Danone // 2020 Universal Registration Document

Social, Societal and Environmental Responsibility 5.3 Preserve and renew the planet ’ s resources DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 164 Sections Governance a. Oversight by the Board of Directors of climate-related risks and opportunities 6.1 b. Management role in assessing and managing climate-related risks and opportunities 5.1, 5.3, 6.1 Strategy a. Climate-related risks and opportunities identified over the short, medium and long term 2.6 b. Impact of climate-related risks and opportunities on the Company’s businesses, strategy and financial planning 5.1 c. Resilience of the Company’s strategy, taking into consideration different climate scenarios, including a 2°C or lower scenario 5.3 Risk management a. Processes for identifying and assessing climate-related risks 5.1 b. Processes for managing climate-related risks 5.1 c. Integration of processes for identifying, assessing and managing climate-related risks in the Company’s overall risk management 2.6, 2.7 Metrics and targets a. Metrics used to assess climate-related risks and opportunities, in line with the Company’s risk management strategy and process 5.1, 5.3 b. Greenhouse gas emissions for scope 1, scope 2 and scope 3 and the related risks 5.3, 5.6, 5.7 c. Targets used to manage climate-related risks and/or opportunities and the Company’s performance against these targets 5.3, 6.4 TRANSITION TOWARD REGENERATIVE AGRICULTURE THAT INCLUDES ORGANIC AGRICULTURE Definition For Danone, agriculture is the biggest source of greenhouse gas emissions (representing 61% of total emissions in 2020), and the main source of its water use. Believing that agriculture is part of the response to climate change, Danone is firmly committed to regenerative agriculture and promotes practices that protect the soil and biodiversity as well as animal welfare while also supporting farmers in the transition toward more resilient agricultural models that protect natural resources. Policies Danone pledged to support sustainable agriculture in 2015, with the publication of a White Paper, and then detailed it in a definition, a set of practices and a plan for the implementation of regenerative agriculture, all jointly developed with the farmers, partners and the WWF and applied through three pillars: • protecting soils, water and biodiversity (reinforced by the Water Policy published in 2020); • empowering new generations of farmers; • respecting animal welfare. Concerning the last pillar, Danone has made a number of pledges formalized in the Animal Welfare Position Paper and publishes its progress report every year. Its approach, which it developed in collaboration with the NGO Compassion in World Farming (CIWF), is based on the five freedoms internationally recognized by the Farm Animal Welfare Council. Action plans and outcomes In 2020, 70% of the entities developed projects in line with at least one of the three pillars of the regenerative agriculture framework regarding the main raw materials it uses (Danone Way scope, see Methodology Note), compared with 76% in 2019. For example, the Company’s French subsidiaries have pledged to produce 100% of the ingredients grown in France from regenerative agriculture by 2025. Protecting soils, water and biodiversity With its Water Policy published in June 2020, Danone reiterates the role played by regenerative agriculture in ensuring the protection of natural ecosystems and water cycles, defines its commitments according to different time horizons and underlines its support for its upstream agricultural partners in setting up practices encouraging biodiversity as follows: • preserve and improve the physical and biological structure of soil to enhance its organic matter content by reducing soil tillage, crop rotation, and planting permanent cover crops; • maintain soil’s natural capacity to regulate water resources; • preserve animal and plant biodiversity by limiting the use of mineral fertilizers, pesticides and other chemical products and increasing their wildlife habitats (including the protection of water courses). In this respect, Danone pledges to increase the size of buffer zones on farms by at least 15% by 2030. The Company works directly with farmers to develop action plans with them and help them implement these new practices. It also works alongside many partners, NGOs, universities or agri- cultural technicians to promote the adoption of best agricultural practices. For example, Danone North America works with the researchers of Cornell University’s carbon sequestration center. In the C-Sequ program, Danone works with other companies in the milk and beef industries to define guidelines for calculating carbon sequestration values. Adopting a collective action approach, the Company continues to help protect biodiversity by working on joint pilots within the One Planet Business for Biodiversity (OP2B) coalition formed in 2019, consisting of 26 companies as at December 31, 2020.