INTEGRATED

ANNUAL REPORT 2022

DANONE’S SUSTAINABILITY PERFORMANCE
APRIL 2023
 ABOUT THE REPORT TABLE OF CONTENTS

5 INTRODUCTION
BY OUR CEO 12 DANONE IMPACT
JOURNEY
FOR 2022, WE DECIDED TO GO FURTHER IN THE INTEGRATION OF BUSINESS

7 45 MATERIALITY
AND SUSTAINABILITY WITHIN OUR REPORTING, SO AS TO BETTER

DANONE AT
DEMONSTRATE HOW THEY ARE INHERENTLY LINKED WITHIN OUR GROUP.

Our 2022 Integrated Annual Report thus provides a comprehensive overview of

the Group mission, governance, objectives and performance. It reaffirms our dual A GLANCE
commitment to simultaneously achieve economic success and social progress, which
has now been enshrined within our by-laws through our “Société à Mission” status.

9 51 GOVERNANCE
We also focus on the sustainability issues that are central to our business, showing how
they are connected to our operations and broader value chain. Our intention with this
report is to be transparent, not only about how we are pursuing our sustainability OUR
objectives, but also, about the challenges we are currently facing in pursuing them. CATEGORIES
METHODOLOGY AND ACKNOWLEDGEMENTS

11 55
The 2022 Integrated Annual Report was created by Danone’s Sustainability
RENEW SHAREHOLDING
Performance team, with the support and supervision of the relevant thematic
expert teams, who were instrumental in ensuring its achievement, through
data collection and key testimonies.
DANONE STRUCTURE

3 4
 INTRODUCTION STATEMENT FROM OUR CEO,
ANTOINE DE SAINT-AFFRIQUE

DEAR READERS,
2022 was a year like no other. In the midst of one of the first companies with a Science-Based
unprecedented external challenges, we: Targets initiative (SBTi) certified 1.5°C trajectory,
including specific Food, Land, and Agriculture
• launched a new strategy, Renew Danone targets. In addition, we continued to push the
• celebrated the 50th anniversary of the Dual frontier in regenerative agriculture, with a specific
Project and Antoine Riboud’s Marseille speech focus on regenerative dairy. Capitalizing on
• re-emphasized our commitment to healthier momentum from pilots in methane reduction,
and more sustainable lifestyles through our we developed absolute reduction targets for
sponsorship of the 2024 Olympic Games, and fresh milk, to achieve a 30% reduction in methane
emissions by 2030 (announced in early 2023).
• set our sustainability priorities for the coming Our leadership in environmental transparency
years, focusing on health, nature, and people on climate change, forests, and water security
and communities was once again recognized in 2022, with Danone
achieving a Triple A CDP rating for the fourth year
These achievements have one common goal: to in a row.
deliver on our mission of bringing health through
foods to as many people as possible – health for We could not have achieved what we did in 2022
today’s generation, future generations, and for our without the passion of our employees and their
planet. continued engagement. Moving forward, we
believe that we have everything it takes to continue
If you look at the financial results, 2022 was to be pioneers in sustainable value creation. We
indeed a solid year. Our 2022 net sales increased have a robust agenda to ensure long-term growth
by 7.8% compared to 2021, on a like-for-like basis. which is competitive, profitable and sustainable.

“2022 WASN’T JUST ABOUT FINANCIAL PERFORMANCE.

We significantly increased investments in brands Through our Impact Journey, which builds on
and core capabilities, after years of decline. We Renew Danone and is rooted in our Dual Project and
strengthened our competitive position in many our mission, we aim to step up our positive impact
countries such as the U.S., Japan, and China, and
we made progress in making our portfolio more
on health, nature, and people and communities
while driving performance. WE FURTHER STRENGTHENED OUR PLANS TO
resilient and better performing. Finally, we showed
disciplined capital allocation. I hope you will enjoy reading more about our main
achievements from 2022 and how we’re creating
REDUCE OUR IMPACT ON THE CLIMATE”
But 2022 wasn’t just about financial performance. sustainable value through products and innovation,
We further strengthened our plans to reduce and through our engagement with farmers, food
our impact on the climate, and increase the tech/entrepreneurs, public organizations, NGOs/
preservation of planetary resources. We became civil society, and Danone Communities.

A HUGE THANK YOU, AGAIN, TO ALL OUR DANONERS,

AS WELL AS OUR PARTNERS WORLDWIDE.
ANTOINE DE SAINT-AFFRIQUE

5 6
 DANONE AT A GLANCE CONTINUING OUR PATH TOWARDS SOCIÉTÉ À MISSION AND B CORP:

2022 KEY FIGURES

Danone’s mission is to bring “health through food to as many people as possible.” This
SOCIÉTÉ À MISSION
SINCE 2020
74.2%
DANONE’S
mission is rooted in our Dual Project, as it was defined in 1972 by the Group founder and first French listed GLOBAL NET SALES
then CEO Antoine Riboud during a landmark speech in Marseille. Today we have kept this company to adopt the covered by B Corp
ambition as part of Renew Danone to create both economic and societal value. “Société à Mission” status certification
(vs. 62% in 2021)
DELIVERING SUSTAINABLE GROWTH
LEADING POSITIONS
FOCUSING ON HEALTH

WORLDWIDE EUROPE
91%
WORLDWIDE

#1 #2 #1 OF THE GROUP VOLUME

SOLD IS FOCUSED ON
HEALTHY CATEGORIES (5)
in fresh dairy products, in packaged in adult
in plant-based foods waters and early-life nutrition
and beverages nutrition Key figures related to Health are developed on pages 17-24

KEY FINANCIAL FIGURES FOCUSING ON NATURE

27.7 BN +7.8%
€ (1)
12.2% (-154 bps )
(2)
€ 3.42 +3.6% (2)
€ 2.1 BN 2.5x € 2.00 VALIDATION BY THE SCIENCE-BASED
SALES RECURRING RECURRING FREE CASH NET DEBT/ DIVIDEND TARGETS INITIATIVE OF DANONE’S 1.5°C
OPERATING EPS FLOW EBITDA PER SHARE
MARGIN targets for scope 1, 2 and 3, including
Forest, Land and Agriculture (FLAG)

SALES BY GEOGRAPHIC ZONES

Key figures related to Nature are developed on pages 25-32

NORTH AMERICA (3) CHINA, NORTH ASIA REST OF THE

EUROPE & OCEANIA (4) WORLD
6% 10%
4%
34% 29% FOCUSING ON PEOPLE & COMMUNITIES
46% 19% 49%
€8.8bn €6.7bn €3.4bn €8.7bn
SCORE OF

86%
20% 71% 21%
91%
FOR THE
INCLUSION INDEX,
Essential Dairy and Plant-Based (EDP) Specialized Nutrition (SN) Waters measured through the
Danone People Survey

TOP 3 COUNTRIES IN TERMS OF SALES Key figures related to People & Communities are developed on pages 33-40
(IN % OF SALES):

#1 #2 #3
U. S. A. CHINA FRANCE In 2022, we also continued our collaboration with several value chain partners, including
farmers, entrepreneurs, consumers and communities, (see more in the following sections).

7 8
 SPECIALIZED NUTRITION
OUR CATEGORIES (SN)

POSITION:
IN 2022, DANONE WAS WORLDWIDE #2 IN INFANT
NUTRITION #4 IN ADULT
NUTRITION
ESSENTIAL DAIRY AND PLANT-BASED PRODUCTS
(EDP) IN SPECIALIZED NUTRITION DANONE HAS STRONG
LEADERSHIP PROVIDING BABY FORMULA
IN SPECIALIZED NUTRITION, DANONE ALSO
SUPPORTS PATIENTS WITH SPECIFIC NUTRITIONAL
grounded in our scientific expertise in biotics and NEEDS DUE TO A MEDICAL CONDITION,
50 years of advanced breastmilk science, with such as cow’s milk allergy, metabolic diseases,
product propositions like Aptamil Cesarbiotik 3 and cancer or stroke, through its paediatric and
and Aptamil Dairy & Plants Blend which recognize adult medical nutrition portfolio.
that every family’s feeding journey is unique.

POSITION: TOP 3 BRANDS IN SALES IN 2022

IN 2022, DANONE WAS WORLDWIDE #1 IN
DAIRY #1 IN
PLANT-BASED
#1
#2
#3
IN ESSENTIAL DAIRY PRODUCTS, MORE IN PLANT-BASED, DANONE IS A LEADER WITHIN A
THAN 60% OF DANONE’S REVENUES COME CATEGORY THAT CONTINUES TO GROW GLOBALLY,
FROM HIGH VALUE-ADDED FUNCTIONAL DRIVEN BY THE RISE OF FLEXITARIANISM.
SEGMENTS SUCH AS IMMUNITY, GUT
The Group is notably present in Europe (with
HEALTH, INDULGENCE, OR PERFORMANCE.
Alpro) and North America (with Silk), with a APTAMIL
For example, the high-protein platform, portfolio spanning across all key segments, from NUTRISON
spearheaded by brands like YoPRo, the established Beverages segment (ingredient- NEOCATE
launched only a few years ago, now has based with Almond or Oat, but also benefit-led with
sales exceeding €500M in 2022. blended products) to Yogurts and more nascent
WATERS
ones such as Cheese or Ice Cream.

#2
POSITION: IN
TOP 3 BRANDS IN SALES IN 2022 IN 2022, DANONE WAS WORLDWIDE WATERS

IN WATERS, THE GROUP IS WELL POSTIONED TO BUILD ON A LONG-TERM TREND

(water will remain the healthiest hydration option) and, of the recovery of the Category
#1 following COVID-19 lockdowns. Danone has a balanced portfolio between countries with
#2 #3
safe tap water where it provides natural mineral waters like evian and Volvic, and countries
where it provides access to safe drinking water through brands like Bonafont and Aqua.

TOP 3 BRANDS IN SALES IN 2022

#1
#2 #3
ACTIVIA
DANONE
SILK

AQUA
EVIAN MIZONE
9 10
RENEW DANONE DANONE IMPACT JOURNEY
IN FEBRUARY 2023, WE REFRAMED OUR SUSTAINABILITY JOURNEY
AS THE DANONE IMPACT JOURNEY, AS PART OF THE RENEW
DANONE STRATEGY.
In March 2022, CEO Antoine de Saint-Affrique presented Danone’s new strategic plan,
Renew Danone. The plan aims to enable Danone to reconnect with a sustainable profitable
growth model. The delivery of the plan will be facilitated by a greater alignment between
purpose and performance. The Renew Danone plan is designed to restore our performance,
competitiveness, and value creation for the long-term.
Our mission to bring health through food to
as many people as possible began over 100
IT IS ARTICULATED AROUND FOUR STRATEGIC PILLARS: years ago when Isaac Carasso created the first
Danone yogurt in Barcelona. It was a simple
food, with a simple aim to improve health. Over

01 02 03 04
the years, as people’s lifestyles and tastes have
evolved, Danone has continued to anticipate and
innovate to meet people’s needs.
Win where we are Expand where we should be Seed the future Manage our portfolio
This commitment has never wavered. It is
Restoration of Danone’s Selective expansion of Active seeding of future Active portfolio enshrined since 2020 in our by laws through
competitiveness in core Danone’s presence, in terms growth avenues rotation
Categories and geographies of segments, channels and our “Société à Mission” status. We have built
geographies a unique health-focused portfolio. Across
our business and our brands, health is at the
cornerstone of our impact. But we know that our
THE PLAN HAS FOUR KEY ENABLERS health impact is dependent on a healthy planet,
as well as thriving people and communities.
Thus, the three pillars of the Danone Impact
CULTURE Journey are intimately interdependent.

CAPABILITIES The Impact Journey is a blueprint for defining our

sustainability priorities and our transformation
ambition in our value chain – from farmers
SUSTAINABILITY and their communities, through our brands, to
consumers and their families.
COST COMPETITIVENESS
SUSTAINABILITY WITHOUT PERFORMANCE HAS NO
IMPACT. PERFORMANCE WITHOUT SUSTAINABILITY
HAS NO FUTURE.
RENEW DANONE WAS DESIGNED TO CREATE THE CONDITIONS FOR A SUSTAINABLE
AND COMPETITIVE GROWTH, WITH A TWO-PHASE PLAN: Our ambition is to unite sustainability and
performance to continue to grow our impact.
We know that the long-term robustness and
resilience of our business is dependent on our
success in delivering health through food in the
Over the period of the plan, focus most sustainable way.
is to ensure we restart to perform OUTPERFORM
on a par with our key competitors, our markets With the Danone Impact Journey, we have a clear
reigniting organic growth with a framework to drive our actions and progress for
better balance of volume, mix and
ACCELERATE the future.
price while ensuring profitability PERFORM
grows faster than topline. During in line with
our markets
this time, we will reconnect with FOCUS OF
RENEW FIX AND SEED
sustainable value creation, with DANONE
financial targets UNDERPERFORM

2022 2025 and beyond

11 12
 AT THE CENTER OF
THE DANONE IMPACT JOURNEY

OUR MISSION TO BRING HEALTH THROUGH FOOD TO AS

MANY PEOPLE AS POSSIBLE IS AT THE CENTER OF THE
DANONE IMPACT JOURNEY, A THREAD RUNNING THROUGH
ALL THREE IMPACT AREAS AND COMMITMENTS.

THE DANONE IMPACT JOURNEY GROUNDS

OUR COMMITMENTS TOWARDS FULL B CORP
CERTIFICATION AND AS A SOCIÉTÉ À MISSION,
helping us to embed impact into our business structure,
management practices, and performance indicators.

SINCE 2015, WE HAVE PARTNERED WITH B LAB

to help define a meaningful and manageable path to
certification for multinationals and publicly traded companies
while progressively certifying our business and supporting
the broader growth of the B Corp movement. In 2022,
74.2% of Danone global net sales were covered by B
Corp certification. The Danone Impact Journey is fully in line
with what we believe will help us achieve 100% B Corp
certification by 2025.

IN 2022, WE PROGRESSED IN
OUR SOCIÉTÉ À MISSION JOURNEY
by setting measurable, quantifiable KPIs for our
2025 agenda as well as annual trajectories to
ensure consistent progress. This process was
overseen by the Mission Committee. The 2025
KPIs are reflected in the Danone Impact Journey.
For more information, see the Danone 2022 The Danone Impact Journey reflects Danone’s material topics across all three pillars:
Mission Committee Report. Health, Nature, and People & Communities. This is particularly true with the material topic
of “integration of sustainability into the business”, by anchoring environmental, social and
societal performance into our business model. In the following sections , the most material
topics relating to the Danone Impact Journey priorities will be identified with this symbol.

13 14
BECOMING A B CORP
K E Y 2022 LO C A L I N I T I AT I V ES

K E Y 2022 K P I S AAFF_0322_danone_pack_OPPI_R1_TRZ.pdf 1 10/3/22 10:21

DANONE REACHED A SIGNIFICANT

MILESTONE IN 2022 WITH

74.2%
OF OUR GLOBAL NET SALES
C

CM

MY

CY

CMY

COVERED BY B CORP CERTIFICATION

A 12% INCREASE FROM 2021

Danone is on track to meet its 2025 commitment – an important

marker of the Group’s Dual Project of economic success and social
progress, as recognized in the Danone Impact Journey.
DANONE SPAIN DANONE NORTH AMERICA
launched an Out Of Home Higher visibility of our
K E Y 2022 M I L ES TO N ES campaign in July 2022, highlighting commitment in our Danone
its B Corp certification for yogurts North America portfolio

ALPRO AND LA
LAITERIE DU BERGER
have been recognized as
BEST FOR THE WORLD™
B Lab(1)

K E Y 2022 LO C A L I N I T I AT I V ES
DURING THE INTERNATIONAL
WE ACHIEVED OUR 2022 TARGET B CORP MONTH, DANONE
WITH THE CERTIFICATION OF NEW ENTITIES, SUCH AS: UK PARTICIPATED IN A
RETAIL POP-UP SPACE,
EDP SN China
(medical nutrition
SN Australia and SHOWCASING HUNDREDS OF
Mexico portfolio) New Zealand CERTIFIED BRANDS

SN and EDP SN UK
Nordics and Ireland

15 16
 PROGRESS & LEAD
HEALTH THROUGH FOOD
FOR CONSUMERS AND PATIENTS

THIS PILLAR RELATES TO DANONE’S FOLLOWING MATERIAL TOPICS:

• Nutritional quality • Food/ water access • Consumer behavior • New consumption
of overall product and affordability change patterns/planetary
portfolio diet

17 18
 WE NOURISH PEOPLE THROUGHOUT THEIR LIVES:

WE OFFER NUTRITIOUS WE SUPPORT PARENTS FOR THOSE WITH MEDICAL

FOOD AND DRINKS AND CARE GIVERS NEEDS, WE DEVELOP
tailored to all life to provide babies and HEALTHY, TAILORED, AND
NUTRIENT DENSE PRODUCTS
stages addressing young children with the
nutritional needs best nutritional start in to optimize health outcomes
life during their first 1000 and support recovery
days

To meet our ambitions, we have developed the following goals and KPIs:

GOAL KPIs

≥ 85% vol dairy, plant-based, water and aquadrinks

rated ≥ 3.5 stars by Health Star Rating by 2025
Offer tastier and
> 95% vol Kids dairy and plant-based ≤ 10g total
healthier food and
sugars/100g by 2025
drinks
> 95% vol toddlers milk (1-3yo) ≤ 1.25g added sugars
THROUGH OUR PRODUCTS, WHICH ARE /100kcal by 2025
CONSUMED REGULARLY BY MILLIONS
OF PEOPLE ACROSS THE WORLD, WE > 95% vol sold of dairy, plant-based and aquadrinks
Promote healthier
products with on pack/online interpretative nutritional
CAN, AND WANT TO HAVE A POSITIVE choices
information by 2025
IMPACT ON NUTRITION AND HEALTH.
Our ambition is to lead and act by bringing health ≥85% vol Kids dairy fortified with relevant vitamins &
through food to as many people as possible. We are minerals by 2025
Provide positive
uniquely placed with our portfolio and products. We nutrition & hydration for
are building on decades of research and scientific 5 projects to address iron deficiency in children by 2025
healthier life
expertise in health and nutrition to help consumers
and patients maintain and support their health 20 M people with access to safe drinking water by 2025
through nutritious food and sustainable healthier
eating and drinking choices. We fundamentally
believe in better health through better nutrition Invest in nutrition and 150 scientific publications in peer-reviewed journals
and behaviors for all. hydration science and and/or presentations at scientific conferences (from
research baseline of 2021) by 2025

19 20
 OURPEOPLE
AMBITIONS
FY 2022
ANDPERFORMANCE
2022 HIGHLIGHTS
OFFER TASTIER AND HEALTHIER FOOD AND DRINKS PROMOTE HEALTHIER CHOICES

AMBITION: AMBITION:
We develop delicious and enjoyable products that meet the preferences and changing nutritional needs of consumers We believe in engaging with consumers, patients, caregivers, and stakeholders to encourage and promote a
throughout the lifespan. Our everyday products strive to bring key nutrients relevant to their food categories and to positive attitude towards nutrition and healthier food habits. We do this by, promoting flexitarian diets, providing
limit certain nutrients, with a focus on sugars. Thus, in coherence with external nutritional guidelines. transparent and easy to understand labelling, and protecting and promoting breastfeeding (1), among other things.

K E Y 2022 H I G H L I G H T S

100%
K E Y 2022 H I G H L I G H T S

79%
91% 82% 88% 58%
of Aquadrinks in Spain displayed volumes of product sold provided
interpretative nutritional nutritional information on the
information on-pack front of pack (EDP & Aquadrinks)
volumes of volumes of product volumes of EDP volumes of
product sold in sold without added & Waters rated EDP kids with
healthy categories sugars (except medical ≥ 3.5 stars by ≤ 10 g of total ALPRO EUROPE EXPANDED ITS RANGE WITH A
(all portfolio) products) Health Star Rating

100%
sugars /100g Mexico launched a Danone
PLANT-BASED Greek plain yogurt, with

0%
BEVERAGE ADDED
made from oats with mild and smooth taste. It
is a source of calcium and vitamin D, which is
SUGARS
naturally low in saturated fat and low in sugars and a good source of calcium
BELGIUM LAUNCHED IN SPAIN,
ACTIMEL KIDS, all dairy products for children PROVIDE POSITIVE NUTRITION & HYDRATION FOR HEALTHIER LIFE
a product with less than have less than 10 grams of total
9 grams of total sugars sugars per 100g AMBITION:
per 100g We are convinced that our actions can make a difference. Nutrition is about making a positive contribution to
health and well-being for consumers and achieving the best possible outcome for patients. We want to materialize
those efforts in a number of meaningful areas, such as adressing nutritional deficiencies, specific medical needs,
and food and water security.​

K E Y 2022 H I G H L I G H T S
IN POLAND, CZECH

57%
REPUBLIC AND SLOVAKIA, OF THE DAIRY, Danone Communities
safe drinking
FORTIMEL COMPACT PROTEIN
PLANT-BASED provided nutritious
AND SPECIALIZED food to water access to
OMEGA 3 WAS LAUNCHED
&
NUTRITION

600,000 10.9M
ACCESS TO SAFE
volumes sold were fortified DRINKING WATER
a product especially developed for (excluding medical products,
cancer patients experiencing taste baby formula and tailored ACCESS TO HEALTHY
alteration challenges nutrition) PEOPLE PEOPLE NUTRITION

In France, Danone worked

with the Programme Malin Drinkwell in Bangladesh opened
to ensure more than 29 new water kiosks giving

100,000 500,000
CONSUMERS IN DHAKA ACCESS
CHILDREN FROM VULNERABLE
FAMILIES HAVE ACCESS TO TO SAFE DRINKING WATER
PROPER BABY NUTRITION
21 22
 OURPEOPLE
AMBITIONS
FY 2022
ANDPERFORMANCE
2022 HIGHLIGHTS

INVEST IN NUTRITION AND HYDRATION SCIENCE AND RESEARCH B ES T F R A I LT Y C A R E (TO M)

AMBITION:
BEST FRAILTY CARE (TOM), A NETHERLANDS-
We believe in research and science to advance the scientific understanding of nutrition and hydration and their BASED PROJECT, AIMS TO HELP THE AGEING
impact on health and well-being. We will continue to invest in research and build scientific collaboration to POPULATION TO LIVE INDEPENDENTLY AT HOME
demonstrate how nutrition can contribute to health from early life to healthy ageing, with a specific interest FOR AS LONG AS POSSIBLE
in health through gut.
through fall and loneliness prevention. It offers a
multidisciplinary and integral care path including
in-group physical activities, lunches with healthy
IMPROVING ACCESS AND INVESTING IN NUTRITION WITH PARTNERS eating training, and dietician counseling.
It has been co-created and co-financed
K E Y 2022 H I G H L I G H T S by Nutricia Benelux, Danone Ecosystem,
VeiligheidNL (accident prevention organization
Following the White House mandated by the Ministry of Health, ONVZ
Conference on Hunger, Nutrition and Health, (health insurance company), Purpose
DANONE NORTH AMERICA COMMITTED (Consultancy for social innovation) and gathers
multiple stakeholders, such as municipalities.
TO INVEST $22 MILLION TO SUPPORT
AT LEAST 300 MILLION AMERICANS TO
BUILD HEALTHIER DIETARY HABITS IMPACT:
MORE THAN 7 MUNICIPALITIES THE QUALITY OF DIETS AND
BY PRIORITIZING OPTIONS BY INVESTING $15M BY INVESTING $7M TO IN THE NETHERLANDS HAVE PROTEIN INTAKE HAS IMPROVED
WITH LESS SUGAR IN OVER THE NEXT 7 YEARS INNOVATE AND EVALUATE ADOPTED THE PROGRAM
CHILDREN’S PRODUCTS to partner with retailers and SCALABLE COMMUNITY-BASED
IMPACT PROGRAMS THE NET COST OF THE PROGRAM FOR
educate consumers, shoppers, IN TOTAL, 8,000+ PEOPLE HAVE KEEPING A PARTICIPANT IN OPTIMUM
to improve access to nutritious BEEN POSITIVELY IMPACTED BY HEALTH FOR ONE YEAR IS €17,000
and health care providers to THE PROGRAM
drive evidence-based healthy foods, and advance nutrition substantially lower than the
eating behaviors and diet- research on the links between 6 MONTHS AFTER THE PROGRAM, standard cost of €50,000 for society
related health outcomes food, the human microbiome, TOTAL FALLS WERE HALVED
health, and chronic disease

HEALTH SPECIAL MENTIONS

RESPONDING TO THE BABY FORMULA EXTERNAL RECOGNITION In the Netherlands, Danone launched Nutrilon 1+ Dairy & Plants Blend Danone,
SHORTAGES IN THE U.S. the industry’s first blended baby formula for healthy babies, above 1 year old:
We worked with the White House and the TOP

5
U.S. Food & Drug Administration (FDA) as well PERFORMING CONTAINING 60% PLANT-BASED AND 40% DAIRY-
as various other U.S. government agencies, FOOD COMPANIES BASED PROTEIN
to increase the availability of trusted, safe MEETING PARENTS’ DESIRE FOR FEEDING OPTIONS
HELPING YOU nutritional options for parents formula feeding
#1
THROUGH THE suitable for vegetarian and flexitarian, while
their babies. As part of these efforts, we brought IN PRODUCT PROFILE meeting babies’ specific nutritional requirements
BABY FORMULA our Aptamil baby formula to the U.S. a product (AT N I 2021 E D I T I O N) (2)
SHORTAGE that was previously not available in the country. 30% LOWER CARBON FOOTPRINT

#1
All these actions were taken in line with the IN MARKETING FOR compared to the range of Nutrilon brand powdered
principles of our Breast-Milk Substitutes (BMS) BREASTMILK SUBSTITUTES
formulas currently available in the Netherlands
Policy to protect breastfeeding. (recyclable pack and plant protein source)
23 24
 PRESERVE AND REGENERATE
NATURE

THIS PILLAR RELATES TO DANONE’S FOLLOWING MATERIAL TOPICS:

• Climate change • Sustainable • Circular economy/ • Water stewardship
farming/land use packaging/waste

25 26
 WE ARE COMMITTED TO ROBUST
CLIMATE ACTION AND TO HELPING
TO TRANSFORM THE FOOD SYSTEM
so that it regenerates rather than degrades nature. This
requires ambitious action on our part, but also working
with our ecosystem to push for systemic changes

To meet our ambitions, we have developed the following goals and KPIs:

GOAL KPIs

CO2 reduction by 2030 in line with 1.5C SBTi

Curb GHG emissions in Net Zero by 2050

line with 1.5°C, leading
the way on methane 30% reduction in methane emissions from fresh milk by
reduction 2030

30% improvement in energy efficiency by 2025

Pioneer and scale 30% key ingredients we source directly will come from
regenerative agriculture, farms that have begun to transition to RegAg by 2025
leading the way for
regenerative dairy Zero deforestation & conversion on key commodities by
farming models 20251

Preserve and restore 4R approach will be deployed in all our production sites
watersheds where we by 2030
operate and drive water
footprint reduction Watershed preservation/restoration plans in highly
across the value chain
TO DELIVER ON OUR MISSION, water-stressed areas by 20302

WE DEPEND ON NATURE. 100% reusable, recyclable, compostable by 2030

Today, the natural environment on which we Drive the transition to a
depend is facing many interrelated threats, Halve the use of virgin fossil-based packaging by 2040,
circular and low-carbon
from climate change and nature loss to water with a 30% reduction by 2030, accelerating reuse and
packaging system &
scarcity and pollution. As a global leader in recycled materials
recover as much as we
the food and beverage sector, our ambition use
at Danone, is to make food in a manner that Lead the development of effective collection systems to
respects, preserves and regenerates nature. recover as much plastic as we use by 2040

Halve all food waste not fit for human, animal

Cut waste across the
consumption or biomaterial processing by 2030 vs.
value chain
2020

27 28
 OUR AMBITIONS AND 2022 HIGHLIGHTS
PIONEER AND SCALE REGENERATIVE AGRICULTURE, LEADING
CURB GHG EMISSIONS IN LINE WITH 1.5°C, LEADING THE WAY ON METHANE REDUCTION THE WAY FOR REGENERATIVE DAIRY FARMING MODELS

AMBITION: AMBITION:
Contributing to roughly a third of global emissions, food systems have an essential role to play in tackling the climate As a food company, one of the most important ways to deliver positive environmental and societal impact is through the
crisis. As a global leader in the food and beverage sector, we are committed to decarbonizing our business, transforming farming model we chose. Agriculture is the largest source of Danone’s greenhouse gas emissions, representing 59% of
our full value chain in line with a 1.5°C pathway, and strengthening resilience of the communities we touch. our total emissions in 2022, and 89% of water use. Danone is firmly committed to regenerative agriculture, an outcome-
based, holistic approach with three dimensions – people, planet and animals. When adopted under the right conditions,
Methane reduction is essential to meeting our 1.5°C ambition. According to the Environmental Defense Fund, methane this approach can maximize the benefits of agriculture by protecting and improving soil health, biodiversity, water
has more than 80 times the warming power of carbon dioxide over the first 20 years after it reaches the atmosphere.
Acting now to reduce methane emissions will provide immediate benefits to the climate that carbon dioxide reductions resources and climate, while promoting animal welfare and supporting farming resilience and long-term profitability.
cannot achieve on their own. Dairy cattle represent an estimated 8% of methane emissions, so as a global dairy leader Indeed, regenerative agriculture is a key enabler of progress on other Danone ambitions related to climate action, water
we can make a meaningful contribution. This is why in 2023, Danone was the first global food company in the world to preservation, deforestation and conversion, and social progress.
set a methane target. By 2030, we aim to achieve a 30% reduction in methane emissions from fresh milk.

K E Y 2022 H I G H L I G H T S
K E Y 2022 H I G H L I G H T S
Renewed Forest Policy, with the ambition to continue Action plans to convert manure into
and amplify efforts in protecting and restoring forests organic fertilizers through compost
Danone was among the first Danone is one of only Danone launched a Global and biodigesters, the traceability
companies to have its 1.5°C 13 ‘Triple A’ companies Energy Excellence Program, of animal feeds in areas with no
Forest, Land and Agriculture worldwide, out of almost Re-Fuel Danone, to transform Update of the Danone Regenerative Agriculture Handbook deforestation risks and improved
(FLAG) target approved 15,000 companies scored the energy footprint of its and Scorecard and launch of associated digital tool cow productivity in Brazil
by the Science Based Targets by CDP production sites worldwide
initiative (SBTi)(3)
H’L I B B L A D I
-8.3% absolute total FLAG The H’lib Bladi project’s mission is to strengthen a sustainable milk
emissions reduction since In Balclutha (New Zealand), our production model in Morocco that will improve the livelihoods of
2020 (2030 science based biomass boiler is powered by small farmers and their resilience to climate change.
target:-30.3%) locally-sourced wood residues
from sustainably-managed The project was co-designed and launched with the support of
forests (waste debris, bark and Danone Ecosystem, Centrale Danone and GIZ International, non-
70.5% of renewable electricity organic matter), supplying the profit organization governed by German law.
plant with indigenous, renewable
Switch to renewable electricity energy. Combined with the use THE PROJECT LAUNCHED IN 2016. ITS FIRST PHASE HAS BEEN STRUCTURED AROUND THE FOLLOWING:
sources in Indonesia, Mexico, of 100% renewable electricity at
and in the Steenvoorde the plant, CO2 emissions will be 1900 farmers took part in collective The farmers received targeted support
Supply Point in France reduced by 95% training to learn best practices to to develop local feed solutions
be implemented at dairy farm level,
including herd management, animal H’lib Bladi supported over 500 farms
health, milking hygiene, cow welfare, in securing free access to water, in order
feed, nutrition and reproduction to ensure cows drink sufficiently

THIS PROJECT IS CREATING IMPACT ACROSS SEVERAL DIMENSIONS:

SOCIAL: ENVIRONMENTAL:
1900 farmers trained, CO2 impact assessed via Pilots on biodigesters, planted
In early 2023, Danone announced an including 327 women Cool Farm Tool, a specific filters, solar heaters, and the
ambitious plan to reduce absolute methane tool dedicated to the use of sorghum
emissions from fresh milk for our dairy 71 young people have estimation of greenhouse
products by 30% compared to a 2020 baseline, been trained to develop Water management in Milk
gas emissions from cattle Collection Centers in farms
aligning our efforts with the Global Methane local self-employment
Pledge and confirming methane reduction as
an essential pillar of our 1.5°C journey. This project, although already impactful, has shown broader potential. In the context of unprecedented
drought and inflation in 2022, a second phase of project will aim to scale up the best practices, in particular
feed adaptations to reduce water consumption along the chain and techniques to enhance animal welfare
while lowering methane emissions.
29 30
 OURPEOPLE
AMBITIONS
FY 2022
ANDPERFORMANCE
2022 HIGHLIGHTS
PRESERVE AND RESTORE WATERSHEDS WHERE WE OPERATE AND
DRIVE WATER FOOTPRINT REDUCTION ACROSS THE VALUE CHAIN Danone launched its Danacol Danone committed $15M to the Circulate Capital
bottle with no sleeve in Spain, Ocean Fund (CCOF) for the development of recycling
AMBITION: removing around 94 million infrastructure in South and South-East Asia. To date,
At Danone, water is essential to our mission and our activity. For decades, alongside local communities, we have been sleeves per year (equivalent CCOF has committed more than $60M. In 2022, its
protecting some of the world’s best known natural mineral water sources and their watersheds. We are committed of 130 tons of plastic) portfolio companies prevented around 100 kilotons
to continuing this stewardship and bringing our expertise in water management to as many communities as possible of plastic from being leaked and created more than
around the world, while driving water reduction and protection throughout our value chain. This is all the more 1,300 safe and stable additional jobs in the collection
important given that water pressures are severe and growing. More than two billion people lack access to safe water and recycling sector. The brand AQUA has also
today, and by 2030, the world will face a 40% shortfall in freshwater supply according to the United Nations. It’s an urgent partnered with CCOF to fund and scale up Reciki, one
challenge but also an opportunity: water can drive sustainable economic growth, and help us accelerate solutions to of Indonesia’s leading waste management companies
address the climate and biodiversity crises.

Danone has secured a partnership with Loop

K E Y 2022 A C H I E V E M E N T S Industries to enhance closed-loop recycling for
polyethylene terephthalate (PET) bottles and enable
86% of production sites having the recycling of hard-to-recycle packaging and materials
implemented water 4R approach(4) evian celebrated the many initiatives
it has developed over the past 30
years with local communities to
Danone’s largest reclaim unit in Wevelgem, ensure the preservation of water
Belgium has produced 700 million liters of resources, in particular through the CUT WASTE ACROSS THE VALUE CHAIN
reclaimed water from treated wastewater, Association pour la Protection de
enabling a plant water intake reduction of l’Impluvium de l’Eau Minérale evian AMBITION:
50% and a water discharge volume reduction (APIEME)
of 70% compared to 2020 without reclaim More than a billion tons of food is lost or wasted each year, according to the World Food Programme, with major
environmental, social and economic consequences. As a food company, we have a key role to play in reducing food
waste and maximizing its recovery. At Danone, cutting waste is a key opportunity to help reduce pressure on natural
resources while strengthening efficiencies and supporting communities in need.
DRIVE THE TRANSITION TO A CIRCULAR AND LOW-CARBON
PACKAGING SYSTEM & RECOVER AS MUCH AS WE USE
K E Y 2022 A C H I E V E M E N T S
AMBITION:
Packaging is fundamental to providing safe access to food and drinks, minimizing food waste and preserving quality.
Yet the global packaging system- dependent on linear, virgin fossil-fuel derived plastic- must be transformed. Danone -13.5% reduction in the total quantity of Across 2022, Danone continued to raise
has embraced the ambition of a circular economy of packaging, in which plastic never becomes waste or pollution, and food waste per metric ton of product sold, awareness of food waste and inform
the value of products and materials is retained in the economy. We have been working with industry, governments excluding waste intended for animal feed and consumers on date labeling and shifting date
and civil society partners to transform our packaging in line with this vision and drive broader systems change. While the processing of biomaterials- SDG 12.3, labels from ‘use-by’ to ‘best-before’ in key
progress has been slowed by a number of systemic barriers, including underdeveloped reuse schemes, and limited since 2020 on a like-for-like basis European markets. In collaboration with Too
collection and recycling infrastructure, Danone is reaffirming its ambition to help overcome these barriers and accelerate
31

Good To Go Danone is also adding the ‘look,

progress towards a circular, low-carbon economy of packaging.
smell, taste, don’t waste’ label on pack
Danone is committed to reducing food waste
in its end-to-end supply chain. The Group
K E Y 2022 A C H I E V E M E N T S launched an extensive global program named
the Battle against waste, designed to deliver In the UK specifically, to help to amplify this
As of 2022, 84% of Danone packaging sustainability and productivity targets. The campaign and raise awareness among our
is reusable, recyclable or compostable In several countries, such as Indonesia, Mexico project engages end to end supply chain consumers, we partnered with Sainsburys to
and Turkey, Danone sells reusable water stakeholders, partners externally with suppliers kick off a food waste reduction campaign in
containers, as well as reusable glass packaging for and customers and leverages internal expertise store
For our Dairy business, Danone is the hotel, cafés and restaurant industry. In 2022,
successfully expanding its dairy to halve Danone’s food waste by 2030
around 50% of the worldwide sales volumes by
dispenser offer for HORECA (Hotels, the Water brands were sold in reusable packaging
Restaurants and Catering) in Spain
TWO GOOD made a partnership with Full Harvest®, a
For our Waters business, Danone started piloting a mineral water surplus produce-rescuing organization, that helps us source
refill model called “evian comme à la source” in France, which is the ingredients we use to make GOOD SAVE® yogurt
expected to reduce both plastic usage and CO2 emissions compared
to single-use plastic bottles for restaurants and out-of-home
32
 THRIVING
PEOPLE & COMMUNITIES

THIS PILLAR RELATES TO DANONE’S FOLLOWING MATERIAL TOPICS:

• Responsible procurement/ • Local sourcing and rural/ • Some material topics related
supply chain management farmer development to People & Communities in
tier 2 and tier 3 of the matrix

33 34
 THIS HERITAGE IS MORE IMPORTANT
THAN EVER AS WE LOOK AT THE
SOCIAL LANDSCAPE AHEAD.
The world is experiencing levels of economic
uncertainty, technological advancement and
social change not seen at a global level for
generations. We know the pace of transformation
will only accelerate, as we confront the disruptions
of climate change, digital transformation, and
fragmented supply chains. The Social Contract
between business and society needs renewal,
and Danone wants to play a meaningful role.

To meet our ambitions, we have developed the following goals and KPIs:

GOAL KPIs

All employees covered by B Corp certification by

2025(1)

Make Danone a force for good All employees covered by Dan’Care by 2030
by fostering a unique, diverse &
inclusive culture and empowering Achieve gender balance in management
Danoners for positive impact globally by 2030

Drive equity and close gender pay gap by 2025

DANONE HAS A STRONG Maintain inclusion index above peers(2)

LEGACY OF SOCIAL IMPACT,
Equip and empower Make future skilling programs available to all
from Antoine Riboud’s groundbreaking communities (i.e. internal, Danoners by 2025
speech in 1972 and the launch of Danone’s external) with skills and
Dual Project, to the extension of quality capabilities of the future to Extend future skilling programs to key partners
healthcare coverage though Dan’Cares, and thrive in a fast changing economy by 2030
the integration of social objectives into our
company bylaws as a “Société à Mission”. Our
Champion a renewed social 100% employees trained on Danone Human
social heritage has forged a unique culture
contract by fostering a Rights policy by 2025(3)
within Danone, where purpose is deeply
integrated into how we do business. prosperous & inclusive ecosystem,
upholding human rights and Danone Responsible Sourcing Policy deployed
pursuing social progress to all suppliers by 2030

35 36
 OURPEOPLE
AMBITIONS
FY 2022
ANDPERFORMANCE
2022 HIGHLIGHTS
MAKE DANONE A FORCE FOR GOOD BY FOSTERING A UNIQUE DIVERSE
& INCLUSIVE CULTURE AND EMPOWERING DANONERS FOR POSITIVE IMPACT DANONE BRAZIL SUCCESSFULLY
AMBITION: LAUNCHED A PROJECT BY
As a Group with a presence in over 120 countries, we have a unique opportunity for collective impact across countries, PARTNERING WITH A LOCAL NGO
cultures and communities. This starts with our people: almost 100,000 Danoners around the world working together
to create value for our world. As a Société à Mission and Group evolving towards B Corp certification, this is not just TO DESIGN RECRUITING PROCESSES
an aspiration, it is coded into our DNA. We are working to embed impact into our governance, management policies and improve the conditions for people with
and practices, and the cultural fabric of our Group. We aim to enable every Danone employee to be a force for good- in disabilities. The percentage of employees that declare
the Group and throughout our communities.
to have some type of disabilities reached 5% of the
workforce in Danone Brazil as of December 2022
K E Y 2022 H I G H L I G H T S

Inclusive diversity agreement launched in France in 2022 to

suppport caregivers to have more flexibity to balance their
personal and professional life
42% of women in 3.2 points gender pay Danone’s parental 94,761 employees
senior managers gap ratio (in manager, policy is deployed covered by Dan’Cares
positions (executives directors & executives in all countries in (fully or partially) (4) A C T I V I A “A C T4C H A N G E”
and directors) positions) which we operate
WITH THE ACTIVIA BRAND, DANONE ITALY PROMOTED A MOVEMENT CALLED
ACT4CHANGE THROUGH WHICH WE WERE ABLE TO GIVE A VOICE TO MANY
DANONE PEOPLE SURVEY RESULTS WOMEN WHO HAVE BEEN IMPACTED BY PANDEMIC-RELATED JOB LOSSES
More than 90% of employees provided Score of 86% of the Inclusion index, At Danone, we consider the loss of talented women in the workplace not only
their personal view on their day-to-day measured through the Danone People as an opportunity taken away from women, but from the whole community.
experience at Danone, their teams, Survey That is why the adoption of policies that promote women’s employment, for
company values and more example by ensuring equal career opportunities, equal pay and protections,
should be considered fundamental in every environment and organization.
Therefore, since 2011 we have been supporting inclusive diversity, parents
and caregivers. With Act4change we wanted to boost our support for equal
SOME OF OUR EXTERNAL RECOGNITIONS: Employee networks focus on specific aspects of
opportunities, starting with the awareness of the extent to which the COVID-19
Inclusive Diversity, such as the local networks
impacted the workplace especially for women, amplifying social inequalities
Women in Tech, Women of Operations, Pride
groups in Benelux, North America, United Kingdom
even more. Using the Activia brand, we have become a spokesperson for a CLICK HERE
socially relevant issue for all: female unemployment. Thanks to the support
and Ireland or the new This-ability Taskforce
of Key Opinion Leaders (KOLs), we launched four live events open to all, an
online educational workshop dedicated to 250 women and a masterclass to
give voice to each of them again.

IMPACT:
IN 2022, THE HUMAN RESOURCES TEAM FACILITATED AN INTENSE GLOBAL CONVERSATION ON CULTURE.
THE FEEDBACK RECEIVED HELPED REFRESH AND UPDATE THE GROUP’S CULTURE IN ORDER TO: 250 PEOPLE HAD THE CHANCE TO INCREASE THE MASTERCLASS ACHIEVED 2,129
THEIR WORK PLACEMENT OPPORTUNITIES TOTAL VIEWS ON THE LANDING PAGE,
LAUNCH A NEW SET OF DANONE BEHAVIORS, thanks to the chance to work on a conversion rate of 26% and the
INCREASE AWARENESS ON their references and to get in touch participation of over 160 people,
THE DANONE HOPE VALUES critical to achieve the Renew Danone
strategy objectives: Put Danone first, with Adecco’s specialists 87% of whom said they had gained
(Humanism, Openness, awareness of the topic after the
Proximity & Enthusiasm) Lead with people, Keep it simple,
Be accountable and Walk the talk meeting
The four live events posted on Activia’s
Danone’s vibrant, value-driven culture is a very powerful asset that inspires employees. INSTAGRAM PAGES, ACHIEVED AN
OVERALL REACH OF 17,000 PEOPLE
It makes them proud, and attracts new talent to the Group.
37 38
 OURPEOPLE
AMBITIONS
FY 2022
ANDPERFORMANCE
2022 HIGHLIGHTS

Danone received the Gender Equality Diversity and Internal Standard

- Sustainable Development Goal Award of the Arborus Foundation Projet Avenir’: Danone launched a skills
for the “Alban Baladine” Milk Collection Centers project in Egypt. development plan that involved 120 people with
The project helps to empower small milk producers with a focus learning modules for all the operators as part
on the key role of women in dairy production. The target is to have of Villecomtal site (France) evolution towards
social impact by opening milk collection centers and providing small Plant-Based
milk producers with access to a wide range of services, including
milk analysis and storage to increase and maintain their cows’
productivity. Over 8,500 small farmers, 94% of which are women,
have been empowered through sustainable revenue streams.
In Fulda, Germany, to support the transition of
the plant to a new packaging technology, the
FutureSkills program was deployed in the form
EQUIP AND EMPOWER COMMUNITIES WITH SKILLS AND CAPABILITIES of in-depth professional training programs to
OF THE FUTURE TO THRIVE IN A FAST CHANGING ECONOMY prepare each team member for jobs of the future
AMBITION:
According to the Word Economic Forum, it is estimated that 50% of job capabilities worldwide will change in the next
decade, and the need for adaptation will accelerate. We believe we can play an important role in this context, leveraging
our global reach, ecosystem and expertise to support knowledge and skills creation and transfer, among our employees CHAMPION A RENEWED SOCIAL CONTRACT BY FOSTERING A PROSPEROUS &
and throughout our ecosystem. INCLUSIVE ECOSYSTEM, UPHOLDING HUMAN RIGHTS AND PURSUING SOCIAL PROGRESS

AMBITION:
K E Y 2022 H I G H L I G H T S As a Société à Mission and Group evolving towards B Corp certification, our social impact must extend throughout our
business, from suppliers to retailers, and across our communities, from local to global. We hold ourselves to the highest
standards for our business practices and stakeholder engagement, fostering relationships with our stakeholders that
are grounded in trust and guided by open dialogue. Through this dialogue, we can renew our Social Contract built on
a foundation of human rights, dignity, and shared social progress.

100% OF OUR ENTITIES DISCUSSED WITH UNIONS OR

EMPLOYEE REPRESENTATIVES AND PROPOSED THE
FUTURESKILLS PROGRAM TO ELIGIBLE EMPLOYEES K E Y 2022 H I G H L I G H T S

Danone is committed to supporting IUF signed in 2020, available on Danone’s The Danone dedicated e-learning training As a member of the Consumer Good Forum
employees who need to acquire new skills. corporate website). FutureSkills aims to allow
The Group worked with the International Danone’s employees to have the opportunity program on human rights and fight against (CGF)’s Human Rights Coalition – Working to
forced labor is available on the Group training end forced labour, Danone pledged to develop
Union of Food Workers (IUF) to develop and the time to develop new skills that and deploy Human Rights Due Diligence
an innovative approach called FutureSkills, can facilitate internal repositioning within platform to the Procuement, Human Resources
and General Secretary functions. 6,658 Danone (HRDD) systems focusing on forced labor in
which aims to better prepare employees who Danone but can also be of value and practical its own operations, with the aim of reaching
need new skills for the jobs of tomorrow (see assistance in the broader job market. In 2022, employees had completed this training at the
end of 2022. 100% coverage by 2025, including external
the common statement by Danone and the we continued to deploy this program. workers hired by temporary work agencies
In 2022, Danone concluded the salient or by its subcontractors to carry out regular
human right impact assessment and used the and continuous work at its entities. In 2022,
learnings to update and upgrade the Danone Danone piloted the first steps of the Coalition
Sustainability Principles together with their due diligence framework in its Polish and
implementation guidance and to develop its Brazil Business Units, which were selected
Human Rights Policy. The salient impacts will mainly on the basis of the number of external
further inform Danone’s human rights strategy. workers and awareness and engagement of
the local teams.

39 40
 Our impact is collective. For over 50 years, since the launch of the Danone Dual Project, we have been working with and
WITH AND THROUGH OUR through a growing ecosystem of stakeholders, ranging from policy-makers, customers, suppliers, farmers, researchers and
ECOSYSTEM OF PARTNERS NGOs, to our consumers and shareholders. Strengthening these relationships is part of our responsibility to build a more
sustainable future and create value for all our stakeholders.

EMPLOYEES TRADE UNIONS

We believe in empowering our almost 100,000 employees We are committed to strengthening social dialogue. Over the last
to bring our vision to life. Building on our value, we strive to 50 years, Danone has engaged in fruitful discussions with Trade
create a culture where performance and sustainability go Unions: ten international agreements define a common set of policies
hand in hand and where the best of our local and global across the Group, on major topics such as Trade Unions rights, Skills
presence can seamlessly come together. To do so, we Development, Working Conditions, Health & Safety, Diversity, Limitation
valorize our talents and their passion, ensuring that they of Precarious Work. The Group also worked with the International Union
are at the core of our progress. of Food Workers (IUF) to develop an innovative approach, FutureSkills,
which aims to better prepare employees who need new skills for the
jobs of tomorrow. At Danone, we believe that Trade Unions are a trusted
source of information and insights on social practices inside and
outside the company. As a result, they take part in the Due Diligence
activities as whistleblowers on the respect of fundamental rights.

SUPPLIERS
Recognizing that our suppliers also have a major role to play in delivering our Danone
Impact Journey, we are committed to promoting sustainable, inclusive growth with
them, by fostering partnerships and developing mutually beneficial relationship.
Transparency, as well as a mindset of continuous improvement, are therefore key to COMMUNITIES
our supplier engagement. We contribute to the development of communities, people and the
The Group works directly with selected producers further up the supply chain and has developed many environment, mainly through our brands and social innovation funds.
collaborative projects that help producers address environmental and labor issues, such as a vanilla Working with Danone Communities, Danone Ecosystem Fund and
plantation project in Madagascar supported by the Livelihoods Fund for Family Farming (L3F). The aim of this Livelihood Funds, we also support community-led projects, which have
project, which involves 3,000 family farms, is to develop solutions that improve the quality and traceability of
vanilla production, boost food security for farmers and preserve biodiversity. An impact study performed in had major impacts on the fight against malnutrition, inclusive business
2022 shows that the project has preserved 770 hectares of local biodiversity in the Pointe à Larrée protected solution and the reduction of carbon emissions.
area. Overall, according to 88% of producers involved in the project, the human activities that are threatening In 2022, Danone Ecosystem is celebrating 100 projects, benefiting to more than 5.5
biodiversity have decreased significantly. million people.

CONSUMERS
We listen to and respond to the fast-changing expectations of
consumers worldwide, by tailoring to their preferences sustainably
produced food and drink options that nurture health at every stage of
SHAREHOLDERS life. We commit to achieving the highest nutritional standards, adhering
to responsible communications, and minimizing our environmental
We are committed to sustainable shared value creation, an engagement footprint in the production process.
which has driven our vision of business since the establishment of our dual
economic and social project in 1972. At the heart of this project lies the belief
that commitment to all stakeholders creates further value for shareholders.

41 42
 NGO S/ CIVIL SOCIETY
ORGANIZATIONS
To facilitate positive impact, we have forged partnerships with civil society partners and other
such organizations that share our vision for a more sustainable future. They are also able
to give us key insights into, and inputs on, our mission and projects, at both a community RETAILERS/ BUSINESS PARTNERS
level and a more global one. We also work with these partners to actively promote change We are stepping up collaboration and investments with our
for the better, whether that be in favor of the adoption of best agricultural practices among retailers and business partners and growing our distribution
our farmers, or through public advocacy for causes we believe in. Some of our key impact channels, in order to reach more consumers and help
partners include B Lab, Ellen MacArthur Foundation, Environmental Defense Fund, RAMSAR, them make healthier, more sustainable choices, anytime
Food and Agricultural Organization (FAO), OECD, WWF and UNITAR. and anywhere. We activate our brands in-store and across
Danone also believes regulation is critical to unlocking systemic solutions to support dairy farm transformation - from multiple platform, to match local tastes, lifestyles and
supporting research and innovation, co-financing, to ambition-setting, and driving a level playing field. That is why, in shopping preferences.
Europe, Danone is supporting the European Commission’s Climate Neutral Farms (ClieNFarm) project to co-develop
and upscale systemic locally relevant solutions (organisational, financial, technical) to reach climate neutral, resilient
and sustainable farms.

RESEARCHERS/ SCIENTIFIC
SOCIETIES/ ACADEMICS
On strategic topics such as food safety, healthy food and
drink habits, probiotics, microbiota, healthy hydration,
and healthy aging, research plays a central role in our
growth strategy. By partnering with the academic and
FOOD TECH/ ENTREPRENEURS scientific world, we seek to improve our understanding
We are partnering with food tech startups across the world that share our vision of a of health and nutrition issues at every stage of life
healthy and sustainable future for food. Through Danone Manifesto Ventures, Danone’s and integrate this knowledge in the development of
corporate venture arm, we invest in high growth and promising companies and healthy and innovative products, purpose-driven brand
entrepreneurs who bring unique products and disruptive models to the market, further strategies, and impactful programs.
helping the acceleration of growth by providing them access to Danone’s world-class
expertise and resources.
Symbrosia, a Hawai’i-based startup with a seaweed feed additive that reduces livestock methane emissions by
over 80%, has closed out its Series A funding round with $7M. This funding round was led by Danone Manifesto
Ventures. After two years of research on seaweed breeding and cultivation technology, Symbrosia has developed
strains that are significantly more productive, potent and resilient than wild populations. The company will use
the capital to scale production of these breakthrough seaweed strains by orders of magnitude and bring their
livestock feed additive, SeaGrazeTM, to market with the world’s most innovative brands and producers.

FARMERS
Danone works with a large number of farmers, including 58,000 dairy
farmers, worldwide. About 94% of the partner producers own small family
farms with fewer than 25 cows and are located primarily in emerging
countries in Africa and Latin America. As well as actively supporting our
farmers and providing them with equipment and training to adopt more
regenerative practices, we have developed innovative long-term contracts
with our farmers, which cover 23% of the global milk volume we collect.

43 44
 MATERIALITY
W WE SE
HO With a view to engaging with
our stakeholders in building and
success. Focusing on health,
planet, people and inclusiveness,

E
refining our strategy, we renewed our 12 most material issues match
our materiality matrix in 2021. This the four Mission Objectives
key tool enables us to identify our of our company purpose. This
priority issues according to their stands as further evidence of our
importance for both internal and responsibility in addressing these
external stakeholders, as well as topics as a priority, and as part of
their impact on Danone’s business our mission.

N THE WORLD T
WH A
I

E
ANTICIPATED EVOLUTION OVER

E R
THE NEXT 5 TO 10 YEARS

ICH P
WE O SOCIAL/
SUPPLY CHAIN
GOVERNANCE/
BUSINESS
PLANET HEALTH/NU-
TRITION
STABLE LIMITED MEDIUM HIGH
INCREASE INCREASE INCREASE

CLICK HERE
2 0 2 1 M AT E R I A L I T Y M AT R I X R E P O RT

BY BEING BOTH AT THE HEART OF THE HEALTHY AND

SUSTAINABLE FOOD MOVEMENT AND ATTUNED TO
KEY CONSUMERS’ EXPECTATIONS, WE KNOW IT IS
INSTRUMENTAL TO CONSTANTLY IDENTIFY AND ANTICIPATE
THE CHALLENGES AND OPPORTUNITIES THAT LIE AHEAD.
Engaging with our stakeholders is an important way in which we strive to do
so. As such, we rely on two complementary exercises involving the input of
our key stakeholders: a materiality assessment and a risk analysis, the former
focusing on sustainability issues and the latter being a wider tool to anticipate
all types of risks a company is facing for its operations and broader value
chain. Both of these provide us with an in-depth understanding of the key
strategic interlinked sustainability and business topics that Danone must take
into account and act upon.

To find out more about our risk analysis,

refer to our Universal Registration Document 2022, Chapter 2.

45 46
OUR MOST MATERIAL ISSUES

For more information, please click here

and go to the materiality report

SUSTAINABLE BUSINESS HEALTH

HEALTH
Consumer behavior change
As part of our mission, we actively promote consumer education on healthier
Integration of sustainability into the business lifestyles and diets. To do so, we notably partner with local authorities and
organizations, as well as retailers, in order to provide consumers with better
knowledge on health and food, and empower them to choose healthier
We believe we have a role to play in society. It was thus logical for us to further options.
our journey as a sustainable business by obtaining the French “Société à Mission”
status, and the B Corp certification, both which contribute to anchoring Nutritional quality of overall product portfolio
environmental and social performance in our business model.
As a critical health factor, the nutritional value of food products is of growing
concern to both consumers and regulators. Our everyday products strive to bring
key nutrients relevant to their food categories and to limit certain nutrients, with
a focus on sugars. As a result, 91% of the product volumes sold are in healthy ca-
tegories and 88% of the product volumes sold scored ≥3.5 stars according to the
Health Star Rating system. According to this system, any product that scores 3.5
stars or above can be confidently promoted as a healthy choice (1).

New consumption patterns / planetary diet

To answer an ever-rising demand for more climate-conscious and
sustainable products, but also to adjust to increasingly specific consumer
needs and preferences, we are continuously adapting our portfolio. Danone
has been at the forefront of these changing consumer preferences to
promote more healthy, nutritious and sustainable offerings and ensure
that our products answer to local consumer diets and cultural or religious
preferences. Integrating more low-carbon and plant-based products into our
portfolio has also been key to address these challenges.

Product safety/quality
As it relates to production quality, spoilage, contamination, supply chain
traceability, and allergy labeling, product safety and quality can materially
affect Danone’s operations and brand reputation, particularly amid new
regulations and increasing transparency requirements. At Danone, we the-
refore have a responsibility to ensure the safety and quality of our products
throughout our value chain, through actions such as certifications and su-
pporting our suppliers in this journey.
47 48
OUR MOST MATERIAL ISSUES

For more information, please click here

and go to the materiality report

PLANET COMMUNITIES
Climate change
We are conscious that the food & beverage industry production value chain is a
significant contributor to global greenhouse gas (GHG) emissions, a direct cause
of climate change. In return, climate change presents several risks for society and Food/water access and affordability
for our business (increased costs of doing business, reduced operational efficiency,
supply disruptions, etc.). To try and mitigate these risks, in 2015, we updated our Making our food and water products accessible to as many people as
climate policy announcing our intention to reach net zero emissions and set inter- possible, whether geographically or in terms of price point, is at the heart
mediate reduction targets to deliver tangible progress. of our company mission and responsibility. Making our offerings available
to low income populations will help us combat hunger and malnutrition,
Circular economy/packaging/waste inspire healthier and more sustainable eating and drinking practices and
address the global issue of access to safe drinking water.
Throughout its entire lifecycle, packaging materials contribute significantly to our
overall environmental footprint. At Danone, we have therefore set a number of
ambitious targets in line with the Global Commitment on Plastics led by the Ellen Local sourcing and rural/farmer development
MacArthur Foundation. We also work hand-in-hand with suppliers, product dis-
tributors, retail companies, startups, NGOs and policymakers to find innovative We work alongside our suppliers to ensure that our sourcing practices
solutions. are responsible for consumers, producers and farmers alike. This involves
sourcing key ingredients locally (i.e. in the country where the products are
Sustainable farming/land use sold), a practice which we are expanding every year, particularly for plant-
Agriculture is at the center of numerous global challenges today, from economic based products and fruits & vegetables. By doing so, we aim to support and
development and climate change, to water scarcity and biodiversity loss. strengthen local farming communities.
Encouraging our suppliers to transition to more sustainable farming practices,
and accompanying them to do so, is at the core of our mission and is key to our
business resilience. We have since been working to transform practices on the Responsible procurement/supply chain management
ground through regenerative agriculture programs in countries across the world. Danone sources a wide range of ingredients, particularly dairy inputs,
from suppliers globally. In line with due diligence requirements and with
Water stewardship (incl. bottled water) our status as a “Société à Mission”, we work to ensure inputs are responsi-
Because we are reliant on water supplies for both our food products and bottled bly sourced. This means partnering with suppliers to minimize risks of ne-
waters, we are conscious of the issue of water scarcity, not only in terms of the gative impacts. It also means providing direct support to farmers we work
operational risks it poses to our business, but also in terms of our activities’ impacts with, including technical support, capacity building, capital investments,
on the availability and quality of water. For these reasons, we designed policies and innovations that improve farm performance, both environmentally
and practices concerning the prevention of risks related to our water usage, that and economically.
include, but are not limited to, preservation of watersheds, water use in agriculture,
wastewater discharge, etc. Most notably, our Water Policy lays out our framework to
become ‘water positive’ and have a positive impact on nature and local communities
through our fully circular water management in and around operations, as well as our
water access programs for vulnerable communities, among other actions.
49 50
GOVERNANCE
BOARD OF DIRECTORS
BOARD OF DIRECTORS AS OF JULY 1, 2023(A):
Pursuant to the Company’s by-laws and the Board of Directors’ rules of procedure, the Board,
a collegial body, exercises the powers attributed to it by law and acts in all cases in the business
interest of Danone. It determines the strategic orientations of Danone’s activity and ensures
their implementation. It seeks to promote long-term value creation by the Group while taking B
into account the social and environmental challenges of its activities. As part of its work, the
Board of Directors has continued to fulfill the purpose and the social, societal and environmental
objectives embedded in the Company’s by-laws since the adoption of Société à Mission status by
the Shareholders’ Meeting on June 26, 2020, and takes into consideration the social, societal and
environmental impacts of its decisions on the Company’s stakeholders.
GILLES ANTOINE DE FRÉDERIC
SCHNEPP SAINT-AFFRIQUE BOUTEBBA
THE BOARD OF DIRECTORS IN 2022

12
DIRECTORS
INCLUDING
1 Lead independent Director
9 Independent Directors
2 Directors representing employees VALÉRIE GILBERT LISE
CHAPOULAUD-FLOQUET GHOSTINE KINGO
BOARD OF DIRECTORS

90%
ATTENDANCE
11
MEETINGS
RATE

3 4
DIRECTORS DIRECTORS
NOMINATION, COMPENSATION
AUDIT COMMITTEE AND GOVERNANCE COMMITTEE PATRICE SANJIV GERADLINE
100% 5 100% 6
LOUVET MEHTA PICAUD
ATTENDANCE
RATE
MEETINGS
5 ATTENDANCE MEETINGS
DIRECTORS RATE

CSR COMMITTEE

100% 5
B

ATTENDANCE MEETINGS
RATE

SUSAN BETTINA
ROBERTS THEISSIG

90% 50% 50% 60 YEARS 1.8 YEARS A SUBJECT TO VOTE AT THE ANNUAL GENERAL MEETING 2023 B DIRECTORS REPRESENTING EMPLOYEES
INDEPENDENCE OF DIVERSITY/DIRECTORS WITH AVERAGE AGE OF AVERAGE LENGTH OF
RATE WOMEN A NON-FRENCH NATIONA- DIRECTORS THE TERMS OF OFFICE
LITY

51 52
GOVERNANCE
EXECUTIVE COMMITTEE

EXECUTIVE COMMITTEE, COMPOSITION AS OF FEBRUARY 28, 2023

STRUCTURE SUMMARY OF THE COMPENSATION POLICY

FOR EXECUTIVE CORPORATE OFFICERS FOR 2023
ANTOINE DE JÜRGEN SHANE
SAINT-AFFRIQUE ESSER GRANT
Chief Executive Officer Group Deputy CEO in charge of Group Deputy CEO, CEO
Finance, Technology & Data Americas and EVP Dairy, Plant-
Based and Global Sales

Components of Compensation components subject

fixed compensation to performance conditions

Fixed annual Variable annual Long-term in shares (GPS)

VÉRONIQUE VIKRAM HENRI
PENCHIENATI-BOSETTA AGARWAL BRUXELLES
Group Deputy CEO, CEO International Chief Operations Officer, Chief Sustainability Annual performance Four-year
and EVP Specialized Nutrition, End-to-end Design and Strategic Business conditions performance
Waters, Global Marketing & Digital To Delivery coordinator Development Officer conditions and a
Managerial three-year continuos
A A B
presence condition
Fixed depending
on experience and
level of responsibility Social, societal and/or Social, societal and/or
environmental environmental
CHARLIE CAPPETTI BRUNO CHEVOT SILVIA DAVILA
President CIS and Turkey President Greater China, President Latin America Economic Economic
North Asia and Oceania

A
Cash Cash Danone shares

ROBERTO DI ISABELLE ESSER JEAN-MARC

BERNARDINI Chief Research, Innovation, MAGNAUDET
Chief Human Resources Officer Quality and Food Safety Officer President Specialized Nutrition

For more information on the Corporate Governance, refer to URD 2022 Chapter 6.
A A

PABLO PERVERSI LAURENT SACCHI CHRISTIAN

President Europe General Secretary STAMMKOETTER
President Asia, Africa
and Middle East

A REPORTING TO VÉRONIQUE PENCHIENATI-BOSETTA, B REPORTING TO SHANE GRANT, CHIEF

CHIEF EXECUTIVE OFFICER INTERNATIONAL EXECUTIVE OFFICER AMERICAS

53 54
SHAREHOLDING STRUCTURE

SHAREHOLDING SPLIT DANONE ALSO PROMOTES SHARE

(AS OF DECEMBER 31ST, 2022) OWNERSHIP FOR ITS EMPLOYEES:
INCLUDING:
Artisan Partners
78% Blackrock INSTITUTIONAL
INVESTORS
Employees of Danone’s French companies can
subscribe for an annual capital increase as part of
a Company Savings Plan.
Lastly, in 2019, for the first time, Danone granted
each eligible employee one DANONE share,
The Capital Group Companies thus giving the employee the right to vote at the
INDIVIDUAL SHAREHOLDERS Shareholders’ Meeting. This share grant also
AND “FCPE DANONE” At global level, Danone launched in 2019 its first enables employees to participate in a global
(employee ownership fund) global employee share ownership plan, enabling profit-sharing system indexed on the amount of
10% 5% 7% TREASURY
SHARES
its employees in eight countries to subscribe for new
Danone shares. Since then, the share ownership plan
was extended to additional countries. In 2022, the
the annual dividend. Each year, every single new
Danone employee receives a Group share.

OTHER plan covered 46 countries, representing 83% of

Danone employees worldwide.

INSTITUTIONAL SHAREHOLDING
BY GEOGRAPHY
(AS OF DECEMBER 31ST, 2022)

52% UNITED
STATES 9% UNITED
KINGDOM

15% FRANCE 5% SWITZERLAND

9% REST OF
EUROPE 4% GERMANY

5% REST OF WORLD

As a percentage of the share capital in 2022

55 56
METHODOLOGY NOTES
DANONE AT A GLANCE THRIVING PEOPLE & COMMUNITIES

(1) Like-for-like (1) Over 95% of employees covered by certification, excluding M&A
(2) On a reported basis (2) Measured through Danone People Survey
(3) United States and Canada (3) Enabling due diligence deployed in Danone operations
(4) China, Japan, Australia and New Zealand (4) The Dan’Cares program aims to provide all Danone employees with quality healthcare coverage
(5) Volumes sold in healthy categories corresponds to: for major risks, while taking account of different market practices. The three main risks are
hospitalization and surgery, outpatient care and maternity care.
• Dairy and plant-based products intended for daily consumption,
• Specialized Nutrition Category products (except biscuits and beverages for children under 3 years OUR MATERIAL ISSUES
of age and foods for children over 3 years of age in the early life nutrition activities),
• All plain and flavored water varieties with 0% sugar (1) The percentage of volumes sold from products rated ≥ 3.5 stars by Health Star Rating (HSR)
is calculated for the Essential Dairy and Plant-Based and Waters Categories. HSR algorithm
BECOMING A B CORP considers negative components of the products that could potentially increase some health risks
such as energy, saturated fat, sodium and total sugars. It also considers positive components of
(1) Every year, B Lab recognizes the top-performing B Corps creating great impact through their a product such as the content of fruits, vegetables, nuts, legumes; in some instances, dietary
businesses. These B Corps are named Best for the World™, as their verified scores in the five fiber and protein. Taking these components into account, points are allocated based on the
impact areas evaluated on the B Impact Assessment - community, customers, environment, composition per 100g or 100 mL of the product. Products are rated between 0.5 stars (least
governance, and workers - are amongst the global top 5% in their corresponding size group. healthy) to 5 stars (most healthy). According to this system, any product that scores 3.5 stars or
above can be confidently promoted as a healthy choice.
PROGRESS AND LEAD HEALTH THROUGH FOOD FOR CONSUMERS AND PATIENTS
(1) To find out more about how we protect and promote breastfeeding, see our Policy for the
marketing of breast-milk substitutes (BMS policy)

(2) Danone’s 2021 Global Access to Nutrition Index (ATNI) rank. The ATNI assesses major food and
beverages companies on their nutrition-related performance every two years: https://www.
accesstonutrition.org
PRESERVE & REGENERATE NATURE
(1) Cf renewed forest policy dec 2022
(2) 100% Danone production sites and 50% of key raw materials volume
(3) The three 1.5°C near term science-based targets are monitored on the SBT scope as follows:
• Scope 1 and 2 energy and industrial: Scope 1 and 2 emissions of factories, vehicles and
distribution centers including CH4 and N2O biogenic emissions, but excluding FLAG Scope 1
emissions of the three farms owned by Danone.
• Scope 1 and 3 FLAG: scope 1 FLAG emissions of the three farms owned by Danone, and scope 3
emissions of purchased goods and services for milk, dairy ingredients and other raw materials.
• Scope 3 energy and industrial: Scope 3 emissions for purchased goods (packaging and
comanufacturing), fuel-and energy-related activities, upstream transportation and distribution,
waste generated in operations, downstream transportation and distribution (excluding emissions
linked to the storage in retailers’ distribution centers and retailers’ stores) and end of life
treatment of sold products.
(4) 4R is about reducing, reusing, recycling, reclaiming and ensuring wastewater is released to the
environment in full compliance with the Danone Clean Water Standards (internal waste water
quality standards developed to define a common, international framework for our operations)

57 58
 LEARN MORE:

UNIVERSAL
REGISTRATION
DOCUMENT
ANNUAL FINANCIAL
REPORT 2022

DANONE 2022 UNIVERSAL DANONE 2022 EXHAUSTIVE DANONE 2022

REGISTRATION DOCUMENT EXTRA-FINANCIAL DATA COMPANY DASHBOARD

linkedin.com/company/danone facebook.com/Danone @Danone

59 60
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www.danone.com

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Héctor Chiarri