Danone // 2020 Universal Registration Document

Social, Societal and Environmental Responsibility 5.4 Building the future with Danone employees DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 178 Focus – “One Person, One Voice, One Share” As part of its innovative governance model and commitment “One Person, One Voice, One Share” Danone established in 2018 a new annual strategic routine. It is based on a global consultation that enables employees to share their views of the Company’s priorities and on the definition of local and global roadmaps. The third edition of this consultation was held in 2020. Also in connection with this new governance model, 26 employee volunteers are picked each year from around the world to represent all Danone employees and share ideas with members of the Company’s Board of Directors and Executive Committee, so that they may better understand employee needs and expectations, promote faster decision-making, stimulate innovation and enable local teams to take action and make progress toward achieving the 2030 Company Goals. Danone also grants one Company share to every eligible employee, which gives them the right to vote at the Shareholders’ Meeting. SOCIAL RELATIONS Danone works to promote responsible social dialogue that takes the interests of various stakeholders into account. Social dialogue Definition Danone aims to build successful relationships with its employees through continuous engagement and dialogue, the establishment of systems for reporting problems and filing complaints, and the use of responsible practices, especially during company reorga- nizations. Listening to union representatives regarding employee expectations and maintaining an open dialogue with them helps to limit the threat of strikes and business interruptions. Policies Social dialogue is a key driver for Danone at the management, trade union and employee representatives levels. It enables collective efforts to be aligned in order to improve the Company’s performance. Since 1989, 10 agreements have been signed between Danone and the International Union of Food Workers (IUF), and a joint vision was established. Subjects of Danone-IUF agreements 1. Agreement on economic and social information for Danone companies (1989) 2. Agreement on gender equality in the workplace (1989) 3. Agreement on skills training (1993) 4. Agreement on the trade unions rights (1994) 5. Agreement on the event of changes in business activities affecting employment or working conditions (1997) 6. Agreement on the Fundamental Social Principles (2001) 7. Agreement on setting up of Group social indicators (2005) 8. Agreement on diversity (2007) 9. Agreement on health, safety, working conditions and stress (2011) 10. Agreement on sustainable employment and access to rights (2016) Integration, implementation and communication of the fundamen- tal conventions of the ILO • Since 2003, Danone has been amember of the UNGlobal Compact, which incorporates the International Labour Organization (ILO) fundamental conventions. These conventions are formalized, implemented and brought to the attention of Danone employees and suppliers. • The ILO conventions formulate seven fundamental labor principles that are covered in an agreement signed between Danone and the IUF. These principles form the basis of the RESPECT program, one of the goals of which is to extend these principles to Danone’s suppliers (see section 5.5 Responsible sourcing-supplies other than milk ) . • Danone communicates its commitments to all employees through its Code of Business Conduct (see 5.1 Responsible practices: ethics and integrity ). Governance Social relations issues are managed by the Human Resources Department, which reports to the Chief Human Resources Officer and General Secretary, a member of the Executive Committee. Social relations at Danone are also based on: • the Information and Consultation Committee, supported by its own Steering Committee, whose members include represen- tatives from Danone management and union representatives; • the Board of Directors’ Engagement Committee, whichmonitors the implementation of action plans and initiatives, such as the FutureSkills approach in 2020 described below; • two Directors representing employees who sit on the Board of Directors are appointed by the Company’s Social and Economic Committee and the Information and Consultation Committee. A member of the Social and Economic Committee also participates in Board of Directors’ meetings in an advisory capacity (see section 6.1 Governance bodies ); • close relations with the IUF through a bi-annual meeting between the Human Resources Department, its managers and the ma- nagers of the main regions to build a common objective and monitor compliance with and implementation of the agreements. In addition, ongoing dialogue between Danone’s Head of Social Relations and the Human Resources department heads in the subsidiaries make it possible to report employee expectations up the line, especially with union representatives and employee repre- sentatives, and, if necessary, establish global or local action plans.