Danone // 2020 Universal Registration Document

5 Social, Societal and Environmental Responsibility 5.8 Methodology note 199 DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 None of the products and by-products that are used for human consumption (production of lactose or cheese from whey, etc.) are included. Data related to waste recovery includesmaterials recovery (recycling, composting, reuse, animal feed, sludge used in agricultural applications, etc.) and energy recovery (methanation, incineration with energy recovery). Unused waste is waste that is sent to landfill, discharged to the sewer or incinerated without energy recovery. As a reminder, in 2018, sludge from wastewater treatment in ex- ternal wastewater treatment plants started to be included in the indicator of recovered waste, when the traceability of this recovery was available. The completeness of this data was improved in 2019. Water consumption The definitions and the method of accounting for various uses of water (including run-off, water pumped from and discharged into streams, water used in the composition of finished products, recycled/reused water, water given to a third party, etc.) are spe- cified in the technical environmental guide prepared by Danone and provided to its subsidiaries. The amount of water withdrawn corresponds mainly to water used for industrial processes and in finished product formulation. Water used in once-through cooling systems (in which the water withdrawn is returned to its original environment after it has passed through the system once without recirculating) is not taken into account in the total amount of water withdrawn. Rainwater is not taken into account in the total amount of water withdrawn. It is included in volumes of recycled/reused water only if it is used by the site. For the Waters Reporting Entity sites, volumes of water withdrawn but not consumed by the site are not taken into account due to losses or to overflow upstream from the plant (losses or overflow at the well or spring level). When logistics centers are located adjacent to industrial sites, their water consumption is taken into account if the site is unable to subtract this consumption. Energy consumption This indicator mainly covers consumption at the production sites. When Research and Development centers or warehouses are located adjacent to production sites, estimates may be made for a given production site to take into account only its own energy consumption (estimate and deduction of the amount of energy consumed by the non-industrial sites adjacent to the production site). In some cases, the energy consumption of buildings located adjacent to an industrial site is taken into account if the site is unable to subtract its consumption. The rules for conversion between the different units used to track energy consumption (m 3 , liters, Btus, etc.) and the standard reporting unit (MWh) are specified in the technical environmental guide pre- pared by Danone and provided to its subsidiaries. In certain cases, the subsidiaries use conversion factors provided by their suppliers. Wastewater The net Chemical Oxygen Demand (COD) data presented correspond to wastewater after internal and/or external treatment. In case of external treatment reported by the site, a purification rate of 90% is assumed. Percentage of volumes sold corresponding to healthy categories Volumes sold in healthy categories correspond to fresh dairy products intended for daily consumption, Specialized Nutrition Reporting Entity products (except biscuits and beverages for children under 3 years of age and foods for children over 3 years of age in the early life nutrition activities), and all waters and flavored waters with 0% sugar. This indicator is calculated in the One Health Scorecard scope. Percentage of volumes compliant with Danone’s 2020 nutritional targets This percentage is calculated for the One Health Scorecard scope. It includes all product categories except mineral water, cooking aids and products for which a target has not yet been defined. Products must meet all the nutrient thresholds for their category in Danone’s 2020 nutritional targets. Compliance is weighted by volumes of products sold. This rule applies at both the portfolio and the product (e.g., multipack) level. If a local regulatory constraint applies to a nutrient, it is excluded from compliance. All the information on Danone’s 2020 nutritional targets can be found on its website. Percentage of product volumes with no added sugars This percentage is calculated for all product categories in the EDP, Waters and Specialized Nutrition Reporting Entities for its early life nutrition activities; its medical nutrition products are excluded. The products included in this indicator are those whose added sugar content is equal to zero grams. Volumes that display on-pack nutritional information/Volumes that display off-pack nutritional information/Volumes that display information on portion size This percentage is calculated for the health and nutrition scope for the EDP Reporting Entity (plant-based products are excluded), the Specialized Nutrition Reporting Entity and aquadrinks (not relevant for waters, which are subject to separate regulations). For medical nutrition products, 100% is applied by definition as the products are prescribed by healthcare professionals and the labelingmust comply with local legislation. All volumes distributed through out-of-home distribution channels (restaurants, cafeterias, etc.) are evaluated “as is” when they leave Danone’s production site, as the way the products are ultimately served to consumers is out of Danone’s control and at that stage there may be no nutritional labeling: a restaurant can serve products in individual dishes without their original cardboard packaging or (for bulk products) in another container. Volumes that display nutritional information on the front of the packaging This percentage is calculated for the health and nutrition scope for the EDP Reporting Entity (excluding plant-based products) and aquadrinks (excluding countries where regulations prohibit the publication of this information). Number of countries covered by Nutriplanet studies Every year, the Alimentation Science department compiles an updated list of countries covered by Nutriplanet studies, including: • summaries of the local nutrition/health context (Nutritional Situations); • more detailed surveys on food and/or fluid intake (Food Habits); • socio-anthropological studies (Food Cultures). Number of active education and information programs during the year/Number of people potentially impacted A program is any initiative that addresses a local public health cause and that has (i) defined a clear objective relating to this cause or its