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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

188

•

in Russia, at the Chekhov plant in the Fresh Dairy Products

Division, a methane digester was brought online in June 2013 to

recover treatment plant sludge and produce biogas. The energy

produced represents 7% of the thermal energy used at the site;

•

in Indonesia, the Subang site, which produces 1.2 billion liters of

water per year, uses 100%biofuel purchased for its thermal energy.

At all the Divisions, thermal energy from renewable sources pro-

duced and used on-site represents 4% of the total thermal energy

consumed by Danone.

Purchase of electricity specifically generated from 100%

renewable sources

Each subsidiary is responsible for choosing its energy mix. In 2015,

nine industrial sites purchased electricity from 100% renewable

sources (wind power, hydropower, etc.). This represents 4% of

Danone's total electricity purchases.

For example, 100% of the electricity used by the Spanish plants of

the Fresh Dairy Products and Waters Divisions comes from 100%

renewable sources.

Soil use

In 2012, Danone commissioned a study by Bio Intelligence Service to

estimate the overall soil use related to its direct and indirect activities.

This study showed that indirect activities (upstreamagriculture) use

more than 98% of the estimated surface area (3 million hectares).

Soil use issues are also taken into account in the sustainable ag-

riculture approach.

Climate change

Greenhouse gas emissions

Danone applies two methodologies for measuring greenhouse gas

emissions:

•

a “product” approach based on a product and packaging life cycle

analysis, which takes into account emissions at each stage: raw

materials (including milk and upstream agriculture), packaging,

production, logistics, warehousing, sale and products and pack-

aging end of life. This method makes it possible to identify the

most significant means of reducing emissions;

•

an “organization” approach that calculates greenhouse gas

emissions generated by production activities and therefore a

smaller scope than for the “product” approach, in compliance

with the regulatory requirements of Article 75 of the “Grenelle

II” law, which categorizes direct scope 1 emissions and indirect

scope 2 emissions (see

Greenhouse gas emissions by organization

hereafter).

Greenhouse gas emissions through product lifecycle analysis

Measuring the carbon footprint

Danone has developed and deployed a carbon footprint measurement

tool based on product lifecycle analysis (Greenhouse Gas Emissions

Scope, see

Methodology Note

) at most of its subsidiaries. This tool

was successfully integrated into Danone's information systems

thanks to a solution jointly developed with software developer SAP.

The goal is to allow the subsidiaries that have this module to monitor

their carbon emissions within their direct scope of activity, as well

as the emissions of their suppliers and customers.

Reducing the carbon footprint: goals and results

For the direct responsibility scope

In 2008, Danone set the goal of reducing its carbon intensity by 30%

by 2012 – a goal that it has exceeded – wherever Danone exercises

direct responsibility (production sites, packaging and end of life,

transport and warehousing, excluding upstream agriculture). A

specific strategy and priorities have been set for each sub-part

of the supply chain. In 2013, Danone reaffirmed its commitment

by setting a goal of a 50% reduction of its carbon intensity (for the

same base year and scope) by 2020.

The reduction from 2008 through end-2015 was 46.4% (on a like-

for-like basis).

(in gr CO

2  

/kg)

304.4

gr CO

2

/kg

2007

-12.8

Change in

emissions factors

Organic decrease = 46.4%

-35.5

Product and

geographical mix

effect

-93.0

Reduction action

plans

+23.1

Scope

+29.1

Change in

measurement

method and others

215.5

gr CO

2

/kg

2015

The most meaningful actions for reducing emissions are energy conservation measures at the plants, reduction of packaging and

optimization of logistics supply routes.