Danone SA

BN:FP FR0000120644
Key Information
HQ:
France
Market Cap:
$44.27bn
Primary Market:
Europe & Russia



Company Information

Company Summary

Danone SA is a France-based vertically integrated global food and beverage company. It operates through the following segments: dairy products, plant-based products, waters and specialised nutrition.
Danone logo

Revenue

Total revenue:

$29.6bn

Revenue by Geography

Revenue by Protein

Revenue by Product Type


Disclosures

CDP ScoresLast Reviewed: 11/10/2023

CDP ClimateCDP ForestsCDP Water
YesYesYes

Science Based Target initiativeLast Reviewed: 03/10/2023

Target classificationStatusDate
1.5°CTargets Set2022

Coller FAIRR Protein Producer Index

Analysis Overview

Greenhouse Gas Emissions Deforestation & Biodiversity Water Use & Scarcity Waste & Pollution Antibiotics Animal Welfare Working Conditions Food Safety Sustainability Governance Alternative Proteins

Analysis Breakdown

Risk Score

54/100
Medium Risk



Greenhouse Gas Emissions

62/100

Scope 1, 2 & 3 Target
75/100
Type of Target
0.5/0.5
Strength of Target - SBT
3.25/4.5
Source(s): 2022 Climate Change CDP, page 48; Environmental Data 2022, page 2; Integrated Annual Report 2022, page 28, 29; Science-Based Target Webpage

Innovation on GHG Emission Reduction
55/100
Innovation to Reduce Agriculture Emissions
0.75/1
Feed Farming Innovation
0/2
Animal Farming Innovation
2/2
Source(s): 2022 Climate Change CDP, page 107; A promising pilot in Belgium to further reduce methane emissions in dairy farming Webpage; Building a sustainable future for dairy farming Webpage

Quality of GHG Inventory
60/100
Quality and scope of GHG inventory Completeness
1.5/1.5
Feed & Animal Farming Emissions
0/2
Transparency of GHG Inventory
1.5/1.5
Source(s): 2022 Climate Change CDP, page 124, 126, 129, 131, 132, 134, 136, 146, 236; Danone CDP Climate Chnage 2022, page 129, 146; Environmental Data 2022, page 2, 3

Emissions Performance
50/100
Overall Emission Performance
2.5/5
Source(s): Danone CDP Climate Chnage 2022; Environmental Data 2022, page 2

Climate-related Scenario Analysis
70/100
Climate-related Scenarios Analysis Conducted
1/1
Disclosure of Analysis Results on Material Risks
2.5/3
Disclosure of Financial Material Events & Alignment of CAPEX
0/1
Source(s): 2022 Climate Change CDP, page 35, 38, 63, 65; Danone Annual Financial Report 2022.pdf, page 30; Danone CDP Climate Chnage 2022, page 37, 38, 43, 44, 77, 78, 79, 80, 242



Deforestation & Biodiversity

76/100

Deforestation/Conversion-free Target - Soy for Animal Feed
85/100
Risk Assessment to Identify High-risk Locations
0.25/0.5
Strength of Deforestation Commitment
2/2
Regional & Operational Coverage of Commitment
1.25/1.25
Transparency - Progress Against Commitment
0.75/1.25
Source(s): CDP Forests 2022, page 102, 103, 126; Danone CDP Forest 2022, page 12, 35, 58, 126, 127; Danone Forest Policy 2022, page 2, 16; EXHAUSTIVE 2022 EXTRA-FINANCIAL DATA; Universal Registration Document 2022, page 161, 162, 163

Engagement, Monitoring & Traceability - Soy for Animal Feed
68/100
Supplier Engagement
1/1.25
Compliance monitoring & Traceability
1.88/3.25
Feed Innovation
0.5/0.5
Source(s): 2022 forest policy; CDP Forests 2022, page 12, 47, 58, 72, 126; Danone Profee Project 2017, page 1, 2; Forest Updates on Key Categories 2020, page 2; Supplier Code of Conduct; Sustainable sourcing; Universal Registration Document, page 161; for a regenerative future



Water Use & Scarcity

69/100

Water Use & Scarcity in Facilities
90/100
Monitoring Water Consumption & Withdrawals
0.75/0.75
Target to Reduce Water Consumption & Withdrawals
0.5/1
Disclosure & Performance of Water Risks in Facilities
3.25/3.25
Source(s): CDP Water 2022, page 256; Danone CDP Water Security 2022, page 20, 263, 264; Universal Registration Document 2022, page 157, 158, 159, 160, 223

Water Use & Scarcity in Feed Farming
49/100
Supplier Engagement in Water Use in Feed Farming
1.63/2.5
Disclosure of Water Risks in Feed Farming
0.8/2.5
Source(s): CDP Water 2022, page 45; Danone CDP Water Security 2022, page 10, 11; Regenerative Agricultural Scorecard; Universal Registration Document 2022

Water Use & Scarcity in Animal Farming
68/100
Supplier Engagement in Water Use in Animal Farming
2.6/3
Disclosure of Water Risks in Animal Farming
0.8/2
Source(s): CDP Water 2022, page 11; Danone Water Policy, page 14; Regenerative Agricultural Scorecard; Regenerative Agriculture Scorecard, page 6, 54



Waste & Pollution

33/100

Wastewater at Facilities
60/100
Disclosure & Targets for Wastewater Quality & Volume Discharged
0.75/1.5
Transparency on Water Pollution Risks
1.75/2
Performance on Wastewater Quality & Volume Discharged
0.5/1.5
Source(s): CDP Water 2022, page 59; Danone CDP Water Security 2022, page 48; Integrated Annual Report 2022, page 30; Universal Registration Document 2022, page 157, 160, 223

Nutrient Management in Feed Farming
20/100
Supplier Engagement in Nutrient Pollution Risks
1/4
Innovation to Improve Nutrient Management in Feed Farming
0/1
Source(s): CDP water 2022, page 57; Regenerative Agricultural Scorecard; Regenerative Agriculture Scorecard, page 20

Manure Management in Animal Farming
20/100
Disclosure of Pollution Risks from Manure
0.4/1.25
Supplier Engagement in Manure Management
0.6/1.5
Innovation to Improve Nutrient Management in Animal Farming
0/2.25
Source(s): CDP Water 2022, page 101; Integrated Annual Report 2022, page 30; Regenerative Agricultural Scorecard, page 2; Universal Registration Document 2022



Antibiotics

23/100

Policy on Antibiotics Use
46/100
Policy on Antibiotics Use
2.3/5
Source(s): Animal Welfare Commitment & Full Year 2020 Progress Report, page 2

Disclosure of Quantity of Antibiotics Used
0/100
Disclosure of Quantity of Antibiotics Used
0/5
Source(s): Animal Welfare Commitment & Full Year 2020 Progress Report, page 2



Animal Welfare

44/100

Animal Welfare Policy
63/100
Welfare Policy
1.25/2
Key Welfare Issues
1.9/3
Source(s): Animal Welfare Commitment & Full Year 2020 Progress Report, page 1, 2; Animal Welfare Position Paper 2016, page 5, 6; Dairy Animal Welfare Program 2018, page 10; Universal Registration Document 2022, page 169, 196

Assurance & Certification
35/100
Auditing & Assurance by an Animal Welfare Organisation
1.5/4
Public Reporting on Welfare
0.25/1
Source(s): Animal Welfare Commitment & Full Year 2020 Progress Report; Double certification for DANONE Webpage; Environmental Data 2022, page 5; Universal Registration Document 2022, page 169

Performance on Key Material Risks
35/100
Performance on Key Material Welfare Risks by Protein
1.75/5
Source(s): Animal Welfare Commitment & Full Year 2020 Progress Report, page 2, 4, 10, 11



Working Conditions

68/100

Human Rights
90/100
Strength of Policy
1/1
Due Diligence Process
3/3
Evidence of Remediation
0.5/1
Source(s): Human Rights Policy, page 1; Social scorecard; URD Social Societal and Environmental Responsibility 2022, page 181; Universal Registration Document 2022, page 168, 182, 183, 184, 211

Fair Working Conditions
69/100
Policy for Direct Operations
2/3
Monitoring & Discosure
1.45/2
Source(s): Code of Business Conduct 2022, page 4; Danone Sustainability Principles and Implementation Note for Business Partners 2022, page 3, 7, 14, 15; Danone anti-harassment and discrimination Policy 2020, page 4; Ethic Line and Whistleblowing Statement 2022, page 1, 2; Human Rights Policy, page 4, 5, 6; URD Social Societal and Environmental Responsibility 2022, page 177, 182; Universal Registration Document 2022, page 146, 182, 183

Safety & Turnover Data
35/100
Committee representation of workers
0.5/2
Disclosure of safety and turnover data
1.25/3
Source(s): 2022 social extra-financial data.pdf, page 4; Universal Registration Document 2022, page 171, 174, 175, 218

Freedom of Association
80/100
Strength of Policies
2.5/3
Disclosure of Collective Bargaining Metrics
1.48/2
Source(s): 2022 social extra-financial data.pdf, page 3; Code of Business Conduct 2022, page 4; Danone Sustainability Principles and Implementation Note for Business Partners 2022, page 1, 6; URD Social Societal and Environmental Responsibility 2022, page 177, 178; Universal Registration Document 2022, page 171, 177, 178, 181



Food Safety

31/100

Food Safety System
50/100
Certifications
2/3.5
Performance
0.5/1.5
Source(s): Universal Registration Document 2022, page 33, 186, 187, 214

Product Recalls & Market Bans
13/100
Product Recall Systems
0.13/3
Performance
0.5/2
Source(s): Universal Registration Document 2022, page 23



Sustainability Governance

79/100

Assessment of a Company's Sustainability Governance
79/100
Board Sustainability
1.75/2
Incentives & Policy Engagement
1.95/2.5
Innovation & Benchmarking
0.25/0.5
Source(s): CDP Climate, page 279; CDP Climate 2022, page 288, 296; DANONE POLICY ON ADVOCACY, page 6; Danone CDP Climate Chnage 2022, page 22; Integrated Annual Report 2022, page 41; Isabelle Esser; LISE KINGO Biography; Materiality Report, page 2; Regenerative Agriculture Scorecard; Universal Registration Document 2022, page 145, 147, 148, 266, 267



Alternative Proteins

45/100

Diversification of Products to Alternative Protein Sources
45/100
Existing product portfolio
0.25/2.5
Investing for future growth
2/2.5
Source(s): Danone Drops $2 Million Into Wilk’s Cultured Breast Milk; Danone Makes Its Second Alt-Milk Investment In a Month With Minority Stake In Imagindairy; Essential Dairy & Plant-based products (strategy, research & innovation); Integrated Annual Report 2022, page 9, 22; Silk Webpage; Universal Registration Document 2022, page 12, 198

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Protein Diversification Engagement

Analysis Overview

Climate Strategy - Integration of Protein Diversification Climate Strategy - Governance and Influence Climate Strategy - Adoption of Just Transition Product Portfolio - Resource Allocation Consumer Education - Consistency of Marketing Strategies

Analysis Breakdown




Climate Strategy - Integration of Protein Diversification

Good

Quantify Potential/Opportunity
Lead
TCFD-aligned scenario analysis
Full
Reporting of Scope 3 emissions from animal agriculture
Full
1.5C aligned SBTi Scope 3 FLAG target
Full
Quantifying the opportunity of protein diversification
Full

Protein Diversification Strategy
Partial
Integrating protein diversification into climate transition plans
Limited
Protein diversification target is timebound
Full
Business coverage of protein diversification target
Full
Alignment of target with climate and health guidelines
No Evidence

Measuring Progress
Lead
Disclosing progress against protein diversification target
Full
Annual reporting of progress of protein diversification target
Full



Climate Strategy - Governance and Influence

Lead

Board Oversight
Good
Board support for protein diversification
Limited
Climate expertise of board
Full
Nutrition/health expertise of board
Full

Advocacy
Lead
Disclosing a list of direct lobbying actions
Full
Direct lobbying in line with climate and nutrition
Full
Disclosing a list of indirect lobbying actions
Full
Indirect lobbying in line with climate and nutrition
Full



Climate Strategy - Adoption of Just Transition

Partial

Just Transition Commitments
Lead
Public commitment to Just Transition principles
Full
Commitment to support workers
Full
Commitment to support stakeholders
Full

Just Transition Strategy
Low
Public Just Transition strategy
No Evidence
Consulting social actors in Just Transition strategy development
Limited

Just Transition KPI
DNF
Disclosing Just Transition KPIs
No Evidence
Reporting against Just Transition KPIs annually
No Evidence



Product Portfolio - Resource Allocation

Good

Portfolio Diversification
Partial
Dedicating resources to expanding alternative protein offering
Full
Annual evidence of resource allocation
No Evidence

Improving Nutrition and Sustainability Attributes
Lead
Dedicating resources to improve the nutrition and sustainability of products
Full
Reformulating products to improve nutrition
Full
Reformulating products to improve sustainability
Full



Consumer Education - Consistency of Marketing Strategies

Partial

Commitment Across Geographies/Brands
Good
Commitment to marketing alternative protein sources
Full
Business coverage of marketing commitment
Limited

Nutrition and Sustainabilty
Good
Promoting the nutritional attributes of alternative protein sources
Full
Promoting the sustainability attributes of alternative protein sources
Limited

Consumer Research
DNF
Conducting consumer research on alternative protein sources
No Evidence
Conducting consumer research on healthy diets
No Evidence

Members-only Content

To register as a member of the FAIRR network, please fill out the sign up form or if you need additional information on the FAIRR network, please contact investoroutreach@fairr.org.