Danone // 2020 Universal Registration Document

Social, Societal and Environmental Responsibility 5.8 Methodology note DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 196 INFORMATION REGARDING METHODOLOGIES The methodologies used for certain social, environmental and nutrition indicators may have limits due to: • the absence of common national and/or international definitions; • necessary estimates, the representative nature of measure- ments taken or the limited availability of external data required for calculations. For these reasons, the definitions and methodologies used for the following indicators are specified. Headcount A negligible portion of themanagerial headcount data is not collected during the data reporting period (a few cases of internationallymobile employees on assignment at other Danone entities). Furthermore, some disparities may exist in the headcount accounting methods for expatriate employees (this is the case for expatriate employees who have three-party contracts between the employee, the home subsidiary and the host subsidiary). Employees on long-term leave (more than 9months) are not counted in the total headcount at the end of the reporting period. In China, employees paid by Danone but whose contracts are with a third-party company (equivalent to a temporary work agency) are not included in the headcount. Fixed-termcontracts andmovements within Danone are not included in the entries/exits. The first year that entities are included in the reporting scope, they only report total headcount and are not consolidated in the social indicators scope until the first full fiscal year thereafter. In 2020, that was the case for Harrogate Spring Water (Waters, United Kingdom) and Real Food Blends (Specialized Nutrition, United States) for a total headcount of 92 people, i.e. , 0.09% of total headcount. Number of training hours/Number of permanent employees trained/Percentage of permanent employees trained/Number of training hours per permanent employee Training data for French subsidiaries includes training that is categorized as ongoing professional training, as well as other types of training. The number of permanent employees trained takes into account all permanent employees who received at least one training course during the year, including those who were no longer employed as of December 31, 2020. The number of training hours takes into account all courses during the year, including hours of training received by those who were no longer employed as of December 31, 2020. Training courses for which supporting documents are not received by the closing date for reporting are included in the following fiscal year. The percentage of permanent employees trained is equal to the ratio of the number of permanent employees trained to the average permanent employee headcount. The number of training hours per employee is equal to the ratio of the number of training hours to the average permanent employee headcount. Absenteeism The absenteeism rate is expressed, in percentage, as the total number of hours of absence divided by the total number of theore- tical hours worked. The reasons for absence taken into account by this indicator include sick leave (with or without hospitalization), absences due to work-related illness and injury, absences due to strikes and unauthorized absences. Absences due to maternity/ paternity leave, other authorized leave and long-term absences (more than 9 months) are not taken into account. The assumptions used to calculate the theoretical hours worked are left to the discretion of the subsidiaries on the basis of local specificities, which can lead to minor discrepancies. Some subsidiaries monitor absenteeism only for employees who are paid on an hourly basis, while other employees are included in a program under which they receive a number of days that can be used for various reasons (vacation, sickness, special leave, etc.). In particular, this is the case for the activities of The Dannon Company Inc. (EDP, United States) and Danone Inc. (EDP, Canada), Danone’s subsidiaries in Brazil and in Argentina, and SALUS (Waters, Uruguay). The Danone Japan (EDP, Japan), Danone Waters of America (Waters, United States), Happy Family (Specialized Nutrition, United States), Sequels Natural ULC (EDP, Canada), Vega US LLC DE (EDP, United States), AdvancedMedical Nutrition (SpecializedNutrition, Argentina) and Nutricia Bago Argentina Baby (Specialized Nutrition, Argentina) subsidiaries are not included in the scope. The scope covered represents about 95%of Danone’s total headcount. General collective agreement A collective agreement results from collective bargaining between an employer, a group of employers or employers organizations on the one hand, and trade unions or work councils on the other hand. It refers to a written agreement regarding working conditions and terms of employment. It includes all measures forming a minimum basis, generally more advantageous than the legal requirement, and covering diverse topics, in particular wages, social protection and working conditions. Collective agreements can be negotiated at Company level (Danone), Region level, Country (or countries cluster) level or entity level. Frequency rates of work accidents The frequency rate of workplace accidents with medical leave (FR1) represents the number of workplace accidents with lost time of one day or more that occur over a 12-month period per one million hours worked. The frequency rate of workplace accidents without medical leave (FR2) represents the number of workplace accidents without medical leave for every one million hours worked. The severity rate (SR) represents the number of calendar days of absence due to workplace accidents with medical leave for every 1,000 hours worked. The hours worked are actual hours worked; by default, theoretical hours worked are taken into account on the basis of local practices and regulations regarding working time. The assumptions used to calculate the theoretical hours worked are left to the discretion of the subsidiaries on the basis of local specificities, which can lead to minor discrepancies. Workplace accident indicators also cover accidents affecting tem- porary employees, workers employed through staffing agencies or service providers working at the sites as well as interns who have an internship agreement with Danone. Temporary employees and workers employed through staffing agencies or service providers are individuals who do not have a work contract with Danone but are under its management, work on a temporary or non-temporary