4.4 CSR, monitoring of other information

In addition to the information provided for the risk analysis, the section below covers the social, environmental and societal information that the Group monitors as part of its CSR policy, and which may supplement the qualitative and quantitative strategic information previously disclosed.

4.4.1 SOCIAL INFORMATION

A.1 WORKFORCE

The sharp decline in the Group’s permanent workforce at 31 December as shown in the chart below is attributable to the health crisis, which hit the Group hard in 2020, especially Lagardère Travel Retail whose headount declined by 22%.

Workforce by division at 31 December 2020

Division Women Men Total 2019/2020 change
Lagardère Publishing 4,265 2,689 6,954 1 %
Lagardère Travel Retail 12,940 6,415 19,355 -22 %
Other Activities 575 651 1,226 -2 %
Group total 2020 17,780 9,755 27,535 -17 %

Items appearing in the Annual Financial Report are cross-referenced with the following symbol AFR 

(1) Permanent workforce numbers set out here correspond to the number of employees on permanent contracts who were actually in service on the last day of the year concerned. As employee turnover is high, particularly in Travel Retail, a consistent definition cannot be applied over time to determine the number of employees. This figure reflects some degree of uncertainty (less than 1%) despite the controls performed.

Permanent workforce by age group

Division Under 30 Age 31-40 Age 41-50 Age 51 and over Total
Lagardère Publishing 1,349 1,852 1,900 1,853 6,954
Lagardère Travel Retail 6,255 5,234 3,850 4,016 19,355
Other Activities 158 349 339 380 1,226
Group 7,762 7,435 6,089 6,249 27,535
Percentage 55 % 22 % 23 %  

A.2 SOCIAL DIALOGUE

Number of collective agreements in force

Indicator 2020 2019 2018
Number of collective agreements in force at 31 December 533 530 381
Number of collective agreements signed during the year 126 105 94

Percentage of the workforce covered by collective agreements, by type

Type of
Agreement		 Gender balance Hygiene,
safety,
working
conditions		 Inclusion of
employees with
a disability		 Employee
welfare
benefits		 Working hours Training Remuneration
Group total
2020		 48 % 51 % 37 % 58 % 75 % 43 % 68 %
Group total
2019		 50 % 60 % 42 % 64 % 80 % 49 % 78 %

A.3 ORGANISATION OF WORKING HOURS

Group entities have set up work organisation schemes that provide the flexibility to meet the specific requirements of their operations, with overtime hours, fixed-term contracts and temporary employment. This flexibility – which is required for the organisation of working time – does not, however, jeopardise the Lagardère group’s compliance with legal regulations specific to each country, particularly in terms of working hours and overtime.
Due to the nature of its press and live entertainment production activities, from time to time the Lagardère group calls on the services of specific employee categories, namely freelance journalists, entertainment workers, and other contract employees such as proofreaders and events staff.
Calculated on a full-time equivalent (FTE(1)) basis, the total number of non-permanent and temporary workers stood at 8.6% of the Lagardère group’s total FTE workforce in 2020, compared with 14.8% in 2019. 

Employees on fixed-term contracts(2) (Full-Time Equivalent basis)

Division 2020 2019
Lagardère Publishing 261 451
Lagardère Travel Retail 1,406 2,563
Other Activities 77 70
Group 1,744 3,084

(1) The FTE figure is obtained by adding together all the employees who worked for the Group over the course of the year, based on their standard working hours and the hours they actually worked over the twelve months concerned. For example, an employee who works half a week for six months of the calendar year is counted as 0.25 FTE (0.50 x 0.50). This measure is particularly relevant for analysing the non-permanent workforce, given that reporting a figure as at 31 December would not reflect the actual situation for this occupational group.
(2) Non-permanent employees = employees on fixed-term contracts.

Contract employees(1) (Full-Time Equivalent basis)

Division 2020 2019
Lagardère Publishing 54 73
Lagardère Travel Retail 0 58
Other Activities 943 336
Group 997 467

Number of temporary hours(2) worked during the year on a Full-Time Equivalent basis

Division 2020 2019
Lagardère Publishing 381 639
Lagardère Travel Retail 139 365
Other Activities 3 6
Group 523 1,010

4.4.2 SOCIETAL INFORMATION

A.1 STRATEGY

In keeping with its business lines, the Group’s approach to corporate citizenship and social involvement in the fields of culture and education is mainly expressed through the Jean-Luc Lagardère Foundation, which was created in 1989 under the auspices of the Fondation de France.
The Foundation was set up to implement Lagardère’s commitment to culture, community and youth. In view of its mission, the Foundation also promotes social patronage in sports, and works in various other fields such as medicine and science – especially in research and through actions at the level of universities and business schools.
The Foundation develops a number of programmes to promote cultural diversity, encourage creation and promote access to education and culture for all. The Lagardère group is also keen for its Foundation to encourage its employees to get involved in their community.
The Lagardère group has demonstrated a long-standing responsibility to the community and to society at large through its range of brands. As a creator of social ties and fully aware of society’s expectations, the Group strives, through various partnership or sponsorship operations conducted directly by its operating entities, to make its philanthropic strategy consistent with the following pillars:

  • culture, education, accessibility of content, freedom of expression;
  • the fight against hunger and food waste;
  • health and medical research;
  • social inclusion through sport.

The programmes developed by the Foundation and implemented at business divisions therefore address numerous UN Sustainable Development Goals, especially 1 to 5, 8 to 12 and 16.

A.2 DEPLOYMENT AND PERFORMANCE

JEAN-LUC LAGARDÈRE FOUNDATION

At the heart of the Lagardère group’s commitment to the creation of culture lies the prestigious awards presented by respected panels to talented young people under the age of 30 (or under 35 for certain categories) in the culture and media domains, in the following categories: Writer, Film Producer, Television Scriptwriter, Musician (modern music, jazz and classical music), Bookseller, Print Journalist, Photographer, Documentary Film-maker, Animated Film-maker and Digital Artist.
Since the inaugural Jean-Luc Lagardère Foundation Awards in 1990, 332 prize-winners (12 in 2020) have received a total of €6,910,000 including €255,000 awarded in 2020.
Subsequently the winners regularly participate in other programmes run by the Foundation, as illustrated by the examples below:

  • as part of its partnership with the French Academy in Rome, Villa Medici, two of the Foundation’s prize-winners were hosted for a one-month residency in 2020;
  • as part of the Foundation’s support for the Marathon des Mots festival, an annual event that honours hundreds of writers and artists from around the world, Marin Fouqué (the 2019 Writer’s Award winner) was given a digital residency at the end of which an audiovisual creation based on his novel, a sound poetry text set to images, and a piece of Hard Poetry (mixing sound poetry and electronic music of his own composition) were streamed on the Marathon des Mots social networks.

The Foundation also continued its efforts to promote literature and cultural diversity in 2020 by supporting literary events at the Institut du Monde Arabe (IMA). Entitled An hour with..., this event spotlights an Arabic or French language author every Saturday afternoon around a discussion of the Arab world and the latest in Arabic literature. Nevertheless, the health crisis and the two periods of lockdown limited the number of literary encounters to just 15 in 2020 out of the 25 initially scheduled (eleven encounters organised at the IMA and four digital encounters live on their Facebook page).
This event follows on from the collaboration that has united the Foundation and the IMA for many years in supporting the Arab Literature Prize. Created in 2013 by the Foundation and the IMA, and the only French award to recognise Arabic creative writing, the 2020 edition went to Sudanese writer Abdelaziz Baraka Sakin for his novel Les Jango (Éditions Zulma), translated from Arabic by Xavier Luffin. An honourable mention also went to Lebanese writer Dima Abdallah for her novel Mauvaises herbes (Éditions Sabine Wespieser).
The Foundation also very much honoured its commitment to promote access to culture for all in 2020, through several partnerships and support arrangements:

  • the Divertimento orchestra and its academy, which supports hundreds of young beginners (mainly from priority education zones), as well as professionals, as they discover the symphonic orchestra;
  • the seventh edition of the Jules Rimet award, which promotes sports fiction (2020 prize awarded to Jérôme Hallier for his book Briller pour les vivants, published by Flammarion), organises writing workshops led by writers to get young footballers involved in reading and writing, and help boost their performance at school. In 2020, these workshops were organised with young Olympique de Marseille footballers and the Olympique Lyonnais women’s U15 team;
  • Studio 13/16 at the Centre Pompidou, a venue blending life and art, exclusively for teenagers aged 13 to 16. Open since September 2010, Studio 13/16 has already welcomed nearly 80,000 young people and shown the work of more than a hundred artists and collectives. During the months of closure due to the health crisis, Studio 13/16 remained extremely active by developing creative workshops “beyond the walls” with child welfare homes;
  • Lire pour en sortir, a not-for-profit that runs integration initiatives through reading in prison. In 2020, during the first period of lockdown, it launched a writing contest for detainees on the theme “The epidemic is over, imagine the world of tomorrow”. The panel, chaired by Leïla Slimani, awarded prizes to three powerful texts. This year, Lire pour en sortir also developed a programme to bring together detained parents and their children around a book as a means of fighting the dislocation of bonds between parents and children;
  • the Abbaye aux Dames, la Cité Musicale, and more specifically the Jeune Orchestre de l’Abbaye (JOA), which encourages the professional integration of young musicians at the end of their studies and at the dawn of their career. The JOA is a comprehensive programme combining instrumental training, research and stage experience. Each year sees the organisation of several symphonic workshops led by internationally renowned conductors.

The Foundation continued its partnership in 2020 with Sciences Po, which offers adaptable educational programmes for high-level athletes, providing access to top-quality academic training that is suited to the demands of practising sport at a very high level. With no athletic competitions coming up on their agenda due to the Covid- 19 crisis, 2020 allowed the athletes in the programme to devote more time to their education and prepare for their future career transition. The five athletes of the 2019-2020 class accordingly sat the Sciences Po Master’s entrance exam and were all admitted.
Since 2007, 159 students have participated in this programme. In terms of employee commitment, since 2014 the Jean-Luc Lagardère Foundation has presented up to three annual solidarity awards (€10,000 each) to community projects sponsored by Lagardère group employees. Two awards were handed out in 2020: one for Kannjawou, an association housing a sailing library, whose purpose is to fight inequalities in access to culture, is to deliver a portable digital library designed by Bibliothèques Sans Frontières (Libraries Without Borders) to the poor and isolated area of Sine Saloum in Senegal; and one for Mécénat Chirurgie Cardiaque, which will be able to fund the care of Ivorian children suffering from serious heart malformations in their country of origin as they await an operation in France, once borders reopen.

WITHIN THE SUBSIDIARIES
The Group’s various entities and divisions continued to engage in various worthy causes over the course of 2020, in all the areas mentioned above and more, and despite the severe toll taken on their business by the crisis. Their support took the form of partnerships, charity events, prizes, competitions and donations. The examples below are not intended to be exhaustive and do not therefore represent the full range of actions undertaken by all Group operating entities and countries.
Hachette Livre’s Charitable Action Committee offers funding to organisations supported by employees and focused on the following themes: assisting disadvantaged people and those in distress, integration, inclusion, education, helping lonely or disabled people, combating illiteracy, environmental protection and rehabilitation, and more generally, all charitable or environmental causes. No meetings of the Charitable Action Committee were held in 2020 due to the health and economic situation.
In 2020, Hachette Book Group donated more than 90,000 new books to over 100 charities across the United States and Canada (the count includes items already highlighted in section 4.3.1.3). The US subsidiary took the opportunity to increase its focus on diversity in donated books, and to provide more than 58,000 books to a wide range of organisations that support diversity and whose work is aimed at helping at-risk minorities. Hachette Book Group’s partner organisations recognise that these donations help them promote the pleasures and benefits of reading quality books.
In the United Kingdom, Hachette UK was also active in donating books or making them available free of charge during this year of crisis. It set up a dedicated website allowing healthcare staff to access digital books at no charge (nearly 20,000 books were downloaded), in addition to donating nearly 20,000 books to Book Aid International, and to charities and local communities experiencing difficulties in accessing literature during the period. Hachette UK has also made donations to support independent booksellers, as well as to various schools around the world to support teachers and students.
Lastly, in Spain, Anaya rounded out other gestures by providing students with literary works in digital form free of charge in order to reduce the difficulty of accessing them during the months of lockdown.
At Lagardère Travel Retail, the philanthropic commitment in 2020 revolved largely around food donations aimed at limiting food losses resulting from the health crisis. These items are discussed above in section 4.3.2.1, discussing the priority matters of resource preservation and the fight against wastage.
In the United States, Paradies Lagardère has decided to put eliminating hunger at the centre of its corporate citizenship drive. It supports the No Kid Hungry® campaign led by the Share Our Strength charity, working to eliminate hunger in the United States and beyond. As part of the Dine Out for No Kid Hungry® campaign that runs through September, Paradies Lagardère restaurants donate a portion of the price of every cup of coffee sold. It also runs a yearround effort to support the No Kid Hungry campaign by donating 25% of every children’s meal served in its airport restaurants, as well as inspiring initiatives aimed at alleviating hunger in the communities adjacent to airports in Canada. Paradies Lagardère airport terminal stores now support their customers in donating food for distribution to the local population through food banks.

CORPORATE FUNCTIONS OF THE LAGARDÈRE GROUP
In various fields ranging from health to the arts and even sports, the Lagardère group made donations of just over €2,000,000 in 2020. In line with its 2019 commitment to donate €10,000,000 to the American Hospital in Paris over five years, the Group handed over €2,000,000 in 2020.
The Group also made a number of smaller donations, including one to the Paris Opera.

(1) Contract employees alternate between periods worked and down time to meet the company’s specific requirement.
(2) The number of temporary hours worked includes the use of employees from temporary employment agencies. Temporary employees sign a contract under which they provide their services for a fixed period, which is invoiced to the entity. The individual is not registered in the entity’s payroll and is paid by the temporary employment agency.

4.4.3 ENVIRONMENTAL INFORMATION

A.1 ENERGY CONSUMPTION AND CO2 EMISSIONS (SCOPES 1 AND 2)

The consumption shown in the table below covers all the activities of the Lagardère group.
The data factor in the direct (Scope 1) and indirect (Scope 2) energy consumption of all the offices, points of sale, stores, warehouses, server rooms, radio broadcasting sites, venues and sports academies used for all the Group’s activities in all the regions indicated above.
For Lagardère Travel Retail, there is some uncertainty over the exact amount of consumption. The division operates more than 4,800 points of sale worldwide and does not always have access to energy bills detailing the consumption of each point of sale, as energy costs are often included in the charges paid to licensors (airport/ station owners). As a result, operating staff responsible for reporting consumption data for the store network operated in each region are sometimes required to make estimates using average kWh/m2/ month data based on the surface area and type of point of sale.

Group tertiary energy consumption, worldwide (in GWh)

Division Year Scope 1 Scope 2 Total
Lagardère Publishing 2020 35.1 31.4 66.5
2019 37.6 33.7 71.3
Lagardère Travel Retail 2020 9.4 151.7 161.1
2019 12.9 202.6 215.5
Other Activities 2020 5.2 11.4 16.6
2019 6.7 16.7 23.4
Total 2020 49.7 194.5 244.2
2019 57.2 253.0 310.2

Group GHG emissions, worldwide (in tCO2 eq)

Division Year Scope 1 Scope 2 Total
Lagardère Publishing 2020 7,788 9,235 17,023
2019 8,395 9 332 17,727
Lagardère Travel Retail 2020 2,013 70,252 72,265
2019 2,784 92,973 95,757
Other Activities 2020 1,131 1,159 2,290
2019 1,456 2,666 4,122
Total 2020 10,932 80,646 91,578
2019 12,635 104,971 117,606

The sharp drop in consumption and emissions in 2020, particularly at Lagardère Travel Retail, was attributable primarily to the health crisis, which hit the business hard, prompting the closure of many stores in the various countries where the Group operates. In general, the changes in reported energy consumption and greenhouse gas emissions, depending on the division and type of energy, reflect:

  • changes in organisational structure, with new entities and/or new buildings entering the environmental reporting scope;
  • a better understanding within an entity of the various sources of energy consumption;
  • internal organisational changes (often due to refurbishment or renovation works) that may be temporary or permanent, and lead to increases or decreases in energy consumption;
  • a change in the emissions factors used to convert energy into CO2.

A.2 WATER CONSUMPTION

Lagardère Publishing is very aware that paper production uses large amounts of water. As such, it carefully monitors how its paper suppliers and printers optimise water consumption and the release of clean water back into the environment.
Several initiatives (closed loop recycling, isolation transformers) have been taken by the main paper suppliers, resulting in marked progress over the past ten years. The total amount of water used in the paper manufacturing process has been substantially reduced, now standing at nearly half the amount recorded around 15 years ago. By continuously improving their paper manufacturing processes, paper suppliers also recycle most of their wastewater and release clean water back into their natural environment.
Printers have also taken an active approach to limiting water consumption and use all the advanced technology available to them (especially in closed loop rinse water systems) to reduce their consumption and release clean water back into the environment.
To maintain transparency, the Lagardère group monitors its tertiary water consumption along with that of certain partners. This refers to the amount of water used at all types of physical sites where employees from the different divisions work (offices, warehouses, retail stores, sports training academies etc.). The table below shows the amount of water used at each subsidiary worldwide in 2020.
In the same way as for energy, the sharp reduction in water consumption in 2020 was a logical outcome of the crisis.

Group water consumption (cu.m.)

Division Year Water (cu.m.)
Lagardère Publishing 2020 57,342
2019 80,204
Lagardère Travel Retail 2020 329,070
2019 424,337
Other Activities 2020 119,859
2019 116,369
Total 2020 506,271
2019 620,910