Danone

RATING

SECTOR

Consumer Defensive

WEBSITE

CONTACT

15, Rue Du Helder

Paris 75439

France

33 1 44 35 20 76

STOCK EXCHANGE

LISTING

  • CDP A list climate change / Water / Forest 2018 
  • Bloomberg Gender Equality Index 2019
  • Access to nutrition index 
  • Dow jones sustainability indices 
  • MSCI 
  • FTSE4Good
  • Ethibel Index 
  • Prime status by the ISS-Oekom Corporate rating 
  • Indices of ECPI 
  • ISS ESG 
  • BBFAW

EMPLOYEES

102,450

CHIEF SUSTAINABILITY OFFICER

Gabriela Galindo

AWARDS

N/A

CONTENT SOURCE

FURTHER READING

Danone

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

Danone aims to inspire healthier and more sustainable eating and drinking practices. This is 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 Danone 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.”

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 Sustainable Activity

CLIMATE CHANGE: 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 entire value chain by 2050. 

  • Reduction in CO2 footprint (emission intensity / g of C02 equivalent /Kg product sold) 

→ In 2018, 15.6% reduction in emission intensity on Danone’s full scope 2015 baseline. 

→ target 50% reduction in emission intensity on Danone’s full scope by 2030

  • Reduction CO2 footprint (absolute emissions) 

→ in 2018, 20.3% absolute reduction on danone’s scope 1 and 2 emissions, 2015 baseline 

→ target 30% absolute reduction on Danone’s scope 1 and 2 emissions by 2030

  • Renewable electricity 

→ In 2018, 34% renewable electricity 

→ Target 100% renewable energy by 2030, 50% by 2020 

WATER STEWARDSHIP: They have 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. 

  • Protect natural mineral water resources in their watersheds 

→ In 2018, 100% of waters division sites have run SPRING audits 

→ target 100% of waters divisions sites to have run SPRING audits by 2020 

  • Reduce water consumption in production sites 

→ In 2018, 48% of water consumption intensity reduction, 2000 baseline 

→ Target 60% of water consumption intensity reduction by 2020 

CIRCULAR ECONOMY: 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. Danone also wants to take action to reduce food waste. 

  • Use 100% recyclable, reusable or compostable packaging 

→ In 2018, 87% of their total packaging is recyclable, reusable, or compostable. 

→ target 100% of their total packaging is recyclable, reusable, or compostable by 2025

  • Reintegrate recycled materials 

→ In 2018 12% rPET on average in the waters division and 17% in countries where local standards and regulations allow for it 

→  target 50% rPET on average in the waters division by 2025 and 25% by 2020 in countries where local standards and regulation allow for it 

REGENERATIVE AGRICULTURE: 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 

→ target 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 

  • Promote regenerative agricultural practices 

→ In 2018, 50% of non organic fresh milk volumes converted to Non – GMO project verified in the US 

→ target 50% of non organic fresh milk volumes converted to on -GMO project verified in the US by 2018 

SOCIAL PERFORMANCE: Danone provides to 100,000+ employees with a safe, inclusive and diverse working environment, relying on constructive social dialogue and relevant talent management and development. 

INFORM 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.They were also 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. 

Certificates

  • 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

Sustainable Development Goals

How the company covers SDGs

See how in the progress section below. 

Progress

DANONE GOAL BY 2030

OUR BRAND MODEL 

Offer superior food experiences and innovates always (SDGs 3 and 12) 

    • Danone commit 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.

Deliver superior sustainable profitable growth (SDGs 8 and 12) 

      • Their 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. And they build on a strong strategic roadmap around three priorities: accelerate growth, maximize efficiencies and allocate resource with discipline.

Be certified as a B-CORP (SDGs 8, 12, and 16) 

    • Their 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.

BRAND MODEL 

Impact people’s health locally (SDGs 2 and 3) 

    • Their 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

Grow manifesto brands (SDG 12) 

    • 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 planet.

Preserve and renew the planet’s resources (SDGs 2, 6, 7, 12, 13, 14, and 15) 

    • They strive to be a game-changer to foster positive solutions for the planet. They commit to sustainable sourcing for all their ingredients and to enhance the circular economy of packaging. They will protect soil health through regenerative agricultural practices co-developed with partners and we will even amplify our ambitious water stewardship journey.They implement carbon positive solutions and aim to achieve carbon neutrality by 2050.

OUR TRUST MODEL 

Entrust Danone’s People to create new futures (SDGs 3, 5, 6, 8, and 16

    • Building on its unique social innovation heritage, Danone will allow each of its employees to co-own their agenda and their Goals, both at global and local level. 

Foster inclusive growth (SDGs 1, 2, 5, 6, and 8) 

    • They will continue to invent pioneering ways to foster inclusive growth for vulnerable partners in their food chain across the world, including family farmers, street vendors and waste pickers. They will keep building sustainable solutions for access to nutrition and safe drinking water for low-income communities. And they will maximize the impact of our social innovation funds through scale and transformation of business practices starting with Danone Communities, the Danone Ecosystem Fund and the Livelihoods funds.

Serve the food revolution with partners (SDG 17) 

    • 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.” 

Danone’s ambition to become one of the first BCorp certified multinationals, is greatly engaged (30% of Danone’s global sales are now covered by B Corp™, and some other certification like ISO 14001) and recognized by global rankings (Dow Jones Sustainability indexes , CDP, …). This put them in a lead position for a more sustainable future. Since they have primary certificates according to our Index, they have been rated as ‘A’.

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