DECLARATION OF NON-FINANCIAL PERFORMANCE SUPPLIES AND EQUIPMENT FOR INDUSTRY AND THE CONSTRUCTION SECTOR 2023
Alongside the men and women who have been its driving force for over 240 years, DESCOURS & CABAUD has built up a long-standing leadership position in the distribution of products and services for professionals in industry, construction and the water and landscape businesses. Its activities are based on the values of trust, fairness and ethics. The Group is working to make its CSR (Corporate Social Responsibility) policy a reality on a daily basis. Its ambition is formalised in the Positive Program, created in 2013 and intensified in 2023, under the impetus of a dedicated Department with a new roadmap. Its CSR policy sets out priorities and commitments for creating shared value between its main stakeholders - customers, suppliers, shareholders and employees - and mobilising the skills of all. A leader and a diversified expert, DESCOURS & CABAUD is now at a crossroads, supporting the CSR performance required by the markets and helping to meet the major challenges of adapting to environmental issues. The 2023 edition of the Declaration of Non-Financial Performance provides an insight into the Group's key projects and actions aimed at championing sustainable development. It covers the social, environmental, societal and economic aspects of CSR, as well as governance and risk prevention. With its focus on performance, customer satisfaction and loyalty, DESCOURS & CABAUD has many assets that enable it to stand out from the competition and win new market share, while making an active contribution to building a more sustainable future. 3 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD Foreword
5 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD Contents P. 06 / THE DESCOURS & CABAUD GROUP p. 06 / History p. 07 / Key figures p. 07 / Governance P. 09 / THE BUSINESS MODEL p. 09 / Our distribution sector p. 09 / Our commercial offering p. 12 / Organisation of the Group's process flows p. 14 / Our resources P. 16 / METHODOLOGY FOR DRAFTING THE DECLARATION OF NON-FINANCIAL PERFORMANCE P. 18 / OUR VALUES p. 19 / Our CSR approach p. 21 / Taking our CSR contribution to the next level through sponsorship initiatives p. 23 / Our value creation model P. 26 / COMPLIANCE p. 26 / Compromise of information p. 28 / Compliance with the General Data Protection Regulation (GDPR) p. 29 / The risk of corruption p. 31 / Due diligence p. 33 / Our social policy p. 33 / Equal opportunities p.34 / Talent development and management p.36 / The employer brand p. 38 / Succession plans for key positions p. 39 / Employee safety p. 41 / Turnover P. 42 / ENVIRONMENT p. 42 / Environmental policy p. 45 / Transport p. 47 / Logistical organisation p. 51 / Other environmental themes P. 52 / Summary table of Declaration of Non-Financial Performance indicators P. 57 / Conclusion and outlook
DESCOURS & CABAUD GROUP History 1782 1861 1961 1979 1997 2005 2006 2010 2012 2014 2016 2020 2023 Establishment of an iron business in Lyon International development • Argentina • Indochina • Madagascar • North Africa • French West Africa DIVERSIFICATION OF THE PRODUCT OFFERING AND DEVELOPMENT IN EUROPE AND IN NORTH AMERICA 50 outlets 180 outlets 335 outlets 500 outlets 716 outlets DESCOURS & CABAUD was founded in Lyon in 1782. The Group started out by trading in steel products before branching out, diversifying its activities and expanding. Over the years, the Group has carved a commanding position as a leading distributor of professional supplies to the industrial and construction sectors. As the leading player in France and a major force in Europe with active operations also in North America, our Group is recognised for its ability to build a lasting partnership with its trade customers by helping them achieve continual gains in productivity, performance and innovation. The independent, family-owned DESCOURS & CABAUD Group is imbued by the winning spirit of its founders, passed down from generation to generation. This entrepreneurial vision has shaped its history and continues to guide our company, which is firmly of the view that there can be no value creation without entrepreneurial freedom. Since the beginning, it is this entrepreneurial freedom that has allowed us to anticipate major changes in the market, adapt accordingly and offer our customers the solutions of tomorrow. 6 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
DESCOURS & CABAUD GROUP Key figures DESCOURS & CABAUD GROUP Governance DESCOURS & CABAUD SA has a governance structure based on a Board of Directors and on a two-person team comprising a Chairman and Chief Executive Officer and a Managing Director. The Chairman and Chief Executive Officer is responsible for the day-to-day running and oversight of the business, while maintaining direct and permanent ties with the Group's shareholders. The Managing Director is involved in the operational side of the business. 407 51 56 44 10 5 27 6 7 7 8 38 50 716 OUTLETS IN EUROPE AND NORTH AMERICA €4.9 BN in turnover including €3bn in France 14,924 450,000 employees including 8,948 in France customers Over 1 million 716 product references outlets 7 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
8 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
DESCOURS & CABAUD has forged its reputation as a multispecialist partner and a distributor of high value-added products and services designed to raise the performance bar for professionals in the industrial, construction, water and landscaping sectors. The relationship that we have built with our customers over a period of more than two centuries is based on five commitments that not only drive our performance, but also earn the enduring trust of the professionals that the Group is focused on supporting: • The physical and geographic proximity of our sales teams • The competitiveness and the breadth of the offer thanks to our purchasing power • Product availability reinforced by a powerful logistical organisation • The technical excellence of our experts • The development of high-performance solutions and solutions that facilitate and simplify the operational activities of our trade customers THE BUSINESS MODEL Our distribution sector THE BUSINESS MODEL Our commercial offering / PRODUCTS We select renowned suppliers both in France and abroad, with the aim of making their products available to our customers. The breadth of our product offering is a major asset in meeting all customer requirements, whether they are routine or specific. For example, we offer over a million product references from well-known suppliers. We have also developed extensive product ranges for our Group brands, such as Opsial for personal protective equipment (PPE), 4MP for the manufacturing industry, Flowdians for specialist solutions in the water industry, and Xhander for construction professionals. Solutions to support sustainable development initiatives We also offer our customers solutions to support their sustainable development initiatives, and the DESCOURS & CABAUD teams are there to support them in the changes that result. The Group's broad range of products and services features solutions for improved sustainable performance. The HYDRALIANS brand, which specialises in distributing watering and irrigation products, proposes solutions designed to reduce water use. DEXIS supports its customers with solutions that are capable of injecting greater efficiency into their transmission systems. Steel, a major product in PROLIANS' business, is infinitely recyclable, and new “green” ranges are now being added to the brand's offering. 18% 11% 18% 9% 5% 5% 11% 23% Steel products Special products for the building trade Building and Tooling Supplies Industry Air conditioning - Sanitation Construction - Water sectors Building hardware Personal protective equipment (PPE) Breakdown in turnover by activity 9 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
In 2023, with its OPSIAL brand, the Group continued developing a range of products (clothing, gloves, footwear and eyewear) designed using recycled materials under the “GREENER TOGETHER” label. In an effort to extend its “responsible value chain”, DESCOURS & CABAUD can network its customers with organisations offering recycling or recovery solutions for used PPE (disposable PPE, goggles, helmets and gloves) as well as end-of-life workwear. / SERVICES We advise our customers on the choice and use of products, and inform them about innovations and new products from our suppliers. We also offer various services and performance solutions that facilitate and simplify the operational activities of our customers. Prime examples include: • Logistics services, such as Click & Collect or Vending Machines; • Personal protective equipment services, such as maintenance for category III PPE (protection against risks that may cause irreversible health damage or death), and bespoke clothing; • Technical services: the DEXIS brand offers a predictive maintenance service, which can detect faults in industrial equipment before a breakdown occurs PROLIANS also offers its customers a broad array of services, such as creating master key charts. Similarly, HYDRALIANS boasts an extensive selection of services, such as “Hydratest” for assessing pool water quality so that the appropriate treatments can be identified; • Financing services, such as lease with purchase option. DESCOURS & CABAUD is also gradually introducing a range of services to help reduce greenhouse gas emissions. In Europe, distribution is organised around three trading brands scaled to the international market: Mechanical transmission Pneumatic transmission Automated systems Waterproofing Hydraulics Miscellaneous maintenance products All fluids Respiratory protection PPE Fall protection Safety footwear Machining As an expert in every branch of industry, DEXIS helps its customers transform, grow and perform to the highest standard thanks to an end-to-end range of industrial maintenance solutions - including mechatronics, transmission, machining and automation systems -, Personal Protective Equipment (PPE), tooling and consumables. THE PARTNER OF INDUSTRIAL SECTORS 10 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
Tools Hardware Consumables Screws Fixings Plumbing - Domestic heating Worksite equipment Workshop equipment Personal protective equipment STEEL Public works products External works Watering Swimming pools Pumping Fountains Lighting Irrigation Water treatment Air conditioning PROLIANS is a multi-specialist company renowned for its proximity to its customers, offering construction professionals - more than 200 trades supported on a daily basis - the most comprehensive range of supplies on the market, backed up by a host of services. HYDRALIANS has a thorough understanding of the major challenges facing the water and landscape industries, and has become the industry's preferred partner, providing the most extensive range of specialist products on the market, high added-value services and personalised support. THE PARTNER OF BUILDING SECTORS THE PARTNER OF THE WATER AND LANDSCAPE SECTORS 11 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
OUR SUPPLIERS MANUFACTURERS DESCOURS & CABAUD PROLIANS DISTRIBUTORS HEAD OFFICE LYON Central and support services for creation of the o er ORDERS for mainly steel products 330 OUTLETS IN EUROPE INCLUDING 259 IN FRANCE 211 OUTLETS IN EUROPE, INCLUDING 67 IN FRANCE 78 OUTLETS, INCLUDING 6 IN PORTUGAL HEAD OFFICE THE BUSINESS MODEL Organisation of the Group's process flows 12 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
GENERAL BUILDING AND PUBLIC WORKS COMPANIES INDUSTRIES LOCAL AUTHORITIES OUR CUSTOMERS 12 LOGISTICS HUBS Transport and logistics Delivery to outlets and customers EUROPEAN TRADING NAMES OUTLETS IN NORTH AMERICA SPECIALISED OUTLETS 89 8 3 Flow of orders Telephone Products delivered Store purchases Services Reusable transport equipment (pallets, containers, etc.) Internet Sales force Flux de marchandises 13 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
THE BUSINESS MODEL Our resources / TEAMS CLOSE TO THE CUSTOMER DESCOURS & CABAUD deploys a sales force of approximately 9,500 employees who combine technical expertise with the ability to adapt to technological change. All of them are committed to meeting the diversity of customer needs, in close proximity, whether on the phone or in store. The development of their skills is ensured by continuous training, via our internal organisation - Tech'up - which offers a catalogue of 170 training courses adapted to the Group's activities (sales techniques, product techniques, safety, etc.). / A DENSE REGIONAL NETWORK With 716 outlets, DESCOURS & CABAUD has an unrivalled regional network. The network is especially dense in France with 406 outlets across the country. / PRODUCT AVAILABILITY We ensure that stocks are properly sized, which involves a strict management policy for our supplies and deliveries. The challenge is to maximise product availability. In addition to the inventory in our sales outlets, the products of our logistics platforms can be delivered to our customers within one or two business days. 14 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
/ A DIGITAL BASE The Group has several merchant websites: prolians.fr, hydralians.fr, dexis.fr and DC Clic, the e-commerce solution dedicated to Key Account customers. Dedicated teams are focused on enhancing the quantity and quality of our ranges, improving product descriptions and the look & feel of our web spaces, and creating intuitive product search tools. 15 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
Methodology for drafting the Declaration of Non-Financial Performance The Declaration of Non-Financial Performance is not only an exercise in transparency, but a tool for steering the company's strategy in the right direction. Such declarations are designed to share information about the company's social, environmental, societal and ethical performance. This declaration shines the light on the DESCOURS & CABAUD Group's business model and provides insights into the main risks and associated KPIs. / OUR RISK ANALYSIS METHODOLOGY: The Group's main divisions, owners of the risks, have been briefed to identify the risks inherent in their areas of responsibility, to assess their levels of importance and to implement action plans aimed at mitigating their effects and impacts. The risks are formalised in a matrix and contribute to the Internal Audit action plan. The Risk Committee (CORIS) coordinates the management of the risks to which the Group is exposed, by monitoring the mapping of all the potential risks involved. The various risks identified by the Group's divisions are rated in terms of their potential threat to the company's performance, the likelihood of their occurrence and the extent to which they are controlled. The result of the analysis can be used to calculate an overall rating of the level of residual risk for our Group (between 2 and 14): This assessment helps determine which risks are addressed in the Declaration of Non-Financial Performance. Key performance indicators are used to monitor and manage all of the risks identified. The KPIs bring clarity and transparency to the Group's risk management strategy. IDENTIFY THE RISKS PRIORITISE AND ASSESS THE EXTENT OF THE RISKS IDENTIFY THE KPIS FOR RISK MANAGEMENT 16 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
/ SCOPE OF THE DECLARATION OF NON-FINANCIAL PERFORMANCE The risks identified cover a number of cross-cutting CSR issues, such as compliance, environmental performance, social considerations and human capital. The KPIs relate to either the Group as a whole (in which case they encompass 97.27% of the Group's workforce) or at least France (equivalent to 59.96% of the Group's total workforce). The environmental indicators cover 91.29% of the Group's workforce. TOPICS KEY PERFORMANCE INDICATOR SCOPE Compromised information Level of governance Group Level of risk control Group Level of physical and IT security Group Corruption Rate of training for the anti-corruption e-learning module Group Compliance with the General Data Protection Regulation % of requests to exercise rights processed within due time limits France % of compliance among European subsidiaries Europe Due diligence % of suppliers assessed Suppliers Asia Talent development % of correct answers to technical quizzes France Attractiveness of the employer brand Number of followers on LinkedIn Group Rate of departure among new hires in their first year France Indeed and Glassdoor reviews France Employee safety Rate of Frequency Group Rate of Severity Group Succession for key positions % of management posts with a formal succession plan France Employee turnover Voluntary turnover rate Group Environmental impact % of Euro 5 or 6 heavy vehicles in the fleet France Trend in vehicle fuel consumption France Operational performance of the logistics platforms Compliance with the maintenance and testing plan France Platform availability rate France Rate of Frequency France Rate of Severity France The accuracy of the information disclosed in this Declaration of Non-Financial Performance has been certified by an independent third-party organisation (Cabinet de Saint Front). 17 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
OUR VALUES Since its origin, DESCOURS & CABAUD has been driven by strong human values and by the entrepreneurial spirit of its founders. Given its history, its external growth strategy and its desire to remain close to its customers, the Group is characterised by a resolutely decentralised organisational structure. Each subsidiary has significant autonomy. This entrepreneurial freedom is nevertheless exercised in a spirit of unity, respecting the Group's processes and guidelines, as well as our three fundamental values: unity, transparency and daring. The complex and competitive environment in which we operate requires strong cohesion and unfailing team spirit to serve our customers' needs. This cohesion is underpinned by a shared ambition, continuous collaboration between our teams, respect for decisions and commitments, and solidarity. Transparency regarding our aims and roadmap, transparency in our activities and results. We give every opportunity to men and women who dare question themselves, and encourage them to take the initiative and experiment, while accepting the right to make mistakes, which is inherent to any action. UNITY TRANSPARENCY DARING 18 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
/ VISION AND COMMITMENT DESCOURS & CABAUD's CSR policy creates opportunities for social and environmental performance for its partners and stakeholders. The Group aligns its commitments with the standards set out in the fundamental conventions of the International Labour Organisation (ILO), the Universal Declaration of Human Rights and the principles set out in the United Nations Global Compact. DESCOURS & CABAUD is committed to being attentive to the following: • respect for individual freedoms (freedom of movement, freedom of thought and belief, right to property, for example); • the right to freedom of association and the right to collective bargaining; • the elimination of all forms of forced labour; • the abolition of child labour; • respect for everyone's right not to be harassed or discriminated against; • health and safety prevention in the workplace; • ensuring compliance with ethical rules aimed at eradicating corruption, prohibiting anti-competitive practices and preventing conflicts of interest; • rejection of any direct or indirect supplies that feed conflicts or profit from the intensive or unfair use of the natural resources that local communities need for their survival and way of life; • respect for the precautionary principle with regard to preserving the environment and natural spaces. Our values Our CSR approach / A PROGRAMME TO SUPPORT THE GROUP'S AMBITIONS Launched in 2013, DESCOURS & CABAUD's CSR approach was intensified in 2023 around the Positive Program, which sets out objectives associated with a wide-ranging action plan for sustainable performance. Its aim is to unite our employees and their subsidiaries around sustainable development. It also sets out the Group's contributions to the major global sustainability challenges as set out in the United Nations Sustainable Development Goals (SDGs). The Positive Program is built around four key areas: • acting as a responsible employer; • being the CSR partner for our customers; • controlling the environmental impact of our activities; • having committed governance, anchored in strong business ethics that cut across our actions and our value chain. Positive Program: an initiative that benefits employees, customers, the environment and our value chain. 19 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
EMPLOYEES Acting as a responsible employer: • strengthen the safety culture and know-how of our employees; • support the professional development of our employees; • e nsure equal treatment in our employment practices; • enrich the CSR knowledge of our employees, particularly in terms of their professions; • work to improve the employee experience. CUSTOMERS Being the CSR partner for our customers: • offer our customers “CSR efficient” services, solutions, innovations and products; • make sustainability (eco-design, use, reparability, recyclability) a lever for differentiation and performance in our commercial relations; • work towards a responsible supply chain, extend the scope of our commitments to our suppliers; • maintain and develop a territorial network of our activities to benefit local customer relations; • pursue the commitment of our Group brands to an ongoing process of improving their CSR performance and offerings; • propose innovations or engineering solutions to improve efficiency in water or energy management. ENVIRONMENT Controlling the environmental impact of our activity: • combat climate change, contain our carbon footprint and move towards a “carbon neutral” path by 2050; • act to limit the Group's environmental and ecological impact; • develop eco-designed ranges for our Group brands; • better understand and measure our impact on the environment. GOVERNANCE AND VALUE CHAIN Committed governance: • integrate CSR and sustainable development into the Group's strategy; • make business ethics a fundamental value of our practices; • be diligent in promoting respect for fundamental human rights in our activities and partnerships; • ensure responsible marketing practices. Intervening at every stage of the value chain: • aim for social and environmental efficiency that benefits our upstream and downstream value chains; • contribute to the economic fabric and employment; • support initiatives in the fields of training, culture, social inclusion, the economy and health, in particular through sponsorship; • propose and promote responsible consumption; • develop our interactions with the circular economy. The company's overall CSR performance is the result of both governance and local, individual and collective contributions: in this sense, everyone is encouraged to relay the Group's commitment through their professional practices. DESCOURS & CABAUD's CSR policy is fully in line with the Group's commitments to the United Nations Sustainable Development Goals. 20 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
OUR VALUES Taking our CSR contribution to the next level through sponsorship initiatives Because of its strong roots in Lyon, DESCOURS & CABAUD has a long-standing commitment to major local associations and foundations that share its values of excellence and quality. Guided by its humanist convictions, the Group supports many projects in different fields, from health to education and culture. CULTURE SUPPORT FOR THE POLICY OF ACQUIRING WORKS OF ART The Museum of Fine Arts of Lyon is renowned Europe-wide for its exceptional collections, which extend from antiquity to the present day, its major exhibitions, and its partnerships with museums around the world. DESCOURS & CABAUD is one of 11 corporate patrons that founded the Musée Saint-Pierre Club in 2009, with the aim of supporting the museum’s acquisition policy. The Club was one of a number of contributors who helped to bring a dozen works by Pierre Soulages, Jean-Honoré Fragonard, Nicolas Poussin and Henri Matisse into the collections. HEALTHCARE TOWARDS PERSONALISATION OF HOSPITAL CARE Recognised as an association in the public interest, the Fondation des Hospices Civils de Lyon funds multiple initiatives to promote more personalised hospital care and research programmes. In particular, it aims to improve the reception and comfort of patients at the second largest hospital centre in France. DESCOURS & CABAUD has provided financial support to the foundation since its creation in 2013. Recent projects include the development of a new generation of personalised foods for patients battling cancer, and research into cell and gene therapy as a new treatment option for patients suffering from incurable diseases involving the immune system. 21 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
EDUCATION SUPPORT FOR THE TRANSFORMATION OF SOCIETY Lyon Catholic University is a multi-disciplinary institution offering more than 130 courses combining respect for humanist values and openness to society. Incorporated as an association, it receives financial sponsorship from around twenty leading local companies, including DESCOURS & CABAUD. Today, sponsorship of the Catholic University mainly consists of financing grants for students on modest incomes. PROMOTION OF EQUAL OPPORTUNITIES IN UNDERPRIVILEGED NEIGHBOURHOODS Based in Lyon, Sport dans la Ville is France’s leading association for social integration through sport. It helps young people in specific neighbourhoods find a career by promoting key values through sport and offering personalised support (careers guidance, entrepreneurship, etc.). DESCOURS & CABAUD committed to supporting the association’s actions in 2012. Since 2021, head office employees have been presenting their jobs during discovery workshops and have mentored young people in professional integration programmes, while others have taken part in the Jogg charity race in the city or the intercompany football tournaments. SOCIAL ECONOMY BOOST THE EXPANSION OF AN ECONOMIC LANDSCAPE BASED ON SOLIDARITY AND SUSTAINABILITY With a community of 49 companies in Lyon, Fondation Émergences supports entrepreneurial project owners who create social links and jobs. The field of action is wide: mutual aid and solidarity, education and professional integration, environmental transition, health and disability. Through volunteering by leadership and employees, its role is to help entrepreneurs put their decisions into perspective. The projects supported offer a 92% sustainability rate after three years. DESCOURS & CABAUD has been delivering financial support to the foundation since 2015. 22 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
Creating durable value for all our stakeholders is the bedrock of our corporate culture. SUPPLIERS DESCOURS & CABAUD handles the retail distribution of over 1,100 leading suppliers to a wide range of professionals. The Group thereby participates in their economic development. CUSTOMERS DESCOURS & CABAUD supports its 450,000 customers address their operating, sustainable growth and performance challenges. Thanks to the selection of recognised brands and suppliers, the Group provides the most comprehensive offering in the market. The organisation of our supply chain ensures optimal delivery of products to our customer sites. The Group's buying power ensures we remain competitive in the market. The expertise of our workforce, in the stores or directly with our customers on their sites, plays an instrumental role in guiding our customers' purchasing decisions towards the products or services offering the best fit for their needs. JOBS DESCOURS & CABAUD is helping grow the economy by providing over 14,900 direct jobs in France, Europe and North America, as well as offering Group employees a wealth of career prospects. PATRONAGE Because of its long-established roots in Lyon, the DESCOURS & CABAUD Group has an enduring commitment to major local associations and foundations that share its values of excellence and quality. Guided by its humanist convictions, DESCOURS & CABAUD supports many projects in different fields, from health to education and culture (see pages 21 and 22). SHAREHOLDERS DESCOURS & CABAUD, a family business since its very beginnings, is committed to the long-term growth and development of the company. Its steady and constant track record yields profits for its shareholders, guaranteeing its financial independence and the financing of its investments. Our values Our value creation model 23 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
AN ACTIVE AND APPROPRIATE SOLUTION FOR OUR CUSTOMERS IN STORE, ON THE TELEPHONE, ON THE WEB AND IN THE FIELD Distribution is organised around three European trading brands: DEXIS, PROLIANS and HYDRALIANS. The Group also has two sales networks in North America. Professional distribution serving manufacturers, tradespeople, communities, … With: • The most renowned suppliers (recognised brands) • Quality products • Available stock • Meeting our commitments • Advice and technological intelligence • 9,500 employees working in the salesforce • A dense regional network comprising 716 outlets • A supply chain fit for purpose • Tech’up, an in-house training organisation • A safe environment safeguarding personal integrity / Our value creation drivers / We create value for our stakeholders • A stable and sustainable partnership • A local network and a close-knit relationship • A productivity plan • Our solid credit rating • A partnership conducive to their turnover • Resilience and ability to overcome crises • A long-term future • Recurring results • Asset growth We provide our customers with: We provide our suppliers with: As a Group, we provide our shareholders with: OUR SECTOR OUR RESOURCES Driving value through our organisational culture and Group values 24 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
• An offer of more than one million product references • Eco-friendly ranges • Steel products • Public works products • Industrial maintenance • Metal removal • Tools • Nuts, bolts and screws • Building hardware • Sanitation, Heating & Plumbing • Industrial supplies • Water sectors • PPE Product families Innovation • Offer innovative services • Select new products • Digitize our approach External growth • Consolidate our lead • New geographical areas Organic growth • Broaden the offering • Develop business assets Talent development • Identify, attract and partner talent • Embody our values day after day • Ensure the professional development of our employees • Develop the company's growth and long-term prospects • 14,924 direct and local jobs • A sponsorship policy and initiatives • Strong regional presence • Create opportunities for career development as well as internal mobility and promotion • Maintain and develop employment in their local area • Promote entrepreneurial “freedom” in their duties For our Group, we endeavour to: We provide civil society with: For our employees, we strive to: OUR COMMERCIAL OFFERING OUR AMBITION AND OUR GOVERNANCE The Group's values: Unity, Transparency, Daring 25 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
COMPLIANCE Compromised information / RISKS AND CONSEQUENCES DESCOURS & CABAUD considers the security of its data to be crucial in order to protect itself from any loss or compromise of information that could jeopardise its business. Therefore, we have implemented a number of organisational and technical measures to shield our information against external and internal threats. / MEANS OF CONTROL The means deployed consist in harmonising, all the more within a context of external growth, the security of information practices for the French and international subsidiaries of DESCOURS & CABAUD. The Chief Information Security Officer defines the policies and, in collaboration with the IT teams, builds a protection programme and qualifies the appropriate tools. He/she ensures that they are implemented and prepares internal or external audits that highlight any potential weaknesses. 26 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
/ KEY INDICATORS Our key indicators, which cover several information security themes, provide visibility on governance, risk control and information systems security actions. The harmonisation programmes created in 2023 helped us to exceed our goals with indicators above 75% coverage in relation to the benchmark references generally accepted in this domain, and to keep them stable thereafter. Level of governance • Governance and management of security of information • Formal definition of security rules and policies • Employee training programme • Management of access to information systems Level of risk control • Quality of control of identified risks • Classification of information • Availability of trade applications • Contractual requirements Level of physical and IT security • Operational security of the information system (networks, infrastructure, hosting) • Securing of information • Securing of work stations • Securing of applications and e-commerce sites Target 75% Target 75% Target 75% 0% 0% 0% 10% 10% 10% 20% 20% 20% 30% 30% 30% 40% 40% 40% 50% 50% 50% 60% 60% 60% 80% 80% 80% 70% 70% 70% 90% 90% 90% 100% 100% 100% 2020 2020 2020 2021 2021 2021 2022 2022 2022 2023 2023 2023 71% 65% 73% 76% 69% 76% 77% 68% 76% 86% 78% 88% 27 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
COMPLIANCE Compliance with the General Data Protection Regulation (GDPR) / RISKS AND CONSEQUENCES The risks of non-compliance with Europe's General Data Protection Regulation (GDPR) include administrative or financial penalties (up to €20 million or 4% of Group turnover), as well as a deterioration in brand image that could lead to a loss of trust that is detrimental to our business. / MEANS OF CONTROL Within the Group, a Data Protection Officer (DPO) has been appointed. Their role is to monitor the continued compliance with the GDPR, in particular for all new projects and acquisitions in Europe. In the event of an acquisition, the subsidiary is monitored and, if necessary, supported in order to maintain or implement compliance with the GDPR. / KEY INDICATORS In terms of GDPR, we aim to process 100% of individuals’ requests regarding rights within the time limit and to achieve 100% compliance within six months of an acquisition. % of requests to exercise rights fulfilled within specified times % compliance of European subsidiaries (companies acquired more than six months ago) Target 100% Target 100% 0% 0% 10% 10% 20% 20% 30% 30% 40% 40% 50% 50% 60% 60% 80% 80% 70% 70% 90% 90% 100% 100% 2019 2019 2020 2020 2021 2021 2022 2022 2023 2023 98% 96% 100% 99% 100% 98% 100% 100% 100% 100% 28 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
COMPLIANCE The risk of corruption / RISKS AND CONSEQUENCES The Sapin 2 Law sets the main objectives which consist in “reinforcing the transparency of public decision-taking procedures, better preventing corruption and punishing it as quickly and severely as possible”; and “placing France on a par with the best international standards in the fields of transparency and of the fight against corruption.” This law includes an ambitious anti-corruption mechanism, and establishes new obligations for companies to prevent risks of corruption or the illegal protection of corporate self-interest. It applies to all international subsidiaries of the Group. Given its geographical reach, the Group pays constant attention to the application of this law. The risks incurred can reach €200,000 for individuals and €1m for legal entities. In addition to these financial penalties, the Group is also potentially exposed to the risk of harm to its image, whose impacts on performance may be measured in the short or medium term. / MEANS OF CONTROL In its ethics charter, DESCOURS & CABAUD states the common values around which it wants to unite the actions of all its employees and the conduct that each of them must adopt with the company's customers, suppliers and partners. In addition to sharing these fundamental elements, the Group has put in place the measures required by law, including: • A corruption risk map to identify, analyse and prioritise the company's specific exposure risks. This initial map has been produced in France following interviews with managers, both in terms of actual risks encountered and in terms of potential risks; • An anti-corruption code of conduct, translated into the languages of the countries where the Group is present and given to all employees, which recalls the Group's commitment to a zero tolerance policy, presents the behaviours to be avoided and mentions the penalties in the case of violation; • A whistleblowing system that allows employees to report any breach or situation that is contrary to the code of conduct. It ensures the protection of whistleblowers as provided for by the Sapin 2 law. An Ethical Committee receives the alert, checks its validity, and, if appropriate, transmits it to one or more persons responsible for conducting an inquiry; • A training course for the sales force and its management. After the course was rolled out in France and then internationally in October 2021, efforts were stepped up in 2022 and 2023; • Internal and external accounting control procedures to ensure that the accounts do not hide corruption and influence peddling; • Procedures for assessing the situation of customers, primary suppliers and consultants in relation to the corruption risk map. 29 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
/ KEY INDICATOR A Risk Committee and an Ethics Committee are responsible for managing this risk and the associated issues. Our aim is to train at least 90% of the sales staff and their managers. NB: The training is considered to be “validated” on condition that a minimum rate of correct answers of 80% is obtained. If the rate of correct answers is lower, the trainee must repeat the entire course. In 2021, the e-learning rate in France was 88.3%. Internationally, the figure was 47.6%, with the course starting in October. In 2022, the training rate for all countries for e-learning was 89.2%. In 2023, the average Group-wide training rate for the anticorruption e-learning module was 85.3%, down on the previous year. This change is mainly due to the pace of our reminder campaigns to our employees, as part of the anticorruption training module: the 85.3% rate was established shortly before a reminder cycle; the result therefore did not benefit from the reminder effort and the resulting increase in the rate. Rate of training for the anti-corruption e-learning module Target 90% 0% 10% 20% 30% 40% 50% 60% 80% 70% 90% 100% 2022 2023 89.2% 85.3% 30 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
COMPLIANCE Due diligence / RISK FACTORS AND CONSEQUENCES The Act of 27 March 2017 on the duty of care of parent companies and ordering companies requires large companies to prevent any serious violation of human rights and fundamental freedoms, personal health and safety, and the environment. The scope of application includes not only the company's activity, but also its sphere of influence (subsidiaries, subcontractors and suppliers). A due diligence fault may be committed due to a nonexistent, incomplete or ineffective due diligence plan. If a company fails to respond to a formal notice, it may be required to comply, with a penalty payment, or incur civil liability for environmental, health or human rights damage. The company executives' criminal liability may also be incurred. Finally, the company may suffer from a tarnished image in the event of a proven disaster. / MEANS OF CONTROL DESCOURS & CABAUD works with approved suppliers and service providers who respect the Group's values and commitments. Through the framework contracts put in place, suppliers undertake in particular to comply with the requirements of the Charter of CSR commitments for DESCOURS & CABAUD suppliers, which will be reviewed in 2023. This charter sets out the minimum standards required in terms of respect for human rights, business ethics (primarily the fight against corruption) and reducing environmental impact. All the Group's employees, as well as new arrivals, benefit from a training programme on the prevention of corruption risks as soon as they join the Group. In 2023, DESCOURS & CABAUD continued deploying its Sustainable Procurement roadmap, which was launched in 2019 after the Group had finished mapping its risks. This policy is focused on providing transparency throughout the supply chain through greater visibility of the social, environmental and ethical performance of its suppliers and business partners. The Procurement Division is responsible for ensuring the compliance of its listed suppliers. It is committed to implementing a process for monitoring and measuring social and environmental performance, and strives to engage product and service providers with the process. In 2022, all employees within the Procurement Division (and who had been in the company back in September 2021) received trained on the issues relating to this topic from training organisation ORSYS. They have also been alerted to the actions that must be implemented through the purchasing processes. To support the deployment of its approach among its registered suppliers, and in particular for a targeted scope of suppliers identified as representing the highest level of commitment and risk for the Group, a CSR evaluation by an independent third party (EcoVadis) is required into the environmental, social, business ethics and subcontracting performance. This system, already in place in previous years, has been maintained for 2023. The results collected form an integral part of the overall supplier assessments, which enhance the level achieved but also continual progress, encouraging suppliers to take the necessary corrective action. The Group's senior management team is also committed to upholding sustainable procurement practices. Meeting payment deadlines has been identified as an important objective. DESCOURS & CABAUD has been based in Shanghai for almost 20 years and has appointed a team of 25 people to manage its supplier qualification policy in Asia. Their efforts have resulted in a CSR code of conduct that covers respect for human rights, business ethics and the reduction of environmental impacts, on-site audits carried out by a dedicated team of inspectors/auditors and by third parties, and general purchasing conditions that include CSR obligations. More specifically, since 2022, a pre-qualification visit has been carried out upstream of the commercial relationship. This pre-audit addresses CSR compliance issues and helps to validate or reject the conduct of pre-contractual negotiations with the potential supplier: 100% of accounts payable opened since 2022 and 2023 have been approved by this pre-qualification assessment. 31 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
At the end of this pre-qualification visit, a level of requirement is estimated and assigned to each supplier on a scale of 1 to 3, incorporating various criteria such as business volume, the industrial sector concerned or the country of production. Each level of requirement triggers its own specific controls. The supplier qualification policy therefore provides for several types of audits and controls to be carried out and followed up when business relationships are established. All the tools deployed in this respect are based on a siteby-site approach, as close as possible to the production plants, and pave the way for corrective action plans when the situation requires the support of a supplier. Audits were conducted and renewed in 2024 according to the intervals specified by the policy with the aim of guiding strategic purchasing policy decisions by assigning compliance scores with the pillars of CSR, quality and reliability in business. / KEY INDICATOR For 2023, the indicator covers the main suppliers based in Asia (requirement levels 2 & 3 assigned according to DC GLOBAL SOURCING ASIA's own grid). The requirement levels vary according to the Group's level of commitment to a supplier, including the volume of business done, but also taking into account the location, as well as the level of CSR maturity. The target is to carry out a 100% assessment on this panel of suppliers identified as representing the highest level of commitment and risk for the Group. % of Asian suppliers assessed (requirement level 2 and 3) The deviation from the target at the end of the year is justified by the time required to validate the most recent qualification audits of suppliers placed at a high level of requirement during 2023. Target 100% 0% 10% 20% 30% 40% 50% 60% 80% 70% 90% 100% 2022 2021 2023 92.5% 71% 96% / QUALIFICATION OF ASIAN SUPPLIERS IN TERMS OF CSR MATURITY Identify a potential supplier Requirement level 1 Pre-qualification visit by the DC GLOBAL SOURCING team Requirement level 2 DCA audit by the DC GLOBAL SOURCING team Requirement level 3 EcoVadis questionnaire + on-site HSE audit or Third-party CSR audit Pre-approval inspection Supplier approved Assign a CSR control requirement level based on the: • Supplier's criticality level • DESCOURS & CABAUD Group's potential commitment to the business volume Supplier not approved Supplier not qualified Supplier qualified for the business relationship • Follow-up of action plans • Renewal audit every one to three years 32 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
COMPLIANCE Our social policy COMPLIANCE Equal opportunities For more than 240 years, DESCOURS & CABAUD's employees have continually shaped and influenced the Group's history and legacy. The company's human capital is inextricably woven into its development and competitiveness. The Group's growth plan, which features an operational performance programme to enhance the services offered to its customers, is driven by the ambition of improving its employer brand and developing a more collaborative and win-oriented organisational culture. Supported by the Human Resources Departments of the Group and its subsidiaries, DESCOURS & CABAUD's policy aims to develop the expertise of its teams and to support professional development projects in line with its needs. At the end of 2023, the Group sent the second edition of its social barometer to employees in a number of countries to measure their commitment, and extended it to a number of subsidiaries across Europe (Italy, Netherlands, Germany, France, Austria, Belgium and Portugal). The aim of this initiative is to measure the level of employee satisfaction and commitment and, where necessary, to initiate corrective action plans to improve certain situations and prevent key issues such as absenteeism, staff turnover and loss of attractiveness. The principles of equal treatment and diversity are inalienable values at DESCOURS & CABAUD and binding on all its employees. The Group sees diversity as a performance driver: this commitment has led to an increase in the proportion of women in the teams, including in so-called “masculine” professions, with the percentage rising by around +0.5% compared with the workforce in 2022, and this same indicator already rose by +1.2% between 2021 and 2022. The Group is also keen to extend its “Diversity commitment” within its sphere of influence, such as by using the services of the sheltered or protected employment sectors. Helping workers with disabilities The Group is a staunch advocate of equal treatment for all and is committed to supporting employment for people with disabilities throughout their career. A policy has been produced in France to formalise the Group's commitments towards people with disabilities. For example, DESCOURS & CABAUD regularly takes part in forums focusing on employment for disabled people, and posts its vacancies on specialised websites. In addition, the Group allows employees with disabilities to benefit from specific organisational or hardware arrangements to improve their employability. Training accessible to all (France): Percentage of disabled employees (France): 5.3% of the disabled workforce Breakdown between men and women (Group): 2023 RESULTS Women 23% Managers 16.5% Women 25.7% Men 74.3% Men 77% Non-managers 83.5% 33 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
COMPLIANCE Development and management of talents / RISKS AND CONSEQUENCES A company is first and foremost an organisation made up of human factors and material resources. In a trading activity, the human factor is key, effective management and well-trained people give their organisations a competitive advantage, helping the company rise to every challenge, adapt to its environment and to remain forward thinking. In fact, the performance and development of DESCOURS & CABAUD is directly dependent on that of its employees. / MEANS OF CONTROL To develop the skills of its employees, the Group created its vocational university over 45 years ago. Its aim is to offer operational training courses adapted to the needs of the company. Tech'Up is constantly adapting its offering to keep pace with changes in the profession: courses designed to meet the challenges of digital development, training courses incorporating virtual classes that take place remotely but with a teacher (unlike e-learning), the creation of foreign language learning modules (available in 13 languages), the opening of a training catalogue accessible to customers, etc. Quizzes provide a highly objective way of assessing the acquisition of technical knowledge, particularly for stock plan products. These quizzes are designed and validated by experts, and help improve knowledge acquisition among employees. Our Learning Management System platform (software for managing e-learning programmes) has now been extended internationally, enabling e-learning courses to be rolled out in the languages of the countries in which the Group operates. In-house trainers were again used on an occasional basis. Transferring knowledge is key to a successful learning experience and also an important sign of recognition. That explains why we were determined to step up the involvement of our in-house trainers within our three brands. To enable our employees to improve their performance, our vocational university began offering courses to support them with their internal mobility. In addition to giving people a greater sense of confidence when taking on new duties, Tech'Up provides training on the Group's business processes, tools and services (e-commerce sites, loyalty programme, etc.). 34 DECLARATION OF NON-FINANCIAL PERFORMANCE 2023_DESCOURS & CABAUD
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