Danone // 2020 Universal Registration Document

Social, Societal and Environmental Responsibility 5.3 Preserve and renew the planet ’ s resources DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 166 PILLARS AND COMMITMENTS ACTION PLANS AND OUTCOMES Packaging designed for circularity By 2025: • design all its packaging to be 100% recyclable, reusable or compostable; • act to eliminate problematic or unnecessary plastic packaging; • launch alternatives to plastic and single-use packaging across all major markets of the Waters Reporting Entity. Danone works to increase the recyclability of its packaging by means of action plans in its brands, including the following: • accelerating reusemodels: Inmany countries, such as Indonesia, Mexico and Turkey, Danone sells reusable water containers, as well as reusable glass packaging for the hotel, canteen and restaurant industry, particularly in France. In 2020, more than 50% of worldwide sales volumes by the Waters Reporting Entity were sold in reusable packaging; • In this context, Danone is also experimenting with new delivery models, including the Loop TM platform by Terracycle, which it joined in 2019. In this scheme, French consumers are provided with returnable glass water bottles for the evian and Badoit brands. Since 2020, it also includes certain yogurts and plant-based products in France and the United Kingdom. • eliminating problematic or unnecessary packaging and diversifying the use of materials: Danone has pledged to eliminate the use of polystyrene in its packaging worldwide by 2025 (in 2024 in Europe). In 2020, the Company has already begun to sell yogurt pots produced in PET (a recyclable material) in the United Kingdom and France. It has also eliminated more than 250 million plastic drinking-straws and eliminated or replaced 8 million plastic spoons, mainly in Europe. • In addition, Danone is innovating to reduce the amount of plastic it uses and/or switch to other materials; for example, it has launched no-label water bottles under the AQUA and evian brands, and also launched products sold in tin, glass and cardboard carton containers. • innovating in its choice of consumption methods , including the following: • its evian (re)new home hydration prototype, sold in a 5-liter, 100% recycled and recyclable plastic container (consuming 66% less plastic than a 1.5-liter bottle). Consequently, 81% of the packaging is recyclable, reusable or compostable in 2020 (the same as in 2019), 67% of which consists of plastic packaging (as in 2019). During the year, the Company used 716,500 metric tons of plastic (compared with 800,000 in 2019). Packaging that is reused, recycled or composted in practice By 2025: • achieve or even exceed collection targets defined by the authorities (in particular, support the European Union’s target of a 90% or greater plastic bottle collection rate); • launch or support collection and recycling initiatives in Danone’s 20 largest markets, which account for approximately 90% of its sales. Danone is working to develop efficient and inclusive channels for collection and recycling, through a collaborative approach with its ecosystem. By participating in the Consumer Goods Forum (CGF) working group on plastic waste, Danone is actively providing a framework and recommendations for the development and implementation of Extended Producer Responsibility (EPR) programs, thereby accelerating the setting up of packaging collection and recycling programs in developed and transitional markets. In France, Danone works with the Citeo eco-organization to create a viable and sustainable yogurt pot recycling industry. The Company also invests in private initiatives, such as the Circulate Capital Ocean Fund ($15 million over five years) in 2019, to develop recycling and circular economy infrastructures in South Asia and South-East Asia. In Indonesia, it works in the PRAISE industrial coalition, a not-for-profit it jointly created with five major industrial players, supporting (i) the collection and recycling of packaging, (ii) the social inclusion of rag-pickers, and (iii) consumer awareness. Lastly, the Danone Ecosystem Fund continues to support inclusive recycling projects in seven countries. In 2020, more than 400 jobs were created and nearly 4,000 people were able to secure their income or see it increase, notably thanks to the Fund’s support.