SUSTAINABLE DEVELOPMENT 4Act for People Local service providers present daily in the centers Same diligence with regard to non-recurring expenses On average in Europe, 90% of the Group’s operating budgets consist Klépierre has developed the ClubStore® charter in order to re-examine (1) of five major categories of services : fluids (energy and water); general and map the customer journey and create a commercial environment operations; cleaning; maintenance; and security and safety. animated by a spirit of hospitality. At the end of 2015, the Purchasing A majority of suppliers and service providers involved in cleaning, Department launched a call for tenders to identify the best providers security, and maintenance have their teams in the shopping centers matching this Clubstore® charter from a number of angles: rest area on a daily basis. These services account for more than 60% of the (furniture, lighting, etc.), signage, reception, directory terminals, operating budgets in Europe. This makes the monitoring and control bathroom facilities, children’s areas (games, stickers, etc.). mechanisms easier. Adding in the budgets for energy and water The chosen solutions meet the Group’s requirements in the following established on markets that are strictly regulated in Europe, Klépierre areas: takes into account that its major purchasing categories are highly > control: products that fully comply with regulations and standards controlled. governing facilities open to the general public (ERPs); 3 BREAKDOWN OF OPERATIONAL BUDGETS > warranty: products carry a two-year warranty for parts, labor and OF SHOPPING CENTERS AND IDENTIFICATION call-out; OF THE MAIN SERVICES PROVIDED > safety and security: providers “analyzed” in terms of their financial 10% health, compliance with labor law and their level of dependence; Other 24% > negotiation: prices encompassing all services: fees, intellectual Safety and security property, licenses, equipment, etc.; 19% > sustainable development: external monitoring of the performance Energy and water of the European suppliers; > maintenance: the whole life cost aspect is considered with 3% 13% warranty extension and maintenance. Waste disposal Cleaning Development of significant additional revenue 9% 22% Since 2015, the Purchasing Department has helped the countries General operations Maintenance with their advertising contracts. Following Sweden, Italy, France and now Spain, the operating scope has risen from 300 to 600 digital advertising displays in 52 shopping centers in Europe. The teams on site are in charge of controlling and auditing the quality of the services provided. The procedures implemented at Group Selection and approval of service providers level are used to standardize these controls based on economic, environmental and social criteria. The approval of suppliers and providers (sourcing, assessment, and In 2016, a social and environmental performance analysis of the contracting) is standardized. The economic partners are selected Group's main suppliers was carried out. This study assessed around through an objective and fair tender process. The contracts signed 40 suppliers of varying sizes on the following criteria: environment, are not automatically renewed. The selection of accredited providers social, business ethics, and responsible purchasing. The average score incorporates increasingly more stringent sustainable development of Klépierre suppliers was 5.4 points higher than the average from a criteria, such as the implementation of machinery and systems that benchmark panel of 15,000 suppliers on the platform of the study are efficient in their consumption of electricity, water, supplies, or provider. other consumables, or raising awareness among employees about the influence of their behavior on the environment. These criteria In 2017, Klépierre worked on monitoring the performance of its have different weightings depending on the kind of service provided. European suppliers in accordance with its new CSR approach, in order Accreditation of providers has been strengthened in the main to engage its suppliers and subcontractors in a shared responsibility countries concerned and is gradually being centralized. Using fewer approach. providers makes it easier to carry out on-site controls. A special effort was in particular made in 2014 with regard to Christmas decorations. The selection of three providers in France, Spain and Portugal offers multiple economic (down 12% in costs), environmental (more than one million LED bulbs) and security (easier control of installations) advantages. (1) Based on the average of 2016 planned operational budgets for Group centers in 10 countries. Excludes marketing budgets, taxes, management fees. 204 KLÉPIERRE 2017 REGISTRATION DOCUMENT