Climate Change Data

Danone

Climate Impact & Sustainability Data (2014, 2016, 2019, 2021, 2022, 2023, 2024)

Reporting Period: 2014

Environmental Metrics

ESG Focus Areas

  • Social, Societal and Environmental Responsibility
  • Sustainable industrial and agricultural models
  • Nutrition

Environmental Achievements

  • Reduction of carbon intensity by 42% from 2008 to 2014

Social Achievements

  • Ranked No. 1 in the ATNI index (Access To Nutrition Index)
  • Ranked in leading social responsibility indexes: Dow Jones Sustainability Index, Vigeo, Ethibel Sustainability Index

Governance Achievements

  • Separation of chairman and CEO functions, strengthening the Chairman’s duties

Climate Goals & Targets

Short-term Goals:
  • Organic growth in sales of between +4% and +5% on a like-for-like basis in 2015
  • Slight growth in trading operating margin on a like-for-like basis in 2015

Environmental Challenges

  • High milk price inflation
  • False safety alert issued by Fonterra in 2013
  • Decline in Dumex brand sales in China
  • Difficult and unstable economic environment
  • Fragile or deflationary consumer trends in Europe
  • Volatile currencies in emerging markets
Mitigation Strategies
  • Cost reduction and adaptation plan in Europe
  • Actions to improve product portfolio mix
  • Innovation, distribution and partnerships in the US
  • Price increases in CIS region
  • Action plans to restore sales in affected Asian markets
  • Focus on developing product categories and winning market share

Supply Chain Management

Responsible Procurement
  • Close cooperation with local milk producers to improve animal husbandry practices

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

  • 100% plant-based plastic bottle

Reporting Period: 2016

Environmental Metrics

ESG Focus Areas

  • Nutrition
  • Health
  • Sustainability

Environmental Achievements

  • Reduced sugar content in various products (e.g., Activia Prune, Danonino, Bonafont)
  • Initiatives to promote sustainable agriculture and responsible packaging (mentioned but not quantified)

Social Achievements

  • Launched numerous programs to address local public health challenges (e.g., obesity, malnutrition, calcium deficiency) in partnership with governments and NGOs
  • Improved nutritional quality of products (e.g., increased vitamins and minerals, reduced sugar, fat, and salt)
  • Developed healthier alternatives to existing products
  • Implemented responsible marketing practices, especially towards children
  • Provided appropriate product labeling to encourage healthier practices
  • Supported research and innovation in nutrition and health

Governance Achievements

  • Established a Product Compliance Board to ensure product compliance with regulations and Danone rules
  • Created a Nutrition Steering Committee to establish Danone's nutrition strategy and measure performance
  • Implemented systematic reporting systems (Danone Way and Nutrition & Health Scorecard)
  • Independent third-party assurance provided by KPMG

Climate Goals & Targets

Environmental Challenges

  • Addressing public health issues like obesity and malnutrition in various regions
  • Balancing consumer preferences with nutritional improvements
  • Ensuring responsible marketing practices, particularly for children
Mitigation Strategies
  • Developed healthier product alternatives
  • Implemented responsible marketing policies and external audits
  • Partnered with governments and NGOs to address public health challenges
  • Improved product labeling and provided nutritional information

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

  • FTSE4Good Index

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:27,179 kt CO2e
Scope 1 Emissions:722 kt CO2e
Scope 2 Emissions:588 kt CO2e
Scope 3 Emissions:25,869 kt CO2e
Renewable Energy Share:19.7%
Total Energy Consumption:5,421,311 MWh
Water Consumption:73,064,000 m3
Waste Generated:511 kt
Carbon Intensity:740.1 grams of CO2e/kg of product sold

ESG Focus Areas

  • Health and Nutrition
  • Environment
  • Social
  • Responsible Sourcing and Human Rights
  • Governance

Environmental Achievements

  • Reduced energy consumption intensity by 1.1% in 2019; 47% reduction since 2000.
  • Reduced water consumption intensity by 1.9% in 2019; 49% reduction since 2000.
  • Increased renewable energy share to 19.7% of total energy consumed in 2019.
  • 87% of sites compliant with GREEN standards in 2019.
  • 86% of production sites achieved FSSC 22000 certification in 2019.
  • 81% of Danone’s packaging is recyclable, reusable, or compostable in 2019 (like-for-like increase).
  • 90.1% of industrial waste recovered in 2019.
  • 88.6% of food waste recovered in 2019.

Social Achievements

  • Launched the Dan’Cares program, providing healthcare coverage to 99,627 employees in 53 countries in 2019.
  • Implemented parental benefits policy in 18 countries in 2019.
  • 83% of employees received at least one training course in 2019.
  • Improved animal welfare practices, reaching Tier 2 of the Business Benchmark on Farm Animal Welfare.
  • Launched MilQSat initiative to assess farmer performance on quality, food safety, and traceability.

Governance Achievements

  • Implemented a confidential whistleblowing system (Danone Ethics Line), receiving 355 alerts in 2019.
  • Incorporated environmental and social performance criteria into variable compensation for 1,600 senior executives.
  • 20 Danone entities are B Corp™ certified, covering more than a third of consolidated sales.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality across the entire value chain by 2050.
Medium-term Goals:
  • Achieve 100% rPET bottles for evian and Volvic brands by 2025.
  • Use 25% recycled materials in plastic packaging by 2025.
  • Reduce unrecovered food waste by 50% by 2025.
Short-term Goals:
  • Achieve zero fatal accidents and 50% reduction in workplace accidents requiring medical absence by 2020.
  • Achieve 100% compliance with Danone Clean Water Standards by 2020.
  • Reduce water consumption in production processes by 60% relative to 2000 by 2020.

Environmental Challenges

  • Climate change impacts on ingredient availability, production sites, water resources, packaging material prices.
  • Supply chain disruptions due to social and environmental risks.
  • Maintaining food safety and quality across the value chain.
  • Ensuring responsible marketing practices, particularly towards children.
  • Reducing greenhouse gas emissions across the entire value chain.
Mitigation Strategies
  • Developed a climate policy with a target of carbon neutrality by 2050.
  • Implemented regenerative agriculture practices.
  • Developed a Forest Footprint Policy to eliminate deforestation by 2020.
  • Implemented the iCare program to strengthen food safety culture.
  • Developed a responsible communication policy aligned with the ICC Code and EU Pledge.
  • Implemented the WISE² program to improve workplace health and safety.
  • Developed the RESPECT program for responsible sourcing and human rights.

Supply Chain Management

Supplier Audits: 573 SMETA audits in 2019

Responsible Procurement
  • RESPECT program
  • Sustainability Principles for business partners
  • Code of Conduct for Business Partners

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Water scarcity
  • Ingredient availability
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Regenerative agriculture

Reporting Standards

Frameworks Used: GRI, UN Global Compact, UN Sustainable Development Goals (SDG)

Certifications: ISO 14001, ISO 50001, FSSC 22000

Third-party Assurance: PricewaterhouseCoopers Audit

UN Sustainable Development Goals

  • Goal 6 (Clean Water and Sanitation)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)

Danone's initiatives contribute to these goals through various environmental and social programs.

Sustainable Products & Innovation

  • Plant-based products
  • Products with probiotics, nutrients, and proteins
  • Recyclable and compostable packaging

Awards & Recognition

  • CDP Triple A score for Climate Change, Forests, and Water

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:24,711 ktCO2e/year
Scope 1 Emissions:683 ktCO2e/year
Scope 2 Emissions:295 ktCO2e/year
Scope 3 Emissions:23,733 ktCO2e/year
Renewable Energy Share:29.8%
Total Energy Consumption:5,199,087 MWh/year
Water Consumption:67,749,000 m3/year
Waste Generated:364 kt/year (industrial)
Carbon Intensity:679 gCO2e/kg of product sold in 2021

ESG Focus Areas

  • Health & Nutrition
  • Environment (including climate change)
  • Social (including workplace health and safety)
  • Responsible Sourcing & Human Rights
  • Governance

Environmental Achievements

  • Reduced scope 1 and 2 emissions by 14.8% between 2020 and 2021
  • Reduced full scope GHG emissions by 3% on a like-for-like basis compared to 2020
  • Increased renewable energy share to 29.8% of total energy use in 2021
  • 87 production sites purchased 100% renewable electricity in 2021
  • 99.8% of paper and board packaging made of recycled or certified fibers in 2021
  • 84% of packaging recyclable, reusable, or compostable in 2021
  • Reduced industrial waste by 16% between 2020 and 2021
  • Reduced food waste ratio by 5.3% (excluding waste for animal feed and biomaterials) between 2020 and 2021

Social Achievements

  • Launched the “Future of Work” study to improve working conditions
  • Increased percentage of women in senior management positions to 41%
  • Reduced gender pay gap to 3.1 points
  • Deployed FutureSkills initiative to support employee reskilling
  • Reduced FR1+2 rate (lost-time and non-lost-time accidents) by 8%
  • 91,672 employees received health coverage in 55 countries through Dan’Cares program
  • Implemented Employee Assistance Program (EAP) in 28 countries

Governance Achievements

  • Established a sustainability governance structure with various committees
  • Implemented a worldwide compliance program with anti-corruption measures
  • Received 568 alerts on various issues, none with material impact on consolidated accounts
  • Vetted over 14,425 third parties, with 95% approved

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero emissions across the entire value chain by 2050
Medium-term Goals:
  • Achieve 100% renewable electricity by 2030
  • Reduce full scope GHG emissions intensity by 50% by 2030
  • Implement regenerative agriculture practices across all key ingredients by 2030
Short-term Goals:
  • Achieve 100% recyclable, reusable, or compostable packaging by 2025
  • Reduce water consumption intensity of high-risk production sites by 50% by 2030
  • Reduce food waste ratio by 50% by 2025
  • 50% women in senior management positions by 2025

Environmental Challenges

  • Supply chain disruptions due to climate events
  • Covid-19 pandemic impact on operations and reporting
  • Transition risks related to climate change
  • Water stress and thermal stress on the milk supply chain
Mitigation Strategies
  • Developed alternative sourcing strategies
  • Implemented action plans to address Covid-19 challenges
  • Developed climate change scenarios and adaptation strategies
  • Implemented regenerative agriculture practices to improve water resource management

Supply Chain Management

Supplier Audits: 117 on-site or virtual assessments of high-risk suppliers in 2021

Responsible Procurement
  • Sustainability Principles incorporated into contracts with Tier 1 suppliers
  • RESPECT program for Tier 1 suppliers
  • Use of Sedex and Ecovadis platforms for supplier assessment

Climate-Related Risks & Opportunities

Physical Risks
  • Water stress
  • Extreme weather events
  • Thermal stress on milk supply chain
Transition Risks
  • Shift to plant-based alternatives
  • Carbon pricing
  • Growing consumer engagement in fighting climate change
  • Increasing reporting obligations
Opportunities
  • Development of energy-efficient products
  • Regenerative agriculture practices

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, FSSC 22000

Third-party Assurance: PricewaterhouseCoopers Audit

UN Sustainable Development Goals

  • Goal 6 (Clean Water and Sanitation)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)

Danone's initiatives contribute to these goals through various programs and commitments related to water stewardship, renewable energy, waste reduction, and climate change mitigation.

Sustainable Products & Innovation

  • Reusable water containers
  • Paper-based cups
  • PET yoghurt pots
  • Bio-based plastic packaging

Awards & Recognition

  • CDP's triple A rating for climate change, forests, and water
  • Access to Nutrition Index ranking
  • FTSE4Good Index membership
  • Bloomberg Gender-Equality Index membership
  • Equileap ranking for gender equality
  • Arborus Foundation's Gender Equality Diversity and Internal Standard Award

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:24,207 ktCO2e/year
Scope 1 Emissions:831 ktCO2e/year
Scope 2 Emissions:276 ktCO2e/year
Scope 3 Emissions:23,100 ktCO2e/year
Renewable Energy Share:31.4% of total energy use
Total Energy Consumption:5,132,687 MWh/year
Water Consumption:66,883,000 m3/year
Waste Generated:344 kt/year (excluding Water category food waste)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Health
  • Nature
  • People & Communities

Environmental Achievements

  • Achieved AAA status from CDP for environmental leadership on climate, forests, and water security for the fourth consecutive year.
  • 1.5°C FLAG Target approved by Science Based Target Initiative for Forest, Land, and Agriculture.
  • Launched Global Energy Excellence Program, Re-Fuel Danone, to improve energy efficiency.
  • Signed the WASH Pledge.
  • Issued renewed Forest Policy and Human Rights Policy.

Social Achievements

  • 74.2% of global sales covered by B Corp certification.
  • Continued progress towards gender balance in management.
  • Improved employee engagement scores.
  • Implemented WISE2 program to reduce workplace accidents.
  • Launched various initiatives to support vulnerable communities.

Governance Achievements

  • Established a sustainability governance structure with the Global Sustainability Board and Global Sustainability Compliance Board.
  • Linked executive compensation to ESG performance.
  • Appointed a Mission Committee to monitor progress towards mission objectives.
  • Implemented a robust compliance program including the Danone Ethics Line.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions by 2050.
  • Halve the use of virgin fossil-based packaging by 2040.
  • Recover as much plastic as used by 2040.
Medium-term Goals:
  • Reduce absolute scope 1 and 2 GHG emissions by 47.2% by 2030.
  • Reduce absolute scope 3 GHG emissions by 42% by 2030.
  • Reduce absolute scope 1 and 3 FLAG GHG emissions by 30.3% by 2030.
  • Achieve 100% reusable, recyclable, or compostable packaging by 2030.
  • Reduce virgin fossil-based packaging by 30% by 2030.
Short-term Goals:
  • Reduce water consumption intensity by 50% at high-risk production sites by 2030.
  • Improve energy efficiency by 30% by 2025.
  • Source 30% of key ingredients from farms transitioning to regenerative agriculture by 2025.
  • Achieve zero deforestation and conversion on key commodities by 2025.
  • Reduce food waste by 50% by 2030.

Environmental Challenges

  • Availability of ingredients due to climate change.
  • Extreme climate events affecting production sites.
  • Water resource availability and watershed degradation.
  • Price volatility of packaging materials.
  • Financing the transition to sustainable agricultural practices.
  • Supply chain disruptions.
  • Underdeveloped reuse, collection, and recycling infrastructure.
  • Scarcity of recycled content.
Mitigation Strategies
  • Developed alternative sourcing strategies.
  • Implemented regenerative agriculture programs.
  • Improved water efficiency in production sites.
  • Developed a circular economy approach to packaging.
  • Invested in reforestation and ecosystem restoration programs.
  • Implemented the Re-Fuel Danone program to improve energy efficiency and increase renewable energy use.
  • Developed the Sustainable Dairy Partnership (SDP) to engage with dairy suppliers on sustainability.
  • Invested in the Circulate Capital Ocean Fund (CCOF) to develop recycling infrastructure.

Supply Chain Management

Supplier Audits: 85 sites completed on-site or virtual assessments in 2022.

Responsible Procurement
  • Danone Sustainability Principles (DSP)
  • Code of Conduct for Business Partners
  • RESPECT program
  • Sustainable Dairy Partnership (SDP)

Climate-Related Risks & Opportunities

Physical Risks
  • Availability of ingredients due to extreme weather events.
  • Water stress and thermal stress on the milk supply chain.
  • Extreme events affecting direct operations.
Transition Risks
  • Shift to plant-based alternatives.
  • Growing consumer engagement in fighting climate change.
  • Carbon pricing.
  • Increasing reporting obligations.
Opportunities
  • Development of energy-efficient products.
  • Growth of plant-based products.

Reporting Standards

Frameworks Used: GRI, SBTi, TCFD, UNGC, ISO 14001, ISO 22000, FSSC 22000, B Corp

Certifications: ISO 14001, FSSC 22000

Third-party Assurance: Mazars

UN Sustainable Development Goals

  • Goal 6 (Clean Water and Sanitation)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)

Danone's initiatives contribute to these goals through various programs and policies.

Sustainable Products & Innovation

  • Plant-based products
  • Reusable packaging

Awards & Recognition

  • CDP Triple A rating
  • Bloomberg Gender-Equality Index
  • Human Rights Campaign Foundation’s Corporate Equality Index
  • Arborus Foundation Gender Equality Award

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:21.9 Mt CO2e (2020)
Renewable Energy Share:70% electricity (2022), 7% thermal energy (2022)

ESG Focus Areas

  • Climate Change

Environmental Achievements

  • Reduced GHG emissions by 17% between 2020 and 2022 (Direct Operations)
  • More than 70% of electricity from renewable sources in 2022 (Direct Operations)
  • More than 7% of thermal energy from renewables in 2022 (Direct Operations)
  • 84% of packaging in 2022 is reusable, recyclable or compostable
  • Reduced plastic use by 31,000 tons and virgin plastic by nearly 71,000 tons between 2018 and 2022
  • Nearly doubled the use of recycled materials in plastic packaging since 2018, reaching 11.9% in 2022
  • 300kT reductions in milk-related emissions between 2020 and 2022
  • 22% reduction in emissions factors of ingredients sourced from Royal FrieslandCampina between 2015 and 2022

Social Achievements

  • Launched Partner for Growth program in 2023 engaging 50 partners
  • Danone North America Soil Health Program reduced nearly 119,000 metric tons of CO2 equivalent and sequestered more than 31,000 tons of carbon since 2017

Governance Achievements

  • Executive remuneration aligned with transition plan goals
  • 2023 GPS plan includes internal sustainability performance conditions for 30% of the assessment and includes a performance condition on the like-for-like reduction of GHG emissions
  • CEO has a short-term incentive tied to climate performance in 2023

Climate Goals & Targets

Long-term Goals:
  • Net-Zero emissions by 2050
Medium-term Goals:
  • 35% renewable thermal energy by 2030
  • 100% renewable electricity by 2030
  • 30% improvement in energy efficiency in factories by 2025
  • 70% recycling rate by 2030
Short-term Goals:
  • Reduce absolute emissions by 34.7% by 2030 (compared to 2020 baseline)
  • 30% reduction in methane emissions from fresh milk by 2030
  • 30% of key ingredients from farms engaged in regenerative agriculture by 2025
  • 100% reusable, recyclable or compostable packaging by 2030
  • 30% reduction in virgin fossil-based packaging by 2030

Environmental Challenges

  • Development of the renewable energy market
  • Transition of all assets to renewable electricity and thermal energy sources
  • Thermal energy transition
  • Dependence on dairy farms' actions for decarbonization
  • Climate change adaptation for resilient and low-carbon farms
  • Consistent global standards for long-term carbon removals through agriculture
  • Systemic barriers slowing down circular economy of packaging (underdeveloped collection and recycling infrastructure, underdeveloped reuse infrastructure, scarcity of recycled material)
  • Need for collective action across the value chain for circular economy of packaging
  • Different levels of carbon footprint and decarbonization maturity across regions and farms
  • Demographic changes and urbanization posing risks to availability of sustainably-produced raw materials
Mitigation Strategies
  • Re-Fuel program for energy efficiency, renewable thermal energy, and renewable electricity
  • Regenerative agriculture programs
  • Renewed Forest Policy (verified deforestation and conversion free supply chains by 2025)
  • Supplier engagement program (embedding decarbonization goals into contracts, co-developing decarbonization plans, investing in on-the-ground projects)
  • Shift to lower-carbon materials, packaging optimization, value chain engagement, end-of-life treatment improvements
  • Optimization & Efficiency, Modal shift, Low-carbon warehouses initiatives, Innovative technologies in logistics
  • Aligning direct operations decarbonization actions with co-manufacturing partners, engaging co-manufacturing partners to commit to SBTi targets
  • Integrating carbon footprint into innovation and renovation processes, innovative lower carbon packaging and formats, developing lower carbon ingredients, fostering innovation and breakthrough technologies, portfolio management
  • Livelihoods Funds for projects allying decarbonization with social and environmental benefits
  • Developing strategy for addressing residual emissions through permanent removals

Supply Chain Management

Responsible Procurement
  • Responsible Sourcing Policy (by 2030)
  • Sustainable Dairy Partnership (SDP)
  • Deforestation and Conversion Free commitments

Climate-Related Risks & Opportunities

Physical Risks
  • Water stress and thermal stress on milk supply chain
  • Water stress and thermal stress on agricultural ingredients
  • Extreme events affecting direct operations
  • Water stress on direct operations
Transition Risks
  • Shift to plant-based alternatives
  • Growing consumer engagement in fighting climate change
  • Carbon pricing in procurement of packaging and logistics
  • Carbon pricing in the cost of direct operations
  • Increasing reporting obligations
Opportunities
  • Shift to plant-based alternatives
  • Growing consumer engagement in fighting climate change
  • Carbon pricing in procurement of packaging and logistics
  • Carbon pricing in the cost of direct operations
  • Energy efficiency initiatives and transition to renewable energy

Reporting Standards

Frameworks Used: SBTi, TCFD, GHG Protocol

Certifications: ISAE 3000

Third-party Assurance: Independent third-party

Sustainable Products & Innovation

  • Plant-based products (Silk, Alpro)
  • Fortimel Plant Based Energy

Reporting Period: 2024

Environmental Metrics

ESG Focus Areas

  • Social Principles
  • Environmental Principles
  • Business Ethics Principles

Climate Goals & Targets

Long-term Goals:
  • Net gain from 2030 and full recovery by 2050 (Biodiversity).
Medium-term Goals:
  • Deploy SSP to all suppliers by 2030.
  • Achieve 100% packaging designed to be reusable, recyclable, or compostable and 30% virgin fossil-based reduction by 2030.

Environmental Challenges

  • Increasing incidents of modern slavery in global supply chains.
  • Seven of the eight planetary boundaries needed to protect life have been breached.
Mitigation Strategies
  • Launched Danone Impact Journey in 2023, focusing on Health, Nature, and People & Communities.
  • Developed Danone Sustainable Sourcing Policy (SSP) to establish fair, sustainable, and ethical relationships with suppliers.
  • Engaged with diverse stakeholders (union representatives, NGOs, international experts) to develop the SSP.

Supply Chain Management

Responsible Procurement
  • Danone Sustainable Sourcing Policy (SSP)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Guiding Principles on Business & Human Rights (UNGPs), International Bill of Rights, International Labour Organization (ILO) eight core conventions, OECD Responsible Business Conduct due diligence approach, Science Based Target for Nature (SBTN), Taskforce on Nature-related Financial Disclosures (TNFD), Accountability Framework Initiative (AFI), EU regulation on deforestation-free products, ISO 14001