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Social, societal and environmental responsibility

5.2 Information concerning Danone's social, societal and environmental performance in compliance with the Grenelle II law

DANONE

REGISTRATION DOCUMENT 2015

183

Certification

Danone bases its environmental management policy on the international ISO 14001 standard. ISO 14001 certification is therefore a pre-

requisite set by Danone to obtain the top performance rating during GREEN environmental risk audits (see section

Resources devoted to

preventing environmental risks and pollution

hereafter).

Percentage of ISO 14001-certified sites

Year ended December 31

(in number of sites except percentage)

2014

2015

Total number of sites in the Production Site Environment Scope

(a)

179

186

Total number of ISO 14001-certified sites in this Scope

(a)

89

92

Percentage of IS0 14001-certified sites in this Scope

(a)

50%

49%

(a) Production Site Environment Scope (see

Methodology Note

).

This change is mainly due to the changes in scope following the addition in 2015 of 16 new industrial sites and the removal of nine sites

(see

Methodology Note

).

Employee training and information initiatives in

environmental protection

Danone has developed training and information modules (i) tai-

lored to the needs of the various businesses and functions, and (ii)

consistent with its environmental commitments, mainly through:

•

sustainability Land, a program that helps the management

committees of subsidiaries to define their strategies and goals

by incorporating local sustainable development issues (environ-

mental, social and societal issues);

•

a “Nature” trainingmodule developed andmade available through

“Danone Campus” (see section

Training

above). This module is

intended primarily for the Carbon Masters, but is also open to

other Company functions. The Carbon Masters also participate

in videoconferences held by Division on a monthly or quarterly

basis in order to coordinate andmanage their initiatives centered

around the Nature priorities and goals for the year as defined

by Danone;

•

a website dedicated to environmental claims for use by the

marketing and communications teams and created by Danone is

available at all subsidiaries that communicate on Nature issues to

ensure that they have all the information needed for responsible

communication regarding their environmental initiatives and to

share best practices. This website was developed in cooperation

with the British “anti-greenwashing” agency Futerra;

•

sharing best practices with the industrial and supply chain teams,

particularly through (i) the creation of Nature Campus, with the

primary aim of helping experts from each plant implement best

practices in various areas (reducing rawmaterial losses, reducing

energy and water consumption, managing waste) in the Fresh

Dairy Products Division, (ii) the Energy network (with one expert

per plant), which aims to reduce energy and water consumption

in the Early Life Nutrition Division, and (iii) the development of

documents listing best environmental practices illustrated by

case studies in the Fresh Dairy Products and Waters Divisions.

Other information channels

Danone uses new media and has launched “

Down to Earth

,” a blog

specifically dedicated to sustainable development which is accessible

both internally and externally. The goal is to share Danone's vision

and innovative experiences in the field of sustainable development

and corporate social responsibility.

Resources devoted to preventing environmental

risks and pollution

Information on risk management, particularly with respect to risks

related to weather conditions and seasonality and industrial and

environmental risks are detailed in section 2.7

Risk factors.

Global Risk Evaluation for the Environment (GREEN) program

In 1995, Danone defined environmental production standards for its

products (“

Green Plants Program

”) and began using internal audits

to check compliance with these standards in 1997.

In 2006, Danone began worldwide deployment of the GREEN project,

a tool for monitoring the main environmental risks relating to the

industrial sites (risks of accidents, reputation, non-compliance with

environmental regulations).

As of December 31, 2015, 70%of Danone's industrial sites (Production

Sites Environment Scope, see

Methodology Note

), i.e. 130 sites, were

subject to an external GREEN audit at least once. Of these 130 sites,

54 were audited in 2015 and two-thirds of them were in compliance

with the Company's standards (score of more than 800 out of 1,000).

Environmental investments and expenditures

In 2015, Danone's investments in environmental protection amounted

to €24million, approximately 3%of Danone's total capital expenditure.

The main categories of these investments in 2015 included:

•

environmental compliance: waste treatment, wastewater treat-

ment, treatment facilities, noise measurement, air quality, etc.;

•

investments to reduce carbon emissions (energy savings, use

of renewable energies, logistics and ecodesign of packaging).

Operating expenditures related to the environment amounted to

€115 million in 2015. They included €55 million for waste, water and

air quality management and for environmental taxes other than taxes

on packaging. Taxes on packaging amounted to €51 million in 2015.

Provisions and guarantees for environmental risks

No significant provision for environmental risks and charges was

recognized inDanone's consolidated balance sheet as of December 31,

2015 (as at December 31, 2014).