Global Compact Communication on Progress, April 2010

In this first Communication on Progress, we have chosen to illustrate the principles of the Global Compact on the environment and on working conditions, by describing our actions to date and by setting new objectives.

Our next communication will focus on other themes of the Pact, namely the promotion of human rights and the fight against corruption, principles that have always been incorporated in the Group's policy on accountability and sustainability.

The Environment

All human activity has an impact on the environment. As a company that accompanies its clients in the relocation process, through our transportation and logistics activities we contribute to CO² emissions and use paper for packing our clients' personal effects. So to reduce our environmental footprint we have put in place strict control procedures and compensation programs. We also strive to provide our employees and our external partners, the best environmental practices and habits possible.

Principle n°7: Companies are encouraged to apply the precautionary approach to problems affecting the environment

Alerted by the disappearance of forests (13 million hectares are disappearing every year), the AGS Group decided to act and invest in reforestation programs by partnering with an organisation of international solidarity.

AGS sponsors two Planète Urgence programs:

Objectives:

So in 2010, AGS is committed to planting a tree for every international move carried out by us.

In April 2010, the AGS Group planted 10 000 trees in Mali and 5 000 in Indonesia in partnership with Planète Urgence.

Our goal is to plant 40 000 trees in 2010.

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Principle n°8: Companies are urged to take initiatives aimed at promoting more responsibility as regards the environment

An uncontrolled use of resources or a lenient policy on waste treatment has a great negative effect on our local environment and on our global natural resources.

The AGS Group was one of the first companies in the removals industry to engage in a recognized and certified Quality approach, and together with our partners in business (AFNOR, FIDI, AFDI, etc.), we are always continuing this work and participating in the improvement of services that we offer our clients. This approach was formalized through the creation of a management structure to control our services, including: packing, loading, import, export, storage, customer care, subcontracting and human resources.

All AGS branches worldwide are subject to regular on site checks to assess compliance with procedures and to ensure that environmental criteria are met and that they also meet our partners' standards regarding the environment.

Our commitment to the environment:

In order to measure the impact of our actions to reduce our environmental footprint, AGS is collecting consumption figures, which allows us to set new goals for the years to come (see table below). We expect a decrease of 2% in the consumption of fuel, water, electricity and paper at the end of 2010 and we plan to increase paper recycling by 10%[1].

Figures from the largest branch (SOFDI in Paris)

SOFDI Paris 2008 2009 2010 Objectives
Consumption of diesel oil in litres
400 807
357 614
-2%
Consumption of water in litres
1 213
1 459
-2%
Consumption of electricity in KWH
639 784
629 579
-2%
Paper used in tonnes
2 286 131
2 289 509
-2%
Paper recycled in tonnes
918
1 354
+10%

 

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Principle n°9: Companies are urged to promote the development and distribution of environmentally friendly technologies

The AGS Group maintains a strategy that is positive and proactive regarding the future. Our investments in environmentally friendly technologies demonstrate our proactive approach in this area.

Example n°1

At the end of 2009, AGS built new offices and warehouses in London equipped with the latest technology in sustainable development.

With the introduction of heat pumps and photovoltaic panels, significant reductions in carbon emissions are made on site not only for the benefit of our Group, but also and especially for the local community. The use of heat pumps is also a step forward in helping the UK meet its carbon reduction targets set by the Kyoto Protocol.

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Example n°2

In recent years, AGS has invested in the upgrading of its work tools and in particular, the creation of the European Liftvan (small steel container of 10m ³ for road transportation).

This small capacity container (10 m³) is perfectly suited for removal operations in urban areas. Because of its small size, it can be easily loaded onto a 7.5 tonne truck, which circulates in the city much more easily than a 19 tonne truck.

Besides the many advantages in terms of improving the quality of service, this container has some advantages in regards to the environment. Its compact size allows it to be shipped through conventional carriers, which avoids partial loading and helps to reduce the number of trucks on the road and at the same time, emissions of CO². After a year of testing and developing prototypes we have now equipped all our branches in Europe with approximately 800 containers and we will maintain a steady pace of new acquisitions each year.

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Example n°3

AGS has implemented a policy of river transportation aimed at limiting CO² emissions and reducing congestion on roads.

The removals branch AGS France transports 1,000 containers (TEU) by barge each year between the port of Le Havre and AGS Paris in Gennevilliers. This river transit can reduce CO² emissions by 60% compared to standard road transportation and it avoided the release of 133 tonnes of CO² in 2009.

Data in figures:

CO2 emissions for a TC20 transported by road between Le Havre and AGS Paris:

Emissions of CO² for a TC20 transported by river between Le Havre and AGS Paris

Our goal is to increase our river transportation from 5 to 10%[1] in the years to come, which will help in avoiding the release of 140 to 150 tonnes of CO² per year.

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Labour standards

As a responsible corporate citizen, the AGS Group meets the labour standards set by the International Labour organisation and puts people at the centre of its development. The Group has an ambitious social policy designed to offer its employees the best working conditions and professional development.

Principle n°5: Companies are urged to contribute to the effective abolition of child labour

AGS operates in 75 countries in which we practice the same standards and promote the same values: quality, performance, respect, innovation and solidarity.

In countries where child labour is at times illegally practised, AGS ensures the integrity of its local partners whether they are clients, suppliers or agents.

AGS selects its professional partners according to quality criteria as well as ethics. Moral commitment not to use children as labour (referring to ILO Conventions Nº 138 and Nº 182 of the International Labour Organization to define child labour) is required.

Principle n°6: Companies are urged to contribute to the elimination of any discrimination with regard to employment and occupation

As an international organisation, AGS has an open and diversified recruitment policy that enriches the Group.

Recruitment

Because the Group operates in three continents and our clients are themselves from different countries, we made sure to eliminate any language barrier. We employ people of different nationalities in order to facilitate communication between our staff and clients. We have identified about twenty foreign languages spoken by our branch managers and our employees within the Group. Furthermore, in each branch we are almost exclusively recruit local staff to contribute to local economic development and to ensure that our business is conducted in accordance with local culture and traditions.

Parity

Removals, the centre of the Group's business, has by virtue of its demanding nature long been dominated by men but we welcome more and more women among our employees and encourage their professional advancement. To date we have 16 female managers in our 125 branches (from only 11 in 2008). And although our staff count in the branches is still predominantly male, our staff at the head office displays a perfect parity (see charts).

Our goal is to achieve a ratio of 60% men to 40% women for branch staff by 2015.


Training

Training plays a vital role in the development of our employees and it is the reason why every year the Group allocates a large budget for "exceptional" training (which excludes training provided by the branches and training that is required by the law). These programs allow our employees to have the best resources to enhance their work experience and advance in their careers.

In 2009, €175 200 was spent on exceptional training and the 2010 budget has set aside €200 000.

Professional integration

Finally, AGS actively supports the International Volunteer Programme (VIE) initiated by Ubifrance. This program provides young graduates with international experience designed to improve their employability and professional integration. The Group sent 155 VIE candidates on missions across the globe since 1999 and has 30 currently on assignment (22 in Africa, 5 in Europe and 3 in Asia).

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[1] These objectives are likely to be reviewed according to the level of activity in 2010.