Social, societal and environmental responsibility
5.3 Funds sponsored by Danone
DANONE
REGISTRATION DOCUMENT 2015
200
5.3 FUNDS SPONSORED BY DANONE
danone.communities
The danone.communities mutual investment fund (Société d'Inves-
tissement à Capital Variable-SICAV) and the danone.communities
professional specialized investment fund (Fonds Professionel
Spécialisé – FPS, formerly the fonds Commun de Placements à
Risques – FCPR) were created in 2007 at Danone's initiative:
•
along with several partners, the FPS invests in businesses with
significant social impact located mainly in emerging countries,
in accordance with Danone's mission;
•
the SICAV invests (i) at least 90% of its assets in a selection of
shares or units of mutual funds or investment funds invested
in money market instruments, government bonds and bonds of
companies in the euro zone that favor a “Socially Responsible
Investment” (SRI) approach, and (ii) up to 10% of its assets in the
danone.communities FPS.
As of December 31, 2015, the danone.communities SICAV had assets
under management totaling approximately €68 million.
Investment by Danone and its employees in the
danone.communities SICAV and FPS
At the time of the creation of the danone.communities SICAV in
May 2007, 99.77% of Danone's shareholders approved the imple-
mentation of the danone.communities project and the Company
subscribed for €20 million of its capital.
Since 2007, Danone hasmade a financial contribution each year to the
danone.communities project up to amaximumset by Danone's Board
of Directors, upon the recommendation of the Social Responsibility
Committee. In 2015, this contribution amounted to €3.6 million
(same as in 2014).
In June and July 2015 Danone operated a reallocation of its investment
in danone.communities by completing the following transactions:
•
partial divestment from the SICAV through the SICAV's purchase
of shares held by Danone at their net asset value, in accordance
with the SICAV by-laws, for a total of €11.4 million;
•
acquisition of existing shares in the FPS from the SICAV at a price
equal to the net asset value for a total amount of €1.4 million;
•
subscription of new shares in the danone.communities FPS at
a price based on the most recent audited net asset value as of
December 31, 2014, adjusted for fund-raising calls, for a total
amount of €6.1 million;
•
reinvestment in the danone.communities SICAV of the balance
of the amounts obtained by the Company in connection with
the abovementioned partial divestment for a total amount of
€3.8 million.
These transactions ensure that the FPS has the additional resources
needed to continue ongoing projects and to develop new projects
by replicating existing models without increasing Danone's total
commitment to danone.communities.
As of December 31, 2015, Danone therefore held approximately
17% of the capital of the SICAV and 63.6% of the capital of the FPS.
For more information about these reallocation transactions, see
section 6.5
Statutory auditors' special report on regulated agreements
and commitments
.
In addition, the employees of the Company and its French subsid-
iaries participate in the danone.communities project by investing
in the SICAV through the danone.communities company investment
fund (Fonds Commun de Placement d'Entreprise – FCPE) as part
of the Group Savings Plan.
As of December 31, 2015, approximately 34% of Danone's employees
in France had subscribed to the danone.communities FCPE for a
total amount of €14.1 million (an increase of approximately 13.7%
compared to 2014).
Projects supported by the danone.communities FPS
Since its creation, the danone.communities FPS has carried out
eight investments.
In accordance with the danone.communities Governance Charter,
the Company's Social Responsibility Committee is consulted prior
to each investment by the danone.communities FPS and issues an
opinion as to its compliance with this charter.
In 2012, Danone decided to invest alongside the danone.communities
FPS directly in the capital of three projects to ensure the viability
and sustainability of each of the projects: Grameen Danone Foods
Limited in Bangladesh, Laiterie du Berger in Senegal and NutriGo
in China. Under the terms of the danone.communities Governance
Charter, the Company may invest, directly or indirectly, in com-
panies in which the danone.communities FPS invests, but only if
these co-investments: (i) comply with Danone's corporate purpose,
(ii) strengthen the mission, governance and sustainability of the
companies concerned, and (iii) are made in agreement with the
shareholders of these companies. Each co-investment is subject to
prior review by the Social Responsibility Committee, which issues
an opinion as to its compliance with these requirements.
The projects in which an investment has been made by the
danone.communities FPS (and, for three of them, by Danone di-
rectly) are described hereafter.
As of December 31, 2015, the total amount of the investments made
by the FPS and Danone in these projects was €7.6 million and
€4.3 million, respectively.
Grameen Danone Foods Ltd., Bangladesh
The danone.communities FPSmade its first investment in Grameen
Danone Foods Ltd., a company created in 2006 in Bangladesh at the
initiative of Grameen Bank and Danone.
Grameen Danone Foods Ltd. is a social business that built a factory
for manufacturing micronutrient-fortified (vitamin A, zinc, iron and
iodine) yogurts. Sold by “Grameen Ladies” and in small retail stores
at a price that the poorest families can afford, these yogurts make
it possible to combat children's nutritional deficiencies. In addition
to its health impact, the project also aims to create local jobs to
increase living standards in the community, protect the environment
and save resources.
1001 Fontaines, Cambodia
1001 Fontaines (together with the UV + Solaire company) gives
isolated villages in Cambodia access to a drinking water system
that eliminates the need for inhabitants to drink water from ponds,
which is the cause of a high infant mortality rate and diarrhea-related
illnesses. 1001 Fontaines uses an ultraviolet treatment process
powered by solar energy that kills bacteria present in pond water
and renders it drinkable at a minimal cost.




