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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

196

Number of training hours/Number of employees

trained/Percentage of employees trained/Number

of training hours per employee

The training data of the French subsidiaries includes training cat-

egorized as ongoing professional training as well as other types

of training.

The number of trained employees takes into account all employees

who received at least one training course during the year, including

those who were no longer employed as of December 31, 2015.

The number of training hours takes into account all courses lasting

an hour or longer during the year, including hours of training received

by those who were no longer employed as of December 31, 2015.

Training courses for which evidence is not received by the reporting

closing date are included in the following fiscal year.

The percentage of trained employees is equal to the ratio of the

number of trained employees to the total average workforce.

The number of training hours per employee is equal to the ratio of

the number of training hours to the total average workforce.

Employees with disabilities

This indicator covers employees declared as disabled workers. The

status of disabled person is defined by the local regulations of the

various countries. In addition, due to local regulatory specificities,

certain countries take into account both externally documented

disability recognition and disability recognized internally by the

on-site occupational physician.

Absenteeism

The absenteeismrate is expressed, in percentage, as the total number

of hours of absence divided by the total number of theoretical hours

worked. The reasons for absence taken into account for this indicator

include sick leave (with or without hospitalization), absences due

to work work-related illness and injury, absences due to strikes

and unauthorized absences. Absences due to maternity/paternity

leave, other authorized leave and long-term absences (more than

nine months) are not taken into account.

The assumptions used to calculate the theoretical hours worked is

left to the discretion of the subsidiaries based on local specificities,

which can lead to minor discrepancies.

Some subsidiaries monitor absenteeism only for employees who

are paid on an hourly basis, while other employees are included in

a program under which they receive a number of days that can be

used for various reasons (vacation, sickness, special leave, etc.).

Such is the case in particular for The Dannon Company Inc. (Fresh

Dairy Products, United States), Danone Inc. (Fresh Dairy Products,

Canada), Danone Argentina SA (Fresh Dairy Products, Argentina),

Grupo Cuzco International S de RL de CV (Waters, Mexico) and PT

Sarihusada Generasi Mahardhika (Early Life Nutrition, Indonesia),

whose absenteeism rate for employees not paid on an hourly ba-

sis is estimated. Lastly, absenteeism is not recorded at Danone's

subsidiaries in the Netherlands.

Given the limited availability of data in certain countries, Danone

made estimates for this indicator as of December 31, 2015.

Frequency rates of work accidents

The frequency rate of workplace accidents with lost time (FR1)

represents the number of workplace accidents with lost time of one

day or more that occur over a 12-month period for every 1 million

hours worked.

The frequency rate of workplace accidents without lost time (FR2)

represents the number of workplace accidents without lost time

for every 1 million hours worked.

The severity rate (SR) represents the number of calendar days

of absence due to workplace accidents with lost time for every

1,000 hours worked. Regarding the number of lost days taken into

account in the calculation of the severity rate and given the limited

availability of data in certain countries, Danone made estimates for

this indicator as of December 31, 2015.

The hours worked are actual hours worked; by default, theoretical

hours worked are taken into account based on local practices and

regulations regarding working time.

The assumptions used to calculate the theoretical hours worked is

left to the discretion of the subsidiaries based on local specificities,

which can lead to minor discrepancies.

Workplace accident indicators also cover accidents affecting

temporary employees working at the sites as well as interns who

have an internship agreement with Danone. Temporary employ-

ees are individuals who do not have a contract with Danone but

are under the Group's management, work on a temporary basis

and for whom working time is available (in number of hours); this

can create discrepancies in the scope of the workforce taken into

account by the sites.

Production

The production of Danone's industrial sites is the total production

of finished and semi-finished products of each of the sites. As some

semi-finished products are used as ingredients at other Group

plants, the total production of the industrial sites is greater than

Danone's total production.

Waste

In 2015, waste was classified into four categories (hazardous waste,

non-hazardous organic waste, non-hazardous inorganic waste and

sludge from water treatment facilities).

Since 2014, the “Volume of sludge from wastewater treatment fa-

cilities” indicator has been taken into account at all sites that have

on-site wastewater treatment (complete and partial) and generate

sludge. This indicator is calculated based on the quantity of wet

sludge and a rate of dry material. When the rate of dry material

was not available (approximately 8% of cases), the default value

was set at 100%.

Consolidated data related to waste does not include (i) product

returns (non-compliant raw materials rejected/unsold due to

commercial problems), and (ii) whey, a by-product normally reused

by a third party.

Data related to waste recovery includes materials recovery (recy-

cling, composting, reuse, etc.) and energy recovery.

Water consumption

Consumption of well water or surface water may be estimated

when sites do not have meters. The definitions and the method

of accounting for various uses of water (including run-off, water

pumped from and discharged into streams) are specified in the

technical environmental guide prepared by Danone and provided

to its subsidiaries. Water consumption includes water used for the

industrial processes and in finished product formulation.

The calculation method used by Danone entails taking into account

the water used in open cooling circuits (water pumped and discharged

into the environment without any modification except temperature).

When logistics centers are located adjacent to industrial sites,

their water consumption is taken into account if the site is unable

to subtract their consumption.