SUSTAINABLE DEVELOPMENT Act for People 4 Responsible practices Service providers holding a certification are preferred. Klépierre In order to help buyers in their day-to-day work, market leading tools believes that this ensures the implementation of more responsible were put in place to monitor and anticipate external partners. practices. Across Europe, 81% of the Group's key providers and suppliers have at least one certification, primarily ISO 9001 or 14001. The Group’s social and environmental commitments were The 80% target has thus been achieved since 2014. Klépierre now progressively incorporated into the contracts signed with suppliers wants to at least keep this level of certification. and service providers and in particular include the following items: In addition, the economic dependency rate of Klépierre service > economics: financial position, proportion of revenue achieved with providers does not exceed 22% and CSR clauses are included in the Group (< 25%), business ethics, etc.; all tender documentation. They require service providers to “raise awareness among their workforce regarding the environmental impact > environment: use of environmentally-sound products and of their behavior” as well as “employ machinery and systems that are materials, energy efficiency, waste management, establishment of efficient in their consumption of electricity, water, supplies or other innovative processes, etc.; consumables”. > social: measures against undeclared work, forced or child labor, A declaration regarding the combating of illegal work is also signed by working time and conditions, etc. all Klépierre service providers. It contains clauses forbidding all forms of undeclared work. 3 PROPORTION OF CERTIFIED KEY PROVIDERS 2017 current basis (98% coverage): 138 shopping centers and 5,027,646 sq.m Cleaning Security Maintenance Total Group coverage rate 2015 85% 78% 80% 82% 98% 2016 86% 75% 79% 80% 98% 2017 92% 76% 77% 81% 98% The main certifications are ISO 9001 (quality), ISO 14001 (environment) and OHSAS 18001 (occupational health and safety). On average, 15 hours per center were devoted to philanthropic “Supplier Day”, a seminar for a better understanding activities. An average of 17 sq.m per center was devoted to these of Europe in this event’s 2017 edition actions. Three years after creating the Purchasing Department, the Group With «Act for People,» one of the three pillars of its Act for Good® brought together its major providers with three objectives: policy, the Group wished to extend its philanthropic commitment and 1. Recognition: to review the implementation of common involve its employees. processes and risk management frameworks. Driven by local charitable activities and offered to 42% of 2. Ongoing improvement: “Work better together” (symbolic of the the teams, the Group has committed to giving 100% of employees the opportunity to take part in a charitable “live my life” role play organized at the centers), with the goal of activity by 2022. keeping the Group’s strategy aligned with that of its providers in order to play a part in the Group’s excellence and results. Among the actions already undertaken, for example, in France, the 3. Launch the proKure® purchasing platform: a comprehensive operation “Emballez vos samedis!” (“Wrap Up Your Saturdays”) was proposed to all employees at the Paris HQ and 65 of them voluntarily solution to manage supplier relations for business professionals wrapped the gifts of customers in the Île-de-France shopping centers (real estate managers, retailers), from contractual negotiations in aid of the CéKeduBonheur charity, which acts for the improvement to operational management of current expenses. of the daily lives of children in hospital. This totaled 264 hours of volunteer time. The Company supported this initiative by topping up Managed payment mechanisms the funds collected for the benefit of the Association. This initiative also allowed employees at the head office to engage in a shared The internal departments that select and approve suppliers and the experience with the teams. In addition, 72 kg of toys were collected departments that process payment are completely independent in France at the Paris head office in aid of the association Rejoué, from each other. This strict task allocation was reinforced with the which reconditions toys in a rehabilitation workshop for their sale or implementation of a new ERP tool. This tool, in place since 2008, is their gifting. operational across all regions. In Spain, actions are open to all employees. Firstly, once a month, volunteer employees distribute meals to disadvantaged families. 4.4.5 Philanthropy The meals are supplied by a food bank and, in 2017, 30 employees helped with the distribution. And, secondly, at Christmas, a luncheon As places for shopping, meeting, and leisure, shopping centers are was organized for children of disadvantaged families with gifts from the living areas. As such, they are naturally open to partners active in employees being handed out. 100% of employees helped with the local life, which may thus benefit from the high number of visitors at collection by either giving gifts or money to buy gift cards. Twenty the centers. The Group’s centers all over Europe host a wide range of employees attended the luncheon and helped hand out gifts to the events organized and supported by social organizations. 100 children present. 94% of centers have thus hosted one or more of these philanthropy initiatives. KLÉPIERRE 2017 REGISTRATION DOCUMENT 205