Boulogne-Billancourt, July 2019

To our stakeholders

I am pleased to confirm that GROUPE CAT reaffirms its support of the ten principles of the United Nations Global Compact in the areas of human rights, labour, environment and anti-corruption.

In 2018, we have expanded our code of conduct and set a whistleblowing procedure to fight against all behavior that would deviate from our code of conduct and from the 10 principles of the United Nations Global Compact. We are working on harmonizing our human resources policy and have developed key performance indicators to follow and animate our social responsibility policy.

In this annual Communication On Progress (COP), we describe our actions to continuously improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders, using our primary channels of communication.

Best regards,

Walter Alejandro FORBES
Chief Executive Officer

In its Code of Conduct, Groupe CAT refers to the 10 Principle of the Global Compact, and specify explicitly the following ;
“Groupe CAT complies with all applicable legal rules in the countries in which it is based, as well as the countries in which it operates.
It counts on the responsibility of its employees, who must know or if not find out about abide the laws, regulations and obligations linked to their tasks and activities within the framework of their professional missions.

Groupe CAT prohibits the use of child labor and forced labor”

In Groupe CAT’s countries, Human Rights are respected by law and in case of any violation of Human Rights, severe measures are taken either via human resources or via the concerned country manager. So far no cases of human right violation has been reported.

Furthermore, human resources together with social representative make sure that social rules and human rights are respected.

Groupe CAT recruitment procedure ensure gender equity, senior employment and anti-discrimination in its recruitment process.
Please note that our activity is made mainly in Western Europe and there has been no cases of Human Rights violation raised.

Groupe CAT recruitment procedure ensure gender equity, senior employment and anti-discrimination in its recruitment process.
Our code of conduct declares to “respects the right of its employees to form or join a union or workers’ organization of their choice and to take part in group negotiations in the frame of effective regulations. It respects the role and the responsibilities of the social partners and undertakes to communicate and negotiate with them in accordance to the law" and,
"Groupe CAT undertakes to protect the health and physical integrity of its staff, ensure motivating working conditions and guarantees the safety of the facilities and goods by controlling its logistics chain. The integration of risks linked to health and safety is achieved in collaboration with the competent bodies and committees."

Groupe CAT Code of Conduct states that ; “Groupe CAT complies with all applicable legal rules in the countries in which it is based, as well as the countries in which it operates.
It counts on the responsibility of its employees, who must know or if not find out about abide the laws, regulations and obligations linked to their tasks and activities within the framework of their professional missions.”

We provide a health insurance policy for all employees. Furthermore, health and safety policy is being reviewed and will be deployed for the entire group.
Life & Accident insurance is deployed in most of Groupe CAT entities.

Each activity of the group has a risk analyses which is shared with employees in order to prevent accidents. For each position there are adapted personal safety equipment’s.

We publish reports concerning equity, age pyramid and health and safety figures that allows Groupe CAT to monitor and drive our targets in monthly committees. These data are consolidated on a group level since January 2019.

In 2018 “CAT Academy” has been launched. It is training program of 24 weeks that has been established in France and Portugal for new drivers, and which includes all safety aspects of the profession. It is planned to extend “CAT Academy” in Germany and Spain in the near future.

Moreover we provide ;
- Regular training for drivers and operational employees, on health and security
- Fire prevention training, first aid and rescue training regularly performed by employees.

In its code of Conduct, “Groupe CAT undertakes to continuously improve the management of its environmental impacts. It makes every effort to implement natural resources management, reduce greenhouse gas emissions and limit its ecological footprint.

It takes into consideration and respects cultural and community diversities. It participates in local economic development.”
Groupe CAT has a Quality Safety and environment Policy with targets reviewed every year, and KPI monitored quarterly.

Groupe CAT has been certified ISO 14001 since 2006, and was a pioneer of this certification in the outbound logistic field.

Groupe CAT CO2 footprint reduction is going through the following actions;
- Measurement and improvement of trucks filling rate with an improvement target of 2%
- Reduction of empty kilometers by 3%
- Tires retreatment
- Fuel consumption monitoring on a monthly basis and fleet renewal
- New LNG technology is being tested in Spain in Spring 2019
- ECO Driving Training for all our drivers with periodic reminder
- Electricity consumption reduction through Solar panel & LED installation on Groupe CAT compounds
- Water reduction through investment of car washing tunnel consuming less water and use of water recycling
- Euro Index improvement (target of 5,2 achieved in 2018 for subcontracted fleet and target of 5,5 achieved for own fleet)

Quality, heath and security policy of the group monitors environmental KPIs as described above.

Groupe CAT has implemented an environmental certification program of ISO 14001 since 2006 and has now most of its own sites certified.

In its code of conduct it is specify that;
“Groupe CAT does not allow any corruption or influence trafficking in any form whatsoever, in particular bribes or any other illegal payment, to civil servants, members of government or any other public agent, including any public or private entity of any kind. By agent and/or intermediary is meant any third party it may call on to negotiate a partnership, a public contract or any other business relationship.”

The different forms of corruption are described and defined such as “corruption”, “under the table”, “fraud”, “extortion”, “favoritism”, “embezzlement or misappropriation”, “collusion”, “influence trafficking”.

Groupe CAT has a whistleblowing procedure, in place since 2018, to allow the gathering of reports from employees or external individuals who have a connection with Groupe CAT, relating to the existence of behaviors or situations contrary to the code of conduct.

The whistleblowing procedure and code of conduct has been communicated to all employees of the group via human resources department and through a special internal newsletter dedicated to this subject.

A training on anti-corruption is being implemented in 2019 for all sensitives positions (Finance, Sales, Purchasing, Legal, Country Managers…)
A questionnaire for our partners is being deployed to understand their position and sensitiveness towards corruption.

Groupe CAT has missioned the Internal Audit Direction to monitor and evaluate anti-corruption within the group.
A follow up on the implementation of the 8 pillars of the French anticorruption law (Sapin2) is made every month in the Comex. It covers:

• Deployment of the Group Ethic Code
• Whistleblower mechanism
• Mapping of Corruption Risk
• Rules for Business partners’ corruption risks exposure appraisal
• Rules for accounting controls
• Rules for anti-corruption training for employees
• Disciplinary sanctions policy
• Appraisal and control of the anticorruption

A monthly specific follow up of the whistleblowing cases is made by the external company, in charge of gathering and evaluating ethic alert for Groupe CAT.
A specific Internal Audit on Groupe CAT anticorruption setup is integrating in the 2019 internal audit Plan.