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Social, societal and environmental responsibility

5.1 Danone social, societal and environmental approach

DANONE

REGISTRATION DOCUMENT 2015

170

This section describes Danone's policy and accomplishments in the area of social, societal and environmental responsibility. It is organized as follows:

•

description of Danone's approach to social, societal and environmental responsibility;

•

information concerning Danone's social, societal and environmental performance in compliance with the provisions of Article 225 of law

No. 2010-788 of July 12, 2010 (“Grenelle II”) and its implementing decree;

•

other information related to Danone's social, societal and environmental responsibility: Funds sponsored by Danone.

More extensive information concerning Danone's strategy and performance with regard to Sustainable Development can be found in Danone's

Sustainable Development Report published annually. Practices and quantitative results are described there, based in particular on the Global

Reporting Initiative (GRI) indicators.

In general, the amounts presented are rounded to the nearest unit. As a result, the sum of the rounded amounts may vary slightly from the reported

total. Moreover, ratios and differences are calculated on the basis of the underlying amounts, not of the rounded figures.

5.1 DANONE SOCIAL, SOCIETAL AND ENVIRONMENTAL APPROACH

General policy

As a direct result of Danone's dual economic and social project,

Corporate Social Responsibility (CSR) is deeply anchored in Danone's

business activity.

In 1972, Antoine RIBOUD noted that “corporate responsibility does

not stop at the factory gate or the office door.” This vision led to the

dual economic and social project that forms the basis for Danone's

development and organizational model.

In 2006, Danone redefined its mission: “bringing health through food

to as many people as possible.” This mission requires that Danone

takes concrete steps with regard to today'smajor societal challenges:

•

the challenges related to products and consumers with the

launch of safe, healthy products, efforts to promote a healthy

lifestyle and nutritional education;

•

environmental challenges, because for Danone, healthy food

starts with a healthy natural environment;

•

social challenges, including employment, enhancement of em-

ployability and occupational skills, employee commitment, social

dialogue and awareness of the specific characteristics of the

regions in which Danone operates and their social cohesion.

To continue to meet these challenges and grow in accordance with

its mission, Danone decided to focus on three key strategic areas:

•

alimentation: encourage healthier eating behaviors;

•

strategic resources: strengthen Danone's ability to protect and

optimize our essential resources (milk, water and plastic) and

secure our license to operate in a cycle-oriented way;

•

people and the organization: the goal is to tap into the full range of

talent at Danone to give our corporate architecture more solidity

and more relevance for today's world.

Danone's CSR policy in detail

Danone's CSR approach is characterized by the depth of its integra-

tion into the businesses and by the constant effort to create value

for shareholders and for all stakeholders.

To achieve this, Danone has integrated its CSR approach into its

main processes and business activities across the various stages

of the value chain, and particularly into the following processes:

•

production, in particular through the direct participation of the

industrial functions in achieving targets related to safety and

reduced water and energy consumption;

•

purchasing, based on a policy of responsible procurement;

•

human resources, through diversity, social dialogue and individual

employee development;

•

marketing, research and development and sales, by developing

synergies between CSR and these functions.

Danone has, in particular, created an organization and specific

governance, including:

Social Responsibility Committee

Formed from the Board of Directors, it examines, in particular,

non-financial information and ratings, as well as social policy and

investments related to social aspects implemented by Danone (see

section 6.1

Governance bodies

related to the

Social Responsibility

Committee

).

Health governance

Health governance includes the principles, mechanisms and eval-

uation methods that allow Danone to meet its commitments as

defined in 2009 in the Food Nutrition Health Charter (see section

Food Nutrition Health Charter

hereafter).

CSR goals set by Danone

CSR goals are requested by General Management at the level of

Danone and its consolidated subsidiaries and may be defined over

the medium term, such as the carbon footprint reduction goal, staff

safety, etc. In addition, the achievement of certain goals determines

a portion of its employees' variable compensation.