CONTROLLING ENERGY CONSUMPTION

Improving energy efficiency is one of the Carrefour Group’s top priorities

To achieve its new objective, established in 2009, of 30% improvement in energy efficiency by 2020 compared with 2004, the Group has launched a multi-year investment programme of some €30 million per year. These efforts have already enabled the Group to achieve efficiency gains in 2010 of 18.2% (vs. 2004). These results represent not only a significant reduction in the environmental impact of Group activities, but also a significant contribution to the effort to control costs.

The Group Energy Efficiency programme, launched in 2007, is based on the use of best practices or innovative in-store technologies. It advocates such solutions as environmental management systems, optimised refrigeration systems, energy-saving lighting and the use of natural light and closed freezers. Our customers have responded especially well to the latter initiative, which is seen as a better way of maintaining the cold chain.

In Turkey, for example, the most recently opened Carrefour points of sale were designed to be more energy efficient. The new store at Kucukkoy consumes 25 kWh/m2, versus 36kWh/m2 at the old store located at Kucukyali, with the same surface area of 900 m². This progress has been made thanks to various actions, particularly the use of energy-saving LED lighting.
 

Reducing greenhouse gas emissions linked to refrigerant leaks

The second biggest source of greenhouse-gas emissions after electricity is refrigerant leakage. It is also the largest source in terms of direct emissions.

To reduce this leakage, the Group has implemented a strategy that aims at identifying, on a country-by-country basis, the level of refrigerant leaks and their causes. This identification process has allowed Carrefour to define an action plan which aims to reduce CO2 emissions by 40% from its stores in four countries (France, Spain, Italy and Belgium) by 2020 (vs. .2009).

Within the framework of the Consumer Goods Forum (CGF), the Group has also agreed to discontinue the use of HFC in new refrigeration equipment beginning in 2015.

To achieve these objectives, alternative technologies are being tested, such as sub-zero cooling with CO2 (for frozen products), the use of HFC refrigerants with low global warming potential (GWP), and secondary heat transfer fluids (brine). Beginning in 2012, these new technologies will be gradually implemented across the Group.

 
Reducing water consumption in the stores and in the supply chain

Committed to preserving both the quality and availability of water, Carrefour works upstream with its suppliers to reduce water consumption in the supply chain. Carrefour Quality Line suppliers have adopted an integrated policy on farming that incorporates such environmental considerations as reasonable water consumption. In 2006, with the participation of the ADEME and WWF, the Group introduced a Sustainable Self-Assessment tool for own-brand suppliers that covers 49 criteria based on four themes, including reasonable water use.

In 2003, in an effort to reduce water consumption, the Group adopted a number of measures and methods, including consumption monitoring and analysis, implementation of regular reporting and identification of consumption sources and stores that consume excessive amounts of water.

Hypermarkets in France are also trying to reduce their water consumption by replacing materials that consume excessive amounts of water for water-saving systems, such as water pressure reducing valves and a system for rainwater collection.

Thanks to measures already introduced, the water consumed per hypermarket sales-area m² has dropped by 2% between 2009 and 2010.

 
REDUCE WASTE AND RECYCLE

Increase the share of recycled waste

Managing and optimising waste recovery

The primary source of waste in stores comes from secondary packaging such as cardboard, which is recycled by Carrefour in all countries where it operates. Recycling other types of waste in lesser quantities (plastic, organic waste, scrap metal, etc.) is organised according to local methods. In addition, Carrefour works with charities that redistribute unsold food items and textiles. For example, in 2010, more than 29,000 tonnes of unsold products were donated in France, Italy and Belgium.

Carrefour also reduces the volume of in-store waste by replacing cardboard boxes and crates used for packaging and transport with reusable plastic containers.

In order to significantly increase the share of recycled waste, Carrefour relies on the development of new technologies. In Spain, Carrefour has benefited from the development of biogas units. This type of technology recycles organic waste that has been sorted by the stores to produce compost and electricity from biogas. This is less costly than conventional waste management systems and reduces greenhouse gas emissions.

Carrefour also makes use of this type of technology in Belgium, where all consolidated stores sort waste from their grocery, bakery, fruit and vegetable departments. In France, the biogas technology has been successfully tested at a store in Lomme. The Group’s aim in France is to work with government and local authorities in order to promote the development of such biogas units.

 

Encouraging customers to sort their waste and recycle

In the countries where the Group operates, it encourages its clients to sort their waste and recycle through various initiatives such as information found on packaging, recycling-awareness campaigns and permanent collection points installed in stores for clients to easily recycle used batteries and ink cartridges. Countries such as Spain and Greece have opened recycling centres for items such as glass, plastic, metal, paper, small appliances, telephones and batteries.

In 2010, Carrefour implemented an innovative approach to help consumers easily sort their waste. In France, Belgium, Italy, Spain and Greece, recycling pictograms are found on the packaging of more than 600 Carrefour Bio and Carrefour EcoPlanet products.

 Electrical and electronic waste

In compliance with European regulation, the Group has set up collection systems for customers’ electrical and electronic equipment waste (WEEE) and also used batteries, ink cartridges and energy-efficient light bulbs. In addition, Carrefour participates in recovery networks. In France, it is a board member of Eco-systèmes, the eco-agency managing the WEEE network, and a shareholder in Eco-Folio, which collects funds for the recycling of advertising catalogues. The Group also works with Récylum, an eco-friendly waste management institution that collects and recycles energy-efficient light bulbs used.
 

Lighter commercial publications

Based on the results of a Life-Cycle Assessment (LCA) carried out on its catalogues, Carrefour has decided to reduce the grammage of its paper. Between 2007 and 2010, the grammage of commercial publications was reduced by 3.6% from 50g to 48g because of this initiative.

By reducing the overall weight of its commercial publications, the Group saved 33,000 tonnes of paper in 2010 (compared to 2007), equivalent to the annual CO2 emissions of more than 26,000 cars and the water consumption of 9,000 French households.

Since 2009, the Group has been enforcing stricter traceability requirements and opting for paper made from recycled wood fibre and/or forests under certified management.

Carrefour also was the first major food retailer to take an inventory of the environmental practices of the printers who print its commercial publications and magazines. Accompanied by an external environmental auditor, Carrefour visited five of its largest printing plants in Europe (France, Germany and Spain) to assess areas for improvement in environmental management such as ink storage, the management of hazardous waste (i.e., solvents) and an assessment of greenhouse gas emissions.

Today, all the Carrefour printers are committed to an environmentally-friendly approach (Imprim’Vert, FSC, PEFC, ISO 14001, etc.).
 
Packaging and shopping bags: avoiding waste

Improving packaging

For more than a decade, Carrefour has worked to optimise the weight of its company brand product packaging. This has enabled the Group to save more than 15,000 tonnes of packaging on certain product types.

Carrefour is exploring ways to use renewable and abundant materials, such as packaging called “biomaterials” (or "bioplastics") and packaging made from recycled materials. Certain packaging for Carrefour Bio products are made from recycled cardboard and plastic egg cartons are made from recycled plastic bottles.

Since 2009, Carrefour has also participated in the Consumer Goods Forum’s (CGF) Global Packaging Project.
The goal of this project is to develop a common language and shared indicators so as to make use of sustainable packaging easier for the various members of the supply chain.

In 2010, Carrefour broke new ground in its approach. With its partner Tetra Pak, the Group developed FSC-certified packaging for certain own-brand products such as milk and fruit juices. More than 100 million pieces of FSC-certified packaging appeared on the shelves in July 2010, at 1,300 Carrefour stores, Carrefour Markets, Carrefour City stores and Carrefour Contacts.

 

Reduce the number of disposable shopping bags distributed at the checkout and offer alternatives to clients

In 2003, the Group commissioned its first Life-Cycle Assessment (LCA) on different types of shopping bags, in compliance with applicable international standards (ISO 14040/14043). This assessment, whose results were subjected to critical review, was used to compare the environmental impacts of different types of plastic, paper, biodegradable and reusable bags. It showed in the study that after the fifth use, a reusable shopping bag is the most environmentally-friendly solution. With this conclusion, Carrefour rolled out an ambitious policy to end the use of disposable shopping bags, while encouraging the use of reusable shopping bags.

The Group has undertaken to stop distributing free disposable plastic bags at the checkout by the end of 2012. Since 2006, Carrefour has ended or reduced the distribution of these bags in all countries and instead offers customers alternatives such as reusable shopping bags. In total, in 2010, the number of disposable plastic shopping bags has been reduced by 10 billion at the Group level. The hypermarkets and/or supermarkets in Belgium, Poland, France, China, Taiwan, Spain, Romania and Brazil are affected by these measures, as well as the convenience and discount stores in Italy, Belgium, Argentina, China, Spain France, Greece and Portugal.

2.2 billion fewer disposable plastic bags provided for free at the checkout in 2010 (vs. 2007) through the actions of Carrefour.

 
RAISING AWARENESS FOR CUSTOMERS, SUPPLIERS AND EMPLOYEES

Involve employees

Recognising the importance of involving employees in the process of reduction and control of environmental impacts of the Group, Carrefour implements programmes aimed at environmentally friendly practices and sustainable development training tailored to its various businesses. Thus, since June 2008, the Group has offered the “Éco-Attitude” programme to its employees at administrative sites in France. The programme focuses on five themes: saving paper, selectively sorting waste, water conservation and waste reduction, eco-transport and eco-friendly practices in the home.

As an extension of this program, in 2009 the Group sustainability department launched a new car-sharing website for employees at head offices in France. In Brazil, Carrefour has launched a major programme, “Carrefour and You, For a Better World,” designed to establish sustainable development firmly in the daily lives of all store and head-office employees. Carrefour also benefits from the many events in which it takes part, including World Environment Day and European Sustainable Energy Week, by involving a growing number of employees in sustainability issues.

 

Raising customer and employee awareness of environmental issues

Because it welcomes millions of customers worldwide every day, the Carrefour Group has a special responsibility to educate and inform its customers on environmental issues.
And so in the various countries where it operates, the Carrefour stores organise a number of activities echoing the national, European and international events. Its websites provide customers with more information about the various environmental awareness campaigns.

With the support of partners like ADEME, the WWF and national organisations, Carrefour raises customer awareness of key sustainable-development issues, including energy efficiency and climate change, sustainable consumption and the preservation of natural resources and biodiversity. These initiatives also enable Carrefour to promote its responsible product ranges in stores and through media outlets, and also to communicate on its sustainability approach.

 

Working upstream to raise supplier awareness

In 2006, a sustainable development self-assessment tool was developed by Carrefour in France, in participation with ADEME and the WWF. It is accessible via the Internet and enables suppliers of own-brand products to carry out a self-evaluation of their sustainable development practices. They can also compare their results with the sector average and access advisory documents. This tool encourages suppliers, guides them and helps them implement practical actions.

Currently, the self-assessment tool is available in 15 languages and in all the countries where the Group operates; more than 5,000 suppliers have access to this tool across the globe.

In 2009, the most committed Carrefour suppliers were awarded for the first time for their sustainable-development actions The winners of the Carrefour Sustainable Development Supplier Awards are chosen on the basis of marks achieved via the self-assessment tool, with results validated through visits from consultants and judged by a panel comprising Carrefour management members and representatives from external organisations (including the WWF, ADEME and LSA).