Methodology

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 law and the decree of 24 April 2012. 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 (subcontracting 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 third of its kind for Decathlon. We have embarked upon a continuous learning and improvement approach set over several years in order to reinforce the reporting process internally and enhance our data reliability.

This report illustrates Decathlon’s commitments, achievements and projects in terms of CSR (Corporate Social Responsibility) for the 2015 financial year.
To do this, we implemented the following organization:
– two 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, retail, logistics, property, legal, etc.),
– a management committee at strategy level (including a member of the board and advocate of sustainable development within the business, communications director, sustainable development manager, director of human resources).

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 come from information that has already been coordinated internally by the business’ employees. 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 Mazars in order to review processes and identify priority areas for improvement.
A voluntary mock process review on 7 other quantitative indicators and 2 qualitative information indicators to be conducted by Mazars was organised in June 2016 in order to analyze the reliability of the associated processes and to implement improvement plans as required.

Principles governing the production of the Sustainable Development report:

In line with GRI G4 (Global Reporting Initiative) 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’ overall performance by reflecting both positive and negative aspects
  • Accuracy: to give accurate, detailed information to enable readers to gain a better understanding.
  • Report scope

    Decathlon is present in 29 distribution countries, with over 71,707 employees and a turnover of €9.1 billion excl. VAT in 2015.
    As of 31/12/2015, Decathlon SA Group has:

  • 1,021 points of sale (all forms of sale included)
  • 45 warehouses and logistics platforms.
  • Within the context of extra-financial reporting, the scope excludes from the Group all companies not controlled by at least a 50% share in 2015 and all companies contributing an insignificant turnover amount.
    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 impact on the representativeness of our data. Consequently, Decathlon’s extra-financial data consolidation scope comprises:

  • All companies controlled by at least a 50% share as of 30 September 2015
  • All companies contributing 99.14 % to Decathlon’s turnover.
  • Methodological clarifications

    1- Suppliers and subcontractors mentioned in this report 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 concerns solely those products manufactured for our Passion brands.

    2- 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. Decathlon does market sports nutrition and food supplements via its Passion brand Aptonia although such products do not fall under the category of foodstuffs and as such, Decathlon is not subject to the measures provided for in article L.225-102-1 of the French Commercial Code relating to food waste. Moreover, the abovementioned sports nutrition and food supplements have a long shelf life and are non-perishable.

    3- In terms of our employees:
    It should be noted that most of the quantitative information for this third extra-financial report is produced from within France, Spain and Italy as opposed to on a global basis due to the non-availability of global data. These 3 countries accounted for 63.4% of turnover and 57.4% of personnel worldwide in 2015.

    48% of the data is drawn from payroll systems, the remaining 52% from other more or less reliable sources and tools.
    In 2017, we will integrate payroll data from some of the Group’s other most important countries in terms of business such as China and Italy. This should take the above figure concerning personnel data of 48% to 70%.
    At the same time, a collaborative effort will be conducted with other countries in which large numbers of Decathlon workers are employed to encourage these countries to participate in the initiative, despite the diversity of national legislation and organizations and the tools available (payroll systems and other distinct information systems, absence of Group reporting). A set of data collection standards shall be proposed with a standard definition for each indicator collected.

    4-For figures relating to logistics:
    The majority of data is drawn from within Europe, due to the non-availability of global data. Europe accounted for 81.3% of item quantities shipped during 2015.
    In 2016, logistics data from China, Brazil and Russia shall be collected and integrated for two indicators: the number of buildings having received environmental certification and the number of items per m².
    For the other countries, according to progress made on a commercial and logistics level, a road map will be deployed to collect their data starting in 2017 (for the 2018 report and later).

    5- Concerning the greenhouse gas (GHG) emissions:
    Carbon footprint calculations were carried out using the GHG protocol which splits emissions into 3 areas (scopes 1, 2 and 3).

    Calculating GHG emissions involves multiplying activity data by an emission factor. Activity data is collected from within the pre-defined scope. For data that is unavailable or contains errors, assumptions are made or extrapolations conducted using real data.
    Excluding calculations concerning product impact, most emission factors come from the Carbon database managed by ADEME . 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).

    The scope used covers corporate-owned Decathlon sites that opened before 1 January 2015, i.e. 880 Decathlon stores and 35 warehouses.
    In order to optimise our data collection system we are currently working on a software solution to computerise the collection and consolidation processes for our sites.

    We calculated our sites’ energy data using actual energy consumption for 79% of Decathlon stores (i.e. 813 stores) and for 74% of warehouses (i.e. 26 warehouses).

    For waste tonnage
    and recovery and recycling indicators, we used actual data for 45% of stores (i.e. 394 stores) and for 40% of warehouses (i.e. 14 warehouses). All other data was extrapolated or estimated using actual consumption data.

    6- Restatement of 2014 SD report data and error correction:
    There is a small chance that some data from 2014’s records may differ from that published in our second extra-financial report after calculation errors were detected. These modifications are not significant in any way.

    All changes in methods of calculation made between 2014 and 2015 are mentioned in the footnotes for the indicator in question.

    Report period

    The report period for extra-financial data is based on the calendar year (1 January to 31 December 2015) 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 this calendar year, this is specified in the body of the report.

    Methodological limits of the indicators

    Being Decathlon’s third extra-financial report, this report forms part of a continuous improvement initiative covering 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.