Danone // 2020 Universal Registration Document

5 Social, Societal and Environmental Responsibility 5.2 Offering safe, healthy products 155 DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 RESPONSIBLE COMMUNICATION Definition Research has shown that, for children under 12 years of age, mar- keting communications can influence their purchasing behavior and short-term eating habits. Danone’s goal is therefore responsible marketing and communications for all. In particular, it is committed to ensuring that its communications have integrity, meet ethical standards, are verified, and are based on solid scientific claims. Policies As 90% of Danone’s product volumes sold are food and beverages that consumers can enjoy every day, Danone spends the majority of its marketing budget on healthy products. As a founding member of the EU Pledge (2007), and a signatory to the International Food and Beverage Alliance’s (IFBA) global policy on responsible marketing, Danone has thus restricted its marketing communications to children under the age of 12, so that they are only exposed to products that meet: • nutritional criteria set by local authorities, or defined by the in- dustry as a whole, and to which Danone has committed regionally or locally; • common nutritional criteria set by the EU Pledge in the absence of such standards at the local level. In 2019, the Company strengthened its commitment to responsible marketing to children with the publication of the Danone Pledge, which provides a set of guiding principles (see Action Plans hereafter). Danone has also joined several local pledges that are consistent with its position on this issue. In most of the countries involved, compliance with this pledge is certified by an external agency. Lastly, in its advertising, Danone has also pledged to apply the International Chamber of Commerce Code for Responsible Food and Beverage Marketing Communication (ICC Code) and aims for compliance across all of its communications campaigns. Corrective actions are taken if non-conformities occur. To ensure operational monitoring of its commitments, an internal directive, applicable to all Reporting Entities, was developed to guarantee the consistency and scientific accuracy of the health and nutrition claims in Danone’s communications. Governance Under the directive described above, the General Manager of each subsidiary is responsible for communications and their approval. He or she appoints someone to ensure that a specific process for approving communications at the local level is in place and has been properly implemented. Action plans Responsible communication and marketing to children Danone uses its brands to promote healthy hydration habits and make water more appealing to children. It does not market its aquadrinks range to children under the age of 12. More generally, Danone has established the following principles for marketing to children: • no misleading messages; • no undermining of parental or caregiver influence but support for their role in guiding diet and lifestyle choices; • no suggestion of a time/sense of urgency or a price minimization pressure; • no exploitation of a child’s imagination or inexperience, in a way that could mislead him/her about the nutritional benefits of the product involved; • no encouragement of unhealthy dietary habits; • no blurring of the boundary between marketing and branding; • Danone strives to ensure that marketing materials primarily appealing to children under the age of 12 promote healthy, ba- lanced diets and lifestyles as well as positive values. The details of the measures taken, including with respect to the use of licensed characters for marketing on packaging and at points of sale, are set out in the Danone Pledge (see Danone’s website for more information). The Danone Pledge undergoes internal and external audits conducted by independent third parties qualified to certify its implementation at the global level. Danone will publish the results of this audit on an annual basis. Outcomes In a 2020 audit conducted in Bulgaria, France, Germany, Italy, Poland and Spain, Danone’s television advertising was found to be 99.1% compliant with the EU Pledge criteria across all six countries. In the area of subsidiary websites (eight countries audited) and brand profiles on social networks (seven countries audited), 100% of the websites audited and one influencer profile analyzed were compliant. Opportunities Danone continues to strengthen its responsible communication and marketing practices by exploring digital opportunities to target consumers more accurately. The Company would like to empower consumers in this area by providing them with more information on the nutritional value of its products (see section Unique product portfolio to impact people’s health above).