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Social, societal and environmental responsibility

5.3 Funds sponsored by Danone

DANONE

REGISTRATION DOCUMENT 2015

201

As of December 31, 2015, this project was implemented in more

than 150 Cambodian villages as well as in nine new villages in

Madagascar and four villages in India, giving over 340,000 people

access to drinking water.

La Laiterie du Berger, Senegal

La Laiterie du Berger is a Senegalese social business created in

2005 to help improve the situation of Fula herders by providing them

with a source of fixed income.

In Senegal, imported milk in powder form accounts for the bulk of

consumption, even though a large portion of the population lives

traditionally off livestock farming and is therefore capable of producing

milk. La Laiterie du Berger manufactures products (mainly yogurts

and “crème fraîche”) made from fresh milk collected locally from

Fula herders. These products are then sold at competitive prices on

the Senegalesemarket. The company also supplies the herders with

feed for their cattle and offers them training to improve productivity.

Isomir, France

Financed by the danone.communities FPS since 2010, Isomir SAS

(“Industrialisation Solidaire en Milieu Rural”) helps small farmers

in France developing their short food supply chain activities by

financing production facilities (poultry slaughterhouse, meat, fruit

and vegetable and milk processing) for local selling (direct sales,

canteens, etc.).

In addition, the Isomir association, which is involved in the overall

project, provides small farmers with turnkey production facilities,

advice and services to start up and launch their business (regulatory

training, technical support, marketing advice, etc.).

Naandi Community Water Services, India

Financed by the danone.communities FPS since 2010, Naandi

Community Water Services was created at the initiative of the Indian

foundation Naandi in 2006 to provide very low-cost drinking water

to village communities in India.

Water treatment and distribution systems have been installed by

NCWS in more than 400 Indian villages. Installation, maintenance

and technical operation of the systems are handled by the company's

staff but are managed directly in the villages by people who have

been specially recruited and trained.

El Alberto, Mexico

The El Alberto project, which is the result of a partnership between

the Porvenir Foundation, HOD Mexico, the Mexican government

and danone.communities, was launched in 2011. Its objective is to

give the indigenous communities of the El Alberto region of Mexico

access to clean, inexpensive water. At the end of 2015, the project

supplied drinking water to nearly 30,000 people.

NutriGo, China

The NutriGo project, implemented through a partnership with the

non-governmental organization Shanghai NPI Social Innovation

Development Center, is amajor player in social innovation and social

entrepreneurship in the People's Republic of China.

This project, which was launched in 2011, seeks to:

•

market YingYangBao, a powdered food supplement that provides

children with key nutrients (such as proteins, vitamins, iron and

calcium) in the economically disadvantaged rural areas of China

where people suffer from chronic malnutrition;

•

provide stronger nutritional education to local populations.

Development of theNutrigo project is in line with its roadmap still with

a limited geographical impact reaching approximately 5, 000 people.

Jita, Bangladesh

The FPS's latest investment, which was made in 2012, concerns

JITA, a women-operated rural distribution network for basic prod-

ucts in Bangladesh.

It is an extension of a program launched by the non-governmental

organization CARE Bangladesh in 2004 and seeks to significantly

increase the number of sales ladies working with JITA by developing

a social business model based on work already completed by CARE

Bangladesh. Its main objectives are to create job opportunities for

several thousand women living in fragile economic conditions, enable

the establishment of distribution points in rural areas and make

basic products and services available to numerous Bangladeshis.

JITA therefore seeks to promote a sustainable rural sales model

and develop a rural company network thanks to greater access to

the market and services.

Danone Ecosystem Fund (

Fonds Danone pour l'Écosystème

)

At the April 23, 2009 Shareholders' Meeting, shareholders approved

the proposed creation of the Danone Ecosystem Fund, with 98.36%

of shareholders casting ballots in favor.

Description

The fund is governed by the provisions of the French Law of August 4,

2008 and is run by a board of directors. A steering committee, com-

posed of representatives of Danone and non-Company members,

establishes the fund's major strategic guidelines, especially with

regard to priorities and resource allocation principles, as presented

by the fund's board of directors. An investment committee is re-

sponsible for making investment policy proposals to the board of

directors and ensuring follow-up action on them.

The purpose of the Danone Ecosystem Fund is to strengthen and

develop activities of public interest within the Danone ecosystem.

Together with non-profit organizations, the fund supports economic

initiatives of certain Danone stakeholders (farmers, suppliers, local

authorities, economic players located close to plants, small distrib-

utors, etc.) in order to strengthen Danone's ecosystem, promote job

creation and develop micro-entrepreneurship.