Danone // 2020 Universal Registration Document

5 Social, Societal and Environmental Responsibility 5.1 An integrated approach of sustainable business model 147 DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 With its internal animation tools, the Company ensures that all its entities, at all levels, progress toward the 2030 Company Goals, with a focus on the OPOH frame of action. To do so, Danone tracks and supports sustainability performance through quantitative metrics (global reporting) and a set of qualitative practices (Danone Way) whose reliability is reinforced by external audits, performed by an independent third party (see section 5.9 Report by one of the statutory auditors, appointed as an independent third party, on the consolidated non-financial information statement included in themanagement report ). This integrated way to track and measure performance supports its global B Corp™ certification externally as well as its dialogue with financial and non-financial partners, notably by sustaining a high performance with the ESG rating and ranking agencies. A COMPREHENSIVE APPROACH TO MEET EXTERNAL DEMANDS Manifesto Brands to reflect consumers’ expectations Manifesto Brands are at the core of Danone’s 2030 Company Goals. A Manifesto Brand is a brand on a mission, with a strong point of view on societal issues. These brands are committed to taking action and contribute to the food revolution. Their commitments allow them to connect with consumers around shared values and purposes, around the social, environmental, and health and nutrition topics that matter to them. Materiality analysis to highlight main externalities To define its approach to sustainability, Danone relies on the com- plementary nature of its materiality and risk analysis processes. This enables the Company to identify the issues facing its opera- tions and value chain, on the one hand, and the expectations of its stakeholders regarding its sustainability ambitions, on the other. Danone relies on this materiality analysis as it highlights the 14most material issues for Danone’s business success and for external stakeholders, as listed in the table below. In early 2021, Danone repeated this materiality exercise to create an updated version of its matrix, which can be found in its entirety in the 2020 Integrated Annual Report. This matrix is the result of a global consultation with more than 380 internal and external stakeholders who shared their perspective on issues that Danone needs to prioritize as a business, today and over the next five to ten years. Among the stakeholders consulted were: • more than 230 external and local stakeholders, including na- tional authorities, NGO representatives, academics/experts and sector peers, etc. • more than 150 Danone employees whose work relates to the OPOH frame of action. Danone also surveyed its suppliers, key accounts and investors. Risks identified in connection with Danone’s declaration of non-financial performance In 2018 Danone identified its sustainability risks, thanks to a joint effort by the departments responsible for Sustainable Development and for Strategy and Risks. In 2020, the Company reviewed these risks internally in light of the Covid-19 crisis and the current Company transformation and concluded that they were still relevant. For some risks, additional action plans have been rolled out and are detailed throughout this section (see the Cross-reference table below). Danone has adopted the following risk definition methodology: • identify risks through research on risks affecting its activities and its value chain over the short, medium and long term; • work with its experts to assess top risks based on its activities, probability of occurrence, and potential impacts on stakeholders (employees, shareholders, business partners and communities) and its results; • consolidate and identify Danone’s top 13 sustainability risks; • have the risks approved by three governance bodies: the Sustainability Integration Committee, the Social Responsibility Committee (now called Engagement Committee) and the Audit Committee (see section 6.1 Governance bodies ).