2016 Corporate Social Responsibility Report - en. · PDF filegeneral fleet management...

2016 Corporate Social Responsibility Report

YOU DRIVE, WE CARE

Environnement Social SociétalEnvironmental Social Societal

FRAIKIN _ 2016 Corporate Social Responsibility Report2

2016 COPORATESOCIAL RESPONSIBILITY REPORT

FRAIKIN

Foreword Environmental responsibility

Social responsibility

Societal responsibility

3 Key figuresfrom the Group 4 Governance 5 Editorial from Pierre-Louis Colin, Chairman of the Board

6 Encouragingsustainable mobility

14 Promoting a people-centredcompany culture

20 Maintaining sustainable and balanced relationships with our stakeholders

The following individuals helped write the report: Julie Bastien, Nathalie Bétis, Sylvie Broussard Boitel, Rodolphe Caget, Philippe Cuoc, Guillem de Barnola, Olivier Dutrech, Jérôme Gautier, Nathalie Guerra, Danièle Gély, Darren Hall, Maria Holmes-Keeling, Célia Housset, Abdel Ilah Aït Kicha, Alban Lanceleur, David Madère, Aurélie Mérouze, Florient Myrope, Elisabeth Prigent-Olaussen, Steffen Rump, Noémie Satouf, Sandra Szkwarek, Philippe Verhague, Olivier Vincent Cuaz. Project coordinated by: Julie Bastien. Design and Production: MotàMeaux. Photographs: FRAIKIN, Flaticon, Franck Dunouau, Thinkstock, Rights reserved.

FRAIKIN has prepared this report in accordance with the body of laws based on the law regarding new economic regulations, the Grenelle 2 Law, and the Warsmann 4 Law. The social and environmental information as stipulated by article L. 225-102-1 paragraph 5 and article R. 225-105.1 and included in the management report only apply to FRAIKIN France and do not concern the Group’s foreign subsidiaries. This information has been certified by EY, which serves as the statutory auditor. FRAIKIN France does not have a corporate social responsibility department. The various social, societal, and environmental topics associated with CSR are overseen by all relevant departments.

METHODOLOGY

FRAIKIN _ 2016 Corporate Social Responsibility report 3

Our presence in 15 countries

and 2 continents

Saudi Arabia

Russia

Czech Republic

Slovakia

Hungary

ItalySwitzerland

LuxembourgNetherlands

Belgium

Poland

Spain

Germany

France

UnitedKingdom

180BRANCHES

including 128 with their own repair shops

7,000CLIENTS

IN 4 SECTORS

> Construction and environment>Transportation and logistics> Refrigeration> Specialised transportation

2,899EMPLOYEES

including 2,092in France

Per-country breakdownof vehicles in %

66 France

UnitedKingdom

Other countries

Spain

Poland

15

The FRAIKIN Group in 2016

96 4

60,000VEHICLES

under contract as of the end of December

2016

663MILLION EUROS

in worldwide turnover


OUR GOVERNANCE

Pierre-Louis COLINChairman of the Board

Alain-François PIALATDeputy Chief Executive

in charge of Communications and Human Ressources

Olivier FOSSIONInternational

Operations Director

Ludovic THOMMERETDeputy Chief Executive

in charge of Administration and Finances

Laurent PROUSTCEO of FRAIKIN France

Marti BATALLECEO of FRAIKIN Spain

Philippe CUOCGroup Purchasing Director

Artur NOWICKICEO of FRAIKIN Poland

Ed COWELLCEO of FRAIKIN United Kingdom

Foreword

“ AS A STAKEHOLDER IN THE TRANSPORTATION SECTOR, WE

HAVE SOCIAL AND ENVIRONMENTAL RESPONSIBILITIES THAT WE ARE

COMMITTED TO MEETING.”

PIERRE-LOUIS COLIN Chairman of the Board

FRAIKIN Group

EDITORIAL

FRAIKIN _ 2016 Corporate Social Responsibility Report 5

n 2017, 90% of goods were transported by road intra-nationally. Though transport is a major contributor to greenhouse gas

emissions, it remains a key factor of economic growth. As a result, responsible road transport has become a major issue. Given this context, logistics suppliers must manage their transport-related CO2 emissions, use “clean” fuel options, and opt for environmentally friendly solutions to become greener companies and reduce costs.As a rental company for heavy goods vehicles and passenger vehicles, we have social and environmental responsibilities that we are committed to meeting. With a constant eye to new technologies and mobility solutions, we help clients as they grow and change, both by recommending equipment and providing more general fleet management services. Between 2014 and 2016, we increased the share of Euro VI vehicles in our fleet from less than 10% to 33%. In doing so, we help our clients achieve their CSR goals.In addition, FRAIKIN also strives to be a positive force in society by providing internship programs and upskilling initiatives. Truck driver positions are some of the hardest to fill in the industry, and we provide our drivers with many more

hours of training than standard. Ten years ago, we created a Trade School and a Sales School to educate young students about the specificities of our business through work-study programmes.With respect to work safety, we are continuing to improve. We developed a safety policy and restructured our organisation at the end of 2015, finishing the 2016 fiscal year with significant revenue growth. We pay special attention to our employees’ health and working conditions.Final ly, we cannot pursue sustainable development without prioritising our company’s longevity. Our mission consists of providing companies and communit ies with the commercial and industrial vehicle fleet management solutions that best meet their needs. Because we have pursued this mission with passion for over 70 years, we have worked together to become the leading provider in the French market and help spread our model throughout Europe.

I


1Environment

and natural resources

Encouraging sustainable mobility–– The industrial rental business puts FRAIKIN at the very heart of concerns regarding air quality and climate change. In response, the Group adopts a two-prong approach by helping to improve the environmental performance of its clients’ fleets and reducing the impact of its own activities.

–– TRANSPORT SECTOR STAKEHOLDERThe transport sector, which accounts for 32% of energy consumption, 27% of greenhouse gas emissions, and 60% of nitrogen oxide emissions, is often stigmatised due to its environmental impact*. However, this same sector significantly boosts the economy by providing 18% of GDP and over 1.3 million jobs. The transport sector is also constantly releasing innovative technology to reduce fuel consumption and vehicle emissions. Due to the gradual tightening of European emissions standards, nitrogen oxide (NOx) and PM10 (fine particles) emissions have dropped by 92% between 2001 and 2014. Since 1 January 2014, the Euro VI standard has applied to heavy goods vehicles. This standard is especially stringent and requires an additional 80% reduction in the acceptable limits for nitrogen oxide, a 50% reduction for particulate matter emissions, and over 70% for hydrocarbons compared to the Euro V standard.

–– AN ACTIVE FLEET RENEWAL POLICYAs a stakeholder in the heavy goods vehicle market anda fleet manager, FRAIKIN takes its responsibilities seriously.That’s why we choose to renew our vehicles quickly. In 2016, over 1,000 vehicles in compliance with Euro V or an earlier version were replaced by vehicles that meet the Euro VI standard. The impact of the new European environmental standards is more apparent within the Group than the market average. At the end of 2016, over 20% of the FRAIKIN fleet met the Euro 6 standard or the Euro 6b (light vehicles) and Euro VI (heavy goods vehicles) standards. Vehicles dating from before the Euro V standard only represent 12.7% of the fleet. The 2017 Flexitime initiative made it possible to acquire 85 Euro IV refrigerated vehicles dedicated to short- and medium-term activity and to vehicle replacement services for long-standing customers.In addition, through its related rental and fleet analysis

Environmental Responsibility

Social Responsibility

Societal Responsibility

*Figures from the French Ministry of Ecology, Transport Board of Auditors and Key Energy Figures

PM (g/kWh)

NOx (g/kWh)

0.36

0.15

0.10

0.02

00 1 2 3 4 5 6 7 8

Euro I (1993)

Euro II (1996)

Euro III (2001)

Euro VI (2013)

Euro V (2009)

Euro IV (2006)


SAUDI ARABIA

0 2,000 4,000 6,000 8,000 10,000 12,000

EURO VI, EURO 6 AND EURO 6B VEHICLES IN FRAIKIN’S FLEET (GROUP)

Number of vehicles

Proportion of Euro VI vehicles in the country’s fleet

0 0%

11 18028%

FRANCE and SWITZERLAND

3,00556%

SPAIN

2,40927%

UK

BENELUX34%

288

RUSSIA 0 0%

CZECH REPUBLIC 61%

258

HUNGARY51%

91

SLOVAKIA7%29

POLAND65%

2,431

ITALY 15787%

GERMANY 11698%


services (FRAIKIN Business Solution), the FRAIKIN Group optimises the vehicle fleet currently in use. By adapting the number of vehicles to the client’s activity, the Groupcan reduce the number of vehicles on the road.

–– INNOVATING TO PROTECT THE CLIMATE AND IMPROVE AIR QUALITYSince 2015, the FRAIKIN Group has added an Innovation Division, FRAIKINLab, to its Engineering Department. This division conducts societal, regulatory, and technological surveillance over the medium- and long-term. FRAIKINLab has provided the Group’s clients with industrial mobility solutions that meet tomorrow’s requirements and allowed the company to offer assistance as they switch to greener business models. In 2016, our clients had many questions following the creation of restricted traffic areas in 20 French cities and the various debates surrounding sustainable mobility. FRAIKINLab, which monitors alternative engine types, tested different alternative vehicles, including natural gas engines in commercial vehicles, liquefied natural gas engines in long-haul tractors, and electric commercial vehicles, in order to evaluate their relevance and offer them (or not) to the Group’s clients.

–– PROMOTING MORE ENVIRONMENTALLY FRIENDLY SOLUTIONSThe FRAIKIN Group has always adopted a pragmatic approach to its industry and is constantly testing new solutions for natural gas vehicles, liquefied natural gas vehicles, hybrid and electric vehicles, and electric and hybrid refrigeration units. This insight helps our clients in a very concrete manner and doesn’t bias our decisions regarding which technologies we should promote. In terms of nuisance and environmental impact, the stakes are quite different for a city using refuse collection

vehicles, a major retailer that has to deliver its goods to supermarkets in the city centre at dawn, and a delivery service that drives back and forth throughout its region every day. As consultants, we make sure to provide a solution that meets our clients’ needs by only recommend-ing technologies that fall within the relevant scope of expertise. In 2012, FRAIKIN became the first company in France to offer a fleet of electric light commercial vehicles used for urban deliveries. We are expanding our natural gas engine offer, which represents an effective solution in terms of emissions and vehicle autonomy.

–– EXPERIMENTS THAT IMPROVE ENVIRONMENTAL IMPACTFRAIKIN is constantly experimenting with its heavy goods vehicles to help clients improve their environmental footprint. Since the end of 2013, we have been encouraging our clients to use green technology options, such as the TPMS (tyre pressure monitoring system). This automated pressure control system provides real-time alerts as soon as the pressure in a tyre isn’t normal. An under-inflated tyre increases fuel consumption. It can also rupture and will wear out more quickly. This system increases safety and is environmentally friendly. We also advise our clients to use fuel-saving options, including a speed regulator with topographical management capabilities. This smart speed regulator uses GPS to anticipate changes in the terrain and adjusts the speed of heavy goods vehicles as they climb and descend hills.

Because they are difficult to design and maintain, hydraulic vehicles require a specialised skill set.

BREAKDOWN OF FRAIKIN FRANCE REGISTRATIONS

FOCUS ON ALTERNATIVE ENERGIES

Traditional energies Alternative energies

Electric

Natural gas vehicle

Gas Hybrid

Diesel Hybrid

Bioethanol

0.5

99.5

8 5

1

57 29


–– REDUCING FUEL CONSUMPTIONFRAIKIN’s clients pay for the fuel their rented vehicles consume. However, the Group is committed to working with its clients to help them reduce their environmental impact with respect to fuel. As part of our fully client-centred quality assurance process, we offer pragmatic solutions that are tailored to the various contexts in which our clients operate. We offer long-term rentals for vehicles equipped with the most effective fuel-saving technology, including semi-automatic transmissions, Start and Stop systems, aerodynamic spoilers, etc.

–– CAREFUL MANAGEMENT OF REFRIGERATION VEHICLESThe refrigerated vehicle management policy is another aspect of the FRAIKIN Group’s environmental commitment. To this end, the company complies with European requirements designed to establish policies for enhancing temperature control, improving the quality and safety of products, and bolstering the performance of equipment in the cold chain. In order to do this, the FRAIKIN Group offers its customers a fleet of temperature-controlled vehicles with cooling equipment subject to specific regulations.

Refrigerants Refrigerants can affect the ozone layer and contribute to the greenhouse effect. Due to EU legislation regarding

the control of F-gases, refrigeration equipment containing at least 5 TEQ CO2 of refrigeration fluid must be checked annually to verify its watertightness. To carry out the testing, FRAIKIN uses certified leak detectors that are checked annually as well.51 FRAIKIN France branches have been approved by the regulatory authorities to carry out checking and maintenance operations on this type of installation. Nearly 150 technicians have been certified to perform these operations after completing a training programme. FRAIKIN Spain and FRAIKIN UK call on certified providers to check their equipment.All refrigerants are recovered and disposed of in accordance with industry standards. The refrigerants must always be tagged with an Industrial Waste Tracking Slip; as part of the company’s “Top Quality” initiatives, special attention is paid to this type of waste. An internal audit verifies the process every 18 months. Cemafroid also audits every ATP-certified testing centre every 36 months. The purpose of this audit is to validate the ATP processes and check cases handled during the previous financial year. This mandatory step concludes with a formal internal audit conducted by FRAIKIN and verified by Cemafroid every 18 months.

Integrated managementfor FRAIKIN Spain

S ince 2014, FRAIKIN Spain has had SGS audit and certify its integrated mana-

gement system. 12 of the 21 Spanish branches have obtained triple ISO 9001 certification (quality), ISO 14001 certifica-tion (environment), and OHSAS 18001 certification (health and safety at work). The Spanish subsidiary is a pioneer in cer-

tification within the Group. We strive to set the standard in the field of waste management. Paper, toner, and various other waste products are collected and recycled at all branches, which are also issued destruction certificates. Branches with workshops contract specialised waste disposal companies to collect and recycle the waste products produced through their activity, inclu-ding oil, oil filters, air filters, contaminated containers, etc. Within the scope of the certification, this recycling initiative handles 41 tonnes of waste.

All refrigerants are recovered and disposed of in accordance with industry standards.





Technical inspections of temperature-controlled machineryTemperature-controlled transportation machinery for perishable goods must receive a statement of technical compliance. 23 FRAIKIN branches carry out these inspections in accordance with the ATP standard in France. In Spain and the United Kingdom, inspections are expertly conducted by certified external workshops.

These operations involve atmospheric stability constraints. To comply with these requirements, we have invested ¤ 1 million since 2004 in insulation and atmospheric temperature management systems.

–– A DYNAMIC MAINTENANCE POLICYDrawing from its proven expertise in maintaining vehicles and equipment, FRAIKIN developed a

THE THREE LIVES OF FRAIKIN VEHICLES

Re-sale of pre-owned vehicles

SHORT and MEDIUMI term rentals last 18 months to 2 years

2 nd LIFEIi LONG TERMI rental last to 4 to 5 years on average

1st LIFEIi 3 rd LIFEIi

“THE FRAIKIN GROUP PLANS FOR THE SECOND LIFE OF THE VAST MAJORITY OF ITS FLEET AS SOON AS THE VEHICLES ARE PURCHASED BY ENSURING THEY CAN BE RENTED FOR SHORT- AND MEDIUM-TERM CONTRACTS. AFTER 7 TO 8 YEARS OF SERVICE, THE VEHICLES ARE SOLD ON THE PRE-OWNED VEHICLE MARKET (THIRD LIFE).”

FRAIKIN used its experience to develop preventative maintenance programmes that go above and beyond manufacturers’ recommendations.


preventative maintenance programme that goes above and beyond what manufacturers recommend.In addition, its tyre management practices show the company’s commitment to preserving natural resources. Regrooving and retreading techniques provide each heavy goods vehicle tyre between three to five lifespans when used normally. By employing a tyre monitoring and collection process and relying on the expertise of its technicians, FRAIKIN is one of the few rental services that can use this cost-saving and environmentally friendly measure. At the end of their life cycle, tyres are recovered as part of a used tyre recycling process.

–– IMPROVING THE ENVIRONMENTAL IMPACT OF OUR SITESResponsible waste managementFRAIKIN uses a sorted waste collection system based on local collection points for household and non-hazardous waste and meticulous tracking systems for dangerous industrial waste.

Dangerous industrial wasteAs a company that produces large quantities of diverse forms of dangerous industrial waste (DIW), FRAIKIN does everything in its power to make sure it processes its waste in accordance with regulations. FRAIKIN France revised the referencing for certified professionals in order to guarantee that the collection and destruction of waste materials could be traced. The documents certifying the destruction of the waste in accordance with regulations (Dangerous Waste Destruction Slip) are archived for 5 years in each FRAIKIN branch in France. These suppliers have created re-use and recycling programs for most of the listed waste materials. For example, lead is collected and re-used to make new batteries.In Spain, where FRAIKIN is ISO 14001 certified, we manage waste in partnership with authorised and certified local suppliers depending on the branch in question. The DIW from the Granollers branch is collected and managed by SIRCAT and CATOR.Because FRAIKIN is committed to pursuing its green policies, the company includes criteria that are more restrictive than current standards in its specifications for certain types of purchases. In doing so, we have standardised the use of eco-friendly, methanol-free wiper fluid even though the standard allows for the use of products containing up to 2.5% methanol. Similarly, 80% of the French network uses equipment from Safetykleen; this company de-greases machine parts and cleans paint guns.In addition, FRAIKIN does not always replace cooling liquid in accordance with manufacturer recommendations, which explains why it doesn’t produce a large amount of this type of waste.

The collection of used tyres and tyre recycling by Aliapur increasedby 12% between 2015and 2016.

12%INCREASE

AMOUNT OF WASTE COLLECTED in tonnes

Total Tonnage

1,079

387

351

67

33 Cooling liquids

17 Soiled packaging materials

3 Paint and putty

2 Aerosols

1 Refrigerants

22Used batteries

Oil filters

Hydrocarbon sludge

Waste oil (lubricants)

Mechanical maintenance operations

generate waste, which branches carefully

managein partnership with certified providers.





Non-hazardous industrial waste (NHIW)Since March 2016, the collection of non-hazardous waste (wood, metal, composites, household waste) in FRAIKIN branches in France has been conducted by 9 national suppliers This referencing makes it pos-sible to trace and calculate ordinary waste. The data will be available next year.

TyresAliapur collects and recycles used tyres that have reached the end of their life cycle. This major industry stakeholder neutralises the environmental risk that used tyres can pose when they are abandoned in the natural environment. Efforts to advertise tyre recycling through manufacturers or certified providers at FRAIKIN branches have been successful: 1,081 tonnes of frames and used tyres were collected in France in 2016 compared to 963 tonnes the previous year.

Managing emissions FRAIKIN takes measures to prevent, reduce, and offset air, water and soil emissions. The use of hydrocarbons and oils is directly related to maintaining and repairing

vehicles and must be carefully managed. Because FRAIKIN is fully aware of the risks caused by releasing these materials onto roads, each branch has hydrocarbon separating systems. To reduce exhaust emissions, FRAIKIN raises awareness among employees regarding the systematic use of the equipment available. To this end, the Infrastructure Department fully equips the branches with exhaust gas recovery equipment. Education regarding its uses in the workshops falls to regional technical advisers, branch managers, and workshop supervisors.

–– USING RESOURCES SUSTAINABLYFRAIKIN employees are aware of the environmentally-friendly design of the company’s facilities with respect to energy consumption in the workshops, water consumption in the wash areas, lighting, heating, etc. They take part in a local competitive effort, headed up by branch managers or workshop supervisors, that might take the form of a challenge based on actual and compared energy savings targets.

Water: a protected resourceIn 2016, out of a sample of 44 branches (one-third of the French network), water consumption equalled 16,000 m3. Washing using high-pressure cleaners and car wash rollers was responsible for 90% of this amount. Starting in the second half of 2015, FRAIKIN took measures to optimise its total water consumption. The data is still being analysed and will be ready in 2018, but the drop in water consumption is already

“ THE MEN AND WOMEN OF FRAIKIN ARE AWARE OF THE FACILITY’S ENVIRONMENTALLY

FRIENDLY DESIGN AND ADOPT GREEN BEHAVIOURS ON A DAILY BASIS.”

180GRAMS PER KILOMETRE

The emissionsproduced bycompany andtechnician vehiclesamounted to22,468 TEQ CO2, or 180 g of CO2 per km driven.

Preserving the environment and protecting employee health: FRAIKIN takes every possible measure to prevent, reduce, and offset air, water and soil emissions.


noticeable. Wash areas are especially targeted. Each new wash bar, whether newly built or replaced, is equipped with water-saving mechanisms, including infra-red detection taps, rainwater recovery systems, wash water recycling systems, etc. In addition, when exiting wash and service stations, all water potentially contaminated by sludge and hydrocarbons is treated in separators and sludge traps to help protect and preserve water.

Improving our understanding of energy consumptionStarting next year, FRAIKIN’s new gas and electricity contract with ENGIE will enable a bi-annual analysis of energy consumption. Branches with higher-than-normal consumption can use this site-by-site monitoring system to implement concrete energy-saving measures. The data from 2016 only applies to a sample of branches and the analysis is not comprehensive. Using the rule of three, the electricity consumption of French branches can be extrapolated out to equal 985 MWh.– Electricity: 758 MWh (measured at 100 of 130 sites)– Gas: 568 GWh (measured at 39 of 130 sites)– Fuel oil: 157 m3 (measured at 18 of 130 sites) FRAIKIN France has standardised small-scale energy-saving initiatives (e.g. automated lighting). The roll-out of motion sensors, primarily for recreational areas, is currently under way, together with outdoor LED lighting. Construction and renovation work over the past decade has improved the insulation of buildings. This process is a constant effort, and we now comply with France’s thermal regulation, RT 2012.By replacing the vehicle fleet with more energy-efficient technology, we have reduced our fuel purchases by nearly 10%. Diesel consumption amounted to 3.5 million litres in 2016.

Avoiding soil pollutionThe storage and use of hydrocarbon and solvent derivatives in branches represents a potential soil pollution risk. FRAIKIN takes this risk very seriously and has design offices conduct diagnostics and impact analyses. When necessary, these offices take compliance measurements. This analysis is conducted at 5 sites per year on average.

Facilitating our clients’ urban mobility

I n France, 20 regional communitieshave been approved to implement

restricted traffic areas to potentially reduce the access of the most polluting vehicles to all or a part of the region depending on air quality. Before they took effect, we actively helped to inform our clients by communicating with them starting in October about the new system and how it could impact the management of their fleet of vehicles. FRAIKIN branches brought the vehicles based in the Paris region and Grenoble (the first two regions to implement this rule) into compliance so these clients could follow the law and so their vehicles could operate in these areas.

Supporting the growth of urban public transport

I n response to urban sprawl and a growing demand for mobility solutions among residents, cities have been

updating their public transport offer to deliver higher quality service to a wider area. They are looking for operators that have a perfectly maintained fleet, optimal organisation, and competitive prices. It is within this context that FRAIKIN Poland offers a comprehensive service that includes the rental of city buses that meet the latest environmental standards and full technical support. 60 buses have been delivered to Warsaw. In order to reduce harmful emissions and noise levels, we are developing buses that run on natural gas.





Social and Human Resources

2

Promoting a people-centred company culture–– The FRAIKIN Group owes its success and status as the market leader to the men and women it employs. Its staff members are strongly committed to the company and work every day to develop their skills by adhering to a continuous training policy and by constantly sharing their knowledge with each other. We stay true to our values as we strive to prepare our company for the future by relying on everyone’s contributions.


–– PERSONNEL PRESENTATION AND ANALYSISTotal staffThe FRAIKIN Group employees nearly 2,900 people throughout Europe, including 2,092 in France, where the company began. The number of employees is still dropping in France, but is decreasing at a slower rate. These figures are due to a drop in the number of drivers and workshop staff. The number of employees at other positions has been relatively stable between 2015 and 2016. –– PERSONNEL RECRUITMENT AND TRANSFERSIn an effort to hire new personnel and strengthen the Group’s functions, 300 permanent contract employees were hired in France in 2016 through our administrative/support, sales, and technical departments. Manual workers represented over half of these hires and for the most part filled vacant positions. In addition, the expansion of head office teams led to the recruitment of new managers. At FRAIKIN, we make sure the

recruitment process is pleasant. It is a time for dialogue and exchange during which applicants are never judged, but evaluated based on their skills, qualities, experience, and potential. Each applicant is considered according to the principle of non-discrimination. To facilitate the recruitment process, especially with respect to mechanic positions, which are currently experiencing a shortage, any employee who recommends the company and therefore helps hire new employees will receive a staff referral bonus.

–– ENCOURAGING INTERNAL MOBILITYEach year we conduct annual performance reviews to assess our employees’ commitment, performance, and motivation so we can support them in their career development goals. Because we prioritise internal promotions and mobility, we always first advertise new career opportunities in-house. Since 2011, the FRAIKIN Group has been promoting a European mobility policy to help its employees expand their horizons..

–– THE IMPORTANT ROLE OF PROFESSIONAL TRAININGFRAIKIN works to ensure its employees are qualified and constantly improving their skills by placing special emphasis on professional training. While the number of training hours has slightly decreased, the company’s investment in training has remained stable. In 2016, it represented 1% of payroll (1.56% when accounting for salaries) in France. The training plan includes mandatory training (renewals of driving licenses or certifications for cranes, liftgates, refrigerants, electricity, etc.), on-boarding internships for new arrivals (sales and administrative employees), and training related to the implementation of new tools or procedures. Some training programmes are provided by external organisations, while others are overseen by the 6 internal training managers (four for driving, one for mechanics, and one for hydraulics). Other training initiatives are not a part of the formal training

315 LONG-TERM CONTRACTS

69TEMPORARY CONTRACTS

BREAKDOWN OF EMPLOYEES IN FRANCE BY POSITION (AS OF 31/12/2016)

BREAKDOWN OF EMPLOYEES IN FRANCE BY REGION (AS OF 31/12/2016)

West region

South-east region Head office

Île-de-France Nord region

29

33 24

14

Manual workers Drivers

Managers

Supervisors

Employees

7

542

24

22




RECRUITMENT

plan, for example, sessions for high potential employees at ESSEC, one of France’s top business schools. 14 staff members participated in this programme in its second year.

–– COMMITTED TO WORK-STUDY PROGRAMMESTo meet our needs in technical and sales skills, we decided to invest in young talent by providing these employees with support at the start of their professional careers. This policy is made possible by a network of partner schools throughout France. As of the start of the 2016 school year, FRAIKIN has nearly 60 young people working under work-study or professional development contracts in sales, administrative, and technical positions. Work-study programmes are a major resource for recruitment. Upon completion of their training and with diplomas in hand, if they have proven their motivation, commitment, and professionalism, these former students will be invited to join the Group on an open-ended employment contract. To ensure these projects work, we focus on several key success factors: recruiting, training content, FRAIKIN “trade” speakers, our choice of schools, and the leading and coaching of these young people on a daily basis.

Trade SchoolIn response to the difficulty it was experiencing in recruiting applicants who were correctly trained in the maintenance of heavy goods vehicles and their various components, FRAIKIN set up its own Trade School. The goal was to create its own talent pool of motivated and qualified technicians in an effort to offer young

graduates an open-ended contract as heavy vehicle mechanics at the end of their training. 24 work-study participants were recruited for the 2016/2018 class and joined the 17 young people already in training from the 2015/2017 class. Most of the students are working towards a vocational diploma in automobile maintenance and after-sales service. In order to ensure the tutors are able to properly follow up with the students, partnerships are signed by high schools that are close to FRAIKIN branches. In a show of FRAIKIN’s values of mutual aid and solidarity, the students receive transportation and housing assistance.

–– VALUING DIVERSITY AND ELIMINATING DISCRIMINATIONThe company ascribes to the principle of non-discrimination and performance manages any manager who discriminates against his or her personnel. This policy is included in the company bylaws.

Percentage of male and female employeesFRAIKIN France is mostly staffed by male employees. Almost all labourers and drivers are men, as the company only has 8 such female employees. Outside of these two categories, women represent 37.5% of staff. This percentage has been generally stable since 2014. However, the number of female managers is increasing and women now represent 28.7% of management staff.Generally, management endeavours to help pregnant women adapt their working day.Throughout the Group, the percentage of women staff members has slightly increased (27%). One reason is


CONTRACTS for work-study

programmes

Professional development

CONTRACTS

BREAKDOWN OF TRAINING HOURS BY FIELD

35,000 HOURS

of paid training time

20,175 HOURS

in the training plan

1,368

TRAINED EMPLOYEES

TRAINING

Enriching the professional knowledge of our employeesand listening to their career goals.

Technical

IT Administrative

Sales

Safety

Driving

5 9

9 41

25 11

that foreign subsidiaries have significantly fewer technical positions. Unlike French branches, these facilities do not have vehicle maintenance workshops.

Foreign workersRegarding foreign employees working in France (5.4% of total staff), monthly inspections and regular follow-up measures are carried out to verify that their residency permits are still valid. No foreign nationals (outside of the EU) are hired if they do not have a valid residency permit.

Workers with disabilitiesFRAIKIN France employs 51 people with disabilities. The company is also in contact with vocational rehabilitation centers (ESATs). It pays its dues in addition to its contribution to AGEFIPH (French organisation responsible for managing funds for the hiring of disabled workers). There is no agreement regarding disabilities, but the company intends to promote the hiring of disabled workers whenever possible.

–– THE WORK HEALTH AND SAFETY DEPARTMENT BECOMES OPERATIONALFRAIKIN is aware of the importance of health and safety at work and has organised its approach by setting up the Training, Health, and Safety Department in late 2015. The purpose of this department is to coordinate health and safety measures throughout the network and help standardise practices.This new department became fully operational in 2016 and is implementing FRAIKIN’s work health and


80/20 80% MEN AND20% WOMEN

at FRAIKIN France

AGE PYRAMID

A student’s take on the FRAIKIN Trade School “ I t was a great opportunity to complete my work-

study programme with FRAIKIN because its workshops see all kinds of vehicles, each of which has specialised equipment. Each case is different and sometimes complex. You really get exposed to every-thing. I’m in the second year of my heavy vehicle technician vocational degree, and ever since my pro-fessional qualification, I’ve done all my internships at

the Toulouse Camo branch. As a trainee, I receive a lot of support. As soon as I need help, my colleagues are there. I’m becoming more and more inde-pendent. Right now, I have my own task on the mechanics’ board. My first major job is to replace the cam belt on a heavy goods vehicle.” STEVEN SCHLAUDER, heavy vehicle mechanic in a vocational work-study programme.

Early adopter of collaborative tools S haring, collaborating, communicating, and

organising at a faster pace. FRAIKIN’s Spanish subsidiary decided to improve its opera-tional effectiveness and has made remarkable progress in developing its IT infrastructure by promoting a more collaborative environment. In doing so, it pioneered the use of Google Apps Business (G Suite) and its many cloud applica-tions within the FRAIKIN Group. This service includes a range of incre-dibly useful front-office tools and solutions for the sales teams, which are also equipped with tablets. Other countries have also adapted this collaborative suite. The head office and sales offices are equipped with the Hangouts videoconferencing solution, which makes it easier for teams to cooperate within the Group.

Age Range MENWOMEN

550 500 450 400 350 300 250 200 150 100 50 0 0 50 100 150 200 250 300 350 400 450 500 550

65 et +

60 – 64

55 – 59

45 – 54

35 – 44

25 – 34

18 – 24

- 18

1

4

41

99

128

108

10

0

7

23

196

517

434

382

85

0

taff as of 31/12/16





safety policy in France. Along with other measures, it has created and improved tools for monitoring accidents and conducting post-accident analyses.This centralised department also provides legal assistance for all branches in the network with respect to their interactions with the French health and safety inspection body, the French health insurance system, and occupational medicine. Rules regarding medical follow-up appointments were strengthened. Lastly, information is distributed among our representative bodies, namely to the coordinating body for the CHSCTs (Committees for Health, Safety and Working Conditions). In order to improve the use of personal protection equipment, more suitable equipment was purchased.

Towards a better understanding of accident researchDesigned to ensure the safety of employees and in accordance with our legal obligations, safety audits are organised at each site in order to detect any problematic situations and to implement corrective solutions as soon as a risky situation is observed. Accident analyses now use causal tree methodology.A health and safety procedural guide is available online to ensure qualitative accident tracking. This allows for

a more detailed analysis of accidents which in turn makes it possible to focus prevention and training efforts on the topics that recur the most often. The main goal of this approach is to reduce the frequency and seriousness of accidents. The 100% Safety policy launched in 2012 is now working towards a goal of zero accidents. The effectiveness of this action plan cannot be measured in a single year. With 159 work accidents during the year, including 112 involving time off work, the rate of accidents remains high. However, the frequency of these accidents (34.9) has dropped by 7.5% compared to 2015. This is the best result recorded since the implementation of the French National Organisational Safety System Risk Prevention Plan in 2012.

Increased communication for improved accident preventionThroughout the year, health stakeholders within the network have been educated about this topic. Safety is a topic of discussion at sector and shop supervisor meetings. A safety update is published every month. A growing number of branches are rolling out monthly safety discussions as well. A fun safety challenge was organised and supported with the creation of new posters reminding employees that they must wear personal protection equipment.

Technical training to promote safety

I n order to use a saw mould safely, workers must first fully understand how

it works. 22 employees who use this type of abrasive equipment were trained during the year, i.e. three to four people per workshop. Because this equipment is used very frequently, other users will be trained in 2017. Workshop technicians, supervisors, managers, and regional managers (a total of 89 people) were trained in using the gas systems used in welding and cutting operations. These training certifications serve as a guarantee of safety. Trainees earn a certificate at the end of the programme that is valid for three years.

10th anniversary for FRAIKIN in Poland

O n July 11, 2016, FRAIKIN celebrated its 10 years of presence in Poland. Employees and over 100

distinguished guests were welcomed to the magnificent Royal Baths Park (Łazienki Królewskie) in the heart of Warsaw. Artur Nowicki, general manager of FRAIKIN Polska, praised these “co-authors of FRAIKIN’s success on the Polish market” before presenting a commemorative statuette to

representatives of the partners with whom the company works on a daily basis, namely IVECO Polska, Mercedes–Benz Polska, Fiat Professional Polska, Igloocar, Carrier Transicold Polska, TT-Thermo King Polska, Bär Cargolift Polska, Dhollandia Poland, Goodyear Dunlop Tires Polska, Bridgestone Sales Polska, mLeasing, ING Lease, Millennium Leasing, Europejski Fundusz Leasingowy S. A., Raiffeisen-Leasing Polska S. A., Mercedes-Benz Leasing Polska, Gras Savoye Polska, Shell Polska, UNI-TRUCK, Diesel Truck, Mercedes-Benz Warszawa, and DBK Group.

Map of Group workforce

Mapping of FRAIKIN industrial accidents


202 PEOPLE

for a total of

1,792 HOURS

35 ACCIDENTS

with time off related to carrying heavy

loads and poor posture

17 ACCIDENTS

with time off related to related to

mechanical risk

SAFETYTRAINING

2/8 21% WOMEN 79% MEN

98% OPEN-ENDED CONTRACTS

2% TEMPORARY CONTRACTS

BREAKDOWN BY GENDER* BREAKDOWN BY WORK CONTRACT

BREAKDOWN BY POSITIONBREAKDOWN BY COUNTRY

Workshop

Drivers

Preparation technicians

Shippers

Administration

Sales

Management

Initialworkplace first-aider

Movementsand posture

Workplacefirst-aiderrecycling

France United Kingdom Spain Poland Belgium/Luxembourg Czech republic Germany Slovakia Saudi Arabia Italy Switzerland Russia Hungary FRAIKIN Supply Netherland

6 4 3

44

16

13,5

13,5

112INDUSTRIAL ACCIDENTS WITH TIME OFF

BREAKDOWN IN TRAINING HOURS

42

28

30

Technical training to promote safety

*RF: The traditional frequency rate of accidents with time off measures thenumber of accidents with time off per million hours worked for one year.**S: Seriousness measures the number of days off per thousand hours workedfor one year.

*Group excluding Greenfields

2015

40.29Rate of frequency (RF)*

Seriousness (S)**

34.9

2.10 1.62

2016




72

11

64

3Society and stakeholders


Maintaining balanced and sustainable relationships with our stakeholders

–– HELPING OUR CLIENTS DESIGN THEIR VEHICLESEach vehicle rented by FRAIKIN is the product of a considerable amount of expertise that combines solutions offered by a chassis/engine manufacturer, a coachbuilder, and equipment providers in order to create the waste collection vehicle, crane, or refrigerated semi-trailer with the necessary tonnage and engine type.

Over time, FRAIKIN has established partnerships with all major contributors in the sector. In order to meet the needs of its clients, the FRAIKIN Group collaborates with a wide variety of suppliers (manufacturers, coachbuilders, and equipment providers) along every step of the process, from writing the vehicles’ specifications to delivery of the final product. The technical design office manager and sales managers bring technical expertise and market

–– FRAIKIN takes a long-term approach to its business. To create value, the Group has established partnerships with manufacturers and contributed to the work of professional organisations to provide its industrial clients, distributors, transporters, and local communities with the best possible solutions. It supports the charitable causes in which its employees are involved.


In October 2016, FRAIKIN held its first Top Tech Challenge with support from Iveco, Fiat, and Carrier Transicold in an effort to highlight the expertise of its technicians through contests in the fields of mechanics, bodywork, and refrigeration.

Industrial vehicles are designed based on the particular specifications provided by the client.

35%The clientrecommendation indexreached 35% in 2016

The recommendation indexis the difference in percentage points between promoters (rating of 9 or 10) and detractors (rating of 0 to 6) out of all respondents,including neutral clients(rating of 7 or 8).

Mobile phones for life

“ P our la vie” collects funds for medical and scientific research related to Duchenne muscular dystrophy.

Since 2005, the organisation has funded its activities by recycling mobile phones. FRAIKIN participated in this initiative in 2016 by donating the old phones it had collected from employees. The money generated by recycling these devices helped young patients with Duchenne MD realise their dreams.

Tackling the Tour of Poland with Iveco

F RAIKIN and Iveco have a long history of working together both within the Group and in Poland, where the two

companies have established a strategic partnership. Iveco, an Italian chassis manufacturer, provides high-end vehicles that FRAIKIN can use to expand into the Polish market. This partnership goes far beyond just a sales relationship because Iveco provided logistical support during the Tour of Poland, the country’s main cycling event.




knowledge to the table to help customers pick from among its broad multi-brand, multi-function range of vehicles. They serve as consultants and help clients choose from an ever-growing array of electric and gas engines. FRAIKINLab monitors society, regulatory affairs, and technology over the medium- and long-term. As a result, FRAIKIN is able to provide its clients with industrial mobility solutions that comply with the requirements of tomorrow.

–– A CLIENT-FIRST APPROACHAt FRAIKIN, the attention we give to our clients is neither an attitude nor a policy. It’s a way of being that is lived out by all employees on a daily basis in every branch and workshop. The 100% client programme, which aims to improve client satisfaction, is the corporate version of this

philosophy. It is based on the “Accomplir” (Accomplish) programme, which was created in 2015. This is a continuous evaluation policy that analyses the recommendation index measured by spontaneous surveys. These questionnaires are administered after a branch provides a service to a client. The surveys also provide a clearer picture of their expectations and ensure clients receive services that meet their needs. The responses are analysed by representatives from the referring agency and lead to concrete actions designed to improve day-to-day service.

–– CONDUCTING OUR BUSINESS WITH INTEGRITYBecause FRAIKIN is aware that suppliers play a critical role in its economic development, the company works to maintain sustainable and balanced relationships with its partners. The Group takes social and environmental issues into consideration in its procurement policy. In France, only 10% of vehicle maintenance services are sub-contracted, but the Group enters into contracts with its suppliers and their potential sub-contractors to make sure they comply with the requirements of the International Labour Organisation with respect to undeclared work, and that they fulfil their legal obligations to social and fiscal administrations.

–– A COMMITTED STAKEHOLDER IN THE PROFESSION In the various countries where it is present, FRAIKIN is an active member in professional associations and contributes to their actions. In France, it is an active


Food bank partners

S ince 2010, the Barcelona Food Bank has been running a refrigerated

and frozen food distribution programme to bring highly nutritious food to those who need it most. To access some of its 60 centres, the Barcelona

Food Bank needed a smaller refrigerated truck. FRAIKIN took part in this public-interest initiative through a technical partnership. For 5 years, we will be providing maintenance, service, and any repairs for the new truck free of charge. The vehicle was purchased by the La Caixa Foundation. As a result, large amounts of food are transported from collection points to the centres where this aid is needed.

A safe driving pioneer

T o encourage drivers of its vehicles to adopt safer and

more responsible driving habits in Saudi Arabia, FRAIKIN created a challenge that awards the best drivers every quarter. A €250

prize is presented to every client’s best driver, whereas the poorest drivers might be banned from driving FRAIKIN vehicles if they are repeat offenders. This original initiative is already showing results. The number of accidents is down, damage has decreased (which means the fleet is being used more), and insurance premiums have dropped as well.


member of TLF, the Transport Companies and Logistique de France, or Transfigoroute, an association of t ransporters and refr igerat ion equ ipment manufacturers. The company also takes part in the work of Certibruit, an association that promotes night-time urban deliveries, and Cemafroid, an inspection body for temperature-controlled vehicles. FRAIKIN Spain, which is celebrating its 20th anniversary in 2017, has created strong partnerships with professional organisations within the country, such as AER (Spanish vehicle rental association). Members of this Group share information on the sector, the latest news, and the future of rentals in Spain. The subsidiary is also a member of AECOC, the powerful Spanish association of manufacturers and distributors, which includes 27,000 companies. It actively takes part in the efforts of GASNAM, a Spanish natural gas association that advocates for mobility, and the Autogas cluster, which promotes liquefied petroleum gas. FRAIKIN UK is a member of the FTA (Freight Transport Association), which represents the interests of transport companies as well as several organisations involved in work safety and risk prevention, such as ROPSA (Royal Society for the Prevention of Accidents), IIRSM (Institute of Risk and Safety Management), and IOSH (Institute of Occupational Health).

–– FRAIKIN SCHOOLS: A SPRINGBOARD FOR LOCAL EMPLOYMENT Created to lay the groundwork for the recruitment of personnel fully trained in their positions and relevant methodology in sales and technical fields, the work-study programmes sponsored by FRAIKIN are also a sign of its commitment to society. The goal of the Trade School (for technicians) and Sales School (for sales agents) is for students to learn a useful trade and

provide them with career opportunities. These two major initiatives create the framework for the company’s work-study programme. No other company in the industrial vehicle rental sector has similar internal schools. The Trade and Sales Schools help promote regional development and employment and are based on partnerships with schools located in a variety of areas near FRAIKIN’s branches in France.

–– GENEROSITY IN ACTIONWhether through donations to associations, participation in charity work, or sponsoring skills, in the many countries where FRAIKIN is present, its solidarity is on display. These actions of generosity are led by both the company, through the provision of equipment and services, and employees, who work together to support charitable initiatives.

Collecting donationsin red or pink

I n keeping with British tradition, the employees at FRAIKIN UK help collect donations for charitable

organisations. In conjunction with the human resources department, one person has volunteered to coordinate fundraising within the company. In 2016, we supported: – “Wear it Red” for the British Heart Foundation. Employees were encouraged to wear red.– “Wear it Pink” for Marie Curie. This time, employees wore pink, and even more money was collected through the sale of raffle tickets.Even though the fundraisers only collect a few hundred euros at a time, everyone participates, and the organisations really appreciate the effort.




YOU DRIVE, WE CARE

Immeuble West Plaza9 rue du Débarcadère92700 Colombes FRANCE WWW.FRAIKIN.COM

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