Danone // 2020 Universal Registration Document

Social, Societal and Environmental Responsibility 5.5 Promoting sustainable, inclusive growth with suppliers DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 188 Breakdown of critical non-conformities identified Analysis focused solely on critical non-conformities from SMETA audits (or those conducted using a similar methodology) of Danone suppliers in 2019 and 2020. 2019 2020 Total number of critical non-conformities identified 277 126 Percentage of critical non-conformities related to: • forced labor 1% 1.6% • child labor 1% 0% • health and safety 51% 49.2% • discrimination 0% 0% • freedom of association and the right to collective bargaining 2% 2.4% • working hours and compensation 27% 33.3% • the environment 8% 4.8% • business ethics 5% 4% • other 5% 4.8% The critical non-conformities identified and reported above have been resolved or are being remedied with the suppliers. The two non-conformities related to forced labor have been resolved. One was related to mandatory overtime at a production site in the United States: corrective measures included notably implementing a new clocking system and training supervisors to manage working hours more effectively. The second was related to the lack of a reimbursement policy for employee training expenses in Indonesia: corrective measures included updating the terms of the contract.