2013 CSR REPORT - SNCF

2013

CSR REPORT

SNCF.COM

2 – SNCF CORPORATE SOCIAL RESPONSIBILITY REPORT 2013

01 — CHALLENGES AND COMMITMENTS PAGE 10

02 — MEANS AND METHODS

PAGE 54

03 — EVALUATIONS AND INDICATORS PAGE 72

SNCF CORPORATE SOCIAL RESPONSIBILITY REPORT 2013 – 3

"2014, A YEAR OF TRANSITION"

GUILLAUME PEPY, CHAIRMAN OF SNCF

2013 was sadly marked by the accident at Brétigny-sur-Orge, which killed seven people and left many injured. Together with RFF, we immediately launched the "Vigirail" programme to speed up the replacement of certain switchgear, improve monitoring of these and so detect anomalies. The accident left its mark on our stakeholders. When consulted on key CSR issues, they considered safety to be a major challenge for our undertaking (cf. materiality test, page 67). The 2013 CSR Report is therefore structured around the major challenges as specified by our stakeholders. I would like to express our gratitude to them for having contributed to this process. Our corporate social responsibility centres on four challenges: enabling sustainable mobility for all, lightening the burden on the environment, taking our social responsibility policy forward and contributing to regional development. Overall, Vigeo considered the trend in CSR performance seen at SNCF in 2013 to be strong. In difficult economic circumstances, we notably chose to continue refurbishing the pool of service stations. Alongside this, we strengthened our policy on energy saving and drew up the policy for the circular economy. 2014 sees a year of preparation for the COP21 global summit (21st Conference of the Parties on Climate Change), which will be held in France in December 2015. As an international player in mobility, SNCF will provide organisational support for this major event and participants will travel on our trains. The COP21 will aim to put in place a binding and universal agreement on the fight against climate change. Before this, the environmental conference in October will highlight the role of transport in the energy transition and identify solutions to be implemented. The priorities for the company that are embodied by the Excellence 2020 project enter into these transitional dynamics. Customer satisfaction, provision of door-to-door mobility and low prices constitute essential factors in developing our activities and responding to the risk of excluding a growing portion of the population. Reducing our environmental impact is becoming increasingly important in managing the company. The target of a 20% reduction in our energy consumption by 2022 is central to the overall performance and also responds to the expectations of the transport organising authorities in terms of cutting energy dependence in the regions. The other priority is the implementation of the circular economy policy at Group level, which aims to capitalise on or reuse materials at the end of their useful life. In terms of social and societal issues, we emphasise quality of life at the workplace for our employees and the associated outcome of this, quality of work. At the same time, the Group also strives to maintain its support of the social and solidarity economy and, more broadly, its efforts to promote development and employment in the regions. The Group's commitment to these major challenges was affirmed in 2003 when SNCF joined the Global Compact. In 2013, SNCF is renewing its commitment to the ten principles of the Global Compact in order to help build a society that is more mobile, more environmentally friendly and has a greater sense of unity. GUIDE TO READING THE 2013 CSR REPORT:

Where the "Communication on Progress" logo appears in the 2013 CSR Report, it indicates that the section addresses at least one of the ten principles of the Global Compact. This is part of the commitment made by companies that sign the Global Compact to communicate their progress annually and share their best practice.

Information required in order to comply with the French Grenelle 2 environment law (Article 225) is indicated by "Art.225".

PROFILE AND ACTIVITIES


SNCF is a world leader in mobility for passengers, goods transport and logistics. At the end of 2013, the Group was present in 120 countries with turnover of €32.2 billion and a total workforce of 250 000.

1. LEGAL STRUCTURE

The SNCF Group consists of the EPIC (state-owned industrial and commercial enterprise) and its subsidiaries. The capital of the EPIC is wholly owned by the French state (via the Agence des Participations de l’État). The terms "SNCF Group", "the Group" and "SNCF" refer to the parent company SNCF EPIC and its consolidated subsidiaries. 2. CORPORATE GOVERNANCE

2.1. BOARD OF DIRECTORS The Board of Directors sets the general policy and determines the focus of the SNCF Group. It consists of 18 members: — Seven directors representing the French state — Five directors chosen for their personal skills and expertise (one representing passengers, one representing shippers, two local elected representatives and one transport expert) — Six members elected by Group employees, including one middle management representative A Council of State (Conseil d’État) decree lays down the parent company by-laws and sets the procedures for the appointment and election of Board members. Board members are appointed for a five-year term of office. A director may not exercise more than three consecutive terms of office. Directors receive no compensation for their activities. The Board of Directors has six committees: — Strategic Committee, responsible for reviewing the annual and long-term strategic and financial directions of the EPIC and the Group, as well as Group structure operations — Audit and Risk Committee, responsible for reviewing the annual and half-year financial statements, risk mapping and the annual internal audit work programme — Contracting Committee, consulted on projects involving government or private contracts, acquisitions, disposals, building exchanges, based on predetermined thresholds set by the Board — Passengers Committee, responsible for monitoring rail transport agreements between local authorities, public institutions and SNCF, and more generally overall passenger problems — Transport and Logistics Committee, responsible for reviewing the activity and strategies of the SNCF Geodis division — Committee for Socio-Economic Balance, responsible for informing the Board of the company’s strategy, in particular in relation to CSR

2.2. MANAGEMENT

The management team is made up of the following experts under Guillaume Pepy, Chairman of SNCF: Sophie BOISSARD Business Strategy & Development Sylvie CHARLES Fret SNCF (SNCF Geodis) Barbara DALIBARD SNCF Voyages

Mathias EMMERICH Finance, Purchasing and IT Jean-Pierre FARANDOU Keolis (SNCF Proximités) Pierre IZARD



SNCF Infra division Alain KRAKOVITCH Railway Service Quality and Safety Alain LE VERN Regions and Intercités (SNCF Proximités) Marie-Christine LOMBARD SNCF Geodis François NOGUÉ Cohesion & Human Resources Rachel PICARD Gares & Connexions division

Alain PICARD SNCF Geodis Patrick ROPERT Communications Bénédicte TILLOY Transilien (SNCF Proximités division) Stéphane VOLANT Company Secretary



3. ORGANISATION OF THE GROUP AND ACTIVITY

A state-owned group dedicated to transportation, SNCF draws on its foundations in French rail to offer an extended range of services, providing smooth door-to-door mobility for clients, travellers, transport and logistics operators and the regional and local governments acting as organising authorities. The Group activity is structured according to five divisions:

SNCF PROXIMITÉS SNCF VOYAGES GARES & CONNEXIONS

SNCF GEODIS SNCF INFRA

ACTIVITY

Public transport service for urban, suburban, regional and interregional passengers — TER (regional express transport by rail and road) — Transilien (rail transport for Greater Paris) — Intercités (standard medium- and long-distance trains) — Keolis (urban and intercity transport)

High speed rail transport — TGV — iDTGV — OUIGO — Eurostar — Thalys — TGV Lyria — Deutsche Bahn/SNCF partnership — NTV — TGV France Spain — TGV Italia — Westbahn

Long-distance road passenger transport — iDBUS

Multi-channel distribution — Voyages-sncf.com

Station management and development Multi-disciplinary operations – building and outfitting facilities — AREP — Parvis — A2C

Goods transport and logistics — Geodis (freight forwarding, logistics, road and groupage) — STVA (automotive logistics)

Rail and multi-modal freight (TFMM) — Fret SNCF — Standard freight companies/operators — Multi-modal freight companies/operators

Equipment management — Ermewa — Akiem

Management, operation, maintenance and engineering primarily for the rail infrastructure — Includes Sferis and Eurailscout (renovation and construction) — Includes Systra (projects and engineering)

Rail traffic Direction de la Circulation Ferroviaire (DCF)

CLIENTS AND CONTRACTS

Public service contracts for transport organising authorities State, regions, STIF in the Greater Paris area, départements, communities and groupings of communities

Business and personal travellers, both individuals and groups.

Rail companies, transport organising authorities, communities, urban transport and businesses

Businesses in every sector

Réseau Ferré de France (RFF), major construction and civil engineering companies that purchase engineering services

TURNOVER

€11.9 billion turnover 34.5% of SNCF turnover

€6.8 billion turnover 20% of SNCF turnover

€1.18 billion turnover 3.5% of SNCF turnover



KEY FIGURES IN 2013

10 m passengers every day

122.5 m passengers transported during the year

2 bn passengers use stations each year 3 029 passenger stations and stops in France

30 000 km of rail network maintained and monitored 24/7 15 500 trains circulating daily 1 300 major projects and 1 700 km of lines renewed



4. FINANCIAL DATA

(in € billion) 2013 2012 2011

Investment by SNCF 2.2 2.1 2.4

Free cash flow 0.46 0.25 0.26

Net debt 7.4 7.5 8.3

5. GEOGRAPHICAL PRESENCE

SNCF currently achieves 25% of its total business on the international market (including a notable contribution from Keolis in the UK and from Eurostar). At division level:

- 47% of Keolis turnover is achieved on the international market - SNCF Voyages achieves around 12% of its turnover on the international market (outside of Eurostar

International Ltd) - SNCF Geodis operates in 120 countries across 5 continents, with 47% of its turnover coming from outside of

France - 50% of Systra's turnover is achieved on the international market

Total business of SNCF outside of France

I: SNCF Infra P: SNCF Proximités V: SNCF Voyages G: SNCF Geodis GC: Gares & Connexions



6. SOCIAL DATA1

ART.225 2013 2012 2011 GROUP

Employment

I-1°-a) Total number of employees (situation on 31 December 2013)2 245 097 242 325 240 483 E K G A

I-1°-a) Total number of recruits (excluding temporary contracts)3 14 039 11 925 13 094 E K G A

I-1°-a) Total number of contracts terminated (excluding temporary

contracts)4

2 312 1 877 1 980 E K G A

Organisation of work

I-1°-b) Percentage of on-board employees5 26.6% 26.4% 26.3% E K G A

I-1°-b) Percentage of part-time employees6 9.6% 9.6% 9.5% E K G A

Pay

I-1°-a) Average monthly salary (in €)7 2 945 2 899 2 851 E K G A

I-1°-a) Change in average monthly salary 1.6% 1.7% E K G A

Legend:

"GROUP" column on the right of the tables: entities integrated in the 2013 consolidation, "E" for EPIC, "K" for the Keolis Group, "G" for the Geodis Group,

"A" for the other newly contributing integrated subsidiaries (NB: for these new subsidiaries, only the 2013 data is known; no historical data could be

compiled).

All the data presented covers France and the international area, except for the Geodis Group. For this Group, the social data other than the "total workforce

at the end of the financial year" is produced for France only and therefore does not include the lower tier subsidiaries of the Group abroad.

Unavailable data is indicated thus: "-".

1 Apart from for the total workforce, all social data for the Geodis Group is produced for France only.

2 This figure includes all employees of the Group (EPIC, Keolis and Geodis Groups and additional subsidiaries for 2013) in France and internationally:

— Subsidiaries: total workforce on 31/12 excluding trainees — EPIC: global workforce excluding trainees and excluding specific doctor workforce 3 France only for Keolis 2011-2012. The data for the EPIC includes transitions from temporary to permanent contracts.

4 Figure for France for Keolis 2011-2012.

5 The reference workforce is the actual workforce for the EPIC or the total workforce for the subsidiaries.

6 The reference workforce is the actual workforce for the EPIC or the FTE (full time equivalent) for the subsidiaries (except STVA: current workforce).

7 Estimated on the basis of payroll, reported as FTE (France only).



01— CHALLENGES AND COMMITMENTS


CHALLENGE 1 ENABLING SUSTAINABLE MOBILITY FOR ALL 1. COMMITMENT NO. 1: GUARANTEEING PASSENGER SAFETY 2. COMMITMENT NO. 2: IMPROVING CUSTOMER SATISFACTION 3. COMMITMENT NO. 3: DEVELOPING DOOR-TO-DOOR SOLUTIONS FOR PASSENGERS AND FREIGHT 4. COMMITMENT NO. 4: ENCOURAGING NEW LOW-IMPACT MOBILITY SOLUTIONS CHALLENGE 2 LIGHTENING THE BURDEN ON THE ENVIRONMENT 5. COMMITMENT NO. 5: MAINSTREAMING ENVIRONMENTALLY FRIENDLY MANAGEMENT 6. COMMITMENT NO. 6: SAVING ENERGY AND CUTTING GREENHOUSE GAS EMISSIONS 7. COMMITMENT NO. 7: DEVELOPING A CIRCULAR ECONOMY AND ADDRESSING EVERY FACET OF OUR IMPACT CHALLENGE 3 UPDATING OUR SOCIAL COMPACT 8. COMMITMENT NO. 8: FOSTERING DIVERSITY 9. COMMITMENT NO. 9: IMPROVING QUALITY OF LIFE IN THE WORKPLACE 10. COMMITMENT NO. 10: IMPROVING EMPLOYABILITY CHALLENGE 4 CONTRIBUTING TO REGIONAL DEVELOPMENT 11. COMMITMENT NO. 11: PROVIDING SUPPORT TO THOSE FACING DIFFICULTY 12. COMMITMENT NO. 12: CONTRIBUTING TO LOCAL ECONOMIES

12 13 15 18 20 22 23 25 30 36 37 41 45 48

49 51

CHALLENGE 1

ENABLING SUSTAINABLE MOBILITY FOR ALL


The bar of expectations is constantly rising higher for sustainable mobility. SNCF believes that developing an adapted offering will enable the company to help to structure this still unfocussed demand for alternative mobility options. This involves developing various modes of transport that complement the train in stations that are conceived as real exchange hubs, while enriching the range of services. The aim is to ensure safety across the board, enable and improve customer mobility – including for the most vulnerable – and offer transport that is a financially attractive alternative to a personal vehicle. This integrated offering should combine collective and low-impact modes of transport such as bicycles, car sharing, car pooling and urban public transport. Applying the same logic for freight will provide transport that is more environmentally friendly, with rolling roads and long trains, as well as the combination of rail, road and river where relevant. These new approaches involve uniting all the stakeholders in coordination with transport organisers in the regions. In this regard, SNCF works with its various components: passengers and freight, rail, road and engineering. Proposals have been made across all regions for systems and offerings to boost the popularity of these sustainable mobility solutions.

CHALLENGE 1



1. COMMITMENT 1: GUARANTEEING PASSENGER SAFETY Art.225-II-3°-d) Fairness of practices Measures taken for the benefit of consumer health and safety

1.1. GUARANTEEING SAFE TRANSPORT

— Policy Rail safety

Following the disaster at Brétigny, the Chairman reaffirmed the absolute value of safety for the Group. Immediately after the tragedy, the 5 000 parts similar to the one that had caused the derailment were checked. SNCF and RFF (Réseau Ferré de France) have launched the €410 million Vigirail programme for the period 2014-2017 to improve track monitoring and modernise maintenance of the rail network. Point renewal is to be accelerated in particular, with 500 pieces of equipment being changed each year rather than 300. Keolis is continuing to develop its rail activity in Germany, the Netherlands, the United Kingdom and the United States, with the primary objective of ensuring passenger safety. This is especially the case for the joint Keolis and SNCF venture Keolis Commuter Service (KCS), which will be mobilised in 2014 to take over operation of the suburban network in Boston. For urban guided transport (metro and tramway), Keolis guarantees that a high level of safety is maintained and best practice is transferred, in particular for projects involving new international lines. Gold Coast (Australia) or Hyderabad (India). Coach safety

Through the Keolife project which was launched in 2013, Keolis has decided to structure the organisation of safety and the reduction of accidents for all subsidiaries in France and internationally. Road traffic, especially in urban zones, demands continued efforts to raise awareness and improve vigilance. The fifth "100% vigilance" campaign intended for drivers is entitled "Safety is in our hands".

— Change in indicators

Art.225-II-3°-d) Number of accidents involving trains

(or other modes of transport) resulted in physical injury – E A

2013 2012 2011

22 14 7

2013 was in particular marked by the accident at Brétigny, in which four coaches of the Intercités train 3657 derailed. Seven passengers were killed and 32 were injured. The major causes of accidents – accidents at level crossings or linked to careless behaviour by customers – changed little in comparison to 2012. Part of the growth in the 2013 figure is due to other subsidiaries being taken into account (cf. methodology note) with a rate of three accidents.

— Implementation in 2013

Campaign to raise awareness of safety

In February 2013, RFF launched a campaign in partnership with SNCF to raise awareness of the dangers of crossing the tracks in stations, with the aim of reminding people of the basic rules and drawing attention to the safety messages that appear on site. In France, one in three stations has crossings on the tracks. Eurobahn granted its safety certificate

Eurobahn, a subsidiary of Keolis, obtained its safety certificate from the German Federal Railway Authority (EBA) for a period of five years by implementing a safety management system to meet the requirements of the European Directive. 1.2. MAKING SPACES FEEL SAFE

— Policy

In order to address the feeling of a lack of safety experienced by some passengers and to reduce risk, SNCF trains and deploys security officers and installs video surveillance in its spaces. SNCF also implements prevention policies with campaigns against antisocial behaviour, mediation on trains and in stations, and activities in schools in the most at-risk areas. In addition, since 1998 social mediation officers have been in continued dialogue with passengers on "sensitive" lines, providing information to local residents/businesses to forestall tensions, and ensuring that the rules for living in harmony with each other are upheld. The Group is also represented at the 51 Multiservice Information and Mediation Points (PIMMS). In 2013, SNCF guaranteed its ongoing commitment to the battle with antisocial behaviour. The incivility management unit was established in 2012 and sets the main directions in the approach to antisocial behaviour – from training to the proposal of regional benchmark days, and within the inter-company club for the prevention of antisocial behaviour. In order to reduce fare evasion, attacks and antisocial behaviour, Keolis continues to develop its policy of protecting persons and property on the network using the basis of prevention, mediation and dissuasion. This means that the company undertakes various types of social involvement such as through partnerships with internal security forces, implementation of local media campaigns to prevent fare evasion, and participation in the PIMMS.

CHALLENGE 1




Art.225-II-3°-d) Measures taken for the benefit of consumer health and safety

2013 2012 2011

Physical attacks on passengers and SNCF staff, thefts of passenger belongings – E A

11 658 10 800 10 580

Malicious acts damaging physical and financial assets – E A

33 384 39 340 38 470

Legal offences – E A

74 368 78 020 71 080

In 2013, a clear decrease (-15%) can be seen in malicious damage of property. By contrast, attacks on customers rose by 2%, largely due to an upsurge in violent theft. The number of thefts from customers continued its upward trend (+19% in 2013). Greater Paris felt a heavier impact from this phenomenon, where a pronounced rise in the theft of luggage (+138%) can be seen. This represents the top category for items stolen from customers. A general fall in antisocial behaviour (-4.7% in 2013) is also worthy of note.

— Implementation in 2013 Prevention of antisocial behaviour

The dedicated e-mail address for logging and reporting situations regarded by staff as cases of antisocial behaviour received more than 1 800 messages. Initial and ongoing training for customer-facing employees has been expanded to include a module on antisocial behaviour (more than 3 360 employees trained). A network of contact from various professions and areas of work was set up to share best practice and has over 70 members. Two "incivility laboratories" were created at Paris Nord and in Brittany to trial innovative measures prior to potential roll-out at national level. Many local prevention and awareness measures were also implemented across the regions (week of tranquillity communication, anti-smoking operations, poetry competitions, etc.). Anti-fare evasion campaign in Lyon

Keolis Lyon involves all its employees in the fight against fare evasion. As of 2013, all employees have been working alongside conductors on special days under the banner of "Fare evasion is everyone's business", which aim to ensure that ticket validation rules are respected with the help of volunteers from all company services. For example, the day held on 4 February 2013 on line B translated into an average increase of 2.2% in the rate of validation. In all, these operations reduced the rate of fare evasion by more than two points over the year, bringing it below the 10 point mark.

1.3. WORK IN SCHOOLS

— Policy

For the past two decades, SNCF has been conducting awareness campaigns aimed at young people, with a view to reducing the risk of accidents and encouraging civil behaviour on board trains. An agreement signed in 2006 with the Minister of National Education provides a framework for this initiative. Each year, 450 volunteer employees raise awareness among 230 000 schoolchildren about the different aspects of "good manners onboard" public transport. A survey conducted among teachers who had taken part in this initiative showed that 97% were satisfied with the campaign. Teachers can also continue the work with their students thanks to new teaching tools, which have been available free of charge since January 2014 at sncf.com/education. Keolis also carries out work in schools to raise awareness among young people and teach them how to use public transport correctly and about the benefits of doing so. In 2013, around 40 000 students were taught about these aspects by employees of Group subsidiaries as part of classroom visits or visits to depots.

— Implementation in 2013 "Respect: A Closer Look" educational competition

In partnership with ANACEJ (the French National Association of Children and Youth Boards), SNCF held the "Respect: A Closer Look" competition for the second time. This initiative invited schools and extracurricular structures to produce an awareness campaign on the topic of respect. Eight prizes were awarded by a jury made up of experts in education, transport and citizenship.

CHALLENGE 1



2. COMMITMENT 2: IMPROVING CUSTOMER SATISFACTION

2.1. IMPROVING PUNCTUALITY FOR COMMUTERS

— Policy

The sustained rise in train use and large amounts of renovation work on the infrastructure are making it more complicated to organise transport. With a 1% increase in customers on Transilien trains, passenger punctuality automatically falls by 0.2 points. Rail traffic in Greater Paris grew by 27% in 10 years (50% on some lines such as RER D). In order to deal with this growth and improve traffic flow, large-scale work is under way on the network. Innovations in operating methods and co-construction of solutions with customers have also been launched. The "high-volume" plan in densely populated areas means that usage in Greater Paris and large conurbations can be re-thought.

Keolis is improving its service levels by working, for example, on the service reliability, passenger information, modernisation of payment methods, etc. Good service execution across the board and the reliability of this are key elements of customer satisfaction. However, Keolis bases its business culture on a "customer-focussed culture" above all else. This means that all employees – and not just those who have contact with the public – adopt a passenger-focussed service attitude. Customers have never been as vocal as they are now in the age of social media and with the development of digital technologies. Listening to them, encouraging them to express themselves, going to meet them and giving them answers are all important aspects of increasing their satisfaction.

— Objective

To increase the level of customer satisfaction for commuter trains to the level for TGV between 2013 and 2020.


Art.225-I-3°-b) Difference in percentage points between

proportion of satisfied customers of TGV and of Transilien (excluding periods of disruption) – E

The customer satisfaction for TGV is stable. Transilien customers suffered a strong decrease in punctuality during the last weeks of 2013. Punctuality is the main component of satisfaction, which explains the drop in

satisfaction between 2012 and 2013, and the growing gap between the two populations. 2.2. PROMOTING ACCESSIBILITY OF FARES FOR SERVICES

— Policy

The impact that the financial crisis is having on spending power and local finances is being felt heavily. Eight million people are currently in a situation of fuel and transport poverty (more than 15% of their budget is spent on heating and fuel). The Chairman has set out the targets of simplifying prices, enabling comparisons and making train travel more financially accessible. SNCF Voyages is already using a voluntary policy of low prices, in particular thanks to Ouigo, iDTGV and Prem’s.

— Objective

To pursue this policy of accessibility for rail services.


Art.225-I-3°-a) Percentage of TGV tickets under €30 –

E

2013 2012 2011

15% - -

In 2013, SNCF Voyages increased the number of low-price tickets by 25% compared to 2012.

— Implementation in 2013 Railcards

One year after the launch of its new range of railcards, SNCF is painting a very positive picture. The Week-end card attracted more than 150 000 new holders in one year, of which 78% said they were satisfied with the service. The Jeune card, which replaces the 12-25 card, can be used for travel up to the age of 28. This extension of the age range has enabled more than 120 000 new holders aged 26 or 27 to continue to benefit from discounts of between 25% and 60% on all trains. The Jeune card also offers last-minute deals for exclusive tickets at low prices, accessible only on the Internet. Saturdays on TGV and Intercités

The Saturday pricing offer for a day return at Prem’s price has achieved sales of 70 000 returns for TGV and 18 000 returns for Intercités since the launch in June. 95% of customers who took advantage of this offer were satisfied, 99% intended to use it again and 89% said that it was inexpensive.

13,3 15

0

2011 2012 2013 Objectif 2020

CHALLENGE 1



Ouigo

SNCF launched its low-cost high speed travel option in April 2013 alongside the current offers. The aim is to compete with the road network and to attract a new clientele from outlying stations with a greater offering of accessible prices. Ouigo runs on the south-east line from the starting point of Marne-la-Vallée to serve Lyon Saint-Exupéry, Marseille Saint-Charles and Montpellier Saint-Roch, as well as Valence TGV, Avignon TGV, Aix-en-Provence TGV and Nîmes. The further in advance travellers purchase their tickets, the greater the choice of low prices available to them. These start at €10 and are €5 for children under the age of 12 who are accompanied by an adult. Two million tickets have been sold in under a year, more than 200 000 people have travelled for €10 and more than 300 000 children used the €5 specific tarif. Ouigo has also responded to mobility needs: more than 400 000 people would not have travelled if it hadn't been for Ouigo (CSA survey, November 2013). 93% of customers would recommend Ouigo to their friends and family and 9 out of 10 intend to travel with Ouigo again. iDBUS In 2012, SNCF Voyages launched a new long-distance coach option with a high level of service and comfort through its subsidiary iDBUS. iDBUS initially offered a number of links from Paris Bercy to major cities in northern Europe and to southern Europe. In 2013, the iDBUS network was extended along the Mediterranean coast with daily connections between the PACA region (Marseille, Aix-en-Provence and Nice) and northern Italy (Genoa and Milan), and then also from Lyon to Barcelona. The coaches all feature toilets, free WiFi connection, electrical sockets, reclining seats, individual lights and even information screens, which are accessible for persons with reduced mobility and provide passengers with information in real time on the progress of the journey. Prices are fixed, simple and attractive: ranging from €15 (for a Paris-Lille ticket) to €45 (Paris-Milan) with a "Prix

Mini" ticket8. iDBUS transported some 500 000

passengers in 2012 and 2013. 97% of customers are satisfied with their journey. 2.3. PROMOTING PHYSICAL ACCESSIBILITY FOR ALL PASSENGERS

— Company policy

To meet the legal obligations to make all establishments that are open to the public accessible and to also take into account the ageing of the population, SNCF is implementing a programme to make stations and trains accessible. The Group will also follow the new push from the government to continue the progression after 2015.

8 Tariff for a single journey on at least one bus per day (100% of seats)

for each service, even at the last minute.

Accessibility mission

SNCF has been pursuing a policy of accessibility for more than a decade. Several initiatives have marked out this approach: in 2003, the company signed the French National Accessibility Charter and an agreement relating to developing the accessibility of rail transport for disabled people and people with reduced mobility. In 2006, SNCF set up the Persons with disabilities and reduced mobility advisory board. A test station was set up at Montparnasse in the same year. Accès Plus was launched in 2007 as a service where passengers with a disability or reduced mobility are met in the station and accompanied to their seat on the train. New equipment was tested in 2009 with the help of a train laboratory. Since then, there has been a massive growth in the number of projects being launched and carried out in stations or on trains. Station outfitting Several projects were completed in 2013, making a large number of stations accessible.The equipment that has already been installed includes tactile guide paths, sound beacons, window stickers, signage based on the Achemine typeface, flat screens and lifts in the station. Other innovations are also being tested like the "flèche sonore" (audible arrow) which was patented in 2006. Jade, a virtual character on information screens, provides sign language interpretation of audio messages broadcast in stations. Another example is the local induction loop, which is based on a system to assist the hard of hearing and filters out unwanted sounds from the station. In addition to the Paris stations Saint-Lazare, Gare de Lyon, Gare de l’Est and Gare de Montparnasse, the Besançon TGV and Belfort-Montbéliard TGV stations are fully accessible. Keolis moves towards universal accessibility

Keolis is focussing its efforts on visual and audio information, and on fitting out vehicles. Currently, 75% of Keolis vehicles are accessible, including a very high majority (82%) in urban networks. For mobile and on-board information, the aim is to achieve universal physical and cognitive accessibility, so that no passenger ever has difficulty travelling.

— Objective

To achieve physical accessibility for trains and stations with a programme of concerted, progressive and scheduled renovation and develop additional services for people with disabilities.


Art.225-II-3°-d) Number of stations offering accessibility

services for persons with reduced mobility (Accès + service) – E

2013 2012 2011

624 522 459

CHALLENGE 1



The accessibility service for persons with reduced mobility continues to develop in the regions and has been introduced in 23 new stations in Brittany and 72 in Picardy. In Greater Paris, ten additional stations, notably the RER lines (B, C and D) were also involved in 2013.

— Implementation in 2013 Agreement signed with the Nord-Pas de Calais region

Two agreements were signed with the Nord-Pas de Calais region to make 32 stations accessible. As a result, 16 stations covered by these agreements were made accessible in 2013: the new features to be introduced included reserve parking spaces, window stickers, guide paths and flat screens. Multimodal exchange hub in Toulon

After the first phase of fitting out the coach station in 2005, the second phase of renovation of the multimodal exchange hub in Toulon was completed in 2013 with the redesign of spaces within the railway station to prioritise comfort and flow. A new lift takes passengers from the ground floor of the station to the east underpass, which serves the centre platforms. Tactile guide paths were installed at the same time in the plaza and passenger building. The space is open thanks to the picture windows which are marked with window stickers and provide a direct view of the station interior and an unobstructed visual link. Information is provided through audio announcements and on flat screen displays. This new equipment gives passengers a station that is more accessible and adapted to all mobility needs. Adapted furniture and signage

A new range of furniture was adopted for the renovation of the station spaces. This furniture complies with the regulation for persons with reduced mobility: cane detection (for blind people), 40% of seats with armrests, installation of "stand-up seating" furniture. For all future projects, station waiting areas will provide areas for wheelchair users with access to services (tables, contact points, information, etc.). In addition, in the area of signage, SNCF's requirements for comfort exceed those prescribed by law (size of messages and reading distance).

CHALLENGE 1



3. COMMITMENT 3: DEVELOPING DOOR-TO-DOOR SOLUTIONS FOR PASSENGERS AND FREIGHT

3.1. DOOR-TO-DOOR SOLUTIONS FOR PASSENGERS

— Policy

One of the three objectives of the SNCF 2020 strategic vision is to offer "door-to-door" solutions. The existing services will be expanded and industrialised over the next two years (combination of modes and operators, multimodal information, bicycle and car sharing schemes, car pooling). The mobility packages will be trialled in 2014 and deployed over three years. An initial version of a harmonised passenger information application will be available in 2014. This will gradually become the door-to-door application and incorporate all the applications for services and mobility, in particular passenger information. Intermodal stations and integrated services

Today's stations have become important places in our lives, connected to the city and rooted at the heart of all mobility services. This is the framework within which Gares & Connexions ensures the development of its stations by making them multimodal exchange hubs in partnership with the transport organising authorities and local government. The ambition of facilitating the link between all modes was thus achieved for 30 multimodal exchange hubs which were opened in 2013 and is being pursued in almost 100 other projects which will be completed by 2020. In parallel with these outfitting projects, Gares & Connexions continues to facilitate arrivals for emerging modes or modes that are not environmentally damaging, as close as possible to stations: use of locked bicycle stores, opening new spaces for bicycle services (bicycle station in Toulouse), information on availability of bicycles in sharing schemes on the multimodal screens in the station (Bordeaux, Pau), Paris taxi information in real time for the number of customers waiting in Paris stations (Visucab), or even hire of electric scooters and two-seater electric vehicles (Marseille, Aix). A number of trials with car pooling and car sharing are also in place or in preparation with the transport organising authorities and Proximités (car sharing in Rhône-Alpes, "Bretagne Mobilité Augmentée" increased mobility project in Brittany, car pooling in Alsace, etc.). Keolis has introduced practical solutions in stations: from parking and heavy forms of transport to the bus, coach or even lighter modes. This is the case at the interactive terminals in Lille, and even in the KorriGo integrated ticketing in Brittany. The Breton transport card is valid on bus and metro services on the STAR network, on TER trains, on buses within the département and also for bicycles from sharing schemes. The card can also be used on the ferries that provide maritime links in the Brest harbour.

— Objective

To expand trials of door-to-door solutions for customers.

— Implementation in 2013 Mytripset: a comprehensive service for planning your journey from door to door

The Mytripset site was set up by SNCF's distribution subsidiary, Voyages-sncf.com, and enables customers to plan the journey from their homes to their final destination according to their needs. Customers can also choose the most relevant options from a wide range of possible itineraries and combinations of transport modes. The site provides the option of consulting local transport options for before and after the journey and the price and total duration can be filtered. It then allows users to compare the carbon footprint for each mode of transport in the suggested itineraries (train, aeroplane, car). Lastly, customers can obtain information in real time in the case of disruption. The SNCF cab service

Launched in December 2012, the SNCF cab service allows passengers to reserve a taxi or private hire cab up to the day before the departure of their train at a fixed price starting from €9.90. Passengers benefit from a guarantee that they will be picked up without having to wait, even if the train is delayed. The transport service is provided by taxis or private hire cabs. The prix includes transport for one to four people and their luggage. The cab service is available in 15 TGV stations. Reservations can be made at www.pap.sncf.com. Shuttle service when alighting from the train

SNCF has launched a iDPlage / iDNeige (iDTGV + bus) option, rounded off with the iDCab (car and driver) option, which is managed by Navendis and transports customers from home to the station and vice versa. The iDTGV train managers and employees at the stop also ensure that customers make their connections, so if the train is delayed, the car or coach will wait. 92% of clients are satisfied with this service. The stations involved are Paris Gare de Lyon and Paris Montparnasse for the iDCab option, Bordeaux and La Rochelle for iDPlage, and Grenoble for iDNeige. 3.2. CYCLING: A VOLUNTARY POLICY

— Policy

Cycling is a low-impact and economical mode of transport and complements the range of services that enable commuters and occasional travellers to move from A to B. With Keolis, SNCF provides 17 000 bicycles for rental or self service in eight towns. In addition, more than 50% of stations feature parking areas, providing a total of 29 000 spaces across eight towns. SNCF offers customers who are travelling for leisure purposes

CHALLENGE 1



a rental service near to the stations, through an annual partnership with the rental firms. SNCF currently lists 175 rental firms in France. The site velo.sncf.com provides information across France, not only on transport services but also on bicycle parking and even cycle routes starting from certain stations.


Art.225-I-2°-c) Number of stations equipped for parking

or hiring bicycles – E

2013 2012 2011

2 230 1 650 1 641

Locked stores are on the increase in the Greater Paris, Alsace, Rhône-Alpes, Nord-Pas de Calais and Midi-Pyrénées regions in particular. The Véligo trial, financed by the Greater Paris regional authorities, has seen the installation of 758 parking spaces in locked stores at 14 stations in Greater Paris, which can be accessed with the Navigo pass.

— Implementation in 2013 Keolis: bicycles integrated in transport services

Agen, Metz, Vichy and Rennes have recently been enhanced with services such as medium- and long-term bicycle rental and, in some case, bicycle parking.

3.3. DOOR-TO-DOOR SOLUTIONS FOR FREIGHT

— Policy

Multimodality is implemented with the rail and road services from Geodis. Rail freight and multimodality

The place of rail freight should be studied in perspective with the other modes of transport. Each has its own qualities and relevance. The challenge is to combine the benefits of each mode to structure an overall offering of efficient transport. Rail transport has proven to be particularly well suited to mass-volume and regular transport of heavy goods over long distances. Its potential can be optimised with multimodal transport, i.e. the combination of two modes of transport on one journey. Road transport and multimodality

The combination of modes of transport improves the operational and environmental performance of customers who use Geodis to transport their freight, according to their constraints (nature of the freight, geographical areas, distances, delay, carbon footprint, etc.). Its expertise in all the fields involved in the supply chain makes Geodis the specialist for multimodal solutions.

CHALLENGE 1



4. COMMITMENT NO. 4: ENCOURAGING NEW LOW-IMPACT MOBILITY SOLUTIONS

Principle 8: Businesses should undertake initiatives to promote greater environmental responsibility Principle 9: Businesses should encourage the development and diffusion of environmentally friendly technologies

4.1. FOR PASSENGERS

— Policy

Several trials involving new ways of using the car and offers linked to the train are under way. Ten regions are covered by car pool services. To complement the transport offering and provide an alternative to car ownership and one-person journeys, Keolis runs car sharing services in six regions – with direct management in Lille, Orléans and Pau, and in partnership in Metz, Rennes and Bordeaux. On the Paris-Marseille route, SNCF has been trialling a "fully electric" offer since November 2011, which combines the train with electric vehicle rental. Six vehicles are available at the Gare de Lyon and four more await passengers at Marseille Saint-Charles station. This service could be deployed on other lines in the long run.


Nissan and SNCF promote 100% electric for long-distance

SNCF and Nissan have joined forces to promote the LEAF, a 100% electric vehicle, and the AutoTrain service. To make it possible to use electric vehicles over long distances with the car having an independent range of only 200 km, Nissan and SNCF agreed on the sale of the "Auto/Train" car/train ticket at a preferential rate: LEAF owners therefore benefit from one free single journey on the Auto/Train and then a 30% reduction on subsequent Auto/Train tickets. A quick charge point is available at Paris Bercy station and so when customers collect their vehicles they are ready charged, whether on the outward or return leg. Lilas Autopartage in Lille

The Lilas Autopartage car sharing service was set up in Lille by Keolis and has been operating since 2007. With five new stations opening in 2013 to make a total of 31 stations and a fleet of 75 vehicles, Lilas has attracted more than 1 800 subscribers. In 2013, the service was integrated into the Transpole Pass card for the public transport network in the Lille metropolitan area. Another new service from Lilas Autopartage is a mobile version of its reservations site, lilas.mobi, as well as online

membership. By 2015, this service will be introduced in 15 new communes to achieve better coverage of the metropolitan regions.

4.2. FOR FREIGHT

— Policy

Companies are becoming increasingly mindful of their products' carbon footprint. The choice of transport is becoming important for them as a result. SNCF is the first rail operator in Europe to systematically calculate an estimate for all its customers of the CO2 emissions produced by their traffic. Greenhouse gas emissions are being reduced on several fronts: by absorbing the tide of road traffic and freeing up road infrastructures, by developing multimodality, and by reducing the impact of the final kilometre of the journey. This is the driving force behind the development of new freight services such as long trains or a redesigned single wagon system. Long trains

In order to make rail freight more attractive, RFF, SNCF and 14 other partners have entered into a partnership aimed at trialling double trains of 1 500 m as part of the European Marathon project (2011-2014). The first test train ran successfully on 18 January 2014 between Sibelin (Lyon) and Nîmes, with the second being planned for 12 April. Fret SNCF is finalising its Marathon project studies to gain authorisation by 2016 to use double trains on certain existing lines in combined transport or for transporting steel products. As a first step, trains of 2 x 500 m (maximum total length of 1 000 m) are planned with the same technology as used in the Marathon (joining of two trains, one behind the other with radio control of the two locomotives). Long trains of 850 m have been running since January 2012 between Bettembourg (near Luxembourg City) and Le Boulou (near Perpignan). In 2019, these trains will run in the 1 050 m format, with 30 wagons and a capacity of 60 semi-trailers. The traction system of these new rolling road trains is still under consideration. It could be conventional with two locomotives at the head, or shared traction with radio control and the second locomotive being placed at the rear of the train. Alternative solutions for Geodis

Proposals have been made for a number of alternative solutions, such as modal transfer from air to sea freight, combined rail-road transport and city-centre rail shipments, etc. EcoTransIT

Developed in 1998 by European rail companies including SNCF, the EcoTransIT World tool can be used to assess emissions of greenhouse gases and atmospheric pollutants, regardless of the method of transport used (rail, road, air, sea, river) and geographic area in question. The third EcoTransIT forum was held at the start of April 2013 in Paris and a brought together around one hundred participants – experts, institutions, members of the initiative and users of the tool, forwarding agents and transport companies. The SNCF Group uses the tool to declare the CO2 of transport services. In 2013,

CHALLENGE 1



Geodis continued to roll out environmental reporting, in particular by integrating the EcoTransIT World tool into its information systems.

— Objective

To save over one million tonnes of CO2 from 2012 to 2020 by shifting to rolling roads.

— Change in indicators Art.225-I-2°-d) Cumulative number of tonnes of CO2

avoided by shifting to rolling roads (in thousands) – E

In 2013, the two rolling roads in operation, the Alpine rolling highway (Aiton - Orbassano) and Lorry Rail (Le Boulou - Bettembourg) enabled a saving of 59 000 tonnes of CO2 – an additional saving of 10%. This increase is linked to a rise in the number of trains and a better loading rate for the trains.

— Implementation in 2013 Heavy trains: successful test on a 4 200 tonne train

A trial run of a 4 200 tonne train with a length of 740 metres was made in November 2013 on the Grande-Synthe-Petit Thérain route between production plants at Mardyck (in northern France) and Montataire (near Paris). The train was carrying steel coils mainly intended for the automotive sector on behalf of ArcelorMittal. The dynamic behaviour of the train, the impact on the trip time and the performance of acceleration, braking and capacity at start-up were confirmed in a real-life situation. A further trial was conducted with a 4 000 tonne train on the Dunkerque-Ebange route, but on a less even trip profile with more sizeable gradients. The challenge is to offer customers large format solutions that bring definite gains in productivity. These routes are part of the considerations for the use of double trains of 1 000 m referred to above. The primary innovation in length would be joined by the challenge of the hauled weight of around 6 000 tonnes.

50 109

1 000

2011 2012 2013 Objectif 2020

CHALLENGE 2

LIGHTENING THE BURDEN ON THE ENVIRONMENT


SNCF has been implementing an environmental policy for around a decade now. This approach involves less pollution linked to its activities, management of risks and ensuring compliance of its facilities. An employee network dedicated to the environment has thus been progressively formed within the Group divisions, subsidiaries, areas, regional divisions and entities. A system of training and the mainstreaming of environmentally friendly management is used to bring these employees up to professional level.

CHALLENGE 2



5. COMMITMENT NO. 5: MAINSTREAMING ENVIRONMENTALLY FRIENDLY MANAGEMENT

Principle 7: Businesses should support a precautionary approach to environmental challenges Principle 8: Businesses should undertake initiatives to promote greater environmental responsibility

5.1. ENVIRONMENTAL MANAGEMENT

— Policy

Art.225-I-2°-a) General environmental policy Organisation of the company to take environmental questions into account

The environmental performance is understood, measured and improved through the use of management tools. In the face of tougher regulation, the development of the ISO 14001 certification steps and the deployment of Environmental Management Systems (EMS) provide support for environmental management at SNCF. All the rolling stock entities and almost all industrial entities of SNCF Infra (EIV), large stations and the SNCF Voyages headquarters are now certified to ISO 14001. At the other sites and related entities, "adapted" EMS are used, which incorporate the main requirements of the ISO 14001 standard. The aim is for 100% of entities to have an EMS by the end of 2015. This involves implementing compliance management for registered environmentally sensitive facilities, sorting and improvement of hazardous or non-hazardous waste on worksites – in particular using rigorous follow-up of maintenance – training of staff for emergency measures and work on business processes. Rainwater treatment, combating noise pollution and saving resources are also lines of progress that have been set in motion. In 2013, the Keolis Group President signed the Group's first environmental policy. This powerful act commits Keolis to go beyond the simple contribution that public transport makes in limiting the environmental impact of travel by citizens. The Group is therefore making a commitment to respect the regulatory demands and other contractual or voluntary commitments, to take control of its environmental impact and to prevent pollution. The Group will also continue its efforts in pursuit of better use of energy resources, improve the management of waste that is generated and reduce its consumption of drinking water for industrial uses. In order to do so, the subsidiaries will draw on a system of environmental management. This process is being headed by the Group's Health-Safety-Environment

Department as part of an ongoing process of improvement. This environmental approach is set out in the Keolis five-year strategic plan. At Geodis, the environmental management system includes measures to minimise consumption of gas, electricity and water, and manage waste. Art.225-I-2°-a) General environmental policy Provisions and guarantees for risks relating to the environment

The SNCF Group is insured against civil liability. The contract covers the company against pecuniary consequences of all liability that it could incur due to physical injury, material damage or immaterial loss, whether consequential or not, caused to third parties through activities that may be carried out by SNCF and its subsidiaries. This insurance policy includes an extension in its specific guarantees that covers "accidental and gradual damage to the environment in particular".

— Objective

To provide an EMS for 100% of EPIC entities by the end of 2015. Change in the percentage of entities with an EMS (certified to ISO 14001 or with adapted EMS) between 2011 and 2013 – E

23% 27% 36%

100%

2011 2012 2013 Objectif 2015

CHALLENGE 2




Art.225-I-2°-a) Number of entities/sites with an EMS

(certified to ISO 14001 or with adapted EMS) – E K G A

2013 2012 2011

486 438 378

As the successful conclusion of a long process, all industrial entities are certified to ISO 14001. In 2013, the total workforce covered by an ISO 14001 certification is 36 362 employees (EPIC, Keolis and Naviland Cargo). The rise in the number of entities in 2013 is essentially explained by the further deployment of adapted EMS at SNCF Infra production entities and Fret divisions (excluding industrial entities certified to ISO 14001) where the environmental impact is the most significant. The passenger entities are to be involved in the process in 2014. The number of Keolis Group sites covered by an ISO 14001 certification rose by 40% thanks to new certifications in the subsidiaries in Sweden, Denmark and the Netherlands. Art.225-II-2°-a) Total provisions for environmental risks

(in € million) – E K

2013 2012 2011

425 360 355

The contribution of provisions for environmental risks is linked to the dismantling of rolling stock at the end of its life. A site for dismantling the equipment was put into service in Mans in October 2013, and another will be introduced in Chalindrey during the course of 2014. A total of 15 320 bodies (coaches, wagons and locomotives) will be handled by these two sites. 5.2. ENVIRONMENTAL TRAINING

— Policy

Art.225-I-2°-a) General environmental policy Staff training measures on environmental protection

In 2013, a total of around 450 members of EPIC staff benefited from the 70 sessions delivered by the subsidiary EFFIA Synergies, which provides training in targeted areas such as the foundations of the industrial environment, waste, EMS, environmental audits (according to the standard ISO 14001), Environmentally Sensitive Registered Facilities (ICPE), internal information tools specifically for the environment, IMPACT and OASYS and, finally, environmental law.

The training offered by the Keolis institute continues to expand for environmental topics.


Art.225-I-2°-a) Number of employees with

environmental protection training – E

2013 2012 2011

440 434 -

This training mainly concerns employees in the internal network of environment, local and regional correspondents. The overall stability of the figures is linked to the progressive nature of the training modules taken and the normal renewal of the populations in question.

— Implementation in 2013 Environmental strategy: training aimed at subsidiaries

In 2013, Keolis developed a training course to help subsidiaries involved in the environmental strategy to understand the objectives, use the associated tools and encourage interaction between subsidiaries. The course is rounded off by a module to raise awareness among management committees in subsidiaries.

CHALLENGE 2



6. COMMITMENT NO. 6: SAVING ENERGY AND CUTTING GREENHOUSE GAS EMISSIONS


— Policy

Art.225-I-2°-c) Sustainable use of resources Energy consumption and the measures taken to improve energy efficiency and turn to renewable energy

With consumption of more than 8 TWh of electricity and more than 400 000 m

3 of diesel oil, the SNCF Group is

one of the main energy consumers in France. As part of the ten-year plan of action set out in 2012, and in line with the company's environmental commitments, SNCF intends to reduce its level of consumption, protect its energy supply security and control its greenhouse gas emissions. This is an approach that not only draws on research and innovation, but also on the reduction in the amount of energy used by the trains and its many buildings. An "Energy saving" team was set up to carry out this ambitious programme. The team reports to the Energy Director, appointed in 2013, alongside the Director of Finance, Purchasing and IT. The team's objective is to steer and consolidate the measures in the various areas of the company in order to achieve the goals of reducing consumption by 15% for traction energy and by 20% for buildings by 2020. 6.1. REDUCING CONSUMPTION OF TRACTION ENERGY

— Policy

Eco-driving and meters on the trains

80% of all energy consumed by SNCF is used to transport people and goods. With the exception of the latest-generation trains, the units are not fitted with energy meters. The main means of improving traction energy consumption is to measure this so as to manage the reduction. A vast programme of investment in the amount of €140 million has been launched to install meters in the trains. The first TGVs are to benefit from this by the end of the year. This type of equipment is necessary to make greater progress with the eco-driving that is already practised at SNCF. Drivers can benefit from feedback on their driving practices as a result. Better performing equipment

SNCF has signed up to a partnership with Alstom

concerning six projects that aim to reduce consumption in trains that are already in service and in future trains. For an equivalent number of seats, the new generations of TER trains already consume 20% less energy than the previous generation. The Keolis energy policy

One of the aims of the Keolis Group's environment policy is to optimise energy consumption. This is the subject of a specific project in the Group's strategic planning, which includes self-diagnosis for subsidiaries and formalising best practice. Eco-driving is an important element in reducing fuel consumption in buses. This involves two types of complementary action: — Training: training modules on simulators make bus and coach drivers aware of the benefits of eco-driving (fluidity of driving which improves customer comfort, gain in consumption without affecting commercial speed) — Use of a tool: Keolis has approved a range of products called Konfort, Konfort Plus and Konfort Max, which enable the effect of driving on consumption to be seen (measure of acceleration/braking). 24 subsidiaries have chosen to use this tool, which makes managerial support for drivers easier. The first results showed a 4% decrease in consumption. In addition, Keolis continued to renew its vehicle fleet in 2013. 43% of its fleet is now made up of Euro 4 and Euro 5 vehicles (+6% compared to 2012). 2013 also saw the introduction of hybrid technology within some fleets in France (102 in Dijon, 30 in Bordeaux, 27 in Metz) and abroad (29 in Hisingen in Sweden). The Geodis energy policy

Geodis is committed to reducing its energy consumption on the road and at its sites. Geodis BM has been working to reduce the average fuel consumption in its lorries for several years. This saw an overall decrease between 2010 and 2013 despite a slight fall in performance results in 2013. Geodis is also tackling local pollution by renewing its vehicle fleet in favour of equipment that produces fewer emissions, and trains all its drivers in eco-driving. Thanks to on-board information tools on the entire fleet of Geodis BM lorries, actual consumption can be followed with great accuracy for each trip, driver and vehicle. This information can be used by company trainers to define individual objectives. In the event of a discrepancy, further training is scheduled to help drivers acquire good driving habits for the long term.

— Objective

To reduce consumption of rail traction energy by 15% between 2012 and 2022. Change in energy consumed for rail traction

between 2012 and 2013 (in thousand TOE9) – E

9 Tonnes of oil equivalent

CHALLENGE 2



Data verified by auditors and given "reasonable assurance"

— Change in indicators Art.225-I-2°-c) Energy consumed for rail traction (in

thousand TOE) – E K A

2013 2012 2011

827 821 839

The amount of energy consumed for rail traction and, therefore, the greenhouse gas emissions are stable. This reflects a climatic effect (harsher winter of 2012/2013), compensated for by a slight decrease in traffic. The apparent slight increase of 2013 can be explained by the fact that the consumption of the subsidiary VFLI was taken into account (not included in the data for 2011 and 2012). Art.225-I-2°-c) Fuel consumption of road vehicles in

commercial fleets (in thousand TOE) – K G A

2013 2012 2011

266 275 269

If the new subsidiaries are excluded from the scope for 2013, fuel consumption for the Group is down as a whole (-10.5% compared to 2012). This is explained by a combination of several factors: the slowing in Geodis activity, in particular in France due to the economic situation, as well as the policy of reducing consumption taken by the Geodis and Keolis Groups (especially for Keolis Sweden).

— Implementation in 2013 Installation of a supercapacitor on the Keolis network in Tours

Keolis continues to take steps to improve the energy efficiency of heavy modes. Following the example of the Rennes and Lyon networks, the Tours network is currently installing a supercapacitor that will enable surplus electrical energy from braking to be recovered, stored and reintroduced. This means that peaks in electrical power can be reduced when trains accelerate.

Less-polluting vehicles

In order to limit emissions of pollutants that affect air quality and the health of the local populations (particles, nitrogen oxides, carbon monoxide), Geodis continued to implement its vehicle renewal policy throughout 2013, by equipping vehicles with Euro 5 engines. For the company's fleet of more than 5 000 vehicles at the end of 2013, the Euro 5 proportion rose from around 48% at the end of 2011 to 68% at the end of 2013. The Group also has a quota of 0.6% Euro 6 vehicles and 1.7% EEV (Environmentally Enhanced Vehicles, or "clean")

vehicles, such as electric, natural gas or hybrid vehicles. The Group is developing trials for the use of environmentally enhanced vehicles in parallel with this. Geodis BM has been using speed governing since 2006 (82 km/h rather than the 90 km/h stipulated in the regulations) as well as low-consumption pneumatics and thus achieves a fuel economy of 1.2 litres/100 km on average each year. 6.2. REDUCING CONSUMPTION OF ENERGY IN BUILDINGS

— Policy

The objective of reducing energy consumption by 20% applies to some 16 300 SNCF buildings and stations. Several measures have been launched in recent years to lower the factor by improving the management of technology in the buildings, and also by looking to alternative energy when designing new stations: environmentally sustainable stops, the Rhine-Rhone HSL stations, and even renovation of sites. The environmental management system at Geodis is based on the ISO 14001 standard to improve the environmental impact of buildings (logistics warehouses, groupage platforms, commercial offices, headquarters). It involves, in particular, optimising the consumption of gas and electricity. Logistics and groupage activities consume energy by their nature (warehouse lighting, heating, supply to the handling equipment or conveyors). The main share of the energy consumption takes place in Europe. France accounts for 69% of the total electricity consumed by Geodis and 58% of the consumption of gas, which can be attributed mainly to logistics activities. The efforts to optimise consumption are under way both through development of the infrastructures and equipment, and also through awareness campaigns.

— Objective

To reduce energy consumption for EPIC building functions by 20% between 2012 and 2022.


Art.225-I-2°-c) Energy consumption in buildings (in

million kWh) – E K G A

2013 2012 2011

2 497 2 280 2 190

- Electricity (in million kWh) – E K G A

1 149 1 042 968

- Gas (in million kWh) – E K G A

783 781

665

2012 2013 Objectif 2022

CHALLENGE 2



996 866 864

- Heating oil (in million kWh) – E K A

204 210 203

- Heat distribution networks (in million kWh) – E

148 161 154

For the same scope (excluding "other" subsidiaries newly integrated in 2013), the overall energy consumption of buildings rose by 4.3%. The trends are somewhat varied according to the type of energy: moderate overall for electricity (+2.9%) and very pronounced for gas (+10.5%). With regard to electricity, the recorded increase is essentially the result of the scope of Geodis logistics activity being better accounted for. As for gas consumption, the increase is explained for a large part by the sustained cold period between January and May 2013; in 2012 only February was marked out by a very cold episode.

— Implementation in 2013 Stations with eco design

Accessibility, intermodality, energy performance, implementation of environmentally responsible worksites and the integration of buildings into the landscape are the main focuses of CSR in stations. With regard to sustainable stations, SNCF can already boast stations such as Belfort-Montbéliard TGV or Besançon Franche-Comté TGV, which have received High Quality, Safety and Environment (HQSE) and Low Energy Consumption (BCE) certifications, as well as 15 environmentally sustainable stops. SNCF and Cofely, a subsidiary of GDF Suez, have agreed to a partnership to trial solutions for reducing energy consumption in five stations in eastern France. Smart grids

Alongside other companies, specialist laboratories and ADEME (the French Environment and Energy Management Agency), SNCF is participating in research work relating to smart grid technologies. Based on smart electricity networks, these technologies are able to use sensors to optimise the quantity and type of energy in real time according to needs such as train usage, temperature or the time of day. The short-term goal is to improve energy performance in regional stations. In the long term, the aim is to build an ecosystem with their neighbourhoods. The results of the trial in Versailles-Chantiers station have enabled Gares & Connexions to take voluntary steps to reduce electricity consumption linked to lighting. LEDs

SNCF Transilien has fitted LED lights in nine stations in Greater Paris to reduce electricity consumption and prolong the service life of the bulbs. Lorient, Auray, Arras and Lyon Part Dieu stations have also be fitted with LED lighting.

Remote management of lighting

Lille Europe was at the centre of a trial for managing lighting remotely, which reduced energy consumption by around 35%. Low-energy fluorescent lamps

Lighting is the main consumer of electricity in Keolis buildings and infrastructures. The Keolife project aimed at "better use of our energy resources" is based on a three-stage approach. On the one hand, it aims to measure and track electricity consumption and, on the other, to define usage rules based on true need (level of illumination, adjustment according to natural light, motion sensors or skylights, etc.) in order to consume a low amount of energy when using lighting systems. Several studies have shown that low-energy fluorescent lamp technology used in conjunction with electronic ballasts brings a better return on investment. This approach enabled Keolis Rennes to make a 40% reduction in its electricity consumption for the lighting in its offices. Replacing lamps in metro trains and trams

Keolis has also launched lamp replacement projects for metro trains and trams. Replacing lamps with LED tubes saves further electricity with a return on the investment in two years. 100% LED lighting for groupage in Brest

The new modern Geodis parcel delivery agency in Brest, which opened in 2013 with more space, is the first facility in the Groupage & Express division to be fitted with 100% LED lighting. With 189 lights, the lighting is now better managed and more uniform. The energy savings (estimated at 65 000 kWh/year, or 53%) go hand in hand with an improvement in working conditions for all.

CHALLENGE 2



6.3. REDUCING GREENHOUSE GAS

— Policy Art.225- I-2°-d) Climate change Release of greenhouse gases

France emits 530 million tonnes of CO2 each year. Transport is responsible for a quarter of these emissions and rail accounts for around 1%. Rail therefore offers a solution for mobility using less carbon, and the modal shift from road to rail is a crucial aspect. In fact, 50% of greenhouse gas emissions come from private cars and 40% from transporting goods by road. SNCF conducted its first carbon audit in 2008. The two major items for emissions are linked, firstly, to the energy used to power the trains and, secondly, to the energy consumed by customers in travelling to or from stations. This reaffirms two SNCF policies: the reduction of energy consumption and the development of door-to-door solutions – one of the three objectives of the Excellence 2020 vision. For 2012, the carbon footprint of the EPIC was around 3.1 million tonnes of CO2. SNCF has developed several tools to evaluate the carbon footprint of its networks, lines, entities and stations, and also the footprint of the service evolution process. Keolis CO2 policy

Keolis is tackling its CO2 emissions by working to optimise its energy consumption. Several subsidiaries have committed to creating carbon audits, above and beyond the current regulation. SNCF Geodis carbon audit

SNCF Geodis used the "Oxygen" project to conduct its carbon audit in 2011. This process involved more than one hundred employees over 14 months. They provided their expertise to match up the calculation methodologies with the reality for each field and supply these with data for quantified activities. The carbon footprint for SNCF Geodis is evaluated as 5.9 million tonnes of CO2, which is equivalent to the emissions for the Nantes urban area. In greater detail, the energy consumed by owned or company-controlled resources generates 17% of emissions, whereas the "transport" outsourcing accounts for 75% of the overall footprint of SNCF Geodis. On the whole, freight transport accounts for 93% of emissions, of which 52% is due to air and maritime activities. For its part, STVA, a subsidiary of SNCF Geodis and logistics provider for automotive vehicles, renewed its partnership with ADEME in 2012. STVA undertook a plan of concrete action aimed at reducing fuel consumption in two of its road subsidiaries, Uniroute and Egerland, and saved 4 000 tonnes of CO2 between 2008 and 2010.

Art.225- II-2°-d) Climate change Adapting to the consequences of climate change

An initial analysis of the operating conditions and the regulatory and normative context that could potentially be affected by climate change was conducted for rail operations. Best practices that have already been introduced at SNCF to aid adjustment have also been shared with other major French companies.

— Objectives

As part of a commitment by the International Union of Railways, SNCF must reduce its specific GHG emissions by 30% for freight rail traffic between 1990 and 2020, and by 40% for passengers. Change in CO2 emissions per passenger-km (in g/pass-km) – E

Change in CO2 emissions per tonne-km (in g/ton-km) – E

14,92

8,87 8,84 9,04 8,87

1990 2011 2012 2013 Objectif2020

11,21

8,05 7,45 7,52 7,22

1990 2011 2012 2013 Objectif2020

CHALLENGE 2




Art.225-I-2°-d) Greenhouse gas emissions (CO2 in

thousand tonnes) – E K G A

For the same scope (excluding "other" subsidiaries newly integrated in 2013) and unaltered emissions factors for 2013 compared to 2012, the emissions of CO2 automatically change in the same proportions as the related energy consumption: -1.7% for rail traction (including heavy modes for Keolis) and -10% for road fuels of subsidiaries' commercial fleets.


Studying the impact of climate change on the range of services SNCF commissioned the firm Carbone 4 to conduct a study of the TGV service to Brittany and Pays-de-la-

Loire10

and of its relevance for the future. The aim was

to assess what the impact of the demand for mobility will be when climate change forces reduction policies for greenhouse gases. The TGV project was subjected to four scenarios constructed using two axes: one for a higher or lower level of carbon constraint and the other for the level of governance (interventionism and anticipation by public powers). The study is based on an analysis of the change in household purchasing power by decile and long-distance mobility for each decile. In three of the four scenarios, the service retained a sufficient number of customers to ensure its economic viability. Public support and CO2 information

As of 1 October 2013, transport operators must inform their customers, be they passengers or shippers, how much CO2 is produced by their trips. The site voyages-sncf.com has been publishing this information since 2008, and Fret has been informing shippers since 2009. With these measures, SNCF adds to the information available to passengers and enables them to consult this data when they buy their tickets. To help customers to understand CO2 and launch the information, TGV, Transilien and TER are working together on communication onboard trains and in stations comparing the emissions for a train journey and those for another mode of transport or an everyday activity (for example cooking a chicken). In 2013, to travel 1 km, a passenger would emit 6.2 g of CO2 on Transilien, 3.4 g on TGV, 30.7 g on TER and

10

The opening of the high speed line from Brittany to Pays de la Loire

(Le Mans – Rennes) is scheduled for 2017.

11.9 g on Intercités. This information is updated annually and forms the basis for calculating the CO2 information that is made available to all customers for their journeys. The French subsidiaries of Keolis also inform their customers of this, and Geodis provides the relevant information to its shippers. 2013 2012 2011

2 410 2 371 2 367

- Rail traction (trains, metro, tramway) (thermal and electric – in thousand tonnes) – E K A

1 051 1 036 1 063

- Commercial road transport (in thousand tonnes) – K G A

984 992 964

- Buildings (in thousand tonnes) – E K G A

374 344 340

CHALLENGE 2



7. COMMITMENT NO. 7: DEVELOPING THE CIRCULAR ECONOMY AND ADDRESSING EVERY FACET OF OUR IMPACT

Principle 7: Businesses should support a precautionary approach to environmental challenges Principle 9: Businesses should encourage the development and diffusion of environmentally friendly technologies

Steps to formalise the circular economy were taken in 2012 for the following materials: rolling stock, infrastructure components, electrical waste, textiles and paper. The policy of a circular economy was supported by the Executive Board in December 2013 and is structured around eight priorities: — Priority 1: promoting eco design that incorporates the cost of the lifecycle, recycling, recovery at end of life and final disposal — Priority 2: integrating these criteria into the purchasing specifications and projects so that they are taken into account in the files setting out commitments — Priority 3: where possible, favouring suppliers who integrate the requirements of the circular economy — Priority 4: evaluating industrial processes, in particular at the Rolling Stock Division: dismantling, heavy operations for renovation and overhaul, maintenance of trains, parts repair, including at SNCF Infra — Priority 5: adapting these industrial processes in order to optimise the lifespan of the components and to achieve optimum usage of resources — Priority 6: developing partnerships with eco organisations and existing or emerging industrial recovery networks — Priority 7: using selective sorting of waste in stations and improving this in entities — Priority 8: limiting upstream packaging, in particular at supply chain level This policy is to be extended to the whole of the SNCF Group, starting with Geodis and Keolis. 7.1. REDUCING POLLUTION

Art.225-I-2°-b) Pollution and waste management Measures to prevent, reduce or redress pollution of the air, water and soil that has a serious environmental impact

WATER

— Policy

SNCF continues to take steps to better manage its waste by ensuring the compliance of its facilities and implementing checks and monitoring. €150 000 were invested for the treatment plant at the Languedoc-Roussillon technicentre and also for improved treatment of effluent from the maintenance centres at the Infrapôle Champagne-Ardenne and the Infralog Centre. Bringing the use of crop protection products under control to maintain the areas around tracks is the second focus of this policy.

— Objective

To reduce the amount of plant protection products used on the tracks by 50% between 2010 and 2018.


Art.225-I-2°-b) Purchase of plant protection products (in

tonnes) – E

2013 saw a slight increase in the purchase of herbicides. The production results do not reveal any significant change in the quantities of surface treated. This increase is mainly due to the de-stocking of products in 2012 having significantly reduced purchases in that year.

— Implementation in 2013 Innovation in vegetation management

Since its launch in 2005, the SIGMA application (geographical information system for vegetation management) has continued to evolve in terms of more efficient and more environmentally friendly vegetation control. GPS technology is now also optimising the system. This innovation earned the Projects, Systems and Engineering team recognition for having developed one of the eight best geo-innovations in France in 2013. Weed control is prohibited in more than 27 000 zones listed in SIGMA over a network of 471 km as they are located near to watercourses.

131 134

108 111

65

2010 2011 2012 2013 Objectif2018

CHALLENGE 2



54 regional weed control trains and weed control trucks have been fitted with agricultural GPS. The system uses 3G data transfer to automatically shut the valves used for treatment when approaching the protected zones registered in SIGMA. Such a system has significant advantages, including improved protection of sensitive areas, reduced consumption of plant protection products, automatic traceability and better working conditions for operators. AIR

— Policy

Studies concerning the air quality in underground rail spaces (mainly in Greater Paris) have been under way since the start of 2000 to improve knowledge (of levels, sources, etc.) and identify solutions for reducing particulate levels. In stations where it is possible to do so, installing a ventilation system is a potential means of improving the situation, as is a move towards electric braking for the trains. With regard to emissions of volatile organic compounds linked to construction materials, SNCF is demanding the use of materials that produce fewer emissions in the specifications for rolling stock.

— Implementation in 2013 Station ventilation

General recommendations have been established for the use of ventilation for comfort in existing stations – if they have it – as well as greater consideration for ventilation during projects for refitting or building stations. Studies have been conducted in various stations and Strasbourg station has been able to identify a ventilation solution to suit its configuration (trams running underground beneath a glass roof). SOIL

— Policy

SNCF is working to clean up pollution at its industrial sites, including the pool of 130 rail service stations which deliver 200 000 m

3 of diesel oil required for diesel

traction (50% of the network is not electrified).

— Implementation in 2013 Cleaning up pollution of old service stations

Two major clean-up operations have been launched on location in Grenoble (38) and Grande-Synthe (59). Research for polluted sites and soil

SNCF has once again confirmed its commitment to this issue by taking on the presidency of Innovasol. SNCF is a partner of this foundation which specialises in researching pollution and decontamination of soils, alongside ADEME, the Regional Council of Aquitaine, EDF, GDF Suez and Total.

NOISE POLLUTION

— Policy

SNCF has been developing a continuous approach of impact reduction and limitation for several years both at process level and for rolling stock and for the sound systems in stations in order to improve conditions for customers and staff. An ambitious research programme

SNCF runs a research programme made up of internal projects and participation in collaborative projects at a national and international level on complex issues: screeching disc brakes, noise at individual points on the track (such as switchgear), absorbers on the wheel and rail, accurate prediction of noise from trains passing, quiet rolling stock and the maintenance of acoustic performance over time. Active technical presence

In terms of regulation and standards, SNCF is involved in the group for standardising noise limits for new or renovated rolling stock and prescribes these acoustic requirements in its rolling stock specifications. SNCF is a leader when it comes to the contribution from the European rail sector to the work of the European Railway Agency on Technical Specifications for Interoperability (TSI) in relation to noise emitted by the rail system at the source, during the commissioning phases of rolling stock. Using quieter equipment

The use of recent, quieter rolling stock is being pursued with Francilien in Greater Paris and Régiolis in several regions. Geodis is also looking to technology to achieve a significant decrease in noise through its electric, hybrid or natural gas vehicles.


Art.225-I-2°-b) Measures to prevent, reduce or redress pollution of the air, water and soil that has a serious environmental impact

2013 2012 2011

Percentage of low-noise freight rolling stock – E

8.1% 7.4% 7.1%

Percentage of low-noise passenger rolling stock – E

78.3% 77.7% 77.0%

With regard to passenger rolling stock, the integration of new categories of Transilien self-powered stock has made for a favourable change in the indicator for noise. With regard to freight, the decrease in the number of cast iron brakes and the increase in the number of wagons fitted with composite brake blocks also leads to an improvement in this indicator.

CHALLENGE 2




Reduction in disruption to local residents/businesses

A project to research station sound systems was completed during 2013. The tests will now be carried out over time in stations to confirm whether the expected changes from adjusting the sound systems in real conditions of use still guarantee a good quality of sound on the platforms, while minimising disruption to local residents/businesses.

Absorbers on wheels and tracks

Absorber on wheels and tracks offer a solution to the problem of running noise – the main source of noise from trains once they are travelling at speeds above 40 km/h. Simplified approval procedures for wheel and track absorbers and testing of the combination of these have proven successful. This work means that combined infrastructure (track absorbers, approved in France since 2007) and equipment (wheel absorbers, undergoing approval in France) solutions that have a greater impact than stand-alone solutions can be can be put into operation.

Virtual acoustics certification

SNCF is leading a European project that aims to develop digital simulation to reduce the costs of approval, in particular for rolling stock and infrastructures featuring anti-noise systems. Infrastructure noise

SNCF Infra and RFF have launched a series of trials as part of a joint project to study the influence that deterioration of the rail surface has in noise generation. This work has been ongoing for several years. 7.2. REDUCING, RECYCLING AND RECOVERING WASTE Art.225-I-2°-a) General environmental policy Organisation of the company to take environmental questions into account Art.225-I-2°-b) Pollution and waste management Measures to prevent, recycle and dispose of waste

— Policy

The transposition of a European Directive on waste into French law at the end of 2010 means that businesses are obliged to reduce the production of waste, lower the amount of incinerated or stored waste by 15%, and comply with a fixed 75% recycling rate from 2012. Sorting, recycling and recovering waste

SNCF entities take measures to comply with this change: implementing shared platforms for waste management, recovering non-hazardous waste, raising awareness of sorting in stations and making staff from different fields aware of recycling in everyday situations. The company is also seeking out the best way of recovering non-hazardous waste and its constituent materials by using existing networks or working in industrial partnerships to create new networks.

Aside from the environmental concerns, recovering and recycling scrapped products is also an excellent practice in financial terms. The Purchasing Division’s Impulsia programme includes a recovery system for materials at their end of life (€400 million for the period 2013-2017). In 2013, proceeds from sales (SNCF Group and RFF combined) amounted to €43.6 million, compared to €52.6 in 2012. This decrease is due to a significant drop in the price of raw materials, while stocks remained stable. It should also be noted that re-use of infrastructure products was not included in the valuation. Some 98 000 tonnes of rail and ferrous metals, 530 000 concrete sleepers and 600 000 wooden sleepers are removed each year. In 2013, 547 rolling stock bodies at the end of their service life were recovered. The plastic fastenings used on rails have also been being reprocessed since 2013. Industrial partnerships

SNCF, as a member of Prorecyclage, joined the professional association Orée in April 2013 and sits on its Executive Board. SNCF is part of specific trade associations (foams and textiles, glass) and is running and developing two new associations dedicated to dismantling heavy machinery (aeroplanes, trains, automotive vehicles, etc.) and managing waste in areas accessible to the public. SNCF is also promoting the emergence of new networks, in particular through the VALTEX project (for textile recovery), which involves developing acoustic insulation made from recycled fibres, in partnership with Renault and seven other industrial firms. Hazardous waste

The traceability of hazardous waste is guaranteed by issuing tracking documents and keeping a waste register. Staff training and implementation of an environmental management system help to integrate waste management throughout all industrial or tertiary operating systems within the company. Policy of subsidiaries

The environmental policy of the Keolis Group aims to improve the management of waste produced by its activities. Environmental management for Geodis sites also comprises ongoing efforts to optimise waste management. In 2013, 72% of non-hazardous waste generated by its activities was processed and this percentage reaches 81% at the logistics sites. Dangerous waste (filtration sludge from washing vehicles, waste oil, batteries, etc.) is sorted, stored and sent to specialist treatment facilities.


Art.225-I-2°-b) Total recovered or destroyed hazardous

industrial waste (thousands of tonnes) – E K G A

2013 2012 2011

100 84 53

The quantity of waste being processed is in strong growth (+19%), a trend entirely down to de-stocking and processing of a significant volume of removed wooden sleepers.

CHALLENGE 2




Hazardous waste

A new national call for tenders has been launched for the hazardous waste contract with technical clauses focussing on recovery and optimum recycling of waste. SNCF joins RECORD network

On 1 January 2013, SNCF became a member of RECORD, a cooperative network for research on waste and the environment. RECORD has been working in this field for 22 years and has already led 180 study projects. The network has 11 members, including major industry figures such as EDF and Renault, public bodies and a committee of researchers. By virtue of this association, SNCF can initiative studies in areas such as the circular economy, air quality or water management. Recycling used uniforms

Uniforms are to be sent to industries such as the production of acoustic felt or recycled thread. "Green worksites"

SNCF Infra continues to implement "green worksites", a formula that has been tested with RFF approval and involves reducing the inconvenience of storage by separating and recovering materials. This approach is environmentally friendly and cost-effective, as unused materials are re-sold. It is also socially responsible; a partnership with the French Ministry of Justice has enabled people sentenced to community service work to be involved. The stations in Blois and Abbeville and the storage site in Nevers were the first to open worksites of this type. 7.3. SUSTAINABLE USE OF RESOURCES

— Policy

Art.225-I-2°-c) Sustainable use of resources Consumption of raw materials and measures taken to improve the efficiency of their use Consumption of raw materials

To reduce the consumption of raw materials, the procurement strategies are championing the use of recycled materials and materials made using renewable resources. Environmental innovation by cleaning providers, for example, is one of the selection criteria used with the intention of reducing the consumption of resources (water, energy) and petrochemicals. Art.225-I-2°-c) Sustainable use of resources Consumption of water and the supply of water in light of local constraints Consumption of water

SNCF is taking progressive measures to reduce water consumption: phased deployment of monitoring of consumption, remote meter reading, programme of targeted measures for detecting and fixing leaks. The company adjusts its usage according to local constraints (for example, reduced washing of trains in the event of a drought).

The rail maintenance technicentres and Keolis have installed rainwater recovery systems on buildings as a way of reducing the consumption of drinking water by 20 to 30% depending on the rainfall in the region. The Keolis Group environmental policy includes a commitment to reduce the consumption of drinking water for industrial uses (cleaning vehicles and buildings). Art.225-II-2°-c) Use of land

The total land area of over 10 million square metres (figures published in 2012) occupied by the industrial and tertiary buildings used for the EPIC's operations did not change significantly in 2013.


Art.225-I-2°-c) Sustainable use of resources

2013 2012 2011

Total water consumption on all sites (in million m3) –

E K G A

8.5 7.4 6.3

Quantity of purchased resources

- Wooden sleepers (in thousand units) – E

335 310 -

- Concrete sleepers (in thousand units) – E

1 300 1 460 -

- Ferrous metals (rail, wheels, axles, etc.) (in thousand tonnes) – E

171 170 -

- Ballast (in thousand tonnes) – E

2 398 2 640 -

- Copper overhead lines (in thousand tonnes) – E

1.6 - -

- Paper (in thousand tonnes) – E

14.9 16.8 17.9

While SNCF EPIC has a stable level of water consumption at 5.3 million m

3, the Keolis subsidiary is

experiencing a sharp increase in this regard. This change can be attributed to surplus water consumption by YarraTrams (Australian subsidiary of the Keolis Group) linked to work, and taking into account the inclusion of water consumption on the network (in addition to depots).

— Implementation in 2013 The East European Technicentre

The East European Technicentre has started a treatment and recycling programme for used water that contains dirt from trains, detergents and certain metals. Washing uses more than 100 m

3 of water per day. This

new water treatment plant means that 80% of the water from machines used for washing can be reused. This step, which is being taken in other technicentres, is part of the process of considering the overall management of water.

CHALLENGE 2



7.4. INDUSTRIAL RISKS AND ENSURING COMPLIANCE OF SITES

— Policy

In order to control environmental risks linked to its industrial activities, SNCF ensures that its facilities and sensitive sites are continually monitored. This enables the company to plan compliance measures when necessary, either with specific action or by implementing overarching plans for certain facility categories. For service stations, the CUTEE project (urgent work for traction, energy saving and the environment), launched in 2007, has continued. In total, more than €46 million have already been invested to renovate SNCF's pool of service stations. In addition, SNCF Infra has made further progress in renovating its industrial facilities (investments in the region of €2 million to set up Saint-Dizier and €1.4 million to set up Quercy-Corrèze).


Art.225-I-2°-a) Number of outstanding ICPE formal

notices on 31/12 – E

2013 2012 2011

9 9 13

7.5. PROTECTION OF BIODIVERSITY

— Policy

Art.225-I-2°-e) Protection of biodiversity Measures taken to preserve or develop biodiversity

Maintaining the areas around tracks across the 30 000 km of the rail network requires an industrial approach. Even if one-off targeted measures can in fact be devised, in particular with the help of social inclusion programmes, it is impossible to apply them generally across the entire network. This type of maintenance may initially seem to be detrimental to protecting biodiversity but this is not necessarily the case and SNCF is working to better understand the role of the network and stations in terms of biodiversity and to improve its practices. Various measures and trials are also being conducted to attract social inclusion projects in partnerships with associations. Studying the role of green spaces

In order to better understand the role that green areas of the railway infrastructure play in their environment, particularly in an urban setting, work and research has been conducted with the French National Museum of Natural History to investigate the contribution made by these spaces to biodiversity in cities. In particular, this work has highlighted the role of the refuge, as well as the role of an ecological corridor in the urban environment. The green areas of the railway network could therefore help to alleviate the effects of filters associated with fragmentation of habitats in plant communities. This does not, however, seem to encourage plant invasions – these are instead linked to seeds being carried by the movement of trains.

New contracts for maintenance of green spaces around stations in Greater Paris

The use of plant protection products has been greatly reduced for the areas around Transilien stations and is reserved for certain specific cases of particular relevance for rail safety. A number of flower meadows trials are under way, and contracts feature clauses enabling a progressive change in the current maintenance towards adapted management of green spaces, where the level of maintenance is adjusted according to the function of the different spaces. Supporting work is to be conducted in 2014 to enable these changes in practice to be accepted (less, or even zero plant protection products, adapted management of spaces, etc.). An experimental approach for maintaining areas around tracks

New procedures for maintaining the green spaces on the network are currently being trialled. RFF and SNCF are calling on three providers to implement sustainable vegetation control. The green areas, located more than 3 metres from the tracks, have been treated as one-off or urgent cases, in contrast to tracks, adjoining paths and strips represent an important safety issue. Upon completion of this trial in 2017, this type of treatment could be extended to a third of the country.

— Implementation in 2013 Beaver dams on HSL

On the infrastructure side, a system has been installed on the Mediterranean high speed line to reconcile the habitat of the European beaver and the operating constraints on the line. Swifts in Étampes station

The work on the glass roof in Étampes provides an excellent example from the station side. This was discussed with the French League for the Protection of Birds (LPO) in order to take the presence of swifts on the site into consideration. As a result of this collaboration in particular, LPO and SNCF are discussing how they can continue working together in the longer term. Flower meadow trial at Ris-Orangis

The trial flower meadow on an area of consolidated ground at Ris-Orangis station has now flowered for the first time. The results were semi-conclusive and the area was re-sown. The success of the project will be able to be re-evaluated in 2014 for potential deployment.

Sheep and hives on the Keolis site in Angers

Keolis Angers introduced measures to encourage biodiversity in 2013. A flock of sheep replaced the mowers that had previously been used to maintain the green spaces at the Angers site. Hives were also installed to encourage biodiversity. The jars of honey made in these hives replace the traditional promotional items. These two measures make a contribution to the development of the local community by supporting the work of shepherds and beekeepers.

CHALLENGE 3

UPDATING OUR SOCIAL COMPACT


For SNCF, the success of the Excellence 2020 company plan will be achieved by bringing together the measures, in particular in HR, around the four strategic priorities: 1. Improving employee satisfaction 2. Supporting managers 3. Targeting overall performance (economic & human) 4. Ensuring the cohesion and social unity of the Group The company has revived practical dialogue in the workplace within the teams themselves through the "Talking about ourselves and our jobs" initiative, which each division has adapted to its circumstances. This is a vision that translates into better appropriation of operational change, and the results of this are monitored using various polls that measure employee engagement (Tempo, Allure, etc.). Efficient implementation of all company policies rests in particular on the support for managers, which can be seen in the full roll-out of the programme for "managing social risks" with the 220 entities. They are now also able to benefit from on-demand assistance in managing social aspects. Following the long dialogue held with the trade unions throughout 2013 on the French "generation contract", SNCF was also able to give new impetus to all of its policies on diversity, which now revolve around a single goal: make a difference on diversity. For the second year in a row, SNCF has been classed as "TOP Employer 2014". This award recognises the quality of the company's HR processes. It is set to make SNCF more attractive in its recruitment activity, improve staff loyalty and motivate employees in order to strengthen the pride of working for the company, satisfaction and involvement of each member of staff.

CHALLENGE 3



8. COMMITMENT NO. 8: FOSTERING DIVERSITY

Principle 6: Businesses should uphold the elimination of discrimination in respect of employment and occupation

8.1. FIGHTING DISCRIMINATION

— Policy

Art.225-I-1°-f) Equal treatment Policy for fighting discrimination

Since 2004, the various Group companies have each signed the French Diversity Charter and in doing so have committed to promoting the employment and careers of young people, women, older workers, disabled workers and people from diverse backgrounds. The Group is also committed to gender diversity via the "Égalité" (equality) label. This has multiple applications: promoting diversity during recruitment, fighting discrimination – not only when hiring, but also for access to training – or supporting employees' career development. The Group has implemented a professional warning system for discrimination to enable all employees to report any problems and also to give managers the opportunity to take effective action against this if necessary. Keolis is also committed to applying the principles of non-discrimination in all its processes, from recruitment (compliance with the United Nations Global Compact) to careers management (French Diversity Charter signed in 2006) and access to training. The HR community is made particularly aware of the key issues surrounding diversity through seminars, guides and training. The Group also communicates its position to all employees using a blog on its intranet and uses the "equality", "gender diversity" and "diversity" kits to relay its messages to subsidiaries. Finally, a vast project has been launched to automate, improve transparency in, and revise procedures and support for HR communication within the Group. In 2013, Keolis continued its partnership with IMS Entreprendre pour la Cité and took part in activities undertaken by the association: café coaching aimed at students, best practice groups, job forums. The Group was also involved in several events, including the gender diversity forum, "Forum pour la Mixité" in December 2013. The Equalis project was launched in 2012 by Geodis to promote diversity and combat discrimination and continued in 2013. Geodis is drawing on the GEES-GEIS accreditation (Gender Equality European Standard – Gender Equality International Standard)

from Bureau Veritas as a tool for managing professional gender equality policy.

— Implementation in 2013 Equality in the workplace: efforts by Keolis rewarded

In 2013, the national commission responsible for awarding the Égalité label recognised the sustained efforts by Keolis to guarantee greater professional equality between all employees. It also decided to: — award its first label to Transpole — renew the Égalité label held by Autocars Planche for three years — keep the Keolis SA label after the 18 month evaluation Geodis campaigns

The campaigns that were started in 2012 to raise awareness of diversity at Geodis were continued in 2013 with the launch of a diversity awareness guide. 8.2. GENDER DIVERSITY AND EQUALITY IN THE WORKPLACE

— Policy Art.225-I-1°-f) Equal treatment Measures taken to promote gender equality

The Management and the four representative trade unions of the company (CGT, UNSA, SUD-Rail and CFDT) oversaw the implementation of the signed agreement aimed at improving gender diversity and equality in the workplace in September 2012. Five primary objectives are covered: improving gender diversity during recruitment, promoting gender diversity in jobs by addressing working conditions, promoting equality between men and women in career paths, integrating parenthood into careers better, and enabling better cohesion between professional and private life. Financial measures

To avoid the financial losses linked to maternity, a temporary payment is made to compensate for the drop in variable salary elements during pregnancy in some cases, as well as a guaranteed minimum on performance-related bonus payments (individual performance-related pay, bonus or variable component, depending on the individual case). From the salary perspective, the average gap between men and women is 6.4% at SNCF, compared to 20 to 25% in French companies on average. The SNCF management team also includes six women out of a total of 16 members, of which five manage very business-focussed areas (Voyages, Transilien, Gares & Connexions, Geodis and Fret). Managerial dynamics

The prime agents of progress on the ground – the local managers of the future – benefit from a specific module to raise awareness during their training. Managers of entities are asked for their involvement for measures specific to their entities. More generally, the company is committed to reducing the potential risk of "glass ceilings" (invisible and often unconscious barriers that prevent women from accessing higher levels in the

CHALLENGE 3



hierarchy or more strategic areas), and fighting the trend towards presenteeism and late meetings. A network of action: "SNCF au féminin"

"SNCF au féminin" (SNCF Women's Network) is the network for female executives in the Group and has been pursuing two major missions since its creation: firstly, closer ties in the workplace through meetings to share best practice and experience and, secondly, through working groups and workshops on topical issues. Keolis Pluriel

Despite a strong masculine presence, which has traditionally been the case in the field of transport, the role of women is gaining importance in the workforce of the Keolis Group. In order to structure its approach, Keolis SA formed a management committee called Keolis Pluriel as an internal network of more than 170 members. The committee is involved in the "SNCF au féminin" network and provides advice to the Group's French subsidiaries. Geodis awarded Gender Equality European Standard

Geodis has been working towards the GEES-GEIS accreditation (Gender Equality European Standard – Gender Equality International Standard) from the Bureau Veritas. This accreditation is awarded for a period of four years and recognises and highlights the efforts made in this area. The evaluation audits conducted in November 2012 regarding gender equality (training, work-life balance, salary practices, etc.) enabled the Group to gain the accreditation in France, Germany, the United Kingdom and Italy. To start raising awareness of these topics, the Group published an internal guide at the start of 2013 to act as a reminder of the context of the area, best practice and the regulatory framework. A plan of action to improve practice in future was defined using the various criteria of the GEES-GEIS accreditation: training of HR staff and managers, measures to promote a work-life balance, salary practices, etc.

— Objective

To recruit women in proportion to the applications received.


Art.225-I-1°-a) Percentage of female workforce in

relation to the total workforce of the company – E K G A

2013 2012 2011

22.0% 21.0% 20.7%


AFNOR accreditation

2013 saw the AFNOR accreditation scheme for gender equality in the workplace launched, which resulted in the EPIC officially gaining the accreditation at the start

of 2014. Third "Girls' day" at SNCF

An open day was held on 26 November across France to enable 3 000 girls of secondary school age to visit establishments with a low proportion of female employees. SNCF's hopes to use this to tackle prejudices, show that all professions at SNCF are accessible to women and inspire directions of study or applications for jobs that are traditionally thought of as being for men. The company also frequently takes part in guidance activities in conjunction with local education authorities. Women and traction

The first female drivers started working in the 1980s and they are gradually accounting for a greater proportion of this profession. In 2013, 8% of traction recruits were women. To achieve the 10% objective set by the company for the recruitment of women, SNCF is taking action on two fronts: encouraging applications and ensuring that the candidate selection process does not put women at a disadvantage. The Keolis equality kit

Keolis put together a kit for the roll-out of the Égalité label (methodology for preparing an agreement with the employee representatives, provision of guides, information and support for communication) and also provided support during the changes and advice to the subsidiaries. An Égalité contact was also appointed in the subsidiaries that had the label or were undergoing the label certification process. Launch of the Geodis Women’s Network

The Geodis Women’s Network, which is linked to the "SNCF au féminin" network, was launched in May 2013 to promote female leadership and encourage equality in the workplace. 8.3. EMPLOYING DISABLED WORKERS

— Policy

Art.225-I-1°-f) Equal treatment Measures taken to promote the employment and integration of disabled persons Committed policy

Since the French law of 1987 on the obligation to employ disabled workers, SNCF and its social partners have formulated a policy to promote the recruitment of disabled persons and keep these persons in the workforce. Since 1992, six successive agreements have been signed to provide a basis and legitimacy for this active policy of integration, which includes continually improving the system, measures to not only promote employment but also training and adaptation to changes in jobs. Over the years, this work has produced tangible results: for example, aside from the civil service, the SNCF EPIC is the number one employer of disabled people in France, with more than 6 000 disabled employees from a total workforce of 150 000.

CHALLENGE 3



The new long-term agreement

Signed by the company and the unions, this agreement envisages the recruitment of 500 disabled employees between 2012 and 2015, including 100 on pilot work/study schemes with eventual hiring at the end of the training. There are also to be 100 on work/study schemes on a temporary basis, as well as around 300 trainees throughout the term of the agreement. This policy has an annual budget of around €10 million which is used, among other things, for adapting workstations, work on site accessibility, informing and raising awareness among key roles, as well as training.

Keolis takes a proactive approach with organisations that specialise in recruiting disabled persons in order to raise awareness about its jobs among these groups and collaborate on policies for adapting workstations.

— Objective

To hire 500 disabled employees between 2012 and 2015 (EPIC). Change in the cumulative number of disabled workers recruited between 2012 and 2013 – E


Art.225-I-1°-f) Measures taken to promote employment

and integration of disabled persons – E K G A

2013 2012 2011

Total number of workers with disabilities

7 802 7 132 6 844

Employment rate of workers with disabilities

4.1% 3.7% 3.3%


Two new guides for accessibility

SNCF recently published a guide to help with the arrival and integration of disabled persons and provision of

information to disabled persons. The accessibility of information for disabled employees is covered in a second guide aimed at all communications staff in the company.

Supporting the process with recognition of disabled worker status

At Keolis Bordeaux, a specific work group has been set up to address problems with retention of employees and recognition of disabled worker status (RQTH). This group is formed of four members from the HRD, the health department (doctor and nurses) and the welfare department (social worker). These members take stock every two months to identify all employees at risk of becoming temporarily or permanently unfit for work, and appropriate measures. The medical and welfare departments encourage all employees who could potentially be recognised as disabled to take action by putting forward specific support measures (adaptation of post, training, etc.) that could be taken to help them to continue working and avoid them becoming unfit for work. In addition to this approach, Keolis frequently calls on SAMETH for advice relating to adaptation of posts, financing for training and tutoring, or even support (skills assessment) if no adaptation appears to be possible.

A campaign to change views of disabled people

To overturn preconceived ideas about disabled employees, raise managers' awareness of the challenges of disability in the workplace and encourage ownership of the key issues, Geodis launched the "Tous concernés" (All In It Together) communication campaign in France This was a three-stage campaign, beginning with the "Tous concernés" poster to arouse interest, followed by distribution of a comic strip designed to dispel false preconceptions about disability. Lastly, a simple but comprehensive booklet was distributed to employees.

152

253

500

2012 2013 Objectif 2015

CHALLENGE 3



This addressed the various aspects of the issue: definitions, explanations of different forms of disability (disabilities may be visible, may develop or may be temporary), encouragement of those with disabilities to make their problems known (so that their working conditions can be adapted accordingly), and a presentation of the correct process. At the same time, managers received a guide covering a broad range of good practices for conducting recruitment interviews, integrating disabled employees into the team, and adapting behaviours to everyday practicalities, depending on the type of disability concerned.

CHALLENGE 3



9. COMMITMENT NO. 9: IMPROVING QUALITY OF LIFE IN THE WORKPLACE

Since 2011, improving quality of life in the workplace has been considered a key element in the overall performance and sustainable performance of the company. The commitment is to be continued in 2014: quality of life in the workplace is one of the managers' priorities in making a success of projects to transform the company. The key points are: — improving quality of life in the workplace (tough working conditions, working conditions, prevention of accidents and reduction of irritating aspects) — improving working relationships within teams (recognition, confidence) to get employees involved and develop their customer focus — giving a sense of meaning — developing cross-over between divisions and areas — promoting management of priorities — simplifying procedures

9.1. EMPLOYEE SATISFACTION AND ENGAGEMENT

— Policy

Excellence 2020 underlines the fact that improving social performance and employee satisfaction can be used to target overall performance. By putting people among the three major challenges for its company plan, SNCF has taken the decision to implement its vision of devoting an equal amount of attention to its staff as it does to its customers. In the words of the Chairman, "having satisfied staff means a better service for the customer". "Tempo" and "Allure" surveys

Conducted in June 2013 for the third consecutive year, the Tempo survey aims to measure employee engagement and satisfaction at SNCF Voyages, Gares & Connexions, SNCF Proximités, the Rolling Stock Division and Traction Division and, for the first time, cross-function divisions. 95 000 employees had the chance to respond anonymously to a questionnaire online about various subjects: working environment, remuneration, training and personal development, career opportunities, etc. A similar poll, "Allure", is used at SNCF Infra. Well-being in the workplace at Keolis

Employee commitment is one of the six focal areas for work in the Keolife project. The HR sponsor of this area supports the subsidiaries in France and internationally in implementing six plans: — attracting and integrating new employees — employee development — sense of belonging to the Keolis Group — well-being at work — local management model — reduction in absenteeism Employee satisfaction in Ambition 2018

Various projects have been initiated as part of the Geodis company plan "Ambition 2018", which was launched in 2013.

To measure how employees view their working conditions, Geodis conducted a survey of its entire global workforce for the first time in 2013, taking in 30 900 employees in 51 countries. The rate of participation was 81% for this first survey, which was translated into 27 languages. The overall rate of employee satisfaction in 2013 was an encouraging 86%. Action plans are to be deployed in 2014, for example on training and on skills development. Another interesting result was that 82.3% of employees said that they were satisfied with the action taken by Geodis on environmental and social issues. In 2013, Geodis also embarked on Investors In People (IIP) accreditation. This standard is a respected human resources and management benchmark.

— Objective

To improve social performance and employee satisfaction to target overall performance.


Art.225-II-1°-b) Rate of absence due to illness – E K G

A

2013 2012 2011

4.8% 4.6% 4.7%


Tackling absenteeism is at the heart of the Keolis project

Tackling absenteeism is one of the priority projects of Keolife, which was launched in 2013. This is not only a key issue in economic terms, but also in terms of service quality and reputation. Action plans have been defined for France and internationally in relation to the four following topics: — managerial vigilance — better organisation — improving occupational health — raising awareness among employees 9.2. IMPROVING STAFF SAFETY

— Policy

Art.225-I-1°-d) Health and safety Overview of agreements signed with trade unions or employee representatives

Safety is one of the fundamental aspects of the company's production and organisation. It is covered by the current standard for 2013-2015, the "national long-term plans for preventing occupational risks and for improving working conditions". It is therefore not handled as part of negotiation with social partners but as part of the company's regulations and no agreements relating to occupational health and safety were signed in 2013. Organisation of occupational health and safety across all areas of the company is the main focus of the Keolis Group company plan. The requirements are fixed through a standard that establishes four levels of

CHALLENGE 3



maturity in practices. 150 subsidiaries in France and internationally were analysed during the second half of 2013. This enabled each of the subsidiaries to define a plan of action precisely targeted at improving occupational safety and taking this forward. Keolis broadened its 5S system to cover safety in the workplace. The 5S system is a Japanese organisation method based on five main principles (sort, straighten, shine, standardise, sustain) which aims to continually improve the working environment in order to increase efficiency. Ensuring that employees are healthy and safe on sites and on the road is also a priority at Geodis. The OHSAS 18001 certification (Operational Health and Safety Assessment System) was upheld at Geodis in 2013, with 22% of sites certified. This management system for occupational health and safety is a strong weapon in the prevention of occupational risks. Geodis also continued its approaches for training and raising awareness of safety; aspects that are fundamental in preventing accidents. All drivers are also trained in eco driving.


Art.225-II-1°-d) Health and safety – E K G A

2013 2012 2011

Index of the severity of accidents in the workplace

(for 1 000 employees)11

1 903 2 024 -

Index of the frequency of accidents in the workplace requiring time off work, excluding accidents during

travel (for 1 000 employees)12

40.67 41.71 -

Number of declared cases of work-related illness13

499 499 626

9.3. QUALITY OF LIFE AT THE WORKPLACE

— Policy

Dealing with irritating aspects

This refers to recurring dysfunction that causes irritation within teams as part of everyday work. SNCF deals with sources of irritation that affect quality of life in the workplace and anticipates the human consequences of any project. The "Better quality of life at work" programme

Launched in July 2012, this programme lends coherence and visibility to the actions taken to improve this aspect over the years and goes a step further each year. Improving quality of life in the workplace aims to

11

Number of days of absence due to accidents requiring time off work,

excluding accidents during travel, divided by the available workforce multiplied by 1 000; average of rates declared, weighted by the number of employees; VFLI subsidiary is excluded. 12

Number of accidents in the workplace requiring time off work for

1 000 employees; average of rates declared, weighted by the number of employees; VFLI subsidiary is excluded.

13 No historical data for 2011 and 2012 subsidiaries outside Keolis.

address staff issues as part of the company's performance objectives. SNCF and the company's observatory for conditions in the workplace

The observatory for conditions in the workplace, which was established in 2009, brings together company representatives, trade union organisations and the National Agency for Improvement of Conditions in the Workplace (Anact) to discuss the chosen topics with each other. The observatory is tasked with monitoring the quality of life of employees throughout their careers and spotting any factors which could affect this quality, as well as drafting recommendations for the company. Local prevention plans at Keolis

Keolis implements adapted policies for each of its subsidiaries, based on the analysis of local prevention plans.

— Implementation in 2013 Special SNCF publication by Anact

The National Agency for Improvement of Conditions in the Workplace dedicated a special issue of the "Travail & changement" journal to the approach adopted at SNCF and its trials. A copy was distributed to all railway workers at the end of 2013. Trained to support the management chain

In 2013, 56 coordinators for "quality of life in the workplace" and internal consultants were trained on quality of life in the workplace and overall performance. This training equipped them with the knowledge required to support the management chain in implementing a front-line approach to quality of life in the workplace. These elements of the method enable them to take a united dynamic approach to primary prevention of occupational risks, prevention of social risks and research for the overall performance and sustainable performance of the company. "Well-being at work" project

A "well-being at work" project was launched as part of the Keolife initiative to address the following topics: organising work in a flexible and effective manner, recognising the work collective, offering a functional and healthy workplace and working environment, and supporting employees during difficult times. This project is included in action plans in France and internationally according to its relevance.

CHALLENGE 3



9.4. PREVENTING PSYCHOSOCIAL RISK (PSR) FACTORS

— Policy Single formal document

SNCF provides its employees with the tools to not only detect psychosocial risk factors but to also record them in a single formal document. Action is taken according to the five priorities defined in the reference document: know, understand, detect, prevent and support. A working group for assessing risk exists in each entity, and is tasked with conducting front-line PSR evaluations and drafting action proposals which are collected into a single formal document and then reproduced in the annual safeguard plan.

— Implementation in 2013 The entities are integrated into the approach.

In order to train local line managers in the company's risk prevention responsibilities, the Group has established an initiative entitled "Psychosocial risks (PSR): action through understanding". This awareness day was run by regional coordinators specialising in the quality of life in the workplace. All preventive action associated with this initiative converges into a single plan, which is monitored by OHS groups in the various sites. Well-being at the workplace: a large-scale assessment

With the support of the CSA institute, Keolis conducted an assessment of well-being at the workplace for Keolis SA and 17 of its French networks during the period 2010-2013. A summary of the issues encountered and potential means of improvement was presented to the France Group's committee in November 2013. 9.5. REDUCING CONFLICT

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining

— Policy

Art.225-I-1°-c) Social relations Organisation of social dialogue, in particular procedures regarding the provision of information to staff, and consultation and negotiation with them

Social dialogue is a vital cornerstone to the success of the business and the organisation of this is governed by the first chapter of the labour relations agreement between SNCF and its employees (Human Resources Reference RH 0001). The Management of SNCF and the employee representatives for ten European states

14 where the

SNCF Group operates signed an agreement on 6 December 2012 to create a European Works Council (EWC) group. Formed of 26 members

15, in 2013 the EWC became the

forum for dialogue and cross-border communication on strategies and changes at the Group in economic and social spheres. Overview of collective agreements

Contract policy within the EPIC had two eventful years in 2011 and 2012 with the signature of ten long-term agreements, which were deployed in full for the first time in 2013. Two categories emerge from these ten texts: — agreements relating to working conditions for railway workers (wages, premiums, housing, training, etc.) — agreements relating to "social responsibility" and openness (disability, gender equality, European Works Council, etc.). In 2013, the number of days lost per employee due to strike action was 1.2 for the EPIC (compared to 0.6 in 2012). The share of immediate consultations (DCI) not followed by a strike was 79% (74% in 2012). List of agreements

— Changes in pay – May 2011 – UNSA and CFDT — Convergence of work premiums for sedentary staff – May 2011 – CGT, UNSA and CFDT — Acceleration of the convergence of premiums – October 2012 – CGT, UNSA and CFDT — Housing – June 2012 – CGT, UNSA and CFDT — Training – December 2012 – CGT, UNSA, SUD-Rail and CFDT — Employment of disabled workers – December 2011 – CGT, UNSA, SUD-Rail and CFDT — Gender diversity and equality in the workplace – August 2012 – CGT, UNSA, SUD-Rail and CFDT — Creation of a Special Negotiations Group for the purpose of creating a European Works Council – July 2011 – CGT, UNSA, SUD-Rail and CFDT — Creation of a European Works Council – December 2012 – unanimity of representatives In 2013, three new agreements relating to supplementary social protection for contracted employees was signed in the SNCF EPIC: — Collective agreement substituting the company agreement of 14 November 2005 relating to continuation of pay, signed 6 November 2013 — Collective agreement introducing an insurance scheme for "incapacity, disability or death" for staff of the SNCF EPIC under the general social security scheme signed on 6 November 2013

14

Germany, Denmark, Spain, France, Hungary, Italy, the Netherlands,

Romania, the United Kingdom and Sweden. 15

2 German, 2 Belgian, 2 Danish, 1 Spanish, 10 French, 1 Hungarian,

2 Italian, 1 Dutch, 1 Romanian, 2 British, 2 Swedish.

CHALLENGE 3



— Collective agreement introducing a reimbursement scheme for health expenses for staff of the SNCF EPIC under the general social security scheme signed on 6 November 2013 Policy of subsidiaries

Keolis and Geodis have committed to social dialogue through the European Council of the Group and local representatives. Agreements have been signed in the two subsidiaries on issues of gender equality, diversity, tough working conditions and the employment of older workers. Various work was also conducted in 2013 in the Geodis divisions.

CHALLENGE 3



10. COMMITMENT NO. 10: IMPROVING EMPLOYABILITY

For SNCF, bringing the social compact up to date requires management and anticipation of the difficulties and opportunities linked to prolonging careers. Managing these key issues means introducing training to enable employees to keep up-to-date not only with changes in the content of the work and techniques, but also with changes on the markets. In this challenging area, SNCF therefore evaluates, trains and finally plans career paths for employees, always with a Group-led approach. The new training agreement is intended to: — reduce the share of employees that are over the age of 50 and have not received training in the last three years by 20% over the next three years — offer individual training leave for extended periods — train young people via recruitment with work/study schemes 10.1. TRAINING FOR ALL

— Policy

Art.225-I-1°-e) Training Training policies

The 150 occupations practised by SNCF's employees are backed by solid career development paths. A successful career in the rail industry requires initial basic training, followed by continuing education and credentialing programmes to hone skills and gain promotion: some 70% of SNCF managers are promoted from field positions.

The SNCF University plans and offers senior and top managers in the Group development programmes and support at a high level. These programmes aim to enrich the most relevant key skills for the company's challenges and managers' needs. The SNCF University has set up a digital platform compiling its full range of training: multimedia teaching courses for key skills (e-learning, online conferences, videos, seminars, etc.), advanced programmes for cross-disciplinary subjects such as innovation, personal development opportunities and programmes from the Institut d'Exploitation Ferroviaire (railway operation institute). Bringing employees up to professional level – a factor for development and motivation – has always been a priority for Keolis. In 2002, the Group founded its own internal training institute, which widened its international reach in 2013 with the creation of a Training Academy in Hyderabad. In 2013 Keolis dedicated 3.49% of its payroll in France to training – an amount that is twice what is required by law and that builds on the budget from 2012 (3.46%). With a view to improving the skills and employability of staff, Geodis extended the use of the G-Campus tool, which allows customised e-learning training to be developed. Since its launch in 2011, more than 83 000 hours of training have been delivered in over 50

countries. Individual training leave for extended periods

Individual training leave enables all employees to pursue training at their own initiative and on their own behalf during their working lives. SNCF and the trade unions aimed to develop individual training leave that goes beyond the maximum periods set out in the French Labour Code. This was accomplished with the agreement of 30 April 2012 which establishes individual leave for extended periods of up to 36 consecutive months. This applies to secondary, higher and university education and training in line with the national directory of professional certifications.


Art.225-I-1°-e) Total number of training hours (in

thousands)16

– E K G A

2013 2012 2011

7 036 7 110 6 444

10.2. SUPPORTING OLDER WORKERS

— Policy

SNCF has introduced plans for employment of older staff (2010-2011 and 2012-2014) in order to comply with legal obligations on management of older employees and held the necessary consultation on the generation contract in 2013. The number of staff over 45 is constantly increasing. Currently 40% of employees are over 45, of which 7.9% are over 55. The aim of the generation contract programme for 2014-2015 is to have 10% of employees aged over 55 at 31 December 2015. In order to achieve this goal, the Group has based its policy on three courses of action: changing attitudes to older staff in the company; career security or how to help older staff assess their careers and enter training; and finally, offering assistance for the transition between work and retirement, in particular managing knowledge transfer by developing mentoring schemes. Keolis signed an agreement on the generation contract in December 2013. As part of this, the company has committed to implement measures to promote the employment of young people, job retention and recruitment of older workers, as well as encouraging knowledge transfer. This policy is not new but is strengthened by this agreement. In 2013, Geodis put agreements in place in the divisions and at its head office on the generation contract with the aim of promoting an intergenerational approach.

16

Historical data for 2011-2012 is only available for the EPIC and

Keolis.


10.3. TRAINING FOR YOUNG PEOPLE — Policy

SNCF is particularly committed to training and integrating young people into the world of work. The Group offers over 3 000 new work/study contracts every year to young people who wish to continue studying while also acquiring experience at the same time. The apprenticeship or professional training contracts, coupled with support from professionals within the company, means that the young people on these work/study programmes are quickly ready for work and a smooth transition into the world of employment. SNCF prioritises training in technical areas such as railway installation or rolling stock maintenance and traffic control, but also takes on students who are pursuing more general occupations: business, management, communication, etc. The aim is to hire increasing number of employees on work/study programmes for long-term posts when they graduate, in order to reach a recruitment level of 1 000 former work/study candidates per year in 2015. Alongside this, the company recruited around 500 young people on government assisted contracts in 2013, with the aim of ultimately giving them long-term positions. Keolis SA is aware of the difficulties involved in attracting and keeping young employees and has been developing a voluntary policy for several years now through its "nursery" programme in the three fields of operations, maintenance and marketing. In 2013, this programme attracted 19 participants. At 31 December 2013, there were 60 nursery graduates still working in the Group. The young graduates (with baccalauréat and two to five years of higher education) have various training backgrounds and are recruited on permanent contracts. They complete one year of specific practical and theoretical training for careers in operations. Geodis recruited over 200 young people on apprenticeship or professional training contracts in 2013.

— Implementation in 2013 SNCF Infra stands out at baccalauréat level

With 2 326 work/study contracts (from which 943 employees were recruited in 2013), SNCF Infra is firmly committed to this model. This type of contract accounts for 6.37% of its total workforce. 96% of the 56 SNCF Infra apprentices (from advancement schemes piloted by the division in partnership with national education establishments in particular) who took their professional baccalauréat in 2013 (across all specialisms) passed the exam. This is an excellent result compared to the national average of 78.6%. Of all those who qualified, 56% were then hired within SNCF. The K in Keolis

Keolis improved its visibility and raised its profile with young engineers by launching the "K in Keolis" business game. The tool was developed in house and aims to publicise this sector and assist recruitment by attracting targeted applications. It turned out to be a winner for Keolis: 73% of players have already submitted an application.

10.4. CAREER MOBILITY POLICY

— Policy Internal mobility for employees

SNCF has introduced a number of training schemes geared towards encouraging people to stay mobile, thanks in particular to "job mobility centres". The aim of these centres, which were set up in each SNCF region in 2010, is to help manage movement of staff as a result of organisational changes and also to meet the demands of staff and managers. The mobility assistance scheme aimed at moving employees from the regions to Greater Paris was made permanent in 2012 and became fully effective in 2013. Career management for managers: development centre

Since it was opened in January 2010, the management development centre has assisted many managers in their personal career development plans each year. The centre is a chance for managers to inject new life into their careers, strengthen their skills, convert to another profession, go on motivational and educational temporary assignments or even help them return to the company after a long secondment. Keolis policy

Keolis has introduced an incentivising and proactive policy to encourage internal mobility (national and international) and moves to SNCF. In 2013, this affected 219 posts out of the 427 management positions filled in France. These internal moves can be made between all company divisions. Geodis Executive Masters

The Geodis Executive Masters programme has been training managers in senior management functions for three years, in partnership with the ESCP Europe business school. 13 managers graduated in 2013, bringing the total number of graduates to 40 since the programme was launched.


Keolis Human Resources Information System

Keolis has introduced a Human Resources Information System (HRIS), with the first modules for personnel administration and recruitment being implemented in the first quarter of 2013. These were followed by the career development module in the third quarter. The tool is only for French managers in its initial stage and will be rolled out internationally in phases between 2014 and 2015. The system ensures consistency in terms of management of employees (mini CV, organisation chart, annual targets, performance review) and therefore enables a more comprehensive and proactive approach to performance and talent.

CHALLENGE 4

CONTRIBUTING TO REGIONAL DEVELOPMENT


SNCF is present across the whole of France and in 120 other countries, and is confronted with a range of problems related to social cohesion in these areas. The Group therefore does what it can to strengthen ties. Inclusion programmes have been put in place to aid the integration of the long-term unemployed or unqualified young people. SNCF works to combat the social exclusion and extreme poverty seen around stations and enables people to carry out community service programmes and remedial orders. The company also contributes to the social and solidarity economy by ensuring its procurement adheres to solidarity principles, working with specialised associations or companies offering work for social reintegration. Its purchasing policy makes it a major economic partner in the regions, notably for 22 500 SMEs, indirectly generating around 100 000 jobs. Alongside local authorities and public services companies, SNCF is investing its efforts in the creation of Multiservice Information and Mediation Points (PIMMS), helping young people with government assisted contracts, and encouraging entrepreneurship with SNCF Development. As both employer and purchaser, SNCF plays a major role in supporting the most vulnerable people as part of its activities, and by aiding the development of the areas where the company operates.

CHALLENGE 4



11. COMMITMENT NO. 11: PROVIDING SUPPORT TO THOSE FACING DIFFICULTY

11.1. SOCIALLY RESPONSIBLE PURCHASING — Policy

The SNCF Purchasing Division deploys its vision of responsible purchasing through major commitments such as integrating companies from the social economy and solidarity economy in its calls for tenders, as well as companies that employ disabled or long-term unemployed people.

— Objective

To develop socially responsible purchasing to reach €50 million in 2017.

— Change in indicators Art.225-I-3°-c) Total amount of socially responsible

purchasing (in € million) – E A

2013 saw a positive trend in socially responsible purchasing (+26%) with a significant improvement in the three components: purchases from the disabled workers sector (€12 million), inclusion clauses for suppliers (€9 million) and direct inclusion (€11 million). This trend is linked to the growing engagement of buyers and internal clients.


Geodis calls on the French Paralysis Association

In 2013, Geodis worked with the Enterprises department of the French Paralysis Association (Association des Paralysés de France – APF) to fulfil its needs for printing, graphic design and mailing. In addition to a clear affinity in terms of values, the APF Entreprises department was able to put forward a convincingly competitive case on the basis of cost and quality, and is now an approved supplier.

11.2. INTEGRATION INTO WORK — Policy

In 2008, SNCF signed a framework agreement with "Chantier-école", the National Network of Inclusion Groups and Trainers, which aims to jointly develop inclusion projects across France. This saw 227 projects to renovate and maintain SNCF property and provide a better environment for travel. Since the scheme was launched, it has provided support for the employment and social inclusion of 2 600 people. SNCF has been a partner of Promévil (professional mediator association) since 1996. 126 mediators are employed on government assisted contracts with Promévil, working on the SNCF Transilien network: they are on eight sections of lines every day accompanying over 46 000 trains per year and serving 72 stations. Their mission is to diffuse conflict situations, prevent antisocial behaviour, guarantee a calm passenger environment and help ensure that trains run on time. SNCF and Promévil signed a "gateway" charter on 28 March 2012, which aims to allow a number of social mediators initially recruited by Promévil to become SNCF employees. Keolis also signed a "gateway to employment" agreement with the Médiation Rennes Métropole association and has recruited 26 mediators in its subsidiaries.

— Change in indicators Art.225-I-3°-a) Number of government assisted

contracts – E A

2013 2012 2011

845 1 055 586


Adapted daily work

In the second half of 2013, SNCF and local community and public organisations in Bordeaux set up the Tapaj system for adapted work paid by the day, which is aimed at vulnerable people. This group of people in very difficult situations, who are often homeless, expressed the need to find part-time work that is paid as quickly as possible. This is helping to limit begging, in particular around the Saint-Jean station. SNCF gives those who sign up to the scheme maintenance tasks in outside areas, which can be seen by customers and local residents/businesses. Renovation of the underground passage at La

Ferté-sous-Jouarre

In the first half of 2013, SNCF worked in partnership with the local association ACIF (Association de Concertation et d'Initiatives de Canton de La Ferté-sous-Jouarre) to renovate the underground passage at the station. This inclusion project improved the site environment.

25 25

32

50

2011 2012 2013 Objectif 2017

CHALLENGE 4



Bicycle repair workshops

The association "La Sauvegarde 95" employed ten people as part of a social inclusion scheme to run 80 bicycle repair workshops in four stations (Cergy-le-Haut, Cergy-Saint-Christophe, Pontoise and St-Ouen-l'Aumône) between April and November 2013. 11.3. TACKLING SOCIAL EXCLUSION

— Policy

SNCF stations have traditionally been a daily focal point for people who are socially excluded or homeless. With the support of public authorities, SNCF relies on a vital network of community organisations to provide a number of measures to help and care for people in difficult situations in their stations: social intervention patrols, offering people a place to go near to the stations, social mediation work, support, integration into work, etc. Across France, 70 partnerships of this type cover more than 50 stations. Partnership with FNARS IDF and the City of Paris

In July 2011, SNCF signed an agreement with the City of Paris and the National Federation of Social Inclusion Associations in the Ile-de-France region (Fédération Nationale des Associations de Solidarité et de Réinsertion Sociale – FNARS IDF) to improve care for socially excluded people in the six main stations in Paris. The agreement will see SNCF develop six new inclusion projects at the Paris stations by the end of 2015. The agreement is the result of the "Work in stations" project, which is financed by the European Commission and brings together Italy, Belgium and France. It aims to suggest and develop innovative models of economic co-operation that use employment to achieve social inclusion for vulnerable people around stations. European co-operation

SNCF works with other railway networks in Europe to implement new solutions to tackle homelessness (European "Hope in station" and "Work in stations" programmes). In 2008, European rail companies signed the European and Solidarity Station Charter with the aim of encouraging discussion on the topic of homelessness in stations. The rail companies of 12 stations are currently members: France, Italy, Belgium, Luxembourg, Poland, Portugal, Denmark, the Czech Republic, Slovenia, Romania, Bulgaria and Norway.

— Implementation in 2013 SNCF residence becomes an emergency accommodation centre

In December 2012, SNCF offered the government 120 accommodation places in Drancy (93) and Marseille, in addition to the 250 reserved for people in need that it already accommodates at its locations. The Group has opened one of its former residences in Ivry to homeless people. The residence is next to the railway tracks and was closed three years ago. Since the start of the year, around fifty vulnerable men have been accommodated in the renovated residence's 30 rooms.

Geodis employees get involved

In the aftermath of the tornado that struck Oklahoma in May 2013, Geodis employees wanted to do something to help. The Aid & Relief Fund was therefore created to help over 1 300 households whose homes had been destroyed. The company is also involved in social support initiatives all over the world through the volunteer efforts of its employees. These initiatives include entering and supporting a team for the RopaRun 2013 relay race between France and the Netherlands to raise funds for cancer research, and supporting charities such as the Children's Cancer Fund in Hong Kong, and Alice for Children in Italy. Duvets for those most in need

When renewing bedding stocks for night trains, SNCF and Geodis worked with local authorities and charities in a duvet donation scheme. The recipients were local authorities, which distribute the duvets in accommodation centres, and charities such as the Red Cross, Secours Populaire, Samu social de Paris and Restos du Cœur. The SNCF covers were stored and packed by Geoparts, and Geodis Calberson provided the transport. 11.4. TACKLING REPEAT OFFENDING

— Policy

In France, community service is a court order which replaces a custodial sentence, and involves working a certain number of hours (40 to 210) without pay for associations or public entities. SNCF's involvement in this work to prevent and tackle repeat offending enables offenders to become aware of the consequences of their actions and get an insight into railway operations and the risks involved. This involvement also helps with the success of the measures taken to improve safety. SNCF and the French Ministry of Justice concluded a new agreement in September 2011 to prevent repeat offending.

— Implementation in 2013 "Green worksites" to combat repeat offending

Between the spring and autumn of 2013, SNCF Infra conducted four educational initiatives with the French Ministry of Justice. The "green worksite" educational initiatives take on offenders who have been given community service orders in order for them to carry out selective waste management with a view to economically viable recycling.


12. COMMITMENT NO. 12: CONTRIBUTING TO LOCAL ECONOMIES

As an employer and purchaser, SNCF plays an important role in regional development. To extend its contribution further, SNCF has launched SNCF Development, a specialised subsidiary geared towards providing economic support to regions. SNCF also supports young people in inner-city areas as they enter professional life with a large number of initiatives such as an equal opportunities week or the Geodis partnership with the national business council for inner-city areas (Conseil National des Entreprises pour la Banlieue – CNEB). 12.1. PURCHASING: GIVING PRIORITY TO SMES

— Policy

As part of its efforts to strengthen and invigorate the economic fabric in the regions, SNCF embarked on an ambitious roadmap in 2013 for CSR & regional purchasing (purchasing from SMEs and the social and solidarity economy) and created a dedicated position for a CSR & regional purchasing manager to steer this. The commitments of the roadmap highlight in particular the simplification of the purchasing rules and processes, to make it easier for SMEs to access SNCF contracts, and pursuing responsible relationships with suppliers by renewing the "responsible supplier relations" accreditation. Another key part of the company's responsible purchasing policy is SME mediation, which has a success rate of 88%. This is the percentage of contentious issues that are resolved by reaching out of court settlements which meet both parties' interests.

— Objective

To make 30% of purchases from SMEs in 2017.

— Change in indicators Art.225-II-3°-c) Percentage of purchases from SMEs –

E

The percentage of purchases from SMEs fell by one point in 2013 but the total (€1.9 billion) rose by 5% in comparison with 2012.

12.2. SNCF DEVELOPMENT ENCOURAGES ENTREPRENEURSHIP

— Policy

SNCF Development – the subsidiary for economic development and support of entrepreneurship in the Group – celebrated its two-year anniversary in January 2013. The subsidiary's aim is to work with local authorities to recycle and transform former railway business sites into areas for economic development, and in particular to work in historical hubs of activity (Nord-Pas de Calais, Lorraine, Haute-Marne) to minimise the impact that any relocations might have on employment and the region. In 2013, SNCF Development awarded grants totalling over €2 million. Since it was created in 2011, SNCF Development has supported 86 companies, mainly in Chalindrey-Pays de Langres (Haute-Marne) and Calaisis (Pas de Calais), with total funding of €3 million – in the form of equity loans, convertible bonds and grants – and 609 planned new jobs. The other mission of SNCF Development is to support Group employees who want to change their career path as they launch their own businesses or take over and run existing companies. It works alongside the SNCF Human Resources Division and matches the employees up with experts who can advise them in their plans. 56 employees have received help with their new career directions since 2011. 12.3. PIMMS: MULTISERVICE INFORMATION AND MEDIATION POINTS

— Policy Art.225- I-3°-a) Regional, economic and social impact of operations on society

Ideal places for social mediation, PIMMS (Multiservice Information and Mediation Points) are located in inner-city or rural areas and enable residents to benefit from personalised support for all everyday tasks. The PIMMS provide services to complement the traditional offering from their partners (the state, local authorities and public and private operators) and act as an interface to greater autonomy for the population while also making public services more accessible. SNCF and Keolis have an involvement with this points, which are sometimes located in stations.


In 2013, the PIMMS network experienced strong growth with 20% more information points, taking it from a total of 45 points to 54 points already up and running and five soon to be opened. Like the other partners, SNCF has of course made a major contribution to this development as it is a partner of 51 PIMMS, nine of which are located in stations. At 31 December 2013, 20 subsidiaries of the Keolis Group were also partners of 38 PIMMS.

21% 22% 22%

30%

2011 2012 2013 Objectif 2017


12.4. SUPPORTING EMPLOYMENT IN PRIORITY AREAS

Principle 6: Businesses should uphold the elimination of discrimination in respect of employment and occupation

— Policy

Working for youth employment

SNCF has set up a partnership with the Agency for Entrepreneurial Diversity (ADIVE) aimed at encouraging initiatives launched by young people in priority areas. Along the same lines, SNCF has also been working side by side with the scheme "Nos quartiers ont du talent" (inner city talent) over the summer, and has put up posters about the work it is doing to improve equal opportunities on 500 boards in stations in Greater Paris, Rhône-Alpes, Aquitaine and Midi-Pyrénées. This project is for young people from working-class areas who have a baccalauréat and four or more years of higher education and aims to help them find work, in particular by enabling them to meet managers from participating companies. Recruiting in areas prioritised in urban policy

SNCF is working to improve employment in working-class areas by organising "Equality & Skills meetings" to interact with the young people in question. The company is also involved in a number of other initiatives, for example as part of the "Espoir banlieues" (inner-city hope) initiative. In 2013, SNCF recruited 18% of its staff from priority areas, through ZUS (disadvantaged urban areas) and CUCS (urban social cohesion contracts). 500 government assisted contracts

On 30 October 2012, Guillaume Pepy, Chairman of SNCF, and the French Prime Minister Jean-Marc Ayrault signed a framework agreement for the company to recruit at least 500 people on government assisted contracts in one year. These contracts concern unqualified young people aged between 18 and 25 from disadvantaged areas who are therefore able to benefit from real employment support with a view to long-term recruitment. Talking to young people with Transilien

Transilien is deploying a growing number of employees to deal with the increasing traffic volume in the Greater Paris. Given that recruitment can sometimes be a difficult process, the company has decided to go out and meet young people directly through their schools and colleges to introduce to them the opportunities in the world of railways.

Geodis supports young people in inner cities

Geodis has signed an agreement with the French Ministry for Labour, Employment and Health and the Ministry of Urban Affairs to support the employment of young people in priority areas. The aim is to develop relationships between companies and the people who live in these areas. Young people in such areas are seen as an excellent pool of skills for French companies and should be given greater consideration as a real force in the French economy. With this in mind, Geodis has signed up to a partnership with the national business council for inner-city areas (Conseil National des Entreprises pour la Banlieue – CNEB) and is working at grassroots level with local missions and job centres.


02— MEANS AND METHODS


1. CSR GOVERNANCE 2. GROUP SUSTAINABLE DEVELOPMENT ECOSYSTEM 3. RESPONSIBLE BUYING AND GOOD PRACTICES IN PURCHASING 4. PLAYER IN NATIONAL AND EUROPEAN DEBATES 5. STAKEHOLDERS 6. PARTNERSHIPS 7. INNOVATION 8. PATRONAGE

57 58 60 63 65 68 70 71

MEANS AND METHODS


Putting the principles and obligations linked to corporate social responsibility into action requires the combined efforts of those involved, appropriate tools and a process dedicated to this priority. To take CSR requirements into account, the Group, divisions, subsidiaries and entities – at a more "local" level – define and launch tailored plans of action and ensure that they are followed. A specialist and structured network of managers and experts is mobilised for this purpose.

MEANS AND METHODS


1. CSR GOVERNANCE

1.1. ALL-ENCOMPASSING GOVERNANCE Company policy decisions and CSR initiatives emerge at the highest management level from the work of the SNCF management team members, who examine interrelated issues, such as new modes of transport and energy in particular. The management team may, if necessary, allocate assignments and specific subjects to the Sustainable Development Department. The 18 members of the SNCF Board of Directors exercise their usual prerogatives in the area of sustainable development. The Committee for Socio-Economic Balance gives a more specific opinion on the strategy and CSR performance. The Group also sets up discussions and meetings with other stakeholders and actively uses its nationwide network to support the rollout of its programmes and local initiatives which affect all the different parts of its business. At the same time, the company has tools and indicators for measuring and evaluating the progress that is being made. 1.2. FOUR CHALLENGES, 12 COMMITMENTS CSR at SNCF revolves around four challenges and 12 commitments that drive all activities and fields: one challenge focuses on business to enable sustainable mobility for all, one on the environment to reduce our environmental impact, one on employees in order to update our social compact, and finally, one on communities in order to assist regional development.

The SNCF Corporate Social Responsibility Report

SNCF has been compiling sustainable development reports for many years in order to share information on its CSR performance with its stakeholders. The CSR Report was expanded to the Group from 2010 in anticipation of the Decree 2012-557 of 24 February. As of 2013, it is being gradually integrated in the financial report to achieve total integration in 2017 (2016 financial year).

1.3. ADAPTATION IN SUBSIDIARIES The five divisions of SNCF, along with Keolis and Geodis, have a CSR policy in line with the specific aspects of their respective fields.

In 2012, the Keolis Sustainable Development Department mobilised ten subsidiaries in order to identify improvement measures and areas for further progress on the basis of the standard ISO 26000. The identified topics were integrated into the corporate plan in 2013.

Backed by five years of experience in sustainable development issues, Geodis progressed its sustainable development approach at the end of 2012. This is currently set out in the "Ambition 2018" general social responsibility policy, which is structured around the four stakeholders of the Group (employees, clients, partners and local government). In 2013, Geodis also launched STS (Stakeholders' Total Satisfaction), which is based on the assertion of seven shared principles of action referred to as the "seven golden rules", which include "being a responsible business".

MEANS AND METHODS


2. GROUP SUSTAINABLE DEVELOPMENT ECOSYSTEM

Principle 8: Businesses should undertake initiatives to promote greater environmental responsibility

2.1. COORDINATING CORPORATE SUSTAINABLE DEVELOPMENT POLICY The Sustainable Development Department drives, coordinates and oversees the Group's sustainable development policy. The department works in cross disciplinary fashion together with the company's Head Office, different areas, public authorities, staff and partners. Its responsibilities also cover reporting as well as rollout and use of the Sustainable Development Information System (SIDD). This software enables collection and consolidation of the data required for non-financial reporting, while providing the operational managers with the necessary measurement instruments for their work. The teams use CSR policies that are adapted to their activities in the five Group divisions and in the subsidiaries. Relay network in the regions and entities

In the regions, the regional environment coordinators (COREN) coordinate and oversee environmental management. The Social Commitment Managers (MES) are each responsible for the plans of action for prevention, integration, the fight against exclusion, and also for the SNCF Foundation in the regions. The Local Environmental Coordinators (CLE) ensure that national environmental programmes are implemented and coordinate action at entity level. In line with the responsible purchasing policy and the policy for Group suppliers, the Sustainable and Socially Responsible Purchasing Coordinators (CADES) help buyers to select the suppliers who are most committed to CSR. Keolis and Geodis have also developed a network of spokespeople on CSR topics in their subsidiaries. 2.2. SUPPORT FROM EMPLOYEES

— Policy

The various CSR networks raise awareness among employees of the Group and encourage them to get involved in projects and specific measures. CSR policy at SNCF Voyages: "A shared journey"

This policy is intended as a source of motivation, meaning and pride for employees and rests on the culture of solidarity within SNCF. It highlights the many

examples of social commitment made by employees, such as the Information Volunteers (in red vests), who are on the ground to lend a helping hand where needed. Employees are also encouraged to get involved in the division's social commitments. Keolis promotes the exchange of best practice between its various subsidiaries

The major networks meet around once a year to share their experiences in environmental matters. In 2013, the host subsidiary was Keolis Sverige. There was also an opportunity to share good practice at the KeoAwards. In 2013, various projects were nominated for themes ranging from energy savings to well-being in the workplace and customer service.


SNCF Group Trophies

The 2013 Group Trophies recognised the value of the work by several teams in the areas of energy savings, recycling, integration assistance and the quality of life at work. CSR evidence database

The CSR evidence database is an online platform that contains 400 examples of work and best practice on the Group's CSR challenges across all areas. The platform went live in September 2013. Since then new evidence suggested by teams at different production sites and divisions has been added. "A shared journey"

Last November, around 220 employees took part in the "high speed knitting" project, organised in partnership with the brand innocent to raise money for the association "Les petits frères des Pauvres". To raise awareness of CSR challenges among employees and to get them involved in the work, SNCF Voyages also launched an internal communication campaign during 2013 (posters, marketing cards, animated video, etc.) and set up a group dedicated to sustainable development topics on the internal social network TGV&CO. 2.3. STAFF TRAINING Art.225-I-2°-a) General environmental policy Organisation of the company to take environmental questions into account

SNCF sets up and provides a number of training modules aimed at its employees, ranging from the overall vision of sustainable development to specific training, adapted to each area. Since 2012, the top echelons of management have had a specific module on "The challenges of sustainable development: understanding and implementing sustainable development policy at SNCF". 157 managers have already completed this training. In 2013, an online module to raise awareness of CSR was tested for deployment at the start of 2014. Targeted at all employees, its aim is a shared vision of the sustainable development challenges and to define corporate social responsibility. This module is included

MEANS AND METHODS


in the training courses for all communications staff under the umbrella of the "Responsible communication" project launched with 500 communications employees in the company. The "Environment Campus" offers ten courses for employees involved in the company's environment network: 440 employees benefited from the 71 sessions organised in 2013. SNCF Infra employees also have online access to the modules on the topics of waste and the pollution of water and soils. As part of its national education partnership, SNCF organises training sessions within the "Passenger and citizen" programme. As part of this, SNCF staff volunteers can be trained in the knowledge and skills required to work in schools and teach young people about safety and the "citizenly" behaviour in the rail environment. Since 2009, seven training modules have been developed for various employees in Purchasing (buyers, managers, quality specialists, sustainable and socially responsible purchasing coordinators) and 454 people have been trained. A new training course was developed in 2013 for internal specifiers to ensure that CSR is taken into account in purchasing projects. The purchasing quality officers have completed three training sessions using the EcoVadis CSR evaluation tool. At Geodis, the G-Campus tool offers tailor-made training via e-learning and notably offers a module on preserving the environment and on safety. Since it was launched in 2011, more than 83 000 hours of training have been completed on a wide range of topics, such as professional skills, preservation of the environment and safety.

MEANS AND METHODS


3. RESPONSIBLE BUYING AND GOOD PRACTICES IN PURCHASING

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights Principle 2: Businesses should make sure that they are not complicit in human rights abuses Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining Principle 4: Businesses should uphold the elimination of all forms of forced and compulsory labour Principle 5: Businesses should uphold the effective abolition of child labour Principle 6: Businesses should uphold the elimination of discrimination in respect of employment and occupation Principle 8: Businesses should undertake initiatives to promote greater environmental responsibility Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery 3.1. RESPECT FOR ETHICS: A COMPLETE SYSTEM

— Policy Art.225-II-3°-d) Fairness of practices to prevent corruption Art.225-II-3°-e) Other measures to promote human rights

SNCF is keen to ensure that ethics are respected in all company areas and activities and has been using a dedicated business ethics system since 2008. This was extended in 2011 with the publication and circulation of an Ethics Guide to replace the Code of Conduct. This new guide contains six principles: best practice for business; compliance with the law; principles of competition; respect for individuals; standards of conduct; and respect for confidentiality. The Ethical Purchasing Charter has governed relationships with suppliers since 2008. The "Group Ethics Committee", headed by ombudsman for national education and higher education Monique Sassier was established in 2012. It is made up of officials from the EPIC and representatives of the SNCF Group and is tasked with handling all matters relating to ethics in the Group and putting forward opinions and recommendations. A network of 27 ethics contacts from the various divisions and areas has been formed. Alongside this, SNCF is taking stronger action against all forms of discrimination with a dedicated whistleblowing scheme. Since the end of 2012, employees have been able to report discriminatory behaviour via the discrimination whistleblowing scheme by post, e-mail or telephone. Lastly, the Ethics Division at SNCF organises regular awareness campaigns with employees.

Keolis has set up its ethics and compliance network with an audit and conduct committee, an internal committee and ethics and compliance correspondents, a data protection officer and an ethics officer. Employees can also use the Group's whistleblowing system. Geodis drew up a Code of Ethics in 2009 which is distributed to all employees and accompanied by e-learning modules to raise awareness of ethics. Two annexes have since been added: one in 2011 dedicated to compliance with competition law and one in 2012 on compliance with anti-corruption legislation. The latter, which is also accessible on the Geodis intranet, recalls the prevailing laws and sanctions and sets out best practice for preventing any risk of corruption. An Ethics Committee was also established in 2009 with responsibility for business conducted with the different stakeholders of the Group. The Ethics Committee monitors the effectiveness of policies and procedures, correct distribution of these, prevention and reporting. It meets four times a year.

— Implementation in 2013 Recommendations by the Ethics Committee

These recommendations relate to diversity and the battle against discrimination, with a focus on potential risks arising from transfer of personal or professional information via social networks or other support instances. The stance on the principles of secularity and neutrality within the SNCF EPIC has been issued and these elements have been validated by the Executive Board. In accordance with the Committee's recommendation, the Ethics Division at SNCF has taken charge of counter-discrimination files from June 2013. Numerous awareness and coordination measures

An interactive awareness module illustrating the six principles of the Group Ethics Guide went live at the end of November 2013 on the new "Ethics" intranet pages of SNCF, which were created in spring 2013. The module can be accessed by all employees and includes animated presentations and videos with examples of real life situations. A collection of practical information sheets has also been launched and distributed to more than 10 000 managers within the company. The first two information sheets were on conflicts of interest and psychological harassment. Measures to raise awareness have been increased, in particular for HR divisions, rolling stock entities and zonal safety divisions. Practical guides aimed at managers and HR officers have been compiled on diversity and secularity. Lastly, the Ethics Division at SNCF conducted 24 surveys in 2013 on individual or collective behaviour by employees that contradicted ethical principles. Keolis Guide for Ethical Business Conduct

As part of the implementation of its "Konformité" compliance programme, Keolis reinforced its commitment to ethics on 1 March 2013 with its new Guide for Ethical Business Conduct. This document addresses five major topics: respect for regulation,

MEANS AND METHODS


integrity in conducting our activities, relationships with commercial partners and suppliers, protection of Group and third-party interests, and respect for data processing rules. Each principle is explained simply and enhanced with examples or practical information sheets that enable all Group employees or any person acting on their behalf to put them into practice in everyday life, as well as to find solutions in delicate situations. The guide, approved by the Keolis Group President and the Executive Board, is intended as a basis for an ethical and responsible culture for all Group employees and calls on them to respect and promote this culture in their business. 3.2. RESPONSIBLE PURCHASING SNCF monitors the application of the ten Global Compact principles relating to human rights, employment rights, the environment and the battle with corruption. SNCF uses its policy for international purchasing to monitor respect for the freedom of association and the abolition of forced labour and child labour in greater detail.

— Policy

Art.225-I-3°-c) Subcontractors and suppliers Taking social and environmental challenges into account in purchasing policy

By developing a responsible purchasing policy, SNCF is able to take account of the impact that its purchases have on the economy, the environment and society throughout the lifecycle of the products or services. SNCF incorporates these environmental and social criteria into the purchasing process – in choosing suppliers, writing specifications, grading tenders or making deals. Linked to the Group Purchasing Division, the Responsible Procurement Division comprises a team of 12 and coordinates a network of 22 Sustainable and Socially Responsible Purchasing Coordinators (CADES). Since 2008 it has been responsible for defining and deploying the Group's responsible purchasing policy. For Geodis, suppliers and subcontractors constitute a strategic tool for improving its CSR performance. For example, 87% of the Group's greenhouse gas emissions are generated by subcontractors. For France, Geodis purchases (including subcontracting) in 2013 rose to over €2 billion. Environmental and social criteria have been systematically incorporated into the company's tendering conditions, assessment templates and model contracts since 2011 and have a decisive influence in determining the choice of a new supplier or a contract renewal. Art.225-II-3°-c) Subcontractors and suppliers The importance of subcontracting and taking into account suppliers' and subcontractors' CSR

Since 2011 the SNCF Purchasing Division has been taking steps to manage CSR risks by identifying the most challenging areas of activity for environment, health/safety and respect for fundamental rights or

working conditions. SNCF has launched an assessment programme for the areas most at risk to evaluate the CSR performance of its suppliers via the EcoVadis platform and support less experienced companies in making continual improvements through progress plans and audits. By doing so, SNCF is taking on its broad responsibility as a major contractor and using the domino effect to encourage its 500 main suppliers to improve their practices and those of their subcontractors. Geodis joined the EcoVadis platform in 2011. This evaluates commitment to CSR from its main suppliers (property, temporary employment, fuel, packaging, operational consumables, IT, vehicles, etc.) and road, sea and air transport subcontractors. Analysis of the campaigns reveals that 73% of the suppliers evaluated had the "confirmed" level of above for CSR commitment (average score 53/100). Art.225-II-3°-d) Fairness of practices Measures taken to prevent corruption

SNCF buyers follow a code of ethics set out in the Ethical Purchasing Charter. This defines purchasing as a regulated (free access to calls for tenders, equal treatment of suppliers, and transparent, traceable procedures), planned (to identify our needs accurately, spark innovation, and ensure the availability and quality of products), and collective (without managed purchasing, teamwork is impossible). Each buyer must show respect for confidentiality, responsibility, transparency, integrity and excellence. Art.225-II-3°-d) Measures taken for the benefit of consumer health and safety

The purchasing policy aims to reduce the health and environmental impact of products that are required for our business and come into contact with our clients. SNCF is working to reduce hazardous materials, and in particular carcinogenic, mutagenic and reprotoxic substances, which enables us to monitor and control the health and safety impacts of the products we use. Art.225-II-1°-g) Promotion and respect of the International Labour Organization's fundamental conventions

Respect for the fundamental conventions of the ILO is included in the selection criteria for companies responding to SNCF calls for tender. These conventions cover respect for the freedom of association and right to collective bargaining, the elimination of discrimination in work and professions, the elimination of forced or compulsory labour, and the effective abolition of child labour.

MEANS AND METHODS



Art.225-II-3°-c) Subcontractors and suppliers

2013 2012 2011

Total amount of purchases and external expenses (in € billion) – E K G A

15.6 16.8 16.0

Supplier CSR performance (average rating over 100 of EcoVadis assessments) – E

47 45 -

Purchasing declined as a result of stagnating activity. The average EcoVadis score in 2013 was up two points on 2012. This trend is explained by the increase in scores obtained by suppliers being assessed for the second time (average score for reevaluations: 54/100). This improvement in results concerned 90% of suppliers who were reassessed in 2013 and demonstrates the effectiveness of the plans of action that were implemented following the first evaluations.

— Implementation in 2013 SNCF commits to daytime work – cleaning services for its locations

On 9 December 2013, the SNCF Pays-de-la-Loire Regional Division signed the charter on "Daytime cleaning work" with Nantes Métropole and the French Federation of Cleaning Industries (West). Along with the gradual rollout of daytime cleaning at several tertiary sites in the region, this is set to help in improving the quality of life and working conditions for employees who have traditionally worked unsociable hours. Daytime work also improves the profile of the job and reduces electricity consumption in offices. New SNCF uniform produced by a French company

Armor Lux, based in Quimper, won the call for tenders to produce and distribute the new uniform for the 33 000 customer-facing SNCF employees. Particular attention was paid to employees' health in opting for the OEKO-TEX certification on all materials used, which guarantees that the textiles are free from harmful substances. To guard against the social and environmental risks that prevail in the textile industry, SNCF demanded traceability from the supplier for three levels of the subcontractor chain (spinning, weaving, manufacture) for all items, as well as the provision and/or implementation of social audits for all production sites at two levels (manufacture and weaving). SNCF also demands an annual follow-up for these CSR audits throughout the term of the contract. Around a third of the clothing will be produced in France (compared to 2% previously).

MEANS AND METHODS


4. PLAYER IN NATIONAL AND EUROPEAN DEBATES

4.1. PUTTING FORWARD AND SHARING OUR VISION WITH THE DECISION-MAKERS OF THE SECTOR As a public service company and one of the most important transport and logistics groups in the world, SNCF operates in accordance with European and French legislation and regulations. It is therefore a natural and vital step for the company to make its voice heard when the framework in which it operates is being shaped. Geodis also takes part in work aimed at changing

French and European regulations for transport, logistics

and sustainable development.

4.2. AT EUROPEAN UNION LEVEL The European Union is an inescapable decision-making force for all involved in the transport sector. Transport policy is one of the common European policies and so the EU institutions (European Commission, European Parliament, the EU Council of Ministers) play a pivotal role in defining the legal framework affecting the sector at European and national level. SNCF set up a permanent office in Brussels in 1992, which monitors links between the Group's business as a whole, the European Union and other stakeholders at European level. As such, permanent representatives uphold links between the Group and sector associations of which SNCF is a member, such as the International Union of Railways (UIC) and the Community of European Railway and Infrastructure Companies (CER). Permanent representation work is performed on behalf of the SNCF Group's five divisions and subsidiaries. The representatives regularly meet members of the European Parliament and European Commission representatives, in particular those from the Directorate-General for Mobility and Transport. With this dialogue and its broad expertise in transport and logistics, SNCF endeavours to develop and promote its vision to EU institutions, to stimulate public debate in Europe and offer site visits to decision-makers. In addition to having signed up to the code of ethics, permanent representation work is registered on the European Commission/European Parliament list of Interest Representatives. Under these terms, the representatives must systematically declare the entities that they represent in all contact and communication.

4.3. IN FRANCE SNCF is regularly asked to participate in parliamentary work by the National Assembly and the Senate. Company representatives thus contribute to the work of the MPs and senators. This was the case in 2013 for legislative work such as the draft law on various provisions for infrastructure and transport, budgetary assignments for the draft law on finances for 2014 and the first hearings in preparation for the examination of the draft law on rail reform. The company representatives were heard at the Senate as part of the fact-finding on the public rail service and local authorities and on the enforcement of the 2007 law regarding social dialogue and continuity of public service in scheduled passenger transport. National Assembly hearings were also held as part of fact-finding on the management of radioactive waste, the application of the "Grand Paris" law, the implementation of the law on creating government assisted contracts, and accessibility by young people to group holidays and leisure time. The Chairman of SNCF is regularly called to speak before Parliament, mainly by the permanent commissions in charge of transport. In 2013, his term as Chairman of SNCF was renewed at his hearing in front of the sustainable development commissions of the National Assembly and Senate. The hearings were followed by a vote of parliament unanimously approving the re-election of Guillaume Pepy at the head of the company. SNCF also organises meetings between the Chairman and/or the members of the Group Executive Board and MPs in order to discuss specific issues or, more broadly, current topics and challenges that the company is facing. The Group has a representative based at both the National Assembly and the Senate who has pledged to observe the codes of conduct of both houses. Finally, SNCF outlines its vision and asserts its interests through its involvement in the Union des Transports Publics et ferroviaires (UTP) – the professional organisation for urban transport companies and rail companies (freight and passenger) in France, and the International Association of Public Transport (UITP).

MEANS AND METHODS


Planned rail reform projects for 2014

The reform project for the French rail system is to be debated before parliament by the end of the year. As it undergoes a period of profound change, the rail sector is confronted with a number of challenges covered by the reform: reestablishment of an optimum service quality and conditions for long-term economic balance in the rail system; conclusion of a new social compact; preparation for opening up competition in fair conditions. The Board will also continue to examine the various texts that make up the "Fourth Railway Package", the preliminary stage for adoption when the European Parliament has voted upon the first reading in February 2014. This draft legislation is of particular importance for the structure of the rail transport sector and requires the intervention of those concerned. SNCF is naturally committed to making a direct contribution to the debate in respect of the applicable ethical and legal rules. SNCF will also take an interest in the outcomes of Act III of the decentralisation process in France on the competences of the various levels of local authorities in terms of transport.

4.4. AT REGIONAL LEVEL Under the auspices of the Secretary General and the Director of Public Affairs, each Regional Director engages in dialogue with local elected representatives. The company's institutional partnership policy centres around a theme which is set annually (2011: public interest, 2012 and 2013: problem of mobility between regions). In addition, local elected representatives are made aware of the specifics of each line of business and overall range of expertise in the Group in order to promote intermodality. SNCF develops partnerships with the main elected member associations such as the ARF, ADF, AMF, AMGVF, FVM, APVF, AMRF, AdCF, etc. SNCF is represented at most annual events of its partners and at the Salon des Maires exhibition.

MEANS AND METHODS


5. STAKEHOLDERS

5.1. CHANNELS FOR DIALOGUE WITH STAKEHOLDERS SNCF has multiple stakeholders with which it has organised dialogue at different levels over time using several tools: surveys, focus groups, polls, working groups, framework agreements, meetings, chairs, route committees, advisory boards, etc.

5.2. DEDICATED TOOLS AND SYSTEMS FOR DIALOGUE

— Policy

Art.225-I-3°b) Relationships with stakeholders Dialogue with stakeholders

SNCF maintains a dialogue with its stakeholders on several levels in the areas of the EPIC, the subsidiaries and production units, in contact with their clients and specific players for the area, and at the closest level for key issues and local stakeholders. These approaches for conducting dialogue with stakeholders rely on a range of tools (surveys, opinion polls, NGO partnership, Internet dialogue, etc.). Keolis has been involved in dialogue with its external stakeholders (economic players, associations, elected representatives, the state, experts, peers in sustainable development, users) since 2011 in order to gain a better understanding of the expectations from civil society and to assist progression. With consumer associations

15 recognised national consumer associations have signed up to an agreement and protocol with SNCF. These associations come from highly varied fields: transport, housing, unions, families, etc. Meetings are held once a month and different representatives present current topics and projects, with topics relating to passengers, and also to freight. These meetings inform the associations of a certain number of projects in the early stages. The consumers' advisory board is held twice a year. This is headed by the Chairman Guillaume Pepy and involves managers from various divisions. The mediator presents an annual report to the board in June. TGV, Transilien, TER, Fret SNCF, Keolis and Geodis also hold regular enquiries in order to identify the areas

and potential lines of progress expected by their clients. The mediation system

SNCF mediation was introduced in 1994 to enable passengers to ask for a second opinion on complaints. This service provides a simple and free means of resolution for disputes between SNCF and its customers. SNCF mediation has been approved by the French Mediation and Consumer Commission (Commission de la Médiation de la Consommation – CMC) since 2012. Around 5 000 cases were filed in 2013 (5 400 in 2012). Just over two-thirds concerned commercial cases and the remainder were offences concerning the railway police. As in the previous year, just over half of all clients received a favourable response.


Consulting stakeholders to organise a hierarchy of CSR challenges for SNCF

In order to produce this 2013 CSR Report and focus it on the most relevant CSR challenges for SNCF and its stakeholders, talks were held with various stakeholders to assess the relevance and importance of the CSR issues facing SNCF. These stakeholders fall into six categories: employees; customers (consumer and passenger associations); representatives from the Transport and Drivers' Organising Authorities (ARF, GART, AUTF) and RFF; shareholders and supervisory authorities (APE, Minister of Ecology, Sustainable Development and Energy: DGITM, CGEDD); professional associations (UTP, TLF); civil society partners and stakeholders (Alstom, FNE, FNH, FNARS).

Three stages were involved in identifying the challenges. First of all, a list of CSR challenges was drawn up by the sustainable development teams of the Group and the Directorate of Strategy. This work is based on the "Excellence 2020" strategic vision, the standard ISO 26000, reporting standards and the Global Compact, a benchmark for the sector. The analysis was completed using the recommendations from the rating agency (Vigeo) and the EcoVadis platform, and surveys with customers and staff. Expectations were then collected from stakeholders to compile the list of challenges and assess the importance of these (vertical axis). Finally, the Executive Board took account of the opinions of the stakeholders and ranked the CSR challenges from the point of view of SNCF (horizontal axis).

MEANS AND METHODS


Channels for dialogue with stakeholders

MEANS AND METHODS


Importance and relevance of CSR challenges for SNCF and its stakeholders

MEANS AND METHODS


6. PARTNERSHIPS


Art.225-I-3°b) Relationships with stakeholders Partnership activities

6.1. WORKING WITH ACADEMIA AND ASSOCIATIONS The academic world is a source of innovation and vital keystone in promoting new, more sustainable solutions. SNCF has therefore developed a great number of partnerships with the academic world: Science-Po (sustainable development chair), École des Mines de Nantes (regions and human development chair), HEC (social business / enterprise and poverty chair) and the University of Versailles (Econoving chair). SNCF is a founding member of the Innovasol foundation partnership along with Bordeaux 3 University, the Regional Council of Aquitaine, Total, EDF and GDF Suez. SNCF had also been a partner of France Nature Environnement since 2008 and the Fondation Nicolas Hulot since 2012. 6.2. CLOSE TIES WITH COMPANY AND INSTITUTIONAL NETWORKS Cross-company monitoring and cooperation for sustainable development and CSR takes the form of SNCF's participation in various initiatives or organisations. The company is a member of Comité 21, C3D (Sustainable Development Directors' Commission), EpE (Enterprises for the Environment), Orse (Study Centre for Corporate Social Responsibility) and Orée (circular economy). The Group is a founding member of the think tank "The Shift Project" which is dedicated to achieving an economy free of carbon constraints and fossil fuels. Working alongside its clients and other supply chain players, Geodis is a driving force in global initiatives for all modes of goods transport. Geodis and Fret SNCF are involved in the EcoTransIT solution, which is used as a tool for calculating the Group's CO2 emissions. Geodis is also a contributor to the Clean Shipping Index (sea freight) and a series of regional and national initiatives aimed at reducing the environmental impact of road transport: SmartWay (USA), Fleetsmart (Canada), Transporte Limpio (Mexico) and Green Freight Europe (Europe). SNCF is also part of the UIC Environment Core Group.

Projects are developed: — with industry and researchers to implement the principles of circular economies, for example by discovering new forms of business and saving more energy on trains and in stations — with partner businesses (suppliers, subcontractors, major corporations, SMEs, companies in the Écomobilité Ventures fund, competitiveness clusters, etc.) — with representatives of the state (Ministry of Justice (framework agreement on community service by offenders), National Education Ministry, National Jobs Centre; National "Chantiers Écoles" Network; ADEME – the French Environment and Energy Management Agency; National Commission for Sustainable Development; Environment, Energy & Transport Observatory and others) — with public bodies or community associations (Éco-Emballage, Action Climat France, Association of French Regions, French Meteorological Society, etc.) — in the regions: local authorities, trackside residents/businesses, and local associations and institutions (PIMMS, local missions, partly state-owned community or inter-community bodies responsible for social and professional integration of young people facing difficulties, IMS Entreprendre pour la Cité) The Group has also made an active contribution to the process of drafting two standards: — standard NF EN 16258; methodology for calculation and declaration of energy consumption and GHG emissions of transport services (freight and passengers) — standard NF X 50-135 or "Responsible purchasing", which proposes recommendations for decision-makers and buyers looking to manage their costs while also anticipating social and environmental risks linked to purchasing 6.3. WORKING WITH SOFTWARE DEVELOPERS

— Policy

In November 2011, SNCF was one of the first companies in France to start using open data, in a step aiming to co-design new passenger services as part of open innovation with players from the digital world. The first batch of data went online at the end of 2011. SNCF uses the data.sncf.com site to provide a wide range of transport information such as timetables, lines, the list of stations, connections or station services. This is a rich resource for innovative partners (startups, developers, designers) who can work with SNCF to build new services around passenger and intermodality information. The SNCF Digital Factory coordinates the Group's open data policy.

MEANS AND METHODS



In 2013 the Group was involved in several events aimed at applying the open source technology to other ends, such as mobile apps and web services. The planned "Tranquilien" mobile application will, for example, show how busy the trains are in real time and according to information from users. From September

to November 2013, Transilien organised a "Hackcess" project to co-design connected services relating to accessibility with developers and users, following two other hackathons. As part of DataShaker, a partnership with NUMA (first co-working space in France, opened in 2008) six projects will be tested in our stations and on our trains from November 2013.

MEANS AND METHODS


7. INNOVATION

Principle 9: Businesses should encourage the development and diffusion of environmentally friendly technologies

7.1. RESEARCH AND INNOVATION The SNCF Innovation and Research team is in charge of the long-term innovation and research programme. It works with the SNCF divisions to prepare responses to the company's major challenges, such as new door-to-door services, sustainable mobility and reducing environmental impact. To this end it broadens its use of tools and exploration, scientific and technical expertise and partnerships with universities and industry around the world. With just over twenty innovation and research projects, organised into long-term programmes, for an annual budget of €2 million, the work undertaken within the area of sustainable development aims to address the following key issues: respecting the environment throughout the lifecycle of rail products, by exploring eco design of the equipment, infrastructures and stations of the future; reducing environmental impact by managing pollution from the rail system. 36 scientific and technical experts across all divisions, areas and subsidiaries of the Group contribute to the work of this line of research through the Synapses internal certification network, which comprises just over 240 employees. 7.2. ÉCOMOBILITÉ VENTURES The European Écomobilité Ventures fund was established at the end of 2011 with capital of €25 million by the three investment partners Total, Orange and SNCF with the aim of supporting innovative SMEs in finding solutions to mobility-related problems. A fourth partner, Air Liquide, joined the initial investors in Écomobilité Ventures in January 2014. Écomobilité Ventures announced its first set of funding in 2012 to three green shoot companies: Move About (company-specific car pooling), OuiCar (peer-to-peer car rental), EZ Wheel (development of an integrated electric wheel with plug-and-play). In 2013, Écomobilité Ventures made a further three investments in Flinc (car pooling platform) in Germany, and two projects in the United States – Quickpay (mobile payment service for parking spaces) and Ridepal (dedicated bus transport for company employees). The topic of new transport modes draws a great deal of interest from investors and stimulates the creativity of SMEs and, since it was set up, Écomobilité Ventures has received 600 projects and met with over 150

entrepreneurs. 7.3. MOBILE LIVES FORUM In 2011, SNCF established the "Mobile Lives Forum" to explore future mobility. The independent research and information sharing institute brings together intellectuals, researchers, creative minds and transport practitioners. Their joint aim is to anticipate lifestyle transformations in the regions enabled by transport and telecommunication. They endeavour to find potential ways of living effectively in a mobile world in future, both individually and collectively, and identify ways of putting these into action for individuals, companies and public stakeholders. The Mobile Lives Forum manages around twenty research projects, the first of which will come to fruition in 2014. In 2013 the Forum held its second round of international meetings on the question of "Sustainable mobilities in peri-urban areas?". The conclusions provided the basis for the publication "Rehabilitating the peri-urban" of August 2013. The Forum also launched its website at the start of 2013. This regularly receives contributions from renowned researchers such as Mimi Sheller, John Urry, Vincent Kaufmann, Francis Beaucire and Tim Cresswell, and produces a bi-monthly newsletter with a readership of over 5 000.

MEANS AND METHODS


8. PATRONAGE

8.1. SOLIDARITY PATRONAGE WITH THE SNCF FOUNDATION Art.225-I-3°b) Relationships with stakeholders Patronage measures

For 18 years, the SNCF Foundation has been helping young people to build a future for themselves by supporting projects set up by associations. 23 regional correspondents help to identify grass-root projects. In 2013, 680 projects run by associations received support across France from an annual budget of €3 million. Vision of a more unified world

As a company, SNCF passes through areas where young people live, encounters them in its stations and carries them on its trains, buses and trams. SNCF is aware of their desires, their troubles and their tremendous potential. Helping young people to build their own futures and supporting the associations who work with them to design the world of the future is the Foundation's mission. Three focal points

The SNCF Foundation works in three main arenas which set the path for accompanying young people from childhood to adulthood. "Overcoming illiteracy" is a scheme to instil the desire to read and write among four-year-olds. The SNCF Foundation has supported 750 associations since 2009 and has become a major patron for this cause, which was designated a National Cause in 2013. "Living together" is a programme to bridge the generational and culture gaps. It offers young people the chance to improve themselves, become more integrated, learn and understand each other. "Enterprise for mobility" is a programme which helps young people onto the career ladder by creating businesses which improve modes of transport. Skills patronage

Aside from financial assistance, the SNCF Foundation also encourages its employees to offer the benefit of their expertise to associations and partner organisations, during working hours, for up to ten days a year. Chairman, Guillaume Pepy, has set the target of 1 000 SNCF sponsors by 2016.

8.2. EXPANSION OF "COUPS DE CŒUR SOLIDAIRES" IN SUBSIDIARIES Through its project "Coups de Cœur Solidaires" the SNCF Foundation encourages the Group's employees to help associations and their work by becoming volunteers. In 2013, 280 projects in which SNCF volunteers participated received extra help with a share of the €550 000 funding. Keolis has also rolled out the project with its employees.

8.3. THE GEODIS FOUNDATION The Geodis Foundation, set up in 2009, supports projects promoting entrepreneurship and initiative among people with disabilities in culture, sport, education and in the professional arena. The Foundation makes two calls for project proposals each year and also awards the Guy Crescent prize annually to disabled persons or to associations working with issues of disability. For example, in 2013 the Geodis Foundation made awards to eight projects designed to raise awareness of disability issues in schools, create facilities where disabled and able-bodied people can interact, and produce sign language DVDs of stories for children. The Group's employees are involved in the Foundation through their participation in the selection process and project sponsorship. In the various countries where the Geodis Group operates, its employees, entities and business areas get behind charitable and philanthropic activities: help for sick children or people affected by cancer, relief operations for disaster-stricken populations, measures to assist disabled people, etc. The involvement takes various forms: fundraising, sponsorship, financial support, and also logistics support or sending materials. For example, the Logistics division site at Etupes supported the 2013 campaign of Restos du Cœur (a charity distributing free meals to the homeless) by providing it with a goods reception area, storage space and cross-docking to facilitate product collection and enable the distribution of 8 000 meals a week.


03— EVALUATIONS AND INDICATORS


1. COMMITMENTS OF SNCF 2. QUANTITATIVE INDICATORS – ARTICLE 225 3. AUDITORS' REPORT AND CERTIFICATION 4. OTHER EVALUATIONS 5. COMPARATIVE TABLE 6. NOTE ON METHODOLOGY

75 76 81 83 85 87

EVALUATIONS AND INDICATORS


For more than fifteen years, the societal policy of SNCF has been based on the signature of founding charters and commitments. National, European or international, they form the groundwork and pillars of its sustainable development strategy. SNCF uses many evaluation methods to measure the efficiency and value of its social and environmental commitment. These analyses consider the initiatives and their effects in terms of both quantity and quality. In the past, SNCF has called upon external audit firms, with whom it was able to examine the impact of its societal policy. At the request of investors, the company is now evaluated every 20 months by Vigeo. At the request of customers, the CSR performance of SNCF is also evaluated by EcoVadis. In 2012, in order to anticipate its integrated reporting obligations, SNCF called on the auditors to certify the presence of the necessary information and to verify the quality of the information supplied regarding the emission factors that are used for calculating the CO2 information of transport services. In 2013, they also verified data relating to the employees.



1. COMMITMENTS OF SNCF — 1999 Charter for public entities in favour of the environment — 2003

UN Global Compact (EPIC and Geodis) — 2004

• Charter on Diversity in association with IMS-Entreprendre pour la cité • UN Global Compact (Keolis) — 2005

Sustainable Development Charter of UITP (Keolis) — 2006

Charter on Diversity (Keolis) — 2008

• European Union commitment to reduce railway related CO2 emissions by 40% for passenger services between 1990 and 2020, and 30% for freight • European and Solidarity Station Charter • Sustainable Development Charter for Public Enterprises and Entities • UITP Sustainable Development Charter (SNCF) — 2009

Charter of Commitment for Advertisers (UDA) for good

practice in communication — 2010

• UIC Sustainable Mobility Charter • Bercy Charter for good practice in purchasing • SME Compact on purchasing — 2011

• Corporate Patronage Charter (Admical) • Charter for fostering national consultation (Raising awareness about sustainable development) • Charter on Diversity in association with IMS-Entreprendre pour la cité (Keolis) — 2012

• Charter on innovative SMEs — 2013

• "Business and Neighbourhoods" Charter with the Ministry of Urban Affairs charter with the Ministry of Urban Affairs • Partnership Charter with the "La main à la patte" foundation

Global Compact

Since 2003, SNCF has been adhering to the Global

Compact, an initiative launched in 1999 by the former

Secretary General of the United Nations, Kofi Annan, at

the World Economic Forum in Davos.

The aim is to align corporate strategies and practices

on ten universally accepted principles in the following

areas: human rights, labour standards, the environment

and the fight against corruption.

In order to do so, the Global Compact provides

companies with a practical framework, resources and

opportunities to exchange good practices.

Since 2004, Keolis has also been included, alongside

SNCF and Geodis, in the Global Compact France, the

French network of the Global Compact.

http://www.pactemondial.org

http://www.pactemondial.org/



2. QUANTITATIVE INDICATORS

2.1. ENABLING SUSTAINABLE MOBILITY FOR ALL

ART.225 2013 2012 2011 GROUP

Guaranteeing the safety of passengers and property

II-3°-d) Number of accidents involving trains (or other modes of transport) that resulted in physical injury

22 14 7 E A

II-3°-d) Physical attacks on passengers and SNCF staff, thefts of passenger belongings

11 658 10 800 10 580 E A

II-3°-d) Malicious acts damaging physical and financial assets 33 384 39 340 38 470 E A

II-3°-d) Legal offenses 74 368 78 020 71 080 E A

Improving customer satisfaction

I-3°-b) Difference in percentage points between proportion of satisfied customers of TGV and of Transilien (excluding periods of disruption)

15 13.5 - E

I-3°-a) Percentage of TGV tickets under €30 15% - - E

II-3°-d) Number of stations offering accessibility services for persons with reduced mobility (Accès + service)

624 522 459 E

Developing door-to-door solutions for passengers and freight

I-2°-c) Number of stations equipped for parking or hiring bicycles 2 230 1 650 1 641 E

Encouraging new low-impact mobility solutions

I-2°-d) Cumulative number of tonnes of CO2 avoided by shifting to rolling roads (in thousands)

109 50 - E

Legend:

"GROUP" column on the right of the tables: entities integrated in the 2013 consolidation, "E" for EPIC, "K" for the Keolis Group, "G" for the Geodis Group,

"A" for the other newly contributing integrated subsidiaries (NB: for these new subsidiaries, only the 2013 data is known; no historical data could be

compiled).

All the data presented covers France and the international area, except for the Geodis Group. For this Group, the social data other than the "total workforce

at the end of the financial year" is produced for France only and therefore does not include the lower tier subsidiaries of the Group abroad.

Unavailable data is indicated thus: "-".



2.2. CHALLENGE 2: LIGHTENING THE BURDEN ON THE ENVIRONMENT

ART.225 2013 2012 2011 GROUP

Mainstreaming environmentally friendly management

I-2°-a) Number of entities/sites with an EMS (certified to ISO 14001 or with adapted EMS)

486 438 378 E K G A

II-2°-a) Provisions for environmental risks (in € million) 425 360 355 E K

I-2°-a) Number of employees with environmental protection training 440 434 - E

Saving energy and cutting greenhouse gas emissions

I-2°-c) Energy consumption for rail traction (in thousand TOE) 827 821 839 E K A

I-2°-c) Fuel consumption of road vehicles of commercial fleets (in thousand TOE)

266 275 269 K G A

I-2°-c) Energy consumption in buildings (in million kWh) 2 497 2 280 2 190 E K G A

I-2°-c) - Electricity (in million kWh) 1 149 1 042 968 E K G A

I-2°-c) - Gas (in million kWh) 996 866 864 E K G A

I-2°-c) - Heating oil (in million kWh) 204 210 203 E K A

I-2°-c) - Heat distribution networks (in million kWh) 148 161 154 E

I-2°-d) Emissions of greenhouse gases (CO2 in thousand tonnes) 2 410 2 371 2 367 E K G A

I-2°-d) - Rail traction (trains, metro, tramway) (thermal and electric – in thousand tonnes)

1 051 1 036 1 063 E K A

I-2°-d) - Commercial road transport (in thousand tonnes) 984 992 964 K G A

I-2°-d) - Buildings (in thousand tonnes) 374 344 340 E K G A

Developing the circular economy and addressing every facet of our impact

I-2°-b) Purchase of plant protection products (in tonnes) 111 108 134 E

I-2°-b) Percentage of low-noise freight rolling stock 8.1% 7.4% 7.1% E

I-2°-b) Percentage of low-noise passenger rolling stock 78.3% 77.7% 77.0% E

I-2°-b) Total recovered or destroyed hazardous industrial waste (in thousand tonnes)

100 84 53 E K G A

I-2°-c) Total water consumption on all sites (in million m3) 8.5 7.4 6.3 E K G A

I-2°-c) Quantity of purchased resources - Wooden sleepers (in thousand units)

335 310 - E

I-2°-c) - Concrete sleepers (in thousand units) 1 300 1 460 - E

I-2°-c) - Ferrous metals (rail, wheels, axles, etc.) (in thousand tonnes)

171 170 - E

I-2°-c) - Ballast (in thousand tonnes) 2 398 2 640 - E

I-2°-c) - Copper overhead lines (in thousand tonnes) 1.6 - - E

I-2°-c) - Paper (in thousand tonnes) 14.9 16.8 17.9 E

I-2°-a) Number of outstanding ICPE formal notices on 31/12 9 9 13 E

Data verified by auditors and given "reasonable assurance"



2.3. CHALLENGE 3: UPDATING OUR SOCIAL COMPACT

ART.225 2013 2012 2011 GROUP

Employment

I-1°-a) Total number of employees (situation on 31 December 2013) 245 097 242 325 240 483 E K G A

I-1°-a) Total number of recruits (excluding temporary contracts) 14 039 11 925 13 094 E K G A

I-1°-a) Total number of contracts terminated (excluding temporary contracts)

2 312 1 877 1 980 E K G A

Organisation of work

I-1°-b) Percentage of on-board employees 26.6% 26.4% 26.3% E K G A

I-1°-b) Percentage of part-time employees 9.6% 9.6% 9.5% E K G A

Pay

I-1°-a) Average monthly salary (in €) 2 945 2 899 2 851 E K G A

I-1°-a) Change in average monthly salary 1.6% 1.7% E K G A

Fostering diversity

I-1°-a) Percentage of women in the workforce 22.0% 21.0% 20.7% E K G A

I-1°-f) Total number of workers with disabilities 7 802 7 132 6 844 E K G A

I-1°-f) Employment rate of workers with disabilities 4.1% 3.7% 3.3% E K G A

Improving quality of life in the workplace

II-1°-b) Rate of absence due to illness 4.8% 4.6% 4.7% E K G A

II-1°-d) Index of the severity of accidents in the workplace (for 1 000 employees)

1 903 2 024 - E K G A

II-1°-d) Index of the frequency of accidents in the workplace requiring time off work, excluding accidents during travel (for 1 000 employees)

40.67 41.71 - E K G A

II-1°-d) Number of declared cases of work-related illness 552 499 626 E K G A

Increasing employability

I-1°-e) Total number of training hours (in thousands) 7 036 7 110 6 444 E K G A



2.4. CHALLENGE 4: CONTRIBUTING TO REGIONAL DEVELOPMENT

ART.225 2013 2012 2011 GROUP

Sub-contracting and suppliers

II-3°-c) Percentage of purchases from SMEs 21% 22% 22% E

II-3°-c) Total amount of purchases and external expenses (in € billion)

15.6 16.8 16.0 E K G A

II-3°-c) Supplier CSR performance (average rating over 100 of EcoVadis assessments)

47 45 - E

Providing support to those facing difficulty

I-3°-c) Total amount of socially responsible purchasing (in € million) 32 25 25 E A

I-3°-a) Number of assisted contracts 845 1 055 586 E A



2.5. DETAILED INDICATORS

ART.225 ENVIRONMENT 2013 2012 2011 GROUP

I-2°-c) Consumption of water per administrative region

E

All regions 2.6% 2.0% 2.0%

Alsace 0.7% 2.3% 2.0%

Aquitaine 3.2% 2.2% 2.3%

Auvergne 1.0% 0.9% 0.8%

Bourgogne 1.6% 1.3% 3.2%

Bretagne 1.4% 1.9% 1.4%

Centre 0.3% 0.6% 0.6%

Champagne-Ardenne 0.4% 0.3% 0.3%

Haute-Normandie 3.2% 3.5% 3.0%

Île-de-France 67.0% 67.0% 67.8%

Languedoc-Roussillon 1.8% 2.1% 1.4%

Limousin 0.3% 0.3% 0.4%

Lorraine 2.0% 1.7% 2.2%

Midi-Pyrénées 2.4% 1.7% 1.6%

Nord 1.6% 1.5% 1.8%

Pays de Loire 0.7% 0.7% 0.8%

Picardie 0.7% 0.5% 0.6%

Provence Alpes Côtes d'Azur 4.4% 4.4% 3.8%

Rhône-Alpes 4.7% 4.8% 4.1%

-- Total -- 100.0% 100.0% 100.0%

ART.225 SOCIAL 2013 2012 2011 GROUP

I-1°-a) Total employees per age group17

E K G A

Employees under the age of 25 6% 6% 6%

Employees aged 26-30 10% 10% 9%






Employees over the age of 55 10% 7% 5%

-- Total workforce (no. of employees) -- 100% 100% 100%

I-1°-a) Total employees per geographic area E K G A

France 222 679 221 554 219 851

Europe (excluding France) 17 120 - -

Outside Europe 5 298 - -

International subtotal 22 418 20 771 20 632

-- Total -- 245 097 242 325 240 483

17

The reference workforce is the actual workforce for EPIC or the total workforce for the subsidiaries; the subsidiary Ermewa is excluded.



3. AUDITORS' REPORT AND CERTIFICATION Certification provided by the auditors of social, environmental and societal information in the Corporate Social Responsibility Report 2013 and reasonable assurance report on a selection of CO2 emission indicators published by SNCF in the same report.

(Financial year ending 31 December 2013)

Following a request from the French National Railway Company (SNCF), which chose to present social, environmental and societal information in its Corporate Social Responsibility Report for the financial year ending 31 December 2013 (hereafter referred to as "CSR information") as stipulated in Article L.225-102-1 of the Commercial Code, we hereby present our report on this CSR information.

— Responsibility of the company

As part of the voluntary action of SNCF, it shall be the responsibility of the SNCF administrative board to draw up an activity report that, under the heading "Corporate Social Responsibility Report 2013", includes the CSR information specified in Article R.225-105-1 of the Commercial Code, prepared in accordance with the reporting protocols used by SNCF, which are summarised in the Corporate Social Responsibility Report 2013 under the heading "Note on methodology" and available on request from the Sustainable Development Department of SNCF.

— Responsibility of the auditors

Our role as auditors is: — To certify that the information stipulated in Article R. 225-105-1 of the Commercial Code is present in the Corporate Social Responsibility Report 2013 or to ensure that explanation, as referred to in Article R.225-105, clause 3 of the Commercial Code, is provided for any omission. Our role is not to check the relevance of this information; — To express a conclusion with reasonable assurance on the fact that the CO2 emission indicators selected by SNCF and identified with the symbol on page 29 of the Corporate Social Responsibility Report 2013 have been established, in all significant aspects, in accordance with the reporting protocol for CO2 emissions of rail traction. The CO2 emission indicators selected by SNCF are as follows: — CO2 emissions from rail traction (thermal and electric) — CO2 emissions per passenger-km ("pass-km") for TGV, TER, Transilien and Intercités Our role as auditors is to express a conclusion on these indicators. The conclusions drawn in our report concern only these indicators and not all of the data in the Corporate Social Responsibility Report 2013. Our experts in the field of social responsibility have been consulted to provide assistance in performing this task.

3.1. AUDITORS' CERTIFICATION OF PRESENCE OF INFORMATION

— Nature and scope of the work

The present work was conducted in compliance with the professional standards applicable in France. On the basis of interviews with managers of the departments concerned, we were familiarised with the guidance regarding sustainable development in relation to the social and environmental consequences associated with the company's activity and its social commitments and, if applicable, initiatives or programmes resulting from it. The CSR information presented in the 2013 Corporate Social Responsibility Report has been compared with the standard list in Article R.225-105-1 of the Commercial Code. In the event of absence of certain consolidated information, checks were performed to ensure that explanations were provided as specified by the provisions of Article R.225-105 clause 3 of the Commercial Code. Checks were performed to ensure that the CSR information provided covers the consolidated scope, i.e. the company and its subsidiaries within the meaning of Article L. 233-1 and companies under its control, according to Article L. 233-3 of the Commercial Code with the limitations specified in the note on methodology presented in section 3 of the paragraph "Note on methodology" of the 2013 Corporate Social Responsibility Report.

— Conclusion

Based on this work and considering the limitations mentioned above, we hereby certify the presence in the 2013 Corporate Social Responsibility Report of the CSR information required under Article R. 225-105-1. 3.2. AUDITORS' ASSURANCE REPORT

— Nature and scope of the work

The present work was conducted in compliance with the IFAC standard ISAE 3000 "Assurance Engagements Other than Audits or Reviews of Historical Financial Information" and in compliance with professional standards applicable in France. The following due diligence was performed to provide assurance that the selected indicators did not present any significant anomaly. This due diligence makes it possible to provide reasonable assurance.

— Work relating to the Sustainable Development Department

The reporting procedures developed by SNCF were examined from the point of view of relevance, exhaustiveness, reliability, objectiveness and legibility. Analyses were performed and verification was made through surveys, calculations and consolidation of data used to produce the CO2 emissions indicators. This work also relied specifically on interviews with people in the Sustainable Development Department responsible



for the compilation, application of procedures and consolidation of data.

— Work relating to entities contributing data for the selected CO2 emissions indicators

SNCF Energy (item: total electricity consumption and breakdown for TGV, TER, Transilien and Intercités)

Checks were performed on the basis of interviews with the people responsible for preparing data, making it legible and for correct application of procedures. A review was carried out of the models used for apportionment of electrical consumption data between different parts of the business, on the basis of the following: — A review of calculation assumptions used for

statistical modelling — Using sampling, a reconstruction was made of

modelled electricity consumption for the different parts

of the business, based on the consumption data

provided by the electrical grid manager Traction Division (item: total diesel consumption and breakdown for TER, Transilien and Intercités)

Checks were performed on the basis of interviews with the people responsible for preparing data, making it legible and for correct application of procedures. Group Finance Department – studies and analyses (item: production of pass-km for TGV, TER, Transilien and Intercités)

Analyses and detailed tests were performed on the basis of surveys to verify calculated data and correlation of this data with supporting documentation;

Checks were performed on the basis of interviews with the people responsible for preparing data, making it legible and for correct application of procedures. A review was carried out of calculation assumptions for models used to determine the pass-km for TGV, TER, Transilien and Intercités. A reconstruction was performed for Transilien pass-km. Analyses and detailed tests were performed on the basis of surveys to verify calculated data and correlation of this data with supporting documentation.

— Conclusion

In our opinion the CO2 emission indicators selected by SNCF were established, in all significant aspects, in accordance with the "Protocol on reporting CO2 emissions from rail traction" used by SNCF and applicable in 2013. Courbevoie and Neuilly-sur-Seine, 13 May 2014 MAZARS

61, rue Henri Regnault 92075 Paris-La Défense Cedex Franck Boyer and Lionel Gotlib PricewaterhouseCoopers Audit

63, rue de Villiers 92208 Neuilly-sur-Seine Éric Bertier and Philippe Vincent



4. OTHER EVALUATIONS

4.1. ECOVADIS At the request of customers such as Lafarge, Bel but also Société Générale, Veolia Environnement and AXA, EcoVadis evaluated the performance of SNCF with regard to Corporate Social Responsibility (CSR). The rating achieved by SNCF, which was published in February 2014, increased by two points compared with the previous evaluation, to 70 out of 100. This places the CSR performance of SNCF at "advanced", which is level four on a scale of one to five. The initiatives of SNCF with regard to social policy and towards suppliers achieved the best results, followed closely by the environment. In the sectoral comparison, the CSR performance of SNCF on these three issues was above that of other companies or on a par with the best. Only business ethics was rated at an equivalent level to that of other companies in the sector. The CSR approach of Geodis was evaluated by

EcoVadis at the request of customers in 2009, 2010, 2011 and at the end of 2012. With a score of 63/100 in 2012, Geodis obtained the rating "confirmed", which is level three.

4.2. VIGEO At the request of investors, SNCF has been evaluated by Vigeo since 2007. In 2013, the Group achieved a score of 53/100, representing a 3 point increase compared with the previous evaluation. Apart from the area of corporate governance, where the company scored below the average for its evaluation sector "Transport and tourism", SNCF achieved positive ratings in the other five areas.



4.3. OVERVIEW OF THE INTANGIBLE VALUE OF SOCIAL INITIATIVES OF SNCF

SNCF implements programmes for the benefit of civil society: socially responsible purchasing, mediation on the trains, community service programmes, inclusion projects, etc. These initiatives constitute an intangible capital and generate value. To measure the economic efficiency of these initiatives, SNCF has broadened the non-financial evaluation with the avoided cost method. Inclusion, social mediation and socially responsible purchasing allow jobs to be offered to people in situations of exclusion. Mediators on board trains and in stations trains improve the regularity of trains, which reduces

delay times. Finally, the community service programmes and remedial orders reduce the number of people detained in prison and the associated public cost (one day in prison costs an average of €120) and have a positive effect on repeat offending. This type of economic assessment has therefore proved to be appropriate for steering and promoting the social initiatives of SNCF. In 2013, under the leadership of the Sustainable Development Department, a new method of evaluation was developed by creating a social utility scale.

Net profit in 2013 (in € millions)

36,1

11,6

SNCF Société civile



5. COMPARATIVE TABLE

I-INFORMATION SPECIFIED IN CHAPTER I I-1°-SOCIAL INFORMATION

ART.225 GRI 4 ISO

26000

GLOBAL COMPAC

T

COMMITMENTS OF SNCF

SNCF POLICIES AND INDICATORS P.

I-1°-a) Employment 9 - 10 - LA 1 - EC 1

6.4.3 8 - 9 - 10 8 - 38

I-1°-b) Organisation of work 10 6.4.3 # 3 10 8

I-1°-c) Social relations 15 - LA 16 6.4.5 # 3 9 43

I-1°-d) Health and safety EN 15 6.4.6 # 4 - 5 9 41

I-1°-e) Training LA 9 6.4.7 10 45

I-1°-f) Equal treatment LA 12 6.3.7 # 1 - 2 - 6 8 37 - 38 - 38

I-2°-ENVIRONMENTAL INFORMATION

ART.225 GRI 4 ISO

26000

GLOBAL COMPAC

T

COMMITMENTS OF SNCF


I-2°-a) General environmental policy EN 25 - EN 31 - EN 34

6.5.1 - 6.5.2

# 7 - 8 - 9 5 - 7 23 - 24- 32 - 34 - 58

I-2°-b) Pollution and waste management

EN 25 - EN 30 - EN 32

6.5.3 - 6.5.4

# 7 - 8 - 9 7 30 - 31 - 32 - 33

I-2°-c) Sustainable use of resources EN 1 - EN 3 - EN 8 -

EN 27 6.5.4 # 7 - 8 - 9 3 - 6 -7 19 - 25 - 26 - 27 - 33

I-2°-d) Climate change EN 15 6.5.5 # 7 - 8 - 9 6 21 - 28 - 29

I-2°-e) Protection of biodiversity EN 11 to

EN 14 6.5.6 # 7 - 8 - 9 5 - 6 - 7 34

I-3°-INFORMATION RELATING TO SOCIAL COMMITMENTS TO PROMOTE SUSTAINABLE DEVELOPMENT

ART.225 GRI 4 ISO

26000

GLOBAL COMPAC

T

COMMITMENTS OF SNCF


I-3°-a) Regional, economic and social impact of the company's activity

9 - SO 1 - LA 12

6.4.3- 6.8.4 - 6.8.5 - 6.8.9

2 - 8 - 10 - 11 15 - 49 – 51

I-3°-b) Relations with interested individuals or organisations

SO 1 6.8.9 11 - 12 15 - 65 - 68 - 71

I-3°-c) Sub-contracting and suppliers EC 8 6.6.6 # 1 & 2 11 49 - 61



II-FURTHER INFORMATION SPECIFIED IN CHAPTER I II-1°-SOCIAL INFORMATION

ART.225 GRI 4 ISO

26000

GLOBAL COMPAC

T

COMMITMENTS OF SNCF


II-1°-b) Organisation of work LA 6 6.4.4 # 3 9 41

II-1°-d) Health and safety LA 6 - LA 7 6.4.6 # 3 9 42

II-1°-g) International Labour Organization

LA 6 6.4.4 # 3 9 62

II-2°-ENVIRONMENTAL INFORMATION

ART.225 GRI 4 ISO

26000

GLOBAL COMPAC

T

COMMITMENTS OF SNCF


II-2°-a) General environmental policy EN 34 6.5.1 - 6.5.2

# 7 - 8 - 9 5 24

II-2°-c) Land use EN 11 6.5.4 # 7 - 8 - 9 7 33

II-2°-d) Climate change EN 11 to

EN 14 6.5.5 # 7 - 8 - 9 5 - 6 - 7 28

II-3°-INFORMATION RELATING TO SOCIAL COMMITMENTS TO PROMOTE SUSTAINABLE DEVELOPMENT

ART.225 GRI 4 ISO

26000

GLOBAL COMPAC

T

COMMITMENTS OF SNCF


II-3°-c) Sub-contracting & suppliers EC 8 - SO

9 6.6.6 12 51 – 61 – 62

II-3°-d) Fairness of practices PR 1 - LA 6 6.7.3 # 10 1 - 2 - 9 13 - 14 - 16 - 60 - 61

II-3°-e) Other initiatives to promote human rights

HR 9 6.3.10 # 1 - 2 1 - 2 - 9 60



6. NOTE ON METHODOLOGY

6.1. OVERALL SCOPE The reporting presented for the financial year 2013, both qualitative and quantitative, covers the consolidated scope of EPIC and the following subsidiaries: The Groups Keolis, Geodis, VFLI, STVA, Naviland Cargo, Voyages-sncf.com (VSC) and iDBUS. In addition to these entities, the indicators relating to the social aspect include the following additional subsidiaries: Ermewa, NRS and STL (Logistica, Ecorail, VIIA, VIIA Connect, Ermerchem, Transport Ferroviaire Services and Itnovem). Unless stated otherwise for the specified indicators, the reporting includes the international activities, which represent 87% of the Group's workforce in the financial year. The reference "Group" in the tables stipulates the organisational scope covered by each indicator. According to the availability of information on the entities for the financial year 2013, the initials indicate the following entities ("E" for EPIC, "K" for the Keolis Group, "G" for the Geodis Group, "A" for the other subsidiaries newly integrated in 2013: VFLI, STVA, Naviland Cargo, Voyages-Sncf.com and iDBUS). Concerning the new subsidiaries incorporated into the scope in 2013 (VFLI, STVA, Naviland Cargo, Voyages-Sncf.com and iDBUS), only the 2013 data is available. For the indicators concerned (marked with the letter "A"), the historical data for 2012 and 2011 does not include these subsidiaries. Finally, for certain indicators, it is possible that the historical data is not based on the same scope as that for 2013. Once again, these particularities are specifically mentioned in the text or the present note on methodology. 6.2. ENVIRONMENT Energy consumption for modes of transport: TOE =

Tonnes of oil equivalent. Calculations performed using the following equivalence factors: 1 m

3 of diesel = 0.845

TOE; 1 000 kWh = 0.086 TOE. The electricity consumption figures published for the rail traction of EPIC and taken into account when calculating CO2 emissions are those provided by the manager of the French electrical transport network (RTE) dated 21 January 2014. The consumption of traction energy by metro services and tramways operated by Keolis, as well as the consumption rail traction energy by the subsidiary VFLII are also consolidated in the total.

Consumption of road fuels: this takes into account

the consumption by all the subsidiaries – Geodis, Keolis, VFLI, STVA and iDBUS – for the commercial fleet that they own or operate, depending on the case. Energy consumption in buildings: for EPIC the

volume of electricity and gas consumed in 2013 are not definitive figures. In addition, the consumption of

domestic fuel and heating (district heating networks) by EPIC is estimated on the basis of average prices in 2013, i.e.: €0.7187 per litre and €0.067 per kWh respectively (source: Directorate General for Energy and Climate – DGEC).

Émissions de CO2 : pour le calcul des émissions de

CO2 relatives aux consommations d’énergie de traction, les facteurs d'émission utilisés sont de 0,053 kg de CO2 pour 1 kWh pour l'électricité (Base Carbone – électricité usage transport – version validée le 15/3/2012 ; Article 5 du décret n° 2011-1336 du 24 octobre 2011 relatif à l'information sur la quantité de dioxyde de carbone émise à l'occasion d'une prestation de transport – Arrêté d’avril 2012 ; Information CO2 transport - L.1431-3 Code des transports) et de 2,68 kg de CO2 pour 1 litre de gazole (GHG Protocol – "GHG emissions from stationary combustion" version 4.0 d’octobre 2010).

Energy in buildings: the following emission factors

from the "Base Carbone" database are applied: 0.06 kg of CO2 per kWh for electricity (average content for mainland France excluding upstream emissions – version validated on 01/03/2012 / Art. 75); 0.2 kg of CO2 per kWh for gas ("Base Carbone" database: natural gas in Europe excluding upstream emissions – version validated on 01/03/2012); 2.6 kg of CO2 per litre for domestic fuel; 0.042 kg of CO2 per kWh for district heating networks ("Bilan Carbone" carbon assessment tool V3 – 2005), or 0.154 kg of CO2. Water – protection of water and soil: water

consumption is estimated on the basis of expenditure recorded and average prices in 2013 for drinking water and non-drinking water, i.e.: €3.89/m

3 and €2.08/m

3

respectively (Source: EIDER – database of the Ministry of Ecology, Sustainable Development and Energy). Noise: this UIC indicator is based on the methodology

established by UIC Leaflet 330 entitled "Railway specific environmental performance indicators". It indicates the proportion of rolling stock fitted with composite brake blocks.

Management: the ISO 14001 certification concerns

only industrial establishments and sites, for which management of the environmental impact of activities must be conducted rigorously. Other types of establishments or sites can be incorporated into "adapted" environmental management systems belonging to EPIC or certain subsidiaries.

Resource management: regarding consumption of

paper, except for paper in reams where the tonnage of purchases is known, other consumption of paper is estimated based on the amounts purchased in euros, using the same basis as for calculating the Ecofolio tax base for printed paper grades (cost of the paper representing 50% of the purchase item and price of a tonne of paper at €800). Hazardous waste: for EPIC, recovered or destroyed

hazardous industrial waste is monitored using the "services framework contract" scheme implemented nationally by SNCF EPIC. With regard to the Geodis and Keolis volumes, this relates to hazardous waste


that is produced and must be treated in accordance with French laws. Formal notices concerning ICPE: number

outstanding at the end of the financial year (within EPIC). 6.3. SOCIAL AND SOCIETAL The consolidated HR data for EPIC and the subsidiaries included in the scope is established on the basis of the following definitions: Total number of employees of the SNCF Group on 31 December: this figure includes all employees of the

Group (EPIC, Keolis and Geodis Groups as well as additional subsidiaries for 2013) in France and internationally: — Subsidiaries: total workforce on 31/12 excluding trainees — EPIC: global workforce excluding trainees and excluding specific doctor workforce

Specific feature of 2013 for the Geodis Group: the

figure for total workforce relates to the area France, as do its variations per age group, employee category (on-board), type of contract, part-time/full-time and gender. All the other HR indicators relating to the Geodis Group are also consolidated for France only.

Other particularities of the HR indicators:

— Breakdown by age: the reference workforce is the actual workforce for EPIC or the total workforce for the subsidiaries — Recruits: figure for France for Keolis 2011-2012. The data for EPIC includes transitions from temporary to permanent contracts. — Contracts terminated: figure for France for Keolis 2011-2012 — Training hours: historical data for 2011-2012 is only available for EPIC and Keolis — Percentage of on-board employees: the reference workforce is the actual workforce for EPIC or the total workforce for the subsidiaries — Percentage of part-time employees: the reference workforce is the actual workforce for EPIC, or the full time equivalent (FTE) for the subsidiaries (except STVA: current workforce) — Average monthly salary: estimated on the basis of gross annual remuneration, reported as FTE (France only) — Rate of absence: average of the rates declared, weighted by the number of employees — Index of frequency: number of accidents in the workplace requiring time off work for 1 000 employees; average of the rates declared, weighted by the number of employees; the subsidiary VFLI is excluded — Index of severity: number of days of absence due to accidents requiring time off work, excluding accidents during travel, divided by the available workforce multiplied by 1 000; average of the rates declared, weighted by the number of employees; the subsidiary VFLI is excluded — Number of declared cases of work-related illness: no historical data for 2011 and 2012 for subsidiaries apart from Keolis.

Assisted contracts: Single Integration Contract (CUI),

Employment Assistance Contract (CAE), Employment Initiative Contract (CIE) and government assisted contracts. 6.4. RESPONSIBLE PURCHASING

Supplier CSR performance (average score out of 100 of EcoVadis evaluations): this score is the

average of the marks awarded to all the suppliers that were evaluated by EcoVadis, an independent consultancy firm. This evaluation concerns the policies, initiatives and indicators implemented by the companies and measures their performance on four issues: environment, social, business ethics and supply chain. The suppliers evaluated are selected on the basis of an analysis of CSR risk and their strategic importance for the company.

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Documents

2013 CSR REPORT - SNCF