Danone // 2020 Universal Registration Document

5 Social, Societal and Environmental Responsibility 5.4 Building the future with Danone employees 179 DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 Action plans In view of the economic and social impacts of the Covid-19 crisis, Danone is committed to supporting employees who need to acquire new skills. In 2020, the Company worked with the IUF to develop an innovative approach, “FutureSkills”, which aims to better prepare employees who need new skills for the jobs of tomorrow. These cover existing jobs that will change significantly due to additional skills requirements in the future as well as new jobs that may emerge. The professional training programs will mainly target employees identified as the most exposed and the most at risk based on criteria such as qualification and salary level. Trained individuals will continue to be employees of the Company and will retain their benefits for the duration of the training. In addition, Danone and the IUF pursue their efforts to reduce em- ployment uncertainty by applying specific definitions, methodology and processes, as defined in the global agreement on sustainable employment and access to rights signed in 2016. Danone also encourages its subsidiaries to apply best practices conducive to dialogue with employees. This includes recommending that they monitor: (i) the number of business and employment-re- lated information sessions for all employees; (ii) the proportion of employees covered by employee representatives; and (iii) the annual number of meetings between site managers and employee representatives. The Company also offers social relations training programs at its subsidiaries which give the teams the resources they need to address challenges and stay ahead of critical issues. In the United States, Danone has held an annual meeting between labor and management since 2019 and is working to define its local social dialogue roadmap. Outcomes In 2020, 78% of employees were covered by collective bargaining agreements (as in 2019) (see Methodology Note). The framework agreements between Danone and the IUF are deployed in each subsidiary, and each year a joint assessment is carried out with a Danone representative and IUF representative. Between 2009 and 2020, a total of 60 site visits were made. Opportunities Danone views dialogue with employees as an integral part of its corporate culture and its dual economic and social project. It is also a powerful way to support employees’ continuing efforts to improve the Company’s performance. Focus – Respecting and promoting human rights in Danone operations In November 2017, as part of a Consumer Goods Forum initiative against forced labor (see section 5.5 Responsible sourcing-supplies other than milk ), Danone pledged to adopt policies to embed the CGF’s principles into its operations. In 2018, the Company issued an internal Global External Workforce Policy aimed focusing specifically on labor agency workers and prohibiting the payment of recruitment fees by workers. In 2020, as part of its implementation, Danone piloted in Mexico a dedicated methodology for social audits of labor agencies, which was co-de- veloped and implemented by a specialized firm. This methodology includes surveys conducted among temporary workers and their Danone colleagues and supervisors to better assess the situation of temporary workers. The Company will roll out the methodology in the priority geographic regions in 2021. More broadly, in 2020 Danone supported the launch of the CGF’s new Human Rights Coalition–Working to end forced labour and pledged to develop and deploy Human Rights Due Diligence (HRDD) systems that focus on forced labor in its own operations, with the aim of reaching 100% coverage by 2025, including for third-party labour engaged by contractors or labour agencies to carry out regular and continuous work in its own operations. At the same time, Danone deployed its e-learning training program on human rights and the fight against forced labor, developed in 2019, available to the Procurement, Human Resources and General Secretary functions to build awareness of the local teams on the topic. More than 3,500 Danone employees had completed this trai- ning at the end of 2020. Lastly, the Company continues to monitor its subsidiaries’ human rights performance through its Danone Way program.