CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT

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1 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT 2012

2 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT 2012 CAUTIONARY STATEMENTS : Scope : This report concerns La Poste S.A. and Le Groupe La Poste. Since not all Group information is available yet, the scope of the information provided is specified in the body of the report (details in Appendix 2). The report focuses on certain subsidiaries or holdings that are particularly important for the Group, depending on the area covered. Local best practices : To show how Group CSR policy is being put into practice on the ground, certain local practices are described in detail, identified by:

3 Economic Environmental Societal

4 Presentation of Le Groupe la Poste 1. Profile, distinctive features and developments within the Group A major multi-business service group Highlights in the development of the Group s operations The challenges facing the Group The environment and the energy transition Social inclusion The emergence of new visions of the economy CSR policy s central role in Group strategy Le Groupe La Poste s strategy CSR policy Responsible governance Corporate governance Separation of powers The Board of Directors specialised committees The drive for continuous improvement Mixed-representation governance bodies CSR governance Governance bodies CSR in collective objective-setting, roadmaps and the decision-making process Ethics and professional conduct in the Group CSR performance management Performance management at Group level Non-financial performance management at sub-corporate level Mandatory reporting: the management report Monitoring CSR roll-out in the Group Reference guide Diagnosis Translation by the Divisions into Group management reference guides LE GROUPE LA POSTE CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT

5 COMMITMENT 1: Continually strive to make the Group s operations more responsible 7. LONG-TERM PROJECT 1 : more virtuous processes for a more responsible product and service range Factor in CSR considerations right from the product and service design stage Carbon neutrality for all Factor in environmental, social and governance (ESG) criteria when designing La Banque Postale products and services La Banque Postale: signing and overseeing contracts: cautious risk management, regular monitoring and prevention of over-indebtedness Be a responsible employer: the Group s workplace model Respect human rights, international conventions and legal and regulatory obligations Combat discrimination and promote equal opportunities Disability policy A continuous drive to promote equal job opportunities for women and men Provide quality jobs Take steps to eliminate job insecurity Keep working hours under control Skilled labour and jobs for all Responsible remuneration Encourage skills development Exciting career prospects Make quality of life at work a priority Protect the health of the Group s postal workers Responsible change management Shrink the Group s environmental footprint Reduce transport-related impacts Reduce building-related impacts Reduce IT-related impacts Optimise resource usage and waste management Resource usage Promote responsible use of paper Optimise waste management Anticipate climate change and protect ecosystems COMMITMENT 1 CONTINUALLY STRIVE TO MAKE THE GROUP S OPERATIONS MORE RESPONSIBLE 5

6 COMMITMENT 1: Continually strive to make the Group s operations more responsible 8. LONG-TERM PROJECT 2 : Accelerate the adoption of the CSR policy Develop more responsible management Play an active role in supporting managers to achieve more responsible management Dedicated tools to acquire management expertise Turn sales teams into sustainable development ambassadors Support and coaching for sales teams Buyers: promote responsible purchasing Give buyers reference tools Train buyers Responsible communicators Nurture new attitudes among postal workers COMMITMENT 1 CONTINUALLY STRIVE TO MAKE THE GROUP S OPERATIONS MORE RESPONSIBLE 6

7 COMMITMENT 2 : Leave a positive mark on society 9. LONG-TERM PROJECT 3 : promote responsible economic developmenty Drive sustainable development locally Play an active role in local and regional development Take part in local planning and policy making Support local entrepreneurs Work to bring about changes in society Help to finance research Lead the international postal sector Help to develop new industries Sustainable mobility Complete the life cycle of paper Develop personal assistance services Make people more independent : Le Groupe La Poste and postal workers commit to fostering social inclusion Make the Group s products and services more readily accessible Make information easier for customers to find Train customers to use the Group s products and services Adapt procedures to customers with specific requirements Adapt retail outlets Adapt the group s sales outlets COMMITMENT 2 LEAVE A POSITIVE MARK ON SOCIETY 7

8 COMMITMENT 2 : Leave a positive mark on society 10. LONG-TERM PROJECT 4 : work hand-in-hand with stakeholders Organise channels for dialogue Talk to customers: work together to develop products and services Develop tailored product and service lines for key accounts Ask consumers for their opinions Make customers more aware of the environmental impact of the Group s products and services Commit to quality customer relationships Trust and customer commitments Simplify customer relations and boost service innovation Nurture a service-oriented attitude in Group employees Manage customer relationship quality Talk to staff Foster ongoing labour/management dialogue Employee representative bodies at La Poste Formal channels for labour/management dialogue in the Group Get the staff involved Probe postal workers opinions through the national surveys Communication between managers and staff Run a profit-sharing scheme Talk to the authorities Talk to local elected representatives Institutional relations International institutional relations Talk to suppliers Equal opportunities for bidders Build trust-based relations with suppliers Limiting the risk of economic dependence Support and encourage suppliers CSR initiatives Talk to associations Sharing the fruits of the value we create Appendices COMMITMENT 2 LEAVE A POSITIVE MARK ON SOCIETY 8

9 PRESENTATION OF LE GROUPE LA POSTE LE GROUPE LA POSTE CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT 2012

10 Economic Environmental Societal LE GROUPE LA POSTE CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT 2012

11 PRESENTATION OF LE GROUPE LA POSTE 1PROFILE, DISTINCTIVE FEATURES AND DEVELOPMENTS IN THE GROUP 1.1. A MAJOR MULTI-BUSINESS SERVICE GROUP Le Groupe La Poste occupies a special place in France s economy, society and regional development. Its revenue puts it in the top 25 French groups and it is the largest employer in France after the State, with close to 267, 000 employees. Moreover, its operations are governed by a specific law and the State has assigned it major public service missions, which it fulfils through its distribution network - the densest in Europe. Breakdown of revenue by geographic area 83% France International (1) 17% These factors make Le Groupe La Poste one of the leading French service groups. In 2012, the Group generated revenue of 21,658 million, of which 17% was on the international market, yielding an operating profit of 816 million. (1) Revenue from International and France export sales. Breakdown of revenue by Business Sector Banking activities 24,1% Parcels-Express 25,6% Other 0,6% Mail 49,7% As an employer, few French groups can claim to have such a rich workforce in terms of both diversity and skills. The development of Le Groupe La Poste s workplace model, which is grounded on a human resources (HR) policy that respects its people, lends coherence to a structure in which public-sector and private-sector employees covered by different collective-bargaining agreements enjoy a balanced, dynamic coexistence. The French State assigned La Poste four public service missions, which were reasserted in the French postal law of 9 February They include: providing a universal mail and parcel service (delivered to letter boxes six days a week); transporting and delivering the press; contributing to regional development (a retail outlet within a 5km radius); providing access to banking services. These missions are part of its DNA and an integral part of Le Groupe La Poste s operations, strategy and corporate social and environmental responsibility (CSR) approach. LE GROUPE LA POSTE CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT

12 PRESENTATION OF LE GROUPE LA POSTE La Poste is the best-known public service company in France. According to the Le Monde-Ogily-Viavoice survey (April 2012), French people rank it among those they trust the most, and recognise it as the most useful public company for French society. This trust springs from the very strong bond between La Poste and French people. Mail carriers hold a special place in their heart, fuelled by daily contact during mail and parcel deliveries or in the 17,075 post offices run by La Poste or managed in partnership with other service providers or local authorities. This distribution network, which is uniquely dense in France, makes the Group a major player in urban and local development policy. In all, 96% of French people are within five kilometres of a postal outlet and two million people enter an outlet every day. Le Groupe La Poste is made up of the parent company (La Poste) and its subsidiaries. Its missions and areas of expertise have prompted it to adopt a multi-business organisation. Le Groupe La Poste has historically operated in three core businesses known as Divisions: mail, parcels and banking. These in turn are supported by three major business sectors: the network of retail outlets, property and digital services. The Divisions and the business sectors are described more fully in Appendix 4. The diagram below shows the parent company, the holdings and the main Group subsidiaries. Organisations shown in the same colour are directed by the same member of the Executive Committee. LE GROUPE LA POSTE La Poste Parent company Coliposte (colissimo) L Enseigne (post offices) La Banque Postale (financial services) Le Courrier (routing, delivery) Digital Department Geopost Parcels holding Chronopost (Express France) DPD (Express international) Sofipost Mail holding (business services) Mediapost (Marketing) Asendia (international mail) Viapost / STP (Transport) La Banque Postale SF2 Banking holding La Banque poste financement (loans) Sogerco (risk insurance) La Banque Postale long-term care insurance BP Asset Management Ressources subsidiaries Poste Immo Véhiposte La Poste Mobile More than 200 subsidiaries in 40 countries across 4 continents LE GROUPE LA POSTE CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT

13 PRESENTATION OF LE GROUPE LA POSTE 1.2. HIGHLIGHTS IN THE DEVELOPMENT OF THE GROUP S OPERATIONS Over the past decade, Le Groupe La Poste has undergone major changes while continuing to fulfil the public service missions assigned to it by law. La Poste has been completely reorganised into Divisions and the Group has begun upgrading its industrial and logistics facilities to make them more efficient and raise their quality. New services have been added to its line-up, primarily in the digital sector. The Group has also upgraded its delivery network by pooling resources. It has deployed one of Europe s leading express parcel networks by forming the GeoPost holding. These developments have entailed creating and acquiring subsidiaries in the Group s various operations, making it a major service Group in French legislation on the regulation of postal operations passed on 20 May 2005 enabled La Poste to create La Banque Postale out of La Poste s financial services. This same law clarified the public service missions assigned to La Poste and established the regulation of postal operations, which was assigned to ARCEP, the French telecommunications and postal regulator. The mail-services market was the last of the Group s markets yet to be fully liberalised. This was finalised on 1 January La Poste has since been confronted with the rise of new forms of competition, in addition to the shift to paperless communication under way since the end of the last century. La Poste became a limited company («société anonyme») on 1 March 2010 under French legislation passed on 9 February As a result, it can be allocated registered capital and obtain finance by increasing its capital - a vital step if it is to finance a major investment and development plan. The principles underlying the change of status are laid down by the law: only the French State, legal entities in the public sector and the employees can hold any of the capital. When the capital was increased in April 2011 and April 2012, a new shareholder, the Caisse des Dépôts et Consignations, joined the Group s Board of Directors alongside the State. In 2012, the Group entered a new market : providing finance for local authorities. La Banque Postale began marketing a short-term credit solution in June 2012, a few months before launching a medium to long-term offer in November was also marked by the Major Dialogue on the quality of life at work in the company, launched in March. The Major Dialogue consisted in local meetings held over a period of six months and attended by over 125, 000 postal workers, and a national Commission chaired by Jean Kaspar. The commission was tasked with analysing the situation and issuing recommendations (detailed in Long-term project 4, p 82). A framework agreement on the quality of life at work was signed with the trade unions CFDT, FO, CGC-UNSA and CFTC on 22 January The issues raised by this labour-management survey gave fresh impetus to strategic analysis and planning in the Group. The first outcome was the creation of the Digital Division, charged with guiding and supporting farreaching changes in business and human force pratice. LE GROUPE LA POSTE CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT

14 PRESENTATION OF LE GROUPE LA POSTE 2 THE CHALLENGES FACING THE GROUP Over the period from 2013 to 2018, Le Groupe La Poste will need to tackle the major challenges that lie ahead of it, as well as changes in society itself. The growing scarcity of non-renewable energy resources - and especially oil - together with climate and environmental changes will continue to weigh heavily on the Group s operations. In the social sphere, the behaviours and requirements of all of La Poste s users and customers will become more varied and change more rapidly. Population growth, the consequences of the social crises and changes in the European economy will have a profound impact on both financials and strategy in all of the Group s Divisions. La Poste s stakeholders - customers, key accounts, local authorities, the State, consumers, staff, etc. - expect the Group to provide effective solutions in terms of social and environmental responsibility. For French people, La Poste is a symbolic enterprise whose universal presence and diversity lend it a representative quality. Because of its sheer size and its importance for the population, La Poste cannot disregard the environmental impact or social consequences of its operations. It is duty-bound to become the responsible enterprise of the future: making a profit, maintaining jobs, protecting the environment and satisfying its staff and customers FIRST CHALLENGE: THE ENVIRONMENT AND THE ENERGY TRANSITION France s environmental commitment France supports the EU s objective of achieving a 40% reduction in greenhouse gas (GHG) emissions by 2030 and a 60% reduction by Researchers and manufacturers have been set a 10-year objective of producing vehicles that can travel 100 kilometres on 2 litres of petrol, and lowering the CO 2 emission threshold per vehicle to 5 grams of CO 2 per kilometre. At national level, the French State has put a complete halt to any artificialisation of agricultural and natural areas, in a bid to protect biodiversity and water resources. The aim is also to contain urban sprawl. These political commitments have a major influence on the Group s future operational strategy. Their regulatory consequences will apply directly to the Group s operations: Restrictions on internal combustion vehicles access to town centres, in an effort to reduce GHG emissions, harmful air-borne particles and noise in urban environments; Reductions in GHG emissions from urban logistics and buildings energy consumption. LE GROUPE LA POSTE CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT

15 PRESENTATION OF LE GROUPE LA POSTE The energy transition Both the EU and the French government are currently debating the energy transition. France s goal of achieving energy independence, and the environmental consequences of using fossil fuels, are prompting the government to develop renewable energies and stipulate the proportion of nuclear energy in the energy mix. This will be one of the main topics at the forthcoming environmental conference scheduled for September The regularity of energy costs is crucially important for the Group. Its core businesses depend on stable energy prices for the smooth running of their transport, information systems and buildings. To address the challenges raised by ecological issues, the Group will have to: rethink its transport; rethink the way it services city centres; rethink its property stock; closely monitor the environmental consequences of the growth of the digital business. Le Groupe La Poste s establishment in urban areas and the consequences of its urban logistics operations are therefore of key importance to the Group s CSR goals SECOND CHALLENGE : SOCIAL INCLUSION In this first part of the century, social exclusion is hitting increasingly diverse subsections of the population. Nearly 8 million people in France currently live below the poverty line (i.e. roughly 3.5 million households). A similar number of people are believed to be teetering on the brink of poverty. There are 5 million disabled people. The elderly will make up nearly 30% of the French population in And tens of thousands of newcomers arrive in France every year, with widely varying levels of technical skills and proficiency in French. These people face a growing risk of social exclusion. Being unable to access sources of information or understand their content, no longer being able to access or use society s basic services, or no longer being able to occupy a form of employment are all factors that gradually exclude people from society. As the consequences of the economic crisis become increasingly evident, the authorities held their first ever conference on the subject last December and drew up a plan to combat poverty and promote social inclusion. Le Groupe La Poste was invited to contribute. Given the sheer scale of the economic and social issues at stake, and the varied and changing nature of the constraints and the population groups hit by insecurity, combating exclusion requires that public policy and private initiatives are intertwined, and that the many stakeholders involved work hand-in-hand. Because everyone living in France needs to use the Group s services at one time or another, and because the Group is a major employer, it has been tackling the subject of inclusion for several years now. The Group has become a major player in the drive for social inclusion. Its determination to fulfil its public service missions and support and empower all of its customers is grounded in its values and its anti-discrimination and equal opportunity policies. Working closely with its stakeholders, it strives to help people achieve independence by making its products and services more accessible to everyone living in France. Every customer touch point - reception, sales and aftersales - is involved in this initiative, which is a prime example of Le Groupe La Poste s corporate social and environmental policy. LE GROUPE LA POSTE CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT

16 PRESENTATION OF LE GROUPE LA POSTE 2.3. THIRD CHALLENGE : THE EMERGENCE OF NEW VISIONS OF THE ECONOMY Rising fossil-fuel prices, the economic crisis in the developed world, spreading poverty, scarce financing, deteriorating air and water quality and the changing regional landscape are generating new needs for neighbourhood social and environmental services for citizens and fostering the emergence of new business models. A number of trends from the new «green and social business» are already part of the Group s everyday practices and will be extended to every process : the circular economy, which is based on: - eco-design: factor in product life-cycle impacts right from the product design phase (e.g. ColiPoste packaging); - industrial ecology: business players in the same area work together to optimise flows and trade or pool raw materials or waste (e.g. Kalundborg in Denmark or Vitré in France); - the functional and/or collaborative economy encourages usage rather than possession (e.g. Velib and Autolib bicycle and car-sharing schemes); - re-using second-hand goods; - repairing rather than scrapping; - re-using parts or sections, repairing; - recycling (paper). the social and solidarity economy the only sector showing economic growth in France; - the development of multidisciplinary engineering (sociological, economic and technical) revolving around the notion of sustainable or «responsible» (sustainable city, sustainable mobility, responsible agriculture, etc.). The Greenovia and Mobigreen businesses are prime examples of this trend today; - the emergence of new methods of financing the economy that do not involve the stock market (alternative currencies, tontine, Islamic finance, responsible finance and crowdfunding). Le Groupe La Poste enjoys a unique position on the entire customer relationship cycle and has valuable expertise in managing trade and logistics. Its history, its fine-grained coverage of the country and the group of businesses it runs have given La Poste deep knowledge of logistics and in particular last-mile logistics. Its brand also conveys an image of trust and permanence. The Group therefore has all the cards in hand to become a major player in the reverse logistics of recycling and neighbourhood services, by developing new general-interest product and service lines (green economy, urban logistics, home support) that benefit all of the stakeholders. In light of these three types of challenges, which alter the assumptions underlying the «Ambition 2015» project, and after taking into account the findings of the Kaspar Commission report, the Chairman and Chief Executive Officer decided to launch work on a strategic plan for The result was a list of five major outcomes to be achieved by Le Groupe La Poste by end More specifically, we should be: 1. excellent in customer relationship management; 2. recognised for our innovations and digital transformation; 3. modern in the way we fulfil our public service missions; 4. pioneers in workplace well-being; 5. high achievers, i.e. profitable and responsible. LE GROUPE LA POSTE CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT

17 PRESENTATION OF LE GROUPE LA POSTE 3 CSR POLICY S CENTRAL ROLE IN GROUP STRATEGY In 2003, the Group set up the Sustainable Development Department as one of its governing bodies. Since then, the department has displayed unwavering commitment to giving greater consideration to CSR concerns when drawing up its strategy LE GROUPE LA POSTE S STRATEGY The «Performance and Confidence» strategic project ( ) had already shifted responsible development to the centre of Group strategy. The subsequent «Ambition 2015» project continued along the same lines. Ongoing commitment to the Group s social model and sustainable development were its two guiding principles, and CSR was an integral part of the policies brought in to achieve its objectives. In September 2012, the Chairman announced that the strategic plan would be revised in 2013 around the five major outcomes to be achieved, which are described above. Three of these are right at the centre of the Group s social and environmental responsibility. More specifically, they consist in being : modern in the way we fulfil our public service missions; pioneers in workplace well-being; high achievers, i.e. profitable and responsible. LE GROUPE LA POSTE CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT

18 PRESENTATION OF LE GROUPE LA POSTE 3.2. CSR POLICY A long-standing commitment covering the various aspects of csr ,000 postal workers take part in the Grand Dialogue initiative New Corporate Social and Environmental Responsibility policy La Poste signs the United Nations Global Compact s commitment to gender equality (Women s Empowerment Principles Equality means business).; Obtains «Diversity» certification La Banque Postale Asset Management signs the United Nations Principles for Responsible Investment (PRI) Sustainable development becomes the leitmotif of the «Performance and Confidence» strategic plan Introduces a profit-sharing scheme Signs the French diversity charter and obtains «equal opportunities» certification Signs a framework agreement on equality in the workplace Signs the United Nations Global Compact Signs the United Nations Global Compact Launches the first SRI fund, «Voie Lactée 1» LE GROUPE LA POSTE CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT

19 PRESENTATION OF LE GROUPE LA POSTE By 2011, Group entities had achieved a sufficient degree of maturity in phasing in social and environmental responsibility initiatives for the Group to be able to clarify its goals, commitments and action priorities for the period up to In early 2011, the Group set up the Division for Social and Environmental Responsibility to ensure that Le Groupe La Poste s strategic decision-making would continue to factor in CSR considerations on a permanent basis. A social and environmental responsibility policy was defined for the Group and approved by the Executive Committee (ExCom) in September A progress report on CSR performance in the Group was presented to the ExCom on 30 September The goal is clear : Make Le Groupe La Poste long-term creators of value and social cohesion for each of our stakeholders. It has been translated into two commitments: constantly strive to make its operations more responsible by incorporating CSR at each step of its processes and in the daily behaviour of postal workers ; work towards sustainable development by harnessing society s stakeholders, running successful collective projects and sharing our ambition with our stakeholders. Both of these commitments have been adopted by each of the Group s Divisions, along with target figures. The Group s objectives are also monitored on a regular basis on the Chairman s management chart. The objectives set for the Divisions are reviewed three times a year as part of analysing the extra-financial results. Since November 2011, this review has been included in the financial performance reviews (when the Chairman and Chief Executive Officer, the Division Directors and the support departments meet to review the performance of each department concerned). Four top-priority long-term projects were launched in the Group in 2011 to help it meet its commitments for 2015 : Long-term project 1 More virtuous processes : build CSR into every step of our processes; Long-term project 2 Embrace the CSR drive : blend CSR into postal workers everyday behaviour; Long-term project 3 Involvement for society : run successful collective projects that build society s sustainable performance; Long-term project 4 Work with our stakeholders : enlist the Group s stakeholders in jointly achieving its ambition. LE GROUPE LA POSTE CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT

20 PRESENTATION OF LE GROUPE LA POSTE A clear ambition Make the Group a creator of value and social cohesion COMMITMENT N 1 Continually strive to make the Group s operations more responsible COMMITMENT N 2 Work alongside its stakeholders to achieve shared sustainable performance Long-term project 1 Long-term project 2 Long-term project 3 Long-term project 4 More virtuous processes : Embrace the CSR drive : Involvement for society : Work with our stakeholders : Build CSR into every step of our processes Blend CSR into postal workers everyday behaviour Run successful collective projects that build society s sustainable performance Enlist the Group s stakeholders in jointly achieving its ambition LE GROUPE LA POSTE CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT

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