Being a responsible retailer

Transcription

1 Being a responsible retailer For nearly 20 years now, the Carrefour group has been committed to operating as a responsible distributor everywhere that it has a presence. The Group studies and develops alternative solutions to reduce the impact of its trade activities (stores, warehouse and transport) while helping its customers reduce their own impact through informational campaigns. Carrefour also contributes to local development in its various countries by carrying out socially responsible projects that respect the communities in which it operates. Optimising the environmental performance of the Group s business operations p.50 Carrefour stores working closely with their customers p.62 Dialogue with local communities p.65 49

2 Optimising the environmental performance of the Group s business operations COMMITMENTS ACHIEVEMENTS KEY FIGURES 2011 Reducing energy consumption at Carrefour stores. Objective: Reduce energy consumption (electricity, gas, fuel) by 30% per sq. m of store sales area by 2020 (compared to 2004 levels). Continuation of energy efficiency plan in stores, with roll-out of best practices (lighting, cooling, closed refrigeration units, night shutters, etc.) By the end of 2011, energy consumption was reduced by 22% per sq. m of store sales area (compared to 2004 levels) Reduction in stores greenhouse gas emissions. Objective: Reduce scope 1 and 2 GHG emissions by 40% by 2020, compared with 2009 levels (France, Belgium, Spain and Italy). Elimination of HFCs in new refrigeration equipment beginning in Reduce store water consumption. Increase the proportion of waste recycled in stores. End the distribution of free disposable plastic check-out bags in Use certified or recycled paper (FSC or PEFC) for all commercial publications in Testing of alternative refrigerants for positive and negative food refrigeration equipment European-level analysis of the supply chain s environmental impact 100% renewable electricity in Belgium Continue actions in stores to reduce water consumption Develop in-country waste sorting networks (methanisation, etc.) Improvement to waste sorting in existing networks Proactive measures at stores to reduce the number of free disposable check-out bags and promote reusable bags Continuation of efforts in the countries to use mainly certified or recycled paper Carbon emissions reduced by 25.3% in Europe in 2011, compared to 2009 levels (France, Belgium, Spain and Italy) 7.7 kg of carbon emissions per pallet transported 1.9 cubic metres of water per square metre of sales area throughout the Group (4.4% reduction compared to 2010) 58.2% of waste recycled at stores throughout the Group 47.7% reduction in the number of free disposable check-out bags per sq. m of store sales area in 2011 for the entire Group (compared to 2008 levels) 97% recycled or certified paper for catalogues in 2011, excluding Argentina, Brazil and Malaysia Fighting climate change and preserving natural resources is a major commitment for Carrefour. For more than 10 years now, in response to this challenge, the Group has resolutely invested in improving the environmental performance of its retail operations. Carrefour takes action in two main ways: it moves toward energy-efficient stores that produce small amounts of waste and CO 2, and it limits environmental impacts throughout the logistics chain. Carrefour s approach is based on implementing innovative technology, sharing best practices with other market players and informing employees at all levels. This strategy of reducing the environmental impact of its sites also helps reduce its costs. 50

3 Stores that are more economical and sustainable Carrefour has 9,771 stores worldwide and, each year, continues to open new points of sale. Its goal is to reduce and limit the impact of its stores. To achieve this, the Group has set four priorities: reduce stores carbon footprint and energy consumption; limit the water consumption of its sites; reduce the percentage of non-recycled waste generated at its stores; integrate environmental criteria into the construction and renovation of stores. Reducing the carbon footprint and energy consumption of stores The Group has set itself a particularly ambitious objective: reducing its CO 2 emissions by 40% in four European countries France, Spain, Italy and Belgium by 2020, compared to 2009 levels. Greenhouse gases linked to store operations are mainly attributable to the energy the stores use and the refrigerant fluids that are necessary to keep food cold. Carrefour has therefore made these two sources its priorities. An energy efficiency programme To reduce its greenhouse gas emissions, Carrefour has chosen a pragmatic strategy: increase the energy efficiency of its stores. Since store energy expenditures represent over half a billion euros per year, it is especially important to reduce this consumption. The Group is working actively in this area. In 2004, Carrefour committed to reducing energy consumption by 20% per sq. m of store sales area by In 2009, buoyed by the success already achieved, the Group increased this goal to 30%. In 2011, the consumption of energy (electricity, fuel and gas) of the Group s consolidated stores dropped by 22% (compared to 2004 levels, per sq. m of sales area). In 2007, to achieve this result, the Group launched an energy efficiency programme at all of its stores. This multi-year investment plan, worth some thirty million euros a year, allows Carrefour to roll out energy efficiency Our carbon footprint 1 GHG emissions by source (in tonnes of CO 2 equivalent) 9% Scope 1: Refrigerants 44% Gas Fuel Scope 2: Electricity Scope 3: Logistics 43% 3% 1% (1) To measure our carbon footprint, in 2007 we implemented a greenhouse gas emissions reporting system based on the guidelines of the GHG Protocol, an international GHG accounting standard. In 2011, our direct emissions (scope 1 of the protocol: refrigerants, gas and fuel) were 1.98 million t. of CO 2 eq. and indirect emissions (scope 2: electricity and scope 3: transport of technology at its stores. Carrefour France launched its efficiency plan back in 2004 and The stores are also equipped with a centralised technical management (CTM) system that automatically regulates heating, air conditioning and lighting according to need, and monitors consumption. Gradually, they are all also adopting low-consumption lighting, and adding glass doors to the negative cold units (for frozen products) and night shutters to the positive cold units (for fresh products) so they can be closed overnight. GHG emissions by zone (in tonnes of CO 2 equivalent) France 22% 2% Europe (excluding France) Latin America Asia 20% 17% 41% goods) were 2.26 million t. of CO 2 eq. Excluded from the HM scope: TR, TW; SM: TR: AR figures verified by Statutory Auditors KPMG Audit with a result of moderate assurance figures verified by Statutory Auditors KPMG Audit with a result of reasonable assurance (CO 2 emissions indicator, scopes 1 and 2). 51

4 22% reduction in energy consumption in kwh/sq. m of sales area since 2004 across the Group. 9.1% less reduction in greenhouse gas emissions linked to energy consumption (in kg of CO 2 /sq. m) at stores consolidated in the Group since Carrefour in Argentina is increasing its initiatives to reduce the energy consumption of its stores, in particular by rolling out low-consumption lighting. Certain stores also recover the calories generated by their cooling facilities and reuse them for heating or the production of domestic hot water. In France, thanks to this solution, the Carrefour Market supermarkets in Mondonville, Auterive, Sarlat and Mauriac not only consume less energy than other stores on a like-for-like basis in terms of sales area, but they also no longer use fossil fuels for heating. Certain countries, such as Belgium, use 100% renewable energy. In China, 37 new stores were equipped with LED signs, a solution that yields a 78% energy savings. This lighting will continue to be rolled out at the new stores. ARGENTINA Focus on low-consumption lighting For example, the banner launched an energy-efficient convenience store concept under its Carrefour Express banner.all of these outlets (50 at end 2011) are equipped with LED lighting which, compared to fluorescent tubes, save 65% in electricity, while offering a lifespan that is five times as long. From now on, all new Carrefour Express stores will use this type of light bulb. In 2012, Carrefour in Argentina will replace the T8 fluorescent tubes in 33 existing stores with T5 fluorescent tubes consuming one-third less energy. En pratique Average store energy consumption Electricity Gas Fuel 92% 6% INDIA Two stores with high energy performance 2% In India, the Group opened two cash & carry stores for professionals in the food sector: one in Delhi in December 2010, and the other in Jaipur in November To optimise their energy efficiency, Carrefour equipped them with innovative solutions. For the Delhi store, the Group carried out a study and opted for low-consumption lighting. The entire store, including refrigeration units, is equipped with LED lighting systems. The Jaipur store also uses low-consumption lighting, and its roof has skylights, which limit the need for artificial light. Carrefour also looked for the highest-performance technologies for cooling equipment. In Delhi, negative cold units have high-efficiency glass doors, which saves 30% in electricity, and a gas defrosting system, which reduces energy consumption by 10% for the cooling system. Similarly, the solutions chosen limit the consumption of air conditioning by next-generation cooling facilities. The two stores are connected and controlled by a comprehensive centralised technical management (CTM) system. Next step: the roof of the building will be given a coat of Sky Cool (reflective paint). Store energy consumption Food-preparation areas and other Lighting Food refrigeration Air conditioning 35% 25% 16% 24% 52

5 FRANCE Carrefour leads the way by closing its refrigeration cases In Spain, the Carrefour Market stores opened in 2011 in Parla (community of Madrid), Manresa (community of Barcelona), El Vendrell (community of Tarragona) and Elche (community of Valencia) use energy efficiency technology such as centralised technical management (CTM) and lowconsumption lighting, which will yield a 30% energy savings compared to the previous generation of stores. To ensure that this energy efficiency goal is applied to all levels of the company, Carrefour added it to the performance indicators for executives for the 2012 financial year. Reducing the impact of refrigerants Carrefour launched a major plan to improve the food-chilling equipment of its stores with a view to reducing greenhouse gas emissions linked to refrigerant leaks. The Group introduced a strategy aimed at In late 2010 and early 2011, Carrefour in France innovated by testing positive-cold units closed with glass doors at six Carrefour Market stores. Aimed at saving electricity, this was already in use for freezer units. The gain also proved to be very significant for fresh products: over one year, the stores reduced their energy consumption by 17% on average. Customers also approve of the innovation: 83% of them deemed it very advantageous.* In their view, it has three benefits: better control of product conservation, an environmental benefit, and increased comfort (in these sections, the temperature increased between 5 C and 8 C). As the first French retailer to have taken this initiative, the Group has set an excellent example. On January 16, 2012, the Fédération du Commerce et de la Distribution (FCD) signed an agreement with the Ministry of the Ecology, Sustainable Development, Transport and Housing in which the banners committed to closing 75% of cooling units used for fresh products in all their store formats by This initiative alone will allow the country to save 2 TWh in electricity, the equivalent of the annual consumption of a large city like Lyon. LSA, the specialist magazine for mass retail in France, applauded Carrefour s approach by presenting it with its 2011 Innovations Award in the sustainable development category. *Qualitative and quantitative customer surveys conducted at stores in September 2010 and February FRANCE Next-generation stores: significant energy savings In France, the Carrefour Market store in Mondonville, the Group s first store to receive HQE certification, features high-performance architectural and technical solutions to optimise its energy efficiency. Natural lighting is given priority, and the heat recovered from the cold production process is reused to heat the sales area. One year after certification, its energy consumption appears to be significantly lower than that of a supermarket of similar size: 57% savings for lighting and 62% for heating. identifying and reducing leaks as well as using alternative or natural fluids with a lower impact on the environment. Between 2008 and 2011, the quantity of refrigerant gas refilled in cooling facilities following leaks, per sq. m of sales area, dropped by 20.8%. In all the countries in which it operates, the Group has launched a diagnostic analysis aimed at measuring fluid leak rates and identifying their causes, with a view to introducing corrective measures. The goal is to limit future gas leaks in its facilities to 10%. Following this inventory, Carrefour also made a commitment in the framework of the Consumer Goods Forum (CGF), pledging to stop using hydrofluorocarbons (HFCs) in its new cooling facilities beginning in These refrigerants contribute significantly to greenhouse gas emissions because their global warming potential is high. To replace them, the Group is testing various systems, in particular natural fluids such as CO 2, whose impact on climate change is lower. Technologies that run on carbon dioxide (CO 2 ) have a lower impact than hydrofluorocarbons (HFCs) when loads are equal. 53

6 ITALY CO 2 to fight the greenhouse effect! In 2011, in France, Italy and Turkey, 24 stores experimented with carbon dioxide for negative cold (freezer units). The results were especially conclusive given that CO 2 requires tightly sealed cooling facilities, which significantly reduces the risk of leaks. Moreover, this is next-generation equipment that consumes less fluid and 10% to 20% less electricity, which also limits greenhouse gas emissions. From this point on, in new stores, completely renovated stores or stores whose cooling facilities are reaching the end of their life, the Group will therefore use CO 2 for negative cold. This is an initial step. At the moment, the hypermarkets in Burolo in Italy, Lyon Confluence in France, Istanbul in Turkey and the supermarket in Beaurains in France are testing CO 2 for both positive and negative cold (see box). Poland, Turkey, Belgium Greece, Spain, China, Malaysia, Indonesia and Colombia are also planning projects using CO 2 for The use of CO 2 as a refrigerant fluid can however pose problems depending on the climate. Carrefour is therefore experimenting with another natural gas: ammonia. This test, which covers the production of positive cold, is taking place in the Villabé store (Paris region) and will be launched at the La Chapelle-Saint-Luc store in October To roll out these new fluids quickly and in all the countries in which it operates, the Group regularly communicates with cooling facility manufacturers to encour- As of November 2011, the new cooling system of the hypermarket in Burolo uses CO 2 as a refrigerant for both positive and negative cold. In addition to the low global warming potential of this gas, which is 3,400 times lower than that of the fluids previously used by this store, there are several other gains. The installation requires about one-third less carbon dioxide than the amount of fluid required for the old system, and its pipe system is optimised, age them to develop the best solutions possible for the needs of mass retail and to distribute them widely. For the moment, in certain countries, no technical solution using natural refrigeration is satisfactory. In Europe, Carrefour took stock of all its food-chilling facilities that use hydrochlorofluorocarbons (HCFCs). These fluids, which contribute to the deterioration of the ozone layer, will soon be discontinued: since January 1, 2010, the European Union has prohibited the use of new HCFCs to refill existing cooling facilities; beginning on January 1, 2015, it will also prohibit the use of recycled or regenerated HCFCs. To replace the HCFCs, the Group is evaluating the possibility of converting the cooling facilities in question to HFCs and, for the units arriving at the end of their lifecycle, switching to natural fluids such as CO 2. which reduces leaks by 75%. Its energy efficiency is above 15%, which limits the CO 2 emissions linked to its electricity consumption. In over one year of operation, the Burolo store s direct and indirect emissions should be reduced by over 119 tonnes of CO 2 equivalent. The economic benefits are also very significant. The hypermarket should not only reduce its overall energy bills by 7%, but should also reduce amounts spent on refrigerants. 20.8% reduction in the quantity of refrigerant fluids in the cold production facilities per sq. m of sales area since % reduction in CO 2 emissions linked to refrigerant and energy consumption by stores in France, Spain, Belgium and Italy compared to 2009 levels. The goal is to achieve a 40% reduction by

7 -11,2% less water consumed per sq. m of sales area, Group-wide, since Limiting the water consumption of our sites Reducing the environmental footprint of our stores means also limiting their water consumption. From 2008 to 2011, water consumption dropped by 11.2% at Group level. This progress is the result of long-standing efforts. In 2003, the Group adopted related management measures: regular reporting and identification of consumption sources and stores that overconsume. This monitoring and analysis work included a number of water-savings assessments. The stores raised their staff s awareness of this goal, optimised the maintenance of equipment, in particular to prevent leaks, and are gradually adopting solutions aimed at limiting their consumption, such as water-saving taps and waterless urinals. Certain stores have also been equipped with systems for collecting and recycling rainwater for usages that do not require potable water. This solution can reduce a hypermarket s water consumption by 10%. In France, the Chambourcy shopping centre uses rainwater to supply the toilets of the shopping arcade, while the Carrefour Market store in Distré uses it to water its green spaces, saving 2,000 cubic metres of water per year. Carrefour in China has equipped 37 stores, three of them in 2011, with water-collection systems for their toilets. Reducing the waste generated at stores Promoting stores that use resources sparingly also means responsible management of the waste generated by their operations (paper, boxes, check-out bags, unsold products, etc.). The Carrefour group has made this one of its priorities. Reducing waste and optimising recycling Store waste primarily consists of secondary packaging (such as packing boxes for product shipment) and, to a lesser extent, plastics, metals and organic waste from non-consumable food products. Carrefour is increasing its initiatives aimed at reducing waste at the source and recycling it as much as possible. To limit its waste, the Group is in particular replacing the boxes and crates used for goods transport with reusable plastic trays and is rolling out the ready-to-sell method, which consists of designing secondary packaging in such a way that it can be used to display the products on the store shelves. This innovative method offers several environmental benefits if the packaging is well designed. The packaging is smaller and lighter, which limits the volume and weight of the goods transported, the consumption of fuel and the quantity of waste. In most of the countries, Carrefour stores work in partnership with charitable organisations, donating food products and textiles so that unsold merchandise that is still usable does not go to waste (see page 68). Everywhere that it operates, the Group has also adopted a structured waste management system to ensure waste is recycled. Cardboard, the main type of waste generated by stores, is sorted and recycled in all countries. 55

8 58.2% of waste treated through recycling networks (donations included) in 2011 at Group level In South America, collecting cardboard for recycling is common and often performed by the unemployed. The Carrefour Foundation supports a project carried out by ARCA Centro de Reciclado in partnership with Carrefour Argentina. The goal is to professionalise, develop and industrialise this resale business to create a virtuous circle of waste recycling. Each cooperative is given a thermal press, which it can use to transform waste, especially plastic, into reusable boards, using a technology that involves ARGENTINA Carrefour forms partnership with a waste recycling chain Other types of waste (plastic, scrap metal, organic waste, etc.) are sorted according to the local waste-recovery systems available. In all the Group s countries, stores are upping efforts to find ways to recycle their waste. They are increasingly developing energy recovery from organic waste. In Belgium, all consolidated stores sort waste from their grocery, bakery, fruit and vegetable sections and transform them into biomethane. mixing in cardboard. Plastic is collected by 10 Carrefour stores in Buenos Aires that are involved in the scheme and are already working with a partner cooperative of the organisation. The 350 beneficiaries of the programme also received training in recycling waste by using it to make products that are later sold at Carrefour stores. They thus become producers and sellers of high value-added products. In France, since January 1, 2012, outlets producing over 120 tonnes of biowaste per year are required to manage them. A certain number of stores, however, implemented this measure ahead of time: in 2011, 80 hypermarkets and 30 supermarkets processed their organic waste through methanisation or composting. Over 3,600 tonnes of biowaste were treated in In Spain, an organic waste management system is now in operation at 28 stores. In six months, 479 tonnes of meat and 121 tonnes of fish were collected and processed. To increase the share of waste that is recycled, stores are also informing their employees about the importance of sorting. In France, certain hypermarkets have made recycling rates one of the performance indicators for maintenance and technical managers. Stores in Spain and France have optimised the organisation of their wastestorage areas to make sorting easier. Some countries have reached very high recycling rates. In Spain, in 2011, the stores recycled 64% of all waste produced, or 75,000 tonnes of paper, cardboard, plastic and other materials. At the same time, French hypermarkets sorted and recycled 64% of their waste (including food donations). Some of them have already achieved very high rates. For example, the Carrefour hypermarket in Chambéry Chamnord, which recycles 85% of its waste (see box). Stores take action to stop the distribution of free disposable check-out bags Carrefour aims to reduce the waste generated through its operations at the source. In all countries where it operates, the Group has committed to phasing out the distribution of free disposable plastic check-out bags by end In 2003, the Group carried out its first life-cycle analysis on different types of biodegradable and reusable plastic and paper check-out bags. The analysis, which was repeated in 2010, showed that past the fifth use, the reusable shopping bag was the most ecological solution. This inspired the Group to roll out an ambitious strategy of eliminating free disposable plastic check-out bags and promoting reusable bags. Result: from 2008 to 2011, the number of free disposable plastic check-out bags fell by 47.7% (per sq. m of sales area) and many stores have already stopped distributing them. This is especially the case for all the stores in Belgium, all the hypermarkets and supermarkets in France, Spain, Poland and Romania, and all the hypermarkets in China and Taiwan. In the other countries, the Group is committed to a progressive approach to reach its goal. In Latin America, certain Carrefour stores in Brazil (Piracicaba, Jundiai, Belo Horizonte) and Argentina have stopped distributing free disposable plastic check-out bags ahead of the requirement. This measure is supported by informational campaigns for 56

9 FRANCE Stores recognised for their waste management customers, often in partnership with the communities and organisations (see page 63). Carrefour has saved over 10 billion free disposable plastic check-out bags at Group level since Limiting the environmental impact of commercial publications Since 2005, the Carrefour group has been implementing a comprehensive strategy involving its commercial publications in line with its zero deforestation goal (see page 24). The Group has in particular committed to using only certified (FSC or PEFC) or recycled paper for its commercial publications for European consumers by end In 2011, 97% of the paper used by the Group for its commercial publications was recycled or certified, with the exception of Brazil, Argentina and Malaysia. At the same time, Carrefour has been reducing the quantity of paper used for its publications by: reducing the grammage or size of the catalogues: the Group has reduced the grammage of brochures by 1.7% since For example, some of the European publications are printed on 45 g newsprint paper. developing new technologies: Carrefour favours the dematerialisation of brochures, mail and loyalty cheques, and catalogues, making them available on Carrefour s websites or via smartphone in Europe. optimising the distribution of its catalogues: Carrefour has saved 20% of the paper used in Spain, by adjusting the number of Carrefour organises the Sustainability Awards to reward the involvement of its employees in France (see page 85). In 2011, the hypermarket in Chambéry Chambord (Savoie) won an award in the waste management category. Between 2009 and 2010, thanks to the involvement of its teams and excellent organisation, the store reduced the share of non-recycled waste by 27%. Today, it recycles 85% of its waste through over 30 different networks: cardboard, plastic, used engine oil, greases, ink cartridges, fluorescent lamps, fuels, aerosols, solvents, acid, chlorine, plant care products, glass, paper, etc. With 77.5% of catalogues distributed per district, ensuring that only one catalogue is deposited into each mailbox. A similar initiative is under examination in France. Carrefour hypermarkets in France have reduced their catalogue distribution from four to three per month, saving 10,000 tonnes of paper per year. This approach made it possible to reduce the weight of its commercial publications and to save over 35,000 tonnes of paper between 2008 and 2011 at Group level. Carrefour is also working with printers to reduce the impact of its commercial publications. All of Carrefour s printers are committed to an eco-friendly approach (Imprim Vert, FSC, PEFC, ISO 14001, etc.). its waste recycled, the Carrefour hypermarket in Gruchet-le-Valasse (Seine-Maritime) took second place. To reach this rate, the banner introduced new recycling systems for office paper, brochures and flexible plastic, and acquired two composting units for waste from the plants and flowers of the gardening department. The Carrefour Market supermarkets in Bourg-en-Bresse Marboz, Péronnas and Saint-Denis-les- Bourgs (in the Ain region), which deployed a network for the methanisation of their organic waste, took third place. Integrating environmental criteria into the construction and renovation of stores The creation, expansion or renovation of stores: each project is an opportunity for the Group to implement the principles of sustainable construction. Carrefour Property, which manages the commercial real estate assets of the Carrefour group in France, Italy and Spain, involves local authorities, ordering parties and service providers in its eco-design approach, and works to implement innovative solutions to protect the environment: Beginning in the design phase, Carrefour works to limit its impact. In France, the construction sites launched in 2011 followed the Chantier Vert charter, which strongly 57

10 Inaugurated in late 2011 after a vast renovation and expansion project, the new shopping centre in Chambourcy (west of Paris) is a good example of Carrefour s eco-construction strategy. Among other advantages, the building s frame, the outer part of the façades and the shopping-trolley shelters are made of wood from FSC-certified sustainably managed forests. It is also equipped with a green roof. While preserving natural resources and optimising thermal isolation, these architectural choices promote the integration of the store FRANCE Chambourcy: a shopping centre that blends into its surroundings recommends sorting site waste, cleaning the earthworks machinery s wheels to avoid spreading sludge in public areas, and reducing disturbances by limiting noisy work to time periods suitable for the comfort of local residents. Special attention is also paid to the selection of materials. Stores favour natural materials that are more respectful of users and the environment. Wood, brick, and paints are all chosen according into its surroundings. Located in an area with fruit crops and market gardens, the building was designed as a wooden hall whose roof brings to mind an orchard. For the same reasons, the acoustic walls set up at the periphery of the shopping centre to protect local residents from noise are also green, and 450 shrubs and fruit trees will be planted on the site. All of these measures are in line with the Group s landscaping charter, which features demanding environmental criteria, in particular, vegetation suited to the local climate. to eco-responsible criteria. In keeping with the Group s zero deforestation goal (see page 24), the wood comes from sustainably managed forests. Solvent-free paint is also used at all sites in France. Carrefour Property also uses materials that require low levels of energy for their production. To optimally promote this comprehensive environmental approach and get its stores involved in a continuous progress approach, for each of its projects in France, Carrefour Property studies the possibilities of certification by HQE (Haute Qualité Environnementale, a French standard) or BREEAM (Building Research Establishment Environmental Assessment Method, a British standard). The Carrefour Market supermarket in Mondonville, opened in 2010, was the Group s first store to receive HQE certification. For the L Escapade shopping centre in La Chapelle-Saint- Luc, Carrefour is aiming for an even more ambitious target: HQE certification and a good rating from BREEAM. To reach the Group s energy efficiency goal (see page 51), store architecture has been designed to optimise energy consumption. Renovated or new buildings use as much natural light as possible and are built from materials with a high level of thermal inertia, and their glass façades are oriented in a way that reduces the need for air conditioning. Certain stores also have a green roof for insulation, or a white roof with high solar reflection that limits the need for air conditioning, as with the Assago hypermarket in Italy. Carrefour Property involves the banners operating at its French shopping centres in its approach. Environmental criteria are included in the rental agreements and the specifications for outfitting the boutiques to encourage them to use energy-efficient equipment, choose eco-friendly materials and sort their waste. Finally, new sites are designed for optimal suitability with their local environment. Launched in 2006, Carrefour s Landscaping Charter includes green space management to respect local biodiversity. The Group also works to facilitate its stores accessibility (public transport, cars, bicycles, pedestrian routes, etc.). At the future L Escapade shopping centre in La Chapelle-Saint-Luc, near Troyes, which is under construction, 5% of the parking spaces will be reserved for carpools. The car park will have recharging stations for electric vehicles. (see page 66). 58

11 Reducing the environmental impact of the logistics chain Another area in which the Carrefour group has been working for years to improve the efficiency of its retail business is transport and logistics. In 2011, the Group continued to optimise its logistics chain to limit its impact on the environment and reduce its carbon footprint. As a part of its approach aimed at continuous and sustainable improvement of goods transport, Carrefour developed innovative initiatives together with its partners, and continued its efforts in terms of sustainable development. Reducing and optimising the kilometres travelled Everywhere that it improves its efficiency, Carrefour redesigns or adapts its logistics network. For its European suppliers, the Group has created consolidation centres which, by pooling inventories, yield a 15% to 20% savings in kilometres travelled, on average. Their principle: the suppliers, mainly SMEs, deliver to a single point that is close to their production site. Full multi-supplier lorries supply Carrefour s regional deliverer warehouses from this point. In 2011, two new warehouses were set up. They are supplied by over 400 suppliers. In another move aimed at reducing empty kilometres, Carrefour introduced an optimised return logistics system: in France, eight regional centres now receive returns of packaging and media products from hypermarkets. This new organisation saved 5.6 million empty kilometres and 4,800 tonnes of carbon emissions. In Turkey, for example, the construction of a new warehouse will make it possible to serve the entire Black Sea region, reducing distances travelled by nearly 2 million kilometres. In Colombia, Carrefour has deployed a new logistics platform in Bucaramanga, which helped reduce the number of kilometres travelled by 1.2 million in At the same time, Carrefour has committed to optimising lorry loading, with the goal of increasing the number of pallets per lorry and boxes per pallet. In France, 24 twin-deck lorries make it possible to double the volumes loaded into the trailers. In 2011, this resulted in 9,000 fewer lorries on the roads and 1,330 fewer tonnes of CO 2 emitted. A twin-deck lorry is also in use in Poland. Carrefour in France has significantly developed the ready-to-sell approach, a packaging method which, by optimising outer packaging, increases the number of products per pallet and improves lorry filling. In late 2011, 30% of the Carrefour references at hypermarkets and 25% at supermarkets used the readyto-sell approach (compared with 25% and 17% in 2010). Argentina, like the Group s six main countries in Europe, carried out a comprehensive assessment of its transport processes with a view to identifying opportunities for improvement and reducing the number of trips made by transporters. The Group also encourages backhauling: lorries that have delivered merchandise to stores are loaded at nearby suppliers to re-supply Carrefour warehouses. In France, in 2011, nearly 400,000 pallets were transported using this method, or five times more than in Several collaborative projects have been developed, including a very innovative platform initiated in France in partnership with Danone Eaux France and ID Logistics. It involves creating a regional industrial inventory for Danone Eaux France on Carrefour s site in Grans Miramas, which has the advantage of being connected to a railway. This site s role is to supply over 120 Carrefour stores in the southeast, as well as the warehouses of other retailers operating in this region. With the volumes pooled in this way, the objective is to send trains fully loaded with goods from Danone Eaux France s plants. This pooling has already saved 415 tonnes of carbon emissions (1,000 fewer lorries on the roads). Backhauling initiatives were also introduced in Italy, where an agreement promoting this practice was signed with around 30 suppliers (including Coca-Cola and San Pellegrino). 50,000 kilometres were saved in this way in Carrefour in Argentina also introduced backhauling in three provinces of the country La Pampa, Buenos Aires and Mendoza in partnership with 45 suppliers. Carrefour in Belgium continued its efforts, and uses backhauling for 10% of its upstream flows, in particular for beer products. To support its optimisation efforts, Carrefour has invested in high-performance tools. A transport management system (TMS) that will manage data and optimise rounds, is under development in France. It aims 59

12 IN FIGURES 43% of imported non-food In France 400,000 pallets transported in backhauling mode, representing 16,000 fewer lorries on the roads and 4,000 fewer tonnes of CO 2 emitted The Carrefour group has always sought to team up with other partners and operators, with a view to developing duplicable pilot projects. In France, this approach took a major turn in 2004, with the creation of the Demeter Club. Bringing together retailers, carriers, suppliers and participants such as the City of Paris and ADEME, this club aims to promote concrete solutions reconciling environmental goals and economic imperatives (improvement of urban deliveries, development of reusable packaging, etc.). FRANCE Resource pooling, the keystone in the environmental approach in terms of transport to reduce the kilometres travelled by 5%. Other countries, including Italy, Poland and Greece, are also preparing to introduce a TMS in Focusing on and developing more eco-friendly transport modes Warehouse and store deliveries: multimodal solutions on the rise In terms of alternative transport waterway, rail and multimodal solutions combining rail/road or barge/road Carrefour continued its efforts in the countries where the With this same collaborative goal, in 2011 Carrefour created a group bringing together around 30 small and medium national and regional carriers, a first in France. The cooperation aims to determine common levers of action such as reducing empty kilometres, developing twin-deck lorries and reducing fuel consumption, adopting eco-friendly habits, modernising fleets, etc. The partnership saw the emergence of innovative projects in the area of vehicles, such as hybrid lorries and bio-ethanol. infrastructures made it possible. In France, in 2011, over 9.5 million kilometres were saved using multimodal transport, or the equivalent of 17,000 fewer lorries for a savings of 7,200 tonnes in carbon emissions. Upstream (deliveries from suppliers to warehouses), 43% of the non-food import products were routed using a multimodal solution. Downstream (deliveries from warehouses to stores), multimodal transport represented 12% of all trans-france flows. In Spain, Carrefour continues to put its focus on rail transport; in 2011, 80% of its containers were routed by train. In Belgium, Carrefour is strongly encouraging waterway transport. The routing of import containers between Antwerp and Vilvoorde is therefore handled by barge. In Italy this year, for the very first time, Carrefour used a daily train to route a part of its goods from its warehouse in northern Italy to the Rome area, to deliver to its stores in the centre and south of the country. This rail line is operated in collaboration with one of Carrefour s main suppliers and made it possible to achieve a 26% savings in CO 2. Innovating for a more eco-friendly fleet These efforts to optimise the fleet, with cleaner and quieter lorries, is a lever of progress and a key area for Carrefour s environmental approach. The Group favours the use of cleaner lorries: In Belgium, 100% of the lorries are Euro 5 compliant; In France, 90% of the fleet is Euro 4 and 5 compliant (compared to 80 % in 2010). Its fleet compliant with EEV (Enhanced Environmentally-Friendly Vehicles) the strictest standards to date has increased in France and now has 19 vehicles (15 in 2010). Carrefour has also intensified its policy of reducing noise, an approach for which products were transported by multimodal methods in France, which represented 6,200 fewer lorries on the road. Rail transport, used to route food products (fruit and vegetables, grocery items and beer) to warehouses in France, saved 2,600 tonnes of CO 2. Supply Chain France received the Décibels d Or award in December 2011 in recognition of its significant efforts in this area. In concrete terms, in France the Group doubled the number of silent lorries (130 at the end of 2011) compliant with the PIEK standard, a label guaranteeing noise levels of under 60 decibels, encouraged informational programmes aimed at reducing noisegenerating behaviour during unloading and implemented specific measures: lorries equipped with noise-reducing devices and silent liftgates and adaptations to access roads. As a member of the Demeter Club, Carrefour also participated in the promotion of a new label entitled Respect for Local Residents during Night Deliveries with the Certibruit organisation. The Group plans to test and promote innovative solutions, especially in terms of vehicles: in France, Carrefour has acquired four hybrid delivery lorries (electric and silent), which yield CO 2 emission savings of 20%. In a world premier in Lyon, thanks to a technological partnership with Renault Trucks and the carrier Stef-TFE, the Group also launched the world s biggest electric lorry, a 16-tonne 100% electric Renault 60

13 Further information Improving the environmental performance of the warehouses The environmental performance of the warehouses is steadily improving. In France, Carrefour introduced a set of sustainable development indicators in 2008 for consolidated warehouses, and then for the warehouses managed by service providers. Since 2005, an outside firm has been carrying out audits of French warehouses to identify best practices and encourage progress. These audits cover environmental and social criteria (energy consumption, CO 2 emissions and waste production). 54 audits were performed in 2011 in France, with 94% compliance with the reference system on average, compared to 91% in In 2011, the French warehouses reduced their energy consumption by improving the energy efficiency of their heating facilities, cooling facilities and lighting systems (lowconsumption lights, motion detectors to activate lighting, etc.). Result: carbon emissions reduced by 13% in Europe per package prepared (compared with 2010 levels). Midlum. Carrefour is also experimenting with a bio-ethanol lorry in collaboration with the manufacturer Scania and the carrier STAF. In Spain, vehicles that run on urban-network natural gas are in use in the Valencia region. Annually, this saves 50 tonnes in CO 2 emissions. These initiatives hold a great deal of promise for We are aware of our responsibility as a major retailer. Three questions for Alexandre Vienney, Transport and Sustainable Development Functional Leader for the Carrefour group What projects/areas did you focus your efforts on in 2011? As Transport and Sustainable Development Functional Leader, my role in the Group Supply Chain is to help our countries define and implement initiatives aimed at increasing our performance in these two areas, which today have become inseparable from each other. If we consider the supply chain in its totality, the most important environmental challenges lie in the area of transport. This is therefore where we must focus our efforts. CO 2 emissions depend directly on two factors: the number of kilometres travelled and the quantity of emissions generated with each kilometre. To reduce these kilometres, we seek synergies existing among all of our flows (upstream, downstream, returns) and introduce tools capable of using them operationally. In each of the Group s countries, with regard to departures from each of our warehouses, we measure and improve the fill rates of the lorries that deliver to our stores. To reduce CO 2 emissions per kilometre, we continue to make massive use of alternatives to road transport, such as barge and train, when infrastructures make this possible. Lorries are nonetheless often the only available means of transport, especially for urban areas. This is why we are precursors in the exploration of a wide range of innovative solutions that allow us to test and then the future. implement clean technologies: hybrid and electric vehicles as well as vehicles powered by ethanol, NGV, etc. How do you integrate sustainable development into your business at Group level? In addition to the processes and technical solutions mentioned above, we are aware of our responsibility as a major retailer and are convinced that our logistics chain will play a primary role in Carrefour s environmental strategy. It is a constant concern in terms of transport, of course, but also in our warehouse operations, in which we improve the energy performance of our equipment each year. What have you done to raise awareness about sustainable development among the logistics teams? Sustainable development is everyone s responsibility. Over the past two years, we have rolled out an informational programme designed to train all the logistics teams in environmental issues to facilitate comprehension of the challenges linked to CO 2 in the supply chain and to stimulate initiative. This programme is in the Group s training catalogue (see page 78). We also involve our service providers in our sustainable development approach, for example by encouraging our carriers to sign ADEME s carbon charter. 61