Danone // 2020 Universal Registration Document

5 Social, Societal and Environmental Responsibility 5.8 Methodology note 197 DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 basis, and for whom Danone is able to collect data on working time (in number of hours). The collection of working hours for temporary employees and workers employed through staffing agencies is under the local responsibility of the subsidiaries. The control of this data by Danone, the wide fluctuation in this population of workers and the disparity of the agencies limit the completeness of data relating to this category. In 2020, four accidents (three with medical leave and one without) were reclassified, which had a negligible impact on the values pu- blished in 2019 in this document. Similarly, adjustments to lost days after reclassifying these accidents withmedical leave increased the severity rate (SR) from 0.060 à 0.061. Within the safety indicators scope, these changes and the impro- vement in time tracking methods resulted in a revision to hours worked reported in 2019 for workers employed through staffing agencies in the ELN CHINA entity (Specialized Nutrition, China), and the adjustments made to the data increased FR1 from 1.42 to 1.46. Production The production of Danone’s industrial sites is the total production of finished and semi-finished products at each of the sites. As some semi-finished products are used as ingredients at other Company plants, total production of the industrial sites is greater than Danone’s total production. Production of by-products such as cream and condensed milk is not included in production volumes. Greenhouse gases (GHG) Results are presented in tons of carbon dioxide equivalent in order to standardize the emissions calculated for carbon dioxide, methane, nitrous oxide and hydrofluorocarbons (HFCs). Scopes 1 and 2 greenhouse gas emissions Scopes 1 and 2 emissions are calculated in accordance with the methodology set out in the GHG Protocol Corporate Standard (January 2015 revised edition). In January 2015, the GHG Protocol published a guidance document on the method used to account for scope 2 greenhouse gas emissions, which introduces dual reporting: • location-based reporting, which reflects emissions due to elec- tricity consumption from a conventional power grid. It therefore uses primarily an average emissions factor of the country’s energy mix; • market-based reporting, which reflects emissions from energy consumption taking into account the specific features of the energy contracts chosen and also considers the impact of the use of energy from renewable sources. Danone has set its reduction targets according to the market-based method. Emissions (scopes 1 and 2) are calculated by applying global warming potentials and emissions factors to the activity data: • the global warming potentials used for methane (CH₄) and nitrous oxide (N₂O) as well as the impact of fugitive emissions of refrige- rants correspond to data in the IPCC Fifth Assessment Report (AR5), Climate Change 2013. The IPCC (Intergovernmental Panel on Climate Change) is a group of inter-governmental experts specialized in climate change; • the emissions factors used to calculate emissions related to en- ergy combustion correspond to data in the 2006 IPCC Guidelines (2006 IPCC Guidelines for National Greenhouse Gas Inventories); • electricity emissions factors follow the hierarchy defined in the new scope 2 guidance document of the GHG Protocol for mar- ket-based reporting. Suppliers’ specific factors must be certified by instruments that prove the origin of electricity (guarantee of origin certificates). If some of the electricity used is not of certified origin, the emissions factors used are the national residual mixes published by official bodies such as the Association of Issuing Bodies (AIB) in Europe and Green-e in North America. For coun- tries that do not have green-electricity attribute instruments, the emissions factors used are those used for location-based reporting provided by the International Energy Agency (2019 publication of energy mixes in 2017); • the factors used for heating and steamare fromtheUKDepartment for Environment Food & Rural Affairs’ (DEFRA) 2018 publication and the factors used for cooling are from the carbon database of the French Agency for the Environment and Energy Management (ADEME, 2017); • the emissions factors used to characterize the impact of fugitive refrigerant emissions are based on the IPCC Fifth Assessment Report (AR5), “Climate Change 2013: The Physical Science Basis” published in 2013. Scope 3 greenhouse gas emissions This was the second year that scope 3 emissions were measured using an entity-based organization approach. Scope 3 emissions are calculated in accordance with the metho- dology set out in the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Repor ting Standard. These emissions are calculated by applying to each reporting entity’s activity data the emissions factors from life-cycle analysis databases (Ecoinvent), professional federations (Plastics Europe, FEFCO, FEVE), the Food and Agriculture Organization of the United Nations (FAO), suppliers that have measured their products, and measures recorded as part of the deployment of the Cool Farm tool.