Consumer Packaged Goods
15, Rue Du Helder Paris 75439 France
- #159 World’s Best Employers 2020
- #82 World’s Most Valuable Brands 2020
- #248 Global 2000 2020
- #100 Top Regarded Companies 2019
- CDP A list climate change / Water / Forest 2018
- Bloomberg Gender Equality Index 2020
- Access to nutrition index
- Ethibel Sustainability Index
- Dow jones sustainability Indices
- MSCI AAA
- Ethibel Index
- Prime status by the ISS-Oekom Corporate rating
- Indices of ECPI
- ISS ESG
CHIEF SUSTAINABILITY OFFICER
Gabriela Hernandez Galindo
Report created by Maribel Sabino
Danone S.A. is a French multinational food-products corporation based in Paris and founded in Barcelona, Spain. It is listed on Euronext Paris where it is a component of the CAC 40 stock market index. Some of the company’s products are branded Dannon in the United States.
Danone aims to inspire healthier and more sustainable eating and drinking practices, in line with their vision – Danone, One Planet. One Health – which reflects a strong belief that the health of people and the health of the planet are interconnected. They deliberately concentrate on high-growth and health-focused categories, and commit to operating in an efficient, sustainable and responsible manner.
This unique approach, historically defined as Dual Project, enables them to create both shareholder and societal value. According to Danone: “We hold ourselves to the highest standards, as reflected by our ambition to become one of the first multinationals certified as B CorpTM.”
Danone is dedicated to bringing health through food to as many people as possible, Danone is a leading global food & beverage company built on four businesses: essential dairy and plant-based products, water, early life nutrition and medical nutrition.
With products sold in over 120 markets, Danone generated sales of €24.7 billion in 2017. Their portfolio includes brands present worldwide (Activia, Actimel, Alpro, Danette, Danonino, Danio, evian, Volvic, Nutrilon/Aptamil, Nutricia) and in local markets (Aqua, Blédina, Cow & Gate, Bonafont, Horizon Organic, Mizone, Oikos, Prostokvashino, Silk, Vega).
Listed on Euronext Paris and on the OTCQX market via an ADR (American Depositary Receipt) program, they are a component stock of leading social responsibility indexes including the Dow Jones Sustainability Indexes, Vigeo, the Ethibel Sustainability Index, MSCI Global Sustainability, MSCI Global SRI Indexes and the FTSE4Good Index.
- #1 worldwide in fresh dairy products in plants based products
- #1 Europe in advanced medical nutrition
- #2 worldwide in early life nutrition in packaged waters (by volume)
Company Sustainability Activity
Collaboration with the international non-profit organization B Lab to receive B Corp certification represents a major new milestone in Danone’s dual economic and social project, first expressed by Antoine RIBOUD in his 1972 speech in Marseille.
As part of this approach, which creates value for consumers and shareholders, Danone is transforming the way in which the food and beverages of its flagship brands are designed and produced, notably by reducing the number of ingredients, and proposing new organic and non-GMO product lines.
The Company also commits to promoting sustainable agriculture, encouraging the circular economy, conserving water, reducing waste, reducing its carbon footprint, promoting animal welfare and investing in the community.
- 90% of volumes of products sold are in healthy categories
- 24.8% reduction in CO2 footprint intensity on full scope
- 20 entities are B corp certified
- 51% of women among managers, directors, executives
- Carbon neutral by 2050
- 50% reduction in emission intensity on Danone’s full scope by 2030
- 30% absolute reduction on Danone’s scope 1 and 2 emissions by 2030
- 100% renewable energy by 2030, 50% by 2020
- 100% of waters divisions sites to have run SPRING audits by 2020
- 60% of water consumption intensity reduction by 2020
- 100% of their total packaging is recyclable, reusable, or compostable by 2025
- 50% rPET on average in the waters division by 2025 and 25% by 2020 in countries where local standards and regulation allow for it
- 80% of fresh milk volumes worldwide assessed through the new animal welfare assessment tool or via Validus Animal Welfare Certification by 2020 in the Essential Dairy & Plant-Based Division
- Danone is fighting climate change by reducing their carbon footprint and working to sequester more carbon. They have committed to achieving zero net carbon emissions across the entire value chain by 2050.
- In 2018, 15.6% reduction in emission intensity on Danone’s full scope 2015 baseline.
- In 2018, 20.3% absolute reduction on danone’s scope 1 and 2 emissions, 2015 baseline
- In 2018, 34% renewable electricity
- Danone adopted a specific organization, the water Cycle, and a water stewardship strategy focusing their actions in the most at risk areas by supporting locally-adapted solutions to water quality, quantity, and access.
- In 2018, 100% of waters division sites have run SPRING audits to protect natural mineral water resources in their watersheds
- In 2018, 48% of water consumption intensity reduction, 2000 baseline
- Danone is fully committed to playing their part in accelerating the transition towards a circular economy and to having all of their packaging recyclable, reusable or compostable by 2025. Danona also wants to take action to reduce food waste.
- In 2018, 87% of their total packaging is recyclable, reusable, or compostable.
- In 2018 12% rPET on average in the waters division and 17% in countries where local standards and regulations allow for it.
- Today’s agriculture system faces many challenges, such as climate, animal welfare, loss of biodiversity and water scarcity. Danone states “That is why we are working with our partners to develop regenerative farming models that are competitive, inclusive and resilient.”
- Sustainable milk sourcing: 24% of total milk collected by Danone comes from producers working with Danone under long term contracts, also called CPM contracts (vs 19% in 2017)
- Respect animal welfare: In 2018, 43% of fresh milk volumes worldwide assessed through the new animal welfare assessment tool or via Validus Animal Welfare Certification in the Essential Dairy & Plant-based division
- Promote regenerative agricultural practices: In 2018, 50% of non organic fresh milk volumes converted to Non – GMO project verified in the US
- Danone provided 100,000+ employees with a safe, inclusive and diverse working environment, relying on constructive social dialogue and relevant talent management and development.
INFORMED CONSUMERS CHOICES
- By providing more detailed information, Danone is empowering consumers to make informed choices for their health and the health of the planet. As part of the ‘Danone Act’, in France they have committed to disclose on their local website 100% of their ingredients and explain the role of each of them in their recipes.
- Danone was the first company to adopt the Nutri-Score on fresh dairy packaging in France. They are gradually rolling it out to cover 100% of their fresh dairy packaging by the end of 2019 and they will extend this science based, consumer-tested and WHO-welcomed front-of-pack label to Belgium, Austria, Germany and Switzerland.
- 30% of Danone’s global sales are now covered by B Corp™ certification, marking significant progress towards Danone’s ambition to become one of the first certified multinationals.
- 48% of Danone’s sites are ISO 14001 certified
UN Sustainable Development Goals
UN SDGs Compliance
SDGs 2 & 3
- Impact people’s health locally
- Danone’s mission is to bring health through food to as many people as possible. They have created a unique portfolio of healthy products to complete this mission, and they strive to continuously optimize their nutritional profile. Also, they build on our in-depth knowledge of local food cultures, food habits and public health challenges to innovate and actively promote healthier alternatives for better choices. Beyond products, they will accelerate on current and new initiatives (programs and services) with partners to impact dietary habits positively
SDGs 3 & 12
- Danone offers superior food experiences and innovates always
- The company commits to the highest quality and food safety standards. They stand for sustainably sourced ingredients; for naturality and transparency; and for simple recipes and clean labels. Supported by strong innovation capabilities, they believe these are key fundamentals to create superior food experiences for people, as this will remain the first driver of healthier and more sustainable choices.
SDGs 8 & 12
- Deliver superior sustainable profitable growth
- Danone’s ambition is to be the best at embracing the food revolution. They build on a unique health-focused product offering in some of the fastest growing categories, responding to today’s and tomorrow’s eating and drinking trends. In addition, Danone builds on a strong strategic roadmap around three priorities: accelerate growth, maximize efficiencies and allocate resources with discipline.
SDGs 8, 12 & 16
- Be certified as a B-CORP
- Danone’s ambition to become a Certified B Corp expresses their long-term commitment to create and share sustainable value for all, in line with their dual economic and social agenda. In today’s world, big companies and their brands are fundamentally challenged as to whose interests they really serve. B Corp certification is a mark of trust for companies demonstrating high standards of social and environmental performance.
- Grow manifesto brands
- People are craving change when it comes to their food. At Danone, they aim to build purpose driven brands – what they call Manifesto brands – that will act as true activists towards their point of view, not only delivering an exciting experience to people, but also committing to create a positive impact on health and the planet.
- Serve the food revolution with partners
- According to Danone “A food revolution is happening and we choose to serve it. However we cannot do it alone: to change the way food is grown, produced, marketed, distributed, sold and consumed, we need to co-create solutions with others, leveraging their expertise. To do so, we are building on decades of partnership experience to work hand in hand with Danone employees, farmers, suppliers, retailers, consumers and partners as well as civil society, governments and public health professionals. Altogether, we want to be remembered as a driving force of the food generation.”
Secondary SDGs: 1, 5, 6, 7, 13, 14, 15
Danone embodies sustainability. Their ambition to incorporate sustainability throughout the business is seen through their various listings and primary certificates. As a certified B Corp™ company, as well as ISO 14001 certified, Danone is a multinational leader in sustainability.
Danone is compliant with the UN Sustainable Development Goals. In addition to their progress in addressing climate change, water stewardship, circular economy and more, Danone has explicitly stated their targets and goals for 2030. Danone can improve on using less plastic for their products For these reasons the company has been rated an B.
Analysis Outlook: Positive
Danone’s ambition to hold primary certificates and listings makes them a leader in sustainability. Their progress and targets should inspire other multinational companies to also address and incorporate sustainability throughout their businesses.