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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

187

The quantity of raw materials consumed per ton of finished prod-

uct is one of the main criteria for production performance, as raw

materials represent a large portion of the cost structure of Danone

products. Numerous measures are therefore taken to use them

more efficiently:

•

liquid milk, sugar, fruit: in the Fresh Dairy Products Division,

raw material losses are monitored daily at the industrial sites,

and the results are consolidated monthly at the subsidiaries and

Division level for comparison with the monthly loss reduction

goals set during the budget process. The principal actions taken

to reduce these losses include (i) optimizing rawmaterials inven-

tories, and (ii) optimizing production scheduling or production

line scaling to reduce raw materials losses at the start and end

of production runs;

•

packagingmaterials: Danone's packaging development complies

with the ecodesign principles defined in guidelines that were

updated in 2014. These packaging ecodesign guidelines were

rolled out to all Divisions in 2015.

Energy consumption, measures taken to improve

energy efficiency and the use of renewable

energies

Energy consumption

Danone's energy consumption intensity decreased by 5.0% in 2015

relative to 2014, mainly as a result of 4.7% productivity on a like-

for-like basis.

This performance resulted from the application of energy man-

agement best practices at all the Divisions and from transfers of

production to more energy-efficient facilities.

Energy consumption by Danone's production sites

Year ended December 31

(in MWh except intensity in KWh/ton of product)

2014

2015

Thermal energy

(a)

2,819,112

2,825,972

Electricity

(a)

1,962,911

2,011,464

Total

4,782,023

4,837,437

Energy consumption intensity

149.3

141.9

(a) Production Site Environment Scope (see Methodology Note).

The graph hereafter shows changes in energy consumption intensity

in the production sites since 2000, for the reporting scope of each

of the years concerned.

Total energy consumption intensity in the plants

(in KWh/ton of product)

275.0

186.2

163.3 158.9

151.6 147.1

137.7

149.3

141.9

2000

2008 2009 2010 2011 2012 2013 2014 2015

Measures taken to improve energy efficiency

Danone achieved better energy management through two main

approaches:

•

optimizing energy production at the plants. For example, three

sites in the Fresh Dairy Products Division have installed co-

generation facilities to produce electricity and heating from

a single energy source, thereby improving the plant's energy

performance. Up to 90% of energy can be recovered through

cogeneration, compared to 40% to 55% for traditional systems;

•

optimizing energy use.

Sharing best practices and fostering emulation between Danone's

plants helped to strengthen this improvement process in 2015:

•

in the Waters Division, the “WattWatcher” tool, deployed at all the

sites, allows to set performance objectives tailored to each plant;

•

in the Fresh Dairy Products Division, energy training courses

known as “Energy Campus” continue to bring in energy experts

to implement best practices at all production sites;

•

in the Early Life Nutrition Division, monthly Energy network

actions are implemented.

Use of renewable energies

Thermal energy from renewable sources

Danone is testing renewable energy production and usage projects

at the local level, for instance:

•

in Uruguay, 78% of the thermal energy of the Waters Division's

Minas plant is generated from locally produced biomass energy;

•

in Brazil, at the Poços de Caldas plant in the Fresh Dairy Products

Division, a biomass boiler was installed in August 2011 to replace

the heavy fuel oil used for heating. Thanks to the use of biomass,

nearly all the thermal energy used by the plant is generated from

renewable sources (98%);

•

since 2012, the Early Life Nutrition Division's site in Wexford,

Ireland has used a wood furnace that replaced heavy fossil

fuels and helped to lower the site's fossil fuel energy bill and

greenhouse gas emissions. The energy produced represents

66% of the thermal energy used at the site;