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FOR A REGENERATIVE FUTURE

JUNE 2021 2 REGENERATIVE FOR A REGENERATIVE FUTURE Danone hasachoice between alinearmodel and consumers. of farmers, localcommunities with thesoil, andstrengthens thewell-being that regenerates natural ecosystems, starting We are committedtogrowing food inaway Our decisionisclear. or acircular onethatregenerates them. of agriculture, which degrades resources, globally asaBCorp being certified Mission’ in2020, andwhy we are committedto impact. This iswhy we becamean‘Entreprise à project, where we seekbusiness but alsosocietal At Danone, we have for decadesembraced adual At Danone, we work withdirectly, andmany more indirectly around theworld, withthe50,000 starting farms agriculture, we touch thelivesofcommunities roughly 90%ofourwater footprint. Through represents 60%ofourGHGemissions, and farming modelwe choose. Agriculture today ways we deliversocietalimpactisthrough the As afood company, oneofthemostimportant

(1) by 2025.

(2) . a water impactpositivecompany. net zero emissionsby 2050, andbe of Danone’s commitmentstoachieve Regenerative agriculture is attheheart deliver positiveimpact. regenerative agriculture movement and farmers ofallvarietiestoexpandthe such asfruits andalmonds. We work with but extendingtootheringredients dairy ingredients with are produced -starting our products by changing theway ourkey across theworld. Ourgoal istotransform toregeneratefarms andpartners soils Danone works directly withover 50,000 3 REGENERATIVE AGRICULTURE FOR A REGENERATIVE FUTURE Indeed, of a BostonConsultingGroup survey which are increasingly focused onnature. to responding tocitizenandconsumer concerns, Moreover, regenerative agriculture isfundamental one aswell. environmental andsocialimperative but ahealth food, makingregenerative agriculture notjustan that thequalityofsoilimpacts . There isalsogrowing evidence absorbing excessrainwater, andfostering in drawing excesscarbonfrom theatmosphere, also regenerate them.Soilscanbeapowerhouse Agriculture candegrade resources but itcan practices that: organic production —isdefinedasasetof farming For Danone, regenerative agriculture —which includes Farmer remains poverty endemic is growing andwater qualitydeclining. Biodiversity isdisappearing.Water scarcity its limits. Climatechange isaccelerating. The conventional farming modelhasshown At thisrate, within50years, we willstruggle biodiver soil, wa pro te WHY BUILDAREGENERATIVE cts

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MODEL FOR FOOD (3) .

re we animal spe lf increasing globally by 71%since2016 behavior, withsearches for sustainable goods surprise thatconsumers are changing their concerning ashealthissues. Itcomesasno said thatenvironmental issuesare as the environment, and75%ofrespondents pandemic thathumanactivitythreatens more aware now thanbefore thecovid-19 are countries found that70% ofparticipants more than3,000 respondents across eight marketed products seven timesfaster thanconventionally ansustainability-marketed products growing that canbringusallcloser tonature. agriculture from achallenge toasolution, a different model, onethatcantransform 9 billionpeople. We needtoembrace to findenougharable topsoilto feed are cts economic viability. into accountits of farming, whiletaking and thepositiveimpact of f th a cknowledge (5) e kyrol . armer s e (4) s , and 4 REGENERATIVE AGRICULTURE FOR A REGENERATIVE FUTURE to severely degraded Source: UN’s GlobalLandOutlook of soilsmoderately of theworld’s Source: FAO 1/3 surface 33% capacity thanconventionally managedsoils Organically managedsoilshave a20to40%higherwater-holding to soilscientistDrRattanLal, winnerofthe2020World Food Prize return greenhouse gasesintheatmosphere tosafe levels, according begun toflow againduetonew regenerative farming In someareas, water springsthatdriedupseveral years ago have Increasing thecarboncontent (5) tr ansf … frOm achllenge… (8)

orming a ...t o Asl of freshwater use Source: World Bank 70% animal andplant speciesthreatened and landusechange asakeydriver

of theworld’s soilby just2%would with extinction, withagriculture gricul u tion Mil lion 1 (6) (11) Source: IPBES t . ure (12) (9) . worldwide emissions Source: IPCC 1/5 of GHG (10) .

(7) 5 REGENERATIVE AGRICULTURE FOR A REGENERATIVE FUTURE 3 1 2 In 2018, we worked withWWFFrance todefineaholistic approach andotherexperts that benefitsnature, people andanimals. These three principles are atthecore: and farmworkers Generation offarmers Supporting theNext and retain more water. the atmosphere, strengthen biodiversity so thatitcandraw carbonfrom Restoring soil to play inhealthy ecosystems. cows topollinators, which have akeyrole Securing thewelfare ofanimals, from dairy animal welfare Respecting agriculture models are economically viable. they need, but alsoensuring regenerative by giving themtheknowledge andtools is doi 1 -Deve What D ng ab l opi ng th anone e conpt out it 6 REGENERATIVE AGRICULTURE FOR A REGENERATIVE FUTURE farming isandhow itisbeing are implemented. we are transparent aboutwhatregenerative is afundamentalsteptoward ensuringthat The DanoneRegenerative Agriculture Scorecard Fund (WWF)for Nature France, technicians, This iswhy we worked withWorld Wildlife onthisjourneyorwellare ontheirway. juststarting themwhetherthey are committedtosupporting the transition toregenerative agriculture, andwe Farmers andfarm workers are theleadactors in agrowing population, provide adecentlivingwage for producers andreduce ourdependenceonfossil fuels. favor ofmore sustainable practices thatwillimprove soilhealth, help anticipatefuture climate shocks, feed «Degraded landaccountsfor 2billionhectares worldwide. Itisurgent tochange ouragricultural modelin scale, including through technologies intelligence(AI)andmachine learning. likeartificial 2 -Definingth Water: useofnatural sources, integration ofbuffer zones, irrigation management oflocally grownproportion animalfeed entrants, ofnatural habitatsonagricultural proportion lands, Biodiversity: strategies for weed andpestcontrol to limit chemical of organic matter rotation andnumber ofspecies, monitoringandcontent Soil: intensityoftillage, ofsoilcovered, proportion landwithcrop regenerative agriculture practices, including developed withWWFFrance, helpsfarmers track progress onkey Danone’s Regenerative Agriculture Scorecard In partnership withWWF France, Inpartnership Danonehasdevelopedits regenerative agriculture framework based methods likeintercropping andpolycultures whileaimingtomaximize impactand onacontinuous improvement approach inorder toembarkall agricultural producers, from lessadvanced tobestinclass. We ofthisjourney.» are gladtobepart as theywere abandonedby conventional agriculture. Itbuilds ontraditional To learnmore: ArnaudGauffier, Programs Director, Conservation WWF France. which have maintainedfarming practices inharmony withnature even e practic Regenerative agriculture owes agreat debttoindigenouspeoples, , andcreate more justand humanefood systems. The three are ifwe working critical, are insynergy toreverse Danone-regenerative-agriculture-2021-scorecard.pdf eS

practitioners. These practices tiers: initiated, advanced andbest-in-class defines regenerative practices across three system or ingredient. system oringredient. can beapplied nomatterwhatthefarming the movement whilemaximizingimpact. creating credibility andtransparency for farmers ontheirown regenerative journey, We hopeitwillhelpothercompaniesand agricultural an adiverse group ofenvironmental and

experts, tocreate ascorecard that

7 REGENERATIVE AGRICULTURE FOR A REGENERATIVE FUTURE over 150,000 hectares toregenerative agriculture, representing over 12%ofourdirect sourcing. States, France, Spain, Mexico, Algeria, Morocco, andRomania. To Egypt datewe have converted our ingredients are sourced. We now have regenerative agriculture programs intheUnited Since 2017, we have beenworking totransform practices ontheground totransform theway 3 -Drivi transition toregenerative practices. since 2016, tohelpcover farm costsasmore farmers In France, we have invested over 40millionEuros strawberry sourcing. strawberry agro-chemicals American for 50%ofourNorth for farmers, 20%lesswater usage, and fewer the ambitiontosecure 30%higherincome to transition toregenerative practices, with We are alsoworking farmers with 140strawberry to optimizetheirwell-being andproductivity. on 37 farms withsensors andconnectedcollars practices -equippingclose to2,000cows farming Development Banktotransform dairy In Mexico, we are working withtheInter-American by 2025. greenhouse gasemissionsfrom fresh milk15% by 2025. Through theseefforts, we aimto reduce and sugarbeet-from regenerative agriculture in France -including fresh milk, fruits andvegetables, We are ontrack tosource 100percent ofingredients In theUS, 20,000 tonsofcarbon. carbon dioxide andsequestered more than reduced theequivalentof80,000 tonsof and expandingcover crops, theprogram has like reducing tillageandchemical pesticides, ingredients likealmonds. Through practices on 82,000acres now andexpandingtonew programregenerative inthecountry, dairy ng tr we have themostcomprehensive ansf orma on th ti

e ground

8 REGENERATIVE AGRICULTURE FOR A REGENERATIVE FUTURE feed autonomy, optimized nutrient management, , andoptimal herd management. a practical toolbox ofbest-in-class solutions (more than 30sofar), including for soy replacement, practices but alsoaboutstrengthening peer-to-peer learningamongfarmers. The alliancehasbuilt Compassion inWorld Farming, andWageningen University. F4Gisnotonly aboutsharinggood intelligence,nutrition andscience artificial as well NGOs like World Wildlife Fund for Nature, initiatives have supported othercompaniesastheyjointheregenerativeinitiatives have supported agriculture movement. regenerative agriculture through private-sectorcollaboration. We are delightedthatthese collaboration ifwe want togo further. Danoneco-founded two initiativesaimedatadvancing If we have learnedonethingonthisjourney, it’s thatwe needtovastly expandandtransform tool, asustainabilityriskmanagementplatform in Environmental ConsultantsandtheirEcoPractices This iswhy we withSustainable are partnering data andvalidatedby third parties. of ourefforts, andensureby thisissupported the broader socialandenvironmental outcomes We are alsoworking tounderstand andmeasure was thankstoregenerative agriculture. than 1milliontons, andhalfofthisreduction alone, we reduced ourGHGfootprint by more in thefightagainst climate change. In2020 projects ontheground are deliveringimpact Thanks toourclimate reporting, we know our contracts. Altogether, 29%ofthemilkDanonecollects iscovered by CPMcontracts. in Europe and55%ofmilkcollected intheUnitedStatescamefrom producers withCPM withmilkproducers ortheirorganizations.in partnership In 2020, 43%ofmilkcollected Model (CPM)contracts factor production costsintomilkpricing andare developed thereby offer farmers greater visibilityandfinancialstability. Theselong-termCost Performance contracts, withanaverage termofthree tofive years, to reduce milkpricevolatility and Danone works withfarmers intheUnitedStates, Europe andRussiatodevelopinnovative 5 -Drivi 4 -MeasuringimpacT ng inno sectors (including beauty, fashion, retail andfood). and restore biodiversity. Itbringstogether25companies from different waysagriculture acompany asoneofthemostimportant canprotect One PlanetBusinessfor Biodiversity (OP2B)promotes regenerative vation andcolabor specialized inanimalhealthandwelfare, animalnutrition, crop farming. F4Gbringstogethercompanies for regenerative dairy Farming for Generations aimstorefine andshare best practices

practices, on nature, productivity andprofit. return oninvestment for specific regenerative a uniquetool tohelpfarmers estimatethe measurement initiativehasallowed ustobuild and leveraging theevidence base. This impact rolehave toplay animportant here inbuilding New technologies likemachine learningandAI and water-content aswell as economicviability. how farming practices are impactingcarbon on soilhealthandgetacompellingpicture of the UnitedStates, togatherrigorous data ation

9 REGENERATIVE AGRICULTURE FOR A REGENERATIVE FUTURE secure farmer livelihoods. soil healthandstrong incentivesfor farmers thatencourage regenerative practices andhelp This iswhy we advocate for policy changes such asgovernment targets toprotect andrestore influence over farming practices. giving thesegovernments tremendous a year tofarmers, ondirect support countries spendover $500billion to theOECD, the54leading systems worldwide. According in definingandshapingagricultural as governments play amajorrole with thepublic sectorare essential, that newforms ofcollaboration To drivesystemicchange, we believe and improved thelivingconditionsofmore than200,000 people. the fundiscreating inclusive business modelsthathave empowered 32,000people facilitate theirtransition tonewpractices. Through itsregenerative agriculture projects, The fundprovides totrain aswell technicalfarmers asfinancialsupport and expertise more than45projects withNGOstohelpfarmers transition toregenerative agriculture. transformation ontheground. The DanoneEcosystemFund, for instance, hasco-created We are alsoworking withtheDanoneEcosystemFund andLivelihoodsFunds todrive the MiiMOSAcrowdfunding platform. raise awareness andfundsvia Les 2PiedsSurTerre helpsfarmers financing andtechnical support, this project. Inaddition tooffering of liter ofmilkcollected aspart reduction inGHGemissionsfor each As of2020, Danonesaw a3.6% strengthening competitiveness. carbon emissions15%by 2025, while improve soilhealthandreduce The program aimstohelpfarmers to regenerative agriculture through theLes2PiedsSurTerre program. MiiMOSA crowdfunding French platform tosupport farmers inthetransition dairy Ecosystem Fund, Lesprés rientbios, Idele(French Livestock Institute), and andPlant-BasedinFranceDanone EssentialDairy joinedforces withtheDanone

10 REGENERATIVE AGRICULTURE FOR A REGENERATIVE FUTURE farming through plants, pondsandhedges. that optimizewater andbringwildlife back into This iswhy Alpro turningtoregenerative practices become lessabundant withachanging climate. farms dependmostly onrainwater, which could mainly smallfarms intheMediterranean. These oats. Almonds, for instance, are sourced from practices for itskeyingredients likesoy, almondand Alpro isworking withdevelopingregenerative public partners. together withlocalandinternationalprivate the NGOsTechnoserve andPlataforma Nuup, Fund, theInter-American Development Bankand co-led by DanoneMexico, theDanoneEcosystem through aprogramtechnical andfinancingsupport health andanimalwelfare. The smallholders receive who are transitioning topractices thatprotect soil ofaround 500smallholdersconsumers insupport Danone’s Leche deOrigenlineinMexicoisengaging partnership withEnvironmentalpartnership Defense Fund. to advocate for ambitiouspublic climate policy in in thefightagainst climate change, inviting them agriculture practices. Horizonismobilizingconsumers positive by 2025, primarily through regenerative Horizon Organic milkbrand ispledging tobecarbon In th In Europ In Mexico - through whattheyeatanddrinkeach day, theyhave thepower tohelpshiftdemand e Unit Our brands are engaging consumers sothattheyjoinusinthismovement. Consumers are fundamentaltotheregenerative agriculture movement e , Consum ed S heavily infavor of regenerative forms ofagriculture. t ta te o urapproa s, Here are afew examples: er s arecore ch 11 REGENERATIVE AGRICULTURE FOR A REGENERATIVE FUTURE “dedicated tomakinganimpactontheplanet thatourlittleoneswillinherit.” regenerative farming canhave onclimate change, farmers inviting themtosupport The brand leadsafarmer training program andeducatesconsumers ontheimpact made withingredients from farms thatimplement regenerative agriculture practices. Happy Family Organics launched anew Regenerative &Organic lineofbaby food, on ourplates. biodiversity onourfarms bringsbiodiversity where theiringredients are grown toseehow it invites citizensandconsumers tovisitfarms agriculture practices. To raise public awareness, and 30pilotfarms are testingregenerative technicians are receiving technical support, farming practices. Sofar, 185farmers and and grains intheirtransition toregenerative Bretagne, farmers offruits, tosupport vegetables Pour uneAgriculture duVivant andFredon collaborates withtheDanoneEcosystemFund, brand from regenerative agriculture. The baby food Blédina In th In FRANCE but we know we have alongway togo. We invite oursuppliers, peers, public e Unit is sourcing more andmore ingredients locally, Danone isproud ofitsregenerative agriculture journeytodate and private partners andofcourse ourconsumers tojoinus,and privatepartners ed S and toregenerate ourfuture, with ourplates. starting ta te s,

12 REGENERATIVE AGRICULTURE FOR A REGENERATIVE FUTURE Available onlineat:http://www.fao.org/3/CA3033EN/ca3033en.pdf principles andbenefits. 12 -Food and Agriculture Organization oftheUnitedNations(FAO). (2012). Agriculture: Introduction toConservation farming. Science296(5573):1694. Retrievedfrom http://dx.doi.org/10.1126/science.1071148 11 -Mäder, P., A.Fliessbach, D. Dubois, L. Gunst, P. Fried, andU. (2002). Niggli. and biodiversity inorganic Soilfertility https://www.eitfood.eu/blog/post/can-regenerative-agriculture-replace-conventional-farming 10 -EITFood. (2020). Canregenerative agriculture replace conventional farming? Available onlineat: Retrieved from: https://doi.org/10.5281/zenodo.3553579 the Intergovernmental Science-Policy Platform on Biodiversity andEcosystemServices. of for policymakers onbiodiversity andecosystemservices of theglobalassessmentreport Summary 9 -Intergovernmental Science-Policy (IPBES). Platform onBiodiversity andEcosystemServices (2019). Available onlineat:https://knowledge.unccd.int/glo/GLO_first_edition (UNCCD).8 -UnitedNationsConvention toCombatDesertification (2017). GlobalLandOutlook first edition. https://www.ipcc.ch/srccl/chapter/summary-for-policymakers/ , andgreenhouse gasfluxesinterrestrial ecosystems. Retrievedfrom: onclimateand Land:anIPCCspecialreport change, , landdegradation, sustainable landmanagement, The Intergovernmental Panel7 - onClimateChange(IPCC). (2019). for policymakers. Summary In: Climate Change https://www.worldbank.org/en/topic/water-in-agriculture 6 -World Bank(n.d). Water inAgriculture. Available onlineat: Available onlineat:http://www.fao.org/sustainability/news/detail/en/c/1274219/ 5 -Food andAgriculture Organization oftheUnitedNations(FAO). 2020. Landuseinagriculture by thenumbers. See CSBSustainable MarketShare Index™-NYUStern https://www.worldwildlife.org/publications/an-eco-wakening-measuring-awareness-engagement-and-action-for-nature; awareness, engagement, andactionfor nature. Retrievedfrom: by4 -Seethelatestreport theEconomistIntelligenceUnit(commissionedby WWF):Aneco-wakening: Measuring que-el-salario-promedio-nacional-unimoss/ Available onlineat:https://indicepolitico.com/5-5-millones-de-jornaleros-agricolas-perciben-salario-2-1-veces-menor- 78 percent of5.2 millionfarmers are inaconditionofmultidimensional poverty. According totheInstitutoNacionaldeEstadísticayGeografía (INEGI), aMexicangovernmental datacollection agency, //www.euractiv.com/section/agriculture-food/news/frances-young-farmers-are-finding-it-difficult-to-start-a-farm/ Euractiv. (2019). France’s young farmers toestablish are themselves. struggling Available onlineathttps: Retrieved from: https://www.strategie.gouv.fr/sites/strategie.gouv.fr/files/atoms/files/dp-pac-anglais-octobre-2019.pdf per month, but one-third ofthefarmers earnlessthan350euros permonth. In France, according toastudy by theMutualitéSocialeAgricole (MSA), theaverage incomeoffarmers isaround €1,250 https://www.euractiv.com/section/agriculture-food/news/frances-young-farmers-are-finding-it-difficult-to-start-a-farm/ Retrieved from: 3 -According totheUSDA, in2018, themajorityoffarmers inAmericainsteadofearningmoney, hadnegativeincome. than 10cows. 2 -These include smallholder farmers, asaround 30%ofDanone’s totalmilkvolumes are sourced from farmers withless multinationals. by BCorp™certification, markingsignificant progress towards Danone’scertified ambitiontobecomeoneofthe first entities have Asa nowresult, earnedBCorp™Certification. approximately 50%ofDanone’s globalsalesare now covered performance, public transparency, andlegalaccountabilitytobalanceprofit and purpose. Danone Atotalofthirty-three BCorporations are1 -Certified businesses thatmeetthehigheststandards ofverified socialand environmental END NO TE S