Danone // 2020 Universal Registration Document

Social, Societal and Environmental Responsibility 5.3 Preserve and renew the planet ’ s resources DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 158 GREEN audit program Danone deploys its Global Risk Evaluation for ENvironment (GREEN) program worldwide. The Company commissions external and in- ternal audits to identify and monitor the main environmental risks at its production sites and the implementation of the environmental management system. The Company can thus monitor and control atmospheric emis- sions (greenhouse and refrigerant gases), discharges into water (wastewater) and soil (treatment plant sludge and waste generated by livestock at some subsidiaries) resulting from its activities, as well as measure noise pollution generated by its production sites. The GREEN framework includes an assessment of the water-related risks which methodology was reviewed and updated in 2020 by the Water Cycle team (see section Preservation of water resources ). Danone deploys action plans at non-compliant sites in order to remediate non-conformities. Year ended December 31 2019 2020 Sites having undergone a GREEN audit Number of sites 126 121 Percentage of sites 68% 67% Percentage of production covered by a GREEN audit 79% 79% Compliance with GREEN standards Number of compliant sites 109 104 Percentage of compliant sites 87% 86% Percentage of compliant production 95% 94% Provisions and guarantees for environmental risks No significant provision for environmental liabilities and risks was recognized on Danone’s consolidated balance sheet as of December 31, 2020. FIGHT AGAINST CLIMATE CHANGE Definition Identifying the risks relating to climate change Danone has assessed the consequences of climate change and identified the following medium-term risks: • availability of ingredients (milk, fruit, etc.) in regions exposed to drought and bad weather; • exceptional climate events that could affect production sites located near coastlines; • availability of water resources and degradation of watersheds and groundwater, with a potential impact on Danone’s activities and relations between the subsidiaries and local stakeholders; • price volatility for its product packaging materials and impacts on its activities; • financing the transition toward more sustainable agricultural practices. Furthermore, as part of the recommendations made by the Taskforce on Climate-related Financial Disclosures (TCFD), Danone has mapped the potential and existing impacts of climate change, as well as the climate-related risks and opportunities (see table hereafter). This information has enabled it to develop three climate change scenarios and assess the resilience of its activities, its strategy and the related financial impacts. This map has reinforced the Company’s development strategy relating to plant-based products, its ambitious regenerative agriculture program and its circular economy approach.