Danone // 2020 Universal Registration Document

Social, Societal and Environmental Responsibility 5.3 Preserve and renew the planet ’ s resources DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 168 Reducing food waste Definition Danone’s target is to (i) reduce waste in its operations and its supply chain, notably by combating food loss and recovering food waste, and (ii) help reduce loss and waste prior to and following its direct operations by means of partnerships, consumer education or im- proved product markings. Policies One of the Company’s drivers for change is the optimization of its production processes by measuring waste at all of its production sites except itsWaters Reporting Entity bottling plants, in accordance with the Food Loss and Waste Protocol, the leading international guidelines formonitoring foodwaste, developed by theWorldBusiness Council for Sustainable Development (WBCSD). Under the resolution against food waste adopted by the Consumer Goods Forum in 2015, Danone has pledged to reduce its non-reco- vered food waste by 50% between 2016 and 2025. In 2020, the Company strengthened its ambition by aligning with Sustainable Development Goal (SDG) 12.3’s 10x20x30 initiative, and beyond non-recoveredwaste, by committing to reduce to halve its food waste (excluding waste intended for animal feed and the processing of biomaterials) throughout its operations and distribution chain. Action plans Danone adopts a collaborative approach to reducing food waste— from farm to fork—across its entire product portfolio, involving its consumers, suppliers, distributors and partners in the process. The Company reduces food waste in its value chain as follows: • upstream , by innovating with its brands to make use of ingre- dients likely to be wasted, as in the case of Two Good in the United States, which uses ripe fruit taken from the conventional sales circuits, or Danone aux fruits d’ ici in France, which launched a limited edition product, “Gariguette Solidaire 2020”, along with Carrefour to consume farmers’ surplus strawberry production caused by the Covid-19 crisis; • in its production sites, warehouses and logistics centers , by optimizing its production processes: as a result, its French plants have signed partnerships with the startups Comerço and Phenix to redirect “unfit for sale” products in conventional distribution networks to consumers (because the weight is less than that marked on the label, for example). Furthermore, the Company redistributes its surplus food to specialist charities in order to support vulnerable communities. Consequently, Danone signed an agreement with The Global FoodBanking Network in 2020. Lastly, any unavoidable food waste is sent to recovery streams recognized by Sustainable Development Goal 12.3; • downstream , by acting to reduce waste through consumer education or, when the quality requirements allow, changing the product labeling to say “Best before”. As a result, Danone signed a partnership with “Too Good To Go” in Europe in 2020 to change the labeling of consumption dates on some of its pro- ducts in France. Beginning with Activia in Germany in 2019, this type of initiative was extended to other brands in Spain and the United Kingdom and then expanded to cover the rest of Europe. Outcomes Year ended December 31 Production sites (a)(b) Production sites and supply chain (b)(c) 2019 2020 2019 2020 Food waste management Total quantity of food waste generated (in ktons) 386 313 481 409 Ratio of total quantity of food waste per metric ton of product (in kg/tons) 45.0 36.3 57.3 46.8 Ratio of total quantity of food waste recovered per metric ton of product (in kg/tons) 39.9 32.4 47.2 38.5 Proportion of waste recovered 88.6% 89.3% 82.3% 81.2% Ratio of total quantity of food waste non-recovered per metric ton of product (in kg/ tons) – – 10.1 8.8 Reduction in the ratio of total quantity of food waste non-recovered per metric ton of product since 2016, on a like-for-like basis – – -7.0% -15.6% (a) Production Site Environment scope, see Methodology Note. (b) Excludes Waters Reporting Entity sites. (c) Production Site Environment scope and Scope 3 downstream, see Methodology Note. The ratio of the amount of food waste generated per metric ton of product at production sites declined by 19.4% between 2019 and 2020, mainly due to a methodological change at an Alpro site. The recovery rate increased from 88.6% to 89.3%.