DECATHLON's 2024 annual report

According to the World Meteorological Organisation’s “State of the Climate 2024” report4, the global mean surface air
temperature exceeded that of the period 1850-1900 by 1.55 °C (with an uncertainty margin of ±0.13 °C).
As a major actor in the sports industry, DECATHLON is committed to reducing its absolute CO2 emissions by 20% by 2026, based on 2021 levels.

To achieve this, the company is focusing on four main levers of action:
1. Decarbonise the company’s footprint (main reduction lever)
2. Optimise the offer and design long-lasting products
3. Scale up circular business models (to create economic value with a very low carbon impact)
4. Impact its ecosystem through influence and advocacy

- Reduction of the company’s absolute emissions while increasing its sales.

- Update of the climate risk analysis and assessment of the current and future risks (2030 and 2050) of 3,184 physical assets.

- Acceleration of the deployment of renewable energy in production and pursuit of the commitment to eliminate coal use by Rank 1 suppliers by 2025 and by Rank 2 suppliers by 2030. In 2024, 17 Rank 1 suppliers (vs. 23 in
2023) and 11 Rank 2 suppliers (vs. 14 in 2023) still use coal.

- Earning of an A on the 2024 Carbon Disclosure Project climate questionnaire, acknowledging DECATHLON’s efforts in the fight against climate change.

True to its heritage, DECATHLON puts people at the heart of its project and positions itself as a modern company centred on its employees, with each person contributing to the operational excellence, the fullfilment and development of all.

In this way, the Group ensures it offers its teammates a safe and fulfilling work environment consistent with its human values of vitality, generosity, responsibility and authenticity. DECATHLON aspires to be a responsible and inclusive company that
values each individual’s contribution and where everyone has an equal chance of success.

- Integration of the concepts of “inclusion” and “caring” into Decathlon’s eight human fundamentals, following workshops that brought together employees from various functions within the company.

- DECATHLON was awarded EDGE Empower® certification, an international recognition of the company’s continued commitment to promoting a diverse and equitable working environment.

- Publishing of a Human Rights Policy aligned with international standards, anchoring Decathlon’s actions over the last twenty years across its entire value chain.

- Conducting a wage gap analysis with Business for Social Responsibility (BSR): this work will allow for the sharing of action plan recommendations in 2025 in order to move closer to the goal of guaranteeing a living wage for 100% of retail employees by 2027.

- Continued efforts to ensure the health and safety of employees by focusing on a selection of priority topics: employee business travels, the handling and storage of lithium-ion batteries, and psychosocial risks.

As a partner of the Paris 2024 Olympic Games, DECATHLON has also put in place specific advanced protocols for teammates engaged in missions related to this major event.

- Extension of the employee share ownership scheme to Estonia, bringing its global rollout to 51 countries.

In line with its values of vitality, generosity, responsibility and authenticity, DECATHLON promotes sustainable development in all its activities as it carries out its purpose to “Move People Through the Wonders of Sport”.

The company commits to respect the Universal Declaration of Human Rights, the Declaration on Fundamental Principles and Rights at Work of the International Labour Organisation (ILO), the United Nations Guiding Principles on Business and Human Rights, and the Organisation for Economic Co-operation and Development (OECD) principles for responsible business conduct and local legislation.

To monitor their application, DECATHLON incorporates these principles in its Human Rights Policy and Supplier Code of Conduct. This Supplier Code of Conduct puts procedures in place to verify these requirements in production.

- Conducting an in-depth study on the most salient human rights with the advisory firm Human Level.

In addition to improving the identification of priority human rights along the company’s entire value chain, this study also helped consolidate three major areas of intervention in production: combating forced labour, social dialogue and promoting a “living wage”.

- Toughening requirements for suppliers by removing from the list of suppliers rated A, B or C all production sites whose internal social audit is more than three months overdue with respect to the scheduled internal social audit (one year under the previous methodology).

- Rollout of the “Worker Voice” project aimed at measuring the level of satisfaction and well-being in production, with the participation of 91,000 workers at 122 sites across 13 countries (vs. 62,000 in 2023).

- Structuring and implementation of a protocol to address, prioritize, and manage identified alerts regarding forced labour at suppliers’ sites. At the same time, DECATHLON is deploying a remediation plan covering recruitment fees charged to workers, harassment, and living conditions, following three specific audits conducted in India and Taiwan after reports were identified via the DiginexAPPRISE application.

- Measurement of wage gaps at 65 partner sites in 11 countries and in-house training of concerned team members on managing a living wages and reducing wage gaps.