2019 DECLARATION OF EXTRA-FINANCIAL PERFORMANCE - VITALITY RESPONSIBILITY GENEROSITY AUTHENTICITY
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SUMMARY __ CHALLENGES PEOPLE AND PRODUCTS AND STRATEGIES MANAGEMENT AND SERVICES DECLARATION ___ ___ ___ OF EXTRA-FINANCIAL 5 E DITORIAL 27 P UTTING PEOPLE AT 51 I NTEGRATING INNOVATION PERFORMANCE 6 D ECATHLON IN FIGURES THE HEART OF OUR GROWTH AT EVERY LEVEL 32 M AKING RESPONSIBILITY 55 G ENERALISING THE ECO-DESIGN 2019 8 2 019 HIGHLIGHTS AND FREEDOM A PRIORITY OF OUR PRODUCTS 10 O UR BUSINESS MODEL 37 D EVELOPING SKILLS 60 P ROVIDING USEFUL 14 O UR MAIN EXTRA-FINANCIAL RISKS AND REVEALING TALENT ECO-FRIENDLY OFFERS 16 O UR 2015-2019 SD AMBITIONS 41 D ELIVERING HEALTH AND SAFETY 65 C REATING SAFE 18 O UR STAKEHOLDERS 44 A TTRACTING, PAYING HIGH-QUALITY PRODUCTS 20 O UR 2019 ORGANISATION AND MOTIVATING TEAMMATES 22 O UR COMMITMENT TO RESPOND 47 T HE DECATHLON FOUNDATION TO THE CLIMATE CHALLENGE RESPONSIBILITY STORES INDICATORS IN PRODUCTION AND TRANSPORT AND METHODOLOGY ___ ___ ___ 71 M AINTAINING LONG-TERM 85 E CO-DEVELOPING 103 O UR PERFORMANCE INDICATORS RELATIONSHIPS OUR GLOBAL NETWORK 124 C ORRELATION OF SUSTAINABLE 76 A CTIONS TO PROMOTE 90 G ETTING INVOLVED IN DEVELOPMENT OBJECTIVES HUMAN PROGRESS TERRITORIAL DYNAMICS 126 M ETHODOLOGICAL NOTE DECLARATION OF EXTRA-FINANCIAL PERFORMANCE 2019 81 D EPLOYING ENVIRONMENTAL 95 O PTIMISING OUR WASTE GENERAL ORGANISATION OF REPORTS MANAGEMENT AND ENERGY MANAGEMENT 132 O UR MAIN 99 T RANSPORTING OUR PRODUCTS, EXTRA-FINANCIAL RISKS PROMOTING ECO-MOBILITY 134 L IST OF 2019 STAKEHOLDERS 136 C ONFIRMATION OF PARTICIPATION AND REPORT ON THE FAIRNESS OF THE INFORMATION 2 3
CHALLENGES AND STRATEGIES PEOPLE AND MANAGEMENT PRODUCTS AND SERVICES RESPONSIBILITY IN PRODUCTION STORES AND TRANSPORT INDICATORS AND METHODOLOGY 2019 was marked by the increasingly vocal CHALLENGES concern of all our stakeholders regarding the environmental crisis and climate change in particular. Our generation is facing unprecedented challenges and must find the right solutions to the unequivocal These conditions have been supplemented with various conclusions coming from the scientific community. We initiatives that include support with environmental challenges. AND STRATEGIES have now arrived at a tipping point: the next 10 years will be What’s more, we are also mobilising these production units with decisive ones. a view to reducing their carbon footprint. This year, we have demonstrated our strong commitment to act by signing the UN For several years now, the Decathlon teams have been tackling Fashion Industry Charter for Climate Action4, which brings the issues of sustainable development. This year, the company together various players of the clothing and fashion sectors began to implement some real changes in line with the behind an objective to reduce their CO2 emissions in order to recommendations of scientific experts, using the Science meet the target levels set by the Paris Agreements Based Target initiative to validate new commitments in the fight against global warming. In a world in which the ability to adapt is essential, the way we 68% operate as an international network and the restatement of the Among the measures taken to comply with these fundamentals of our human policy will be major assets. That’s commitments, we are continuing to ramp up the consumption why we believe more than ever in everyone’s Responsibility of electricity from renewable sources and we are committed and in the principle of subsidiarity, which means that decisions to ensuring that 100% of our products are eco-designed by are taken where they can make the most impact. OF SPORTS USERS 2026. By reworking our unique Decathlon Academy training platform, each team member can assess their skills and attitudes, DELIGHTED Every day, these sports products are manufactured within the develop skills where and when they need to in keeping with the context of a relationship based on mutual trust, established over purpose of their duties, and define the way forward in order to IN 2019 the years working with our industrial partners. Thanks to this fulfil all their ambitions. collaboration, we include them in our action plans addressing human and environmental issues. Having always been Finally, because these concerns are shared by our customers, particularly concerned with regard to Human Rights, we have our users and our team members working in the stores, shown how prepared we are in this area this year by drawing we promote more responsible consumption by providing LOCATIONS IN up our Modern Slavery Statement, which lays out the actions 57countries second-life products, repair services in our workshops and an we have taken in the fight against modern slavery, and our 2nd ever growing range of eco-designed products. In France, the Vigilance Plan2. At the same time, in 2019, in accordance with sum total of these products and services is being translated 1 the principle of subsidiarity, each area manager3 reaffirmed their commitment to comply with Decathlon’s requirements in into long-term sales in our stores and we are monitoring its progress. terms of production conditions. The entrepreneurial adventure of Decathlon is marked by a very strong commitment: we now believe that this determination must be experienced collectively, through 8.7kg dialogue. Working alone, we will not be able to provide the solution to emerging issues, particularly when it comes to the question of the unique consumption of our products and the creation of a circular economy. In order to rethink the dream of a new and sustainable world while continuing to serve our ambition, which is “to make the benefits of sport and sporting CO2 EQ. PER EDITORIAL disciplines accessible to as many people as possible over the long term”, we must develop co-creation with our customers PRODUCT SOLD DPEF2019 CHALLENGES AND STR ATEGIES and our users, strengthen our partnerships, build stronger ties with local players, form new alliances and bring to +1.2% SINCE 2016 life our common commitments. ANNE DÉSORMAIS SD REPORT - MANAGING EDITOR Swimming enthusiast ___ 1. Countries in which Decathlon is present commercially, excluding production and franchises. 4 2. http://developpement-durable.decathlon.com/documents-et-rapports/documents/ 5 3. Decathlon area: country or City. 4. http://unfccc.int/
CHALLENGES AND STRATEGIES PEOPLE AND MANAGEMENT PRODUCTS AND SERVICES RESPONSIBILITY IN PRODUCTION STORES AND TRANSPORT INDICATORS AND METHODOLOGY BREAKDOWN OF TEAMMATES BY GEOGRAPHIC AREA DECATHLON AS OF 31/12/2019 165 ___ EUROPE AND RUSSIA: IN FIGURES AS OF 31/12/2019 STORE OPENINGS IN 2019 67% KIEV UKRAINE BELGRADE 1,647 NISHINOMIYA 73 SERBIA JAPAN ALGER ALGERIA SLIEMA MALTA HANOI VIETNAM WAREHOUSES AND STORES WORLDWIDE, AMERICAS: IN 938 URBAN CLUSTERS LOGISTICS PLATFORMS 4.1% ASIA: 165 MORE THAN IN 2018 AFRICA AND MIDDLE EAST: 24.4% 4.2% OCEANIA: €12.4 BILLION IN TURNOVER 400 MILLION SPORTS USERS OF SPORTS USERS 68% DECATHLON LOCATIONS IN 0.3% 57 countries 6 (EXCL. VAT)1 IMPACTED BY OUR PRODUCTS DELIGHTED IN STORES AND ON INTERNET RATE: 4.48/5 NEW DECATHLON NEW +9.1% COMPARED WITH 2018 CITIES IN COUNTRIES 102,307 TEAMMATES 54% OF OUR TEAMMATES 85 61.1% ENVIRONNEMENTAL LABELLING 8.7 kg DECATHLON CO 2 EQ./ 46% WOMEN AND 54% MEN ENJOY COMING TO WORK 2 OF DECATHLON PRODUCTS BRANDS PRODUCT SOLD +6.6% MORE THAN IN 2018 50% IN 2018 30.1% IN 2018 +1.2% SINCE 2016 BREAKDOWN OF TEAMMATES BREAKDOWN OF TEAMMATES DPEF2019 CHALLENGES AND STR ATEGIES BY AGE - AS OF 31/12/2019 BY ACTIVITY - AS OF 31/12/2019 86% 80% ___ ___ 20-29 YEARS 60.3% 43 SUPPORT SERVICES UNDER 20 YEARS RETAIL AND 5.1% 5.2% SERVICES 78.2% DESIGN/ OF RANK 1 OF RANK 1 AND RANK 2 50 YEARS AND OLDER PRODUCTION PRODUCTION SITES PRODUCTION SITES 2.4% 5% WERE GIVEN A, B OR C RATINGS WERE GIVEN A, B OR C RATINGS PARTNERS FOR THEIR HUMAN FOR THEIR ENVIRONNEMENTAL 40-49 YEARS LOGISTICS RESPONSABILITY IN PRODUCTION MANAGEMENT SUPPLIERS 7.4% 30-39 YEARS 11.7% STABLE COMPARED TO 2018 +15.9% COMPARED TO 2018 24.8% ___ 1. At constant exchange rates. 6 2. Percentage of people who answered «yes, absolutely» to the questions relative to hapiness at work, given by the annual and internal survey. 7
CHALLENGES AND STRATEGIES PEOPLE AND MANAGEMENT PRODUCTS AND SERVICES RESPONSIBILITY IN PRODUCTION STORES AND TRANSPORT INDICATORS AND METHODOLOGY +6 58.9% 3.2% 2019 NEW CITIES OPENED OF DECATHLON’S OVERALL OF AIR HIGHLIGHTS ACROSS THE WORLD: ELECTRICITY CONSUMPTION TRANSPORT TO SHIP OUR ALGER, BELGRADE, WAS FROM RENEWABLE ENERGY PRODUCTS IN 2019 KIEV, MALTA, HANOI, NISHINOMIYA IN ORDER TO REACH OF COMMITMENT STABLE COMPARED TO 2018 18 1 UNIQUE DIGITAL TRAINING COTTON 95% INNOVATIVE PRODUCTS PLATFORM IN THE WORLD PROMOTED AT THE SUSTAINABLY-SOURCED INNOVATION +25% COMPARED TO 2018 AWARDS IN 2019 MATERIALS SELECTION +1.2% REPORTING OF SUSTAINABLE TURNOVER HAS BEEN PUTTED POLYESTER 503 START OF WORK ON World CleanUp Day 16.3% INTENSITY OF IN DECATHLON STORES THE 2109-2022 CO2 EMITTED EVENTS BY QUANTITY OF IT MESURES ECONOMICAL RESULTS LINKED TO SECOND LIFE OF PRODUCTS, ECO-DESIGNED PRODUCTS SOLD HELD IN 42 COUNTRIES, NEW HUMAN PRODUCT SOLD IN 2019, AND WORKSHOPS ACTIVITY. SUSTAINABLY-SOURCED 24,500 PERSONS, CHALLENGES -5.9% COMPARED TO 2018 124 TONS OF WASTE COMPARED TO 2016 4.1% OF SUSTAINABLE TURNOVER IN 2019 IN FRANCE COLLECTED IN FRANCE DPEF2019 CHALLENGES AND STR ATEGIES VALIDATION OF OUR OBJECTIVE ALLIANCES WITH TO REDUCE OUR IMPACT NEW STAKEHOLDERS USING THE SBT INITIATIVE INCLUDED UNFCCC AND FASHION PACT ON OUR SCOPES 1 AND 2 8 9
CHALLENGES AND STRATEGIES PEOPLE AND MANAGEMENT PRODUCTS AND SERVICES RESPONSIBILITY IN PRODUCTION STORES AND TRANSPORT INDICATORS AND METHODOLOGY OUR BUSINESS MODEL KEY FIGURES AS OF 31/12/2019 OUR RESOURCES CREATING VALUE OUR TEAMMATES OUR TEAMMATES 102,307 TEAMMATES 54% OF OUR TEAMMATES ENJOY COMING TO WORK EVERY DAY 46% WOMEN / 54% MEN 48.6% OF OUR TEAMMATES ARE SHAREHOLDERS BREAKDOWN BY SECTOR: PRODUCT DESIGN SUPPORT FOR PERSONAL DEVELOPMENT 78.2% RETAIL AND WEB SERVICES, 5% DESIGN/PRODUCTION, SPORTS INNOVATIONS, AND SKILL-BUILDING 5.1% SUPPORT SERVICES, 11.7% LOGISTICS TECHNICAL, EXCLUSIVES, 19.1% PAYROLL/TURNOVER RECOGNIZED, ECO-DESIGNED, DECATHLON ACADEMY TRAINING DIGITAL PLATFORM 48 NEW PROJECTS HELPING 28,895 NEW BENEFICIAIRIES AT THE FAIREST PRICE AND 10 DECATHLON EXCHANGE TRAINING CENTRES OUR TEAMMATES PRODUCT DESIGN SPORTS PEOPLE, PASSIONATE, PRODUCT DESIGN 85 DECATHLON BRANDS RESPONSIBLE 65 PATENTS HAVE BEEN FILED AND EXTENDED AROUND THE WORLD TO MEET USER NEEDS IN-HOUSE NET PROMOTER SCORE OF 35, IN-HOUSE LABORATORIES/PROTOTYPING WORKSHOPS OUR PURPOSE : INFLUENCE COEFFICIENT: 3.3 3,000 PROTOTYPES WE MAKE THE BENEFITS OF SPORT AND 95% OF OUR COTTON AND 16.3% OF OUR POLYESTER ON-SITE TESTING SPORTING DISCIPLINES ACCESSIBLE TO AS MANY COME FROM MORE SUSTAINABLE SOURCES AND CO-DESIGNING WITH USERS 61.1% OF PRODUCTS HAVE AN ENVIRONMENTAL LABEL PEOPLE AS POSSIBLE OVER THE LONG TERM SUPPLY CHAIN SUPPLY CHAIN 47 PRODUCTION COUNTRIES 29% OF OUR PRODUCTS ARE SOURCED FROM OUR INDUSTRIAL PARTNERS AND 42 PRODUCTION OFFICES 86% OF OUR RANK 1 SUPPLIERS WERE GIVEN ABC HUMAN RESPONSIBILITY 1,353 SUPPLIERS (RANK 1 AND RANK 2) IN PRODUCTION (HRP) SCORES (93% FOR OUR PARTNERS), INCLUDING 43 PARTNERS 80% OF OUR RANK 1 AND RANK 2 SUPPLIERS WERE GIVEN ABC SCORES 16 INDUSTRIAL PRODUCTION PROCESSES FOR LOCAL ENVIRONMENTAL RESPONSIBILITY SUPPLY CHAIN (100% FOR OUR PARTNERS) 1,025 HUMAN RESPONSIBILITY IN PRODUCTION AUDITS COMMON VALUES SHARED AND 110 ENVIRONMENTAL AUDITS WITH OUR INDUSTRIAL 10.3 YEARS OF AVERAGE LENGTH OF SERVICE PARTNERS, ENVIRONMENTAL FOR THE 100 FIRST SUPPLIERS IN TERMS OF TURNOVER AND HUMAN ASSESSMENTS TRANSPORT AND LOGISTICS TRANSPORT AND LOGISTICS 73 WAREHOUSES AROUND THE WORLD OMNICOMMERCE 1,333 ITEMS SHIPPED/M2 5,710 MILLION TONNE-KILOMETRES TRANSPORTED RETAIL, ON-LINE, MARKET 53.1 m3 AVERAGE PER LORRY LOAD RATE PLACE, SERVICES PLATFORMS, PRODUCT TRANSPORT: DECATHLON BRANDS, ENVIRONMENTAL IMPACT OF PRODUCTS SHIPMENT IN EUROPE: 3.2% AIR TRANSPORT, 82.2% MARITIME TRANSPORT, TRADEMARKETS +3.5% OF CO2 EMISSIONS IN 2019 COMPARED TO 2018 4% RAIL TRANSPORT AND 10.6% ROAD TRANSPORT SIGNED SPORTS INVOLVMENT IN SOFT MOBILITY GROWTH OMNICOMMERCE OMNICOMMERCE 1,647 STORES AND DIGITAL PLATFORMS LOCATED 400 MILLION: NUMBER OF CUSTOMERS/SPORTS USERS IN 57 COUNTRIES AND 938 CITIES AND TOWNS 68% OF SPORTS USERS DELIGHTED TRANSPORT ENSURING OUR PRODUCTS ARE ACCESSIBLE €12.4 BILLION IN TURNOVER (EXCL. VAT), THAT COMES FROM AND LOGISTICS THROUGH ALL OUR DISTRIBUTION CHANNELS PRODUCTS AVAILABILITY, PRODUCTS SALES, ACTIVITIES, SECOND-LIFE PRODUCTS ORGANISING SPORTING EVENTS OPTIMAL STORAGE TIME AND EVENTS, WORKSHOP ACIVITIES, +9.1% GROWTH WITH HELP FROM OUR COMMUNITIES 8.7 Kg CO2 eq. PER PRODUCT SOLD (+1.2% COMPARED TO 2016) 180 INTERNATIONAL PARTNER BRANDS DPEF2019 CHALLENGES AND STR ATEGIES MICHEL ABALLEA DECATHLON UNITED RESPONSIBLE L’ÉCO-SYSTÈME Open Water Swimming enthusiast TEAMMATES CUSTOMERS AND USERS SUPPLIERS NGOs/CIVIL SOCIETY PUBLIC REGULATORS SHARHOLDERS TEMMATES, SOCIAL PARTNERS CUSTOMERS, USERS, CONSUMER BUSINESS PARTNERS, MEDIAS, NGOS, PROFESSIONAL BODIES, EUROPEAN COMMISSION, OECD, NCPs, AND INVESTISSORS ASSOCIATIONS, SPORTS CLUBS DECATHLON PRODUCTS SUPPLIERS EDUCATION AND RESEARCH, ECOLOGY MINISTERS, ECO BODIES, GOWING THROUGH GREATER FREEDOM AFR/AFM, BANKS, ETC. LOCAL COMMUNITIES, CSR EXPERTS AUTHORITHIES AND RESPONSABILITY, TAKING DECISIONS OBJECTIVE : SPORT USER DELIGHTED BUILDOND LONG-TERM RELATIONS CONTROL AND SECURING WHERE THEY HAVE AN IMPACT OR DELIGHTED TO SHARE VALUES AND HUMAN AND EMBRACING DIALOG IN A PRAGMATIC, BEING PROACTIVE RATHER THAN INVESTMENTS FOR AN SUSTAINABLE ENVIRONNMENTAL OBJECTIVES TOGETHER TRANSPARENT AND HONEST MANNER SPECTATORS OF THE LEGISLATION RYTHM AND RESILIENT COMPANY 10 11
CHALLENGES AND STRATEGIES PEOPLE AND MANAGEMENT PRODUCTS AND SERVICES RESPONSIBILITY IN PRODUCTION STORES AND TRANSPORT INDICATORS AND METHODOLOGY INTERVIEW AT DECATHLON, WE BELIEVE IN COLLECTIVE INTELLIGENCE FRANCK VIGO AND WE WANT EACH TEAM MATE TO HAVE THE POSSIBILITY TO EXPRESS THEIR IDEAS AND DESIRES FOR THE FUTURE OF THEIR COMPANY. LEADER OF EXPLORATION AND ACQUISITIONS WITH VISION 2030, WE WANTED TO OPEN THE EXERCISE TO EVERYONE, WITHOUT EXCEPTION, UNDER THE GUIDING PRINCIPLE THAT ALL IDEAS HAVE THE SAME WORTH, 1 OUR GENERATION IS FACED WITH AN UNPRECEDENTED CHALLENGE IN THE AREA OF CONSUMPTION: HOW IS IT POSSIBLE TO CONTINUE PROVIDING THE BEST 3 WHAT SHAPE WILL DECATHLON’S BUSINESS MODEL TAKE TO MEET THESE CHALLENGES? WHEREVER THEY COME FROM. DECATHLON EXISTS BECAUSE OF ITS ECOSYSTEMS WHERE ITS This change will only take place by bringing to life local USERS, CUSTOMERS, PARTNERS, NEIGHBOURS AND SPORTS POSSIBLE OFFERING TO MAKE SPORT ACCESSIBLE experiences which are as closely connected to our ecosystem CLUBS ALL RESIDE. TO OPEN OUR VISION EXERCISE TO ALL TO ALL, WHILE TAKING INTO ACCOUNT THE CHALLENGES as possible: it is our enthusiastic team members who will fulfil STAKEHOLDERS, WE CREATED A DIGITAL PLATFORM. OF PROTECTING OUR ENVIRONMENT? Decathlon’s potential, by adding value at every level, thanks to The distribution model as we have known it over the last 40 our products and a successful digital platform. CHARLIE FELGATE, LEADER VISION DECATHLON, years, needs to be reviewed; i.e. the mass market is probably At the same time, we must also adopt a multi-local mindset: we PASSIONATE ABOUT POSITIVE CHANGE no longer the answer to achieving growth that is respectful of will have to respond to several needs with a single activity. For natural resources. We cannot therefore keep using this single example, when a client from Lyon wants to go surfing in Hendaye, source of growth and must adopt new ways of measuring we must offer all the solutions to issues associated with the In 2018, Decathlon relaunched its Vision process, to dream up a new collective adventure. performance. Rather than turnover, we must think in terms sporting discipline: how to reserve the equipment, where to surf, of sustainable business volumes, with the creation of shared The company decided to put forward this approach in a collaborative mode, open not only to everyone inside the company but which community or coach can help them make progress, and also to contributions from outside. Consequently, the Vision process is accessible to all those stakeholders who are interested: value, which will accompany a fair and equitable transition how to monitor and share their sporting performance? with the other agents in our ecosystem. We are starting to customers, users, partners, etc. 4 explore this and it is particularly evident this year through our IS THERE A DEADLINE FOR THIS CHANGE It is coordinated at a local level, in towns and Decathlon Cities, in order to include as many participants as possible throughout the partnership with the All-Tricks market place. OF BUSINESS MODEL? network. 2 Like all the agents involved, Decathlon follows the underlying SO WHAT ARE THE CRITERIA FOR DEVELOPING trends that will stand up to the world of tomorrow. In this THEMES OF THE 2030 VISION: The 2026 Vision took up 5 fixed topics, stemming from collective intelligence. THIS NEW GROWTH BASED ON PARTNERSHIPS? These topics have evolved and we have chosen to take a step back and continue with 3 major topics, all of which are informed by uncertain, volatile world, it is difficult to plan a long-term The first step is to separate exploration from the development strategy, but we can set ourselves ambitious goals. We must the two major pillars of our time: sustainable development and digital technology. aspect. We are looking for new pathways, with the sole be able to adapt to this changing, unstable and exciting world. conviction that there will be few certainties, while sticking firmly We also need to be able to get everyone on board internally, and to certain sustainable development criteria: respect for human not to be driven purely by immediate results in terms of cost, but FUTURE FUTURE FUTURE rights, minimum impact on our environment, building a resilient OF PEOPLE OF SPORTPEOPLE OF LIVING also to have a more composed outlook on the future, using other economy. This is how we will protect ourselves from the risks criteria linked to our human and environmental performance. “We believe that sport can bring “We believe we are moving without jeopardising the activities that underpin our current “We believe that people are development. Then, our obsession will become local growth, people together through deep-seated towards a sharing economy where the beating heart of the future” and the priority will be to build the most relevant external and strong human values” sports will play a social role” partnerships in their field. ISABELLE MATHIEU RENIER FLORENT MARTIN BLONDET GONTE Future Of Future Of Future Of People Leader SportsPeople Leader Living Leader OPPORTUNITIES ASSOCIATED WITH TRENDS IN SOCIETY ATTRACTION OF THE BENEFITS OF SPORT DAMAGE TO THE ENVIRONMENT HELPING PEOPLE DISCOVER AND EXPERIENCE THE BENEFITS PRESERVING OUR PLAYING FIELDS BY REDUCING Each topic covers sub-topics, THE PROCESS OF SPORT IN A SUITABLE AND EASILY ACCESSIBLE FORMAT, THE ENVIRONMENTAL IMPACTS OF OUR ACTIVITIES. so that the subjects can be examined in depth. With co-creation and collective intelligence platforms: we ANYWHERE AND AT ANY AGE. DIGITAL TRANSFORMATION are convinced that the Vision must be fulfilled in the most THE FUNDAMENTALS FOR A VISION URBANISATION OF POPULATIONS PROVIDING OUR TEAMS, SPORTS CUSTOMERS, SUPPLIERS collaborative way possible. In order to test the different SEIZING THE OPPORTUNITIES PROVIDED BY THESE ENVIRONMENTS AND PARTNERS (COMMERCIAL, INDUSTRIAL AND INSTITUTIONAL) THAT EVERYONE CAN EXPERIENCE interactions, the Nabaiji Signed Sport started up the process by BY PUTTING FORWARD OUR PRODUCTS AND SERVICES. WITH A NEW, QUICKER AND MORE FLEXIBLE MODE OF EXCHANGING, On the principle of Co-Construction: the 2030 Vision is being WORKING AND CONNECTING. experimenting with the platform for the Swimming Vision in 2020. put together with all the team members and open to all of Decathlon’s ecosystems, because the creation and deployment A co-creation platform open to everyone, so that you can be DPEF2019 CHALLENGES AND STR ATEGIES OUR COMPETITIVE ADVANTAGES of our own future is a collective adventure. inspired, better understand the challenges of each subject and At the local level: in order to take up the action plans in the express yourself on each topic: THE INTEGRATION OF THE VALUE CHAIN, THE VALUE OF OUR HUMAN VITALITY, GENEROSITY AND AUTHENTICITY, THE VALUE most effective way possible and deploy them in such a way that https://vision2030.decathlon.com/drivingchange/debate/1 OF OUR RESPONSIBILITY THAT WE USE TO MAKE BOLD DECISIONS, OUR EASILY ACCESSIBLE PRODUCTS FOR A WIDE AUDIENCE they match the needs, the 2030 Vision must be experienced at the centre of the Decathlon Cities. THE GLOBAL MARKET FOR SPORTS With new ways of working together: the changes in scale (increasing from 70,000 to 100,000 employees and from 25 to 220 9,000 TRAINED VISION CONTRIBUTIONS Decathlon manages its activities on the global market, with a commercial presence in 57 countries and production activities in 47 countries. The field of activity is 50 countries) require a proactive search for balance between specialised distribution with the following 3 sub-sectors: manufacturing sporting goods, retailing sporting and leisure goods, and sports-related activities. The distribution maintaining control of Operational Excellence while attaining COORDINATORS ACROSS 57 COUNTRIES is fulfilled by pure-players (specialised chains of single-brand or multi-brand sporting goods) and non-specialised distributors (sports departments of department stores, distributor chains or independent distributors). In terms of consumption, sporting goods are used both for sports or for their extended uses (casual wear, streetwear or and living out our transformation objectives at the same time. outdoor wear). The distribution is across multiple channels: physical stores (big box stores to convenience stores), e-commerce (store deliveries, drop-off points and home deliveries). According to Capitalmind, the world market is valued at €388 billion. It is growing by 4 to 5% per year. https://fr.decathlonvision2030.com/ 12 13
CHALLENGES AND STRATEGIES PEOPLE AND MANAGEMENT PRODUCTS AND SERVICES RESPONSIBILITY IN PRODUCTION STORES AND TRANSPORT INDICATORS AND METHODOLOGY OUR MAIN METHODS EXTRA-FINANCIAL RISKS The main extra-financial risks are identified and updated during the review of Decathlon’s global risks by the internal audit and risk management teams, after which they are validated by the Audit Committee. To keep control of its extra-financial risks, Decathlon takes organisational measures with: A «Company Representative» (the risk coordinator), who defines the autonomy framework (action framework), makes it available and leads it. They circulate it in the community of representatives located in the countries. Each leader (the manager for the Country, Decathlon City, store and/ or Signed Sport/Manufacturing Process), with the support of their coordinator, is responsible for adapting this autonomy framework to the local For Decathlon, a risk is the possibility that an event will have value, and managing deviations in performance. The extra- situation and enforcing it. This organisation is in keeping with the principles of subsidiarity (responsibility as close as possible to the consequence) consequences likely to affect the human, environmental, financial risks are managed using internal management and in force at Decathlon. material, financial and reputation capital. Decathlon implements control systems which play a key role in running and monitoring The table presents and describes the main extra-financial risks identified within the company. Assessing these risks is an ongoing task and can be measures to identify, prevent, manage and control its risks in its activities: design, production, logistics and distribution. supplemented according to changes in the internal and/or external situation. Decathlon conducts its analyses both from the point of view of the order to achieve its different objectives: creating and preserving risks [-] and the opportunities [+]. CATEGORY SUB-CATEGORY DESCRIPTION OF OPPORTUNITIES [+]; RISKS [-] MEANING AND VALUE Teammate commitment, cohesion [+]; Loss of a sense of value [-] Skills availability and quality, talent development [+]; Loss of skills including expertise, insufficient attractiveness, EMPLOYMENT SKILLS AND MANAGEMENT disemployability, non-response to development needs, failure to anticipate job evolutions [-] TEAMMATES Sharing value, participating in company development, SHARING VALUE project involvement [+], Pay cut [-] Teammate health and safety, quality of work life [+]; HEALTH AND SAFETY Accident, illness, occupational stress [-] Customer/sports user health and safety, product safety (harmlessness, strength, etc.) [+]; Danger for health during use [-] HEALTH AND SAFETY CUSTOMERS Customer safety in store [+]; Accidents [-] Customer satisfaction, recommendation, loyalty, shopping cart amount, CUSTOMER SATISFACTION product innovation [+]; Negative image, dissatisfaction, loss of turnover [-] Opportunities [+]; Serious infringement of human rights, BASIC HUMAN RIGHTS fundamental freedoms and the health and safety of people [-] ÉTHICS Integrity, loyalty, trust in business relations [+]; CORRUPTION Internal and external acts of fraud/corruption [-] DPEF2019 CHALLENGES AND STR ATEGIES Energy savings, resource availability [+]; CLIMATE CHANGE Physical and transition hazards [-] ENVIRONMENT Management of emissions and pollution, protection and optimisation of resources in the value chain [+]; ENVIRONMENTAL IMPACTS Pollution, loss of resources in availability and quality [-] OTHER RISKS UNDER CONSIDERATION: Decathlon devotes particular attention to the risks associated with the inappropriate disclosure, loss or modification of the personal data of its customers and employees, by complying with the general data protection regulations (GDPR) in particular. Other additional risks may exist, of which Decathlon is unaware on the date of this declaration or that are deemed insignificant on that date and which could have a negative effect on the Company in the future. 14 15
CHALLENGES AND STRATEGIES PEOPLE AND MANAGEMENT PRODUCTS AND SERVICES RESPONSIBILITY IN PRODUCTION STORES AND TRANSPORT INDICATORS AND METHODOLOGY OUR 2015-2019 SD AMBITIONS OUR 2019 AMBITIONS TO PROTECT THE ENVIRONMENT AND CONTINUALLY REDUCE OUR ENVIRONMENTAL IMPACT* *Target dates for some goals may not be 2019 given the current situation and the progress made in each area. ACHIEVED 2018 ACHIEVED 2019 Decathlon completed its materiality matrix in 2018. As a result of these observations and the many changes within the company, it was decided to start a more global project on Decathlon’s ambitions in terms of sustainable development, which would bring together all of Decathlon’s human ambitions. REDUCTION IN OUR CARBON INTENSITY BETWEEN 2016 AND 2026 > We create action plans for each activity based on our environmental impact 8.4kg 8.7kg > Find the Decathlon’ s materiality matrix: www.developpement-durable.decathlon.com/documents -40% assessment and we are working together to reach the target approved CO2 EQ./ PRODUCT CO2 EQ./ PRODUCT by the SBT initiative In 2019, work was carried out in this area, in coordination with the teams responsible for Human Resources, while involving the SOLD SOLD international network of sustainable development teams. This new 2020-2026 Transition Plan on Decathlon strategies in favour of Sustainable Development will be communicated within the company during the first half of 2020 and therefore integrated into the REDUCTION IN CO2 EQ. EMISSIONS PER ITEM DELIVERED 311g 322g 2020 version of the Extra-Financial Performance Declaration. -15% IN EUROPE BETWEEN 2015 AND 2020 > We are optimising the transport of our products CO2 EQ./ CO2 EQ./ ARTICLE ARTICLE OUR 2019 AMBITIONS TO EMPOWER OUR TEAMMATES AND MAKE WORK MORE ENJOYABLE ACHIEVED 2018 ACHIEVED 2019 83 CERTIFIED 89 CERTIFIED SITES SITES OF NEW COMPANY-OWNED SITES ARE CERTIFIED OF TEAMMATES LOOK FORWARD TO COMING TO WORK EACH MORNING TO THE MOST EXACTING ENVIRONMENTAL STANDARDS Stores: Stores: 65% BECAUSE THEY ARE WORKING TOWARD PERSONAL AND COLLECTIVE GOALS > We recruit people who are passionate about sport, vital, pragmatic and service-oriented 50% 54% 100% > We are improving the energy efficiency of our sites and reducing 118 kWh/m 2 111 kWh/m 2 the CO2 equivalent emissions stemming from their energy use > Taking only “yes, absolutely” answers Warehouses: Warehouses: OF TEAMMATES PLAY THEIR SPORT REGULARY 58 kWh/m 2 53 kWh/m 2 100% - 82% 1 AND CELEBRATE VICTORIES TOGETHER OF THE ELECTRICITY WE USE WILL COME FROM RENEWABLE SOURCES BY 2026 > We encourage everyone to play a sport 65% > In accordance with our commitment as part of the RE 100 initiative 55.6% 58.9% OF OUR TEAMMATES HAVE A VOICE IN THEIR OWN DEVELOPMENT AND LEARNING > We support the development of each individual Stores: Stores: 100% I AM SUPPORTED IN MY KNOW-HOW 85% 85% INCREASING SORTED WASTE 39% 39% I AM SUPPORTED IN MY PERSONAL DEVELOPMENT 81% 82% > We optimised the sorting rate for waste generated by our stores and warehouses Warehouses: Warehouses: I AM SUPPORTED IN MY PERFORMANCE 83% 86% 66% 63% TEAMMATES THRIVE BY TAKING ON MORE RESPONSABILITY AND DECISIONS CLOSE TO THEIR CONSEQUENCES OF SUPPLIERS AT RISK FOR WATER, SOIL OR AIR POLLUTION ARE ASSIGNED AN A, B OR C SCORE ACCORDING TO OUR AUDIT CRITERIA > We make it possible to put the principles of subsidiarity, 80% 69% 80% 7 > We improve the environmental performance of our suppliers’ industrial sites by 100% responsability and autonomy into practice helping them continuously reduce their environmental impact based on their risks I HAVE A QUANTIFIABLE MISSION WITH CLEAR KPIs 78% 79% I MAKE DECISIONS ON SUBJECTS I AM INVOLVED AND I MEASURE THE CONSEQUENCES 92% 94% 100% OF TEAMMATES FEEL SAFE IN THEIR WORKPLACE 93% 94% WE ARE REDUCING THE ENVIRONMENTAL IMPACT OF OUR PRODUCTS BY USING RAW MATERIALS FROM SUSTAINABLE SOURCES ACHIEVED 2018 ACHIEVED 2019 OF TEAMMATES ARE SHAREHOLDERS IN THE COMPANY, IF THEY WISH TO BE2 100% > We share the value created at the company 52.5% 48.6% OF TEAMMATES CREATE HUMAN, ENVIRONMENTAL 100% SUSTAINABLE COTTON FOR OUR DECATHLON TEXTILE PRODUCTS BY 2020 76% 95% 100% AND ECONOMIC VALUE TO ACHIEVE OUR COMPANY PURPOSE 92% 94% 100% SUSTAINABLE POLYESTER FOR OUR DECATHLON TEXTILE PRODUCTS BY 2022 17.2% 16.3% OUR 2019 AMBITIONS FOR THE SUPPLY CHAIN: PUT PEOPLE FIRST ACHIEVED 2018 ACHIEVED 2019 PACKAGING MATERIALS WILL COME FROM 95% MORE SUSTAINABLE SOURCES6 BY 2025 85.5% 88.2% DPEF2019 CHALLENGES AND STR ATEGIES OF OUR SUPPLIERS4 ARE GIVEN AN A, B OR C SCORE BASED ON OUR AUDIT CRITERIA 80% 86% 86% 3 > We regularly assess our suppliers to verify that working conditions comply with our Code of Conduct OUR 2019 AMBITIONS TO COMMUNICATE RESPONSIBLY, OUR 2019 AMBITIONS TO BE A LEADER IN PRODUCT SAFETY PRAGMATICALLY AND HONESTLY ABOUT OUR SUSTAINABLE AND LONG-TERM USER SATISFACTION ACHIEVED 2018 ACHIEVED 2019 DEVELOPMENT ACTIONS ACHIEVED 2018 ACHIEVED 2019 OF TEXTILE, FOOTWEAR AND HEAVY STITCHING PRODUCTS SATISFACTION FOR USERS OF OUR SPORTS PRODUCTS5 WILL BE ASSIGNED AN ENVIRONMENTAL SCORE BY THE END OF 2019 67% > We ask them to share feedback about our Decathlon products so that we can continuously improve them 65% 68% 60% > We ensure complete transparency in labelling the environmental performance 30.1% 61.1% of our Decathlon products to support responsible consumption ___ 1. Due to the evolution of DTMB survey between 2018 2019, the question’ terminology is not exactly the same. The results are not completely comparable to last year. 16 2. In the countries where the process does take place for Decathlon. - 3. Common objective for social and environnemental audits for 2019. 17 4. Rank 1 - 5. Percentage of users awarding our products a score of 4 to 5. 6. Made from paper pulp. - 7. Both rank 1 and rank 2.
CHALLENGES AND STRATEGIES PEOPLE AND MANAGEMENT PRODUCTS AND SERVICES RESPONSIBILITY IN PRODUCTION STORES AND TRANSPORT INDICATORS AND METHODOLOGY OUR STAKEHOLDERS ISABELLE GUYADER, IN CHARGE OF SUSTAINABLE DE VELOPMENT AT DECATHLON “As a designer and distributor of sports products, we have a responsibility to act regarding the targets for sustainable development defined by the United Nations. Over the last 10 years, we have made progress on Climate issues, by For Decathlon, 2019 was marked by an acceleration of the collaborative work with our stakeholders. This work means that we implementing measurement tools, initiatives to reduce our CO2 emissions, the gradual transfer to renewable energy sources, can confirm our commitments in terms of sustainable development, strengthen our methodologies and contribute to a collective the development of an eco-design process for our products, etc. impact. > Find all our Stakeholders on page 134. We want to move forward on matters related to biodiversity and protecting our oceans. We are convinced that working collectively and sharing will enable us to move faster and set up sustainable solutions.” MIKE PEIRCE, CORPOR ATE PARTNERSHIPS DIRECTOR, THE CLIMATE GROUP JANTINE WERDMÜLLER VON ELGG, MANAGING DIRECTOR STRONGER TOGETHER, QUOTES “We are delighted to be working with Decathlon on the ANDHANNAH NEWCOMB, MANAGING DIRECTOR RESPONSIBLE RECRUITMENT TOOLKIT FROM OUR RE100 initiative – by committing to make the switch to “Modern slavery is a risk to any business and its supply chain and we are pleased to have worked with Decathlon on renewable energy, they are demonstrating the growing proactive steps in mitigating the risks. In 2019, Decathlon introduced Stronger Together’s e-learning to raise awareness STAKEHOLDERS demand for clean power. We applaud their ambitious amongst the large population of Decathlon employees. Decathlon is using the e-learning as an educational tool, as well as commitment of switching to 100% renewable electricity an engagement opportunity to have conversations and build capacity with their Purchasing, Production and Sustainability in all their geographies by 2026 through impactful methods, teams. In October 2019, we facilitated an interactive workshop in which 35 Decathlon Operational Process Managers came and urge other companies to follow their lead.” together to learn more about detecting, deterring and dealing with modern slavery in order to take next steps. In 2020, we will continue to collaborate with Decathlon on addressing hidden labour exploitation risks, focusing on responsible recruitment. Decathlon will join with other leading UK and global retailers as a Sponsor of the Responsible Recruitment Toolkit, providing a package of support to their supply chain to help embed responsible recruitment practices.” LINDITA XHAFERI-SALIHU, ALEXANDER FARSAN, SECTORS ENGAGEMENT LE AD, GLOBAL LE AD FOR SCIENCE-BASED TARGETS AT W WF, UN CLIMATE CHANGE, GLOBAL CLIMATE ACTION ONE OF THE SCIENCE BASED TARGE TS INITIATIVE PARTNERS “Acting on climate has never been more urgent. Fashion “Congratulations to DECATHLON on having their emissions Industry Charter is an extraordinary mechanism for fashion reduction targets validated by the Science Based Targets GÉRALDINE FORT, companies, suppliers and retailers to collaborate on climate initiative. By setting targets that align their business with MANAGING DIRECTOR OF THE ORSE solutions. global efforts to avoid the worst impacts of climate change, “This year, the CSR Observatory (ORSE) is celebrating its 20th anniversary and we are very proud to count Decathlon Decathlon is an important partner of the charter and we Decathlon is positioning itself to thrive as the global among our members and recently, as a board member. Indeed, Decathlon is a company that is constantly looking for new look forward to its active contribution in fulfilling charter’s economy transitions to a low-carbon future.” challenges, developing its methods and making improvements at the service of its employees, customers and partners in mission to drive the industry to net zero emissions.” keeping with societal issues.” RESPONSIBILITY IN PRODUCTION PRODUCTS SAFETY AND QUALITY ENVIRONNEMENTAL MANAGEMENT INSTITUTIONAL RELATIONS DUTY OF CARE GREEN IT ECO-DESIGN DPEF2019 CHALLENGES AND STR ATEGIES FIND THE PRESS INFORMATIONS WHICH RAHEL DAMAMME DETAIL OUR COMMITMENTS IN 2019: LEADER SD REPORTS http://developpement-durable.decathlon.com/ STAKEHOLDER RELATIONS Le projet Plastic Leak documents-et-rapports/documents/ Yoga enthusiast 18 19
CHALLENGES AND STRATEGIES PEOPLE AND MANAGEMENT PRODUCTS AND SERVICES RESPONSIBILITY IN PRODUCTION STORES AND TRANSPORT INDICATORS AND METHODOLOGY OUR 2019 ORGANISATION SANDRA POPIHN SD LOGISTICS AND TRANSPORT The Decathlon sustainable development team is organised into a network of more than 80 team members, covering every RAFFAELE DUBY ENVIRONMENT RAHEL DAMAMME topic and country. SD REPORTS PRODUCTS AND DESIGN THE AGENTS STAKEHOLDER RELATIONS Country Sustainable Development Leaders: Country Sustainable Development Leaders: With their teams, they uphold Decathlon’s sustainable development strategy in their country, along with the action plans, and are in direct contact with their JULIEN stakeholders. EMILIE AUBRY GONTIER CO2 MANAGEMENT Leaders of the Transformation Process: Given their responsibility for a key topic, they prepare for changes affecting society GREEN IT and are in contact with stakeholders relating to their subject. With the team members, they co-construct the tools and methods SUSTAINABLE so they can become autonomous and guarantee the application of their process is globally consistent. DEVELOPMENT Decathlon SD Leader: In collaboration with the Decathlon Leader and in keeping with the company’s strategy, they define the KATY DRAPER TRANSFORMATION sustainable development goals in consultation with the SD team and team members. They head the team of transformation EXTRA-FINANCIAL process leaders and the network of leaders in each country. PERFORMANCE PROCESS MATHILDE DEFRENNE INTERNATIONAL MANAGING THE SD STRATEGY LEADERS SD NETWORK FOR RETAIL The strategy is managed by the SD leader, the circle of Sustainable Development contributors (made up of representatives from various geographical areas and business activities), the external stakeholders, the internal auditors, the Decathlon Leader and the board of directors. ISABELLE GUYADER MARIE CHAILLOU DECATHLON SD LEADER COMMUNICATION DECATHLON SD LEADER PETAR GLUHAK FRANCE CROATIA RONAN LE MOGUEN ANTHONY WEI SUSTAINABLE SOUNDOUS HASSOUNI CHINA ELIS RICAURTE DEVELOPMENT DUTY OF CARE COLOMBIA RASHIDA ARSHAD IN PRODUCTION PAKISTAN HILAL YILMAZ THAIS SALOMAO TURKEY BRAZIL PIERRE FAHY FRANCE HOSSAM ELGAWANY JULIA HSU CIRCLE OF CONTRIBUTORS EGYPT (INTERNAL AND EXTERNAL) MARINA STASSINOPOULOS TAIWAN SIRA JUNTRASOOK GERMANY THAILAND LEANDRO SA PORTUGAL JEREMY PIOLET NADÈGE IFF VIETNAM DECATHLON PHILIPPINES IÑIGO GARCIA MANAGEMENT LEADER ANNIE GEORGE SPAIN VIANNEY ROELAND VERVLOET COUNTRY INDIA BURUCOA INDONESIA NETHERLANDS SUSTAINABLE DEVELOPMENT BOARD OF DIRECTORS SERGEI TIUVETSKII LEADERS RUSSIA RANA RAHMAN BANGLADESH GIORGIO POSSI MAKARA PICH ITALY INTERNAL CAMBODIA AUDITORS DPEF2019 CHALLENGES AND STR ATEGIES AMJAD SBAYTI MOROCCO IZUMI SHIBASAKI EVERYBODY EMMA WOOLLEY ALIX GOURSAT JAPAN UNITED-KINGDOM SINGAPOR JOERI MOONS LOUISE-EGLANTINE GUILLAUME RADOSLAW LETIZIA ABRAMO SWISS BELGIUM HAS TO PLAY A ROLE ! MEXICO POLECHONSKI CIPRIAN MOISE DASA POTOCNIK ANASTASIA BOIKO ALL DECATHLONIANS POLAND SLOVENIA UKRAINE ROMANIA 20 21
CHALLENGES AND STRATEGIES PEOPLE AND MANAGEMENT PRODUCTS AND SERVICES RESPONSIBILITY IN PRODUCTION STORES AND TRANSPORT INDICATORS AND METHODOLOGY OUR COMMITMENT 2019 REPORT ON GREENHOUSE GAS EMISSIONS: TO TACKLING THE In order to monitor its greenhouse gas emissions3, Decathlon has been examining all the GHG emissions CLIMATE CHALLENGE associated with its activities since 2013. Starting with the extraction of the raw materials needed for production and up to the sale of the products in stores and their end-of-life; the analysis includes OUR COMMITMENT: In 2017, the attending States signed the Paris Agreement in response to the urgent need to reduce greenhouse gas emissions manufacturing, product transportation, TO REDUCE OUR GREENHOUSE GAS EMISSIONS in order to keep global warming below a threshold beyond which the disastrous consequences for our environment would be customer and teammate travel, and irreversible. In 2018, the IPCC1 college of experts defined the maximum warming value to be 1.5°C by the end of the century. onsite emissions. This reporting is now BY 40% PER PRODUCT SOLD BETWEEN 2016 AND 2026 1 conducted quarterly. After some encouraging results in 2018, OBJECTIVES VALIDATED Decathlon projected a 3.8% reduction OUR AIM IS TO BECOME THE FIGURES OF Given the situation, in 2019, Decathlon sought to put together an BY THE EXTERNAL SBT action plan involving all its internal players and suppliers, aimed in carbon intensity between 2016 and A CLIMATE POSITIVE OUR COMMITMENT 2019. Despite the decisions made and INITIATIVE4 at tackling the climate challenges. This projection of initiatives BUSINESS 7 BY 2030 IN FAVOUR OF THE CLIMATE incorporates the company’s economic growth forecasts and initial actions taken, the results of the Decathlon has worked on developing AS OF 31/12/2019 provides a realistic trajectory towards a low-carbon economy, GHG emissions report showed a 1.2% its CO2 trajectory using the method This objective will be achievable by ___ validated by the SBT initiative. rise in 2019 compared to 2016. These proposed by the SBT initiative. The modelling the actions associated with 1.2% results must quickly influence the final objective is to align this trajectory our commitment to using electricity Thanks to the carbon footprint assessments conducted since decisions of the company, particularly with a common global effort in order to that is exclusively generated from more 2013, Decathlon is aware that greenhouse gas emissions can only regarding product impact. Indeed, the keep global warming below 1.5°C, (the renewable sources by 2026. be reduced close to the local sources of emissions: this is why main reason for this poor performance threshold set by the Paris Agreement the strategies aimed at training the teams, the effective use of On scope 3, which represents indirect INCREASE IN CO 2 EMISSIONS is the low percentage of eco-designed (COP21) and revised in 2018 following measurement tools and the appropriation of practical action plans emissions (supply, transport, end-of-life products (4% in 2019) and the lack of any the conclusions of the IPCC). This PER QUANTITY SOLD IN 2019 put together on site are more important than ever. improvement in this percentage. of products, etc.), the objective is to trajectory is defined using a series of convince Decathlon’s main suppliers to COMPARED TO 2016 This is why the decision was taken in commitments on costed objectives, define their own science-based target 2019 to manage the monthly percentage the results of the analysis of our action plan for reducing their CO2 emissions 8.7 KG CO2e IN 2019, 8.6 KG CO2e 2016 of eco-designed products sold, in order plans and the means deployed to achieve by 2024. As of 31/12/2019, 827 to motivate the internal teams (Signed 6.6% these objectives and tackle the climate companies worldwide have made the Sports & industrial processes, financial challenge. same commitment as Decathlon to the teams). The Science-Based Target expert SBT initiative, and 340 have a validated KEY POINTS FOR 2019 Currently, all the resources, action plans and commitments suggest that committee has validated these objectives. For Decathlon’s scopes 1 & 2, objective. INCREASE IN GLOBAL EMISSIONS conditions are in place for improving the For the first time, Decathlon also i.e. carbon emissions directly associated responded to the CDP non-govern- 10,532,129 T CO2e IN 2018, > THE PLAN TO IMPROVE OUR CARBON FOOTPRINT, carbon performance in the medium term. with the company’s activities and mental organisation5 “climate change” 11,226,200 T CO2e IN 2019 WHICH INCLUDES ALL OF OUR ACTION PLANS BASED To build this new low-carbon economy indirectly associated with the company’s questionnaire, which aims to assess the ON OUR ECONOMIC PROSPECTS, HAS BEEN VALIDATED and the business model that will sustain energy consumption, Decathlon is 12% transparency of the initiatives taken by BY THE SBT INITIATIVE. Decathlon is committed to reducing it, the companies must change more aiming to reduce its total CO2 emissions companies to reduce their greenhouse its total CO2 emissions by 75% on the scopes 1 and 2, by 2026. quickly and be more efficient than ever by 75% by 2026. gas emissions. Decathlon received an before. In 2019, Decathlon reduced its GHG emissions on this perimeter “A-” grade6, which means that the action by 12%, compared to 2016. plan is ambitious and transparent, but FEWER GHG EMISSIONS that the results are not yet significant. ON OUR SCOPES 1 AND 2 > ON OUR SCOPE 3, WE ARE ROLLING OUT AN AMBITIOUS PLAN TO REDUCE OUR EMISSIONS AT OUR PARTNER AND 2019 VS 2016 STRATEGIC SUPPLIERS’ SITES, by helping them to define their own science-based target trajectory for reducing BREAKDOWN OF OUR BREAKDOWN OF OUR GHG EMISSIONS BY SCOPE GHG EMISSIONS BY ACTIVITY PRODUCT CO2 emissions by 2024. USE TONS OF CO2 EQ. IN % 7% DPEF2019 CHALLENGES AND STR ATEGIES OUR OVERALL OBJECTIVE > WE ARE SUPPORTING OUR GOALS WITH EXTERNAL ___ SITE CONSTRUCTION INITIATIVES, which we use to share our best practices SCOPE 1 26,894 T. CO2 EQ. 40% AND OPERATIONS and take collective action. PRODUCT MANUFACTURING 3% > WE ARE MAINTAINING OUR SUPPORT FOR THE LOCAL SCOPE 2 (Market-Based Method2) 141, 026 T. CO2 EQ. 46% TEAMMATE AND CUSTOMER NETWORK, so that each player can appropriate their own GHG TRAVEL LESS CARBON INTENSITY emission measurement and define the best action plans for SCOPE 3 11, 058,280 T. CO2 EQ. 16% reducing the carbon footprint of their activity. PER PRODUCT SOLD PRODUCT SCOPE 1: direct emissions. SCOPE 2: indirect emissions from energetical consumptions. SCOPE 3: other indirects emissions (Supply, transport, use, RAW MATERIALS EXTRACTION TRANSPORT 4% BETWEEN 2016 AND 2026 19% END OF SERVICE end-of-life...). LIFE FOR PRODUCTS 5% ___ ___ 1. IPCC: Intergovernmental Panel on Climate Change. 2. The scope 2 result (Market-Based Method) is in the KPIs board in this report. - 3. Greenhouse gases = GHG 22 4. SBT: Science Based Target - 5. CDP: Carbon Disclosure Project: https://www.cdp.net/fr/ - 6. The scores range from D to A, A being the best score. 23 7. The climate positive concept is being defined with external companies and NGOs: http://www.netzero-initiative.com/
CHALLENGES AND STRATEGIES PEOPLE AND MANAGEMENT PRODUCTS AND SERVICES RESPONSIBILITY IN PRODUCTION STORES AND TRANSPORT INDICATORS AND METHODOLOGY 3 FOCUS A NETWORK OF LOCAL Finally, the design teams for the Signed Sports and industrial processes have an LEADERS EQUIPPED WHY SHOULD THE CHANGE eco-design module which supports them WITH DEDICATED in calculating the life cycle analyses of 4 IN CARBON INTENSITY TOOLS TO DRIVE the components and final products. The NETWORKING WITH BE MONITORED RATHER dedicated teams have also had access to PERFORMANCE EXTERNAL PARTNERS THAN THE GLOBAL VOLUME analysis tools and training since 2018, in OF GHG EMISSIONS? In 2019, the international network was order to easily extract the environmental IN ORDER TO COMBINE made up of 136 sustainable development impacts at different levels. After several years’ experience in carbon leaders, including 35 country leaders10, OUR STRENGTHS accounting for the entire footprint of All of these tools provide a comprehensive 64 Signed Sports leaders and 37 In order to situate Decathlon’s actions Decathlon, the kg CO2e/product sold overview of Decathlon’s impacts: by industrial process leaders. within the global effort needed to achieve indicator turns out to be the one that country, by product family and by Signed These local players are responsible for the objective of limiting climate change, has the most meaning for the company, Sport. 75% of the Signed Sports products defining the impact reduction strategy the company has joined forces with whose goal is to make the pleasures and have an estimated environmental impact. and the associated local action plans. several initiatives to act collectively and benefits of sport accessible to as many Consequently, the impact of our have the biggest possible impact. people as possible in the long-term. products, sites (stores and warehouses) KEY FIGURES Joining the UNFCCC initiative11 : This indicator focuses on the changes and around 280 suppliers is today DECATHLON has signed the Fashion rather than a particular figure in order to AS OF 31/12/2019 measured locally. Industry Charter for Climate Action. Under reflect the daily efforts made to reduce ___ The energy supply of our suppliers: The objective is to eco-design all new The impact of sites and transportation the aegis of the UN Climate Change, the impact of the company’s activities. Decathlon is supporting its partner products by 2021, in order to reach this commitment brings together the However, it is still important to continue includes the following: the movements NEARLY 1,460 and strategic suppliers in managing 100% eco-designed products by 2026. of teammates and customers, energy signatories and organisations to act monitoring the total emissions curve. the energy transition through a network collectively in the fight against global Product transportation: The strategies consumed, product transportation, waste The reference year is 2016, which was of CO2 advisers. The network was set to reduce CO2 emissions associated production, building construction, pur- warming. when the main Decathlon commitments up to assist the suppliers of Decathlon with transportation include initiatives chasing consumables, and air conditioning SITES In practical terms, taking part in working were made. This reference base means products in monitoring their energy on haulage transport (lorries and barge leaks. groups can help define the tools and that the analysis is not solely focused consumption and in their action plans; STORES AND WAREHOUSES transportation) and distribution (from 279 In recent years, training courses, select the most suitable methods for on annual performance, given that the the work is based on action plans aimed warehouses), which have dropped by speeding up the reduction of the impacts tutorials and the quarterly reporting results of certain actions can only be at reducing greenhouse gas emissions, 4% and 7% respectively. The strategy of with our suppliers, given that several of environmental data have made it perceived in the medium term and require a longer period of analysis (particularly following a trajectory validated by the SBT. The supplier training and teaching reducing air transport has resulted in no possible to monitor results site by site. AND clients are asking them to make the further increase in the utilisation of this same efforts. for actions related to the design of our initiatives were deployed throughout transport mode. However, the proportion Since 2018, the programme to reduce PRODUCTION SITES products). 2019. local environmental impacts on Committing with the signatories of of our transported products is on the ARE TRACKED IN the Fashion Pact : Launched in August suppliers’ sites has gone hand-in-hand 2 The eco-design of the Signed Sports rise, which has dented the effectiveness of this strategy with an 11% increase in with monitoring their CO2 emissions, THE EMISSIONS 2019 during the G7 meeting in Biarritz, WHAT ARE OUR products to reduce impact through using the software that we make CALCULATION TOOL the Fashion Pact aims to bring together the different stages of the life cycle. the CO2e/product sold. players in the fashion and textile sectors HIGH-PRIORITY available to them (see p. 83). Decathlon is continuing its environmental Actions on waste and the end-of-life to define common objectives around STRATEGIES? assessment work, with 75% of its of products are also being deployed the following three issues: climate, Energy supply: by integrating the products assessed by the end of 2019. and managed at the local level. As a biodiversity and the oceans. RE100 initiative8 , Decathlon has The historical data are re-evaluated, result, 39% of store waste and 63% of Validation of our SBT trajectory has committed to sourcing all of its based on the added databases, warehouse waste was sorted in 2019. meant we have also been able to join electricity from renewable sources particularly thanks to work done in All in all, every initiative has been the call to action launched by the United by 2026. In 2019 58.9% ofelectricity collaboration with ADEME9. The impact implemented and will gradually be Nations and participate in the #Our Only consumed came from renewable of products is a key component of the rolled out to more countries. The carbon Future awareness campaign, which aims sources, which means we reduced the overall carbon footprint. Reducing this performance of 2019, which represents to build awareness among businesses CO2 emissions of the electricity used on impact will be linked to the percentage an increase of 1.2% in our carbon about their share of the responsibility to our sites by 4% between 2016 and 2019 of eco-designed products available in intensity per product sold compared limit the rise in global temperatures to (see p. 96). the range of Signed Sports products to 2016, is linked to the time taken to 1.5°C above pre-industrial levels. developed by the Signed Sports teams implement strategic actions (e.g. a In 2019, we are backing up this effort in two on the one hand, and the efforts of our period of approximately 24 months is ways: by reducing energy consumption sales assistants in store to accelerate necessary between a product being at our sites (5% kWh/m² decrease in our user demand for these products. designed and being available for sale). stores and 8% kWh/m² decrease in our DPEF2019 CHALLENGES AND STR ATEGIES warehouses), thanks to the relamping In-store training, supported by the recent We have observed a 12% decrease in operations in particular (see p. 86); and by monitoring of sustainable turnover, are GHG emissions on our scopes 1 and 2 increasing the consumption of electricity practical initiatives designed to boost (between 2016 and 2019), which is an from renewable sources, thanks to the these sales, with the transformation encouraging sign of the effectiveness of massive commitment of new countries of the business model being geared our action plans on our direct emissions. such as India and Germany. By the end of towards making second-life products 2019, 100% of the power consumption more easily accessible (see p. 61). of Belgium, France, Spain, the United Kingdom and India was from renewable sources, with Italy at 97%, Germany at 85% and the Netherlands at 84%. ___ ___ 8. http://there100.org/ 10. Countries concerned: see our organisation, page 21 24 9. ADEME: French energy agency website: https://www.ademe.fr/ 11. UNFCCC: United Nations Framework Convention on Climate Change 25
CHALLENGES AND STRATEGIES PEOPLE AND MANAGEMENT PRODUCTS AND SERVICES RESPONSIBILITY IN PRODUCTION STORES AND TRANSPORT INDICATORS AND METHODOLOGY PUTTING PEOPLE AT PEOPLE AND THE HEART OF OUR GROWTH MANAGEMENT As part of its commitment to deploying a social and human resources policy that is in keeping with its core values, Decathlon believes that teammates who are happy in their jobs contribute to its long-term performance. This is why quality of life at work2 has become an essential and integral part of the company’s concerns. In order to encourage measures that improve working conditions as well as the overall performance of the company, Decathlon provides tools and creates a work environment in PEOPLE which employees can express themselves and act freely. AT DECATHLON Well-being at work is a powerful means of fostering a strong commitment and a spirit of enterprise that drives social IN FIGURES innovation. A direct result of the latter is the creation of value AS OF 31/12/2019 ___ within a business. In 2019, 54% of teammates stated that they were happy in their job (total of “yes, strongly agree”). This indicator, which is the cornerstone of Decathlon’s human On the other hand, were projects aimed at getting people on the 54% resources policy, is measured using an annual in-house survey. job market, creating greater diversity in the teams, promoting Teams can use this to assess themselves and set up action intergenerational cooperation and having many positive plans to promote happiness at work. repercussions including the performance and fulfilment of 2019 was marked by the restatement of commitments on every employee at Decathlon. various topics related to the Quality of Life at Work (“QLW”) OF TEAMMATES in France. On the one hand, there were initiatives promoting ARE HAPPY diversity, whether these were in the area of gender equality and PEOPLE AT DECATHLON the prevention of sexism or on topics related to people with IN FIGURES IN THEIR JOBS1 disabilities. AS OF 31/12/2019 ___ 74.3% OF TEAMMATES IN KEY POINTS FOR 2019 3.8% OF TEAMMATES THE TOTAL WORKFORCE 1. DECATHLON RAMPED UP ITS CAMPAIGN ARE DISABLED AGAINST SEXISM AND CONTINUED TO RAISE AWARENESS WERE ON PERMANENT AMONG TEAMMATES ABOUT THE MULTIPLE BENEFITS (ITALY SCOPE) CONTRACTS 65.5% OF DIVERSITY WITHIN THE TEAMS. WORLDWIDE 2. DECATHLON’S MISSION HANDICAP DIVISION AT THE END OF 2019 CELEBRATED 20 YEARS OF DEDICATION TO ITS CAUSE AND HIGHLIGHTED INITIATIVES IN FAVOUR OF TEAMMATES ARE DPEF2019 PEOPLE AND MANAGEMENT OF RECRUITMENT AND JOB RETENTION. UNDER 29 YEARS OLD 0.84% 3. DECATHLON CONTINUED THE PROJECT CALLED “Y A PAS D’AGE” (THERE’S NO AGE LIMIT) ENCOURAGING THE TRANSFER OF SKILLS FROM OLDER EMPLOYEES. ARE OVER 55 YEARS OLD THROUGHOUT THE WORLD ___ 1. Result of the “Decathlon Team Barometer” survey of Decathlon teammates at the end of 2019, to which 67,575 teammates responded. Percentage of people who answered “yes, strongly agree”. 26 2. Quality of Life at Work encompasses the following areas: disability; intergenerationality; equal opportunities in the workplace; occupational well-being; psychosocial risks; as well as getting people 27 (back) into employment.
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