 32 How We Conduct Our Business .................................................... 36 After 60 years of development in the region, we are committed Stakeholder Engagement ............................................................. 38 to continuously building and sharing our knowledge with our CEOs Statement ............................................................................. 41 partners and colleagues. GRI G4 Content Index .................................................................. 43 FOREWORD SUSTAINABILITY Michel Chevalier, former HIGHLIGHTS 2015 chairman of Paco Rabanne, is an expert in luxury brand Sustainable engagement strives to make a positive IMPACT management and retail. on society and the environment, while adding value to the A well-known figure in the business and making the Chalhoub Group a stronger, more luxury industry, he teaches at innovativeOUR and PEOPLE successful business.OUR PEOPLEWe do this by committing INSEAD, ISML and HEC in Paris, to sustainable business practices, engaging our employees and has co-authored various and supporting the communities. women hired 250 in KSA Chalhoub retail luxury business management OUR PEOPLE12,680 %56.5 80 Emirati employees women hired 39,282 86% INCREASE books. 250 GCC countries UAE in the UAE (from 65 in 2014) employees in KSAnationals Chalhoub retail 21,160 59 out of 80 of our Emirati 2014 2015 OUR PEOPLE employees in the UAE are women 12,680 250 women hired Training Hours %56.5 in KSA Chalhoub retail80 Emirati employees 86% INCREASE 39,282 Michel Chevalier joined the Chalhoub Group Board in 2015. GCC countries UAE in the UAE (from 65 in 2014) employees 21,160 nationals 80 Emirati employees OUR PEOPLE in the UAE (from 65 inout 2014 of) 80 of our Emirati 2014 2015 59 %86 INCREASE 39,282 employees in the UAE21,160 are women “Learning does not necessarily come from a set of official textbooks. As commercial activities are 2014 2016 Training Hours 59 out of59 80out of 80 of our women hired Training Hours 250 %56.5 Emirati employees changing very fast, and as customers constantly evolve, it is very useful to exchange ideas and in KSA Chalhoub GCC retail countries in the UAE are women 250 women of our Emirati 12,68012,680 56.5% nationals processes from one sector to another or from one product category to the other. %56.5 hired in80 KSA Emirati employeesemployees in employees GCC nationals GCC countries UAE in the UAE (from 65 in GIVING2014) BACK TO OUR COMMUNITIES86% INCREASE 39,282 employees 21,160 nationals womenin retail hired the UAE 250 in KSA Chalhoub retail 12,680 59 out of 80 of our EmiratiareMore womenthan 50 regional initiatives 2014 2015 But there is much more to “sharing knowledge”. Just speaking and exchanging ideas can also employees in the UAE are women 8,181 Al Elem pins sold as part of 12,680 during 2015. Training Hours %56.5 80 Emirati employeesemployees the Education Retail Campaign, 86% INCREASEraising AED 409,050, building39,282 provide a useful experience. The more one staff member speaks about the way he or she feels GCC countries UAE in the UAE (from 65 in 2014) 2,677 participants employees 21,160 two schools in Gaza. nationals volunteering 3,800 hours. about a given task, the more he or she realises what are the different elements or challenges of this 59 out of 80 of our Emirati 2014 2015 employees in the UAE are women Training Hours 5,389 donations from employees task; in other words, to understand why this task is more meaningful. 8,181 Al Elam pins sold as part of supporting 37,530 people in need, 13,685 school backpacks the Education Retail Campaign (ERC), families with children and refugees donated to children in the region. GIVING BACKraising TOAED 409,050 OUR buildingaffected COMMUNITIES two schools by natural in disasters.Gaza It is well known that when individuals broaden their scope and see their activities as part of the More than 50 regional initiatives 13,685 school backpacks GIVING BACK TOMore OUR than COMMUNITIES50 regional initiativesdonated to childrenAED8,181 in 1,853,476the Al region Elem in funds pins raised sold as part of2,677 participants big picture, they become more effective. Everybody knows the value of experience. Sharing the (440,638 from employees, during 2015. the Education Retail Campaign,volunteeringEducation 3,800 for hours. 550 refugee AED 554,525 from ourGIVING customers, BACK children in our learning centre knowledge of different members of the same group is a nice way to speed up the experience More than 50 regional initiatives and AED 858,313 from the Chalhoub 8,181 Al Elem pins sold as part of raising AED 409,050TO OUR, building in Jusoor, Lebanon. during 2015. 2,677 participantsthe Education Retail Campaign, Group to match the donations). Education for 550 refugee children two schools in Gaza. building of everybody. GIVING BACK TO OUR COMMUNITIESvolunteeringraising 3,800 AED hours. 409,050, building COMMUNITIES 5,389 donations from employees 2,677 participants two schoolsin our in literacyGaza. centre in Jusoor Lebanon supporting 37,530 people in need: volunteering 3,800 hours. Families with children and refugees More than 50 regional initiatives 8,181 Al Elem pins sold as part of 14,000 pins sold as part of Hope affected by natural disasters. during 2015. When one compares different independent groups of companies, it seems that those which have the5,389 Education donations Retail Campaign, from employees for Cancer Patients campaign, 5,389 donations from employees raising AED 409,050, building AED 1,853,476 funds raised 2,677 participants raising AED 832,000 donated to Friends supporting 37,530 people in need,supportingtwo schools 37,530 13,685in Gaza. people school backpacks in need, (440,638 from employees, been built on the sharing of individual knowledge, the development of individual staff members and volunteering 3,800families hours. with children and refugees of Cancer Patients (including group13,685 match) school backpacks donated to children in the region. AED 554,525 from our customers, affected by natural disasters. families with children and refugees donated to children in the region. affected by natural disasters. and AED 858,313 from the Chalhoub Group the building of a team seem to have much better operating performances. The Chalhoub Group to match the donations). 5,389 donations from employees supporting 37,530 people in need, believes it is and wants to remain part of this group of companies.” AED 1,853,476 in funds raised 13,685 school backpacks families with children and refugees donated to children in the region. 17,158,034 kWh of electricity affected by natural(440,638 disasters. from employees, Education for 550 refugee AED 554,525 from our customers,AED 1,853,476children in funds in our learning raised centre and AED 858,313 from the Chalhoub in Jusoor, Lebanon. (21% increase from 2014 (14,174,422 kWh). Group to match the donations).(440,638 from employees, Education for 550 refugee AED 1,853,476 in funds raised AED 554,525 from our customers, children in our learning centre (440,638 from employees, Education for 550 refugee 52,989,111 litres of water Michel Chevalier AED 554,525 from our customers, childrenand AED in our 858,313learning centre from the Chalhoub in Jusoor, Lebanon. and AED 858,313 from the Chalhoub 17,158,034 kWh of electricity Group toin Jusoor, match Lebanon. the donations). (7% reduction from 2014 (56,829,864 litres). %70 Advisor to the Board Group to match the donations).