Danone // 2020 Universal Registration Document

6 corporate governance 6.1 Governance bodies DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 229 • monitoring of Danone’s Manifesto Brands and their objectives; • update on Danone’s participation in the Access to Nutrition Index and the FTSE4Good index; • annual review of Danone’s non-financial reporting andmonitoring of its non-financial rating; • monitoring of reporting organized in connection with the social bond issued in 2018; • review of the annual budget of societal fund Danone Communities and, in that regard, review of Danone’s contribution to Danone Communities; • review of investment projects by the Danone Communities spe- cialized professional investment fund; • monitoring of B Corp™ certification and implementation of Danone’s 2030 Goals; • update on the role of the Mission Committee – a result of the adoption of Entreprise à Mission status – and its interactions with the Engagement Committee; • annual review of Danone’s policy in terms of professional equality and equal pay for men and women and with respect to inclusion and diversity; • update on due diligence with respect to human rights; • discussions, at two Committee meetings, with Danone’s 26 employee volunteers under the “One Person, One Voice, One Share” program; • update on the impact of Covid-19: new ways of working and Danone’s response vis-à-vis its employees and its ecosystem; • presentation of reports of Personal Ethics Commissionmeetings examining various issues related to Human Resources. STRATEGY & TRANSFORMATION COMMITTEE The Strategy & Transformation Committee was created in December 2020 to prepare the Board of Directors’ work on the company’s strategic orientations, with special attention given to implementation of the Local First adaptation plan announced in late 2020. As of the date of this Universal Registration Document, the Strategy & Transformation Committee consists of sevenmembers: Mr. Benoît POTIER (Chairman of the Committee), Mr. Guido BARILLA, Mr. Franck RIBOUD, Mr. Gilles SCHNEPP, Mr. Lionel ZINSOU-DERLIN, Ms. Cécile CABANIS and Ms. Isabelle SEILLIER. This committee is tasked with preparing and clarifying the Board of Directors’ work and decisions regarding the Company’s strategic orientations, including areas of development, external growth or divestment opportunities, significant agreements or partnerships and transactions on the Company’s share capital. It also monitors and analyses changes in Danone’s competitive environment. As part of the implementation of the adaptation plan announced in late 2020, its primary purpose is to monitor the main aspects of the plan: • implementation of the new regional organization (Local First project); • progress of the overhead cost reduction plan; • proposed changes to the business portfolio; • shift in performance towards the announced targets. The Strategy & Transformation Committee’s duties are described in detail in the Board of Directors’ rules of procedure, which are available on the Danone website at www.danone.com (Section Investors/Governance/By-laws & Rules of procedure). As the Strategy & Transformation Committee was created in December 2020, its work began in 2021. EXECUTIVE COMMITTEE Role The Executive Committee is responsible for Danone’s operational management. It implements the strategy defined by the Board of Directors, reviews and approves resource allocation, ensures the consistency of the actions taken by all the reporting entities and, depending on the results achieved, decides on action plans to be implemented. The Executive Committeemeets at least once amonth. In late 2020, Danone announced the expansion of its Executive Committee, which will enable it to be more agile at the local level and support its transformation. The establishment of this new organization resulted in: • the appointment of twomacro-regional CEOs (Danone International and Danone North America) and the creation of a new strategic function that combines local and global expertise in Research & Innovation, Cycles & Procurement, Operations (manufacturing and supply chain) and Quality; • more decision-making at the local level with the implementa- tion of a Danone International organization centered around five zones (Europe, Asia/Africa & Middle East, Greater China & Oceania, CIS & Turkey and Latin America) and the appointment to the Executive Committee of five Presidents responsible for these areas and a Specialized Nutrition Unit President. These six new members joined the Executive Committee in November 2020, keeping their titles and responsibilities as of the date of their appointment, and the functions of Zone President and Specialized Nutrition Unit President will become effective in 2021 following the information-consultation processes. These six new members will report to the International CEO. Thus, Danone’s Executive Committee consists of 12 members with varied and complementary expertise who are familiar with the Company’s business and challenges. It is also a very international committee, with more than half its members of foreign nationality. Danone’s goal is to have balanced representation of men and women at each level of its organization. The Board of Directors ensures that a policy of non-discrimination and diversity is implemented in its management bodies. At the proposal of General Management and in accordance with the recommendations of the AFEP-MEDEF Code, it ensures that General Management sets ambitious gender diversity goals for the Executive Committee and senior management, and is kept informed of the resources deployed and results obtained (see Section 5.4 Building the future with Danone employees above).