Danone // 2020 Universal Registration Document

5 Social, Societal and Environmental Responsibility 5.8 Methodology note 195 DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 INDICATOR SCOPE Health and Nutrition In 2011, Danone created a series of performance indicators (One Health Scorecard) to measure progress made regarding health and nutrition, particularly product composition and responsible communication. These indicators are consolidated for a scope of 32 countries covering all of Danone’s Reporting Entities and geographic regions. In 2020, 85 entities representing 82% of consolidated sales reported health and nutrition indicators (74% in 2019). The health and nutrition indicators scope excludes the medical nutrition activities of Specialized Nutrition Reporting Entity in France. Danone Way In 2020, 144 entities conducted a Danone Way self-assessment, representing 99,5% of Danone’s consolidated sales (99% in 2019). This program also covers 99% of Danone’s total headcount. LIKE-FOR-LIKE CHANGES IN SCOPE (CONSTANT SCOPE) Danone measures changes in environmental indicators and in greenhouse gas emissions on a like-for-like basis, i.e. at constant consolidation scope and constant methodology. The 2020 data has been restated using the same consolidation scope and constant methodology as that of 2019. DEFINITION OF THE REPORTING ENTITIES Essential Dairy & Plant-Based (EDP) Production and distribution of fresh fermented dairy products and other dairy specialties, plant-based products and drinks, and coffee creamers Specialized Nutrition Production and distribution of specialized food for babies and young children to complement breast-feeding and for people afflicted with certain illnesses or frail elderly people Waters Production and distribution of bottled water, water sold in large containers (jugs), and water sold in small containers DATA COLLECTION To ensure the homogeneity of the indicators across the reporting scope, shared data reporting guidelines for social, safety, environ- mental, and health and nutrition data are transmitted and updated each year following data consolidation and contributors’ comments. These guidelines specify the methodologies to be used for repor- ting the indicators, including definitions, methodology principles, calculation formulas and standard factors. These reporting guidelines for social, safety, environmental, GHG, health and nutrition and Danone Way data are available on request from the One Planet. One Health Integration Department. The social, safety, environmental, and health and nutrition indica- tors are transmitted by subsidiaries and/or production sites and consolidated at global level by relevant departments. Environmental data are checked at the subsidiary level and then at the Reporting Entity level when reported. Social and safety data are checked at the end of the second quarter and at the time of consolidation as of December 31, 2020. Lastly, health and nutrition data are checked at the subsidiary level and then at the Reporting Entity level when reported. Social and safety indicators The Human Resources Department is responsible for social and safety indicators. The subsidiaries’ social data are generally derived from their payroll systems and reported via Danone’s financial in- formation consolidation software (SAP/Business Objects Financial Consolidation). Safety indicators are reportedmonthly by each entity in AIRSWEB, Danone’s safety data consolidation system. Environmental indicators TheNature&Water CycleDepartment is responsible for environmental indicators. Production Sites Environment indicators are reported by each production site’s Environment manager using the new PURE Platform tool implemented in 2018 with UL EHS Sustainability. This is the second year that scope 3 greenhouse gas emissions data, including packaging data, were reported using this same tool. Health and nutrition indicators The Alimentation Science Department is responsible for health and nutrition indicators. Health and nutrition data are reported by the Scorecard Owners at each subsidiary through a system of standardized forms, which are then consolidated to calculate the global indicators. Product data are generated by Reporting Entity-specific systems (Nutripride for the EDP Reporting Entity, NutreBase for the early life nutrition activities of the Specialized Nutrition Reporting Entity, and Aquamap for the Waters Reporting Entity). Data on volumes are generated by Danone’s financial infor- mation consolidation software. Lastly, training data are taken from the Human Resources reporting systems. This information and information about consumer programs are reported by Scorecard coordinators at each subsidiary using the UL PURE application. Danone Way indicators The One Planet. One Health Integration Department is responsible for the Danone Way, a qualitative programwhich guides subsidiaries toward Danone 2030 Company Goals via progressive framework of practices. Danone Way indicators correspond to the percentage of subsidiaries for which it has been determined that one or more practices are applicable and applied. They are reported by the Danone Way coordinators at each subsidiary using the UL Pure data management application. For certain entities (large entities or combinations of entities), a threshold for approving a practice (indicator) has been set at 80% of the entity’s sales or headcount. Regarding, the practice mentioned in the section 5.2 Offering safe, healthy products (Commitment No. 3), it was defined that in 2020, any donation to food banks including the ones as a response to Covid-19 justifies its validation.