Climate Change Data

ELO

Climate Impact & Sustainability Data (2021, 2023)

Reporting Period: 2021

Environmental Metrics

Scope 1 Emissions:397,031.33
Scope 2 Emissions:653,238.53
Scope 3 Emissions:452,205.81
Renewable Energy Share:16.9%

ESG Focus Areas

  • Healthy eating and fight against food waste
  • Fight against plastic pollution
  • Reduce carbon footprint

Environmental Achievements

  • Energy consumption in stores vs 2014: -24.5%
  • Renewable electricity consumption as a percentage of overall electricity consumption: 16.9%
  • 25% reduction in energy consumption in stores (vs 2014)
  • 50% of decarbonised energy supply
  • 20% reduction in carbon emissions from the transport of goods
  • Plastic waste collected in our stores: 17,287 t (of which 11,361.5 t outside Russia vs 14,307 t in 2020 for the same scope, i.e. -20.5%)
  • Percentage of reusable, recyclable or compostable own-brand product packaging: 42.5% (extrapolation, 51.1% in the EU)

Social Achievements

  • Percentage of female managers: 50.4%
  • Percentage of employees with disabilities: 4.4%
  • Percentage of permanent contracts in total workforce: 92%
  • Percentage of employees having completed training: 87%
  • Percentage of internal promotion from non-managers to managers: 37%
  • Internal promotion rate: 35.3%
  • Internal promotion rate of women: 38.8%
  • Total training hours: 2,383,626

Governance Achievements

  • Moody’s ESG Solutions: Rating 62/100 (+25 points vs. 2019)
  • CDP score: B (C in 2019)
  • Standard & Poor rating «BBB-, stable outlook»

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions
Medium-term Goals:
  • 100% renewable electricity by 2030
  • -46% CO₂ emissions by 2030 (1.5° trajectory)
  • -40% reduction in energy consumption in stores by 2030
  • Reduce GHG emissions by 46% in Scopes 1 & 2 by 2030
  • Reduce Scope 3 GHG emissions by 25% by 2030
  • Reduce refrigerant leaks by 90% by 2030
Short-term Goals:
  • Double the number of local products on sale in stores
  • 1,200 responsible agricultural production chains around the world
  • 100% of Auchan brand products carry a nutritional label
  • 100% reusable, recyclable or compostable packaging for private label products
  • Elimination of plastic as rapidly as possible from fruit and vegetable departments and food services departments
  • 25% reduction in energy consumption in stores (vs 2014)
  • 50% low-carbon electricity supply
  • 20% reduction in greenhouse gas emissions from goods transport

Environmental Challenges

  • Covid-19 pandemic impacting both retail and property management activities
  • Supply chain disruptions
  • Climate change risks (physical and transition)
  • Corruption risks
Mitigation Strategies
  • Rent reductions for tenants impacted by Covid-19 (€39 million)
  • Actions to ensure safety of customers and employees during Covid-19
  • Development of responsible agricultural production chains
  • Energy efficiency and renewable energy initiatives
  • Implementation of a compliance programme to fight corruption
  • Sustainability-linked loan (€800 million)

Supply Chain Management

Supplier Audits: 980 social audits; 173 quality audits (Worldwide Products Department)

Responsible Procurement
  • Responsible agricultural production chains
  • Ecovadis CSR assessment for non-commercial suppliers
  • ICS and AMFORI BSCI systems

Climate-Related Risks & Opportunities

Physical Risks
  • Heat waves
  • Increase in average temperature
  • Storms
  • Flooding
  • Extreme rainfall
  • Drought
Transition Risks
  • Increase and volatility of commodity prices
  • Sourcing in countries at risk of global warming
  • Risk of disputes related to global warming
  • Risk of impact on revenue from a change in consumer behaviour

UN Sustainable Development Goals

  • Goal 12.3 (Sustainable Development Goals)

Auchan Retail's commitments to reduce food waste and plastic pollution align with SDG 12.3.

Sustainable Products & Innovation

  • Just Chips (crisps without pesticide residues)
  • Veggie Private Label product line
  • Cosmia hygiene and beauty products (100% risk-free by Yuka)
  • Sports shoe with recycled materials

Awards & Recognition

  • Moody’s ESG Solutions A1 sustainability rating (62/100)
  • CDP B score
  • Various local awards

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:44.9 million tCO2e (2020)
Scope 1 Emissions:341,470 tCO2e (2023)
Scope 2 Emissions:673,195 tCO2e (2023) location-based, 364,370 tCO2e (2023) market-based
Scope 3 Emissions:407,902 tCO2e (2023) goods transport
Renewable Energy Share:34%

ESG Focus Areas

  • Climate Change
  • Biodiversity
  • Plastic Pollution
  • Waste Reduction
  • Food Waste
  • Responsible Products
  • Ethical Business Relationships
  • Human Rights
  • Employee Well-being
  • Diversity & Inclusion
  • Governance
  • Anti-corruption

Environmental Achievements

  • GHG emissions from stores (Scopes 1 and 2): -44% vs 2019
  • Renewable electricity consumption: 34% of overall electricity consumption
  • Reduced energy consumption by 9% between 2022 and 2023
  • Avoided waste of 73.64 million products (35,716 tonnes) in several subsidiaries using AI
  • Collected 30.6 million bottles in Romania through deposit return scheme

Social Achievements

  • Integrated 3,329 employees from acquired Dia stores in Spain
  • Launched internal influencer network in Hungary to enhance employer brand
  • Created a customized diploma course for Senegalese managers
  • Improved annual interview process for employees
  • Organised food drives raising over 1,283 metric tonnes of donations (€5.3 million value)

Governance Achievements

  • Successfully placed a €750 million Sustainability-Linked Bond
  • Appointed Antoine Grolin as CEO of ELO
  • Implemented a new internal control framework with 94 key controls
  • Updated ethics charter and anti-corruption code of conduct
  • Rolled out a new e-learning module on anti-corruption

Climate Goals & Targets

Long-term Goals:
  • Zero in-store food waste by 2032
  • Reduce plastic use by 6,000 tonnes by 2032
Medium-term Goals:
  • Achieve 100% renewable electricity consumption by 2030
  • Reduce Scope 3 emissions by 25% by 2030
  • Increase number of “Auchan Cultivons le Bon” supply chains to 1,500 by 2025
Short-term Goals:
  • Reduce water consumption
  • Reduce plastic use by 2,000 tonnes by 2024

Environmental Challenges

  • Deteriorated economic context impacting operating income
  • High impairment losses on Russian and Ukrainian assets
  • Geopolitical uncertainty in Russia and Ukraine impacting store traffic and operations
  • High inflation affecting employee purchasing power
  • Supply chain disruptions due to geopolitical events
Mitigation Strategies
  • Implemented energy efficiency plans
  • Developed alternative sourcing strategies
  • Provided support to employees in Ukraine and Russia
  • Implemented measures to support employee purchasing power (bonuses, rebates)
  • Developed a supplier commitment program for decarbonization

Supply Chain Management

Supplier Audits: 1,236 social audits (2023) for Worldwide Products Department, 803 EcoVadis assessments (2023) for non-commercial purchases

Responsible Procurement
  • Code of ethics
  • Responsible purchasing policy
  • Supplier audits (social and environmental)
  • EcoVadis assessments

Climate-Related Risks & Opportunities

Physical Risks
  • Energy price shocks
  • Supply disruptions due to climate events
Transition Risks
  • Regulatory changes
  • Changes in consumer demand
Opportunities
  • Development of energy-efficient products
  • Renewable energy investments

Reporting Standards

Frameworks Used: SBTi, TCFD, European Taxonomy

Certifications: ISO 50001, BREEAM In-Use

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 15 (Life on Land)

Initiatives contribute to these goals through various environmental and social programs

Sustainable Products & Innovation

  • Eco-designed products
  • Recycled materials in packaging and products
  • Second-hand product offerings

Awards & Recognition

  • Sustainable Retailer of the Year (Portugal)
  • Romanian CSR Awards (Romania)
  • Victories of Collaboration Awards (France)
  • SuperDrecksKëscht® fir Betriber label (Luxembourg)