Danone // 2020 Universal Registration Document

Overview of activities, risk factors 2.2 Strategic priorities DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 14 Entreprise à Mission In June 2020, Danone became the first listed company to adopt the “Entreprise à Mission” status created by the French “Pacte” law in 2019. An Entreprise à Mission company is defined as a company whose objectives in the social, societal and environmental fields are aligned with this purpose and set out in its by-laws. The adoption of the Entreprise à Mission status is a logical and natural step for Danone; the pursuit of long-term, sustainable and resource-conscious value creation with and for all its stakeholders has been anchored in the Company’s values for many years. This status entails (i) the inclusion of a purpose ( raison d’être ) in the Company by-laws, (ii) the inclusion of social and environmental objectives, that the Company sets as its mission to pursue as part of its activities, in its by-laws, (iii) the creation of a Mission Committee responsible for monitoring the performance of this mission, and (iv) the appointment of an independent third party to verify the execution of this mission. By adopting the Entreprise à Mission status, Danone took a new step in the pursuit of a model of sustainable value creation for all its stakeholders: employees, partners, shareholders, and many more. Governance The adoption of a legally enforceable purpose for Danone allowed the Company to strengthen its governance. The progress towards the social, societal and environmental goals set for the mission is indeed verified by an independent third party and overseen by a newly created Mission Committee, which regroups nine eminent and qualified global experts, mainly from non-governmental and international organizations, appointed by the Board of Directors. The Mission Committee reviews and challenges the Company’s roadmap and progress particularly on subjects such as health & nutrition, water, agriculture, biodiversity, packaging, social innovation, people and social matters. Its first annual report will be made available to shareholders on Danone’s website, on the page for the 2021 Shareholdersʼ Meeting. Purpose in the by-laws The purpose ( raison d’être ) of the Company is to “bring health through food to asmany people as possible”. This purpose is embedded in the One Planet. One Health framework of action of Danone, which reflects its strong belief that people’s health and the planet’s preservation are interconnected and should be at the core of a food company’s strategy. This framework of action builds on decades of responsible business stewardship to serve a dual economic and social project. Social and environmental objectives in the by-laws In connection with its purpose, the Company defined strategic goals alignedwith the 2030 UnitedNations Sustainable Development Goals, embedding the business, brand and trust models of the Company to drive long-term sustainable value creation. Among these strategic goals, the social and environmental objec- tives that the Company sets as its mission to pursue as part of its activities, pursuant to 2° of Article L.210-10 of French Commercial Code, integrated into its model of profitable and sustainable growth, are as follows: • impact people’s health locally, with a portfolio of healthier pro- ducts, with brands encouraging better nutritional choices and by promoting better dietary habits; • preserve and renew the planet’s resources, by supporting rege- nerative agriculture, protecting the water cycle and strengthening the circular economy of packaging, across its entire ecosystem in order to contribute to the fight against climate change; • entrust Danone’s people to create new futures, building on a unique social innovation heritage, give each employee the opportunity to impact the decisions of the Company, both locally and globally; • foster inclusive growth, by ensuring equal opportunities within the Company, supporting the most vulnerable partners in its ecosystem and developing everyday products accessible to as many people as possible. ADAPTING TO A NEW WORLD Climate-proofing Danone’s business model Acknowledging the shifting point civil society, consumers and governments reached with regards to climate, Danone announced in February 2020 a €2bn investment plan aimed at “future-proo- fing” and upgrading the competitiveness of its business model. Articulated around 3 pillars – regenerative agriculture, sustainable packaging and connected end-to-end operations, this plan aims at enabling Danone to generate resilient and climate-proof growth for the long-term. Mitigation plans in light of the Covid-19 crisis Starting fromMarch 2020, the Covid-19 outbreak profoundly changed the way business was conducted. In light of the pandemic, and in order to maintain business continuity, Danone had to adapt its business operations, from portfolio of SKUs to factory manage- ment, decision-making process and ways of working. The Company also implemented strong measures to protect its employees and support its ecosystem. These measures, and the pandemic itself did not question Danone’s One Planet. One Health frame of action, its strategy or purpose of “bringing health through food to as many people as possible”. In fact, they made it more relevant, meaningful and opportune than ever.