our engagement in action

Transcription

1 S U S T A I N A B I L I T Y R E P O R T our engagement in action

2 ENGAGED WITH our suppliers p. 10 ENGAGED WITH our employees p. 16 ENGAGED WITH the environment p. 22 ENGAGED WITH the community p. 28

3 Foreword our engagement in action Our goal shared by every employee is to set the standard for corporate responsibility among our industry peers. Our independence is reflected in our efforts in that vein for more than 120 years, all with the aim of promoting retailing à la française : with care and respect. And since our stores collectively welcome a million visitors every day, we constantly strive to fulfil four major objectives: ensuring the well-being of our employees, reducing our environmental footprint, requiring the very best from our suppliers, and engaging with the community and the arts. As we complete work on our Horizon 2020 Plan, it s time to take a look back and let the numbers speak for themselves. They will convey our engagement in action. I decided that 2015 would be the year of sustainability, for two reasons: To enhance awareness of our policy and enlist the support of everyone within the Group, beginning with our senior executives, as part of the momentum that was sparked in To call the widest possible attention within the Group to COP21, the global climate conference, of which we were one of the first corporate partners. I take special pride in our support for this major initiative, which was unanimously hailed as a success. This report illustrates the progress we have made during this pivotal year in our history. Philippe Houzé Executive Chairman, Galeries Lafayette Group S U S T A I N A B I L I T Y R E P O R T 1

4 Overview of the Group A FRENCH RETAIL LEADER WITH AN INTERNATIONAL REACH A leading city-centre fashion retailer with proven expertise, Galeries Lafayette Group is a private, family-run group with 120 years of history in commerce and retail. Today we enjoy international recognition through our iconic brands: Galeries Lafayette, BHV MARAIS, Royal Quartz, Louis Pion and Didier Guérin. Welcoming more than a million visitors each day to our 280 stores, we are actively committed to promoting the French Art of Living and setting the standard in ethical, responsible retailing. With our commitment to creation and status as one of France s leading private employers with nearly 14,000 employees, we have forged our identity from strongly held corporate values: sharing our passion for customers, daring to innovate, growing stronger together and striving for excellence. OUR BRANDS As France s leading department store, Galeries Lafayette also has an international reputation. The famous flagship store on the Boulevard Haussmann is a true icon of Paris. A department store devoted to fashion and lifestyle. The French leader in fashion watch retailing. The benchmark for luxury timepieces in city centres and the travel retail sector. A specialist in gemstone jewellery. The real estate asset management firm for Galeries Lafayette Group. The Group s assets mainly consist of city-centre retail locations in France. 2 G A L E R I E S L A F A Y E T T E G R O U P

5 Overview of the Group 3.8 billion in retail sales in employees 100% family-owned 264 stores in France and worldwide 1 million square metres of property assets under management 1MILLION VISITORS A DAY S U S T A I N A B I L I T Y R E P O R T 3

6 Overview of the Group SUSTAINABLE FASHION Becoming a benchmark for ethical, responsible retailing Our consumption and production habits are being called into question by the major environmental and social challenges currently confronting our communities and the planet as a whole climate change, diminishing resources, access to drinking water, biodiversity loss, working conditions, the economy and more. Although these challenges are global and affect all of humanity, each sector is responsible for the impact of its own activities. For the fashion industry, this means ensuring decent working conditions throughout the supply chain as well as production practices that are friendly to the environment and respectful of people. It also means reducing our use of chemicals, extending the lifespan of products by promoting recycling and reuse, and shrinking the retail sector s environmental footprint. Galeries Lafayette Group is mindful of our responsibilities and is gradually building them into our practices, so that our customers can make informed decisions as consumers. Our aim, as always, is to offer customers a selection of fashionable, high-quality products, while expanding our commitment to responsible retailing. We hope to instil not just enjoyment of the shopping experience, but also a desire to choose products that are friendly to the environment and the community. To do that, we are forging relationships based on trust and accountability with our various stakeholders. In our drive to promote sustainable fashion, Galeries Lafayette Group is fired by an ambitious goal: to become the benchmark for ethical, responsible retailing "à la française". That goal includes two components: retailing that is part of the circular economy and retailing that is focused on human values, both rooted in five action plans with concrete, quantified objectives to achieve by the year 2020 (see page 7). OUR SUSTAINABILITY GOVERNANCE Galeries Lafayette Group formally defined a collective, collaborative governance method for our Sustainability programme in This governance includes a committee for each of the five action plans, charged with overseeing the various initiatives underway and monitoring their results. 9 meetings of the committees responsible for the sustainability action plans in sustainability correspondents in the stores, headquarters, offices and warehouses This community, comprising about forty employees from across our divisions, is managed by the Group s sustainability staff. Nearly 70 sustainability correspondents in the stores, headquarters, offices and warehouses serve as representatives for the corporate sustainability team. They coordinate efforts to implement sustainability policies in the field. 4 G A L E R I E S L A F A Y E T T E G R O U P

7 Overview of the Group 5action plans to further our ambition to become the benchmark for ethical, responsible retailing "à la française" ETHICAL BRANDS THE VALUE OF MATERIALS BUILDING AND SUPPLY FLOW PERFORMANCE CARING FOR ALL THE ART OF GIVING S U S T A I N A B I L I T Y R E P O R T 5

8 Overview of the Group A NEW VISION OF RETAILING IN 2030 More ethical retailing, based on the fundamental tenets of the circular economy and including women at the heart of the business. Retailing grounded in human values, through its consideration for others, especially women. Smart and attentive retailing in its circular use of resources for the benefit of future generations. Retailing designed to improve day-to-day quality of life for everyone within its ecosystem, to promote a French "Art of Living" that is rooted in experiences rather than the acquisition of material goods, all on behalf of a society that is open, decent and just. Department stores that are first and foremost shrines to the "Art of Living", a place for new experiences and social ties; stores where the consumption of material retail goods mingles with the intangible and non-commercial; where nature meets culture and education embraces experimentation; where ecology is second nature among all those who make the store what it is; where men and women feel at home. 6 G A L E R I E S L A F A Y E T T E G R O U P

9 Overview of the Group OUR OBJECTIVES FOR ETHICAL BUILDING BRANDS Make our private-label brands a model for the industry and raise awareness among all our brands with the aim of fostering an ethical, responsible ethos that will contribute to brand preference. Communicate responsibly with customers by creating transparency with regard to the value chain and each product s lifecycle. OBJECTIVE 1 Bring 75% of private-label products into compliance with the criteria for responsible products by 2020 OBJECTIVE 2 Ensure that 15% of national brands have committed to a CSR process by THE VALUE OF MATERIALS Combat wastage and reduce the volume of waste generated by our business and establish our entities as models of effective waste management and end-of-life product disposal. OBJECTIVE 1 Reduce total waste production by 15% by 2020 OBJECTIVE 2 Increase the recycling rate (including upcycling) by 50% by 2020 OBJECTIVE 3 Reduce the volume of Industrial Solid Waste by 20% by AND SUPPLY FLOW PERFORMANCE Limit the rise in energy costs through ongoing energy savings. Establish action plans for implementing an ambitious energy policy that targets energy efficiency and low consumption. OBJECTIVE 1 Reduce energy consumption per square metre of retail space by 15% by 2020 OBJECTIVE 2 Reduce our greenhouse gas emissions by 15% by 2020 OBJECTIVE 3 Reduce water consumption per square metre of retail space by 15% by CARING THE FOR ALL Convey our identity by practicing our values each day: passion for customers, daring to innovate, stronger together and striving for excellence. Maintain exemplary behaviour towards customers, employees, and partners. OBJECTIVE 1 Employee engagement survey OBJECTIVE 2 Survey on the quality of supplier partnerships 5ART OF GIVING Lend greater force and visibility to our sustainability goals through a policy of donations, corporate giving and partnerships on behalf of the Group s culture and values. OBJECTIVE 1 Fulfil 100% of our roadmap with partner non-profits by 2020 OBJECTIVE 2 Provide 600 person-days of skills sharing per year by 2020 OBJECTIVE 3 Customer satisfaction survey S U S T A I N A B I L I T Y R E P O R T 7

10 Overview of the Group 2015: A YEAR OF SUSTAINABILITY The following pages of this Sustainability Report describe in detail Galeries Lafayette Group s activities and performance with regard to sustainability during For us, 2015 was a year devoted to sustainability; it was also the year of COP21, the signing of the Paris Climate Partnership Agreement and the launch of the employee engagement survey. Echoes 2015 A YEAR DEVOTED TO SUSTAINABILITY Philippe Houzé, Executive Chairman, proclaimed 2015 the year of sustainability. Two significant events reflected that initiative. The New Year s Greetings ceremony, attended by the Group s 150 top executives, included speeches by three major partner NGOs: Emmaüs Défi, CARE France and Simon de Cyrène. In addition, 50 executives participated in taskforces on sustainability and the department store of the 21st century. LISTENING TO THE WORKFORCE In September 2015, Galeries Lafayette Group conducted a small-scale pilot of the Echoes employee engagement survey. Some 400 executives and managers took part, in order to test the questionnaire and also familiarise themselves with its content before it was extended to the workforce as a whole. With a response rate of 87%, the pilot provided an initial snapshot of the level of engagement within each entity and was used to outline the first action plans. The pilot was expanded to include all Group employees in G A L E R I E S L A F A Y E T T E G R O U P

11 Overview of the Group 2003 Galeries Lafayette Group adhered to the United Nations Global Compact in 2003 and reaffirmed its support for that initiative in COP21 GALERIES LAFAYETTE GROUP, AN OFFICIAL PARTNER Galeries Lafayette Group was an official partner to the Paris Climate Conference (COP21), held in the city in December. We mobilised to raise awareness among our employees, managers and executives, notably through lectures featuring two renowned experts in the field: Pierre Radanne, former president of the French Environment and Energy Management Agency (ADEME), and Jean Jouzel, climatologist, glaciologist and vice president of the Intergovernmental Panel on Climate Change (IPCC). Signing OF THE PARIS CLIMATE PARTNERSHIP AGREEMENT On 12 October 2015, BHV MARAIS signed the Paris Climate Partnership Agreement. This represents a significant commitment to the city, which has set a goal of reducing its energy use and greenhouse gas emissions by 25% and increasing the share of renewable energy sources in its energy mix to 25% by the S U S T A I N A B I L I T Y R E P O R T 9

12 ENGAGED WITH our suppliers 10 G A L E R I E S L A F A Y E T T E G R O U P

13 engaged with our suppliers 116 SOCIAL AUDITS A total of 116 social audits were conducted in factories operated by suppliers of our private-label brand products. Nineteen of those audits included a supplemental environmental module S U S T A I N A B I L I T Y R E P O R T 11

14 engaged with our suppliers PROMOTING OUR RESPONSIBLE BRANDS Galeries Lafayette Group s sustainability policy is founded on dynamic brands, including both our private-label brands and outside brands selected for our stores. For that reason, we strive to ensure that suppliers adhere to a stringent and binding code of conduct; we support innovative and responsible projects; we verify strict compliance with standards among our suppliers of private-label products through the use of social audits; and we conduct health and safety inspections of the products as they leave the factory. Our comprehensive process encourages sustainable initiatives of all kinds at every step of the supply chain, to demonstrate as clearly as possible our commitment to more sustainable fashion. A supplier code of conduct Suppliers of our private-label products are required to adhere to the standards set forth in major international texts1 and compiled in our code of conduct, which governs Galeries Lafayette, BHV MARAIS, Louis Pion and Didier Guérin. 1 The Fundamental Conventions of the International Labour Organization (ILO), the Universal Declaration of Human Rights, the UN Convention on the Rights of the Child, and the ten principles contained in the UN Global Compact. Encompassing ethics issues as well as social and environmental standards, the code of conduct addresses the major aspects of corporate social responsibility (CSR), including child labour, employee compensation and personal and product safety. 12 G A L E R I E S L A F A Y E T T E G R O U P

15 engaged with our suppliers Audits that ensure compliance with standards The 116 social audits commissioned by the Group in 2015 involved suppliers of private-label brand products: 110 audits for Galeries Lafayette and BHV MARAIS, three for Didier Guérin and three for Louis Pion. These audits were conducted in accordance with the relevant standards. The standards from the Social Clause Initiative: Comprised of 20 major retail chains and apparel brands from France and Belgium, the initiative promotes more responsible practices among retailers and their suppliers. Member organisations can consult its guidelines and share both their evaluation methodologies and experiences as a means of updating and refining audit methods whenever necessary. For sites with fewer than 50 employees, our own internal audit standards. Environment In 2015 we added an environmental component to our social audits. Of the 116 social audits conducted in 2015, 19 included a supplemental environmental module. The sites involved were selected because of their potentially significant environmental impact from washing, dyeing, printing or comparable activities. These modules were used to audit air emissions, waste and wastewater treatment, energy use, greenhouse gas emissions and the environmental management system. 90 1% South America 43% Rest of Asia 2% Middle East/ North Africa 1% Europe 53 % of supplier social audits in 2015 were conducted in China contributors to sustainable procurement during To give tangible form to the challenges that responsible fashion must address, Philippe Lévêque (National Director of CARE France), Sakina M Sa (activist fashion designer) and Caterina Occhio (creator of the SeeMe ethical jewellery brand, which fights domestic violence against women) were on hand to share their experiences and their vision. In the past, I thought of CSR in strictly technical terms, as a set of rules to comply with. During the training course we saw the very human concerns that were the impetus for those standards. CARE taught us about the conditions in which people work. What they said had a deep impact on all of us. Catherine Rasser, buyer, private-label knitwear S U S T A I N A B I L I T Y R E P O R T 13

16 engaged with our suppliers Providing for the health and safety of consumers HEALTH AND SAFETY INSPECTIONS: FROM VIGILANCE TO RISK MANAGEMENT Regulatory requirements governing consumer health and safety are a critical focus of our attention, prompting regular inspections to verify strict compliance with current legislation and standards, such as the EU s REACH regulation and norms governing food contact. Suppliers for our private-label brands receive product specifications that summarise current regulatory requirements, and all products are tested prior to being introduced in stores; Outside brands stocked in our stores must sign a contractual agreement with the Group stating that they will comply with applicable regulations regarding product health effects and safety. We also conduct a series of random inspections each year to monitor the reliability of brands chosen for our stores. SPOT CHECKS Each year, selected products from brands sold in our stores undergo testing to identify any hazardous substances. These spot checks, performed by a specialised outside laboratory, were conducted on nearly two dozen products in G A L E R I E S L A F A Y E T T E G R O U P

17 engaged with our suppliers Responsible fashion The Group supports a number of innovative initiatives, including three that show how fashion can be more sustainable, spurring both creativity and best environmental and social sustainability practices. F FASHION INTEGRITY TRANSPARENCY ACROSS THE ENTIRE PRODUCTION CHAIN L LIVING BLUE, AN ETHICAL FASHION COLLECTION Living Blue is a collection of apparel and home linens developed by Galeries Lafayette in partnership with Living Blue and the humanitarian organisation CARE. Offering a total of 36 fashion and interior design items, each of them unique, Living Blue marks an important step in our engagement with responsible retailing. The goal behind this new capsule collection is to demonstrate our commitment to expanding fair trade. The collection s roots can be traced to our partnership with CARE France, which fights poverty worldwide with a specific focus on conditions for women. The Living Blue programme aims to revitalise the indigo industry in a remote region of Bangladesh, by allowing artisans practiced in age-old techniques such as shibori, a Japanese method for dyeing cloth, and kantha, embroidered quilts, to regain their self-sufficiency and dignity. The collection is the result of a joint design process between Galeries Lafayette staff a fashion designer and a buyer visited the area in 2015 and these local artisans seeking to reclaim their future. This ambitious collection, which won the 2014 Innov Action Challenge2, represents the first product range that offers 100% traceability from the cotton field to the store. It s designed to provide responsible, quality products that stand for transparent, engaged fashion. The Fashion Integrity line will be available in stores beginning in late August An employee competition to solicit innovative ideas for reinventing the Group. S SAKINA M SA, FASHION ACTIVIST Galeries Lafayette Group has been sponsoring ethical fashion designer Sakina M Sa since Her designs combine upcycling of fabric purchased from haute couture houses and a community-based project in the heart of Paris s Goutte d Or neighbourhood. In 2015 she opened a concept store, Front de Mode, which brings together some 60 designers behind a mission statement that includes a commitment to sustainability in their practices S U S T A I N A B I L I T Y R E P O R T 15

18 ENGAGED WITH our employees 16 G A L E R I E S L A F A Y E T T E G R O U P

19 engaged with our employees HOURS OF TRAINING 1 1 The figures in this section reflect consolidated data from Galeries Lafayette, BHV MARAIS, Louis Pion, Didier Guérin and Galeries Lafayette Beijing. Training was provided to 5,246 employees S U S T A I N A B I L I T Y R E P O R T 17

20 engaged with our employees A WIN-WIN FOR ALL Galeries Lafayette Group is a leading exemplar of the French Art of Living. Our values passion for customers, daring to innovate, stronger together, striving for excellence are rooted in our 120-year history, serving as a guide in offering the very best. We share those values with our customers and partners as well as our employees, who exemplify them every day. To support our workforce in their efforts, we are firmly committed to becoming a model responsible employer, with staff engaged and motivated on behalf of their customers. Among our major areas of concern: maintaining the health and safety of our people, expanding diversity, and improving working conditions and workplace comfort in short, nurturing the men and women who are a vital resource for Galeries Lafayette Group. 5 and major objectives drive our human resources policy: provide support for professional development within the organisation, recruit and develop talented workers for every role within the company, enhance the excellence of HR practices, ensure a high level of employee engagement, and promote update workplace dialogue employees 86% of whom have permanent employment contracts 60 % of staff who receive promotions are women 24 hours of training on average per employee trained in G A L E R I E S L A F A Y E T T E G R O U P

21 engaged with our employees Gaining strength through diversity Diversity is an asset on which we seek to capitalise. It s also a pledge to combat all forms of discrimination and enable all forms of talent to flourish. As a result, age, gender and disability are a special focus of our responsible retailing strategy. Generations We aim to promote employment for young people and seniors. To that end, three collective agreements signed by Magasins Galeries Lafayette, Logistique Galeries Lafayette and the Haussmann employer unit (UES) set targets of 10% seniors working at the company and 18% young people among all new hires. BHV MARAIS Rivoli has made a similar pledge, while Didier Guérin has adopted an agreement on an intergenerational contract that includes a special induction programme. The agreement covers employing young people under the age of 26, hiring workers over age 50 and maintaining employees over age 55 in the workforce. Women We have a special relationship with women. They account for more than two-thirds of our clientele. And many of our employees are women as well, especially in positions that involve close interaction with customers. As a result, women are critical to the company s financial robustness in multiple ways. Over the years we have developed an ambitious policy regarding the rights of women. The various entities within the Group have signed gender equality agreements designed to combat wage inequality or help employees achieve a better work-life balance. This policy enables women to advance in their careers: women make up between 36 and 45% of Galeries Lafayette Group s various executive teams. Disability In 2015 the percentage of disabled employees increased in every Group entity, surpassing the legal minimum of 6% in three entities. The disability agreement for the network of Galeries Lafayette stores, unanimously endorsed by the trade union organisations in December 2015, calls for actions and funding to support the disabled members of the workforce. Initiatives mounted on behalf of employees include a workshop for disability advocates, Handi Engagé Day events and the Handi Engagé Christmas Market; for customers, they involve a product line tailored to the disabled and personal shoppers for the visually impaired, among others. 5.59% of Group employees are disabled S U S T A I N A B I L I T Y R E P O R T 19

22 engaged with our employees Protecting the health of our employees Providing a safe and healthy working environment is a must for us. For example, in addition to both in-house and outside medical services that continually keep watch over employee health, training in heart-healthy practices was provided in all Galeries Lafayette and BHV MARAIS stores. About thirty defibrillators were installed during 2015 in conjunction with this campaign. Safety training was given to 1,110 employees at Galeries Lafayette and BHV MARAIS, as well as 187 employees at Galeries Lafayette Beijing, and a Safety Manager has been appointed for all Didier Guérin locations. Workers at Louis Pion and Didier Guérin have received training and manuals on Managing discourteous behaviour, with the aim of preventing antisocial or even criminal behaviour (theft, robbery). 579 Workplace accidents recorded in 2015 across the Group 33.39% Workplace accident frequency rate 2 at Galeries Lafayette and BHV MARAIS 1.12 % Workplace accident severity rate3 at Galeries Lafayette and BHV MARAIS More comfortable working conditions Working well means enjoying yourself in the workplace. With this simple fact in mind, and given our aim of being a model employer, we have launched a number of major initiatives to enhance employee well-being and improve workplace relations. SUNDAYS Of the 264 stores in France, 20 are open every Sunday and 240 are open on selected Sundays. No one is required to work on Sundays, and employees who do are entitled to double-time pay and compensatory time off. LISTENING TO THE WORKFORCE We are committed to fostering a truly open workplace, by regularly monitoring employee morale, listening to staff needs and drawing inspiration from suggestions made at all levels of the workforce. Several resources have been established to encourage dialogue and input from employees. In September 2015 Galeries Lafayette Group launched an internal employee engagement survey. Dubbed Echoes, it gives workers an opportunity to make their voices heard regarding changes within the Group, via an online survey with 67 questions. This tool measures the level of engagement and satisfaction among respondents; the findings will be used to define appropriate action plans and help managers become more effective. A pilot was conducted among 375 executives and managers as a way to test the questionnaire, familiarise managers with its content in advance and gain an early perspective on the level of engagement within the various entities. With an 87% response rate, the pilot survey yielded some helpful lessons that have been used to draft preliminary action plans at the management level. To ensure that all employees can contribute to our policy of innovation, we hold the Lafayette Innov Action Challenge every two years. As part of a learning expedition, the winners of the inaugural Challenge travelled to Montreal in July 2015, where they spent a week visiting innovative companies and brainstorming ideas for implementing their award-winning projects. The Just Scan It project, designed to simplify the process of changing prices during sales, was introduced across the entire network of Galeries Lafayette stores in late It is expected to reduce the number of printouts by nearly a million. In late 2015, 250 Group managers were invited to take part in a collaborative online discussion over a six-week period to identify topics for the second round of the Innov Action Challenge. 2 The number of lost-time accidents multiplied by 1,000,000 and divided by the total number of theoretical hours worked; part-time work is recorded in full-time equivalent hours. 3 The number of work days lost as a result of a workplace accident, multiplied by 1,000 and divided by the total number of hours worked. 20 G A L E R I E S L A F A Y E T T E G R O U P

23 engaged with our employees S U S T A I N A B I L I T Y R E P O R T 21

24 ENGAGED FOR the environment 22 G A L E R I E S L A F A Y E T T E G R O U P

25 1 0 engaged for the environment 0% OF ELECTRICITY FROM RENEWABLE SOURCES In December 2015, Galeries Lafayette and BHV MARAIS Chief Executive Officer Nicolas Houzé signed an amendment to the company s power procurement contract stipulating that 100% of the electricity purchased would be from renewable sources. This guarantee, obtained via the European Union s green certificate market, is valid for two years effective 1 January Since electricity accounts for 79% of store energy consumption, the move will sharply reduce the environmental impact of our property assets S U S T A I N A B I L I T Y R E P O R T 23

26 engaged for the environment SHRINKING THE FOOTPRINT OF OUR BUILDINGS The first step in the quest for efficiency was to measure Galeries Lafayette s exact environmental footprint. In 2015 we introduced the Lafayette Avenir platform to help us collect more reliable data about building performance and other aspects of our responsible retailing strategy. Lafayette Avenir will also promote the sharing of best practices to ensure progress Group-wide. An energy audit conducted at three Galeries Lafayette Haussmann sites Coupole, Lafayette Homme and Lafayette Maison provided an additional barometer of performance. The audit s findings will be used to draft action plans on energy efficiency. Energy audits are currently underway at Group companies where they are mandated1; the results will be presented during the course of Companies are required to conduct an energy audit if they have a workforce of more than 250 employees, their annual revenue exceeds 50 million or their balance sheet total exceeds 43 million cubic meters of water consumed in This is a significant increase over 2014 due to an incident that occurred in one store. 5% The decrease in greenhouse gas (GHG) emissions in 2015 from the previous year. 24 G A L E R I E S L A F A Y E T T E G R O U P

27 engaged for the environment square metres QUANTIFIED OBJECTIVES We are striving to limit our energy spending through ongoing energy savings. New measures will be defined and implemented in 2016 on behalf of a stringent energy policy founded on energy efficiency and low consumption. 1. Reduce energy consumption per square metre of retail space by 15% by 2020*. 2. Reduce greenhouse gas emissions by 15% by 2020*. 3. Reduce water consumption per square metre of retail space by 15% by 2020* (*from a 2014 baseline). As the owner of the majority of our stores, we muster every resource at our disposal to reduce the environmental footprint of our buildings. FOR BIODIVERSITY IN THE HEART OF PARIS Since May 2015, the rooftop of the Galeries Lafayette flagship in Paris has been home to an experimental garden for growing strawberries, raspberries, edible flowers and herbs, the brainchild of AFCH, the French association for soilless cultivation. Twenty-one thousand plants are being cultivated and two beehives are kept as well, as part of a green-friendly project to enhance the urban ecosystem. Over the course of 2015 AFCH collected 1,200 kilograms of strawberries, 450 kilograms of raspberries, 380 kilograms of tomatoes, 3,000 edible flowers and gram bunches of herbs. The organisation sells its harvest to chefs who run their own restaurants in the capital. This experiment in biodiversity is expanding, with similar initiatives set for the BHV MARAIS Rivoli and the Galeries Lafayette store in Annecy. This is not the Group s first foray into urban biodiversity. Since 2013 the roof of Strasbourg s Galeries Lafayette store has played host to beehives (10 currently) that produced 160 kilograms of honey in Lighting THAT S MORE RESPONSIBLE To reduce our building energy consumption, we are committed to replacing standard light bulbs with LEDs whenever we renovate existing stores or open new ones. Our 100% LED lighting plan, issued in 2015, also promotes the increased use of LED lighting as individual bulbs are replaced over time. One example of this campaign is the Lafayette Homme building at the flagship store, which was redesigned in 2015 and now boasts 80% LED lighting. Management VIA REMOTE READING AND BUILDING MANAGEMENT SYSTEMS Since 2015 remote meter reading has yielded a detailed profile of building power consumption at Galeries Lafayette and BHV MARAIS sites, allowing for strict consumption management. Moreover, 21 sites have been equipped with a building management system since 2015 to run and program energy equipment. These two monitoring and measurement tools will help us reduce our energy use on an ongoing basis S U S T A I N A B I L I T Y R E P O R T 25

28 engaged for the environment LOWER-IMPACT TRANSPORT Our stores, largely located in city centres, are supplied from warehouses on the outskirts. This logistics activity generates a variety of problems for surrounding areas, including fine particulate and greenhouse gas emissions, noise, and traffic congestion. When we talk about sustainability and transport, it s tempting to think only in terms of greenhouse gases. But actually the negative externalities for that issue extend much more widely. The TK Blue rating system provides that broader perspective and tells us which carriers are choosing solutions that are financially, technologically, socially and environmentally efficient. This new information is transforming the relationship between carriers and their customers, making Philippe Mangeard, transportation more transparent. President and founder, European TK Blue Agency 5% DECREASE IN LOGISTICS-RELATED GREENHOUSE GAS EMISSIONS In 2015 the BHV MARAIS Rivoli store added six vehicles to its supply fleet that run exclusively on compressed natural gas. This solution, which is friendlier to the environment and the store s neighbours as well, has reduced greenhouse gas emissions by 15%, cut noise pollution in half and eliminated 90% of fine particulate emissions. Meanwhile, BHV MARAIS Rivoli continues to make home deliveries by bicycle and three-wheel electric vehicles. Thanks to impressively streamlined logistics, outside brands commissioned for sale at the fine foods and housewares branches of the Haussmann flagship store now require just two daily deliveries, compared to 16 in the past. Galeries Lafayette and BHV MARAIS have reduced their greenhouse gas emissions by 5% on a comparable basis since ACKNOWLEDGING THE BROADER IMPACT OF TRANSPORT Mindful that our responsibility doesn t end with greenhouse gas emissions, we have also embarked on a campaign to assess and reduce the wider social costs of our transport. To that end, we have joined forces with the European TK Blue Agency to measure both our greenhouse gas emissions and the impact of our transport on the community, in terms of noise, traffic congestion, accidents and so forth. Galeries Lafayette and BHV MARAIS were rated for the first time in 2015 and received a grade of B-. That result recognises our past efforts to be more eco-responsible and will serve as a guidepost for further progress in the years to come. 26 G A L E R I E S L A F A Y E T T E G R O U P

29 engaged for the environment VALUABLE MATERIALS Acutely aware of the value of materials, Galeries Lafayette Group is taking steps to combat wastage and reduce waste production. The policies currently being implemented are designed to establish Group entities as exemplary managers of all forms of waste. Towards that end, we have defined three key objectives: 1. Reduce total waste production by 15% by 2020*. 2. Increase the recycling rate (including upcycling) by 50% by 2020*. 3. Reduce the volume of Industrial Solid Waste by 20% by *from a 2014 baseline. RESPONSIBLE BAGS The introduction of the new Galeries Lafayette logo provided an opportunity to redesign store bags to be more eco-friendly. Nearly 50% of Galeries Lafayette bags are now made of paper. At Louis Pion and Didier Guérin, paper bags now account for 100% and 95% of all bags respectively. UNSOLD PRODUCTS PROMOTING REUSE Since fashion can also be a committed, community-minded business, we no longer destroy unsold inventory of non-food private-label products. Instead, we give new life to those items through partnerships with charitable organisations such as Agence du Don en Nature, Dons Solidaires and Emmaüs Défi. Thanks to those partnerships, formed in 2014, we donated 62,745 items in With regard to unsold food products, initiatives have been carried out at the local level to distribute those goods to food banks and other non-profit organisations. A number of stores also hold occasional food drives targeted to customers. In 2015 we made 27,602 food donations benefiting 8,280 people TONNES OF WASTE We are taking steps to streamline and improve our waste management, with 23 stores now conducting waste sorting programmes, up from six a year earlier. The department stores recycled 5,762 tonnes of waste in 2015, primarily paper, cardboard and plastic. In partnership with Le Relais, a work-integration social enterprise, six collection points for employee clothing, shoes and household linens have been set up in the flagship store s employee restaurant, the corporate headquarters, the offices of BHV MARAIS Rivoli, the store in Nantes and the warehouse in L Isle-d Abeau. Two collection points that benefit other local non-profit organisations are available at the Nice Cap 3000 and Grenoble stores. In all, 1.7 tonnes of clothing, linens and shoes were collected in Additional initiatives are underway to recycle or reuse materials whenever possible, including the reuse of shipping boxes and window displays and recycling of plastic clothes hangers. Campaigns are also being conducted to raise awareness of sustainability issues among employees, who have enthusiastically lent their support for reducing wastage S U S T A I N A B I L I T Y R E P O R T 27

30 ENGAGED WITH the community 28 G A L E R I E S L A F A Y E T T E G R O U P

31 engaged with the community FOOD AND NON-FOOD DONATIONS IN S U S T A I N A B I L I T Y R E P O R T 29

32 engaged with the community SOLIDARITY THROUGH GIVING Galeries Lafayette Group aims to support a more virtuous, generous form of fashion. Indeed, The Art of Giving is one of our five action plans for responsible retailing, outlining an active policy of donations and corporate giving. The plan takes a variety of forms: patronage of the arts, mutually enriching partnerships, actions to promote local communities and historic sites, and the artistic and social initiatives undertaken by our corporate foundation, Lafayette Anticipation. Corporate giving, a vehicle for the arts 20 institutions supported in France Musée des Arts Décoratifs Centre Pompidou and Centre Pompidou Metz MAMVP/ARC Palais Galliera Musée des Abattoirs-FRAC Midi-Pyrénées Musée de l École de Nancy MAC de Lyon MuCEM Théâtre du Châtelet RMN/Grand Palais Designers Days ANDAM Palais de Tokyo Le CENTQUATRE-PARIS Villa Noailles Biennale de Lyon Eclats d Jazz Edition Opéra Grand Avignon And five partnerships worldwide We lend support to the worlds of art, fashion, design and the performing arts, with a focus on young artists who show exceptional promise, organisations in dire financial need, and institutions that help to disseminate artistic culture. The projects we select, in accordance with our vision of sustainability, all contribute to a vibrant and stimulating contemporary arts scene. Grants are made by the corporate foundation and by the Group. French May Festival, Hong Kong Yishu 8/House of Arts, Beijing Berlin Biennale Venice Biennale documenta(13), Kassel 50 projects awarded grants 25 institutions supported in France and worldwide passes provided to Group employees 30 G A L E R I E S L A F A Y E T T E G R O U P

33 engaged with the community Mutually enriching partnerships The Group s partnerships are designed to provide support, initiatives and enthusiasm in communities where they are lacking. Our commitment to five organisations that are acknowledged in their fields which include work integration, disability and support for the underprivileged is one of the cornerstones of our sustainability policy. We plan to continue and expand those partnerships even further in the years to come. Marie-Hélène Plainfossé, Vice President, Talent & CSR S U S T A I N A B I L I T Y R E P O R T 31

34 engaged with the community GIVING WOMEN A FUTURE, WITH CARE FRANCE Since 2014 we have been working alongside CARE France to tackle the fundamental causes of poverty, especially on behalf of women, who bear its brunt. We have concentrated our efforts in Bangladesh, with substantive campaigns at the community level to develop responsible sourcing options through the Living Blue programme, improve working conditions, encourage workplace dialogue and develop leaders for workers in the apparel industry. LIVING AS A TEAM THANKS TO SIMON DE CYRÈNE Founded in 2006 by Laurent de Chérisey, Simon de Cyrène is a non-profit organisation that promotes shared houses, community living spaces where disabled and able-bodied residents live side by side. The goal is to create or re-establish social bonds between the disabled and non-disabled. We have helped to fund new shared houses (three to date, with nearly a dozen more in the planning stages) and have led other initiatives as well, such as a tour of the Galeries Lafayette flagship store for more than a dozen Simon de Cyrène members from Vanves, in suburban Paris, in February The visit, which was designed to test participants customer experience, also included a session with a personal shopper (a service available to visually-impaired customers as well) and workshops on personal care. SUPPORT FOR WORK INCLUSION WITH EMMAÜS DÉFI Under the partnership with Emmaüs Défi, giving from the Group and our employees takes several forms, including donations of unsold non-food inventory and Christmas toy drives. In 2015 these initiatives were often enhanced with one-on-one personal interaction designed to give employees a more active role. For example, the visual merchandising staff led a skills sponsorship project, while other employees worked with the long-term unemployed to help reintegrate them into the labour force. In addition, a charity shop was set up at Galeries Lafayette headquarters to raise employee awareness. Ensuring sustainable consumption and production patterns is one of the 17 sustainable development goals defined by the United Nations in The Living Blue capsule collection, introduced in stores in the spring of 2016, is a concrete example of a new business model designed to meet that goal. As a result of that collaboration between the Galeries Lafayette Group and CARE France, artisans from Bangladesh have gained the opportunity to work while improving their income and living conditions. All of the Group s banners are contributing to our efforts by donating new items. With their help, people living on the very margins of society still have access to new, high-quality items! The first employment gateways have also been created, consistent with the mission at the heart of our organisation: restoring dignity through work. Vanessa Engel, Partner Relations Manager, Emmaüs Défi Philippe Lévêque, National Director, CARE France REDUCING WASTAGE WITH AGENCE DU DON EN NATURE Nearly nine million French citizens live below the poverty line. Responding to the twofold challenge of fighting poverty and reducing wastage, Agence du Don en Nature (ADN) collects unsold new merchandise from partner businesses for repackaging and distribution to charitable organisations. Galeries Lafayette Group lends support to ADN in three ways: Financial donations provided annually to ADN since its creation in Product donations since 2014, repackaged by an organisation from the sheltered sector that provides employment assistance for the disabled. In 2015 we donated a total of 25,000 items of men s, women s and children s clothing and accessories (with 857 packages distributed to 82 organisations across France), plus pallets containing products of all kinds, including clothing, toys, and home appliances. Nearly two dozen Group employees contributed to the project by sorting those donations. Skills sponsorship: Launched in 2014 with makeover and selfesteem workshops, the skills sponsorship programme will be fully up and running in At four workshops held in Angoulême, Dijon, Paris and Vaulx-en-Velin in November 2015, a dozen volunteers from Galeries Lafayette Group and our partner organisations provided advice and makeovers to more than 40 women. The beauty makeover workshop offers a little bit of me time for women who, for various reasons, don t always have that opportunity. It gave me a sense of honour and pride; it was a real privilege, and made me feel I was doing something truly special. Jessie Bourgeois, Beauty Training Manager 32 G A L E R I E S L A F A Y E T T E G R O U P

35 engaged with the community Promoting the local community With more than 50 stores located in city centres, we feel a natural responsibility to contribute to economic and community development in these areas. LYON BRON OPEN LAB The site of the Lyon Bron Galeries Lafayette store is in the midst of a transformation. We wanted to work with the community to create a playful space that could accommodate some new ideas being proposed by Creative Roots, in partnership with Citynove, the Galeries Lafayette Group s real estate management division. And with that, Open Lab was born: an accessible space for nearby residents, designed for activities that foster conversation and improve community ties. During the initial phase of the project, from November 2014 to July 2015, nearly 70 weekly events were held at the site, including happy-hour events, workshops for budding DIYers, and the Park n Fest festival featuring more than 30 local artists, plus the Re: Place esplanade project: a pop-up green space in which to relax. Later, the location was completely revamped to become a non-profit café. It offers a laid-back space for performers (poetry, music, exhibitions, video screenings) selected by the Open Lab staff. The spot now serves as a new cultural melting pot, a friendly, open-minded haven for both artistic expression and curious visitors. HERITAGE Galeries Lafayette Group s history, culture and values date back 120 years. To preserve this living, inspiring heritage and to share our unique history and architectural assets with a wide audience, including employees, students and historians, Galeries Lafayette created a Heritage department. The archives are open by appointment, exhibitions and guided tours can be arranged, and experts in architectural restoration ensure that the Group s historical buildings are being maintained. In addition, for the fifth consecutive year the Heritage department took part in the European Heritage Days events on 19 September 2015, offering an impressive history of six stores (Bordeaux, Paris Haussmann, Orléans, Reims, Strasbourg and Toulouse). Nineteen staff volunteers led a total of 100 tours for some 2,600 visitors. 227 guided tours visitors 38 researchers granted access to the archives S U S T A I N A B I L I T Y R E P O R T 33

36 engaged with the community Engaging with the community through Lafayette Anticipation Lafayette Anticipation oversees activities in support of the contemporary arts funded by two charitable bodies established in 2013 by Galeries Lafayette Group and the family that owns it: the Galeries Lafayette corporate foundation and the Moulin Family Endowment Fund. LAFAYETTE ANTICIPATION GALERIES LAFAYETTE GROUP S CORPORATE FOUNDATION This charitable foundation aims to support contemporary artists and designers. When it opens in 2017, it will be the first multidisciplinary centre of its kind in France. As a site for experimentation, production and exhibition, Lafayette Anticipation will offer a unique environment and resources, enabling artists to take their work in innovative directions. A PUBLIC-INTEREST ORGANISATION WITH VALUE FOR THE COMMUNITY Through its actions, Lafayette Anticipation fulfils its public-interest mission by providing a benefit to the community, helping to create a solidarity economy of art. Provide struggling artists with conditions in which they can work and create. Reflect on the institution s responsibility with regard to the artists and ensure they can exercise artistic freedom. Commit to compensating artists for their creative work. 34 G A L E R I E S L A F A Y E T T E G R O U P

37 engaged with the community PROJECTS WE HAVE SUPPORTED Recognised community impact In 2015 Lafayette Anticipation pledged to support numerous projects that serve a social purpose. A work by Ulla von Brandenburg commissioned by the Nouveaux Commanditaires (Fondation de France) Les Nouveaux Commanditaires [New Patrons] is a path-breaking initiative for the arts that allows any member of the public to commission a work of art on behalf of any institution or place addressing community or environmental challenges at the local or regional level. In 2015, for example, the artist Ulla von Brandenburg presented Baisse-toi montagne. Lève-toi vallon [Sink Down Mountain, Rise Up Valley], a performance piece and video based on the philosophy of the French thinker Saint-Simon, for those living in the Saint- Simoniens senior residence in Paris. 82 artists in 2015 In 2015 Lafayette Anticipation helped to fund and publicise the work of 53 artists. The group was divided almost equally between men and women. The focus was on artists under the age of 40. Wikipedia Edit-a-thon by the Art+Feminism collective Less than 10% of Wikipedia contributors identify as female, a state of affairs that undoubtedly skews the content of what is an increasingly important repository of shared knowledge. To restore gender parity in Wikipedia s perspective, the Art+Feminism campaign decided to mark International Women s Day by organising a Paris-based Edit-a-thon, creating or improving as many pages as possible about women, feminism and culture. Lafayette Anticipation hosted 120 participants in 2015 and 600 in 2016 as part of an Edita-thon held in partnership with France s National Archives, giving web users of all backgrounds an opportunity to contribute to Wikipedia by penning new content. Consulting, design, creation, writing & production Photo credits: Galeries Lafayette Group, Terre de Sienne