Danone // 2020 Universal Registration Document

corporate governance 6.3 Compensation and benefits of governance bodies DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 254 Level of economic component achievement: 16.6% of target Indicators Weighting Review of fulfillment of the following achievements Percentage of fulfillment Weighted Growth 25% Non-fulfillment of the criterion related to like-for-like sales growth, in light of the 1.5% decline in sales 0% 0% Recurring operating margin 25% Non-fulfillment of the criterion related to recurring operating margin as the level achieved was 14%, below the target of a margin greater than 15% set at the beginning of the year 2020 0% 0% Free cash flow 10% Target 100% achieved due to free cash flow generation of €2.1 billion 100% 10% Total 60% – 10% Level of social, societal and environmental component achievement: 100% of target Indicators Weighting Review of fulfillment of the following achievements Percentage of fulfillment Weighted Employee engagement 10% The rate of employee engagement measured in the Danone People Survey in 2020 conducted by an outside firm was 91% (percentage of employees recommending Danone as a good place to work). This rate of engagement is 11 points higher than in the FMCG sector. Progress was also made in inclusive diversity, in particular the representation of women in senior andmiddlemanagement positions, inclusive talent development and parental policy. In January 2021, the Bloomberg Gender-Equality Index thus included Danone on the list of companies committed to support gender equality. 100% 10% Fulfillment of climate ambitions 10% Danone was once again recognized as a leader in environmental per- formance. In 2020, it was awarded a “Triple A” score fromCDP for the second year in a row, having made the A list in climate change, forests and water security. This score reflects the actions the company has taken to build a low-carbon economy, protect natural resources and increase its brands’ transparency. Danone’s greenhouse gas emis- sions for scopes 1, 2 and 3 combined fell by 1 million tons, of which approximately 50% due to the company’s regenerative agriculture actions (thereby confirming, as previously announced, that Danone reached its carbon peak in 2019). 100% 10% Total 20% – 20% Level of managerial component fulfillment: 100% of target Indicators Weighting Review of fulfillment of the following achievements Percentage of fulfillment Weighted Organizational leadership 20% The managerial component was assessed mainly with regard to Danone’s leadership during the health crisis. With Danone having secured the continuity of the entire logistics chain worldwide, proven its agility in a volatile environment, kept all of its distributor customers satisfied, and instituted strict health protocols that allowed it to achieve strong workplace safety results, the Board of Directors, on the recommendation of the Governance Committee, therefore consi- dered themanagerial component to be 100% achieved. The Board also took into consideration the adoption of Entreprise à Mission status, which was approved by more than 99% of Danone’s shareholders at the Shareholders’ Meeting on June 26, 2020. 100% 20% Total 20% – 20%