act for efficiency - Carrefour Group

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Acting with simplicity

2020 CSR REPORT - June 2021. Verif ied information for the year 2020.

Context__Companies are increasingly aware that human capital is their most valuable asset: giving their employees good working conditions contributes to improving company performance.

The international Act for Change programme was implemented by Carrefour in 2019 to align management behaviours with the goals of the “Carrefour 2022” plan that was introduced in 2018 in order to meet the expectations of Carrefour customers and to support them in the food transition. It is made up of four major commitments, which are structured around concrete initiatives: “Grow and move forward together”, “Serve customers with passion”, “Act in a straightforward manner” and “Be proud of transforming our profession”.

As part of the third commitment of its Act for Change programme – “Acting with simplicity” – Carrefour allows its 322,164 employees to enjoy a secure and positive professional environment. The Group monitors their health and quality of life at work. Carrefour has implemented powerful initiatives to prevent musculoskeletal disorders, which are behind 45% of all accidents in the workplace and occupational illnesses. An essential part of the Group’s culture, it helps bolster the Company’s performance and guarantees a benign social climate across all formats. Its goal is for all of its host countries to have formalised an action plan on health, safety and quality of life at work by the end of 2020.

ACT FOR EFFICIENCY


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Our objectives and performance __

The “Act with simplicity” pillar is commitment number three of the Carrefour Group’s Act For Change programme. This pillar underpins three major aims for the Group’s employees:

Use resources with relevance and efficiency Act with speed and simplicity Empower others and oneself

Carrefour wants all of its 322,164 employees to work in a conducive and fluid work environment. The Carrefour Group therefore undertakes to:

implement a shared workplace health policy across all its countries; protect employee health and reduce the risk of workplace accidents; lead multiple innovative actions to improve quality of life in the workplace; establish constructive and regular social dialogue.

1. RESPECT HUMAN RIGHTSCarrefour recognises that promoting human rights is fundamental to conducting its activities in a responsible and sustainable manner. Carrefour therefore aims to respect them for all its own employees and the employees of its franchises worldwide. Based on the main international human rights norms and standards – such as the Universal Declaration of Human Rights, the United Nations Global Compact, the Declaration on Fundamental Principles and Rights at Work and the International Labour Organisation (ILO) Conventions, the Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises, and the United Nations Guiding Principles on Business and Human Rights human rights – Carrefour has undertaken work to identify and prioritise human rights risks in its operations and has set a number of objectives based on the results of this mapping:

compliance with local or regional laws and regulations and with branch agreements in the field of labour law and human rights in general, in all Carrefour countries, for the entities making up the Group, as well as for franchisees;

child labour: Carrefour undertakes to adhere to the strictest age rule between local or regional laws and regulations, branch agreements and ILO Conventions 138 and 182:• recruiting people (Carrefour employees and temporary employees, employees and franchises)

under the age of 18 for positions involving dangerous work is strictly prohibited.• recruiting people (Carrefour employees and temporary employees, employees and franchises)

under the age of 15 for positions involving non-hazardous work is strictly prohibited.

forced labour: Carrefour and its franchises undertake not to resort to forced or compulsory labour in any form – in accordance with the strictest rule between local or regional laws and regulations, branch agreements and ILO Conventions 29 and 105. All forms of human trafficking, directly or through providers, are strictly prohibited. overtime: Carrefour is committed to ensuring that the entities making up the Group and its franchises comply with local or regional laws and regulations, as well as branch agreements on working time, overtime, rest and leave. social benefits: Carrefour ensures that each employee or acting member of the Group and its franchises receives social benefits in accordance with local or regional laws and regulations, and branch agreements.

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2. PROTECTING EMPLOYEES’ HEALTHThe Group’s overriding aim is to preserve the health of its employees, reduce the risk of workplace accidents, innovate in terms of quality of professional life, and maintain constructive and regular social dialogue.

Since the end of 2020, all Carrefour Group countries have adopted an action plan on health, safety and quality of life at work. Local integrated teams are required to set targets, including in relation to the frequency and severity of work-related accidents, and to structure an action plan covering the following topics:

preventing risks of work accidents, work accidents occurring in the home and occupational diseases; improving work/life balance; preventing occupational stress; delivering workplace conflict management training; creating an excellent workplace; improving the level of social protection for staff.

KPIs 2018 2019 2020 Change (2019/2020)

Rate of absence due to workplace and travel-related accidents (as a percentage) 0.61 0.59 0.62 +0.3 pts

Rate of accidents at work among our employees (number of accidents/million hours worked) (as a percentage)

25.81 26.51 27.87 +1.36 pt

Workplace accident severity rate among our employees (number of days absent due to workplace accident/1000 work hours) (as a percentage)

0.79 0.81 0.85 0.04 pt

Absenteeism rate: illness (as a percentage) 4.77 4.78 5.71 +0.93 pt

Absenteeism rate: workplace accident (as a percentage) 0.55 0.54 0.57 +0.03 pt

Absenteeism rate: travel-related accident (as a percentage) 0.06 0.05 0.05 -

Number of fatalities due to an occupational accident 5 6 0 -100%

RATE OF COUNTRIES HAVING IMPLEMENTED AN ACTION PLANON HEALTH, SAFETY AND QUALITY OF LIFE AT WORK

67%

89%

100% 100%

2018 2019 2020 End 2020

+11pts

CSR

AND FOOD

TRANSITION

INDEX

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3. INNOVATING TO ENHANCE QUALITY OF LIFE IN THE WORKPLACE To support the transformation of its corporate culture, in 2019 Carrefour introduced the Employee Net Promoter Score® (E-NPS), an indicator of employee engagement. This indicator is measured through an online survey distributed among a representative sample of 20,000 employees from the Group’s nine countries. It is made up of 5 questions: a global question and one for each area of the Act For Change programme. It assesses changes in each of the four key areas making up the Act for Change programme.

In 2020, the survey was conducted between 22 September and 16 October and shows a 4-point increase in the ‘Act with simplicity’ area, compared with 2019. This result reflects the ongoing transformation within the Group.

4. ENSURING STRONG EMPLOYEE RELATIONS Within Group countries, social dialogue is governed by local collective agreements.

In this year of pandemic, social dialogue has mainly focused on managing the health crisis, not necessarily resulting in agreements.

KPIs 2018 2019 2020Change

(2019/2020)

Number of agreements signed(1) - 460 87 -81%

(1)New indicator 2019.

IN THE LAST FEW MONTH, I FEEL THAT CARREFOUR HAS SIMPLIFIED ITS OPERATING METHODS

Strongly agree

Agree more or less

Do not agree

Don’t know

Group score obtained in the last half of 2019

Group score obtained in the last half of 2020

Agreement %

59

63

Participation:

55%Number of participants:

11,594

23%

40%

5%

33%

63%

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Our plans of action __

The “Act with simplicity” commitment emphasises the importance of seamless, efficient resource management that promotes a proactive approach and a fast adaptation process. The action plans to help us deliver on our aims and achieve our objectives are as follows:

1. RESPECT HUMAN RIGHTS 1.1. Ethical principles: code of professional conduct 1.2. Deployment of human rights commitments 1.3. Provision of an alert system 1.4. Charter for the protection of human rights for international franchisees 2. PROTECTING EMPLOYEES’ HEALTH 2.1. Assessing key risks in the prevention programme 2.2. Eliminating musculoskeletal disorders 2.3. Preventing stress and psychosocial risks 2.4. Health and safety management for franchisees and temporary

employees at our Carrefour sites

3. INNOVATING TO ENHANCE QUALITY OF LIFE IN THE WORKPLACE 3.1. Developing exercise programmes to improve health for all our employees 3.2. Moving towards flexible work arrangements 3.3. Taking steps to protect employees’ work/life balance

4. ENSURING STRONG EMPLOYEE RELATIONS 4.1. International social dialogue 4.2. European social dialogue 4.3. Social dialogue in Group host countries: main collective agreements 4.4. Restructuring

1. RESPECT HUMAN RIGHTSFor the past 20 years, Carrefour has demonstrated its commitment to the protection of human rights, health and safety, and the environment through partnerships with major NGOs working in these areas, including the WWF® for environmental protection (1998), UNI Global Union for working conditions and fundamental freedoms (2001), and the FIDH International Federation for Human Rights (2000-2018). In addition, the Group has been a signatory to the UN Global Compact since 2001 and all Carrefour countries are members of the ILO.

1.1. Ethical principles: code of professional conductIn October 2016, the Group published its Ethical principles, which set out to formalise the ethical framework in which all employees of the Group are required to carry out their daily work. The Ethical principles are disseminated among all employees, including franchise partners, and signed by any new recruits. This reference framework, which each employee must know and respect, reflects the commitments made by:

the Universal Declaration of Human Rights; the eight core conventions of the International Labour Organisation (ILO); the guiding principles of the OECD; the ten principles that make up the United Nations Global Compact; the guiding principles of the United Nations; the international agreement with the UNI, renewed in 2015.

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These principles include respect for diversity, the contribution to a safe and healthy working environment, the promotion of social dialogue, the outlawing of harassment and discrimination, guarantees in relation to the safety of people and property and other commitments in relation to corruption.

Carrefour has organisational structures, policies and methods in place to ensure that its Ethical principles are adhered to and to prevent violations in its business operations, especially in terms of human rights and fundamental freedoms, health and safety of people, and the environment. These risk prevention procedures are based on the social dialogue and the Group’s diversity and health and safety policies. A clause in the franchise agreement also commits franchised staff to adhere to these principles.

1.2. Deployment of human rights commitmentsTo meet the targets that Carrefour has set itself in relation to human rights, the Group and its franchises are working on defining and implementing action plans in all of the countries in which they operate. These action plans have been codeveloped with the corporate and local HR teams, in order to adapt to the local context, legislation, cultures and practices. For the human rights issues for which doing so is relevant, Carrefour uses tools and information systems to guide the deployment of these action plans. Management and performance indicators (and indicators to show change over time) are monitored internally in order to recalibrate these action plans where necessary.

1.3. Provision of an alert systemCarrefour’s partners and employees are all permanent conduits for raising the alert when necessary.

A dispute management procedure has been incorporated into the UNI Global Union agreement, enabling complaints made by a trade union representative or a Carrefour employee to be reported to the UNI and Carrefour’s management, with assurance that the matter will be dealt with.

Carrefour has also set up its own ethics whistleblowing system that can be used by Group employees or stakeholders to report any situation or behaviour that does not comply with the Group’s Ethics Principles. This alert system covers all ethical principles themes: human rights, corruption, conflicts of interest, unfair commercial practices, accounting, fraud, security and environment, working conditions, abuse of power, harassment and discrimination. The system helps Carrefour to prevent serious violations of its Ethics Principles and to take the necessary measures when a violation does take place. It is one of the tools promoted under the agreement between Carrefour and UNI Global Union.

1.4. Charter for the protection of human rights for international franchisees Carrefour is working to ensure that its international franchisees respect human rights by systematically attaching to their contracts a charter for the protection of human rights. The charter commits franchisees to international labour rights standards, in particular the Universal Declaration of Human Rights and several ILO conventions, including the conventions on child labour, forced labour and freedom of association. In line with the Group’s commitments, the charter commits franchisees to:

not using slavery, debt bondage or forced or compulsory labour. “Forced or compulsory labour « refers to any work or service required of an individual under threat of any type of punishment and to which that individual has not agreed of his own free will; not allowing children under the age of 15 to work and to employ children under the age of 18 solely for the purpose of production, manufacture and assembly in conditions that do not endanger their health, safety or moral integrity, and that do not impair their physical, mental, spiritual, moral or social development; ensuring that workers have the right to organise themselves freely into trade unions and to be represented by organisations of their choice in order to engage in collective bargaining; ensuring good working conditions, in particular as regards working hours, by guaranteeing their health, safety and moral integrity.

By signing this charter, franchisees undertake to ensure that all employees, suppliers, sub-licensees, sub-contractors or sub-franchisees, as the case may be, comply with these commitments.

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Carrefour also encourages its franchisees to translate the charter into the Group’s local language, post it on its websites and make it available to its employees.

The charter also commits franchisees to putting in place controls to ensure that the commitments associated with them are properly met, such as visits to observe suppliers’ practices in relation to working conditions that are subject to dedicated reports to assess compliance with the charter, the implementation of corrective action plans following the results of such visits, as well as follow-up visits if relevant.

Franchisees must also authorise the Carrefour Group or any person authorised under the Group’s internal and external control system to carry out unannounced visits to check compliance with the Charter’s commitments.

2. PROTECTING EMPLOYEES’ HEALTHPreserving the health and safety of Carrefour employees is a priority for the Group. Each country has undertaken to implement and manage a plan of action for health and safety at work, aimed in particular at preventing workplace accidents and occupational diseases, maintaining a balance between private and professional life and limiting and preventing psychosocial risks.

2.1. Assessing key risks in the prevention programmeTo reduce the number and severity of workplace accidents, Carrefour puts risk assessment and prevention at the heart of its health and safety management system. Risks are assessed based on analyses conducted by prevention staff over the past few years. They have identified safety hazards around 60 workstations and devised preventive measures for each of them. This allows institutions to pilot, monitor and update their action plans for identified risks.

ILLUSTRATION:

in France, the Es@nté digital tool distributes the occupational risk prevention programme to all managers and compiles updates on events. This solution manages and coordinates two procedures:

1. Assessment of occupational risks; 2. Administrative and management control of workplace accidents and occupational

illnesses.Es@nté sends required information directly to the national health insurance system, facilitating the administrative management of workplace accidents for the line manager, HR manager, or member of the health, safety and working conditions committee. Following any workplace accident, the manager or managers analyse the circumstances using the 5M method, which examines environment, method, equipment, labour and materials. They then develop an action plan to limit or remove the root causes.Developed today for hypermarket, supermarkets and the Supply Chain, Es@nté is to be deployed across all Carrefour France legal entities and formats by 2021.

in Brazil, an annual health and prevention plan is put in place every year to tackle risks related to the working environment. It includes an ergonomic assessment and regular mapping of posts, in accordance with Brazilian legislation.

The prevention of the professional risks to which our employees are subject in stores and logistics starts with the basics: “Welcoming and integrating new employees”. To assist employees as they take their very first steps in the company, the Group countries have developed training courses to help them identify the professional risks linked to their working environment and determine how best to guard against them, giving them the information they need to grasp and the safety instructions to which they must adhere, and telling them who to go to in the event of a malfunction or a dangerous situation.

Throughout our employees’ professional lives, workplace health and safety are the cornerstone of training priorities. On top of the regulatory requirements allowing our employees to learn about and master safety rules for operating mechanical handling equipment, the safe use of machines and even how to fight fires, our employees take part in periodical training designed to make prevention a central focus in their professional activity. They receive training in first aid, the prevention of risks related to manual handling and the prevention of accidents at work.

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ILLUSTRATION:

France In order to protect employees’ health and safety at work, a training course in managing health and safety at the workplace is delivered to the managers of stores representing several formats in France. These sessions provide information on occupational health issues, the regulatory framework, the main risks in the business and the relevant prevention measures, as well as encouraging safe behaviour.

Furthermore, supermarkets in France have renewed their Health and Quality of Life in the workplace agreement.

France’s Supply Chain rolled out an innovative tool that uses virtual reality. to help employees understand the occupational risks associated with their future duties and work environments before starting the job. This means they can take the appropriate prevention measures. For example, an employee immersed in a virtual warehouse can identify the risks involved in the job. Safety instructions are provided at the same time to accelerate learning of basic workplace health and safety rules.

ILLUSTRATION:

Focus on Covid-19The Group immediately implemented strict measures to protect the health of employees and customers, most often by anticipating and going beyond the health regulations recommended by the authorities in each country. They have been adjusted daily.

Application of barrier protection methods Strengthening disinfection and hygiene protocols Installation of Plexiglas screens at the checkouts Regular supply of alcohol-based hand sanitiser gel Provision of gloves, full visor caps, masks and thermometers for employees Implementation of queueing systems at store entrances during busy periods Ground markings to enforce safety distances Specific protocols for disinfection and quarantine in the event of suspected contamination

The appropriate application of health, hygiene and safety regulations is regularly and strictly audited.

Working conditions have been adapted to protect the teams - depending on the state of the health crisis :

adjustment of store opening times closing of integrated stores in France on Sundays during the lockdown period widespread use of remote working in head offices

2.2. Eliminating musculoskeletal disordersMusculoskeletal disorders are a major cause of workplace accidents and occupational illnesses. To act sustainably, the Carrefour group invests regularly to provide its employees with handling assistance equipment (electric pallet trucks, shelving tables, pallet destackers, etc.).

More specifically, the Group’s various countries regularly seek to innovate and offer technical solutions adapted to employees’ work environments and suited to the specificities of their businesses (reduced shelving depth to limit postural constraints, warm-ups before starting work, installation of mechanical gripping devices for lifting certain items, etc.).

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ILLUSTRATIONS:

In France, Carrefour has had a unit dedicated to preventing occupational risks since 2012. In recent years, the network has pooled its efforts to address a key issue, musculoskeletal disorders, or MSDs.To reduce these risks, Carrefour has invested heavily in handling assistance equipment: automatic pallet wrapping machines, stocking carts, lift devices, etc. The Group has also conducted an in-depth study of workstation ergonomics. Analysing these workstation studies means that new store furniture can be designed and action can be taken at source to reduce the long-term exposure of employees to the risk of musculoskeletal disorders.At a handful of Carrefour France stores, warm-up exercises help employees prepare and become more aware of their body before they start work. This initiative is part of an increased drive to prevent employee accidents within the first two hours after starting the job. And it is beneficial in more ways than one. The warm-up exercises not only prepare the muscles better but also provide the opportunity to build mindfulness and team cohesion.

in Poland, employees engaged in manual and mechanical handling in shops and warehouses receive training on the steps and postures they should adopt in order to carry out their activity safely, particularly when carrying and moving heavy loads. Webinars on the appropriate postures to adopt to prevent muscle pain are also held for head office employees who work in offices or work remotely from home.

in Taiwan, questionnaires are given out to employees to ask them about their ergonomic requirements.

in Argentina, an ergonomic recommendation guide offers practical and easy-to-implement solutions for improving health and safety in the workplace for all employees in stores and at head office.

2.3. Preventing stress and psychosocial risksThe Carrefour group’s preventive approach aims to assess the main psychosocial risk factors and develop appropriate action plans. Many initiatives designed to prevent stress and psychosocial risks are adopted locally, at the initiative of a single country or entity. They include training in stress management, free call lines and psychological support.

Over the course of the pandemic, the vast majority of the Group’s countries have implemented listening and psychological support facilities for employees who felt the need to talk during this highly unusual period. In Taiwan, psychological support was offered to those quarantining or shielding – given that the health situation in the country was relatively under control, it did not seem necessary to open up the service to employees not quarantining or shielding.

ILLUSTRATION:

Carrefour France has had a free-to-call social support service since 2015 to provide solutions suited to the situations of individual employees. A team of social workers helps employees with their personal or professional issues: financial difficulties or changes of situation such as divorce, separation, move, etc. This service is part of the psychological support system that was introduced in 2012.

In 2020, Carrefour Poland set up a psychological support hotline in partnership with a charity. Employees who are victims of violence can use it to talk about their circumstances and get support from the charity’s psychologists.

In Argentina, Carrefour provides psychological support for employees who are victims of violent robbery, gender-based violence or addiction.

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2.4 Health and safety management for franchisees and temporary employees at our Carrefour sites

The network of French franchisees has access to a number of resources and initiatives implemented by Carrefour to reduce accidents in the workplace. These include training modules, workplace health and safety assessments and dedicated crisis units. For example, within the framework of the coronavirus health crisis, franchisees have received all procedures and information. Furthermore, they have access to the internal Carrefour hotline, and orders for protective devices (gels, gloves, masks) were pooled with those of other Carrefour stores at the start of the health crisis – when the equipment was scarce.

In order to minimise the risk of accidents involving temporary agency workers, significant investments have been made in France, such as:

enhanced security training for all temporary workers provided by Carrefour; participation of temporary workers in daily or weekly awareness-raising activities; analysis of the causes of each on-site work accident with the prevention teams.

3. INNOVATING TO ENHANCE QUALITY OF LIFE IN THE WORKPLACEThe Group makes a point of offering several solutions to enhance quality of life for its employees:

developing exercise programmes to improve health for all; providing easy access to digital solutions to simplify work arrangements; deploying remote or homeworking options in all Group host countries; protecting the work/life balance.

3.1. Developing exercise programmes to improve health for all our employees

Carrefour’s Act for Food transformation project features a new tag line: “we are all entitled to the best”. Going forward with that philosophy, programmes to promote employee health focusing on lifestyle and eating habits have been deployed in countries where the Group operates, particularly through sport. Programmes to discourage smoking, excess weight and sun exposure are also available to employees.

ILLUSTRATION:

Argentina, Belgium, Brazil, Italy, Poland, Romania and Taiwan have established exercise programmes, in partnership with professionals.

the “Health & Well-being” programme implemented in Brazil has seen 60% of the dishes offered to employees improved in line with the Group’s food transition initiatives, and 2500 people now take regular exercise thanks to the Gympass.

3.2.MovingtowardsflexibleworkarrangementsThe Group’s aim through the new managerial skills ushered in with the Act for Change programme is to bring about a cultural transformation, especially in the organisation of work. For the past two years, the vast majority of countries have offered staff at headquarters, where their job category allows, the option to work remotely or work from home. Working from home provides employees with flexibility: they can be more efficient and are able to avoid journeys to their usual place of work, for example. It is particularly suitable for certain job roles.

The Group also encourages the use of technology to increase flexibility and limit travel. To speed up its digital transformation, Carrefour has forged a partnership with Google. In 2018, employees were given access to new set of work tools – G Suite. Its highly versatile services facilitate sharing, collaboration and remote work with features such as Drive for file sharing, video conferencing capabilities, Group calendars, and more.

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Go Transform is a training plan designed in collaboration with Google to smooth out the transition to the new tools and teach employees how to use them. A community of ambassadors was also set up to support all users within the organisation.

In addition, the Carrefour Group has made work-life balance a central focus of its efforts to promote flexibility: in 2020, 27.1% of its employees worldwide were part-time.

Country-specific action: Inin Romania, in-store staff are free to adapt their working hours to their personal needs and distance between home and work. Each staff member must consider the needs of their colleagues, andAnd the manager defines and approves final schedules. Italy and France have established pooled work schedules, which allow shifts to be anticipated and planned several weeks in advance so as to better reconcile private and professional life. in Belgium, teams in stores know their work schedules six weeks in advance

3.3.Takingstepstoprotectemployees’work/lifebalanceTo ensure that all employees flourish in their professional activities, Carrefour is committed to promoting work/life balance. Promoting work/life balance is also one of the four pillars underpinning the Women Leaders Programme. Within this framework, the measures put in place in the Group benefit both women and men.

Daycare centres are set up at the main Carrefour sites where agreements are signed with the private nurseries in the vicinity (France, Spain and some department stores). For example, employees of the Carrefour France headquarters in Massy have had access to an on-site nursery since 2015.

The system in use in France and Italy whereby working hours are organised into blocks means that checkout assistants can structure their working time, reconciling their personal needs with requirements arising from variations in the store’s business.

ILLUSTRATION:

Carrefour France: in 2008, Carrefour France was one of the first 30 groups in France to sign the Parenthood Charter and to commit to introducing practical initiatives in this field. Since then, Carrefour has been a member of the corporate parenthood monitoring group (Observatoire de la parentalité en entreprise) and signed 15 commitments on work/life balance. Employees at Carrefour France headquarters in Massy have had access to an on-site nursery since 2015. Carrefour pays the social security reimbursement scheme for maternity leave in full. It is compulsory to take at least eight weeks of maternity leave in France and women are entitled to 16 weeks of maternity leave. on 9 March 2020, Carrefour signed an agreement on gender equality with various trade unions. This is structured around the main themes of recruitment, training, professional promotion, effective remuneration, working conditions and the relationship between work and personal life, for which the Group and trade union organisations wish to define objectives and implement concrete initiatives. On the subject of work-life balance, the agreement includes the following in particular: • support for women who wish to breastfeed with the option to have dedicated

timeslots;• support for parents with their childcare through the introduction of a common

minimum amount allocated under the conditions laid down in the agreement,• the systematic issue of a new parenthood guide whenever an employee has a child,

the main aims being to stop parents from feeling guilty in their professional role and encouraging men to assume their family responsibilities.

Carrefour Brazil extended maternity leave from four to six months and paternity leave from five to 20 days.

Carrefour Argentina has also implemented a flexible job system that includes a wage freeze with a step-by-step return from maternity leave, allowing women to work part-time for a full-time salary for up to six months after their return to work.

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4. ENSURING STRONG EMPLOYEE RELATIONS As part of its “Carrefour 2022” plan, the Group is streamlining its organisation and taking measures to improve efficiency. In keeping with its tradition of social dialogue, Carrefour has chosen to support these changes by giving priority to negotiation and by offering internal mobility, redeployment and training to the employees affected. Carrefour has experience of working with the trade unions to create exemplary mobility programmes to assist employees in this regard.

In 2019, Carrefour signed two important agreements in France: a human resources and skills planning agreement (GPEC) that includes exceptional investment in training in particular; a mutual termination of contract agreement (RCC) that is given 3,000 hypermarket employees the opportunity to retire early or continue their careers outside the Group.

The Carrefour group engages in three levels of social dialogue: international, European and national. The approach is adapted to all Group host countries and entities to cover all labour and other issues specific to the local context.

4.1. International social dialogueIn 2020, the working world faced an unprecedented health and economic emergency. This was the context in which Carrefour signed a joint declaration with UNI Global Union (international union federation) and Auchan Retail on 9 April on the sharing, analysis and implementation of good business practices in order to prevent, reduce or eliminate the risks of contagion for their employees and customers. The measures in question are broken down into the following areas: improving the health and safety regulations recommended for each employee in the countries concerned, health regulations for stores, drive pick-up points, home deliveries and logistics warehouses, welfare support measures for employees and support for employees with disabilities and pregnant women.

At its European Consultation and Information Committee meeting on 3 October 2018, the Carrefour Group – represented by its Chairman and Chief Executive Officer, Alexandre Bompard – and UNI Global Union (international union federation), represented by its General Secretary, Christy Hoffman – renewed their global framework agreement. The purpose of this agreement is to

promote constructive and continuous social dialogue that respects reputation, image and confidentiality; promote and encourage diversity and equal opportunities in the workplace via joint initiatives, mainly relating to gender balance, discrimination and violence against women; promote and encourage the defence of and respect for the basic human rights of workers – freedom of association and collective bargaining – along with their safety and working conditions at Carrefour and at supplier and franchise sites.

In addition, Carrefour representatives are invited to meet annually with trade unions in the countries where the Group operates at Global Alliance meetings organised by UNI Global Union.

The Group’s participation in the Global Deal initiative with the French Ministry of Labour since 2017 has identified Carrefour as one of the French companies that has signed the most international agreements and that contributes to upholding the values of protection for the basic rights of employees around the world.

4.2. European social dialogueIn 1996, Carrefour created its European Works Council, the European Consultation and Information Committee (ECIC), by way of an agreement signed with the FIET (part of the UNI). This agreement was renewed and added to considerably in 2011 with the UNI Global Union (International Union Federation). Since then, it has gone from strength to strength, and is recognised as one of the first of its kind in Europe thanks to the quality of its work and dialogue between employees and management. In 2019, five steering committee meetings were held, lasting a total of 31.50 hours, a training/information session was also held over 2 days, as well as a plenary session over 2 days.

Communication and consultation within the European Works Council takes many varied, innovative and complementary forms.

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An Annual Plenary meeting provides a platform to discuss many themes relating to the Group’s business, the economic climate, competitors, organisational changes and developments, diversity, etc. Carrefour’s Chairman and Chief Executive Officer speaks at the meeting every year, paving the way for discussions on the Group’s strategy. An annual information and training seminar focuses on a specific theme initially selected by the members of its Steering Committee. The theme in 2019 was professional training. This meeting is also an opportunity for a Steering Committee expert to give a presentation on the Group’s economic and financial situation. Special Committees meet to discuss issues relating to sustainable development, diversity and new technologies. Communication via a regular newsletter and a special website keep members of the Committee informed throughout the year.

ECIC members are selected on the basis of their expertise and knowledge of the subjects covered.

Carrefour also plays an active role in European sector social dialogue meetings within the European trade structure, Eurocommerce, alongside the trade union delegation from UNI Europa.

4.3. Social dialogue in Group host countries: main collective agreementsWithin Group countries, social dialogue is governed by local collective agreements. The Group continues to facilitate social dialogue, with the main collective bargaining agreements negotiated in the various countries playing a major role in the Group’s economic performance in employees’ working conditions and, more broadly, in quality of life in the workplace.

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COUNTRY-SPECIFICINITIATIVES:

France:• group collective agreement on the creation of the joint observatory for the “Carrefour

2022” transformation plan;• group collective agreement on the creation of a joint dialogue and consultation

body for franchise and management lease structures at Carrefour;• group collective agreement to establish early retirement leave as part of its human

resources and skills planning;• discretionary profit-sharing scheme at Carrefour group;• non-discretionary profit-sharing scheme at Carrefour group;• collective agreement on the head office voluntary separation plan (Carrefour 2022);• collective agreement on support for the restructuring project for Carrefour Proximité

France;• collective agreement to promote internal mobility and cover the voluntary separation

plan at Carrefour hypermarkets;• collective agreement on protection plans for employees who work for a Carrefour

supermarket or hypermarket to be brought under a franchise or management lease;• collective agreements on the annual mandatory negotiation at Rue du Commerce,

Carrefour Systèmes d’Information, Carrefour customer service, Carautoroute, Carrefour Administrative divisions France and Carrefour Property;

• collective agreement on flexible work arrangements at Rue du Commerce;• collective agreement on remote working at Interdis;• collective agreements on the terms for additional profit-sharing for 2017 at Carrefour

Banque, CARMA, Market Pay, Carrefour Administrative divisions France and at Carrefour hypermarkets;

• collective agreement on aligning work schedules at Carrefour Supply Chain;• agreement on social dialogue and the implementation of employee representative

committees at Carrefour hypermarkets SAS.

Belgium: collective agreements on collective bonuses for managers and for all levels of employees.

Spain: collective bargaining agreement (flexible work schedules, savings on the cost of fixed-term employment contracts) and the Plan to support gender equality and end harassment and unfair treatment.

Romania: amendment to the collective agreement on the minimum wage; on compensation for withholding income tax, implemented by Romanian legislation; and on the implementation of omni-channel operations.

Poland: agreement with regard to the review of the minimum wage for employees, night-shift pay, the permanent contract policy, the consideration of requests from part-time workers to increase their working hours and from full-time employees concerning their schedules.

4.4.ResponsiblerestructuringIn 2018, the Group cut back its staff – particularly at its headquarters – and sold some stores in France, Belgium and Argentina. In these three countries, restructuring plans were all backed by a sustained social dialogue process and a set of measures to help employees relocate or progress in their job search within or outside the company. These measures were put in place as part of the following agreements, negotiated and signed by the social partners:

group collective agreement on the creation of the joint observatory for the “Carrefour 2022” transformation plan; collective agreement on the head office voluntary separation plan (Carrefour 2022); group collective agreement to establish early retirement leave as part of its human resources and skills planning;

In addition, an ambitious project for cultural and managerial change was launched in 2018 and continued in 2020 to support the Group’s transformation.

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Our organization__

SCOPE All the entities of the Group are committed to implementing a policy on employee development, and in particular implementing an action plan on health, safety and quality of life at work by 2020.

The 2018 performance indicator values are defined on a like-for-like basis and so do not cover all employees over that period. These include the accident absence rate, the frequency rate, and the severity rate of accidents at work.

GOVERNANCE Act for Change programme and social relations:• the aims of the Act For Change Programme are spearheaded by each Executive Committee

in the countries making up the Group.• after a launch at the Group’s TOP 200 in March 2019, the action plans were presented by

each Country’s Executive Committee to the Group’s HR manager.• the Act For Change action plans are reviewed monthly by the HR managers of the various

countries alongside the Group’s HR manager. Human rights: the Human Resources teams of the countries in which the Group operates and its franchises are responsible for delivering on the Group’s human rights aims while supplementing them with policies and action plans adapted to their local contexts and specific features. Employee health and quality of life at work:• administrative management of accidents at work and occupational diseases is entrusted

to the line managers, to a representative of the committee on hygiene, safety and working conditions or to the Human Resources manager.

• within each organisation and each country, teams devoted to the workplace health and safety management design an action plan in line with applicable regulations and priority risks.

• in 2017, an «international health, safety and quality of life at work» network of managers responsible for these topics in the different countries of the Group met to share best practices and promote continuous improvement.

PERFORMANCE EVALUATION Audits relating to the health and safety of employees in stores and warehouses are carried out by the internal control team so as to ensure that working conditions are improved. In France, these audits analyse the levels of compliance with which Carrefour banner procedures are applied compared with the national norm, highlight the major risks identified and put forward recommendations for corrective actions shared with the team. In 2019, 12 audits were carried out across hypermarkets, 35 across supermarkets and 8 targeting the Carrefour France supply chain level. Consideration and dialogue with employees are essential elements in creating a climate of confidence that is conducive to the economic performance of the company. To support the transformation of its corporate culture, Carrefour introduced the Employee Net Promoter Score® (E-NPS), an indicator of employee engagement. This indicator, measured three times a year in each Group country, assesses changes in each of the four key areas making up the Act for Change programme and adapts its implementation accordingly. An online survey allows employees to express their views on the evolution of these pillars by responding “totally satisfied”, “satisfied”, “dissatisfied” or “totally dissatisfied”. For the “Act with simplicity” area, the subject that has been raised since 2019 is: “In the last few months, I feel that Carrefour has simplified its operating methods”.

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In recent years, each business unit in France has had a barometer that measures the satisfaction of employees and their sense of belonging and commitment, the aim being to put forward solutions for making Carrefour a better place to work. Each year, close to sixty Group entities take part in internal satisfaction surveys in the form of focus groups. In 2019, 17,000 employees from the Group’s nine countries responded to a satisfaction survey made up of around five questions, one overall and one focusing on each pillar making up the Act for Change programme.

JOINT INITIATIVES AND PARTNERSHIPS Global framework agreement with UNI Global Union World Alliance – UNI Global Union Group Global Deal with the Ministry of Labour Agreement establishing the European Works Council with the FIET European social dialogue meetings, Eurocommerce

FOR MORE INFORMATION www.carrefour.com The Group’s Ethical principles: https://www.carrefour.com/fr/rse/conduite-responsable Ethical Alert Line: http://ethique.carrefour.com/

act for efficiency - Carrefour Group

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