Promoting sustainable fishing - and aquaculture - Carrefour Group
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Promoting sustainable fishing and aquaculture Promoting sustainable fishing and aquaculture Our__ aim Carrefour introduced its responsible fishing range in 2005. The Group set itself the target of having 50% of all of the fish that it sells under its Carrefour brand (and under national brands at the traditional fish counter) coming from sustainable fishing practices by the end of 2020. With this in mind, Carrefour works closely with its producers and other players in the sector on the following points: favouring the more abundant species, products certified by MSC as being from sustainable sources and fishing techniques having the least impact on ecosystems. Carrefour also suspends sales of endangered species; supporting the development of responsible aquaculture(1) by promoting best practices (limiting the use of non-responsible industrial fishing, banning antibiotics, GMO-free feed, for example) and placing greater emphasis on ASC-certified or organic-certified products; supporting local sustainable fishing through local partnerships; giving in-store prominence to a broad range of responsibly sourced seafood products; promoting the fight against illegal fishing. Carrefour is committed to supporting its partners in this area. The Group’s action plan here benefits from regular input from international NGOs, scientific committees and fishery organisations on biodiversity issues and seafood products. Overfishing is a global problem requiring local responses. Solutions to protect resources must be adapted to each fishing area and put into practice jointly with local stakeholders. The approach is therefore being phased in progressively together with country-by-country initiatives. In order to ensure a responsible supply of seafood and aquaculture products, the Group uses the following tools: the Carrefour Quality Lines, selected lines that are traceable back to the boat or farm; the Aquaculture Stewardship Council (ASC) label for responsible aquaculture, which guarantees respect for the environment, ensures animal well-being and monitors working conditions; the Marine Stewardship Council (MSC) label for sustainable fishing, which guarantees the commitment of fishermen, abstaining from overfishing and ensuring respect for the marine environment; the Bio label, which identifies products from environmentally friendly farms; fishing techniques that do not harm the planet’s biodiversity and which ensure that other species (such as dolphins and turtles) are not caught accidentally as well. Such techniques include cane fishing and ones that do not involve aggregating devices; fishery products that have implemented a robust local improvement project (or FIP: Fisheries Improvement Project(2)) (except tuna for which the FIPs are not considered enough for a sustainability logo). (1)Rearing fish and seafood products for commercial purposes. This method is in addition to the various fishing methods and is used to produce marine products that meet consumer demand without the resources being overexploited. (2)Multi-stakeholder initiatives that aim to help fisheries evolve towards sustainable modes of operation. 2020 CSR REPORT - June 2021. Verif ied information for the year 2020. 1
Promoting sustainable fishing and aquaculture Our objectives and performancee __ 50% 50% Our 2020 goal: Our new goal: of fish sold under the Carrefour brand of all of the fish sold under the Carrefour brand (and for national brands in the traditional and under national brands to come from section) will come from sustainable sustainable fishing practices by the end fishing by the end of 2020. of 2025(3). PERCENTAGE OF SALES INCLUDING VAT OF OWN-BRAND PRODUCTS DERIVED FROM SUSTAINABLE FISHING PRACTICES 50% CSR OOD AN F ION D -3.7% SIT TRAN X INDE 47.5% 43.8% 28.1% 2018 2019 2020 End of 2020 The target of selling 50% of Carrefour branded fish from responsible fishing by the end of 2020 is not achieved, with a Group total of around 43.8% of responsible products (Carrefour brands and national brands for fresh products). A slight decrease is observed in 2020 following the extension of the geographical scope of application compared to 2019. Following this result, Carrefour is strengthening its action plans and setting a more ambitious target, extending the approach to all national brand products (fresh and convenience products) : to achieve 50% responsible fishing for Carrefour-branded and national and national brand products by 2025. Change Target KPI 2018 2019 2020 (2018/2019) percentage of sales including VAT of 50% by own-brand products derived from 28,1 47,5 43.8 3.7 % end of sustainable fishing practices(1) 2020 percentage of sales including VAT 50% by of own-brand and national-brand 31 31 33 2% end of products derived from sustainable 2020 fishing practices(1) Total sales of Bio, MSC or ASC certified fishing products 339 403 602 49 % - (in millions of euros)(2) (1) Scope: Non-comparable BUs (96.7% of 2020 consolidated sales excl. VAT vs 93.6% of 2019 consolidated sales excl. VAT). Excluding Romania, Argentina, Taiwan and Poland that were included in 2020. Sustainable fish sales comprise fish certified as organic, MSC, ASC or from Carrefour Quality Lines, as well as fish sold under other responsible programmes. This ratio includes: – sales of products audited for all sections of products derived from fishing or aquaculture, – sales of national brand products for the fresh fish section only. (2) Scope: Comparable BUs. Excl. RO (96.7% of 2019 consolidated sales excl. VAT). (3) Scope: unprocessed and relatively unprocessed aquatic animal products – - excluding for out-of-home catering 2020 CSR REPORT - June 2021. Verif ied information for the year 2020. 2
Promoting sustainable fishing and aquaculture TOTAL SALES - RESPONSIBLE FISHING/FARMING CONTROLLED PRODUCTS (INCL.SEAFOOD COUNTER - WITHOUT NAMES) (IN €M)(1) 620 Total sales - other responsible 72 fishing initiatives - controlled products (incl. seafood counter - 566 without names) 500 70 258 Total sales - CQL fish/livestock products 68 58 Total sales - Organic fishing/ 205 livestock - controlled products 178 (incl. seafood counter - without 143 46 names) 36 76 Total sales - ASC - controlled 66 products (incl. seafood counter - 245 without names) 151 170 Total sales - MSC - controlled products (incl. seafood counter - 2018 2019 2020 without names) (1) Scope: Non-comparable BUs (93.6% of 2019 consolidated sales excl. VAT vs 87.7% of 2018 consolidated sales excl. VAT). Excl. RO, PL. Sustainable fish sales comprise fish certified as organic, MSC, ASC or from Carrefour Quality Lines, as well as fish sold under other responsible programmes. This ratio includes: – sales of products audited for all sections of products derived from fishing or aquaculture, – national brand products for the fresh fish section only. 2020 CSR REPORT - June 2021. Verif ied information for the year 2020. 3
Promoting sustainable fishing and aquaculture Our action __ plans Deploying Carrefour Quality Lines In order to guarantee an ever more responsible supply of fish and aquaculture products, the Carrefour Group is supported by the development of its Carrefour Quality Lines (CQLs) – products which are selected and then tracked right up to the vessel and/or the breeding basin. A fully- fledged agro-ecological laboratory, these product lines adhere to more stringent specifications in partnership with suppliers. Below is the list of CQL fishery products currently sold across the Group: Spain: Vannamei Prawn, meagre, bass, sea bream, octopus, bonito, Atlantic cod, trout France: ASC-certified Norwegian salmon, MSC-certified cod, ASC-certified Madagascar prawn, ASC-certified Ecuador prawns, fine fattened oysters / Marennes-Oleron IGP oysters, Brittany / Cancale / East or West Normandy / Bouzigues oysters, flat oysters, STG Bouchot mussels, PDO Bouchot mussels from the Bay of Mont-St-Michel, Rope-grown mussels, Rope bass and seam bream, Corsica Label Rouge meagre, trout, MSC-certified whelk, St Brieux scallops, Normandy Label Rouge scallops, crab. Belgium: Smoked omega bass, Vannamei prawn. Italy: Smoked salmon, Vannamei prawn Argentina: Patagonian wild prawn. Brazil: Tilapia Poland: Vannamei prawn Romania: Vannamei prawn Taiwan: Milk Fish Suspending sales of endangered species Since 2007, Carrefour has been phasing out sales of endangered species. In France, for example, several endangered species have now been removed from the counters. These include emperor, blue ling, shark (except dogfish), sturgeon, forkbeard, pomegranate, grenadier, sabre fish, tusk, eel, red sea bream and skate. In 2018, fishing for bass was suspended during spawning season. Fishing practices with lower environmental impact Carrefour favours applying the principle of precaution with regard to electric fishing. In 2020, Carrefour France confirmed its commitment to not selling species fished electrically. This method has serious consequences on fish stocks and leads to difficulties reproducing, as well as some of the overfishing which endangers the survival of certain species. All Carrefour France suppliers have therefore confirmed their compliance with this exclusion for all fish sold in the fresh fish section and for Carrefour-brand frozen fish. Carrefour France sells several types of tinned tuna caught using alternative methods, such as line fishing or methods that do not involve aggregating devices; these selective fishing techniques have a lower impact and constitute a more responsible alternative for consumers. Furthermore, the introduction of an «Exceptional product» approach has helped promote more artisan forms of fishing, identifying products that are derived from small-scale coastal fishing practices that are in compliance with certain specifications (type of vessel, duration of fishing operation and product freshness). Sales for this segment have been growing strongly since 2018. 2020 CSR REPORT - June 2021. Verif ied information for the year 2020. 4
Promoting sustainable fishing and aquaculture CASE STUDIES: Sustainable fishing in France and Italy FRANCE: customers in France can choose from a wide range of sustainably sourced seafood products in stores: a t the frozen counter, all Carrefour wild cod and hake is MSC-certified; in 2020, 15% of sales of frozen counter products were for MSC-certified products; in the canned fish section, specifications for Carrefour’s own-brand canned tuna stipulate fishing techniques and methods that have a lower impact on the ecosystem;(4) a t the fresh fish counter, a responsible fishing and livestock farming initiative was deployed across all hypermarkets and supermarkets with a traditional counter before 2020. These stores sell exclusively MSC-certified cod and ASC- certified Carrefour Quality Line Norwegian salmon at their fish counters, reared without GMOs (
Promoting sustainable fishing and aquaculture CASE STUDY: More environmentally friendly Carrefour Quality Line trout in partnership with Bleu-Blanc-Coeur As part of its ongoing drive to improve the specifications of its CQL products, Carrefour has been working with an Ardèche producer, a food supplier and the Bleu-Blanc-Coeur association to sell CQL trout that have been fed on food that combines reduced environmental impact and increased nutritional value. In order to promote the sustainability of natural resources, encourage the diversity of the ingredients making up the trout’s diet and guarantee the nutritional quality of the filets, Bleu-Blanc-Coeur is taking action to improve the diet of trout. This involves increasing the diversity of plants, legumes and seeds which are rich in nutrients such as flax or beans. In addition, the share of industrial fishing normally used has been reduced and imported soybeans, the main cause of deforestation worldwide, have been eliminated. SPONSORSHIP FOCUS: The Carrefour Foundation supports the PELA-Méd programme Since 2019, the Carrefour Foundation has been a partner of Planète Mer, an association founded in 2007, which strives for a sustainable balance between the marine world and human activity. The association spearheads numerous initiatives and is now joining forces with the fishermen of the Var region in France to launch the PELA-Méd programme: Fishermen committed to the future of the Mediterranean. This project shines a spotlight on small-scale fishing. Its aim: help fishermen in the Var region to co-manage fishery resources, improve their knowledge of key species such as urchins and rock mullet for example, and step up the fight against poaching, which is a priority. Planète Mer, in partnership with the Var Departmental Committee for Fisheries and Marine Livestock (CDPMEM-Var), is supported by the prud’homies’ des pêcheurs, a long established industrial tribunal made up of fishermen who structure their fishing activities across the region. 11 members of the tribunal from the region make up the project’s steering committee. Supported by scientists, managers of protected areas, government marine services, local authorities and representatives of Planète Mer, the 11 members will help develop a co-management plan to determine and enforce a sustainable level of exploitation for fish stocks. PELA-Méd is designed as a “pilot” project to be extended and replicated across other coastal regions in the future, the aim being to introduce fishing techniques that do not damage fish stocks or interfere with people’s practices. More responsible aquaculture Carrefour works closely with its producers and the industry’s stakeholders to develop more responsible forms of aquaculture by using farms with good practices. As such, Carrefour: prohibits the presence of ingredients derived from illegal, unreported or unregulated fishing in all its Carrefour branded products, prohibits the presence of GMOs in its Carrefour Quality Line products, is reducing or even phasing out the use of antibiotic treatments with its Carrefour Quality Line products, is actively looking at how farmed fish are fed. Actions are being implemented to reduce the share of farmed fish feed produced using industrial fishing techniques(5), which accounts for nearly 20% of the world’s wild marine catch, and is replacing it with fish trade by-products(6). (5)Intensive industrial fishing intended to feed the industrial lines with small fish of low commercial value, which will be transformed into fishmeal and fish oils for animal feed in aquaculture, livestock farming, etc. (6)In most cases, this involves, after the wholesale purchase of seafood, transforming the fish and other crustaceans so as to sell a processed finished product 2020 CSR REPORT - June 2021. Verif ied information for the year 2020. 6
Promoting sustainable fishing and aquaculture Nowadays, there are many steps involved in transforming this food: Trials with partner suppliers (CQL salmon) are under way to reduce the share of marine feed derived from industrial fishing, and also to replace some of the fish oils with algae oils or incorporate insects into them. Trials are also under way in France (on the CQL trout line) in order to reduce the use of industrial fishing practices and to remove palm oil and imported soymeal from the ingredients used to make the aquaculture feed. Furthermore, promoting sales of shellfish helps to reduce the impact on marine resources – no exogenous food is given to the shellfish, which feed exclusively on phytoplankton in the natural environment. Vigilance on practices along our supply chain Carrefour conducts compliance audits on the premises of its direct suppliers and requires the same level of vigilance from them in relation to their own suppliers. These audits are conducted in accordance with strict standards (ICS and BSCI) and include major human rights themes. We therefore make sure that no forced labour or child labour are used, that there are no forms of harassment or discrimination, and that people work decent hours. These are all checked by auditing our suppliers on a regular basis and then following up on these audits. Auditing is not an end in itself, but rather a tool that opens up dialogue and enables a compliance plan to be implemented so as to bring the supplier’s working practices into line with the requirements. The European Union’s regulation to end illegal, unreported, and unregulated (INN) fishing requires “third-party countries” (those outside the European Union) exporting fish to the EU or lending their flags to vessels that import into the EU to comply with strict fishery management standards. If these standards are not met, countries can be “carded”, which means that they could eventually be excluded from the EU market. In order to combat illegal practices, Carrefour prohibits the use of boats belonging to countries which have received yellow or red cards from the EU. FOCUS ON TRACEABILITY: Applying blockchain technology to Carrefour Quality Line salmon Carrefour propose à ses clients depuis le 21 janvier 2020, de découvrir l’ensemble de Since 21 January 2020, Carrefour customers have been able to use blockchain technology to find out everything about Carrefour Quality Line Norwegian fresh salmon production. This currently applies to 140 g skinned salmon steaks (available in packs of two or four), as well as to salmon fillet hearts, the aim being to roll the technology out to all fresh Carrefour Quality Line salmon. This Carrefour Quality Line product is underpinned by the expertise of producer Leroy, which tracks the salmon from the egg right up to the finished product, and is in line with a responsible approach, bolstered by ASC (Aquaculture Stewardship Council) certification. Thanks to this close collaboration with Leroy, Carrefour is expanding its range of seafood products that use blockchain technology, launching it on one of its flagship fresh fish products – fresh Carrefour Quality Line salmon. Blockchain technology guarantees consumers complete product traceability. Consumers can scan a QR code on the label with their smartphones and then access an interface which will give them a wealth of information about the route that the product has taken – from where it was farmed right up to when it was placed on the store shelves. Consumers can, for example, view GPS coordinates to find out where it was farmed and learn about the type of aquaculture in which Leroy engages. They can also use blockchain technology to identify the various stakeholders involved in the whole product line and find out about their livestock rearing practices and the quality control practices in use along the entire length of the production process. This technology has already been used to enable full traceability of other product categories such as eggs, oranges and fresh milk. It is now being deployed with our two other salmon producers. 2020 CSR REPORT - June 2021. Verif ied information for the year 2020. 7
Promoting sustainable fishing and aquaculture FOCUS ON COVID-19: Carrefour is standing alongside fishermen to support them during the health crisis FRANCE: During the current COVID-19 pandemic and in line with Alexandre Bompard’s desire to help and support SMEs, Carrefour is taking action to support the French fishing industry. As prices collapse, Carrefour is committing to purchasing certain volumes at certain prices, so that the fishing industry can continue to function, and fishermen can be guaranteed pre-pandemic prices. The Carrefour group is standing alongside several players in the seafood industry, including the Océalliance group, France’s leading seafood industry player. It is supporting French fishing by guaranteeing volumes and purchase prices for around ten major species, including mackerel, sardines, ling and whiting. Half of the output of the fisheries sector usually goes to catering businesses and their closure is having a significant impact. Carrefour is keen to provide its support and give visibility to this sector, which is vital to the French agri-food industry. ESPAGNE : In December 2020, a preliminary agreement was signed with the Spanish fishing industry. The aim of this partnership is to eliminate the uncertainty associated with auction prices by guaranteeing fishermen prices that will allow their fleet to continue to operate. At the same time, this type of purchase commitment means that we can sell products at stable prices for our customers. This preliminary agreement was signed with the Santona association in Cantabria in order to sell mackerel caught in this port. This commitment reflects Carrefour’s willingness to support the fishing sector, which has been hit hard by the Covid-19 crisis. It is the first in a series of 12 agreements, which will be signed throughout 2021. 2020 CSR REPORT - June 2021. Verif ied information for the year 2020. 8
Promoting sustainable fishing and aquaculture Our organization __ GOVERNANCE A risk and supply committee was set up in 2018. It analyses the risks arising from Carrefour’s sourcing practices and devises strategies for dealing with them, including a strategy for protecting marine resources. It draws up and circulates the Group’s purchasing rules. It reports to the Group Secretary General. This committee brings together the following departments: audit & risk, CSR, own-brand, merchandise, fresh produce, legal affairs, quality. The procurement rules are defined in a cross-category manner by the Group and disseminated for application in all countries. The various departments represented on the risk and procurement committee are responsible for enforcing the rules in force in the countries in which the Carrefour Group operates. The sustainable fishing policy performance indicators are incorporated into the CSR and Transition Index. This index is given a 25% weighting as a criterion in a long-term executive compensation plan and a 20% weighting in compensation for the Chairman and Chief Executive Officer. PERIMETER The “Sustainable Fisheries” policy and the purchasing rules apply to all purchases of raw or minimally processed products containing at least 50% aquatic products (wild or farmed), Carrefour brand products (fresh, frozen and tin counter) or products sold under any other brand (only for fish counter). COLLABORATIONS AND RESPONSIBLE LOBBYING ACTIVITIES To learn more about our tuna-specific policy, please refer to our Tuna Policy, found in Act 5 of Act For Food: https://www.carrefour.com/fr/groupe/la-transition-alimentaire/acte-5-peche- aquaculture-responsables. WWF : The World Wildlife Fund (WWF) is one of the world’s first independent environmental organisations working to end damage to the environment and build a future where humans can live in harmony with nature. WWF has been one of Carrefour’s partners since 1998 and supports it with • conducting regular assessments of species at risk, • developing fishery improvement projects (FIPs) • developing and evolving the Group’s fishing policies ISSF : In 2009, leading scientists and the tuna industry launched the International Seafood Sustainability Foundation (ISSF) based on shared concerns about the future of global tuna fisheries. The ISSF cooperates with regional fishery management organisations (RFMOs). As the majority of Carrefour tuna suppliers are members of this foundation, our internal tuna policy is based on the ISSF’s recommendations. We therefore follow their scientific advice for assessing stocks, managing transshipments, and training captains on conserving marine resources (managing by-catch and fish aggregation systems). In addition, we use their ProActive Vessel Register (PVR) list to select the boats for our supplies. 2020 CSR REPORT - June 2021. Verif ied information for the year 2020. 9
Promoting sustainable fishing and aquaculture Marine Stewardship Council (MSC): The Marine Stewardship Council (MSC) is an international non-profit NGO that fights overfishing through a certification programme and an MSC label, giving consumers the option to choose to purchase products derived from responsible fishing initiatives. Gauging the sustainability of a fishery in accordance with MSC criteria involves looking at three key areas: the sustainability of fish stocks, minimising the environmental impact and efficiently managing the fishery. Fisheries meeting these broad criteria are therefore awarded the certification. Carrefour has joined the MSC Stakeholder Advisory Council (STAC), which advises the organisation’s Board of Directors on matters including procedures for verifying compliance with label requirements. Carrefour’s aim here is to help improve the label’s relevance by aligning it as closely as possible with consumer expectations. ASC : The Aquaculture Stewardship Council (ASC) is an international non-profit organisation that establishes a protocol on farmed seafood while ensuring sustainable aquaculture. The ASC’s mission is to help aquaculture develop such that it involves more environmentally friendly and socially responsible practices. ASC certification thus implies compliance with several criteria: • Preservation of the natural environment and biodiversity. • Sustainable water and effluent management • Preserving the diversity of wild species and populations (for example, preventing escapes that could pose a threat to wild fish). • Responsible management of animal feeds • Animal health control (no unnecessary use of antibiotics and chemicals). • Respect for local populations and social responsibility Fishing 2020 CSR REPORT - June 2021. Verif ied information for the year 2020. 10
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