2017 Corporate Responsibility Report For the 2016 fiscal year CORPORATE PROFILE With annual sales of over $12 billion and over 65 000 employees, Super C, Food Basics, Adonis and Première Moisson, as well as METRO is a leader in food and pharmaceutical distribution in 258 drugstores, chiefly under the Brunet, Metro Pharmacy and Québec and Ontario, where it operates or supplies a network of Drug Basics banners. 942 food stores under several banners, including Metro, Metro Plus, RETAIL NETWORK TABLE OF CONTENTS 2 Message From The President Québec Ontario Total And CEO Supermarkets 204 134 338 Metro Metro 3 Message From The Senior Director Metro Plus Of Corporate Affairs Discount stores 93 125 218 4 Our Corporate Responsibility (CR) Super C Food Basics Approach - Our Four CR Pillars Neighbourhood stores - Our Materiality Analysis Marché Richelieu 59 - Our Governance Structure Marché AMI 187 - Awards And Recognition Marché Extra 104 350 Achievements In 2016 Partners 9 Adonis 2 Adonis 11 9 - Delighted Customers 24 Première Moisson 1 Première Moisson 25 20 - Respect For The Environment Total 680 262 942 29 - Strengthened Communities 38 - Empowered Employees Drugstores 184 74 258 46 2016 Highlights Brunet Pharmacy Brunet Plus Drug Basics Brunet Clinique Clini Plus ABOUT THIS REPORT This corporate responsibility report covers the 2016 financial year: the pharmaceutique Inc. and Brunet drugstore network) and the 52-week period that ended on September 24, 2016. This report was activities of our partner Première Moisson. published in May 2017 and significant events that occurred between the end of the 2016 financial year and the end of February 2017 In this report, "METRO" refers to the corporation and "Metro" were therefore also included in this report. refers to our store banner. This report is focused on our food-related activities in Québec and The report was reviewed by the internal audit team but was not Ontario (supermarkets, discount stores and neighbourhood stores), audited externally. our pharmacy-related activities (McMahon Distributeur METRO INC. 2017 CORPORATE RESPONSIBILITY REPORT 2017 1 MESSAGE FROM THE PRESIDENT AND CEO I am pleased to present our latest report, which highlights the Through the years, we have seen our customer’s expectations achievements of the first year of our 2016–2020 Corporate change. Our customers want to find the products they need at Responsibility Plan. Our performance this past year attests to a fair price but also expect businesses to respect their personal our growing maturity in corporate responsibility (CR). values. They are increasingly well informed, have a better understanding of the impacts of industrial activities and want We have always aimed to make CR a shared value within the products that are manufactured in conditions that are respectful of company and I am especially proud of the level of mobilization that people and the environment. We have adopted a business strategy we reached this year and the ownership that our teams have taken that places the customer at the core of our activity and we intend to of our programs. provide them with the best possible experience in every one of our Structuring projects for METRO and society banners. We firmly believe that our corporate responsibility strategy will contribute to the achievement of this objective. The agri-food sector plays a key role in society: it provides the food we need and is an important engine of our economy. It must remain That is how the integration of corporate responsibility into our strong and we feel that METRO has a role to play in this regard. business plan takes on its full significance. In fall 2017, METRO will We know that the agri-food sector currently faces a number of mark its 70th anniversary and corporate responsibility will remain challenges. Simply consider the impacts of climate change, a solid foundation for our business as we move forward. I am the pressures on resources and the vulnerability of workers in certain convinced that this commitment will contribute to METRO’s strong regions around the world. All of the activities in the supply chain reputation as a successful company that is stimulating to work for are impacted, including our own business activities. and a brand that inspires trust and respect. When we unveiled our 2016–2020 CR Plan, I explained that we had In closing, I would like to thank all the colleagues who resolutely developed a serious, considered approach to ensure that our and thoroughly contributed to launching, developing and assuring activities were in line with our business strategy and contribute the sustainability of these programs, along with our suppliers and to the common good. other stakeholders. It was in that vein that we undertook a number of structuring projects in 2016. They help us better respond to current economic, social and environmental issues and prepare us for the future with solid foundations that we continue to build upon. In early 2017, we released our Responsible Procurement Framework Eric R. La Flèche and Supplier Code of Conduct—two tools to better manage our supply chains that constitute a key lever to provide our customers with the responsible products they seek. This is in line with our vision of being the retailer offering the food experience best adapted to the needs of consumers in years to come. METRO INC. 2017 CORPORATE RESPONSIBILITY REPORT 2017 2 MESSAGE FROM THE SENIOR DIRECTOR OF CORPORATE AFFAIRS A collective effort In terms of our commitment to our communities, for several years, we have been working to counter food insecurity through the 2016 was marked by the close collaboration between our teams Récupartage/One More Bite food redistribution program. This past to implement our new corporate responsibility (CR) plan. When we year served as a springboard for the program: we donated over developed the 2016–2020 strategy, we intended to establish clear 1 000 tonnes of products to community organizations—double the priorities and align our CR commitments and business practices. amount we gave last year. After a full year of implementation, we are able to assert that this culture of corporate responsibility is increasingly integrated into our Now that we have attained the objectives set out in our first activities. Of course, there is still much work to be accomplished but roadmap, we aim to establish new levers to enhance our we continue to progress and reach major milestones. environmental performance. Therefore, in 2016, we pursued our longstanding programs, such as our waste management efforts, Our responsible procurement initiative is a good example of what and especially focused on reducing food waste. We also launched we have achieved. Through the project, I had the pleasure of seeing new programs to reduce our GHG emissions in key sectors such as how determined teams were to better understand the workings of energy consumption, refrigerants and merchandise transport. our supply chains and how genuinely committed METRO executives were to integrate the approach into our business practices. With the The coming year will enable us to further structure our approach release of our Responsible Procurement Framework and Supplier and work toward the implementation of our programs to ensure Code of Conduct, we sought to share our direction and give a clear that they continue to yield value for the corporation, for our signal to our industry. We hope that the initiatives will encourage customers and for communities. Today, we have in place the other organizations to do the same and further develop their competent and skilled teams that we will continue to educate responsible practices. We believe that collective efforts throughout and mobilize in order to reach these objectives. the supply chain will lead to real progress. In early 2016, we implemented a new employee code of conduct, which served as a reference for our supplier code of conduct since we could not require our suppliers to adopt practices that we had not implemented ourselves. We also released our diversity policy. We each come to work with a different background, abilities and Marie-Claude Bacon values and METRO respects, values and benefits from these differences and the skills of each of its employees. METRO INC. 2017 CORPORATE RESPONSIBILITY REPORT 2017 3 OUR APPROACH TO CORPORATE RESPONSIBILITY METRO aims to provide the best We recognize that we, as a corporation, have a duty to society. We intend to assume these responsibilities through the following customer experience in each of its commitments: banners. This vision is anchored in a rigorous business plan and great Ensure METRO’s financial Offer customers fairly Build solid business Demonstrate to society that strength and deliver the priced products that meet relationships with our suppliers METRO carries out its activities discipline throughout its returns that our their needs and in an ethical and implementation. It is also supported shareholders expect requirements through Enable the communities in environmentally responsible by our firm intention to be an responsible procurement which we do business to benefit manner from a sustainable Treat our employees fairly from METRO’s activities exemplary corporate citizen through development perspective and provide an ethical and the adoption of ethical business stimulating work practices and the strong commitment environment of our executive team to our corporate responsibility approach. OUR FOUR CR PILLARS METRO’s approach to corporate responsibility is based on four pillars under which priorities were selected according to the corporation’s most significant economic, social and environmental impacts. Delighted Respect for the Strengthened Empowered customers environment communities employees • Ensure food quality and safety • Optimize our buildings' • Invest in the communities • Ensure occupational health energy consumption that we serve and safety • Promote health • Manage our waste • Support local suppliers • Promote an ethical and • Offer responsible products respectful work environment • Enhance the energy efficiency of our merchandise transport • Offer a work environment focused on positive • Optimize our packaging and relationships printed materials • Develop talent METRO INC.