Sustainable development report 2011 - Auchan . com

EMPLOYEES269,000 SOURCESOF IDEASAS AN ACTIVE PLAYER ON THE EMPLOYMENT MARKET, AUCHANFULLY ASSUMES ITS CORPORATE RESPONSIBILIT Y FOR ITS269,000 EMPLOYEES. THE GROUP FEELS STRONGLY ABOUTDE V ELOPING JOB SEC URIT Y, A HIGH-QUA LIT Y WORKINGENVIRONMENT, GOOD RELATIONS AND A STRONG LEVEL OFINVOLVEMENT FROM ALL EMPLOYEES. IT DRAWS ON THE DIVERSITYOF PROFILES AMONGST ITS HUMAN RESOURCES TO MOVEFORWARD IN A CULTURE OF RESPONSIBILITY AND SHARING.OUR 3 GUIDING PRINCIPLES• Auchan is an inclusive company that is open to all profiles. We placegreat importance on staff training, managerial staff support and internalpromotions.• Our human resources policies are founded on the notion of continuousimprovement, focusing on improving working conditions and developinga more participatory management model, so that value creation canbe shared by all.• A culture of diversity is nurtured, promoting gender equality, prospectsfor disabled employees, intergenerational relations and the developmentof schemes and initiatives for young and senior citizens.OUR 3 IDEAS FOR THE FUTURE• 7,000 additional shareholder employees in 2012.• Jointly develop more diploma-granting and sandwich courses withpartner schools and universities.• Support the development of a dozen projects initiated by employees,with candidates selected for their “Creative Attitude”.3 FIGURES FOR 2011269,000EMPLOYEESIN 12 COUNTRIES152,000EMPLOYEES IN 9 COUNTRIES OWN11.9% OF THE GROUP'S STOCK4.4MILLION TRAINING HOURSPROVIDED BY THE GROUP IN 2011

EMPLOYEESOPPORTUNITIESFOR ALL PROFILESIN-HOUSE TRAINING+5.5%2011 GROUP EMPLOYMENT STRUCTURE2009 2010 2011Total number of hours 4,023,987 4,153,166 4,381,411Overall training rate 79% 79% 81.6%Employee training rate 66% 76% 75.8%Management training rate 74% 83% 83.2%Senior executive training rate 64% 85% 77.4%Average number of training hours per employee 20.1 19.3 20.7FIGURES FOR ALL EMPLOYEES*20102011* Excluding RT Mart China.OPEN TO ALL PROFILESOffering a broad range of professions,the company places great importance onintegration, making a large number of itscareer openings accessible to people of allbackgrounds. A lack of qualifications is notnecessarily a hurdle in terms of employmentopportunities. Working together with thenational French employment centre, AuchanFrance runs a specific scheme to facilitateemployment for under-qualified job seekers.Before they sign their employment contract,all beneficiaries of this scheme go throughan orientation period consisting of generaltraining followed by a week’s on-the-job214,877211,550–1.58%INTERNAL PROMOTION RATE201131.5%AS A RESPONSIBLE EMPLOYER, AUCHAN TAKES A PROACTIVE AND INCLUSIVEAPPROACH TO EMPLOYMENT IN ITS 12 COUNTRIES, OFFERING POSITIONS TO A WIDERANGE OF PROFILES AND ENSURING A HIGH QUALITY OF LIFE FOR ITS EMPLOYEES.THE COMPANY ENDEAVOURS TO IDENTIFY TALENTED INDIVIDUALS, OFFERING THEMSPRINGBOARDS FOR SUCCESS AND PROVIDING THEM WITH THE RESOURCES THEYNEED TO EXPRESS THEIR TALENT.training in the store. Auchan France runsseveral schemes to counter discriminationin recruitment. The “1,000 employmentopportunities” operation was held for the 3 rdyear running. This scheme was set up to recruityoung people from underprivilegedneighbourhoods with problems enteringthe job market.Initially aimed at cashiers and other staff,the “Recruitment without a CV” operationhas been tried out for recruiting managersin the Nord region.Hypermarkets and supermarkets in Italy haveworked in collaboration with job centres andmunicipalities, supported by the Ministry ofFulltime67.6%Permanentcontract11.8%Parttime32.4%Fixed-termcontract88.2%Public Instruction, to recruit 200 job seekerswith disabilities. With the same goal in mind,Immochan held job fairs in its shopping centrein Portugal. Organised jointly by stores andemployment partners, these events providedan opportunity to publicise 1,000 job offers.FIGHTING JOB INSECURITYSince 2007, Auchan France has systematicallyoffered employees the choice of taking onfull-time positions. Over 3,000 employees havetaken this opportunity and have gone fromworking a 28-hour week to a 35-hour week.Auchan also offers benefits and perks for itsemployees.Auchan provides private health insurance andsocial benefits, even in countries where doingso is not common practice. In 2011, AuchanUkraine considerably improved medicalinsurance coverage for its employees, goingwell beyond standard company practice forthe country. An anti-HIV health preventionprogramme has also been launched, withposter campaigns and awareness-raisingmeetings held in stores. In some countries,depending on the local context, employeescan shop at their store at a discounted rate,and receive a transport allowance, mealvouchers and/or medical services. Pre-schoolchildcare facilities are available for childrenof employees in France and Portugal.Auchan China implemented an EEC (1) systemto improve working relations and to assistemployees facing hardship. All stores havea social fund and a committee that meetsregularly to grant emergency financial supportor zero-interest loans.KEY FIGURE4,381,411training hours in 2011OFFERING OPPORTUNITIESFOR OUR EMPLOYEESTraining and internal promotions contributeto employee reliability, professionalism,enthusiasm and recognition. In 2011, almost4.4 million hours of training were providedthroughout the Group. While these coursesprimarily target specific positions, they arealso used as an opportunity to raise awarenessamongst employees on matters concerningthe company’s social and environmentalresponsibilities. Common modules are providedfor all positions in all countries, giving anoverview of the Group’s sustainabledevelopment policies. Other more specificmodules are offered to complement the mainprogrammes focusing on subjects suchas energy savings, waste sorting, sustainableproducts, healthy diet, health and safety,and social solidarity. These courses are heldin an environment that encourages individualexpression from participants. Auchanprioritises internal promotion. In China,21% of retail department managers are formerstore employees, 100% of retail sectormanagers are former retail departmentmanagers and 100% of store managersare former retail sector managers.During 2011, RT Mart Taiwan focused onidentifying internal talents and key skillsto create future managerial teams.In France, Auchan developed an innovativecareer management system in responseto the company’s need to expand and diversifyits operations. The identification process wasimproved, and employees with potentialreceived better support and guidanceon an ongoing basis.CLOSE-UPPÃO DE AÇÚCARFOUNDATIONThe Pão de Açúcar Foundationis a social fund that was initiatedin Portugal in 1992 by companyexecutives with the missionof creating and nurturingcooperation, mutual aid andsolidarity for employees and theirfamilies: it runs an educationalsupport and job training schemeand offers activities for retiredemployees and assistance forfamilies in times of hardship.In 2011, the foundation set up anequipment bank for lending itemssuch as pushchairs, to facilitate lifefor company employees. A websitewas also created to promote thefoundation’s activities. In 2010,the Amadora store opened a preschoolchildcare centre for childrenof employees, open all year roundfor children in the local community.A 2 nd pre-school childcare centrewill be opening in 2012.(1) Employer – Employee – Committee.08 / GROUPE AUCHAN 2011 SUSTAINABILITY REPORT GROUPE AUCHAN 2011 SUSTAINABILITY REPORT / 09

EMPLOYEESPROMOTE AND INTEGRATE DIVERSITYEMPLOYEES IN SITUATION OF DISABILITY WITHIN THE WORKFORCE (2011)Hypermarkets Number Rate Legal requirementChina 527 4.0% 1.6%Spain 415 3.3% 2.0%France 3,990 7.0% 6.0%Hungary 29 0.5% 5.0%Italy 406 4.1% 7.0%Poland 380 3.4% 6.0%Portugal 89 1.0% NoneRomania 59 1.3% 4.0%Russia 617 3.0% 2.0% to 4.0%Taiwan 122 1.9% NoneUkraine 195 5.3% 4.0%Luxembourg 21 3.0% 4.0%Supermarkets Number Rate Legal requirementFrance 750 5.0% 6.0%Spain 122 2.1% 2.0%Italy 369 3.8% 7.0%Poland 9 0.8% 6.0%THE WEALTH OF THE COMPANY’S HUMAN RESOURCES IS DIRECTLY LINKED TOTHE RICH DIVERSITY OF ITS COMPANY MEMBERS. AUCHAN TAKES PRIDE IN THISDIVERSITY IN EACH COUNTRY AND BUSINESS SECTOR AND DRAWS ON IT AS AVECTOR OF SUCCESS. THE GROUP LOOKS RESOLUTELY TO THE FUTURE, ENCOUR-AGING THE ARRIVAL OF YOUNG EMPLOYEES SUPPORTED BY THE KNOWLEDGEAND EXPERTISE OF THOSE WITH THE MOST EXPERIENCE.IDENTIFYING AND TRAININGFUTURE COMPANY MEMBERSThe company uses social media andpartnerships with schools and universitiesto promote its image as a career of choicefor young people, offering internshipssandwich courses for students and sendingcompany members out to schools anduniversities to involve students in trainingprogrammes. It also recruits interns andyoung graduates. In 2009, RT Mart launchedits “Seeds” programme to identify futureemployees with high potential. Thisprogramme specifically seeks to recruitstudents from the top universities in Taiwan.In China, Auchan visited 46 universities,resulting in the implementation of trainingagreements with vocational traininginstitutions.In 2011, an employment partnershipagreement was signed between Alcampoand Alcalá university in Henares. As partof this agreement, Auchan hired 20 youngstudents for practical training in the retaildepartment manager position. Aftera six-month period working in the store and300 hours of training, they were awardeda university-level diploma. A totalof 64,000 applicants uploaded their CVto the “Lavora con noi” (1) page onWORKFORCE BREAKDOWN (2011)Hypermarkets Men WomenEmployees 53,430 92,934Managers 12,453 9,873Senior executives 940 231Total 169,861Supermarkets Men WomenEmployees 6,993 18,924Managers 1,792 1,369Senior executives 305 68Total 29,451PERCENTAGE OF WOMEN MANAGERS IN THE GROUP201142.5%the Auchan Italy website. Workingin partnership with schools, Auchan Francelaunched its “Manager for a Day” programmein 2009 to promote the position of retaildepartment manager amongst students.Around 300 students have now participatedin the programme, spending a day workingas a manager and discovering the differentaspects of this profession in a real-lifesituation. Auchan and Atak Russia developeda programme together with the Russiauniversity of business and economy toorganise courses and internships for Russianstudents in France, running a theory coursein parallel. The Russia hypermarkets also setup a bakery school offering diploma-grantingprogrammes in stores that give courseparticipants State-recognised qualifications.Each new trainee is mentored by anexperienced senior company member.Since 2010, Auchan France has beenoperating a proactive employment policyfor senior staff members, which includesconducting mid-career assessments.WORKING WITH DISABILITIESAll Group companies have a proactive workintegration policy aimed towards people withdisabilities, accompanied by awareness-raisingprogrammes for customers and companymembers. In 2011, the company was onceagain recognised for its policies by the publicauthorities in China, Portugal and Hungary.The ratio of employees with disabilitiesis often higher than legally required, as is thecase in Ukraine (5.2%), where the companyhas also been recognised for its trainingcourses for deaf workers, which offer coursecontent translated into sign language. InHungary, up to 20 deaf or hearing-impairedcashiers work at the Dunakeszi store. To gaina better understanding of disabilities, almostall Auchan France managers(6,000 individuals) took a training moduleentitled “Disabilities: misconceptions”.KEY FIGURE8,100positions are held by peoplewith disabilitiesSimply Market France celebrated the10 th anniversary of its disability schemein 2011. This scheme offers specific supportfor company members in the formof equipment and services: touch pads,voice-controlled computers and toll-freehelplines providing information aboutprocedures for receiving assistance, whichare often unclear.GENDER EQUALITYApproximately 2 thirds of company membersat Auchan are women, demonstratinga proactive commitment to gender equality,with a particular emphasis on promotingCLOSE-UPwomen to management positions. Over46% of management positions and 41%of store manager positions are heldby women at Auchan China and AuchanRussia respectively. In Poland, there are morewomen than men in the retail sector managerpositions.Alcampo, Simply Market France and Spainsigned their first equal rights charter betweenmanagement and labour. Such agreementsformalise the company’s commitmentto developing a series of measures on equalemployment opportunity, work-life balance,promotions, training and information.These measures aim to prevent director indirect gender discrimination.Employees at Auchan France who participatedin the gender equality program starteda dedicated network on the Web to raiseawareness amongst the company’s men andwomen concerning equality in the workplaceand access to positions at all levels. The dozenvolunteers running this network startedthe site and organised forums to provideinsight into the different positions, correspondwith company executives and encourageinformation sharing. Some 400 membersparticipate in this discussion forum.SIGNS FOR ALLMany hearing-impaired employees work in our stores,often in cashier positions. Customers were notifiedwhenever their cashier had a hearing impairment.However, the problems encountered by hearingimpairedemployees when communicating with othercompany members had not been accounted for.Having learnt sign language in order to communicatewith his cousin, one of the managers in the Wola store,in Warsaw, recruited the store’s first deaf andhearing-impaired employees and then taught signlanguage basics to the store teams. His approach sparked significant interest and,on the initiative of the Modli ska store, resulted in courses being run by an externalorganisation with professional sign-language teachers.(1) Working with us.12 / GROUPE AUCHAN 2011 SUSTAINABILITY REPORT GROUPE AUCHAN 2011 SUSTAINABILITY REPORT / 13

PARTNERSJOINT RESPONSIBILITYBUYERS AWARE OF WORKING CONDITIONS IN PRODUCTION FACILITIES (2011)China 100% Covered in the training manualSpain 100% Code of ethics known by all buyersFrance ND Awareness-raising modules during training for new buyersHungary 0%Italy 100%Poland 0% Planned for 2012Portugal 88%Romania 0% Target: 20% in 2012Russia ND Covered in the code of ethicsTaiwan 100%Ukraine 100%SOCIAL AUDITS CONDUCTED EXTERNALLYUSING THE ICS METHOD20092010201191105170+62%INTERNAL INSPECTIONS CONDUCTEDBY SOURCING OFFICES SINCE 200820102011AUCHAN PERIODICALLY AUDITS THE WORKING CONDITIONS AT MANUFACTURINGSITES PRODUCING HOUSE-BRAND PRODUCTS AND DEVELOPS BALANCED ANDFAIR PARTNERSHIPS WITH SMES AND SMALL-SCALE PRODUCERS TO FOSTERTHEIR DEVELOPMENT.640+600 visits1,240NON-FOOD SUPPLIERS, CHILDREN’SPRODUCTS, AUDITED FOR RETAILER BRANDNAME PRODUCTS201167%KEEP A CLOSE EYE ON THEWORKING CONDITIONSIN PRODUCTION FACILITIESSince 1997, Auchan has adopted a codeof business conduct which is set out in itssales agreements. All suppliers undertaketo comply with the 10 main criteria in thiscode of conduct: prohibition of child labourand forced labour, safe and healthy workenvironment, etc.In 2011, the ban on sandblasting was addedto product listing agreements for suppliersof house-brand jeans. The Group also strivesto develop clear collective and internationalmessages concerning working conditions,aimed at suppliers and public authorities,particularly through its participation inGSCP (1) . For all import purchases, Auchan askseach new supplier to self-assess its company.This is followed up by internal inspectionsconducted by the quality teams and auditsconducted by external companies. In 2011,600 production sites were inspected and170 company audits were carried outby independent consultancies using ICS (2)guidelines, shared by 15 retail brands.and environmental criteria (waste processing,wastewater treatment, CO 2 emissions, etc.)was also subject to an internal procedurewith 1,200 quality inspections conducted overthe past three years.WEAVING SUSTAINABLE LINKSWITH PARTNER SMEsAuchan aspires to maintaining balanced andsustainable business relations with its partnerSMEs. A Web portal is used to nurture suchrelations in Italy while Auchan France runsworkshops for SMEs in conjunction withthe FEEF (federation of businesses andentrepreneurs in France). Sharing experiences,good practices and providing customized toolsfoster joint progress in areas such as quality,safety, logistics and development.Auchan prevents the creation of dependenciesbetween its suppliers and purchasing groups,supporting the growth of SMEs by graduallyintroducing their products in one and thenseveral stores, first at a national level and theninternationally. In 2011, Auchan Italy organisedand funded a trade fair in Milan to encouragethe export of 600 regional products to storesin other Group countries.At Auchan France, 11 regional trade fairswere held so that the attending retaildepartment managers and retail sectormanagers could select local producefor their stores and place their orders directly.75% of Auchan brand name products areproduced by SMEs. Auchan also sells certifiedfair trade products (Max Havelaar, Oxfam).Sixteen of its fair trade products are availableunder the Auchan brand name.A FRAMEWORK OF STANDARDSABOVE AND BEYONDAuchan abides by the 1948 UniversalDeclaration of Human Rights, the ILO 1998Declaration on Fundamental Principles andRights at Work and OECD guidelines, whichare recognised by all 42 member governments.These texts form a corpus of civil, political,economical, social and cultural rights whichAuchan applies to its partnerships.GROUP PARTICIPATIONIN THE GLOBAL COMPACTThe Group demonstrated its desire to operateas a responsible company by joining the GlobalCompact, which aligns with its principles. TheGlobal Compact was launched in 1999 by theUN Secretary General, encouraging companiesto work towards compliance with the10 principles related to human rights andstandards for working conditions, theenvironment and the fight against corruption,and to promote the adoption of theseprinciples by their stakeholders.Auchan is aware of its responsibilityas a committed group and aspires to adheringto this proactive strategy for long-termprogress, wherein each business and countrywill move forward in a working environmentbased on targets suitable for their nationaland local context.Indicators have been established to monitoractions and results, and the companyundertakes to announcing new developmentsonce a year. In parallel to the Group’sadhesion, each business and country can alsojoin its local Global Compact network, as it isalready the case for Alcampo (2002), AuchanFrance (2004), Auchan Poland (2011), SimplyMarket France (2011) and Simply Market Spain(2012).KEY FIGURE75%of Auchan brand name productsare produced by SMEsIn 2009, Auchan continued its collaborativework with the ICTI Care Process (3) in the areaof toy products.This programme involved 2,400 suppliers(approximately 1.4 million employees)in a certification process which was grantedto half of the suppliers and is monitored yearly.Auchan obtained the certification of around100 production sites in addition to the socialaudits conducted. Compliance with companyCLOSE-UPPALM OILThe overexploitation of palm trees to produce palm oil,a common ingredient in consumer food products, is oftena major cause of old-growth forests destruction. Palm treesforests are mainly found in Indonesia and Malaysia and arethe natural habitat of endangered animal and plant species,contributing to the living environment of local populations.In addition to these environmental considerations, food withhigh palm oil content can increase the risk of developingcardiovascular diseases.Since 2010, Auchan has been committed to eliminating this ingredient from its house-brandproducts whenever it is possible to do so without jeopardising product quality. Some239 recipes have been revised and over 2,400 tonnes of palm oil eliminated, focusingon the Baby and Rik & Rok ranges in priority. When this ingredient cannot be substituteddue to its binding properties, certified RSPO* oil is used.* Round table on Sustainable Palm Oil.(1) Global Social Compliance Programme.(2) Social Clause Initiative.16 / GROUPE AUCHAN 2011 SUSTAINABILITY REPORT(3) International Council of Toy Industries.GROUPE AUCHAN 2011 SUSTAINABILITY REPORT / 17

PARTNERSPROSPECTS FOR PARTNERSHIPSTHE COMPANY STRIVES TO DEVELOP SUSTAINABLE PARTNERSHIPS WITH MINIMAL ENVIRONMENTAL IMPACT.THE GROUP’S “LOCAL PRODUCTS” POLICY, ITS COOPERATION WITH THE SUPPLY CHAIN AND THE DEVELOPMENTOF A GREEN LEASE FOR COMMERCIAL REAL ESTATE STOCK ALL CONTRIBUTE TO ACHIEVING THIS TARGET.MINIMIZE THE IMPACTOF GOODS TRANSPORTTo reduce its carriers’ greenhouse gasemissions, Auchan conducts a policy ofstreamlining goods transport and warehousemanagement, prioritising locally sourcedproducts and ecologically designed housebrandproducts. The company developsinnovative transport solutions using dualor tri-temperature trucks with double runners(an ingenious mechanism with two decksof pallets that allows optimal use of spacewhen loading goods). The transport methodsused in Hungary, Portugal, Spain and Francetake preliminary routes to rail or riverterminals.The majority of the journey is made by thesemethods (80% to 90%). The goods are thentransported to the final delivery terminalby road. In 2011, for example, the percentageof journeys made by rail increased by4% for Alinéa, reducing CO 2 emissionsby 1,903 tonnes. When transporting majorimport goods via shipping containers betweenthe ports of arrival and their warehouses,Auchan France mainly uses alternativetransport methods: 7,745 TEU containerswere transported in this way in 2011(80% by river and 20% by rail), generatingoverall savings of 4,645 trucks, 1,127,360 km,338,200 litres of diesel and 2 thirds lessgreenhouse gas emissions.Auchan also maintains excellent relationswith its transport partners. In France,the transport charter introduced by Auchan10 years ago concerns working conditionsfor truck drivers and the nature of relationsbetween the different parties. The charterwas renewed in 2011, with the additionof two new topics: security procedure forreceipt of goods and the integration of newcommunication methods.PROMOTING SUSTAINABLEPRODUCTION METHODSAs a responsible partner of the agricultureand fishing industry, Auchan France prioritisesand fosters partnerships with responsiblefarms and fisheries. Auchan has carried LabelRouge-certified Aveyron and Ségala veal since1996. The 11,000 cattle sold each year areraised in farms that respect animal welfare,reclaim wood and invest in photovoltaicenergy.In Taiwan, sustainable pig farms ensure“Happy Pig” label certification. As a memberof the REAP (1) forum, the Group seeks to defineand disseminate its commitments to progress,and endeavours to share good practices withprofessional networks in the sustainable retailsector. In 2011, the Group produced a formaldefinition of its forest policy. It was supportedby the expertise of TFT (2) , an NGO withthe mission of tracking wood suppliesand supporting local communities in obtainingFSC certification for their products. In 2012,Auchan decided to prioritise its projectto analyse its in-house paper consumptionand sales of paper and wood products (reamsof paper, toilet paper, paper towels, furniture),and to carry new green-label products.IMPROVING SHOPPING CENTRES’ENERGY PERFORMANCEPartner stores in shopping centres consume20% to 30% of the overall energy consumption.Immochan included an environmental clausein its business leases to associate partnerstores in an effort to improve overall energyefficiency. Factors such as energy, waterand waste management, carbon footprintreduction and environmental qualityimprovement in store fittings are nowaddressed when negotiating contracts.This environmental clause has been in forcein France since 2010 and has beenimplemented in Ukraine for its CityParkexpansion project. It has been recommendedto partner companies for three futureImmochan projects: Setúbal, in Portugal,Zenia, in Spain and Mestre, in Italy. In 2011,106 of the 187 Immochan shopping centreshave implemented waste sorting systemsfor its partner stores. Specific trainingprogrammes are rolled out to storesand service providers in the NantesSaint-Sébastien shopping centre which,following the example of the Portugueseshopping centre Alegro Alfragide in 2010,has achieved a recycling rate above 60%,compared with its previous rate of 20%.CLOSE-UPA LOCAL PRODUCTRANGEEach country carries a range of localproducts grown and/or produced nearstores, forging direct partnershipswith small-scale producers. In Russia,each store carries products from50 to 150 local suppliers. Turnoverfrom these products can represent upto 25% of the segment. Auchan Francecarries 4,000 local products, sourcedfrom about 1,000 different suppliers. Since 2010, these products have been identified withpromotional banners and shelf tags. Pages are dedicated to the subject in our salesbrochures, explaining the eco-friendly and qualitative benefits of these products.The short distance between the production site and the sales site minimises the products’carbon footprint. The local product range responds to increasing demand from locavoreconsumers who want to buy local specialities and contribute to local development. Alcamponow carries a new range called “Yo crio, yo produzco, yo fabrico*”, which uses an integratedproduction process, from the raw material through to the finished product. Such a systemcontributes to the independence and development of small-scale producers in remoteareas. With its “de la Tierra” fruit and vegetable range, Spanish supermarkets carryproduce grown in the Zaragoza and Logroño areas, delivered daily to stores and soldon the same day. The “Sabores de Portugal” brand name guarantees the geographicalsource of this range of Lusitanian products and uses only traditional local recipes.In China and Taiwan, direct sourcing is encouraged by governments and is also beingdeveloped for non-food cottage-industry products.* Literally: I raise, I produce, I manufacture.(1) Retailers’ Environmental Action Programme.(2) The Forest Trust.18 / GROUPE AUCHAN 2011 SUSTAINABILITY REPORT GROUPE AUCHAN 2011 SUSTAINABILITY REPORT / 19

CUSTOMERSA NEW TAKE ON THEBUYING POWER IDEAPURCHASING POWER: “THE QUANTITY OF GOODS AND SERVICESTHAT CAN BE PURCHASED WITH ONE WAGE UNIT”. AUCHANENDEAVOURS TO BREAK DOWN THE BARRIERS OF PURCHASINGPOWER THROUGH ITS “RESPONSIBLE DISCOUNT“ CONCEPT. IT AIMSTO OFFER A RANGE OF ENVIRONMENTALLY-FRIENDLY AND HEALTHYPRODUCTS ACCESSIBLE TO ALL BUDGETS.OUR 3 GUIDING PRINCIPLES• Auchan’s consumer offer consists of responsible products that contributeto sustainable development, minimising the use of natural resources andgreenhouse gas emissions and promoting human health and social progress.• The store promotes the adoption of a healthy and balanced diet,developing an accessible range in response to individual consumer needs.• The “responsible discount store” concept is conveyed throughoutthe store’s communications: tangible examples to promote healthier eatingand respect for the environment.OUR 3 IDEAS FOR THE FUTURE• Allow customers to better identify the selection of responsible productsin our stores.• Continue to reduce packaging on house-brand products and to improvetheir eco-friendly design.• Provide young people with information on healthy eating habits.3 FIGURES FOR 201111,630 TONNESOF PACKAGING ELIMINATEDSINCE 2004 FOR HOUSE-BRANDPRODUCTS320HYPERMARKETS WITHA SELF-DISCOUNT SECTIONIN 10 COUNTRIESA TOTAL OF 1,195ORGANIC PRODUCTS CARRIED UNDERRETAILER BRAND NAMES IN ALLCOUNTRIES

CUSTOMERSTHE BEST FOR ONE AND ALLNUMBER OF PRODUCTS CARRIEDBRANDED ORGANIC PRODUCERETAILER (2011)PRODUCTS AND SERVICESFOR BETTER LIVINGTo better meet the needs and expectationsof inhabitants, Auchan aims to expand itssustainable production range. Its discountpricing policy means that organic productsare accessible to all budgets. These dedicateddepartments are being introduced in all stores.In 2011, the range of 50 organic products forunder €1 was maintained by Auchan France,in spite of the rising costs of raw materials.Luxembourg has one of the largestdepartments of this kind, carrying some1,500 organic products. The environmentalTOTAL NUMBER OF PRODUCTS CARRIEDNATIONAL BRANDED ORGANIC PRODUCEAND RETAILER (2011)HypermarketsChina ND 2,477Spain 91 957France 311 1,661Hungary 0 382Italy 150 794Poland 17 250Portugal 4 624Romania 58 58Russia 205 205Taiwan 124 722Ukraine 1 1Luxembourg ND 1,650SupermarketsFrance 166 564Spain 6 80Italy 52 541Poland 10 69AUCHAN PROMOTES RESPONSIBLE CONSUMERISM BY DEVELOPING NEW PRODUCTRANGES AND LESS EXPENSIVE FORMATS. TO HELP REDUCE ITS PRODUCTS’ECOLOGICAL FOOTPRINT, IT IS PARTICULARLY FOCUSED ON ELIMINATINGSUPERFLUOUS PACKAGING AND ENCOURAGING CUSTOMERS TO RECYCLE ORRE-USE THEIR ITEMS.message is publicised to the broadestpossible audience for maximum impact.7 promotional events were organised in6 countries in 2011. Highlights of the year,these events provided an opportunityto offer a wider range of eco-friendlyproducts at more affordable prices,thereby encouraging consumers to trythem out. To celebrate EnvironmentalProtection Day, Auchan Hungary hosteda trade fair for eco-friendly products,explaining their benefits and identifyingtheir positions on supermarket shelves.A healthy lifestyle is also about havingTONNES OF PACKAGING ELIMINATED ON AUCHANBRAND PRODUCTS SINCE 2004200720082009201020113,9157,6929,283HYPERMARKETS WITH A SELF-DISCOUNTDEPARTMENT200920102011* 51.9% of hypermarkets.9,966 +16.6%11,630275307320*+4.2%financial resources. But not at any cost!Banque Accord has proved to be particularlyactive in fighting for positive credit historiesin spite of the reluctance of many banksto do so. In other words – prevent excessivedebt by sharing client files.KEY FIGURE7sustainable development events organisedin 6 countries in 2011In Poland, Immochan offers to fill out taxreturns for its clients. Over 17,000 peoplehave benefited from this free service.SECOND LIFEWhat should customers do with batteries,light bulbs, plastic bags, household appliancesand recyclable packaging? To avoid throwingout such items and componentsindiscriminately alongside other waste,Auchan and Immochan have installed“environment” containers and facilitiesfor their collection. The recycling installationin Romania heightens consumer awareness.In Spain, the installation of the first“Ecoparque” at the Colmenar shopping centrein Madrid has allowed the collection of waste,electronic devices, light bulbs and cooking oil.In 2011, 11 events were organised in shoppingcentres across Europe to raise consumerawareness about the virtues of recyclingand re-using disposable products.The stores worked together with certifiedrecycling centres, and with organisationscollecting unwanted second-hand clothesand objects (see page 38). To markits 50 th anniversary, Auchan France alsoconducted 11 collection events inits 127 stores throughout the year.PACKAGING:THE BARE MINIMUMReduced packaging means reducedconsumption of raw materials such as paper,cardboard, glass, aluminium and plastic.It also alleviates consumer waste bins andsubsequently the task of waste processingcentres. It optimises the loading of carriers’trucks, thereby reducing greenhouse gasemissions.Since 2004, 11,630 tonnes of packagingwere eliminated from house-brand foodand non-food products. It is becomingincreasingly challenging to make furtherprogress in this area and the focus has nowturned to the eco-design of such packaging.At the end of 2010, the Auchan Groupenhanced its national packaging reductionprogrammes in 5 European countries, creatingan international group for exchanging goodpractices and developing joint initiatives.Some 20 tonnes of cardboard and 20 tonnesof CO 2 were saved simply by eliminatingcardboard toothpaste packaging. AnotherBULKCLOSE-UPFighting waste landfill, reducingpackaging to its most simple form andallowing customers to only pay for whatthey want to consume at the lowestpossible price: such are the virtuesof the 320 self-discount sections availablein hypermarkets since the end of 2011.The range mainly concerns food productsin Western Europe, but is also beingdeveloped for non-food consumerproducts in countries such as Romaniaand Russia. These departments includeflour, oil, fruit juice, washing powderand even DIY screws. The product rangeis very broad indeed!Combining economy and ecology, AuchanFrance was the first mass retail brandto sell organic products in bulk (pulses,pasta, confectionery, coffee, etc.) andhas done so in 50 of its stores.proactive example is the eco-designof low-consumption light bulbs, whichwas awarded with a Packaging Oscar.The new packaging was developed andpatented by Auchan. It is fully recyclableitself and is designed to use a minimumof 80% recycled materials.22 / GROUPE AUCHAN 2011 SUSTAINABILITY REPORT GROUPE AUCHAN 2011 SUSTAINABILITY REPORT / 23

CUSTOMERSFEEDING VITALITYIMPROVEDFOOD SAFETYFaced with legitimate requirements for foodand environmental safety, Auchan bringstogether a network of internal experts fromits different countries on a yearly basis todiscuss the challenges and risks experiencedin all of its production and retail sites’ regions.At the start of 2012, 70 subjects were studiedto gauge their impact on consumer life,including azo dyes, parabens and post-Fukushima radioactivity.Auchan has developed product ranges basedon these studies, such as children’s rangesfree of azo dyes and a paraben-free cosmeticsNUMBER OF HOUSE-BRAND PRODUCTS STILL CARRIED WITHREVISED INGREDIENTS SINCE THE START OF THE SCHEME2010201120102011AUCHAN IS COMMITTED TO PROMOTING HEALTHY AND RESPONSIBLE EATING. ITSSTORES DEVELOP A RANGE OF NUTRITIOUS FOODS SUITABLE FOR A HEALTHY,BALANCED DIET. BY PROMOTING AND RAISING AWARENESS ABOUT HEALTHYEATING HABITS, AUCHAN ENCOURAGES CUSTOMERS TO ADOPT A GOOD DIET FORA HEALTHIER LIFE.3835002,6382,844+30%NUMBER OF AUCHAN HOUSE-BRAND PRODUCTS WITHBRAILLE LABELS+7.8%range. Some subjects are passed on toindependent scientific networks for furtherin-depth study.Allergy, cardiology and toxicology specialistsare consulted to gain a better understandingof the scientific debates and to better answercustomer queries. Working groups arethen formed to focus on very specific subjectssuch as supplier assessments (a processstandardised for all Auchan countries),while Portugal, Spain, Italy and Franceagreed to clamp down on pesticide useby implementing more stringent inspectionsand identifying target product categoriesfor monitoring in Europe.In 2011, Auchan also endeavoured to reducethe proportion of GMOs in animal feed.A tracking system is being implementedto track the full supply chain from the animalfeed through to the end product on the shelf.DIVERSE, ADAPTEDAND ACCESSIBLE PRODUCTSThe Group uses the services of nutritionistconsultants to raise health and diet awarenessamongst product and packaging engineers.By 31 December 2011, 500 recipes forhouse-brand products had been revised sincethe scheme began. A total of 16 tonnes of salt,grease and sugar were eliminated in anattempt to fight obesity, diabetes, cholesteroland high blood pressure. Special dietarydemands also apply to the fresh food sector:the salt content in bread, for example,has been reduced by 18% since 2008 inFrance. Particular attention has been focusedon the Rik & Rok range for kids, especiallyon the snack range available in France, Spainand Portugal. Since 2010, all Auchan Francestores have a display island featuring 8 fruitsand vegetables priced under €1 all year long.The range will be extended to 14 productsin 2012. The meat department sells portionsof meat for under a euro per person.Organic and frozen products are also availableat the same price.House-brand product ranges have beendesigned in response to specific dietaryrequirements. With low-fat, salt-free,gluten-free, sucrose-free and lactose-freeranges, alternatives are offered with similarflavours to the products that they arereplacing.INDICATOR2,844products labelled in BrailleAuchan contributes to independent livingfor blind and vision-impaired people. It isthe only European mass retail store to labelits house-brand products in Braille. In 2011,2,844 products with Braille labels were carriedin France, Spain, Portugal and Romania,facilitating product identification for peoplewith sight problems. This scheme is supportedby the “Donne-moi tes yeux” organisation.The effectiveness of touch reading ismonitored regularly by means of in-storeinspections conducted by blind people.AWARENESS-RAISINGSince 2006, healthy eating programmes havebeen formalised in 5 countries in tandem withthe growing importance of dietary concerns.These programmes aim to develop healthyliving habits from childhood, highlightingthe benefits of following a balanced dietand taking regular exercise. The messagesare communicated internally to employees andto our customers through a variety of media.Brochures, digital devices and smartphoneapps are available, with well-balanced recipeideas featuring seasonal produce; in-storeevents are hosted by culinary specialistsdemonstrating simple recipes and offeringtastings. Hungarian customers, for example,have been able to watch demonstrations onpreparing seafood, which is rarely served up inthe vast majority of households. In some storesand shopping centres in France and Portugal,the services of medical staff are called uponto carry out glycaemia and cholesterol checks,BMI calculations and health treatments forcustomers. Simply Market and Auchan Franceanswered positively to an experiment initiatedby the Ministry of the Environment aimingto expand environmental labelling on retailerbranded products. Over 10,000 customersvoiced their opinion about the representationCLOSE-UPBALANCE 2.0and understanding of the indicators used.Another original initiative in Portugal tookthe form of awareness-raising programmesabout healthy eating, divided into producttypes and age groups to cover the fullspectrum targeted.In Italy, Auchan and Simply Marketset up a partnership with Barilla whichwill be tested in 2012. Aimed towardsfamilies with children of pre-schooland primary school age in the northeastof the country, the project aimsto provide them with information aboutthe food pyramid and to apply theirknowledge in a practical shopping situation.Lastly, for the European SustainableEnergy Week, Alcampo distributed 2 millionbookmarks to its customers with 5 differentmodels available, offering day-to-dayadvice on saving energy.Simply Spain continues to promote healthy eating and in2011 launched its site www.simplysano.es in partnershipwith San Jorge University in Zaragoza. Via this platform,which was developed jointly with students and professorsspecialised in health, the customers can ask questionsto a nutritionist, post healthy recipes for all Web users,or even take a virtual tour of the health food sectionin a store to browse through the range of organic and healthfood products.24 / GROUPE AUCHAN 2011 SUSTAINABILITY REPORT GROUPE AUCHAN 2011 SUSTAINABILITY REPORT / 25

CUSTOMERSRESPONSIBLECOMMUNICATIONSOUR CORPORATE AND BUSINESS COMMUNICATIONS PROVIDE TANGIBLE EXAMPLESOF COMPANY ACTION AND COMMITMENTS, WITH DIRECT BENEFITSFOR CUSTOMERS’ LIVING ENVIRONMENTS AND CONDITIONS. PUBLICATION PROCESSESARE CAREFULLY CONTROLLED TO MINIMISE ENVIRONMENTAL DAMAGE AND TO MAXIMISETHE IMPACT OF THE MESSAGES CONVEYED.RAISING AWARENESS AMONGSTYOUNG GENERATIONS: BANKINGON THE FUTURERaising awareness amongst young peopleabout the different aspects of sustainabledevelopment involves encouraging a changein behaviour to ensure a more eco-responsiblefuture. The Rik & Rok clubs are aimedat 4- to 10-year olds in French, Spanishand Portuguese hypermarkets. Their activitiesare centred on topics relating to sustainabledevelopment, such as saving naturalresources, sorting and recycling waste,healthy eating and social solidarity.The France club has over 90,000 membersand the Spanish club has over470,000 members together with the other“Joven Team” club. Every two months,children receive a free colour magazineby post, featuring articles on the environment,comic strips and simple recipes. In parallel,events are organised in stores and eco-friendlyfreebies are given away. The El Ventanalde la Sierra shopping centre, in the suburbsof Madrid, exhibited an eco-designed woodenhouse in front of its main entrance,with power provided by two solar panelsand a wind generator. Children of all ageswere able to take a guided tour aroundthe house to find out about eco-friendlytechnologies such as bioclimatic architecture,renewable energy and waste management.IDENTIFYING SD PRODUCTSIN STORESA guidance system has been introduced usingsigns to inform consumers about Auchan’sresponsible product range. This systemis in place in all 12 of the Group’s countriesand uses graphic symbols to help customersidentify products with reduced packagingand those that have been sourced throughresponsible partnerships with regionalproducers that protect the environmentor save energy. These signs are either affixedto the packaging itself, or are displayedon 18 x 18 cm signs or on giant banners;the same graphic symbols are usedin the Group’s advertising brochures.A sustainable development businesscommittee was set up in 2008 at AuchanFrance to promote responsible product listing.This committee is composed of a groupof correspondents, one from each ofthe five product and services divisions inthe purchasing group. It conducts detailedanalyses of each product category, thenproduces listing proposals based on theseanalyses. It implements indicators andencourages buyers at the purchasing groupto consider sustainability factors in theirchoices, to share good practices and to discussany issues or concerns. The Immochanshopping centres use signs withenvironmentally related informationand have dedicated areas for informingcustomers about the company’s sustainabledevelopment commitments. Posters,stickers and screens raise awarenessabout environmental protection and provideinformation about the shopping centre’senergy performance, while explaininghow the centre uses technology to saveenergy.RESPONSIBLE MARKETINGAs part of its forest policy which wasdrafted at the end of 2011, the internationalsustainable development synergy hascommitted to making an inventory in 2012of paper consumption in each country’shypermarkets. In France, Spain and Italy,100% of national brochures are FSCor PEFC certified.For three years now, Auchan Hungaryhas been endeavouring to decreasethe size and weight of paper in brochuresdistributed, a 10% saving per issue,or 5.1 tonnes per year.As a member of the UDA (1) , Auchan Franceparticipated in writing its charterof advertisers’ commitments to responsiblecommunications. This document definesfive major commitments made bythe company: to establish a code governingresponsible communications and marketing;to include all external communicationsin this code and encourage responsiblebehaviour amongst its audience; to protectcustomers’ personal information when usedfor marketing and business purposes;to undertake an internal approval processfor sustainable development communicationsbefore its external distribution; andto incorporate environmental impact factorsinto the media selection process. Auchancommits to presenting the UDA and ARPP (2)with a yearly, transparent report on progressmade.KEY FIGURE100%of national brochures distributed by Auchanin France, Spain and Italy are FSC or PEFCcertifiedCONVEYING RESPONSIBLEMESSAGES: FROM EMPLOYEESTO CUSTOMERSOur employees are in constant contact withcustomers and are kept informed via a varietyof media. Most countries have a dedicatedintranet page for news on sustainabledevelopment. Each month, Auchan Francecelebrates its “sustainable initiative of themonth” with a press release and poster forin-store offices so that they can promotethe company’s commitments to sustainabledevelopment. Each issue of Agora (the Group’sinternal magazine, which is translated for thedifferent countries), features a page dedicatedto the Group’s ecological and social projects.To show customers a positive image of itsstores’ social involvement, Auchan Italydisplays team and individual achievements atthe store entrance under different categories(health and well-being, local economy,environmental protection and social solidarity).CLOSE-UPIN-STORE SUSTAINABLEDEVELOPMENTCOMMITTEESAll Auchan France and Auchan Russiahypermarkets have a sustainabledevelopment committee.They contribute to the Group’s proactiveapproach, offering original initiativesin line with the company’s policies.Coordinated by the store managers,these committees are composedof a dozen enthusiastic volunteeremployees and managers. They worktogether to implement solutions toreduce energy consumption, promotewaste sorting and recycling, andcommunicate with customers, identifyingnew avenues for progress and expandingtheir involvement with local populations.(1) French union of advertisers.(2) French advertising regulatory authority.26 / GROUPE AUCHAN 2011 SUSTAINABILITY REPORT GROUPE AUCHAN 2011 SUSTAINABILITY REPORT / 27

ENVIRONMENTIDEAS TO BENURTUREDEVERY DAY, MILLIONS OF CUSTOMERS USE THE GROUP’S STORES.THE GROUP IS THUS CONSCIOUS OF THE ECOLOGICAL FOOTPRINTGENERATED BY ITS DIFFERENT ACTIVITIES AND CONSTANTLYSTRIVES TO INTRODUCE INNOVATIVE SOLUTIONS TO LOWER ENERGYCONSUMPTION AND CONTRIBUTE TO FIGHTING GLOBAL WARMINGAND SAVING BIODIVERSITY.OUR 3 GUIDING PRINCIPLES• Auchan takes action to best maintain biodiversity by recycling wastefrom its activities, reducing the distribution of disposable plastic bagsand expanding the responsible management of natural resources.• The Group’s companies control their energy consumption, settingambitious objectives for reducing energy consumption, training employeesin good practices, and increasing the share of renewable energy it uses.• All new buildings are designed in accordance with sustainableconstruction principles, thus minimising the Group’s carbon footprint.Once the building is up and running, an environmental assessment isconducted to gauge any changes and define objectives for improvement.OUR 3 IDEAS FOR THE FUTURE• Target: 2% reduction in electricity consumption in stores and shoppingcentres in 2012.• 75% of waste recycled by hypermarkets in 2012.• Ensure that new shopping centres receive environmental certification(BREEAM or LEED).3 FIGURES FOR 2011–3.6%OF ELECTRICITY CONSUMPTIONIN HYPERMARKETS67%WASTE RECYCLED ON AVERAGEBY HYPERMARKETS26ISO 14001 CERTIFIEDSTORES

ENVIRONMENTBETTER PRESERVENATURAL RESOURCESKEY FIGURECLOSE-UPHYPERMARKETS: DISTRIBUTION OF CARRIER BAGSPER SQ. M OF SHOP FLOOR2008200920102011320312301–3.67%460HYPERMARKETS: AVERAGE NUMBER OF LITRES OF WATERPER SQ. M OF SHOP FLOOR2011 1,762HYPERMARKETS: WASTE RECOVERY RATE2011201146.2%67.1%HYPERMARKETS: AVERAGE PERCENTAGE OF EMPLOYEESWITH TRAINING IN WASTE MANAGEMENT– 51,000,000plastic bags distributed freeof charge in 2011REDUCE THE ENVIRONMENTALIMPACT OF PLASTIC BAGSPlastic bags have a negative impact onbiodiversity when disposed of improperly.This is why Auchan aims to reduce theirdistribution and offer customers biodegradableor re-usable alternatives.GREEN DAYFor the company’s 1 st “Green Day”,most stores in France, Luxembourg,Ukraine, Romania, Portugal and Russiapartnered up with local communities andschools to plant 50 trees for each hypermarket,and 5 trees for each supermarket in citycentres. Of course, 50 is a symbolic numberfor the Group as it celebratesits 50 th anniversary. In Spain, Alcampopartnered up with the WWF to conductreforestation work around Toledo, in a reforestation area classified as top priorityby the Spanish Ministry of the Environment. In Italy, Auchan partnered with the PandaExplorer project conducted by the same NGO. One tree was donated for each memberschool affiliated with the store.Auchan also gave its name to a 2,000-tree mangrove planted in China to fight desertgrowth and sand storms. This project was coordinated by the Roots and Shoots NGO.In Taiwan, 1,100 trees were planted across a hectare of land in the Taitung coastal park.AUCHAN’S VARIOUS OPERATIONS HAVE A CLEAR IMPACT ON THE POPULATION,WITH MILLIONS OF CUSTOMERS COMING TO OUR STORES OR SHOPPING CENTRESEACH DAY. WITH THIS IN MIND, THE COMPANY SEEKS TO MINIMISE ITS FOOTPRINTAS A CONTRIBUTION TO PRESERVING THE GLOBAL COMMONS.SORTING AND RECYCLINGOUR WASTEThe international sustainable developmentsynergy was launched in 2008 and right fromthe outset established waste recycling as oneof its three priorities. Exchange of experiences,good practices and training modules areavailable to improve recycling operations on adaily basis. Every year, the Group is committedto announcing the recycling rate and thepercentage of employees with wastemanagement training as a way of measuringprogress and identifying remaining objectives.Situations are different in each country due todifferences in regulations and the availabilityof official waste reprocessing systems.Auchan France explores alternative wastereprocessing systems, such as the anaerobicdigestion of organic waste, which has beenintroduced in 68 stores.In 2011, Alinéa implemented automaticsystems for separating plastic and cardboardin its waste sorting lines.The store also uses the services of an SMEthat refills empty ink cartridges for its printers.Alcampo published a “comprehensive wastemanual” identifying the different typesof waste generated by its operations,the life cycles of this waste and the principlesof waste management.In Hungary, Auchan experimented withrecycling part of its organic waste, outsourcingits transformation into compost and thenselling this compost in its stores. In theSaint-Priest shopping centre (Porte des Alpes),Immochan tried out an innovative wasteprocessing system. This year, largely dueto optimised containers, the recycling ratehas risen from 16% to 50%, while store loadshave decreased by 67% and truck traffic hasdeclined significantly.Complementary carrier bags are no longerdistributed in France, Italy, Romania, Chinaand Taiwan. Spain and Hungary also adoptedthis policy at the start of 2012.Auchan China signed a cooperationagreement with the Champions Earth companyfor selling biodegradable bagsmade from calcium carbonate material,which requires less energy for themanufacturing process. In Portugal,a partnership was signed with APED (1)which resulted in a new re-usable bottlemade of recycled PET.For the Group’s 50 th anniversary, AuchanFrance produced a line of sustainabledevelopment cotton bags.The design printed on these bags was createdby two young fashion students. For eachbag sold, 10 centimes donated tothe World People organisation, whichsupports the reintegration of womeninto the workforce in India.PROMOTING AND PROTECTINGGREEN AREASThe company makes maximum useof certified wood to contribute to sustainableforestry. Some 90% of outdoor furniture soldby Alinéa is FSC certified or producedby TFT projects. Auchan challenges itselfon its own paper consumption, reducingthe weight of paper and decreasing printoperations favouring PEFC and FSC labels.In 2011, Banque Accord offered all employeesthe chance to replace their paper payslipswith electronic payslips. For two yearsrunning, Auchan Poland has createdfive gardens or green areas near its stores,or jointly with neighbouring primary schools.In May 2011, the Italian Monza shoppingcentre inaugurated a cross-generationalrecreation area. A 70,000-m 2 parkis now open to the public, featuring fitnessinstallations and a bicycle path.SUSTAINABLE WATERMANAGEMENTWater is essential for life and biodiversity,and is a major concern for 1 third of humanity.The Group sets itself yearly objectivesfor each country and develops new watersavingprocesses. The Group’s average waterconsumption in 2011 decreased by 3% to 20%in Western Europe.Waterless urinals and rainwater collectionsystems on store and car park roofs areon the drawing board for new constructionsor renovation projects. A “green” land registrywas created at the Pontet shopping centre,in Avignon. This process maps out the urbanplant heritage and is used to select plantsthat will not impact the existing ecosystem.The project led to a significant drop in waterconsumption (10,000 m 3 ) and eliminatedthe use of fertiliser.(1) Portuguese association of retail companies.30 / GROUPE AUCHAN 2011 SUSTAINABILITY REPORT GROUPE AUCHAN 2011 SUSTAINABILITY REPORT / 31

ENVIRONMENTCONTROL OUR ENERGYCONSUMPTIONHYPERMARKETS: AVERAGE ELECTRICITY CONSUMPTION(KWH/M 2 OF SHOP FLOOR)HYPERMARKETS: AVERAGE RATE OF EMPLOYEESWITH TRAINING IN ENERGY SAVINGS200920102011576557538–3,6%201133.8%HYPERMARKETS: APPLICATION OF GOOD PRACTICES TO CONSTRUCTION82%66% 65%57%46%41%76%66%10 11 10 11 10 11 10 11 10 11 10 11 10 11 10 11 10 11 10 11 10 11China Spain France Hungary Italy Poland Portugal Romania Russia Taiwan UkraineCONTROLLING ENERGY CONSUMPTION IS A PRIORITY FOR THE GROUP. REGULARMEASUREMENTS, STAFF AWARENESS AND EXCHANGE OF GOOD PRACTICES WILLCONTRIBUTE TO ACHIEVING THIS GOAL. AT THE SAME TIME, THE COMPANY ISMAKING INVESTMENTS TO INCREASE THE SHARE OF RENEWABLE ENERGY ITUSES.CONSUMPTIONOBJECTIVESIn 2008, the Group adopted meteringand sub-metering guidelines to comparemeasurements, identify waste and optimiseenergy consumption, separating hypermarketmetering from shopping centre metering.In France, Auchan is gradually outfittingits stores with BMS (building managementsystems) technology. This computerisedsystem is installed in 24 stores and optimisesall forms of consumption (refrigeration,lighting, etc.), reducing energy use by 20%on average.Magnetic ballast lighting systems on the shopfloor are gradually being replaced by60% 58%86%74%70%58%T5 electronic ballast systems. The companyhas also committed to fitting 75% of itsrefrigeration cabinets with vertical doorsby 2020 in an agreement with the FrenchMinistry of Sustainable Development.Energy-saving actions implementedin Italy have reduced energy consumptionby 15% over the past three years.The Toledo hypermarket in Spain, whichopened in 2011, was the first to use ecofriendlycooling plants. When used in liquidform, CO 2 offers an attractive alternativethat does not damage the ozone layerand has around 1,000 times less impacton global warming than traditionalalternatives.96%90%23%40%56%46%60% 60%In 2011, the average electricity consumptiondropped by 3.6% for hypermarkets comparedwith 2010. Italy has the lowest averageconsumption, with 463 kWh m 2 ofshop floor, while Ukraine has achieveda record-breaking drop of 10% in itsconsumption between 2010 and 2011and is targeting a further 5% decreasefor 2012.INVOLVING EMPLOYEESIN THE ENERGY SAVING EFFORTTraining in energy saving practices increasedin 2011. In some countries such as China, thetraining rate is close to 100%. All newcomersare required to take this training module.In Italy, a fortnightly “eco-newsletter” ispublished for employees, providing the latestenergy-saving results. Energy performancestatistics are also displayed at store entrancesto encourage employees to keep up their goodwork.In Taiwan, three stores reduced theirconsumption by 16% in one year. They wereawarded a certificate from the Ministryof the Environment in recognition of theircontribution to reducing carbon emissions.Simply Market raises awareness amongstits employees about simple and economicalgood practices, such as closing freezer andrefrigerator cabinet doors, not overloadingrefrigerators, maintaining filters and fans,and switching off radiators and airconditioningsystems when closing the store.Good practice sheets on electrical powerpublished by the technical departmenthave gradually been rolled out since 2009in hypermarkets throughout the differentcountries. Each country is yearly assessedon their application of the following sevenessential good practices: appointmentof a “Mr Energy”, use of T5 strip lightingon the shop floor, closing refrigerator andfreezer cabinets, eliminating lighting in thesecabinets, installing sliding glass doorson cabinets, adapting lighting use to actualneeds, and installing motion detectorsin rooms that are used intermittently. Groupcompetitions are held every two years in thehypermarket and Immochan divisions to rallyteams into action and to award their bestinitiatives.KEY FIGURE170Italian Simply Market stores poweredby hydropowerCLOSE-UPINCREASE THE RENEWABLEENERGY SHAREAuchan has been investing in photovoltaic andgeothermal energy over recent years to meetEU objectives for increasing the renewableenergy share to 20% by 2020. In France,a central services building used by over1,000 employees every day andthree hypermarkets (Blois Vineuil, Montauban,Lacroix-Saint-Ouen) are equipped withrenewable power, as is the Pontet Alinéa store.Hydropower is used by 170 Italian SimplyMarket stores. In Portugal, the 19 Auchanservice stations produce solar energy and resellit to EDP (1) . Each system has 30 secondgenerationphotovoltaic solar panels producinga total of 4.35 kWp (2) . This investmentmomentum slowed down in 2011, in spite ofthe tough financial climate, a significant dropin feed-in tariffs for green electricity and taxincentives in France.KECSKEMÉT,AN ENERGY-SAVINGEXPANSIONIn December 2011, to mark the inaugurationof the new expansion at the Kecskemétshopping centre, Immochan Hungary presentedits different project objectives, resolutelyfocused on energy savings and featuring:– a roof-mounted solar air heating system(Solarduct ® ) reducing CO 2 emissionsby 32 tonnes a year and reducing energy consumption by 50% (gas and electricity);– LED lighting for partner stores;– waterless urinals in the men’s toilet facilities;– motion detection taps reducing water consumption by 20% to 30%;– new-generation hand dryers (–20% energy consumption per year);– motion detectors in low-occupancy areas of the mall (storerooms, offices, toilets, etc.).(1) Electricity of Portugal.(2) kilowatt-peak.32 / GROUPE AUCHAN 2011 SUSTAINABILITY REPORT GROUPE AUCHAN 2011 SUSTAINABILITY REPORT / 33

ENVIRONMENTBUILDING, RENOVATINGAND OPERATING SUSTAINABLYTHE DEVELOPMENT AND TECHNICAL TEAMS ARE COMMITTEDTO PRIORITISING SUSTAINABLE CONSTRUCTION TECHNIQUES FOR ALL RENOVATION,EXPANSION AND NEW CONSTRUCTION PROJECTS.THE SITES’ ENVIRONMENTAL IMPACT IS ASSESSED TO DEVELOPEVER MORE SUSTAINABLE SOLUTIONS.SUSTAINABLE CONSTRUCTIONFOR ECO-EXCELLENCEDesign, construction, management, fitting-out,operations: sustainable and responsiblebuilding processes, together with overallenvironmental management, are deployed atall levels of the company. Immochan has madea firm commitment to this path, with two keyobjectives: to control the environmental impactof its buildings and quality of life for itsoccupants.Since September 2011, the company has beenapplying its environmental quality charter fornew shopping centre developments throughoutall European countries. This charter is designedfor Auchan and Immochan’s technical anddevelopment teams and their partners, andprovides formal architectural and landscaperequirements and recommendations toguarantee best constructability practices.The charter includes BREEAM (1) requirements,the most widespread environmentalcertification process used in the real estatesector, and seeks a “Very good” rating,as achieved for the “Ilo” project in Épinay-sur-Seine scheduled to open in 2013. It coversthe smooth integration of developments intothe immediate environment, policies on power,water and waste management, environmentalquality of interior designs and pollutioncontrol.In China, Auchan was the first mass retailerto participate in a project to acquire carboncredits, and two of the Wuxi stores arecurrently in the process of obtaining LEED (2)certification, another set of guidelines widelydeployed in North America and Asia.Lastly, two Romanian hypermarkets areparticipating in the EU Green Light programme,with their overhead glass roof installations.KEY FIGURE26ISO 14001 certified hypermarketsin 2011DEVELOPING ENVIRONMENTALSITE MANAGEMENTSeveral stores have obtained certification orofficial recognition for their sustainablemanagement processes. In 2011,26 hypermarkets had ISO 14001 certification.The implementation of this type ofenvironmental management system isunderpinned by a voluntary approach ensuringcompliance with regulations, anticipatingamendments and improving their application inline with a continuous improvement strategy.Since 2008, Auchan France has been usingan internal environmental managementassessment system for its stores. This providesa structured procedure for all environmentalactions conducted in stores, purchasing groupsand eventually at the warehouse. It is dividedinto three sections: compliance withregulations, compliance with Auchan Francecommitments, and local site-specific initiatives.There are three performance levelclassifications: A, A+ and A++. In 2011, AuchanFrance achieved its two objectives, qualifyingall its stores and doubling the number of storeswith the highest level of classification(15 A++).MEASURING COMMERCIAL SITES’CARBON FOOTPRINTSince 2008, the Group has set itself objectivesfor reducing energy consumption and recyclingwaste across all sites. To prepare for measuringits carbon footprint, Auchan tried outtwo different processes in France and Spainin 2010. The first is a micro processdeveloped by ADEME (3) .The second is a macro process. All countriesopted for the latter, which is less complex andpinpoints the main carbon emission points andidentifies priorities for action. In 2011, somecountries started recording the consumptionof coolant used for refrigeration and airconditioning in stores, which representsapproximately a quarter of their carbonfootprint.To decrease the environmental impact ofcoolant, low-emission fluids are used wherepossible and existing equipment is graduallybeing replaced. Auchan provides its customerswith information on car-pooling, encouragesCLOSE-UPthe use of public transport and providesbicycle parking facilities with the aim ofreducing the carbon footprint of customertransportation.Auchan provides a shuttle bus service fromtown centres to some hypermarkets in Russia,Romania, Ukraine, Hungary, Taiwan and China.The very concept of a shopping centre is anecological one, in that it meets many differentcustomer needs on one site, therebyrationalising transportation and minimisingCO 2 emissions. In Italy, Auchan is a foundingmember of the Torino Environment Museum.The museum exhibits a reproduction of one ofthe store’s aisles, accompanied by instructivesigns, to present action taken by the storeto reduce its environmental impact.SHARING GOOD PRACTICESImmochan held its first sustainable development contestin 2011. This contest provided an opportunity to inventorya vast number of good practices that are insufficientlyused and shared. These are now listed in good practicesheets that address topics such as rainwater collection,overhead north-facing glass roofing, double doors thataccount for average wind direction and public transportaccessibility.These documents provide an overview of the programmeand assess the complexity of its implementation, its returnon investment, environmental impact and ease of use.Through exchanging good practices, the successful cookingoil collection project in the Burgos shopping centre, in Spain, inspired three other shoppingcentres in Madrid to install their own collection points.Each year, good practices are submitted to a panel of experts so that it may identify thosethat could potentially be included on the “essentials” list.(1) BRE Environmental Assessment Method.(2) LEED: Leadership in Energy and Environmental Design.(3) Environment Adgency and energy management.34 / GROUPE AUCHAN 2011 SUSTAINABILITY REPORT GROUPE AUCHAN 2011 SUSTAINABILITY REPORT / 35

SOLIDARITYTHE IDEA OF PUTTINGOTHERS FIRSTTHE GROUP OPERATES IN 12 COUNTRIES. THE BROAD DIVERSITY OFFINANCIAL CONTEXTS, SOCIAL ENVIRONMENTS AND SALESPOLICIES ACROSS THE DIFFERENT REGIONS HAS GENERATED AREAL CULTURAL ACCEPTANCE THROUGHOUT THE GROUP. THEGROUP’S INTEGRAL APPROACH TO SOLIDARITY IS UNITED BY THISVERY DIVERSITY.OUR 3 GUIDING PRINCIPLES• Strengthen relations between stores, local residents and neighbouringdistricts, running schemes and initiatives to promote integration and raiseawareness about social and environmental issues.• Encourage employees to initiate or run community projects, to becomepersonally involved in such projects and even to team up with customersto foster local initiatives in response to local needs.• With Auchan youth foundation’s wider scope of operation, to offera structure, expert support and financial resources to each of the Group’scountries so that they may further the reach of their social corporateresponsibility.OUR 3 IDEAS FOR THE FUTURE• Support at least one project for each country through the Auchanyouth foundation in 2012.• Organise food donations in countries where this is authorised.• Include more employees in corporate philanthropy initiatives.3 FIGURES FOR 2011€2.7 MBUDGET DEDICATEDTO SOLIDARITY173NOT-FOR-PROFIT PROJECTSSUPPORTED BY AUCHAN, SIMPLYAND IMMOCHAN FOUNDATIONS2,583 TONNESOF FOOD DISTRIBUTEDBY AUCHAN FRANCETO FOOD BANKS

SOLIDARITÉUN ENGAGEMENT MULTI-NIVEAUX3 IDÉES DURABLES2009 2010 2011Total heures 1 1 1Total heures 1 1 1Total heures 1 1 1Total heures 1 1 1XXXXXXXXXXXXXXXXXXXSOLIDARITYA MULTI-LAYERED COMMITMENTHYPERMARKETS: TOTAL SOLIDARITY BUDGET20102011AUCHAN’S SOLIDARITY INITIATIVES ARE DEPLOYED AT SEVERAL LEVELS, WITH THEPRIMARY OBJECTIVE OF ACTIVELY CONTRIBUTING TO THE LOCAL COMMUNITY. TOCOORDINATE THE NETWORK BETWEEN STORES AND THEIR SURROUNDINGPOPULATIONS, THE COMPANIES PARTNER UP WITH NATIONAL ENVIRONMENTALAND HEALTH CAMPAIGNS, AND ORGANISE FOOD COLLECTION AND RECOVERYPROJECTS.LOCAL ACTIONON A DAILY BASISMore than simple places of business, ourstores participate actively in local communitylife. Each site provides a wide array of jobsand a meeting point for the community, actingas a vector for social interaction and cohesion,underpinned by the active involvementof its staff, partners and customers.The Group’s decentralized structure makesit possible to meet the specific needs ofneighbouring communities. Auchan Hungaryallocated 100,000 forints to each of its12 stores to support a community projectintroduced by one of its employees.For six years now, Simply Market has beenconducting its proactive “Quartiers d’énergie”programme, which aims to support fouror five local community organisationsthrough funding sourced from co-brandedproducts or customer donations.The Auchan stores are actively committedto providing food aid to those in hardship.In France, food distributed by hypermarketsto not-for-profit organisations in 2011(Restaurant du cœur, food banks,Secours populaire, etc.) amountedto the equivalent of 16 million meals,i.e. 23% more than in 2010.€2,708,000€2,722,500KEY FIGURE2,583tonnes of food distributed by AuchanFrance to food banksIn 2011, Auchan France tried out its skillssponsorship scheme with “Citizen Days”.The stores encourage their 52,000 employeesto volunteer during their working hoursfor organisations serving the community.NATIONAL COORDINATIONThe company coordinates policies to serveworthy causes in all countries. Auchansupports medical research (Italy) and socialintegration and environmental protection(Spain) by selling co-branded carrier bags withprofits donated to community or partnerorganisations.In 2011, Auchan France invited its customers toparticipate in projects that involved collectingunwanted second-hand goods. Some271,000 school bags, jeans, shoes, booksand electrical appliances were collected inpartnership with community organisations(Le Relais, Emmaüs, etc.), which thenre-distributed, recycled or resold these itemsto underprivileged communities.In Spain, Alcampo held the 8 th annual “Ningúnniño sin juguete” event, collecting 58,000 toysfor underprivileged children for Christmas,working jointly with local charitableorganisations. Further east, all Ukraine storessupport an orphanage.The Italian hypermarkets and supermarketsprovide ongoing support for Telethonprogrammes via initiatives and in-store eventsthroughout the year. The profits are used tofund research on medical treatment for orphanneuromuscular diseases. A staggering sum of€2 million was collected again this year.PROFESSIONALIZINGPHILANTHROPY VIA FOUNDATIONSFoundations provide a structured frameworkfor a well-thought-out corporate philanthropypolicy that is carefully implemented andmonitored over time.THE AUCHAN GENERATIONS FOUNDATION10 years after it opened its 1 st store, AuchanRussia enhanced its corporate responsibilityby creating its own foundation structure.The Auchan Generations Foundation supportsprojects to assist young people and children,targeting three specific areas for action:vocational training for retail-based professions,support for orphaned, ill or disabled childrenand incentives for sports activities.ACHIEVEMENTS€487,800for 28 projects supported in 2011The foundation has a yearly budget of€750,000. In its 1 st year, it funded theacquisition of medical equipment for thedepartment of oncology in a Moscow hospitaland the acquisition of heart disease diagnosticequipment for a health care facility inSaint-Petersburg. Projects to renovate buildingsand provide sports grounds in orphanages andschools contribute to improving the livingenvironment for resident children.THE SIMPLY TASTE OF SHARING FOUNDATIONThe Simply Taste of Sharing Foundationsupports social solidarity and integrationprojects related to healthy eating. Each projectis sponsored by an employee and bearstestimony to the social bond between thecompany’s teams and the local community.ACHIEVEMENTS€288,400for 56 projects supported in 2011For two years now, the foundation has beenworking in partnership with the ANDES(national association for the developmentof welfare groceries) organisation. Twelvedistribution points are subsidised by thefoundation, and Auchan employees transfertheir knowledge to volunteer workers byproviding training in food safety and stockmanagement. In 2012, the project receivedthe special jury’s choice award from theFrench Ministry of Ecology and SustainableDevelopment, in the “Professionalization”category.IMMOCHAN FOUNDATION FOR SOCIALENTREPRENEURSHIPFor two years now, the Immochan Foundationfor social entrepreneurship has beensupporting social entrepreneurs in the90 employment catchment areas whereImmochan serves as site developer andmanager. Creating jobs, social cohesion andadded environmental value, all the projectssupported comply with the principles ofresponsible management.ACHIEVEMENTS€172,000for 10 projects supported in 2011The Créenso award scheme was set up jointlyby the IESEG (1) and the foundation tocontribute to the success of young enterprisesgiving priority to human and social interestsover financial objectives. The prize winnersbenefited from assistance, support andknowledge transfer from students who, as partof their course, offered their management skillsto these companies for a period lasting severalmonths. The foundation awarded €5,000 to€10,000 in funding to the best three projects.(1) Institute of economic science and management.38 / GROUPE AUCHAN 2011 SUSTAINABILITY REPORT GROUPE AUCHAN 2011 SUSTAINABILITY REPORT / 39

SOLIDARITÉFONDATION AUCHAN POUR LA JEUNESSE3 IDÉES DURABLES2009 2010 2011Total heures 1 1 1Total heures 1 1 1Total heures 1 1 1Total heures 1 1 1XXXXXXXXXXXXXXXXXXXSOLIDARITYAUCHAN YOUTH FOUNDATIONPROJECTS SUPPORTED BY THE AUCHAN YOUTH FOUNDATION SINCE 199620102011323392+69 PROJECTSTO CELEBRATE ITS 50 TH ANNIVERSARY, AUCHAN DECIDED TO FURTHER ITS COMMIT-MENT WITH CONCRETE MEASURES IN LINE WITH ITS CORE PRINCIPLES: “IMPROVETHE QUALITY OF LIFE FOR AS MANY AS POSSIBLE” AND MEET THE CIVIC CHALLENGETHAT IT TOOK UP IN ITS CORPORATE SOCIAL RESPONSIBILITY POLICY. THE SCOPE OFTHE AUCHAN YOUTH FOUNDATION EXPANDED TO THE ENTIRE HYPERMARKET SECTORIN ALL 12 OF THE GROUP’S COUNTRIES.15 YEARS OF ACTION,387 PROJECTS SUPPORTEDThe Auchan youth foundation was establishedin 1996 and supports organisations workingwith young people from local districts in thevicinity of the hypermarkets. The foundationhas been supporting local educational projectsin France for over 15 years, offering anopportunity for young people to learn to read,write, count and enjoy cultural and sportsactivities, assisting their integration throughtraining and employment, and raisingawareness about healthy eating habits andenvironmental protection.KEY FIGURE€1.5 MILLIONof yearly budget allocated to the Auchanyouth foundationSOME EXAMPLESThe foundation awarded €15,000 in fundingto the “Boulonnais Eco-garage”, whichprovides the tools and equipment forindividuals in financial need to repair theircars themselves. Broken-down vehicles arefixed and hire cars are available at specialrates to help people with no means oftransport. The Bouillac store used thefoundation to support the Le Village desplateaux charitable organisation, which helpsyoung people in dire straits who have beenexcluded from society and traditionalschooling. With the €15,000 grant, it waspossible to provide individual support foryoung people who have had a traumatic startin life, and to guide them towards activelywanting to learn and interact socially.SPECIAL AWARDSThe Auchan youth foundation organisedthe 6 th annual Special Awards for students fromAuchan partner schools, with the aim of helpingthem develop long-term commitments to otheryoung people at risk or from underprivilegedneighbourhoods. Five of the 39 candidateprojects received the special award. The winningorganisation, Ombre et la Plume, foundedby the EDHEC business school in Lille, runsan initiative to arrange for 20 studentsto interact with young prisoners in a juvenileprison. The selected students take turnsorganising events and meetings.“50 projects for the future” to celebrate our50 th anniversary! The Auchan youth foundationhas partnered up with the Simply Tasteof Sharing Foundation to launch a special callfor projects. Because the projects presentedwere of such high quality, 60 rather than50 organisations were selected from over600 applications, sharing a budget of €280,000to be used for the benefit of 120,000 peoplein France.ACHIEVEMENTS€506,700for 65 projects supported in 2011FIRST INTERNATIONAL STEPSThe Auchan youth foundation wanted to helphypermarkets in other Group countries ensurethe long-term viability of their social solidarityPIONEER PROJECTSprogrammes by involving a maximum numberof employees and demonstrating their capacityfor action on a daily basis and in emergencysituations. If a natural and/or human disasterwere to occur in one of the Group’s countries,the ability to rally local support wouldbe underpinned by a coordinated, responsivestructure to help those in situations ofextreme hardship. To achieve this ambition,the foundation has a dedicated budgetof €1 million in addition to the existing€500,000. The foundation’s partnership withSOS Children’s Villages, the main programsupported by the Auchan youth foundationacross all countries, was renewed at the startCLOSE-UPAt the end of 2011, the foundation supported its first three country-based projects –two in Poland and one in China. The projects attracted the attention of a panel of judgescomprising 4 of the 12 countries’ sustainable development managers and thefoundation's delegate. These projects will be rolled out one by one throughout 2012.The following two examples provide an initial overview.– The Albatros Foundation aims to raise environmental awareness amongst young children.Some 143 members of staff from Auchan China took training courses themselves in orderto teach these modules. They worked with 1,254 children from local schools near the40 hypermarkets in China. The €10,800 funding from the Auchan youth foundation willenable the publication of three 6-book sets for pupils in the 10 schools affiliated with eachstore. These books contain important information about the scarcity of natural resources,climate change and the preservation of endangered animal species, and met with muchacclaim at the 2010 Shanghai World Expo.– Helping children from underprivileged families go to school in dignity: this is one ofthe many programmes run by the Swiȩtego Barnaby Foundation. Help with homework,organisation of cultural activities and Christmas celebrations. €22,000 funding wasallocated for a two-year period and will be used to purchase materials and to employan educational specialist to coordinate the teaching programme for 150 children nearbythe Czestochowa store in the South of Poland. The store’s staff will be actively involvedin the programme, participating in workshops and offering insight into their jobs asa focus on careers for young people.In 2012, the Auchan youth foundation aims to support a minimum of 15 projects,and at least one for each country.of 2012. Each country presented its nationalbranch with a cheque for €100,000.40 / GROUPE AUCHAN 2011 SUSTAINABILITY REPORT GROUPE AUCHAN 2011 SUSTAINABILITY REPORT / 41

SUSTAINABLE DEVELOPMENT INDICATORSEMPLOYEESEMPLOYEES (CONTINUED)TOTAL GROUP WORKFORCE*20102011IN-HOUSE TRAININGINTERNAL PROMOTION RATE2011* Excluding RT Mart China.31.5%214,877211,5502010 2011Total number of hours 4,153,166 4,381,411Overall training rate 79.1% 81.6%Employee training rate 76.1% 75.8%Management training rate 83.1% 83.2%Senior executive training rate 84.6% 77.4%Average number of training hours per employee 19.3 20.7EMPLOYMENT STRUCTURE2010 2011Permanent contracts 85.5% 88.2%Fixed-term contracts 14.5% 11.8%Part-time 35% 32.4%Full-time 65% 67.6%NUMBER OF EMPLOYEES HOLDING SHARES20102011137,000152,000EMPLOYEES IN SITUATION OF DISABILITY WITHIN THE WORKFORCEHypermarketsNumberRate2010 2011 2010 2011Legal requirementChina 498 527 3.7% 4.0% 1.6%Spain 388 415 3.1% 3.3% 2.0%France 3,627 3,990 6.0% 7.0% 6.0%Hungary 22 29 0.4% 0.5% 5.0%Italy 403 406 3.9% 4.1% 7.0%Poland 328 380 2.9% 3.4% 6.0%Portugal 86 89 1.0% 1.0% NoneRomania 47 59 1.3% 1.3% 4.0%Russia 516 617 2.3% 3.0% 2.0 to 4.0%*Taiwan 108 122 1.9% 1.9% NoneUkraine 182 195 4.9% 5.3% 4.0%Luxembourg 23 21 3.5% 3.0% 4.0%SupermarketsFrance 650 750 4.4% 5.0% 6.0%Spain 117 122 2.1% 2.1% 2.0%Italy ND 369 ND 3.8% 7.0%Poland 8 9 0.8% 0.8% 6.0%* Depending on regions and towns.ABSENTEEISM RATE DUE TO WORK ACCIDENTSHypermarkets 2011China 0.17%Spain 0.51%France 1.60%Hungary 0.20%Italy 0.39%Poland 0.18%Portugal 0.40%Romania 0.00%Russia 0.07%Taiwan 0.24%Ukraine 0.07%Luxembourg 0.55%SupermarketsFrance 1.14%Spain 0.47%Italy 0.36%Poland 0.25%Russia 0.03%Group 0.53%PERCENTAGE OF ELIGIBLE EMPLOYEES HOLDING SHARESHypermarkets 2010 2011China 100% 99%Spain 98% 98%France 94% 93%Hungary 93% 93%Luxembourg 57% 84%Italy 88% 98%Poland 93% 89%Portugal 98% 99%Russia 74% 64%SupermarketsFrance 77% 92%Simply Spain 78% 86%Simply Italy 0% 77%Alinéa 91% 69%Banque Accord France 98% 93%PERCENTAGE OF WOMEN MANAGERS IN THE GROUP201142.5%HYPERMARKETS – WORKFORCE BREAKDOWN MEN/WOMEN2010 2011Men Women Men WomenEmployees 54,637 95,015 53,430 92,934Managers 12,469 9,569 12,453 9,873Senior executives 940 201 940 231Total 172,831 169,861SUPERMARKETS – WORKFORCE BREAKDOWN MEN/WOMEN2010 2011Men Women Men WomenEmployees 8,304 19,377 6,993 18,924Managers 2,237 1,551 1,792 1,369Senior executives 480 93 305 68Total 32,042 29,451PARTNERSSOCIAL AUDITS CONDUCTED EXTERNALLYUSING THE ICS METHOD20102011105170INTERNAL INSPECTIONS CONDUCTEDBY SOURCING OFFICES SINCE 200820102011BUYERS AWARE OF WORKING CONDITIONS IN PRODUCTION FACILITIES (2011)NON-FOOD SUPPLIERS, CHILDREN’SPRODUCTS, AUDITED FOR RETAILER BRANDNAME PRODUCTSChina 100% Covered in the training manualSpain 100% Code of ethics known by all buyersFrance ND Awareness-raising modules during training for new buyersHungary 0%Italy 100%Poland 0% Planned for 2012Portugal 88% Intended for product managersRomania 0% Target: 20% in 2012Russia ND Covered in the code of ethicsTaiwan 100%Ukraine 100%6401,240201167% (99 suppliers)42 / GROUPE AUCHAN 2011 SUSTAINABILITY REPORT GROUPE AUCHAN 2011 SUSTAINABILITY REPORT / 43

SUSTAINABLE DEVELOPMENT INDICATORSCUSTOMERSENVIRONMENT (CONTINUED)NUMBER OF PRODUCTS TOTAL NUMBER OF PRODUCTS CARRIEDCARRIED BRANDED ORGANICPRODUCE RETAILER (2011)NATIONAL BRANDED ORGANICPRODUCE AND RETAILER (2011)HypermarketsChina ND* 2,477Spain 91 957France 311 1,661Hungary 0 382Italy 150 794Poland 17 250Portugal 4 624Romania 58 58Russia 205 205Taiwan 124 722Ukraine 1 1Luxembourg ND 1,650SupermarketsFrance 166 564Spain 6 80Italy 52 541Poland 10 69* Lack of referencing definition.NUMBER OF AUCHAN HOUSE-BRAND PRODUCTS WITH BRAILLE LABELSHypermarkets 2010 2011Spain 550 600France 1,596 1,600Portugal 455 583Romania 37 61Total 2,638 2,844ENVIRONMENTWASTE RECOVERY RATE*Hypermarkets 2010 2011 Targets for 2012China 40% 40% 42%Spain 59% 62% 75%France 79% 87% 90%Hungary 52% 50% 60%Italy 59% 61% 66%Poland 49% 52% 55%Portugal 80% 81% 81%Romania 53% 49% 55%Russia ND 38% 50%Taiwan 54% 52% 57%Ukraine 34% 41% 49%Luxembourg ND 87% 90%SupermarketsFrance ND 33% 38%Poland 34% 39% 50%* Tonnes of waste recycled/tonnes of total waste.NUMBER OF HOUSE-BRAND PRODUCTSSTILL SOLD WITH REVISED INGREDIENTSSINCE THE START OF THE SCHEME20102011TONNES OF PACKAGING ELIMINATED ON AUCHANBRAND PRODUCTS SINCE 200420102011201020113839,966HYPERMARKETS WITH A SELF-DISCOUNTDEPARTMENT30732050011,630EMPLOYEES WITH WASTE MANAGEMENT TRAININGHypermarkets 2010 2011 Targets for 2012China 98.2% 90.0% 100% e-learningSpain 66.4% 67.0% 85.0%France 23.7% 30.9% 40.0%Hungary 0% 18.6% 75.0%Italy 40.0% 54.0% 80.0%Poland 57.0% 56.0% 80.0%Portugal 71.0% 80.4% NDRomania 55.7% 38.8% 55.0%Russia 0% 60.3% 80.0%Taiwan 0% 16.0% 100%Ukraine 0% 0% NDSupermarketsSpain 0% 3.0% 30.0%Italy ND 100% NDPoland ND 100% NDEMPLOYEES WITH ENERGY SAVINGS TRAININGHypermarkets 2010 2011 Targets for 2012China 98.2% 90.0% 100%Spain 74.7% 69.0% 85.0%France 9.2% 9,8% 15.0%Hungary 0% 16.3% 75.0%Italy 38.0% 52.0% 80.0%Poland 58.0% 59.0% 70.0%Portugal 71.0% 80.4% NDRomania 57.3% 38.1% 55.0%Russia 0% 60% 80.0%Taiwan 0% 16.0% 100%Ukraine 0% 0% 0%SupermarketsSpain 0% 3.0% 30.0%Italy ND 100% NDPoland ND 100% NDHYPERMARKETS: DISTRIBUTION OF CARRIER BAGS PER SQ. M OF SHOP FLOOR2010201131230144 / GROUPE AUCHAN 2011 SUSTAINABILITY REPORT GROUPE AUCHAN 2011 SUSTAINABILITY REPORT / 45

SUSTAINABLE DEVELOPMENT INDICATORSENVIRONNEMENT (CONTINUED)ENVIRONNEMENT (CONTINUED)ELECTRICITY CONSUMPTION (KWH/M 2 OF SHOP FLOOR)Hypermarkets 2010 2011Variance11/10Targets2012China 517 501 –3.1% –2.0%Spain 529 512 –3.2% –3.5%France 538 515 –4.3% –3.0%Hungary 528 497 –6.2% –4.0%Italy 475 463 –3.7% –2.0%Poland 473 468 –1.1% –2.5%Portugal 597 565 –5.4% –5.0%Romania 493 466 –5.4% –2.5%Russia 733 715 –2.5% –2.0%Taiwan 733 718 –2.1% –5.0%Ukraine 549 500 –10.0% –5.0%Hypermarkets ratio 557 538 –3.6% –2.0%SupermarketsFrance 638 637 –0.2% –2.0%Spain 609 600 –1.4% –1.0%Italy 695 687 –1.0% –2.0%Poland 641 626 –2.8% –2.0%WATER CONSUMPTION (LITRES/M 2 OF SHOP FLOOR)Hypermarkets 2010 2011Variance11/10Targets2012China 4,109 4,260 +3.7% –2.0%Spain 1,070 1,010 –5.5% –5.0%France 1,600 1,480 –7.5% –3.0%Hungary 1,575 1,481 –6.4% –4.0%Italy 1,236 1,017 –20.2% –15.0%Poland 995 964 –3.1% –2.5%Portugal 1,192 1,126 –5.5% –15.0%Romania 993 996 +0.3% –2.0%Russia 2,188 1,942 –11.2% –5.0%Taiwan 4,170 4,021 –1.0% –5.0%Ukraine 1,405 1,294 –9.0% –6.0%SupermarketsPoland 652 642 –1.5% –2.5%HYPERMARKETS: APPLICATION OF GOOD CONSTRUCTIONPRACTICES2010 2011China 66 % 82%Spain 57% 65%France 41% 46%Hungary 66% 76%Italy 58% 60%Poland 74% 86%Portugal 58% 70%Romania 90% 96%Russia 23% 40%Taiwan 46% 56%Ukraine 60% 60%SOLIDARITYELECTRICITY: CONSUMPTION AND GREENHOUSE GAS EMISSIONS IN CO 2 EQUIVALENTELECTRICITY CONSUMPTION (KWH/M 2 OF MALL FLOOR AREA)2010 2011 Variance 11/10 Targets 2012Immochan 271 250 –7.8% –2.0%HYPERMARKETS: TOTAL SOLIDARITY BUDGET20102011PROJECTS SUPPORTED BY THE AUCHAN YOUTH FOUNDATION SINCE 1996€2,708,000€2,722,500HYPERMARKETS: GREENHOUSE GAS EMISSIONS IN CO 2 EQUIVALENTCO 2 factor 2010 2011Variance11/10Ratio percountry 2010Ratio percountry 2011Variance11/10China 0.788 141,540,331 160,869,121 +13.6% 408 395 –3.1%Spain 0.350 95,182,467 93,829,299 –1.4% 185 179 –3.2%France 0.085 57,185,548 55,571,224 –2.8% 46 44 –4.3%Hungary 0.344 30,082,192 28,259,301 –6.1% 182 171 –6.2%Italy 0.404 82,834,978 86,468,341 +4.4% 192 187 –3.7%Poland 0.659 78,763,683 81,610,750 +3.6% 312 308 –1.1%Portugal 0.416 50,085,148 49,994,888 –0.2% 248 235 –5.4%Romania 0.429 15,891,039 15,020,738 –5.5% 211 200 –5.4%Russia 0.329 93,447,855 106,040,880 –13.5% 241 235 –2.5%Taiwan 0.659 94,858,355 103,574,215 +9.2% 483 473 –2.1%Ukraine 0.344 16,618,006 16,629,132 +0.1% 189 172 –10.0%Total 756,489,602 797,867,890 +5.48% 193 192 –0.54%kg eq. CO 2 /m2 kg eq. CO 2 /m2 kg eq. CO 2 /m2shoop floorkg eq. CO 2 /m2shop floor20102011323392Source of CO 2 factors: averages per country calculated by the International Energy Agency (“CO 2 Emissions from Fuel Combustion”, 2008, supplying data for 2006).IMMOCHAN: GREENHOUSE GAS EMISSIONS IN CO 2 EQUIVALENT2010 2011 Variance 11/10 Ratio 2010 Ratio 2011 Variance 11/1048,680,610 49,147,036 +0.96% 90 84 –6.43%kg eq. CO 2 /m2 kg eq. CO 2 /m2 kg eq. CO 2 /m2 mail kg eq. CO 2 /m2 mail kg eq. CO 2 /m2 mail46 / GROUPE AUCHAN 2011 SUSTAINABILITY REPORT GROUPE AUCHAN 2011 SUSTAINABILITY REPORT / 47

MEMBERS OF THE GROUP SUSTAINABLE DEVELOPMENT SYNERGYGROUP SUSTAINABLEDEVELOPMENTSYNERGYCREATED IN OCTOBER 2008, THE SUSTAINABLE DEVELOPMENT SYNERGY FOSTERSPRAGMATIC ENVIRONMENTAL AND CORPORATE POLICIES.THESE OBJECTIVES ARE EXPANDED EACH YEAR, AND THEN CONSOLIDATED WITHIN THEGROUP MONITORING AND COORDINATION UNIT.THE SYNERGY ACTS AS A PLATFORM FOR EXCHANGING SKILLS AND GOOD PRACTICES,AND COMPRISES 30 MEMBERS REPRESENTING THE DIFFERENT COUNTRIES, BUSINESSESAND CERTAIN GROUP SUPPORT FUNCTIONS. IT OPERATES THROUGH MONTHLY PHONEMEETINGS AND A SEMINAR IS HELD ONCE A YEAR.GROUP PROMOTIONAL BOARDPatrick CoignardChairman of Spain and Portugal hypermarketsChairman of sustainable development synergyMarie-Hélène Boidin-DubruleCommunications Director in charge of sustainable developmentSynergy leaderAloys Guitton(aguitton@auchan.fr)Synergy Coordinator48 / GROUPE AUCHAN 2011 SUSTAINABILITY REPORT