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SUSTAINABILITY REPORT

2017/18

Together, we create sustainable added value through value-driven craftsmanship in retail

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CONTENTS Colruyt Group & Sustainability 3 Who are we? 4 Sustainable entrepreneurship in our DNA 5 Sustainability in our organisation How do we inspire our customers? 6 Our frame of reference 7 Our benchmarks

Sustainability in figures 35 SDG 3 37 SDG 7 39 SDG 8

Our themes

8 Healthier products 9 Consuming more consciously 11 Healthy employees 12 Good working conditions

13 Reducing energy consumption 14 Producing renewable energy 15 Alternative fuels

16 Sustainable employment 18 Colruyt Group Academy for customers 19 Respecting human rights Embracing diversity 20 Making our range more sustainable 21 Consuming more sustainably Making the most of raw materials and resources 24 Our CO2 reduction plan 25 A more accurate footprint 25 More efficient refrigeration and heating 26 More efficient passenger transport 28 More efficient goods transport Modal shift

42 SDG 12 44 SDG 13

29 Reassurance - Strengthened dialogue 30 Being a reliable and honest partner

47 SDG 16 47 SDG 17

31 Partnerships in agriculture 33 Partnerships with education Partnerships with and for young people globally 34 Partnerships in the blue economy

I am delighted to present this Sustainability Report to everyone who takes a close interest in Colruyt Group: citizens, consumers, public authorities, interest groups, investors and so on. A true first, as this is the first time that we have reported in a structured manner on the social added value that our group creates. We have taken as our springboard the major social phenomena: climate change, the energy issue, health and well-being for all and the quest for more conscious consumption patterns. All of these themes are reflected in the United Nations’ 17 Sustainable Development Goals (SDGs). These goals form a coherent framework on which to hang this report, in line with our holistic social vision. It is up to us to formulate suitable responses to the major social themes, according to the requirements of our stakeholders. We prefer to work out these responses in dialogue with partners: together we can take meaningful, practical initiatives and help bring simplicity to complexity. This report contains the key themes on which we have an impact as an organisation, plus some key figures relating to our commitments. Sustainable entrepreneurship remains a learning process, a task that is never complete. This report is not ‘complete’ either, but it provides a good picture of where we currently stand. Meanwhile, we continue to work on specific ways of further expressing our social responsibility. We look forward to hearing what you think of this. That way, we can learn and improve, step by step.

Jef Colruyt CEO Colruyt Group

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WHO ARE WE? FAITH

RESPECT

Over half a century Colruyt Group has grown from a family business into a family of companies with more than 29.000 employees. For a long time, we were primarily known for our discount store, Colruyt Lowest Prices, but over the last twenty years we have greatly diversified our activities. After an often modest start, most formulas have since grown into fully developed retail companies, with their own brand promise and target market. Retail accounts for 83% of our group revenue. This includes all stores and webshops under our own management: Colruyt Lowest Prices, Collect&Go, OKay, Bio-Planet, Cru, Colruyt Prix QualitĂŠ (France), Dreamland (Belgium and France), Dreambaby and Collishop. The group also has stakes in clothing chain ZEB, in webshop MyUnderwear24 and in online pharmacy Newpharma.

All of our commercial activities and support services are located in Belgium, Luxembourg, France, India and Hong Kong. You can find more information about our activities on pages 43-97 of the annual report.

SPACE

READINESS TO SERVE TOGETHERNESS

COURAGE

Total group revenue

7% Other

10% Wholesale and Foodservice

The wholesale and foodservice segments account for 10% of revenue. Retail Partners Colruyt Group delivers to independent entrepreneurs from Spar, Alvo and Mini Market and other independent retailers. Codifrance delivers to affiliated stores of Coccinelle, Coccimarket and Panier Sympa and other independent retailers in France. Solucious provides foodservice in Belgium, Colex handles exports. Finally, we are also active in fuel distribution (DATS 24), print & document management (Symeta) and in the production of green energy (Eoly). Through our stake in holding company Parkwind, we also invest in offshore wind farms off the Belgian coast.

HOPE

SIMPLICITY

83% Retail

Geographic segmentation of revenue 93,1% Belgium 6,4% France 0,5% Other

Colruyt Group & Sustainability

Our themes

STRENGTH

Together, we create sustainable added value through value-driven craftsmanship in retail All businesses of Colruyt Group have one common identity and culture, summarised in our mission statement: together, we create sustainable added value through value-driven craftsmanship in retail. In order to realise this, every day we are inspired by nine group values: respect, simplicity, readiness to serve, togetherness, faith, hope, space, courage and strength. Our values ensure that we speak the same language throughout the group. The application of these values, as in our equality principle or our striving for efficiency, forms the basis of our sustainable entrepreneurship.

Sustainability in numbers

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sustainability has been firmly on the agenda.”

In other words, from economic necessity to formal commitment?

Sustainable entrepreneurship in our DNA Sustainable entrepreneurship is in Colruyt Group’s blood and runs as a common thread through all our operations. At the same time, starting with an economic impetus, we also aim to bring about a positive social and ecological dynamism with long term results in mind. And with ambition, since we want to be a reference point and source of inspiration for sustainable entrepreneurship in Belgium, says CEO Jef Colruyt. How did that dedication to sustainability come to be in the Colruyt Group DNA?

Jef • “It started ‘as if by chance’ in the ‘60s, when we transitioned from a wholesale business to a chain of individual discount shops. These were very rudimentary stores, with the main advantage that they were cheaper than our competitors. However, to deliver on that promise, we had to make

savings where we could. We thought up lots of creative solutions for this, such as removing half of the fluorescent lights or only using closed chest freezers. Over the years, it has become second nature for us to deploy the available resources as effectively and as efficiently as possible. At the end of the ‘80s, we realised that in this way, we were actually engaged in sustainable entrepreneurship. Ever since,

Colruyt Group & Sustainability

Jef • “Yes. Our longstanding dedication to a cost-aware and efficient approach gradually evolved into a broader ethical awareness and sense of responsibility. So, when we now deploy raw materials, energy and human effort in a sustainable way, we don’t just do this out of economic considerations. Out of respect for people and the environment, we also want to help create a better world, today and for future generations. At the start of the 2000s, we set out that aim in a manifesto: “Starting with an economic impetus, we create a positive social and ecological spiral. We believe that, in this way, our entrepreneurship drives sustainable change”. And since 2008, the notion of ‘creating sustainable added value’ has literally formed part of our mission.”

What role do we play in the chain?

Jef • “As a retailer, we occupy a unique, strategic place in the chain, between consumer and producer. We want to use this position to bring the various actors together and formulate common goals. We’re committed to this kind of chain approach because we

Our themes

Sustainability in numbers

believe that only together we can make a meaningful difference and really generate sustainable added value for every link in the chain. In practice, we fulfil our central role in two ways. First of all, we set up many sustainable initiatives of our own, often together with a wide variety of partners. At the same time, we want to help raise awareness around sustainability and, where possible, inspire people to take action themselves: employees, customers, partners and so on.”

How far do our ambitions for sustainability extend?

Jef • “Very far, we want to be a reference point for sustainable entrepreneurship in Belgium. We’re putting a lot of resources into this. For example, lots of our employees devote themselves full time to making our operations more sustainable: from reducing CO2 emissions, to making products healthier, to improving animal welfare among our farmers. We’re very proud of what we’ve already achieved in this area over the years. But we also realise that sustainable entrepreneurship is never complete. We set things in motion, define good practices, acquire new insights and make adjustments. In this way, we are constantly dedicated to making a meaningful difference together, step by step.”

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Sustainability in our organisation ‘Creating sustainable added value’ is at the heart of our mission. But how do we ensure that all parts of the group actually think sustainably? We define our vision, strategy and objectives in the area of sustainability at the level of the organisation as a whole, under the leadership of CEO Jef Colruyt. To permanently embed and track the theme within the organisation, we have split it into three pillars: People, Product and Environment, headed by members of the management team.

People

Liesbeth Sabbe, People & Organization Manager

Environment

Koen Baetens, Technics, Real Estate & Energy Manager

Sustainable entrepreneurship extends further than our own modus operandi. Through relevant ranges, information and inspiration, we also want to enable consumers to consume more sustainably. For this reason, we conducted a detailed survey among our customers. What troubles them? With what practical tips and simple solutions can we inspire them? From the survey, we distilled four themes that are close to consumers’ hearts: health, society, animal welfare and environment. We used their input to give concrete expression to the themes and enrich our vision. In this way, the interaction between business and consumer creates maximum added value.

Product

Stefan Goethaert, Fine Food Manager

Sustainability is relevant to all of our commercial activities and corporate services, which are frequently involved in many sustainability projects. The operational services are therefore amply represented in the various working groups and meetings in this area and the ‘Sustainability’ board. The working groups meet regularly and board and other meetings are held at least four times a year. In addition, we set out our vision, strategy and objectives for directorates, future boards and many other consultative bodies on a regular basis.

Colruyt Group & Sustainability

How do we inspire our customers?

Our themes

Each of the four sustainability themes was given a recognisable icon, which we are using more and more frequently in our communication for Colruyt Group and the various store formulas. This means that consumers can easily find the information and products that allow them to make conscious, sustainable choices.

Sustainability in numbers

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Our frame of reference Seventeen SDGs as the perfect frame of reference for sustainability We have made a conscious decision to measure our efforts towards sustainability against the United Nations Sustainable Development Goals. We are 100% behind this internationally recognised sustainability agenda.

The seventeen Sustainable Development Goals closely match our broad interpretation of sustainability and our holistic view of society. Accordingly, as one of the first ‘Voices’ or ambassadors of the SDGs in Belgium, in 2017, we made a formal commitment to spread the goals more widely among the general public and all of our partners. In this way, we want to inspire people and organisations to contribute to the realisation of the SDGs.

Commitment in five themes We strongly believe in the principle that all sustainable development goals have equal weight, are connected and constantly interact with one another. The seventeen goals fall under five themes on which the UN intends to focus and to which we are also committed.

We also believe that the SDGs will grow hugely in importance. The international consensus around the goals and the language used makes it easier to combine forces in a targeted way and to make more progress together, on a local and a global scale. Finally, we also identify with the belief in a bigger story, in the common quest for a shared goal that also meets the needs of the individual partners.

• People: we are committed to a safe, respectful environment in which everyone feels valued. • Planet: we want to generate an impact that is positive for the whole ecosystem and all partners in the chain.

People

Planet Sustainable Development

Partnership

Prosperity

Peace

• Partnership: we prefer to work closely with partners in the chain, knowledge institutions, interest groups, etc. • Peace: through a positive view of society and values such as faith and hope, we want to make a meaningful difference, in dialogue and full transparency. • Prosperity: starting with our economic impulse, we want to contribute to prosperity and wellbeing, with respect for people and environment.

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

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Our benchmarks Seven SDGs to report on Within the broad framework of the United Nations sustainability agenda, we have selected seven SDGs. These will serve as a benchmark for our sustainable entrepreneurship in years to come.

Colruyt Group: Voice of the Sustainable Development Goals

In order to set relevant, specific benchmarks, we performed a materiality analysis last year. First of all, we made an inventory of the group’s main sustainability projects. Then we investigated the extent to which each of the 150 projects contribute to the realisation of one or more of the seventeen SDGs. We found that most of our projects impact on seven specific SDGs. We report on these seven sustainability goals below. With respect to our materiality analysis, we have mostly based this report on the data for Colruyt Group in Belgium, since more than 90% of our activities are concentrated there. This is a first step. We are committed to gradually expanding the scope of the Sustainability Report in the coming years. From now on, the risks associated with the seven sustainability goals selected will be analysed and managed in a structured and systematic manner. This will be done using Coris, Colruyt Group’s enterprise risk management platform.

In the second part of this report, we explain how we already contribute to the realisation of the selected SDGs today. In the third part, we illustrate per SDG how we are progressing with several specific commitments. Leading up to the Sustainability Report for the next financial year, we plan to carry out another more extensive survey of all of our internal and external stakeholders. This exercise is in full swing at the time of publishing this report.

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

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GOOD HEALTH AND WELL-BEING Everyone has the right to good health and wellbeing. As a retailer, we take responsibility for promoting the health of both employees and consumers where possible. In this section, we discuss health and well-being primarily from a physical and mental point of view.

We are continuously improving the nutritional value of our own-brand products.

Healthier products We work with our suppliers and our own production departments to continuously improve the nutritional composition of our own-brand products. In doing so, we follow a detailed step-by-step plan and involve consumers to taste and assess the adapted products. During the last three years, we have improved 177 products, mainly by reducing the salt, fat and sugar content. We achieved the most impressive results for three pasta sauces (-8,6 tonnes of fat per year), four packaged loaves (-8,4 tonnes of salt per year) and eleven breakfast cereals (-154,6 tonnes of sugar per year). Reduction/increase

2014-2015 (93 products)

2016-2017 (84 products)

Fat

- 66 tonnes per year

- 106 tonnes per year

Saturated fat

- 41 tonnes per year

- 113 tonnes per year

Sugar

- 250 tonnes per year

- 132 tonnes per year

Salt

- 9 tonnes per year

- 140 tonnes per year

Fibre

+ 18 tonnes per year

+ 6 tonnes per year

We also want to make a balanced diet more accessible in the workplace. To this end, we are running specific campaigns for sales, logistics and central services, including raising awareness of healthy snacking and updating the offer in the canteens.

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

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We consider it our social responsibility to introduce healthier products to the market and make our range more sustainable. At the same time, we want to help consumers gain a better insight into what they eat and make appropriate choices.

Consuming more consciously Colruyt Group was involved from the start with EIT Food, a European partnership of more than fifty leading companies, universities and research institutions. Our aim: to enable consumers to make healthy, more personalised choices, in a simple and well-informed manner. In doing so, we will listen to and work closely with consumers, and work towards greater confidence in the food chain.

To this end, we are researching a diary app in which people can record their eating habits and get advice from dieticians; the use of vegetable proteins as potential sweeteners in products including bread and ice cream; tools for calculating the environmental impact of products and enthusing consumers about a healthy diet with a lower impact. Finally, we are organising a competition between six teams of university students to reduce and upgrade the waste flows from bread, bananas and potatoes.

In addition to this, the partners are investing EUR 1,2 billion over a seven-year period in innovation and making the food chain more sustainable. Our group is involved in three approved innovation projects and one educational project covering the 2018 calendar year and representing an investment of EUR 3 million by Colruyt Group.

Alongside this, we have our own initiatives to enable consumers to make more conscious and healthier nutritional choices. To this end, our SmartWithFood start-up (an R&D team of twelve retail experts, scientists, dieticians and IT specialists) has analysed around 20.000 food articles. Each individual ingredient was linked to intolerances to gluten and lactose, specific dietary preferences, nutritional values, alcohol content, vegetarian and vegan criteria.

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

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We then input these clear product data into a number of applications, including the SmartWithFood app for smartphones. The user sets up his profile (vegetarian, vegan, gluten free, etc.) once, scans the barcode of a product, sees instantly whether it matches his personal dietary profile and also receives alternative suggestions. In addition, the database makes it possible to identify the health value of products. Based on this, we can make recommendations in our canteens, for example, to encourage employees to eat more consciously and healthily. There is also the CuliScan app, with which the consumer can scan the ingredients for a recipe, which the app then translates into an actual shopping list.

Finally, we endeavour to make a healthy and balanced diet truly accessible to everyone. That is why we are proud of our ‘Dinner is served at 1-2-3 euros’ concept, a booklet published every two weeks containing six delicious, healthy, easy and child-friendly recipes costing a maximum of 1, 2 or 3 euros per person. Over 2.400 families have already registered in just eighteen months. We reach them via partnerships with social organisations such as OCMW, CAW and Kind&Gezin in 110 Belgian towns, cities and municipalities. Our welfare department also distributes the booklet to employees experiencing financial hardship.

2.400

20.000

families receive easier access to delicious, balanced food thanks to the ‘Dinner is served at 1-2-3 euros’ programme

food articles for which we manage complete and accurate data

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

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Healthy employees In a people-oriented company such as Colruyt Group, we aim for healthy employees who feel good about themselves and their jobs. Long before legal requirements came to apply in this area, several departments were already taking many initiatives to improve physical and mental health. For example, we conduct personal development interviews on a regular basis and, for decades, we have run a wide range of training courses for personal growth, ranging from assertiveness to body language and leadership. During 2017 and 2018, 4.574 colleagues have registered for a total of 472 sessions. We are also fully committed to prevention. For example, we help employees stop smoking through information campaigns and training sessions and offer them free flu vaccinations. For mental well-being, for years we have had quiet rooms to which people can simply withdraw. Employees can also enrol for courses such as back school, mindfulness or bodywork. And, on more and more sites, they can take part in free relaxation sessions such as yoga or Qi Gong during their lunchbreak.

8.667 free flu vaccinations in the last two years

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

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In addition, we have developed good methods for supporting well-being economically and limiting the impact of ergonomic and safety risks. When employees have been off sick for long periods, we make an effort to encourage their reintegration into the workplace, primarily by staying in touch with them. Over the last few years, eight employees from our psychosocial department have contacted and supported some 1.500 long-term sick colleagues. A successful initiative, since long-term sick store employees now return to work one month earlier on average via our own rehabilitation programmes. By the end of 2018, we aim to reach all long-term absent employees via our own programme.

Healthy employees who feel physically and mentally well are motivated employees. This benefits them first of all, but also our company.

Good working conditions We also care about the well-being and health of our suppliers’ staff in at-risk countries. For this reason, we commission regular welfare checks there. Read more on page 19.

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

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AFFORDABLE AND CLEAN ENERGY Affordable and clean energy is an outstanding theme which affects almost everyone, wherever they are in the world. We therefore take responsibility and follow a dual approach. On the one hand, we reduce our consumption as far as possible, whereas on the other hand, we are also actively involved in producing renewable energy ourselves.

Reducing energy consumption Taking care of the available resources is in our genes, including when it comes to electricity, gas and fuel for heating, refrigeration or transport. With success: thanks to many energy-saving measures our consumption (in comparison to revenue) fell by more than 10,5% in 2017 compared to the reference year of 2009 (from 62,92 to 56,28 MWh per million euros of revenue). We aim to increase this reduction to 14% compared to the same base year in 2020. To this end, we monitor our energy consumption and existing energy-saving measures closely. At the same time, we estimate future energy consumption and list new measures. Here, we focus on a number of areas in which we can achieve the greatest efficiency gains, such as heating, refrigeration, passenger and goods transport. In addition, we are switching to LED lighting everywhere, for example. In 2017, this was installed in our head office in Halle and all of our new and renovated stores and store car parks. We are already saving around 7.500 MWh of electricity per year at our head office alone. We now also have highly energy-efficient data infrastructure and IT equipment. For example, our latest two data centres achieve an average PUE (Power Usage Effectiveness) of 1,34 in 2018, compared with 2,40 in 2007. We recover the heat produced by the IT systems to heat the offices. And, of course, the data centres run entirely on green energy which we generate ourselves locally.

- 10,56% reduction in energy consumption in 2017 compared with base year 2009 (in comparison to revenue)

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

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The majority of our server park (93%) consists of virtual servers with an output of just 25 Watts, or ten times less than the previous physical servers. Our PC infrastructure has also become much more energy-efficient thanks to the switch to virtual PCs with an output of just 5 Watts (963 devices operational by the end of 2017). That is four times less than the already efficient blade PCs we had been using since 2009. Finally, we pay special attention to the energy-efficiency of our stores, of course. Since 2012, we have built only low-energy stores in Belgium and Luxembourg: thoroughly insulated, highly airtight, with LED lighting and heat-recovery ventilation installed. By the end of 2017, we had already built 73 new stores according to the low-energy design. At the same time, at the end of 2016, we launched a large-scale operation to give all existing stores built before 2007 an energy upgrade. We will install extra insulation in every store that is renovated or extended and make it more airtight, so that it comes close to the performance of a low-energy store. By the end of 2017, we had already upgraded fourteen stores and a further seven were completed by the end of 2018. By 2029, we aim to refurbish 234 existing stores to make them more energy-efficient.

EUR 35 million investment in energy-saving conversion of 234 stores in the period 2016-29

Colruyt Group & Sustainability

Producing renewable energy Colruyt Group has run entirely on green energy since 2010 in Belgium and since 2016 in France. The energy comes partly from our own sustainable energy producer, Eoly, which already covered 30,6% of our total consumption by the end of 2017. Alongside this, we purchase green energy with guarantees of origin, but it is our ambition to produce all of the energy we require sustainably ourselves by 2022. Energy production by Eoly

Capacity

CO2 reduction per year

14 wind turbines

34,2 MW

- 18.471 tonnes

54 solar energy systems

7,5 MW

- 1.980 tonnes

Cogeneration

1,8 MW

- 545 tonnes

Producing renewable energy is one thing, we also want to manage our capacity and the energy produced smartly. In order to align production and consumption as closely as possible, we connect our energy plants to local sites, which receive the power directly. We also have software which continually calculates the optimal balance between consumption and production. As a result, our four connected sites achieved impressive results in 2017: 66,2% average synchronisation (balance between production and consumption) and 86,5% average coverage rate (coverage of total energy requirement). Finally, we are also working on increasing public support for renewable energy, for example via Eoly Cooperative. Colruyt Group also supports the transition to a more sustainable energy supply through its majority stake in holding company Parkwind, which develops, finances, builds and operates offshore wind farms.

Our themes

520.000

The Parkwind group produces 1.820 GWh, the equivalent of the annual energy consumption of 520.000 households

Sustainability in numbers

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Alternative fuels Colruyt Group is fully committed to finding alternatives to conventional fuels. For example, in recent years, we have consistently promoted and facilitated the use of CNG (Compressed Natural Gas), the most sustainable fossil fuel at present, for vehicles. CNG is now well embedded in the company (see figures on p. 27) but is also steadily gaining in familiarity among the general public. This is largely due to our fuel specialist DATS 24, which already offers natural gas at 55 stations. DATS 24 also organises regular ‘Greener on the road’ workshops for members of the public covering tips for consuming less, all about driving with natural gas and electric vehicles and of course test drives as well. Eighteen sessions are already planned for 2018, with 25 to 30 participants each, while regular inspiration sessions around sustainable mobility are held for towns, cities and municipalities.

58 electric charging posts installed at 57 stores and one office building

We also promote electric vehicles among citizens and our employees, although we realise that the limited autonomy and high price of electric cars remain obstacles. Nevertheless, we have begun to develop a network of electric charging posts in Belgium, where DATS 24 offers 100% green electricity only. In 2018, 57 stores and one office building were already equipped with charging posts. In 2021, we want to expand the network to 200 charging posts, by 2030 we want nine out of ten stores to have charging posts (if there is sufficient demand and if technically and economically feasible).

Colruyt Group & Sustainability

Our themes

100% of our hydrogen is produced using renewable energy

Finally, we strongly believe in hydrogen as the ideal fuel of the future. This is because hydrogen-powered vehicles only emit harmless water vapour. In addition, we produce 100% sustainable hydrogen ourselves using renewable wind and solar energy. Our hydrogen fuel station has sufficient capacity to serve 200 vehicles and also acts as a storage buffer for locally produced green energy. Thirty logistics vehicles already run on hydrogen and by the end of 2018 we will have 75 extra vehicles in use. In October 2018, we will open the first public hydrogen station.

Sustainability in numbers

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DECENT WORK AND ECONOMIC GROWTH One of the main requirements for sustainable economic growth is that this is achieved in a socially acceptable way. For this reason, we do not merely create jobs, we also allow our employees to be themselves and give them every opportunity to grow. In addition, we work to ensure the right working conditions at our suppliers in other countries.

Sustainable employment Over the years, Colruyt Group has grown into one of the largest private employers in Belgium. At the end of March 2018, we employed a total of 29.388 people, representing 178% growth since 2001. This is through sustainable job creation, as a result of the steady growth of our business. For example, during the current decade, we have created a thousand new jobs net each year. We are also committed to decent work and offer our people a permanent full-time contract as standard.

Employees at 31/3/2018 Male Female

Colruyt Group & Sustainability

17.763 (60,40%) 11.625 (39,60%)

White-collar Blue-collar

6.222 (21,20%)

Full-time Part-time

6.108 (20,80%)

Our themes

Sustainability in numbers

23.166 (78,80%) 23.280 (79,20%)

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Decent work also means that we want to offer our people the prospect of a sustainable career. This need not be in the same job, so we encourage job mobility within our company. During the last three years, on average, 781 employees changed jobs, enriching themselves and the company. To inspire them to get to know themselves better, we offer the ‘Drive your own career’ course, which was taken by more than 114 employees in 2017. In addition, 257 colleagues have used our orientation unit for executive roles during the last three years. Finally, we also always see a large number of people who have worked for us as students (6.003 in 2018) move on to a permanent job with us. Our employees are and remain our greatest asset. For this reason, we constantly encourage them to grow as a person and in their job. Through Colruyt Group Academy, offer a wide range of job-related and growth training courses. In 2017, 17.600 colleagues participated in one or more courses.

3,16% of our total labour costs in Belgium during the last financial year were invested in education and training (investment of EUR 38 million)

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

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Colruyt Group Academy for customers Alongside all of the training courses for employees, Colruyt Group Academy also runs a wide range of workshops for private individuals. The Academy has existed for more than five years and organised precisely 2.476 workshops for 29.066 participants during the last financial year. It has nine permanent sites in Halle (2), Leuven, Grimbergen, Hasselt, Namur, Mons, Liège and Ukkel. The Academy plans to offer workshops on twelve sites by 2020.

At Colruyt Group, employees can count on a fair remuneration package with attractive fringe benefits. Through a system of profit sharing, we reward them for their contribution to the company’s growth. They also have the opportunity to subscribe to the annual capital increase on preferential terms. In 2017, 2.182 employees subscribed to 260.458 shares.

EUR 26,7 million profit share divided between 25.386 Belgian employees in 2017/18

The health and well-being of our employees are close to our hearts. For this reason, we remain dedicated to our Solidarity Fund, which is more than half a century old. Nearly seven out of ten employees are voluntary members and contribute EUR 2,25 of their salary every month. The company doubles their contributions, thereby providing financial and social support for employees who are going through a difficult period for medical reasons. For the last three years, the fund has paid out an average of EUR 918.000 each year. Finally, as a people-oriented company, we create a pleasant working environment in which our people can experience empowerment and job satisfaction. This human resources policy pays off, since, with an average turnover of 8,07% for the last three years, we are clearly an attractive and stable employer for many employees. Employees who feel good and experience job satisfaction are more customer-oriented and perform better. A pleasant working environment and an attractive remuneration package enable us to attract and retain talent.

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

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Respecting human rights As a value-driven company, we obviously approach all of our activities with respect for human rights. All employees can rely on their rights being respected, regardless of nationality, religion, ethnic origin or any other status. To this end, we not only comply strictly with employment law, but also facilitate a well-functioning social dialogue. Through education and training, we encourage our employees to treat one another with respect. And our managers are trained in mediation in case of conflict. Since human rights are universal, we ensure that they are respected by our trading partners too. For example, our suppliers in at-risk countries (outside Europe) have to meet a set of social standards, in line with internationally recognised conventions. To form a picture of the working conditions locally, we commission social audits there or rely on the results of audits requested by our industry peers. In 2017, a total of 596 social audits were carried out on producers from whom we purchase products directly for our house brands. We commissioned 176 of these ourselves. In Non-food, all of our existing suppliers have already been audited, in Food, audits have taken place of all of our industrial producers at the end of the chain (i.e. not of the sometimes hundreds of small farmers supplying them). All audits are carried out in accordance with the methodology of internationally recognised organisations such as the BSCI (Business Social Compliance Initiative) or an acceptable alternative.

Social audits 2017 Non-food Food

384 audits of 360 producers 212 audits of 192 producers

Colruyt Group & Sustainability

Embracing diversity

82

Based on our core value of ‘respect’, we pay particular attention to diversity. In practice, this mainly means that we nationalities employed treat all employees equally, regardless of in Belgium culture, language, gender or nationality. Everyone is given the same opportunities, on recruitment and for promotion, in the composition of teams and in day-to-day collaboration. We have formalised this commitment, including by signing the VOKA charter ‘Employers against racism’ and the VKW charter ‘Entrepreneurs for diversity’. We consider that collaboration between people from different backgrounds enriches people and the organisation. We also endeavour to ensure that this collaboration works smoothly in practice. To this end, in 2017, more than 800 employees were able to take lessons in ‘Dutch or French in the workplace’. In addition, we have set up a training course on intercultural communication, originally to support the collaboration with the 408 colleagues from our IT department in India. This training course is now also taken by recruiters and heads of logistics and sales.

Our themes

Sustainability in numbers

19


RESPONSIBLE CONSUMPTION AND PRODUCTION As a sustainable retailer, we want to make it easy for our customers to consume more responsibly and consciously. To this end, we improve our range and inspire our customers to adopt a more responsible lifestyle. We do this, for example, by continuing to pass on our knowledge and expertise and, of course, by using raw materials and resources very responsibly ourselves.

Making our range more sustainable Together with our production partners and suppliers, we systematically improve our private labels, in both Food and Non-food. In 2012, we launched a catchup campaign and, as a result, in the last five years, we have managed to make all 2.100 own brand products of Colruyt, OKay, Spar, Dreamland, Dreambaby and Solucious more sustainable. All of these products have been improved in terms of one or more parameters: ecologically, economically, socially. For food products, in many cases, we have also made progress in the area of health. In this ongoing process, we prioritise the ranges that have the most impact. To identify them, we assess all products every year against the seven WWF criteria (and 36 subcriteria): animal welfare, biodiversity, soil, climate change, ecotoxicity, in/out optimisation and water.

In Colombia and Burundi we are building a more sustainable supply chain, together with local coffee farmers.

Improved high-impact product categories • wood • wild fish • farmed fish • palm oil • soya • eggs

• coffee • cocoa and chocolate • paper • cotton • meat

We often work on the basis of our own models, such as particular specifications for meat and eggs. We also base ourselves on globally recognised certifications, such as Rainforest Alliance, Fairtrade and FSC. Finally, we set up sustainable chain projects together with recognised NGOs and local actors, then sell the end products. These chain projects often operate in conjunction with our Collibri Foundation education fund, which also supports training projects in most countries of origin.

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

20


Consuming more sustainably To reinforce more sustainable consumption patterns, we do not just make constant improvements to our range. Especially for food, we also work hard on the health aspect. For example, we systematically improve the nutritional composition and invest heavily in technology for personalised diets. At the same time, we provide consumers with clear information and inspiration, so that they can make more considered choices and consume more consciously. Here, we focus on four themes that are close to citizens’ and our own hearts: health, society, animal welfare and environment. Each of the four sustainability themes has a recognisable icon, which we are using more and more frequently in our communication. With Colruyt Group Academy, we go a step further and offer workshops at which people get to grips with relevant themes: from cooking with leftovers to eco-friendly cleaning and greener driving.

Making the most of raw materials and resources Through circular thinking, we produce less waste and reduce demand for new raw materials. In turn, this can relieve the pressure on rising raw material prices. Treating raw materials and resources with care is in our nature. Firstly, we do a great deal to reduce waste, thanks to intelligent stock management, accurate sales forecasts and optimum storage, including during transportation, for example. Secondly, we sort thoroughly at the source - in the stores. Paper and cardboard, plastic, wood, glass, bread, fermentable and residual waste are sent separately to our return centres, where they are sorted more finely. By sorting better and better year after year, we manage to recycle more and more waste and incinerate less. In this way, in 2017, we easily reached our target and made good use of 82,71% of our total waste and surplus products. In the coming years, we want to achieve a recycling rate of at least 80%.

Colruyt Group wants to add value by bringing simplicity to this complex world. Accordingly, we want our customers to be able to make the right choices simply, and to be able to choose our house brands with peace of mind. For this reason, we have already worked hard to make our products more sustainable - economically, ecologically and socially. In this way, we are also responding to growing awareness among consumers of the environment and health.

Colruyt Group & Sustainability

In 2017, our recycling rate rose to a record level of

82,71% Our themes

Sustainability in numbers

21


As a retailer, we naturally make every effort to prevent food waste and surpluses. When we do encounter food losses, we try to make the most of it. Uncooked food which can still be safely consumed preferably goes to human consumption, via donations to social organisations such as foodbanks. We always go for the most sustainable solution. For example, we make the most of old bread by having it processed into animal food. Finally, there is still some food waste which is not - or no longer - fit for consumption. Most of this is fermented, generating green energy, while rind and bones have useful applications in biochemistry. Whatever is left over is incinerated (with heat recovery). Naturally, we do everything we can to reduce this residual fraction even further.

Processing of food losses Human consumption Animal food

1.956 tonnes of consumable food donated to foodbanks in 2017, compared to 336 tonnes in 2009

Colruyt Group & Sustainability

Our themes

2009 2017

2,3% 9,3%

2009 0% 2017

Biochemistry

2009 2017

Fermentation

2009 2017

Incineration

2009 2017

18,5% 7,4% 10,3% 51,8% 10,1%

Sustainability in numbers

65,1%

25,1%

22


Water is one of our most valuable natural resources, available stocks of which are under pressure worldwide. We therefore use it sparingly: firstly, we limit our consumption, secondly, we engage in water treatment and take the pressure off the mains water network.

We are also mindful of the sustainable use of materials in construction and refurbishment. Accordingly, we are currently testing circular construction methods, so that building materials can be recycled as much as possible following demolition. For example, brick facades can be built using click systems instead of mortar. When carrying out refurbishments, we try to avoid loss of value of materials and consumption of primary materials as far as possible. For example, we have our partner Nearly New Office Facilities freshen up old office furniture so that we can recycle it. We also recycle doors, partitions and windows, keeping some for ourselves and making some available for free to youth organisations.

EUR 55 million

Since 2014, our meat processing division Fine Food Meat has treated all of its waste water, to recycle it in the production process. With 81.000 m³ of treated waste water per year, the production department covers nearly half of its total water consumption. The saving on mains water matches the average annual consumption of 920 households. Since the beginning of 2017, our production site also has a system which treats the rainwater collected, turning it into drinking water. In the first year, the system has already delivered 2.624 m³ of drinking water.

Water consumption Colruyt Group Belgium 2017 (566.000 m³) Mains water Treated waste water

is invested by us annually in the sustainable refurbishment of office buildings and distribution centres in Belgium

Colruyt Group & Sustainability

Our themes

64% 15%

Rainwater

11%

Well water

10%

Sustainability in numbers

23


CLIMATE ACTION To tackle global warming and improve air quality, we constantly endeavour to reduce our CO₂ emissions. For this reason, we are committed to saving energy and seek smart, more sustainable solutions for refrigeration, heating, transport, logistics and so on.

Our CO2 reduction plan

To actually reduce our greenhouse gas emissions, we have already identified all sources of these emissions and set priorities. In 2012, we set ourselves the target of reducing our CO₂ emissions (in comparison to revenue) by 20% by 2020, compared to the base year of 2008. Since then, we have followed a CO₂ reduction plan focussing on refrigeration, heating, lighting and transport. Compared to the base year of 2008, we already managed to reduce our emissions by 7,4% (in comparison to revenue) in 2017. We monitor our emissions according to the Greenhouse Gas Protocol (scope 1 and 2). Besides direct emissions, we therefore also measure emissions resulting from the purchase of electricity, heat, steam and refrigeration.

Relative greenhouse gas emissions *

2008

2017

16,48 tonnes

15,26 tonnes

* Expressed in tonnes of CO₂ equivalent per million euros of revenue

Expected change in our direct CO₂ emissions in comparison to revenue 18 tonnes 17 tonnes 16 tonnes 15 tonnes 14 tonnes

-20%

13 tonnes 12 tonnes

-34%

11tonnes 10 tonnes

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

24


A more accurate footprint There are of course more factors that have an environmental impact besides CO₂ emissions. By identifying them all, we can assess our ecological footprint accurately and go about reducing it in a more targeted way. To this end, we are investing around EUR 800.000 in two projects over seven years. Firstly, we have helped develop a European methodology for calculating the environmental impact of retailers: the Organisation Environmental Footprint Sector Rules (OEFSR). Our experience, knowledge, research and testing were a significant and necessary input for the recently approved rules. In accordance with this methodology, for the first time, we have calculated our impact in fifteen categories - from land use to particulate emissions to water pollution. This has enabled us to identify the high-impact processes, such as transport and refrigeration. We have since successfully applied this approach in no less than eleven test cases, including organic fruit juice, biodegradable bags and Belgian blue beef. In the second project (Chain Environmental Footprint), we investigate the environmental impact of a product throughout its lifecycle, from composition and production to transport and waste processing. The first application to the new Boni Selection nappies is already delivering a CO₂ reduction of 5% or 400 tonnes per year.

EUR 800.000 Investment over seven years to calculate the ecological footprint

More efficient refrigeration and heating Adequate refrigeration of fresh and frozen products is vital for us as a food retailer. Through more efficient and eco-friendly refrigeration, we can also substantially reduce our climate impact. For this reason, we have developed the ‘Liquid Ice Container’. This mobile refrigerated container for temporary storage and transport uses liquid ice, which we produce ourselves using green energy. As a result, the consumption of the Liquid Ice Container is 58% lower than that of a conventional mobile refrigerated container using CO₂. In our stores, we then switch back to refrigeration systems using natural refrigerants such as propane. During their entire lifespan, they emit 90% less greenhouse gases than classic systems. Since 2016, propane refrigeration has been installed in all new stores; we aim to switch all of our stores by 2028.

6.600 Through ecodesign, we reduce the ecological footprint of our Boni nappies.

Colruyt Group & Sustainability

Our themes

Liquid Ice Containers with 58% less consumption

Sustainability in numbers

25


In 2017, for the first time, we equipped stores with heat recovery systems, a costeffective solution combined with our closed cooling compartment and propane refrigeration. These systems recover the heat from the refrigeration system to help heat the building, so that no gas or oil-fired boiler is required. The test took place in two OKay stores because the refrigerated area there is very large compared to the heated part. Also, as these stores have no butcher department, they do not need so much hot water. Following a positive assessment, we decided to roll out the system in new stores and those to be renovated. These will then become fossil fuel-free stores since they consume no natural gas or oil and we run on 100% green energy as a group.

More efficient passenger transport Since commuter traffic is a major factor in creating congested roads, we want to reduce its impact as much as possible. For this reason, we encourage our employees to seek alternatives to the car, such as bicycles or public transport. For example, with Bike-to-work, we have already given our employees ten years’ free cycling. In 2017, a total of 1.557 conventional bikes and 1.290 e-bikes were in use.

2.847 company bicycles in use in 2017

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

26


Since September 2016, an office bus (Office on Wheels) also runs between Ghent and our head office in Halle. This means 22 fewer cars on the road on average - an annual reduction of 239.431 car kilometres and 64 tonnes of COâ‚‚. We encourage anyone who still chooses the car to carpool or switch to a cleaner model. For example, in the last few years, we have consistently promoted CNG (Compressed Natural Gas) among employees with company cars. By the end of 2017, there were already 1.478 natural gas vehicles in use. This number will rise sharply since almost six out of ten orders were for a CNG car in 2017. In addition, there are also around a hundred spare vehicles, service vehicles and vans running on CNG. 31/12/2012

31/12/2017

Number of company cars running on CNG

53

1.478

Proportion of the total company car fleet

1,3%

27,5%

Colruyt Group & Sustainability

Our themes

Since the end of 2016, employees have also been able to choose from six models of electric company cars, ten of which are currently in use. Finally, we bought our first hydrogen car in 2014 and our fleet now includes thirteen of them. Drivers’ attitudes also make a big difference in traffic. For this reason, we encourage our employees to drive more fuel-efficiently and act safely and courteously on the road. To this end, since 2012, all new employees with a company car have taken an energy-efficient driving course, making a total of 2.802 participants by the end of 2017. In addition, we have recently created a digital version of the training course, which is accessible to all employees. Finally, we have our own Courtesy Charter, which had already been signed by 618 professional service-vehicle drivers by the end of 2017.

Sustainability in numbers

27


Modal shift

More efficient goods transport Transporting goods is an essential part of our activities as a retailer. Over the years, we have therefore developed a sophisticated, efficient transport system. At the same time, our group of stores keeps growing so that it is a constant challenge to make our goods transport more efficient. In this way, we can further reduce our impact on traffic and the environment. To this end, for example, we fill up our trucks to the maximum, reducing the number of truck journeys and kilometres. Between 2013 and 2017, for instance, our number of non-food stores in Belgium grew by 14%. Despite this, our trucks covered 14% fewer kilometres on average per delivery in 2017, while the number of items per journey rose by 7%. To relieve congestion during the day, we schedule our transport for late evening or early morning or at night as far as possible. Since we want to do this as quietly as possible, during the last few years, we have invested about EUR 3,5 million in 45 quiet trailers, 44 covered unloading docks, many covered empties areas and lift tables, etc.

Colruyt Group & Sustainability

In recent years, we have taken numerous steps to bring about a modal shift, or switch from trucks to more sustainable modes of transport. We prefer to transport goods imported into Belgium by inland waterway, for example between the ports of Antwerp and Brussels. In the space of two years, domestic transport by barge has increased by 20%.

Reduction in truck Proportion journeys by barge 2015 - 2.946 journeys

50,17%

2016 - 3.254 journeys

55,87%

2017 - 3.531 journeys

58,72%

More sustainable goods transport relieves traffic congestion and reduces the impact on the environment and health. By a modal shift, we can also anticipate potential fuel price rises and driver shortages. Where possible, we shift the importing of goods from ‘distant’ European countries from road to rail and sea. For example, in 2017, 66% of shipments from Spain, Italy, Greece and Hungary took place by rail. This means that 22% came by water and just 12% by road.

66% of our imports from Spain, Italy, Greece and Hungary took place by rail in 2017

Our themes

Sustainability in numbers

28


PEACE, JUSTICE AND STRONG INSTITUTIONS The more peaceful and inclusive a society is, the more opportunities there are for sustainable development to truly flourish there. For our company this means that we place great importance on dialogue with our stakeholders. Whether they are employees, customers or suppliers, public authorities, sector organisations or NGOs: we always commit ourselves to an honest relationship and a sustainable partnership.

Reassurance The recent introduction of the General Data Protection Regulation (GDPR) in the European Union is relevant to our relationship of trust with our customers. All of our processes are now GDPR-compliant. We already laid the groundwork for this a year ago with the launch of our Xtra loyalty card. Customers manage all of their data and preferences themselves on their online profile. They can also specify which newsletters and flyers they want to receive. This means that we only approach customers with communications which we are sure they will want. We use personal data solely to better meet our customers’ requirements: we refine our offer, offer tailored promotions and open new stores in their neighbourhood.

Strengthened dialogue It is a long tradition at Colruyt Group for both the company and the unions to treat the social dialogue with great respect. All of our managers receive training about our vision for social dialogue. In this way, they learn to deal constructively with the unions and strengthen the social dialogue in the workplace. We launched a catch-up campaign in 2017 and have also trained many assistants. Between 2015 and 2017, 1.097 people received this training. In an age in which social isolation is growing and people seem to be increasingly turning inwards, as a retailer we actually want to create more connection. For example, our Apporto shopping platform launched at the beginning of 2018 makes it easier to shop for groceries for others. Apporto is a handy tool for people who already share their shopping, as well as for those who do not yet know one another.

LivrĂŠ avec

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

29


Being a reliable and honest partner We want to be a reliable and honest partner for our customers and all other stakeholders, a partner on which they can count with peace of mind. To minimise the risk of bribery and corruption, we express our group values in our daily work. We also actively share our policy frameworks and codes of conduct among colleagues and monitor all risks using our Coris risk management system. In addition, we have a number of special measures for those departments most exposed to risks such as corruption and bribery, including our buying departments. For example, all new buyers sign our ethics charter, with explicit guidelines for gifts, hospitality benefits and screening of suppliers in at-risk countries. In addition, we have linked different roles to the different steps in the purchasing process. The buyers also systematically apply the foureyes principle and change product category and job on a regular basis. Finally, we provide continuous education and training, including six-monthly training sessions and an annual test. We have stepped up our contact with citizens by establishing the Eoly Cooperative. By this means, we now give private individuals the opportunity to invest in wind projects of our green energy producer Eoly. The capital of EUR 4 million required for an initial project at the start of 2017 was provided by 1.200 member-owners, 40% of whom were local residents, in less than six weeks.

1.200

In view of the specific nature of our business, a compliance cell has been set up, with the main task of monitoring compliance rules within the group.

Good social relations with our employees and external stakeholders are essential in order to be and remain relevant as a company. We invest a great deal of time in building close collaborations and partnerships. Integrity is an essential element of our DNA. It helps ensure we retain the confidence of others and can continue to grow in the long term.

member-owners invested in Eoly Cooperative’s first wind turbine

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

30


PARTNERSHIPS FOR THE GOALS There is a value chain associated with every product in our range. In making these chains more sustainable, we aim for added value for all links, which works best in dialogue and partnership with all stakeholders. Incidentally, this is also necessary if we are to remain relevant to our most important stakeholder: the customer.

The Sustainable Development Goals can only be realised by a strong commitment to international partnerships and cooperation. This applies globally, but equally on a smaller scale. In Belgium, we work towards sustainable development with many actors and sectors.

Partnerships in agriculture In the agri-food industry, we are introducing sustainability and innovation to existing and new (supply) chains, partnerships and cooperation models. For example, together with our partners, we can tackle challenges in food production and distribution and offer consumers more sustainable products, greater transparency and traceability. Through our participation in the Belgian Agro Food Chain Consultation, we contribute to the dialogue and help create more sustainable solutions in the Belgian agro food chain. This cross-sectoral consultation brings together the main links in the chain: supply, agriculture, the food industry, retail and distribution. We are represented there through the Comeos retail federation and also participate in several working groups. In addition, we have many ongoing programmes to make specific products and chains more sustainable. For example, we have intensified our 15-year partnership with the De Lochting non-profit enterprise. The organic social farming enterprise produces vegetables and other crops in the transition to organic. By buying more from them, we not only support organic farming and the local social economy. We also enable more people to do meaningful work and offer consumers a high-quality, sustainable product.

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

31


We have taken major steps to increase the sustainability of industrial chicken production, together with feed producers, farmers and slaughterhouses. We have updated our specifications for farmers and implemented a system of data capture throughout the chain, with five indicators of animal welfare and health and two of economic sustainability. The first report (about 2017) has now been shared with all actors. In this way, we acquire more insight into the production chain and promote dialogue and sustainability. Eventually, we also intend to roll out this methodology in other meat production chains. In the fruit sector, we have commissioned the development of two new varieties of apple, grown by our preferred partners, Neven Fruits Waremme, Wolfcarius Fruit Markegem and Gebroeders Bangels Gingelom. Magic Star will be launched nationally in 2019 and CoryphÊe a year later. This short chain is sustainable in all respects. The new varieties thrive in our climate, are grown with respect for the environment and appeal to consumers’ tastes. Besides, we guarantee to purchase the whole crop, offering the farmers income security and protecting local skills. Together with local apple growers we developed two new apple varieties.

7 sustainability indicators in first report on chicken farming

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

32


Partnerships with education To continue to do business sustainably in the future, we keep our finger on the pulse as far as young people are concerned. We reach these potential employees or customers primarily through partnerships with education. We have ongoing partnerships with a variety of secondary and higher education establishments across the board. We also organise inspiration sessions around socially relevant topics in many colleges and universities. To bring education and the job market closer together, we introduce young people to the retail sector and Colruyt Group in a variety of ways. For example, we welcome many young interns to our company every year. In addition, over a four-year period, some 80 secondary school teachers have completed placements in preparation for practical lessons with their students in store. Finally, we also continue to invest in training young employees. Our ten-week Start-2-Retale training programme specifically designed for young graduates with leadership potential is unique in retail. After the first edition in 2017, we took on three participants.

Partnerships with and for young people globally The young people of today make the world of tomorrow, although many have less opportunities due to their circumstances. For this reason, our Collibri Foundation corporate fund specifically supports disadvantaged young people in Belgium and abroad. Through education, coaching and exchanges, we offer them more opportunities for a successful future. For this, we work with well-known NGOs and the King Baudouin Foundation (for financial management, quality, in-depth follow-up and documentary checks). Thirteen projects are currently in progress - three in Belgium and ten in developing countries. In six of those countries, the training projects are linked to projects for the development of sustainable production chains. We then sell the products from these chains under our house brands. Between 2017 and 2019, we intend to invest EUR 2,1 million in our training projects.

106

EUR 533.321

employees trained internally as butchers in three years

Colruyt Group & Sustainability

invested by Collibri Foundation in education in 2017

Our themes

Sustainability in numbers

33


Partnerships in the blue economy Colruyt Group supports the principles of the ‘blue economy’, or the development of innovative, local business models in harmony with nature and with social added value. For this reason, we have set up the Blauwe Cluster (Blue Cluster) association, an innovation and coordination platform for sustainable development in the Belgian North Sea. Private companies, public authorities and knowledge institutions combine forces to facilitate and coordinate sustainable projects. The focus lies on the production of balanced seafood, ecological coastal protection and the production and storage of renewable energy. The association is aiming to be recognised as a ‘spearhead cluster’ by the Flemish government. In addition, since 2017, we have worked on a variety of pilot and demo projects in the North Sea, under the name of North Sea Aquaculture. With Flemish and EU support, we are researching the feasibility of shellfish and seaweed cultivation in the sea, in biological, technical and economic terms and with a view to sustainability over the entire lifecycle. Specifically, mussels are cultivated, among other crops, in two offshore wind farms, while a unique system has been developed off the coast at Nieuwpoort for the combined cultivation of seaweed, scallops and oysters.

Projects in the North Sea

Partners

Our investment

Timeline

SeaConomy

5

EUR 35.000

2017 - 2018

Edulis

8

EUR 230.000

2017 - 2019

Value@Sea

6

EUR 55.000

2017 - 2019

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

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SUSTAINABILITY IN FIGURES SDG

THEME

KPI

STARTING POINT

STATUS 2017 + AMBITION

Own brands

Nutritional improvement own brand products

2014/15: 93 products

2017: 84 products

Fat

2015: - 66 tonnes per year

- 106 tonnes per year

Saturated fat

2015: - 41 tonnes per year

- 113 tonnes per year

Sugar

2015: - 250 tonnes per year

- 132 tonnes per year

Salt

2015: - 9 tonnes per year

- 140 tonnes per year

Fibre

2015: + 18 tonnes per year

+ 6 tonnes per year

Innovation in food chain

Food articles in SmartWithFood app

20.000

Colruyt Group investment in EIT Food

Start of 2018: EUR 3 million

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

PROGRESS

35


SDG

THEME

KPI

STARTING POINT

STATUS 2017 + AMBITION

Balanced diet Families participating in ‘Dinner is served at 1-2-3 euros’ programme

2016: launch

110 member towns, cities and municipalities; 2.400 families registered

Employees

Financial year 2014/15: 836 609

Number of occupational accidents (*) Severity (*)

Financial year 2014/15: 0,68 0,54

Frequency (*)

Financial year 2014/15: 23,19 18,25

Days lost (*)

Financial year 2014/15: 24.368 18.009

Programme for rehabilitation of long-term sick employees

1.500 employees contacted Aim end 2018: all long-term sick contacted

Average number of days earlier back to work at OKay and Bio-Planet

25

Average number of days earlier back to work at Colruyt Lowest Prices

12

Flu vaccinations

PROGRESS

2016: 4.187

4.480 2017/18: 4.574 employees registered for 472 sessions

Training sessions for personal growth

(*) Figures from combined reporting based on all of our activities (logistics, administrative, sales, production and technical departments)nische diensten)

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

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SDG

THEME

KPI

STARTING POINT

STATUS 2017 + AMBITION

Energy reduction

Energy consumption (MWh/Million EUR revenue)

2009: 62,92

56,28 (- 10,56% compared with base year 2009) Aim 2020: - 14% compared with 2009

Data centres

2007: PUE = 2,4

Start of 2018: PUE = 1,34

Servers

2008: 1 server 250 Watt = 1 application

Start of 2018: 1 x 500 Watt server runs 20 virtual servers

PC's

2008: conventional PC 80 W 2009: blade PC 20 Watt

963 x 5 Watt virtual PCs

PROGRESS

ICT

All stores and car parks equipped with LED lighting. Saving of 7.500 MWh per year

Lighting Construction New low-energy stores

2012: 3

73 14 stores upgraded Aim by end 2018: + 7 Aim by 2029: 234 in total. Budget: EUR 35 million. Expected reduction in total CO2 emissions: 3%, or equivalent of annual heating emissions of 1.480 family homes.

Energy upgrade of existing stores

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

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SDG

THEME

KPI

STARTING POINT

STATUS 2017 + AMBITION

Renewable energy

Energy consumption (own production + purchase green certificates)

2010: Belgium 100% sustainable

Belgium and France 100% sustainable. Aim 2022: worldwide 100% sustainable

Eoly green energy production

55.800 MWh (30,6% of total consumption)

Wind

34,2 MW / 14 wind turbines / -18.471 tonnes CO₂ per year

Solar

7,5 MW / 54 plants / -1.980 tonnes CO₂ per year

Cogeneration

926 kW thermal + 889 kW electrical / - 545 tonnes CO₂ per year

Average coverage rate

86,50%

Average synchronisation

66,20%

Parkwind green energy production

PROGRESS

1.820 GWh (equivalent of annual consumption of 520.000 households)

Mobility Number of electric charging posts of DATS 24

58 charging posts (57 at stores, 1 at Head Office) Aim by 2021: 200 charging posts Aim by 2030: charging posts at 90% of stores

DATS 24 stations equipped with CNG pump

55

CGA-workshop 'Greener on the road'

18 workshops planned in 2018 (20-25 participants)

Hydrogen Logistical vehicles running on hydrogen

30 vehicles in use End of 2018: 75 vehicles in use

DATS 24 public hydrogen fuel station

Opening in October 2018

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

38


SDG

THEME

KPI

STARTING POINT

STATUS 2017 + AMBITION

Employees

Number of employees

2001: 10.497 employees (financial year 2014/15: 28.117)

29.388

Male/female

17.763 (60,4%) / 11.625 (39,6%)

White/blue collar

23.166 (78,8%) / 6.222 (21,2%)

Full/part time

23.280 (79,2%) / 6.108 (20,8%)

PROGRESS

Age pyramid Under 20

0,54%

Between 20 and 25

7,50%

Between 25 and 30

15,59%

Between 30 and 40

29,70%

Between 40 and 50

26,48%

Between 50 and 60

18,45%

Over 60

1,73%

Students employed under special scheme

5.500

6.003

Nationalities

82

Employees with Indian nationality

2016: 330

408

Job rotations

2014/15: 781

836

Reorientation programmes

2015: 104

67. In period 2015-2018: 257

Course ‘In the driving seat of your career’

Colruyt Group & Sustainability

114 participants

Our themes

Sustainability in numbers

39


SDG

THEME

KPI

STARTING POINT

STATUS 2017 + AMBITION

Employees

Turnover

Financial year 2014/15: 7,74%

8,36% Average 8,07% in the last three years

Compulsory

Financial year 2014/15: 1,87%

1,68%

Voluntary

Financial year 2014/15: 4,30%

5,38%

Other

Financial year 2014/15: 1,57%

1,30%

Average length of service

PROGRESS

Financial year 2014/15: 8,54 years 8,84 years

Development Investment in education and training

3,16% of total labour costs (EUR 38 million)

Training for personal growth

Taken by 30% of managers

Training ‘Inspiring coaching'

Taken by 54 managers in the last 3 years

Job-related training at suppliers

2.111 participants

Colruyt Group Academy Meeting centres

9 centres Aim by 2020: 12 centres

Training sessions for employees

17.600 participants

Number of workshops for customers

2.476

Number of participants

29.066

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

40


SDG

THEME

KPI

STARTING POINT

Terms of employment

Own solidarity fund Dossiers submitted

1.385

Dossiers paid

1.162

Amounts paid

Financial year 2014/15: EUR 906.343,83

Registered members

Financial year 2014/15: 15.445 18.473

EUR 919.277,74

Capital increase

2016: 2.421 employees subscribed to 326.508 shares

2.182 employees subscribed to 260.458 shares

Non-food audits

2008: 190 producers audited at least once

384 audits on 360 producers (of which 67 commissioned by Colruyt Group) Aim by end of 2018: 378 producer audits (of which 75 commissioned by Colruyt Group)

2013: 39 audits

212 audits on 192 producers (of which 109 commissioned by Colruyt Group) Aim by end of 2018: 169 producer audits (of which 65 commissioned by Colruyt Group)

Social audits

Food audits

PROGRESS

25.386 Belgian employees received EUR 26,7 million

Profit sharing

Diversity

STATUS 2017 + AMBITION

Training 'Dutch or French in the workplace'

Colruyt Group & Sustainability

800 participants

Our themes

Sustainability in numbers

41


SDG

THEME

KPI

STARTING POINT

Own brands

Making our own brands more sustainable

STATUS 2017 + AMBITION

PROGRESS

2.100 products made more sustainable

high

By category Wood (134 products containing at least 60% wood)

2016: 78% FSC or PEFC certified

90% FSC or PEFC certified

high

Wild fish (14 species of fish in 99 products)

2012: analysis phase

84,4% ILVO or MSC certified Aim by end of 2018: 90% certified

high

Farmed fish (70 products)

2014: 0%

88,6% ASC certified Aim by end of 2018: 90% certified

high

Palm oil (600 products containing palm oil)

2015: 35% segregated

40% segregated Aim by 2020: 100% segregated

high

30.000 tonnes compensated (RTRS) 2018: 33.100 tonnes compensated (RTRS)

Soy (feed) Eggs Fresh eggs

2005: 100% not battery-farmed

Aim: maintain 100% not battery-farmed

high

Eggs processed in 600 own brand products

2014: 98% not battery-farmed

100% not battery-farmed

high

2015: 1,8% certified

80% certified March 2018: 99% certified

high

Cocoa, chocolate (223 products)

91% certified Aim end of 2018: the remaining 20 products certified

high

Paper (204 products)

100% FSC of PEFC certified

high

Dreambaby babybodies

100% GOTS certified

high

Dreambaby other cotton

99% BCI certified

high

Coffee (95 products, 38 varieties of bean)

Cotton

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

42


SDG

THEME

KPI

Own brands

Meat

Waste

Packaging

Water

STARTING POINT

STATUS 2017 + AMBITION

Chemical castration of pigs

100%

Farmed rabbits

100%

Proportion of fresh and frozen products actually sold

97,27%

97,27%

Waste recycling rate

2003: 64,04%

82,71% (69.488 tonnes) Aim: continue to achieve at least 80%

Food loss to human consumption (foodbanks)

2009: 2,3% (336 tonnes)

9,3% (1.956 tonnes)

Food loss to animal food

2009: 0%

18,50%

Food loss to biochemistry

2009: 7,4%

10,30%

Food loss incinerated or fermented

2009: 90,2%

61,9% Aim by 2020: below 50%

Packaging prevention and reduction

Bananas: 55,5 tonnes of plastic per year saved

Packaging recycling

Meat trays: 130 tonnes of plastic per year saved

Packaging circular

Folding box: 270 tonnes of cardboard reused

Packaging circular

Fruit punnets: 333 tonnes of cardboard reused

Total water consumption

566.000 m³ (15% waste water, 11% rainwater, 10% well water, 64% mains water)

Colruyt Group Fine Food Meat waste water recycling

81.000 m³ mains water saved (equivalent of consumption of 920 households)

PURA drinking water system

2.624 m³ drinking water produced

Construction Renovation of offices and distribution centres

Colruyt Group & Sustainability

PROGRESS

high

EUR 55 million

Our themes

Sustainability in numbers

43


SDG

THEME

KPI

STARTING POINT

STATUS 2017 + AMBITION

Climate

Colruyt Group greenhouse gas emissions (in tonnes CO₂ equivalent/EUR million revenue)

2008: 16,48

15,26 (-7,4%) Aim by 2020: 13,19 (-20%) Forecast 2020: 34% reduction

Environmental footprint

Invest in a more accurate ecological footprint methodology

EUR 800.000 over 7 years

Ecological footprint Boni Selection nappies

Reduced by 400 tonnes CO₂ per year (-5%)

PROGRESS high

Refrigeration Liquid Ice Containers (LIC, liquid ice produced using green energy and natural refrigerant)

Mobility

Fresh food (-3°C, for 95 - 99% of all transports)

6.600 LICs

Frozen food (-40°C) in test phase

200 LICs

Propane refrigeration systems in stores

2016: in new stores

Start 2018: in 43 stores Aim by 2028: all stores switched

Recovery of heat from refrigeration systems for heating

2017: test two stores

Test successful, begin rollout

2008: 1.463

2017: 2.847

Passenger transport Company bicycles (conventional + electric)

Average of 22 fewer cars on the road per day 239.431 car kilometres and 64 tonnes CO2 prevented

Office on Wheels

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

44


SDG

THEME

KPI

Mobility

Company cars Company cars running on CNG

STARTING POINT

STATUS 2017 + AMBITION

2012: 53 (1,3%)

End of 2017: 1.478. 2018: 1.738

Vans running on CNG

2018: 106

Models of electric company car

6

Electric company cars in use

Start of 2018: 10

Hybrid company cars in use

41

Company cars running on hydrogen

2014: 1

Signing of courtesy charter Ecodrive training courses

PROGRESS

Start of 2018: 13 618 professional drivers of service vehicles

2012: launch

2.802 participants

Scope: number of stores

2013: 64

73 (+14%)

Km driven per store

2013: 14.885

12.770 (-14%)

Items per journey

2013: 3.127

3.353 (+7%)

Goods transport non-food Belgium

Investment in noise reduction for distribution in late evening/early morning

EUR 3,5 million

Infrastructure

44 covered unloading docks

Vehicles

45 trailers and 25 pallet trucks

Modal shift to inland waterway in Belgium

2015: reduction 2.946 journeys (out of a total of 5.872)

Spain, Italy, Greece, Hungary: 12% road, 66% rail, 22% sea transport

Modal shift to rail and sea transport in EU

Colruyt Group & Sustainability

Reduction of 3.531 journeys (out of a total of 6.014). 8% efficiency gain on full trucking cost

Our themes

Sustainability in numbers

45


SDG

THEME

KPI

STARTING POINT

STATUS 2017 + AMBITION

Mobility

Goods transport food Belgium Average number of packages per shipment

2014: 73,91

78,48

Km covered (Colruyt Lowest Prices, OKay, Bio-Planet, Dreamland and Dreambaby

2014: 39.232.042

44.680.497

Colruyt Lowest Prices

2014: 94,96%

94,48%

Bio-Planet

2014: 64,97%

69,46%

OKay

2014: 87,90%

95,00%

2011: 35,89

32,14

PROGRESS

Filling level trucks (in m²/area of trailer)

Fuel consumption (litres per 100 km)

Colruyt Group & Sustainability

Our themes

Sustainability in numbers

46


SDG

SDG

THEME

KPI

Dialogue

Training course ‘basic communication skills'

2015/17: 1.894 participants

Training course ‘getting on with the trade unions'

2015/17: 1.097 participants

Eoly Cooperative

Member-owners who invested in Eoly Cooperative’s wind turbine

1.200 (of which 40% local residents)

THEME

KPI

Blue economy

Colruyt Group investment in Edulis

EUR 230.000 (2017 - 2019)

Colruyt Group investment in Value@Sea

EUR 55.000 (2017 - 2019)

Colruyt Group investment in SeaConomy

EUR 35.000 (2017 - 2018)

Federal chain consultation

Cross-sectoral consultation between supply, agriculture, food industry, retail and distribution

Transition to organic crops by De Lochting

June 2018: 100% transitioned

Specifications for chicken & data capture

Updating of specifications and data capture based on seven indicators throughout the chain

Development of new apple varieties

2: Magic Star and Coryphée

Agriculture

STARTING POINT STATUS 2017 + AMBITION

STARTING POINT STATUS 2017 + AMBITION

Educational projects of Collibri Foundation

13 (3 in Belgium and 10 in developing countries)

Teachers doing a placement under the ‘Practical lesson on site’ course

2014/15: 13

22 (80 over four years)

Training to become butcher

2014/15: 33

36 participants

Training course 'Start2Re-Tale'

Colruyt Group & Sustainability

PROGRESS

EUR 533.321 Aim 2017 - 2019: EUR 2,1 million

Young people Investment in Collibri Foundation worldwide Education

PROGRESS

3 participants taken on after 2017 edition

Our themes

Sustainability in numbers

47


Publisher: Etn. Fr. Colruyt NV • Edingensesteenweg 196 B-1500 Halle Phone: +32 (0)2 363 55 45 Design: Customer Communication & Experiences • Edingensesteenweg 249 B-1500 Halle Only the Dutch version of the Sustainability Report is the official version. The French and English versions are translations of the original Dutch version.

Colruyt Group sustainability report 2017/18  
Colruyt Group sustainability report 2017/18