DANONE’S CONTRIBUTION TO UN’S GOALS

2019 PERFORMANCE

1 DANONE’S CONTRIBUTION TO THE SUSTAINABLE DEVELOPMENT GOALS

In 2018, we have defined Danone 2030 Goals aligned with the 2030 United Nations Sustainable Development Goals (SDGs), thus adopting a language that is universally understood. While defining our 2030 Goals, we worked on prioritizing our contribution to the SDGs according to the direct and indirect impact that we have on the issues they raise, and we selected the relevant SDGs targets.

We are fully committed to the selected SDGs and our contribution is structured as shown on the image hereinafter:

MAJOR FOCUS SDGs: COMMITMENTS SDGs: we logically focus our efforts on we committed on these SDGs the SDGs on which Danone’s related to Danone’s activities activities have a direct impact with a moderate impact based either because they relate to our on our material mission, to our products or to topics and the major initiatives our industry. we supported in the last years.

Disclaimer The present document does not include the exhaustive information in regard to Danone’s contribution to the UN’s Sustainable Development Goals. To learn more, refer to https://www.danone.com/impact/un-sustainable-developement-goals.html

2 PRELIMINARY INFORMATION

IN THE FOLLOWING PAGES, THESE PICTOGRAMS WILL BE REPRESENTING THE MAIN STAKEHOLDERS WE ARE CREATING SUSTAINABLE VALUE FOR:

Employees: Community: Business Partners: Consumers: Planet: people working under Danone’s people benefiting directly or a company, a group of industry individuals targeted by Danone’s the natural ecosystems and their management and employee indirectly from an action or a peers or a public or private products portfolio, through direct resources. representatives. project from Danone, its brands or organization with whom we carry or indirect act of purchase, its social innovation platforms. out a joint action or with whom we or beneficiaries from programs have a commercial relationship or initiatives we are supporting. (suppliers, retailers, etc.).

TARGETS SELECTED BEHIND EACH SDG KEY BUSINESS THEMES SELECTED INTERDEPENDENCY BETWEEN SDG 17 AND TO WHICH WE CONTRIBUTE BY DANONE FOR EACH SDGs THE OTHER SDGs TO WHICH WE CONTRIBUTE

Danone’s commitment to Danone’s contribution to SDG SDGs can only be tangible 17 is highlighted throughout if we keenly report on them. the document, through the To do so, we have selected initiatives and the actions specific SDGs targets within These themes have been defined by of the Company and its each SDG accordingly to their the SDG Compass in order to provide brands selected to illustrate relevance to our strategy and guidance for companies on how to the other SDGs to which we policies, and to our ability to manage and report their contribution commit. report on them. The selected to the SDGs. targets are specified in the following pages.

3 SELECTED SDG TARGETS SDGEnd poverty 1: NOin all itsPOVERTY forms everywhere Engagement of Danone: Commitment 1.2 1.4 1.5

MAIN INITIATIVES / BRANDS ACTIONS

KEY BUSINESS THEMES SELECTED BY DANONE GRAMEEN DANONE FOR THE SDG 1 The Danone Communities Fund supports Grameen Danone Foods, Ltd (GDFL) in Dhaka which aims to fight poverty and malnutrition in Bangladesh and to create • Availability of products and • Economic development positive social impact throughout its value cycle. services for those in areas of high priority on low incomes • Access to quality essential © Sandro di Carlo Darsa • Earning, wages and benefits health care services MADRE TIERRA “Madre Tierra” is a project with small strawberry producers in Mexico, co-built with the Danone Ecosystem Fund and 2019 KEY PERFORMANCE INDICATORS other public and private players. It was developed with the objective to regenerate soils and to develop and protect natural resources and farmers’ communities.

ARAKU 6 millionbeneficiaries in total of the Danone The Livelihoods Carbon Fund, an impact investment fund Communities Fund. supported by private companies, and the Naandi foundation, an Indian NGO, join forces to support 40,000 women and men farmers in their transition to sustainable farming. Trees, pulses and millets, coffee, fodder, fuelwood: welcome in a

© David Hogg/Naandi Foundation collective movement where every square centimeter of 18,000 hectares of the Araku Valley will be transitioned to sustainable agricultural practices. 1,500,000people positively 62,331professionally impacted by the empowered people Livelihoods Carbon by the Danone Fund compartment 1 Ecosystem Fund. (LCF1) since 2011. STAKEHOLDERS DIRECTLY Community Business partners IMPACTED

4 SELECTED SDG TARGETS EndSDG hunger, 2: achieveZERO food HUNGER security and improved nutrition and promote 2.2 2.3 2.4 2.5 Engagement of Danone: Major Focus

MAIN INITIATIVES / BRANDS ACTIONS

KEY BUSINESS THEMES SELECTED BY DANONE FOR THE SDG 2

• An end to malnutrition in all its • An end to rural poverty: double forms small-scale producer incomes FOSTER SUSTAINABLE DIETS AND • Access adequate food and and productivity FOOD SYSTEMS WORLDWIDE Danone has signed a Memorandum of healthy diets, for all people, all • All food systems are sustainable, Understanding with the UN’s Food and year round from production to consumption Agriculture Organization (FAO) to improve global SUSTAINABLE PRODUCTS nutrition, encourage more diverse and healthier 2019 KEY PERFORMANCE INDICATORS PORTFOLIO diets, and promote responsible farming. Through our One Planet. One Health vision, we are convinced that the health of the people and the health of the planet are 300,000 interconnected. Our strategy consists in beneficiaries in the fight offering a sustainable portfolio of products ONE PLANET BUSINESS FOR against malnutrition that contribute to a balanced diet while limiting (OP2B) and poverty from social our impact on the planet. We want to be Danone co-built with the World Business Council businesses supported by at the heart of the ongoing food revolution Danone Communities for Sustainable Development (WBCSD) the and we believe that global food and retail Fund. ‘One Planet Business for Biodiversity’ (OP2B) companies can play an important role through business coalition which unites about 20 leading a transformation of their business models, companies that aim to protect and restore moving away from standardized food systems cultivated and natural biodiversity. of fresh milk81% volume worldwide of total milk28% collected directly to new models based on local diets and is assessed through Danone’s by Danone comes from leveraging local sourcing. animal assessment tool producers working with Danone or via Validus Animal Welfare under long-term contracts, certification in Essential Dairy & also called Cost-Performance Plant-Based Business. Model contracts. STAKEHOLDERS DIRECTLY Community Business Consumers Planet IMPACTED partners

5 SDG 3: GOOD HEALTH SELECTED SDG TARGETS 3.2 3.4 3.8 ANDEnsure healthy WELL-BEING lives and promote well-being for all at all ages Engagement of Danone: Major Focus

MAIN INITIATIVES / BRANDS ACTIONS

KEY BUSINESS THEMES SELECTED BY DANONE DANONE’S SPECIALIZED NUTRITION BUSINESS: FOR THE SDG 3 The Specialized Nutrition Business develops and sells products for individuals with specific nutritional needs across the full • Support the delivery of health • Ensure occupational health and life span – from preterm birth until old age. The strength of needs around the world through safety practices and provision of its model lies in its extensive scientific and research expertise, their products, services and employee benefits a collaborative approach to innovation, and an in-depth business activities understanding of specific nutritional needs, which enable the development of products and services that have a positive impact on people’s health. 2019 KEY PERFORMANCE INDICATORS COLLABORATION FOR HEALTHIER LIVES: The Collaboration for Healthier Lives working group initiated by the Consumer Goods Forum, co-chaired by Danone and Walmart, oversees the design and execution of several collaborative models to help us learn more about how retailers and manufacturers can jointly active education23 and create healthier practices and encourage consumers to live healthier information programs as well as work collaboratively with authorities. potentially reaching more than 12 M people ALIMENTANDO EL CAMBIO, EMPOWERING KIDS TO since their launch. IMPROVE THEIR EATING AND DRINKING HABITS IN SPAIN: The ‘Alimentando el Cambio’ initiative was co-created by Ashoka, the Ministry of Education, the Spanish Society for the Study of Obesity - SEEDO, and Danone. It aims to promote healthier and more sustainable eating habits for kids, enabling a future employees99,627 in more of90% volumes than 53 countries have generation with the knowledge and tools necessary to improve of products sold in healthcare coverage in their lives, the lives of others and the well-being of the planet. 2019 were in healthy line with the standards categories. defined by Dan’Cares. STAKEHOLDERS DIRECTLY Employees Community Consumers Planet IMPACTED

6 SELECTED SDG TARGETS SDGAchieve 5:gender GENDER equality and EQUALITYempower all women and girls 5.1 5.5 Engagement of Danone: Commitment

MAIN INITIATIVES / BRANDS ACTIONS

KEY BUSINESS THEMES SELECTED BY DANONE FOR THE SDG 5

• Equal remuneration for women • Women in leadership HEFORSHE – EMMANUEL FABER - BONAFONT’S SUPPORT TO WOMEN and men • Childcare services and benefits UN THEMATIC CHAMPION EMPOWERMENT • Diversity and equal opportunity Our commitment to gender equality was Bonafont, a Mexican Danone water brand, is acting recognized by the United Nations in March to decrease prejudice against women and fight 2017 when Emmanuel Faber was named a for gender equality in Mexico. The brand partners 2019 KEY PERFORMANCE INDICATORS UN Women’s HeForShe Thematic Champion with UN Women is committing to support equal on the occasion of the launch of our Global opportunities for men and women, through a Parental Policy that marked a milestone for three-year action plan. As part of this partnership, the Company. It reflects our pioneering work HeForShe special edition bottles were sold to around women’s empowerment, both through contribute to equal opportunities and 100% of the Danone’s own Human Resources programs as earnings was donated to UN Women to develop a of women51% among well as broader initiatives that mobilize other training to enable entrepreneurial women. our managers, companies to address gender equality. directors and executives. DANONE ECOSYSTEM FUND: ‘STAND BY MUMS’, SUPPORTING MOTHERHOOD IN ROMANIA To support motherhood in Romania, Stand by Mums project, supported by the Danone Ecosystem Fund, develops a network of Perinatal Educators so as to enable young of women39,007 professionally 18 parents and pregnant women to make educated choices countries have empowered through implemented the Danone Ecosystem about nutritional and perinatal care for both their babies and Danone’s Global Fund in 2019. themselves. Parental Policy.

STAKEHOLDERS DIRECTLY Employees Community Consumers IMPACTED

7 SDG 6: CLEAN WATER SELECTED SDG TARGETS 6.1 6.2 6.3 6.4 6.5 6.6 EnsureAND availability SANITATION and sustainable management of water and sanitation for all Engagement of Danone: Major Focus

MAIN INITIATIVES / BRANDS ACTIONS KEY BUSINESS THEMES SELECTED BY DANONE FOR THE SDG 6

• Improved • Equal, affordable, and safe access through application of 5R to water, sanitation, and hygiene principles: reduce, reuse, recover, for employees and communities WEACTFORWATER AQUA - AS A MANIFESTO BRAND recycle, replenish • Protection of water-related The collective of our water brands taking In Indonesia, where a wide part of the population does ecosystems and biodiversity major steps to tackle global water challenges not have access to safe drinking water, AQUA is working and water access in the communities where on providing access to quality water. Launched in 1973 we operate. It is a set of urgent actions, with goodness in mind, the brand is the #1 bottled water 2019 KEY PERFORMANCE INDICATORS ambitious objectives, and new investments in brand in Indonesia. It was consumed by more than 160 regard to , packaging, water million consumers last year. For more than 47 years, access and water preservation. AQUA has been a progressive brand that commits to Indonesian people’s well-being while preserving

Indonesia’ s environment.

WATER KIOSK MODEL – DRINKWELL Under the Danone Communities Fund’s water kiosk of reduction49% of water >beneficiaries 5,000,000 with access concept, kiosk owners sell affordable, safe drinking water consumption intensity to safe drinking water to people living in their community. For instance, this in production sites (in from social businesses Fund has supported Drinkwell, a technology-driven social m3/Tons of products) supported by Danone enterprise in Bangladesh which model is based on low- (Baseline 2000). Communities Fund. cost, high-efficiency water kiosks connected to the main water city network through Public Private partnership, © Sandro di Carlo Darsa incorporating innovative filtration systems, and operated by entrepreneurs as sustainable companies.

STAKEHOLDERS DIRECTLY Employees Community Planet IMPACTED

8 SDG 7: AFFORDABLE SELECTED SDG TARGETS 7.2 7.3 ANDEnsure access CLEAN to affordabe, ENERGY reliable, sustainable and modern energy for all Engagement of Danone: Commitment

MAIN INITIATIVES / BRANDS ACTIONS KEY BUSINESS THEMES SELECTED BY DANONE FOR THE SDG 7

• • Energy efficiency • Infrastructure investments • Environmental investments RE100 ENERGY EFFICIENCY IN OUR PRODUCTION SITES 2019 KEY PERFORMANCE INDICATORS In December 2017, Danone joined the RE100 initiative and made a commitment to transition From the ingredients we source to the processes

to 100% renewable electricity by 2030, with an in our manufacturing sites, we are constantly intermediary step of 50% by 2020. RE100 is a looking at ways to positively impact people’s global and collaborative initiative that includes health and to help preserve the planet’s resources. more than 100 influential companies committed Danone works towards becoming entirely of energy47% intensity to 100% renewable electricity. carbon neutral by 2050. In 2019, we opened our reduction in brand-new sustainable Nutricia Cuijk production production sites site for specialized infant formula. With this new (2000 baseline production site, we double our production capacity year). compared to the previous plant in the area, yet we significantly cut down on water and energy use, as well as CO₂ emissions.

42.4%of renewable of 19.7%total renewable electricity used in energy used in Danone production Danone production sites. sites.

STAKEHOLDERS DIRECTLY Planet IMPACTED

9 SDG 8: DECENT WORK AND SELECTED SDG TARGETS 8.5 8.7 8.8 PromoteECONOMIC sustained, inclusiveGROWTH and sustainable , full and productive employment and decent work for all Engagement of Danone: Major Focus

MAIN INITIATIVES / BRANDS ACTIONS KEY BUSINESS THEMES SELECTED BY DANONE FOR THE SDG 8

• Employment • Availability of a skilled workforce • Economic inclusion • Elimination of forced or • Non-discrimination compulsory labor BUSINESS FOR INCLUSIVE CONSUMER GOODS FORUM : • Capacity building GROWTH (B4IG) ELIMINATING FORCED LABOR The Business for Inclusive Growth (B4IG) FROM GLOBAL SUPPLY CHAINS initiative led by Danone with the OECD Since 2016, Danone has joined the Consumer 2019 KEY PERFORMANCE INDICATORS to promote inclusive growth resulted in Goods Forum (CGF) initiative aimed at eliminating the launch of a coalition of international forced labor in global supply chains by the end companies at the G7 in Biarritz in August 2019. of 2020. Danone pledged to adopt appropriate The members of this coalition (40 at the end policies to embed the priority industry principles of 2019) signed a pledge to demonstrate throughout its own operation and supply chains their commitment to fighting inequalities and through concrete actions. worldwide10 promoting inclusive growth. agreements signed between Danone and the International CARTONEROS – ARGENTINA Union of Food To support the development of the recycling industry and Workers. improve working and living conditions for waste pickers in Argentina, the Cartoneros project, supported by the Danone Ecosystem Fund, is investing in infrastructure, such as of62,331 professionally farms1,180 connected to equipment in existing plants in Buenos Aires, and in a new empowered people markets or supply sorting and recycling center in Mendoza. by the Danone chains of investors Ecosystem Fund. in Livelihoods Fund © Jean Christophe Laugee for Family Farming.

STAKEHOLDERS

DIRECTLY Employees Community Business IMPACTED partners

10 SDG 12: RESPONSIBLE SELECTED SDG TARGETS CONSUMPTION AND 12.2 12.3 12.5 12.6 12.7 12.8

PRODUCTIONEnsure and production patterns Engagement of Danone: Major Focus

MAIN INITIATIVES / BRANDS ACTIONS KEY BUSINESS THEMES SELECTED BY DANONE FOR THE SDG 12

• Sustainable sourcing • Procurement recycling • of products • Product and service information and services and labeling • Material recycling

2019 KEY PERFORMANCE INDICATORS

OUR B CORPTM AMBITION REINVENTING SUSTAINABLE Our ambition to become a certified B CorpTM is probably SHOPPING: SHOP, RETURN, the best expression of our long-term commitment to create REPEAT! Danone20 entities of Danone’s81% total and share sustainable value for all. In today’s world, big The Company is developing reusable B CorpTM certified and packaging is companies and their brands are fundamentally challenged packaging as well as innovative over 1/3 of Danone’s recyclable, reusable or as to whose interest they really serve. B CorpTM certification distribution and consumption models. consolidated sales is compostable. is a mark of trust for entities demonstrating high standards of By participating in the global purchasing covered by the social and environmental performance. In addition to the system LoopTM in partnership with TM B Corp B CorpTM certification, Danone is also collaborating with B lab® Terracycle, Danone provides consumers certification. to advance towards the SDGs notably by participating to the with access to a variety of products in SDG Action Manager developed by the United Nations Global personalized, Compact (UNGC). that are collected, cleaned, filled and reused.

STAKEHOLDERS DIRECTLY Employees Business Consumers Planet IMPACTED partners

11 SELECTED SDG TARGETS SDGTake urgent 13: action CLIMATE to combat climate ACTION change and its impacts 13.1 13.2 Engagement of Danone: Major Focus

MAIN INITIATIVES / BRANDS ACTIONS

KEY BUSINESS THEMES SELECTED BY DANONE FOR THE SDG 13

• Energy efficiency • Environmental investments • GHG emissions • Risks and opportunities due to

2019 KEY PERFORMANCE INDICATORS CARBON ADJUSTED RECURRING EPS WATERS BUSINESS ENTITIES In 2019, Danone showed for the first time a “carbon- HAVE PLEDGED TO ACHIEVE adjusted” recurring earnings per share (EPS) evolution CARBON NEUTRALITY: PEAK REACHED for full scope carbon that takes into account an estimated financial cost for evian and Volvic by 2020, Lanjarón by 2025 emissions the absolute GHG emissions on its entire value chain. and Font Vella by 2030.

FIVE YEARS AHEAD of plan and one year TRANSFORMATION ACCELERATOR PLAN ahead of the Danone is stepping up the speed and is increasing the scenario. depth of its transformation actions to put climate further 1.5°C at the core of its growth model. This will translate into an accelerated investment plan of around €2 billion cumulative over the 2020-2022 period on brands, climate and agriculture, packaging (about €900 million) reduction24.8% of GHG reduction29.1% of GHG emissions in intensity emissions in absolute and digitalization. on full scope (in g CO2 on scope 1 & 2 (in tons equivalent/Kg product) of CO₂) (Baseline 2015). (Baseline 2015). STAKEHOLDERS DIRECTLY Consumers Planet IMPACTED

12 SELECTED SDG TARGETS ConserveSDG 14: and LIFEsustainably BELOW use the oceans, WATER seas and marine resources for sustainable development 14.1 Engagement of Danone: Commitment

MAIN INITIATIVES / BRANDS ACTIONS

KEY BUSINESS THEMES SELECTED BY DANONE FOR THE SDG 14

• Environmental investments • Spills PARTNERSHIP BETWEEN DANONE • Sustainable sourcing AND LOOP INDUSTRIES • Water discharge to oceans In 2017, Danone forged a partnership with LOOP Industries. LOOP has developed a ground- breaking technology that enables a continuous 2019 KEY PERFORMANCE INDICATORS © The Ocean Cleanup loop for recycling at large scale, transforming all DANONE AQUA AND EVIAN types of PET waste into high quality plastic. PARTICIPATE IN THE RIVER CLEAN UP SYSTEM (RCS) INTERCEPTORTM 001 IN INDONESIA The Ocean Cleanup’s InterceptorTM is the of Danone’s67% plastic recycled16% PET used on world’s first scalable solution for removing packaging is average by the Waters ELLEN MACARTHUR FOUNDATION recyclable, reusable Business and 20.5% in plastic from rivers. Sharing decades of Danone has joined the Ellen MacArthur or compostable. countries where local packaging know-how, Danone, along with Foundation as ninth Global Partner to advance standards and regulations brands evian® and Aqua®, have been able . We aim to integrate circular allow for it. to help The Ocean Cleanup analyze and economy principles into our operations to an categorize the collected debris from the first even greater extent. We continue to work actively prototype in Indonesia, the River Clean Up with the EMF to promote the circular economy. System (RCS) InterceptorTM 001, as well as understand better the challenges in extracting and treating the waste that is recovered.

STAKEHOLDERS DIRECTLY Planet IMPACTED

13 SELECTED SDG TARGETS SDGProtect, restore15: LIFE and promote ON sustainableLAND use of terrestrial ecosystems, sustainably manage forests, 15.2 15.3 15.4 combat desertification and halt and reverse land degradation and halt biodiversity loss Engagement of Danone: Commitment

MAIN INITIATIVES / BRANDS ACTIONS KEY BUSINESS THEMES SELECTED BY DANONE FOR THE SDG 15 “FARMING FOR GENERATIONS” • Deforestation and forest • Mountain ecosystems Danone is part of “Farming for Generations”, a new alliance of agricultural sector leaders who come together in a unique degradation • Natural habitat degradation project to support farmers to adopt regenerative agricultural • Genetic diversity of farms and • Terrestrial and inland freshwater practices that preserve and renew our planet’s resources, domesticated animals ecosystems respect animal welfare and ensure the long-term economic • Landscapes forest management viability of farms for the next generations. and fiber sourcing SUSTAINABLE DAIRY PARTNERSHIP 2019 KEY PERFORMANCE INDICATORS In 2019, Danone helped define and design the Sustainable Dairy Partnership, which aims to develop a more sustainable dairy industry by requiring participating processors to address the prevention of deforestation and the protection of animal welfare and , as well as to ensure compliance with local legislation.

FUNDACIÓN VILLAVICENCIO: SAFEGUARDING 90% 126 BIODIVERSITY AND WATER RESOURCES of our paper and board million trees planted Fundación Villavicencio embodies Aguas Danone Argentina’s packaging is made since 2011 by the commitment to protecting water resources. Through it, the project of recycled or FSC Livelihoods Carbon helps to safeguard the ecosystem and its unique biodiversity— certified fibers. Fund. not only at Danone’s own sites but in other places as well—and

© Emilio Correa leaving our planet better than how we found it. Fundación Villavicencio focuses on making its actions self-sustainable.

STAKEHOLDERS DIRECTLY Community Business Planet IMPACTED partners

14 SDG 16: PEACE, JUSTICE AND SELECTED SDG TARGETS 16.5 16.7 STRONGPromote peaceful INSTITUTIONS and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels Engagement of Danone: Commitment

MAIN INITIATIVES / BRANDS ACTIONS KEY BUSINESS THEMES SELECTED BY DANONE FOR THE SDG 15

• Effective, accountable and • Anti-corruption transparent governance • Public access to information • Compliance with laws and • Inclusive decision making regulations

2019 KEY PERFORMANCE INDICATORS

Around SET OF COMPLIANCE POLICIES AND ONE PERSON. ONE VOICE. ONE PROCEDURES SHARE PROGRAM Danone works actively against corruption, Danone has organized a global consultation of employees90% took part of41,000 these employees payments in kind, conflicts of interest, theft, enabling employees to share their views of the in the second edition volunteered to analyze embezzlement, inappropriate use of company Company’s priorities and on the definition of local of our ‘One Voice’ the consultation’s resources and money laundering. Danone has and global roadmaps. In 2019, 26 employee consultation. results and insights. established policies and procedures for responsible volunteers were selected to represent all Danone practices that apply to all its employees, its employees and interact with the Company’s Board subsidiaries, the companies controlled by the of Directors and Executive Committee. Also, every Company and, in some cases, its business partners. eligible employee was granted one DANONE share, which gives them the right to vote at the Shareholders’ Meeting.

STAKEHOLDERS DIRECTLY Employees Business IMPACTED partners

15 FOR MORE INFORMATION

Danone’s corporate website www.danone.com > Impact > UN’s Sustainable Development Goals