caring for the future today · 2018-12-05 · cma cgm _ csr 2017 cma cgm _ csr 2017 the cma cgm...

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CMA CGM _ CSR 2017

_ ETHICS, SOCIAL AND SOCIETAL INITIATIVES,

ENVIRONMENTAL PERFORMANCE

EXTRACTS FROM 2017CORPORATE SOCIAL RESPONSIBILITY REPORT

CARING FOR THE FUTURETODAY

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CMA CGM _ CSR 2017 CMA CGM _ CSR 2017

Word from Executive Officer

2017 Highlights

Our 2018 Goals

CSR within the Group

EXEMPLARITY IN THE FIELDS OF ETHICS AND COMPLIANCE

ADDED VALUE CONTRIBUTION TO ALL THE VALUE CHAINResponsible procurement Innovation & digital transformation Customer satisfaction

OUR EMPLOYEES’ COMMITMENTWorkforceDiversityLife quality at work An attractive employerAwards and certifications

EXCELLENCE IN SAFETY & SECURITY Maritime safety Occupational health and safety Cargo safetyInternational security

THE ENVIRONMENT PROTECTIONEnvironmental innovations and technologies Energy, emissions and air pollutantsOceans: waste, pollution, containers’ waste and biodiversity Other environmental issuesEnvironmental initiatives and awards

THE GROUP’S SOCIETAL ENGAGEMENT ON GLOBAL AND LOCAL SCALESThe CMA CGM Corporate FoundationEmergency relief – natural disasters Actions within local communities

Table of indicatorsGlossary

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6

8

9

11

15

171819

21

2223252632

33

34373840

41

42

47

50

5455

58

596465

6769

CONTENTS

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THE CMA CGM GROUP – A GLOBAL LEADER IN SHIPPING

The world’s third-largest container shipping company, the CMA CGM Group is based in Marseille. It employs over 30,000 people worldwide, of whom almost 4,500 in France. Headed today by Rodolphe Saadé, the CMA CGM Group has become a leading player in international shipping, a dominant means of transport handling over 90% of global trade. CMA CGM is present around the world with a network of over 755 offices in more than 160 countries. With its fleet of 504 ships, the Group serves over 420 of the world’s 521 commercial ports. In 2017, the Group carried 18.95 million TEUs (twenty-foot equivalent units).

Key figures

Revenue 21 billion US dollars*

Volumes transported in TEU 18.95 million*

Vessel fleet 504** including company-owned 136**

Fleet capacity in TEU 2 530 000**

Offices worldwide 755

Ports of call 420 in 160 countries

Shipping services over 200

Employees worlwide over 30 000 including in France 4 500

The CMA CGM Group, a global leader in shipping, was built on strong human, entrepreneurial and family values: initiative, boldness, integrity and imagination. Those values were present since the Group’s foundation 40 years ago, and they have contributed to its global success.

We are recognized not only for our leadership, our expertise and our business performance, but also for our environmental performance, our social and societal initiatives, as well as our ethics.

Our customers, our suppliers and our partners expect us to be exemplary in every way. This is fundamental for our Group’s image, its success and its durability.

From a sustainable development perspective, it is essential for us to take into account the challenges faced by society and the expectations of our stakeholders.

For this reason, the Group pursued an ambitious Corporate Social Responsibility Policy in 2017, based on six pillars: • An exemplary approach to ethics and compliance • Increased added value across the value chain • Employees’ commitment • Excellence in safety and security • Environmental protection • Group’s social engagement at global and local levels

Our commitment was recognized by the sustainability rating agency EcoVadis, which awarded the Group Gold recognition for the third consecutive year. We now rank among the top 1% of most responsible service providers in the world.

Our Group is proud of the actions put in place. We remain aware of the challenges ahead and our duties towards our customers, partners and suppliers.

TANYA SAADÉ ZEENNY

EXECUTIVE OFFICER

* In 2017 ** At 31 December 2017

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SAFETY AND SECURITY• The average number of deficiencies per inspection has been reduced by 27% between 2016 and 2017• Several certifications have been granted: 13 ISO certifications for terminals, and one triple QSE certification for CMA Ships• The health and security performances for employees have been significantly improved: the frequency rate of acci-dents at work with sick leave has been reduced by 35% for the fleet and 45% for the terminals between 2016 and 2017• The preventive safety policy in a context of major natural disasters and geopolitical instability has been repli-cated

ENVIRONMENT • Ships of the future: CMA CGM chose LNG to propulse its 9 giant future vessels. • Energy efficiency: the CO2 perfor-mance has been improved by 10% between 2016 and 2017• MyCarbonfootprint: a premium so-lution to evaluate CO2 emissions for more than 80 strategic clients has been developed• Marine environment: 0 major pollution and 0 container lost at sea in 2017• Participation in 7 voluntary programs in 16 ports worldwide

SOCIETAL • Containers of Hope Operation: 121 containers in 2017, 600 since the begin-ning of the operation • 2017 Call for proposals for the Corporate Foundation: 51 applications received, 13 associations selected • More than 20 projects for local communities have been launched by CMA CGM employees in 2017

COLLABORATIONS

•The CMA CGM Group CSR approach is based on 6 main axis: Ethics and Compliance, Value Chain, Social, Safety and Security, Environment and Societal•CMA CGM has won the “Gold Recognition Level” by EcoVadis for the third successive year, with an improvement of its grade every year.•In 2017, the Group obtained 7 CSR-related awards.

MACNThe Maritime

Anti-Corruption Network

CSSFThe Container

Ship Safety Forum

CINSCargo Incident

Notification System

BASCAPBusiness Actions

to Stop Conterfeiting & Piracy

CINDEXInter-Company

Expatriation Centre

Clean Cargo Working Group

ETHICS AND COMPLIANCE• A strategy based on 4 axis: fight against corruption, respect of economic sanctions, respect of competition law, personal data management• The Ethics & Compliance policy and organization have been strengthened

VALUE CHAIN • A strategic course has been fixed centered on the customer, the develop-ment, the innovation, and the human • 40 innovative projects and initiatives have been launched as part of the Group transformation • 5 strategic partnerships have been signed and a start-up incubator in Marseilles is being established • A responsible procurement policy has been launched to sustain the durable relations with suppliers and subcontrac-tors

SOCIAL • 34 647 collaborators worldwide, of which 4 513 seafarers• 145 nationalities in 140 countries• A diversity comity has been established in order to work on 3 key axis: gender equality, intercultural, intergenerational • The “we are shipping” initiative has been launched to promote parity between men and women in the Group and in the industry • 7 partnerships with prestigious univer-sities have been reappointed

2017 HIGHLIGHTS CSR APPROACH

WITHIN CMA CGM GROUP

2017: AWARDS, CERTIFICATIONS

EcoVadis CDP - Carbon Disclosure

Project

Happy Trainees

Happy at Work

Best Place to Work

Safety At Sea Awards 2017

ISO Certifications

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STRATEGIC PRIORITIES: ADJUSTED CSR ISSUES Over the course of 2017, CSR issues were considered in detail and adjusted in order to better reflect the Group’s desire to be the driving force behind its ecological, economic and social transition.

CSR WITHIN THE GROUP

COLLABORATORS ECONOMY

ENVIRONMENT

Value chain

Societal

Social

Safety & security

Ethics and Compliance

THE CMA CGM GROUP’S 6 CSR PILLARS

VALUECHAIN

• Customer Centricity

• Innovation & sustainable added Value• ResponsibleProcurement

• CircularEconomy

SOCIAL

• Diversity - Mixity & inclusion

• CollaboratorsProtection

• Collaboratorsdevelopment

• RemunerationPolicy

SAFETY &SECURITY

• Certification & compliance• Maritime

Safety• Health &

Safety• Cargo security• International

security

ENVIRONMENT

• Energies• Raw Materials

& Wastes• Polutions & releases

• Biodiversity: oceans

SOCIETAL

• Regionaldevelopment participation• Corporate

philanthropie / civic actions• Emergency

Relief

ETHICS AND COMPLIANCECMA CGM values • Core business strategy • Ethics & Conformity • Risk & Control • Stakeholders dialogue • Personal data protection • Anti-corruption • Compliance with competition and

economic sanctions

ETHICS AND COMPLIANCEPrevent corruption risks and develop our policy regarding ethics and compliance among all our stakeholders

VALUE CHAIN Carry on with our development and innova-tion policy, to improve our clients’ satisfac-tion

SOCIAL Promote diversity among our teams and de-velop training courses for all our employees

SAFETY AND SECURITY Prevent and reduce accidents, security risks, and improve work life quality

ENVIRONMENT Improve vessels’ energy efficiency and develop “eco-friendly” technologies

SOCIETAL Carry on with our engagement among communities through the Corporate Foun-dation and the Group’s global and local actions

OUR 2018 GOALS

For 2018, we aim to:

CMA CGM _ RSE 2017CMA CGM _ CSR 2017

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EXEMPLARITY IN THE F IEL DS OF ETHICS AND COMPLIANCE

MATERIALITY ANALYSISA materiality analysis was carried out in order to rank the Group’s CSR challenges in order of importance. These were prioritised, not only by reference to the strategy of the Group and its subsidiaries, but also by incorporating stakeholders’ expectations. These challenges can be broken down into 4 groups as shown by the chart below:

CMA CGM Group’s Materiality analysis

THE CSR STRUCTURE WITHIN THE GROUP The CSR and Environment Department reports to Executive Management and is responsible for: • Implementing the CSR policy in line with all group policies• Defining stakeholders’ CSR issues, priorities and expectations• Defining CSR objectives and coordinating CSR action plans• Evaluating, measuring and reporting on CSR performance

A CSR Committee meets regularly to draw up policies for strategic axis put forward by Executive Management and to take the appropriate action. This Committee is made up of the Human Resources, Audit and Risks, Compliance, Finance, Communication, Marketing, Branch Network, Purchasing, Transformation and Innovation and Security, Safety and Environment departments as well as CMA Ships and the Foundation. _

CMA CGM CSR Issues

Stakeholders CSRIssues

+

+

++

++

+++

+++

Pollutions & release

Customer Centricity

Innovation & sustainable added value

Collaboratorsemployability

Ethics & ConformityRisk & Control

Protection of employees

Energies

Materials& waste

Stakeholdersdialogue

Diversity

Remunerationpolicy

ResponsibleProcurement

CircularEconomy

Oceans: biodiversity

Sponsoring,Local Actions& Philanthropy

Emergencyrelief

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THE CODE OF ETHICS: CMA CGM’S FOUNDATION DOCUMENT The Group has a Code of Ethics for employees and a Code of Conduct for third parties, including suppliers, subcontractors and partners. These are the Group’s reference documents in terms of ethics and compliance. They are designed to express the principles and rules that apply to each person when they perform their activities: the Group thus undertakes to comply with applicable regulations. The Code of Ethics provides employees with concrete examples so that they can adopt appropriate behaviours when faced by risk situations.

In addition, under the Sapin II Law on transparency, anti-corruption measures and the modernisation of economic life, an Anti-Corruption Code of Conduct is being drafted and will be the subject of a consultation among Staff Representative Bodies. The Anti-Corruption Code of Conduct will form an integral part of the internal rules of the French establishments.

In 2017, with a view to strengthening the Compliance Department is working on 4 major activities:

Business ethics, a corporate culture based on raising awareness and training of employees.

The Group has taken all the necessary steps to comply with the new French anti-corruption law known as the Sapin II law. This includes implementing and updating initiatives:

• Updating the management body’s com-mitment to the prevention and detection of corruption in order to reaffirm the Group’s commitment to the fight against corruption.

• The introduction of an Anti-Corruption Code of Conduct, an integral part of the Internal Rules and the parallel updating of the Code of Ethics. The Anti-Corruption Code of Conduct will contain the applicable anti-corruption and influence peddling rules.

• The formalisation or review of Group poli-cies, including the gifts and hospitality policy, and the policies on marketing events, spon-sorship and charitable donations. The general roll-out of an internal alert system to enable employees to submit reports on behaviour or situations that are contrary to the Group’s ethical rules.

• The development of a Sapin II risk map, designed to identify, assess, prioritise and manage the corruption risks to which the Group is exposed.

It is also a means of communicating to Top Management and those responsible for Com-pliance the information required to implement measures to prevent and detect corruption that are appropriate to the identified issues.

• Strengthening and updating the procedures for assessing the situation of customers, major suppliers and intermediaries.

• The introduction of internal or external accounting control procedures to ensure that books, records and accounts are not used to hide acts of corruption or influence peddling.

• The introduction and updating of a training programme for those managers and employees who are most exposed to the risks of corruption and influence peddling.

IMPLEMENTATION OF THE SAPIN II LAW

CMA CGM is affected by the Law on the “De-voir de Vigilance” of parent and subcontrac-ting companies enacted on 27 March 2017. The CSR and Risk Management departments worked together to develop a work pro-gramme for 2018.

The first step was to analyse the scope set by law and apply it to CMA CGM, its subsi-diaries and suppliers. The size of the Group and the extent of its activities worldwide led to a separation of business activities into several “groups”:

• Shore-based activities including the head office, regional offices, the branch network and the offices of subsidiaries.

• Operational activities: Maritime: French flag and international flag Land: ports and terminals, logistics.Group suppliers and subsidiaries are dealt with by the Purchasing Department. A tool was chosen to ensure that the situations of subcontractors and suppliers are regularly evaluated.Once the scope was defined, the legal concepts were analysed to identify the

risks for our company. Interviews were then conducted with representatives of each business activity to identify the actions and controls already in place or that are in the process of being deployed to mitigate these risks.

This database is the starting point for the mapping of Duty of Care risks - measure 1 of the Law, which is currently under way. It will enable us to comply with measures 2 and 3 of the Law (procedures for regularly assessing the situation of subsidiaries and implemen-ting appropriate risk mitigation measures and measures to prevent serious breaches) once it has been completed and validated by Management.

To comply with the 4th measure of the Law, the whistleblowing mechanism, a tool is being currently being rolled out across the Group (see Sapin II).

An internal audit will be begun in 2019 to comply with the 5th and final measure of the Law.

IMPLEMENTATION OF THE “DEVOIR DE VIGILANCE” LAW

Strengthening of the Ethics

and Compliance policy and structure

Training and alert system, essential to risk prevention

Programmes dedicated to anti-corruption

and the duty of care in the value chain

Competition law, anti-corruption, economic sanctions, personal data

As a company, as an employer and as a civic firm, CMA CGM has to be exemplary and adopt the highest standards in terms of integrity. ”R O D O L P H E S A A D É ,

C H A I R M A N A N D C H I E F

E X E C U T I V E O F F I C E R

“

CompetitionAnti-

corruptionEconomic sanctions

Personal data

protection

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ADDED VALUE CONTRIBUTION TO ALL THE VALUE CHAIN

THE DISSEMINATION OF THE “ETHICS & COMPLIANCE CULTURE WITHIN THE GROUP IS CARRIED OUT IN A VARIETY OF WAYS:

• The documents constituting the Group’s Ethics & Compliance programme are available to all employees on the Group Intranet site• At the same time, the “Ethics & Compliance” area of the public website www.cma-cgm.com provides public access to the Code of Ethics and the Partner Charter and describes our various ethics and compliance policies.Training is also a key aspect of the Group’s Ethics and Compliance policy: • Support is offered to Group employees: e-learning modules on European competition law and economic sanctions are mandatory for Group employees and are regularly updated• The Code of Ethics must be agreed to by any new joiner of the Group• To supplement the existing training program, an “Anti-Corruption” e-learning module is being produced and should be launched in the near future• An e-learning module recommended for all employees and any new joiner of the Group is disseminated so that all CMA CGM employees understand the principles, requirements and values set out in the Code of Ethics• Training for employees at the company’s highest levels was carried out in 2017 to raise awareness of the importance of business ethics

WHISTLEBLOWING SYSTEM

In order to prevent unlawful behaviour or conduct contrary to the Group’s values, and also to detect such conduct, openness and accountability initia-tives have been launched for the Group’s employees. As such, all employees are encouraged to use any means to report breaches of the Code of Ethics, compliance policies and applicable procedures and regulations, regardless of the area they work in, to General Management, their line managers, the Group Compliance Department and/or to use any other existing channel, in particular breaches in the following areas: • Fraud and/or corruption • Anti-competitive practices• Compliance with human rights

_

“

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SUPPLIERS

Responsible Procurement

CUSTOMERS

CustomerCentricity

CMA CGM

InnovationDigital transformation Added value

THE CMA CGM VALUE CHAIN

Strategy focused on customers,

growth, innovation and people

40 innovative projects and initiatives as part of the transformation of the Group

Responsible procurement: for a long-term

relationship with suppliers and subcontractors

Customer centricity: a program to improve

the customer experience

THE CMA CGM GROUP’S ACTIVITIES AND BUSINESSES

Three of the strategic objectives are set out below: • Responsible procurement: creating long-term and successful relationships with suppliers and subcontractors • Innovation & digital transformation enhancing operational performance • Customer satisfaction: improving the customer experience at all stages

RESPONSIBLE PROCUREMENT: CREATING A LONG-TERM RELATIONSHIPWITH SUPPLIERS AND SUBCONTRACTORS

Creating stable and sustainable relationships with suppliers is a key challenge for CMA CGM. As such, the Purchasing Department, purchasing advisors, suppliers and subcontractors work closely together in this area.

Commitment to compliance with the Partner Charter The Partner Charter details all the Group’s CSR commitments and obligations and the Group’s expectations of suppliers and subcontractors. All suppliers appointed during tenders and those selected via other means must first sign this Partner Charter, before an agreement is entered into.

Setting up a Supplier Risk Committee During 2017, a Supplier Risk Committee was established to strengthen oversight of purchasing risks within the Group, including CSR-related risks. In addition to all the operational purchasing representatives, this Committee brings together key players involved in the relevant areas of expertise (Legal, Compliance, Audit and Risk Departments, Human Resources, CSR, etc.). This committee implements action plans relating to regulatory changes (Sapin II, Duty of Care, etc.) applicable to suppliers.

BFM awarded CMA CGM The “Saga Familiale de l’Année” Awards -Family Business of the Year AwardAt the annual BFM Awards ceremony, Rodolphe Saadé received the Prix de la Saga Familiale de l’Année (Family Business of the Year Award).Each year, this prize is given to a family business that has been particularly distingui-shed. This price distinguishes between: •The Group’s unusual entrepreneurial and family path•Jacques Saadé’s vision focused on container ships, which allowed CMA CGM to become a world leader•Rodolphe Saadé’s vision that pre-empted the unprecedented move towards consolidation in the industry with the acquisition of APL and has successfully led to the Group’s continued growth. Rodolphe Saadé used to occasion to explain his vision for the family business: “It is an entrepreneurial spirit, a desire to go further, to grow, to believe in its continuing good fortune. The Group has 29,000 employees, we are a fantastic team and we have decided to move forward together.”_

Over the past few decades, the CMA CGM Group has expanded its business activities, which are today divided into 4 main sectors: Maritime activities / Port activities / Intermodal and logistic activities / Support activities, notably through fleet management

BRANDS ASSOCIATED TO CMA CGM GROUP ACTIVITIES:

OTHER MARITIME ACTIVITIES

PORT ACTIVITIES

INTERMODAL ACTIVITIES

SUPPORT ACTIVITIES

THE CMA CGM GROUP’S BUISINESSES

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CUSTOMER SATISFACTION: IMPROVING THE CUSTOMER EXPERIENCE AT ALL STAGES The ambition of the Customer Centricity project is one of the Group’s strategic priorities. Against this background, a customer experience improvement programme was launched to enable CMA CGM to: •Meet new customer expectations•While differentiating itself from competitors through an innovative offering•While capitalising on its proximity to customersA Customer Charter was introduced in 2015 that set out a group of key indicators for the customer journey. CMA CGM is committed to quality of service through these indicators. To ensure consistency in these KPIs and to verify customer proximity, an annual customer survey has been introduced to determine areas for improvement and priority actions for the Group.Lastly, in order to meet customer expectations in terms of digitalisation, e-com-merce offerings were developed extensively in 2017 and will continue to be so until the end of 2019 with the aim of fully digitising the customer journey. _

APL Innovation CommitteeThe APL Innovation Com-mittee is a cross-functional team set up in February 2017 to generate and study innovative and game-chan-ging ideas for the company. In 2017, the Committee launch an internal contest called “WINGS”. The aim of this action is to invite inno-vative ideas from APL staff all over the world. Through this initiative, it hopes to cultivate a spirit of innova-tion and creative thinking within the company. As an individual or as a team, share with us your in-novative or game-changing idea in any of the following areas: • Improve Efficiency• Improve Customer Experience • Increase Revenue• Reduce Cost_Creation of the LABAlso launched in 2017, Le Lab by CMA CGM is a space dedicated to innovation and transformation.This disruptive workspace is built around four pillars: • Imagination• Experimentation• Creation• CollaborationThe Lab offers a modular work space or digital equip-ment, and provides access to exclusive resources such as work managed by the Academy’s teams in “Design Thinking“ mode1.

1 Design Thinking is an approach to innovation and management that is a synthesis of analytical thinking and intuitive thinking. It relies heavily on a co-creative process involving feedback from the end user.

INNOVATION & DIGITAL TRANSFORMATION ENHANCING PERFORMANCE

A dedicated structure Digital transformation is a strategic objective for the Group. It encompasses both improving the Group’s performance and enhancing the service provided to customers. In order to properly commit to this transformation, the Group relies on four factors:>A team dedicated to digital transformation, consisting of employees from business profiles and IT>An innovation committee, composed of diversified and representative employees from the Group’s various business lines, with the aim of identifying, analysing and structuring innovative ideas that may be reported back to the company> A portfolio of over 40 initiatives divided into three areas: • Customer focus: modernising our relationships with our current customers, creating new digital business models, developing new types of markets/ customers, etc. • Operational excellence: simplifying structures and processes, accelerating our development, improving our decision-making processes, etc. • Digital Culture: promoting innovation in collaboration and transversality, developing flexible methods, creating a digital culture, etc.>Investment fund to invest in 10 to 20 start-ups per year

KEY PARTNERSHIPS SIGNED

At the fair “Salon des Entrepreneurs” in October 2017, Rodolphe Saadé announced his intention to create a CMA CGM start-up incubator in Marseille, and to attract start-ups from around the world. This ambitious incubator project has been launched with a number of goals:• Encouraging boldness and innovation • Participating actively in the economic dynamism of the Provence Alpes Côte d’Azur region• Creating optimum conditions for innovation in the maritime transport sector • Accelerating the Group’s digital transformation• Contributing to the emergence of an innovative ecosystem specialising in particular in the logistics sector

This project complements various initiatives launched by CMA CGM in France:• Support for the “Carburateur”, a business incubator located in the northern part of Marseille, established with the support of the public authorities • Partnership with Aix Marseille French Tech • Partnership with The Camp, innovative campuses that bring together large companies, start-ups, teachers and researchers• Partnerships with global leaders in the IT sector such as IBM and Infosys

Responsible Procurement at CMA Ships By obtaining triple certification – ISO 9001, ISO 14001 and OHSAS 18001, CMA SHIPS has been able to optimise its procurement process and to improve partnerships with suppliers and sub-contractors in terms of cost, reliability and availability. As part of its revised procurement policy, CMA Ships conducts supplier audits every year to ensure that the partner is in compliance with the company’s requirements._

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OUR EMPLOYEES ’ COMMITMENT

› December 2017 : Silver Award “Global Car-rier of the Year“ assigned by Hellmann

› November 2017: “Supplier award“ assigned to CMA CGM by ELECTROLUX

› July 2017: “SONY BEST PARTNER in 2017“ assigned by SONY

› March 2017: CMA CGM ranked “2nd best car-rier“ by Kuehne Nagel

› November 2017: CMA CGM Ecuador distin-guished as the “Shipping Agency of the Year” during the BASC award ceremony

› November 2017: CMA CGM LOG Shenzhen named the “Best Service Support Award 2017” by ZTE Corporation

› November 2017: “Customer Service Awards” attributed to CMA CGM Australia at the Aus-tralian Shipping & Maritime Industry Awards 2017.

IN ADDITION, OTHER ACTIONS IMPLEMENTED FOR CUSTOMERS WERE REWARDED IN 2017, FOR EXAMPLE:

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DIVERSITY

The richness of the CMA CGM Group lies in the diversity of its male and female employees. Diversity plays a key role in supporting the Group’s strategy. A source of inspiration and innovation, it leads to a better understanding of customer expectations and an offering of tailored transport solutions and high-quality services. Diversity within the Group is defined by equality, inter-culturality and intergenerationality that fosters an atmosphere that leads to mutual enrichment.

The CMA CGM Group strives to give everyone the same advancement oppor-tunities within the organisation. The Code of Ethics clearly defines the Group’s commitment to diversity and equal opportunities. We derive our integrity by respecting and protecting the fundamental rights and freedoms as instituted in the Universal Declaration of Human Rights. Through this declaration, the Group has committed to eliminating any discrimination of any kind based on nationality, class, race, disability, gender, age, religion and political views. More broadly, the Group anti-discrimination policy is based on the principles of freedom of opinion, job placement and retention for disabled employees, and job equality as per the bargaining agreement. As such, several projects have been implemented and there is constant dialogue between the staff represen-tative bodies and management in order to more fully address areas in which the employment environment climate and the atmosphere at work in general may be improved.

In May 2017, the CMA CGM Group created the “Diversity for Better Perfor-mance” Committee. The Committee’s role is to make diversity a source of performance for the Group, and it is structured around 3 areas of work:

TOTAL EMPLOYEES

30 628MEN WOMEN

FRANCE

14%

57% 43%

AMÉRIQUES

11%ASIE/OCÉANIE

42%

EUROPE

14%

AFRIQUE/MOYEN-ORIENT

19%

GENDER EQUALITY to feminise the Group’s

image and reduce the status gap between

men and women

INTERGENERATIONALITY to develop knowledge and

the transfer of skills between the different generations

INTERCULTURALITYto improve understanding

of different foreign partners’ culture and thus

encourage exchanges

The international nature of the CMA CGM Group, the diversity of its business lines and the number of activities it carries out support the career development of both land-based and seagoing employees.

Today, the Group has 3 major groups of employees3 with different and comple-mentary activities and roles. These groups include: • Shore-based activities: support functions at head office, regional offices, branch networks of the group and its subsidiaries • Operational activities: Maritime, Land (ports and terminals, logistics and intermodal transport (road, river, air), etc.)

WORKFORCE

At 31/12/2017, the Group had 30 6284 employees. Including international seagoing employees5, the number of employees was 34 6476. There were 7 1917 hires and 5 3438 departures with a redundancy rate of 2%9.

34,647 employees worldwide, including

4,513 seagoing employees

Diversity Committee, 3 key areas: parity,

intercultural and intergenerational

CMA CGM Academy: creation of an excellence

programme for managers called the

“LEAD Program”

7 Partnerships with Grandes Ecoles

Quality of life at work: “Best Place To Work”

for CMA CGM America, “Happy

Trainees” and “Happy At Work for Starters”

for France

2 Seagoing employees with an employment contract (fixed or indefinite term) with CMA Ships Singapore PTE Ltd. they work on vessels in the CMA CGM Group fleet or on ships owned by other shipowners (APM and CNC), which are used for one-off missions by of other Group entities. 3 100% of the consolidated Group workforce, i.e. 34,647 employees. 4 Consolidated Group headcount excluding international seagoing employees, i.e. shore-based employees + French seagoing employees – i.e. 88% of the consolidated Group workforce.5 This is the number of seagoing employees with an employment contract (fixed or indefinite term) with CMA Ships Singapore PTE Ltd. these seagoing employees work on vessels in the CMA CGM Group fleet or on ships owned by other shipowners (APM and CNC), which are used for one-off missions by of other Group entities.6 I00% Consolidated Group workforce. 7 RH5 indicator - Number of hires: Information available for 100% of the C&Me shore-based workforce - 81% of the consolidated Group workforce.8 Indicator RH6 - Number of departures: Information available for 100% of the C&Me shore-based workforce - 81% of the consolidated Group workforce.9 Redundancy rate: Information available for 100% of the C&Me shore-based workforce - 81% of the consolidated Group workforce.

2017

French seagoing employees 494

International seagoing employees2 4 019

Total number of seagoing employees 4 513

At 31/12/2017, the number of seagoing employees was

Workforce Breakdown by type of activity

75%Office

employees

12%Operational ashore

employees

13%Operational

seafarers

NUMBER OF EMPLOYEES IN THE GROUP 30,628 / INCLUDING INTERNATIONAL

SEAFARERS, THE NUMBER OF EMPLOYEES IS 34 647 /

NUMBER OF HIRING 7 191 / NUMBER OF DEPARTURES 5 343 /

RATE OF REDUNDANCY 2% / 145 NATIONALITIES IN 140 COUNTRIES As of 31/12/2017

215 000 HOURS FOR THE SEAFARERS

Training

Classroom training

E-learning

2017

42 353

51 184

Age

<20

20 – 29

30 – 39

40 – 49

50 – 59

>60

No age reported

2017

0%

27%

33%

20%

12%

2%

6%

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This commitment is reflected in a policy of recruiting, promoting, training and organising events such as themed lunches, sharing time and organised discussions to provide information and understand female employees’ expectations and propose new actions (Women’s Day, Pink October, confe-rences, various communications, etc.).It should also be noted that CMA CGM’s Board of Directors is more than 46% made up of women, in accordance with the French Copé-Zimmermann Law, which introduced rules for the balanced representation of women and men on boards of directors (more than 40% of female directors).

Disability The CMA CGM Group supports people who require appropriate care during their professional career. In Marseille, at the head office, people with disabilities are, more often than not, detected through Occupational Healthcare. Once informed, the Group suggests individual measures that seek to adjust, alter or transform workstations to enable employees to continue carrying out their work. The principal measures include changing the layout of workstations (foot rests, telephone headsets, ergonomic chairs, special IT equipment, etc.) and providing a parking space. At the head office, CMA CGM has a year-round arrangement with companies in the disabilities sector to provide it with brochures or office supplies.

LIFE QUALITY AT WORK

Several measures are taken to ensure that employees have an appropriate work-life balance. A gender equality agreement13 provides for 100% paternity leave for shore-based and seagoing employees, flexible working hours for pregnant women, the provision of 12 optimised cradles to accommodate 18 children of employees within a private crèche or the payment of a “child allowance” to the establishment committees, the introduction of personalised working hours for full-time staff (variable shifts) at all metropolitan shore-based establishments.

In 2017, the actions taken to improve quality of life at work focused principally on improving employee monitoring. For example, a support process for those returning from long-term absences has been introduced in the form of various appointments between the human resources department, the manager and, where necessary, the occupational psychologist.

Life quality at work for seagoing employees The approach is both proactive and comprehensive: • It is proactive as it focuses on improving Quality of Life at work as a whole and not in response to the legal constraint of preventing psychosocial risks• It is comprehensive as it acts on the socio-organisational drivers of profes-sional activity and provides support to employees in their overall active health approach.In structural terms, a Quality of Life at Work group was formed. This group is made up of the Human Resources Department for seagoing employees, members of the employee representative bodies, the CMA CGM psychologist, the prevention officer, the seafarers’ healthcare department and the maritime social service. Its role is to analyse the results of employee monitoring and quality of life surveys, and then issue recommendations.Against this background, an action plan has been put together: certain specific actions have already been implemented. For example, the creation of a Planning Committee with the aim of improving the ergonomics of ships before being built, and improving communications between ships and land and port services. As such, a more operational group that is closer to the seagoing employees, has been developed. This is an initiative of the quality of life at work

13 Agreements within the scope of the CMA CGM ESU: CMA CGM SA (including its establishments in Paris, Le Havre and Marseille), CMA CGM Antilles Guyane, CMA CGM Agences France, CMA Ships, Traveller’s Club, CMA CGM Réunion, CMA CGM Logistics, CMA CGM LOG France.

Company concierge service In order to employees’ day-to-day lives easier and to save them time, the CMA CGM Group introduced a company concierge service at the Head Office in November 2017. _

Partnership with the European HospitalIn 2015, the CMA CGM Group entered into a partnership with the European Hospital located near the CMA CGM Tower, enabling employees to benefit from a local and high-quality healthcare service. They have a specific email address for appointments and medical examinations. _

InterculturalityThere are over 145 nationalities represented within the Group, spread across 140 countries. Interculturality is a source of richness for the Group, and actions have been implemented, notably through training tools to streamline exchanges and optimise communications, not only within the Group but also with customers and all its stakeholders. Breakdown of workforce by region:

In 2017, the workforce grew sharply in Asia and Oceania due to an increase in the number of employees at shared service centres in India and China.

IntergenerationalityWithin the Group, the average age of employees is 37 and the average length of service is 8 years.

60% of the Group’s employees are aged between 20 and 40, and “expert” confe-rences and mentoring initiatives have been introduced to support young talent and facilitate the transfer of expertise.

Gender equality

Women account for 43% of the Group’s workforce, with 13% of women in ma-nagement positions. Against this background, CMA CGM has, for a number of years, been committed to promoting equality in the workplace.

Intergenerational collaboration through the “Y Team”At the initiative of Rodolphe Saadé, the “Y team” was created in December 2017 to work on cross-functional subjects proposed by the Chairman. This mixed team consists of employees under 35 years of age from various departments (Lines, Opera-tions, Logistics, Transforma-tion, Branch Network and Major Accounts Department, Strategy). The aim of the “Y Team» is to propose rapid and concrete actions and to take a fresh look at key issues, while working intelligently with all stakeholders in charge of the relevant areas.The creation of this team follows on from the initiatives aimed at giving a voice to new generations to influence innovative decisions and accelerate the transformation of the company._

The exhibition “Portrait de femmes” (Portraits of Women) For International Women’s Day on March 8, 2018, the Group organised an exhibi-tion focusing on professional parity and the role of women in the Group. This exhibition aimed to remind us that equa-lity in the workplace is at the core of the Group’s concerns and that team diversity Is the source of our success. It shines the spotlight on 30 employees. These women were chosen for their career paths, their involvement and their commitment to the Group._

10 RH4 indicator – Breakdown of workforce by region: Information available for 100% of the C&Me shore-based workforce - 81% of the consolidated Group workforce.11 RH3 indicator – Breakdown of workforce by age: Information available for 94% of the C&Me shore-based workforce - 75% of the consolidated Group workforce.12 RH2 indicator – Breakdown of workforce by gender: Information available for 100% of the C&Me shore-based workforce - 81% of the consolidated Group workforce

Regions10

France

Europe (except France)

Africa – Middle East

Americas

Asia - Oceania

2016

21%

14%

16%

13%

36%

2017

14%

14%

19%

11%

42%

Type12

Women

Men

2017

43%

57%

Age11

<20

20 – 29

30 – 39

40 – 49

50 – 59

>60

No age reported

2017

0%

27%

33%

20%

12%

2%

6%

26 27


The International Labour Organisation - ILO met in Geneva on the 7th February 2006. During this conference there was a common desire to create a single, coherent instrument embodying as far as possible all up to date standards of existing ILO conventions with a core mandate to promote decent working and living conditions onboard. Having adopted this convention, the MLC 2006 -Maritime La-bour Convention was published. The conven-tion became a mandatory requirement from August 2013. International Maritime Law rests on four pil-lars:• SOLAS: Safety – International Convention for the Safety of Life at Sea• MARPOL: Environment – International Convention for the Prevention of Pollution from Ships• STCW: Training and certification – Interna-tional Convention on Standards of Training, Certification and Watchkeeping for Seafarers• MLC: Social protection and work condi-tions – Maritime Labour Convention, i.e. the minimum employment conditions and living conditions for seafarers.

As of August 2017, 84 ILO members have now ratified this convention and this represents 89% of world tonnage.

MLC 2006 is organized into 5 General Titles:• Minimum requirements for seafarers to work on a ship• Conditions of employment• Accommodation, recreational facilities, food and catering• Health protection, medical care, welfare and social security protection• Compliance and enforcement

Due to the high quality of its ships, CMA CGM was in a position to actually implement MLC across its multi flag ‘owned fleet’ well in ad-vance of this August 2013 deadline.

During the certification stage, no major defi-ciencies were found and moving forward, on every occasion that ships are inspected either by Flag or PSC, we continue to demonstrate a very high standard of working and living conditions on board.

THE MARITIME LABOUR CONVENTION

group, known as the “Contact and Prevention Council” (CPC). The role of this group is to carry out preventive actions, train and support resources, support people with healthcare, advise on Quality of Life at Work and addictions. Its members comprise staff representatives on the Quality of Life at Work group, the prevention officer, the CMA CGM psychologist and the social worker.

Prevention of psycho-social risksThe Group’s policy on psycho-social risks (PSR) is the subject of an agreement signed on 20 May 2010, (agreement on the prevention of psychosocial risks among employees of the CMA CGM ESU). The document provides milestones for a preventive programme to measure, analyse and monitor psycho-social risks. The recommended actions include: • Preventing the risks of moral or sexual harassment and establishing an alert procedure• Organising training courses for managers on the prevention of psycho-social risksSince the agreement was signed, a psychological support unit has been set up. The unit is available by telephone or online 24/7 and provides a completely confidential space for employees to talk someone of their choosing. In addition to preventing psycho-social risks, it demonstrates the Group’s commitment to acting on its long-term promise to improve working life for its employees. A number of projects have been launched to act at the individual and collective level over the long term. The main areas of focus are the working environment, the social climate and employee support.

Social relationsSocial relations are a vital part of company life. It principally consists of providing information to employees. Questions on strategy, economics, finance and social and organisational issues are discussed by the various bodies com-prising employee representatives and management. In addition to the employee representatives appointed for each entity14, these involve the Group Committee, the Central Works Council in France, the Entity Committees, the Health and Safety Committee and various specialist joint committees.

In accordance with the conventions of the International Labour Organisation (ILO) and the principles laid down in its Code of Ethics, the Group is committed to respecting the freedom of association and the rules of association in the various countries in which it operates. Furthermore, in addition to the collective bargaining agreements signed in 2017, it should be noted that the Group decided to grant two additional days of leave to employees with a disabled child. At 31 December 2017, 17 employees had benefited from this agreement.

AN ATTRACTIVE EMPLOYER

Career managementIn 2017, the Group continued its career development initiative, in particular through the transformation of its HR tools. The roll-out of the C&Me Talent Management module sees the Group, an employer in more than 40 countries and with more than 15,000 employees, offering a new approach to talent management that provides employees with greater support: succession plans, identification of talent, evaluations, optimisation and screening of organisations based on their activities. As part of this programme, the Group has a process for identifying “High Potential” employees. This international process for spotting “High Potential” employees has helped to identify key positions and to plan for successions. The Group also encourages initiatives proposed by any employee who wishes to take up new challenges. To this end, the performance interview, formally launched in 2015 as part of the new C&Me human resources management tool, allows shore-based employees and their line managers to take stock of their objectives, assess their performance, formulate new career development goals and discuss their training needs.

Employee Survey - seagoing employeesDuring 2017, an IFOP employee survey was conducted with French and international maritime officers. With a higher rate of return than the rates usually recorded for this type of survey, the survey has led to: a general observation of well-being at work, an acceptance of the CMA CGM Group’s strategy and effective communications.Seagoing employees also express attachment to the Group in which they see a positive professional future for themselves. In addition, seagoing employees are quick to recommend the Group. This survey also highlighted areas for increased vigilance and areas for improvement that were taken into account in the objectives and the HR action plan for seagoing employees._

14 Maritime ESU entities excluding French seagoing employees

28 29


Mobility allows for the internal deployment of available skills in the place where they are most needed in the Group. The Group’s mobility policy also offers traditional forms of mobility (expatriation contracts, local contracts, second-ments) and various innovative career paths. Consequently, employees are better able to expand their skill sets, hone their expertise or be promoted to managerial roles. Every week, a memo from the human resources department informs all Group employees of new job vacancies.

JUMPJUMP (Junior Employer Mobility Program) is an innovative scheme that offers our young talents the opportunity to go abroad for a period of six months to learn new skills and experience a different working environment. Every year, approximately twenty employees participate in this international mobility pro-gramme.

SWAPAlternatively, the “SWAP” programme allows two employees of two separate entities to swap positions.

Under the VIE (International Work Volunteering) programme, young graduates go abroad to work in our local branches to broaden their knowledge, acquire new skills and help standardise practices and procedures within the Group. At the end of their contract, the Group offers them career opportunities and the opportunity of undertaking new challenges to support the Group’s develop-ment. In 2017, there were 30 participants in the VIE programme, mainly in Africa, Asia, North America and South America. Lastly, each year, the Group offers employees expatriate contracts in a number of locations. In addition to sharing best practices and standardising working methods, international mobility enables employees to broaden their field of expertise and assume more responsibility. Employees receive information about, and are made aware of, international mobility opportunities all year long through discussions, conferences and targeted communications.

Sponsoring and mentoring in France In 2017, new programmes were introduced to attract, retain and develop talents within the Group. • The Sponsorship programme seeks to accelerate and facilitate the integration of Executives • The Mentoring programme is aimed at supporting our young talents in integrating. These two programmes, based on a special relationship, trust and mutual respect, enable our experienced employees to share their knowledge of the Group and their network with new joiners. _

Espace MAPPCMA CGM is also a member of the “Espace MAPP” Association (Mobilité et Accompagnement des Projets Professionnels or Mobility and Support for Professional Projects) for the Provence-Alpes-Côte d’Azur region. Espace MAPP facilitates the inter-com-pany mobility of employees at several companies with a strong local presence through exchanges or positions facilitated by training that the association also provides, thereby offering a great variety and diversity of career paths. _

Integration is an essential challenge that today constitutes a powerful lever in the loyalty and development of our new talents. This is a decisive period in the employee’s career, which requires our full attention and the involvement of all company stakeholders.In 2017, the roll-out of the “Onboarding” project in the United States and then in France allowed the CMA CGM Group to professionalise the induction pathway for new employees. New members of staff now have,

prior to joining the company, specialist sup-port on completing administrative formalities and key information (via a digital portal) to encourage their adherence to the company’s culture and values.In 2018, a discovery report will supplement the “Onboarding” tool so that each employee may relate their experience and thus help the Human Resources Department improve the process of welcoming new employees.

“ONBOARDING” PROJECT

In 2017, CMA CGM Academy set up a specific training programme for African executives appointed to senior management positions. Emphasis is primarily placed on developing managerial skills, shipping and intermodal business lines.This 240-hour training programme over one year (September 2016 – September 2017) was provided jointly by experts from KEDGE Bu-

siness School and the Group. What is more, in partnership with Sciences Po Paris, Corporate Learning Alliance, in 2017 the Group launched an excellence training programme for Group executives in Singapore, entitled “LEAD”. It covers:• Being a driver of change• Enhancing operational excellence• Developing a culture of innovation

LEAD PROGRAMME TRAINING

30 31


E.g. TOEIC, TOSA, responsible management and business management.

In 2017, the Group continued to develop its commitment to training.CMA CGM Academy continues to roll out business training in the form of “blended” training courses, i.e. courses that combine several teaching methods (e-learning, classroom-based, telephone, etc.) at the head office and branches. With a view to ensuring optimal roll-out of the courses for the various LISA (SAP) modules, a network of “Super Key Users” and “Key Users” was put to-gether, trained and supported by CMA CGM Academy.

In addition, comprehensive training courses continued to be provided at the head office to:• Area sales representatives,• Cargo-flow and vessel operation staff,• Line management controllers. Emphasis was also placed on developing innovative blended training courses that combined different types of teaching activities. For example, the INSIGHT programme for managers offers a training course consisting of inspiring videos, e-learning modules before and during the sessions, as well as regular and lively exchanges with the trainer and facilitator, with work to be handed in and group discussions.The uptake of distance learning (e-learning, teaching videos) fell slightly on a per capita basis: 1.76 hours per person in 2017 compared with 1.98 hours in 2016. This is mainly explained by no mandatory global training programme being rolled out in 2017, unlike previous years, as well as by the integration of NOL from 1 January 2017.

In addition, these 7,000 new learners are not yet fully versed in using the portal and the library of training content, so the overall average has suffered as a result.The average ratio is accordingly down by 11% in favour of long-term investment and training coverage for all CMA CGM Group employees, across all subsidiaries.

Training for seagoing employees:The number of total hours of classroom and distance training for international seagoing employees was almost 215,000 hours in 201719. The training of seagoing employees is based on STCW 20103 programs (an international agreement that determines the required professional certificates for each on-board function). Some of these certificates are renewed every five years after a refresher course and training on the use of CMA CGM tools, requested by CMA Ships (internal software, techniques, safety, simulators, etc.).

Ecole de Management et de l’Innovation (School of Management and Innovation or EMI) - Sciences Po ParisCMA CGM has, for the past two years, been a partner of Sciences Po Paris and, more specifically, since 2016, has been the sponsor of the Ecole du Management et de l’Innovation. Established in October 2016, the school trains the economic players of the future, who, through their creativity and entre-preneurial vision, are able to transform businesses and redefine their role in society in light of future challenges. In 2017, CMA CGM decided to renew its commitment to Sciences Po and EMI._

Career management for seagoing employees: : The careers of seagoing employees are regularly monitored by the person responsible for managing seagoing employees. Each sea journey is preceded by a briefing at which checks are carried out on the validity of certificates and whether seagoing employees have completed the required training courses. The Group is endeavouring to offer “land-sea-land” career management for officers of the owned fleet. They are given assignments at the head offices to facilitate discussions between the different working communities and provide them with future land-based career opportunities.

A competitive remuneration policyTo attract, retain and motivate talent, the Group relies on a remuneration policy based on three priorities: • Internal fairness• External competitiveness• Performance-based paySince July 2016, as part of the integration of the APL teams, the CMA CGM Group has undertaken an overall approach to harmonise salaries and healthcare, insurance and retirements schemes in approximately 40 countries. This process was carried out using comparative studies on the levels (remune-ration, employee benefits) and structures in the relevant countries. With a view to continuing with this initiative, an audit was commenced at the end of 2017 in respect of all Group companies. The report on this audit will, in 2018, provide an exhaustive overview of the Group’s healthcare, provident insurance and supplementary retirement plans.By way of information, at 31 December 2017, the payroll amounted to: MUSD 1,699

Payroll15 2016 2017

MUSD 1,243 1,699

A strategic training policy The Group’s training policy forms part of a comprehensive career management and skills development strategy.

The CMA CGM Group is committed to maintaining and strengthening the skills of its employees. CMA CGM provided 42,353 hours of face-to-face training in 2017 to French shore-based employees and French seagoing employees and generated 51,184 hours of online training for Group shore-based employees.

Training16 2016 2017

Classroom training17 49,158 42,353

E-learning18 45,507 51,184

In 2017, the Academy developed certified training programmes for France. Substantial investment from both the company and the training organisations is required to set up this type of programme, given the demanding regulatory environment.These comprehensive and professional programmes enhance the employability of the employee, who sees his skills valued and recognised by certification.

15 Scope of financial consolidation

16 In 2017, the training report covers the consolidated scope. It is based on information extracted from the management tool for face-to-face training = C&Me and login data for distance training. It should be noted that the reliability of the process of reporting “training” data is currently being improved, and the long-term goal is to cover 100% of the workforce. It should also be noted that the long-term objective is to collect all data on employee training at all Group entities via the C&Me tool.17 RH7 indicator – Number of training hours: The scope of the face-to-face training data corresponds to French shore-based employees and French seagoing employees, i.e. 12% of the consolidated Group workforce.18 RH7 indicator – Number of training hours: The scope of the distance learning data corresponds to the worldwide shore-based employees in C&Me, i.e. 81% of the consolidated Group workforce.19 RH7 indicator - The number of training hours for international seagoing employees corresponds to the number of hours of distance training plus the number of hours of classroom training. The number of hours of face-to-face training is calculated by applying an average of eight hours of training per training day provided. The number of e-learning training hours is calculated by applying an average of two hours per e-learning session – Information available for 12% of the consolidated Group workforce

32 33


EXCELLENCE IN SAFETY & SECURITY

KEY PARTNERSHIPS The CMA CGM Group proactively pursues dialogue between higher education and business and forges close working relationships with universities and colleges. In France, the CMA CGM Group renewed its partnership agreements in 2017 with Sciences Po Paris, HEC Paris and ESCP Europe, in addition to existing partnerships with Kedge BS, Aix Marseille University, IAE Aix-en-Provence and IEP Aix.These agreements create official links between CMA CGM and provide a framework for the mutual commitments that bind them. Joint initiatives are organised, for example, in the form of conferences, round tables, the involvement of CMA CGM’s industry experts with courses and business projects, and the Group participating in examination committees and the sponsorship of various year groups. Outside the framework of the agreement, the Group also undertakes one-off initiatives by attending conferences, round tables and job fairs organised by the Grandes Ecoles, such as the ESCP, HEC and EM Lyon forums. These events provide the Group with the opportunity of introducing students to CMA CGM’sactivities and the diversity of its business lines.

AWARDS AND CERTIFICATIONS

In 2017, the Group received a number of Awards that recognised the steps taken to develop the Group’s attractiveness.

“Happy Trainees” label In 2017, for the 3rd consecutive year, CMA CGM’s head office was

awarded the “Happy Trainees“ label, which recognises the Group’s HR policy for interns and work-study students.

“Happy At Work for starters” labelCMA CGM was ranked 10th best company as rated by employees under the age of 28 and was awarded the “Happy At Work For Starters” label with a score of 4.04/5 following a pilot survey conducted

by Choosemycompany.com.Companies were assessed in six areas: professional development,

stimulating environment, management and motivation, salary and recognition, pride, fun and enjoyment.

“Best place to work” pour CMA CGM America Every year, the Inside Business magazine ranks the best employers in the Hampton Roads region in Virginia (USA).

ASSISES DE LA MER

In November 2017, the CMA CGM Group invited approximately fifty students from the Grandes Ecoles to participate in the Assises de la Mer conference. By attending this annual meeting of the French maritime community, they were able to learn about the Group and the diversity of its activities, particu-larly through the conference led by Mr Rodolphe Saadé, CEO of the CMA CGM Group. Throughout the day, students learnt about the future challenges facing the maritime economy, a sector in which CMA CGM intends to continue playing its leading role._

Welcoming year 10 students at the head officeThroughout the year, the CMA CGM Group welcomed young secondary school students to Marseille as part of their year 10 work placement, entitled “Disco-vering the corporate world”. Exclusively available to the children of employees, this initiative is very popular with employees at the head office. It is a way for them to introduce their children to their working environment and their roles at work. It is also a way for the company to present its activity and to develop its local presence.In the year to 31 December 2017, more than 36 year 10 work placement students were welcomed to the head office. _

34 35


International Maritime Organisation (IMO), but also at regional and local levels.These laws and regulations are complex and change often. The Group’s compliance is routinely evaluated through a series of external audits by the authorities, the port of call country, classification firms as well as through internal inspections and audits. Each vessel is therefore subject to three levels of regulation, each with its own inspections:• International regulations (MARPOL, SOLAS, IMS Code, etc.)• The regulations of its flag state (14 flags at CMA CGM)• Local or regional regulationsThe port of call states regularly carry out inspections on board vessels to check that vessels are seaworthy: Port State Control (PSC). Where problems are detected, the PSC issues a deficiency finding, which may lead to the vessel being detained.

In 2017, the owned property fleet was given a deficiency rate of 0.71 by PSC (Port State Control)21 , following a rate of 0.97 in 2016. This significant reduction is due to a number of awareness-raising measures on board ships and on land on the management of PSCs. In 2017, 4 vessels were detained: the non- compliances identified were immediately corrected.

Indicator Evolution 2016-2017

Average % of deficiencies per inspection - 27%

Maritime incidents are classified based on a matrix from A to D, with D being a serious incident. This matrix takes account of four major categories of impacts:• Impacts on the health and safety of the ship and crew• Environmental impact• Impact on the public• Financial impactBetween 2016 and 2017, major nautical incidents, rated C and D, decreased drastically, by almost 38%. This decrease can be explained by the policies implemented by the Group and the reporting of near misses, which have led to a better understanding of the risks.

Indicator Evolution 2016 - 2017

Number of major maritime events -38%

In 2017, 5 major maritime events were recorded:• On the CMA CGM BERLIOZ, a subcontractor was reported missing as the vessel passed through the red sea (man overboard). Unfortunately, the searches by the ship did not lead to him being found• On the CMA CGM FIDELIO, a fire broke out on the bridge at the back of the midship deckhouse while at sea. The crew managed to extinguish the fire• The CMA CGM CENTAURUS, following a manoeuvring error, collided with the dock at Jebel Ali, causing one of the port’s gantries to fall and causing significant damage to a second. The vessel also suffered damage to its hull• On the CMA CGM HERODOTE, a crew member was reported missing as the vessel passed along the Maltese coast. Unfortunately, the searches by the ship and the Maltese coastguards did not lead to him being found.• On the CMA CGM KERGUELEN, a member of the crew was found dead in his cabin following a heart attack. Surveys by the SSE department were carried out following each of these inci-dents in order to determine their causes and suggest corrective actions to avoid repeat incidents.

A proven crisis management planAlthough the CMA CGM safety management procedures are mainly preventive, the Group also has a comprehensive plan in place for managing crisis situations. This plan defines the responses to emergency situations on board ships, but also in branches and terminals. The plan is tested at least once every year and routine training sessions are carried out to improve the response and interven-tion capabilities of the crisis management teams. The Group also regularly car-ries out joint exercises with the authorities to prepare for potentially dangerous incidents: pirate attack simulations, emergency towing, fire and pollution.

Search and rescueThe vastness of the oceans requires the various maritime operators to come to the rescue of other people that may be in danger. Ships may therefore be required at any moment to change course to assist a vessel in distress. These are known as Search & Rescue (SAR) operations. In 2017, 14 operations were carried out by owned ships._

-38%major nautical incidents

GENERAL POLICY The health and safety of the Group’s employees is a priority. Certain activi-ties and business lines present significant risks, particularly on board, but also terminal and warehousing operations.

The objective of the CMA CGM Group’s security policy is to avoid any accidents that may result in injury or loss of life, either to shore-based or seagoing employees, or major damage, either to vessels, goods or the environment, by establishing a set of procedures that are regularly evaluated and reviewed in an integrated management system (IMS).

A dedicated SSE (Safety, Security, Environment) Department is involved in both analysing and preventing risks, and in auditing and implementing technical and organisational procedures in accordance with prevailing regulations. This department carried out annual audits on board vessels and on land, in order to check that CMA CGM’s security policy is being properly applied. This same department is tasked with coordinating operations in a major crisis.

CERTIFICATIONSCMA Ships has initiated a triple certification process on 100% of its scope20: • ISO 9001 Quality and Customer Satisfaction • OHSAS 18001, Occupational Health and Safety• ISO 14001, Environmental protection As part of the process of continually improving the QSSE performances of Terminals, 12 ISO 14001 and OHSAS 18001 certifications were obtained in 2017 covering all 20 Terminals, i.e. approximately 60% of Terminals that have introduced a voluntary certification approach. The 2018 goal is to increase the number of certifications to 15.

MARITIME SAFETY Maritime safety is governed by strict local and international regulations, which are, more often than not, determined at the international level by the

Significant improvement in the

Group’s safety performance: fleet

and terminals

Safety First: people safety, goods and

Merchandises

Maritime solidarity: 14 rescue and recovery operations carried out

at sea

Triple Quality, Safety and Environment certification for

CMAShips

Preventive security policy in a context

of major natural events and geopolitical

instability

Goods People Merchandises

REGULATORY COMPLIANCE

& CERTIFICATION

FLEET CENTER, ASSESSMENT OF RISKS & CRISIS MANAGEMENT+

= S A F E T Y

20 CMA Ships scope excluding: AML, BS, NSB, MERCOSUL, CPOFund and CNC21 Calculation method: Number of deficiencies in 2017/Number of PSCs in 2017.

36 37


In the event of a crisis, the affected entity will first call the emergency 24/7 number, where it will speak to the on-call operator. The operator will inform the various departments of the situation, and depending on the severity of the incident, will determine whether to form a crisis unit made up of all relevant parties. There are dedicated rooms for such purposes in Marseille and Singa-pore equipped with all necessary means of communication. The crisis will then be managed from this room. Once the crisis has been resolved, an investigation will be carried out to determine the causes of the problem and to draw lessons from the incident and to avoid a repeat thereof.

OCCUPATIONAL HEALTH AND SAFETY The assessment of risks associated with safety and working conditions is cen-tral to the Group’s preventive approach. It comprises an ongoing improvement process in which all employees, from Management to seagoing and operational employees, are involved on a daily basis.

As required by applicable regulations, all risks are identified, assessed and are the subject of annual prevention plans at the various maritime, land-based and shore-based entities. These prevention plans cover varied topics such as indi-vidual protective equipment, chemical risks, psychosocial risks, addictions and noise risks. Investigations are systematically conducted into workplace acci-dents with work stoppages of more than 24 hours and/or near misses that are considered to be serious, in order to analyse the causes and implement appro-priate corrective and preventive actions.

Every quarter, feedback on on-board incidents (accidents, near misses and inspections) is compiled and discussed by owned fleets. This allows sailors to benefit from others’ experiences and better anticipate risks.

In 2017, actions to develop the safety culture with the teams were strengthened. A third safety campaign for all crews was rolled out. The subject, this time, was Individual Protection Equipment, prevention for on-board dockers a satisfaction questionnaire on safety on board vessels. Training and awareness-raising are crucial aspects of prevention. These com-prise mandatory business line training sessions, on-shore, on-board, works-tation and tool familiarisation sessions, and a catalogue of distance training sessions for seagoing employees, specific training courses for all second offi-cers, as well as a programme of regular exercises and navigation simulators. Seminars were held at the head office for officers of all the Group’s fleets. Participants discussed various operational topics and on-board safety (analysis of reported incidents, safety management, etc.). The Group is also an active member of the CSSF (Container Ship Safety Forum). Launched in 2014, this is an inter-company network that seeks to improve safety performance and container transport management practices.

Main risks related to employees’ health and safety by types of activities

MARITIME ACTIVITIES

• Fire/explosion• Falls from height or slips/trips• Risks associated to manual handling• Psychosocial risks • Movements and postures• Noise/Vibrations

TERMINAL ACTIVITIES

• Collisions between machinery and pedestrians• Falls from height• Manual handling• Slips/trips• Falling objects (mainly, container lashing bars)• Vibrations • Electricity

• SSE management• CMA ships• Line management• Finance Departement…

• Executive Management• Communication Department

> Severity assessment of the event

> Positive

EMERGENCY EVENTS

24/7 Officer on duty

Communication to management

Triggering crisis

Crisis management

Investigation/ Feedback

> >

In order to prevent navigational risks, parti-cularly weather-related risks, modern techno-logical resources are developed in-house by the experts at the Fleet Centres and then pro-vided to captains and officers on board the Group vessels.

These resources include routing assistance systems and navigation assistance systems for bad weather. In the Marseille, Singapore and Miami Navigation Control Centres. Experienced captains continuously monitor

routes, analyse risks, and advise and sup-port all fleet vessels and the Grou due to bad weather in 2017.

The centres also ensure that fuel consumption is optimal and that vessels comply with speed limits in whale breeding grounds and with re-gulated navigation zones.A team of experts in manoeuvring vessels analyses and determines the nautical rules for accessing the ports where the group’s vessels dock.

FLEET NAVIGATION CENTER: CUTTING EDGE TECHNOLOGICAL RESOURCES

38 39


CMA Ships has taken the initiative of updating the inventory of hazardous materials (IHM) on its owned vessels. This update was recommended by the 2009 Hong Kong Convention on the Recycling of Ships, which will soon enter into force following a IMO ratification procedure.In the course of these investigations, materials (consumables) containing asbestos were discove-red on board certain vessels.

Items containing asbestos derived from mainte-nance operations carried out by third parties or spare parts delivered by unscrupulous suppliers that do not comply with the Group’s contractual terms and conditions. The Group immediately took steps to protect crews, informed the competent au-thorities (the flag state, class, seafarers’ healthcare service, and the labour inspectorate for RIF (French flag register) vessels), and the Health and Safety Committee for French entities.

An action plan is being implemented with the help of an ad hoc committee, plans have been made for these asbestos-containing items to be removed by specialist approved companies, and the Group has also ordered regulatory controls (in particular, the removal of dust from the atmosphere).

Asbestos has been banned on French vessels since 2002, but is not banned in all countries. Ship construction contracts and the contractual condi-tions for purchasing consumables for ships clearly exclude any asbestos in the construction process as well as in the parts delivered. An “asbestos free” certificate is issued for new vessels and parts that are delivered. In addition, since 2013, CMA CGM has required asbestos surveys from classification so-cieties before the delivery of vessels built in South Korea, China and the Philippines in order to confirm the complete absence of asbestos on board the ves-sel.

ASBESTOS RISK

-35%Maritime accidents at work - with sick leave

• Dangerous goods within the meaning of international regulations (the IMDG (International Maritime Dangerous Goods) code) or national regulation CFR49, under which transport is strictly controlled (segregation, temperature, stowage, etc.)• Potentially hazardous goods requiring recommendations: chemical products in controlled temperature containers (“Reefers”), the loading and receipt of heavy goods, etc.• Controlled goods subject to rules that seek to prohibit or control movement thereof.The Group is a founding member of the CINS (Cargo Incident Notification System), a communications platform for the largest shipping companies, which allows them to communicate very quickly on safety and security issues in connection with transported goods. The system has already significantly improved the quality of containerised goods transport.In addition, in June 2016, the international VGM (Verified Gross Mass) regulation came into force, under which containers must be weighed before being loaded. This regulation is intended to prevent accidents and containers being lost at sea. The Group planned for this regulation before it entered into force by modifying its information systems to electronically integrate the Verified Gross Mass of containers sent by customers. This data is communicated to the relevant people at each stage of maritime transport, leading to improvements in the safety of the transport chain.

Finally, the CMA CGM Group takes all necessary steps to prevent the illicit transport of goods in accordance with the Group’s various regulations and Code of Ethics.

These concern goods covered by the International Union for Conservation of Nature (IUCN), Appendix I of the Convention on Convention on International Trade of Endangered Species (CITES) and the Washington Convention, the United Nations Convention against Illicit Trafficking in Narcotic Drugs and Psychotropic Substances and the various United Nations Rules on goods subject to embargoes. The Group works closely with recognised organisations, such as BASCAP (Business Action to Stop Counterfeiting & Piracy) to combat the transport of counterfeit products and arms trafficking.

In 2017:

Terminals Evolution 2016 - 2017

Frequency rate of accidents at work - with sick leave -45 %

The Group’s managed terminals have seen the frequency rate of accidents with work stoppages fall over the course of the year thanks to an effective preven-tion policy applicable to the entire scope. In 2017, several severe accidents at the Terminals in question, which were analysed with a view to preventing similar situations to those that gave rise to these accidents.

Maritime Evolution 2016 - 2017

Frequency rate of accidents at work - with sick leave -35%

In the maritime scope, 2017 saw a further fall in the frequency rate compared with 2016, with a rate of 0.9 in 2017 compared with 1.63 in 2016. Furthermore, one fatal accident was recorded on the CMA CGM HERODOTE, also reported as a major maritime incident. Accidents on board vessels involving seagoing employees are not the only accidents recorded by the Company. Accidents involving shore-based employees are also monitored, reported on and analysed.

CARGO SAFETY

The CMA CGM Group is required to transport highly diversified goods: non- manufactured products, consumer products and dangerous goods. Since certain goods may present a hazard during transport, the Group has introduced a dedicated structure tasked with monitoring, evaluating and preventing the risks associated with transporting goods. The Group accordingly divides goods into three categories:

Near misses A near miss is an unintentional incident that could have caused damage, injury or death, but was narrowly avoided. Near misses must be studied and recorded, and experiences must be shared to reduce the likelihood of similar incidents occurring. Most workplace accidents are preceded by near misses that should serve as a warning. In 2017, CMA Ships recorded 1,916 near misses, an increase of 91% compared to 2016._

-45%accidents at work

with sick leave for Terminals

40 41


THE ENVIRONMENT PROTECTION

CMA CGM’s active participation in Cindex Cindex - Centre Inter- entreprises de l’Expatriation (Inter-Company Expatriation Centre) is a privileged forum for exchanging and sharing good practices on interna-tional mobility strategies and policies for the major European groups, with a global reach. Each member benefits from the experience of others, while retaining complete freedom over their actions and decisions, and discussions are carried out confidentially. It is a genuine informal peer-to-peer network. It is based on mutual understanding and trust, and the co-option of members, thereby ensuring a forum of members with shared concerns._

INTERNATIONAL SECURITY

At seaThe CMA CGM Group implements all the legal, technical and human resources at its disposal to prevent and counter security threats at sea (piracy, trafficking, etc).In relation to piracy, particularly in the Indian Ocean and West Africa, a number of protective measures have been developed and introduced on board the Group’s vessels, combining passive and active protection. These measures, which are constantly adapted to changes in the nature of the threat, allow the Group’s vessels to safely carry out their journeys. In 2017, nearly 402 piracy incidents were recorded worldwide, including 302 confirmed pirate attacks. Of these 302 attacks, the majority took place in Sou-th-East Asia and West Africa. 5 CMA CGM Group ships had to deal with piracy incidents over the past year, the most serious case leading to the capture of six crew members of a chartered ship off Nigeria. These crew members were released after three weeks of negotiations.

On land For several years, CMA CGM has been developing a global land security policy. Through the application of relevant and appropriate protective measures and resources, this policy aims to reduce exposure to security, health, natural and technological risks for the Group’s activities and employees throughout the world. CMA CGM is thus seeking to provide all employees with an optimal level of protection.By way of example, countries are categorised into different criticality levels, depending on the risks identified in each of them. For each country, appropriate measures are therefore put in place, both to secure the Group’s assets and to protect employees, whether they are local, expatriate or on secondment. Within the Group, 85 countries are classified as high-risk. Any person travelling to these countries must first be registered with the Group Security Department and briefed where necessary.In 2017, nearly 1,000 journeys to high-risk countries were managed.In addition, in 2017, the Group had to deal with 57 crisis situations, some of which required an ad hoc crisis cell. These situations were associated with natural disasters (hurricanes Irma, Maria, etc.), armed conflicts (Iraq, Syria, Libya, etc.), threats to certain employees and emergency medical evacuations.

_

42 43


ENVIRONMENT

BLUE IS THE NEW GREEN Environmental protection is a challenge and a major commitment for the Group, including the continued reduction of impacts, new regulations on ballast water, air emissions and the growing expectations of customers and stakeholders.

The objectives are structured around three main focuses:

• energy and air emissions• Preserving the oceans• Innovation and development of ecological solutions

CMA CGM responds to each of these challenges through a fleet of modern ships, equipped with eco-technologies and operated to minimise the environmental impacts.

ELECTRONICALLY CONTROLLED ENGINEAUTOTUNING ENGINE/ SELF AJUSTED ENGINE

ADDITIONAL BILGEWATER TANK

GREY WATERS TANK

ULTRA LOW SULFUR COMPLIANCE

CO2 emission - energy efficiency

Ocean preservation

Air quality

ALTERNATIVE MARITIME POWER SHORE POWER CONNECTION

ECOCONTAINERS• BAMBOO FLOOR• LIGHT STEEL• SOLVENT FREE PAINTS

TWISTED LEADINGEDGE RUDDERWITH BULB

24/7 FLEET NAVIGATION CENTER• ROUTING AND WEATHER OPTIMIZATION• SLOW STEAMING CARGO HOLD BILGE

WATER HOLDING TANK

MULTICHAMBER WASTE COMPACTORSNO INCINERATOR, NO WASTE AT SEA

OPTIMIZED BULBOUS BOW

FAST OIL RECOVERY SYSTEM

WATER BALLAST TREATMENT SYSTEMCHEMICAL FREE

LIMITED AIR POLLUTANTS NOX, SOXLOW CONSUMPTION REEFER

AIR SEALEDSTERN TUBE

Exhaust gas by pass

OPTIMISED HULL LINESDOUBLE HULL PROTECTION

TINFREE ANTIFOULINGCOATING

OPTIMIZEDPROPELLERS

AMP

2016 Annual Report

CMA-CMG RA16 Corporate_EN.indd 46 12/06/2017 10:41

The environmental benefits of LNG

LNG is a real technological breakthrough for the protection of the environment, and compared to current fuel-powered vessels it enables:

The Energy Efficiency Design Index (EEDI*), which measures the environmental footprint of a vessel, improves by 20% compared to a conventional vessel.

*energy efficiency design index compared to a fuel-powered vessel

A reduction of up to 25% in CO2

A 99% reduction in sulphur emissions

A 99% reduction in fine particle emissions

An 85% reduction in nitrogen oxide emissions

LOW PRESSURE DUAL-FUEL ENGINE: Engine fueled with gas and MGO (less than 2% of MGO needed to create the spark necessary for its ignition)

20RSE

GREEN SOLUTIONS DEVELOPED BY THE GROUP

LNG

Modern fleet, equipped with the latest technologies

Vessels of the future: CMA CGM chooses LNG for its future

giant container ships

Modern fleet with the latest environmental

technologies

MyCarbonfootprint: a premium solution to

evaluate CO2 emissions for our

strategic customers

Energy efficiency: the Group’s CO2

performance improved by 10%

in 2017

Marine environment: 0 major pollution

events and 0 containers lost at sea

The CMA CGM Group places environmental protection at the heart of its commitment to sustainable and responsible development. The major issues facing the Group include: continuous reduction of environmental footprint of all maritime and land-based activities, regulatory compliance and, above all, anticipate future regulations, development of more eco-efficient supply chains with customers and partners.The CMA CGM Group’s environmental policy has 3 strategic focus: •Air: climate change and air quality•Oceans: conservation of the oceans and marine biodiversity•Innovation: innovative and ecological solutions

ENVIRONMENTAL INNOVATIONS AND TECHNOLOGIES

CMA CGM has chosen Liquefied Natural GasThe CMA CGM Group has chosen to equip its next nine giant 22,000 TEU ships with engines powered by Liquefied Natural Gas (LNG), with commissioning planned for 2020.For the first time in the history of containerised transport, a shipping com-pany has made an ambitious decision to choose pioneering technology for its high-capacity vessels.

These new ships represent the culmination of more than seven years of work by teams of experts, engineers, sailors and close collaborations with a number of technical and port partners. The use of LNG has many environmental advantages over heavy fuel oil, such as the significant reduction in CO2 emissions, the absence of sulphur oxide (SOx) emissions and the drastic reduction of nitrogen oxide (NOx) and fine particulate emissions. LNG vessels will be compliant with the IMO regulations that seek to reduce sulphur emissions from 2020 onwards.

A genuine technological breakthrough for the protection of the environment, LNG-fuelled vehicles have the following benefits over those currently powered by diesel:• 99% reduction in sulphur emissions• 99% reduction in fine particulate emissions• 85% reduction in nitrogen oxide emissions• CO2 reduction of up to 25%

44 45


transported goods are the subject of requests from customers on the environment and CSR.

As in previous years, most frequent customers request concerned the CO2 footprints of their shipments with CMA CGM. In 2011, the Group sought to meet this requirement by developing an eco-calculator that could estimate the carbon footprint for maritime transport between two points worldwide. The eco-calculator is available on our website.

To ensure reliability of data to our customers, the methods used in these CO2 reports has been verified and certified by KPMG, acting as an independent third party.

Since early 2013, for every booking, customers connected to the e-commerce platform have been provided with a calculation and automatic display of the carbon footprint, both for maritime and land-based elements.

In 2015, the Group developed an internal tool that generates customised CO2 reports stating the carbon footprint for all single customer’s bookings, broken down by trade and by mode of transport.

0.538 0.3180.619 0.465 0.270

POL MundraPOD Istanbul

Jeddah Malta Tanger MedPOO

New Delhi

Inland (rail)Perf = 271 g / Teu-km

993 km = 24%of total CO2 emissions

Maritime leg 100% on EPICPerf = 73 g / Teu-km

11 385 km = 76%of total CO2 emissions

CO2 Footprint (tons per leg)

CO2#1 #2

#4

#5

#3

CUSTOMIZED CO2 REPORTKeys to make your supply chain greener

CO2 reportCOO2 report is a useful tool for customers who want to monitor a s seful tool for mers who want to mo eetheir logistics carbon footprint per year, per trade and per mode, a their logistics carbon footr logistics footprint perpprripfcarb er trade and per mper

step towards CO2 emissions optimizatiofi rst step towards CO2 em ons opsioo tion

Trade analysis

Your carbon KPIs at a glance Evolu� on of your emissions

Focus on POO/FPD analysis

CMA CGM Environment and Sustainability News

Contact your usual sales representative to get your own personalized report

FEATURES & BENEFITS

Detail of your global carbon footprint (maritime and inland) and related shipments in TEUs

A quarterly outlook of your CO2 emissions and the distribution by transport mode (main liners, feeders, inland)

A snapshot of your top trades and preferred services ; their performance and share in your total CO2 emissions over the period

An analysis of your n°1 door to door traffi c, allowing you to compare the CO2 weight of the different services and modes you favored and spot potential CO2 savings

www.cma-cgm.com

Modern fleet, equipped with the latest technologiesIn 2017, the average age of vessels in the owned fleet was less than 8 years. Every year, CMA CGM opens new buildings equipped with state-of-the-art en-vironmental innovations. At the same time, ships currently in the fleet are one after another sent to dry dock to be upgraded bulbous brows retrofitting, pro-peller changes etc., in order to ensure a uniform fleet. These technologies will be described in detail in the following sections: • Energy-related technologies: ( cf page 47: Energy, emissions and air pollutant )• Biodiversity technologies: ( cf page 50: Oceans: waste, pollution, lost containers and biodiversity )

Eco-containers – environmental innovations The CMA CGM Group runs a fleet of young and reliable container ships and invests in innovative containers, thereby limiting its environmental impact.

Three technologies are used in these eco-containers: • Bamboo floor: so-called “dry” containers have a wooden floor on which goods are placed. The wood that has always been used takes 60 years to mature, and is now rare. A research has been carried out on new wood species and bamboo was chosen for its exceptional properties: bamboo regrows once it has been cut and it only takes 4 to 5 years to reach maturity. Today, 11% of the container fleet used by the Group (owned and leased) has bamboo flooring. • Low consumption reefers: reefers are refrigerated containers for perishable foodstuffs and products, requiring energy and refrigerant gases. Low consump-tion reefers have a more efficient motor that reduces electricity consumption and fuel consumption by up to two-thirds. Today, 63% of the reefer fleet used by the Group (owned and leased) comprises low consumption reefers. • Light steel containers: as robust as standard “dry” containers, light steel containers are lighter to optimise fuel consumption and limit greenhouse gas emissions and air pollutants. Today, 3% of the container fleet used by the Group (owned and leased) comprises “light steel” containers.

Optimised transport solutionsTransport of goods by container ships has a lower tonne-kilometre carbon foot-print than other potential modes of transport. This environmental performance is a key benefit for CMA CGM’s customers.In addition to maritime transport and port operations, the CMA CGM Group designs and implements multimodal logistics solutions that combine river transport and rail and road transit. These pre- and post-transit solutions enable the Group to offer customers comprehensive transport solutions that are also environmentally friendly.These services are offered by the CMA CGM’s Intermodal department and by its subsidiary, CMA CGM Log.For example, when launching the new RORO Morocco service, a numerical stu-dy was carried out to determine the environmental benefits for the community of replacing land transport between Morocco and France with a maritime route. The factors that were analysed include the CO2 reductions, but also the nega-tive externalities avoided. At the end of 2017, a review showed that the loading rates for the RORO Morocco service were unsatisfactory and the decision was therefore taken to reduce this line and to re-develop it once the intermodal connections were better established and when market conditions were more favourable.

Customer solutions Maritime transport customers are increasingly asking for environmental information on the services they buy. This trend is manifested by the growing number of loaders joining the Clean Cargo Working Group and by the increased importance of carbon footprints when customers are choosing a transport provider. Almost 20% of total

46 47


ENERGY, EMISSIONS AND AIR POLLUTANTS

Energy consumption

Due to the very nature of the transport business, which relies heavily on fossil fuels, energy consumption remains a major issue. It represents an economic, environmental and public health challenge for the Group and is carefully moni-tored by its various entities. The Group’s greenhouse gas or polluting emissions are directly linked to its energy consumption.

Indicators 2016 2017 ChangeFuel consumption of the maritime fleet22 ktonnes 5,883 7,783 32 %Energy/loaded TEU23 kg/TEU 459 413 -10%

In 2017, the CMA CGM Group’s fuel consumption for maritime activity was 7,783 tonnes, an increase of 32% compared with 2016, as the 2017 figure includes the APL scope. In terms of energy efficiency, there is a clear improvement in the quantity of fuel per transported container, with a 10% fall compared to 2016.

For several years now, the Group has undertaken numerous steps to reduce fuel consumption: renewal of the fleet, oversight and monitoring of consumption, reducing speed, optimisation of ships’ routes, technical improvements relating to propulsion and hydrodynamism.• More specifically, in 2013 CMA CGM launched a programme to optimise its owned fleet primarily by modifying its bulbous bows. Carried out in dry dock, this change optimises the hydrodynamism of the vessels at the speeds at which they travel. These changes have already been applied to 60 vessels, including 8 in 2017. This innovation reduces fuel costs and CO2 emissions by 5% to 10%, respectively. Furthermore, the Group has also launched a programme for changing propellers with optimised energy efficiency. In 2017, 15 propellers were changed. • In another example of steps taken to reduce energy consumption, CMA SHIPS restricts the main engines of its largest vessels to adapt to current sailing speeds. • In 2017, the Group launched a program to install recovery boilers for auxiliary engines (like for the main engines). Instead of burning hydrocarbons to produce the required levels of steam, the boiler will recover the heat from the flue gases from the auxiliary engines, even when the main engine is at rest. 11 vessels are equipped with this technology.

Climate change

Evaluation of greenhouse gas emissions generated by the Group24 in tonnes of CO2 equivalent

Indicators Distribution

Scope 1 88%

Scope 2 0%

Scope 3 11%

The CMA CGM Group’s main source of greenhouse gas emissions is the combustion of fuel consumed by ships, which accounts for more than 88% of the Group’s overall energy balance. The energy consumption (mainly electricity) of terrestrial activities (branches and terminals) is insignificant compared with the consumption of the maritime fleet. The main sources of the Group’s indirect CO2 emissions are the construction of ships operated by the Group and the production of fuel oil used by ships. In 2016, this represented approximately 11% of the Group’s CO2 emissions.CO2 emissions associated with the intermodal land transport of containers are negligible (<5%) compared with maritime transport emissions and are therefore not included in the table below.

In 2017, the fleet emitted 24.28 million tons of CO2, an increase of 32% on 2016, due to the fact that APL was included in the group scope. At constant scope,

• Scope 1 includes the emissions linked to the

consumption of fuel oil by owned and chartered ships

and the fuel oil consumed by handling devices at the

terminals

• Scope 2 includes emissions resulting from the elec-

tricity consumption of terminals, offices (branches

and HO) and vessels connecting to the terrestrial

power grid

• Scope 3 emissions includes emissions from the

construction of ships and containers, from the

production of (solid and liquid waste by vessels,

employee business travel, fuel consumption inherent

in land-based transport and the upstream phase of

producing and transporting the consumed fuel

_

22Overall maritime scope – Owned and chartered fleet – Annual consumption 2017 23 Loaded TEU = remunerative TEU 2017 – Finance

24Scopes 1, 2 and 3 as defined by the Greenhouse Gas Protocol - http://www.ghgprotocol.org/ // Note that Scope 2 and 3 data are 2016 data, Scope 1 data is for 2017

ENERGY EXPLOITATION

GROUP CO2 EMISSIONS

-10%Energy / Loaded TEU (kg/TEU) 23

The Group has been able to cut energy consumption per container by modifying bulbous bows, changing the propellers and fitting waste heat boilers.

Between 2005 and 2015

Between 2015 and 2025

-50%

-30%

48 49


events and advise Captains in choosing a route and minimising risks. Major natural events are taken into account in our risk analysis and are included in ourcrisis management system.

Air pollutionIn addition to CO2, the Group is very concerned about sulphur emissions, nitrogen dioxide emissions and fine particulate matter. Since these emissions create issues for public health and air quality, increasingly stricter international and local regulations are being enforced.

In October 2016, the IMO set a global limit of 0.50% for sulphur contained in the fuel used on board vessels, to apply from 1 January 2020. This will significantly reduce the amount of sulphur oxide emitted by ships and should have signifi-cant benefits for the planet, particularly for people living near ports and coasts. This regulation follows the implementation of Annex VI of the MARPOL Conven-tion on combating air pollution by ships.CMA CGM pre-empts and considers any technical solutions that may reduce these emissions, such as the use of low-sulphur fuel, installing scrubber systems on vessels and any alternatives such as LNG propulsion. Since 1 January 2015, the Group has cut its sulphur emissions in northern Europe, North America and the Caribbean to comply with the new ECA regula-tion (Emissions Control Area) instituted by the IMO.

In 2017, the average sulphur level of fuel purchased by the Group was approxi-mately 2.42%.In addition, since 1 January 2017, in California, local regulations have required shipping companies to use on-shore electrical power at berth for 70% of vessels at a Californian port of call, rather than using on-board engines, compared with 50% applied since 2014, leading to reductions in fuel consumption and, consequently, air emissions. For this reason, six CMA CGM vessels were equipped with a power grid connection system.

China has defined emission control areas (ECAs) in its territorial waters, in order to address the recurring problems of pollution in China. This environmental programme took effect on the 1st of April and requires vessels to use low- sulphur fuel with a sulphur content of no more than 0.5%. Since 1 April 2016, the Group’s vessels calling at the Shanghai, Ningbo-Zhoustan, Suzhou and Nantong ports have been required to switch to a fuel with less than 0.5% sulphur content upon docking and at berth.

The next stage in the Chinese environmental programme will be implemented in 2019. All vessels will be required to comply with a maximum sulphur content of 0.5% as soon as they enter the applicable waters.

Indicators 2016 2017 Change

Sulphur oxide or SOx emissionsktonnes 279 378 35%

Nitrogen oxide or NOx emissions27 ktonnes 500 667 33%

In 2017, SOx and NOx emissions from the fleet were 378 thousand tonnes and 667 thousand tonnes, respectively. There was a 35% increase in SOx emissions compared with 2016 due to the integration of APL and due to the increase in total consumption.

Clean CargoClimate change is a major issue for maritime transport. According to the International Maritime Organisation26, these CO2 emis-sions represent 2.2% of worldwide emissions and are the subject of numerous discussions at the level of regional and international regulatory bodies. 2016 was marked by COP 21 (21st Conferences of the Parties) that resulted in an historic agreement to maintain global warming under the 2°C limit, establishing bold objectives for many countries and mechanisms to fund and inspect these commitments. In terms of the negotiations, there was debate over whether to include maritime transport in the agreement. The IMO subsequently committed to setting an ambitious target for the sector. At the most recent meeting of the MEPC (Maritime Environment Protection Committee) in October 2016, the IMO adopted a regulation on the reporting of CO2 emissions, a key component of its strategy to reduce CO2 emissions, including, in the long term, the implementation of auditing, financial and technical mechanisms. In parallel, in 2015, the European Parliament adopted the Monitoring, Reporting and Verification (MRV) regulation on CO2 emissions from maritime transport, which requires shipping companies to report CO2 emissions from, to and within the European Union from 1 January 2018. Through the CCWG - Clean Cargo Working Group, a voluntary discussion and standardisation platform, shipping firms and major customers are helping to develop standard methods of calculating air emissions in the sector. With a view to meeting regulatory requirements and customer needs, CMA CGM began using this method28 in 2008 to create a monitoring system for its CO2 emissions and performance (g/TEU-km) which is checked by an independent accredited organisation29.

26 Third IMO GHG Study 2014: http://www.iadc.org/wp-content/uploads/2014/02/MEPC-67-6-INF3-2014-Final-Report-complete.pdf.28 CCWG methodology without taking into account the distinction between dry container and reefer container.29 Audits KPMG Audit en 2017._

the increase was 4%. CO2 emissions per container fell by 10% compared to 2016. Certain atmospheric emissions from the Group’s maritime activity are independently verified by a third party, on a voluntarily basis.

Indicators 2016 2017 Change

CO2 emissions25 Million tonnes 18.4 24.3 32 %

CO2 /loaded TEU 26 Tonnes / TEU 1.43 1.29 -10 %

Climate change is a major issue that will eventually lead to more technical, regu-latory, financial and operational constraints, but will also create new opportuni-ties for responsible and sustainable maritime transport.

In 2015, the Group achieved its 2005 objective of reducing its CO2 emissions per TEU-km by 50%, and a new reduction target was set by the Group: a reduction of 30% CO2 per TEU transported by 2025. In 2017, CO2 emissions per transported container were reduced by 10%.

Adapting to climate changeOne of the consequences of climate change that could physically impact the Group’s operations is extreme weather events or a rise in sea level that may pose a risk for both our ships and the Group’s terminals within ports. For the maritime activity, the Navigation Centre’s role is to anticipate extreme weather

25 Overall maritime scope, 2017 Finance Owned and chartered fleets26 Loaded TEU = remunerative TEU 2017 Finance 27 Global Maritime Scope - Owned and chartered fleet - 2017 - Finance

50 51


28 13,860 = 110 owned vessels at end of 2016 x 12 months x 10.5 m3/month 29 CMA Ships scope excluding: AML, BS, NSB, MERCOSUL, CPOFund and CNC

fuel that contains water and heavy metals. It must be centrifuged on board before being used. The centrifugation process requires water to be added to the water and heavy metals extracted from the fuel.

All this waste is the “sludge”, and is considered hazardous waste. It is unloaded on land and managed by land-based waste streams. CMA CGM deals with sludge generated by the owned fleet but the charter partner deals with sludge generated by chartered vessels. They may be dealt with either the ship-owner or the charterer.

A team responsible for monitoring the unloading of sludge was put together in June 2015, which enabled the method used to assess the quantity of sludge produced to be refined. For 2017, a ratio of 2.4% of consumed fuel was used to calculate the total quantity produced.

Indicators 2016 2017

Production of solid waste by owned fleetThousands of tonnes 1428 1829

Total fleet sludge productionThousands of tonnes 118 187

The waste produced by the CMA CGM Group’s offices and branches is compa-rable to that produced by traditional office activities. In dry ports and termi-nals, the waste produced is mainly non-hazardous waste (pallets, wood, plastic film) and represents less than 1,200m3 per year across the Group’s consolidation scope (Finance).

Accidental discharges to the seaAccidental discharges to the sea and in particular pollution from hydrocarbons lin-ked to the Group’s vessels or terminals represent the most significant environmental risk. A set of measures is in place to prevent this risk, such as fleet maintenance, routine drills and simulations between land and vessels, and a strong crisis mana-gement policy.

OCEANS: WASTE, POLLUTION, CONTAINERS’ WASTE AND BIODIVERSITY

Production of waste on boardThe property fleet produces different types of waste:• Solid waste made from food waste, household waste, maintenance waste • Liquid waste consisting of waste water (sewage), oily water and sludge. In respect of solid waste, the Group has launched an innovative, ecological and exemplary approach that goes beyond the requirements of the MARPOL regulation: the “Green Ship” Programme. All of the Group’s owned ships now participate in this programme.

This initiative revolves around four key points: 1. Selective sorting of all waste 2. The removal of incinerators in favour of new generation compactors, eliminating the emission of polluting gases3. The formal prohibition of throwing any waste overboard (excluding food)4. Optimising waste recycling on land

The quantity of waste produced is continually monitored and reported. Specifictrainings are carried out both on board and on land.

All owned vessels are currently committed to this programme. On average in 2017, vessels produced less than 10m3 of waste per month. The programme also allows for exchange on “good practices” or “difficulties encountered” with vessels. Ports that collect waste for recycling are listed by the type of waste they collect (ink cartridges, plastic, etc.), while certain other ports are not recommended. The aim is to draw up a central map of ports that provide the best selective sorting process.Liquid waste is primarily from fuel. The fuel used on board ships is a “residual”

CMA CGM’S POSITION REGARDING TO THE SULPHUR CAP 2020

52 53


32 Containers lost by CMA CGM owned vessels are recorded, but containers lost on chartered or partner vessels are excluded. Note that containers that fall into the water at a port and are then recovered are not recorded 33 Survey Results for Containers Lost At Sea – 2014 Update- World Shipping Council

According to the World Shipping Council33 , 2,000 containers were lost at sea worldwide every year from 2006 to 2013 primarily due to difficult sailing condi-tions or an exceptional accident. In 2017, the CMA CGM Group recorded no containers lost at sea.

The loss of containers at sea is generally linked to poor stowage of containersassociated with the shipper under-declaring container’s weight. The risk is increased in bad weather. All resources are deployed to avoid contai-ners being lost: weather monitoring, the navigation centre, weather routing, on-board container securing system. The CMA CGM Group has engaged discussions with Armateurs de France (French Shipping Association) and the competent authorities in order to reduce the risk of losing containers at sea.

Protecting biodiversityBiodiversity protection mainly lies in managing the risk of liquid releases or solid waste at sea. But, container ships can potentially impact biodiversity because they transport ballast water or as a result of collisions with cetaceans.

Ballast tanks are receptacles filled with seawater located on either side of a ship, acting as ballast to ensure structural stability and integrity. The ballast water contains living species which, when released, may disrupt local fauna and flora balance. The Water Ballast Management Convention adopted by the IMO in February 2004 was ratified in 2016 and entered into force on 8 September 2017.

CMA CGM pre-empted the entry into force of this convention by equipping as many new vessels as possible with a ballast water treatment system. This discharges water into the sea that is completely free from any living organism that may impact marine biodiversity. In parallel, the US has also introduced local regulations on the treatment of ballast water. It has approved six ballast water treatment systems that comply with US regulations, which are more stringent than international regulations. The Group’s ships are equipped with approved systems and will be required to treat their ballast water using one of these systems before discharging it into US waters. The Group has devised a schedule for installing these systems on its owned fleet, in accordance with requirements of the international convention and American regulations. 72 Group ships are already equipped.In addition to the ballast water treatment system, the owned fleet is equipped with a number of technologies to limit its impact on biodiversity.

The “Fast Oil Recovery System”, a pollution management technology, is a simple, reliable and safe system that recovers hydrocarbons in the hold without needing to penetrate the ship’s hull in the event of the ship being grounded. 51 vessels are equipped with this technology.

Until 2010, the fuel on container ships was generally stored in the hulls of vessels, protected by a single seal. Since the MARPOL 12A rule entered into force (~2010), double seals have been used. The installation of a second wall around fuel tanks prevents from the risk of maritime pollution in the event of a collision or if vessel’s hull is punctured.

Additional tanks allow bilge water, machine water and grey water to be treated. In addition, the deck equipment is fully electric to avoid any leakages of hy-draulic fluid.

In parallel, several programmes have been introduced in the United States and Canada for the protection of marine cetaceans. On the East Coast of the United States and Canada, CMA CGM vessels are required to reduce their speed to a maximum of 10 knots in certain areas recognised as breeding grounds for ma-rine cetaceans. Also, on the West Coast, CMA CGM has voluntarily committed to the «Green Flag» speed reduction programme that was introduced in the sanctuary near the Santa Barbara Islands. The port of Long Beach rewarded CMA CGM for dropping the speeds of its container ships at both:

There are several types of marine pollution:• Fuel• Oil• Chemicals• SludgePrevention of this pollution relies on on-board equipment, human management, procedures and controls.Firstly, the vessels are equipped with “SOPEP” equipment, comprising disper-sants, cloths, sawdust, protective goggles, a shovel, buckets, a portable pump, absorbent tape, gloves, bags, etc. Liquid discharges are controlled by instruments that comply with regulations, such as an oily water separator. This controls the maximum authorised concen-tration of hydrocarbons in water discharged into the sea while the vessel is travelling i.e. 15 ppm. Some ships are equipped with a 5 ppm separator.Human management and procedures play a crucial role in preventing pollution.The teams have partnerships with:• Le Bataillon des Marins Pompiers: fire and pollution drills are organised on board so that improvements may continually be made.• Le Cèdre: Documentation, research and experimentation centre on accidental water pollution. Employees attend an annual training at this Brest-based orga-nisation.• Specific bodies, such as ECM, act as a point of contact between the Group and the American Coastguards.In addition, many fleet vessels are equipped with the Fast Oil Recovery (FOR) system. (See details in the biodiversity section).

Impact Description CMA CGM

D Very high Significant volume discharged

Very large and/or multiple polluted areas 0

C High Volume of hydrocarbons discharged > 5,000 Litres

Significant impact 0

B Average Volume rejected > 100 Litres

Localised pollution 0

A Low Volume rejected ≤ 100 Litres

Minimal impact on the environment 7

Number of incidents30 resulting in accidental discharges into the sea31: in 2017, no significant discharge by CMA CGM’s owned vessels was observed. Never-theless, seven incidents had an impact on the environment but all remained low-risk.

Containers lost at sea

Indicators 2016 2017

Containers lost at sea32 7 0

30 Incidents recorded regardless of whether CMA CGM is responsible 31 Exclusion of containers lost at sea

54 55


Circular economy The circular economy is an economic concept that forms part of sustainable development, the aim of which is to produce goods and services while limiting the consumption and waste of raw materials, water and energy sources. As a transport and logistics operator, CMA CGM Group is a fully-fledged player in the circular economy, working at all stages in the transport of raw materials, intermediate and final consumer products, products at end of life, depending on the needs of its customers. The Group pays particular attention to the responsible use of resources, raw materials and consumables. Further information are available in the Environment section of this report.

ENVIRONMENTAL INITIATIVES AND AWARDS

2017 environmental awards As part of a wide range of voluntary initiatives to help protecting the environ-ment, the group receives awards every year for its environmental commitment, both from customers and local authorities. The 2017 highlights were as follows:

• The CMA CGM Group was recognised by the Environmental Vessel Index (ESI) in Europe, the United States and Asia, an obtained ISO 14001 certification in Spain and Green Flag certification in California. In total, over 14 ports world-wide rewarded the technical performance and environmental approach of the group’s ships.

• February 2017: in California, the group participated in an initiative launched in 2016 by local and national stakeholders in the marine and environmental sphere that aimed to reduce air pollution and protect whales during their annual migration periods.

• May 2017: The CMA CGM Group has been IWAY certified since 2009. After CMA CGM, it is now APL’s turn to comply with the IKEA standards on the envi-ronment, working conditions, safety and ethics, a mandatory procedure for all IKEA suppliers, a precursor in terms of a sustainable development policy.

• August 2017: CMA CGM received an award from the Port of Los Angeles for its participation in the Vessel Speed Reduction Program.

• 22 and 29 August: as they both passed through the new Panama Canal locks, the CC J. ADAMS and the CC T. ROOSEVELT were given the Green Connection Award. This award recognises the Group’s commitment to reducing emissions as well as its contribution to protecting and preserving the environment.

• On 13 November 2017, APL was named Best Green Shipping Line by HAROPA, 34 Terminals subject to the CMA CGM HO SSE Terminals policy (a total of 18 terminals) excluding the Lattakia, Umm Qsar, Duch Harbor, TMG, Alterco, Manuco and Udemac Terminals.

• 40 nautical miles from the port• 20 nautical miles from the port

Furthermore, with the Fleet Navigation Centre’s help, the Group monitors the areas where lower speeds are recommended. Wherever possible, the Group strives to lower its speeds and thus, limits the risk of collision in these cetacean protection sanctuaries.

To limit the transport of endangered species, the Group has implemented procedures that raise alerts about this type of cargo (cf page 38 Cargo safety).

OTHER ENVIRONMENTAL ISSUES

End-of-life ships End-of-life ships are potentially a major issue for the industry, given current dismantling practices and the materials used to build ships. Pending the ratification of the Hong Kong International Convention, in 2008 the Group started to put together inventories of hazardous materials (“IHMs”) on board ships, which will soon be mandatory. The Group has proactively implemented an extensive plan to put together or update IHMs for the entire owned fleet. The Group is continuing its regulatory and technical monitoring, as well as research with dismantling sites in Europe and Asia. The sites are audited and certified in line with the guidelines, as required by the Hong Kong Convention. It should be noted that the Group fleet is one of the youngest in the sector and the vessels are generally sold well before their end of life. Nevertheless, when a ship has to be sent for dismantling, the group takes steps to send it to a dismantling site that complies with international and local health, safety and environmental regulatory standards.

Water consumptionWater consumption is not a significant issue for the CMA CGM Group’s maritime transport activity. The water consumption of ships is effectively neutral as seawater is pumped, desalinated and processed for everyday use on board.As for dry ports and Terminals34, water consumption is mainly linked to the washing of handling vehicles and quays. Many sites are located close to other port industries that generate a lot of different types of dust and require working environments to be frequently washed. In 2017, over the Group’s scope of consolidation, total water consumption was approximately 97,441m3.Terminals may be located in industrial complexes that generate continuous dirt, leading to significant consumption at certain sites.

END-OF-LIFE SHIPS

Systematic inventory of hazardous substances on

board

Dismantling sites audited and certified in line with the guidelines required by the

Hong Kong Convention

MANUFACTURE

DISTRIBUTIONRECYCLING

Circular economy in the CMA CGM

Group

CMA CGM

CMA CGM

CMA CGM

CMA CGM

CONSUMERS

56 57


The ESI is a voluntary system measuring en-vironmental performance of ships based on NOx, SOx and CO2 emissions. ESI provides a rating basis for an incentive system (mainly lower port charges for envi-ronment-friendly ships). Score calculation is

the same for all ports but the incentive system is at the option of each port. The platform is as well used as an evaluation base for 2 Nor-th American port initiatives ie: PANYNJ Clean Vessel Incentive Program in NEW YORK and the EcoAction Port Metro Vancouver.

ESI FOCUS – ENVIRONEMENTAL SHIPPING INDEX

French ports of Paris Seine Normandie. This award recognises APL’s exemplary environmental performance in reducing atmospheric emissions above and beyond the standards set by the International Maritime Organisation.

Environmental initiatives The CMA CGM Group is an active member of a number of varied environmental programmes focused on preserving the oceans, protecting wildlife, air quality, etc. It also participates in social programmes alongside these purely environ-mental initiatives, such as EcoVadis certification and Biceps ratings.

_

Other proactive environmental initiatives

Charte Bleue – Armateurs de France is a Charter that seeks to ensure safety at sea and promote respect for the environment: prevention and management of pollution risks, reduction of green-house gas emissions and effective waste management.

CDP - Carbon Disclosure Project - is a not-for-profit charity that runs the global disclosure system for inves-tors, companies, cities, states and regions to manage their environmental impacts.

Club Déméter brings together stakeholders in the logistics chain to develop sustainable logistics practices through experimentation and collaboration._

58 59


Containers of Hope 121 containers in 2017, 600

since the beginning of the operation

Over 20 projects in favour of local communities carried

out in 2017 by CMA CGM employees

Involvement of the Group in emergency aid activities following natural disasters

2017 Call for Proposals: 51 applications received, 13 associations selected

The Group’s activities extend to more than 140 countries. The Group is com-mitted to human rights and is committed to participating in the social and eco-nomic development of the countries in which it operates and contributing to the economic and social development of those countries through investments that lead to the creation of new jobs and business opportunities. Alongside its business activity, the Group carries out civic initiatives involving the pro-vision of financial or in-kind support to NGOs and local associations through the Foundation and also employee initiatives. It also participates in community projects following natural disasters through emergency action projects.

THE CMA CGM CORPORATE FOUNDATION

The CMA CGM Corporate Foundation was established in 2005 by Naîla Saadé to support projects aimed at children. Since being established, it has supported over 200 associations. Its mission is to encourage the personal development of children with disabilities, improve the daily lives of children with illnesses and promote equal opportunities for young people from disadvantaged backgrounds. Through the Containers of Hope campaign, it is facilitating humanitarian transport operations for the most vulnerable children all over the world.

Containers of HopeIn 2017, the Foundation renewed its humanitarian transport campaign, Contai-ners of Hope, under which the CMA CGM group offers NGOs around one hun-dred containers per year on its ships to help people in conflict zones or subject to health and humanitarian risks. The first campaign was launched in October 2012 with Action Against Hunger and Médecins Sans Frontières and then ex-panded in 2014 to include Handicap International and the French Red Cross.

Between the start of the campaign and the end of 2017, 600 containers repre-senting nearly 4,000 tonnes of humanitarian equipment have been transported to NGO partner programmes, located in more than thirty different countries, mainly in Africa - including 121 twenty-foot equivalent containers in 2017. The supplies have helped fight child malnutrition, improve access to water and satisfy the healthcare needs of the most vulnerable populations and mostly children.

THE GROUP ’S SOCIETAL ENGAGEMENT ON GLOBAL

AND LOCAL SCALES

60 61


Support to associations13 associations supported in France and Lebanon in 2017 following a call for proposals - the Foundation AwardIn 2017, the Foundation continued to support projects aimed at helping vulne-rable childhood in France and Lebanon. It launched its fifth themed call for proposals focused on projects aimed at improving the daily lives of ill children who are victims of trauma. The various projects run by these associations will enable help to reach 3,200 children.Of the 51 applications received, the Board of Directors ultimately selected 13 associations (8 in France and 5 in Lebanon), with financial support of €140,300:

> In France (Provence Alpes Côte d’Azur region): - Tout le Monde contre le Cancer for support with the “Toques en Truck“ (chefs in trucks) operation, in which renowned chefs lead cooking demonstrations at the Hospital in Aix-en-Provence for children with cancer and their families.- PREMA (Protection, Résilience, Education, Médiation, Art-thérapie) for the acquisition of a 9-seater vehicle for school transport, cultural outings, meetings with social workers, placement hearings, meetings between parents and children and for children taken in by the association who are victims of serious abuse.- SOS Villages d’Enfants for the development of a Family House in the SOS village in Marseille intended for meetings between parents and children and for the long-term hosting of siblings pursuant to court orders.- Sourire à la Vie to equip and fit out the Phare des Sourires centre in Marseille, a day care centre, sports and leisure centre, a full-board accommodation centre, and a place of care and rehabilitation for children being treated for cancer, in remission or in palliative care.- Compagnie Après la Pluie for the creation of 1,000 books/videos, and the creation, printing and production of books produced during the association’s visits to hospital, based on stories created by children with cancer.- Héroïc Séjours for the acquisition of sound, light and projection equipment, decorations, costumes, accessories and IT equipment for individual and group sessions in which children are given the opportunity to create or participate in a fantasy history of which they are the hero. - Le Gai Rire for the purchase of computer and office equipment, musical instru-ments, accessories and costumes for clown shows mainly at the maternity and children unit at the CHU Nord de Marseille (North Marseille University Hospital).- Mécénat Chirurgie Cardiaque for the management of operations (pre- and post-operative check-ups, surgery, ambulance transport) at the Timone hospi-tal for two children suffering from serious heart disease from countries where they are unable to be treated. > In Lebanon:- CHANCE (CHildren AgaiNst CancEr) to fund treatment for newborn babies,

The Foundation gave its 2017 Award to two charities that work with vulnerable children.

> In respect of France, the Foundation Award was given on 7 December 2017 to the charity SOS Villages d’Enfants whose mission is to reunite siblings so that brothers and sisters are not separated as a result of court decisions and can grow up together in a real family environment._

CONTAINERS OF HOPE OPERATION

COUNTRIES THAT BENEFITED FROM CONTAINERS OF HOPE

62 63


the Foundation to finance a Christmas party for sick children in Aix hospital, in France.• The association 1, 2, 3 Soleil for two tablets donated for the annual end-of-year tombola, with proceeds going to sick and disabled children. • Médecins Sans Frontières (Doctors without Borders) France to buy medical equipment for a paediatric intensive care unit at the new hospital opened by MSF near the Syrian border in Lebanon. • The association Assameh to develop its paediatric care unit at the Hôpital Gouvernemental de la Quarantaine in Beirut. This unit looks after premature children suffering from chronic illness. • The association Les Enfants de la Méditerranée and its partner Amel Association International for the pre-carriage in France of a shipment to Lebanon with essentials for Lebanese children and Syrian refugees. • The association Relais Enfants Parents PACA with a contribution to a Christ-mas party for the children of prisoners in Baumettes prison. • The association A.T.L.A.S to buy the special sports equipment required to organise badminton lessons geared to autistic children.

Cultural events sponsorhip The Foundation remains committed to sponsoring cultural events. - As such, in 2017, it renewed its sponsorship of the educational activities at the Aix-en-Provence Festival. - It sponsored the concert given by Renaud Capuçon and Khatia Buniatishvili, at the Festival Al Bustan on 1st March in Beirut.- It sponsored the concert of Ibrahim Maalouf at the Baalbeck Festival on july 22. - As part of the Festival International de Piano de La Roque d’Anthéron, it sponsored the piano recital given by Anne Queffélec and the Sinfonia Varsovia (Mozart) on 13 August in the Parc du Château de Florans. 50 spaces for this recital were provided to CMA CGM employees.

In 2017, the Foundation organised events for the charities it supports and for CMA CGM employees.

> On October the 9th, International Day of Persons with Disabilities, the Foundation organised a round table discussion in Marseille dedicated to disabilities, attended by three charities supported by the Foundation: 13 Accessible, ADAPEI Var Méditerranée and TCAP21. 30 employees from Marseille participated in the round table and discussed improvements made to the daily lives of people with disabilities, as well as their families, the difficulty of changing opinions on disabilities, the lack of suitable facilities for wheelchair users, and the various difficulties encountered in terms of inclusion at educational establishments and in the workplace.

> Throughout the year, tours of works of art displayed in the CMA CGM Tower were organised for employees in Marseille. Around 700 people took part.

ACTIONS AU SEIN DES COMMUNAUTÉS LOCALES Pour CMA CGM, une action locale est une initiative bénévole, ponctuelle ou récurrente, portée par une entité CMA CGM, impliquant les collaborateurs CMA CGM, ayant pour thème l’environnement, le social ou le sociétal et impactant directement les communautés locales dans lesquelles le Groupe ou ses filiales sont impliqués. Cette année, le Groupe s’est engagé dans plus de 20 actions en

children and young people in Lebanon and, since 2011, Syrian and Iraqi refugees, suffering from cancer (blood disorders, lymphoma, leukaemia) at the Hôtel Dieu de France.- Heartbeat for surgical operations at Saint Georges Hospital in Beirut for Lebanese, Syrian and Iraqi children and newborn babies born with heart defects.- Assameh for contributing to the purchase of CT scanner for the Paediatric De-partment of the Karantina Hospital in Beirut, where diagnosis avoids the risk of disability for premature babies and hospitalised children suffering from conge-nital heart disease.- Mission de vie for the development of an anger room in which young offenders and trauma victims can neutralise their aggression with the help of music, televi-sion, painting and various games.- Les Enfants de la Méditerranée (L.E.M.) for a circus skills initiation programme aimed at children and young refugees from Syrian, who do not attend school, in 8 camps in the South of Lebanon.

Moreover, the Foundation awarded seven exceptional subsidies in 2017 to the following: • the association Un Maillot pour la Vie: although it was not selected in the 2017 call for projects, this association requested an exceptional subsidy from

64 65


EMERGENCY RELIEF – NATURAL DISASTERS

In times of crisis, the CMA CGM Group works in conjunction with governments and humanitarian organisations on a worldwide basis to provide aid to affected populations and meet their immediate basic needs. By offering their logistical expertise in transporting equipment and by collecting donations in kind (wa-ter, food, clothes), CMA CGM teams seek to improve the situations of extre-mely vulnerable people and have shown their willingness to help those with the greatest needs. Here are a few examples of actions taken in 2017: • In 2017, when cyclone Debbie hit the Coast of Northeast Australia, the Group transported 160 containers of supplies.• After hurricane Irma tore through the French West Indies, CMA CGM rallied to help victims and participate in the reconstruction effort. The group provided a vessel to transport 46 office containers needed in the construction of camp accommodation, several vehicles and food. Despite the difficult conditions, the CM ACGM vessels were the first to arrive at the island of Saint Martin. The Group also transported 400 tonnes of essential items such as drinking water, medi-cines, food and safety equipment.• To Puerto Rico, which was devastated by hurricane Maria, the Group trans-ported a container filled with water and ice for the refrigeration of food and medicines with a view to avoiding the potential spread of epidemics.

ACTION TAKEN WITHIN LOCAL COMMUNITIES For CMA CGM, local action may be a voluntary, one-off or recurrent initiative, carried out by a CMA CGM entity, involving CMA CGM employees, that has an environmental, social or societal theme and a directly impact on local communi-ties with which the Group or its subsidiaries are associated. This year, the Group is committed to more than 20 local community actions.The following map illustrates some of this years initiatives:

_

Launch of the Humanitarian Services Office

At the end of 2017, CMA CGM decided to launch the Humanitarian Services Office as a single entry point for international organi-sations and non-governmental organisations. This office allows the Group to offer “bespoke” solutions to organisations working in emergency situations and, in particular: • Provides them with direct access to CMA CGM’s services and global branch network• Centralises and rationalises their specific transport needs and requirements• Provides them with professional advice thanks to the Group’s experience and expertise in handling logistics issues• Offers them guidance on the shipping of humanitarian aid supplies through appropriate transport methods and reliable, end-to-end solutions and implementation methods at competitive prices• Helps them to maximise the effect of the aid they provide and to contribute to their mission to overcome humanitarian crises.Since the Humanitarian Services Office was launched, NGOs and international organisations have welcomed the initiative and worked with the office on a daily basis to devise appropriate solutions. In the last few months of 2017, the office arranged the humanitarian transport of around 10,600 twenty-foot equivalent containers. _

66 67


TABLE OF INDICATORS

68 69


GLOSSARY

CO2 Carbon dioxideCRM Customer Relationship ManagementECA Emissions Control AreaLNG Liquefied Natural GasMOU Memorandum of UnderstandingCSR Corporate Social ResponsabilityOAN Obligatory Annual NegotiationNOx Nitrogen OxideIMO International Maritime OrganisationNGO Non-Governmental OrganisationRIF French Flag RegisterRPS Psycho-Social RiskSIRH Human resources information systemSOx Sulphur OxideTEU Twenty foot Equivalent UnitsESU Economic and Social UnitVIE International Work VolunteeringPSC Port State Control BDN Bunker Delivery NotesIMS Integrated Management SystemILO International Labour Organisation MLC Maritime Labour Convention CSSF Container Ship Safety Forum BASCAP Business Actions to Stop Counterfeiting & PiracyISM International Safety MaritimeMACN Maritime Anti-Corruption Network CINS Cargo Incident Notification SystemCSSF Container Ship Safety ForumCINDEX Centre Inter-entreprises de l’Expatriation (Inter-Company Expatriation Centre)

GRI code

G4-9

G4-10

G4-LA9

G4-EC1

G4-LA6

G4-LA6

G4-LA6

G4-EN3

G4-EN15

G4-EN15

G4-EN15

G4-EN8

G4-EN15

G4-EN12

G4-EN23

Indicators

Employees

Breakdown by gender (%)

Number of hours of classroom training

Number of hours of distance training

Number of training hours

for international seagoing employees

Payroll - M USD

Fatal accidents

Frequency rate of workplace accidents

Frequency rate of workplace accidents

Energy consumption (ktonnes)

CO2 emissions (millions of tonnes)

NOx emissions (ktonnes)

SOx emissions (ktonnes)

Water consumption (m3)

Major pollution

Container loss

Waste (maritime)

m3/vessel/month

2016

32,500

61% Men

39% Women

49,158

45,507

Not available

1,243

1

1,63

29,5

5,883

18,4

500

279

5,784

0

7

10.5

2017

34,647

57% Men

43% Women

42,353

51,184

214,692

1,699

1

0.9

19.1

97,441

24.3

667

378

5,065

0

0

9.9

Scope

100% of the consolidated Group workforce

100% of the C&Me shore-based workforce - 81%

of the consolidated Group workforce

French shore-based employees and French seagoing

employees, (11% of the consolidated Group workforce)

Global shore-based employees, i.e. 81% of the

consolidated Group workforce

Seagoing employees with an employment

contract (fixed or indefinite term) with CMA

Ships Singapore PTE Ltd.

(12% of the consolidated Group workforce)

Scope of financial consolidation

Owned fleet and Terminals subject to the CMA CGM

HO SSE Terminals policy excluding the Lattakia,

Umm Qsar, Alterco, Manuco and Udemac

Terminals

Owned fleet

Terminals subject to the CMA CGM HO SSE

Terminals policy excluding the Lattakia, Umm

Qsar, Alterco, Manuco and Udemac Terminals


Terminals policy – In 2017, excluding Lattakia,

Dutch Harbor, Umm Qsar, Manuco, Alterco

and Udemac. Note, however, that electricity

consumption is not reported for the SAMR and

Dutch Harbor terminals

NB: in 2016, only 4 terminals were part of the

scope, i.e. GMG, GMM, Intramar SA &STS and

Marseille Manutention, excluding the Lattakia

Terminal

Owned fleet and chartered fleet




Terminals policy excluding the Lattakia Terminal

and Umm Qsar, Duch Harbor, TMG, Alterco,

Manuco and Udemac

Owned fleet

Owned fleet

Owned fleet

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This report is an excerpt of the 2017 RSE report of the CMA CGM Group, in compliance with Article 225 of the Grenelle II Act.

All information presented constitutes a methodology note, stating the scope and limitations. This report was verified by an independent

third-party organization.

caring for the future today · 2018-12-05 · cma cgm _ csr 2017 cma cgm _ csr 2017 the cma cgm...

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