V. Methodological note

Criteo’s CSR report follows dispositions of article R. 225-102-1 of French Commercial Code.

1. Reporting period

All information collected and highlighted in the CSR report covers the period from January 1, 2017 to December 31, 2017.

2. Reporting scope

In terms of scope, the aim of the CSR reporting scope is to match with the financial reporting scope.

Due to an important number of offices among Criteo legal entities and the likely issues to recover exhaustive and reliable information (such as electricity consumption, water consumption, waste quantity, etc.) in the small offices, Criteo has made the decision to only involve the most important offices during the collection of quantitative data.

Hence, to ensure reliable quantitative information and boost continuous improvement, the Criteo’s CSR reporting scope for 2017 considers the major worldwide legal entities that are financially linked to a data center infrastructure or those with more than 50 employees at the end of 2017.

Vigilance point: Legal entities that joined Criteo’s financial scope in year N should be included in the CSR reporting scope in year N+1.

Thus, for FY2017, the reporting scope on quantitative information covers the following legal entities and offices (it covers 91% of the overall Criteo’s workforce):

3. Relevance of CSR indicators

Criteo’s choice of a panel of CSR KPIs has been made from:

• A benchmark on CSR best practice among IT sector leaders
• Workforce-related, environmental and social impacts and risks analysis of Criteo’s activity
• Indicators specified in article R. 225-102-1 of the French Commercial Code
• Global Reporting Initiative (GRI) G4 guidelines
• Specific indicators to Criteo’s Human Resources policy

4. Consolidation & internal controls

Data collected during the CSR reporting process is controlled by “validation managers”. For each KPI, a dedicated person is in charge of data control and performs consistency tests listed within Criteo’s reporting procedure.

To avoid discrepancies during the KPI reporting process, each validation manager performs the following controls:

• Lack of data: Verification of the presence for the overall data. Lack of data must be justified by the person in charge of the KPI.
• Data consistency: Verification of data consistency compared to last year’s data. Significant annual variations must be justified and documented.

Moreover, regarding the annual validation of Criteo’s headcount, the Human Resource team performs a looping control as follows (also taking into account the potential acquisition of a company):

Headcount [Year Y] = Headcount [Year Y-1] + Recruitments [Year Y] - Leaves [Year Y]

5. External controls

To ensure accurate and reliable information, Criteo has mandated since 2016 an independent third-party body to verify and validate the reliability of Criteo CSR information. A thorough control process is important. Data, together with methods of calculation and consolidation, must be externally verifiable. The nature of verification work conducted and external conclusions are available on demand.

6. CSR indicators — calculation & estimation methods

Headcount:

The headcount figures include all Criteo employees on the last day of the year:

• Permanent employees (whose work for Criteo is not limited to a fixed term)
• Non-permanent employees (fixed-term contracts, work-study contracts)
• Employees who are momentarily on leave of absence and are therefore inactive (parental leave, sabbatical leave, long illness, etc.)
• Employees of a legal entity seconded to another legal entity and expatriates
• Employees leaving the company on the last day of the year

Compensation:

Highlighted in gross, including basic wage and variable pay. The currency exchange rates used are the following:

Training:

Where face-to-face training hours are related to sessions running over two consecutive years, only sessions completed in year N are considered. If a session has started during year N and finishes in year N+1, it has to be included within year N+1 figures.

If employees attended more than one training session during the reporting period, all training hours of these trainings must be reported.

Training hours of employees who left the company during the reporting period are included in the calculation of training hours.

Training hours of school interns, sub-contractors or consultants who have been trained by Criteo are not included in the calculation of training hours.

Face-to-face training hours

Are considered:

• The number of training hours that employees attended (not the number of training hours that employees registered for) and which has been reported by HR business partners to the global learning & management development team
• Individual coaching or state of the art co-development sessions
• Management and leadership development modalities

Are excluded:

• Seminars, conferences, working groups, open days
• On-boarding training sessions and resources (FlyCriteo program)

E-learning training hours

Are considered:

• Only theoretical hours, not the actual “on-line connection time”
• Training content completed at 51% and more

Are excluded:

• Time logged in The Learning Zone
• Training content completed at less than 50%
• Training content started in 2016
• Training content only related to assessment or quiz
• Training content only based on “document reading” or “link to document”
• Training content related to basic IT application tutorials for all employees (expenses reports, HR Information System)
• Programs and content pushed/prescribed to all employees for compliance purposes or for IT application upskill

Business trips:

Data from business travel agency, EGENCIA, includes all Air Travel Scope except Korea, Japan, Brazil, Russia and UAE. Train trips are not included. Hence, the business trips considered in the CO₂ emission calculation represent 91% of the travel spend.

Water consumption of offices:

Where there is a missing value, the following ratio⁵ has been used to get an estimate of the daily quantity of water consumed per person: 0.04 m³/day/employee.

Electricity consumption of offices:

Where there is a missing value, the following ratio⁶ has been used to get an estimate of the quantity of electricity consumed per square meter: 206 kWh/m² per year.

Electricity consumption of data centers:

• In 2016, data estimation was based on Criteo’s internal dashboards (Carbonite project).
• In 2017, actual data was provided by Criteo’s data room providers.
• Electricity consumption includes all data centers except Point of Presence servers (POPS) for which power need is negligible.

Amount of renewable energy consumed for offices and data centers:

The national renewable energy rates used are (source: ADEME):

• France = 0.181
• Brazil = 0.812
• Germany = 0.301
• Spain = 0.401
• United Kingdom = 0.256
• United States = 0.154
• Japan = 0.174
• Singapore = 0 (negligible)
• South Korea = 0.023
• China = 0.257

⁵http://www.ddline.fr/wp-content/uploads/2013/06/rapport_final_v2-sinteo-arseg.pdf
⁶https://ile-de-france.ademe.fr/sites/default/files/files/DI/Economies-energie/consommations-energie-bureaux-idf.pdf

CO₂ emissions from electricity consumption of offices:

Emission coefficients per country from ADEME 2016 database have been used for the calculation.

CO₂ emissions from electricity consumption of data centers:

Emission coefficients per country from ADEME 2016 database have been used for the calculation, except for Hong Kong where a rate of 0.580 *10^-3 has been used from CLP database (local electricity supplier).

Quantity of office waste produced:

Where there is a missing value, office waste volumes have been estimated according to:

• Either volume of waste bin and frequency of communal waste collection, some hypothesis of density allowing a conversion in tons are used. Those coefficients are stated within the ADEME methodology,
• Or the estimation of 120 kg of office waste per employee per year (source: CNIID).

7. Article R. 225-102-1 of the French Commercial Code — information not disclosed

Given the nature of its activity and business, Criteo does not produce any matter that may severely and directly affect the environment. Consequently, this report does not contain disclosures on the following environmental issues required under article R. 225-102-1 of the French Commercial Code:

• “Prevention of environmental risks and pollution”
• “Pollution prevention, reduction and rehabilitation”
• “Noise and any other specific form of pollution”
• “Biodiversity”