Danone // 2020 Universal Registration Document

Social, Societal and Environmental Responsibility 5.2 Offering safe, healthy products DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 156 MARKETING OF BREAST MILK SUBSTITUTES Definition Danone offers breast milk substitutes to parents who cannot or choose not to breastfeed exclusively. Similarly, the Company is committed to complying with local law and its own policies by practicing responsible communication and marketing. Policies Danone supports theWorldHealth Organization’s (WHO) international public health recommendation calling for exclusive breastfeeding in the first six months of a baby’s life and continued breastfeeding up to the age of two and older, in conjunction with the introduction of safe, appropriate complementary foods. Danone also published a position paper on Health and Nutrition during the first 1,000 days of life, from the first day of pregnancy until the age of two, based on two convictions: • breastfeeding must be protected and promoted; • mothers, infants and young children must receive the best possible nutrition. As part of its Policy for the Marketing of Breast-Milk Substitutes (BMS Policy), the Company has deployed strict rules at the global level: no Danone subsidiary may advertise or promote breast milk substitutes for babies under six months, even if local law allows it. In accordance with the breast milk substitutes criteria of the FTSE4Good Index, in countries classified as higher-risk, Danone has voluntarily extended its BMS policy to infants up to 12 months of age, which may go beyond local legislation. This policy applies to all Danone employees and partners involved in the marketing, distribution, sale, or governance of the affected products and/or related education programs. Danone is the first and only company with an international policy on marketing breast milk substitutes from birth to six months of age. In 2019, each local Danone entity created a local guide to explain the Company’s commitment to local legislation and to the BMS Policy. In 2020, together with UNICEF and several civil society organizations, WHO published a Call to Action for companies that manufacture BMS to publicly commit and take steps toward full worldwide compliance with the International Code of Marketing of Breast Milk Substitutes (WHO Code) by 2030. Danone reaffirmed its support for the aims and principles of the WHO Code by providing a response to this BMS Call to Action. In its response, Danone set out a clear program for promoting, protecting and supporting breastfeeding over the next 10 years. This program consists of actions that mainly relate to marketing, research, social investment and workplace practices. Governance Issues related to breast milk substitutes are under the responsibi- lity of the Compliance Department within the Specialized Nutrition Reporting Entity. This department reports to the Legal andCompliance Department within the office of the General Secretary, ensuring independence from the operating teams. At the local level, each country director is responsible for implementing the BMS Policy and for monitoring its procedures in the relevant geographic region. Action plans Danone appoints an independent third party to conduct three market-based assessments of its breast milk substitute marketing practices every year; the summary report is publicly accessible. Additionally, the Company publishes an annual report on BMS Policy management and compliance which includes: • a summary of the external audits and checks for the previous year; and • suspected and reported non-conformities. Danone has also rolled out e-learning training on its BMS Policy which is accessible to all employees and has been translated into 13 languages. Outcomes In 2020, 6,387 employees were trained on Danone’s Policy for the Marketing of Breast-Milk Substitutes (versus 4,786 in 2019). The Access to Nutrition Index (ATNI) ranked Danone in the top 3 among top-performing food and beverage companies in 2018 and first for the marketing of breast milk substitutes. At the same time, in 2020 Danone was confirmed as a member of the FTSE4Good index calculated by FTSE Russell for the fourth consecutive year.