Danone SA

Danone has updated its TCFD aligned scenario analysis as of February 2025 to provide the company with a deeper understanding of the physical risks associated with its animal protein supply chains and the transition risk of changing consumer preferences to plant-based alternatives using 1.5C and below 2C scenarios.

Danone reports that milk-related emissions account for 51.4% of its agricultural carbon footprint, with 34.3% coming from indirect dairy ingredients.

Danone has set a SBTi-validated FLAG target aligned with a 1.5°C trajectory, aiming to reduce absolute Scope 1 and 3 FLAG GHG emissions by 30.3% by 2030 and 72% by 2050 from a 2020 baseline. The company also plans to reduce absolute methane emissions from milk used in diary products by 30% by 2030.

Danone has quantified the financial opportunity of protein diversification under the three scenarios used as part of the company's TCFD scenario analysis. Under an unsustainable scenario, plant-based accounts for 21% of total essential dairy and plant-based sales by 2030. In a consumer-led transition scenario, these sales are 27%. In a 1.5C scenario, essential dairy and plant-based account for 36% of total sales. Additionally, Danone has quantified the avoided emissions associated with the sale of plant-based products; in 2023, the sale of plant-based products mitigated 2,030,000 tonnes CO2-e. In 2020-2022, plant-based sales were in the range of 17-23% of total essential dairy and plant-based sales.

Danone strategically integrated protein diversification into its 2023 Climate Transition Plan. However, it is unclear if the company is using a protein diversification target to support it in reaching its climate goals. The company includes protein diversification as a decarbonisation lever within its "low-carbon by design and portfolio management" emissions reduction pathway.

Danone's does not have a protein diversification target

Danone's does not have a protein diversification target

Danone does not have a protein diversification target

The company does not have a protein diversification target

Danone has reported against the company's target of increasing revenue from plant-based products annually for the past three years. In 2020, Danone reported €2.2 billion in revenue. In 2021, Danone reported €2.3 billion in revenue from plant-based protein sales. In 2022, the company reported plant-based products accounted for 23% of total Essential Dairy & Plant-Based (EDP), with a sales volume calculated by FAIRR as €3.4 billion.

Danone has linked 20% of its annual variable remuneration to emissions reductions across all three scopes, and 10% of its long-term remuneration to GHG emissions across its full value chain.

55% of Danone's board has expertise in CSR/Climate.

27% of Danone's board has expertise in nutrition/health.

Danone has provided a full list of its public policy positions as related to its food business and discloses its direct lobbying actions and topics discussed with policymakers through the EU Transparency Register and US registers.

Danone discloses its direct policy engagement activities in the EU Transparency Register and US registers, and has disclosed thematic areas and topics it is lobbying towards that include positive climate and nutritional outcomes, such as the Paris Agreement and nutritional labelling.

The company has provided a dedicated list of company affiliations with associations, alliances, coalitions, think tanks and other organisations which it supports, such as the European Plant-Based Foods Association, Food Drink Europe and the Global Dairy Platform.

Danone is a member of trade associations that are advocating for both positive climate and nutrition outcomes and has stated that it has an internal guidance process for addressing misalignment of trade association membership should they occur.

Danone has committed to supporting its animal agriculture suppliers in a Just Transition to more sustainable practices.

Danone has committed to upskill and train its workers affected by the company's emission reduction efforts. For example, Danone is training local milk teams on agricultural best practices, partnering with 3Keel to educate ingredient buyers on sustainability issues, and through its DanSkills program, the company is assessing the impact of the green transition on its workforce to define future training needs.

Danone demonstrates evidence of supporting its stakeholders' transition to more sustainable animal protein production practices across multiple geographies including its largest markets. As examples, Danone co-founded the Livelihoods Fund for Family Farming (L3F) to support smallholder farmers transition to more sustainable practices and the company is supporting Spanish milk supplier More Holstein transition to regenerative agriculture. Through L3F, Danone invested €15 million by the end of 2024, and endorsed a number of projects including support for its dairy feed suppliers. Danone is also creating tailored roadmaps for dairy farms based on their regenerative agriculture and decarbonisation progress, using tools like the Cool Farm Tool which is active in 18 countries and CAP2ER project in France.

Danone does not have a Just Transition strategy that covers its animal agriculture supply chains.

Danone does not have a Just Transition strategy. However, to support stakeholders' transition to more sustainable regenerative agricultural practices, it conducted the following: surveys with farmers to assess livelihoods, assessed agricultural workers' working and living conditions, and implemented an assessment tool and scorecard to diagnose, define and implement improvements on farms. Additionally, the company has consulted with affected communities around its approach to water risk management, recognising the importance of stakeholder engagement in reaching its sustainability commitments.

Danone does not have a Just Transition strategy and therefore does not have associated KPIs to track progress.

Danone does not have a Just Transition strategy and therefore does not have associated KPIs that are reported annually to track progress.

Danone launched own-brand plant-based products in its largest European and US markets in the past year. These include own brand Alpro high-protein plant-based yogurt and a caramel version of its barista range, Silk Kids oat milk blend and cold foam creamers and Blédina plant-based desserts.

Danone evidences several types of resource allocation to improve the perfomance of alternative protein products in the past year. These include specialised hubs dedicated to plant based innovation in Belgium and the United States; Global Research & Innovation Centres focused on plant-based product research in Paris-Saclay, France and Utrecht Science Park in the Netherlands; and partnerships with Michelin, Crédit Agricole and DMC Biotechnologies to invest in a Biotech Open Platform for precision fermentation manufacturing scale up. Additionally, Danone acquired a majority stake in Kate Farms, a US business offering plant-based, organic nutrition products for both medical and everyday needs.

Danone has a minimum health and nutrition requirement for its alternative protein source portfolio aligned with a government-endorsed nutrient profiling system. The company aims for ≥85% of its dairy, plant-based, water and aqua drinks portfolio to have a Health Star Rating of ≥3.5 by 2025, achieving 87.7% as of 2024.

Danone evidences reformulation of alternative protein products to improve nutritional attributes. The company formulated new products and reformulated existing plant-based products with increased protein content, no added sugar and added micronutrients. These include Fortimel Plant-Based High Energy High Protein, Silk oat milk creamer with no added sugar, and Silk plant-based drink for children with 8g of protein, Omega 3, prebiotics, and essential vitamins and minerals.

Danone provides a high-level statement that it is reformulating products to improve sustainability, which includes alternative protein products. The company includes reformulation projects for low carbon by design as a decarbonisation lever for its non-dairy ingredients, however, specific examples of alternative protein products reformulated with improved sustainability attributes beyond the company's existing plant-based Fortimel range are not disclosed.

Danone has committed to marketing and merchandising strategies related to alternative proteins in the US, however, this is not the company’s largest European market. The company's US brands Silk and So Delicious were included in plant-based dairy campaigns during the past year. Silk continued its Feel Planty Good campaign to show consumers how its plant-based dairy products can integrate into everyday consumption patterns while meeting nutritional and sustainability needs. The company is investing to expand this campaign.

Danone is marketing and merchandising alternative protein products in its largest European and US markets. The company's Alpro and Silk plant-based brands promote products on their social media platforms, such as YouTube, X, and Instagram, and leverage partnerships with influencers. In 2025, Danone also hosted pop-up events like Cereal Liar in New York where consumers taste-tested its plant-based milk alternatives to target the breakfast occasion, and the company's Silk brand held a pop-up event in New York City promoting its Vanilla Almond Milk. The company's marketing strategy focuses on the taste, sensory benefits and convenience of its plant-based options, with its Alpro brand adapting the packaging of its products in Europe to spotlight the 5 essential nutrients to consumers.

Danone has made a high-level claim that it is working to ensure its alternative protein source products are accessible and affordable and is doing this by keeping prices rises below 0.7% overall, with prices in Europe actually decreasing by 1%. However, there is no evidence of specific company actions to improve accessibility and affordability of plant-based products.

Danone has conducted consumer research relating to demand for alternative protein sources, however, there is no evidence of research relating to consumer trends in the sector. The company identifies that consumers are seeking flexitarian food options.

Danone has used consumer research relating to healthy diets to inform its marketing and merchandising strategy for alternative protein sources. The company identifies that consumers are seeking products with high nutritional quality or the absence of certain ingredients, and has therefore developed a ''Future of Health'' strategy across its product categories, with a particular focus on protein and gut health. The company launched alternative protein products with these qualities and marketed their nutritional benefits. Additionally, the company identified common deficiencies in nutrients like vitamin D and B12 across certain regional populations, and responded by fortifying plant-based products under its Alpro brand.