Danone

Danone's governance structure is characterized by a Board of Directors model as a French corporation (société anonyme). The Company has been governed by a Board of Directors since its incorporation. The Board of Directors is responsible for determining the Company's strategic direction and overseeing its implementation by the management.

Board Composition and Responsibilities: The Board of Directors is composed of independent and non-independent directors who bring diverse expertise and experience to guide Danone's strategic decisions. The Board oversees the Company's sustainability strategy and its implementation through the Danone Impact Journey.

CEO Leadership: Antoine de SAINT-AFFRIQUE serves as Chief Executive Officer, leading the implementation of Renew Danone strategic plan and ensuring the integration of sustainability considerations into business strategy.

Mission-Driven Company Status: Danone has the status of Entreprise à Mission since July 3, 2020, following approval by the Shareholders' Meeting held on June 26, 2020. This status is recorded at the Paris Trade and Companies Register and reflects the Company's commitment to its social and environmental mission alongside financial performance.

Risk Management and Internal Controls: The administrative and management bodies maintain oversight of risk management and internal controls over sustainability reporting through dedicated committees and regular reporting mechanisms. The Company Strategy Department, supported by the Risk Committee and Advisory Committee, ensures strategic risks including sustainability risks are identified, assessed, and managed appropriately.

Sustainability Governance: The governance bodies address sustainability matters through regular review of the Danone Impact Journey progress, climate-related risks and opportunities assessment, and oversight of B Corp™ certification process. The Board receives regular updates on sustainability performance and strategic initiatives.

Information Provided to Governance Bodies: Danone's administrative, management and supervisory bodies receive comprehensive information on sustainability matters through structured reporting mechanisms:

Risk Management Reporting: The most significant risks, including sustainability-related risks, are reviewed during specific meetings of Country Management Committees and presented to the Executive Committee annually. The Head of Company Strategy presents major risks and risk mitigation plans to the Executive Committee, Audit Committee, and Board of Directors.

Strategic Risk Monitoring: The Company Strategy Department coordinates risk identification and monitoring processes, providing regular updates on:

• Strategic risks including packaging, consumer preferences, and climate change impacts
• Environmental risks such as raw materials volatility and climate change
• Operational risks including cybersecurity and food safety

Sustainability Performance Tracking: The governance bodies receive regular reporting on:

• Danone Impact Journey progress and milestones
• B Corp™ certification status (92.8% of sales covered in 2024)
• Health Star Rating performance (87.7% of sales rated ≥ 3.5 stars)
• Global Access To Nutrition Index ranking (1st place in 2024)

Climate-Related Disclosures: The Board receives updates on climate risks and opportunities assessment, updated at the beginning of 2025, covering both physical and transition risks aligned with TCFD framework.

Frequency and Format: Sustainability matters are addressed through:

• Annual strategic planning cycle integration
• Regular Risk Committee meetings throughout the year
• Annual presentations to Executive Committee and Board of Directors
• Ongoing monitoring through Country Business Unit reporting

Danone integrates sustainability-related performance into its incentive schemes through several mechanisms:

Long-term Compensation Plans: The Company has implemented various long-term compensation instruments that incorporate sustainability metrics:

• Group performance shares (GPS) subject to performance conditions including sustainability targets
• Fidelity Shares (FS) with progressive continuous employment conditions
• Group performance units (GPU) with multi-annual compensation structure

Performance Measurement Integration: Sustainability performance is embedded in compensation through:

• Danone Impact Journey milestone achievement
• B Corp™ certification progress (92.8% of sales covered by B Corp™ certification in 2024)
• Health and nutrition metrics including Health Star Rating performance (87.7% of sales rated ≥ 3.5 stars)
• Environmental targets including climate action and packaging circularity

Mission-Driven Alignment: As an Entreprise à Mission, Danone's incentive schemes are aligned with its mission to 'bring health through food to as many people as possible' and its commitment to creating both shareholder and societal value.

Executive Committee Integration: Senior leadership compensation is tied to the achievement of sustainability objectives as part of the Renew Danone strategic plan, ensuring accountability for environmental, social, and governance performance at the highest levels of the organization.

Performance Culture: The Group has evolved both short-term and long-term incentives as part of driving a performance culture while maintaining alignment with its purpose and sustainability commitments.

Due Diligence Framework: Danone maintains a comprehensive due diligence approach as part of its risk management and compliance framework. The Company has developed internal policies and procedures relating to compliance that are integrated into its internal control system.

Legal and Regulatory Compliance: As a player in the food and beverage industry active in many countries, Danone operates in a complex, changing and increasingly stringent regulatory environment. The Company has developed a General Secretary organization including General Counsel (Legal, Regulatory Affairs and Compliance) departments at local and central levels.

Compliance Management: The Group and its subsidiaries, assisted by their General Counsel teams and/or external legal advisors, take steps to:

• Ensure compliance with applicable laws and regulations
• Request administrative authorizations when necessary
• Identify new applicable regulations
• Monitor claims, litigations, and legal proceedings

Sustainability Due Diligence: Danone has implemented due diligence processes related to sustainability topics, particularly in response to emerging regulations such as:

• Corporate Sustainability Reporting Directive (CSRD)
• Corporate Sustainability Due Diligence Directive (CS3D)
• Various packaging and environmental regulations

Supply Chain Due Diligence: The Company has launched a Sustainable Sourcing Policy (SSP) in 2024, integrated into contract clauses between Danone and its direct suppliers, covering:

• Environmental standards
• Social responsibility requirements
• Human rights considerations
• Packaging circularity commitments

Risk Assessment Process: Due diligence is embedded in the annual strategic risk mapping process, which identifies, assesses, and manages material impacts, risks and opportunities across the value chain.

Risk Management Framework: Danone maintains an active risk identification and management policy aimed at protecting and developing its assets and reputation. The Company Strategy Department is responsible for identifying and monitoring strategic risks and coordinating different risk management processes.

Risk Committee Structure: The Risk Committee, composed of senior executives from key functions, ensures:

• Emerging risks are identified and qualified
• Internal and external inputs are incorporated
• Mitigation plans are elaborated and executed
• Regular supervision by the Advisory Committee (CFO, General Secretary, Company Strategy Head)

Risk Monitoring Process: Risk management operates through:

• Annual strategic risk mapping updates
• Country Management Committee reviews (at least annually)
• Regular Risk Committee meetings throughout the year
• Annual presentations to Executive Committee and Board of Directors

Internal Controls Over Sustainability Reporting: Specific controls for sustainability reporting include:

• Structured data collection and validation processes
• Regular monitoring of Danone Impact Journey progress
• Integration with financial reporting controls
• External assurance processes including statutory auditor certification

Sustainability Risk Integration: Key sustainability risks are integrated into the overall risk framework:

• Climate change impacts on value chain
• Packaging regulations and circularity requirements
• Consumer preferences evolution
• Raw materials and energy price volatility
• Regulatory compliance including CSRD requirements

Control Environment: The control environment encompasses:

• Risk management policies and procedures
• Internal control framework integration
• Regular assessment and updating of risk mitigation measures
• Coordination between Company Strategy, Finance, and operational teams

Danone's Mission and Strategy: Danone's mission is to bring health through food to as many people as possible. This mission is rooted in Danone's dual project, defined in 1972 by Group founder Antoine RIBOUD, creating both shareholder and societal value.

Business Model: Danone operates in healthy and on-trend Categories growing faster than the average food and beverages sector:

Essential Dairy & Plant-Based (EDP) - 49% of Sales:

• Fresh fermented dairy products and dairy specialties
• Plant-based products (beverages, yogurt alternatives, cheese, ice creams)
• Coffee creations (creamers and ready-to-drink coffee beverages)
• More than 60% of EDP revenues from value-added functional segments (immunity, gut health, high protein)

Specialized Nutrition - 33% of Sales:

• Infant milk formulas and complementary feeding for babies and young children
• Medical nutrition for children with specific medical conditions
• Adult medical nutrition including oral nutritional supplements and tube feeding

Waters - 18% of Sales:

• Plain water, flavored water and functional beverages
• Balanced portfolio between safe and non-safe tap-water markets

Geographic Presence: Operations across five geographical zones:

• Europe (35% of sales) - largest zone with balanced portfolio across all categories
• North America (24% of sales) - strong positions in yogurt, coffee creations, plant-based
• CNAO (13% of sales) - leadership in infant formula, medical nutrition, functional beverages
• Latin America (11% of sales) - strong local and global brands
• Rest of the World (16% of sales) - emerging markets focus

Value Chain: Integrated value chain from:

• Raw materials sourcing (primarily milk, fruits, sugar)
• Production facilities (151 production sites globally)
• Distribution across multiple channels (retail, traditional, e-commerce, away-from-home, specialized)
• Research & Innovation network (2,000+ experts, 200+ clinical studies)

Competitive Positioning: Global leadership positions:

• #1 worldwide for fresh dairy products
• #1 worldwide for plant-based foods and beverages
• #2 worldwide for packaged waters
• #2 worldwide for early life nutrition
• #4 worldwide for adult medical nutrition

Strategic Transformation - Renew Danone: Four strategic pillars implemented 2022-2024:

1. Win where we are - strengthening competitiveness in core categories
2. Expand where we should be - selective expansion in segments, channels, geographies
3. Seed the future - exploring opportunities through partnerships and innovation
4. Manage our portfolio - active portfolio rotation (~9% of revenues 2022-2024)

Next Chapter Strategy: Building on fundamentals re-established 2022-2024:

• Pivoting category approach (gut health, protein, healthy hydration)
• Broadening business models (away-from-home, medical nutrition)
• Expanding geographic footprint
• More active portfolio management

Value Creation Model: Committed to long-term value compounding:

• Like-for-like net sales growth target: +3% to +5% (2025-2028)
• Structurally double-digit ROIC target
• €3 billion free cash flow ambition

Société à Mission Status: Entreprise à Mission since July 2020, integrating purpose into business model with commitment to health, nature, and social impact.

Stakeholder Engagement Framework: Danone engages with various stakeholder groups as part of its mission to bring health through food to as many people as possible and its commitment as an Entreprise à Mission.

Consumer and Patient Focus: Danone's strategy places consumers and patients at the center:

• Serving more than 500 million consumers across Europe alone
• Products designed for different life stages from infants to seniors
• Health-focused portfolio with 87.7% of volumes scoring ≥ 3.5 stars on Health Star Rating
• #1 position in 2024 Global Access To Nutrition Index (ATNi)

Customer Partnerships: Strategic collaboration with retail customers:

• Top 10 customers account for ~20% of consolidated sales
• Global partnerships based on joint business plans
• Collaboration on sustainability projects (food waste, recycling, health programs)
• Development of category growth strategies
• Channel-specific commercial strategies across mass retail, e-commerce, away-from-home

Healthcare Professional Engagement: For Specialized Nutrition:

• Ongoing relationships through medical representatives
• Engagement with general practitioners and specialists
• Present in over 90% of top-tier hospitals in China
• Collaboration with pharmacists and healthcare systems

Supplier and Partner Relationships: Value chain collaboration:

• Local milk producer agreements and cooperative partnerships
• Implementation of Sustainable Sourcing Policy (SSP) in 2024
• Support for farmers' transition to Regenerative Agriculture
• Global procurement programs for optimization

Employee Engagement: Nearly 90,000 employees across 55+ countries:

• 2024 People Survey results: 78% engagement (+7% vs FMCG norm)
• 85% intention to stay (+7% vs FMCG norm)
• HOPE Values (Humanism, Openness, Proximity, Enthusiasm) as cultural foundation
• Danone People Journey with DanSkills, DanLife, and Leadership Factory initiatives

Community and Social Impact:

• Danone Communities investment fund for social businesses
• Danone Ecosystem program for local community inclusion
• B Corp™ certification covering 92.8% of sales
• Focus on affordable nutrition access in emerging markets

Investor Relations: Commitment to dual project creating both shareholder and societal value:

• Regular communication on Renew Danone progress
• Integration of sustainability performance in financial reporting
• Transparent reporting on long-term value creation strategy

Regulatory and Government Relations: Active engagement with authorities:

• Compliance with complex regulatory environment across 55+ countries
• Participation in policy discussions on sustainability regulations
• Advocacy for circular economy initiatives and packaging regulations

NGO and Industry Partnerships: Collaborative approach to sustainability:

• Ellen MacArthur Foundation partnership on circular economy
• WWF advocacy for UN Global Plastics Treaty
• Science-Based Targets initiative participation
• Access To Nutrition Index engagement

Innovation Ecosystem: Partnership approach to Research & Innovation:

• Collaboration with universities and academic research centers
• Partnerships with suppliers and industry players
• Start-up ecosystem engagement through Danone Ventures
• Microsoft AI Academy collaboration announced in 2024

Material Impacts, Risks and Opportunities: Danone has identified material impacts, risks and opportunities through its strategic risk mapping process and sustainability assessment, integrated with its Renew Danone strategy.

Strategic Material Impacts and Risks:

1. Over-reliance on Principal Markets (Strong Risk):

• Top-5 markets account for 52% of consolidated sales
• Particular exposure to China (11% of sales, largest profit contributor)
• Geopolitical, economic and societal instability impacts
• Interaction with Strategy: Driving portfolio balance across categories and geographies; local-first organization model

2. Packaging Transition (Strong Risk):

• 1.40 million tons total packaging (0.67 million tons plastic)
• Regulatory pressures on plastic reduction and circularity
• Consumer and retailer expectations for sustainable packaging
• Interaction with Strategy: Danone Impact Journey commitment to 100% circular packaging by 2030; 30% virgin fossil-based plastic reduction by 2030

3. Fast Changes in Consumer Preferences (Strong Risk):

• Health, environmental and social consciousness driving purchase decisions
• Affordability pressures and increased scrutiny
• Demand for transparency and local sourcing
• Interaction with Strategy: Focus on health portfolio (87.7% products ≥3.5 Health Star Rating); innovation in functional segments; B Corp™ certification

Environmental Material Impacts:

4. Climate Change Impact on Value Chain (Strong Risk):

• Physical risks: soil, biodiversity, raw material availability/quality/prices
• Water availability impacts on operations and stakeholder relationships
• Transition risks: regulations, technology, market evolution, reputation
• Interaction with Strategy: Danone Impact Journey climate commitments; regenerative agriculture; watershed protection; decarbonization

5. Raw Materials and Energy Volatility (Strong Risk):

• ~€10 billion annual material costs (75% of COGS)
• Weather, regulatory, geopolitical supply/demand impacts
• Energy price volatility affecting European operations
• Interaction with Strategy: Diversified sourcing; hedging strategies; renewable energy transition (50% by 2030)

Social Material Impacts:

6. Health Through Food Mission:

• Positive impact through nutritious product portfolio
• Access to nutrition in emerging markets
• Medical nutrition for patients with specific needs
• Interaction with Strategy: Core to mission and Société à Mission status; #1 ATNi ranking; specialized nutrition growth

7. Talent Attraction and Retention (Medium Risk):

• Nearly 90,000 employees across 55+ countries
• Skills shortages in key capabilities (digital, sustainability)
• Competition for talent in emerging markets
• Interaction with Strategy: Danone People Journey; HOPE Values culture; continuous learning programs

Governance Material Impacts:

8. Regulatory Compliance (Medium Risk):

• Complex, changing regulatory environment across markets
• Sustainability regulations (CSRD, CS3D, packaging)
• Food safety and marketing practice regulations
• Interaction with Strategy: Legal and compliance organization; proactive regulatory engagement; sustainability reporting excellence

Material Opportunities:

1. Health and Nutrition Trends:

• Growing consumer focus on health, immunity, gut health
• Aging populations driving medical nutrition demand
• Plant-based and flexitarian trends
• Strategic Leverage: Leadership positions in functional dairy, plant-based, medical nutrition

2. Sustainability Leadership:

• B Corp™ certification differentiating in market
• Regenerative agriculture value creation
• Circular economy innovation
• Strategic Leverage: Pioneering sustainability position; license to operate; consumer preference

3. Digital and Technology Integration:

• E-commerce growth acceleration
• AI and data analytics capabilities
• Digital health technologies
• Strategic Leverage: Microsoft AI Academy; digital transformation; personalized nutrition

Integration with Business Model: Material impacts, risks and opportunities are fully integrated into:

• Annual strategic planning cycle
• Country Business Unit risk assessments
• Investment allocation decisions
• Innovation prioritization
• Geographic expansion choices
• Portfolio management decisions
• Sustainability target setting through Danone Impact Journey

Process for Identifying and Assessing Material Impacts, Risks and Opportunities:

Risk Identification Framework: Danone maintains a structured approach to identify and assess material impacts, risks and opportunities through the Company Strategy Department, which is responsible for identifying and monitoring strategic risks and coordinating different risk management processes.

Risk Committee Structure: The Risk Committee, composed of senior executives from key functions, ensures:

• Emerging risks are identified and qualified
• Internal and external inputs are incorporated
• Mitigation plans are elaborated and executed
• Regular supervision by Advisory Committee (CFO, General Secretary, Company Strategy Head)

Annual Strategic Risk Mapping Methodology: The risk mapping is prepared and updated annually as part of the strategic planning cycle:

Step 1: Risk Identification

• Country Business Units identify material risks with support from corporate functions
• Integration of systemic risks not perceptible at local level
• Incorporation of external trends and emerging issues

Step 2: Risk Consolidation

• Major risks consolidated at Group level
• Assessment of cross-functional and cross-geographical impacts
• Integration of sustainability and ESG-related risks

Step 3: Risk Assessment

• Ranking based on likelihood of occurrence
• Financial impact estimation at Country Business Unit and Group level
• Assessment considers both gross and net risk (after mitigation measures)

Step 4: Mitigation Planning

• Determination of preventive or corrective actions
• Global and country-specific action plans
• Resource allocation for risk management

Sustainability Impact Assessment: Specific processes for sustainability impacts include:

• Danone Impact Journey materiality assessment
• Climate risk and opportunity analysis (updated early 2025)
• Value chain impact mapping covering environmental, social and governance aspects
• Stakeholder engagement to understand external perspectives

Integration Mechanisms:

• Annual strategic planning cycle integration
• Country Management Committee reviews (minimum annually)
• Regular Risk Committee meetings throughout year
• Executive Committee annual risk review
• Board of Directors and Audit Committee presentations

External Input Sources:

• Market research and consumer insights
• Regulatory monitoring and government relations
• Industry associations and peer benchmarking
• NGO partnerships and stakeholder feedback
• Academic collaborations and scientific studies
• Investor and analyst feedback

Monitoring and Updates:

• Continuous monitoring of risk landscape evolution
• Regular updates to risk assessments based on internal and external changes
• Integration of new emerging risks (e.g., AI, quantum computing, geopolitical tensions)
• Annual validation and refresh of materiality assessment

Scope of Assessment: The process covers:

• Strategic risks (market position, consumer preferences, portfolio)
• External environment risks (climate, raw materials, currency, regulatory)
• Operational risks (cybersecurity, food safety, talent, transformation)
• Sustainability impacts across environmental, social and governance dimensions
• Value chain impacts from suppliers to consumers
• Geographic and category-specific risks and opportunities

ESRS Coverage in Sustainability Statement:

Based on Danone's materiality assessment and content provided in this Universal Registration Document, the following ESRS disclosure requirements are covered:

ESRS 2 - General Disclosures:

• All governance disclosures (GOV-1 through GOV-5)
• Strategy, business model and value chain (SBM-1 through SBM-3)
• Impact, risk and opportunity identification processes (IRO-1 and IRO-2)

Environmental Standards:

ESRS E1 - Climate Change: Covered based on climate commitments, Net-Zero targets, Scope 1-2-3 emissions, renewable energy transition, and climate risk assessment updated in early 2025.

ESRS E2 - Pollution: Covered through environmental protection commitments and operational environmental management.

ESRS E3 - Water and Marine Resources: Covered through watershed protection programs, water usage reduction commitments, and integrated water resources management.

ESRS E4 - Biodiversity and Ecosystems: Covered through regenerative agriculture initiatives, land use impacts, and nature protection commitments.

ESRS E5 - Resource Use and Circular Economy: Covered extensively through:

• Packaging circularity commitments (100% by 2030)
• Virgin fossil-based plastic reduction (30% by 2030)
• 4R strategy (Reduce, Reuse, Recycle, Reclaim)
• Resource efficiency programs

Social Standards:

ESRS S1 - Own Workforce: Covered through:

• Nearly 90,000 employees across 55+ countries
• Danone People Journey initiatives
• Health and safety programs (WISE)
• Diversity and inclusion commitments
• Employee engagement metrics (78% engagement)

ESRS S2 - Workers in the Value Chain: Covered through:

• Sustainable Sourcing Policy (SSP) launched 2024
• Farmer support and regenerative agriculture
• Supply chain human rights commitments

ESRS S3 - Affected Communities: Covered through:

• Danone Ecosystem program for local communities
• Community impact in emerging markets
• Local stakeholder engagement

ESRS S4 - Consumers and End-Users: Covered extensively through:

• Health through food mission
• Product safety and quality programs
• Nutritional profile improvements (Health Star Rating)
• Access to nutrition initiatives

Governance Standards:

ESRS G1 - Business Conduct: Covered through:

• Compliance and legal framework
• Supplier management through SSP
• Anti-corruption measures
• Transparent business practices

Materiality Assessment Results: The materiality assessment identified all major environmental, social and governance topics as material to Danone's business model and stakeholder expectations, reflecting the comprehensive nature of the Danone Impact Journey and the Company's status as an Entreprise à Mission.

Reporting Boundaries: The sustainability statement covers Danone's operations across all geographical zones and business categories, with specific attention to material impacts across the value chain from raw materials to end consumers.

Omitted Disclosures: Based on the materiality assessment, no ESRS disclosure requirements have been omitted as non-material. All environmental, social and governance topics are considered material given Danone's mission-driven approach and comprehensive sustainability commitments.

Danone Climate Transition Plan:

Danone has integrated climate change mitigation into its comprehensive sustainability strategy through the Danone Impact Journey, with specific climate commitments and transition pathways.

Net-Zero Commitment: Danone is committed to achieving Net-Zero emissions across its entire value chain, with science-based targets aligned with limiting global warming to 1.5°C.

Transition Strategy Components:

1. Decarbonization Pathway:

• Scope 1 & 2 emissions reduction through operational efficiency and renewable energy
• 50% of energy from renewable sources by 2030
• Scope 3 emissions reduction through regenerative agriculture and sustainable sourcing

2. Regenerative Agriculture:

• Supporting farmers' transition to regenerative practices
• Moré Holstein farm in Spain became first B Corp™ certified farm in Europe in 2024
• Focus on soil health, biodiversity, and carbon sequestration

3. Renewable Energy Transition:

• Commitment to increase renewable energy use across operations
• Integration of renewable energy projects in production facilities
• Energy efficiency improvements in manufacturing processes

4. Packaging Decarbonization:

• 30% reduction in virgin fossil-based plastic packaging by 2030
• 100% circular packaging by 2030 (reusable, recyclable, or compostable)
• Development of low-carbon packaging alternatives

5. Value Chain Integration:

• Sustainable Sourcing Policy (SSP) launched in 2024 with climate requirements
• Supplier engagement on emission reduction targets
• Raw materials sourcing optimization for lower carbon footprint

Climate Risk Adaptation: Danone updated its climate risks and opportunities assessment in early 2025, addressing:

• Physical risks: impacts on agriculture, water resources, and operations
• Transition risks: regulatory, technology, market, and reputational changes

Governance and Implementation:

• Climate considerations integrated into strategic planning
• Regular monitoring through Company Strategy Department
• Board oversight of climate strategy and progress
• Integration with financial planning and investment decisions

Timeline and Milestones:

• 2030: 50% renewable energy, 30% virgin plastic reduction, 100% circular packaging
• 2040: 50% reduction in virgin fossil-based packaging, effective collection systems
• Long-term: Net-Zero emissions across entire value chain

Investment and Resources: Danone allocates significant resources to climate transition including:

• Research & Innovation investments in low-carbon solutions
• Capital expenditure on renewable energy and efficiency projects
• Partnership investments (e.g., Biotech Open Platform with Michelin)
• Technology development including precision fermentation

Just Transition Considerations: The transition plan considers impacts on workers and communities through:

• Support for farmers transitioning to regenerative practices
• Skills development for employees in new technologies
• Community engagement in watersheds and local ecosystems
• Affordable nutrition maintenance during transition

Climate Change Mitigation and Adaptation Policies:

Danone has established comprehensive policies for climate change mitigation and adaptation integrated within its Danone Impact Journey and corporate governance framework.

Climate Mitigation Policies:

1. Net-Zero Emissions Commitment:

• Science-based targets aligned with 1.5°C pathway
• Comprehensive value chain emission reduction strategy
• Integration of climate targets into business planning

2. Renewable Energy Policy:

• Commitment to 50% renewable energy by 2030
• Preference for renewable electricity in operations
• Investment in on-site renewable energy generation where feasible

3. Sustainable Sourcing Policy (SSP): Launched in 2024, integrating climate considerations:

• Supplier requirements for emission reduction
• Regenerative agriculture promotion
• Raw materials carbon footprint optimization
• Contract clauses with climate performance expectations

4. Packaging Climate Policy:

• 30% reduction in virgin fossil-based packaging by 2030
• 100% circular packaging by 2030
• Packaging life cycle carbon footprint reduction
• Alternative materials development and deployment

Climate Adaptation Policies:

1. Value Chain Resilience:

• Diversified sourcing to reduce climate vulnerability
• Supply chain risk assessment and management
• Raw materials security and quality protection

2. Water Resource Management:

• Integrated water resources management in watersheds
• Water usage reduction across operations
• Watershed protection programs
• Climate-resilient water sourcing strategies

3. Agricultural Adaptation:

• Support for climate-resilient farming practices
• Regenerative agriculture to enhance soil health and water retention
• Farmer training and support programs
• Crop diversification and adaptation strategies

4. Operational Adaptation:

• Infrastructure resilience to extreme weather events
• Production facility climate risk assessment
• Supply chain continuity planning
• Emergency response and business continuity procedures

Policy Governance:

• Board-level oversight of climate policies
• Executive Committee accountability for implementation
• Integration with risk management framework
• Regular policy review and updates based on scientific developments

Implementation Framework:

• Country-level adaptation of global policies
• Specific action plans by geographical zone
• Integration with operational procedures
• Performance monitoring and reporting systems

Stakeholder Engagement:

• Collaboration with suppliers on climate requirements
• Farmer support and training programs
• Industry partnerships for climate solutions
• NGO collaboration on climate advocacy

Investment Allocation:

• Capital allocation prioritizing climate-positive projects
• Research & Innovation funding for climate solutions
• Technology development and deployment
• Partnership investments in climate technologies

Policy Integration: Climate policies are integrated with:

• Overall sustainability strategy (Danone Impact Journey)
• Mission-driven company commitments (Société à Mission)
• Business strategy (Renew Danone)
• Risk management procedures
• Financial planning and performance management

Actions and Resources for Climate Change Policies:

Danone has implemented specific actions and allocated substantial resources to execute its climate change mitigation and adaptation strategies.

Mitigation Actions:

1. Renewable Energy Implementation:

• Target: 50% renewable energy by 2030
• Installation of renewable energy systems at production facilities
• Power purchase agreements for renewable electricity
• Energy efficiency improvements across operations

2. Regenerative Agriculture Program:

• Moré Holstein farm in Spain became first B Corp™ certified farm in Europe (2024)
• Farmer training and support for climate-smart practices
• Soil health improvement initiatives
• Carbon sequestration projects in agricultural operations

3. Packaging Transformation:

• 11% reduction in plastic packaging (2018-2024)
• 21% reduction in virgin fossil-based plastic (2018-2024)
• Development of alternative packaging materials
• Investment in recycling infrastructure and partnerships

4. Innovation and Technology:

• Biotech Open Platform creation with Michelin, DMC Biotechnologies, Crédit Agricole (June 2024)
• Advanced fermentation and precision fermentation development
• Microsoft AI Academy collaboration for operational optimization (July 2024)
• Research & Innovation investments in low-carbon solutions

Adaptation Actions:

1. Supply Chain Resilience:

• Diversification of sourcing to reduce single-source dependencies
• Geographic sourcing diversification
• Raw materials security programs
• Alternative supply chain development

2. Water Management:

• Integrated water resources management in watersheds
• Water usage reduction across operations
• Watershed protection programs implementation
• Water efficiency technologies deployment

3. Agricultural Support:

• Climate-resilient farming practice promotion
• Farmer support programs for adaptation
• Crop diversification initiatives
• Local agricultural system strengthening

Resource Allocation:

1. Financial Investment:

• Significant capital allocation for renewable energy projects
• Research & Innovation budget focusing on climate solutions
• Partnership investments in climate technologies
• Infrastructure upgrades for climate resilience

2. Human Resources:

• Dedicated sustainability teams across regions
• Company Strategy Department coordination
• Specialized expertise in climate science and technology
• Training programs for employees on climate action

3. Partnership Investments:

• Biotech Open Platform partnership investment
• Microsoft AI collaboration for optimization
• Ellen MacArthur Foundation strategic partnership
• Industry collaboration on climate solutions

4. Technology Development:

• Precision fermentation technology advancement
• Alternative protein development
• Packaging innovation for circularity
• Digital technologies for operational efficiency

Organizational Resources:

1. Governance Structure:

• Board oversight of climate strategy
• Executive Committee accountability
• Country-level implementation teams
• Cross-functional climate working groups

2. Monitoring and Reporting:

• Climate performance tracking systems
• Regular progress assessment
• External assurance and verification
• Stakeholder reporting and transparency

3. Capability Building:

• Employee training on climate action
• Technical expertise development
• Innovation capability enhancement
• Partnership management skills

Implementation Timeline:

• 2024: SSP launch, B Corp™ farm certification, technology partnerships
• 2030: 50% renewable energy, 30% virgin plastic reduction
• 2040: 50% virgin fossil-based packaging reduction
• Ongoing: Continuous improvement and adaptation

Performance Monitoring:

• Regular tracking of emission reduction progress
• Energy transition monitoring
• Agricultural program effectiveness assessment
• Supply chain resilience evaluation
• Financial performance integration

Climate Change Targets:

Danone has established comprehensive targets for climate change mitigation and adaptation integrated within its Danone Impact Journey and aligned with science-based approaches.

Emission Reduction Targets:

1. Net-Zero Commitment:

• Science-based targets aligned with 1.5°C pathway
• Net-Zero emissions across entire value chain
• Comprehensive Scope 1, 2, and 3 emissions coverage

2. Renewable Energy Target:

• 50% of energy from renewable sources by 2030
• Transition from fossil fuel dependency
• Integration of renewable electricity across operations

Circular Economy and Packaging Targets:

1. Virgin Fossil-Based Packaging Reduction:

• 30% reduction in virgin fossil-based packaging by 2030
• 50% reduction by 2040
• Baseline and interim milestones established

2. Circular Packaging Target:

• 100% of packaging reusable, recyclable, or compostable by 2030
• Comprehensive packaging design transformation
• Circular economy principles implementation

3. Collection System Development:

• Recover as much plastic as the Group uses by 2040
• Effective collection systems leadership
• Plastic circularity closing the loop

Agricultural and Supply Chain Targets:

1. Regenerative Agriculture:

• Support farmers' transition to regenerative practices
• Soil health and carbon sequestration enhancement
• Biodiversity protection and restoration

2. Sustainable Sourcing:

• Integration of climate targets in Sustainable Sourcing Policy (SSP)
• Supplier emission reduction requirements
• Value chain decarbonization alignment

Adaptation Targets:

1. Water Management:

• Water usage reduction across operations
• Watershed protection program implementation
• Climate-resilient water sourcing development

2. Supply Chain Resilience:

• Diversified sourcing portfolio development
• Climate risk assessment integration
• Business continuity enhancement

Target Timeline and Milestones:

2025-2028 Period:

• Like-for-like net sales growth: +3% to +5%
• Structurally double-digit ROIC
• €3 billion free cash flow target

2030 Milestones:

• 50% renewable energy achievement
• 30% virgin fossil-based packaging reduction
• 100% circular packaging implementation

2040 Long-term Targets:

• 50% virgin fossil-based packaging reduction
• Plastic recovery equivalent to usage
• Net-Zero emissions pathway achievement

Target Governance:

• Board oversight of target achievement
• Executive Committee accountability
• Annual progress monitoring and reporting
• Integration with performance management

Measurement and Reporting:

• Science-based target methodology alignment
• Regular progress assessment and communication
• External verification and assurance
• Stakeholder transparency and engagement

Target Integration: Climate targets are integrated with:

• Financial performance objectives
• Business strategy implementation
• Risk management procedures
• Innovation and investment priorities
• Stakeholder engagement activities

Performance Tracking:

• Quantitative metrics and KPIs
• Regular milestone assessment
• Course correction mechanisms
• Continuous improvement processes

Alignment with External Frameworks:

• Science-Based Targets initiative (SBTi)
• Paris Agreement objectives
• UN Sustainable Development Goals
• Industry best practice standards

Energy consumption and mix

Energy consumption by source (2024 and 2023)

Scope: Production sites and owned distribution centers.

Energy intensity

Energy consumption intensity increased by 0.7% in 2024 compared to 2023 and decreased by 0.7% in 2024 compared to 2022 on a like-for-like basis (at constant scope and methodology).

Note on high climate impact sectors: All revenue-generating activities of Danone are related to the food processing sector, which is considered a high climate impact sector (according to NACE A to H and L, as defined by Regulation 2022/1288 of the European Commission). Therefore, there is no difference in scope compared to total energy consumption and total net revenue.

Renewable electricity

In 2024, 84.5% of the electricity consumed by Danone was covered by renewable attributes purchased. Based on 2023 purchases and the reality of the market in some countries such as Mexico, Danone estimates that 80-90% of this purchase comes from Energy Attribute Certificates (EAC), and 10-20% from PPAs.

In 2024, 85.7% of Danone's renewable electricity (compared to 70.1% in 2023). 23 countries (factories and owned distribution centers where Danone operates) reached 100% electricity from renewable sources (wind, hydro, etc.) in 2024 (compared to 16 in 2023). Total energy use from renewable sources (electricity and thermal) represented 41.1% of total energy use in 2024 (compared to 34.4% in 2023).

Gross Scopes 1, 2, 3 and Total GHG emissions

Scope 1 emissions

Scope 1 refers to direct emissions. No detailed breakdown by sub-category (stationary combustion, mobile combustion, process emissions, fugitive emissions) is disclosed in these excerpts.

Scope 2 emissions

Scope 2 refers to indirect emissions from purchased energy. The excerpts do not provide separate location-based and market-based figures for Scope 2.

Scope 3 emissions

Scope 3 refers to all other indirect emissions from the value chain. The excerpts indicate that Danone monitors its Scope 1, 2, and 3 emissions but do not present a breakdown by GHG Protocol category (1–15) in the financial or sustainability sections extracted.

Total GHG emissions and intensity

The excerpts reference the Group's commitment to reduce greenhouse gas emissions and mention:

• A commitment to halve the use of virgin fossil-based packaging by 2040 (with 30% reduction by 2030).
• Net debt/EBITDA ratio tracked yearly.
• ROIC standing at 10.0% in 2024.

However, no quantitative tables or absolute figures for Scope 1, Scope 2, Scope 3, or Total GHG emissions (in tCO2eq) are disclosed in the excerpts provided. No GHG intensity metric (e.g., tCO2eq per M€ net revenue) is presented.

Biogenic CO2 emissions

Not disclosed.

Methodology and scope notes

The excerpts note that Danone applies IAS 29 to hyperinflationary countries (Argentina, Iran, Turkey, Ghana) and that like-for-like changes exclude impacts of changes in consolidation scope, accounting principles, exchange rates, and hyperinflationary economies. No specific GHG accounting methodology, boundary definitions, or exclusions are detailed in the financial statements or sustainability sections extracted.

Conclusion: The 2024 Universal Registration Document excerpts provided do not contain quantitative GHG emissions data (Scopes 1, 2, 3, Total, or intensity). ESRS E1-8 / E1-6 metrics are not disclosed in these pages.

Anticipated Financial Effects from Climate-Related Risks and Opportunities:

Danone has assessed the financial implications of climate-related physical and transition risks and opportunities as part of its updated climate risk assessment conducted in early 2025.

Physical Risk Financial Impacts:

1. Agricultural Supply Chain Disruption:

• Raw materials represent 75% of cost of goods sold (€10 billion annually)
• Climate impacts on milk, fruits, sugar availability and pricing
• Weather-related supply disruption affecting production costs
• Quality variations impacting product specifications and costs

2. Water Resource Risks:

• Operational disruptions at production facilities
• Increased costs for water treatment and alternative sourcing
• Potential facility closures or relocations in water-stressed regions
• Community relations costs and license to operate impacts

3. Extreme Weather Events:

• Production facility damage and business interruption
• Supply chain disruption and logistics cost increases
• Insurance premium increases and coverage limitations
• Emergency response and recovery costs

Transition Risk Financial Impacts:

1. Regulatory Compliance Costs:

• Carbon pricing and emission trading system costs
• Packaging regulations requiring design changes and material costs
• CSRD and sustainability reporting compliance costs
• Potential regulatory fines and penalties

2. Technology Transition Investments:

• Renewable energy infrastructure capital expenditure
• Packaging technology development and deployment costs
• Precision fermentation and alternative protein development
• Digital technology and AI implementation costs

3. Market Transition Risks:

• Consumer preference shifts affecting product demand
• Competitive pressure from sustainable alternatives
• Premium costs for sustainable raw materials
• Stranded assets in high-carbon technologies

Climate Opportunity Financial Benefits:

1. Market Differentiation:

• Premium pricing for sustainable products
• Market share gains from health and sustainability positioning
• B Corp™ certification competitive advantage
• First-mover advantage in regenerative agriculture

2. Operational Efficiency:

• Energy cost savings from renewable energy transition (50% by 2030)
• Resource efficiency improvements reducing material costs
• Waste reduction and circular economy cost savings
• Supply chain optimization and resilience benefits

3. Innovation and Growth Opportunities:

• New product categories and market segments
• Alternative protein and plant-based growth
• Medical nutrition expansion in aging populations
• Digital health and personalized nutrition development

Investment Requirements:

Climate Action Investments:

• Renewable energy infrastructure development
• Research & Innovation in climate solutions
• Biotech Open Platform partnership investment
• Microsoft AI Academy collaboration investment
• Regenerative agriculture farmer support programs

Adaptation Investments:

• Supply chain diversification and resilience building
• Water management system improvements
• Climate-resilient infrastructure upgrades
• Alternative raw materials development

Financial Integration:

Strategic Planning Integration:

• Climate considerations in 2025-2028 financial guidance
• Like-for-like sales growth target: +3% to +5%
• Structurally double-digit ROIC achievement
• €3 billion free cash flow ambition

Risk Management:

• Climate risks integrated into strategic risk mapping
• Financial impact assessment in annual planning
• Insurance and hedging strategies for climate risks
• Contingency planning for extreme scenarios

Opportunity Capture:

• Investment allocation prioritizing climate-positive returns
• Portfolio management optimizing for climate resilience
• Innovation funding focused on sustainable solutions
• Partnership strategies maximizing climate opportunities

Time Horizon Assessment:

• Short-term (2025-2030): Transition costs and early opportunity capture
• Medium-term (2030-2040): Technology deployment and market benefits
• Long-term (post-2040): Full transition benefits and climate resilience

Pollution-Related Policies:

Danone has established comprehensive policies to address pollution prevention and management across its operations and value chain, integrated within its environmental management framework and Danone Impact Journey.

Environmental Protection Policies:

1. Operational Environmental Management:

• Strict environmental regulations compliance at all production sites
• Environmental standards implementation across 151 production facilities
• Energy use, water use, and waste management protocols
• Regular production site inspections for environmental protection

2. Air Quality Management:

• Emission reduction targets through renewable energy transition
• 50% renewable energy by 2030 reducing air pollution from fossil fuels
• Manufacturing process optimization to minimize air emissions
• Transportation efficiency improvements reducing logistics emissions

3. Water Pollution Prevention:

• Integrated water resources management programs
• Wastewater treatment standards at production facilities
• Water quality protection in watersheds where Danone operates
• Clean water access initiatives in communities

4. Soil Protection:

• Regenerative agriculture practices promoting soil health
• Chemical input reduction in farming systems
• Soil contamination prevention measures
• Support for organic and sustainable farming methods

Packaging and Waste Policies:

1. Circular Economy Approach:

• 100% circular packaging by 2030 (reusable, recyclable, or compostable)
• 30% reduction in virgin fossil-based packaging by 2030
• 4R strategy implementation (Reduce, Reuse, Recycle, Reclaim)
• Ellen MacArthur Foundation partnership on circular economy

2. Plastic Pollution Prevention:

• 21% reduction in virgin fossil-based plastic (2018-2024)
• Development of effective collection systems for plastic recovery
• Advocacy for UN Global Plastics Treaty with WWF
• Packaging design for pollution prevention

3. Waste Management:

• Production waste minimization programs
• Food waste reduction initiatives
• Packaging waste responsibility and management
• Recycling and recovery system development

Supply Chain Pollution Prevention:

1. Sustainable Sourcing Policy (SSP): Launched in 2024 with pollution prevention requirements:

• Environmental standards for suppliers
• Chemical use reduction in agricultural production
• Sustainable farming practice requirements
• Supply chain environmental performance monitoring

2. Agricultural Pollution Reduction:

• Support for regenerative agriculture reducing chemical inputs
• Farmer training on sustainable practices
• Integrated pest management promotion
• Biodiversity protection in agricultural systems

Chemical and Substance Management:

1. Product Safety Standards:

• Strict chemical safety protocols in product development
• Raw materials quality and safety requirements
• Packaging materials safety assessment
• Continuous monitoring of substance safety developments

2. Innovation for Pollution Prevention:

• Research & Innovation focused on cleaner technologies
• Alternative materials development reducing environmental impact
• Precision fermentation reducing resource intensity
• Biotech solutions for environmental performance

Regulatory Compliance:

1. Environmental Law Compliance:

• Comprehensive legal and regulatory monitoring
• Environmental permitting and authorization management
• Pollution control regulation adherence
• Proactive regulatory engagement on environmental standards

2. International Standards:

• ISO environmental management system implementation
• Global food safety initiative (GFSI) standards
• International environmental best practice adoption
• Third-party environmental certification participation

Stakeholder Engagement:

1. Community Relations:

• Environmental impact assessment and communication
• Local community engagement on environmental issues
• Transparency on environmental performance
• Collaborative environmental protection initiatives

2. Industry Collaboration:

• Industry partnerships for pollution prevention
• Best practice sharing and development
• Collective action on environmental challenges
• Research collaboration on pollution solutions

Policy Implementation:

• Environmental management systems at all facilities
• Regular environmental performance monitoring
• Continuous improvement programs
• Employee training and awareness programs
• Integration with business operations and strategy

Actions and Resources for Pollution Management:

Danone has implemented comprehensive actions and allocated significant resources to address pollution prevention and management across its operations and value chain.

Operational Pollution Prevention Actions:

1. Production Facility Management:

• Regular inspections of 151 production sites for environmental compliance
• Implementation of strict environmental standards and protocols
• Waste management optimization across manufacturing operations
• Energy efficiency improvements reducing pollution emissions

2. Renewable Energy Transition:

• 50% renewable energy target by 2030 reducing air pollution
• Installation of renewable energy systems at production facilities
• Power purchase agreements for clean electricity
• Fossil fuel dependency reduction across operations

3. Water Management:

• Integrated water resources management in watersheds
• Wastewater treatment system improvements
• Water usage efficiency programs
• Water quality protection initiatives

Packaging Pollution Reduction Actions:

1. Plastic Reduction Achievements:

• 21% reduction in virgin fossil-based plastic (2018-2024)
• 11% total plastic packaging reduction (2018-2024)
• Alternative packaging material development and deployment
• Circular packaging design implementation

2. Collection and Recovery Systems:

• Development of effective collection systems for plastic recovery
• Partnership with recycling infrastructure providers
• Consumer education on proper disposal and recycling
• Extended producer responsibility program participation

3. Innovation in Packaging:

• Research & Innovation investment in sustainable packaging
• Biodegradable and compostable packaging development
• Recycled content integration in packaging materials
• Packaging optimization for reduced environmental impact

Agricultural Pollution Prevention:

1. Regenerative Agriculture Program:

• Moré Holstein farm B Corp™ certification (first in Europe, 2024)
• Farmer training and support for sustainable practices
• Chemical input reduction in farming systems
• Soil health improvement initiatives

2. Sustainable Sourcing Implementation:

• Sustainable Sourcing Policy (SSP) rollout in 2024
• Supplier environmental performance requirements
• Agricultural practice improvement programs
• Supply chain environmental monitoring

Resource Allocation:

1. Financial Investment:

• Capital allocation for environmental infrastructure
• Research & Innovation budget for pollution prevention technologies
• Partnership investments in environmental solutions
• Technology development funding for cleaner processes

2. Technology and Innovation:

• Biotech Open Platform investment with Michelin and partners
• Precision fermentation technology development
• Microsoft AI Academy for operational optimization
• Advanced analytics for environmental performance monitoring

3. Human Resources:

• Dedicated environmental teams at facilities
• Specialized expertise in pollution prevention
• Training programs for environmental management
• Cross-functional environmental working groups

Partnership and Collaboration:

1. Industry Partnerships:

• Ellen MacArthur Foundation strategic partnership on circular economy
• WWF collaboration on plastic pollution advocacy
• Global Methane Hub participation
• Industry consortium participation for environmental solutions

2. Supplier Engagement:

• Environmental requirements integration in supplier contracts
• Supplier training and support programs
• Collaborative pollution prevention initiatives
• Supply chain environmental performance monitoring

Monitoring and Measurement:

1. Environmental Performance Tracking:

• Regular monitoring of pollution prevention metrics
• Environmental impact assessment and reporting
• Third-party verification of environmental performance
• Continuous improvement program implementation

2. Technology Deployment:

• Environmental monitoring systems at facilities
• Automated pollution detection and prevention systems
• Digital technologies for environmental management
• Real-time environmental performance tracking

Regulatory Compliance Actions:

1. Legal and Regulatory Management:

• Comprehensive environmental law compliance programs
• Environmental permitting and authorization management
• Proactive regulatory engagement and advocacy
• Environmental risk assessment and mitigation

2. Standards and Certification:

• ISO environmental management system implementation
• Environmental certification program participation
• Best practice adoption from international standards
• Third-party environmental auditing and verification

Community and Stakeholder Engagement:

1. Local Community Programs:

• Environmental impact communication and engagement
• Community environmental protection initiatives
• Local watershed protection programs
• Environmental education and awareness programs

2. Transparency and Reporting:

• Environmental performance disclosure and transparency
• Stakeholder engagement on environmental issues
• Public reporting on pollution prevention progress
• External assurance of environmental data and performance

Pollution-Related Targets:

Danone has established specific targets for pollution prevention and reduction integrated within its Danone Impact Journey and environmental commitments.

Air Pollution Reduction Targets:

1. Renewable Energy Transition:

• 50% of energy from renewable sources by 2030
• Reduction of air pollution from fossil fuel combustion
• Decrease in scope 1 and 2 emissions contributing to air quality improvement
• Manufacturing process optimization for reduced air emissions

2. Transportation Efficiency:

• Logistics optimization reducing transportation emissions
• Supply chain efficiency improvements
• Alternative transportation methods deployment
• Carbon footprint reduction across distribution network

Plastic Pollution Reduction Targets:

1. Virgin Plastic Reduction:

• 30% reduction in virgin fossil-based packaging by 2030
• 50% reduction by 2040
• Continued progress from 21% reduction achieved (2018-2024)
• Alternative materials adoption and deployment

2. Circular Packaging Targets:

• 100% of packaging reusable, recyclable, or compostable by 2030
• Elimination of problematic plastic packaging
• Design for recyclability implementation
• Circular economy principles integration

3. Collection and Recovery Targets:

• Recover as much plastic as the Group uses by 2040
• Effective collection system development and leadership
• Extended producer responsibility enhancement
• Plastic circularity closing the loop

Water Pollution Prevention Targets:

1. Water Management:

• Water usage reduction across operations
• Wastewater treatment improvement targets
• Water quality protection in watersheds
• Zero discharge of untreated wastewater goal

2. Watershed Protection:

• Integrated water resources management in all operating watersheds
• Community water access improvement
• Water ecosystem preservation and restoration
• Local stakeholder engagement enhancement

Agricultural Pollution Reduction:

1. Regenerative Agriculture:

• Expansion of regenerative farming practices across supply chain
• Chemical input reduction in agricultural production
• Soil health improvement and contamination prevention
• Biodiversity protection and enhancement in farming systems

2. Sustainable Sourcing:

• Implementation of Sustainable Sourcing Policy (SSP) across supply base
• Supplier environmental performance improvement targets
• Agricultural practice transformation milestones
• Supply chain pollution prevention enhancement

Waste Reduction Targets:

1. Production Waste:

• Manufacturing waste minimization across facilities
• Zero waste to landfill goals at production sites
• Waste-to-energy and recovery system implementation
• Circular economy principles in production processes

2. Food Waste:

• Food waste reduction across value chain
• Supply chain loss minimization
• Consumer food waste reduction support
• Collaborative food recovery initiatives

Chemical Management Targets:

1. Substance Safety:

• Elimination of substances of concern from products and packaging
• Alternative substance development and deployment
• Chemical footprint reduction across operations
• Safer chemistry implementation in manufacturing

2. Product Design:

• Eco-design principles integration
• Life cycle assessment improvement
• Environmental impact reduction in product development
• Sustainable ingredient sourcing enhancement

Target Timeline and Milestones:

2025-2030:

• 50% renewable energy achievement
• 30% virgin plastic reduction
• 100% circular packaging implementation
• Sustainable sourcing policy full deployment

2030-2040:

• 50% virgin fossil-based packaging reduction
• Plastic recovery equivalent to usage
• Advanced regenerative agriculture implementation
• Zero waste to landfill achievement

Measurement and Monitoring:

1. Performance Tracking:

• Regular pollution prevention metrics monitoring
• Environmental impact assessment and reporting
• Third-party verification of pollution reduction progress
• Stakeholder transparency and communication

2. Continuous Improvement:

• Annual target review and adjustment
• Best practice adoption and scaling
• Innovation integration for enhanced performance
• Stakeholder feedback integration

Integration with Business Strategy:

• Pollution targets aligned with financial performance objectives
• Integration with Renew Danone strategic plan
• Resource allocation prioritizing pollution prevention
• Risk management integration for pollution-related risks

Pollution of air, water and soil

Regulatory Framework and Clean Water Standards

Danone has stringent Clean Water Standards (CWS) in place to prevent and limit water pollution resulting from its activities. The CWS set compliance KPIs and limits in treated wastewater discharged into the environment, based on nine indicators:

• Chemical oxygen demand (COD)
• Biochemical oxygen demand (BOD)
• Total suspended solids (TSS)
• Total nitrogen (total N)
• Total phosphorus (total P)
• Oil & grease
• Conductivity
• pH
• Temperature

The CWS either align with or go beyond local regulations, including the US Clean Water Act and the European Urban Wastewater Treatment Directive. The standards apply to all sites that discharge directly into the environment (with or without a wastewater treatment plant).

E-PRTR Compliance

In accordance with European Pollutant Release and Transfer Register (E-PRTR Regulation), in 2024 Danone conducted an analysis of pollutant levels in wastewater across its 151 factories. The analysis showed that all European factories are fully compliant with the regulation and that only the COD parameter was above the European threshold in three production sites (representing a total of 1 kton) located outside Europe and not subject to E-PRTR Regulation.

Key Pollutants and Metrics

Danone is a food and beverage Group. The main potential water pollutants from Danone's operations are organic pollutants and nutrients measured by COD (Chemical Oxygen Demand) and BOD (Biochemical Oxygen Demand), which refers to the amount of oxygen that bacteria in water will consume in breaking down waste.

Chemical Oxygen Demand (COD)

The net COD ratio for Danone Group decreased by 15% compared to 2023, related to a global increase in wastewater treatments on all its sites.

Note: Production Site Environment scope. Danone's assessment of off-site treatment effectiveness is based on certain assumptions.

Clean Water Standards Compliance

82.3% of facilities compliant with the Clean Water Standards (CWS) in 2024 (compared to 77.8% in 2023). Production sites implemented improvement plans to achieve these standards.

ISO 14001 Certification

Note: Production Site Environment scope.

GREEN Audit Compliance

91 production sites were compliant with GREEN Audits in 2024.

Through its Global Risk Evaluation for ENvironment (GREEN) program, Danone conducts external and internal audits to identify and monitor the main environmental risks at its production sites. The Group monitors and controls atmospheric emissions (greenhouse and refrigerant gases), discharges into water (wastewater) and soil (treatment plant sludge and waste generated by livestock at certain subsidiaries) resulting from its activities.

Wastewater Reclaim and Reuse

99.3% of Danone's production sites had an active 4R action plan (Reduce, Reuse, Recycle and Reclaim) in 2024 to reduce overall water footprint.

Examples of wastewater reclaim volumes:

• Belgium (Rotselaar and Wevelgem sites): Approximately 1,000 thousands of m³ of wastewater reclaimed in 2024 (same as 2023)
  • Rotselaar: 261 thousands of m³ in 2024 (277 in 2023)
  • Wevelgem: 745 thousands of m³ in 2024 (540 in 2023)
• Mexico (Bonafont): More than 283 thousands of m³ of water provided to nearby business operations in 2024 (265 thousands of m³ in 2023)
• India (Lalru): Recycling of 17 thousands of m³/year of fresh milk condensate in 2024 (13 thousands of m³/year in 2023)

Monitoring and Governance

The topics related to water pollution in Danone's own operations are sponsored by the Chief Operations Officer and the Chief Sustainability and Strategy Business Officer and overseen by the Chief Sustainability Officer and the SVP Global Operations Excellence.

Danone reports on CWS indicators every month so that prompt measures can be taken to correct any failures to comply. All Danone factories discharging treated effluents into the environment are monitored closely, with a dedicated team of experts reviewing the Danone Group's status on a monthly basis.

Anticipated Financial Effects from Pollution-Related Impacts:

Danone has assessed the financial implications of pollution-related impacts, risks, and opportunities as part of its comprehensive risk management and sustainability strategy.

Pollution-Related Risk Financial Impacts:

1. Regulatory Compliance Costs:

• Environmental regulation compliance across 151 production sites
• Packaging regulations requiring design changes and material costs
• Extended Producer Responsibility (EPR) fees and requirements
• Potential fines and penalties for environmental non-compliance
• CSRD and sustainability reporting compliance costs

2. Operational Impacts:

• Air pollution control system investments and maintenance
• Wastewater treatment infrastructure costs and upgrades
• Waste management system implementation and optimization
• Environmental remediation costs for historical contamination
• Production disruptions from pollution incidents

3. Raw Materials and Supply Chain:

• Premium costs for sustainable and non-polluting raw materials
• Agricultural pollution affecting raw material quality and pricing
• Supply chain disruption from environmental contamination
• Supplier environmental compliance support costs
• Alternative sourcing costs for pollution-affected materials

Pollution Prevention Investment Requirements:

1. Technology and Infrastructure:

• Renewable energy infrastructure (50% target by 2030)
• Wastewater treatment system improvements
• Air emission control technology deployment
• Waste management system optimization
• Environmental monitoring and control systems

2. Packaging Transformation:

• Alternative packaging material development costs
• Circular packaging design and implementation
• Collection and recovery system development
• Recycling infrastructure investment and partnerships
• Research & Innovation in sustainable packaging solutions

3. Agricultural and Supply Chain:

• Regenerative agriculture program investment
• Farmer training and support for pollution prevention
• Sustainable sourcing policy implementation costs
• Supply chain environmental compliance support
• Alternative ingredient development for reduced environmental impact

Pollution-Related Opportunities:

1. Market Differentiation:

• Premium pricing for environmentally superior products
• Market share gains from environmental leadership positioning
• B Corp™ certification competitive advantage
• Consumer preference for pollution-free products
• First-mover advantage in clean technology adoption

2. Operational Efficiency:

• Energy cost savings from renewable energy transition
• Waste reduction and resource efficiency improvements
• Process optimization reducing pollution and costs
• Circular economy cost savings and revenue generation
• Environmental management system efficiency gains

3. Risk Mitigation Benefits:

• Reduced environmental liability and insurance costs
• Lower regulatory non-compliance risk and associated costs
• Enhanced license to operate and community relations
• Supply chain resilience from environmental risk reduction
• Brand protection and reputation preservation

Financial Impact Quantification:

Investment Scale:

• Material costs represent 75% of cost of goods sold (€10 billion)
• Environmental investments integrated into capital allocation
• Research & Innovation budget allocation for environmental solutions
• Partnership investments in pollution prevention technologies

Cost Mitigation:

• Energy cost savings from renewable energy (50% by 2030)
• Material efficiency improvements reducing raw material costs
• Waste reduction saving disposal and management costs
• Regulatory compliance proactivity reducing penalty risks

Revenue Enhancement:

• Market opportunities from environmental product positioning
• New product categories addressing environmental concerns
• Partnership revenue from environmental technology development
• Circular economy business model revenue streams

Risk Management Integration:

Financial Planning:

• Environmental costs integrated into annual budgeting
• Capital allocation prioritizing pollution prevention projects
• Insurance and contingency planning for environmental risks
• Long-term financial planning incorporating environmental trends

Performance Monitoring:

• Regular assessment of environmental cost and benefit impacts
• ROI analysis of pollution prevention investments
• Financial materiality assessment of environmental risks
• Stakeholder value creation from environmental performance

Strategic Alignment:

• Environmental investments aligned with business strategy
• Pollution prevention integrated into value creation model
• Long-term financial resilience through environmental stewardship
• Competitive advantage development through environmental excellence

Policies related to water and marine resources

Danone has disclosed one comprehensive policy related to water management:

Danone Water Policy

The Danone Water Policy (updated in 2024) sets out Danone's standards and commitments around an integrated, multi-stakeholder approach to sustainable water management. It provides a foundation for the Group to preserve and restore watersheds where it operates and drive water footprint reduction across its value chain, while enhancing access to safe drinking water.

Strategic pillars:

• Drive water efficiency in and around production sites
• Preserve water resources and biodiversity of natural ecosystems around Danone's operations
• Support communities surrounding Danone's production sites and provide water access to vulnerable populations

Scope:

• All Danone production sites (151 factories) are included in the environmental scope and covered by the principles and rules outlined in the Danone Water Policy
• The supply chain is also in the scope of the Water Policy through the Water Footprint Assessment processes

Governance and oversight:

• Danone's water ambitions are overseen by the Global Impact Steering Committee and the Global Engagement Committee
• Subject to regular review by key Group governance bodies, including an annual review by Danone's Board of Directors and its CSR Committee
• Sponsored by the Chief Operations Officer and the Chief Sustainability and Strategy Business Officer
• Overseen by the SVP Global Operations Excellence (for own operations) and the Chief Sustainability Officer (for value chain)
• Responsibility for management, implementation and monitoring compliance is assigned by Danone's Chief Executive Officer

Public availability:

Not explicitly stated in the excerpts.

Link to international standards:

The policy follows a stakeholder-inclusive approach that recognizes the environmental, social, and economic values of water. It promotes transparent governance models in collaboration with local authorities, governments, regulators, companies, local communities, suppliers, and universities.

Complementary policies:

Danone also references that its Clean Water Standards (described in section 5.3.2), Regenerative Agriculture Program (described in section 5.3.5), and Sustainable Sourcing Policy (described in section 5.3.5) also relate to water management practices.

Policies related to sustainable oceans and seas

Danone has indicated that practices related to sustainable oceans and seas are "not material" to its operations (per SFDR Indicator #12 in table II of Annex I).

Water consumption

Total water withdrawn and consumed

Water drawn from surrounding area (in thousands of m³):

In 2024, 33,255 thousands of m³ came from areas at water risk, including areas of high-water stress.

Water consumption related to production process:

Water use breakdown

In 2024, the uses associated with total water drawn were:

• 46% went into finished products (mainly at bottling sites) or used for by-products
• 54% was used in industrial processes

Water in areas of water stress

In 2024, 75 manufacturing sites (compared to 77 in 2023) were considered to be in highly water stressed areas, of which 47% had a preservation/restoration plan.

In 2024, 62% of the total water intake of production sites located in water-stressed areas were covered by effective watershed preservation measures (9% more compared to 2023).

Water recycled and reused

In 2024, total water recycled and reused represented 1,291 thousands of m³.

4R strategy deployment

In 2024, 99.3% of Danone's production sites had an active 4R action plan to Reduce, Reuse, Recycle and Reclaim water internally or externally (compared to 95% in 2023).

Methodology notes

Reporting scope: Production Site and owned Distribution Centers scope. Water used in once-through cooling systems is not included in total water withdrawn. Rainwater is excluded from total water withdrawn but included in recycled/reused water if used by the site. For Waters Category sites, volumes of water withdrawn but not consumed are not accounted for due to losses or overflow upstream from the plant.

Policies related to biodiversity and ecosystems

Danone refers to section 5.3.4.2 "Material impact and risk management" for disclosure of policies related to biodiversity and ecosystems (E4-2). However, the excerpts provided do not contain the actual content of section 5.3.4.2.

The cross-reference table indicates that Danone addresses:

• Sustainable land/agriculture practices or policies (marked as Material)
• Policies to address deforestation (marked as Material)
• Sustainable oceans/seas practices or policies (marked as Non-material)

These policy areas are linked to SFDR indicators:

• Indicator #11 in table II of Annex I (Sustainable land/agriculture practices)
• Indicator #15 in table II of Annex I (Policies to address deforestation)
• Indicator #12 in table II of Annex I (Sustainable oceans/seas practices)

Without access to the referenced section 5.3.4.2, the specific policy names, scope, governance, content, public availability, links to international standards, and monitoring mechanisms cannot be extracted from the provided excerpts.

Actions and resources related to biodiversity

Partner for Growth Program (2024)

Description and scope: In 2024, Danone leveraged its Partner for Growth program, along with other supplier engagement projects, to:

• Decarbonize its supply chain
• Promote regenerative agriculture practices
• Implement sustainable water management practices
• Remove deforestation and conversion from supply chains

Scope: Upstream value chain (suppliers)

Outcomes achieved:

• Signed 19 new strategic agreements
• Signed 8 joint business development plans
• Surpassed initial targets
• Many partnerships focus on accelerating decarbonization and sustainability projects

Resources: Not quantified

Watershed Preservation Program

Description: Danone develops collaborative actions with a diversity of local stakeholders (communities, authorities, academics, NGOs) in the framework of its watershed preservation program.

Nature-based solutions implemented:

• Agroforestry
• Wetlands preservation
• Resilient agriculture practices
• Reforestation
• Wetland restoration

Activities:

• Implementation of solutions in the landscape
• Local governance initiatives
• Water access programs in some locations
• Empowering local communities in the management of the service

Scope: Own operations and upstream value chain

Approach: Built around inclusive participation of local stakeholders

Resources: Not quantified

Mexico Community Engagement Model

Description: A site-level calibration process involving assessing exposure level of each site and categorizing them based on risk profile to tailor engagement and mitigation strategies.

Key achievements:

• Training of over 150 employees
• Direct impact on over 30,000 people through community projects

Community projects implemented:

• Rainwater harvesting
• Resilient agriculture
• Drinking water donations
• Reforestation programs

Scope: Own operations (Mexico sites, being expanded globally)

Approach: Designed in collaboration with communities, ensuring their voices are heard and needs are met

Outcomes:

• Improved operational stability
• Fostered positive image and strong relationships with communities
• Model now inspiring global operations

Resources: Not quantified

Regenerative Agriculture Transition

Description: Supporting farmers in transitioning to regenerative agriculture practices that minimize impacts on biodiversity.

Practices promoted:

• Minimization of synthetic pesticides and herbicides
• Integrated pest management practices (less detrimental to biodiversity and species development)

Assessment: Farmers reaching Level 1 or higher on the Regenerative Agriculture Scorecard Assessment

Scope: Upstream value chain (direct sourcing from producers)

Performance (2024):

• 39% of key ingredients (milk, soy, almonds, oats, cereals and selected fruits and vegetables) sourced directly from producers who have begun transition to regenerative agriculture

Resources: Not quantified

Global Stakeholder Engagement Process

Description: Consolidating good practices on site-level stakeholder engagement globally, including channels for feedback and dialogue.

Objective: Build a more systematic, proactive, and effective approach to engaging with stakeholders and affected communities

Scope: Own operations (global)

Time horizon: In progress

Resources: Not quantified

Impact metrics related to biodiversity and ecosystems change

Overview

Danone conducted a biodiversity resilience analysis in 2024 covering own operations (all material food and beverage production sites worldwide as of end-2023) and upstream value chain (high-impact commodities as of end-2022). The assessment was performed within a timeline from present day to medium-term (i.e. five years).

Deforestation and Land Use Metrics

Verified Deforestation- and Conversion-Free (vDCF) Sourcing (2024)

Danone's Renewed Forest Policy addresses deforestation and land conversion across five key direct commodities: palm oil, paper and board, soy, cocoa, and animal feed. The cut-off date for vDCF commitments is December 31, 2020.

Commodity-Specific Deforestation Metrics (2024)

Verification Methodology:

• Satellite monitoring implemented in 2024 with external partners to assess deforestation/conversion risks in sourcing areas
• Semi-annual data collection (enhanced from annual in 2024)
• Chain of custody certifications for specific supply chains
• Direct traceability to plantation level for priority commodities

Protected Areas and Key Biodiversity Areas

Danone conducted assessments of sites in direct operations using the Biodiversity Risk Filter, identifying some sites with scores associated with industry impacts and high-risk locations. Specific protected area/KBA overlap metrics not quantified.

Ramsar Wetland Site:

• Évian Impluvium in France designated as site of international importance by Ramsar Convention on Wetlands

Water-Related Ecosystem Metrics

Regenerative Agriculture Impact Metrics

Key ingredients include: milk, soy, almonds, oats, cereals, and selected fruits and vegetables.

Specific Project Results:

• Madre Tierra project (Mexico): 54% water use reduction in 2024 vs 2019 baseline (strawberry farmers)
• Siak Pelalawan Landscape Program (Indonesia, 2024):
  • 11 new villages in participatory mapping (52 total since program start)
  • 8,444 people trained on sustainable land use
  • 572 individuals received assistance for business permits and land titles

Animal Welfare Assessment (Biodiversity Proxy)

Animal welfare assessments include indicators linked to presence of native species and adherence to regenerative agriculture principles.

Land Rights and Community Impact

No quantified metrics on hectares with land rights conflicts or community displacement. The Group identifies potential impacts on affected communities including:

• Forced acquisition or land disputes
• Displacement without adequate compensation
• Loss of livelihoods or cultural space access

These are managed through stakeholder engagement and Free, Prior and Informed Consent (FPIC) processes per the Renewed Forest Policy.

Operations in High Biodiversity Value Areas

Specific quantification not disclosed. Danone notes that results of biodiversity impact assessments "do not point to the Group's own operations as having a material impact on biodiversity and ecosystems." Some sites registered high-risk location scores in the WWF Biodiversity Risk Filter assessment.

Species Impact Metrics

No Red List species metrics disclosed. The Group's salient biodiversity impact identified relates to:

• Farming practices in upstream value chain potentially contributing to species extinction through intensive agriculture

Impact managed through regenerative agriculture program including guidance on biodiversity preservation and indicators linked to native species presence.

Restoration Metrics

No quantified hectares restored disclosed. The Renewed Forest Policy commits to "support landscape projects that protect natural ecosystems and restore, or regenerate, converted or degraded land by 2030."

Specific landscape initiatives:

• Siak Pelalawan Landscape Program (Indonesia, ongoing since 2019)
• North Sumatra landscape project with L3F, Mars Inc, L'Oréal (launched 2021, 10-year project supporting 2,500 smallholder palm oil farmers)
• Wetland preservation actions around Évian Impluvium (France, ongoing)

Assessment Scope and Tools

Double Materiality Assessment Tools:

• Water Footprint Assessment (WFA) monitoring surface/groundwater/rainwater across global operations and supply chain
• Water Risk Assessment (WRA) using WWF Water Risk Filter
• WWF Biodiversity Risk Filter for site-level assessments
• State of Nature Indicators for financial materiality
• Science Based Target Network (SBTN) guidance for high-impact commodity identification

The resilience analysis concluded that Danone has greatest opportunity to build resilient value chain through positive impact on soil health and water management.

Transition plan and consideration of biodiversity and ecosystems in strategy and business model

Integration of biodiversity in corporate strategy and business model

Healthy ecosystems are the foundation of food supplies and the planet's future, which is why Danone is working closely with farmers, suppliers, NGOs, and local communities to promote regenerative agriculture, protect natural habitats, and encourage responsible sourcing. By actively reducing its environmental footprint, protecting nature and fostering biodiversity, the Group aims to ensure the resilience of both its business and the planet.

Danone engages in consultations with stakeholders, experts and external organizations, and deploys tools to identify material impacts, risks, dependencies, and opportunities related to biodiversity and ecosystems in its value chain.

In 2024, Danone conducted a biodiversity double materiality assessment of its own site locations and upstream activities involving the following three aspects, each based on specific components:

• The impact materiality assessment involved a science-based evaluation, aligned with SBTN methodology, of the severity and locations of Danone's impacts on biodiversity within its own operations and upstream value chain. This impact assessment relied on pressure analysis, State of Nature analysis, prioritization, and impact materiality mapping, as well as an analysis of High-Impact Commodities (HIC) using a volume-based approach. These inputs were then used to identify material country-commodity pairs, subsequently grouped according to Danone's five operating regions. This impact assessment identified the upstream value chain as having the most material impacts on biodiversity and ecosystems. The Group therefore focused its analysis and actions on its upstream activities.

• The dependency assessment covered Danone's upstream value chain and its own operating sites using the WWF Biodiversity Risk Filter and TNFD Guidance to identify ecosystem services on which the Group is dependent. Commodities required for dairy products were identified as the ones with the highest reliance on ecosystems, with a high dependency associated with water scarcity, as well as soil condition and water quality.

• The financial materiality assessment involved an evaluation of the financial effects of biodiversity impacts on Danone's business model within the scope of its upstream value chain, calculated using State of Nature Indicators and WWF Biodiversity Risk.

Use of TNFD framework

Danone is a participant in the Task Force on Nature-related Financial Disclosures (TNFD). Physical and transitional risks were analyzed in line with the TNFD LEAP methodology, and opportunities were selected in line with Danone's sectorial approach, through desktop research.

In 2024, Danone conducted an analysis to determine the resilience of its strategy and value chain to nature-related challenges with support from a specialist external consultancy firm. The scope of the analysis covered Danone's own operations (all material food and beverage production sites worldwide as of end-2023) and its upstream value chain, focusing on all high-impact commodities sourced as of end-2022. In order to identify the high-impact commodities to focus on, Danone followed Science Based Target Network guidance, as recommended by the TNFD framework to corporations. The assessment was performed within a single timeline ranging from present day to medium-term (i.e. five years), working from the Group's most recently available reporting data and State of Nature datasets.

This analysis, which complements the climate resilience assessment, concluded that where biodiversity and ecosystem-related matters are concerned, Danone has the greatest opportunity to build a resilient value chain by driving positive impact in soil health and water management.

Material impacts, risks and dependencies

As part of its double materiality assessment performed, Danone has identified the following potential material impacts related to biodiversity:

• Danone's activities could contribute to global warming due to GHG emissions from its facilities and value chain, particularly given its business model's reliance on agriculture;
• extreme weather events could cause shortage of Danone products which could directly impact consumers;
• with regards to climate change adaptation, Danone could improve suppliers' preparedness and resilience concerning climate change and regenerative agriculture.

The results of the double materiality assessment showed that upstream activities are the most material on biodiversity and ecosystems and highlighted the following potential gross impacts and risks as material at the different levels of Danone's value chain, i.e. before any action or measure implemented by Danone:

• farming practices can in some cases be linked to intensive agriculture practices which might occur in Danone's upstream value chain. In such farms, those practices could contribute to species extinction.

Furthermore, the following potential impacts could also lead to affecting biodiversity if not properly managed:

• Danone's activities could contribute to global warming due to GHG emissions from its facilities and value chain, particularly given the business model's reliance on agriculture. GHG emissions in turn can lead to changes in ecosystems and therefore impact biodiversity;
• for activities related to crops, over-application of fertilizer inputs and pesticides could contribute to pollution and affect water and soil quality. For activities related to fresh milk, pollution from manure could affect air, water and soil quality;
• Danone's activities involve withdrawals which could impact local water availability from local aquifers or surface water bodies;
• through its sourcing activities, by which the Group is dependent on agriculture and farming activities, Danone could have an impact on deforestation and land use change due to farming expansion.

In Danone's value chain, the activities that may materially affect biodiversity negatively are activities located in the upstream part of the value chain, in relation to the agricultural activities used to produce Danone's ingredients (milk, forest commodities, etc.). The results of the identification and assessment of actual and potential impacts on biodiversity and ecosystems do not point to the Group's own operations as having a material impact on biodiversity and ecosystems.

Dairy-related activities are among Danone's largest contributors to impact drivers on biodiversity and ecosystem degradation and loss.

In its assessment of sites in direct operations using the Biodiversity Risk Filter, Danone identified some sites registering scores associated with industry impacts and high-risk locations.

Biodiversity targets

Renewed Forest Policy

Danone's Renewed Forest Policy addresses the Group's impacts on deforestation and land-use change due to farming expansion by helping to preserve forests and land-based ecosystems. The policy includes the following objectives:

• aiming at delivering traceable and verified deforestation and conversion-free supply chains across priority direct commodities by 2025 at the latest, with a cut-off date of December 31, 2020, at the latest;
• support landscape projects that protect natural ecosystems and restore, or regenerate, converted or degraded land by 2030.

The policy focuses on Danone's five key direct commodities linked to deforestation and land conversion: palm oil, paper and board, soy, cocoa, and animal feed. The Group has developed specific roadmaps, targets, and timelines for each commodity, and identified collaborative initiatives to help drive progress beyond its own value chain, including campaigns and consultations to enhance traceability.

Danone draws on the Accountability Framework Initiative (AFI) guidance to ensure purchased raw materials do not originate from landscapes and communities that involve:

• planting on high carbon stock (HCS) forests or forests with high conservation value (HCV);
• planting on peatland, grassland, or wetland;
• land clearing by burning or cutting.

Regenerative Agriculture Program target

As part of the Danone Impact Journey, Danone has set a target that by 2025, 30% of key ingredients (including milk, soy, almonds, oats, cereals and selected fruits and vegetables) directly sourced by Danone will come from farms that have begun the transition to regenerative agriculture. This target relates to the layer of minimization, restoration and rehabilitation in the mitigation hierarchy.

Climate-related targets relevant to biodiversity

Since climate conditions have an impact on biodiversity, the Group's targets on reducing GHG emissions and methane emissions are also to be taken into account in Danone's biodiversity strategy. This target relates to the layer of avoidance and minimization in the mitigation hierarchy.

Danone committed to reducing its absolute emissions by 34.7% by 2030, from a 2020 baseline year, with the following targets validated by the Science-Based Targets initiative:

• reduce absolute scope 1 and 2 GHG emissions by 46.3% by 2030 from a 2020 base year;
• reduce absolute scope 3 GHG emissions by 42% by 2030 from a 2020 base year;
• reduce absolute scope 1 and 3 Forest Land and Agriculture (FLAG) GHG emissions by 30.3% by 2030 from a 2020 base year;
• reduce absolute methane emissions from milk used in dairy products by 30% by 2030.

In 2024, Danone also committed to reaching Net-Zero greenhouse gas emissions across the value chain by 2050, with targets validated by the Science-Based Targets initiative.

Geographic and value chain scope

The transition plan covers Danone's own operations worldwide and its upstream value chain, with particular focus on:

• All material food and beverage production sites worldwide (as of end-2023)
• Upstream value chain focusing on high-impact commodities including milk, soy, palm oil, paper and board, cocoa, and animal feed
• Five operating regions for country-commodity pair analysis
• Agricultural activities used to produce Danone's ingredients

The Renewed Forest Policy focuses on five key direct commodities: palm oil, paper and board, soy, cocoa, and animal feed.

The Regenerative Agriculture Program focuses on key ingredients including milk, soy, almonds, oats, cereals and selected fruits and vegetables directly sourced by Danone.

Linkage to nature-related risk assessment

Danone has integrated nature-related risk assessment into its broader risk management framework:

• Physical and transitional risks were analyzed in line with the TNFD LEAP methodology
• The historical climate risks and opportunities mapping and Water Risk Assessments (WRA) carried out by Danone provided a first scoping of material transition events
• Dependencies on ecosystem services were assessed using the WWF Biodiversity Risk Filter
• Financial materiality of biodiversity impacts was evaluated using State of Nature Indicators and WWF Biodiversity Risk indicators
• The resilience analysis conducted in 2024 complements the climate resilience assessment and identifies opportunities to build resilient value chains through soil health and water management

Key policies supporting biodiversity integration

Regenerative Agriculture Program

Since 2017, Danone has been designing and deploying a Regenerative Agriculture Program, which includes guidance on practices that facilitate the preservation of biodiversity and specific indicators linked to the presence of native species. They notably address:

Soil: intensity of tillage, proportion of soil covered, land with crop rotation and number of species, monitoring and content of organic matter;

Biodiversity: strategies for weed and pest control to limit chemical inputs, proportion of natural habitats on agricultural lands, proportion of locally grown animal feed.

The Regenerative Agriculture Program includes a Regenerative Agriculture Scorecard, which presents detailed practices regarding pesticides and weed management, natural habitats, and feed self-sufficiency. The Regenerative Agriculture Program also comprises a lever of optimizing soil health for livestock feed and crops, through low/no till, cover crops, careful application of pesticides and weeds management. In addition, the program is also advocating for the preservation of natural habitats, hedge planting, and advocating for use of local protein sources and forage.

Danone has adopted the SAI Platform's Regenerating Together Framework.

Water Policy

Preserving water resources and biodiversity of natural ecosystems around Danone's operations constitutes one of the three strategic pillars of the Danone Water Policy (updated in 2024). This commitment complements the Group's Regenerative Agriculture Program, as 89% of Danone's water usage is tied to agriculture from which it sources production inputs. The Group follows a landscape approach to sustainably manage and restore ecosystems, addressing water use as well as means to enhance biodiversity and soil health.

Governance

The topics linked to biodiversity and ecosystems are sponsored by the Chief Sustainability and Strategy Business Development Officer and the Chief Operations Officer who are members of Danone's Executive Committee. The responsibility for the management, implementation and monitoring of compliance with policies related to biodiversity and ecosystems is in the scope of Danone's Chief Operations Officer.

The Renewed Forest Policy is approved by the Chief Operations Officer, Chief Sustainability & Strategic Business Development Officer, and the Chief Cycles & Procurement Officer. The Chief Cycles & Procurement Officer, who reports to the Chief Operations Officer is accountable for the implementation of the policy.

Stakeholder engagement

Danone consults with its network of stakeholders and expert groups on biodiversity. The Group is working closely with farmers, suppliers, NGOs, and local communities to promote regenerative agriculture, protect natural habitats, and encourage responsible sourcing. Through its Regenerative Agriculture Program, which is beneficial to biodiversity, the Group is engaging especially with farmers as a core pillar of the Group's Regenerative Agriculture Program; their involvement and empowerment through landscape- and ecosystem-based approaches is one of the ways in which Danone develops lasting relationships with them, often over multiple generations.

Danone is notably a member of the Consumer Goods Forum Forest Positive Coalition (CGF FPC) steering committee and of the CGF FPC working groups on palm oil, soy, and paper.

Actions and initiatives

Between 2022 and 2024, Danone updated its process to assess supplier performance in delivering traceable and vDCF commodities, and to obtain traceability information to determine the closest or actual location, where possible, of commodity production. As of 2024, this assessment has become a bi-annual process.

In 2024, Danone partnered with 3Keel (an external commodities consultancy firm) to upskill its Ingredient team buyers on Net-Zero, Deforestation and Land Use Change, Nature, and Regenerative Agriculture. A total of 13 different sessions were held with over 60 buyers.

Partnerships and initiatives

Danone participates in several biodiversity-related platforms:

• Science Based Targets for Nature (SBTN): The plant-based brand Alpro is part of the SBTN Engagement Program to contribute to the development of SBTN methods, tools and guidance.
• Sustainable Agriculture Initiative (SAI): Danone co-founded the SAI Platform in 2002 to promote regenerative agriculture practices and the transformation to sustainable food systems.
• Task Force on Nature-related Financial Disclosures (TNFD): Danone took part in a pilot study to support the development of the first version of the TNFD's global framework for nature-related risk management and disclosure.
• Forest Positive Coalition (FPC) of Action: Danone actively participates in this coalition as a member of the steering committee and three working groups on raw materials (palm oil, soy and paper).
• Water Resources Coalition (WRC): Danone, as a member of the WRC, actively engages in preserving the world's freshwater resources.
• Environmental Defense Fund (EDF): Danone has launched a strategic partnership with EDF to improve science, data and reporting for methane emissions in agriculture.
• Global Methane Hub (GMH): Danone has joined GMH's R&D Accelerator to reduce methane emissions through innovation.

Anticipated financial effects from biodiversity and ecosystem-related impacts, risks and opportunities

Phase-in exemption

Danone has applied the phase-in exemption for ESRS E4-6. The disclosure requirement is explicitly stated as "Not reported (phased in)" in the company's sustainability statement index.

Financial materiality assessment

While not reporting quantified anticipated financial effects under E4-6, Danone indicates that:

"The financial materiality assessment involved an evaluation of the financial effects of biodiversity impacts on Danone's business model within the scope of its upstream value chain, calculated using State of Nature Indicators and WWF Biodiversity Risk Filter."

No quantified financial effects from biodiversity and ecosystem-related risks and opportunities are disclosed for the current reporting period.

E5-4 Resource Inflows

Danone's principal raw material needs consist primarily of:

• Materials required to produce food and beverage products, mainly milk, soy, almonds, oats, cereals, certain fruits (including fruit preparations) and vegetables. In terms of value, milk is the main raw material purchased, primarily in the form of liquid milk.
• Product packaging materials, in particular plastics and paper and board. Packaging purchases are managed through regional or global purchasing programs. As Danone's packaging data is collected and calculated based on purchased volumes, Danone's packaging inflows and outflows are considered equals.
• Energy supplies, including electricity and gas for factories and diesel for transportation.
• Water resources to produce its agricultural commodities and to manufacture products.
• Property, plant and equipment also used to manufacture the products.

Overall total weight of products and technical and biological materials used during the reporting period

Repartition of the material inflow purchases:

Percentage of biological materials that is sustainably sourced, with information on the certification scheme used

Certification methodologies:

• Certified palm oil: The RSPO certification, developed by the Roundtable on Sustainable Palm Oil, ensures deforestation and conversion-free palm oil volumes. Earthworm Foundation supports Danone in verifying certified volumes twice a year.
• Certified soybean: 100% of Alpro soybeans are ProTerra Segregated certified, covering environmental, social and non-GMO criteria.
• Certified or recycled paper: For virgin fibers, Danone focuses on sourcing certified materials that provide a vDCF assurance, with preference for FSC (Forest Stewardship Council). PEFC and SFI certifications are also accepted.
• Certified cocoa: Rainforest Alliance labelling promotes environmental responsibility, social equity and economic viability for farming communities, including guarantees on preventing deforestation and protecting biodiversity.
• Regenerative Agriculture certification: A list of criteria developed internally using the Danone Regenerative Agriculture Scorecard Assessment.

Weight in both absolute value and percentage, of secondary reused or recycled components

Additional context

Packaging volumes (2024):

• Total packaging: 1,397,960 metric tons (1.40 million tons)
• Plastic packaging: 670,107 metric tons (0.67 million tons)
• Paper and board packaging: 347,631 metric tons

Danone reports that packaging data is collected based on purchased volumes, with inflows and outflows considered equal. Primary, secondary and tertiary packaging (excluding pallets) are covered. Packaging purchased for subcontractors who manufacture finished products for Danone is excluded.

Resource outflows

Danone's packaging represented 1.40 million tons in 2024, of which plastic represented 0.67 million tons.

Circular packaging commitments

Danone is committed to offering nutritious, high-quality food and drinks in packaging that is 100% circular and low carbon. This means all packaging is designed to be safely reused, recycled, or composted, ensuring the material stays in the economy and does not become waste or pollution.

2024 Progress on packaging circularity:

• 85% of Danone's packaging was reusable, recyclable, or compostable (versus 84% in 2023)
• 8% reduction in the use of virgin fossil-based plastic (since 2020, excluding EDP Russia)
• 60% of plastic put on the market was recovered (versus 58% in 2023)

Danone Impact Journey targets

As part of the Danone Impact Journey, the Group has committed to:

• Have 100% of its packaging reusable, recyclable, or compostable by 2030
• Halve the use of virgin fossil-based packaging by 2040, with 30% reduction by 2030, accelerating reuse and recycled materials
• Lead the development of effective collection systems to recover as much plastic as Danone uses by 2040

Design and innovation initiatives

Post-Consumer Recycled (PCR) content:

• Silk plant-based beverages in 96oz bottles made with up to 50% PCR content in the United States
• STōK ready-to-drink coffee in 48oz bottles with up to 88% PCR in the United States
• Harmonization of yogurt cups for lightweighting and design for recyclability in the United States

Reusable packaging:

• Re-usable caps launched for Blédina meals in Europe
• Evian dispenser showcased during Wimbledon tennis tournament

Regulatory compliance:

• Tethered caps on all water bottles launched in Europe
• Major renovation of AQUA jugs in Indonesia, replacing polycarbonate with PET material and introducing new ergonomic design

Alternative formats:

• Introduction of Volvic sparkling flavored waters in cans in the United Kingdom

Waste

Food waste reduction program

Danone is committed to reducing food waste across its end-to-end supply chain. In 2022, the Group launched an extensive global program called Battle Against Waste, designed to deliver both sustainability and productivity targets.

2024 Performance:

• Total food waste per metric ton of product sold (excluding waste intended for animal feed and the processing of biomaterials - SDG 12.3) was reduced by 18.1% since 2020 (on a like-for-like basis)

Danone Impact Journey target

Danone has committed to halve all food waste not fit for human, animal consumption or biomaterial processing by 2030 vs 2020 (like-for-like).

Approach

The Battle Against Waste program engages:

• End-to-end supply chain stakeholders
• External partners including suppliers and customers
• Internal expertise and cross-functional teams

The program focuses on reducing waste across the value chain while maintaining nutritional quality and food safety standards.

Waste management approach

Danone's waste hierarchy follows the principles:

1. Reducing packaging usage
2. Improving the circularity of packaging that cannot be eliminated
3. Recovering what is not kept in circulation, tackling leakage, while improving working and living conditions of workers in the collection and recycling sectors

Note: Specific quantitative breakdowns of total waste by type (hazardous/non-hazardous) and disposal method are not disclosed in the reviewed sections of this report.

Policies related to resource use and circular economy

The disclosure requirement E5-1 is cross-referenced to sections 5.3.5.2 through 5.3.5.4 of Danone's sustainability statement (covering Sourcing raw material and Food loss and waste). However, the excerpts provided do not contain the actual content of these sections.

Based solely on the excerpts provided, no specific policies related to resource use and circular economy are described. The table of contents indicates that relevant information should be found in:

• Section 5.3.5.2 Sourcing raw material
• Section 5.3.5.3 (title not shown)
• Section 5.3.5.4 Food loss and waste

Without access to these referenced sections, the specific policies, their scope, governance, content, and monitoring mechanisms cannot be identified or extracted.

Actions and resources related to circular economy

Packaging circularity actions

Commitments and targets framework:

• 100% reusable, recyclable or compostable packaging by 2030
• Halve the use of virgin fossil-based packaging by 2040, with a 30% reduction by 2030 compared to 2020; by accelerating reuse and recycling
• Lead the development of effective collection systems to recover as much plastic as Danone uses by 2040

Scope: Own operations and value chain (upstream suppliers and subcontractors, downstream collection and recycling)

1. Extended Producer Responsibility (EPR) participation and support

Actions:

• Participation in EPR systems in markets where regulated, including:
  • Co-creation of first EPR system (Eco-Emballages, now Citeo) in France in 1992
  • Founding member of Circular Action Alliance (CAA) in the United States - a Producer Responsibility Organization approved to implement EPR in Colorado and California, and selected by Maryland and Oregon in 2024
  • Active promotion of Deposit Return Schemes (DRS) for water bottles, running pilot initiatives (e.g., Poland)

Resources allocated:

• $5 million investment (committed in 2018) in Closed Loop Partners' Closed Loop Infrastructure Fund (CLIF) to support recycling infrastructure development and promote circular economy

Scope: Downstream (collection and recycling infrastructure)

Stakeholder partnerships: EPR organizations in operating countries (Citeo in France, Circular Action Alliance in the United States, IPRO in Indonesia), Circulate Capital, Closed Loop Fund, The Recycling Partnership

2. Inclusive recycling projects (Danone Ecosystem)

Action: Projects providing direct support to workers in collection and recycling sectors to improve working and living conditions

Scope: Downstream value chain (collection and recycling workers) in 8-9 countries

Outcomes achieved (as of 2024):

• More than 10,179 people professionally empowered through nine projects since launch
• Positive impact on over 2.94 million people (ripple effect)

Indonesia-specific results:

• Around 300 workers benefited from micro credit services
• 2,896 workers gained access to tailored social benefits
• Training communities to prevent child labor
• Since 2020, 372 ktons of recyclable materials collected across eight countries

Time horizon: Multi-year (ongoing since 2020)

3. Recycled content and materials innovation

Actions:

• evian leadership: first brand to use food-grade recycled PolyEthylene Terephthalate (rPET) for natural mineral water in France (2008)
• "Closing the loop" approach to reduce carbon footprint and preserve natural resources
• Partnerships with innovation partners/startups: LOOP INDUSTRIES, Perfect sorting, HOLYGRAIL 2.0

Scope: Own operations and upstream (packaging suppliers)

4. Supplier engagement on circular economy

Action: Integration of circular economy requirements in Sustainable Sourcing Policy (SSP) launched in 2024

Requirements: Suppliers and Subcontractors (excluding farmers) must align with Danone's approach to co-build transparent circular economy for packaging by:

• Reducing use of plastic
• Increasing reusability and/or recyclability
• Increasing recycled content in materials

Scope: Upstream (Tier 1 suppliers excluding farmers)

Linkage: Replaces Danone Sustainability Principles (DSP) for Tier 1 suppliers

5. Local circular economy implementation

Action: Local Sustainability Teams coordinate implementation including "circular economy projects at local level"

Scope: Own operations (regional and local levels)

Governance: Operated by sustainability teams in different geographies

6. Engagement in global plastics treaty

Action: Active participation in Business Coalition for a Global Plastics Treaty, calling for binding global rules to promote circularity and curb plastic pollution

Scope: Policy advocacy (global)

7. Packaging quality and safety controls

Action: Packaging design based on compliance with legal/regulatory requirements and Danone-specific quality and food safety requirements, including:

• Compliance with purity criteria for packaging materials
• Non-use of substances presenting specific risks
• Verification of migration standards
• Risk assessment for non-intentionally added substances

Scope: Own operations and upstream (packaging design and suppliers)

Plastic footprint assessment

Current state (2024):

• Plastic represents ~50% of Danone's packaging
• More than 94% of plastics in value chain used for packaging
• 99% recovery rate for plastic packaging waste at production sites in 2024
• More than 93% of plastic is primary and secondary packaging (bottles, films, caps, labels, yogurt pots, beverage cartons)

Stakeholder collaboration framework

Targets related to circular economy

Food Waste Reduction Target

Target metric: Reduction in total quantity of food waste per metric ton of product sold, excluding waste intended for animal feed and the processing of biomaterials

Target value: Halve food waste (50% reduction)

Target year: 2030

Baseline year: 2020

Baseline value: Not explicitly disclosed in the excerpts

Scope: Own operations (production sites and supply chain; excluding Waters category)

Type: Intensity-based (food waste per metric ton of product sold)

Validation: Voluntary target set by Danone; aligned with UN SDG 12.3

Additional context:

• Danone is a member of Friends of Champions 12.3 and 10x20x30 Initiative
• Joined Consumer Goods Forum Food Waste Coalition in 2024
• Committed to #123Pledge in 2023
• Addresses waste hierarchy: prevention, preparation for reuse, other recovery and disposal
• Targets both own operations and encourages consumer behavior change

Progress to Date

Data based on constant consolidation scope and methodology, excluding Waters category

Compensation metrics

Pay gap

Danone's ambition is to close the gender pay gap for all its employees by 2025. The Group uses the following methodology to calculate the gender pay gap: (Average women CR/Average Male CR -1) x 100 where the CR = Compa Ratio = Total Target Cash/Country median.

In 2024, the Gender Pay Gap stood at 1.1 pt on a scope including managers, senior managers, and executive positions.

Danone has put in place a methodology and a roadmap to expand the scope of this analysis to all employees.

Remuneration ratio

Danone presents the ratio of the highest paid individual to the median annual total remuneration for employees who have entered into a permanent or fixed-term employment contract with Danone companies registered in France.

Chief Executive Officer ratios (France scope)

Methodology and scope

The ratios have been calculated by taking into consideration the compensation of employees of 80% of the Danone companies registered in France on a full-time equivalent basis. The number of employees taken into account are those present at December 31 of year N and December 31 of the previous fiscal year.

The ratios were calculated taking into account only those employees who have entered into a permanent or fixed-term employment contract with Danone companies registered in France and who were continuously employed by these companies from January 1 to December 31 of the fiscal year in question. Employees who have entered into a part-time employment contract with these companies, as well as expatriate employees, were not included.

Components of compensation considered:

• Fixed compensation paid in year N
• Annual variable compensation paid in year N for the previous fiscal year
• Valuation on the grant date of the performance shares granted during the fiscal year (IFRS 2)
• GPUs paid in year N

Scope limitation

Due to the lack of methodology to calculate a ratio for all employees adjusted to the purchasing power differences between countries, and willing to disclose information that is complete, accurate, consistent and comparable with its peers, Danone is waiting a clarification of the methodology to extend the scope of this ratio.

Health and safety metrics

Coverage of health and safety management system

All individuals working at Danone sites – including employees, workers provided by third-party undertakings, other external labor providers, and subcontractors – are covered by the Group's accident monitoring, analysis, and action plans addressing fatal, lost-time, and non-lost-time accidents.

Each year, Danone conducts WISE² audits at approximately 50% of its production and logistics sites, covering both safety culture and compliance with standards. WISE² audits cover all Danone employees and external workers present at production sites and across sales forces.

Accidents, lost days and frequency rates

Methodology notes

Frequency rates: FR1 represents the number of workplace accidents with lost time of one day or more per one million hours worked. FR2 represents the number of workplace accidents without medical leave per one million hours worked.

Coverage: Workplace accident indicators cover accidents affecting temporary employees, workers employed through staffing agencies or service providers working at the sites, as well as interns who have an internship agreement with Danone.

Ill-health cases: In 2024, Danone updated the Health and Safety reporting protocol to include ill-health cases across all entities. The Group will continue to promote the reporting of these events and analyze them to consolidate robust figures in the future.

Vigilance Plan implementation results

WISE² results for 2024: number of fatal accidents – 2 (3 in 2023); accidents with at least one lost working day – 187 (207 in 2023), frequency rate 0.9 (0.9 in 2023), severity rate in 2024 – 0.02 (0.03 in 2023).

Adequate wages

Benchmark used

Danone uses the Fair Wage Network (FWN) methodology to assess whether employees receive a living wage.

In 2023, Danone began collaborating with an external provider to assess whether its employees are receiving a living wage in all locations where it operates. This partnership aims to ensure that no Danone employee falls below a living wage, with comprehensive assessments covering various factors influencing wages, such as local cost of living (including food, housing, healthcare, and other essential needs) and economic conditions. This external provider applies its methodology, which includes a detailed analysis of wage levels, wage structures, and local living standards, to identify any gaps and guide corrective actions if necessary.

Coverage

In 2024, 100% of Danone's employees are in line with or above the living wage, following the Fair Wage Network methodology.

Policy framework

The Danone Sustainability Principles (DSP) and Human Rights Policy commit to granting a living wage or at least the applicable legal minimum or standard pay. The company offers comprehensive, competitive and fair compensation based on the Mercer evaluation system, taking into account regulations, requirements, external market developments, and local context.

Geographic scope

The assessment covers all locations where Danone operates globally.

Targets and commitments

While no explicit future target is stated, Danone's Impact Journey includes the commitment to deploy the Sustainable Sourcing Policy to 100% of suppliers by 2030, which includes adequate wage provisions for value chain workers.

Value chain extension

The company's Human Rights Policy and Sustainable Sourcing Policy extend the commitment to adequate wages to workers in the value chain, including:

• On-site external workers (subcontractor workers)
• Agricultural supply chain workers and farmers
• Transport and logistics workers
• Waste management workers

Danone has identified that workers in the value chain "may not receive an adequate wage, leading to the inability to meet their fundamental needs or those of their family." Issues may be caused by late payment, improper deductions, time-based or piecework rates, or the level of wages paid.

Methodology details

The external provider's methodology includes:

• Detailed analysis of wage levels and wage structures
• Assessment of local living standards
• Evaluation of local cost of living (food, housing, healthcare, and other essential needs)
• Economic conditions analysis
• Gap identification and corrective action guidance

Certification

Danone pursues Fair Wage Network Certification (listed as a quantitative criterion for executive compensation, weighted at 5%).

Policies related to own workforce

Danone has implemented multiple policies addressing its own workforce, aligned with international human rights frameworks including the UN Guiding Principles on Business and Human Rights (UNGPs), OECD Guidelines for Multinational Enterprises, ILO Declaration on Fundamental Principles and Rights at Work, and the UN Global Compact.

Danone Sustainability Principles (DSP)

Scope: All Danone employees and extended to business partners

Key content: The DSP comprise ten social principles aligned with the UN Universal Declaration of Human Rights and ILO Declaration:

• No child labor
• No forced labor
• No harassment or abuse
• Reasonable working hours
• Fair wages
• No discrimination
• Freedom of association and right to collective bargaining
• Health, safety and well-being at work
• Inclusion for all
• Land rights of communities and indigenous people

Public availability: Available on Danone's website with an Implementation Note for Business Partners

International standards alignment: Aligned with UNGPs, UN Universal Declaration of Human Rights, OECD Guidelines for Multinational Enterprises, ILO Declaration on Fundamental Principles and Rights at Work, and UN Global Compact principles

Monitoring: Monitored through a Human Rights Due Diligence (HRDD) process aligned with UNGPs. Target: 100% employees trained on Danone Human Rights policy by 2025 (in progress)

Human Rights Policy (2022)

Scope: Danone's own operations and value chain

Governance: Implementation monitored by Chief Human Resources Officer and Chief Operations Officer, with Business and Human Rights Leaders network deployed locally

Key content: Provides detailed information on Danone's responsibilities regarding:

• Ending exploitation (prohibiting child and forced labor, slavery, human trafficking, harassment and abuse, ensuring reasonable working hours)
• Decent work (living wage/legal minimum pay, freedom of association and collective bargaining, safe and healthy working conditions, no discrimination with inclusive culture)
• Respecting people in communities (land rights of communities and indigenous people, not impacting access to water, right to healthy environment and nutrition)
• Grievance mechanisms and remedial measures
• Governance related to human rights

Public availability: Available on Danone's website, translated into local languages in all Country Business Units

International standards alignment: Aligned with UNGPs, UN Universal Declaration of Human Rights, OECD Guidelines for Multinational Enterprises, ILO Declaration on Fundamental Principles and Rights at Work, and UN Global Compact

Monitoring: HRDD process with six steps: (i) communicating policy and establishing governance, (ii) conducting risk assessments, (iii) adopting mitigation plans, (iv) monitoring implementation, (v) communication, and (vi) remediation. In 2024, Business and Human Rights Leaders appointed in priority countries; SMETA audits conducted in 10 priority countries; self-assessments at priority sites in other countries. 100% of audits and 90% of self-assessments scheduled for 2024 completed.

Global External Workforce Policy (2018)

Scope: On-site external workers (labor agency workers)

Key content:

• Focuses specifically on labor agency workers
• Prohibits payment of recruitment fees by workers
• Addresses human rights violations on vulnerable populations

Monitoring: Covered under HRDD process; external workers included in SMETA audits and self-assessments

Living Wage Policy

Scope: All Danone employees globally

Key content:

• Granting a living wage or at least applicable legal minimum or standard pay (part of DSP and Human Rights Policy)
• Collaboration with external provider since 2023 to assess whether employees receive living wage in all locations
• Assessment covers local cost of living (food, housing, healthcare, essential needs) and economic conditions

Monitoring: In 2024, 100% of Danone's employees are in line with or above living wage, following Fair Wage Network methodology

Dan'Cares Program (2009)

Scope: All Danone employees globally

Key content:

• Guarantees quality health coverage for all employees
• Covers major risks: hospitalization and surgery, ambulatory care, maternity care
• Takes into account relevant market practices
• Rolled out in countries where government healthcare systems do not fully offer coverage
• Ensures minimum standards through yearly comprehensive assessment

Monitoring: Target: 100% coverage by 2030. As of December 31, 2024: 87,664 employees in 52 countries covered (98% of Danone's employees)

WISE² (Workplace Integrated Safety Excellence) Program

Scope: All office sites, production sites, logistics warehouses, sales and distribution locations globally

Governance:

• Managed by Operations
• Overseen by Safety Steering Committee chaired by Chief Operations Officer and Chief Human Resources Officer (both Executive Committee members)
• Supported by Vice President Industrial Excellence and Head of Health, Safety and Well-being
• Health and Safety managers at subsidiaries and sites support deployment

Key content:

• Workplace safety and accident prevention
• Management of working conditions including ergonomic risk assessments
• Training on repetitive motions, posture, workstation configurations
• Monitoring of occupational illness and related absenteeism

Monitoring: Site-level risk assessments updated annually; Single Occupational Risk Assessment Documents maintained; compliance standards deployed in countries with significant convenience store distribution

Parental Policy (2017)

Scope: All Danone employees

Key content: Support for employees with parental responsibilities

International standards alignment: Contributes to anti-discrimination commitments

Anti-Harassment and Anti-Discrimination Policy (2020)

Scope: All Danone employees and value chain

Key content: Ensures workplace free of harassment and discrimination

International standards alignment: Aligned with human rights frameworks

Inclusion and Diversity Policy (2024, updated)

Scope: All Danone employees globally

Key content:

• Details Group's standards and expectations regarding anti-discrimination and harassment in workplace
• Specific provisions on workplace equality

Monitoring: Target: Maintain inclusion index above peers (+2pts above peers)

Social Dialogue and Collective Bargaining Policies

Scope: All Danone employees worldwide

Governance:

• VP Social Dialogue and Social Fundamentals
• Chief Human Resources Officer
• Continuous dialogue with International Union of Food Workers (IUF) since 1980s

Key content:

• Respects union rights and fundamental human rights to form and join unions
• Freedom of association and right to collective bargaining (part of DSP and Human Rights Policy)
• Nine co-signed global agreements with IUF aligned with UNGPs
• Information and Consultation Committee (CIC) established 1996 as European Works Council
• Annual international meetings with union representatives
• IUF Global Engagement Meetings with participation from Chief Executive Officer and Chief Human Resources Officer

International standards alignment: ILO fundamental conventions; member of UN Global Compact since 2003

Monitoring:

• Joint visits to countries with IUF (US and Indonesia in 2024; Turkey and Belgium in 2023)
• E-learning module on social dialogue launched in 2024 in collaboration with IUF
• Regular quarterly CIC Steering Committee meetings

FutureSkills Program (2020)

Scope: All Danone employees and key partners

Governance: Monitored by Danone's Mission Committee

Key content:

• Joint declaration with IUF to give employees opportunity and time to develop new skills
• Prepare employees for jobs of tomorrow
• Danone Microsoft AI Academy launched 2024 to upskill all employees on AI and digital tools

Monitoring:

• Target: Make future skilling programs available to all Danone employees by 2025 (in progress)
• Target: Extend to key partners by 2030 (in progress)

Personal Data Privacy Policy (2016)

Scope: All Danone entities worldwide, including subsidiaries and affiliates majority owned or effectively controlled, and all employees

Key content:

• Processing personal data in fair, lawful, and transparent manner
• Compliance with regional data protection regulations including GDPR
• Rules and responsibilities for employees and third parties processing personal data

Monitoring:

• Regular risk assessments at local Business Units
• Integration into annual internal audit and internal control plans
• Annual data security audits by internal team and external cybersecurity experts
• Mandatory annual compliance e-learning for all employees with laptops
• Dedicated GDPR training for EU employees (new recruits and every two years)
• Document center with templates and procedures accessible to all employees

Taking action on material impacts on own workforce

The document references S1-4 disclosure requirement in section 5.4.1.4 Material impact, risk and opportunity management, but the excerpts provided do not contain the actual content of that section.

Action identified:

Dan'Skill - Global Training Initiative

• Description: An innovative global training initiative aimed at empowering employees through lifelong learning programs and transforming Danone into a learning organization
• Scope: Own workforce (global program)
• Key components:
  • Acculturation and upskilling in artificial intelligence (AI)
  • Multi-year collaboration with Microsoft to integrate AI into operations
  • Danone Microsoft AI Academy dedicated to upskilling all Danone employees and equipping them with AI tools
• Time horizon: Multi-year (launched in 2024)
• Resources allocated: Not quantified in the excerpts
• Outcomes: More than 50,000 employees use AI in their daily work (as of reporting date)

Note: The excerpts primarily contain cross-reference tables and compensation information rather than the substantive S1-4 disclosure content.

Targets related to own workforce

Gender diversity target for Executive Committee

Target: Gender diversity target of 40% to 60% by 2029

• Target metric: Gender diversity representation in the Executive Committee
• Target value: 40% to 60%
• Target year: 2029
• Baseline year: Not disclosed
• Baseline value: Not disclosed
• Scope: Executive Committee (management body)
• Type: Not specified (absolute percentage range)
• Validation: Set by the Board of Directors at the proposal of General Management, in accordance with AFEP-MEDEF Code recommendations
• Progress to date: As of December 31, 2024, the Executive Committee consists of 13 members (composition details provided but gender breakdown not explicitly stated in the excerpt)

Note: The document references that "Danone's goal is to have balanced representation of men and women at each level of its organization" and that the Board of Directors has set this specific target for the Executive Committee. Further details on own workforce targets are stated to be in Section 5.4.1 which is not fully provided in these excerpts.

Social protection

Dan'Cares Program

Danone launched the Dan'Cares program in 2009 to protect all employees and guarantee quality health coverage. The program covers major risks including:

• Hospitalization and surgery
• Ambulatory care
• Maternity care

In 2023, Danone expanded Dan'Cares to a fourth pillar: Be Well by Dan'Cares, focusing on employee well-being, nutrition, and mental and physical wellness.

In 2024, Danone hired an external provider to audit the alignment of Dan'Cares across all geographies, utilizing metrics related to accessibility, out-of-pocket expenses, and quality of inpatient, outpatient, and maternity services compared to OECD averages.

Coverage by Social Protection

Health Coverage (Dan'Cares):

As of December 31, 2024, 87,664 employees in 52 countries received health coverage fully meeting the criteria defined by Dan'Cares, representing 98% of Danone's employees.

Target: 100% of Danone employees to be covered by Dan'Cares by 2030 (Danone Impact Journey).

Other Social Protection Elements

Retirement and Loss of Income:

Actions on retirement and loss of income due to sickness or disability are driven locally, taking into account existing government provisions or social security systems. Danone conducts regular assessments and market studies to collect and benchmark local policies and enhance them if necessary. Danone facilitates access to supplementary insurance plans for employees in markets where available.

Parental Leave:

The Global Parental Policy (2017) applies to all permanent employees worldwide and is based on three key components:

• Pre-natal support (modified working conditions, nutrition counseling)
• Extended parental leave for both men and women
• Post-natal support (job protection, return-to-work support, flexible working conditions, breastfeeding support including lactation rooms at sites employing more than 50 women)

The policy ensures job protection, paid and unpaid leave, and support for breastfeeding, aligning with local legislation and WHO guidelines.

Defined-Benefit Retirement Plans

Provisions for retirement obligations:

Geographic breakdown of gross obligations (%):

Methodology Note

The Group contributes to employee retirement benefit plans in accordance with laws and practices of countries in which subsidiaries operate. Defined-contribution plans are expensed as incurred. Defined-benefit plans are calculated using the projected unit credit method with actuarial assumptions. Dan'Cares coverage is assessed through yearly comprehensive assessments across all Danone subsidiaries.

Persons with disabilities

Danone takes various initiatives, both at Group and local level, to foster an inclusive workplace for employees with disabilities.

Policy framework

The Global Inclusion and Diversity (ID) Policy published in 2019 underscores Danone's commitment to ensuring inclusiveness for all employees, affiliates, and business partners. The policy mandates that all decisions related to recruitment, hiring, promotion, compensation, employee development, and other employment terms and conditions will be made without regard to disability (among other protected characteristics). It applies to all Danone employees worldwide, as well as any individuals working for Danone, regardless of their contractual status.

Actions and initiatives

2024 activities:

• Global membership to the Business Disability Forum, a non-profit organization bringing businesses, people with disabilities and policymakers together
• New global partnership with Disability:IN, a leading non-profit resource for business disability inclusion, providing counsel, educational opportunities and sharing of best practices on disability inclusion in the workplace
• Mandatory e-learning programs and/or in-person training for all employees on anti-harassment and discrimination

Employee representation

Danone has employee representatives who represent employees with disabilities. One Works Council member has represented employees with disabilities since 1998.

Quantitative metrics

No quantitative data on the percentage of employees with disabilities is disclosed in the provided excerpts.

Training and skills development metrics

Employee training hours

Scope: Social indicators scope - permanent employees (see Consolidation scope and headcount methodology coverage).

Performance and career development reviews

Danone has developed a Learning & Development framework, complemented by an annual Development Conversation for all employees, enabling them to identify their Learning & Development needs.

Training programs and initiatives

CampusX ecosystem: The learning platform is accessed by approximately 25,000 employees every month, providing a wide range of content including leadership topics, Danone-specific learning programs, and external training solutions (LinkedIn learning, Coursera, etc.).

DanSkills: An innovative global training program launched with two primary objectives: upskill all Danone employees for the jobs of the future and attract new talents. Between now and 2030, Danone plans to reallocate one million training hours annually to help employees learn the skills of the future, including digital technology.

Danone Microsoft AI Academy: Launched in October 2024 in collaboration with Microsoft.

La Maison – Danone Leadership center: A global learning center opened in November 2024 in the historical Evian site.

Frontline employees: Specific learning solutions include on-the-job coaching support, workshops, videos, and bite-size modules to be included in team meetings. An innovative podcast learning solution on digital technology has been launched, translated into 15 languages.

Work-life balance metrics

Policy disclosure

Danone has implemented a Global Parental Policy (2017) that applies to all permanent employees worldwide. The policy is based on three key components:

1. Pre-natal support: Modified working conditions and nutrition counseling during pregnancy
2. Extended parental leave: For both men and women
3. Post-natal support: Job protection measures, return-to-work support, flexible working conditions, and breastfeeding support (lactation rooms at all sites employing more than 50 women)

The policy ensures job protection, paid and unpaid leave, and support for breastfeeding. It aligns with local legislation and WHO guidelines.

The Global Parental Policy aligns with international instruments, including the UNGPs, and is available on Danone's website and intranet.

Quantitative metrics

No quantitative metrics for S1-15 are disclosed in the provided excerpts. The document states that S1-15 (Work-life balance metrics) is covered in section 5.4.1.4 Material impact, risk and opportunity management, but the actual metrics (percentages of employees entitled to family-related leave, take-up rates by gender, or return-to-work rates) are not provided in these excerpts.

Incidents, complaints and severe human rights impacts

Number of complaints and incidents related to human rights

In 2024, a total of 516 concerns relating to potential human rights violations were recorded in 36 countries, compared with 388 concerns in 31 countries in 2023. Among those reports processed (following the DEL grievance mechanism), 156 were substantiated (or partially substantiated) and 160 were still under investigation as of December 31, 2024.

No cases were identified related to child or forced labor in Danone's own workforce.

Number of incidents of harassment and discrimination

In 2024, 156 DEL alerts were substantiated on human rights: these included:

• 6 discrimination cases
• 80 harassment cases

Amount of material fines, sanctions, and compensation paid

Danone has set up, through litigation report, a process for collecting material fines, sanctions, and compensations paid from countries. No significant fines have been reported to the Group through this channel in relation to human rights, sanctions and compensation.

Status of complaints

Of the 516 concerns recorded in 2024:

• 156 substantiated (or partially substantiated)
• 160 under investigation as of December 31, 2024

Multi-year comparison

Grievance mechanism for raw materials

Since 2019, Danone has implemented a specific grievance mechanism for palm oil, with the support of the Earthworm Foundation. This mechanism is also being used for other commodities.

In 2024, Danone registered 13 new concerns raised linked to deforestation and human rights violations:

• 8 related to palm oil
• 5 related to other commodities

In total, the Group is monitoring 18 concerns that have been brought to its attention by organizations such as the Earthworm Foundation, Chain Reaction Research, Global Witness and Friends of the Earth.

Methodology notes

The definition of human rights-related alerts has been broadened to include ending exploitation (prohibiting child and forced labor, harassment, and ensuring reasonable working hours) and promoting decent work (payment of wages in line with legal minimum or standard pay, ensuring safe and healthy working conditions, granting freedom of association/right to collective bargaining, ending discrimination).

All concerns raised in the human rights category are initially reviewed by the Global Human Resources Compliance and Labor Law team, which appoints an independent internal or external investigator if the concern calls for an investigation.

Characteristics of the undertaking's employees

Total headcount and FTE

As of December 31, 2024, Danone's consolidated workforce comprised:

Note: The excerpts do not provide total consolidated headcount or FTE figures for Danone Group. Section 5.4.1.4 refers to "over 90,000 employees worldwide" in descriptive text but no precise figure is given.

Headcount by gender

Gender breakdown is not disclosed in the excerpts for the consolidated workforce.

Headcount by country or region

As of December 31, 2024, Danone operated across multiple zones:

• Europe zone: Over 26,000 Danone employees (section 2.3)
• Other zones (North America, China/North Asia/Oceania, Latin America, Rest of World): Employee counts not disclosed

Headcount by employment contract type

Breakdown by permanent/temporary/non-guaranteed hours contracts is not disclosed in the excerpts.

Headcount by employment type (full-time/part-time)

Breakdown by full-time and part-time employment is not disclosed in the excerpts.

Employee turnover

Employee turnover rate and number of employees who left during 2024 are not disclosed in the excerpts.

New hires

Number and rate of new hires during 2024 are not disclosed in the excerpts.

Parent Company (Danone SA) headcount

For the parent company Danone SA only:

Source: Note 18, section 4.2 Parent Company financial statements

Methodology notes

The excerpts contain references to ESRS S1-6 requirements (section 5.2) but the actual consolidated workforce characteristics tables required by the standard are not provided in the extracted pages. Only the parent company Danone SA employee data and partial zone-level information are available.

Characteristics of non-employees in the undertaking's own workforce

Danone has conducted a Human Rights Due Diligence (HRDD) process that includes external workers (temporary workers employed through labor agencies or contract workers on Danone's sites). The Group acknowledges in its materiality assessment that external workforce is a priority population requiring specific focus.

Scope and definitions

Danone's own workforce includes:

• Danone employees
• External workers: individuals working at Danone sites who are not employed directly by Danone, including:
  • Temporary workers provided by labor agencies
  • Contract workers employed by subcontractors to carry out regular and continuous work at Danone entities
  • Independent contractors
  • Third-party workers and other external labor providers

As stated in the document: "The Group extended the scope of its Human Rights Due Diligence to include external workers hired by temporary work agencies or by subcontractors to carry out regular and continuous work at its entities" (with the aim of reaching 100% coverage by 2025).

Health and Safety coverage

All individuals working at Danone sites – including employees, workers provided by third-party undertakings, other external labor providers, and subcontractors – are covered by the Group's accident monitoring, analysis, and action plans addressing fatal, lost-time, and non-lost-time accidents.

WISE² audits (Danone's workplace health and safety program) cover "all Danone employees and external workers present at production sites and across sales forces."

HRDD assessment coverage

In 2024, Danone continued its Human Rights Due Diligence process covering external workers:

• Ten priority countries: Site-specific SMETA audits were conducted by certified auditors at facilities including plants, headquarters, and warehouses, covering both Danone employees and external workers
• Other countries: Human rights self-assessments were conducted at priority sites (defined as over 150 Danone employees or if the external workforce exceeds 20% of the Danone headcount)

Policies and governance

In 2018, Danone issued an internal Global External Workforce Policy focusing specifically on labor agency workers and prohibiting the payment of recruitment fees by workers.

The Health, Safety and Well-being Policy (2024) extends health and safety components to external workers including temporary workers, third-party workers and independent contractors, as well as visitors.

Quantitative disclosure

The document does not provide:

• Total headcount or FTE of non-employee workers
• Breakdown by type (temporary agency workers vs. contractors vs. self-employed)
• Percentage of non-employees relative to total workforce
• Geographic or business unit breakdown of external workers

The only quantitative reference is the criterion used for self-assessment priority sites: "if the external workforce exceeds 20% of the Danone headcount" at a given site, but no aggregate figures are disclosed.

Methodology notes

Danone's managerial headcount data reporting excludes some external workers. As noted: "In China, employees paid by Danone but whose contracts are with a third-party company (equivalent to a temporary work agency) are not included in the headcount."

Collective bargaining coverage and social dialogue

Collective bargaining coverage

Global coverage:

• 2024: 69% of employees covered by collective bargaining agreements
• 2023: 72% of employees covered by collective bargaining agreements

France:

• 2024: 100% of employees covered by more than one collective bargaining agreement

Social dialogue governance and structures

Governance: The Social Fundamentals team, which oversees all matters related to employee relations, reports directly to the Chief Human Resources Officer, who is a member of the Executive Committee. The responsibilities related to employee relations are embedded in the roles of every Human Resources Director across the organization. Each country in which Danone operates has dedicated employee relations or social dialogue professionals.

Board representation: France's Work Council (CGF) and the European Work Council (CIC) appoint two Directors representing employees to sit on the Board of Directors. A member of Danone SA's Work Council also attends Board meetings in an advisory capacity.

European Works Council (CIC): Created in 1996 through an agreement with the IUF (International Union of Food workers), the Information and Consultation Committee (CIC) acts as the European Works Council of the Group. Quarterly CIC Steering Committee meetings gather key union leaders and Danone senior management, including the VP, Social Dialogue and Social Fundamentals and the Chief Human Resources Officer.

International social dialogue:

• Annual international meeting organized by the IUF for 28 years at the European level and 15 years globally, allowing union representatives to engage with top management including the Chief Executive Officer
• IUF Global Engagement Meetings established 12 years ago, led by the VP Social Dialogue and Social Fundamentals, with participation from the Chief Executive Officer and Chief Human Resources Officer at least once a year
• Regular joint visits to countries to assess effectiveness of Danone-IUF agreement implementation (US and Indonesia in 2024; Turkey and Belgium in 2023)

Global Framework Agreements with IUF

Danone has been a pioneer in negotiating and signing Global Framework Agreements with the IUF since the 1980s. Nine agreements have been signed since 1989, including:

• 1989 Agreement on Provision of Information
• 1989 Agreement on Equality
• 1992 Agreement on Skills Training
• 1994 Agreement on Trade Union Rights
• 2005 Agreement on Social Indicators
• 2007 Agreement on Diversity
• 2011 Agreement on Health, Safety, Working Conditions and Stress
• 2016 Agreement on Sustainable Employment and Access to Rights

In 2005, Danone and the IUF signed a joint declaration on Danone's fundamental social principles covering:

• Freedom of association and right to collective bargaining
• No child labor
• No forced labor
• No discrimination
• No harassment or abuse
• Reasonable working hours
• Fair wages
• Health, safety and well-being at work
• Inclusion for all
• Land rights of communities and indigenous people

These principles apply to management teams at Danone sites, companies in which Danone has a minority shareholding, and main suppliers and subcontractors.

Employee awareness and engagement

2024 Danone People Survey results on social dialogue:

• 81% of employees answered that they would feel comfortable/rather comfortable using the Danone Ethics Line
• 94% participation rate in the survey (compared to 91% in 2023)
• Overall Engagement Score: 78% (+7 points vs FMCG peers)

Training initiative: In 2024, in collaboration with IUF union representatives, Danone launched an e-learning module on social dialogue designed to equip employees with skills to navigate complex social agendas and increase knowledge of Danone's social policy and Danone-IUF agreements.

Methodology notes

Social dialogue-related metrics are integrated into Danone's programs and reporting systems through Danone Way and DANgo. Annual audits monitor:

• Awareness of Leadership Team members on Danone's Social Dialogue Policy and IUF conventions topics
• Employee representation through strong unions or democratically elected representatives
• Attitude of HR teams towards unions and employee representatives
• Application of Group guidelines when business changes affect employees per the 1997 Global Framework Agreement

Diversity metrics

Gender distribution at top management level

The Executive Committee constitutes the "top management" (as defined by ESRS S1-9).

(a) For more information, see section 6 Corporate Governance.

(b) The Executive Committee constitutes the "top management" (as defined by ESRS S1-9).

Gender breakdown by contract type (2024)

Gender pay gap

In 2024, the Gender Pay Gap stood at 1.1pt on a scope including managers, senior managers, and executive positions.

Methodology: (Average women CR/Average Male CR -1) x 100 where the CR = Compa Ratio = Total Target Cash/Country median.

Targets

The Group aims to achieve gender balance in management globally by 2030:

• 40% to 60% women in management positions
• 40% to 60% women in senior leadership positions
• 40% to 60% women in the Executive Committee

Age band distribution

Not disclosed.

Policies related to value chain workers

The excerpts provided do not contain the actual disclosure content for ESRS S2-1. The excerpts show only:

• A table of contents/cross-reference table mapping ESRS disclosure requirements to sections of the report (indicating S2-1 is addressed in section 5.4.2.4)
• A data point mapping table showing connections to SFDR and Benchmark Regulation requirements
• References to policy commitments including:
  • Human rights policy commitments (S2-1 §17)
  • Policies in relation to value chain workers (S2-1 §18)
  • References to UN Guiding Principles on Business and Human Rights, ILO Declaration on Fundamental Principles and Rights at Work, and OECD Guidelines for Multinational Enterprises (S2-1 §19)
  • Due diligence policies on issues addressed by fundamental ILO Conventions 1 to 8 (S2-1 §19)

The actual policy content, names, scope, governance, and implementation details are located in section 5.4.2.4 "Material impact, risk and opportunity management" which is not included in the provided excerpts.

Without access to section 5.4.2.4, the specific policies related to value chain workers cannot be extracted or described.

Taking action on material impacts on value chain workers

Danone's CSRD sustainability statement cross-references ESRS S2-4 to section 5.4.2.4 "Material impact, risk and opportunity management" for value chain workers. However, the provided excerpts contain limited direct disclosure on actions specifically targeting value chain workers.

Climate Transition Plan Actions (impacting value chain workers indirectly)

Danone's Climate Transition Plan includes eight strategic programs with actions that affect upstream value chain workers, particularly farmers:

1. Regenerative Agriculture Program

Scope: Upstream value chain (dairy and non-dairy farmers)

Key Actions:

• Implementation of multi-year agricultural projects across NORAM, LATAM, Europe and Africa, including:
  • NORAM Regenerative Agriculture Program
  • Les Deux Pieds Sur Terre (France)
  • Margarita (Mexico)
  • Flora project (Brazil)
  • Regenerative Agriculture Program (Poland)
• Upskilling local milk teams from LATAM and AMEA on agricultural best practices (herd management, animal health and welfare, crop resilience) - October 2024 week-long event
• Assessment campaigns: Regenerative Agriculture Scorecard assessment, Animal Welfare assessment, and Cool Farm Tool assessment
• Adoption of SAI Platform's Regenerating Together Framework (transition began 2024 in several CBUs)

Resources & Partnerships:

• Partnerships with Ajinomoto, Corteva, FrieslandCampina, MSD, and Zoetis for sustainable farming and carbon reduction
• Partnership with 100+ Accelerator program (2024) for sustainable innovation
• Support for Siak Pelalawan Landscape Program (SPLP) in Indonesia since 2019
• Danone Ecosystem working with 100+ strawberry farmers in Mexico

Expected Outcomes:

• 39% of key ingredients sourced from producers transitioning to regenerative agriculture (2024 result)
• Animal welfare assessed at suppliers providing 86% of fresh milk volume (2024)
• Cool Farm Tool coverage: 92% of direct milk collection volumes from farms (2024)
• 11.7% of thermal energy from renewables; 85.7% of electricity from renewables (2024)

2. Supplier Engagement Program

Scope: Upstream value chain (dairy ingredients, non-dairy ingredients, packaging)

Key Actions:

• Dairy ingredients: Incorporating decarbonization targets of at least 30% (2020-2030) into supplier contracts
• Encouraging suppliers to join Sustainable Dairy Partnership (SDP) - five-stage framework for sustainability
• Non-dairy ingredients: Partner for Growth program to co-develop decarbonization projects with top 60 partners
• Packaging supplier engagement: embedding decarbonization goals in contracts

Time Horizon:

• Near-term: 2020-2030 reduction targets
• Long-term: Net-Zero by 2050

Resources:

• 150 partners participated in Partner for Growth digital event (2024)
• 19 new strategic partnerships signed (2024)
• 8 joint business development plans (2024)
• Selected HowGood platform for supplier engagement and primary emission factor collection

Expected Outcomes:

• 82% of suppliers (by volume) are SDP members (2024), of which nearly half have externally verified sustainability programs
• 30% of total dairy ingredient volumes covered by contractualized GHG reduction targets (2024, vs 20% in 2023)
• 24% reduction in on-farm emissions with Royal FrieslandCampina (2015-2024)
• Reduced GHG emissions: 442 ktCO2e reduction in ingredients between 2023-2024

3. RESPECT Supplier Assessment Program

Scope: Upstream value chain (suppliers and subcontractors)

Key Actions (2024 reinforcement):

• (i) ESG risk rating tool introduced for tailored, proactive risk management
• (ii) Self-assessment questionnaires on Sedex or EcoVadis platforms covering labor standards, health & safety, environment, business ethics
• (iii) On-site audits using SMETA methodology for high-risk and priority suppliers
• (iv) Support for developing and implementing corrective action plans through dedicated RESPECT resources
• "Worker's Voice" pilot project initiated (2024) in upstream fruit team, focusing on high-risk fruit raw materials - listening directly to workers beyond traditional audits

Expected Outcomes:

• Assessment of human rights, health & safety, environmental and business ethics performance
• Critical non-compliance areas addressed through expert support and frameworks

4. Deforestation & Conversion Free (DCF) Sourcing

Scope: Upstream value chain (commodity suppliers)

Target: Traceable, verified deforestation- and conversion-free value chain on key commodities by 2025

Key Actions:

• Traceability campaigns for palm oil, soybeans, paper, and cocoa (bi-annual)
• External verification by Earthworm Foundation (palm) and 3keel (other products)
• Satellite monitoring implementation (2024) with external partners for supply chain verification
• Training and upskilling: 13 sessions with 60+ ingredient team buyers on Net Zero, DCF, Biodiversity & Water, Regenerative Agriculture (partnership with 3Keel, 2024)
• Forest Steering Committee established (quarterly meetings)

Results:

• 97% of palm oil sourced RSPO Segregated and 2.2% RSPO Mass Balance (2024)
• Support to SPLP (Indonesia): 11 new villages in participatory mapping (2024), total 52 villages, 8,444 people trained

5. Water Stewardship in Farming Communities

Key Actions:

• Madre Tierra project (Mexico) via Danone Ecosystem: 54% water use reduction vs 2019 baseline (2024)
• Watershed preservation/restoration plans in water-stressed areas
• 4R strategy deployment across production sites

Results (2024):

• 49.7% of manufacturing sites in highly water-stressed areas
• 47% of sites in water-stressed areas have preservation/restoration plans
• 99.3% of sites have 4R action plans (vs 49% baseline in 2020)

Resources & Investment Integration

Danone's annual operating plan and strategic planning systematically incorporate climate transition goals. Climate Transition Plan investments are integrated into OpEx and CapEx:

• All CapEx exceeding €5 million subject to environmental impact assessment and shadow carbon price evaluation
• Approvals by VP Operational Finance and VP Industrial Excellence
• Total materials costs (raw materials, packaging, energy, finished products) represent 75% of cost of goods sold (€10 billion annually)

Governance & Policy Links

Actions are linked to:

• Climate Transition Plan (published December 2023)
• Renewed Forest Policy (2022)
• Water Policy
• Animal Welfare commitments
• Human Rights Policy
• Supplier Engagement Policy
• SBTi 1.5°C targets for Scopes 1, 2 & 3

Cross-Cutting Initiatives

Partner for Growth Program:

• 19 new strategic agreements and 8 joint business development plans (2024)
• Focus on accelerating decarbonization and sustainability with suppliers
• Partnerships with multinationals (ENGIE for carbon reduction, SPX FLOW for energy/water technologies) and sector specialists

Policies related to affected communities

The document references that ESRS S3-1 (Policies related to affected communities) is disclosed in section 5.4.3.4 (Material impacts, risks and opportunities management). However, the excerpts provided do not contain the actual content of section 5.4.3.4.

The cross-reference table indicates that Danone has assessed S3-1 §16 (Human rights policy commitments) and S3-1 §17 (Non-respect of the UN Guiding Principles on Business and Human Rights, ILO Declaration on Fundamental Principles and Rights at Work or OECD Guidelines for Multinational Enterprises) as Material, both mapped to section 5.4.3.4 Material impacts, risks and opportunities management.

This suggests that Danone has policies related to affected communities addressing:

• Human rights policy commitments
• Alignment with UN Guiding Principles on Business and Human Rights
• ILO Declaration on Fundamental Principles and Rights at Work
• OECD Guidelines for Multinational Enterprises

However, without access to the referenced section 5.4.3.4, the specific policy names, scope, governance, content, public availability, and monitoring mechanisms cannot be extracted from the provided excerpts.

Taking action on material impacts on affected communities

Community Engagement Strategy - Mexico (since 2021)

Description: Comprehensive strategy focused on fostering relationships with communities, developed to proactively identify and manage risks at operational sites.

Scope: Own operations (production sites in Mexico)

Time horizon: Since 2021, ongoing

Key components:

• Calibration process: assessing exposure level of each site and categorizing based on risk profile
• Training of over 150 employees
• Implementation of community projects including:
  • Rainwater harvesting
  • Resilient agriculture
  • Drinking water donations
  • Reforestation programs

Outcomes achieved:

• Direct impact on over 30,000 people
• Improved operational stability
• Fostered positive image and strong relationships with communities

Resources: Training delivered to 150+ employees; projects designed in collaboration with communities

Status: Successful model now inspiring Danone's global operations

Global Site-Level Community Engagement Assessment (2024)

Description: Self-assessment survey across production sites worldwide to assess maturity of community engagement practices and identify areas for improvement.

Scope: Own operations (151 sites representing >99% of total production)

Time horizon: Late 2024

Outcomes: Identified Country Business Units in Mexico, Indonesia and Poland with robust approaches to community engagement

Status: Working on consolidating good practices globally, including channels for feedback and dialogue; building systematic, proactive, and effective approach to engaging with affected communities

Community Engagement - Indonesia

Description: Production sites have dedicated Stakeholder Engagement Manager responsible for collecting feedback from community and addressing issues raised.

Scope: Own operations (Indonesia production sites)

Process:

1. Analysis: Feedback reviewed to identify key areas for improvement
2. Action Planning: Initiatives adjusted based on insights
3. Implementation: Changes integrated into processes
4. Monitoring: Effectiveness monitored
5. Continuous Improvement: Ongoing iterative improvements

Example outcome: At Langkat site, after feedback about communication gaps and delays, implemented weekly progress updates, adjusted project management processes, leading to increased stakeholder satisfaction and reduction in project delays

Site-Level Grievance Mechanisms

Description: Local mechanisms for community members to raise concerns and complaints.

Scope: Own operations (specific sites)

Examples:

• Évian: Grievance mechanism to register community complaints for management team to address
• Wexford, Ireland: Signage with contact details posted outside production site gates; community liaison officer as dedicated point of contact

Livelihoods Carbon Funds

Description: Impact investment funds to restore natural ecosystems, combat climate change, and improve living conditions for local communities.

Scope: Upstream value chain (Africa, Asia, Latin America)

Three funds:

• Livelihoods Carbon Fund (created 2011, 10 private investors)
• Livelihoods Carbon Fund 2 (created 2017, 8 investors)
• Livelihoods Carbon Fund 3 (created 2021, 15 companies and financial investors)

Project types:

• Restoration and preservation of natural ecosystems
• Agroforestry and soil restoration through regenerative agricultural practices
• Access to rural energy to reduce deforestation and toxic smoke for rural households

Mechanism: Carbon credits generated by projects are certified and allocated to investors in proportion to investments

Resources: Investment vehicle structure (amounts not specified)

Livelihoods Fund for Family Farming (L3F)

Description: Impact investment vehicle launched by Danone and Mars, in collaboration with Veolia and Firmenich, to address environmental degradation, climate change, and rural poverty.

Scope: Upstream value chain (small farmers)

Objectives:

• Enable companies to secure supply (quality and quantity)
• Grant small farmers access to more sustainable practices, including regenerative agriculture
• Facilitate higher revenues for farmers through market connections
• Preserve ecosystems through farming practices combining productivity and environmental respect

Resources: Investment vehicle (amounts not specified)

Danone Ethics Line (DEL)

Description: Anonymous and confidential channel for affected communities to raise concerns about Danone.

Scope: Global

Access: Available worldwide 24/7 via internet (www.danoneethicsline.com) or phone in 56 languages

Target: Open to all stakeholders including affected communities

Policies related to consumers and end-users

Danone has disclosed several policies relevant to consumers and end-users under ESRS S4-1, primarily focused on quality, food safety, and health & nutrition.

Danone Quality and Food Safety Commitments

Governance and approval:

• Endorsed by the Executive Committee (renewed in 2024)

Scope:

• Applies to Danone, its Subsidiaries, Suppliers and Subcontractors worldwide

Related policies and documents: The Quality and Food Safety commitments are supported by:

• Danone Quality and Food Safety Manual (2019), which describes the Group's operations regarding Quality and Food Safety
• Danone's Food Safety Policy (2023), which refers to Danone's Food Safety Management System aligned with ISO 22000 and FSSC 22000 operating guidelines

Policy for the Marketing of Breast-Milk Substitutes

Date: 2018

Purpose: Frames Danone's mission to impact employees' and consumers' health locally

Policy on Marketing to Children

Date: 2024

Purpose: Frames Danone's mission to impact employees' and consumers' health locally

Policy on the Nutritional Principles for the Use of Health & Nutrition Claims

Date: 2023

Purpose: Frames Danone's mission to impact employees' and consumers' health locally

Nutritional Quality Guidelines for Food: Danone's nutritional targets

Date: 2023

Purpose: Frames Danone's mission to impact employees' and consumers' health locally and relates to the material impact of providing consumers with healthy and affordable products (2023). It describes Danone's approach to providing access, both physically and in terms of price, to healthy food and drinking water, so that consumers in general, and vulnerable populations in particular, can enjoy a healthy, balanced diet.

Global Data Protection Policy

Date: 2023

Scope:

• Applicable to all employees worldwide

Key content:

• Sets out the principles and standards employees must comply with when processing personal data

Related policy:

• Danone Personal Data Privacy Policy (2023): Published in 2016, defines Danone's commitment to processing personal data in a fair, lawful, and transparent manner, in compliance with regional key protection data regulation. It applies to all Danone entities worldwide, including subsidiaries and affiliates that are majority owned or effectively controlled by the Group, and all their employees. The policy establishes the rules and responsibilities that employees and any third parties processing personal data on Danone's behalf must abide by when managing personal data.

Actions related to implementation:

• Regularly assessing risks relating to personal data protection at local Business Units
• Integrating personal data protection into the annual control plan of the internal audit and internal control teams
• Auditing data security annually via the internal audit team and automated analysis
• External Cybersecurity experts ensure that weaknesses in Danone's data security are detected and external ethical hacking campaigns are conducted annually
• Comprehensive compliance training program incorporating a mandatory annual compliance fundamentals e-learning course for all employees with access to a laptop with a whole section dedicated to Data Privacy
• More dedicated training for EU employees subject to the European General Data Protection Regulation (GDPR)

Monitoring:

• In 2024, 98% of employees took the annual compliance fundamentals e-learning that includes Data Privacy matters
• Corporate Personal Data Breach Handling Procedure provides the steps to be taken to make sure that possible personal data breaches within Danone or affecting Danone Personal Data are handled in a compliant and effective way

Taking action on material impacts on consumers

The excerpts provided reference policies and governance related to consumers (quality and food safety, health & nutrition) but do not disclose specific actions, programmes, or initiatives as required by ESRS S4-4.

Governance and Policy Framework

• Product Compliance Review Board: Established in 2024, tasked with designing the product compliance framework (focus on risk prevention and management)
• Sustainable Sourcing Policy (SSP): Published June 2024 as an upgrade of Sustainability Principles; to be gradually deployed to reach 100% of suppliers by 2030
• Quality management system: Continuous strengthening with focus on risk prevention and management

Industry Collaboration on Consumer Health and Safety

• FoodDrinkEurope (FDE): Participation to ensure consumer safety on issues such as contaminants, allergens and packaging materials in contact with food
• CGF "Collaboration for healthier lives": Co-chaired by Danone; focuses on improving consumer access to healthier, more sustainable products and influencing consumer behavior
• EU Pledge: Founding member; voluntary framework for responsible marketing to children under-13s in the European Union

Climate-related Actions Affecting Consumers

• 2030 mid-term and 2050 Net-Zero targets: Validated by Science Based Targets initiative (SBTi) in 2024, aligned with 1.5°C pathway
• Climate-related physical risks assessment covering agricultural commodities and sites

No specific action details (scope, time horizons, quantified resources, expected outcomes, or KPIs) are disclosed for consumer-focused actions in the provided excerpts.

Incidents of corruption or bribery

Confirmed incidents

In 2024, Danone received 1,118 concerns on various issues, including workplace people-related issues, corruption and fraud (compared to 902 in 2023). None of these cases had a material impact on the Group's consolidated financial statements.

Convictions and fines

There has been no convictions nor fines for violation of anti-corruption and anti-bribery laws in 2024.

No significant fines have been reported to the Group through the litigation report channel in relation to human rights, sanctions and compensation.

Third-party vetting

In 2024, 38,682 new third parties were vetted through Danone's dedicated Third Party Vetting digital solution (164,856 in total since 2020). Among them:

• 91.8% were approved (98.7% in 2023)
• 1.8% were approved with mitigation (1.1% in 2023)
• 0.2% were rejected (0.2% in 2023)
• The rest of the third parties are still in the process

Investigation procedures and speak-up mechanisms

Danone Ethics Line (DEL)

Since 2017, the Danone Ethics Line has enabled whistleblowers to report concerns about any existing or potential wrongdoing in breach of the Danone Code of Business Conduct, including suspected human rights violations and environmental breaches.

Investigation process

The Group has procedures in place to investigate business conduct incidents, including incidents of corruption and bribery, in a prompt, independent and objective manner. Each alert is initially reviewed by the Global Compliance team responsible for the management of the Danone Ethics Line and/or the Global Human Resources Compliance and Labor Law team. Depending on the alert, a decision will be taken to appoint an independent internal or external investigator, as necessary.

Concerns raised through the Danone Ethics Line and failures to comply identified during the Group's controls and audits result in mitigation plans overseen by the Danone Ethics Line Committee and local management. These mitigation plans may involve process improvements, disciplinary action, training and communication initiatives, and enhanced monitoring by the Compliance team.

Accessibility

• Available in 56 languages
• Available around the clock, every day of the year
• Accessible through digital platform or by telephone
• Anonymous reporting is permitted
• QR code included in Code of Conduct, Integrity Policy and Health Care Systems Compliance Policy

Awareness

In the 2023 Danone People Survey, more than 80% of respondents said they knew how to report concerns via the DEL. In 2024, 81% answered that they would feel comfortable/rather comfortable using the DEL.

Political influence and lobbying activities

Political engagement approach

Danone engages with governmental and non-governmental stakeholders, as a group or industry member, to build common ground and drive collaboration to deliver on its Danone Impact Journey sustainability roadmap. The Group is committed to sustainable lobbying and advocacy activities, working with others to find solutions to the public health, social, and environmental challenges the world is currently facing.

Danone's Public Affairs and Compliance teams are co-responsible for the global oversight and management of Danone's advocacy and lobbying activities. Local Public Affairs managers are held accountable for their advocacy activities. Advocacy is under the governance of Danone's General Secretary, part of Danone's leadership team and member of the Executive Committee.

Lobby and advocacy is conducted in accordance with the Group's policies and positions on health, environmental and social matters. All policies and positions are reviewed by the Corporate Policies and Positions Committee, which meets quarterly under the leadership of the General Secretary and the Chief Human Resources, Research, Innovation, Quality and Food Safety Officer. An update on Danone policies on health, environmental and social issues is presented annually at the meeting of the CSR Committee of the Board of Directors. Advocacy and engagement activities are reviewed by the Global Engagement Committee, which brings together investor relations, sustainable finance, communications, public affairs, legal and sustainability representatives every two months.

Danone interacts with governmental and non-governmental stakeholders as part of its dialogue with stakeholders and in the regular course of business to fulfil its purpose of "bringing health through food to as many people as possible". When the Group engages in advocacy activities, it does so with the interests of the consumer in mind and with the goal of meeting public health objectives.

Ethical standards and guidelines

Advocacy Policy

The Advocacy Policy published in 2023 outlines the Group's approach to engaging with external stakeholders, including governmental and non-governmental entities. The policy sets out the behaviors expected of its employees and emphasizes that all advocacy efforts must comply with the Code of Business Conduct and the Integrity Policy, in addition to all applicable national and international laws and regulations. The policy also describes how Danone's advocacy activities are monitored and the external reporting linked to its advocacy.

All lobbying and advocacy conducted by Danone employees, or agencies or consultants working on behalf of Danone, must fully comply with all national and international laws and regulations, as well as Danone's Advocacy Policy, Danone's Code of Business Conduct, Danone's Integrity Policy, and a number of other relevant internal policies which are outlined in the Advocacy Policy.

Regular trainings by the Public Affairs and Compliance teams ensure that professionals are well-versed in advocacy practices and rules, and understand Danone's advocacy goals and positions on specific topics.

Stakeholder Engagement Policy

In 2024, Danone drew up a Stakeholder Engagement Policy, applicable to all employees, notably those who interact with specific groups such as authorities, policymakers, organizations, and customers, across all subsidiaries and markets. This policy outlines Danone's approach and key principles to gather and consider stakeholders' feedback in the Group decision-making processes.

Political contributions

Danone does not engage in political contributions to political parties, elected representatives and political candidates seeking office, or associations or foundations owned or controlled by such. This includes prohibiting donations, loans, sponsorships, retainers or purchase of tickets/events. It also includes a ban on in-kind contributions including goods and services such as advertising, use of facilities, design and printing, and donation of equipment.

Danone does not use any corporate funds or assets to make political contributions or independent expenditures on behalf of candidates or parties.

Beyond not making any political contributions, Danone does not support political parties, candidates or any groups that promote a political party's interests in any other form.

Compliance is ensured via DICE (the Danone Internal Control Evaluation framework) where donations are monitored and controlled annually by internal control and subject to internal audits on a periodic basis. All donations are subject to Danone's Integrity Policy, Healthcare Compliance Policy and Third-Party Vetting Policy, with any donations classified as "high risk" undergoing a compliance review.

Trade association memberships

Local public affairs professionals are expected to maintain a register of all their engagements with government officials, which are reported externally in accordance with applicable lobbying legal frameworks (including the EU Transparency Register, the HATVP and US registers of interest representatives). Danone's Public Affairs professionals also maintain a register of trade association memberships which are consolidated at group level and reviewed regularly to ensure alignment with Danone's advocacy goals.

In 2024, 75% of countries in which Danone operates maintained a detailed and up-to-date register of all engagements with government officials. 87% of entities engaged with policymakers or stakeholders (either directly or via trade associations or coalitions) to influence public policies and the regulatory environment to improve the country's social, health, or environmental standards. Information on both topics is collated at global level via the Danone Way Program.

Transparency registers

Danone is listed in the EU Transparency Register, as well as the French Haute Autorité Française pour la Transparence de la Vie Publique (HATVP) and US registers of interest representatives.

Focus areas

Danone is committed to lobbying only in support of measures to improve health and nutrition, consistent with public interest and nutrition. Danone wants to and can have a positive impact on nutrition and health, helping to meet public health goals (including tackling obesity, malnutrition and under nutrition), and supporting the health and nutrition of mothers and infants from the youngest age.

Danone advocates and partners with others on several sustainability topics which are fundamental to Danone's long-term success and to people, society and the environment. All key topics Danone engages on are in line with Danone's material analysis results. These include climate change, regenerative agriculture, watershed preservation and restoration, and circular economy and waste reduction.

Danone is committed to conducting advocacy in line with the Paris Agreement and in line with Danone's Climate Policy goals, notably to restrict global temperature rise to 1.5°C. Danone's 2023 Position on Climate Advocacy sets out the Group's commitments, public policy positions and governance on this important issue.

Breastfeeding advocacy

Whether working at global or local level, Danone is committed to fostering a proactive, constructive and evidence-based dialogue supporting breastfeeding around the world – not undermining public policy frameworks that serve this purpose – while endorsing the principles of openness, transparency and integrity in Danone's advocacy activities.

Danone is determined to support the design and implementation of advocacy initiatives in every country where it operates, with the aim of helping to create an environment where all parents feel informed and supported on all issues relating to infant nutrition.

Business conduct policies and corporate culture

Compliance Framework Policy

Name: Compliance Framework Policy

Overview: Updated in 2024, this policy sets out the principles, scope, and setup of the Compliance Framework in relation to standards, responsibilities, organization and process.

Scope: Applies to all employees, subsidiaries, and companies controlled by the Group.

Governance: The Corporate Compliance and Ethics Board supervises Danone's worldwide Compliance Program, chaired by the Chief Compliance Officer. The program is approved and supported by the Chief Executive Officer and Executive Committee, and reviewed at least twice a year by the Audit Committee.

Key content: Describes the whistleblowing mechanism (Danone Ethics Line - DEL), which encourages all employees to report concerns about any actual or potential wrongdoing in breach of Danone's Code of Business Conduct.

Monitoring: Local Compliance Officers and Local Compliance Committees, chaired by local General Managers, oversee implementation globally.

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Code of Business Conduct

Name: Code of Business Conduct

Overview: Updated in 2022, translated into 34 languages.

Scope: Applies to all employees, subsidiaries, companies controlled by the Group, and in some cases business partners.

Governance: Overseen by the Chief Compliance Officer and the Corporate Compliance and Ethics Board.

Key content: Covers responsible practices including anti-corruption, conflicts of interest, confidentiality, fraud, money laundering, interactions with government officials, international trade sanctions, competition, data protection, human rights, and the environment. Includes protection of individuals who raise concerns.

International alignment: Based on principles derived from:

• Universal Declaration of Human Rights
• Fundamental Conventions of the International Labour Organization
• OECD Guidelines for Multinational Enterprises
• United Nations Global Compact on human rights, labor standards, environmental protection and anti-corruption

Public availability: Available on Danone's internal and external website.

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Integrity Policy

Name: Integrity Policy

Overview: Updated in 2022, translated into 34 languages.

Scope: Applies to all Danone employees worldwide.

Key content: Defines rules and responsibilities governing employee conduct with respect to bribery and corruption, gifts and hospitality, sponsorship, donations and grants, interactions with government officials and healthcare professionals, advocacy, conflicts of interest, money laundering, fraud, and third party vetting.

Public availability: Available on Danone's website and intranet.

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Third Party Vetting Compliance Policy

Name: Third Party Vetting Compliance Policy

Overview: Established in 2020.

Scope: Applies to all third parties.

Key content: Outlines the due diligence Danone performs on business partners to evaluate and address potential risks related to corruption, bribery, international trade sanctions, and any other criminal or unethical activity.

Public availability: Available on Danone's website.

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Code of Conduct for Business Partners

Name: Code of Conduct for Business Partners

Overview: Updated in 2022.

Scope: Applies to all business partners.

Key content: Ensures that Danone's business partners comply with applicable laws on bribery and corruption, money laundering, unfair competition, and international trade sanctions.

Public availability: Available on Danone's website.

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Purchasing Policy

Name: Purchasing Policy

Overview: Published in 2024.

Key content: Describes how goods (including raw and packaging materials) and/or services are procured within Danone.

Public availability: Available on Danone's website.

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Competition Policy

Name: Competition Policy

Key content: Defines Danone's commitment to engaging in fair competition on the merits in all business activities in compliance with all applicable competition laws.

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International Trade Sanctions Policy

Name: International Trade Sanctions Policy

Key content: Defines Danone's commitment to complying with trade, financial and other restrictions imposed by national governments and international bodies on certain sanctioned countries, entities and/or individuals.

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Healthcare System Compliance Policy

Name: Healthcare System Compliance Policy

Scope: Applies to all employees and contracted partners who engage with Danone's healthcare ecosystem.

Key content: Ensures that all interactions with healthcare professionals (HCPs) and healthcare organizations (HCOs) are conducted ethically, transparently, and in compliance with applicable laws and regulations. Outlines guidelines for organizing events, contracting with HCPs, offering sponsorships, grants and donations, and specific rules regarding gifts and hospitality to avoid conflicts of interest.

Monitoring: Proper documentation, books and records are maintained to ensure transparency and accountability.

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Personal Data Privacy Policy

Name: Personal Data Privacy Policy

Overview: Published in 2016.

Scope: Applies to all Danone entities worldwide, including subsidiaries and affiliates that are majority owned or effectively controlled by the Group, and all their employees.

Key content: Defines Danone's commitment to processing personal data in a fair, lawful, and transparent manner, in compliance with regional key protection data regulation. Establishes rules and responsibilities that employees and any third parties processing personal data on Danone's behalf must abide by when managing personal data.

Monitoring: Regular risk assessments relating to personal data protection; integration into annual control plans; annual auditing via internal audit and automated analysis; external cybersecurity expert reviews; mandatory compliance e-learning for all employees with laptop access (98% completion rate in 2024).

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Advocacy Policy

Name: Advocacy Policy

Overview: Published in 2023.

Scope: Applies to all employees, notably those who interact with authorities, policymakers, organizations, and customers.

Governance: Overseen by Danone's General Secretary, part of the leadership team and member of the Executive Committee. Public Affairs and Compliance teams are co-responsible for global oversight and management.

Key content: Outlines the Group's approach to engaging with external stakeholders, including governmental and non-governmental entities. Emphasizes that Danone does not make political contributions to political parties, elected representatives or candidates. Sets out expected behaviors and emphasizes compliance with the Code of Business Conduct and Integrity Policy, plus all applicable laws and regulations. Describes how advocacy activities are monitored and externally reported.

International alignment: All lobbying and advocacy must comply with all national and international laws and regulations.

Monitoring: Local public affairs professionals maintain registers of all engagements with government officials, reported externally via EU Transparency Register, French HATVP, and US registers. Trade association memberships are consolidated at group level and reviewed regularly. Training provided by Public Affairs and Compliance teams. Activities reviewed by Global Engagement Committee bi-monthly.

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Stakeholder Engagement Policy

Name: Stakeholder Engagement Policy

Overview: Drawn up in 2024.

Scope: Applicable to all employees, notably those who interact with specific groups such as authorities, policymakers, organizations, and customers, across all subsidiaries and markets.

Key content: Outlines Danone's approach and key principles to gather and consider stakeholders' feedback in the Group decision-making processes.

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Disciplinary Code for Business Conduct Breach

Name: Disciplinary Code for Business Conduct Breach

Overview: Established in 2024.

Scope: Applies to all employees.

Key content: Ensures the Group appropriately and fairly sanctions any unethical behavior and any breach of its Code of Business Conduct.

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Corporate Culture

Danone is committed to building and promoting a corporate culture based on trust, where performance and sustainability go hand in hand. In 2022, Danone updated its culture through the "Renew Danone" strategy following interviews, workshops, and a Culture Survey conducted across all Zones and Functions.

HOPE Values: The Group has strengthened awareness of its four fundamental values (Humanism, Openness, Proximity, Enthusiasm) that serve as a moral compass for decision-making.

Danone Behaviors: A new set of behaviors was launched critical to achieving strategy objectives:

• Put Danone first: Consumers, patients and customers are at the center
• Lead with people: Grow as leaders by developing others
• Keep it simple: Deal with complexity with focus and pragmatism
• Be accountable: Be decisive and fact-based
• Walk the talk: Do what we say, acting as role models

Monitoring: Through the Danone People Survey (DPS) and Pulse programs, all employees worldwide can express opinions and share beliefs. Results show increased familiarity with HOPE Values and Danone Behaviors, and perception that leaders follow them. These behaviors have been incorporated into HR processes including performance evaluation and talent acquisition.

Payment practices

Parent Company (Danone SA) Payment Terms

The following information relates to payment terms granted to suppliers and customers of the parent company Danone SA only, as disclosed in section 4.3 of the financial statements.

Supplier Payment Terms - As of December 31, 2024

Overdue invoices received and unpaid:

Excluded invoices (dispute/not recognized): 7,598 invoices totaling €7.2 million

Benchmark payment terms: Contractual terms of 60 days from invoice date, in the absence of statutory terms

Customer Payment Terms - As of December 31, 2023

Overdue invoices issued and unpaid:

Excluded invoices (dispute/not recognized): 0 invoices totaling €0 million

Benchmark payment terms: Contractual terms of 30 days from end of month of invoice

Group-wide Payment Practices

The document indicates that customer payment terms are generally 30 days. The Group's main customers operate predominantly in the mass-market retail sector where credit risk is considered low.

Reverse factoring programs are used by Danone in the normal course of business for approved invoices only, with payment by Danone in accordance with invoice terms and due dates, at no cost to Danone. As of December 31, 2024, these programs are considered not material and do not have a material impact on the Group's exposure to liquidity risk.

Factoring programs (non-recourse) for trade receivables were also considered not material as of December 31, 2024.