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Overview of activities, risk factors

2.7 Risk factors

DANONE

REGISTRATION DOCUMENT 2015

38

RISK IDENTIFICATION

RISK MONITORING AND MANAGEMENT

Environmental risks

Environmental risks are mainly water pollution (essentially

organic and biodegradable pollution), environmental risks

related to (i) cooling installations (ammonia and other cooling

liquids), (ii) the storage of raw materials or products for the

cleaning and disinfection of the plants (acid and alkaline pro-

ducts), especially when these plants are located in residential

areas, and (iii) wastewater treatment. In the event that Danone

is exposed to potential environmental liability as a result of

a significant accident or pollution, its results and reputation

could be adversely affected.

Danone prepares and implements actions, procedures, tools

and policies aimed at (i) preventing and reducing these risks, (ii)

measuring and controlling Danone's impact and implementing

action plans when necessary, and (iii) preparing and making

public Danone's positions, including for example a “Forest

impact study” and a “paper/cardboard packaging and defores-

tation study” to address the risks related to these challenges.

These various initiatives as well as the measures taken in 2015

are described in section 5.2

Information concerning Danone's

social, societal and environmental performance in compliance

with the Grenelle II law

.

Consumer choices, preferences,

or environmental preferences

Consumers' purchasing preferences, notably in the most deve-

loped countries, are increasingly influenced by environmental

concerns (in particular (i) greenhouse gas emissions, mainly

methane emissions by cows producing themilk used by Danone,

and (ii) the preservation of water resources), and such prefe-

rences are at times supported by NGOs (Non-Governmental

Organizations). Distributors also pay increasing attention to

communications with consumers (in particular the labeling

of the products' carbon footprint). If Danone is unable to anti-

cipate changing consumer preferences, in particular through

the implementation of measures to (i) reduce and (ii) disclose

environmental impacts, its activities, results and reputation

could be negatively affected.

Danone undertakes continuous efforts to reinforce its societal

and environmental commitment and to improve themanagement

of its business activities throughout the entire product life cycle,

notably through its Nature strategy. Danone's Nature strategy,

its implementation and achievements in 2015 are described in

section 5.2

Information concerning Danone's social, societal and

environmental performance in compliance with the Grenelle II law

.