Danone // 2020 Universal Registration Document

5 Social, Societal and Environmental Responsibility 5.3 Preserve and renew the planet ’ s resources 171 DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 Rethinking circularity in and around Danone’s production sites For this second pillar, Danone continues to work to reduce its wa- ter consumption and ensure that its water discharges are of high quality while also improving water circularity in all its operations. Danone prioritizes the development of water stewardship plans suited to sites located in water-stressed areas. In 2020, Danone found that 17% of its sites are located in high or extreme water risk areas. COMMITMENTS ACTION PLANS AND OUTCOMES By 2020: • reduce water consumption in the produc- tion processes of sites by 60% between 2000 and 2020; • achieve 100% compliance with Danone Clean Water Standards. By 2030: • implement a collaborative 3R Strategy (Reduce, Reuse, Recycle) on all production sites; • ensure that 100%of the clean water discharged directly by the sites located in highly wa- ter-stressed areas is reused to reduce the pressure on watersheds; • reduce the water consumption intensity of all production sites located inhighlywater-stressed areas by 50%. Reducing water consumption Since 2015, the action plans carried out at Danone’s industrial sites have generated more than 3.6m³ of process water savings, at constant scope andmethodology. In 2020, themost significant action plans mainly concerned the Waters Reporting Entity and the Rotselaar site, where aqueous effluents are now treated and reused in industrial processes. At the end of 2020, the reduction in the intensity of water consumption since 2000 remained stable compared to 2019 at 49%, with the decline in this intensity ratio in the majority of Reporting Entities between 2019 and 2020 being notably offset by the decline in the Waters Reporting Entity’s share of sales volumes. The objective of reducing the intensity of water consumption in industrial processes was not achieved in 2020, in particular due to the extension of the reporting scope in 2018, which had an adverse effect on this intensity ratio. All the results related to the performance of the production sites are reported in the Outcomes table. Ensuring that water discharges are of high quality and increasing water circularity In 2015, the Company developed internal standards more stringent than the applicable regulations (Clean Water Standards, or CWS). In 2020, 77% of its facilities comply with the CWS. In addition, Danone has been working for more than 20 years to make more effective use of water in its operations by prioritizing a collaborative approach. In 2020, the Company boosted this approach by adding the fourth pillar, “Reclaim”, to its 3R Strategy (Reduce, Reuse, Recycle). For example, on its Rotselaar production site (Belgium, EDP), Danone has developed the Waterless project as part of its “Zero Impact Operations” program, with the goal of achieving “Zero Carbon”, “Zero Water” and “Zero Waste”. Through the use of two-step filtration technologies, 75% of its wastewater is treated and recovered directly in the form of clean water for reuse in its production processes. This closes the production site’s water loop by reinserting and reusing 75% of its water in its operations. The deployment of this process significantly reduces the production site’s overall water use and so greatly reduces the strain on local underground water reserves. Lastly, Danone has developed and launched its new tool, Drop Saver, to disseminate best practices, support the deployment of circular water stewardship and assist in the implementation of its new Water Policy. Providing access to safe drinking water for vulnerable people and communities For this third pillar, the Company invests through Danone Communities and its brands to support social innovation projects and supply safe drinking water to vulnerable populations. COMMITMENTS ACTION PLANS AND OUTCOMES By 2030: • sign theWBCSDWASHPledge for access to safe water, sanitation and hygiene at the workplace; • create the Water Access Acceleration Fund (W2AF) to support social businesses providing water access; • provide daily access to safe drinking water for 50 million people. Danone pledges to give all its employees access to safe drinking water, sanitation and hygiene, which is consistent with the UNSustainable Development Goal 6, “CleanWater and Sanitation”, and the standard of the World Business Council for Sustainable Development. The Company has been working since 2007 in Asia, Africa and Latin America to provide safe drinking water to low-income communities via the Danone Communities fund. The brands of the Waters Reporting Entity play a key role, with, for example, AQUA in Indonesia partnering with the organization Water.org to extend access to safe drinking water (10 liters brought to local communities for each one-liter bottle purchased).In India, Danone Communities supports initiatives including the water kiosk model to help local entrepreneurs sell safe drinking water to their communities at affordable prices. The kiosks serve more than 260,000 people a day. In 2020, all of Danone Communities’ investments in social businesses provided access to drinking water for more than 9 mil- lion people around the world.