What about a healthier - diet? Context - Carrefour Group

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What about a healthier - diet? Context - Carrefour Group
What about
 a healthier
 diet?

                                               What about
                                               a healthier
                                                                   diet?

                                                                        Context
                                                                          __
                    The food transition is one of the major challenges of the 21st century. At a global level, the dual aim
                    is to meet strong growth in demand while providing the world population with access to a healthy
                    diet. Today, more than 3.2 billion people are malnourished – whether they are undernourished or
                    overnourished(1). Diets in developed countries are deemed to be too high in calories, sugar, refined
                    starches and animal-based foods, and lacking in fruit, vegetables, whole grains, legumes and fish.
                    People have become highly aware of this imbalance and it has brought about new behaviours and
                    a change in diet in developed countries that emphasises quality over quantity, organic products,
                    taste and authenticity.

                    According to a recent survey, 64% of consumers worldwide follow a diet that limits or prohibits
                    consumption of certain ingredients. 70% say that their dietary decisions are designed to help
                    prevent health issues(2). In France, 2.6% of households have at least one vegetarian or vegan among
                    them and more than a third have at least one flexitarian, who tries to limit his or her consumption
                    of meat and other products of animal origin(3). These new choices affect the entire production and
                    distribution chain: from the emergence of new product ranges (e.g., vegan and vegetarian) and
                    the development of fair trade labels and brands to the continued growth of the organic product
                    segment, which has seen a tripling in global sales in just ten years(4).

                    In recent years, this growing awareness of nutrition-related issues has led to both governments
                    and consumers lending a great deal of their support. Improving eating habits is not a matter
                    for individuals alone: it is a societal issue that requires the support of all stakeholders to identify
                    appropriate solutions for various peoples and cultures. In this sense, retailers have a strong role
                    to play in selling healthy products and helping to raise consumer awareness of the need to “eat
                    better” in stores.

                    (1) Source: Summary report from the EAT-Lancet Commission, “Healthy Diets from Sustainable Food Systems”, 2019.
                    (2) Source: Nielsen Global Ingredients and Dining Out Trends Survey conducted in 2016 among 30,000 consumers in 63
                    countries.
                    (3) Source: Kantar LinkQ Flexitarianism Study, June 2019.
                    (4) Source: “Le bio dans le monde”, L’Agence Bio, 2017.

2019 CSR REPORT - June 2020. Verif ied information for the year 2019.                                                                    1
What about a healthier - diet? Context - Carrefour Group
What about
 a healthier
 diet?

                                                Our objectives
                                               and performance
                                                      __
                        In line with its raison d’être, Carrefour has tasked itself with providing quality services, products
                        and food that are accessible to all. Accordingly, as part of its mission to “become the leader of the
                        food transition for all”, Carrefour aims to meet its customers’ expectations in terms of nutrition,
                        and contribute to their health and well-being. The Group’s ambition is thus to enable as many
                        people as possible to eat healthily and to support the transition to healthier eating habits. In
                        more concrete terms, Carrefour wants to provide its customers with the products and tools they
                        need to adopt a tasty and healthy diet adapted to their nutritional needs.

                        Carrefour has set itself the goal of ensuring that a healthier diet action plan is rolled out in
                        all the countries in which the Group operates by 2022. This plan must address customer
                        expectations while enabling better eating and promoting food-related well-being on a worldwide
                        scale. It includes measures related to making nutritional information available to everyone,
                        communicating with customers, training employees and developing a product offer.

                        The Group has a policy based on a number of levers for action including:

                            Products: develop a healthy product offering to make it easier for everybody to eat
                             well, particularly people with specific dietary requirements. Through its own brands and
                             by developing suitable services, Carrefour facilitates access to a balanced, quality diet for
                             everybody and promotes environmentally friendly food.

                            Customers: support the transition of people’s dietary habits over to ones that are healthier
                             and better for the environment using simplified nutritional information, communications
                             programmes and sales and promotional initiatives.

                            E
                             mployees: provide employees with information and train employees, enabling them to
                            act as in-store ambassadors for the food transition about nutritional matters and healthier
                            eating habits.

                           TARGETS:

                              Guarantee optimised nutritional profiles for Carrefour’s product offering.
                              Provide clear and transparent nutritional information to the consumer.
                              1 00% of countries rolling out a Healthier Diet action plan by 2022.
                               Europe: Eliminate 1,000 controversial substances by 2022.
                                France: 7,000 products to feature a Nutri-Score by 2022.

                            NUMBER OF COUNTRIES RUNNING A HEALTHIER DIET ACTION PLAN

                                                          6                 100%
                                                                                      Target:
                   CSR
                      OOD
                AND F ION
                    NSIT
                TRA
                   INDEX                             countries out                  by the end
                                                      of 9 in 2018                   of 2020
                                                       and 2019

2019 CSR REPORT - June 2020. Verif ied information for the year 2019.                                                           2
What about
 a healthier
 diet?

                                             Our action
                                                    __
                                                        plans
                    The action plans to help us deliver on our aims and achieve our objectives are as follows:

                             1.	PRODUCTS: DEVELOP A HEALTHY PRODUCT OFFERING TO MAKE IT EASIER
                                 FOR EVERYBODY TO EAT WELL, PARTICULARLY PEOPLE WITH SPECIFIC
                                 DIETARY REQUIREMENTS.
                                 1.1.	Reformulation and optimisation of Carrefour products’ nutritional profile
                                 1.2.	Create product ranges with high nutritional value
                                 1.3.	Expand Carrefour’s vegetarian lines

                             2.	CLIENTS : ACCOMPAGNER LA TRANSITION DES HABITUDES ALIMENTAIRES VERS
                                 UNE ALIMENTATION PLUS SAINE ET RESPECTUEUSE DE L’ENVIRONNEMENT.
                                 2.1.	Provide customers with additional nutritional information about products
                                 2.2. Communicate with customers and involve them so they can “Eat better”

                             3.	EMPLOYEES: IMPLEMENTATION OF AWARENESS RAISING AND TRAINING
                                 FOR EMPLOYEES.

                    1.	PRODUCTS: DEVELOP A HEALTHY PRODUCT OFFERING
                        TO MAKE IT EASIER FOR EVERYBODY TO EAT WELL

                           “EAT BETTER” ACTION PLAN

                           Countries are required to implement the following initiatives:
                              offer healthy products by:
                              • reformulating the specifications of controlled products in order to limit, as far
                                 as possible, their energy, salt, sugar and fat (saturated and trans-fat) content.
                                 This is in response to public health priorities,
                              • eliminating controversial substances;
                              develop a specific food offering designed to tackle food-related allergens and
                              pathologies (for example: gluten-free, salt-free or reduced-salt ranges), defined
                              in conjunction with consumer and patient associations, foundations or learned
                              societies;
                              offer vegetarian alternatives and diversify protein sources (using plant proteins
                              in particular).

                        1.1. Reformulation and optimisation of Carrefour products’ nutritional
                             profile
                        The food transition means speeding up the development of products that meet new health
                        and quality requirements, while also strengthening existing ranges.

                        All of Carrefour’s own brands have been revamped to reflect the food transition. Since 2018, the
                        Group has stepped up efforts to reformulate and optimise the nutritional profile of its products
                        in all of the countries in which it operates: amongst other things, it has focused on reducing
                        the levels of sugar in its soft drinks, reducing the salt in its canned vegetables and removing
                        numerous substances (colourants, artificial flavours, disruptors, etc.). 2300 products have thus
                        been reformulated since 2018.

2019 CSR REPORT - June 2020. Verif ied information for the year 2019.                                                      3
What about
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                          COUNTRY-SPECIFIC INITIATIVES:

                                In Belgium, Carrefour products are developed in accordance with the Carrefour
                          Belgium Nutrition & Health Plan (in line with the sector-specific recommendations
                          of the Balanced Diet Convention, agreed by CARREFOUR, COMEOS and FEVIA.7,
                          among others). In 2019, 68 products were improved. This work will continue in 2020,
                          50 products have already been identified as requiring improvement based on their
                          Nutri-Score.
                             F
                              or any new Carrefour product development, fats, saturated fatty acids, trans-fatty
                             acids, sugars and salts are kept to an absolute minimum without compromising
                             their organoleptic qualities or jeopardising their stability throughout their lifetime.
                             E
                              xisting Carrefour products are improved using recipes featuring improved nutritional
                             profiles (see Nutri-Score), with a target improvement of at least 10% compared to
                             the previous recipe.

                        1.2.	Create product ranges with a high nutritional value
                        In all countries, Carrefour has created ranges of products with high nutritional values, as well
                        as ranges designed to meet specific requirements (lactose-free, gluten-free, salt-free, etc.).
                        Carrefour France, for example has worked with a nutritionist to develop Nutrition et Plaisir, a
                        new line of fresh produce. This range features balanced dishes that completely meet people’s
                        nutritional requirements. Three versions of it are available: Vitality (rich in proteins), Essentials
                        and Lightness (low fat content).

                        1.3. Expand Carrefour’s vegetarian ranges
                        Increasing the vegetable component of people’s diets is a key issue for Carrefour, which responds
                        to both:

                           a strong social trend in relation to major climate issues, protecting the planet’s biodiversity,
                           sharing resources at global level and major public health issues;

                           a commercial trend driven by strong growth in demand and market structuring.

                        Carrefour’s commitment to developing vegetarian lines focuses on offering an alternative to the
                        consumption of animal proteins. These products are suitable both for vegetarian consumers
                        and for flexitarians wishing to reduce the amount of meat in their diet. Carrefour pays great
                        attention to the quality and nutritional profile of these products.

                        Carrefour was the first French retailer to launch a vegetarian range under its own brand name,
                        with around 100 products in 2020. Carrefour has the largest range of vegetarian own brand
                        products among French retailers. In 2019, Carrefour doubled the number of products in its
                        Carrefour Veggie range (around 80 products) and continues to develop additional products for
                        the same brand within the world in 2020, with a focus on meat substitutes.

                        The Carrefour Veggie range provides nutritional benefits (fibre, protein content, etc.) and is
                        free of artificial colours, artificial flavours and GMOs. Packaging for all these products features
                        the European vegetarian or vegan label (label-V) issued by the French Vegetarian Association
                        (Association Végétarienne de France).

2019 CSR REPORT - June 2020. Verif ied information for the year 2019.                                                           4
What about
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                    2.	CUSTOMERS: SUPPORT THE TRANSITION OF PEOPLE’S
                       DIETARY HABITS OVER TO ONES THAT ARE HEALTHIER
                       AND BETTER FOR THE ENVIRONMENT

                           “EAT BETTER” ACTION PLAN:

                           countries are required to implement the following initiatives:
                              provision of nutritional information for controlled products:
                              • additional nutritional information (examples: portion information, fibre
                                 information, serving suggestions or best practices, etc.),
                              • simplified nutritional information (examples: per-serving labelling, frequency
                                 of consumption, Nutri-Score, etc.);

                              provision of information targeting our customers, raising their awareness of
                              eating well and of the environmental impact that food has, via various possible
                              communications aids:
                              • digital media: website, mobile application, etc.,
                              • shops: events with dieticians, contributions from associations, etc.,
                              • paper media: magazines, leaflets, posters, etc.

                        2.1. Provide customers with additional nutritional information
                             about products
                        Customers are provided with additional nutritional information thanks to the introduction of
                        Nutri-Scores on the packaging of Carrefour own-brand products in France and on the Carrefour.
                        fr website. This five-colour logo, which classifies products from A to E based on their nutritional
                        quality, will feature on 7,000 products in France and Europe by 2022. The Nutri-Score is already
                        deployed in France, Belgium, Poland and Spain.

                        Designed in close collaboration with Carrefour’s producers and suppliers so that they can
                        share necessary information, the Nutri-Score will be rolled out across its entire range of food
                        products. Carrefour seeks to encourage all its partners and stakeholders in the chain to join this
                        initiative and to adopt the Nutri-Score to make packaging more meaningful through a single
                        system. Carrefour is using this approach to support the food education efforts of the French
                        government by providing all its customers with clear and concrete solutions that facilitate a
                        better understanding and effective use of the Nutri-Score system.

                        2.2. Communicate and involve customers in “Eating better”
                        Various communications aids are possible:
                          Digital media:
                          • highlighting of “Act for Food” products on the e-commerce website and on the new
                              www.carrefour.com website (magazine section)
                          • display of the Nutri-Score on the e-commerce website and nutritional advice.
                          • management of discussion threads on the social networks
                          In stores: events run by dieticians, contributions from charities, suppliers, information buses,
                          etc.
                           Paper media: magazines and leaflets, posters, radio, etc.
                            For it’s 60th birthday, Carrefour organized “les Rencontres”, an educational tour through a number
                          of French cities all about the Food Transition.

2019 CSR REPORT - June 2020. Verif ied information for the year 2019.                                                             5
What about
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                          CASE STUDIES:

                                 Spain: The “Act For Food” caravan promotes good eating habits. To do this, it
                          travels to more than 40 cities in Spain over a period of several months and provides
                          visitors with opportunities to take part in fun activities (such as cooking classes, a
                          virtual tour of a farm or a game whereby they have to sort its waste).

                                 France: Carrefour provides recipes on its e-commerce site, in partnership with
                          the WWF® and with professionals such as Michelin-starred chef Jean Imbert.
                           • Carrefour and the WWF® provide recipes with a high nutritional value and which meet
                              WWF® recommendations for reducing the impact that food has on the environment
                              (preference should be given to seasonal fruit and vegetables, certified products,
                              people should consume plant proteins and reduce their meat consumption, etc.).
                              These recipes are shared on the e-commerce website.

2019 CSR REPORT - June 2020. Verif ied information for the year 2019.                                               6
What about
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                           Commitment to child nutrition:

                           Carrefour has made a powerful commitment in the area of children’s nutrition.
                           Carrefour and Nestlé – “Adopt a fruit, adopt a vegetable”: Carrefour and
                           Nestlé are joining forces to help parents give their children a healthier and more
                           sustainable diet, and to promote consumption of fruit and vegetables on a daily
                           basis. The “Adopt a Fruit, Adopt a Vegetable” initiative is part of Nestlé’s “Healthier
                           Kids” and Carrefour’s “Act For Food” projects. Deployed in stores and targeting
                           both parents and children, the operation involves selling fruit and vegetables,
                           as well as providing recipes to guide them on the best way to cook them. The
                           initiative also promotes healthier products, with whole wheat, less sugar and salt
                           and made using organic or vegetarian ranges. It will be rolled out in all Carrefour
                           hypermarkets in France at the beginning of 2020, then in Argentina, Italy and
                           then on the two companies’ other key markets during the course of 2020.

                                   Italy: the “Act for Food Kids” programme organises workshops designed
                           to teach children, using a straightforward approach and fun language, how to
                           recognise a healthy diet and how to make the right food choices. In 80 stores in
                           13 Italian regions, in collaboration with the Istituto Auxologico Italiano, Carrefour
                           held 12 food education workshops for children aged 6 to 11 in 2019.

                                  France: the Fraich’kids programme is an edutainment programme for
                           children, delivered through a partnership between a Carrefour store and a school.
                           Carrefour provides an educational kit with ideas for activities to be carried out and
                           also provides a vegetable garden square. Through this programme, children can
                           also visit stores or farms.

                    3.	EMPLOYEES: RAISING AWARENESS, TRAINING AND
                       GETTING EMPLOYEES INVOLVED IN EATING BETTER

                           “EAT BETTER” ACTION PLAN:

                           countries are required to implement the following initiatives:
                              training and awareness-raising for employees:
                              • conferences and events,
                              • training plans for all staff (especially shop staff);
                              supporting employees and getting them to adopt healthier eating habits.

                        Training is a priority for Carrefour. Every year, employees receive an average of more than 11 hours
                        of training in all of the countries in which the Group operates. Along with the mandatory topics
                        covered regarding health and safety, strategic training areas mirror the main priorities of the
                        Carrefour 2022 transformation plan: promoting the food transition and sharing examples of
                        best practice so people can eat better are the key areas in which training is given. In 2019, 9700
                        employees were trained on key topics, such as the organic market and fresh produce.

                        Carrefour is mobilising its employees around the challenges stemming from its “Carrefour 2022”
                        transformation plan. The Group has rolled out the “Act for Food Superheroes” programme to
                        showcase the work of employees who are most committed to the food transition programme
                        and encourage them to share their best practices. This programme harnesses the enthusiasm
                        of Carrefour employees to get involved in the food transition. It is part of a new managerial
                        strategy developed by “Act for Change” which strengthens employee leadership skills.

                        As part of an “intrapreneurial” mindset, everyone is able to deploy a project or an initiative that
                        serves the Group’s mission. In 2019, 870 “food transition superheroes” were identified across the
                        Group, which plans to expand this community to 2,000 members in 2020. The programme is
                        being deployed in all countries in which the Group operates. The solutions are highly diverse:
                        promoting healthy products, events focusing on healthier eating and cooking, initiatives to reduce
                        and combat waste, etc. In Argentina, Carrefour Maxi d’Ezpeleta is strengthening its commitment
                        to healthy eating. Taiwan is organising “Fun table tour” healthy cooking workshops that end
                        with tasting sessions for food prepared by chefs. The “Act for Food Superheroes” programme
                        allows teams to bring the food transition into their stores and make it meaningful to customers.

2019 CSR REPORT - June 2020. Verif ied information for the year 2019.                                                          7
What about
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 diet?

                                            Our organisation
                                                   __

                                     GOVERNANCE AND PERFORMANCE ASSESSMENT
                        The Nutrition policy is one of the priority areas making up the Carrefour Group’s food transition
                        strategy. Under the impetus of the Quality Department, the Group Strategy Department and
                        country food transition managers, action plans and roadmaps are drawn up locally in consultation
                        with all business lines.

                        The indicators monitored as part of the nutrition policy are subject to annual non-financial
                        reporting. The indicator for deployment of the “Eat better” action plans in the countries is included
                        in the “Customers” part of the CSR and Food Transition Index. This indicator takes into account
                        implementation of initiatives, in accordance with the four pillars of the Group’s policy. The CSR
                        and Food Transition Index is consolidated annually and 25% of it is used as a criterion in a long-
                        term executive compensation plan.

                                     SCOPE
                        Implementation of the “Eat better” action plans is an objective that is applicable to all the
                        Group’s integrated countries. These measures apply to all products, formats and employees.

                                     JOINT INITIATIVES AND PARTNERSHIPS
                           C ollaboration for Healthier Lives (CHL) – On s’y met: this collaborative project, led by Carrefour
                           and Danone, involves retailers and manufacturers, scientists, charities and restaurant owners,
                           all helping customers to adopt healthier eating habits in the Lyon metropolitan area. The
                           project was set up within the framework of the Consumer Goods Forum.
                           I n Spain, the CEU San Pablo University and Carrefour created the “Carrefour Chair for Food
                           and Nutrition” in 2018. This chair promotes research projects in the field of food and nutrition,
                           in order to identify both trends in consumer habits and ways of promoting healthier eating.
                           The chair also organises training activities, science days, courses, seminars and meetings
                           among specialists, as well as publishing documents and research papers on food and nutrition.

                                     POUR EN SAVOIR PLUS
                            Nutri-Score: https://www.carrefour.com/fr/newsroom/carrefour-va-afficher-le-nutri-score-sur-
                            ses-produits
                             Carrefour and Nestlé, together for children’s health: https://www.carrefour.com/fr/newsroom/
                            carrefour-et-nestle-ensemble-pour-la-sante-des-enfants
                           Collaboration for healthier lives: https://www.theconsumergoodsforum.com/initiatives/health-
                            wellness/key-projects/collaboration-for-healthier-lives/

2019 CSR REPORT - June 2020. Verif ied information for the year 2019.                                                             8
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