C&A Europe 2014 Sustainability Report

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1 C&A Europe 2014 Sustainability Report GRI Index This Index provides the location within our Report of content covered by the Global Reporting Initiative (GRI) G 3.1 guidelines for sustainability reporting. Disclosure Notes include level of disclosure (Partial, Full, Not Reported or Not Applicable), and additional information where relevant. GRI REFERENCE PRINT/PDF PAGE ONLINE REPORT LOCATION DISCLOSURE NOTES Part 1: Profile 1. Strategy and analysis 1.1 Chairman and Co-CEOs message on sustainability. 4 Message from our CEOs 1.2 Description of key sustainability impacts, risks and opportunities Organisational profile 2.1 Name of the organisation. 2 About C&A 2.2 Primary brands. 2 About C&A 2.3 Operational structure. C&A Europe is organised under the roof of COFRA Holding AG, headquartered in Zug, Switzerland. Central Buying (headquarters in Düsseldorf and Vilvoorde) works in close cooperation with Regional Marketing Divisions in the different European Countries. Regional Marketing is the link between Central Buying and the national Selling organisations (stores and distribution centres). 2.4 Location of headquarters. About C&A Organisational headquarters: Düsseldorf, Germany; Vilvoorde, Belgium. 2.5 Countries of operation. 2 About C&A 2.6 Nature of ownership and legal form. C&A is a family-owned business and its corporate entities are organised as limited companies. 2.7 Markets served. 2 Markets served 2.8 Scale of the organisation. 2 About C&A C&A does not disclose financial information. 2.9 Significant changes in operation. About C&A/Timeline 2.10 Awards received. 44 Recognition 3. Report parameters 3.1 Reporting period. 46 Reporting approach 3.2 Date of most recent previous report. 46 Reporting approach 3.3 Reporting cycle. 46 Reporting approach 3.4 Contact point regarding the report. 46 Reporting approach sustainability@canda.com

2 3. Report parameters continued 3.5 Process for defining content 8, Reporting approach 3.6 Boundary of the Report. 46 Reporting approach 3.7 Limitations on report scope. 46 Reporting approach 3.8 Basis for reporting on joint ventures, subsidiaries, etc. 46 Reporting approach 3.9 Data measurement techniques. 46 Reporting approach 3.10 Restatements of information. 46 Reporting approach No restatements made Significant changes in scope or measurement methods. 46 Reporting approach No significant changes made GRI content index. GRI Index GRI index is included in our Online Report External assurance policy. Our policy is to seek external assurance of our GRI Application Level, the assurance Testat is posted in our Online Report. 4. Governance, commitments and engagement Governance 4.1 Governance structure. The C&A European Executive Board (EEB), the business highest management level, defines the economic, social and sustainability strategy and supervises how it is put into practice and implemented in all relevant areas of the company. The EEB is made up of 6 members (all executive): Buying/Marketing and Finance/Selling/Services/Sourcing. EEB members are all male (reporting period). Sustainable Business Development (SBD) is coordinating all decisions in regards to Sustainability. 4.2 Chair s executive status. Yes, EEB has responsibility for governance, strategy, results, human resources and Corporate Social Responsibility to ensure consistency and continuity. 4.3 Independent Board members. There is no independent Board member. 4.4 Board mechanisms for employee and shareholder feedback. 35, 37 Our Employees Shareholder part of indicator Not Applicable. 4.5 Remuneration linkage to performance. There is a linkage between compensation for members of the EEB and C&As performance. 4.6 Board procedures to avoid conflicts of interest. To prevent conflict of interests C&A has established complaints management within the company, partnerships with the works councils and the C&A Fairness Channel. 4.7 Board procedures on composition, qualifications and expertise. C&A uses an International Control Risk Management System that is based on an analysis of possible influences on the company and risk that it faces. This system helps C&A to assess the quality of its processes and internal controls, and subsequently develop opportunities for improvement and put them into practice. 4.8 Internal statements of mission, values and codes of conduct. 2, 13 About C&A/Values 4.9 Board procedures for overseeing sustainability performance Board performance evaluation. See 4.7.

3 Commitments to external initiatives 4.11 Precautionary principle Participation in external charters or initiatives Memberships in associations. 44 Stakeholder engagement 4.14 List of stakeholders Identification and selection of stakeholders Approaches to stakeholder engagement Key topics and concerns raised through stakeholder engagement. 10 Parts 2 and 3: Management Approach and Performance Indicators Economic DMA Economic: Management approach Economic performance, Market presence, Indirect economic impacts. 8 About C&A EC1 Direct economic performance Please see financial annual report at bundesanzeiger.de EC2 Financial implications, risks and opportunities of climate change. 42, 43 Carbon Footprint Europe For own operations. Despite the fact that C&As direct activities do not have a significant impact on climate change, C&A implements energy efficient activities. EC3 Coverage of defined benefit plan. Please see financial annual report at bundesanzeiger.de EC4 Significant financial assistance from government. During this reporting period no significant government assistance was received in the form of subsidies, awards, holiday entitlement or reimbursement payments. NL: promotion of in-service vocational training. A: promotion of vocational training. B: promotion of vocational training, government employment plans that subsidise employment of mostly younger less educated unemployed persons. D: reimbursement payment for semi-retirement. EC5 Range of ratios of standard entry level wage by gender compared to local Not reported. minimum wage. EC6 Spending on locally-based suppliers. Not reported. EC7 Local hiring and proportion of senior management hired locally. Almost 100% of management positions are filled by local personnel. EC8 Investments and services provided primarily for public benefit through 38, 39 Local Communities commercial, in-kind or pro bono engagement. 40, 41 EC9 Assessment of indirect economic benefits and impacts. 38, 39 40, 41 Local Communities

4 Environment DMA Environment: Management approach 42, 43 Overall, Materials, Energy, Water, Emissions and waste, Products and services, 28, 29 Green Operations Transport. 30, 31 Chemicals Water Stewardship Materials EN1 Materials used (by weight or volume). 16 Bio Cotton EN2 Recycled input materials (percentage). 43 Packing materials, hangers, recycled clothes. Energy EN3 Direct energy consumption by primary energy source. Not reported. EN4 Indirect energy consumption by primary source Carbon Footprint Europe Improving our water profile EN5 Energy saved Carbon Footprint Europe EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result Carbon Footprint Europe EN7 Initiatives to reduce indirect energy consumption and reductions achieved Carbon Footprint Europe Water EN8 Total water withdrawal by source. 30 Water Stewardship C&A Water Footprint Strategy Direct operations not reported, supply chain water footprint is reported. Formatted% pdf EN9 Water sources significantly affected by withdrawal of water. 30 Water Stewardship C&A Water Footprint Strategy Formatted% pdf EN10 Percentage and total volume of water recycled and reused. 0% EN11- EN15 Biodiversity indicators (sites in protected and high biodiversity value areas; impacts of activities on biodiversity; habitats protected or restored; biodiversity strategy; species endangered by operations). Not applicable. C&A does not own property nor is a C&A store located adjacent to or within protected and high biodiversity areas. Consequently C&A does not create significant impacts on biodiversity. C&A sells merchandise it purchases through its suppliers. Therefore C&A is only able to generate indirect impacts on biodiversity or protected habitats. C&A is working in initiatives to protect and conserve the biodiversity potentially affected throughout the sector value chain.

5 Emissions, effluents and waste EN16 Total direct and indirect greenhouse gas emissions by weight. 42 Carbon Footprint Europe EN17 Other relevant indirect greenhouse gas emissions by weight. 42 Carbon Footprint Europe EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. 42, 43 Carbon Footprint Europe EN19 Emissions of ozone-depleting substances by weight. Not reported. EN20 NOx, SOx, and other significant air emissions by type and weight. Not reported. EN21 Total water discharge by quality and destination. Not reported. EN22 Total weight of waste by type and disposal method. Not reported. EN23 Total number and volume of significant spills. During the reporting period no significant discharges were recorded. EN24 Transported, imported, exported, or treated waste deemed hazardous (weight), and transported waste shipped internationally (percentage). C&A does not transport, import or export any of the hazardous waste products included in the Basel Convention in any of the reported countries. EN25 Water bodies and related habitats significantly affected by the reporting organisation s discharges of water and runoff. 28 Acting to eliminate hazardous chemicals EN11-EN15, Environmental impact of products and services EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. 16, 17 28, 29 30, 31 Bio Cotton Chemicals Management Water Stewardship EN27 Products sold and their packaging materials that are reclaimed, by category 43 Packing materials, hangers, recycled clothes. (percentage). EN28 Fines and total number of sanctions for non-compliance with environmental C&A did not record fines or sanctions for non-compliance. laws and regulations. EN29 Environmental impacts of transporting products and other goods and materials, and transporting members of the workforce. 42, 43 Carbon Footprint Europe EN30 Total environmental protection expenditures and investments by type. Not reported. Labour practices and decent work DMA Labour: Management approach Employment, Labour/management relations, Occupational health and safety, Training and education, Diversity and equal opportunity, Equal remuneration 35, 36 Our Employees for women and men. Employment indicators LA1 Total workforce by employment type, employment contract, and region, 34-35, 36 Our Employees Total workforce by country, and total workforce by gender, are reported. broken down by gender. LA2 Total number and rate of new employee hires and employee turnover Not reported. by age group, gender, and region. LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, (categorised) by major operations. C&A provides the same benefits to temporary as to part-time and full-time employees. LA15 Return to work and retention rates after parental leave, by gender. Not reported.

6 Labour/management relations LA4 Employees covered by collective bargaining agreements (percentage). 100% LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements. Depending on national regulations the minimum notice periods lie between 2 and 52 weeks. LA6 Workforce represented in formal joint management-worker health and safety The existing committees cover all workforces. committees (percentage). LA7 Rates of injury, occupational diseases, lost days, and absenteeism, Not specified. and number of work-related fatalities by region and by gender. LA8 Education, training, counselling, prevention, and risk-control programmes Not reported. in place to assist workforce, their families, or community regarding serious diseases. LA9 Health and safety topics covered in formal agreements with trade unions. Health and safety topics are not covered in formal agreements with trade unions but in formal agreements with central works council. Training and education LA10 Average hours of training per year per employee by gender, and by employee category. See HR3 LA11 Programmes for skills management and lifelong learning for employees. 35, 36 Our Employees LA12 Employees receiving regular performance and career development reviews, by gender (percentage). Not reported, up to 100% depending on field of activity or scope of duties. Diversity and equal opportunity LA13 Diversity of governance bodies and employee categories (according to gender, age group, minority group membership, and other indicators). LA14 Ratio of basic salary and remuneration of women to men by employee category. Human rights DMA Human Rights: Management approach Investment and procurement practices, Non-discrimination, Labour rights, Indigenous rights, Assessment, Remediation. Investment and procurement practices HR1 Investment agreements and contracts that include human rights concerns, or that have undergone human rights screening (Percentage and total number). HR2 Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken. HR3 Employee training on human rights that are relevant to operations (total hours and percentage of employees). 36 Our Employees Total workforce by gender. Our European Executive Board membership is presently 16% female, 84% male. C&A Europe Sustainability Committee is presently 25% female, 75% male members. Our main stores staff is predominantly female (+/- 80%/20%). There is no gender discrimination on remuneration and benefits Supply Workers Rights Our Employees Delivering for workers safety, Supply Chain Strategy and Policies All (100%) of our suppliers (c. 600) are covered by risk assessments and inspections that include workers rights. 100% of store manager in Germany: 7h workshop workers rights. 100% of employees in HQ Duesseldorf: 3h workshop on social behaviour.

7 Non-discrimination HR4 Total number of incidents of discrimination and actions taken No incidents of discrimination were recorded by C&A employees. Workers rights and indigenous people s rights HR5 HR6 HR7 Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at risk, and actions taken. Operations and suppliers identified as having risk for incidents of child labour, and measures taken. Operations and significant suppliers identified as having risk for incidents of forced or compulsory labour, and measures taken , Delivering for workers safety, Supporting communities in our supply chain , Delivering for workers safety, Supporting communities in our supply chain , Delivering for workers safety, Supporting communities in our supply chain. HR8 Security personnel trained in the organisation s policies or procedures Not relevant concerning aspects of human rights (percentage). HR9 Incidents of violations involving rights of indigenous people and actions taken (total number). There were no significant incidents of violations involving rights of indigenous people reported. Assessment and remediation HR10 Operations that have been subject to human rights reviews and/or impact assessments (percentage and total number). 13, 24 How we work, Delivering for workers safety. HR11 Number of grievances related to human rights filed, addressed and resolved 13 Working with integrity Fairness Channel covers operations and supply matters: <20 per year through formal grievance mechanisms. Society DMA Society: Management approach 8 Local Communities, Corruption, Public policy, Anti-competitive behaviour, 13 Local Communities Compliance GRI Index Local Communities SO1 Percentage of operations with implemented local community engagement, All (100%) of our operations have community engagement programmes. impact assessments, and development programmes. SO9 Operations with significant potential or actual negative impacts on local Not applicable communities. SO10 Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities. Not applicable Anti-corruption SO2 Percentage and total number of business units analysed for risks related to 13 Anti-corruption All (100%) of business units are regularly assessed. corruption. SO3 Percentage of employees trained in organisation s anti-corruption policies 13 Anti-corruption Management 100%, other employees by relevant function. and procedures. SO4 Actions taken in response to incidents of corruption. 13 Anti-corruption

8 Public policy, regulation and compliance SO5 Public policy positions and participation in public policy development and lobbying. 44 SO6 Total value of financial and in-kind contributions to political parties, None. politicians, and related institutions by country. SO7 Total number of legal actions for anti-competitive behaviour, anti-trust, None. and monopoly practices and their outcomes. SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. None. Product responsibility DMA Product Responsibility: Management approach 8 Customer health and safety, Product and service labelling, Marketing 21 Product Quality and Safety communications, Customer privacy, Compliance. GRI Index Customer health and safety PR1 Life cycle stages in which health and safety impacts of products and services 21 Product Quality and Safety All products (100%) are covered. are assessed for improvement, and percentage of significant products and services categories subject to such procedures. PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes Product Quality and Safety (Two voluntary withdrawals in 2013). Product labelling PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements. EU labelling Regulations, directive on textile names 100%, directive on the labelling of footwear 100%, CEE for toys and sunglasses 100%, various national legal requirements and labelling obligations for leather goods 100%, Oeko-tex certificate, Bio Cotton label. PR4 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements. No significant incidents of non-compliance were recorded. Customer satisfaction PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. (chapter recognition) Marketing communications PR6 Programmes for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship. Marketing communications are checked for the adherence to applicable laws.

9 Compliance PR7 Total number of incidents of non-compliance with regulations and voluntary None codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes. PR8 Total number of substantiated complaints regarding breaches of customer None privacy and losses of customer data. PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services. None

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