SUMMARY SUSTAINABILITY - VITALITY AND RESPONSIBILITY
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2017 ESSENTIALS CHALLENGES AND STRATEGIES EDITORIAL 5 OUR SUSTAINABLE DEVELOPMENT CHALLENGES 6 OUR SUSTAINABLE DEVELOPMENT AMBITIONS 2015-2019 8 OUR CLIMATE COMMITMENT 10 PEOPLE AND MANAGEMENT PUTTING PEOPLE AT THE HEART OF OUR GROWTH 12 READY FOR RESPONSIBILITY AND FREEDOM 13 DEVELOPING SKILLS AND UNCOVERING TALENT 14 DELIVERING HEALTH AND SAFETY 15 ATTRACTING, REWARDING AND MOTIVATING TEAMMATES 16 DECATHLON FOUNDATION: ACCESS TO EMPLOYMENT THROUGH SPORT 17 PRODUCTS AND SERVICES DELIVERING INNOVATION AT EVERY LEVEL 18 EXPANDING ECO-DESIGN FOR OUR PRODUCTS 19 OFFERING PRACTICAL AND ECO-FRIENDLY SERVICES 20 CREATING SAFE, HIGH-QUALITY PRODUCTS 21 RESPONSIBILITY IN PRODUCTION MAINTAINING LONG-TERM RELATIONSHIPS 22 PUTTING PEOPLE FIRST 24 ROLLING OUT ENVIRONMENTAL MANAGEMENT 26 STORES AND TRANSPORT ECO-DEVELOPING OUR GLOBAL NETWORK 27 SUPPORTING LOCAL COOPERATION 28 OPTIMISING OUR ENERGY AND WASTE MANAGEMENT 29 TRANSPORTING OUR PRODUCTS AND ENCOURAGING ECO-MOBILITY 30 CONTENTS 3
2017 ESSENTIALS CHALLENGES AND STRATEGIES EDITORIAL "Global warming is not happening to us, it is happening for us. It’s a gift. Every system without feedback dies. This is feedback. It’s an offering to re-imagine who we are, what we can create with our minds, our hearts and our brilliance." Paul Hawken In 2017, the world came together to recognise the urgency of implementing more sustainable consumption and development models. November 2017 saw 15,000 scientists, for the second time in history, issue a call to action in the face of the catastrophic destruction of our environment. The strong signals and commitments made as part of the transition to a low-carbon economy, the acceleration of digital transformations, the challenge posed by migration, and the rise in social inequality tell us that we must choose our path wisely. Our company is already on the right path. Several years ago, we launched major projects within our 82,171 52% of our teammates organisation to meet these new challenges and confidently face what comes next while staying true to our values of Vitality and Responsibility. Vitality evokes our spirit, our strong convictions and our spontaneity, our willingness to take risks and learn from our mistakes. Responsibility evokes our desire to teammates across the world enjoy coming to work every day1 be practical and straightforward, encouraging each of us to make the right choices. In 2016 we worked together to develop our 10-year corporate vision, and in 2017 we implemented that vision and the actions that would make it a reality, with a focus on our vital and responsible “Preserve to 10 countries openings in 2017 Protect” pillar. €11billion (excl. VAT) For our Vision 2026 roll-out, we are launching a thoroughgoing transformation of our human and 2017 turnover South Africa, Australia, Colombia, United States, Ghana, managerial resources and encouraging bold thinking thanks to an organisation built around individual Israel, Indonesia, Philippines, Switzerland, Tunisia. roles. These commitments have helped us channel our efforts into a clearly defined plan, in which each person has a role to play in protecting our human values and preserving our environment throughout the world. Thanks to this spirit of responsibility and our employees’ active involvement in driving company growth, 52% of the company workforce "absolutely" enjoys coming to work each morning and advancing 1,352 Decathlon’s goals. 58 warehouses The Decathlon teams in France, China and Italy have been especially successful in adapting their sustainable development strategies to their unique challenges. Hundreds of new local projects have stores worldwide taken shape as part of these action plans. We have developed a vast array of initiatives to help share our 185 more than in 2016 and logistics platforms worldwide expertise and best practices with our teammates and our outside partners. Our Sustainable Development in Production Managers work with our production suppliers every day to ensure that they comply with our new Code of Conduct, which lays out our health, safety, labour law and environmental protection requirements, and to make sure that our products are manufactured in 58.2% of teammates accordance with these specifications. 69 Signed Sports At the same time, our teams are honing our eco-design methods to improve the performance, price and environmental footprint of our products and to further our aim of making sport accessible to all. In 2017 are Decathlon shareholders we doubled the number of Decathlon products that are labelled with information about their environmental impact. Since 2015, we have been educating our teammates about how we contribute to the United Nations Sustainable Development Goals2 to build a fairer society and improve the lives of people throughout the 58% world by 2030, and in 2017 we began the process of updating our sustainable development priorities. 250 million sports users We believe in Decathlon, all united for a better world. of users are delighted impacted by our products with their Decathlon products Everybody can play a role ! All figures appearing in this report are as of 31/12/2017 The decathlonians 1. R esults from the Decathlon Team Barometer survey of 60,028 Decathlon teammates from across the world in September 2017. 2. Sustainable Development Goals: http://www.un.org/sustainabledevelopment/ Percentage of people who answered "yes, absolutely". 4 CHALLENGES AND STRATEGIES CHALLENGES AND STRATEGIES 5
2017 ESSENTIALS 2017 ESSENTIALS OUR SUSTAINABLE DEVELOPMENT CHALLENGES ECONOMIC CHALLENGES Our sustainable development challenges are directly tied to the actions inherent to our business activity, which have an immediate impact on our environment, society, and on the men and women who work with Consumer purchasing power Remuneration conditions for our suppliers, sub-contrac- us, at every point in the value chain. tors and service providers Local economic impact Development in markets with low purchasing power Digital transformation Omnichannel Our business model focuses on offering attractive, hi-tech, eco-design sports items at the fairest possible prices, to enable as many sports users as possible to access our products. OUR ECONOMIC ACTIONS Affordability of Decathlon products for users Pilot projects on fair compensation for production Digitising the value chain workers SOCIAL CHALLENGES Providing free sports facilities close to stores Digital transformation Bulk purchasing and strategic partnerships Teammate health and safety Work scheduling Teammate engagement Education and training Diversity Sharing the value created with teammates Attracting talent OUR SOCIAL ACTIONS ENVIRONMENTAL Uncompromising personal safety standards Empowering teammates and leveraging subsidiarity for decisions CHALLENGES Recruiting people who are vital, practical and enthusiastic about sport Sharing the value created and promoting employee Personal fulfilment at work by sharing sporting shareholding Climate change Water, air and soil pollution Toxicity of chemicals Waste management activities with others Fair remuneration for teammates in line with Developing skills and uncovering talent responsibilities OUR ENVIRONMENTAL ACTIONS Developing more eco-friendly manufacturing FOR OUR USERS processes Eco-performance labelling for Decathlon products Strategic partnerships SOCIETAL ISSUES Workshops where users can repair products Selling second-hand products through the Trocathlon system BUSINESS Working conditions Human rights Stakeholder dialogue Consumer health and Optimising energy performance of existing stores safety Operational authority and social acceptability Innovation Eco-construction of new stores DESIGN Sorting and recycling waste Promoting soft mobility OUR SOCIETAL ACTIONS Multi-criteria analysis of Decathlon product life cycles Using renewable, recycled or recyclable raw materials Eco-designing Decathlon products and packaging FOR OUR USERS PRODUCTION LOGISTICS Encouraging regular sporting activity Regularly assessing and continuously improving working Reducing transport distances for Decathlon products Ensuring Decathlon products are safe conditions at production sites PRODUCTION Maximising container load factors Continuously improving Decathlon products based Increasing supplier capabilities in essential areas Continuously assessing and improving the Using low-impact transport methods on user reviews (safety, working hours, etc.) environmental impact of our production sites Optimising the eco-performance of logistics platforms Transparency of information for our users Strategic partnerships Sporting communities led by store teams Online sports coaching BUSINESS Organising local events to revitalise sporting communities The Sustainable Development Goals were established by the United Nations in 2015 to DESIGN eradicate poverty, protect the planet and guarantee prosperity for all people within the Decathlon product safety and quality LOGISTICS framework of a new Sustainable Development Agenda. Decathlon product durability Our challenges are inspired by these global commitments. Learn more about the goals: Unsold products managed by logistics teams (repairs, recycling, donations, etc.) https://www.un.org/sustainabledevelopment/sustainable-development-goals/ 6 CHALLENGES AND STRATEGIES CHALLENGES AND STRATEGIES 7
2017 ESSENTIALS 2017 ESSENTIALS OUR SUSTAINABLE DEVELOPMENT AMBITIONS OUR 2019 AMBITIONS TO PROTECT THE ENVIRONMENT AND CONTINUALLY REDUCE OUR ENVIRONMENTAL IMPACT ACHIEVED 2016 ACHIEVED 2017 2015-2019 Our sense of vitality and responsibility are key drivers of our sustainable development approach. Stabilising all our CO 2 equivalent emissions by 2021. 7.182 million 8.245 million In addition to active monitoring, we anticipate societal challenges and issues in order OUR ACTION: We create action plans for each activity based on our tonnes CO2 eq. tonnes CO2 eq. to innovate and direct our efforts. Our priority is to create sustainable value(s) for our teammates, environmental impact assessment. users, partners, fellow citizens and shareholders. 64 certified sites 78 certified sites DECATHLON TEAMS STRIVE TO MAKE A DIFFERENCE EVERY DAY 100% f new company-owned sites are certified o Stores: Stores: to the most exacting environmental standards. OUR ACTION: We are improving the energy efficiency 139.5 kWh/m 2 127.2 kWh/m 2 of our sites and reducing the CO2 equivalent emissions stemming Warehouses: Warehouses: OUR 2019 AMBITIONS TO EMPOWER OUR TEAMMATES ACHIEVED ACHIEVED AND MAKE WORK MORE ENJOYABLE 2016 2017 from their energy use. 68.2 kWh/m 2 74 kWh/m 2 100% f teammates look forward to coming to work each morning o 100% sustainable cotton for our Decathlon textile products by 2020. 14.4% 55.2% because they are working toward personal and collective goals. OUR ACTION: We recruit people who are passionate about sport, 91% 91% vital, pragmatic and service-oriented. 100% sustainable polyester for our Decathlon textile products by 2021. 7.35% 9.4% 100% f our teammates can play their sport regularly, o OUR ACTION: We are reducing the environmental impact of our products at their own pace and level. 77% 80% by using raw materials from sustainable sources. OUR ACTION: We encourage everyone to play a sport. 100% f our teammates thrive by taking on more responsibility o 100% f suppliers at risk for water, soil or air pollution o and seeing the results of their decisions. OUR ACTION: We make it possible to put the principles of subsidiarity, 88% 89% assigned an A, B or C score according to our audit criteria. OUR ACTION: We improve the environmental performance NA 26.8% responsibility and autonomy into practice. of our suppliers' industrial sites by helping them continuously reduce their environmental impact based on their risks. 100% of teammates feel safe in their workplace. OUR ACTION: We are uncompromising when it comes to the safety 93% 94% Stores: Stores: of our employees in the workplace. Increasing our waste sorting rates. 40% 39%3 OUR ACTION: We are optimising the volume of waste Warehouses: Warehouses: sorted by our teams. 100% of teammates are shareholders in the company, if they wish to be. 50.7% 58.2% 85% 62% OUR ACTION: We share the value created at the company. OUR 2019 AMBITIONS TO COMMUNICATE ACHIEVED ACHIEVED OUR 2019 AMBITIONS TO ENSURE PROGRESS ACHIEVED ACHIEVED RESPONSIBLY, PRAGMATICALLY AND HONESTLY 2016 2017 FOR PEOPLE WORKING IN THE SUPPLY CHAIN 2016 2017 ABOUT OUR SUSTAINABLE DEVELOPMENT ACTIONS 100% of our suppliers1 are given an A, B or C score based on our audit criteria. SS4 Season SS4 Season OUR ACTION: We regularly assess our suppliers to verify that working conditions 68% 69% 100% f textile, footwear and heavy stitching products o 2016: 2017: comply with our Code of Conduct. are assigned an environmental score. 7.9% 5.03% OUR ACTION: We ensure complete transparency in labelling AW Season 5 AW5 Season the environmental performance of our Decathlon products OUR 2019 AMBITIONS TO BE A LEADER IN PRODUCT SAFETY ACHIEVED ACHIEVED 2016: 2017: to support responsible consumption. AND LONG-TERM USER SATISFACTION 2016 2017 8.7% 16.49% 100% satisfaction2 for users of our sports products. Our ambitions are reviewed on an annual basis, in line with changing contexts OUR ACTION: We ask them to share feedback about our Decathlon products 52% 58% and action plans, with input from all the teams involved. so that we can continuously improve them. For more information about our strategies and results, see our 2017 Sustainable Development Report. 1. Rank 1 suppliers. 3. T he number has decreased due to a change in the scope of calculations and the addition of new countries. As a result, it is more representative of our 2. Our objective is to have 65% of sports users awarding our products a 5 out of 5 score in 2018. See p. 105 of the 2017 full Report to actual overall activity but does not take into account the positive results from Italy, Belgium and the Netherlands, which achieved rates of over 60%. get further. 4. SS: Spring-Summer. 5. AW: Autumn-Winter. 8 CHALLENGES AND STRATEGIES CHALLENGES AND STRATEGIES 9
2017 ESSENTIALS 2017 ESSENTIALS OUR CLIMATE COMMITMENT MEASURING AND MANAGING At the COP 23 meeting in 2017, the World Meteorological In 2017 the international network comprised 85 Environmental Leaders, including 15 Country Environmental Leaders, 50 Decathlon Organization stated that “in a clear sign of continuing long-term Brand Leaders and 20 Industrial Process Leaders. These local players climate change caused by increasing atmospheric concentrations roll out the comprehensive Decathlon GHG emissions reduction of greenhouse gases (GHG), 2015, 2016 and 2017 have been strategy by measuring and adapting their initiatives to the context confirmed as the three warmest years on record”1. Emissions and the challenges they face. levels are stabilising, but concentrations of CO2 and methane Quarterly reporting on environmental data was implemented so that in the atmosphere are still on the rise. This directly contributes the results could be tracked on an ongoing basis. to climate phenomena that are affecting all our ecosystems. In 2017 we bolstered support for local teams by offering regular Decathlon has considered GHG emissions to be one of our priority training sessions on how to define and assess our environmental challenges since 2013. In 2017 we focused on local efforts to impact. Leaders in the countries are empowered to manage their own data. Meanwhile, the Decathlon brands design target our strategy management as close as possible to impacts. teams now have access to an eco-design module that can be used to perform simple life-cycle analyses and measure We implemented quarterly reporting to better track this indicator the environmental impact of components and products. and developed training programmes on measurement tools for This compilation of product and site data gives us a comprehensive view of CO2 emissions for Decathlon as a whole, as our teammates in charge of this area. This effort enabled them to well as for each country, Decathlon brand and product family. develop their own strategies and action plans to meet the overall Our next priorities will be to help our suppliers manage their CO2 emissions and support our teams as they develop more reduction goal. of their own goals locally. We are relying on the Science Based Targets (SBT) initiative to determine our ambitions and ensure they remain consistent. KEY FIGURES FOR OUR CLIMATE COMMITMENT* *as of 31/12/2017 8.245 tonnes CO equivalent 6.8 kg CO equivalent emitted in 2017 2 2 emitted by quantity of products sold in 2017 Romain Poivet, Project Manager for the ACT initiative at ADEME ACT evaluates trends for companies and assesses the low-carbon strategy, human resources and investments +14.8% devoted to attaining these goals. The assessment methods are based on using different methodologies for different +0.5% CO emission sectors. Decathlon worked with us throughout the entire testing process, sharing methods and best practices through the final evaluation of their own low-carbon strategy. tonnes of CO2 equivalent 2 by quantity absolute value in 2017 compared with 2016 of products sold in 2017 compared with 2016 HIGHLIGHTS OF THE RESULTS OF OUR ASSESSMENT Since 2013, we have counted all emissions that can be attributed to our activities in our GHG assessment, from materials extraction to in-store sales of products and their end-of-life. BREAKDOWN OF OUR GHG EMISSIONS BREAKDOWN OF OUR GHG EMISSIONS During this period of business growth, our annual GHG emissions stood at 8.2 million tonnes of CO2 equivalent, BY ACTIVITY BY SCOPE* representing an increase of 14.8% compared with 2016. * Tonnes of CO2 equivalent Over the past three years, we have observed that our emissions curve runs parallel to our growth curve. That is why in 2016 we set a new trajectory for 2021. The carbon trajectory is more than an assessment tool; we use it to actively Teammate adjust our performance based on the strategies and tools we have put in place to reduce our carbon intensity. travel Scope 1 27,806 In 2017 we: 2% Products improved the energy efficiency of our stores: -8.8% kWh/m² Product transport 73% Scope 2 177,970 reduced the carbon intensity for the transport of our products from warehouses to stores in Europe stabilised our per-item carbon performance, thanks to our eco-design efforts for our products (design, industrial 5% processes and materials selection) Site construction Scope 3 8,039,767 and operations Customers travel increased waste sorting rates in Europe by 27% 5% 15% Scope 1: direct emissions, Scope 2: indirect emissions from energetical consumptions, Scope 3: other indirects emissions (Supply, transport, use, end-of-life...) 1. https://unfccc.int/news/2017-was-among-top-three-hottest-years-on-record/ 10 CHALLENGES AND STRATEGIES CHALLENGES AND STRATEGIES 11
2017 ESSENTIALS READY FOR RESPONSIBILITY AND FREEDOM PEOPLE AND MANAGEMENT Since Decathlon was founded, empowering each teammate has been central to our human resources approach, illustrated by managerial guidelines like "Daring" and the right to make mistakes. Our 2026 business vision reaffirms these values through "Do what I love", a concept that reflects our company's desire to employ fulfilled teammates. This commitment is supported by the role-based managerial structure that was expanded in 2017, ensuring that each individual has a personalised frame of reference that clarifies their responsibilities and their ability to take their own decisions. This transformation is supported by a digital platform organised into three areas: Projects, Talents and Job Offers, ensuring that information circulates freely and PUTTING PEOPLE AT THE HEART OF OUR GROWTH transparently throughout the company. Workplace well-being fosters an innovation-friendly dynamic that makes companies more productive. Decathlon has In 2017, 89% of Decathlon teammates 31,229 teammates have filled out implemented an assertive policy in this area that directly links human capital, teammate growth and value creation. stated that "responsibility helps them grow" their profile on the company "Talent" platform Our Quality of Life at Work (QVT) Specialists play a pivotal role in making this a reality, as they are the ones who will communicate local priorities to the leaders in charge of each area in an effort to identify the most effective action for each situation. MAKING THE VISION 2026 CAUSE 1: Do what I love We have taken steps to promote diversity and improve the organisation of work schedules so that each individual can A REALITY ACROSS THE WORLD live up to their full potential. CAUSE 2: Co-creating The Decathlon Vision 2026 has been in unique products 91% of our teammates development since 2015. It contains five pillars CAUSE 3: Making @store 67.9% of teammates worldwide are under 29 that were chosen in 2016 through an innovative a fantastic experience collaborative process involving 38,000 teammates enjoy coming to work every day2 and 0.5% are over 55 and partners from outside the company. CAUSE 4: Being there The Vision has now been rolled out in around 40 when we are needed countries. It features five causes that were chosen TEAMMATES ENJOY COMING TO WORK with input from local players and ensures that CAUSE 5: Protecting the planet every country can adapt the action plans in line and its inhabitants As part of our active commitment to our employees, Decathlon measures the satisfaction of our teammates across the world with the priorities that matter to them. to protect our purpose with a company barometer, the Decathlon Teammate Barometer (DTMB). This anonymous, global survey analyses where progress is being made and can be used to swiftly develop action plans to correct any areas where we are falling short. Topics covered: Freedom to be oneself, shared values and a sense of purpose, and personal growth through empowerment. CREATING A FRAMEWORK OF ACTION FOR EACH ROLE Outside the company, in the Great Place To Work rankings3, Decathlon came in first place for the second year in a row in the category Best Workplace with more than 5,000 employees. Developing a role-based managerial structure has helped us put our focus on empowering our teammates to take their own decisions. This autonomy, promoted in every country where Decathlon operates, is a driver for subsidiarity, the ability to coordinate and lead a project at the level where the value is actually being created. QUALITY OF LIFE AT WORK AMBASSADORS Roles are divided into four main categories: Leaders, who are responsible for making the project a success, Resource Teammates, who are assigned their own tasks, Coaches, who support the personal development of one or more teammates, In 2017 Decathlon France expanded the role of the QVT Specialists. The network is made up of 256 teammates and led by a and Specialists, who are recognised experts in their field. human resources manager for each region. Their job is to educate employees, issue alerts and implement action plans for the local community. They are a vital resource for gathering feedback and prioritising actions that need to be implemented on the ground. Promoting knowledge ORGANISING WORK SCHEDULES The and interactions TRANSPARENT between teammates COMMUNICATIONS Following a 2016 survey we conducted to find out if our teammates were satisfied with their hours, Decathlon France maintained ecosystem TO HELP EMPLOYEES our part-time policy in 2017 to ensure that employees’ hours were chosen rather than imposed. Special care is taken during the hiring process so that the needs of both parties are met, and there are regular checks as part of the working relationship. TAKE OWNERSHIP A winning OF THEIR CAREER PATHS teammate The three-part digital platform promotes internal Workplace well-being is simply the outcome of the work mobility, project sharing and interaction among Marie Pinel, PROJECTS teammates based on their skills, talents and Decathlon France our Referent do, each and every day. By focusing more on the local level, our liaisons are able to identify which issues are important to Promoting knowledge Promoting internal mobility aspirations. QVT Leader and project sharing their fellow teammates and their sporting communities. Other platforms 2. Results from the Decathlon Team Barometer survey of 60,028 Decathlon teammates from across the world in September 2017.Percentage of people who answered "yes, absolutely" or "yes, rather". 3. http://www.greatplacetowork.fr/meilleures-entreprises/best-workplaces-france-plus-de-5000-salaries 12 PEOPLE AND MANAGEMENT PEOPLE AND MANAGEMENT 13
2017 ESSENTIALS 2017 ESSENTIALS DEVELOPING SKILLS AND UNCOVERING TALENT DELIVERING HEALTH AND SAFETY Public authorities, businesses and employees all have a responsibility when it We are committed to making safety a priority for our sports users and our teammates. Countries and local players have comes to career-long continuing education to ensure teammates’ continued access to tools they can use to verify that each teammate experiences safe working conditions and make improvements employability and development. Our knowledge-improvement policy, which when necessary. aims to help employees maintain their job skills and pursue their own personal In every one of our stores, warehouses and head offices in France, health and safety are monitored by QVT Specialists5 development, has been a part of Decathlon since it was founded to ensure that and safety captains who apply safety guidelines as dictated by their local needs and regulations. all teammates who wish to increase their potential can do so. Everyone is in In addition to the physical health and safety rules for work stations, Decathlon also recognises the psychosocial risks charge of their own learning, meaning they can take on more responsibility and related to workplace well-being. become more self-reliant. 5 Exchange training centres 80% of Decathlon teammates 94% of teammates 1,154,105 training hours play their sport regularly feel safe in their workplace PIVOTING FROM CAREER PATHS TO KNOWLEDGE BASES THE SAFETY OF OUR TEAMMATES AND THE ROLE OF SAFETY CAPTAINS To help all our teammates manage their own personal and professional performance, Decathlon has several tools that can be tailored to fit individual learning needs. As part of our uncompromising approach to safety at all our sites around the world, safety is now handled locally by those most familiar with the regional context, ensuring that each country and each store has the tools and materials to ensure that safety In the past, training options included a range of e-learning and face-to-face training modules, but in 2017 training was reorganised is a priority. into a single-platform known as Decathlon Academy. This system provides visibility for all the skills available for each job and promotes increasing collaboration between sectors. In France, safety captains are the local specialists in charge of keeping our teammates and users safe in our stores and warehouses. They are trained and evaluated on a regular basis. What makes the system work is teammate autonomy: every employee can perform a self-assessment based on the responsibilities associated with their activity and manage their own progress, whether or not it is in their initial field of expertise. Throughout the world, the safety measures put in place at our Decathlon stores comply with the safety guidelines in force in the countries where they are located and with local regulations and insurance requirements. These are made even stronger Learner satisfaction is integral to this skill-based system: each course is evaluated so that it exemplifies the principle of through an analysis of risks specific to that country. educational innovation. In 2017 employees completed 1,154,105 hours of in-person training and 240,588 hours of e-learning courses worldwide. In France 3.98% of the yearly payroll was invested in training our teams. PSYCHOSOCIAL RISKS DECATHLON EXCHANGES FOSTER PERSONAL DEVELOPMENT AND ARDUOUS WORKING CONDITIONS Decathlon encourages teammates to think about how their personal development allows them to unlock new skills and create In 2017 efforts to improve physical and mental well-being for teammates were novel products. The Decathlon Exchanges, which exist in five countries4 worldwide, have supported teammates on the topic of expanded. To achieve quality of life at work, it is essential to strike a balance between empowerment-based management since 2005. one’s personal life and professional life, especially when it comes to job satisfaction. This work has helped strengthen the company's cultural identity throughout the transformations that have taken place and That is why Decathlon provides teammates in France with multiple forms of support, ensured that each teammate would see how their work, their values and the Decathlon values align. ensuring that each person can find the right solution for their needs through the Be + project. The project has four pillars: mental wellness, preventing incidents through awareness and training, supporting others and being supported in times of crisis, PROMOTING INTRAPRENEURSHIP AND CREATING ALTERNATIVE SUCCESS STORIES and promoting interactions with fellow sports players. In addition, as part of a risk prevention process, Decathlon has identified the Decathlon promotes skill building at every level. This motivates teammates who have big ideas to develop them and make occupational risk factors that are likely to affect the health and safety of our them available within the company in hopes of eventually taking them mainstream. This is how Allan Ballester developed teammates. “Decathlives”, a corporate couch surfing programme that connects teammates who are willing to host their colleagues and These risk factors are associated with different areas, such as working conditions, the physical environment or physical those who want a new experience when travelling for business. demands on teammates. 1,046 nights hosted by Decathlives in 2017 8,745 teammates signed up A pair of specialised training courses have been developed for our teammates to better identify risks and, when necessary, correct working conditions. FOCUS Sustainable Development was added to the core Training courses put of the Decathlon Academy platform in December 2017. TEAMMATES WHO STATE THAT THEY PLAY THEIR SPORT REGULARLY No, not really With training sessions for every level, any teammate SD on the syllabus can learn about the subject and develop new skills in keeping and no, not at all 20% with their professional goals and their level of expertise. Yes, definitely 44% Yes, rather 36% 4. Decathlon Exchange: China, France, India, Brazil and Vietnam (opened in 2017). 5. QVT: Quality of Life at Work, see page 12 14 PEOPLE AND MANAGEMENT PEOPLE AND MANAGEMENT 15
2017 ESSENTIALS 2017 ESSENTIALS ATTRACTING, REWARDING AND MOTIVATING TEAMMATES DECATHLON FOUNDATION: ACCESS TO EMPLOYMENT THROUGH SPORT As part of a broader human resources policy of managing skills and developing new strategies, businesses are crafting compensation “Reducing inequalities and paying special attention to vulnerable populations” is a global challenge and the 10th United programmes that continually motivate their teams and attract new Nations Sustainable Development Goal8. True to the Decathlon purpose and values, the Foundation has been supporting talent. teammates who wish to donate their time and energy to sport-based employment projects since 2005. The efforts At Decathlon, our compensation package has three goals: supporting funded by the Foundation help people in difficulty by promoting equal opportunity, tolerance, and inclusive social and company strategies, fairly compensating employees for the value they economic development. The Foundation Teams are developing worldwide so that they can take their own decisions create, and paying wages that are commensurate with salaries paid to when it comes to selecting and rolling out their projects. other teammates and with labour market rates. In 2017 the Foundation followed through on our efforts to maximise the social impact of our stores in India by developing This approach empowers all our employees and encourages them to the project launched in 2015. play an active role in our business performance, purpose and values. 33 projects funded in 2017 Taking local differences into account, we aim to share the value created 21,463 through employee shareholding and to offer global packages that are competitive in the labour market. 4 Foundation teams are autonomous direct beneficiaries of our projects in 2017 in 6 countries (Spain, Italy, India, Brazil) 59% 2,03 billion: total worldwide payroll, of teammates feel that their THE FOUNDATION'S INTERNATIONAL ACTIVITIES: salary is fair compensation for their an increase of 13% compared with 2016 INDIA'S STORY responsibilities, the same number as in 20166 In 2014 the Decathlon teams launched their efforts to keep pace with the changes in the booming Indian market, recognising that less than 15% of the local population could afford to shop in one of our Decathlon stores. The Immersion project took shape following a study on our regional impact, which was based on testimonials GIVING EMPLOYEES A VOICE IN THEIR COMPENSATION from local residents, observations at local playing fields, product tests, presentations of new types of sport, and organising sporting events. Pay packages at Decathlon are designed to compensate employees fairly for individual and collective contributions to value creation and include elements that are both fixed and variable, monetary and non-monetary. Compensation is customised These efforts involved local populations in a project known as Sports for School according to the professional performance and expertise of each teammate. Value created through group performance is Children, co-developed and launched as part of the sport curriculum by schools in shared through incentive and shareholding schemes. India, in hopes of improving the lives of people in local communities and providing In 2017, a pilot programme was introduced in France to give teammates more of a voice in how they are compensated. Internal access to sport for children of all ages. As a result, by 2020 there will be 55 stores and external data is made available to teammates so that they can see how their compensation measures up. In addition, each in India sponsoring programmes to promote sport in nearby schools with support teammate receives information that helps them understand their compensation package and appreciate the value created by from the Decathlon Foundation. their group projects, their store or their region. PARTAKING IN THE VALUE Sports for School Children involves a voluntary commitment CREATED THROUGH SHAREHOLDING Annie George, by our teammates. Through the values of leadership, team building Communications and and engagement, they aim to use sport to bring about changes in Shareholding represents an opportunity for teammates to share an Sustainable Development social behaviour, help children develop life skills and find growth experience and play an active role in the company's financial performance. Leader for India and Head opportunities for the marginalised communities around our stores This commitment helps employees better understand the economic of the Sports for School and factories. challenges that impact us and makes them feel that they are involved in Children Programme company life. To help employees understand how this works, we expanded communications about the scheme in 2017. Whatever their level of involvement, all shareholders have access to information from the teams in charge of this initiative, with contacts at every level of the company. THE BRAZIL FOUNDATION TEAM This scheme is now available to employees in 24 countries7. In countries where laws prohibit employees from being direct shareholders, an "We have been working with the Foundation since 2016 to learn about the process and approve Foundation projects independently intermediate option has been put in place in agreement with local authorities and directly in Brazil. The first committee was created in Brazil in 2017. We approved four projects, in addition to the seven active and banking institutions. projects already being developed", explains Fabio Siquiera, Foundation Leader in Brazil. Committee members: Cédric Burel (Decathlon Brazil Director), Fabio Siquiera (Foundation Leader in Brazil), Anita Malavasi (Foundation member in Brazil) and Gwenaëlle Maître (an outside professional and social projects specialist in Brazil). The seven volunteer members assist with all projects and communicate about the Foundation's initiatives within the company. 6. R esults from the Decathlon Team Barometer survey of 60,028 Decathlon teammates from across the world in September 2017. Percentage of people who answered "yes, absolutely" or "yes, rather". 7. For the newly updated 2017 CSR scope for this data point: Belgium, Brazil, Cambodia, China, Czech Republic, France, Germany, Hungary, Italy, 8. https://sustainabledevelopment.un.org/sdg10 Mexico, Morocco, Netherlands, Poland, Portugal, Romania, Russia, Singapore, South Korea, Spain, Sri Lanka, Taiwan, Thailand, Turkey and United Kingdom. 16 PEOPLE AND MANAGEMENT PEOPLE AND MANAGEMENT 17
2017 ESSENTIALS PRODUCTS AND SERVICES EXPANDING ECO-DESIGN FOR OUR PRODUCTS Since the Industrial Revolution, the production of consumer goods has put increasing pressure on the world's ecosystems. In their Sustainable Development Goals, the United Nations calls on the world to: “Ensure sustainable consumption and production patterns”10. Ten years ago, Decathlon created a product and component eco-design initiative to answer this call, and in 2017 this project was intensified with the implementation of Decathlon's Vision 2026. Thanks to our teams’ commitment, we have increased the number of projects and initiatives at every level. Following an initial learning phase, the eco-design approach has entered a phase of autonomy and widespread adoption – in particular through training our teams, creating high-performance calculation tools, and beginning to rethink how we use raw materials. These efforts are already making a visible impact, allowing us to provide high-quality environmental information to DELIVERING INNOVATION AT EVERY LEVEL sports users who feel increasingly concerned by these issues. Innovation is a driver of sustainable economic growth. From the very beginning, Decathlon has placed innovation at the 206 engineers 55.2% of our cotton heart of its product and services offering, creating new, competitive product ranges to support the stability and resilience are qualified to evaluate and 9.4% of our polyester supply of our business activity. In 2017, Decathlon decided to integrate innovation at every level of the value chain using several different methods that the environmental impact of products comes from more sustainable sources 16.5% of products have an environmental label align with our strategy of incremental innovation focused on frugality and eco-design. Our design and engineering teams are trained to rethink original ideas with a pragmatic approach to continuously improve our products while remaining focused on the users’ most important needs. The aim is to make Decathlon products increasingly accessible, ingenious, distinctive and sustainable. 58% of users were delighted with their 421 product engineers and 180 designers ECO-DESIGN: BOOSTING TEAM AUTONOMY, IMPROVING METHODS AND PROVIDING Decathlon products compared with 52% in 2016 work to design Decathlon products TRAINING ON DESIGN TOOLS ALIVE, JUGAAD AND MAKERS: INNOVATION FOR AND WITH COMMUNITIES To reduce the environmental impact of products right from the design stage, these issues are integrated into Decathlon brands' strategies and industrial processes Decathlon is developing different approaches to innovation involving multidisciplinary communities that promote collective using tracking indicators and support for the decision-making process. Calculation intelligence, the transmission of knowledge and process efficiency: methods were reinforced using the ADEME database, which includes more Alive: Open to all, sports users and teammates alike, this innovation space is located next to the Decathlon Campus store procedures and a wider range of products. Building automated environmental in France. Designed to promote sharing, inspiration and creation, it constitutes an all-in-one innovation concept focused on calculations into the product design tool meant that we could assign an ABCDE the human dimension of design, teaching people how to work differently and overcome divisions. Various opportunities for rating that sports users could easily understand. In 2017, nearly 60% of Decathlon exchanging ideas (inspiration events, incubator services, exhibitions, etc.) are offered as part of the improvement process, from engineers had received training and were able to evaluate the environmental impact conceptualisation to the finished product. of the products they develop. The number of products with an environmental rating Jugaad: This method is focused on inventing radically new solutions that use less energy and fewer materials. The priority is doubled between 2016 and 2017. rethinking product design, with support that focuses on the use of materials and simplifying production, with local adjustments to meet sport-specific needs. Makers: An in-house community of teammates, the Makers share their technical expertise to help all our teammates develop their creativity and ingenuity in a do-it-yourself approach. This gives them a grasp of each step of the manufacturing process, EFFORTS TO FAVOUR COMPONENTS AND RAW MATERIALS which they can then rethink to adapt to any requirements. THAT HAVE LESS OF AN ENVIRONMENTAL IMPACT Right from the design phase, the product components and raw materials we choose are the focus of our work on product sustainability. That is why over the last few years Decathlon has committed to adopt a more responsible approach to cotton procurement in an effort to reduce environmental impact and improve the labour conditions for harvesting and processing. The Decathlon teams have pledged to only use cotton from three sources by 2020: organically grown cotton, recycled cotton and Julien Littler, Internal IT Auditor, Amateur Freediver Better Cotton Initiative (BCI) labelled cotton. In 2017 the use of more sustainable cotton increased from 14.4% to 55.2%. As part I joined Makers so I could produce my own weights for freediving. It was so different from my job and I was fascinated to of the same effort, by the end of 2021, 100% of polyester used to manufacture our products will come from more sustainable learn about product engineering. I created three prototypes with Subea9, all of which underwent an improvement process sources11. so they could become part of the range. SPORTSLAB: 20 YEARS OF EXPERIENCE OBSERVING THE HUMAN BODY Raffaele DUBY It's our job to help teammates put sustainable Product and Design development principles into action and live out their One of Decathlon's centres of expertise focusing on the development of the human body, SportsLab conducts laboratory Environment Leader testing throughout the design process. The goal is to make products easier to use and to ensure user safety and well-being convictions every day with Decathlon. so that sport remains a source of joy. 4 laboratories and 50 engineers: the “Morpho” Team, the Movement Team, the Thermal Comfort Team and the Affective Science Team. 9. Subea is one of Decathlon's own brands. 10. http://www.undp.org/content/undp/fr/home/sustainable-development-goals/goal-12-responsible-consumption-and-production.html 11. Recycled polyester, solution-dyed virgin polyester and solution-dyed recycled polyester. 18 PRODUCTS AND SERVICES PRODUCTS AND SERVICES 19
2017 ESSENTIALS 2017 ESSENTIALS OFFERING PRACTICAL AND ECO-FRIENDLY SERVICES CREATING SAFE, HIGH-QUALITY PRODUCTS The natural resources the Earth can produce in a year are being consumed more and more quickly. Human consumption Lasting customer satisfaction is one of Decathlon's primary concerns. As a designer and thanks to regular visits to our is directly related to this state of affairs and Decathlon is aware of its responsibility, choosing to refer to sports users suppliers, we pursue our goal of continuously improving the quality of our Decathlon brand products by managing risk rather than customers to place value on playing sports and interacting with products, rather than on possession. – for both sustainability issues and toxicological risks – as high up the value chain as possible. In partnership with our Today, our teammates are working to increase product durability, thinking about reparability from the design phase suppliers, we are raising our standards through in-depth training programmes, with a special focus in 2017 on the new onward, creating a new life for products through the second-hand market and providing collection points to make Restricted Substances List (RSL) that sets new acceptability thresholds for chemicals. recycling easier. +43% products repaired 250,000 1,158 products per million 83.3% were returned due to defects of suppliers are involved in our workshops in 2017, unsold products were donated across or customer dissatisfaction in managing chemical substances with 70% of returned products successfully repaired France and Spain to 48 associations compared with 1,269 in 2016 by signing Decathlon's Restricted Substances List WORKSHOPS: REPAIRING PRODUCTS TO MAKE THEM LAST GREATER AUTONOMY FOR MORE LOCAL RESPONSIBILITY Every Decathlon store has its own repair workshop. These workshops are intended to support sports users in the use and Worldwide, quality standards may be subject to varying thresholds. The challenge for our teams is to apply Decathlon upkeep of their products by teaching them to do repairs themselves with the spare parts we sell. Anyone can find tips here: specifications uniformly across the world. Local adaptation, made possible by the work of our teams and by in-depth training https://support.decathlon.fr/ programmes for our suppliers, ensures that all our sports users around the globe enjoy the same lasting satisfaction and safety. The goal of the Workshops project is to support the Decathlon brands teams in charge of choosing components so that The goal is for each country to be responsible for creating the right conditions for their users' satisfaction and for providing optimal reparability is taken into account from the design stage onward. locally relevant solutions through personalised support and customised tools. In concrete terms, these training courses enable suppliers to help teams increase their skills when it comes to the risks of non-quality and to clarify risks using the proper tools. SECOND-HAND PRODUCTS, CONTINUOUSLY IMPROVING PRODUCT QUALITY RESOURCE RECOVERY AND DONATIONS BY RECOVERING AND ANALYSING RETURNED MERCHANDISE Trocathlon: Created in 1986, Trocathlon events offer a chance to buy and sell used Returned products actually provide valuable information about why a product's quality was insufficient so that we can equipment and second-hand sporting goods. These have evolved over time to better continuously improve product quality in general. Analysis by our design teams helps determine what corrective actions need meet local needs and now sport-specific events are held throughout the year. The new to be taken to protect our users. dedicated platform makes it easier for sportspeople to get in touch with each other. In 2017, 48,673 products were sent for quality analysis from stores to the Decathlon brands design departments. The products sold this way come with the same warranty and exchange policy as new items: https://occasions.decathlon.fr/ Resource recovery consists of optimising the use of raw materials to increase their lifespan. That is the idea that led to filling our Outshock punching bags with MANAGING CHEMICAL RISKS defective socks. The logistics chain for the recovery, transport and storage of At Decathlon a six-person team dedicated to chemical risk management leads the way on this topic across all divisions. suitable materials was created with help from the Quality Department in identifying Throughout the world, it provides tools and training courses and is in charge of determining substances that pose a risk, how defective products that could be used for the project and from the Legal Department often controls are carried out, testing methods and tolerance thresholds. An internal network of trainers in our main production in order to replicate this approach worldwide. Fifty-five tonnes of product have been areas helps to support suppliers as they come into compliance with our requirements. recovered and turned into punching bags since the project began. Rewind, a project currently in the pilot stage that was developed by five major players in the cotton value chain in France, allows us to process fibres from old clothes at the end of their life cycle in order to create thread to make new clothing. In 2017, we produced nearly 2.9 million pairs of tennis STANDARDISING ONLINE CONSUMER REVIEWS socks made from industrial fabric scraps based on this idea. Decathlon launched a standardisation process to improve the reliability of consumer review collection and tracking practices, Donating unsold merchandise: This initiative began in France when we realised we had a great deal of stock sitting in our and boost their e-reputation internationally12. warehouses: clothing and gear that were in perfect working order but were out of season and thus unsuitable for sale, or that did not meet the requirements of the Decathlon brand specifications. We worked on the legal aspects to make donating easier and more widespread. The strong partnerships we have forged with associations enable us to make as many donations as necessary, taking into account the needs and storage capacities of each association. Nicolas MARCQ, ISO/TC 290 Committee Secretary Decathlon has pioneered consumer review tracking and analysis and is one of the first large companies to have created an international consumer review handling system that focuses on reliability. Our collaboration led to the Florence CONDETTE A clearly-defined practice for making development of the ISO 20488 standard “Online consumer reviews – Principles and requirements for their collection, Inventory Management donations to organisations is an appropriate moderation and publication". Project Leader and sustainable solution for compliant products so that we don’t have to discard them. 12. The vice presidency of the AFNOR “Sports, Leisure and Consumer Goods” Strategic Committee has been held by Stéphane Jock (Legal Counsel at Decathlon) since January 2015. 20 PRODUCTS AND SERVICES PRODUCTS AND SERVICES 21
2017 ESSENTIALS MAP OF PRODUCTION COUNTRIES RESPONSIBILITY IN PRODUCTION Decathlon has 43 production offices in 25 countries and works with suppliers in another 24 countries. Teammates may coordinate production in the country where they are located or in that country and several neighbouring countries as well. COUNTRIES WITH A DECATHLON PRODUCTION OFFICE AFRICA: Egypt, Ethiopia, Morocco, Tunisia. AMERICAS: Brazil, Mexico. NORTH ASIA: China, Taiwan, South Korea. SOUTHEAST ASIA: Cambodia, Indonesia, Singapore, Thailand, Vietnam. SOUTHWEST ASIA: MAINTAINING LONG-TERM RELATIONSHIPS Bangladesh, India, Pakistan, Sri Lanka. EUROPE: France, Italy, Poland, Portugal, Romania, Turkey. CIS (Commonwealth of Independent States): Russia. COUNTRIES Decathlon entrusts the production of its sports articles to a panel of suppliers organised by industrial process. Our WITHOUT A DECATHLON PRODUCTION OFFICE local production teams, operating from Decathlon's production offices and organised in a similar way, are in charge of day-to-day supplier relationships. With our suppliers, we share a desire to deliver the best possible value for money by AFRICA: Madagascar. NORTH ASIA: Japan. SOUTHEAST ASIA: Malaysia, Myanmar. EUROPE: working closely together using a common framework based on respect, team development, quality and environmental Albania, Austria, Belgium, Bosnia, Bulgaria, Croatia, preservation. Czech Republic, Finland, Georgia, Germany, Hungary, The variety of manufacturing processes associated with our diverse range of products (textiles, electronics, metal Lithuania, Netherlands, Serbia, Slovakia, Slovenia, Spain, equipment, etc.) means that our supply chain is extremely complex. Switzerland, Ukraine, United Kingdom. By 2023, we hope to address this complexity by sourcing 80% of our products from 100 partner suppliers. We already had 35 by the end of 2017. BREAKDOWN OF VOLUMES PURCHASED 1,090 rank 1 suppliers 1,943 BY DECATHLON BY PRODUCTION PROCESSES* production teammates *from 1/01/17 to 31/12/2017 (suppliers of finished products and components working with suppliers on a daily basis with whom we have direct contractual relations) Nutrition: 1% Chemical and 35 partner suppliers, 9 years: average length of service for our top Textiles: 40.9% cosmetic products: 0.4% Electronics: 1.9% 13 partnerships in progress 100 suppliers in terms of volumes purchased Footwear: 15% OUR PARTNERSHIP STRATEGY Simond: 0.1% Gloves: 1.4% Our purchasing strategies have prompted us to create and coordinate a panel of suppliers with three categories: Our own production sites: Decathlon has 10 production plants where we manufacture some of our articles. In these plants, we develop the Decathlon Manufacturing Way (DMW), which aims to increase operational excellence when it comes to Metal: 6.1% Heavy stitching: 10.4% managing teams, devising continuous improvement methods and organising flows, in conjunction with our partner suppliers. Wedze composites: 0.2% Pyrotechnics: 0.2% Our partner suppliers: We develop industrial projects collaboratively and transparently with companies that share our values Plastic and Welded/inflatable products: 1.5% and our long-term Vision. We make shared commitments built on trust. By being included in our company processes, composite products: 7% Helmets: 1% entrepreneurs are driven to operational excellence with maximum independence, which prompts them to take decisions that benefit our sports users. By 2023, we hope to source 80% of our products from 100 partner suppliers. Bicycles: 11.3% Optical products: 1.6% Our suppliers: We do not pursue a strategy of exclusivity, but we cultivate lasting relationships with suppliers built on trust and performance. At the same time, so that we can better respond to local market demand and reduce the environmental impact from transport, we are pursuing our local production development strategy. All our industrial sites are subject to the same standards of quality, WORLD PARTNER FORUM safety and respect for relationships. For the third year in a row, the World Partner Forum hosted partner suppliers from 12 countries in Tourcoing, France. This event focused on transparency and aligning our values to develop lasting relationships built on trust. BREAKDOWN OF VOLUMES Southeast Asia Southwest Asia 14.3% PURCHASED BY DECATHLON 16.9% Africa 2.5% BY PRODUCTION AREA* Europe CSI* 0,3% *from 1/01/17 to 31/12/2017 16.2% We want these trust-based relationships Americas to last. We are taking this opportunity to thank North Asia < 0.1% Lionel Dias Purchasing Department our partners and confirm our wish to work 49.8% Process Organisation Leader with them in the years to come. *CSI : Commonwealth of Independent States 22 RESPONSIBILITY IN PRODUCTION RESPONSIBILITY IN PRODUCTION 23
2017 ESSENTIALS 2017 ESSENTIALS PUTTING PEOPLE FIRST PILOT PROJECTS THAT GO BEYOND COMPLIANCE In some cases, Decathlon's requirements are much stricter than local regulations in the countries where we manufacture our products. To ensure compliance with these commitments worldwide, we have developed an internal training method led by The International Labour Organisation reports that forced labour local Decathlon teams or implemented by the head office. This approach allows us to experiment and develop best practices, and child labour continue to be an international concern: in often in collaboration with outside stakeholders. 2016, there were 40.3 million victims of modern slavery13 with 152 million children forced to work. In their 17 Sustainable Development Goals, the UN set Goal 8 to “promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all”. Our responsibility is to ensure that, everywhere in the world, the HEALTH AND SAFETY DIALOGUE IN CAMBODIA working conditions under which our products are manufactured Makara PICH, Sustainable Development in Production Manager for Cambodia comply with regulations and with our own requirements in the and Leader of the Health and Safety Dialogue Pilot Project following areas: human rights, health and safety, chemical This pilot project was launched in 2017 to provide support for three factories in Cambodia. We also received help from substances, respect for the environment, the use of responsible SUS-A19, an organisation that specialises in social dialogue in the factory setting. Our approach was based on involving both materials, corruption, management and communication. employees and managers in the information, communication and decision-making processes when it comes to making These categories have been part of our Social Charter14 since 2003 and they are regularly monitored. In 2017, 69% of our progress on health and safety. Each factory faces its own challenges that we can identify using this dialogue process and rank 1 suppliers had brought human-related risks to an acceptable level15, and our goal is to reach 80% by 2019. then address as part of our continuous improvement initiative. For example, the JIT Textiles Limited plant provided all of its employees with new, more comfortable personal protective equipment and the New Wide Garment plant worked to improve cleanliness and hygiene throughout the factory and solved a temperature-related problem by installing a new cooling system and encouraging employees to drink plenty of water. 69% of rank 1 production sites rated 66% of assessments handled by Decathlon teams out of a total of A, B, or C according to our assessment criteria 1,018 assessments conducted TOGETHER FOR SUSTAINABLE BUSINESS (TSB): STARTED IN BANGLADESH AND TESTED IN INDIA AND CHINA INCORPORATING NEW ISSUES RELATED Since 2014 we have participated in Impactt's “Benefits for Business and Workers”20 programme, which allows us to work with TO OUR APPROACH INTO THE CODE OF CONDUCT supplier volunteers and their employees to co-create organisational and HR structures that involve employees in the company's vision and focus on motivation, communication and more caring management practices. We have taken the lessons learned The Decathlon Social Charter was created in 2003, and since then it has been continuously updated in light of international from this programme to develop our own methodology, based on three goals: better supplier production efficiency, employees events with a bearing on these issues (UN and OECD Guidelines16, the Rana Plaza tragedy, the UK Modern Slavery Act17, etc.). that are engaged, motivated and better paid, and more stable business partners for Decathlon. It was completely revised in 2017 to take on board new environmental and societal issues. All of the suppliers who help to The first pilot project was overseen by Rabeya Hossan, Sustainable Development in Production Manager for three suppliers: AJ manufacture Decathlon products are contractually bound to follow this Code of Conduct. Compliance with this new Code of Super Garments Ltd, Snowtex Outerwear Ltd, Tarasima Apparels Ltd. in Bangladesh in 2015. The goal was to understand how Conduct18 is verified using new audit criteria that have been brought into line with these new requirements. a more engaged human resources organisation that communicates with and motivates employees can contribute to a more Having developed a collaborative approach that is easier to adopt, our goal is to improve the skills of our suppliers so that they lasting performance. The support provided included concrete actions such as creating job description sheets, reviewing bonus will enjoy greater autonomy when it comes to complying with all these criteria every day. practices and communicating about leave. The new dialogue system reduced absenteeism and stabilised turnover. In 2017, we rolled out the project in China and India after adapting some of the motivation factors to these new contexts. REGULAR MEETINGS TO IMPROVE SUPPLIER PERFORMANCE Our teams visit our suppliers’ premises regularly, both on a daily ANIMAL WELFARE: USING CERTIFIED NATURAL FEATHERS basis – with production teams present so that they can rapidly manage and resolve non-compliant situations – and as part of Ronan LE MOGUEN, Sustainable Development in Production Manager for Human Responsibility in Production assessments: 25 Sustainable Development in Production Managers The duck feather certification project got started after several customers asked about the use of feathers in our products conduct most of these audits. Recruited locally, their understanding out of concerns about animal mistreatment, involving practices such as live plucking. To improve transparency in this area, of local culture makes it easier to detect specific challenges. we began by taking stock of our entire supply chain, from hatcheries all the way to product manufacturing. We already had They provide production teams with ongoing assessment training a traceability system in place, and we just needed to certify it. and help improve their tools and methods. Duck and goose down are by-products of food production that we recover and use in some of our winter jackets and sleeping bags because they are lightweight and retain heat well. As part of our Human Responsibility in Production approach, we decided, with input from various NGOs, that we would work only with RDS (Responsible Down Standard) certified suppliers who guarantee that their feathers and down come from ducks and geese that were raised for their meat in a cruelty-free environment. 13. h ttp://www.ilo.org/global/topics/forced-labour/lang--en/index.htm http://bit.ly/OPMDéveloppementDurable 14. Social Charter based on the Universal Declaration of Human Rights, the fundamental conventions of the International Labour Organisation and social responsibility standard SA 8000. 15. At least a C rating in our scale. 16. http://www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf 19. http://www.sus-a.com/ 17. http://www.legislation.gov.uk/ukpga/2015/30/contents/enacted 20. https://impacttlimited.com/ 18. Download the Decathlon Code of Conduct for Suppliers here: http://developpement-durable.decathlon.com/?ymm-file=1668 21. http://responsibledown.org/ 24 RESPONSIBILITY IN PRODUCTION RESPONSIBILITY IN PRODUCTION 25
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