Danone // 2020 Universal Registration Document

Social, Societal and Environmental Responsibility 5.4 Building the future with Danone employees DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 176 Employee profit-sharing and share ownership In 2019, for the first time, Danone granted each eligible employee one DANONE share, thus giving the employee the right to vote at the Shareholders’ Meeting. This share grant also enables employees to participate in a global profit-sharing system indexed on the amount of the annual dividend (see section 7.8 Share ownership structure of the Company as of December 31, 2020 ). At the local level, employees of Danone’s French subsidiaries are eligible for a profit-sharing plan indexed primarily on Danone’s results. Some French subsidiaries and certain foreign subsidiaries have established employee incentive and/or profit-sharing agree- ments indexed on their own results. Employees of Danone’s French companies can also subscribe for an annual capital increase as part of a Company Savings Plan. Lastly, in 2019, Danone launched its first global employee share ownership plan, enabling its employees in 8 countries–mainland China and Hong Kong, Indonesia, Mexico, Netherlands, Poland, Singapore, Spain and the United Kingdom–to subscribe for new Danone shares (see section 7.3 Authorization to issue securities that give access to the share capital ). Retirement commitments, retirement indemnities and personal protection Danone contributes to state-sponsored and/or private retirement funds for its employees in accordance with the laws and customs of the countries where its entities do business. The Company also has contractual commitments covering severance pay, retirement indemnities and personal protection, most of which are managed by independent fund management entities. Commitments related to existing defined-benefit plans generate an actuarial liability, recognized as a provision in the consolidated financial statements. There is no actuarial liability for defined-contri- bution plans. The provision posted for these commitments as of December 31, 2020 and the expenses for the year are presented in Note 8.3 of the Notes to the consolidated financial statements. Focus – Protective measures in response to the Covid-19 crisis In 2020, the Company took major steps to protect its teams and its ecosystem: • All employment contracts of Danone’s 100,000 employees were secured and salaries guaranteed worldwide until June 30, 2020; • Special bonus for employees working on site around the world to ensure the continuity of the food chain. Inclusive Diversity Definition Danone strives to ensure that every employee feels included, res- pected and fully capable of contributing in its own unique way to the Company’s mission by making inclusive diversity a key component of its 2030 Company Goals. Policy and outcome Inclusive Diversity Policy When Danone signed the Global Agreement on Equal Opportunities with the International Union of Food Workers (IUF), it committed to promoting greater diversity within its corporate structure. In 2017, as part of Danone’s Inclusive Diversity roadmap, the Chairman and Chief Executive Officer and its Executive Committee pledged that, by 2020, 30% of the Company’s executives would be women and 30% of its executives would be of under-represented nationa- lities ( i.e. people from Africa, Americas, Asia, Eastern Europe and Oceania). In 2020, these goals were achieved, as 30% of executives were women (vs. 17% in 2016) and 32% were of under-represented nationalities (vs. 20% in 2016). In 2019, Danone published a position paper on inclusive diversity, supplemented in 2020 by its global internal policy on the fight against harassment and discrimination, which ensures that every employee is treated with dignity and respect. Its inclusive diversity strategy focuses on three global priorities: (i) promoting inclusive behaviors, (ii) gender equality and (iii) culture and nationalities. For each of these priorities, Danone has defined commitments and action plans, which are then implemented at the local level in order to cover diversity issues specific to local cultures and contexts. Priority Goal by 2020 Situation in 2020 Promotion of inclusive behaviors Score of 90% on the Inclusion index Score of 87% on the Inclusion index (a) Gender equality 42% female directors 30% female executives 42% female directors 30% female executives Culture and nationalities 50% directors of under-represented nationalities 30% executives of under-represented nationalities 50% directors of under-represented nationalities 32% executives of under-represented nationalities (a) This information is based on the results of the Danone People Survey (DPS), which is sent to each Company employee every two years. Also, of the 10.3% positions with greater responsibility at Danone (10.4% in 2019), which include executives, directors and some other senior-level managers, 50% of these employees were women (49% in 2019). In addition, in order to support equal opportunities and the recognition of each employee, Danone, within all of its countries, ensures equal pay for women and men with the objective of a gap within a range of equity plus or minus 3 points. The 2020 female-to-male ratio is 96.8 globally, in line with the Company’s ambition. Disability Danone encourages its subsidiaries to share best practices regarding people with disabilities. In France, the Company has signed specific agreements on disability and the fight against discrimination that includemeasures to support people with disabilities. Danone promotes the recruitment of people with disabilities by supporting events such as Tous HanScène. Danone also focuses on retaining people with disabilities by ensuring that they have the most suitable work environment. In EDP Reporting Entity in Brazil, together with SER ESPECIAL, trains more than 500 disabled people to help them enter the labor