Carrefour’s CSR performance
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FOOD TRANSITION INDEX
The CSR performance
AND FOOD TRANSITION
Transparency is what sets Carrefour’s societal approach apart from the rest. Carrefour sets itself targets that are costed and quantified, and precisely defined in consultation with its partners. In so doing, the Group sets forth its short- and long-term ambitions in relation to the material assets identified with its stakeholders.
The Group’s targets as far as CSR and the food transition are concerned are measured via a set of performance indicators. The most strategically important targets are integrated into the CSR and Food Transition Index. This index serves as a criterion for setting managers’ pay and also enables us to mobilise employees on strategic issues related to the Group’s goal of becoming the leader in the food transition for everyone.
Non-financial reporting
The Carrefour Group annually consolidates its performance based on 22 CSR indicators. These indicators have been measured since 2006 and are used to track changes in the Group’s performance. The report is externally audited and this results in Carrefour being awarded extra-financial scores by rating agencies.
Carrefour is committed to responding to all questionnaires from NGOs, investors and rating agencies. This way, the Group engages in transparent dialogue with its stakeholders in order to assess both the global and local utility of its policies and action plans, as well as analysing its performance and how it compares to that of its competitors and best practices available on the market. Carrefour regularly stages specific information events for investors and participates in socially responsible investment (SRI) conferences in order to keep the financial markets informed on CSR issues.
Index
The Group produces annual reports of its improvements through its CSR and food transition index – the only one of its kind in the sector – the data of which is verified by third party. This index also enables us to mobilise employees on strategic issues related to the Group’s goal of becoming the leader in the food transition for everyone.
Since 2019, to help it achieve these targets, 25% of managers’ pay has been based on the CSR index as part of a Long-Term Incentive. And 20% of the CEO’s (company representative) pay has been made up of a variable component. Since 2021, the CSR index has been incorporated into the variable remuneration of all Group entity employees, as well as into the remuneration of integrated country managers.
Three years after it created its CSR and Food Transition index, Carrefour is raising its targets and setting itself some new ones. Carrefour is now raising its targets for several of these areas so as to confirm and bolster its commitment to sustainable fishing, combating deforestation, nutrition and health, local products and reducing the use of packaging. And at the same time, it is setting new targets on reducing the carbon footprint of the products it sells, promoting animal welfare, the commitment of its national brand suppliers, diversity and the commitment of its employees.
Specifically, the CSR and food transition index comprises four areas: products, stores, customers and employees. Each has a number of quantitative objectives with a cut-off date. The index sets an annual target for 17 indicators. The index’s overall score is simply the average of the scores for these 17 indicators
Rating non-financial performance
Carrefour answers questionnaires from rating agencies to assess its economic, social and governance performance. In 2022 and for the second year running, Carrefour received an “A” rating from the Carbon Disclosure Project (CDP) for its commitment to the fight against global warming, enabling it to be ranked among the 283 best performing companies, including only 24 companies in France. In the same year, Carrefour was ranked 2nd in the retail sector by Moody’s (formerly Vigeo EIRIS). Carrefour improved by 9 points and this rewards the Group’s commitment to these issues and the effectiveness of the action plans deployed.
