2. Corporate social responsibility policy 2.4 CSR governance The business excellence model implemented by GEODIS includes management principles and processes founded on several fundamentals: the Purpose, Vision and Values, the 7 Golden Rules and the 7 Leadership Principles (see section 1.3). The Golden Rule “Be a good citizen” is the basis for GEODIS’s approach to CSR, which includes the fight against climate change. This management approach is based on a clearly defined corporate strategy that embraces the entire organization. CSR is fully integrated into the corporate governance structure described in section 1.7. The challenges, risks, opportunities, main programs, performance indicators and objectives are an integral part of the five-year strategic plan (the Ambition 2027 plan, which has succeeded the Ambition 2023 plan), which is prepared, validated and monitored by the Management Board. The non-financial information is verified by the independent auditor, whose conclusions are reported to the Group’s shareholder after review with the Sustainability Department. The executive vice president of this department reports to the Chief Executive Officer and sits on the Management Board. This organization reflects GEODIS’s commitment to placing CSR performance at the heart of its strategy. The Sustainability Department ensures that the Group’s CSR policy is regularly updated to take account of stakeholder expectations and regulatory constraints. Accordingly, a materiality analysis was carried out in 2023 (see section 2.1.1) in order to update the Group’s priorities (see section 2.2). The Sustainability Department leads and coordinates Group-wide programs that address GEODIS’s main challenges. To this end, it works closely with all the lines of business, regions and functional departments that are responsible for the implementation of policies relating to environmental, social and ethical issues. The members of the Management Board are responsible for communicating and applying CSR policies throughout the Group’s lines of business, regions and functional departments, according to their areas of responsibility. There is an organization dedicated to CSR in each line of business and each region which coordinates the operational implementation of the Group’s policy and carries out specific actions in response to the challenges that are specific to it. Since 2022, the annual variable compensation of the members of the Management Board and that of the Group’s senior executives representing the Top Executives – i.e., 156 senior executives – has incorporated a CSR component of 25%, with an environmental component relating to the climate (9%) and two social components, gender diversity among Top Executives and employee engagement (8% each). These components relate to each executive’s area of responsibility. In terms of the climate component, the individual objectives relate to specific levers that can be activated by each person (energy efficiency of buildings, percentage of alternative vehicles, percentage of renewable energy, etc.). From 2023, the long-term variable compensation (LTI) plan with a three-year maturity also includes a non-financial component accounting for 30% of the total. It is based on criteria of greenhouse gas emissions for scopes 1, 2 and 3, in line with the Group’s Science Based Targets commitments, gender diversity among Top Executives and customer satisfaction measured by a Net Promoter Score. Each of these criteria counts for 10%. Non-financial criteria are also taken into account for projects involving changes in the Group’s scope. GEODIS attaches great importance to social and environmental issues during the due diligence phase. This helps to inform decisions and makes it possible to prepare action plans and priorities when projects turn into acquisitions. In 2023, the Group also focused on strengthening the use of extra-financial criteria in its investment decision-making process. As a result, the challenges of transition and adaptation to climate change, pollution, resource management, biodiversity, health and safety and the impact on local communities are now fully integrated into the decision-making process. 36 - 2023 ACTIVITY AND SUSTAINABILITY REPORT
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