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SUSTAINABILITY

VITALITY
AND
RESPONSIBILITY
2016 Sustainable Development Report
2016 SUSTAINABLE DEVELOPMENT REPORT

CHALLENGES AND STRATEGIES


Decathlon in figures 3
Transforming business to sustain our purpose 7
Our sustainable development issues 10
Our sustainable development organisation 12
Our relations with stakeholders 14
Our SD ambitions 18
Our climate commitment 20

PEOPLE AND MANAGEMENT


Putting people at the heart of our growth 25
Ready for responsibility and Freedom 30
Developing skills and uncovering talent 33
Delivering health and safety 36
Attracting, rewarding and motivating teammates 40
Decathlon Foundation: working to promote universal access to employment 43

PRODUCTS AND SERVICES


Designing innovation for all 47
Promoting responsible consumption 52
Creating safe, high quality products 58
Offering practical and eco-friendly services 64

STORES AND TRANSPORT


Eco-developing our global network 69
Supporting local cooperation 72
Optimising our energy and waste management 76
Transporting our products and encouraging eco-mobility 81

RESPONSIBILITY IN PRODUCTION
Maintaining long-term relations 85
Putting people first 92
Rolling out environmental management 99

INDICATORS AND METHODOLOGY


Our performance indicators 103
Regulatory cross-reference table 119
Methodological note 125
Confirmation of participation and report on the fairness of the information 129

SUMMARY 1
CHALLENGES
AND STRATEGIES
2016 SUSTAINABLE DEVELOPMENT REPORT

DECATHLON IN FIGURES
At Decathlon, we have almost 80,000 teammates worldwide, united around two shared values: Vitality and
Responsibility. For forty years now we’ve been there alongside sports users, listening to understand their
needs and deliver appealing, hi-tech products at the lowest prices, to make them affordable for everyone.
That’s why we're here. Our design teams come up with products suited to our users, to make it easier for
them to play their chosen sport, regardless of age or level, thereby helping them to derive maximum benefit
and enjoyment from physical activity.
In 2016, we continued to grow our business. We entered new markets (Mexico, Ivory Coast, Slovenia,
Singapore and Malaysia), opened 164 new stores worldwide and passed the one billion mark for the number
of products sold. It was against this backdrop that the company and all of its activities generated a total
turnover of almost €10 billion (excl. VAT) in 2016, i.e. a 9.5% increase on 2015.
Last year was also particularly noteworthy for us as we co-wrote our business vision for 2026. We wanted
this exercise to be a collaborative one, involving as many teammates as possible. We were keen to take a
collective decision about what we hoped to achieve and the transformations we sought to implement over
the next ten years, all of which would safeguard our business in the long term, underscored by the values of
freedom and responsibility.

OUR TEAMMATES ACROSS THE WORLD

80 000
75 000 78 000

78,267
70 000
70.6 % 65 000
65 000
72 000

teammates on a permanent 60 000


across the world employment 60 000
contract 55 000
50 000
45 000
2013 2014 2015 2016

Breakdown of employees Breakdown of teammates


by geographical area by activity

Europe: 72.31% Retail and services: 76.2%


Asia: 21.23% Logistics: 11 %
Russia: 2.22% Support departments: 6.7%
Brazil: 1.47% Design / Production: 6.07%
India: 2.28%
Africa: 0.5%

Breakdown of teammates by age Breakdown of teammates by gender

under 20: 3.90% Men: 51%


20 to 29 year olds: 65.62% Women: 49%
30 to 39 year olds: 21.79%
40 to 49 year olds: 6.91%
50 and over: 1.78%

CHALLENGES AND STRATEGIES 3


2016 SUSTAINABLE DEVELOPMENT REPORT

OUR BUSINESS ACTIVITIES WORLDWIDE

2016 turnover Growth in turnover


(in billions of Euros)

€ 9.97 10
9 9.97 
billion 8 9.1 
7 8.2 
6 7.4 
5
4
3
Breakdown of 2016 turnover 2
1
0
International: 67%
2013 2014 2015 2016
France: 33%

OUR AREAS OF ACTIVITY


Decathlon teams carry out different activities in these areas: distribution to stores and online, transport and
logistics, and support services.

Africa zone: Ivory Coast, Morocco.


America zone: Brazil, Mexico.
Asia zone: China, Malaysia, Taiwan, Thailand, Singapore.
India zone: India.
Europe zone: Belgium, Bulgaria, Croatia, Czech Republic, France, Germany, Great Britain, Hungary, Italy, Netherlands, Poland,
Portugal, Romania, Spain, Slovenia, Slovakia, Sweden, Turkey.
CIS 1 zone: Russia.

1. CIS: Commonwealth of Independent States.

4 CHALLENGES AND STRATEGIES


2016 SUSTAINABLE DEVELOPMENT REPORT

Breakdown of our POS by country (31/12/2016)

Openings Openings Openings


Total Total Total
2016 2016 2016
Germany 36 (+11) India 46 (+11) Great Britain 26 (+7)
Belgium 27 (+2) Italy 113 (+7) Russia 49 (+11)
Brazil 21 (+2) Malaysia 1 (+1) Singapore 2 (+2)
Bulgaria 4 (+0) Marocco 6 (+2) Slovakia 4 (+1)
China including Taiwan 214 (+51) Mexico 3 (+3) Slovenia 1 (+1)
Ivory coast 1 (+1) Netherlands 10 (+4) Sweden 2 (+1)
Croatia 4 (+1) Poland 46 (+1) Thaïland 9 (+4)
Spain 149 (+17) Portugal 30 (+2) Turkey 20 (+5)
France 301 (+8) Czech Republic 11 (+2)
Hungary 21 (+4) Roumania 19 (+2)

1 ,176 45 50 1,053,937 ,000 87 %


stores warehouses branded products of users
sports are satisfied

worldwide, and logistics Decathlon brand sold with their Decathlon


i.e. 164 more than platforms worldwide. products. worldwide. products.
in 2015.

OUR PRODUCTION AREAS


Decathlon teams organise product manufacturing with suppliers and have established operations in 22
countries, working from 39 production offices located as closely as possible to manufacturing sites.

With Decathlon
production office

Without production office

African production area: Egypt, Ethiopia, Madagascar, Mauritius, Morocco, Tunisia.


American production area: Brazil, Mexico.
North Asia production area: China, Japan, South Korea, Taiwan.
Southeast Asia production area: Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand, Vietnam.
Southwest Asia production area: Bangladesh, India, Pakistan, Sri Lanka.
Europe production area: Albania, Austria, Belgium, Bosnia, Bulgaria, Croatia, Czech Republic, Finland, France, Georgia,
Germany, Great Britain, Hungary, Italy, Lithuania, Netherlands, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain,
Switzerland, Turkey, Ukraine.
CIS 2 production area: Russia
2. CIS: Commonwealth of Independent States.

CHALLENGES AND STRATEGIES 5


2016 SUSTAINABLE DEVELOPMENT REPORT

“At Decathlon, we believe that preserving the


planet and its population protects
our purpose: to make sport
accessible to the many.”

6 CHALLENGES AND STRATEGIES


2016 SUSTAINABLE DEVELOPMENT REPORT

TRANSFORMING BUSINESS
TO SUSTAIN
OUR PURPOSE

Decathlon celebrated its 40th anniversary in 2016. We passed the billion marker for the number of products
sold. This growth is partly a result of our growing number of stores, not just in Europe but also in China,
India, Russia and new countries like Mexico, Malaysia, Singapore and Ivory Coast. It’s also partly due to the
fact that we’ve intensified our efforts to listen to and observe our sports users, with 50 signature sports and
exclusive new products.
The world is experiencing rapid changes that create a certain degree of instability. Technological revolutions
have posed many questions, and have sometimes helped to widen the inequality gap. Citizens are also
demanding greater transparency and more vigilance.
Signs that the environment is deteriorating can now be seen and felt. 2016 marked new record average
temperatures worldwide, increasing evidence of the tangible effects of climate change and numerous
peaks in air pollution levels, all of which is concerning for our health. Businesses must help to meet these
challenges and transform themselves; they must be agile, responsive and inclusive.
We believe in "Responsibility and Freedom" for all, as this people-focused project helps our organisations
to bring about radical changes designed to boost motivation, flexibility and responsiveness. In 2016, we
co-wrote Decathlon’s Vision 2026, adopting a collaborative process that involved all of our teammates.

“When the Vision 2026 was being written, I was given the opportunity to lead
the exercise in France. It was hard to believe, as I was only 21 and working as
a part time sales assistant. The only real selection criterion was motivation,
because the business was implementing a less hierarchical structure,
giving everyone the chance to express their own viewpoints and let
their potential shine through. I’m not surprised at all that the "Preserving our planet
and its population in order to protect our purpose” has been adopted by teammates all
over the globe. Each one of us can and must play a part in helping to create a better world.”

ALEXANDRE LEROY
Decathlon Villeneuve d'Ascq, France.

CHALLENGES AND STRATEGIES 7


2016 SUSTAINABLE DEVELOPMENT REPORT

Here at Decathlon we believe in the principle of subsidiarity. That’s why in 2016 we created sustainable
development leaders for each country, to ramp up our impact by targeting our actions more effectively, and
making them more targetted and efficient.

“As part of Decathlon Spain's environmental strategy, we held our annual clean-up
operation on 25 September 2016, involving our fellow citizens, sports users,
teammates and their families. We cleaned up 103 different sites, including lakes, rivers,
beaches and forests, collecting over 32,000kg of debris. We also planted 3,500 trees.
This is our way of helping to preserve our natural environment,
so that future generations can enjoy playing the sports we all love so much."

SERGIO GONZÀLEZ
Decathlon Rivas, Spain.

We believe that measuring the environmental impact of all our activities enables us to take action to
minimise it. To date, 62% of our GHG emissions are directly related to our product manufacturing process.
Our eco-labelling initiative has helped us to respond to this issue.

“There are three main reasons behind our decision to develop eco-labelling.
Firstly, we want to encourage our teams to minimise the environmental impact of
their products, by making eco-design an integral part of all their projects.
We then want to pass on information to help users become aware of environmental
ratings when they shop, both in stores and online.
Our basic objective is to promote this type of labelling by sharing our methods
with others operating in the same market and with the relevant government authorities,
to hammer home the message of responsible consumption. In 2016, 8% of Decathlon
brand products were assessed using this system. Our aim is assess 100% of our textile,
footwear and heavy stitching ranges in this way by 2019.”

RAFFAELE DUBY
Eco-design and Eco-labelling project manager, France.

8 CHALLENGES AND STRATEGIES


2016 SUSTAINABLE DEVELOPMENT REPORT

We believe in furthering human progress for those making our products, and we work unceasingly with our
suppliers to promote personal safety and ensure that good working practices and conditions are complied
with. Our human responsibility in production policy was formalised back in 2002, when we implemented our
Social Charter along with a system designed to assess its application on all our sites.

“For several years now, various major international principles and regulations
have been introduced, new human rights issues have surfaced and
industrial organisations have undergone significant changes.
To support these developments, in 2016 we decided to rework our code of conduct
and to expand it beyond the issue of human rights and safety to include other topics
under our collective societal responsibility, such as environmental issues, chemicals
management, and the procurement of responsible materials, etc. This is an important
stage in terms of getting our suppliers on board, so that we can act responsibly
towards populations all over the world, regardless of their diversity."

SOUNDOUS HASSOUNI
Human Responsibility in Production process manager, France.

After our forty-year history, we are now entering a new era. Our ambition is to have a positive impact on the
planet and its population. The road ahead is a real challenge, but we’re convinced that our teammates, our
users and our partners will be able to work together to find solutions.
In this year’s report, we’ve included a section explaining our aims and challenges, so that our actions
can be better understood. This report is testament to our shared commitment to building a responsible,
people-focused economy that respects the planet and is therefore sustainable.

We believe in Decathlon, altogether united for a better world.


The Decathlonians

CHALLENGES AND STRATEGIES 9


2016 SUSTAINABLE DEVELOPMENT REPORT

OUR SUSTAINABLE DEVELOPMENT CHALLENGES


Due to the nature of our activities and the global dimension of our business, we exert an impact on society
and the environment, and therefore have a role to play in helping to solve the world's key challenges.

OUR To sell attractive, hi-tech sports items at the lowest possible prices, to enable as many people
MODEL as possible to access our products.

OUR SOCIAL ACTIONS

• Recruiting people who are vital, practical and enthusiastic


U ES
SS
about sport.
• Fulfilment at work through playing sport together. I
E
• Developing skills and discovering talent.

E
Health and safety

OY
• Empowering teammates and employing the principle
of teammates

PL
of subsidiarity.

EM
• Uncompromising personal safety standards. Organisation of working hours
• Sharing the value created and promoting employee shareholding.
Commitment of teammates
• Fair remuneration for teammates in accordance with responsibilities.
Sharing the value created
with teammates
OUR SOCIETAL ACTIONS
Education and training
DESIGN
Attractiveness of talent
• Security, safety and quality of Decathlon products.
• Durability of Decathlon products.

PRODUCTION

• Regular assessments of and continuous improvements


to working conditions on production sites.
• Increasing the capacity of suppliers in essential areas Working conditions
(safety, working hours, etc.).
Human rights
• Strategic partners.
Dialogue
LOGISTICS
with stakeholders
• Unsold product management (repairs, recycling, donations, Consumer health and safety
etc.) by logistics teams.
Operational authority
BUSINESS and social acceptability
SO
CI

• Organising local events to revitalise the network of local Innovation


AL

sports associations.
SS
I

USERS UE
S
• Encouraging regular playing of sport.
• Safety of Decathlon products.
• Continuous improvement of Decathlon products,
based on user reviews.
• Transparency of information for our users.
• Communities of sports players led by store teams.
• Online sports coaching.

10 CHALLENGES AND STRATEGIES


2016 SUSTAINABLE DEVELOPMENT REPORT

OUR ECONOMIC ACTIONS

• User affordability of Decathlon products through the Smart


Cost strategy.
• Investing in organic growth.
• Provision of free sports facilities close to stores.
• Bulk purchasing and strategic partnerships.
• Pilot projects for fair pay for production workers.
EC • Innovation with a positive social, environmental and societal
ON impact.
OM
IC
IS

OUR ENVIRONMENTAL ACTIONS


SU

Consumer
ES

purchasing power DESIGN

Remuneration conditions operated • Multi-criteria analyses of the life cycle of Decathlon


by our suppliers, subcontractors products.
and service providers • Using renewable, recycled or recyclable
raw materials.
Local economic impacts
• Eco-designing Decathlon products and packaging.
Market development
Bottom of Pyramid PRODUCTION

• Continuous assessment and improvement of


the environmental impacts of our production sites.
• Developing more environmentally friendly
manufacturing processes.
• Strategic partners.

Dwindling natural resources LOGISTICS

Climate change • Reducing Decathlon's transportation distances.


• Maximising container load factors.
Water, air and soil pollution • Using transport methods with smaller impacts.
Toxicity of chemicals • Optimising logistics platforms' environmental
performances.
Waste management
BUSINESS
ES

• Optimising energy performances of existing stores.


SU

• Eco-construction of new stores.


IS

• Waste sorting and recycling.


L

T
A

• Promoting soft mobility.


EM
N M USERS
I RO
E NV • Eco-performance labelling of Decathlon products.
• Product repairability for our users and in workshops.
• Second hand product sales through the Trocathlon
system.

CHALLENGES AND STRATEGIES 11


2016 SUSTAINABLE DEVELOPMENT REPORT

OUR SUSTAINABLE DEVELOPMENT ORGANISATION


Sustainable development involves all of the activities done at Decathlon. We advocate a network-based
organisation so we can roll out our actions at international level, and because we feel that the pyramid model
is no longer appropriate for the needs of our business and our teammates.
Our aim is for each teammate to be proactive in their own particular area and forward-looking with regard
to their ecosystem, to exercise Decathlon's responsibility towards its sports users, its partners and citizens
of the world.
Our teammates are guided daily by several principles:
• the freedom to make decisions and the courage to take the initiative;
• the responsibility of asking teammates affected by the decision for their opinions;
• the right to make mistakes.

SUSTAINABLE DEVELOPMENT LEADERS FOR EACH COUNTRY


They lead Decathlon's sustainable development strategy in their country by adapting to local issues and
circumstances. They are supported by a team enabling them to handle each individual theme within their
sustainable development project. They communicate in a transparent, honest fashion with local stakeholders.
They contribute to Decathlon’s global sustainable development strategy by feeding back the various societal
and environmental issues and challenges they encounter in their particular country. Sustainable development
leaders for each country are currently being appointed; as of December 2016 we had 7.

SUSTAINABLE DEVELOPMENT TRANSFORMATION PROCESS LEADERS


Responsible for key themes (eco-design, human responsibility in production, environmental management
in production, etc.), they anticipate the challenges and issues facing society by defining targets and aims,
along with change management, to make them a success. They forge relationships with those involved in
their particular area.
They work alongside teammates to co-create the tools, methods and training solutions needed to make
them autonomous. Their role is to help each local manager become more autonomous and ensure global
consistency when they apply their individual processes.

DECATHLON SUSTAINABLE DEVELOPMENT LEADER


In conjunction with the Decathlon leader, and consistent with the company strategy, the SD leader defines our
sustainable development ambitions in line with the focus areas put forward by the sustainable development team
and employees. She leads a team of sustainable development transformation process leaders, along with the SD
leaders network for each country, ensuring that the required human, financial and material resources are available.

MANAGEMENT
DECATHLON LEADER
This leader communicates Decathlon’s vision, business model and strategic objectives to the board of directors.
SUSTAINABLE DEVELOPMENT STEERING COMMITTEE
Made up of representatives from different countries and activities within the business (retail, logistics,
production, design and quality), the committee takes a cross-functional approach to examining the sustainable
development strategies put forward, and approves them.
INTERNAL AUDITORS
Internal auditors, who report directly to the Shareholders’ committee, conduct regular ground-level audits to
ensure that our Social Charter is being correctly applied, particularly its safety aspects.
In conjunction with our human responsibility in production teams, they audit internal personal safety diagnostics
carried out at our suppliers and present an annual analysis to the audit committee (one of Decathlon's
subcommittees on the board of directors).
BOARD OF DIRECTORS
The board of directors approves the strategies and objectives put forward by the sustainable development leader.

12 CHALLENGES AND STRATEGIES


2016 SUSTAINABLE DEVELOPMENT REPORT

ALL
DECATHLONIANS

IÑIGO GARCIA
GIORGIO POSSI SPAIN
ITALY
VIANNEY BURUCOA
CANDICE LEE CHINA
TAIWAN

ISABELLE GUYADER BOARD


RABEYA HOSSAN FRANCE OF DIRECTORS
DECATHLON
BANGLADESH LEADER
SUSTAINABLE
GERMANY DEVELOPMENT STEERING
COMMITTEE
SUSTAINABLE DEVELOPMENT
ALEX ROUX LEADERS MANAGEMENT
VIETNAM INTERNAL
FOR EACH COUNTRY
AUDITORS

RUSSIA

PORTUGAL DECATHLON
SUSTAINABLE
DEVELOPMENT
LEADER

CHARLES FELGATE
COMMUNICATION

RAHEL DAMAMME
SUSTAINABLE DEVELOPMENT
REPORTS
     STAKEHOLDER RELATIONS
SOUNDOUS HASSOUNI
SUSTAINABLE DEVELOPMENT HUMAN
TRANSFORMATION RESPONSIBILITY
IN PRODUCTION
PROCESS LEADERS

KATY DRAPER
EXTRA-FINANCIAL
           PERFORMANCE JÉRÉMIE PIOLET
ENVIRONMENT
IN PRODUCTION

RAFFAËLE DUBY
ENVIRONMENT EMILIE AUBRY
PRODUCTS AND DESIGN CO2 MANAGEMENT
ENVIRONMENT
STORES AND TRANSPORT

CHALLENGES AND STRATEGIES 13


2016 SUSTAINABLE DEVELOPMENT REPORT

OUR RELATIONS WITH STAKEHOLDERS


At Decathlon, we harness the relations we have with our stakeholders to develop our knowledge, transform our
business and realise our ambitions. Three of these relationships are particularly vital to our success:
Firstly, our teammates. Our management aims to create a caring environment, based on trust, responsibility
and skills development. Dialogue is permanent and ongoing, punctuated by regular opportunities for discussion,
such as monthly reviews and the annual personal review. Our relations are direct and genuine. Moreover, our
teammates are the frontline ambassadors for our business and our products.
Next, our users. They are involved right from the product design stage, and their satisfaction is one of our key
concerns. Our Decathlon products enable us to meet their needs, as diverse as these are.
Lastly, our suppliers. We consider our subcontractors to be partners, support them in terms of their development
and ensure that they comply with our requirements.
In 2016, dialogue and transparency were exemplified by various notable initiatives:

Teammates Users
(Employees, social partners) (Customers, users, consumer
associations, sports clubs)
"We grow through greater "We want people who use
responsibility and freedom.” our products to be delighted
or delighted!”
• Satisfaction survey (Decathlon
Teammates Barometer, Great place • User reviews (online retail sites,
to work, etc.). satisfaction surveys, etc.).
• Participative vision process. • Customer Relations centre.
• Seminars, learning expeditions. • Panel.
• Agreements, employee Selling appealing, • Customer input events.
representative committees. • Innovation Awards.
hi-tech sports products
Key point: at the lowest possible prices, Key point:
co-writing of new vision involved making them accessible products scoring less than 3 out
30,000 teammates (see p.31). of 5 are withdrawn from sale ¹
to as many people as possible.
(see p.64).

Suppliers / Regulators / Civil society


business partners Public authorities (Media, NGOs, professional bodies,
education and research, local
(Suppliers of our Decathlon (European Commission, OECD
communities, CSR experts)
products) NCPs, ecology ministers;
eco bodies, authorities) "We embrace dialogue in
"We want to build long-term
a pragmatic, transparent and
relationships with our partners.” "We are players rather
honest manner.”
than spectators.”
• Workshops.
• Interviews and meetings.
• SD day, co-organisation. • Interviews and meetings.
• Responses to requests.
• Training courses. • Information sharing.
• Project collaborations.
• Partnerships. • Contributing to work on
• Member of commissions,
methodological standardisation
Key point: administrators.
and recommendations.
strategic partners day • Participation in forums.
(see p.85). Key point:
Key point:
new internal organisation dedicated
Decathlon mentioned in a WWF
to standardising Decathlon products
survey (see p.56).
(see p.61).

This diagram is not exhaustive; the process is currently being structured. Initiatives are in place and Decathlon will be working to
continuously improve its practices in this field.

1. In France and in Portugal.

14 CHALLENGES AND STRATEGIES


2016 SUSTAINABLE DEVELOPMENT REPORT

Interview

A constructive dialogue with our stakeholders


In 2016, Decathlon’s teams continued to interact both internally and externally, to strengthen
existing strategies and to drive forward new initiatives. This ability to listen and communicate
with each other helped them to take decisions, as well as to innovate and improve over the long term,
as Rahel Damamme explains. She is responsible for stakeholder relations and monitoring
for Decathlon’s sustainable development hub.

What are the main projects shared with our stakeholders in 2016?
To list but a few examples, we decided to continue our collaboration with Impactt ² eand to roll out their
“Together for a sustainable business” scheme in two other countries (India and China), following a
successful trial phase in Bangladesh. Our efforts with the French working group on responsible textile
supply chains have led us to update our tools used in our human responsibility in production strategy, and to
compare them to the good practices put forward by the GSCP ³. Lastly, 2016 was a key year for our product
eco-performance labelling project, as we made significant progress with other French businesses in terms of
harmonising calculation methods and formats, which resulted in the Ministry for the Environment deciding to
pre-deploy this tool at national level. We were also involved in standardisation projects at European level and
a recently launched pilot project is underway!
Do you regularly consult with external stakeholders when devising your projects?
This year we decided to take part in the ACT 4 initiative so we could ascertain whether our current
greenhouse gas emission strategy was sufficiently effective to reduce global warming to 2°C. We have
also been in discussion with teams from WWF France 5, after they published their ranking table of the top
25 French businesses with the greatest impact on global eco-systems, of which Decathlon was one. We
were able to reassure them about Decathlon's commitment to using responsible cotton, and in return they
explained their expectations in terms of the issues that need tackling further.
What is the role of annual sustainable development reports in terms of Decathlon's relations
with its stakeholders?
Our reports should enable us to lead, clarify and improve Decathlon's extra-financial performance, by
means of our action priorities, indicators and numerical targets. They also constitute a great tool for
passing information on to our stakeholders and communicating with them in a transparent manner about
our progress, our difficulties and our ambitions regarding sustainable development. In an environment
where stakeholders require businesses to be increasingly transparent, Decathlon made the 2016 rankings
for the top 10 businesses with the best CSR reputation in France as calculated by the Reputation
Institute 6. In this ranking, it's quite obvious that CSR is a factor influencing business' differentiation,
performance and good reputation.

RAHEL DAMAMME
Responsible for monitoring and relations with stakeholders
in Decathlon's sustainable development hub.

2. Impactt is a specialist consultancy firm working to improve working conditions and the means to live throughout the world’s supply chains,
with the aim of delivering clear commercial benefits to both ends of the chain. More information: http://impacttlimited.com.
3. Global Social Compliance Program, see www.theconsumergoodsforum.com/gscp-home.
4. “Assessing low-Carbon Transition” (ACT) is a co-initiative launched by the Carbon Disclosure Project and ADEME (French National Environment
and Energy Management Agency), which conducts qualitative and quantitative studies on a business’ GHG emission strategy in order to assess
its compliance with the requirements of a low carbon economy.
5. World Wide Fund for Nature, see www.wwf.fr.
6. See www.reputationinstitute.com/.

CHALLENGES AND STRATEGIES 15


2016 SUSTAINABLE DEVELOPMENT REPORT

COMMITMENTS AND ACTIVITIES


Because of the variety of our activities and our operations, we dialogue with organisations on several levels:
regional, national, European and international. Below are a few examples of our stakeholders and shared
projects.

Partner of the World Forum Lille, with two Decathlon teammates attending as speakers at the World
Forum 2016 conferences.
Winner of the 2016 Responsible Economy award from the Réseau Alliances, in recognition of Decathlon's
global sustainable development strategy and, more specifically, the ongoing roll-out of Decathlon’s eco-
performance product labelling scheme.
Updating of Decathlon’s good practices in the Réseau Alliances BipiZ database.
http://www.worldforum-lille.org/fr

Sits on the FCD Environment Committee that works to promote Sustainable Development.
www.fcd.fr/qui-sommes-nous/actualites-de-la-fcd/detail/decouvrez-la-video-de-presentation-de-la-fcd

On the CSR Commission of the FPS since 2014 (including working on the code of conduct and on an
event linking CSR and sport).
www.entreprisesdusport.com/fr/infos-conso/developpement-durable
www.unionsportcycle.com

Since 2015, has monitored work by the CSR Commission of the WFSGI (sharing intelligence information,
CSR practice benchmarking, participation in webinars, etc.).
www.wfsgi.org

Member of the Environment Committee, so as to monitor and anticipate any future strategic and
legislative developments for the European Union in terms of the environment.
www.eurocommerce.eu

Part of the eco-labelling pre-deployment project with ADEME and the French Ministry for the Environment.
MINISTÈRE
DE L'ENVIRONNEMENT,
Leads the project committee (COPROJ) for textile eco-labelling.
www.ademe.fr/expertises/consommer-autrement/passer-a-laction/reconnaitre-produit-plus-respec-
DE L'ÉNERGIE
ET DE LA MER

tueux-lenvironnement/dossier/laffichage-environnemental/laffichage-environnemental-aujourdhui-de-
main-bilan-experimentations-perspectives

Involvement dating back several years in the AFNOR-ADEME, working on product eco-labelling, aiming
to define common evaluation methods for use within France.
http://affichage-environnemental.afnor.org

Sits on the board of directors and the scientific committee of Eco-TLC.


www.ecotlc.fr/page-53-gouvernance.html

A member of the ORSE for several years. This organisation provides continuous monitoring of CSR in
businesses across France, Europe and the world.
www.orse.org

16 CHALLENGES AND STRATEGIES


2016 SUSTAINABLE DEVELOPMENT REPORT

OEF (Organisation Environmental Footprint) : participation in a European experiment to define a


common multi-criteria method for calculating organisations’ environmental footprint. Member of the
technical secretariat with different stakeholders, including ADEME (French environment and energy
management agency), Perifem7, ENEA 8, Umweltbundesamt 9, the NGO Global 2000 10 and businesses 11.
http://ec.europa.eu/environment/eussd/smgp
PEF (Product Environmental Footprint) : participation in a European experiment to define a common
multi-criteria method for calculating organisations’ environmental footprint (T shirts). Member of the
technical secretariat with different stakeholders, including ADEME (French environment and energy
management agency), the French Ministry for the Environment, the OFEV 12, brands 13 and producers 14.
http://ec.europa.eu/environment/eussd/smgp

Participates in the Assessing low-Carbon Transition (ACT) project experiment with the French
environment and energy management agency and the British Carbon Disclosure Project (CDP) NGO.
Launched in 2015 at the COP21 conference, this project aims to fast-track the rate at which companies
sign up to deliver a low carbon economy. The results from the test phase of this initiative, which involved
around twenty international businesses, were presented at the COP22 in Marrakech.
www.cdp.net/en/campaigns/act-assessing-low-carbon-transition-initiative

Decathlon joined the BCI (Better Cotton Initiative) in January 2012. This non-profit-making association
seeks to promote the development of better cotton throughout the world, to create a sustainable
commodity that's better for those producing it, better for the environment it's grown in, and better for the
future of the sector as a whole.
http://bettercotton.org

Technical support for Decathlon’s “human responsibility in production” and "supplier environmental
management" assessments (conducting of audits, wastewater samples and analyses).
www.sgs.com

Decided to join the “Together for a sustainable business” scheme at the end of 2014, implemented by
the consultancy firm Impactt Limited.
https://impacttlimited.squarespace.com/blog/

In November 2016 the Equivalent Process put forward by the GSCP (Global Social Compliance Program)
was launched. The aim of this initiative is to identify areas for improvement for our human responsibility
in production system and methods, by comparing them to good practices described in the GSCP’s
reference tools.
www.theconsumergoodsforum.com/gscp-home

French working group organised by the DAEI (European and International Affairs department), bringing
together members from the national contact point of the OECD (PCN France), from the national CSR
platform, from the Ministry of Ecology, from NGOs and from French businesses in the textile sector.
Ministère du Travail, de l'Emploi, http://social-sante.gouv.fr/ministere/organisation/directions/article/daei-delegation-aux-affaires-
europeennes-et-internationales
de la Formation professionnelle
et du Dialogue social

Member of a consultative committee (with representatives from national contact points, businesses, the
European Commission, multi-stakeholder initiatives, NGOs and unions) to write a guide on due diligence
in the textile and footwear industries.
https://mneguidelines.oecd.org/responsible-supply-chains-textile-garment-sector.htm

Sharing scientific knowledge about chemicals used in production processes and about emerging risks,
in order to define Decathlon's future areas of work
https://www.anses.fr/fr
7. See assoperifem.wixsite.com/perifem.
8. See www.enea.it/it.
9. See www.umweltbundesamt.at/en.
10. See www.global2000.at.
11. Carrefour, Colruyt, Kering, Picard, Office Dépôt.
12. Swiss federal office of the environment.
13. Promod, Pimkie, Okaïdi, etc.
14. Les Tissages de Charlieu, TAD.
CHALLENGES AND STRATEGIES 17
2016 SUSTAINABLE DEVELOPMENT REPORT

OUR SD AMBITIONS
2015 - 2019

Our sense of vitality and responsibility are key drivers in our efforts to promote sustainable development.
Aside from constantly monitoring developments, we anticipate challenges and issues in society
in order to innovate and better direct our actions.
Our priority is to create sustainable value(s) for our employees, customers, users, partners,
fellow citizens and shareholders.
DECATHLON’S TEAMS STRIVE DAY IN, DAY OUT

TO ENCOURAGE RESPONSIBILITY AS A WAY OF MAKING WORK MORE


ENJOYABLE FOR OUR TEAMMATES
achieved achieved
Our actions Our ambitions for 2019
2015 2016
We recruit people passionate about sport, and who are 100% of teammates say that they are happy to come 90% 91%
vital, practical and outgoing. to work (65% of whom strongly agree with this).

We encourage the playing of sport. 100% of employees play their sport regularly, 75% 77%
at their own pace and level.

We help teammates with their self-development plans. 100% of teammates take responsibility for 88% 90%
their development and learning.

Right from the beginning, we create the necessary 100% of teammates are flourishing through 85% 88%
conditions for teammates to take on responsibility and responsibility.
make decisions involving those most affected by these
(principle of subsidiarity).

We are uncompromising when it comes to the in-house 100% of employees feel safe in their workplace. 93% 93%
safety of our employees.

We share the value created and enable as many people 100% of teammates are shareholders in the company, 50.40% 50.74%
as possible to co-own the business through our employee if they so wish.
shareholder scheme.

TO MAKE HUMAN PROGRESS IN THE SUPPLY CHAIN


achieved achieved
Our actions Our ambitions for 2019
2015 2016
We regularly assess our suppliers to check that working 80% o f suppliers 1 are assessed as being A, B or C 68% 68%
conditions comply with our social charter. according to our audit criteria.

We develop tools and methods in line with the latest Helping to harmonise social assessment methods see see
global issues and challenges. (OECD working group, textile supply chain working group,
responsible for the Delegation for Europea
RDD15 RDD16
and International Affairs). p.18 p.17

TO BE A LEADER IN PRODUCT SAFETY AND IN SUSTAINABLE DEVELOPMENT FOR USERS


achieved achieved
Our actions Our ambitions for 2019
2015 2016
We seek the opinions of users and customers regarding 95%  of users are satisfied when using their Decathlon 85% 87%
their experiences with our products, and ascertain products 2.
their user satisfaction, in the interests of continuous
improvement.

We develop safe, sustainable and quality products Continue to try to improve the returns rate 1158 1267
through a global strategy to manage the quality of per product.
our product design, production and distribution. PPM PPM

We build in chemical risk prevention right from the 100% of suppliers have signed up to respect our RSL 86% 73.80%
product design stage through to end usage. (restricted substances list).

1. Rank 1 suppliers.
2. Percentage of users awarding our products a score of 4 to 5.

18 CHALLENGES AND STRATEGIES


2016 SUSTAINABLE DEVELOPMENT REPORT

TO RESPECT THE ENVIRONMENT AND CONTINUE ONGOING EFFORTS


TO REDUCE OUR ENVIRONMENTAL IMPACT
achieved achieved
Our actions Our ambitions for 2019
2015 2016
On the basis of our environmental impact assessment, Stabilisation of CO2 equivalent emissions 6,188,000 baseline year:
we define our action plans for each specific activity. with regard to baseline year 2016 until 2021. tonnes 7,057,000 tonnes
CO2 eq. CO2 eq.
We measure the environmental impact of our products 100% o f engineers 3 are capable 33.85% 50.16%
to identify eco-design levers, while maintaining the best of conducting environmental
possible quality/value/price ratio for our users. assessments on their own products.

We are reducing the environmental impact of our 100% s ustainable cotton (organic farming, 10.60% 14.44%
products by using raw materials from responsible Better Cotton Initiative, and recycled
sources, while retaining the best possible quality/value/ cotton) for our Decathlon products
price ratio for our users. by 2020.
We are building new certified sites in line with the most 100% o f our new company-owned sites 51 certified 64 certified
rigorous environmental standards, and improving the are certified. sites 4 sites 5
energy efficiency of our sites.

Reduction of CO2 éequivalent emissions Stores Stores


linked to energy consumption at our sites (kWh/ 142.15 kWh/m2 139.5 kWh/m2
m2/year) compared with the baseline year of
Warehouses Warehouses
2016 6.
62.51 kWh/m2 68.16 kWh/m2
We optimise the management of waste generated Continuously increasing our waste Stores Stores
on our sites. recycling rates in both our stores and our 41% 40%
warehouses.

Warehouses Warehouses
89% 85%
We optimise logistics activities by reducing the distances 15% r eduction in CO2 equivalent emissions 409g C02 / 376g C02 /
our items travel, by virtue of our global warehouse for items shipped within Europe between article article
network, by maximising lorry loads and by prioritising 2015 and 2020. delivered delivered, i.e.
multi-modal transport (train, waterways, etc.).
8% reduction

We improve the environmental performance of 80% o f suppliers posing a risk of water, air or NA NA
our suppliers’ manufacturing sites by helping them soil pollution, are assessed as being A, B
to continuously reduce their environmental impact, or C according to our audit criteria 7.
in line with their specific risks.

TO COMMUNICATE RESPONSIBLY, PRAGMATICALLY AND HONESTLY


ABOUT OUR SUSTAINABLE DEVELOPMENT ACTIONS
achieved achieved
Our actions Our ambitions for 2019
2015 2016
We display our products’ environmental performance 100% o f textile, footwear and heavy stitching Spring/ Spring/
on all labels, in complete transparency, to further products have an environmental rating Summer Summer
responsible business and consumption. and score. season: season:
0.38% 7.9%

Autumn/ Autumn/
Winter Winter
season: season:
5.98% 8.7%
We make Decathlon’s key CSR information available An in-depth comprehensive website NA http://develop-
for use. enabling us to communicate pement-durable.
with our stakeholders. decathlon.com/

We publish an annual CSR report on our key strategies Verification of information Mock audit see RDD16
and actions, made available online to facilitate access to using batch
information, and we make every effort to ensure that our
reliability from 2017 onwards; obtaining p.129
an opinion from an independent third party of indicators
data is reliable. as to the fairness of our data.

Our ambitions are reviewed on an annual basis, in line with changing contexts and action plans,
and in conjunction with all those teams involved..

3. Excluding engineers on metal, plastic and composite manufacturing processes.


4. Situation as of 31/12/2015.
5. Situation as of 31/12/2016.
6. Objective currently under review.
7. This strategy is currently being rolled out. The indicator will be measured from 2017 onwards.
CHALLENGES AND STRATEGIES 19
2016 SUSTAINABLE DEVELOPMENT REPORT

OUR CLIMATE COMMITMENT


Global warming poses a significant threat to
our way of life and to the future of our planet 1.
Extreme meteorological phenomena are occurring
in various locations across the world, concerning
all inhabitants, indiscriminately 2. Faced with this
burgeoning issue, states, citizens and businesses
have responded by agreeing at the COP21 3 to
reduce temperature increases to 2°C by the end of
the 21st century.
Conscious of our share of responsibility, we have
conducted a GHG assessment of our direct and
indirect emissions since 2013 and consider our
impact on the climate as a key issue in terms of our
sustainability.
In 2016, we embedded environmental preservation
into our 10 year Vision 4 and observed at the same
time that our GHG emissions were continuing to rise.
We therefore reviewed our strategic objective and
the related timeframe 5, and decided that our GHG
emissions in 2021 should be equivalent to those in
2016, i.e. 7,057,000 tonnes of CO2 equivalent. We
are redoubling our efforts to build a solid network
of internal environmental leaders and encouraging
teams to co-design their product ranges, our
products accounting for 62% of our emissions
in 2016.

Our climate commitment in figures*

7,057,000 + 14 % 6.7 + 2 %


tonnes tonnes kg. kg.
CO2 equivalent CO2 equivalent CO2 equivalent CO2 equivalent

emitted absolute value emitted by quantity by products sold


in 2016. in 2016, of products sold in 2016,
compared with 2015. in 2016. compared with 2015.

* Key figures as of 31 December 2016

1. As emphasised in the annual edition of the Global Risk Report, published for the Davos World Economic Forum. For more information,
see http://reports.weforum.org/global-risks-2017.
2. Swiss Ré (re-insurer) indicates a cost of €162m, i.e. a 42% increase compared with 2015.
3. The Paris conference on climate 2015 was held from 30 November to 12 December in Le Bourget.
4. See p.31.
5. In 2015, we set ourselves the target of maintaining our 2019 GHG emission volume at the same level as that of 2014
(i.e. 5,200,000 tonnes of CO2 eq.).

20 CHALLENGES AND STRATEGIES


2016 SUSTAINABLE DEVELOPMENT REPORT

A SUMMARY OF 2016
• Our annual GHG emissions are 14% higher
compared with 2015 and we are continuing our
efforts to reduce them.
• We are reviewing our aim to stabilise our GHG
emissions and assess their compatibility with
the requirements of a low carbon economy.
• We give teams the necessary tools and training
to help them structure their actions and define
their objectives at local level, in keeping with the
group’s ambitions.

DISTRIBUTION Products: 71%

OF OUR GHG EMISSIONS Customer travel: 18%


S
 ite construction and operation: 5%
BY ACTIVITY Product transportation: 4%
Teammate travel: 2%
In %

DISTRIBUTION Scope 1
16,002
OF OUR GHG EMISSIONS Scope 2
Scope 3
BY SCOPE 165,717

in tonnes C02 equivalent 6,875,000

Focus

Why
a new trajectory?
The end of 2015 saw us define, for the very first time, an aim to stabilise our GHG emissions, and a desire
to de-correlate their increase from that of our economic growth.
We therefore committed to maintaining our 2019 GHG emissions at the same level as in 2014.
This ambitious objective has however proved unworkable for the scheduled timeframes, so we redefined a new
trajectory by taking 2016 as our baseline year and 2021 as our new target year.
As part of this new objective, we’re taking part in the ACT initiative 6 so as to ensure that this new aim
is consistent with maintaining global warming below a 2°C rise,
in order to move towards a low carbon economy.

6. See p.23.

CHALLENGES AND STRATEGIES 21


2016 SUSTAINABLE DEVELOPMENT REPORT

THE RESULTS OF OUR 2016 ASSESSMENT


To conduct Decathlon’s annual GHG assessment, we consider all emissions since 2013 that can be
attributed to its activities, from the extraction of raw materials to the sale of our products in store, as well as
the end-of-life stage. This comprehensive inventory enables us to identify our main sources of emissions,
which happen to be our products themselves7.
As in 2015, the emissions growth curve runs parallel to that of Decathlon’s economic growth. This increase is
mainly due to the growing number of products sold, as well as our stagnating product eco-design initiatives.
But in other areas, the work started by our teams has enabled them to optimise our performance in their
specific fields:
• optimising our stores’ energy consumption saw
a reduction of 1.86% kWh/m2 between 2015 and Simulation of our GHG
2016. emissions trajectory
• in Europe, improving the load factor of our lorries
between warehouses has brought about a 3%
T CO2 millions yearly
reduction in grammes of CO2 emitted as a result
of transporting items. 8 PIC New te
ndency
Although they help to minimise the overall n cy
d e 7.8 7.7
deterioration in our GHG balance, we are aware 7
ten 7.4
that considerable efforts are still required in order e nt 7.1 7 7.1
r
6 Cur
to stabilise our impact. 6.2
In 2016, Decathlon’s CO2 equivalent emissions 5
followed an upward trend. We now know that we 5.2
won’t begin to reduce our GHG emissions until 4
2018. This will therefore constitute our first steps
towards stabilising our emissions. 3
2014 2015 2016 2017 2018 2019 2020 2021

MOVING TOWARDS DEFINING REDUCTION


OBJECTIVES BY ACTIVITY SCOPE
In 2016, we had 11 country environmental leaders8. These local players are extremely important when it
comes to coordinating Decathlon's global strategy, adapting their actions to ensure they are relevant to the
local context and issues.
In the same year, we rolled out a dedicated IT tool to enable all environmental leaders in every country to
collect data from Decathlon site9. As well as data gathering, this new software was used to carry out more
effective monitoring and as well as more detailed analysis of how our local and global stores and warehouses
are performing. This roll-out was accompanied by training sessions focusing on how to implement reduction
initiatives, as well as how to use the tool to measure effectiveness, in order to empower those involved and
enable them to function autonomously.
Our design teams can also access an internal tool, available for calculating the environmental impact of our
products10.
These developments in structuring and professionalising our network should enable us to set reduction
targets that are appropriate to the local context and that tie in with our ambitions.

7. To calculate the impact of products, we take into account the entire life cycle of Decathlon products, from the extraction of raw materials until their
end of life (our products account for 62% of our GHG emissions) as well as AMI products that we distribute (these products account for 9% of our
GHG emissions).
8. Belgium, China, Czech Republic, France, Hungary, India, Italy, Romania, Spain, Turkey, UK; some are on missions, others have this role 100% of
the time.
9. See our actions page 76.
10. See page 53.

22 CHALLENGES AND STRATEGIES


2016 SUSTAINABLE DEVELOPMENT REPORT

TESTING, REPEATING, INNOVATING:


OUR ROLE IN PROMOTING
THE EMERGENCE OF A “GREEN”
MARKET IN EUROPE
As part of the “Single Market for Green Products” projects,
Europe launched two trials in 2013 11, designed to calculate
the environmental footprints of both products (PEF) and
organisations (OEF). Decathlon participated in both of
these, sending two of its teammates from the respective
technical secretariats12.
This makes Decathlon one of the pioneering businesses
trialling multi-criteria environmental compatibility
methods13 with the eventual aim of generating synergies
between site accounting (stores, warehouses and offices,
etc.) and product accounting.
Our own specific aim is to identify the exact sources of the environmental impacts of our activities across
the entire chain, so that we can focus our strategies and actions effectively to reduce them.
Decathlon’s next step in terms of OEF14 is to select the most relevant indicators that will enable us to
conduct environmental accounting commensurate with our key challenges and issues. These indicators
will be determined according to the importance of each issue, as well as - more pragmatically – in line
with the maturity and exhaustiveness of the available databases15 . We will publish detailed results of our
assessment on our website (http://sustainability.decathlon.com/) over the course of the year.

Focus

Decathlon’s role
in the ACT initiative
“Assessing Carbon Transition” (ACT) is a collaborative initiative launched by the Carbon Disclosure Project
and the French environment and energy management agency (ADEME).
It aims to examine - both qualitatively and quantitatively - businesses' GHG reduction strategies,
to assess how consistent they are with the needs of a low carbon economy.
In 2016, we demonstrated our determination to take part in this initiative as representatives from the distribution
and retail sector, seizing this opportunity to gain some perspective on our targets and actions,
using the analyses carried out by various experts. They concluded their work by commending the relevance
of the model used by Decathlon to measure its GHG emissions, which records both direct and indirect emissions;
as well as the innovativeness of its product eco-labelling initiative16.
In addition, taking part in this initiative has enabled us to identify several areas for improvement. Although our objective
is driven by the urgency of climate change, we are also encouraged to do more work with our suppliers
in order to reduce emissions generated in the production stage17.
We have also been advised to define a long-term reduction target.

11. For more information, see http://ec.europa.eu/environment/eussd/smgp/ef_pilots.htm.


12. Émilie Aubry from the OEF secretariat and Raffaële Duby from the PEF Tee-shirt secretariat. .
13. Calculations for several impact categories were not unanimously agreed on by experts; we are highly dependent on scientific advances in these
subjects to produce the most relevant and useful calculations possible.
14. See our work with PEF page 54.
15. Furthermore, these experiments act as reminder of the essential need to have a shared database in Europe, so as to ensure that the exercises
carried out by businesses are both consistent and reliable.
16. See page 52.
17. See page 99.

CHALLENGES AND STRATEGIES 23


PEOPLE AND MANAGEMENT
2016 SUSTAINABLE DEVELOPMENT REPORT

PUTTING PEOPLE AT THE HEART


OF OUR GROWTH
Promoting and maintaining employment levels is one of
the key economic growth levers for a country. By offering
permanent, skilled jobs, businesses can play an active part
in creating and distributing wealth over a particular area,
enabling people to become fully integrated members of
society and achieve personal and professional fulfilment.
Against a backdrop of nascent global economic recovery,
Decathlon remains a business in relatively good health.
Our strength is prioritising the personal and professional
fulfilment of our teammates and making them our focus.
By giving each person responsibilities, we are strengthening
both their commitment and their enjoyment at work. In 2016,
88 % 1 of them said they had flourished through responsibility,
and our ambition is to increase this figure to 100% in 2019.
To ensure that Decathlon grows and develops, we are prioritising internal mobility and offering teams ad
hoc tools and processes. In countries where we already operate, our reputation makes recruitment easier,
while in countries where we are not yet fully established, we are adopting different, more innovative ways of
attracting the best candidates.
The diversity of the various business activities and countries that Decathlon operates in means numerous
opportunities for career development and geographic mobility.

People at Decathlon in figures*

13,114 91% 2 591 300 69%


teammates of teammates teammates teammates of teammates

recruited on are happy in France in France worldwide


permanent contracts to come have are trained are under 29
worldwide in 2016. to work. a disability. in female and 0.52%
leadership. are over 55.

* Key figures as of 31 December 2016

A SUMMARY OF 2016
• We are trialling collaborative recruitment processes,
whereby an entire team is consulted when hiring a potential
team member.
• We have made our “Talent” platform available to teammates,
so that they can enhance their skills and publicise these
within the business.
• We reaffirmed our view that sport is vital for a balanced
way of life, and encourage people to play sport during the
week.

1. Result from the “Decathlon Team Barometer” survey, carried out among Decathlon teammates worldwide during the month of September 2016,
with 51,780 teammates responding. Percentage of people who responded “yes, definitely” or “yes, more or less”.
2. Id.
PEOPLE AND MANAGEMENT 25
2016 SUSTAINABLE DEVELOPMENT REPORT

TEAMMATES 100
91%
SAY THAT THEY ENJOY 90
90%

COMING TO WORK 3 80
86%

In %
70

60

50
2014 2015 2016

Focus

Developing our employees


and supporting talent
So that they can interconnect, and share their skills and their professional ambitions, teammates can log on to "Talent",
the company's employee platform. 12,000 teammates connected via this network in 2016. And now, with "Joboffers",
an intranet portal site featuring vacancies available within the company, they can view internal mission opportunities
and take control of their career development. In December 2016, there were 489 active job offers on the site. Since
launching in 2013, over 4,000 jobs have been published, and we’ve recorded more than 500,000 visits.

TOUS ACTEURS
DU RECRUTEMENT
At Decathlon, recruiters and candidates
decide to work together, because of a shared
passion for sport, retail and the common
values of vitality and responsibility. In 2016,
13,114 teammates were hired worldwide,
on permanent contracts.
Established in France for over 40 years,
Decathlon numbered 301 stores in 2016
and was once again recognised as a
business where people like to work, coming
4th in the rankings published by the Great
Place to Work4 institute.

Hello recruitment campaign in Hungary.


The people in this video campaign are passionate teammates
keen to promote their sport to help recruit their future colleagues.

3. Id.
4. This institute analyses the components used to assess employee well-being at work. Results of the survey:
www.greatplacetowork.fr/meilleures-entreprises/best-workplaces-france.

26 PEOPLE AND MANAGEMENT


2016 SUSTAINABLE DEVELOPMENT REPORT

Interview

With collaborative recruitment, the whole team's involved!


Collaborative recruitment is all about matching the teammates suitable for the vacancy so that together
they can determine their criteria, publish the job advert and select the best candidates.
Interview with Joanna Moelo, selected by her team to be a Fouganza leader.

What is the point of the collaborative recruitment process?


This method encourages candidates to get to know each other and promotes involvement by optimising
the appointment of the new leader through collective participation.
So, does working together tend to lengthen the whole process?
The team took less than 6 months to choose its new leader by anonymous vote, after meeting three of the
11 applicants.
How did you find this experience?
I was already Fouganza product manager and I hesitated a lot before applying, wondering whether I was
"the right person”. Did I have enough experience? In the end, I felt happy about the process and went for it!
Even though my appointment wasn't unanimous, it's quite something to be chosen by your own team!

JOANNA MOELO
Fouganza leader

ORGANISATION
OF WORKING TIME
IN FRANCE
In 2016, the French government voted a law on the
right to disconnect5 so as to protect employees'
work/life balance.
The agreement that Decathlon signed in 2013
governing management working days was duly
completed in 2016 to converge with this new
regulation, and provisions were drawn up and
scheduled for implementation in 2017: raising
awareness among managers and teammates
about sensible usage of tools like email
management, and incorporating discussions about
the right to disconnect into reviews6 regarding
workload.
Also in 2016 Decathlon signed a compliance agreement governing Sunday working hours, adding
supplementary compensation for employees unable to arrange childcare.
Decathlon restated its view that sport is vital if teammates are to have a balanced lifestyle; teammates have
been encouraged to organise practice sessions during the week.

5. This right issued by the labour law, which came into force on 1 January 2017, aims to reconcile personal and professional life and so that
employees have the option not to log on to digital tools or respond to emails outside working hours (paid leave, working time reduction, evenings
and weekends). This right concerns all employees, chiefly those who have opted to work from home or who are managers.
6. At Decathlon, the annual review is an important moment for listening and discussing between the manager and the teammate. It’s an opportunity
to review both career and personal plans, performance and pay. This review involves all teammates, regardless of their contract type.

PEOPLE AND MANAGEMENT 27


2016 SUSTAINABLE DEVELOPMENT REPORT

PART-TIME CONTRACTS
IN FRENCH STORES
In 2016, Decathlon numbered 7,478 on permanent part-time contracts in its stores.
This type of contract suits both parties: it suits the company during busy periods, whether daily or seasonal,
and it also suits the needs of teammates keen to organise their professional and personal activities in this
particular way.
Because Decathlon is keen to only offer these working hours to those whom it suits, the company conducts
an annual satisfaction survey7. In 2016, it revealed the 23% of teammates on a part-time contract were
unhappy with their new working hours. 350 teammates were then sent a more comprehensive survey
designed to elicit some solutions. In 2017, corporate lawyers and HR managers will coordinate a range of
initiatives to enable all those wanting to work part time to do so by 2020.

IN FRANCE:
“FREEDOM, EQUALITY AND DIVERSITY!”
200 teammates at Decathlon promote diversity issues across France on a daily basis.
Disability mission
In 2016, unions signed our 6th disability agreement and our company numbered 591 teammates who were
registered disabled.

Disability mission

7. Monthly EI2D survey which measures teammates’ level of satisfaction with their hourly rate, who have switched from part time to full time hours.
The results are published every half year.

28 PEOPLE AND MANAGEMENT


2016 SUSTAINABLE DEVELOPMENT REPORT

Female leadership!
In 2016, 300 women took part in a female
leadership training course. The Essenc’IL’ELLE
community was launched on our internal
social network as a way of encouraging these
discussions, and suggesting brainstorming
workshops, conferences, articles and good
practices. A “Day for Women” is also organised8
every year, aimed at discussing the place of
women in the company and drawing up an
action plan.

Beyond generations
Seniors at Decathlon are teammates over
the age of 55. They represent the business'
history, and are synonymous with long service
and expertise. That’s why we’re offering
them training sessions to help them become
mentors themselves, and pass on their skills
to other, less experienced teammates. A third
agreement to this effect was signed with
social partners in 2016.

8. Day negotiated as part of agreements with social partners on this theme.

PEOPLE AND MANAGEMENT 29


2016 SUSTAINABLE DEVELOPMENT REPORT

READY FOR RESPONSIBILITY AND FREEDOM!


In our increasingly connected world, employees are keen to
understand and be involved in decision-making processes,
and businesses are aware of how important it is to have
transparency of information.
In keeping with this trend, Decathlon is changing. While
respecting the past, we’re continuing to develop and
innovate so as to improve what we do already, injecting
greater responsibility and freedom into our organisation.
This reiterates a basic principle: so that teammates are
committed to the company’s mission but still derive
fulfilment from their work, they must be free to take
decisions, together if necessary, and to assume
responsibility. In 2016, 91 %1 of teammates said they had
confidence in themselves; our target is to reach 100% of
teammates by 2019.
In this same year, Decathlon wrote its vision with its
teammates who decide on our strategic focus areas, in
order to guide the company's future over the next ten years.

Responsibility and freedom in figures*

91% 2 30,000 1 year 50% 3


of teammates teammates of teammates

said they had confidence took part length felt they had access
in themselves and were in the “Vision” of "Vision" to relevant information in
ready for responsibility. process. process. terms of decision-making,
in France.

* Key figures as of 31 December 2016

A SUMMARY OF 2016
• Drawing on our company’s “raison d’être”, we invited
teammates keen to get involved to help co-create
Decathlon’s vision.
• We launched an information transparency project to give
teammates access to accurate and relevant information
available in real time, to help them to make the best
possible decisions.
• We’ve shifted from an activities-based organisation to an
organisation structured around geographical areas, to June 2016: our teammates get together
enable local decision-making for local people. to co-create Decathlon’s Vision 2026

1. Result from the “Decathlon Team Barometer” survey, carried out among Decathlon teammates worldwide during the month of September 2016,
with 51,780 teammates responding. Percentage of people who responded “yes, definitely” or “yes, more or less”.
2. Id.
3. Results of an internal survey conducted in October 2016 with a sample of 2,400 teammates in France.

30 PEOPLE AND MANAGEMENT


2016 SUSTAINABLE DEVELOPMENT REPORT

Focus

Informed decision-making
by those most affected by their
Since 2015, Decathlon has been incorporating a “principle of subsidiarity", which means that each teammate should have
the greatest possible degree of freedom allowing them to make good decisions that match needs as closely as possible.
By giving everyone this kind of autonomy, the company is apportioning the responsibility of asking for advice to
the teammates concerned and the experts in the field, so they can clarify the issues and their consequences.

WITH VISION 2026, TEAMMATES HAVE DEVISED


SHARED 10 YEAR TARGETS FOR DECATHLON
The Vision is a key stage in the life of our business. Every two years, in conjunction with our teams across
the world, we get the opportunity to rebuild our mission and our company’s objectives. So it's not the first
time Decathlon has conducted this exercise. But 2016 saw the whole process entirely revamped. Jiao Li,
leader of the Vision 2026 project, explains:

"We had a deep desire when co-creating the Vision


for all our teammates to put into practice a day-to-day
philosophy of responsibility and freedom.
We built an agile and collaborative process, accessible by each
and every teammate worldwide, regardless of their hierarchy,
department or experience, enabling universal participation.
Over 30,000 teammates from 29 countries have helped to co-build our Vision 2026,
and we have also welcomed on board users, suppliers, partners,
sports clubs and associations.
The only criterion for taking part was motivation! Collectively,
we achieved great success by finalising an inspiring and ground-breaking Vision:
1. “Do what I love!”;
2. “Co-creating unique products”;
3. “@store is a fantastic experience”;
4. “Being wherever we are needed”;
5. “Protecting our planet and its people to protect our purpose”.
What I am proud of now is that together, through this process of co-creation and this
wonderful Vision, we made the impossible possible, instilling it into everyday life.”

JIAO LI
Vision Leader, Decathlon.

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2016 SUSTAINABLE DEVELOPMENT REPORT

THE CONCEPT OF RESPONSIBILITY AND FREEDOM IN PRACTICE:


DECATHLON TOURNAI, BELGIUM
A Decathlon store traditionally has a director, department managers and sales assistants; in other words,
a three-tiered hierarchy. When Decathlon Tournai in Belgium opened its doors in October 2016, its teams
immediately set up an extremely innovative and collaborative management system.

Interview

A store without a director


At Decathlon Tournai, the management structure is different to that of other stores. Here, we have two
co-leaders and 16 “sports entrepreneurs”. Carole Janssens, one of the store's co-leaders, explains.

How are these roles organised in your store?


We have one essential rule: store decisions are taken together, in conjunction with and with complete
respect for the organisation as a whole. Each person is responsible for these activities from A to Z.
Co-leaders have additional management responsibilities for HR and operations linked to the building.
How have teams responded to this new collaborative method?
Those team members already working at Decathlon soon incorporated the new model and achieved
excellent results, and we’ve seen some great leadership material emerge as a result. But for the newest
of our teams, it wasn’t always straightforward, in the sense that they would often wait for someone to tell
them what to do.
What is your vision for the future?
To incorporate users into our decision-making process. They might be involved in decisions about, for
example, our assessment criteria, our opening hours or our communication. Our vision also wants our
users to be part of the team.

CAROLE JANSSENS
Store coleader

INFORMATION TRANSPARENCY
AS A BASIS FOR GOOD DECISION-MAKING
To make good decisions, our team members must have access to correct information and be an active
part of an information-sharing culture. This was the impetus behind the information transparency project
launched in 2015. In 2016, four international workshops were held4, giving teams the opportunity to select
subject areas they wished to know more about. The subject areas selected by the groups were:
• sustainable development;
• economic and financial performance;
• communication tools.
Although countries in Decathlon’s network are becoming more autonomous, information they require often
comes from other countries. We must therefore ensure that this information is properly circulated between
these countries. To do this, we have created an international network of around twenty ambassadors in 20
countries, whose aim is to share good practices and the best strategic projects serving the interests of all.

4. In Belgium, in Hungary, in France and in Cambodia.

32 PEOPLE AND MANAGEMENT


2016 SUSTAINABLE DEVELOPMENT REPORT

DEVELOPING SKILLS
AND UNCOVERING TALENT
Businesses, employees and public authorities have a shared responsibility when it comes to adapting to
constant technological, economic and organisational changes in the workplace. By investing in training for
its teammates, a business makes its personnel more employable, increases their autonomy margin and
boosts their ability to grow, all while reinforcing their own competitiveness.
At Decathlon, “enriching people through responsibility” is at the heart of our human strategies: by 2019,
we want 100% of our teammates to have responsibility for their own career development, an increase on
the 90 %1 in 2016. To help them in this direction, we have come up with an individual training plan relating
to their particular area of activity, and our Decathlon Exchange training centres are set up to deliver
management and personal development training courses. They also have an e-learning platform that can
be used to further their knowledge and understanding.
By driving forward this move to develop skills and promote personal fulfilment, Decathlon has strengthened
its teammates’ individual and collective effectiveness.

Training at Decathlon in figures*

1,517,562 88 % 2 5
hours of training Decathlon Exchange
of teammates
training centres

received say that they have flourished worldwide,


by teammates through responsibility. one of which opened
worldwide. That's an increase of 3% in Vietnam in 2016.
compared with 2015.

* Key figures as of 31 December 2016

1. Result from the “Decathlon Team Barometer” survey, conducted among Decathlon teammates worldwide during the month of September 2016,
with 51,780 teammates responding. Percentage of people who responded “yes, definitely” or “yes, more or less”.
2. Id.
PEOPLE AND MANAGEMENT 33
2016 SUSTAINABLE DEVELOPMENT REPORT

A SUMMARY OF 2016
• We devised a skills map to improve our efficiency and responsiveness.
• We opened a fifth Decathlon Exchange training centre in Vietnam.
• We raised awareness of sustainable development issues among our
teammates by holding two events organised for this very purpose.

The Preserve to Protect Day was held in 2016 as a way of raising


awareness among teammates of various environmental issues.

TEAMMATES SAY THAT THEY TAKE Yes, definitely: 50%


RESPONSIBILITY FOR THEIR OWN Yes, more or less: 40%
DEVELOPMENT AND LEARNING 3 No, not really: 8%
No, not at all: 2%
In %

Focus

Mylo:
the international learning platform
To enrich its teammates' training pathway, Decathlon has made an online training platform available,
called Mylo (My learning online). By digitising some of the content from around 10,000 training courses,
Decathlon is helping to make its teammates more independent and autonomous when it comes to learning,
assessing their own knowledge and developing their skills.
34,273 teammates took at least one e-learning course in 2016.

SHIFTING FROM A ROLE-BASED SYSTEM


TO ONE BASED ON SKILLS THROUGH RESPONSIBILITY
Teammates in every department have a personal training plan that aims to ensure that they are operational
as quickly as possible. Various formats are available, suitable for a range of contexts and needs, such as
group courses, coaching, e-learning and seminars, etc.
In 2016, 1,338,257 face-to-face and 179,305 e-learning training hours were delivered to teammates
worldwide. In France, 3.86% of the payroll was invested in training teams.

Furthermore, the idea of departments is changing within our societies, and new terms are emerging as a
way of acknowledging those with multiple activities (multitaskers, slashers, etc.). Decathlon is therefore
moving towards a skills-based concept, to enable more diversified leadership. In 2015, a skills map for
the field of production (purchasing, quality, industrialisation, etc.) was produced. Our long-term objectives
involve creating synergies between the skills within each of the business' departments and ensuring that
internal flows run more smoothly. This approach hinges on better identifying the skills of each teammate,
something that our "Talent" platform 4 has helped to bring about.

3. Id.
4. See page 26.

34 PEOPLE AND MANAGEMENT


2016 SUSTAINABLE DEVELOPMENT REPORT

READY FOR RESPONSIBILITY!


Ever since 2005 at Decathlon Exchange, “each person has been developing their self-confidence in order
to be ready to lead.” Such is the purpose of our five in-house training centres dedicated to management,
the latest of which opened its doors in Vietnam in 2016. Around fifty people are constantly innovating to
co-create the managerial practices of the future. Their role also involves promoting Decathlon's purpose
and values, so as to spread the company culture far and wide, within the context of international expansion.
The training courses focus on six key themes:
• management;
• personal development;
• collaboration;
• values and intentions;
• coaching;
• skills.
Various learning formats are available, including training courses, learning expeditions, sharing events,
workshops and libraries.

Focus

Encouraging interpersonal communication


and cooperation
In 2016, almost 150 teammates at Decathlon Exchange France followed
a new training course entitled “Non-violent communication”. This course enables participants
to acquire the necessary tools for effective, smooth, clear and considerate communication,
and can be followed by taking part in workshops discussing good practices and case studies.
This same year, we also introduced a series of co-development workshops. Their aim was to provide a platform
for teammates’ ideas and projects, devised through cooperation and collective intelligence.

SUSTAINABLE DEVELOPMENT: EVERYONE CAN PLAY A ROLE!


In 2016, we organised two events at Villeneuve-d’Ascq, birthplace of Decathlon, to make teammates more
aware of our sustainable development values and inspire them to drive them forward to become reality.

1 2 3

1 - 3: Component forum: Four conferences dedicated to environmental issues attracted some 150 participants from design and production departments.
2:Preserve to Protect day: Special guests along with around 400 highly driven teammates gathered for the day to discuss the importance of
environmental issues and suitable approaches for tackling these.

PEOPLE AND MANAGEMENT 35


2016 SUSTAINABLE DEVELOPMENT REPORT

DELIVERING HEALTH
AND SAFETY
Quality of life at work issues are a growing source of
concern for company directors, employee representative
bodies and public authorities in many countries. In 2016,
a survey conducted by Decathlon Pro1 revealed that
“keeping fit” was the most important motivation factor
for those doing sport, ahead of “decompressing and
de-stressing” 2.
Because Decathlon’s purpose is to make sport accessible
to as many people as possible, thereby contributing to
their well-being, the company considers health and safety
at work as one of its key responsibilities with regards to
its teammates. In 2016, 93%3 of teammates said that
they felt safe in the workplace and 77%4 said they play
their sport regularly. The aim is to make this 100% by
2019, by encouraging teams to assume leadership
roles to build and execute their action plans. At the
same time, our HR team in France has been working Teammates take part in the Vietnam Mountain Marathon.
on a global project to improve the quality of life at work 5,
and around the world teams are devising their own
“safety standards” in line with their particular issues and
local regulations.

Health and safety in figures*

77 %   6 93 %   7 200


of teammates of teammates ambassadors

play their sport regularly, feel safe in their workplace, for quality of life at work,
i.e. a 2% a result that has remained in France.
increase on 2015. stable compared with 2015.

* Key figures as of 31 December 2016

1. Decathlon Pro is the dedicated sports gear and equipment entity for professionals.
2. Result from the survey conducted in France by Decathlon Pro between 16 June and 4 July 2016 among 257 people from businesses of varying
sizes and types.
3. Result from the “Decathlon Team Barometer” survey conducted among Decathlon teammates worldwide during the month of September 2016,
with 51,780 teammates responding. Percentage of people who responded “yes, definitely”, or “yes, more or less”.
4. Id.
5. Project that encompasses risk prevention and well-being at work, among other themes.
6. Id. note 3.
7. Id.

36 PEOPLE AND MANAGEMENT


2016 SUSTAINABLE DEVELOPMENT REPORT

A SUMMARY OF 2016 IN FRANCE


• We asked our teammates in France about their
quality of life at work, and 57 % 8 reconciled this
concept with the idea of being happy to come to
work.
• Partners 9 helped us to support teammates
experiencing post trauma situations (assault,
violence in store, sudden death of a colleague, etc.).
• We are developing the way we handle in-store
security so that teammates are given more
responsibilities and a greater sense of purpose.

Flows safety is a priority for warehouses; pedestrian protection,


natural lighting, training in handling equipment
and storage quality, etc. (Rouvignies, France).

TEAMMATES Yes, definitely: 40%


SAY THAT THEY PLAY Yes, more or less: 37%
THEIR SPORT REGULARLY 10 No, not really: 18%
No, not at all: 5%
In %

Focus

A company
where it feels good to play sport!
One of the fundamentals shared by all employees is playing sport during or outside working hours, either alone or as
part of a meeting. It’s an excellent strategy for strengthening cohesion and creating links outside the usual areas of
work-related discussions - not to mention a clever way to test out our products!

PREVENTING PSYCHOSOCIAL RISKS IN FRANCE


The HR team works with managers and employee representatives, supported by external firms 11, to identify
and prevent the risks threatening health and well-being at work. We examined the regulations applicable to
the field of health in the workplace, as well as collecting and analysing data from 118 anonymous personal
reviews carried out among our teammates. Training teammates about psychosocial risks and health, and
raising their awareness of these issues, are key focus areas that we will continue to develop in 2017 through
a series of workshops, training videos and information sheets.

8. Result from the internal survey conducted as part of the quality of life at work project by HR teams at Decathlon France, March 2016, with 118
teammates responding.
9. Such as the Preventis firm, for managing post-traumatic situations.
10.Id. note 3.
11. Cabinet Toi de soi, psychology experts.

PEOPLE AND MANAGEMENT 37


2016 SUSTAINABLE DEVELOPMENT REPORT

Quality of Life at Work, at Decathlon

At the heart of this issue of


quality of life at work, teammates’
well-being is vital for teams to
flourish and derive enjoyment
from work, and for the business
to guarantee sustainable
performance.

Focus

Decathlon’s “numéro bleu” (blue number)


In 2016, a year after Decathlon launched its “numéro bleu” helpline in France, in partnership with an external body 12,
200 calls were registered, with this initiative benefitting 134 teammates and leading to almost 90 social welfare cases.
This solution was developed as a way of supporting any teammate, on condition of anonymity, who finds themselves
in a challenging personal or professional situation (housing, finances, family, stress, etc.).

SAFETY FOR EVERYONE, EVERYWHERE


Personal safety is a key issue for Decathlon, which is continuing with its international expansion and
promoting the principle of subsidiarity 13. In 2016, local teams from each country were instructed to write
their own “safety standards” 14 which were expected to take into account local regulations and the business’
particular field of activity. Once established, a representative from another country effectively assesses how
relevant and exhaustive the standard is, a procedure that could realistically be continued long term. This
type of organisation gives local teams greater responsibility and enables them to come together to deliver a
shared purpose. At the end of 2016, almost 40% of local managers confirmed that they had formalised their
standards. In 2017, internal audit teams will draw up an inventory to record which safety standards exist and
have been implemented in each country.

12. Ressif is France’s network of interbusiness social services, which helps companies and their employees to resolve medico-social problems, with
guaranteed anonymity.
13. See page 31.
14. Replacing the single safety standard that was applied across all countries, a practice that does nothing to support the idea of subsidiarity.

38 PEOPLE AND MANAGEMENT


2016 SUSTAINABLE DEVELOPMENT REPORT

Focus

New safety “captains”


in stores
To ensure that everyone in store is kept safe, we've made some changes to the role of our safety officer. From 2016,
the safety "captain" alerts people to risks well in advance by applying a local strategy.
This officer leads the safety team, monitors any changes in results and adapts the strategy to suit the situation.
400 teammates in France met in 2016 to launch this role, with over 2,000 people set to be trained up in these new skills.
Our Chinese and Italian teams have led the way by introducing highly effective training plans
to a large number of teammates.

PARTNERSHIPS OF TRUST
TO ENSURE SAFETY
WHEN TRAVELLING
Decathlon works with several different external partners, helping to prevent risks and manage crises relating
to personal safety. For example, an assistance company passes us all international information relating
to health and safety risks for a particular trip, depending on the destination, and precautions are taken for
any areas or countries considered to be "at risk". Special procedures and support have been introduced to
guarantee our teammates safety when on their travels.
We also work in collaboration with a broker, who manages any cases of repatriation on medical grounds. We
have organised meetings and committees with both these experts and other businesses in the distribution
sector, in a bid to find out about and discuss good practices, and understand the current state of affairs in
terms of the international situation.

Focus

“Safety reflex” training course


for our logistics teams
This course covers the key risks inherent in any warehousing activity, such as evacuations, accidents,
fire and theft, as well as any statutory obligations and business continuity.
Both theoretical and practical, this course is aimed at teammates keen to become safety “officers”
(a similar role to that of the safety “captain in Decathlon stores). Each country is free to create their own training
courses, provided that the business’ particular field of activity is adhered to.

PEOPLE AND MANAGEMENT 39


2016 SUSTAINABLE DEVELOPMENT REPORT

ATTRACTING, REWARDING
AND MOTIVATING TEAMMATES
In the current competitive environment that is the
employment market, businesses devise rewards schemes
to attract candidates and motivate teams to deliver their
strategic objectives.
At Decathlon, our remuneration policy is guided by three
commitments: transparency, fairness and consistency.
Pay packages comprise a personal, fixed amount relating
to individual responsibilities and a variable group-based
amount linked to team performance.
Employee pay thus reflects our company’s global economic
strategies whilst being pegged in line with local markets.
59 %1 of teammates feel that their salary is fair with regard
to their responsibilities, and we’re aiming for this to rise
to 100% by 2019. Depending on the country, Decathlon
is offering its teammates help in buying sports gear and
equipment, by issuing them with a discount card (entitling them to between 5% and 25% off, depending on
the items and the country concerned). Eventually, our hope is that all teammates in every country will be
Decathlon customers.
In an increasing number of countries, teammates are given the opportunity to contribute to a mutual fund in
order to share the value created and enable as many as possible to become shareholders in the business.
By 2019, we hope that 100% will have taken up this offer; the figure stood at 50.74% in 2016.

Wages in figures*


1,793,615,773 59 %   2 38,547
of teammates teammates

worldwide payroll, consider their salary to be fair with are Decathlon shareholders,
i.e. an increase of 4.16% compared regard to their responsibilities, i.e. 50.74%
with 2015. i.e. an increase of 3% compared of teammates.
with 2015.

* Key figures as of 31 December 2016

A SUMMARY OF 2016
• In our quest for greater transparency of pay, we have
enabled teammates to access market remuneration
indexes 3.
• 25 countries offer an employee shareholder scheme.

Launch party for the employee


shareholder scheme in Morocco.

1. Result of the “Decathlon Team Barometer” survey conducted among Decathlon teammates worldwide during the month of September 2016, with
51,780 teammates responding. Percentage of people who responded “yes, definitely” or “yes, more or less”.
2. id.
3. For some entities, for example in France, China and India.

40 PEOPLE AND MANAGEMENT


2016 SUSTAINABLE DEVELOPMENT REPORT

OUR TEAMMATES CONSIDER 100


THEIR PAY TO BE FAIR 90
WITH REGARD 80
TO THEIR RESPONSIBILITIES 4 70
59%
60 56% 56%
In % 50
40
30
20
10
0
2014 2015 2016

Focus

At Decathlon, our remuneration policy


is guided by three commitments
Transparency:
the manager explains the pay package to their teammate, and all information pertaining to salary, etc. is made
available (different tools depending on the country) to encourage and support discussions on this topics.
Fairness:
we aim to pay each teammate fairly, in keeping with their performance and their development potential,
and in line with the market.
Consistency:
our pay policy is in line with the company’s strategic priorities,
managerial model and external competitiveness.

DECATHLON
ON THE ROAD
TO TRANSPARENCY
So that teammates can more accurately
assess how fair their pay is, we've made
available both the external and internal market
indexes for some of our teams5 in the interests
of transparency. These indexes can help
teammates to understand their position and,
if necessary, to set out a clear remuneration
package that they feel is fair with regard to their
responsibilities and development goals. The
aim is to gradually roll out this scheme to all
teams in France by 2018, and eventually to all of
our teammates worldwide.

4. Id. note 1.
5. Decathlon S.A., i.e. approx. 3,500 teammates.

PEOPLE AND MANAGEMENT 41


2016 SUSTAINABLE DEVELOPMENT REPORT

DECATHLON – SHAREHOLDING TEAMMATES


Decathlon’s mutual investment fund provides teammates with an alternative way to be part of their
company's adventure, by establishing financial assets. This is also a differentiating USP for Decathlon that
will encourage new talent to sign up to the company’s business plan.
In-house, a network of “shareholder reps” plays an ambassadorial role between the company’s various
departments, in order to explain in detail how asset sharing works.
In 2016, Decathlon ramped up its strategy, meaning that teammates from 25 countries were able to join
the scheme, bringing the number of Decathlon shareholding teammates to 38,547 6. In countries where
legislation prevents employees of a business from becoming direct shareholders 7, an intermediate scheme
was implemented in agreement with local and banking authorities. To make shareholding accessible to as
many teammates as possible, we have planned for additional communication resources in 2017; information
will be simplified and adapted to the language and culture of the country concerned.

Launch party for the employee shareholder scheme in Singapour.

6. 31/12/2016.
7. For example in India and Vietnam.

42 PEOPLE AND MANAGEMENT


2016 SUSTAINABLE DEVELOPMENT REPORT

DECATHLON FOUNDATION: WORKING TO PROMOTE


UNIVERSAL ACCESS TO EMPLOYMENT
Delivering equality of opportunity and paying particular
attention to disadvantaged and marginalised
communities is a global issue, even in the richest of
countries. Access to a quality education for all is a key
element in reducing inequalities, promoting tolerance
and thereby boosting an inclusive kind of social and
economic development.
Created in 2005, the Decathlon Foundation has
supported many teammates in France, helping them
to set up socially useful projects to benefit those facing
situations of hardship and vulnerability, using sport
as a vehicle for integration. With these projects, the
Foundation is clearly illustrating how well its teammates
respect and adhered to Decathlon’s purpose and
values. To ensure the success of this mission, special
Introductory stand-up paddleboarding session with
foundation teams are coached in their particular country the Autisme amb Future association in Spain.
with a view to being able to select and approve their own projects eventually.
In 2015, this mission became even more beneficial, by incorporating a drive to develop people’s employability.
By helping them to find work in their chosen organisation, this initiative promotes diversity and aims to exert
a stronger, more sustainable impact on people's lives and well-being.
In 2016, 46,371 people in vulnerable situations benefitted directly from the work done by our foundation in
9 different countries.

The Foundation's projects in figures*

4242 46,371
.
2
projets
projects beneficiaries foundation teams

validés par la Fondation.


approved by benefitting directly that are autonomous,
the Foundation. from projects. in Spain and Italy.

* Key figures as of 31 December 2016

A SUMMARY OF 2016
• Aside from playing sport, we helped beneficiaries to access education and become more employable.
• To ensure our projects succeed, we called on a wider team to get involved on a practical level.
• We emphasised the local aspect of our projects and paid due care to the relationship between those teams
involved and the beneficiaries they are helping.

PEOPLE AND MANAGEMENT 43


2016 SUSTAINABLE DEVELOPMENT REPORT

Focus

The Decathlon Foundation:


a breeding ground for innovative projects
The Foundation is a fully-fledged player in Decathlon’s CSR strategy, and also spearheads projects that extend beyond
the scope of philanthropy. In 2016, it continued its efforts in India to maximise stores’ social impact 1, and observed
that the country’s middle classes increasingly expected brands to act as vehicles for universal values.
Decathlon’s teams are keen to be part of a win-win strategy and to respond to the expectations and changes
in this booming market.

CHANGING THE LIVES OF BENEFICIARIES


BY MAKING THEM MORE EMPLOYABLE
In 2015, the Foundation’s mission began to place greater emphasis on integration within the employment
market. Decathlon project leaders are now tasked with enabling Foundation beneficiaries to discover the
joys and benefits of sport as well as providing practical support in terms of getting them back into work
(help writing CVs, conducting mock interviews, and presentations on jobs, with a view to internships, training
placements, and temporary and permanent contracts) within an organisation of their choice. This is how
the Decathlon Foundation encourages diversity, including within our teams themselves 2. This latest mission
is more ambitious, and requires teammates to have additional skills and to be able to adapt to those in
vulnerable situations whom they are trying to help. Executing these projects requires both time and energy,
and the involvement of not just one teammate but of a whole motivated team. To maximise the support
given, the project should preferably be conducted alongside or in proximity to those teams involved.
These new criteria are more stringent for our teams, which means fewer projects led by the Foundation.
That said, the projects carried out are more sustainable and enjoy a wider scope.

“To pull off this project with the Big Bang Ballers, I was joined by the whole store who
wanted to see how we could get young people in cities back into work and society.
For me, the role of the Foundation isn’t just about contributing money for projects,
it’s also about listening and communicating.”

KARINE TERRIEN
Department manager in Echirolles,
supporting the Big Bang Ballers with the Decathlon Foundation.

1. See page 75.


2. Beneficiaries select the work environment and the business of their choice, including Decathlon.

44 PEOPLE AND MANAGEMENT


2016 SUSTAINABLE DEVELOPMENT REPORT

EMPOWERING TEAMS
FOR GREATER LOCAL IMPACT
Local foundation teams are being set up so as to make it easier for teammates to take the initiative and
for projects to be monitored. Italian teams were the first to be structured like this in 2015. In 2016, Spanish
Decathlonians established their first autonomous committee and approved nine projects. Those in China,
India and Brazil are set to follow suit in 2017 3. The decision to create a foundation team is made by local
teams, on a voluntary basis. They are established after a qualitative assessment, designed to create projects
that are as sustainable as possible.
In France, a new organisation has been
implemented to drive forward the work done by
the Foundation. We’ve created a synergy with the
teams spearheading the “Quality of life at work”
project 4 so that eventually a network of repre-
sentatives in every store covers the entire area.
This dual role means that representatives can
bring their position to bear in order to promote
otherness and acceptance of this concept, as
well as enriching teams with human experiences
that embrace diversity.
Coaching sessions for these representatives
is set to commence in 2017, with a view to
empowering them to training, inform, advise and
support future project backers. Building a project around surfing with young people from
the shanty towns of Rio de Janeiro. Lessons are delivered
by a former shanty town resident, on Ipanema beach..

The Decathlon Foundation


Construction d'un projet autour du surf avec les jeunes des
favelas de Rio de Janeiro. Les cours seront donnés par un
ancien de cette même favela, sur la plage d'Ipanema.

3. These three countries postponed the creation of their own local foundation until 2017, to prioritise other projects directly related to Decathlon activities.
4. See page 38.

PEOPLE AND MANAGEMENT 45


PRODUCTS
AND SERVICES
2016 SUSTAINABLE DEVELOPMENT REPORT

DESIGNING INNOVATION FOR ALL


The innovation mindset has become a vital element in
the culture of companies keen to build robust competitive
advantages and see their products and services firmly
and sustainably established on the market.
For Decathlon, it’s the key designed to open the doors to
sport for everyone, right across the world, regardless of
their chosen activity or standard. The teams responsible
for design are concentrating on innovations that primarily
serve a function, so as to continuously keep our users
excited and satisfied.
If our prices seem low, that’s because of our “Smart
Cost” strategy. Our design and production procedures
are largely integrated (selection and purchasing of raw
materials, design to cost, logistics chain management,
etc.). So as to make sport accessible to all, Decathlon is
spearheading design methods that focus on controlling costs at every level of the value chain.
By using fewer materials or using recycled materials, investing in new ways of minimising the amount
of resources required, and incorporating new technologies into its products, Decathlon understands that
eco-innovation is also vital for reducing its environmental impact.

Innovation in figures*

2,800 180 550


engineers
new
products
designers 180
designers

incorporated who work in-house who are responsible


into our range at Decathlon. for innovation.
every year.

* Key figures as of 31 December 2016

A SUMMARY OF 2016
• At our Decathlon Innovation Awards, Quechua’s rapid
inflation/deflation airbed won first prize.
• We held our first Hackathlons, which proved a real
success among our teammates and other participants
from outside our company.
• We have extended the activities of our crowdsourcing
platform, Decathlon Creation, which now offers trials to
its members.

Designers presenting Quechua’s “Air Seconds”


airbed at the Decathlon Innovation Awards 2016
evening in Lille (France).

PRODUCTS AND SERVICES 47


2016 SUSTAINABLE DEVELOPMENT REPORT

“SMART COST” SOLUTIONS


To keep prices affordable for customers, the first solution involves optimising our transfer prices 1. Teams
boasting a variety of skills consult with each other and tackle each product stage in the value chain 2, thus
adopting a 360° degree approach. They analyse a product's global situation and identify the stages in which
substantial savings could be made, without affecting other costs. These savings are passed on to the user,
who pays less for their products, while their perceived value remains the same, and might even increase.

For example, for the BTwin HB 500 water pouch,


teammates noticed that the greatest savings could
be made by modifying the pouch components and by
optimising logistics flows. “Smart Cost” savings for this
product range are considerable: the price of the HB500
model fell from €29.95 to €19.95 in just 18 months.

BTwin HB 500 water pouch

“Thanks to the experience we’ve racked up by managing our optimisation


programme, I’ve been able to implement a method that should allow us to share
and profit from what we've learned. This is an essential component of Smart
Costing. We currently have a team of managers who are experts in specific
processes and techniques, and they share their knowledge with any product
manager keen to reduce the price of their product ranges."

FAUSTO ESPARZA
Manager of the “Smart Cost” programme.

Focus
Smart Cost Day 2016 in Lille
Several Smart Cost days were held in 2016, bringing together more than 300 teammates from different fields of
activity. These were opportunities to optimise prices for dozens of products, particularly our entry-level range
of T shirts for basketball, canoes, kimonos, and kids’ trainers, etc.

1. Internal pricing practised between our production and sales departments.


2. Design, packaging, purchasing, production, transport, customs duties and retail.

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2016 SUSTAINABLE DEVELOPMENT REPORT

DECATHLON INNOVATION AWARDS 2016


As is the case every year, Decathlon organises its Innovation Awards ceremony, where teammates and users
are invited to vote for the year's most innovative product. The 2016 award went to Quechua's rapid inflation/
deflation air bed!

Average score for innovative products at the DIA 2016

ZIPlayer by Artengo 5

Système K-Only by Kalenji 4.31

Matelas Air Seconds by Quechua 4.14

Fourche U-Fit by BTwin (on RR520) 4.04

Ski Boost 300 Archtec by Wed’ze 4

Lunettes BFast by Nabaiji 3.78

Legging Shape Booster by Domyos 3.57

Fouganza Be Connected 3 1

0 1 2 3 4 5

Three of these innovations have been developed harnessing the expertise in Decathlon’s in-house R&D
department, the Sportslab, including the K-Only by Kalenji, the fruit of a three-year collaboration between the
brand, its R&D centre and the Luxembourg Institute of Health (LIH).

3. This product was withdrawn two weeks after going on sale, after six users rated it 1 out of 5 (nine negative reviews in total).

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2016 SUSTAINABLE DEVELOPMENT REPORT

While brands are focusing on their users and their needs, the R&D centre, known as the “Decathlon
SportsLab”, is concentrating on how the human body works and its requirements. Together, they are
designing innovative, customer-friendly products that provide better safety while promoting user well-being.
Decathlon’s R&D centre employs some 50 engineers and researchers.

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HACKATHLON:
REINVENTING THE WAY WE PLAY SPORT
In order to encourage and maintain its culture of innovation, Decathlon held its first ever Hackathlon in
February 2016. This two-day event invited talents to share their ideas and take their projects to the next
stage. Seventy people took part in this event, which was so successful that a second one has already been
planned, this time open to anyone outside Decathlon too.

Hackathlon 2016

Focus

Decathlon Creation:
from crowdsourcing to trials
In September 2016, the “Decathlon Creation” community extended its co-designing platform,
offering product trials to its 16,000 members, all of whom are sports enthusiasts. In just three months,
2,000 testers had signed up for a whole series of trials, for example on tennis shoes,
and new solutions for repairing bike tyres or handles.
This initiative has brought our design teams and sports users closer with stronger links being forged,
a process that will continue throughout 2017 and beyond.

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2016 SUSTAINABLE DEVELOPMENT REPORT

PROMOTING
RESPONSIBLE CONSUMPTION
For almost 50 years, consumer goods production has
exerted a continuous pressure on our ecosystems.
Global warming, diminishing resources and hydric
stress are just some of the signs that humankind’s
living conditions on Earth are deteriorating over time.
How can we reconcile our business model, based
on selling sports items at the lowest possible prices
to ensure they are affordable for all, with the need to
respond to environmental issues and fulfil our responsi-
bilities? One of our solutions involves encouraging our
users to choose eco-friendly products without making
them more expensive, the idea being that in return
this will influence our design and supply strategies,
involving materials and manufacturing processes
that have less impact on the environment. Decathlon
has set itself a target of eco-labelling 100% of its
products by 2018, and using exclusively sustainably
produced cotton by 2020. In December 2016, 8,7 %1
of its products were available with such labels, and 14.4%
of our cotton was derived from sustainable resources.
Mobilising our teams to commit to eco-designing
products is now a priority if we are to reduce our
environmental impact, stimulate eco-innovation and
respond to the growing expectations of our customers
and users.

Responsible consumption in figures*

8.7  % 25  % 14.4 % 50.16  %


of products of users of engineers

were available say they have changed of our cotton suppliers are capable of assessing
with eco-labelling. their buying behaviour come from the environmental impact
in response to a product's sustainable resources. of products.
environmental rating.

* Key figures as of 31 December 2016

1. In 2016 this indicator referred to France and will be gradually extended to other countries over the coming years.

52 PRODUCTS AND SERVICES


2016 SUSTAINABLE DEVELOPMENT REPORT

A SUMMARY OF 2016
• We assessed how visible our eco-labelling
was, and its influence on buying behaviour.
• We audited our calculation method so that
it was compatible with EU standards, and
brought it into line with other industry players
at both French and European level.
• We gave our teams their environmental
assessment reports so that they could
identify the main eco-design levers and put
them into action.
• We increased the proportion of our
sustainable cotton supplies and discussed
this subject with our external stakeholders.

Eco-performance labelling on the online site.

CHANGE IN THE NUMBER 10


9
OF PRODUCTS AVAILABLE 8 7.9 %
8.7 %

WITH ECO-LABELLING 7
6 5.98 %

In % 5
4
3
2
Spring/Summer season 1
Autumn/Winter season 0 0.38 %
2015 2016

Focus

Making our
design teams autonomous
Since 2015, we’ve been working to build in product environmental impact calculations into our design tools used
by engineers, and we continue to help them use this module effectively.
In 2016, 50.16 % ² assessed at least one of their products 3. Aside from the environmental assessment,
engineers can also follow eco-design training courses internally.

2. i.e. 161 engineers. Their skills are approved by an eco-design advisor.


3. To find out more about this labelling in product design, see our SD report FY15 p. 53.

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2016 SUSTAINABLE DEVELOPMENT REPORT

ASSESSING HOW EFFECTIVE


OUR LABELLING IS AMONG OUR USERS
In 2016, we measured 4 how visible our eco-labelling was, how well it was understood and its impact on
product buying and on Decathlon’s image. The results were promising,
• 20% of buyers saw the information;
• 25% of them said that they ended up buying a product with a higher rating. The others did not take the
rating into account, because there was no equivalent product available;
• 85% of buyers said that the transparency of this information improved the image they had of Decathlon.
In December 2016, 8.7% of products were available with this labelling. We are working to make the ratings
more visible, before rolling out the labelling to all of our products by 2018.

Focus

External testing
of our calculation method
Decathlon has been part of the "Product Environmental FootPrint” trial, coordinated by the European Commission 5,
since 2013. In 2016, with this working group, we assessed how robust our calculation method was through an audit
conducted by Ernst & Young. Drawing on their conclusions, and as part of our ongoing work, we're focusing on the
quality and comprehensiveness of the data6 in our calculation systems, so we can comply with European Union
standards. At the same time, Decathlon is one of the key players pre-deploying the eco-labelling scheme as instructed
by the French ministry for the environment, which is scheduled for 2017 7.

Interview

Environmental assessments guide our design teams


In 2016, we modelled our products’ environmental impacts and communicated them to each environment
leader 8. Design teams can use this information to identify their priorities and work on eco-designs
for product families with the greatest impact.
Explanations on the ground with Audrey Goulard, environment leader for water sports.

Why do you think it’s important to understand the environmental assessment of your Passion brand?
This helps us to pinpoint - in a highly visual manner - product families with the greatest impact. The label is
clear and easy to communicate and understand. Our first task was to explain it properly to all teams, before
organising workshops to identify eco-design areas relevant to the impacts being generated.

4.The protocol consists of an A/B test on 650 product information sheets on the online store site decathlon.fr (these product info sheets have been
viewed over 1,500,000 times), followed by an after-sale questionnaire sent to buyers of products with visible eco-labelling (344 respondents).
In addition, a survey was conducted among Decathlon loyalty card holders (289 respondents). Survey carried out from April to July 2016.
5. For more information, see http://ec.europa.eu/environment/eussd/smgp/ef_pilots.htm.
6. Particularly through use of the public database Base IMPACTS® at Ademe.
7. For more information, see www.developpement-durable.gouv.fr/laffichage-environnemental-des-produits.
8. For more information about Decathlon’s environment leaders network, see the SDR15, page 59. .

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2016 SUSTAINABLE DEVELOPMENT REPORT

Can you tell us a bit more about these workshops? What are the concrete projects to have come out
of them?
For example, swimming costumes account for 25% of Olaian’s global impact [Decathlon board sports brand
– Ed.]. By the end of the workshop, two main focus areas had been identified: a circular economy project
and another project to ban the sale of any products scoring a D. We have now moved on to writing our action
plans.

AUDREY GOULARD
Environment leader for water sports.

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2016 SUSTAINABLE DEVELOPMENT REPORT

OUR TEAMS IN ACTION


Projects are underway in our company in a bid to transform our product range
and make it more responsible. As well as our efforts to make our products
more visible 9, below are some examples of the work done by our teams.
Using sustainably produced cotton
In 2015, Decathlon and its teams committed to using only sustainably
produced cotton by 2020. This includes organically farmed cotton, cotton
from the Better Cotton Initiative 10 and cotton fibres from recycled waste (pre
and post consumption). The effects of this pledge are still modest, but the Mathilde Vinchon,
trend observed in 2016 shows that sustainable cotton use has risen, from a buyer at Decathlon,
has worked with a whole team
10.6% in 2015 to 14,4 % 11. Teams are reviewing their supply chains in order to to develop Artengo's RS750
achieve this target and our R&D department has worked hard on the issue of socks in sustainable cotton
for the Chinese market.
recycling end-of-life textiles. We are also trialling a number of textile collection
schemes12.

Interview

Decathlon strikes up a transparent dialogue with the WWF


In 2016, WWF France 13 challenged Decathlon about its use of certain raw materials to make its products.
We get the low-down from Théo Cizeron, responsible for relations with the WWF economic world.

 hat were your reasons for challenging Decathlon in your April 2016 edition,
W
the 25 French businesses with the biggest impact on global ecosystems?
Given the sheer volume of business inextricably linked to purchasing, sales and the transformation of raw
materials like cotton and cardboard, the WWF felt that Decathlon had a major role to play in revolutionising
these raw materials markets, whose production methods impact ecosystems that are particularly vital for
the balance of our planet.
Was Decathlon’s response to your publication satisfactory?
After publishing the list of France's 25 most environmentally damaging businesses in April 2016,
Decathlon was quick to open up lines of communication, presenting us with, for example,
its environmental policy and its commitments regarding the cotton industry. We commend
this approach and have encouraged Decathlon to pursue its drive for transparency, and to go
even further to increase accountability of its supplies.
What are you expecting from Decathlon in the future in this area?
The WWF is currently conducting a study on the progress being made by the 25 businesses listed last
year. As Decathlon is one of these, we are expecting that its policy of openness and desire to progress will
translate into action, so that it becomes a benchmark in terms of inspiring industries to adopt responsible
practices.

THÉO CIZERON
Responsible for relations with the WWF economic world.

9. See page 65.


10. The BCI (Better Cotton Initiative) is a not-for-profit association. It promotes development of better cotton as a sustainable basic product, in order
to improve global production for producers, for the environment in which the cotton is grown and for the future of the industry.
11. i.e. 5,255.38 tonnes in 2016.
12. See page 67.
13. World Wide Fund for Nature, voir www.wwf.fr/.

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2016 SUSTAINABLE DEVELOPMENT REPORT

Using recycled polyester


To move away from its dependence on fossil fuels and to reduce
waste, teams have embraced recycled polyester, make from plastic
bottles. Traditionally, it’s been the Forclaz 50 fleece that spearheaded
the use of recycled polyester, achieving a peak of 4,000 tonnes in
2012. After a steady decline, Decathlon's consumption then rose
again, reaching 20% of global polyester volumes in 2016, in step with
rising demand for recycled products. Teams are organised so as to
be able to bulk buy recycled polyester in order to reduce the cost,
with quantities for 2017 approaching 23% of our global volumes. At
the same time, a new project is underway to reutilise our production
waste.

Quechua ¾ leggings

Dyeing polyester using processes with minimal impact


Dope-dyeing polyester, more complex than standard dyeing
techniques, responds to the challenge of reducing water consumption
and minimising pollution caused by dye wastewaters. Components
dyed in this way have been used in our products since 2012, and
their consumption - relatively constant - hit 700 tonnes in 2016. In
the same year, this yarn was combined with a pure yarn to create a
two-tone component - again, to minimise impacts during this stage. In
2017, the quantity of dope-dyed polyester should reach 1,000 tonnes.
Teams plan to continue bulk buying this yarn, which can be used for
several purposes, depending on whether it's woven or knitted. Lastly,
the “supercritical CO2” dyeing procedure, which has the advantage of
using a totally neutral “green solvent”, can be conducted within a closed
loop system that obviates the need for water. This recent technique is
still on the fringes, and was used on just three product ranges in 2016.

Ekiden T shirt

Using air pillow packaging so that shoes retain their shape


Out of around 70 million shoes sold by Decathlon, 50 million require
support packaging in order to retain their shape during transit.
Packaging teams had the idea of replacing the cardboard wedge with
a polyethylene air pillow. This system has a smaller environmental
impact and is twice as cheap for the business; it was used for 800,000
Quechua shoes in 2016 and will be extended to include a further
8 million products (such as fins and other footwear) in 2017.

Quechua shoes

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2016 SUSTAINABLE DEVELOPMENT REPORT

CREATING SAFE,
HIGH QUALITY PRODUCTS
In 2016, almost a billion Decathlon products were sold in 28
countries. Each of these channelled our promise to satisfy
users right throughout their experience. This essential aim
is something that we cultivate at each stage of our product
life cycles. As a designer, and thanks to our regular presence
on production sites, we are continuously improving the
quality of our articles, complying with the regulations in
force in those countries where they are sold. 1,184,891
products were returned to us in 2016 because of defects or
because buyers were unhappy with them. As user safety is a
prerequisite, our teams have analysed Decathlon’s products
to resolve any potential weaknesses, right from the design
stage through to the after-sale stage, including returns to
stores. They are also working to minimise any risks linked
to their chemical composition, whether for our users, our
sales assistants, manufacturing operatives or people living
in and around production areas.
In 2016, 97.26% 1 of tested products complied with the
standards set out in our Restricted Substances List (RSL).
To improve suppliers’ levels of proficiency, our teams have
devised training courses for this purpose, delivered in-situ.

Quality and safety of Decathlon products in figures*

1,267 73.8  % 5,941 1.76


products returned of suppliers products days

per million products, are involved in managing from our brands have been taken to address a
by our customers because chemicals, by signing Decathlon’s tested for toxicological complaint; with a response
of defects or dissatisfaction. Restricted Substances List. compliance. provided in 37 days, in the
event of a question or
an adverse skin reaction.

* Key figures as of 31 December 2016

1. Out of 5,941 Decathlon products tested in 2016.

58 PRODUCTS AND SERVICES


2016 SUSTAINABLE DEVELOPMENT REPORT

A SUMMARY OF 2016
• Decathlon is mobilising the full chain of departments,
from product design through to after-sales service, in
order to design and sell products that comply with its
own rigorous set of quality criteria.
• Our teams have switched from a reactive mode to
an anticipatory one, by creating training courses on
chemicals management that are directly targeted at
suppliers.
• Our teams are looking into ways to replace certain
hazardous substances, sometimes even anticipating
new regulations and standards.

QUALITY RETURNS RATE


FOR DECATHLON PRODUCTS 2014 1,204

Per million products


2015 1,158

2016 1,267

0 500 1 000 1 500

Focus

A commitment to eliminate
PFCs from our products
As PFCs (perfluorinated compounds) are considered to be an “extremely concerning” substance according
to the European Chemicals Agency, Decathlon teams are working hard to abolish them.
The chemical changes modify textiles’ physico-chemical properties; all bonding and laminating
processes also need to be re-adjusted, product by product.
In view of this situation, the mountain sports division (Quechua, Wedze, Simond) pledged in 2016
to eliminate PFCs from its textile products by 2020.

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2016 SUSTAINABLE DEVELOPMENT REPORT

QUALITY:
A CROSS-FUNCTIONAL PROCESS

During the design process


For each product family, engineers identify the tests
necessary for satisfying user needs, internal and
statutory quality standards, and check that any potential
risks identified have been eliminated 2. All product
characteristics are set out in their specifications.
Throughout the development process, quality
managers provide support to help make designs more
reliable and efficient, and to ensure compliance with
the required criteria.

During production
Our production quality teams ensure that the product
manufactured adheres to the specifications. Our teams
adapt the inspections they are to carry out in line with
the supplier’s level of expertise, from the component
reception stage through to the warehousing of finished
products. Quality in production managers play a regular
support role helping teams with the basics, and training
them to draw up inspection plans.

In stores
In 2016, 1,267 products (per million) were returned
by our customers because of defects or because of
dissatisfaction.
When teams detect 3 product dissatisfaction, several
possible courses of action present themselves:
repair, destruction, or donations to associations. In
some countries4 in 2016, teams decided to apply a
commercial policy whereby products scoring less than
3 out of 5 5 in online reviews were withdrawn from sale
and not reinstated until they had been improved 6.

2. Each product family has its own design validation plan.


3. Based on user reviews, products returns, call centre complaints, etc.
4. France and Portugal.
5. This new business policy partially explains the decline in our indicator for product returns.
6. See page 64.

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2016 SUSTAINABLE DEVELOPMENT REPORT

BREAKDOWN OF QUALITY
CORRECTIVE ACTION HANDLING7

Article repair: 47%


Article destruction: 45%
Return to suppliers: 8%

Focus

Ensuring that our products comply


with all regulations
Each product should fulfil the statutory regulations applicable in all countries where it is sold. A team of in-house
lawyers helps engineers to ensure that their products comply with international standards.

Interview

Decathlon is committed to improving the customer experience and safety.


Decathlon is heavily involved in standardisation efforts, with the aim of helping to improve
business practices throughout its sector. Grégory Berthou, consumer, sport and leisure
goods sector manager at AFNOR, tells us more:

How do you perceive Decathlon’s commitment to standardisation?


10 years ago Decathlon joined the entry rounds and, over the years, has increased its participation in these
efforts to the point where they have established a partner relationship with AFNOR. Company employees
are now actively involved in several standardisation commissions, both in France and worldwide 8. Firstly,
Decathlon focused its efforts on complying with voluntary standards for the products designed by its
brands. We then observed a desire to invest in more cross-functional areas, such as laboratory skills,
product eco-labelling, online customer reviews, service excellence and product hire.
Decathlon is Vice President of AFNOR’s "Consumer, Sports and Leisure goods" strategic committee.
What are your expectations with regard to the business?
We have now finalised a new organisation between Decathlon and AFNOR, so as to improve how we
disseminate standardisation culture. Decathlon employees are full of ideas that often lead to innovative
products and services being marketed. In the future, they could constitute an even greater driving force for
suggestions regarding voluntary standards that we devise together, because if they find it useful then so
will other professionals and those who enjoy playing sport.

GRÉGORY BERTHOU
Consumer goods, sport and leisure sector manager at AFNOR.

7. Out of 277 quality corrective actions, i.e. 3.2 million products concerned (all brands distributed by Decathlon taken together).

8. Almost 80 teammates belong to working groups in France; the vice-chairman of the Strategic Committee “Consumer, sports and leisure goods”
at AFNOR has been Stéphane Jock since January 2015, and the chairman of the international committee for online reputation (ISO/TC 290) is
Laurent Petit.

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2016 SUSTAINABLE DEVELOPMENT REPORT

“A norm is a standard that helps to keep users satisfied and safe.


For us professionals, it’s a tool that makes work easier and enables us to be
more effective and efficient. It’s also a good way to gather expertise
that constitutes industry standards and becomes a working benchmark.”

GILLES TARRIN
Components Manager at Decathlon

CHEMICAL COMPOSITION OF PRODUCTS:


WORKING PROACTIVELY WITH OUR SUPPLIERS
Since 2007, a special team has been in charge of leading this area and, in 2016, four people were given
the responsibility of managing the overall project and defining risky substances, tolerance thresholds, test
methods and control frequencies.
They undertake constant monitoring to identify substances and solutions to warn of, and also oversee the
quality of relations with users in these areas, so that they can respond to their questions as quickly as
possible. In 2016, issues were addressed in 1.76 days, with a response provided in 37 days.
Sitting on various design and production teams, quality managers implement control plans designed to
monitor suppliers and our products. On the ground are those tasked with rolling out
the strategy to our suppliers. In 2016, 73.8% suppliers pledged to respect the list of DOWNLOAD
THE RSL
substances and thresholds by signing Decathlon’s Restricted Substances List.

SUPPLIERS SIGNING UP TO OUR


CHEMICALS STANDARDS
In %
The fall in this percentage between 2015 and 2016 100
can be explained by several factors: 90 83% 86%
80 74%
• the introduction of a new Restricted Substances
70
List in 2016;
60
• manual handling of information in the tool used to 50
feed the indicator. 40
30
20
10
0
2014 2015 2016

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2016 SUSTAINABLE DEVELOPMENT REPORT

In order to better anticipate risks, our


teams have shifted from reactive mode to
anticipatory mode by developing training
initiatives aimed at suppliers. The objective is
to act before products are manufactured, by
improving chemical product management and
communication in the supply chain, among
other strategies.

Focus

Our priority risk


substances
PFCs (perfluorinated compounds)
As PFCs (perfluorinated compounds) are considered to be an “extremely concerning”
substance according to the European Chemicals Agency, Decathlon teams are working hard to abolish them.
In view of this situation, the mountain sports division (Quechua, Wedze, Simond)
pledged in 2016 to abolish PFCs from its textile products by 2020.
PAHs (polycyclic aromatic hydrocarbons)
As these substances (known to be carcinogenic) have been regulated by the European Union
since the end of 2015, we are monitoring their presence in all of our products containing rubber or neoprene.
They have been part of our RSL for many years.
Acetophenone azine
Present in come EVA foams, acetophenone azine is allergenic. While this substance is not regulated for consumer
goods, we have included it on our RSL since 2016 and are in the process of eliminating foam products
that are intended to come into prolonged contact with the skin, such as shinpads.

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OFFERING PRACTICAL
AND ECO-FRIENDLY SERVICES
With 21 billion euros spent every year on sports items in France 1, users want solutions that enable them to
get the best out of their equipment, and less expensive options when it comes to maintaining and renewing
it. In addition, echoing the environmental challenges posed by the growing consumption of goods and
services, the collaborative economy hinges on re-using, recovering and recycling consumer items.
So as to ensure that its product ranges fulfil user expectations
as effectively as possible, Decathlon is reinforcing its “satisfied or
satisfied” strategy, whereby any product not scoring a minimum user
satisfaction rating must be either corrected or withdrawn from sale.
This is how our teams continue to improve the quality of our products
and keep users increasingly happy, while simultaneously reducing the
amount of pressure that our business places on natural resources. In
2016, 87% 2 of users were happy with Decathlon products, and we are
aiming for 95% satisfaction levels by 2019. If products are damaged,
our workshop teams take over, and repair them. Other initiatives
are being drafted, including plans to offer services promoting the
collaborative economy and a scheme to collect used clothing so that
it can be given a second life.
"Second life" days held
at Decathlon Leers (France).

Useful services in figures *

87 % 3 20 71%  4 130
of users models of products articles

were satisfied with Decathlon were withdrawn from our were repaired in our were repaired at the first
products in 2016. range after scoring an average workshops in 2016, compared “Second Life” workshop,
user rating of less than 3/5. with 69% in 2015. organised by Quechua teams.

* Key figures as of 31 December 2016

A SUMMARY OF 2016
• We developed a strategy whereby any product scoring an average
user rating of less than 3/5 is withdrawn from our stores 5.
• We launched a free repair scheme called “Second Life6”, for users
keen to repair their clothing, backpacks, sleeping bags and tents.
• We are encouraging the circular economy by launching a national
collection scheme for cotton clothing, and a recycling network.

1. Source : study by Kurt Salmon, 18 September 2014.


2. Out of 683 000 reviews collected.
3. Id.
4. Repair rate: percentage of repairable products that are repaired as opposed to exchanged, for six branded sports: BTwin, Domyos, Oxelo, Quechua,
Geonaute, Tribord.
5. In France and Portugal.
6. Giving a second life.

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2016 SUSTAINABLE DEVELOPMENT REPORT

PROLONGING PRODUCT LIFE


Decathlon works hard to ensure that users can enjoy their products for as long as possible. We’re using
our network of 1,000 workshops worldwide and 20 regional workshops in Europe to offer a huge range of
after-sales services (maintenance, repairs and customisation). In 2016, our workshops went omnichannel,
enabling users to access spare parts and replacement components from their website..

Who are we?

Our user satisfaction in figures

2015 7 2016 8

Average rating given


4.42 4.38
to workshop services

Recommendation rate 92% 91%

Customer satisfaction rate 88% 89%

Negative reviews rate 6% 6%

7. Out of 46,416 reviews collected.


8. Out of 66,000 reviews collected.

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2016 SUSTAINABLE DEVELOPMENT REPORT

Focus

Breathing new life into our products


2016 saw our Quechua teams launch "Second Life9" , an event for repairing users’ jackets, tents, sleeping bags
and backpacks, with all brands eligible (not just Decathlon’s).
Teammates spent four days carrying out free repairs on 130 items, and collecting user opinions
to determine the most pressing repair needs, with a view to offering a catalogue
of suitable services in the future.

Interview

Users are influencing our ranges


Decathlon gives its users the opportunity to assess their experience by awarding it a score
(from 0 to 5 stars) and leaving a comment about the products. To reinforce the “satisfied or satisfied”
strategy in France and Portugal, teams decided in 2016 to withdraw from the shelve
any products scoring a user rating of less than 3 out of 5.

How many products have been withdrawn from sale since this commercial policy was launched?
We withdrew a total of 20 models, accounting for around 0.2% of all our products. This has cost the group
around €350,000.
What resources have been used for this initiative?
Over a hundred people from within the company have worked on this scheme, given that it involves
product managers, product engineers and sometimes brand communication managers
and production teams.
What was the result of this operation?
The main effect was that teams became more aware of the impact and importance of users' opinions. The
scores they gave us were an indicator of the trust they place in our products. The second effect resides in
the fact that the operation illustrates the scope of the efforts conducted by the whole product development
value chain to make our product ranges even more appealing.

AURÉLIEN MICHEL
User reviews manager

TROCATHLON: THE COLLABORATIVE ECONOMY


Decathlon has been running a second hand sales concept called Trocathlon since 1986. As of 2015,
customers in France were able to use the trocathlon.fr website to sell second hand sports items online while
piggybacking the company’s trusted image. Online, internet users can filter their searches by price category
or search for a particular sport.

9. See www.quechua.fr/second-life.

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Services Decathlon // Trocathlon.fr is all year round

Focus

Rewind project
In 2016, teams launched a circular economy project, which aimed to convert donated cotton clothing
back into Decathlon products, by harnessing various recycling systems.
The method involves combining recycled cotton with pure cotton, preferably sourced from organic
farming or from the BCI 10. Socks, beach towels and T shirts have already been produced using this process.
25 stores in France participate in this project by collecting used clothing.

“Every year in France, 600,000 tonnes of clothing are thrown away.


Just 150,000 tonnes are recovered. In 2020, in view of future regulations and
other influences, we will need to be prepared to recover 50% of this total,
which equates to at least 300,000 tonnes of clothing. Making new from old
is a complex process, given that we must maintain high quality standards.”

NAGY BENSID
Rewind project manager

10. Better Cotton Initiative.

PRODUCTS AND SERVICES 67


STORES
AND TRANSPORT
2016 SUSTAINABLE DEVELOPMENT REPORT

ECO-DEVELOPING OUR GLOBAL NETWORK


The positive impact of physical activity on health and well-being is
widely recognised¹ and although sport is becoming increasingly
popular, there is widespread inequality across the world when it
comes to people's access to facilities and equipment.
What’s more, the economic growth of the sports market is
intrinsically linked to the emergence of middle classes, in societies
where people have satisfied their basic needs and have time to
spend on leisure.
This was the backdrop for Decathlon's renewed drive for growth
in 2016, the year it celebrated its 40th anniversary. It owes its
surge to the teams who work day in day out to boost growth in
European countries, and to their desire to continue expanding the
business in other continents such as Asia, America and Africa.
They put their energies into delivering a straightforward and
practical mission: to enable as many people as possible to enjoy HQE2 store in Saint Malo, built in 2016.
sport and its benefits.
To support this growth in the property field, teams have been focusing on eco-construction techniques for
buildings, a move that yields considerable benefits for the sites concerned. In 2016, 72 buildings were issued
with an environmental certification. The aim for 2018 is for each new company-owned building to have one.

Eco-development in figures *

1 ,176 5 72
stores new countries certified sites

worldwide, with physical POS: accredited for their environmental


i.e. 164 more than in 2015. Mexico, Ivory Coast, Slovenia, performance, worldwide,
Singapore, Malaysia. i.e. 16 more than in 2015.

* Key figures as of 31 December 2016

A SUMMARY OF 2016
• We continued our environmental certification strategy with, for
example, three new certified sites in France.
• We were awarded HQE certification 3 for our logistics platform
building in Lompret, which took the number of warehouses
certified in 2016 to 8.
• We actively monitor changes in society to enhance our business'
growth strategy.

Decathlon warehouse
in Lompret (France).

1. See, for example, the recommendations made by the WHO regarding physical activity for health,
see www.who.int/dietphysicalactivity/factsheet_recommendations/fr/.
2. High environmental quality.
3. Id.
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2016 SUSTAINABLE DEVELOPMENT REPORT

CHANGE IN THE NUMBER 15


OF CERTIFIED COMPANY-OWNED 12.82 % 13.28 %

PREMISES WORLDWIDE, 9.2 %


FOR OUR STORES 10

In percentage of m²
5

0
2014 2015 2016

Focus

Certifying our new company-owned buildings


Building and running our sites accounts for 5% of Decathlon's GHG emission volumes,
which is why teams are striving for environmental efficiency right from the construction design stage,
and are working with four internationally recognised accreditations:
• LEED (Leadership in Energy and Environmental Design) – certification devised in the US;
•B
 REEAM (Building Research Establishment Environmental Assessment Method) – certification devised
in the UK;
• HQE (High Quality Environmental standard) – certification devised in France;
• DGNB (Deutsche Gesellschaft für Nachhaltiges Bauen) – certification devised in Germany.
This concerns all of our stores, as well as the logistics sites and base camps for our Decathlon
product brands. However, the current growth policy, increasingly geared towards site leasing,
limits the proportion of certified buildings in Decathlon’s international portfolio.

ECO-BUILDING OUR SITES IN FRANCE


Since 2010 in France, Decathlon has placed eco-construction at the heart of its sustainable development
policy, which takes the form of environmental accreditations for all of its new company-owned sites (stores
and warehouses).
There are many advantages stemming from this strategy: lower energy bills, enhancing our property assets,
better landscaping integration and improved aural, visual and acoustic well-being for our customers and
teammates.
In 2016, Decathlon had 22 certified sites: 16 stores, 4 logistics sites and 2 brand sites. Three new sites were
awarded a certification:
• the St Malo store;
• the Decathlon village in Yutz;
• Lompret warehouse.

2017 will see this strategy accelerated, with six stores currently working towards accreditation. A large
number of projects designed to supply stores with photovoltaic solar energy are also being considered, and
positive energy buildings are set to become a reality.

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Interview

Capitalising on its assets,


acknowledging the issues and transforming itself quickly:
a smart mix that’s vital if Decathlon is to grow
Decathlon is working to change mentalities, so that the company’s growth is more than
just geographical expansion. Although the latter still plays an important role,
we cannot grow our turnover in the future unless we are able to identify emerging trends,
have an open-minded approach to the environment,
and determine the transformations required in order to adapt.
Jean-Marc Lemière, change creation manager at Decathlon.

What are our preferred areas for growing the business?


We are continuing to consolidate our traditional European bases (the UK and German markets are still
largely unconquered) and are working to develop growth drivers alongside this. The Asian sports market –
aside from China – is one of them, as it's becoming increasingly important, prompted by two phenomena:
demographic growth and an increase in the buying power of the middle classes. Lastly, we have recently
introduced tests examining the viability of our model in Latin America (Mexico and Columbia, with Brazil
to follow) and in sub-Saharan Africa.
What social changes have you observed that have or could have an impact on the way we grow
our business?
The production model over the last forty years, where we adopt only low-cost manufacturing in certain
countries and sell it in others, could be in question for various reasons. The growth curve of new
technologies, as well as sustainable development restrictions, could make more local sourcing patterns a
very sensible idea. But, paradoxically, we are also seeing two different visions of the world emerge, visions
that are potentially contradictory: one where technology makes everything accessible in a very local way -
even with borders being reasserted - and an opposing vision where some people are very anxious and no
longer understand what their place is in this ever-changing world.
What solutions do you feel we should be proposing?
Firstly, we need to acknowledge that we’ve benefitted from this old model, and assume our responsibi-
lities in order to find solutions to today's problems, without waiting for the political sphere to catch up.
We can co-create these responses with all of our teammates, who are fully aware of the relevant societal
and environmental issues. We must introduce these solutions by encouraging collective awareness and
recognition, by promoting a sense of responsibility and giving our teammates the power to change what
needs to change 4. This is what we’re doing, for example, by developing “local for local” supply systems,
demonstrating a desire to help teams grow and deliver a positive impact for those living there, or by
minimising our water in production footprint. For me, this last point - water preservation – is a major
challenge for economies and societies the world over.

JEAN-MARC LEMIÈRE
Change creation manager at Decathlon

4. See our “vision” project page 31.

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SUPPORTING
LOCAL COOPERATION
Decathlon stores act as a constant interface with their environment; as living spaces for teammates and
users, they contribute to local life in many different ways. In 2016, to continue encouraging people in France
to play sport, our stores’ teams organised 1,045 sporting events and 618 sports excursions. Other projects
have been established across the world, as in India where the "local footprint" project led by our teams aims
to assess and maximise the social role played by stores with regard to their communities. 2016 saw a series
of pilot projects designed to encourage store teammates to get involved with local communities.

STORE TEAMS INTERACTING


WITH THEIR LOCAL STAKEHOLDERS

Teams can work in partnership with sports clubs


(special rates), helping them to improve their
facilities, thereby playing a part in extending sport to
more people.

Teams can help people back into community life through sport,
forging a close relationship with local public bodies.

Waste recycling and reclamation is also managed by each store team,


depending on the existing recycling facilities in the area.

Store teams must now develop their remit to raise customers' awareness of the impact their
purchases and sports have on the environment.

Teammates are recruited locally and paid according to a salary package defined by each country. Decathlon
enhances the employability of its employees, largely through its culture of accountability that encourages
autonomy.

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The store contributes to local government and council revenue


(in the form of tax revenue, apprenticeship tax, local and property taxes, etc.)
and uses investment to play a key role in the economic growth of its local area.

Located on the outskirts of towns and cities, the store should ideally be situated
close to public transport links so as to make it easy to get to.

Store teams can organise events such as Vitalsport, as well


as occasions like Foundation Day.

Store teams are keen to instil good, fair consumer practices at the lowest
possible prices, and encourage store loyalty (promotional offers, loyalty
schemes, personalised advice, etc.).

Our stores offer users a range of affordable, high quality products and services (hi-tech/
price ratio), to make it easier for them to play sport, the benefits of which are now widely
recognised.

Store teammates are in charge of managing energy consumption.

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DECATHLON VILLAGE BOUC-BEL-AIR:


WHERE OUR TEAMS HAVE LOCAL ACCOUNTABILITY
Keenly aware of their social and environmental responsibility, and eager to get involved, teams at Decathlon
Village de Bouc-Bel-Air in southern France have been working on a concrete and long-term CSR initiative
since 2016.
After spending four months analysing their local CSR issues, they defined their commitments in line with the
group’s sustainable development ambitions. They want their Decathlon Village to be both a driving force and
engine for projects at local level, to which end they are working on a three-fold action plan:

GOVERNANCE
To create the region's first responsible ecosystem, teams have joined forces with partner companies in
their Village 1 as well as Decathlon’s logistics warehouse in Bouc-Bel-Air, and together have incorporated
the “Responsibility and Performance Plan” in the PACA region. Approved at the end of 2016, the scheme
provides for 45 days' support from the local chamber of commerce and industry and from both regional and
departmental councils, for a two-year period.

SOCIAL
On 2 July 2016, teams held their "Handicap ou
pas cap” event, featuring eight activities designed
to raise visitors’ awareness of playing sport with
a disability. This saw twelve teammates lead 270
different introductory sports sessions. This day
highlighted the physical, mental and social benefits
of sport, boosted our disabled teammates and their
sporting performances, and introduced various local
disability associations.

ENVIRONMENTAL
• Waste management: Decathlon Village has
introduced recycling for customers and
teammates. Management of green spaces is
the responsibility of employees working in a help
through employment centre 2 which recovers and
recycles green waste. After introductory sessions
involving aquatic-based sports, the water is re-used
to clean the roads and paths, terraces and street
furniture.
• Management of energy resources: in 2016, the site
launched the initial phase to modernise its lighting,
swapping to a 100% LED technology-based system
and solar lighting for pedestrian walkways on all its
premises. The second phase involving car parks is
scheduled for 2017.

1. Decathlon Villages have shopping arcades and invite companies to become their partners and capitalise on the available premises on their site
to run their businesses.
2. Centre reserved for people with a disability who are looking to play a role within the community or find work.

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PRACTICAL DEVELOPMENT IN INDIA:


STORES PROMOTING CO-EXISTENCE
After the “Local footprint” project conducted in 2014 with Decathlon
Foundation3, teams were keen to develop stores' roles in society
and their involvement in the concept of co-existence, by making
sport accessible to as many Indians as possible.
After spending time in needy communities4, the teams launched a
project designed to introduce in schools a range of sports activities
not normally taught in India. Schools are the only places where
girls and boys co-exist and where all castes come together, and
it's at this age that we can inculcate values like gender equality,
mutual respect, fair play, an appreciation of effort, cooperation, etc.
Three pilot stores5 have joined forces with three schools to build a sports programme. Store teams provide
the driving force behind this initiative, before handing over to teachers and pupils, who are then in a position
to enjoy sport autonomously.
Teams from a dozen stores in India are also planning to roll out this scheme over the next two years. For
these teammates, such schemes go a long way to boosting the pride felt in working for Decathlon, by playing
a practical role in developing sport and the community in their country.

“These schemes are a great human adventure, made up of shared experiences


with everyone involved. It's also a great way to teach humility and patience,
as we’re really keen to lead this type of initiative in conjunction with local stakeholders,
without forcing anything on them. We want this project to be a win-win opportunity!"

JEAN-PIERRE HAEMMERLEIN
Decathlon Foundation leader

Sports for all

3. See our SD report FY15, p. 43.


4. Around thirty teammates visited all four corners of the country (rural areas, mountain areas and shanty towns) to identify the social needs of
deprived communities, in a bid to mount a social project, for them but especially with them, see our SD report FY15, p.43.
5. In the provinces of Rajasthan, Karnataka and Jharkhand.

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OPTIMISING OUR ENERGY


AND WASTE MANAGEMENT
Fossil energies are the main contributory factors in
climate change. These account for around 60% of
global GHG emissions according to the UN, which, in
2015, included access to affordable clean energies
as one of its 17 sustainable development objectives
for transforming our world 1.
At Decathlon, preserving the environment is a key
focus area for the company’s vision 2. In every country
where we have established our stores, an energy
consumption leader is responsible for minimising
consumption levels on our sites 3. Their shared
ambition: to continue reducing their consumption
rates 4, which were 139.5 kWh/m2/year in 2016 for
stores, and 62.51 kWh/m2/year for warehouses.
In this area, they are fully autonomous in terms
of their strategies, and adopt solutions suited to
their particular situation and local resources. In
the long term, teams will be concentrating on the
energy provided by renewable sources in order to
de-carbonise their consumption.
Waste management is another important issue,
for which our aim is to continuously increase our
recycling rates in both our stores and our warehouses. This strategy, which is more recent than that focusing
on energies nevertheless enjoyed some encouraging progress in 2016. Similarly, some leaders hoping to
exceed this objective have gone further than recycling and are looking at ways to re-use their waste.

Energy and waste management in figures *

25 x2 3,870,238 kWh 1,400


of energy tonnes of hangers
energy leaders stores are recycled
is renewable

are responsible are fitted with LED lighting produced by Italy i.e. five times more than
for reducing energy compared with 2015. and Belgium. in 2015.
consumption at
Decathlon sites.

* Key figures as of 31 December 2016

1. See www.un.org/sustainabledevelopment/fr/energy/.
2. See our vision focus areas p. 31.
3. Includes stores and warehouses.
4. This objective is currently being reviewed so as to define a more accurate target.

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A SUMMARY OF 2016
• We are building a network of country energy leaders, who share
their good practices and devise their own local strategies.
• We’re developing a strategy designed to increase our purchases
of renewable energies, to reduce our CO2 emissions.

Photovoltaic panels
on the roof of the Evere
Decathlon store in Belgium.

CHANGE 150 150 150


IN ENERGY 147,3 142,15
CONSUMPTION 139,5

100 100 100


in kWh per square metre and per year
worldwide, for stores and warehouses
71,2 68,16
50 50 62,51 50

Stores
Warehouses 0 0 0
2014 2015 2016

Focus

Spain, the first country


to implement a global environmental strategy
Since 2014, Spain has pushed ahead with the writing of its environmental strategy, appointing a leader in 2015
to carry it through to its conclusion. Work has been done on the most crucial local issues,
starting with bringing down the energy consumption of buildings, and collecting and recycling waste. In 2016,
teams organised a second national waste collection, hoping for as many people as possible to take part,
in order to clean up outdoor spaces where sport is played. This event attracted over 5,000 volunteers,
who collected more than 32 tonnes of waste and planted 3,500 trees. It was a highly successful initiative,
which is scheduled to take place on an annual basis, and which gives leaders from other countries plenty of ideas!

ENERGY: A WORLDWIDE NETWORK


TO ENHANCE THE EFFICIENCY OF GLOBAL ENERGY PERFORMANCES
Three people coordinate the energy leaders network. They are on hand to suggest tried and tested solutions
and to facilitate the sharing of good practices between members. For example, more and more countries
are adopting technical management solutions for buildings5, spurred on by the excellent results that Turkey
saw after implementing this system.

5. This solution enables us to monitor consumption from each site in real time and remotely, and to manage technical and electronic equipment
automatically in line with pre-defined parameters.

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2016 SUSTAINABLE DEVELOPMENT REPORT

"Personally, the best way of reducing our energy consumption and our environmental
impact is to ensure that our country leaders are interconnected. In 2016, two meetings
were held as a means of bringing them together, explaining the global issues
and furthering various action plans. The aim was to train them to enable them to collect
and interpret data autonomously, thereby helping to develop the best possible strategies
on site. Working together, as part of a collective intelligence effort, is the most effective
way to achieve our objectives and preserve the environment.”

EMMA WOOLLEY
Maintenance manager

Focus

Which data is collected?


In order to coordinate in this way, local teams collected a large amount of data 6, energy consumption
(electricity, natural gas, renewable energies, etc.), waste production and recycling being the main areas.
This data gave leaders an insight into the biggest environmental impacts, their biggest emissions sources
and the sites with the largest consumption, enabling them to target their action plans accordingly.

Interview

Moving from energy consumption management


to environmental performance management
In Belgium, teams decided to reduce their CO2 emissions per square metre, as opposed
to their kilowatt per hour consumption per square metre. Some stores have implemented
this strategy by installing solar photovoltaic panels.
Energy leader and maintenance manager for Belgium Joeri Moons explains.

Why use solar energy in your country?


We want to use this energy as much as possible for ecological and economic reasons. To this end, we’ve
teamed up with investors, who have installed solar panels on our store roofs, so we can directly tap into
the electricity we produce on site.

6. A minimum of 15 pieces of data are collected by local leaders and up to 40 in countries combining several activities (retail, production,
logistics, etc.).

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What percentage does solar account for in your energy mix?


In Belgium, 12% of our total electricity consumption is produced by solar panels installed in some of our
stores. A store with photovoltaic panels on the roof can supply 30% of the electricity it consumes. For the
remainder, we purchase green electricity from traditional producers.
What’s your long-term objective for this means of energy production?
For several years now, we’ve been working to install solar panels on the roofs of our company-owned
stores. For those we lease, it depends on the owner's goodwill. Our ambition is to complete the panel
project by installing one or more wind turbines on our sites in Belgium.

JOERI MOONS
Energy leader and maintenance manager for Belgium.

Furthermore, a number of countries have opted


for LED lighting solutions in order to reduce their
energy bills, a system that is now becoming
standardised across Decathlon stores.
In 2016, 38% of our sites worldwide were fitted
with this technology, compared with 15% in 2015,
and we’re aiming for 58% of our sites in 2017.
Chinese teams have streaked out in front, leaping
from 5 to 115 stores with LED lighting between
2015 and 2016. France hasn't been left behind,
increasing its 70 stores to 121 during the same
period.

LED installation at Decathlon Giltbrook in the UK.

Focus

Conducting comprehensive energy audits


to improve our performances
In Europe, regulations since 2012 have stipulated that energy performance audits must be conducted on buildings, in
order to identify ways in which energy consumption can be reduced. In 2016,
Decathlon teams in Italy and Spain seized this opportunity to conduct diagnostics on all of their sites,
with a view to making a series of practical recommendations that would lead to improved performances.
Some significant results were achieved: Spain reduced its energy consumption by 10% compared with 2015.

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WASTE: A GROWING ISSUE


A considerable amount of waste is handled every day by in-store teams, brand sites, central services and
warehouses; mainly consisting of cardboard, plastic, scrap metal and wood. In 2016, our sites generated
more than 75,661 tonnes of waste.

MANAGEMENT OF WASTE GENERATED BY OUR SITES

Types of waste generated Change in waste separation by teams


by our sites worldwide (Stores and warehouses worldwide)
(Decathlon stores, brand sites, company-owned warehouses)

100 100 100

75 88% 75 89% 75 85%

50 50 50
46%
41% 40%
25 25 25

Mixed waste: 60%


0 0 0
Separated paper and cardboard: 32%
2014 2015 2016
Separated plastics: 3%
Other separated waste Stores Warehouses
(wood, scrap metal, textiles, etc.) : 5 %

While some countries have a structured waste management strategy in tandem with service providers,
many of them have yet to reach this level of maturity. The eventual aim is to build a network of autonomous
and responsible leaders, like that in place for managing energy consumption.
Aside from the contribution the company makes in re-using its waste, development teams are developing
products made from recycled materials 7.

Focus

For our hangers,


apply the 3 Rs strategy
(reduce, re-use, recycle)
So as to free up our teammates in store from doing tasks with no added value for the user, we started a project
in 2014 that involved putting Decathlon products on hangers straight from the production stage.
From June 2015, for all clothing arriving in-store on hangers, we wanted to create a closed loop system
to reduce our waste and GHG emissions. The solutions vary for each country, but 18 of them use the same
system of sorting hangers before recycling them into new hangers for Decathlon.
In 2015, 327 tonnes of plastic hangers were recycled, figures that increased five-fold in 2016 to 1,400 tonnes.
All hangers bought this year were made using recycled plastic (which comprised 50% of materials).
Tests are scheduled to be carried out in 2017 with a view to re-using hangers and reducing GHG emissions
linked to transport and waste recycling.

7. See page 57.

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TRANSPORTING OUR PRODUCTS


AND ENCOURAGING ECO-MOBILITY
Transport fulfils the economic and social development challenges facing towns and regions, but the ongoing
increase in logistics activities also pushes up fossil fuel consumption and the resulting GHG emissions. In
2013, the World Health Organisation (WHO) ranked air pollution as one of the carcinogens affecting humans,
and in 2016 cited atmospheric pollution as being responsible for the death of 3 million people every year1.
Transport is therefore one of our priority focus areas for action, so we can improve air and water quality and
combat sound pollution, particularly in urban areas.
At Decathlon, we’ve been concentrating on three levers: reducing the distances travelled by articles using an
appropriate global network of warehouses, maximising lorry loads and encouraging multimodal transport
wherever possible.
Our teams are working to bring down CO2 equivalent emissions by 15% per article delivered within Europe
between 2015 and 2020, and achieved an 8% reduction in 2016. This aim fits squarely with a global strategy
that aims to develop alternative transport systems that respect cost/timeframe/availability constraints to
satisfy both our customers and our users.

Decathlon regional supply hub, Nantes.

Transport and mobility in figures *

376 g. CO2 eq.


54.04 m3
7 %
emitted by Decathlon products load factor per lorry between multimodal post-shipment
delivered within Europe, main import warehouses and transport in Europe,
i.e. 8% less than in 2015. distribution warehouses in Europe, compared with 12.10% in 2015.
compared with 53.92m3 in 2015.

* Key figures as of 31 December 2016

1. See www.who.int/mediacentre/news/releases/2016/air-pollution-estimates/fr.

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A SUMMARY OF 2016
• We observed a drop in the quantity of CO2 emitted per
article delivered, which is largely due to improved lorry
load factors (especially for journeys to our most remote
warehouses) and a slight reduction in the percentage of
products delivered by air 2.
• Our B’Twin Village teams launched their first initiatives
designed to improve the site’s access conditions, in
partnership with the City of Lille.
B'Twin Village, Hellemmes (France).

CHANGES IN THE ENVIRONMENTAL IMPACT


OF OUR PRODUCTS DELIVERED TO STORES IN EUROPE
In grammes of CO2 equivalent /article

Production Major import warehouses Distribution


countries to europe to distribution hubs hubs to stores

300 300 300

250 274 250 250


245
232
200 200 200

150 150 150

100 100 100


87
50 50 76 73,7 50 74
59 57

0 0 0
2014 2015 2016 2014 2015 2016 2014 2015 2016

Focus

Introducing CSR criteria


into our marine purchasing policy
Fully supportive of the need to take an active role in sustainable development, and motivated to do so,
our logistics teams incorporated an environmental component in their international marine transport
purchasing policy. They are now requiring major hauliers to notify them of their GHG emissions when transporting
Decathlon products. This stipulation reflects their desire to take action as close to the ground as possible,
by combining economic and environmental issues. This latest requirement will come into force from 2017
and will involve all of our marine transport service providers.

2. This improvement is nevertheless limited, as the total volume of products shipped by air is higher than in 2015.

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STORAGE AND TRANSPORTATION


Our logistics teams continue to adapt to the company's new
strategies and ambitions in order to satisfy our users and
ensure that store deliveries are completed in the best possible
timeframes. This is why their day to day work focuses so
much on reducing the distances our articles travel, and
optimising loads for our various modes of transport. In 2016,
our logistics operations teams worked hard to ensure that
our lorries carried over 14,000 articles, 2% more than in 2015.
This optimisation drive was also applied in order to reduce
the amount of warehouse space we required. 1,352 articles
per cubic metre were shipped in 2016, compared with 1,330
Decathlon warehouse in Lompret (France).
in 2015.
In 2016, Chinese railway infrastructures continued their
expansion. Our local production offices seized this opportunity to route some of Decathlon’s products by
train to warehouses in continental Europe in around twenty days.

ENCOURAGING ECO-MOBILITY
OF PEOPLE
Regulations in France encourage businesses to build an
eco-mobility strategy by creating business travel plans that
endeavour to use less polluting methods of transport for
commuting.
Following a survey 3 carried out in 2015 on accessibility at the
B’Twin Village 4, the site team identified mobility problems for
both our teammates and our customers and users. In 2016,
various actions were launched to improve access conditions:
bus service frequency was increased, pedestrian and cyclist
access was improved and the roads were upgraded by the
City of Lille. To encourage the use of soft and public transport
as opposed to private cars, our teams deployed various
strategies: investment in the right equipment (bike stores,
changing rooms, etc.), information and awareness-raising
campaigns, organising mobility-related events, in-house
competitions and discussion workshops.

Focus

Off to Belgium - in an electric car!


Mobility has become a key issue for our Belgian teammates, with many different solutions emerging during 2016.
An agreement was signed with a service provider to install charging stations for electric cars on all sites.
Teams have also developed their company car scheme for 80 teammates,
who now have a more environmentally responsible selection to choose from 5.
Events are regularly organised by teammates with a keen interest in this subject.

3. Result of the internal survey carried out among teammates from the site, for the period from 9 to 30 January 2015, with 625 teammates
responding.
4. Base camp for Decathlon’s cycling brand, the B’Twin Village is home to different services, a fitness centre, a store and several more
Decathlon brands.
5. Less polluting or electric cars.

STORES AND TRANSPORT 83


RESPONSIBILITY
IN PRODUCTION
2016 SUSTAINABLE DEVELOPMENT REPORT

MAINTAINING LONG-TERM RELATIONS


Decathlon entrusts the production of its sports articles to a panel of
suppliers, organised by production process. Our local production teams,
operating from our production offices, are responsible for day to day
relations with suppliers. Together with our suppliers, we share a desire
to see our products deliver the best possible value for money, along with
several other operating principles:
• a relationship based on mutual respect;
• compliance with our standards and any legislation in force relating to
labour law;
• achieving the very highest quality levels;
• raising price competitiveness through ongoing improvements to work efficiency;
• building a reliable, high-powered supply chain;
• using connected IT systems;
• environmental preservation.
The plethora of manufacturing processes used to make our products means that Decathlon’s supply chain is
extremely complex. Our efforts with regard to manufacturing aim to achieve better traceability, transparency
and ethical thinking within our business practices. By 2023, we hope to be making 80% of our volumes with
100 partner suppliers. In 2016, this number was 31.

Decathlon sub-contracting in figures*

1,213 109 1,644 31 8.5 years


rank 1 rank 2 teammates partner average length
suppliers suppliers in production suppliers of service

suppliers of finished suppliers to our rank 1 supporting suppliers for top 100 suppliers
products and components suppliers, who have on a daily basis. in terms of volumes
with whom we have direct no contractual relations purchased
contractual relations. with Decathlon. by Decathlon.

* Key figures as of 31 December 2016

A SUMMARY OF 2016
• Our production teams were regularly on site to coordinate the ongoing
improvements to industrial organisation (quality, timeframes and
efficiency, etc.).
• A new Code of Conduct aimed at our suppliers will replace the human
responsibility in production charter, in a bid to clearly lay out our
expectations regarding ethics in business and fair practices.
• We continued to develop our strategic partnerships, with 31 partner
suppliers in 2016.

RESPONSIBILITY IN PRODUCTION 85
2016 SUSTAINABLE DEVELOPMENT REPORT

MAP OF PRODUCTION COUNTRIES

With Decathlon
production office

Without production office

African production area: Egypt, Ethiopia, Madagascar, Mauritius, Morocco, Tunisia.


American production area: Brazil, Mexico.
North Asia production area: China, Japan, South Korea, Taiwan.
Southeast Asia production area: Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand, Vietnam.
Southeast Asia production area: Bangladesh, India, Pakistan, Sri Lanka.
Europe production area: Albania, Austria, Belgium, Bosnia, Bulgaria, Croatia, Czech Republic, Finland, France, Georgia,
Germany, Great Britain, Hungary, Italy, Lithuania, Netherlands, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain,
Switzerland, Turkey, Ukraine.
CIS 1 production area: Russia

SUPPLY CHAIN FOR DECATHLON PRODUCTS


Rank 1 : Supplier who has signed an
DESIGN DEVELOPMENT INDUSTRIALISATION PRODUCTION
agreement with a Decathlon group
company to produce or assemble
BRANDED SPORTS R&D PROCESSES PRODUCTION OFFICES SUPPLIERS finished or semi-finished products (via
a manufacturing contract) or to supply
raw materials or components (via a
purchasing contract), receiving purchase
orders and invoicing said company
RANK 3 directly.
Rank 2 : Supplier contributing to
Decathlon’s product value chain, with
RANK 2

direct commercial relations with a rank 1


supplier, with whom they organise the
management of purchase orders and
invoicing.
RANK 1

The Decathlon group retains the option


to help choose or approve this rank 2
supplier, while refraining from intervening
in the commercial and legal relationship
OIL between these rank 1 and rank 2 suppliers.

Commercial relations
Activity

Teams

1. CIS: Commonwealth of Independent States.

86 RESPONSIBILITY IN PRODUCTION
2016 SUSTAINABLE DEVELOPMENT REPORT

Focus

Production team member:


a modular role
Production teams are working hard on a number of areas. They define the required production and investment
capacities that must be achieved in order to manufacture products. They also help suppliers to comply
with Decathlon’s standards in terms of quality 2, timeframes, working conditions 3 and environmental conditions 4,
and oversee their ongoing improvement.

Breakdown of volumes purchased by Decathlon


Decathlon by production area

North Asia: 48.3%


Europe: 17.6%
Southeast Asia: 16.8%
Southwest Asia: 14.2%
Africa: 2.8%
CIS: 0.2%
US: 0.1%

Breakdown of volumes purchased by Decathlon


(by production process, from 1/01 to 31/12)

Textile products (natural fabrics, synthetic fabrics, woven fabrics, yarn to finished product) 42.6%

Footwear products 14.6%

Bike/cycle products 10.8%

Heavy stitching products (tents, backpacks, sleeping bags, balls, etc.) 10.6%

Plastics and Composite products 6.3%

Metal / metallic products (scooters, fitness products, basketball hoops, football goals, etc.) 6.2%

Electronic products 2%

Optical products (sunglasses, swimming goggles, ski goggles, diving masks) 1.5%

Glove products 1.3%

Welded / inflatable products (air beds, rubber rings, armbands, etc.) 1.3%

Nutrition products (sports supplements and nutrition) 1%

Helmet products 0.9%

Chemical and cosmetic products 0.4%

Pyrotechnic products (Solognac hunting equipment) 0.3%

Wedze composite products (ski equipment) 0.2%

2. See page 60.


3. See page 92.
4. See page 99.

RESPONSIBILITY IN PRODUCTION 87
2016 SUSTAINABLE DEVELOPMENT REPORT

AVERAGE LENGTH OF 50 50

SERVICE FOR SUPPLIERS 40


ON OUR PANEL
(TOP 100 SUPPLIERS 30
IN TERMS OF VOLUMES
PURCHASED BY DECATHLON) 22 21
20

In %
10
3 4
0 0
less than 1 to 3 3 to 5 5 to 10 10 to 20 more than
1 year years years years years 20 years

OUR NEW CODE OF CONDUCT


IN PRODUCTION: RETAIN THE BASICS
WHILE INCORPORATING
NEW ISSUES
After analysing the global risks identified over the last
fourteen years in our supply chain, we reviewed our
human responsibility in production charter in 2016
so as to incorporate new international issues and
broaden its remit to include environmental and social
challenges. This work was carried out by retaining
references to our fundamental principles 5 and by
taking into account new audit methods, new risks
and new international standards 6. Our new Code of
Conduct, which we will be rolling out internationally
during 2017, will deliver a strengthened stance on:
• respect for human rights in the workplace (with
the emphasis on promoting decent wages and the
fight against modern slavery);
• hygiene and safety conditions (where building
safety and electrical safety constitute key themes in certain countries);
• environmental management of production sites;
• chemicals management;
• the fight against un-declared outsourcing;
• the fight against corruption;
• the origins and manufacturing conditions of raw materials (including cotton, wool and leather,
among others);
• respect for animal welfare.

5. The universal human rights declaration, the ILO fundamental conventions and the social accountability standard SA 8000.
6. The UN general principles relating to businesses and human rights and the OECD general principles aimed at multinational companies.

88 RESPONSIBILITY IN PRODUCTION
2016 SUSTAINABLE DEVELOPMENT REPORT

“ With this document, we are clearly expressing our expectations pertaining to our current
strategies, as well as those we are keen to develop in the coming months.
Some topics will be dealt with through social and environmental assessments.
The others will bring forth a range of commitments, pilot projects and local initiatives,
enabling us to trial solutions before rolling them out more widely.
Our new Code of Conduct will be deployed at international level during 2017. “

SOUNDOUS HASSOUNI
Leader of the human responsibility in production process.

Furthermore, Decathlon has been a member of the consultative committee 7 since


2014, helping to write the OECD guide on due diligence in the textiles and footwear
industries, which is scheduled for publication some time in 2017.

DOWNLOAD
THE OECD
GUIDE

Focus

Promoting practices that are honest


and fair and uphold integrity
Decathlon has been working to standardise guidelines aimed at detecting and preventing corruption,
in all countries and for all its activities. Reinforcing French and international anti-corruption regulations
has seen the company rally round to support this stance.
On the ground, operational managers are assisted in this aim by the internal audit and legal departments.
A map of corruption risks is under construction with a view to eventual roll-out in 2017.
The aim is to finalise awareness-raising and training programmes, along with tools to fight corruption
in areas where need has been identified, and in the most exposed lines of work.

7. With representatives from national contact points, businesses, the European Commission, multi-stakeholder initiatives, NGOs and trade unions.

RESPONSIBILITY IN PRODUCTION 89
2016 SUSTAINABLE DEVELOPMENT REPORT

Focus

The fight against un-declared


outsourcing
Outsourcing that is not declared by suppliers is difficult to detect. Despite being officially opposed
to this practice, as signified by a contractual clause signed by suppliers, and even though
our teams are regularly present on-site and on the ground, certain suppliers could still use
external service providers to help manufacture our products, without our prior consent.
To combat this, we’ve trained our teams to be able to precisely determine our capacities at key product
development stages, and then during batch production. We conduct regular cross-checking between
real capacities and the number of products delivered, to minimise the risks.

ONGOING IMPROVEMENTS TO OUR


PRODUCTION METHODS THROUGH
OUR COMPANY-OWNED SITES
Decathlon owns 10 production sites, where some
of its articles are manufactured. Our objectives with
these company-owned sites are to take ownership of
production methods and to gradually develop good
manufacturing practices there (people management,
ways to tackle continuous improvement, flows
organisation, etc.) so we can pass the benefits on
to our partners. Our sites are subject to the same
requirements as those we demand of our suppliers.
In 2016, 60% were rated A, B or C against our
assessment criteria.

OUR PROCUREMENT STRATEGIES:


BETWEEN STRATEGIC PARTNERSHIPS AND LOCAL PRODUCTION
“At Decathlon, a partner is an industrial entrepreneur whose vision, values and purpose have much in
common with those of Decathlon. Their vision is implemented by means of an industrial project, in a region
where we have long term plans. Our degree of alignment and level of trust, which have been built together,
motivate them to provide us with a competitive and differential advantage designed to give us complete
exclusivity. Its sense of responsibility and desire for continuous improvement, deeply rooted in its company
culture, are driving it towards operational excellence with maximum autonomy. We have incorporated it into
our internal work flows and delegate it numerous decisions aimed at benefitting our users and customers.”

In 2016, our 31 partners were all at different levels of maturity in terms of this definition, but we've made
some encouraging progress:
• more and more industrial projects are being written collaboratively;
• people management has improved, and there has been an increase in individual and collective skills within
our teams and those of our partners;
• development times have fallen, costs have improved, prices have dropped, and supplies are more reliable
and responsive.

90 RESPONSIBILITY IN PRODUCTION
2016 SUSTAINABLE DEVELOPMENT REPORT

As a result, an increasingly large proportion of our purchases has been allocated to our partner suppliers.
By 2023, we hope to be making 80% of our volumes with 100 partner suppliers.
At the same time, we’re continuing to develop locally-based production, so we can be more responsive when
faced with local market demand, as well as reduce our transport costs and environmental impacts. Our
panel of suppliers and the way we share out our volumes follow on from a whole cost approach that helps
this strategy to succeed.
A balance is achieved between these two strategies, so as to take into consideration global industrial issues
and local contexts.

TURNOVER GENERATED
BY LOCALLY MANUFACTURED DECATHLON PRODUCTS
In %

China 100
Europe
Russia 90%
90 91%
India 89.6%
Brazil
80

70

60

50

40
35%
36%
30 29.8%
25%
28%
22%
20 21.3%
22%

10
9%
4%
7%
0 2.2%
2014 2015 2016

RESPONSIBILITY IN PRODUCTION 91
2016 SUSTAINABLE DEVELOPMENT REPORT

PUTTING PEOPLE FIRST


Decathlon products are made in over 45 countries,
each with varying national regulations and standards
on health and safety and labour laws; and where the
issues identified by intergovernmental bodies are
addressed at different paces. Given this context,
our responsibility is to ensure that, regardless of
the manufacturing location, our working conditions
comply with both current regulations and our own
requirements:
• no children on site;
• no forced labour;
• a safe and healthy working environment;
• no discrimination;
• no abusive disciplinary practices;
• compliance with working hours;
• respect for employees;
• 
internal HR management key in terms of
compliance with our charter.

These have appeared in our Social Charter 1 since 2003, and undergo regular inspections and controls 2. In
2016, 68% of our rank 1 suppliers managed their human risks to an acceptable level 3, a percentage we’re
hoping to increase to 80% by 2019. Furthermore, we’re developing our Charter to adopt the form of a Code
of Conduct that incorporates these new issues 4 and are consequently reviewing our assessment criteria
for eventual roll-out during 2017. Lastly, we’re continuing to help suppliers keen to improve their managerial
practices, so that they can go beyond mere compliance.

Human responsibility in production in figures*

68 % 49% 19 73.4 % 66 %
sustainable
of rank 1 of rank 2 development of assessments of local production
production sites production sites in production were conducted teams
managers

rated A, B or C rated A, B or C conducted the majority of by Decathlon teams, trained up


according to our according to our assessments, assisted i.e. 644 assessments. in this strategy,
assessment criteria. assessment criteria. by 37 assessment officers. i.e. 500 teammates.

* Key figures as of 31 December 2016

1. Social charter based on the universal human rights declaration, the ILO fundamental conventions and the social accountability standard SA 8000.
2. See our SD report FY15 (p. 106-112) for information about our assessment methods, control frequency and decisions in the event of non-compliance.
3. At least a C rating in our scale.
4. See page 88.

92 RESPONSIBILITY IN PRODUCTION
2016 SUSTAINABLE DEVELOPMENT REPORT

A SUMMARY OF 2016
• We helped to improve and standardise practices used
by those in our sector by investing in various different
working groups (OECD, DAEI, etc.).
• Our teams worked together to update our tools in
order to tackle these new challenges.
• Together with Impactt 5, we led a win-win programme
with suppliers keen to do more in the sphere of
working conditions and employee wages.

COMPLIANCE AT PRODUCTION 100

SITES RESPONSIBLE
FOR MANUFACTURING 90

OUR PRODUCTS 84%


80
In % 73%
70 68% 68%
Rank 1 production sites 65%
Rank 2 production sites 60% 60%
60
Our partners’ sites
56%
Company-owned sites 53%
50 49 %

40
2014 2015 2016

Focus

Helping to standardise
social assessment methods
Decathlon has been a member of the consultative committee since 2014, helping to write the OECD guide
on due diligence in the textiles and footwear industries, which is scheduled for publication some time in 2017.
Decathlon is also a member of the working group coordinated by the DAEI
(European and International Affairs Department) within the French Ministry of Labour,
Employment, Professional Training and Social Dialogue. The aim of this working group is to encourage
responsible purchasing practices by instructing parties in the French textile industry.

5. Impactt is a specialist consultancy firm working to improve working conditions and the means to live throughout the world’s supply chains,
with the aim of delivering clear commercial benefits to both ends of the chain. More information: http://impacttlimited.com.

RESPONSIBILITY IN PRODUCTION 93
2016 SUSTAINABLE DEVELOPMENT REPORT

REGULAR INPUT
FROM OUR TEAMS
AT OUR SUPPLIERS' PREMISES
Our teams are regularly on site at our suppliers'
premises:
• on a daily basis: their regular presence on site means
that our production teams can detect risk situations
and trigger an action plan in conjunction with the
supplier. In 2016, 66% of production 6 teams received
training in our human responsibility in production
policy 7 ;
• during assessments: 19 sustainable development
in production managers carried out the majority of
these assessments. Recruited locally, they speak the
country's language and have an excellent grasp of its
culture, which makes their work easier and enhances
their ability to detect local issues. They are continually
training up production teams and some are also given
the task of ensuring that the tools and methods used
are continuously improved. In addition, 37 teammates
(whose jobs are linked to industrial production, and
who have already followed a training course 8) are
voluntarily involved supporting this mission.

In 2016, 73.4%9 of assessments were carried out by our internal teams. The remaining assessments
were conducted by external firms 10, using the same assessment criteria. Regular meetings are organised
between Decathlon teams and those of external firms for the purposes of ensuring compliance with our
requirements.

UPDATED TOOLS
TO FURTHER OUR STRATEGIES
As part of our ongoing efforts to update the Code of Conduct11, sustainable development in production
managers reviewed the 2016 assessment criteria. Consisting of 14 chapters, this assessment framework
is used to evaluate compliance with Decathlon’s requirements, in terms of its sites’ hygiene and safety
conditions12 and how suppliers apply labour law13 .

This update is a participative project, with sustainable development managers offering to handle their
preferred chapter. Once teams have trialled the new assessment criteria on the ground, it will be rolled out
to all production areas in 2017.

6. i.e. 500 people (this training does not involve production roles).


7. See our SD report FY15 for more information about the content of this training course.


8. Internal HRP trainers have successfully completed the theory course in the SA 8000 standard and the associated assessment techniques.
9. i.e. 644 assessments, 31 December 2016.


10. Intertek and SGS.
11. See page 88.
12. Including fire safety and electrical safety.


13. Also includes the promotion of decent wages and the fight against modern slavery.

94 RESPONSIBILITY IN PRODUCTION
2016 SUSTAINABLE DEVELOPMENT REPORT

Interview

Our progress in detecting modern slavery and fighting against it


Candice has been visiting and inspecting suppliers in Taiwan for a number of years, as both a human
responsibility in production assessor and a sustainable development in production manager.
She has observed a heightened risk of forced labour, with migrant workers employed on production sites.
She therefore advised updating this particular chapter.

 ormally your role as sustainable development in production manager is carried out on a more local
N
scale. How did you tackle this international issue?
I worked closely alongside Rahel Damamme (external monitoring manager) and Soundous Hassouni
(in charge of the human responsibility in production process). The diversity of our roles was a source of
enrichment for both of us. Each member of the sustainable development in production team found a way
to take part, by sharing new information, NGO networks, etc.
Given this context, how did you find collaborating with the external consultant?
I found that the work done by certain NGOs was often mentioned. So I studied their websites, their projects
and their aims before then getting in touch. After selecting the senior consultant, I organised a face-to-face
meeting so that they could learn about Decathlon. Once we’d established a sense of trust, we shared more
detailed information with them and they were able to advise us.
What are the next challenges?
Our aim is to ensure that modern slavery is fully eradicated from Decathlon’s supply chain. We therefore
need strategies that can be implemented in different countries, to tackle modern slavery in all its forms.
One of the keys is closer relationships with external experts and organisations, so that we can work
together to bring about definitive changes to this situation on a global scale.

CANDICE LEE
Sustainable development leader in Taiwan .

Focus

The GSCP equivalent process:


a critical review to improve our tools
Decathlon belongs to the working group coordinated by the European and International Affairs department14,
alongside different organisations: the national contact point for the OECD (the French CSR platform),
NGOs and other private businesses.
The aim of this working group is to encourage responsible purchasing practices by instructing parties in the French
textile industry, which is why Decathlon has agreed to instigate the equivalent process of the GSCP15.
Led by a sustainable development in production manager, this strategy underscores the strengths
of our standards and methods, as well as the areas where we need to improve.
The conclusions will be used to make any necessary modifications and update our tools.
Decathlon will share the results from the equivalent process with working group members,
to illustrate its commitment to continuously improving its practices.

14. For more information, see http://social-sante.gouv.fr/ministere/organisation/directions/article/daei-delegation-aux-affaires-europeennes


et-internationales.
15. Global Social Compliance Program, see www.theconsumergoodsforum.com/gscp-home.

RESPONSIBILITY IN PRODUCTION 95
2016 SUSTAINABLE DEVELOPMENT REPORT

LISTENING TO EXTERNAL BODIES


IN ORDER TO IMPROVE
In June 2016, various organisations (consumer associations, NGOs, etc.) asked our teams about the working
conditions noted at two of our suppliers in Cambodia16, on the basis of documented observations. In this
situation, our teams struck up a dialogue, as these organisations are complementary to our systems and
help us identify areas for improvement. Among the observations noted were irregularities in employment
contract renewals at one of our suppliers (who kept renewing six-month temporary contracts on an
ongoing basis), as well as un-declared outsourcing at another of our suppliers. As soon as they are notified,
Decathlon’s sustainable development in production managers and Cambodian teams come together to find
solutions. One of the first solutions involved stepping up the presence of Decathlon’s teams, by increasing
the frequency of these assessments (every six months as opposed to every two years).
To put a stop to the practice of rolling over temporary contracts, teams now check up on this during their
assessments and, if observed, the supplier is awarded a D rating, so that the problem is resolved within 12
months. This latest point of consideration has also been incorporated into the new assessment criteria,
which will be rolled out at international level in 2017.
Regarded un-declared outsourcing, our local production teams have been shown how to detect this, and
meetings with each general manager from factories have been held to remind them of our expectations, and
of our sanctions in the event of non-compliance.
Our teams will pursue solutions to resolve these situations in the coming months, while continuing to listen
to organisations who are on the alert.

GOING BEYOND MERE COMPLIANCE:


A WIN-WIN STRATEGY WITH OUR WILLING SUPPLIERS
Since 2014, we have been taking part in the “Together for a Sustainable Business” scheme run by Impactt 17,
so as to join forces with willing suppliers and their employees to co-build a new work organisation and HR
structure that focus on motivation and communication, and more caring management that involves its
employees more in the company plan. We use the lessons learned from this programme to devise our own
method, based on three objectives: more efficient production for suppliers, committed, motivated and better
paid employees, and stable business partners for Decathlon.
After a successful pilot project in Bangladesh in 2015, we extended our programme to two suppliers, in China
and India, by adapting the motivation factors to these two very different contexts. In China, for example, we
placed greater emphasis on reducing staff turnover and absenteeism.
We expect to see some quantifiable results in 2017 for these new projects, which will form the basis for
defining our own methodology.

16. In this country, Decathlon now works with six rank 1 suppliers and employs around forty teammates in production.
17. Id. note 5.

96 RESPONSIBILITY IN PRODUCTION
2016 SUSTAINABLE DEVELOPMENT REPORT

Interview

Putting people at the heart of our supplier issues:


the case of Bangladesh
Following the conclusive results from the “Together for a sustainable business” scheme18,
our production teams decided to continue – independently – the project launched with the help of Impactt.
Erzulia Kalulu, production team manager at Dhaka, together with her team, tells us how they worked
with supplier AJ Super to shore up the HR structure.

Why did you continue the “Benefits for Business and Workers” programme with this supplier?
Throughout the work done by the Impactt teams, I was impressed by how the site managers got involved
and by their motivation to improve human relations in the factory. This spurred me on to push our
collaboration even further, and launch a global continuous improvement project focusing on six key areas,
including well-being at work.
What role do suppliers and workers play in this project?
The project was co-written with the teams at AJ Super. Together, we decided on our project objectives,
performance indicators and each person’s individual responsibilities. The management committee
consists of employees from both AJ Super and Decathlon.
What have you done to boost motivation and well-being at work?
Workers now have job description sheets and understand the options open to them in terms of career
progression with their employer. We’ve also improved attendance at work by designing an incentive
scheme. Lastly, we’ve organised sessions where teams can share and come together over various sports
activities. We’ve also instilled a sense of competition and recognition by awarding a best worker prize.

ERZULIA KALULU
Production teams manager in Dhaka.

HOW OUR PANEL


PERFORMED
68% of rank 1 production sites involved in our programme scored either A, B or C on performance (no
change from 2015); 47% rank 2 production sites achieved these ratings (a 7% fall compared with 2015). A
total of 877 assessments were conducted in 2016.
Although we are aiming for 80% of rank 1 sites to achieve A, B or C ratings by 2019, we can see that while
some of our panel have improved, others are deteriorating, because efforts made as part of improvement
action plans are not sufficiently sustainable. We therefore continued to observe the same failings in
subsequent assessments19.
In 2017, our teams in charge of the HRP process will reinforce their standards expected of suppliers in terms
of action plan sustainability, and assessor training will also emphasise this point.

18. See our SD report FY15 page 111.


19. Id. note 2.

RESPONSIBILITY IN PRODUCTION 97
In %

% D-E
% A-B-C

98 RESPONSIBILITY IN PRODUCTION
Le
ga Pr Ch

0
10
20
30
40
50
60
70
80
90
l au ot
e
ild
la 100
th ct bo
or io Fo
is n rc ur

2 %
at of ed
io vu
ns ln la
an er bo
d ab ur

2 %
pe le
rio w
di or
c ke
rs
in

3 %
sp
Ri ec
sk tio
m ns
Ch a
2016 SUSTAINABLE DEVELOPMENT REPORT

15 %
em na
ic g em
al
m en
an t
ag
em 21 %
en
W t
19 %
Fi
or re
ki sa
ng fe
en ty
24 %

vir
on
OBSERVED AMONG OUR SUPPLIERS, BY THEME

m
BREAKDOWN OF CAUSES OF NON-COMPLIANCE

Su
bc en
t
9 %

Di on
sc tra
ip c
lin tin
ar g
0 %

yp
ra
ct
W ic
or es
3 %

ki
ng
ho
W ur
So ag s
e
18 %

ci co
al nt
co ro
m HR ls
8 %

pl p
ia ra
nc
e ctic
m es
7 %

an
ag
em
en
t
2 %
2016 SUSTAINABLE DEVELOPMENT REPORT

ROLLING OUT
ENVIRONMENTAL MANAGEMENT
Although a precious resource, water is unequally protected throughout the world. According to the UN, 40%
of the population suffer from a lack of water, and over 80% of waste water generated by human activities are
released into rivers and oceans untreated 1. Poor management of this resource constitutes a crucial issue
for sustainable development.
As Decathlon pursues its global expansion and manufactures increasing numbers of articles, how can we
reduce the pollution caused by their production? Our teams have been supporting suppliers since 2009, their
first objective being to reduce the risk of water, air and soil contamination for people living near factories.
Their second objective is to maintain clean natural spaces, so that our users can continue to enjoy their
favourite sports in a preserved environment.
Decathlon has made water one of its priorities ever since 2014, and has extended its project to other
environmental issues in production so that by 2019 85% of suppliers receive an A, B or C rating (according
to our audit criteria) with regard to the risk they pose of polluting the water, air and soil.

Environmental management in figures*

79 % 57% 66 3 400


of production of production
factories teammates suppliers
sites sites

comply with our comply with our have been assessed on were responsible will be involved
specifications relating specifications relating the quality of their waste for environmental by 2018.
to waste water. to hazardous waste water and hazardous waste management worldwide.
management. since 2014, out of
the 87 concerned.
* Key figures as of 31 December 2016

1. See www.un.org/sustainabledevelopment/fr/water-and-sanitation .

RESPONSIBILITY IN PRODUCTION 99
2016 SUSTAINABLE DEVELOPMENT REPORT

A SUMMARY OF 2016
• We expanded our specifications to include
verifying that hazardous waste is properly
managed (including their storage), as well as the
sludge from waste water treatment.
• We strengthened our environmental project in
order to widen the support offered to our suppliers
on subjects other than water, encouraging them to
also reduce their air and soil pollution. We aim to
roll this out everywhere by 2017.

OUR PRODUCTION SITES


ENVIRONMENTAL MANAGEMENT PROJECT
The aim of our project is to minimise the risks linked to production at Decathlon:
• water pollution: ensure that discharged water does not affect local residents;
• soil pollution: ensure that hazardous waste is not leached by rain and does not damage water tables used
locally for drinking water purposes;
• air pollution: ensure that we do not release any hazardous particles into the air that could be harmful to
local residents.

It is therefore a global project that includes suppliers using the following industrial processes: dyeing,
washing, printing, tanning, metallic surface treatments and metallic paints.
By 2018, 400 suppliers will be involved in this project.

100 RESPONSIBILITY IN PRODUCTION


2016 SUSTAINABLE DEVELOPMENT REPORT

“To implement this project, we first need to conduct a diagnostic of our current situation.
To do this, we’ll be using the services of SGS, who will mobilise a network of 50 auditors
across 21 countries. We’ve also enlisted the support of three teammates,
who will be responsible for managing the project internally, and who have been allocated
to the following areas: Europe/Africa, Southeast Asia, North Asia. Once it has been
fully rolled out, we will need eight people with the requisite technical expertise to support
our suppliers for a two-year period. They will outline the project objective and pass
on their know-how so that our suppliers can operate autonomously."

JÉRÉMIE PIOLET
Production sites environmental management manager.

SUPPORTING PROGRESS
In 2015, teams identified good practices with regard to water quality management 2, and set their minimum
requirements that related to an auditing framework and a rating system. These tools were modified in 2016
to include prevention of soil and air pollution.

A Exemplary: Anticipation of risks.

B Efficient systems: Effective management of risks.

C Consolidation: Risk management under construction.

D Basic: Risk of pollution within 6 months.

E Unacceptable: Pollution confirmed, posing a genuine danger to the health of local people.

If results do not meet the standards set (score E), the supplier has 6 months to identify the cause and correct
the problem, with the help of our on-site teams. If the supplier is new, we refrain from going into business
with them until compliance is achieved.

Focus

Our "waste water” specifications are changing


Our specifications cover the main parameters in terms of water pollution monitoring. From 2017,
these specifications will draw on international waste water quality standards defined by the World Bank 3.
We are also monitoring the progress made by the ZDHC (Zero Discharge of Hazardous Chemicals) working group,
whose work provides a benchmark for certain dangerous substances.
We will be studying the feasibility of integrating these substances into our specifications in 2017.

2. See our SD report FY15 page 115 for information on our methods for controlling the quality of industrial waste water.
3. World Bank Group Environmental, Health and Safety Guidelines, see www.ifc.org/ehsguidelines.

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INDICATORS AND
METHODOLOGY
2016 SUSTAINABLE DEVELOPMENT REPORT

OUR PERFORMANCE INDICATORS

CHALLENGES AND STRATEGIES

Company facts and figures 2015 2016

Turnover € 9.1 billion € 9.97 billion

Growth in turnover n/n-1 up 11.2% up 9.5%

35% France 33% France


Breakdown of turnover France/International
65% International 67% International

Quantities of products sold 944,199,000 1 053,937,000

Number of Decathlon retail outlets in the world 1,021 1,176

Number of new retail outlets n/n+1 + 140 + 164

Number of distribution countries 23 (Note 1) 28

Number of warehouses and logistics platforms 45 45

Number of branded sports (Passion Brands) 20 50

Number of production countries

• with physical presence of Decathlon teams 22 22

• with no Decathlon teams physically present n/d 27

Number of Decathlon production offices 41 39

Rank 1 suppliers Rank 1 suppliers


(Finished products): 839 (Finished Products & Components):
Number of suppliers for Decathlon products
Rank 1 suppliers 1,213
(Components): 587 Rank 2 suppliers: 109

Number of teammates responsible for maintaining


1,546 1,644
and coordinating relations with subcontractors

Number of Decathlon production facilities 10 10

Resources allocated to the prevention of environmental


0 0
risks and pollution

Methodological notes SDR2016:


Note 1: the 2015 data was updated by removing distribution countries with franchised stores.

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Climate change  2015 2016

Greenhouse gas emissions

Greenhouse gas emissions in tonnes of C02 equivalent


6,188,000 T C02 eq.
emitted by scope 7,057,000 T C02 eq.
(Note 2)
(from 1/01 to 31/12)
• Scope 1 16,395 T C02 eq. 16,002 T C02 eq.
• Scope 2 143,227 T C02 eq. 165,717 T C02 eq.
• Scope 3 6,028,351 T C02 eq. 6,875,000 T C02 eq.
Breakdown of greenhouse gas emissions
by activity
(from 1/01 to 31/12)

71%
71%
(63% for Decathlon products,
• Product (62% for Decathlon products,
8% for other international
9% for AMI products)
brand products [AMI])
• Customer travel 17% 18%
• Product transportation 5% 4%
• Construction and Operation of sites 5% 5%
• Teammate travel 2% 2%

Methodological notes SDR2016:

Note 2: These perimeters correspond to scopes 1,2 and 3 in the GHG Protocol method. It should be noted that the figures used in the 2015 global report
and the 2016 global report are given to the nearest thousandth.
We reviewed the previous greenhouse gas emissions report, as the impact of sites opened after 1 January 2015 had not been taken into account for the 2015
financial year. For the 2016 financial year, this impact was taken into account, with the result that 2015 emissions were recalculated to incorporate this impact.
As product impact is predominant, this adjustment had little effect on the global distribution. Product impact was also updated, as new product impact modelling
was conducted in 2016. This was used to refine our product impact results, and explains why the impact of scope 3 increased.
Furthermore, scopes 1 and 2 in the previous 2015 report fell, due to updates in natural gas and electricity consumption. Lastly, Italy's electricity emission factor
was modified.

PEOPLE AND MANAGEMENT

Employment 2015 2016

Total personnel and breakdown of employees by gender, age and geographical area. 

Total personnel
World: 71,707 World: 78,267 (Note 3)
(situation as of 31/12)

France: 22,501 (28,7%)


France: 21,522 (30%) China: 15,153 (19,4%)
Employee numbers Country / Total
Spain: 11,965 (16,7%) Spain: 12,148 (15,5%)
(situation as of 31/12)
Italy: 7,650 (10,7%) Italy: 8,227 (10,51%)
Belgium: 2,578 (3,29%)
Workforce by gender
(situation as of 31/12)
• Women 46% 49%
• Men 54% 51%
Breakdown of employees by age
(situation as of 31/12)
• under 20 5.6% 3.90%
• 20 to 29 65.8% 65.62%
• 30 to 39 20.8% 21.79%
• 40 to 49 6.4% 6.91%
• 50 and over 1.4% 1.78%

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Employment 2015 2016

Breakdown of employees worldwide


(situation as of 31/12)
• Europe 76.3% 71.38%
• Turkey 1.3% 0.93%
• Asia excluding China & Taiwan 1.2% 1.05%
• China & Taiwan 12.3% 20.18%
• Russia 3.5% 2.22%
• Brazil 2% 1.47%
• India 2.7% 2.28%
• Africa 0.7% 0.5%
Breakdown of employees by activity
(situation as of 31/12)
• Business and services 78.2% 76.2%
• Logistics 11.1% 11.0%
• Design/production 5.3% 6.07%
• Support activities 5.4% 6.7%

Methodological notes SDR2016:


Note 3: this indicator takes into account teammates on permanent contracts and non-permanent contracts and those on internships.

Recruitment and redundancy

Employees hired on permanent contracts


World:16,722 World:13,114
(from 1/01 to 31/12)

France 3,636 France 4,303


Employees hired on permanent contracts / country
Spain 408 Belgium 217 - Spain 270
(from 1/01 to 31/12)
Italy 661 Italy 555 - China 3,691

France 30,305 France 27,382


Employees hired on temporary contracts / country
Spain 12,899 Belgium 942 - Spain 11,883
(from 1/01 to 31/12)
Italy 3,690 Italy 2,163 - China 5,506

France 33,941 France 31,685


Number of employees recruited overall / country
Spain 13,307 Belgium 1,159 - Spain 12,153
(from 1/01 to 31/12)
Italy 4,351 Italy 2,718 - China 9,197

Number of departures (permanent contracts) France 3,519 France 3,711


/ country Spain 1,057 Belgium 536 - Spain 1,429
(from 1/01 to 31/12) Italy 422 Italy 508 - China 2,756

Number of resignations (permanent contracts) France 2,816 France 3,053


/ country Spain 907 Belgium 474 - Spain 850
(from 1/01 to 31/12) Italy 345 Italy 432 - China 2,654

Number of redundancies (permanent contracts) France 384 France 409


/ country Spain 69 Belgium 61 - Spain 99
(from 1/01 to 31/12) Italy 40 Italy 44 - China102

Number of retirements (permanent contracts) France 10 France 12


/ country Spain 0 Belgium 0 - Spain 0
(from 1/01 to 31/12) Italy 0 Italy 0 - China 0

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Recruitment and redundancy 

France: 21%
(26.5% for retail activities
and 11% for logistics activities)
France 20.96%
Spain: 17.9%
Rate of turnover for permanent personnel Spain 12%
(19% for retail activities
(from 1/01 to 31/12) Italy 8.58%
and 17% for logistics activities)
China 38.79%
Italy: 7% (Note 4)
(.3% for retail activities
and 1.54% for logistics activities)

Methodological notes SDR2016:

Note 4: this indicator takes into account the total number of departures reducing the average monthly workforce.
The turnover rate can be explained by both the significant seasonality of our activities and our desire to help students finance their studies by working at Decathlon.
It should be noted that the rate for Italy excludes production activity and that no data is available for Belgium

Pay and pay trends

World payroll
€ 1,722,000,000 € 1,793,615,773
(from 1/01 to 31/12)
% of world payroll/turnover
18.9% 18%
(from 1/01 to 31/12)

Organisation of work  2015 2016

Organising working time

World : 70.6%
World: 76.97% (i.e. 55,299 teammates)
(i.e. 55,191 teammates)
% of employees on permanent contracts % France: 82% (18,422 teammates)
(situation as of 31/12) % France: 80% (17,254 teammates) % Belgium: 60% (1,551 teammates)
% Spain: 58% (6,906 teammates) % Spain: 59% (7,177 teammates)
% Italy: 84% (6,282 teammates) % Italy: 73% (6,026 teammates)
% China: 47%(7,157 teammates)
France 10,256 France 10,944
Permanent contract employees working full-time
Spain 1,519 Belgium 1,036 - Spain 2,062
/ country (situation as of 31/12)
Italy 2,261 Italy 1,719 - China 7,157
France 6,998 France 7,478
Permanent contract employees working part-time
Spain 5,387 Belgium 515 - Spain 5,115
/ country (situation as of 31/12)
Italy 4,021 Italy 4,307 - China 0
France 41% France 40,6%
Rate of employees working part-time
Spain 78% Belgium 33,2% - Spain 71,3%
/ total permanent personnel (situation as of 31/12)
Italy 64% Italy 52,3% - China 0%

Absenteeism

France: 3.27%
(4.51% for retail activities
and 2.88% for logistics activities) France 3.18%
Absenteeism rate for employees on permanent Spain: 3.9%
contracts (number of hours not worked because Spain 2.90%
(3.3% for retail activities
of absenteeism/number of hours worked in theory)
and 4.59% for logistics activities)
(from 1/01 to 31/12) Italiy 5.17%
Italy: 5,.41% for retail activities, (Note 5)
6.55% for logistics activities
and 1.26% for production activities

Methodological notes SDR2016:


Note 5: no information was obtained from China or Belgium for this indicator.
For Italy, the indicator does not take production activities into account.

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Employee relations 2015 2016

Organising employee dialogue

France 12 - Spain 2 France 18 - Belgium 1


Italy 0 - China 0 Spain 0 - Italy 0 - China 0
Overview of collective agreements
cf table p.121 and p.122 of Sustainable Cf table below from the Sustainable
Development Report 2015 Development Report 2016

Agreements signed in 2016 in France

Decathlon puts people at the heart of its development. The business creates the right conditions for permanent,
constructive and transparent dialogue with employees and employee representative bodies. Relations with representative
bodies are established within a regulatory framework specific to each country, embodying a determination to encourage
decision-making that is as close to the ground as possible.
The table shows the agreements signed in France in 2016. It does not include agreements signed in previous years and
that are still in force (1).

Multi-themed agreements

Country Company or area concerned Title of agreement

FR LOGISTICS Annual mandatory negotiation report (1) 2016 from 22/01


FR DECATHLON SAS Annual mandatory negotiation agreement report (1) 2016 from 01/2016
FR DECATHLON SAS Amendment to employee incentive agreement from 01/2016
FR DECATHLON SA Annual mandatory negotiation report (1) 2016 from 26/01
FR DECATHLON SA Amendment to employee incentive agreement from 01/2016

Agreements governing organisation and working hours

Country Company or area concerned Title of agreement

FR DECATHLON SAS Agreement governing guarantees for Sunday working from 12/2016
FR DECATHLON SAS Agreement governing managers’ right to disconnect from 12/2016

Agreements relating to diversity

Country Company or area concerned Title of agreement

FR LOGISTICS Contract governing 2016 – 2019 generation from 30/9


FR DECATHLON SAS Contract governing 2016 – 2019 generation from 30/9
DECATHLON SAS
FR Agreement governing people with disabilities from 15/12/2016
DECATHLON SA LOGISTICS
FR DECATHLON SA Contract governing 2016 – 2019 generation from 30/9
Group agreement governing the hiring of people with disabilities
FR DECATHLON SA
2017 – 2019 from 15/12

Agreements relating to social dialogue

Country Company or area concerned Title of agreement

FR LOGISTICS Agreement governing trade union law from 01/07


FR DECATHLON SAS Agreement governing term extension from 05/2016
FR DECATHLON SAS Agreement governing the duration of elected members’ terms from 01/2016
FR DECATHLON SAS Agreement governing the number of employee representative colleges from 05/2016
FR DECATHLON SAS Agreement on works council electoral protocols from 05/2016
FR DECATHLON SAS Agreement on works council electoral protocols from 05/2016

(1) A
 nnual mandatory negotiations are obligatory in France.
They focus on wages, organisation of work and of working hours, etc.

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2016 SUSTAINABLE DEVELOPMENT REPORT

Health and Safety  2015 2016

Overview of agreements signed with unions and employee representatives


as regards occupational health and safety 

France 8 France 0
Overview of agreements signed during the year
Spain 0 Spain 0 - Belgium 0
as regards occupational health and safety
Italy 0 - China 0 Italy 0 - China 0

Accidents at work

% of people who responded


“yes, very” or “yes, quite” to the question:
93% 93% (Note 6)
"My physical safety at work is protected.",
in the Decathlon Team Barometer survey
France 1,120
France 988
Number of accidents at work leading to a stoppage Spain 385 - Belgium 128
Spain 431
(from 1/01 to 31/12) Italy 179
Italy 163
(Note 7)

Methodological notes SDR2016:

Note 6: Result from the Decathlon Team Barometer survey carried out among Decathlon teammates in September 2016, from a total of 51 780 respondents.
The 2015 survey was conducted in September 2015 with 47 130 teammates responding
Note 7: For France: in 2015, only lost-time accidents at work were included, whereas for 2016 accidents at work both with and without lost time were included and
reported.
For Italy: only lost-time accidents at work were included.
It should be noted that it was decided to exclude China's data; a more detailed definition of the "accident at work" indicator is required, along with a better
understanding of it by local teams.

Training  2015 2016

Total number of training hours  

% of payroll allocated to training plan in France


n/a 3.86% (Note 8)
(from 1/01 to 31/12)
Number of employees who have taken at least 11,588
1 e-learning course (i.e. 1,758 coaching 10,872
(from 1/01 to 31/12) and 9,830 training courses)
Total number of face-to-face training hours
1,828,780 1,338,257 (Note 9)
(from 1/01 to 31/12)
Total number of e-learning training hours
n/a 179,305 (Note 10)
(from 1/01 to 31/12)
Average amount of training delivered per teammates
34,850 34,273 (Note 10)
(from 1/01 to 31/12)
2 year diploma: 5 graduates
Number of teammates who have taken training courses 3 management science graduates / 17 studying Degree: 2 graduates
leading to a qualification (UP Programme) and 1 class of 7 Masters in business / 1 studying Vocational qualification
(from 1/01 to 31/12) management students certificate: 29 studying
(Note 11)
Number of teammates who have taken training courses
leading to a qualification (HOPE Programme) 71 24 (Note 12)
(from 1/01 to 31/12)

Methodological notes SDR2016:

Note 8: The total payroll amount devoted to training was 3.86% (€11,247,911), which is higher than our legal obligations.
Note 9: It should be noted that in 2015 the total number of training hours in 2015 only considered face-to-face training hours (MyProgress, Decathlon Exchanges),
and did not take into account e-learning training hours.
The 2016 result for this indicator can be explained by the following factors:
- the growing use of e-learning as a replacement for face-to-face training;
- more reliable data regarding the number of training hours in France and Spain, by cross-referencing data for training tools with that of payroll management tools
(SAP).
Note 10: the total number of training hours in 2016 for e-learning took into account e-learning training hours (theoretical hours) with the MYLO tool.
In 2016, 11,781 e-learning training modules were available at world level for Decathlon teammates
Note 11: UP Programme => training leading to a qualification, offered by Decathlon and its partners who validate the professional experience of their teammates.
Note 12: HOPE Programme => an internal training scheme leading to an MBA Corporate type qualification, in partnership with the IESEG school.

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Equality of treatment  2015 2016

Measures implemented to promote gender equality 

54% Men - 46% Women 51% Men - 49% Women


world total, i.e.: world total, i.e.:

Europe M53% W47% Europe M51% W49%


France M55% W45% France M53.8% W46.2%
Breakdown of employees by gender
Russia M47% W53% Russia M52.6% W47.4%
(situation as of 31/12)
China M50% W50% China M47.4% W52.6%
Asia excl. China M54% W46% Asia excl. China M48.7% W51.3%
Africa M66% W34% Africa M59.1% W40.9%
Brazil M64% W36% Brazil M61.7% W38.3%
India M85% W15% India M82.5% W17.5%
Number of women managers
3,898 4,096 (Note 13)
(situation as of 31/12)

Measures implemented to promote the employment and integration of those with disabilities

France 3.56% France 3.7%


Rate of people with recognised disabilities
Spain 2.3% Spain 2% - Italy 2.92%
(situation as of 31/12)
Italy 3.23% (Note 14)
Number of Mission Handicap accredited “advisor”
France 148 France 178 (Note 15)
(situation as of 31/12)

Anti-discrimination policy

Number of nationalities working within the business


94 93
(situation as of 31/12)
% of seniors (people aged 55 and over / total personnel)
0.5% 0.52% (Note 16)
(situation as of 31/12)

Methodological notes SDR2016:


Note 13: Person with hierarchical responsibility for at least 1 person. This figure is derived from the MyIdentity tool and not from payroll systems.
Decathlon numbered some 4,096 female managers in 2016, i.e. 34.65% of the business' total managers in 2016.
(In 2015, the 3 898 female managers represented 33% of the business’ total managers).
Note 14: No data for this indicator is available for China or Belgium.
Note 15: New organisation in 2016, with the creation of a Quality of Life at Work team, which officially identified ambassadors leading the disability mission,
whose role is to coordinate teammates tasked to work in this area..
Note 16: 0.52% of seniors in 2016, i.e. 407 teammates aged 55 and over, across the whole business.

Decathlon Team Barometer survey findings


2015 2016
(excluding article 225)

% of employees who participated in the Decathlon


83% 85% (Note 17)
Team Barometer survey
% of people who responded
“yes, very” or “yes, quite” to the question:
• "My overall pay is consistent with my performance and responsibilities" 56% 59%
• "I can have coaching and exchange with my manager" 84% 86%
• “I can express my thoughts and people listen" 91% 92%
• "I am happy to go to work" 90% 91%
• "I am proud and happy to work for Decathlon" 93% 94%
• "I trust my manager and my manager trusts me" 90% 88%
• "My physical safety at work is protected" 93% 93%

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Decathlon Team Barometer survey findings


2015 2016
(excluding article 225)

% of people who responded


“yes, very” or “yes, quite” to the question: :
• "Responsibility means development" 85% 88%
• "I frequently practise my sport” 75% 77%
• "We do sport and celebrate our victories together" 70% 72%

Methodological notes SDR2016:


Note 17: Result from the Decathlon Team Barometer survey carried out among Decathlon teammates in September 2016, from a total of 51 780 respondents.
NB:
- The survey is based on sending a unique link per team that is not correlated to teammates' ID. As a result, technically an employee may either not reply, or reply
several times to the questionnaire using the link sent. This is a percentage of respondents and not a percentage of employees.
The 2015 survey was conducted in September 2015 with 47 130 teammates responding.
- The “Decathlon Teammates Barometer” covers a less comprehensive scope than the CSR scope as defined in the methodological note; however some countries and
some subsidiaries excluded from the CSR scope are included in the DTB scope

Information concerning the employee


2015 2016
shareholder scheme

% of capital owned by shareholding employees


11.71% 11.71%
(situation as of 31/12)
% of shareholding employees
50.40% 50.74%
(situation as of 31/12)
Number of shareholding employees
36,171 38,547 (Note 18)
(situation as of 31/12)
Number of countries involved in the employee
23 25 (Note 19)
shareholder scheme (situation as of 31/12)

Methodological notes SDR2016:


Note 18: Currently, there is no shareholder scheme in India and Vietnam. By way of compensation, local teammates receive a bonus corresponding to
the shareholder scheme, which is not a shareholder scheme in the strictest sense of the word.
Both of these countries were excluded from the data collection in 2016 compared with the shareholding data from 2015, when they had been included.
Note 19: Belgium - Brazil - Bulgaria - Cambodia - China – Czech Republic – France - Germany - Hungary - Italy - Japan - Morocco - Netherlands - Poland - Portugal -
Romania - Russia - Singapore - South Korea - Spain - Sri Lanka - Taiwan – Thailand - Turkey – UK

Partnerships and sponsorships 2015 2016

Number of projects validated by


the Decathlon Foundation 33 42
(from 1/01 to 31/12)
Number of beneficiaries of Decathlon Foundation
51,359 46,371 (Note 20)
projects (from 1/01 to 31/12)
Number of countries concerned by
9 7
Decathlon Foundation (from 1/01 to 31/12)

Methodological notes SDR2016:


Note 20: Beneficiary is someone in a vulnerable situation or with a disability and who benefits directly from the work done by our Foundation projects, i.e. playing
sport, having access to facilities and sports equipment, etc. These actions mean that these beneficiaries are supported to improve their social integration and
employability.

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PRODUCTS AND SERVICES

Consumption of raw materials and measures undertaken to improve their efficiency of use

% of Product Engineers having conducted at least 50.16%


1 environmental assessment that has been verified 33.85%
(i.e. 161 teammates )
and validated by an eco-design leader (i.e. 110 teammates)
(situation as of 31/12)
(Note 21)

Autumn/Winter Season 2015: 53.20% Autumn/Winter Season 2016: 52.92%


(i.e. 2,347 products out of (i.e. 2,562 products out of
4,412 products designed) 4,841 products designed)
% of Passion brands having undergone
an environmental assessment
Spring/Summer Season 2016: 47.07% Spring/Summer Season 2016: 53,78%
(situation as of 31/12)
(i.e. 1,927 products out of (i.e. 2,150 products out of
4,094 products designed) 3,998 products designed)
(Note 22)
Spring/Summer Season 2016: 7.9%
(i.e. 331 products out of
Spring/Summer Season : 0.38% 4,176 products designed)
% of Passion brand products with the ABCDE (15 products out of 3,945)
environmental labelling available on the internet
Autumn/Winter Season 2015 : 5.98% Autumn/Winter Season 2016: 8,7%
(situation as of 31/12)
(264 products out of 4,412) (i.e. 420 products out of
4,841 products designed)
(Note 23)
% of cotton used for Decathlon's Passion brand 14.44%
products that are derived from sustainable sources 10.6% equivalent to 5,255,38 tonnes
(situation as of 31/12) (Note 24)

Methodological notes SDR2016:

Note 21: Please note the target of 85% of IP trained for January 2018
Note 22: This indicator focuses on Decathlon products concerned by the following manufacturing processes: clothing, heavy stitching (textile-based materials,
e.g. backpacks, tents, sleeping bags, balls, etc.) and footwear. Decathlon products made using plastic, composite, metal, optic, electronic and agrochemical
manufacturing processes have again been excluded from the scope in 2016.
NB: the target for this indicator: 90% of textile products, 50% of heavy stitching products and 60% of footwear with environmental assessments for the Autumn/Winter
2017 and Spring/Summer 2018 collections
Note 23: This indicator focuses on Decathlon products concerned by the following manufacturing processes: clothing, heavy stitching (textile-based materials,
e.g. backpacks, tents, sleeping bags, balls, etc.) and footwear. Decathlon products made using plastic, composite, metal, optic, electronic and agrochemical
manufacturing processes have again been excluded from the scope in 2016.
In 2016, this indicator referred to France and will be gradually extended in terms of the scope covered over the coming years.
NB: the target for this indicator: all products (textiles, heavy stitching and footwear) to have eco-labelling in 2019
Note 24: for 2016, this indicator was calculated using the tonnage of organic cotton, BCI cotton and recycled cotton (the indicator does not take towels into account).
The calculation methodology changed in 2016 to include BCI cotton, which means that the data is no longer comparable.
The 2020 target for this indicator: All cotton used for Decathlon products will be derived from sustainable resources in 2020.
Furthermore, we also incorporated India’s figures in 2016, a country with a higher returns rate than the group average.The 2016 target was fixed at 1125 ppm.

Fair Practices   2015 2016

Measures taken to enhance consumer health and safety 

Passion brand products customer returns 1.267 PPM


1.158 PPM
(from 1/01 to 31/12) (Note 25)
Average product rating for Passion brand products 4.31 sur 5
4.23 sur 5
(from 1/01 to 31/12) (Note 26)
Average product rating for Passion brand products
4.21 sur 5
presented at the Decathlon Innovation Awards 4.27 sur 5
(Note 27)
(from 1/01 to 31/12)
% of users satisfied with Decathlon products 87%
n/a
(from 1/01 to 31/12) (Note 28)

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Fair Practices  2015 2016

Measures taken to enhance consumer health and safety 

Number of corrective quality actions (for Passion brand


products, Decathlon brands and other international 277
185
brands) (Note 29)
(from 1/01 to 31/12)

Number of Decathlon brands and other international


product brands concerned by these corrective quality 1.5 million products 3.2 million products
actions (Note 30)
(from 1/01 to 31/12)

Article repairs: 47%


Breakdown of corrective quality action processes for Returns to warehouse 69%
Article destruction: 45%
Decathlon brands and other international brands Article repairs 13%
Returns to suppliers: 8%
(from 1/01 to 31/12) Destruction 18%
(Note 31)

Methodological notes SDR2016:


Note 25 : In 2016 this indicator did not take into account returned items bought online and live fishing bait. A new communication policy was launched by certain
countries (including France) in 2016, to explain to our customers that they could return their items if they were dissatisfied; this resulted in an increase in our returns.
Furthermore, we incorporated India's figures in 2016, which reflected a much higher returns rate than the group average.
The 2016 target was set at 1125 ppm
Note 26: out of 683 000 reviews collected in 2016 (the 2015 indicator was based on 539 964 reviews collected)
This indicator will change during 2017 to become the user satisfaction measure (% of 4/5 and 5/5 ratings)
Note 27: out of 1728 reviews gathered in 2016
This indicator refers to customer reviews of products presented at the Decathlon Innovation Awards. The 8 products concerned are currently on sale in store.
Note 28: out of 683 000 reviews gathered in 2016. This is a new indicator for 2016, complementing the raw customer review rating measurement, to enable us to
guarantee a "100% satisfactory" product range for our users. The target was set at 95% for 2019 for this indicator.
Note 29:
- The calculation methods for this indicator changed between 2015 and 2016, shifting from a manual calculation to a more reliable tool
- strengthening our requirements has in some countries caused us to withdraw from sale any products with a customer rating of less than 3
- in contrast with 2015, this indicator’s scope does not include the following countries for 2016: Brazil and India
Note 30: in contrast with 2015, this indicator’s scope does not include the following countries for 2016: Brazil and India Some countries were not able to provide us
with their data.
Note 31: in a bid to improve reliability in 2016, the calculation methods for this indicator changed from a manual calculation to a more reliable tool.

Chemicals management

% of employees having received product / 86%


84%
work chemical compliance training (i.e. 216 teammates )
(i.e. 305 teammates )
(from 1/01 to 31/12) ( Note 32)
% of subcontractors having signed the latest version
of Decathlon’s RSL specifications concerning 73.8%
86%
chemical substances (Note 33)
(from 1/01 to 31/12)
% of tests that comply with Decathlon's toxicology
97.26%
standards 97.81%
(Note 34)
(from 1/01 to 31/12)
Number of employees and subcontractors having 40 teammates
received chemical substance in production 50 teammates
and 15 suppliers
management training and 8 suppliers
(from 1/01 to 31/12)
(Note 35)
Average time to react to customer feedback 1.76 days
3.7 days
(from 1/01 to 31/12) (Note 36)

37 days on average
Time to react to customer queries concerning 36 days (19 days on average for customer
chemical substances or adverse skin reactions (18 days for customer questions questions in France and worldwide
(from 1/01 to 31/12) and 40 days for skin reactions) and 41 days on average for skin
reactions in France and worldwide)

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Chemicals management

Methodological notes SDR2016:

Note 32: This training indicator concerns design and production departments at Decathlon
Note 33: The fall in this percentage between 2015 and 2016 can be explained by several factors:
-introduction of a new RSL list in 2016
-manual data management in the tool used to feed the indicator: consistency checks were stepped up with regard to how many of the 200 biggest suppliers had
signed up to the Decathlon RSL, which allowed us to verify a 92% sign up rate.
Note 34: out of 5 941 Decathlon products tested for their toxicological compliance in 2016 (5 803 Decathlon products tested in 2015)
In 2016, Decathlon products were standardised for new distribution countries, which involved more drastic regulations.
Note 35: the 2017 target is 30 trained suppliers
Note 36: a new organisation involving customer relation centres our principal countries has seen a considerable fall in the length of time taken to handle customers.

STORES AND TRANSPORT

General environmental policy  2015 2016

Company organisation for handling environmental issues, and - if required - any environmental assessment
or certification procedures 

Number of Decathlon retail outlets


including 16 in France
with environmental certification 51
(Note 37)
(situation as of 31/12)
Number of Decathlon stores
opened over the year that have been awarded an
16 13
environmental certification
(from 1/01 to 31/12)
% of store sales area with environmental certification
13.28%
(m²) 1.82%
(Note 38)
(situation as of 31/12)
Number of Decathlon warehouses
8
with environmental certification 5
(Note 39)
(situation as of 31/12)

Methodological notes SDR2016: :


Note 37: According to the LEED, BREEAM, HQE and DGNB recognised standards of international certifications .
It should be noted that the Property teams will be considering this issue during 2017, in order to:
- redefine the most relevant indicators for company-owned stores and leased stores.
- to facilitate the gathering process and capitalisation for data consolidated by Country Property teams, and enable increased data reliability.
Note 38: The percentage of certified stores for new company-owed Decathlon stores in 2016 was 85%.
Note 39: 3 new certified warehouses opened in Europe (France, Italy and Spain).

The geographical, financial and social impact


2015 2016
of the company’s business activity

1 663 events
in 119 stores:
Number of customer events organised in France
777 events in 203 stores - 1.045 sports events in 2016,
(from 1/01 to 31/12)
- 618 sports excursions in 2016
(Note 40)

Methodological notes SDR2016:


Note 40: A change in methodology has been in operation since last year, with the aim of making data gathering more reliable, giving teams a file in which to input their
organised events in 2016.
It should also be noted that in 2016 a new store excursions and events monitoring indicator was implemented (trips and outings for specific sports – Running, Fitness
walking and Cycling – organised and supervised during the week and at the weekend, by our stores, in partnership or not with their local clubs, to enable customers to
enjoy these different sports in groups).

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Pollution and waste management  2015 2016

Measures for preventing, recycling and eliminating waste 

Quantity of waste generated by our sites (Decathlon


stores, Brand sites and company-owned warehouses) 75,661 T
66,459 T
in tonnes (Note 41)
(from 1/01 to 31/12)
• Sorted paper and cardboard 33,864 T (51%) 24,541 T (32%)
• Sorted plastics 1,314 T (2%) 2,123 T (3%)
• Other materials (wood, metals, textiles, etc.) 2,008 T (3%) 3,400 T (5%)
• Mixed waste 29,273 T (44%) 45,597 T (60%)

Waste recycling rates / activity


(from 1/01 to 31/12)
• Stores 41% 40% (Note 42)
• Warehouses 89% 85% (Note 42)

Methodological notes SDR2016:

Note 41: Total waste volumes generated by our sites by type: separated paper/cardboard, separated plastic, unsorted, mixed banal manufacturing waste, other waste
(sorted metal, sorted organic waste, sorted rubber)
The indicator does not include: sites that have been in operation for less than 12 months, production offices, company-owned production factories, and countries that
had fewer than 5 sites in 2016.
The 2016 results can be explained by the fact that we have expanded our scope and incorporated countries with no data on the tonnage of waste generated on site.
For the latter, we used a kg/quantity sold ratio (for stores) kg/m2 ratio (for warehouses). The assumption is that where there is no data then 100% of waste is mixed
waste
Note 42: 2% reduction in store recycling rates because:
- inclusion of Indian stores, which do not sort their waste
- estimations for stores without data, which tends to reduce recycling rates. The assumption for these stores is 100% unsorted waste.
Slight reduction in warehouse rate, which is still high thanks to the initiatives that warehouses implement for the main types of waste. To improve this rate, we will
now need to focus on the smaller deposits. This rate will have to improve slowly for the time being, as it will be much harder to implement change.
Some countries are starting to work on waste processing as opposed to separation. In Italy, for example, separation is not the priority, rather having a service provider
who can guarantee a second life for the waste collected. We recently incorporated the recycling rate into our "Ressource Advisor" tool, which aimed to take this data
into account so that we could monitor it.

Sustainable use of resources 2015 2016

Water consumption and supplies to reflect local conditions

Average site water consumption


(Decathlon stores and company-owned warehouses)
(from 1/01 to 31/12)
• Stores 95 litres/m² 270 litres/m² (Note 43)
• Warehouses 54 litres/m² 30 litres/m²
Methodological notes SDR2016:

Note 43: Water consumption in our stores and warehouses is not considered significant as it is limited to sanitation facilities, staff rooms, watering green spaces
and automatic extinguisher tests.
his average consumption for 2016 calculated based on actual data obtained from a sample of 23 stores and 1 warehouse
The 2016 average confirmed that we did not have an exhaustive report in the light of low consumption.
The variation between the 2015 and 2016 data can be partially explained by the altered sample used to form the estimate.

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Sustainable use of resources  2015 2016

Energy consumption, measures undertaken to improve energy efficiency


and the use of renewable energy
Overall consumption by energy type on our sites (Decathlon
stores, Brand sites and company-owned warehouses.)
(from 1/01 to 31/12)
• Electricity, in kWh 454,771,905 kWh 454,561,099 kWh (Note 44)
• Gas, in kWh 32,792,973 kWh 19,294,913 kWh (Note 44)
• Water Heating /Cooling in kWh 2,266,746 kWh n/a (Note 45)
Energy consumption in kWh per m2 in the stores.
142.15 kWh/m2 139.5 kWh/m2
(from 1/01 to 31/12)
Energy consumption in kWh per m2 in the warehouses.
62.51 kWh/m2 68.16 kWh/m2
(from 1/01 to 31/12)

Renewable energy production in kWh by the stores.


2,173,772 kWh 3,870,238 kWh (Note 46)
(from 1/01 to 31/12)

Methodological notes SDR2016:

Note 44: the indicator does not include: sites that have been in operation for less than 12 months, production offices, and company-owned production factories.
Note 45: the consumption of water used for heating and/or cooling sites was not taken into consideration as part of the total energy consumption for the purposes of
the 2016 Sustainable Development report, as it was not significant.
Note 46: the 2016 data includes the Italian and Belgian sites. We were unable to collect this indicator for Spain, which was incorporated into the 2015 scope.

Land use

Number of articles shipped per m2


1,330 articles / m² 1,352 articles / m²
(from 1/01 to 31/12)

Transport

C02 impact of transporting Passion brand products for delivery


in Europe (en g.C02 /articles). 409 g C02 eq./article 376 g C02 eq./article
(from 1/01 to 31/12)
• Production country to Europe 274 245 (Note 47)
• From key import warehouses to distribution platforms 76 73,7 (Note 48)
• From distribution platforms to stores 59 57
% of post shipment multimodal transport.
12.10% 7% (Note 49)
(from 1/01 to 31/12)
Per lorry load rate between the key import warehouses 54.04 m3
53,92 m3
and the distribution platforms (en m3/lorry). (14,711 articles per lorry)
(14,424 articles per lorry)
(from 1/01 to 31/12) (Note 50)

Methodological notes SDR2016:

Note 47: Reduction in the percentage of products transported by air (5.88% in 2016 instead of 5.93% in 2015).
Note 48: Strategy to improve the load factor, especially for the most remote warehouses.
Note 49: Post-shipment strategies, including the implementation of a cross-docking platform at Antwerp, do not permit the use of multi-modal transport.
Furthermore, most major import warehouses are located close to ports (Barcelona, Marseille), which makes the use of multi-modal transport impossible
4 950 multi-modal containers out of 69,957 were received at major import warehouses in 2016.
Note 50: Annual target for this indicator was 54.24m3

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2016 SUSTAINABLE DEVELOPMENT REPORT

RESPONSIBILITY IN PRODUCTION

Suppliers and subcontractors 2015 2016

The importance of subcontracting and being aware of suppliers’


and subcontractors’ CSR as part of the relations management process 

Number of production countries


(situation as of 31/12)
• with physical presence of Decathlon teams 22 22 (Note 51)
• with no Decathlon teams physically present n/a 27 (Note 51)
Number of Decathlon production offices
41 39
(situation as of 31/12)
Number of teammates responsible for maintaining
and coordinating relations with subcontractors 1,546 1,644
(situation au 31/12)
Rank 1 suppliers Rank 1 suppliers (Finished Products
Number of suppliers for Decathlon products (Finished Products) 839 & Components): 1 213
(from 1/01 to 31/12) Rank 1 suppliers Rank 2 suppliers: 109
(Components): 587 (Note 52)
Number of company-owned Decathlon production
workshops 10 10
(situation as of 31/12)
Number of "partner" subcontractors
33 31 (Note 53)
(situation as of 31/12)
Average length of service for subcontractors
(top 100 subcontractors in terms of volumes
purchased by Decathlon)
(situation as of 31/12)
• < 1 year 0% 3%
• 1 - 3 years 15% 22%
• 3 - 5 years 15% 21%
• 5 - 10 years 60% 50%
• 10 - 20 years 10% 4%
• > 20 years 0% 0%
• Moyenne 8 years 8.5 years
Breakdown of volumes purchased by Decathlon
(by production area)
(from 1/01 to 31/12)
• North Asia 48.4% 48.3%
• Europe 18.8% 17.6%
• South-east Asia 15.3% 16.8%
• South-west Asia 13.3% 14.2%
• Africa 3,7% 2.8%
• Americas 0.4% 0.1%
• CIS (Commonwealth of Independent States) 0,.1% 0.2%

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Suppliers and subcontractors 2015 2016

The importance of subcontracting and being aware of suppliers’


and subcontractors’ CSR as part of the relations management process 

Breakdown of volumes purchased by Decathlon


(from 1/01 to 31/12)
• Agrochemicals 1.4%
• Nutrition Products (sports supplements and food) 1% (Note 54)
• Chemical and Cosmetic Products 0.4%
• Electronic products 2;1% 2%
• Footwear products 14.2% 14.6%
• Glove products 1.4% 1.3%
• Heavy stitching products (tents, backpacks, sleeping
11.31% 10.6%
bags, balls, etc.)
• Pyrotechnic products
0.3%
(Solagnac hunting equipment)
• Bonded / Inflatable products
1.3%
(air beds, rings, armbands, etc.)
• Helmet products 0.8% 0.9%
• Optical products (lsunglasses, swimming goggles,
1.4% 1.5%
ski goggles, diving mask)
• Metal Plastic Composite 22.5%
• Bike / cycle products 10.8%
• Plastic and Composite products 6.3%
• Wedze composite products (ski equipment) 0.2%
• Metal / metallic products (scooters, fitness products,
6.2%
basketball nets, football nets, etc.)
• Textile products (natural fabrics, synthetic fabrics,
44.9% 42.6%
woven fabrics, yarn to finished product)
% of turnover resulting from Passion brand products
manufactured locally (% of turnover)
(from 1/01 to 31/12)
• China 90% 91%
• Europe 22% 22%
• Russia 4% 7%
• India 35% 36%
• Brazil 25% 9%

Methodological notes SDR2016:

Note 51:
>Production country with team: a Decathlon production office is established in the country.
>Production country without team: production country whose suppliers are managed by Decathlon teams from another country, no Decathlon office in this country.
Note 52: Rank 1 supplier: Supplier who has signed an agreement with a Decathlon group company to produce or assemble finished or semi-finished products (via a
manufacturing contract) or to supply raw materials or components (via a purchasing contract), receiving purchase orders and invoicing said company directly.
Rank 2 supplier: Supplier contributing to Decathlon’s product value chain, with direct commercial relations with a rank 1 supplier, with whom they organise the
management of purchase orders and invoicing.
The Decathlon group retains the option to get involved in choosing or approving this rank 2 supplier, while not intervening in the commercial and legal relationship
between these rank 1 and rank 2 suppliers.
Note 53: Seven partnership projects have failed to see their processes through to the very end (applicant identification, writing of a shared project: shared vision and
value, action plan and performance roadmap, business plan, setting up of a committee) in relation to the 38 announced in 2015.
Rolling out this strategy has forced us to pay particular attention to the qualitative aspect of what we are doing.
Note 54: We developed our internal organisation in 2016 by creating industrial scopes that were increasingly focused on manufacturing processes. (For example:
Agrochemicals split into 2 distinct processes – Nutrition being one and Chemicals & Cosmetics the other; Heavy stitching split into 2 distinct processes - Heavy
Stitching and Bonding, etc.

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2016 SUSTAINABLE DEVELOPMENT REPORT

Suppliers and subcontractors 2015 2016

The importance of subcontracting and being aware of suppliers’


and subcontractors’ CSR as part of the relations management process 

% of teammates having been trained to promote 66%


51%
sustainable development in production (i.e. 500 teammates)
(i.e. 402 teammates)
(situation as of 31/12) (Note 55)
Number of production sites concerned
by HRP assessments
(situation as of 31/12)
• Number of rank 1 sites 1,046 1,038 (Note 56)
• Number of rank 2 sites 219 256 (Note 56)
Number of HRP assessments conducted
887 877
(from 1/01 to 31/12)
% of HRP assessments conducted internally
73.3% (i.e. 650 audits) 73.4% (i.e. 644 audits)
(from 1/01 to 31/12)
% of production sites rated A, B or C
following HRP assessment
(situation as of 31/12)
• Rank 1 production sites rated A, B or C 68% 68% (Note 56)
• Rank 2 production sites rated A, B or C 56% 49% (Note 56)
Focus on HRP results
(situation as of 31/12)
84% (i.e. 42 sites belonging to
31 partner suppliers)
• For partner subcontractors rated A, B or C 73% A : 4% (2 sites)
B : 42% (21 sites)
C : 38% (19 sites)
(Note 56)
• For company-owned production facilities rated
60% 60% (Note 56)
A, B or C
• % of volumes purchased from production sites
75% 77% (Note 56)
rated A, B or C
Number of sites assessed on their wastewater
treatment 17 19 (Note 57)
(from 1/01 to 31/12)
Number of production sites that fulfil the quality
criteria governing wastewater as stipulated
15 15 (Note 58)
in Decathlon's specifications
(from 1/01 to 31/12)
% of production sites that fulfil the quality
criteria governing wastewater as stipulated
88% 79% (Note 58)
in Decathlon's specifications
(situation as of 31/12)
Number of production sites that fulfil the quality
criteria governing hazardous wastes as stipulated N/A 11 (Note 59)
in Decathlon's specifications
% of production sites that fulfil the quality criteria
governing hazardous wastes as stipulated N/A 57% (Note 59)
in Decathlon's specifications

Methodological notes SDR2016:

Note 55: Inconsistencies were identified in the extractions done using the data tool; a manual collection should have been implemented by local sustainable
development teams to collect data in a declaratory manner for 2016.
Note 56:The 2016 indicators for HRP (Human Responsibility in Production) were calculated on 3/01/2017 using the SDB tool.
By cross-tabulating suppliers involved in HRP from the SDB and the Purchasing tool (suppliers having generated sales over the year), we were able to detect a
potential discrepancy of 16%. An action plan is currently being drawn up so as to incorporate these potentially missing suppliers into our HRP process.
Note 57: Please note the indicator change between the SDR 2015 and the SDR 2016, due to the inclusion of hazardous waste management in 2016 as well as waste
water already recorded.
The indicator concerns suppliers using the Dyeing, Printing/Washing, Tanning, Surface treatment and Paint processes that discharge their waste water straight into
the environment, and whose HRP practices have been audited. In contrast with the 2015 scope, this indicator now incorporates Printing/Washing processes.
A total of 66 sites have had their waste water and hazardous waste management assessed since 2014, out of the 87 sites concerned.
Note 58: A total of 62 sites have been compliant in terms of waste water management since 2014 out of all 66 sites audited.
Note 59: A total of 11 sites complied in terms of hazardous waste management out of the 19 sites assessed in 2016.

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REGULATORY CROSS-REFERENCE TABLE

Chapters Pages

1) Category: Company information

a) Employment

Decathlon in figures. 3
Total personnel and breakdown of employees by
gender, age and geographical area.
Our performance indicators. 104

Putting people at the heart


25
of our growth.
Recruitment and redundancy.
Our performance indicators. 105

Attracting, rewarding
40
and motivating teammates.
Pay and pay trends.

Our performance indicators. 106, 110

b) Organisation of work

Putting people at the heart


27
of our growth.
Organising working time.
Our performance indicators. 106

Absenteeism. Our performance indicators. 106

c) Employee relations

Ready for responsibility and Freedom. 30


Organising employee dialogue, including procedures
for informing, consulting with and negotiating with personnel.
Our performance indicators. 107, 109

Putting people at the heart


28
of our growth.
Overview of collective agreements.
Our performance indicators. 107

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2016 SUSTAINABLE DEVELOPMENT REPORT

Chapters Pages

d) Health and safety

Occupational health and safety conditions. Delivering health and safety. 36

Overview of agreements signed with unions and employee


Our performance indicators. 108
representatives as regards occupational health and safety.

Accidents at work, including their frequency and severity,


Our performance indicators. 108
as well as occupational illnesses.

e) Training-related policies implemented.

Developing skills
33
Training-related policies implemented. and uncovering talent.
Our performance indicators. 108

Total number of training hours. Our performance indicators. 108

f) Equality of treatment

Putting people at the heart


29
Measures implemented to promote gender equality. of our growth.
Our performance indicators. 109
Putting people at the heart
Measures implemented to promote the employment 28
of our growth.
and integration of those with disabilities.
Our performance indicators. 109
Putting people at the heart
29
Anti-discrimination policy. of our growth.
Our performance indicators. 109

g) Promoting and respecting the fundamental conventions of the ILO with regard to :

Respect for the freedom of association and collective


Putting people first. 92
bargaining rights.

Eliminating occupational and employment discrimination. Putting people first. 92

Eliminating forced or compulsory labour. Putting people first. 92

Abolishing child labour. Putting people first. 92

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2016 SUSTAINABLE DEVELOPMENT REPORT

Chapters Pages

2) Category : Environmental information

a) General environmental policy

Our sustainable development


12
organisation.
Promoting responsible
52
consumption.
Company organisation for handling environmental issues,
and - if required - any environmental assessment or Eco-developing our global network. 69
certification procedures.
Optimising our energy and waste
76
management.

Our performance indicators. 113

Our climate commitment. 20

Developing skills and uncovering


Employee training and awareness-raising initiatives undertaken 35
talent.
in the field of environmental protection.
Promoting responsible
53
consumption.

Maintaining long-term relations. 85


Resources allocated to the prevention of environmental risks
and pollution. Rolling out environmental
99
management.

Total provisions and guarantees for environmental risks,provided


that this information is not likely to cause serious damage Our performance indicators. 103
to the company in any ongoing disputes.

b) Pollution

Measures to prevent, reduce or rectify emissions to air, Rolling out environmental


99
water and land causing serious environmental damage. management.

Addressing noise pollution and all other forms of pollution


Eco-developing our global network. 70
specific to a particular activity.

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2016 SUSTAINABLE DEVELOPMENT REPORT

Chapters Pages

c) Circular Economy

Waste prevention and management

Promoting responsible consumption. 57

Optimising our energy and waste


76
Measures to prevent, recycle, re-use and eliminate waste, management.
along with other forms of recovery.
Rolling out environmental
99
management.

Our performance indicators. 114

Actions to fight food waste. Methodological note. 127

Sustainable use of resources

Rolling out environmental


99
management.
Water consumption and supplies to reflect local conditions . (1)

Our performance indicators. 114, 118

Promoting responsible consumption. 52


Consumption of raw materials and measures undertaken
to improve their efficiency of use.
Our performance indicators. 111

Optimising our energy and waste


76
Energy consumption, measures undertaken to improve energy management.
efficiency and the use of renewable energy.
Our performance indicators. 115

Transporting our products


83
and encouraging eco-mobility.
Land use.
Our performance indicators. 115

d) Climate change

Items relating to greenhouse gas emissions generated by Our climate commitment. 20


the company's business activity, particularly through use of
the goods and services it produces. Our performance indicators. 104

Adapting to the consequences of climate change. Our climate commitment. 20

e) Protecting biodiversity

Measures taken to preserve and develop biodiversity. Promoting responsible consumption. 56

1. O
 ur main water consumption categories relate to raw materials, an area we are targeting with reduction strategies.

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2016 SUSTAINABLE DEVELOPMENT REPORT

Chapters Pages
3) Information
 relating to corporate commitments in the field
of sustainable development

a) The geographical, financial and social impact of the company’s business activity

Putting people at the heart


25
of our growth.

In terms of employment and regional development. Maintaining long-term relations. 85

Our performance indicators. 113

From local or neighbouring populations. Supporting local cooperation. 72

b) Relations maintained with people or organisations involved in the company's activity,


particularly social and employment support services, educational establishments,
environmental protection associations, consumer associations
and neighbouring communities

Conditions governing dialogue with these people


Our relations with stakeholders. 14
or organisations.

Decathlon Foundation:
working to promote universal 43
access to employment.
Partnerships and sponsorships.

Our performance indicators. 110

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2016 SUSTAINABLE DEVELOPMENT REPORT

Chapters Pages

c) Suppliers and subcontractors

Maintaining long-term relations. 85


An awareness of social and environmental issues
when devising purchasing policies.
Our performance indicators. 118

Maintaining long-term relations. 85

Putting people first. 92


The importance of subcontracting and being aware
of subcontractors’ and subcontractors’ CSR as part
of the relations management process. Rolling out environmental
99
management.

Our performance indicators. 116

d) Fair practices

Actions undertaken to prevent corruption. Maintaining long-term relations. 85

Creating safe, high quality products. 58


Measures taken to enhance consumer health and safety.
Our performance indicators. 111

e) Human rights

Putting people first/working towards


Other actions carried out to promote human rights. 92
better HR.

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METHODOLOGICAL NOTE
GENERAL ORGANISATION OF REPORTS
Decathlon is bound by the extra-financial reports obligation via Decathlon SA following the publication of article 225
of the Grenelle II law1 and the decree of 24 April 20122. In line with the conditions laid down by article L.225-102-1 of
the French Commercial Code, Decathlon SA is required to submit reports on the financial year commencing after
31 December 2012.

Decathlon SA is not listed on the stock exchange. For this report, we took into account the following criteria
which listed companies are obliged to fulfil: social information (absenteeism, workplace accidents, fundamental
conventions of the ILO), environmental information (total provisions and guarantees for environmental risks, land
use, adapting to climate change) and societal information (sub-contracting and suppliers, fair practices, combating
corruption, human rights).

In terms of the fundamental conventions of the ILO, we apply the same standards across our 10 production sites
as those required of our suppliers.

This extra-financial report is the fourth financial year of its kind for Decathlon, and illustrates its commitments,
achievements and projects in terms of CSR for the 2016 financial year.

To do this area, we implemented the following organization:


• t wo report project leaders (communications and technical) and a project officer responsible for internal reporting
procedures;
• a network of contributors covering the various activities within the business (design, production, distribution,
logistics, property, legal, etc.);
• strategic committees with different participants (CEO of Decathlon, sustainable development director,
manufacturing director, legal director, etc.).

Indicators are provided by the contributors from the relevant operational activity, before being consolidated by the
report project leaders.
Some of the extra-financial indicators are drawn from information that has already been coordinated internally by
the business’s teammates.
Indicators are reviewed and organized every year since 2013 in order to align them with legislative requirements
and the observations of the independent third party body.

A voluntary mock audit based on three indicators was conducted in April 2015 by Mazars3 in order to review
processes and identify priority areas for improvement.
A mock process review of a selection of seven other quantitative indicators and two pieces of qualitative information
was also conducted voluntarily by Mazars in June 2016, so as to analyse the reliability of related processes and to
implement improvement plans.

For the 2016 financial year, the qualitative data and indicators audited by Mazars are as follows:
As of 31/12/2016, percentage of permanent employees, percentage of shareholding teammates, Decathlon
Teammates Barometer results, number of training hours and training policy (qualitative), percentage of products
with eco-labelling, energy consumption and site waste tonnage, percentage of HRP ABC ratings and HRP policy
(qualitative), returns rate per million

Our efforts since 2014 to organise collections, and to consolidate data and make it more reliable, have enabled us
to observe how reliable certain data actually is.
We’re on a learning curve, adopting a continuous improvement approach over several years in order to reinforce the
reporting process internally and enhance the reliability of data that we communicate in our extra-financial reports.

1. Law governing national environmental commitment n°2010-788 of 12 July 2010, article 225.
2. Decree n°2012-557 of 24 April 2012..
3. Mazars: Independent third party body for our sustainable development report 2015.

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PRINCIPLES GOVERNING THE PRODUCTION


OF THE SUSTAINABLE DEVELOPMENT REPORT
In line with GRI G4 sustainable development reporting guidelines, Decathlon applies the following principles when
writing its Sustainable Development report:
• Completeness: to be as exhaustive as possible on relevant topics to enable readers of the report to assess the
business’s CSR performance;
• Relevance: topics deemed relevant are those that we feel are most important for our own activities and
governance;
• Clarity: to be universally understood ;
• Punctuality: to deliver the report on the same dates every year;
• Balance: to present a fair idea of the business’s overall performance by reflecting both positive and negative
aspects ;
• Accuracy: to give accurate, detailed information to enable readers to gain a better understanding.

REPORTING SCOPE
Decathlon had a presence in 28 distribution countries, with over 78,267 teammates and a turnover of €9.97 billion
excl. VAT in 2016.
As of 31/12/2016, the Decathlon group scope numbered:
• 1,176 stores (all sales forms combined)4 ;
• 45 warehouses and logistics platforms.

To establish the CSR target reporting scope for the 2016 financial year, it was agreed to use the financial
consolidation scope, which comprises all subsidiaries from the Decathlon group, closed on 30 September of the
reporting year and from which restatements have been made.
These restatements correspond to subsidiary exclusions from the financial consolidation scope.

Exclusions are operated on the basis of corporate purpose (companies whose sole purpose is acquiring shares;
subsidiaries whose sole purpose is real estate ownership), controls (art. L. 233-3 C. com.) and turnover (threshold
of 0.01% of total turnover for Decathlon group subsidiaries) of the subsidiary being considered.
Regarding the latter, we consider that the cost of obtaining environmental, social and societal data is
disproportionate to the importance they represent. Excluding these companies has no significant effect on the
representativeness of our data.

However, any subsidiary registered with the RBU (Reporting Business Unit) – it being understood that the RBU
corresponds to the turnover relating solely to a production activity for Decathlon products -, regardless of the total
turnover, must participate in the CSR target reporting scope with regard to the duty of care expressed by the HRP
indicator, even if – by virtue of the turnover threshold - it would be excluded from the CSR target reporting scope.
It was decided to disregard the salaried workforce to establish the CSR target reporting scope.

The CSR target reporting scope coverage rate was 98.66% of the total turnover for Decathlon group subsidiaries.

METHODOLOGICAL CLARIFICATIONS
1. Suppliers and sub-contractors mentioned in these reports are those with whom we have direct or indirect
commercial relations, within the context of manufacturing our Passion Brand products and their components. The
product development strategy (eco-design, quality, human responsibility in production, etc.) presented is solely
concerned with Decathlon products..

4. F
 ranchised stores are excluded, and their turnover is not consolidated in the balance sheet.

126 INDICATORS AND METHODOLOGY


2016 SUSTAINABLE DEVELOPMENT REPORT

2. Decathlon activities that come under facilities listed in environmental protection regulations are 10 warehouses
and two company-owned production sites in France (10 of which are subject to authorisation and two to
declaration)..

3. Decathlon’s core business objective is the manufacture of its products, services and related equipment designed
for sports enthusiasts and their families, and all associated wholesale and retail activities. On this basis, Decathlon
is not considered to be a distributor for the food retail sector.
Under its Aptonia brand name Decathlon sells sports nutrition products and diet supplements, which do not come
under the category of foodstuffs.
Given the above, the provisions of article L 225-102-1 of the Commercial Code (relating to the fight to combat food
waste) do not apply to Decathlon. Furthermore, these sports nutrition and food supplement products have a long
use-by date, as they are not particularly perishable.

4. For the social dimension


Most quantitative information is derived using a basis of 8 identified countries, accounting for 81.7% of the global
scope in 2016 and 77% of turnover.
Of the eight countries considered (France, Belgium, Spain, Italy, China, Poland, Thailand and Cambodia), five have
detailed social indicators.
This data is derived from payroll software, a data gathering framework having been established prior to this, with a
standard definition for each indicator collected.
The 18.3% of remaining data in 2016 came from other sources and tools that were generally reliable (in comparison
with the 52% from 2015).

At the same time, remaining countries will be contacted over time, to test the data gathering framework using their
payroll extracts in order to make data more than 96% reliable for the 2020 report.
2017: + 3 countries (Germany, Portugal, Poland) accounting for 8.1% of personnel
2018: + 2 countries (Russia and Hungary) accounting for 3.59% of personnel
2019: + 2 countries (India and Turkey) accounting for 3.16% of personnel
2020: + 3 countries (Brazil, Romania, UK) accounting for 3.64%
The framework will be reviewed and a new version produced so that each country can add their data to one single,
shared table, as opposed to in several separate tabs, making it easier to consolidate figures. The framework will
include a glossary containing more detailed definitions for each indicator.
Collaborative efforts will be carried out with the financial department so as to establish a table comparing
permanent workforce data. An initial test was carried out last year, to cross-reference data derived from financial
tools and to consolidate personnel.

5. For logistics-related figures


In 2016, the “number of articles per square metre” indicator was calculated at global level for the entire logistics
network on the basis of 45 warehouses.
The majority of the other data is produced at European level, because of the unavailability of global data. Europe
accounts for 78.3% of article volumes shipped during 2016.

6. For the greenhouse gas emissions assessment (GHG)


Calculating the CO2 footprint was done using the GHG Protocol5 method, which divides emissions into three areas
(1, 2 and 3).

GHG emissions are calculated by multiplying activity data by an emission factor. Activity data was gathered from
the defined area. If data was unavailable or showed errors, it was used to make assumptions or was extrapolated
using accurate data.
Excluding calculations concerning product impact, most emission factors come from the Carbon database
managed by ADEME (http://www.bilans-ges.ademe.fr/). Product impact modelling is performed using simplified
lifecycle assessments. Calculations are performed using an in-house tool and the services of several specialist
research and engineering firms who contribute their expertise and widely recognized databases (EcoInvent, Gabi,
Buwal and Wisard).

5. http://www.ghgprotocol.org/standards/corporate-standard

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2016 SUSTAINABLE DEVELOPMENT REPORT

The scope taken into account for the GHG assessment comprised company-owned Decathlon sites that were
trading on 31 December 2016, i.e. 1,168 Decathlon stores, 45 warehouses, 8 Passion brand sites and 39 production
offices.

For greater efficiency, in 2016 we introduced a software solution designed to gather and consolidate environmental
data from our sites.

Compared with the CSR reporting scope:


• energy data from our sites was calculated using actual energy consumption from 69% of Decathlon stores (i.e.
804 stores), 44% of warehouses (i.e. 20 warehouses) and 25% Passion brand sites (i.e. two out of eight sites
concerned);;
• average water consumption for sites was calculated on the basis of 23 stores and one warehouse;
• for waste tonnage on our sites, as well as the “recycling” indicator, we used actual data from 53% of stores (i.e.
620 stores), 55% of warehouses (i.e. 26 warehouses) and 13% of Passion brand sites (i.e. one site in eight).
The remaining data was extrapolated using real consumption data obtained through tonnage/quantity sold ratios
(for stores) and tonnage per square metre ratios (for warehouses).

7. Restatement of 2015 SD report data and error correction


There is a small chance that some data from 2015’s records may differ from that published in our third extra-finan-
cial report, especially since calculation and inputting errors were detected. These modifications are not significant
in any way.
If these method changes were put into use between 2015 and 2016, this is mentioned in a footer for the indicator
concerned.

REPORTING PERIOD
The reporting period for extra-financial data is based on the calendar year (1 January to 31 December 2016), so as
to ensure consistency with the trading year of Decathlon’s companies as well as the business's existing reports.
In cases where data refers to a reporting period different to the calendar year, this must be specified in the body of
the report.

METHODOLOGICAL LIMITS OF THE INDICATORS


Being Decathlon’s fourth extra-financial report, this report forms part of an improvement drive implemented over
several years, with the aim of structuring and reinforcing the process internally.
Environmental, social and societal indicators can present methodological limits caused by:
• non-harmonised definitions, national/international legislation and local practices;
• problems in collecting certain data without data collection software solutions;
• manual data entry: reliability depends on the quality of the information collection performed by the teams;
• the availability of certain data within a limited field;
• extrapolating and estimating certain data in situations where actual data is not available;
• the gradual deployment of our internal reporting protocol to cover the collection, consolidation and management
of indicators.

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2016 SUSTAINABLE DEVELOPMENT REPORT

CONFIRMATION OF PARTICIPATION AND REPORT


ON THE FAIRNESS OF THE INFORMATION
Decathlon Report by an independent third party body, relating to the consolidated social,
Financial year ended environmental and societal information contained in the management
December 31st, 2016 report.

TO THE SHAREHOLDERS
In our capacity as independent third-party, members of Mazars’ network, statutory auditor
of Decathlon, whose accreditation was accepted by COFRAC under the number 3-1058 1,
we have drawn up this attestation on human resources, environmental and social information
for the year ended December 31st, 2015, included in the management report (hereinafter
named "CSR Information"), pursuant to article L.225-102-1 of the French Commercial Code
(Code de commerce).

COMPANY’S RESPONSIBILITY
The Supervisory Board of Decathlon is responsible for preparing a company's management
report including the CSR Information required by article R.225-105-1 of the French Commercial
Code in accordance with the protocol used by the Company (hereinaft er the "Guidelines"),
summarised in the management report and available on request from the company's head
office.

INDEPENDENCE AND QUALITY CONTROL


Our independence is defined by regulatory texts, the French Code of ethics (Code de
déontologie) of our profession and the requirements of article L.822-11 of the French
Commercial Code. In addition, we have implemented a system of quality control including
documented policies and procedures regarding compliance with the ethical requirements,
French professional standards and applicablelegal and regulatory requirements.

RESPONSIBILITY OF THE INDEPENDENT THIRD PARTY BODY


On the basis of our work, our responsibility is :
­• ­to attest that the required CSR Information is included in the management report or, in the
event of nondisclosure of a part or all of the CSR Information, that an explanation is provided
in accordance with the third paragraph of article R.225-105 of the French Commercial Code
(Attestation regarding the completeness of CSR Information) ;
­• to deliver a conclusion providing reasonable assurance that the CSR information, taken as
a whole, is presented, in all its significant aspects, in a fair manner that complies with the
benchmarks (reasoned opinion on the fairness of CSR information).
Our work was carried out by a team of five people between January 2017 and the end of April
2017, for a total duration of around five weeks.
We carried out the following work in accordance with the order of 13 May 2013 setting out the
ways in which an independent third party body should conduct its mission, as well as with the
professional guidance issued by the national auditing body relating to this work and, in terms
of the reasoned opinion of fairness, with the international norm ISAE 30002.
I - Attestation on the completeness of human resources, environmental and social
information
On the basis of interviews with the individuals in charge of the relevant departments, we
obtained an understanding of the Company’s sustainability strategy regarding human
resources and environmental impacts of its activities and its social commitments and, where
applicable, any actions or programmes arising from them.

1. See: www.cofrac.fr
2. ISAE 3000 - Assurance engagements other than audits or reviews of historical financial information

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2016 SUSTAINABLE DEVELOPMENT REPORT

Decathlon We compared the CSR Information presented in the management report with the list provided
in article R.225-105-1 of the French Commercial Code.
Financial year ended
December 31st, 2016 In the absence of certain consolidated data, we checked that the explanations were supplied
in accordance with the provisions of article R.225-105 paragraph 3 of the Commercial Code.
We checked that the CSR data covered the consolidated scope, i.e. the company as well as
its subsidiaries as defined by article L.233-1 and the companies that it controls, as defined by
article L.233-3 of the Commercial Code with the scope limits outlined in the methodological
note that appears in the “methodological note” paragraph of the management report.
Based on the work performed and given the limitations mentioned above, we attest that the
required CSR Information has been disclosed in the management report.

II - Reasoned opinion on the fairness of CSR information


We would clarify that, it being the first financial year where the company has been subject
to verification of the fairness of its CSR information, the CSR information relating to the
year ended 31 December 2015, presented by way of comparison, have not undergone such
verification.

NATURE AND SCOPE OF THE WORK


We have carried out around fifteen reviews with those responsible for preparing CSR
information, interviewing management in charge of data gathering processes and,
if applicable, managers of internal control and risk management procedures, so as to:
• ­gain an understanding of the appropriateness of the benchmarks in terms of their relevance,
their exhaustiveness, their reliability, their neutrality and their comprehensibility, taking into
consideration good practices used within the sector, if applicable;
­• ­verify that a collection, compilation, handling and control process, designed to ensure that
CSR information is exhaustive and consistent, has been implemented; and to familiarise
ourselves with internal control and risk management procedures for drawing up CSR
information.
We determined the nature and scope of our tests and controls in line with the nature and
importance of the CSR information relative to the company’s specific features, social
and environmental challenges thrown up by its activities, its policy directions in terms of
sustainable development, and good industry practices.
For the CSR information we deemed to be the most important3 :
­• ­in terms of the consolidating entity and other entities, we consulted documentary sources
and conducted reviews to corroborate the qualitative information (organisation, policies
and actions), we introduced analytical procedures for quantitative and verified information,
based on surveys, calculations and data consolidation, and we verified their consistency
and correlation with other information in the management report;
­• ­in terms of a representative sample of entities we selected4 in line with their activity, their
contribution to consolidated indicators, their location and a risk analysis, we conducted
reviews to verify that procedures were being correctly applied and detailed tests implemented
on the basis of sampling, work that involved verifying the calculations carried out and
reconciling data from documentary evidence.
The sample selected in this way accounts for 44% of the workforce, considered to be a crucial
variable5 of the employee component, and between 41% and 100% of environmental data,
considered to be crucial variables of the environmental component.
For the other consolidated CSR information, we assessed how consistent it was compared
with what we know about the company.

3. Social information: Workforce as of 31/12/2016; Percentage of permanent employees; Percentage of employee shareholders;
Results from Decathlon Teammates Barometer; Number of training hours; Training policy.
Environmental information: % of products with an environmental rating; Sites’ energy consumption and waste tonnage.
Societal information: HRP information; HRP% ABC; Returns rate per million.
4. F
 or the workforce as of 31/12/2016, the percentage of permanent employees, the number of training hours, sites’ energy
consumption and waste tonnage, and the returns rate per million: France and Spain.
For the HRP %ABC: France and Bangladesh
For the percentage of employee shareholders: the shareholding scheme; for the results of the Decathlon Teammates Barometer:
Decathlon Exchange; for the training policy: contacts in charge of reporting face-to-face training hours, and Mylo training hours;
for the % of products with eco-labelling and HRP policy: the Sustainable Development team (teams responsible for eco-design
and eco-labelling, and human responsibility in production), at Group (Decathlon Campus) level.
5. Sites’ energy consumption and waste tonnage, % of products with eco-labelling.

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2016 SUSTAINABLE DEVELOPMENT REPORT

Decathlon Lastly, we acknowledged the relevance of explanations relating to (if appropriate) the
complete or partial absence of certain information.
Financial year ended
December 31st, 2016 We feel that the sampling methods and sample sizes that we have selected by exercising
our professional judgement have enabled us to formulate a conclusion providing reasonable
assurance; greater assurance would have required more extensive verification procedures.
In view of the sampling techniques used and the other limits inherent in the operation of
any information and internal control system, the risk of a significant anomaly in the CSR
information going undetected cannot be fully eliminated.

CONCLUSION
Over the course of our work, we observed that the training courses delivered were not
listed exhaustively in the My Progress tool, used to report on face-to-face training hours.
Furthermore, the training courses that were listed there were not systematically substantiated
by proof of attendance.
On the basis of our work, with the exception of the lacking exhaustiveness and traceability
of training hours inputted into the My Progress tool, as mentioned above, we observed no
significant anomalies likely to call into question the fact that the CSR information, taken as a
whole, is presented in a fair manner and in accordance with the Standards.

OBSERVATIONS
Without undermining the conclusion above, we would draw your attention to the following
elements:
• ­The indicator scope for the Decathlon Teammates Barometer is not comparable to the
reporting scope of the indicators in the extra-financial report. There legal entities who
participated in the survey have not yet been comprehensively identified. Following an initial
reconciliation exercise between some of the legal entities with access to the survey and the
reporting scope of indicators used in the extra-financial report, we were able to identify:
- entities from the consolidated extra-financial reporting scope who had not been asked to
complete the survey;
- countries not included in the consolidated extra-financial reporting scope and who had
access to the survey.

Drawn up in Paris La Défense,


on 5 May 2017
Independent third party body

MAZARS SAS

CÉDRIC TOULEMONDE EDWIGE REY


Partner CSR and Sustainable
Development Partner

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2016 SUSTAINABLE DEVELOPMENT REPORT

THANKS

Decathlon would like to thank everyone who has helped to


produce this report:

• the many internal contributors, for providing information


about their activities and strategies, their monitoring and
performance indicators, images, photos and videos,
• members of the dedicated management committee (Isabelle
Guyader, Dolène Maridet, Michel Aballéa, Pascal Bizard,
Philippe Dourcy, Pierre Fahy, Florent Rabouin, Maxime Tassin),
• the editorial team (Emily Blaise, Raphaëlle Chmura,
Claire Fouillé, Charles Felgate),
• the reporting team (Rahel Damamme,
Marion-Yonna Delesque),
• Philippe Cornet Conseil, Extra-financial reporting expert,
in partnership with AFNOR Compétences.

RESPONSIBLE FOR THIS PUBLICATION:


Sustainable Development Director: Isabelle Guyader
Chief editor: Claire Fouillé
Sustainable development reporting manager: Rahel Damamme

Graphic design: ORÈS Lille


Production: StudioPrint
Photo credits: Decathlon communication department, Samuel Dhote

This report is printed on FCS-certified paper using vegetable-based ink. .

132
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www.corporate.decathlon.com

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