Danone // 2020 Universal Registration Document

5 Social, Societal and Environmental Responsibility 5.3 Preserve and renew the planet ’ s resources 169 DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 PRESERVATION OF THE WATER RESOURCE Definition Water stewardship is a key issue for the operations and supply chain of Danone but also for the planet. Consequently, the Company acts to preserve and restore natural ecosystems, wetlands and natural water cycles while also continuing its actions to make safe drinking water accessible to the most vulnerable communities. Three basic principles guide all these actions: • rethinking the value of water by recognizing its many benefits such as protecting biodiversity, improving soil health, and carbon sequestration as well as the socioeconomic impact of preservation and conservation projects; • building an approach based on scientific, local and concrete facts and sharing knowledge relating to territorial issues; • thinking and acting locally and collectively as part of an integrated approach to bring concrete results and positive effects for highly water-stressed areas. Policies In 2020, Danone published its Water Policy for 2030, which promotes an innovative approach and integrated stewardship of the resource. It is based on a scientific diagnosis of the local water cycle and performed with the support of its hydrogeological experts deployed in identified priority geographical areas. The issue involves the mo- bilization of all users of water resources at the local level, the joint construction of action plans and the development of governance models supporting the action plans around the following three pillars: • preserving water resources throughout its value chain; • rethinking circularity within and around the production sites; • providing access to safe drinking water for vulnerable people and communities. In this context, the Waters Reporting Entity’s brands have jointly launched WeActForWater, a series of measures, targets and investments intended to provide a response to the challenges involved in protecting watersheds, access to safe drinking water, climate neutrality and responsible packaging. Action plans and outcomes Danone has a dedicated team—the Water Cycle—responsible for defining and implementing the three pillars of the Company’s Water Policy and the engagement of its stakeholders. In 2020, this team reviewed the water risk assessment process, taking into account the physical, regulatory and reputational risks, to provide (i) a de- tailed and structured picture of all watershed and production site risks, and (ii) the baseline for defining priorities and action plans. The process consists of three steps using data from the Water Risk Filter tool developed by the WWF: • identifying watersheds located in water-stressed areas; • identifying the water-related risks facing the operating sites; • defining mitigation, protection and/or recovery plans. Danone has applied this approach to its entire value chain and the main ingredients in its supply chain. In order to apply the action plans as local roadmaps, Danone has set up a methodology (SWAN) that guides the teams in (i) defining and implementing a water stewardship project, and (ii) adopting the most suitable practices for the context and the local risks, particularly in water-stressed areas. In addition, the Water Cycle team has developed a plan to ensure the commitment of all internal stakeholders (involving communication, awareness and training). It prioritizes a collaborative approach with the Reporting Entities and cycles other than water, by means of (i) committees for information-sharing and joint creation of ac- tion plans in production sites and watersheds, (ii) the creation of a special working group on water stewardship in the Danone supply chain (representing 89% of its water footprint), and (iii) work to implement regenerative agriculture.