Carrefour

Environmental & Social Information • Apr 19, 2021

Press release Massy, 19th April 2021

Raised ambition: Carrefour sets itself some new targets for its CSR and Food Transition Index

Three years after it created its CSR and Food Transition index, Carrefour is raising its targets and setting itself some new ones. Henceforth, it will be incorporated into the variable remuneration of all Group entity employees, as well as into the remuneration of integrated country managers.

In 2018, Carrefour introduced a CSR and food transition index designed to assess the Group's performance and track its success in achieving its corporate social responsibility targets. The index covers four areas: Responsible product sourcing, store activities and logistics, perception and customer satisfaction and commitment to its workforce. Several quantitative targets and timeframes are associated with each of these areas. 17 indicators are tracked, and the results for each one are published annually. The average of the scores achieved for all of these indicators is the index's overall score. In 2020, the CSR and Food transition index reached a score of 115% (114% in 2019), meaning it outperformed the initial target by 15%.

Carrefour is now raising its targets for several of these areas so as to confirm and bolster its commitment to sustainable fishing, combating deforestation, promoting nutrition and health as well as local products and reducing the use of packaging.

At the same time, it is setting new targets on reducing the carbon footprint of the products it sells, promoting animal welfare, the commitment of its national brand suppliers, diversity and the commitment of its employees.

For example, Carrefour has set itself the following targets:

● Nutrition and health: To help our customers enjoy a healthier diet, we are committing to ensuring that by 2025, 25% of our food products will contribute to the food transition. Furthermore, the recipes of more than 6,000 product will be revised so as to reduce their sugar, fat or salt content, and eliminate controversial substances or additives by 2022. These new commitments are in addition to our applying the Nutri-score system to 7,000 of our store and e-commerce products before 2022 and eliminating more than 100 controversial substances from our Carrefour-branded products.

• Food transition in stores: As part of our ACT FOR FOOD program, the CSR and Food Transition index will gauge the satisfaction of our customers based on the five priorities that we have set ourselves:
  • Accessible organic products
  • Healthy and responsible Carrefour brand
  • Tackling food wastage
  • Elimination of single-use plastics
  • Availability of ultra-local products
• Supplier commitment: As part of an extension of the food transition pact that was launched in 2019 involving more than 30 major partner brands, Carrefour is extending it to include the national suppliers operating in each of the Group's countries in 2021. The idea is to involve brands that are popular with our customers in our food transition for all program. The aim is to sign up 300 suppliers by 2025.
• Packaging: Carrefour has doubled its packaging reduction target, and is committed to reducing it by 20,000 tons before 2025. The Group is involving all of its industrial partners in its aim of achieving 1,000 reusable packaging solutions so as to supply the various re-use, deposit and "sold loose" schemes in use in stores.
• Climate: To meet its target of reducing the CO2 emissions of its indirect activities (scope 3) by 30%, Carrefour is getting its suppliers to reduce their carbon footprint by 20 megatons of CO2 by 2025. In particular, this will involve developing the use of plant proteins, cutting energy consumption, using renewable energies and incorporating local and low-carbon ingredients.
• Diversity and team commitment: Across the Group, Carrefour is stepping up its aims in the area of diversity. It has set the ambition of women accounting for 35% of its 200 most senior managers and is aiming to have people with disabilities account for 4% of its employees. It is also developing employee expertise by giving them access to training and is bolstering own commitment to its own teams, which is measured by employee recommendation.

To help reach these targets, performance criteria have been incorporated into the pay of Group managers. Starting in 2019, 25% of managers' pay was based on the CSR index as part of a Long-Term Incentive. And 20% of the CEO's (company representative) pay has been made up of a variable component. Since 2021, the CSR index has been

incorporated into the variable remuneration of all Group entity employees, as well as into the remuneration of integrated country managers.

Appendix: comprehensive list of CSR index and food transition indicators, 2021 – 2025

Responsible products

Topic	Target	Change
Sustainable agriculture	15% of food sales to be of products made using organic or agroecological farming methods by 2025	New
Sensitive raw materials	100% of sensitive raw materials to be covered by a risk reduction plan by 2025	Raised
Packaging	All packaging to be reusable, recyclable or compostable by 2025	Confirmed
Animal welfare	Eight key targets of our animal welfare policy to be deployed in all countries by 2025	New
Supplier commitment	300 suppliers to commit to the food transition pact by 2025	New

Stores, e-commerce and logistics

Topic	Target	Change
Food waste	Food waste to be cut by 50% by 2025 (compared with 2016 levels)	Confirmed
Waste	All waste to be recycled by 2025	Confirmed
Climate	● Scope 1 and scope 2 greenhouse gas emissions to be cut by 30% by 2030 and by 55% by 2040 (compared with 2019 levels) ● Scope 3 greenhouse gas emissions to be cut by 29% by 2030, of which a 30% reduction in greenhouse gas emissions resulting from the purchase of goods and services (20 megatons).	Raised
Local roots	30,000 local partners by 2025	New

Customers

Topic	Target	Change
Nutrition and health	The recipes of 6000 products to be revised so as to reduce the sugar, fat or salt content, and to eliminate controversial substances or additives by 2022	New
Food transition offering	25% of food products sold to contribute to the food transition by 2025	New

Food transition in stores	15% increase in in-store customer surveys regarding organic and local products, the reduction of food waste and packaging, health and nutrition by 2025	New
Act For Food	80% of our customers believe that Carrefour helps them to enjoy a healthier and more responsible diet while remaining affordable by 2022	Confirmed

Employees

Topic	Target	Change
Commitment	Minimum employee recommendation score of 75/100 awarded to Carrefour every year by its employees	New
Gender equality	Women to account for 35% of (the top 200) managers by 2025	Raised
Training	At least half of employees to have access to training every year	New
Disability	At least 4% of the Group's employees to be people with disabilities by 2025	Confirmed

About the Carrefour Group

With a multi-format network of some 13,000 stores in more than 30 countries, the Carrefour Group is one of the world's leading food retailers. The Group recorded revenue of €78.6 billion in 2020. It has more than 320,000 employees who help to make Carrefour the world leader in the food transition for everyone, providing everybody with access to high-quality, affordable food every day, no matter where they are. For more information, visit www.carrefour.com, or find us on Twitter (@GroupeCarrefour) and LinkedIn (Carrefour).

Contacts Investor Relations Selma Bekhechi, Anthony Guglielmo et Antoine Parison Tel : +33 (0)1 64 50 79 81 Shareholder Relations Tel : 0 805 902 902 (toll-free in France)

Group Communication Tel : +33 (0)1 58 47 88 80