Danone // 2020 Universal Registration Document

5 Social, Societal and Environmental Responsibility 5.2 Offering safe, healthy products 151 DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 5.2 OFFERING SAFE, HEALTHY PRODUCTS Contents Unique product portfolio to impact people’s health 151 Offering consumers healthy products 151 Ensuring food safety 153 Responsible communication 155 Marketing of breast milk substitutes 156 UNIQUE PRODUCT PORTFOLIO TO IMPACT PEOPLE’ S HEALTH Food safety and nutritional value are inherent factors in consumers’ choices. In addition, consumers are paying closer attention to the social and environmental footprint of the products on offer. Danone has a responsibility to provide safe products to its consumers, and commits to offering healthy and sustainable products. Offering consumers healthy products Definition One of Danone’s goal is to serve the food revolution with partners. The Company therefore aims to contribute to the food model trans- formation by focusing on nutritional needs and local food cultures and developing local routes to market. The intent of its health and nutrition strategy is thus to offer a portfolio of products that en- courage a healthier and more balanced diet. To do so, the Company works to reformulate and innovate on its product range while also drawing on its in-depth knowledge of public health concerns, eating habits and local cultural traditions. Governance In 2020, the health and nutrition strategy is implemented by the Alimentation Science Department, which reports to the EVP, Growth & Innovation, who is a member of the Executive Committee. Its governance is supported by: • the OPOH Integration and Investment Board (see section 5.1 An integrated approach of sustainable business model ); • the Growth and Innovation Committee, which contributes in particular to the strategic discussions about consumers’ brand experience. Danone also collaborates with the Reporting Entities’ management teams and ad hoc working groups to co-develop action plans on health and nutrition topics. Policies, action plans and outcomes The “Impact people’s health locally” 2030 Company Goal has been incorporated into Danone’s strategy and is structured in three pillars: (i) offer better products, (ii) encourage consumers to make better choices, and (iii) work with partners to improve diets. This breaks down into six commitments and nutritional targets for end of 2020 (see Danone’s website for more information) that Danone has set for its entire product portfolio. The end-2020 outcomes are detailed below. The Reporting Entities then translate these commitments and targets into roadmaps to ensure that the products marketed are consistent with the Company’s brand model. Commitment No. 1: continuously improve the nutritional quality of its products In 2020, 90%of product volumes sold are in healthy categories, stable relative to 2019 (see Health and Nutrition scope, Methodology Note). The other categories are mainly low-sugar drinks and occasional “indulgence” products. 2020 TARGET ACTION PLANS AND OU TCOMES Danone will bring 100% of its products into compliance with its absolute nutritional target values. Danone strives continuously to improve its recipes to optimize the profile and nutri- tional value of its products, but also to limit the use of certain nutrients (e.g., added salt or sugar, additives, etc.). The Company also innovates to offer healthier products (e.g. organic, local and more natural) in each of its Reporting Entities and to meet consumers’ expectations. In 2020, 86% of product volumes sold comply with the nutritional targets (compared with 82% in 2019) and 82% have no added sugars (see Health and Nutrition scope, Methodology Note). The extent to which the nutritional targets were achieved increased from 67% in 2016 to 86% in 2020 due to efforts to reformulate dairy products, flavored waters – called aquadrinks – and early life nutrition. The latter achieved 98% and 97% compliance, respectively, with nutritional targets. The primary reformulation challenge is to reduce added sugar: the reduction in added sugar was 12.4% in dairy products (between 2014 and 2020), 25% in aquadrinks (between 2008 and 2020) and 78% in early life nutrition (between 2016 and 2020). These efforts brought the overall achievement of the sugar targets to 93%, while the salt and saturated fat targets were 99% achieved. Some of the subsidiaries achieved strong progress: the compliance of the EDP portfolio in Mexico increased by 69% between 2016 and 2020, the Waters Reporting Entity in France improved from 53% to 100% and the Specialized Nutrition Reporting Entity in Indonesia achieved 100% compliance in 2020.