Danone // 2020 Universal Registration Document

5 Social, Societal and Environmental Responsibility 5.2 Offering safe, healthy products 153 DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 Commitment No. 6: provide the most appropriate product labeling to encourage healthier practices 2020 TARGET ACTION PLANS AND OU TCOMES 100% of Danone products will display com- prehensive nutritional information to guide consumers, in particular regarding portion guidance. Danone supports initiatives to better inform consumers and help them become active participants in their own health. Thus, in 2020, 82.6% of Danone products displayed comprehensive nutritional infor- mation (nutritional table on the back of the packaging; a summary of the information on the front; approximate portion size; information provided in other ways, such as the website) compared with 66.4% in 2019. In particular, in 2020, 96% of products displayed nutritional information on the front of their packaging (versus 68% in 2019) and 83% of these volumes provided approximate portion size (versus 74% in 2019). Danone also continues to support Nutri-Score and has even – alongside several players in the food chain and civil society – called on the European Union to make the Nutri-Score mandatory in all countries. This declaration, dated April 2020, was made with consumer associations, Members of the European Parliament, scientific experts, retailers and food companies. At the same time, Danone continues to gradually rolling it out to the EDP Reporting Entity’s product portfolio. In 2020, this label was applied to its products in Austria, Belgium, France, Germany, Latvia, Luxembourg, Poland, Portugal, Slovenia, Spain and Switzerland. Opportunities Danone strives to anticipate consumers’ expectations and emerging tastes and to encourage them in their day-to-day food and beverage choices. Danone continues to diversify its innovative plant-based product offering to respond to growing consumer trends such as flexitarianism (a diet that encourages more balanced consumption of animal- and plant-based proteins). It also offers new categories of products rich in probiotics, nutrients and proteins. Focus – Accessible, affordable nutrition As reflected in its purpose of “bringing health through food to as many people as possible,” Danone believes that accessible, affordable nutrition is a fundamental component of its strategy. With its 2030 Company Goals in particular, Danone has demonstrated its commit- ment to fostering inclusive growth for the most vulnerable partners in its value chain in collaboration with its social innovation funds. The Company provides healthy, affordable products to vulnerable groups based on targeted distributionmodels that make themmore accessible; to do so, it relies mainly on its Nutriplanet program. Danone also relies on improving its portfolio by enriching selected products with key nutrients and/or making them more affordable. For instance, its EDP subsidiary in Brazil offers a Danonino range, fortified with vitamins D and E, calcium, zinc and iron. In 2020, against the backdrop of the Covid-19 crisis, which has exa- cerbated inequalities andmarket fragmentation worldwide, Danone made a commitment to support the populations most affected by the crisis through its “affordvaluity” strategy. At the local level, this strategy involves (i) studying the socioeconomic pyramid and (ii) de- termining the right price positioning to make safe drinking water and healthy and nutritious food accessible. The Specialized Nutrition Reporting Entity has applied this approach to its strategy with pro- duct launches in Asia (mainly in Indonesia and Malaysia) and Latin America. In 2020, 51% of Danone’s entities had at least one healthy product in their portfolios targeting low-income populations or a plan to expand access (see Danone Way scope, Methodology Note). Lastly, Danone builds its strategy on innovative investment partnerships, with support from several of its funds. These in- clude (i) the Danone Communities Fund, which fights malnutrition and promotes access to safe drinking water, and (ii) the Livelihoods Fund for Family Farming, which helps smallholders become more resilient and develop subsistence farming strategies that improve their diets. Ensuring food safety Definition Danone, because of its mission and as an active player in the food and beverage industry in many countries, must always guarantee the safety and quality of its products to its consumers. Policies Danone’s approach to quality and food safety (QFS) encompasses the entire value chain, from product design and supply to manu- facturing, distribution and sale. It is replicated for each Reporting Entity, product and technology and reflects: • Danone’s QFS commitments based on the four pillars (be trusted, be preferred, be efficient and be proud), supplemented by an implementation handbook; • Danone’s food safety policy, which was revised in 2020 and refers to a Company-wide management system rooted in the latest science and technology to enable robust risk anticipation, assessment and management. Governance Responsibility for implementing action plans and monitoring com- mitments lies with: • the Global Food Safety Department, which reports to the Chief Human Resources Officer and General Secretary, who is a member of the Executive Committee, ensuring independence from the operational teams. The department is in charge of es- tablishing and maintaining Danone’s Food Safety Management System (FSMS), and assessing its compliance and effectiveness; • the operational QFS departments, which are responsible for im- plementing the policies and standards applicable to their entities and which report to the COO End-to-End Design to Delivery, who is a member of the Executive Committee. The General Manager of each subsidiary is responsible for ensuring that the products on the market comply with applicable laws and regulations and with Danone’s food safety standards.