SUMMARY SUSTAINABILITY - VITALITY AND RESPONSIBILITY

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SUMMARY SUSTAINABILITY - VITALITY AND RESPONSIBILITY
SUSTAINABILITY

       SUMMARY
2017 Sustainable Development Report
   VITALITY AND RESPONSIBILITY
SUMMARY SUSTAINABILITY - VITALITY AND RESPONSIBILITY
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
SUMMARY SUSTAINABILITY - VITALITY AND RESPONSIBILITY
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
SUMMARY SUSTAINABILITY - VITALITY AND RESPONSIBILITY
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
SUMMARY SUSTAINABILITY - VITALITY AND RESPONSIBILITY
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
SUMMARY SUSTAINABILITY - VITALITY AND RESPONSIBILITY
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
SUMMARY SUSTAINABILITY - VITALITY AND RESPONSIBILITY
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
SUMMARY SUSTAINABILITY - VITALITY AND RESPONSIBILITY
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
SUMMARY SUSTAINABILITY - VITALITY AND RESPONSIBILITY
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
SUMMARY SUSTAINABILITY - VITALITY AND RESPONSIBILITY
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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