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Group's Duty
of Care Plan As a leading food retailer and a key player in the global economy, Carrefour is well aware of its social responsibilities. Carrefour’s retail approach and business model are closely linked to the renewability of natural resources, the quality and quantity of agricultural production, the engagement of its employees and the confidence of consumers and all its stakeholders. For 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) (2000-2018). Carrefour has been a signatory of the United Nations Global Compact since 2001. It is also one of the pioneers in implementing practical initiatives to improve environmental and social practices in global supply chains. Such initiatives include its membership of the Initiative for Compliance and Sustainability and the sustainability self-assessment tool for suppliers. These commitments are relayed internally across Carrefour’s own business operations and more widely among its external stakeholders. Carrefour has thus long been committed to preventing the risk of violations of human rights and fundamental freedoms, the risk of serious harm to people's health and safety, and the risk of damage to the environment – the areas addressed by the French duty of care law no. 2017-399 of March 27, 2017. This document both describes the Carrefour Group's Duty of Care plan required by the new law and constitutes a report on its effectiveness. It details the processes and methods used by Carrefour, the additional measures taken as part of the Compliance Plan and the policies, initiatives and performance measures implemented to deploy this plan. This approach is based on Carrefour’s Ethics Principles, a Code of Conduct which defines the framework for the day-to-day behaviour and actions of its employees. The Supplier Charter and Ethical Standards Charter serve to instil these principles throughout Carrefour's global value chain; both form an integral part of all purchase contracts for goods and services in all the countries in which Carrefour operates. This commitment is in evidence throughout the Group’s various business activities in the form of many other initiatives, including partnerships, dialogue with stakeholders, CSR strategy, and social dialogue. It takes shape through the commitment of the women and men who make up the Carrefour group.
The Carrefour
Group' s Duty
of Care Plan
Group's Duty
of Care Plan
- 1. DUTY OF CARE RISK MAPPING AND GOVERNANCE Summary - 1.1. Producing the risk map for the duty of care - 1.1.1. Risk analysis methodology - 1.1.2. Consulting stakeholders and updating the risk analysis - 1.2. Identified priority risks - 1.3. Governance of the duty of care plan
- GENERAL FRAMEWORK - 2.1. Ethics principles: Code of professional conduct - 2.2. Commitment charters - 2.3. Purchasing rules - 2.4. Joint initiatives and partnerships - 2.4.1. Sustainability self-assessment: getting SME suppliers involved - 2.4.2. CSR rating of at-risk own-brand suppliers - 2.4.3. The “food transition for all” pact: getting the national brands on board - 2.5. Carrefour Foundation initiatives to protect fundamental freedoms
- ASSESSMENT AND MEASURES TO MITIGATE DUE OF CARE RISKS - 3.1. Serious environmental damage - 3.1.1. At Carrefour - 3.1.2. At Carrefour's direct suppliers - 3.2. Serious violations of human rights, health and safety - 3.2.1. At Carrefour - 3.2.2. At Carrefour's direct suppliers - 3.2.3. Among Carrefour's customers
- WHISTLEBLOWING FACILITY
Group's Duty
of Care Plan Identifying risks therefore involves several approaches: the business approach involves cross-referencing the Carrefour process risk map (more than 400 processes listed) with the CSR compliance risk database in order to identify "sensitive processes" and describe the high-risk situations encountered in these sensitive processes; the geographical approach involves identifying country risks based on recognised external public indicators; the sector approach (based on the “NAF” business sector classification used in France). This approach involves reviews of impacts already encountered by the Group, internal and external consultations and assessments, and thematic sector studies. This combination of approaches is supplemented by cross-referencing with other information sources, including: a regularly updated list of known human rights or environmental violations by companies operating in the retail industry or in comparable or related sectors; consultations with NGOs actively involved in environmental and human rights issues and a documented analysis of known actions taken by NGOs that campaign for human rights and the environment in order to identify and cross-reference issues of interest and the main countries concerned. Each risk situation is therefore assessed for its inherent risk based on the probability of occurrence and the severity of its potential impacts. Severity is assessed on the basis of five types of potential impact on the Group or its stakeholders: business, financial, legal, human/social and reputation. Rating scales and assessment indicators are assigned to each of the two assessment criteria. After assessment, the risk situations and related risks are then ranked in order of importance using a risk classification and ranking grid (minor risks, significant risks or major risks, according to a combination of probability and severity). To conduct this duty of care risk analysis, Carrefour’s teams not only consult their own internal teams, but also draw on the expertise of their partners – FIDH, WWF and the trade unions – to identify high-risk situations.
1.1.2. Consulting stakeholders and updating the risk analysis
The duty of care risk mapping process, defined and implemented by the Group's Risk Management Department in 2017, aims to provide Group management with an objective and comprehensive overview of the challenges and risks associated with the duty of care. It addresses risks related to Carrefour’s business operations and activities in all countries where it operates or sources products. This risk mapping process is monitored and updated on a regular basis. In 2019, the duty of care risk map was updated and now involves, for identifying and reviewing the main risks, Carrefour's internal and external stakeholders, depending on their areas of expertise. Updating the risk map therefore involved consultations with external experts, NGOs and trade unions that are all Carrefour stakeholders. In 2019, the risk severity and probability ratings were updated by these stakeholders in order to update the risk map. The risks associated with health, safety and human rights for the Group's employees were in particular assessed by the trade unions within the framework of the European Information and Consultation Committee (CICE). These results were used to update the risk map and gave rise to several discussions within the CICE Steering Committee throughout the year.
Group's Duty
of Care Plan
1.2. Identified priority risks
92 risks were identified and assessed using the method detailed above. For example, the priority risks for Carrefour concerning the environment, health, human safety and human rights are the following: Risks for the environment Environmental impact resulting from production methods and raw materials selected by direct suppliers Environmental impact of introducing non-recyclable packaging onto the market, particularly plastics Food and non-food wastage due to the generation and non-recovery of waste in warehouses and stores Environmental impact of site, store and warehouse energy consumption (electricity, gas and fuel oil) Lack of traceability of the raw materials and ingredients used in the composition of the products distributed (geographical origin, production methods, etc.) Greenhouse gas emissions resulting from refrigeration and air conditioning equipment (insufficient renewal of installations, use of gases with high global warming power, etc.) Risks related to health, safety and human rights Wage disparities between the lowest and highest wages Insufficient commitment to skills development Psychosocial risks related to people's jobs and how their work is structured (stress, "bore out", "burn out", etc.) Uncivilised behaviour in the workplace Inadequate representation of women, especially in decision-making positions Lack of recognition of employees' union involvement Insufficient consideration of the arduous nature of work Lack of clarity in the way in which tasks are defined Sexual harassment Insufficient representation and/or discriminatory treatment in relation to disability, particularly regarding hiring Moral harassment Obstacles to the creation of associations by non-salaried third parties (consumers, producers, etc.) such as cooperatives or collectives Lack of recognition of individual performance, particularly in terms of remuneration
Group's Duty
of Care Plan to collective bargaining, prohibition of all forms of discrimination, harassment and violence, workers’ health and safety, decent wages, benefits and conditions of employment, working hours, ethics principles, and respect for the environment. The charter prohibits clandestine or undeclared subcontracting, and has a cascade effect by requiring suppliers to demand the same social compliance standards of their own suppliers. In a spirit of reciprocal commitment, the charter does not allow Carrefour to impose any conditions on suppliers that would prevent them from complying with the charter.
2.3. Purchasing rules
Application: Own brand suppliers The Purchasing Rules provide the framework for the social and environmental compliance of purchases of all certified products. In other words, all products purchased by Carrefour, whether or not for retail sale, food or non-food, must meet specifications defined by Carrefour and undergo specific quality checks. Updated in 2018, they apply to all Group entities and all production countries, in line with their risk levels established during country risk mapping. The rules specify the following: all suppliers must sign a Commitment Charter; the process and compliance rules for social audits; all of the Group’s purchasing entities must appoint a person in charge of social and environmental compliance; and an action plan to bring sensitive production phases and raw materials into compliance with specific purchasing rules. Procurement opportunities and purchasing rules depend on the level of risk assigned to each country on the country risk map.
2.4. Joint initiatives and partnerships
In addition to strong restrictive frameworks like the purchasing rules, Carrefour has set up voluntary initiatives and partnerships with its own-brand and national brand suppliers. Some examples are included below.
2.4.1. Sustainability self-assessment: getting SME suppliers involved
Since 2007, Carrefour has provided all of its suppliers with an online sustainable development self-assessment test, developed in conjunction with the World Wildlife Fund (WWF®) and based on the ISO 26000 social responsibility standard. In France, at the request of suppliers and in collaboration with four supplier associations, Carrefour has shared with its suppliers the know-how it has acquired over the last ten years in conducting self-assessment tests and has helped to roll out a test for the entire sector, supported by the same standard, Valorise. The first shared self-assessment campaign was conducted in 2017 in French and English. The test was translated into German and Spanish in 2018, It is used by nine retailers.
2.4.2. CSR rating of at-risk own-brand suppliers
Application: Own brand distributors In 2019, clothing supplier assessments began incorporating a CSR rating in addition to the usual commercial, quality, and delivery (supply chain) ratings. This CSR rating includes the results of social audits, environmental assessments and alerts, management of suppliers' suppliers, component traceability, supplier certifications and good CSR practices (in addition to mandatory compliance). Carrefour’s local teams meet with the evaluated suppliers to share best practices and areas for improvement and they take this rating into account when selecting suppliers. A CSR rating will also be developed and applied to suppliers from other sectors in 2020.
2.4.3. The “food transition for all” pact: getting the national brands on board
Application: Suppliers of national brands After making commitments in relation to its own-brand products, Carrefour is now rallying all of its suppliers around a pact for the food transition for all. The aim of the pact is to commit our suppliers to supply us with products and in-store tests that meet our commitments to the food transition: packaging, biodiversity, climate, traceability and responsible products. The first volunteer candidates under the pact must present an ambitious action plan in the first quarter of 2020. Once this has been validated by Carrefour, the candidates will join the group of partners who have signed up to the pact. In return for reporting on their programme using performance
Group's Duty
of Care Plan indicators, they will get access to an exclusive testing programme in all our European stores and will be able to attend a Food Transition Week in September 2020.
2.5. Carrefour Foundation initiatives to protect fundamental freedoms
Created in 2000, the Carrefour Corporate Foundation has a public interest mission to promote the food transition in the societies in which it operates. It does this by working in three areas: tackling wastage, promoting sustainable and solidarity-based agriculture and upholding its societal commitment in relation to local stakeholders. These projects serve the general interest and round out Carrefour’s actions in countries and regions where the Group or its direct and indirect suppliers are present. Leveraging Carrefour’s staff and their skills, the Foundation focuses on facilitating access to sustainable food for all. The Foundation’s work is aligned with Carrefour’s food transition strategy as it helps the weakest and most vulnerable members of society, both in France and abroad, to live with more dignity and to have access to a healthier, balanced and diversified diet. In 2019, it invested a total of €7,481,652 to support 74 projects in the following areas: 43% to support the agricultural industry’s transition over to a more sustainable and inclusive form of agriculture; 33% to support anti-waste projects that involve making use of products that are unfit for sale and making them available to the neediest; and 24% to support food-related social commitments.
3. ASSESSMENT AND MEASURES TO MITIGATE DUE OF CARE RISKS This section describes two distinct areas of risk: those relating to serious environmental damage and those relating to human rights, health and safety. Measures for assessing, preventing and mitigating these risks are presented in three sections: at Carrefour; among suppliers and for customers.
3.1. Serious environmental damage
3.1.1. At Carrefour
The measures taken to prevent and reduce serious environmental damage within Carrefour’s direct scope cover store-related and e-commerce activities. The aim of these measures is to: reduce food waste generated by activities; reduce the environmental impact of packaging; reduce and recycle waste generated by activities; reduce energy and refrigerant consumption in order to limit the impact of operations on the climate; reduce water consumption; optimise logistics flows, distribution activities and non-retail activities to limit their environmental impact; reduce the impacts of construction and renovations on biodiversity. Assessing the situation Environmental reporting: Deployment of an annual reporting system for Carrefour sites to ensure an effective assessment of the Group’s response to its environmental challenges.
Group's Duty
of Care Plan To find out more: 2019 universal registration document - See sections: 2.2.2.2 Limiting the environmental impact of our sites 2.2.2.1 Combatting food waste 2.2.2.3 Developing eco-design and the circular economy for packaging 2.2.2.4 Combating and preparing for climate change Carrefour.com and CSR report: Summary of targets and extra-financial performance Limiting pollution at our sites and restoring biodiversity Combating food waste Committing to ecodesign and a circular economy for packaging Fighting and preparing for climate change
3.1.2. At Carrefour's direct suppliers
Carrefour’s supplier listing and responsible purchasing policy is strengthened each year to cover the main ecosystems under threat and gradually encourage all stakeholders, especially those involved in the supply chain, to adopt responsible manufacturing processes. The measures taken to prevent and reduce serious environmental damage among our suppliers include: promoting and developing agricultural practices with a low environmental impact; specific supplier management for sectors or geographies at risk; reducing the climate impacts of Carrefour's purchases of goods and services. Assessing the situation Environmental audits: Carrefour’s teams are in the process of determining their suppliers’ vigilance level and methods in terms of overall environmental compliance, based on action already taken. Environmental audits are performed at the premises of suppliers that manufacture labelled or certified Carrefour-brand products, and where certain production facilities or key processes may present environmental risks. Climate accounting: Introduction of an annual climate accounting system along the whole length of the supply chain to determine the highest-emission items and sources. Key prevention and mitigation measures introduced Promotion and development of sustainable agriculture
- Developing the organic offering and making it affordable for everyone (target of achieving sales of €4.8 billion in 2022): long-term contracts, support for transitioning to organic farming, developing organic stores, developing product ranges by incorporating more nationally produced organic products, sold loose without any packaging.
- Promoting agroecology via Carrefour Quality Lines: including agroecology in product specifications, support through progress plans.
- Providing financing solutions: financial services for the agricultural industry, creation of a food transition fund, showcasing transition projects on crowdfunding platforms, commitment of the Carrefour Foundation to sustainable agricultural practices. Developing local projects
- Incorporating environmental requirements into the Good Factory Standard.
- IPE project to assess the environmental performance of factories in China;
- Clean Water Project in Asia (to prevent or counteract industrial pollution risks). Climate commitments Carrefour is seeking the commitment of its own brand and national brand suppliers to cut their GHG emissions. After analysing the practices of 50 of its largest national-brand suppliers, Carrefour has set itself a double target: it wants its ten largest to have adopted an approach that is consistent with the Science Based Targets initiative and its 30 biggest to have committed to targets to tackle climate change by 2025.
Group's Duty
of Care Plan To find out more: 2019 universal registration document - See sections: 2.2.1.2 Promoting and developing sustainable agriculture 2.2.1.2 Raw material supplies at risk 2.2.2.4 Combating and preparing for climate change 2.2.4.1 Managing our supply chain Carrefour.com and CSR report: Promoting and developing sustainable agriculture Promoting sustainable fishing and aquaculture Protecting forests and biodiversity Committing to ecodesign and a circular economy for packaging Fighting and preparing for climate change Managing the supply chain
3.2. Serious violations of human rights, health and safety
Carrefour’s policies cover activities related to stores, e-commerce, head offices and the manufacture of products by suppliers. They address the following topics: non-compliance with the universal declaration of human rights (discrimination related to gender, sexual orientation, ethnic origin, forced labour, child labour, etc.); non-compliance with the principles of the International Labour Organisation (ILO) (social dialogue, trade union rights, collective agreements, fair remuneration and decent wages, structuring of working time, etc.); damage to the health and safety of employees (working conditions, occupational illnesses, accidents at work, etc.); consumer health and safety issues (quality, compliance and product safety).
3.2.1 At Carrefour
Assessing the situation Social reporting: Deployment of an annual reporting system for Carrefour sites to ensure an effective assessment of the Group’s response to its labour challenges. Health and safety audits in stores and warehouses: Audits relating to the health and safety of employees in stores and warehouses are carried out by the internal control team. The purpose of these audits is to monitor the implementation of procedures concerning health and safety at work and the use of best practices, as well as compliance with regulatory requirements
Group's Duty
of Care Plan Useful links: 2019 universal registration document - See sections: 2.2.3.1 Growing & moving forward together 2.2.3.2 Acting with simplicity: Enabling employees to evolve within a favourable and constantly evolving work environment 2.2.3.3. Taking pride in transforming our professions Carrefour.com and CSR report: Act for People: Growing & moving forward together Act for efficiency: Straightforward policies Act for innovation: Taking pride in transforming our professions
3.2.2. At Carrefour's direct suppliers
In accordance with the duty of care act, the measures detailed in this section apply to Carrefour's subcontractors and direct suppliers, i.e. those with whom a commercial relationship has been established. Assessing the situation Supplier social audits: In countries where a risk has been identified, Carrefour’s ultimate aim is to perform social audits on all production facilities that manufacture Carrefour-brand products. These audits are performed by third parties in line with ICS or BSCI standards. The process comprises several steps:: a preliminary review by Carrefour of the facility’s compliance with social, environmental and basic quality requirements; an initial audit, preferably unannounced, performed by an independent firm selected by Carrefour, based on a standard shared with other brands, to determine whether the facility can be listed; unannounced follow-up audits performed periodically by an independent firm to validate actions taken; specific audits may be performed by an external company or by partners to review specific or one-off incidents involving the facility or the audit firms’ practices and procedures. For suppliers located in low-risk countries, the inspection system is adapted to take the business, local problems and on-site practices into account, as external audits are not performed systematically. Health and safety issues and water treatment are covered by Carrefour’s social compliance audit process. Key prevention and mitigation measures introduced Carrefour’s approach is based on country-by-country risk and identified issues, and is adjusted as these evolve. It is based on the overall reference frameworks set out in Section 2.3.2.1: Purchasing rules and specifications; Supplier commitment charter; Collaborations and partnerships.
Group's Duty
of Care Plan Post-audit corrective action plans In the event of a violation of human rights or environmental damage, corrective programmes are implemented in conjunction with the stakeholders and local communities concerned, according to the situation facing them. The main occurrences of non-compliance identified in the Carrefour supplier network related to working hours, compensation levels and workers’ health and safety.
- Independent audits and inspections of supplier premises give rise to action plans designed to address any violations observed, regardless of their severity. The supplier is required to implement each corrective action in the plan before a specified deadline. Compliance with the action plan and implementation deadlines is monitored through follow-up audits.
- If a supplier audit report contains a critical non-compliance issue, Carrefour will be informed within 48 hours. These issues mainly concern child labour, forced labour, disciplinary measures, attempted corruption, document falsification and safety conditions threatening the lives of workers. Immediate action is then taken by Carrefour and/or the supplier. Training or specific support may be provided by Carrefour’s teams to suppliers where warranted by non-compliance issues. Helping suppliers to achieve compliance Training employees and suppliers:
- training on standards and social issues is provided to Carrefour’s purcha- sing, quality and local sourcing teams;
- Carrefour trains its suppliers in partnership with consultants or local NGOs. Carrefour’s Sourcing teams roll out specific training programmes every year. Carrefour has also created the “Good Factory Standard” ma- nual for training purposes;
- in 2019, Carrefour stepped up its work with tier 1 suppliers in Bangladesh, Pakistan and India to provide plants with training and other tools to deal with identified risks. Carrefour’s procurement practices: factory capacity and production schedules for Carrefour’s orders from its largest textile suppliers are analysed and adjusted at a very early stage, to limit problems with “working hours”; Promoting CSR in supply chains Wherever it can, Carrefour seeks to implement a collaborative approach between brands and stakeholders to strengthen the effectiveness of mitigating or corrective actions and to provide a coordinated, structured response to the risks encountered.
- Health and safety. To mitigate and counteract serious violations, Carrefour has recently been involved in two major projects: the Clean Water Project and the Accord on Fire and Building Safety in Bangladesh (http://bangladeshaccord.com).
- Decent wages. Carrefour is very attentive to ensuring that decent wages are paid across the value chain and is testing new solutions in this area:
- Carrefour prefers an approach based on increasing in-kind benefits. With the support of the Carrefour Foundation, Carrefour has worked on setting up a health insurance system in Bangladesh with plans to promote it nationwide. In 2019, for the last year of the project, the system covers eight factories, including five Carrefour suppliers, and the support of Carrefour Foundation helps fund this health insurance plan for approximately 14,500 workers. Carrefour has set up its own supply chain for Indian organic cotton. Carrefour has forged a partnership with Cotton Connect. Cotton Connect allows Carrefour to ensure that farmers receive a higher rate than conventional cotton producers. At the same time, the Organic Cotton Accelerator (OCA) organisation audits compliance with Carrefour’s commitments and works to increase the number of farmers transitioning to organic farming. The first “sustainable cotton” collection appeared in spring-summer 2019.
Group's Duty
of Care Plan Combating substances with contro- versial health effects
- Cutting out controversial substances. Carrefour runs a worldwide programme on cutting out controversial substances from its products. The substances contained in the products are constantly tracked, resulting in detailed risk mapping by category and by level of criticality. Carrefour teams work with stakeholders to adapt this programme locally. - Reducing pesticide use. To promote a less pesticide-intensive agriculture, Carrefour invests in organic farming and enlightened sustainable farming practices through the deployment of agroecological methods. - Cutting out GMOs. In 1998, Carrefour brought in a policy of excluding GMOs and their derivatives from its own-brand products and from the feed of livestock used in its Carrefour Quality Lines. All Carrefour own-brand products have been free of genetically modified ingredients since 1999. Since 2010, more than 350 own-brand and Carrefour Quality Line products of animal origin have been produced using animals fed without GMOs. For more information: 2019 universal registration document - See section 2.2.1.1 Our products and our customers’ health. Carrefour.com and CSR report:
- Product quality, compliance and safety
- What about a healthier diet? 4. WHISTLEBLOWING FACILITY Carrefour’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. The system covers all the subject matters addressed in the Ethics Principles, and in particular human rights and the environment. Confidentiality is assured at all stages of the process and Carrefour has pledged not to take any disciplinary action against an employee who reports an ethics issue in good faith. 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. http://ethics.carrefour.com/
