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Social, societal and environmental responsibility

5.2 Information concerning Danone's social, societal and environmental performance in compliance with the Grenelle II law

DANONE

REGISTRATION DOCUMENT 2015

197

Energy consumption

By definition, the environmental indicators, with the exception of

the GHG Protocol Corporate indicator, cover only the impacts of

production sites. When Research and Development centers or

warehouses are located adjacent to production sites, estimates

may be made by the production sites to take into account only their

own energy consumption (estimate and deduction of the amount

of energy consumed by the non-industrial sites adjacent to the

production site).

In some cases, the energy consumption of buildings located adja-

cent to industrial sites is taken into account if the site is unable to

subtract their consumption.

Greenhouse gas emissions by organization

Greenhouse gas emissions by organization (scope 1 and scope 2)

for 2015 are calculated using the methodology defined in the GHG

Protocol Corporate Standard (revised version of January 2015).

The approach chosen by Danone is to integrate all emissions sources

from its industrial sites into themeasurement of its carbon footprint.

The share of emissions from offices and warehouses remains low

relative to the total (7% of total emissions in 2012). Vehicles pro-

duce a greater share of emissions (21% of total emissions in 2012).

However, Danone focuses its actions on industrial activities (more

than 70% of total emissions in 2012).

However in the so-called “product” approach based on product

lifecycle analysis Danone records emissions related to logistics

and transportation.

Direct emissions (scope 1) are emissions related to on-site fuel con-

sumption (natural gas, propane/butane/LPG, domestic heating oil,

heavy fuel oil and coal) and refrigerant leaks (in accordance with the

GHG Protocol Corporate Standard, only HFC and PFC consumption

is taken into account). No Danone sites use PFCs.

Indirect emissions (scope 2) are emissions related to the production

of electricity, steam, heating and cooling purchased by Danone.

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, i.e. based on greenhouse gas emissions

caused by the production of electricity in the geographical region

in which it is consumed;

•

market-based reporting, i.e. companies operating in liberalized

markets such as the European Union which must use the carbon

emissions related to their electricity suppliers.

Emissions (scopes 1 and 2) are calculated by applying global warming

potentials and emissions factors to the activity data.

The emissions factors used to calculate emissions related to en-

ergy consumption correspond to data in the 2006 IPCC Guidelines

(2006 IPCC Guidelines for National Greenhouse Gas Inventories).

The IPCC (Intergovernmental Panel on Climate Change) is a group

of inter-governmental experts specializing in climate change. The

electricity emissions factors are provided by the International Energy

Agency (“CO

2

Emissions for Fuel Combustion”, 2014 Edition) for

location-based reporting.

For market-based reporting, the emissions factors used follow the

hierarchy defined in the new scope 2 guidance document of the GHG

Protocol. Suppliers' specific factorsmust 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 under the

RE-DISS II 2015, Mixes for 2014 The factors used for heating, steam

and cooling are from the carbon database of the French Agency for

the Environment and Energy Management (ADEME).

The emissions factors used to characterize the impact of fugitive

refrigerant emissions are based on the IPCC report “Climate

Change 2007, 4

th

Assessment Report, The Physical Science Basis”

published in 2007.

Wastewater

Chemical Oxygen Demand (COD) data presented correspond to

wastewater after internal and/or external treatment. In case of

external treatment reported by the site, a purification rate of 90%

is assumed.

In some cases, the COD may not represent all wastewater, but only

the portion that goes through the site's treatment plant.