The World Is Our Horizon - CMA CGM GROUP

122018:Awards,certifications& collaborationsCooperationAs part of its open continued improvement drive, the Grouprelies on inter-company cooperation to effectively anticipatethe CSR issues and risks and to share the experiencefeedback and good practices with its peers, partners and allits stakeholders.AwardsIn 2018, the Group received 40 distinctions and Awards.These awards recognised the high quality of service,customer relationship and operational excellence providedby the Group as well as its CSR and environmental initiatives.network working towards thedevelopment of a maritimeindustry free of corruption thatenables fair trade to the benefitof society at large.EcoVadis - In 2018, for theHappy candidates - In 2018,the CMA CGM Group HRdepartment was awardedthe choosemycompany.com / HappyIndex / Candidates 2018accreditation. This newlabel recognises the highquality of the recruitmentprocess implementedby the Group HRdepartment which, for its1st participation placed 2ndin the general ranking ofcompanies with over 1000employees.12CDP - Carbon DisclosureProject - With a B- rating,CMA CGM received anabove-average score in itsbusiness sector in 2018.Happy Trainees - In 2018,for the 4th consecutiveyear, the CMA CGM headoffice received the “HappyTrainees” label rewardingthe Group’s HR policy fortrainees and apprentices.ISO certifications:The entire scope of theCMA CGM owned fleet1obtained the triple ISO9001, ISO 14001 andOHSAS 18001 certification.39% of the Terminalssubject to the CMA CGMHO Terminals SSE policy2are ISO 9001, 14001 and/orOHSAS 18001-certified.Lloyd’s List Global Award -CMA CGM was presentedwith the Environment Prizeat the Lloyd’s List GlobalAwards, a prize whichhighlights the pioneeringrole played by the Group inthe energy transition in theshipping industry.CMA Ships scope excluding Mercosul Line.Scope of the Terminals subject to the CMA CGM HO Terminals SSE policy – List available in the methodological note.was established between theshipping line members toquickly share information onsecurity and safety incidentsaffecting the containerisedcargo.European CommunityShipowners’ AssociationsContainer Ship Safety Forum -Safety at sea prize – InNovember 2018, APL wasawarded the Crew ConnectGlobal safety at sea prize. Thisprize was bestowed upon APLfor its practices and initiativeswhich helped to reduce risksfor human life at sea.an inter-company initiativeagainst counterfeiting andpiracy.Cargo Incident NotificationSystem is a platform thatLaunched in 2014, the CSSFis a NGO that brings togetherthe major shipping playerswhose aim is to improvesafety performance andmanagement practices in thecontainer shipping industry.Armateurs de France is aprofessional organisationwhich brings togetherall French shipping andmaritime service providers.Its role is to represent theFrench shipping companieswith national and EU publicauthorities, the InternationalMaritime Organisation andthe International LabourOrganisation.is a trade association whichpromotes the interests ofEuropean shipping so thatthe industry can best serveEuropean and internationaltrade in a free and competitive environment to thebenefit of shippers andconsumers.13Clean Cargo WorkingGroup is an inter-companyinitiative involving majorbrands, cargo carriers andfreight forwarders whichis dedicated to reducingthe environmental impactsof international goodscarriage.World Shipping Councilis the industry tradegroup representing theinternational liner shippingindustry. The WSC supportsthe development and thesupervision of regulatoryissues relating to safety,security, environment andother maritime regulations.Centre INter-entreprisesDe l’EXpatriation (CINDEX– Shared companyexpatriation centre) is aunique platform for discussingand sharing good practicesregarding the internationalmobility strategies andpolicies of major globalEuropean groups.2018 Corporate Social ResponsIbility Report4th consecutive year, theGroup achieved a GOLDlevel with a substantialimprovement of its rating.EcoVadis, the CSR ratingagency, has ranked CMACGM amongst the 1% ofthe most efficient shippingcompanies.Business Actions to StopConterfeiting & Piracy is2018: Awards, certifications & collaborationsMaritime Anti-CorruptionNetwork is a global business

14CSR within CMA CGM“The CMA CGM Group has always believedthat its economic performance was inextricablylinked to social and environmental performance.”Main thrustsand challengesDuring 2018, the Group’s CSR approach was elaborated and adjusted based on its businessactivities to better reflect its desire to be a driving force of environmental, economic andsocial transition.The approach is broken down into 6 thrusts and 15 challenges:Ethics and complianceValue chainDiversityCollaborators' working conditionsCollaborators' developmentCSR within CMA CGMCustomer CentricityInnovation and digitaltransformationSustainable procurementRodolphe SaadéChairman and Chief Executive Officer of the CMA CGM Group15EnvironmentSocietalHealth, safety and securityof our collaboratorsAssets safetyEnergiesMaterials& wastePollution & releaseOcean : biodiversityTerritorial integration& developmentCMA CGM Foundationlocal & emergency reliefThe ambitionsof the 6 thrustsEthics and compliancePrevent corruption risks and develop our policyregarding ethics and compliance among allour stakeholdersValue chainCarry on with our development and innovationpolicy, to improve our client's satisfactionSocialPromote diversity among our teams and develop training courses for all our employeesSafety and securityPrevent and reduce accidents, security risks,and improve work life qualityEnvironmentImprove vessels' energy efficiency anddevelop "eco-friendly" technologiesSocietalContinue our commitment with communitiesthrough the Foundation and the Group andlocal actions.2018 Corporate Social ResponsIbility ReportSafety and Security

2018 Corporate Social ResponsIbility ReportInclusionof the SustainableDevelopment Goals– SDGs within theGroup’s CSR approachThe UN Sustainable Development Goals haveestablished the new course for businesseswhich, like CMA CGM, are acting responsiblyand would like to take responsibility for theireconomic, social, societal and environmentalimpacts.This list of 17 global goals includes therespect for human rights and fundamental freedoms, the fight against inequality and the preservation of the environment.he materiality analysis3 was updated in orderto rank the Group’s 15 CSR challenges.These challenges have been ranked basedon priority both by taking into account thestrategy of the Group and its subsidiaries andby incorporating the vision of its stakeholders.In 2018, CMA CGM measured its CSR approachagainst the 17 SDGs. The aim was to determinethe extent to which the Group’s CSR approachwas in line the UN programme. The results ofthese efforts are outlined in the introductionto each part of this document.In 2018, 80 Group and subsidiary employeesand 4 customers were surveyed and gavetheir opinions regarding the CMA CGM CSRapproach.Pollutions& releaseCMA CGMCRS issuesEmployees safety& securityEnergiesAssetssecurity 16CSR within CMA CGM17Group CSRmateriality matrixEthics and complianceCustomerCentricityValue chainEthics& ComplianceEmployeesworking conditions Safety and SecurityEnvironmentRessources,materialsand wasteResponsible procurement:sustainable partnershipswith our suppliersDiversityTerritorial onLocal actions& Philantropy Innovation& sustainableadded valueOcean:biodiversitySocietal During 2019, the priority SDGs for the Group will be identified alongside the completion ofthe CSR risk assessment and the comparison with the CSR challenges. StakeholdersCSR issuesAs a reminder, the CSR thrusts and challenges were identified with reference to the exhaustivelist of CSR criteria included in Article 225 of the Grenelle II Act.3The details regarding the methodology used to prepare the materiality matrix are provided in the Methodological Note of this report.

The Group’s CSRrisk mappingWith support from the Risk Managementdepartment, a CSR risk mapping wascreated in connection with the materialitymatrix. The 2018 work involved:- Firstly, identifying the existing mappings ofthe Group’s risks associated with each of the15 CSR challenges and positioning each ofthese risks in a “CSR” risk mapping;- Secondly, the challenges of the materialitymatrix and the risks of the CSR risk mappingwere measured against each other. Thisserved to determine: Whether the positioning of each risk wassimilar to or differed from the challenges. Inthis exercise, differences were identified andexplained.- Risk of non-compliance with “ethicsand compliance” regulations c sanctions and personal dataprotection- Risks in partnerships with our suppliers andsubcontractors- Breach of human rights- Improper working conditions- Poor health & safety management- Poor security management- Uncontrolled climatic change- Scarcity of materials and uncontrolledwaste production- Uncontrolled pollution- Harm to biodiversity18Steering of CSRperformanceThe CSR and Environment Departmentreports to General Management and istasked with: Implementing the CSR policy in line withall of the Group’s policies; Identifying stakeholder’s CSR issues,priorities and expectations; Setting CSR goals and coordinating theCSR action plans; Assessing, measuring and reporting onthe CSR performance.A CSR dashboard has been established tomeasure and steer the Group’s sustainabledevelopment performance, through a seriesof quantitative and qualitative indicators whichare consolidated on a half-yearly basis. – cf.page 110 Table of Indicators.The exhaustiveness and reliability of the data,which increases from year to year, is guaranteedby indicator sheets describing in particularthe collection and consolidation scope andprocesses. An extract of these indicator sheetsis included in the “Methodological Note”section of this document. – cf. page 114Methodological Note.A CSR Committee meets on a quarterlybasis to analyse the “CSR Dashboard”,didentify the strategic thrusts drivenby Top Management and determinethe appropriate course of action. ThisCommittee is made up of members fromdepartments such as Human Resources,Risk Management and Internal Audit,Compliance, Finance, Communication andMarketing, and the network of agencies,Purchasing, Transformation and Innovation,Security, Safety and Environment, the Linesas well as CMA Ships, the CMA CGMFoundation and subsidiaries.It is also worth noting that specific “businessline” or “project” Committee meetingsare held in parallel and more operationalworking groups are set up at a greaterfrequency.At the same time, an expanding network ofCSR officers has been established.The Group’s CSR performancerecognised by EcoVadisCMA CGM communicates about its CSRapproach both within and outside thecompany. Moreover, in our efforts to extendour CSR policy beyond the mere regulatoryrequirements, every year, the Groupvoluntarily submits its CSR performance forassessment by EcoVadis.With a GOLD rating in 2018, CMA CGMranks amongst the top 1% of companiesassessed by EcoVadis worldwide.Furthermore, in 2018, the Silver SustainabilityAward was bestowed upon CMA CGMby Nike to recognise its sustainabledevelopment commitment.192018 Corporate Social ResponsIbility ReportTo date, the following CSR-related riskshave been identified:Risk management is handled by theCorporate Risk Management and InternalAudit Department. The Risk Managementteam implements a Corporate level approachunder the impetus of Top Management, withcontribution from the various business lines.The methodology is based on a qualitativeassessment carried out at a given time andprojected over a year.The Group’s risk mapping and the micro riskmappings per business line / function arebased on two criteria:- Probability of occurrence of the risk;- Severity of the impacts of the risk.CSR reporting is coordinated by the CSRDepartment. The data from the “CSRDashboard” is checked by an IndependentThird-Party Organisation every year. Thereport from this Independent Third-PartyOrganisation is appended hereto. – cf. page107 Report by one of the Statutory AuditorsAnalysing the trends of these indicatorsserves to quantify the impact of the policiesimplemented, identify the thrusts for growthand determinine and/or adjust the goals andaction plans for the year in progress and inthe medium term. – cf. page 107 CSR Goals,2018 achievements, 2019 action plansCSR within CMA CGM The challenges without associated risks.Efforts are underway to conduct analyses ofthe missing risks;Risk management and mapping of theGroup’s risks

2018 Corporate Social ResponsIbility ReportJoint actions and interactionswith stakeholdersRecognising that the CSR approach is anevolving issue, and with a view to fosteringthe sharing of views and practices, the Groupdemonstrates its commitment through: Inter-company and multi-organisationcooperative actions; Its participation in conferences ; Partnerships with other companiesand economic players particularly bycontributing to work and initiatives ; And of course, training and associatingcustomers and suppliers and all of theGroup’s stakeholders in the CMA CGMCSR approach and raising their awarenessExamples of the Group’s various actionsare given throughout this report.CSR within CMA CGM20ETHICS TY &SECURITYVideo showing the CMA CGM CSRapproach for all stakeholders:https://www.youtube.com/watch?v e45k9ub7r70&feature youtu.be“Our future developmentcannot be reasonably achievedwithout an ambitious socialresponsibility policy. Thisassessment, which ranks usamongst the top 1% of themost responsible companiesdemonstrates our desire to charta course towards an even morerespectful future and encouragesus keep stepping up our efforts.This ambition is intrinsicallylinked with the family-orienteddimension of our group and itsstrong human-focused values.”Tanya Saadé ZeennyExecutive Officer Delegateof the CMA CGM Group21Joint actionsand interactionswith stakeholdersCSR days: raising the awareness ofemployees to the Group CSR approachDuring the european sustainable development week 2018, cma cgm organised aseries of conferences, workshops and opendays at the head office bringing togetherover 600 employees.2 Conferences Presentation of the 6 main thrusts and theCSR strategy within CMA CGM ; Presentation of the environmental challengesfor the shipping sector.2 Open DaysMeeting of the employees with the membersof 3 associations, for the launch of the skillsponsorship programme by the CMA CGMFoundation.6 workshopsHolding of 6 more targeted workshops forapproximately twenty employees per sessionto raise their awareness regarding: The Environment strategy: new CO2, SOx,NOx challenges; new regulations, etc. Ethics & Compliance: Gift and hospitality,hotline, AFA Question, Due diligence, etc.

In 2018:Added valuecontributionover the valuechainInnovative projects and initiatives as part of the Group’stransformationA programme to improve thecustomer journey and experienceA responsible procurementprogramme for a lasting relationship with our suppliers andsubcontractorsSUPPLIERCMA ltransformationAdded valueCustomerCentricityAs an expert in logistics, a core business of the Group, CMA CGM must be exemplary atall stages of its value chain. As a matter of fact, with over 30,000 suppliers and 65,000customers worldwide, CMA CGM innovates and imagines the goods shipping solutionsof the future by developing: Innovation & digital transformation to serve operational performance; Customer satisfaction: improving the customer experience at all stages of the process; Responsible procurement: establishing a lasting and efficient relationship withsuppliers and subcontractors.231. Several dedicated teams(Digital Office, Transformation, DigitalFactory, Data) to achieve the digitaltransformation of the Group. Their commonaim is to initiate new projects, prove theirconcept and commercial value, developthe best of these projects and ease theirimplementation within the Group’s businesslines at an international scale.2. Our digital strategy is built on 5 strengthswhich will transform the shipping sector overthe next 10 years and which will help toanswer to the following 5 questions: How can we remain relevant in anconstantly changing industry? How can we continuously and efficientlyoptimise the management of operations? How can we optimise our rates andvolumes for our customers? How can we foster customer loyaltythrough a tailored customer experience? How can we provide the Group’s employeeswith the tools to do their jobs better?3. An investment fund called CMA CGMVentures, which invested in a dozen start-upin France and abroad. The goal is to supportthe growth of these start-up internationally,while allowing them to draw from the CMACGM ecosystem and the expertise of allemployees. In most cases, these are startup with which the Group has developedoperational partnerships (Nyshex4 , e-dray5 ,Traxens) so that they can continue over thelong term.4NYSHEX: leader on the digital market for sea freight contracts.5E-dray: software aimed at improving the container shipping operations.2018 Corporate Social ResponsIbility Report1. Innovation & digitaltransformation toenhance performanceA dedicated organisationDigital transformation is a strategic goal forthe Group. It includes both improving theGroup’s performance and enhancing theservice provided to customers.The Group relies on 3 elements as a means ofconcretely bringing about this transformation:Added value contribution over the value chain22Strategic course centredaround the customer, Group expansion, innovation and humanexpertise

24“This challenge stemmed from a simpleand operational observation: shipping isvery competitive and one major issue forthe industry’s players is the optimisation ofcontainer flows, as several steps are requiredfor the timely departure of the container fromthe terminal [.]. The aim of this challenge isto improve the supply chain so as to providethe best possible service to customersand reflect the CMA CGM Group’s overalldigitalisation policy.”Start-up had until late 2018 to submit theirprojects. The selected candidates will beable to test and implement their solutionsfor a period of 3 months in early 2019 withinThe Camp and will be presented with a 15,000 grant.BlueBox is a virtual suggestion box topromote innovation and creativity for digitaltransformation. “Digital technology plays apivotal role in the company’s transformationthrough its agility, simplification andespecially the collaborative applications”,explained Thierry Billion, Senior VicePresident and sponsor of the Digital Culturetheme.Three themes were selected to guide theemployees’ ideas: Customer Focus; Operational Experience; Digital Culture.This virtual suggestion box was a resoundingsuccess given that: 379 ideas were deposited into the Bluebox; 60% of the Head Office employees tookpart in the competition by offering ideas,voting for or commenting on their favouriteideas.The 3 selected projects subsequently tookpart in the Design Thinking phase. For 3days and based on collaborative workshops,the various groups refined their ideas,determined the user needs as well as theissues in order to achieve a design draftand a description of the various desiredfunctionalities.Key partnerships signedAt the Salon des Entrepreneurs businessfair held in October 2017, Rodolphe Saadéannounced his intention to create a CMACGM start-up incubator in Marseilles (France)This project will build on the variousinitiatives developed by CMA CGM in theregion: S upport of “Carburateur”, a businessincubator located in the Northern districtsof Marseilles and created with supportfrom public authorities; Partnership with Aix Marseilles French Tech; Partnership with The Camp, an innovativecampus bringing together major corporations, start-up, professors and researchers– cf page 62 – Fostering creative cooperationwith The Camp; Partnerships with global IT leaders such asIBM and Infosys.ZEBOXZEBOX is an international start-up incubatorand accelerator that was created in Marseillesin 2018 by Rodolphe Saadé, Chief ExecutiveOfficer of the CMA CGM Group. It works inareas such as transport, logistics, mobilityand X.0 industry.As part of its incubation programme, ZEBOXhosts 15 start-up for a period of 12 to 18months. An acceleration programme willbe launched in early 2019 and will make itpossible to host 8 start-up for a period of 8months.The driving objective is to become aworld benchmark for innovation: artificialintelligence, blockchain, virtual reality /augmented reality, ecosystem of connectedobjects, cybersecurity, robotics, etc.ZEBOX has three goals: Guiding the success of the start-up withprojects developed based o

The Group now has over 750 offices in more than 140 countries. The brands associated with the Group's business activities are as follows: CMA CGM has various business lines which are broken down as follows: About the Group 2018 Corporate Social ResponsIbility Report CMA CGM, founded by Jacques R. Saadé, is a leading worldwide shipping group. Now