Danone SA

Danone completed TCFD scenario analysis under 3 IPCC scenarios including a 1.5C scenario. Danone has considered both physical risks and transition risks in the company's scenario analysis which include the impact of heat and water stress on milk production and changing consumer dietary patterns to plant-based products. Danone is responding to the risk and opportunity of changing consumer preferences by providing consumers with plant-based products as an alternative to dairy products, disclosing evidence of growing its portfolio to overcome this risk and seize this opportunity.

Danone discloses a full breakdown of the company's emissions and has reported that 31.5% are from milk and 20.1% are from dairy ingredients.

Danone disclosed a 1.5C SBTi validated target for Scope 3 emissions. The company aims to reduce scope 1 and 3 FLAG GHG emissions by 30.3% by FY2030 from a FY2020 base year.

Danone has quantified the financial opportunity of protein diversification under the 3 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 accounts for 36% of total sales. Additionally, Danone has quantified the avoided emissions associated with the sale of plant-based products; in 2022, the sale of plant-based products mitigated 2,030,000 t CO2eq.

Danone has integrated protein diversification into its 2023 Climate Transition Plan. Although the company has mentioned a plant-based sales target of reaching EUR 5 Bn by 2025 from a 2019 baseline in previous reporting years, the company has not mentioned this target in its current climate transition plan. It is unclear if the company is still working towards this target.

Danone's protein diversification target of increasing revenues from plant-based products is time-bound to 2025.

Danone plans to triple it plant-based sales to EUR 5 billion by 2025 from a 2019 baseline is its entire business.

There is no evidence that these targets are aligned with recognised climate and health guidelines for dietary transition.

In 2022, plant-based products accounted for 23% of total Essential Dairy & Plant-Based (EDP) sales volumes equaling EUR 3.4 Bn sales (FAIRR analysis).

Danone has reported annually against the company's target of increasing revenue from plant-based products for the last three years. In 2020, Danone reported €2.2 Bn in revenues. In 2021 Danone reported €2.3 Bn in revenues from plant-based protein sales. In 2022, the company reported plant-based products accounted for 23% of total Essential Dairy & Plant-Based (EDP) sales volumes equaling EUR 3.4 Bn sales (FAIRR analysis).

Danone has integrated protein diversification into its climate strategy which is regularly reviewed by the company's board of directors. However, Danone has not mentioned a protein diversification target in the company's most recent climate transition plan and it is unclear if the company's board has regular oversight of progress towards a protein diversification target.

Danone has 4 out of 11 (36%) board members with CSR/ Climate experience.

Danone has 3 board members (27%) with nutrition/health experience.

Danone acknowledges a comprehensive list of its direct advocacy activities. The company actively engages with government authorities across a diverse spectrum of topics. These topics include climate change, nutrition, health, regenerative agriculture, infant and maternal health, information to consumers, nutritional care as part of cancer care, product quality and safety standards, and nature.

Danone disclosed that its lobbying is aligned with positive outcomes for climate change, and nutrition and health. These climate lobbying efforts include promoting clean energy, improving environmental due diligence, improving air quality, carbon pricing, regenerative agriculture, reducing methane in agriculture, and protecting wetlands. Danone lobbying around nutrition relates to supporting of delivering nutrition to mothers and infants in alignment with the World Health Organization's global public health recommendations.

Danone acknowledges a list of 65 indirect advocacy activities it participates in through alliances, partnerships, memberships, coalitions and forums. The company also disclosed its provided a total of EUR 1,086,673 in financial contributions to these organisations in the last reporting year.

Danone disclosed that its indirect lobbying is aligned with positive outcomes for climate change, and nutrition and health. These climate lobbying efforts include promoting reducing methane in dairy, renewable energy, eliminating deforestation, sustainable sourcing of commodities, aligning the dairy industry with the Paris Agreement, and regenerative agriculture. Danone's lobbying around nutrition relates to supporting healthy living of consumers and medical nutrition,

The company is committed to supporting farmers in a just transition towards more sustainable agricultural practices.

Danone has provided evidence of upskilling and reskilling its workers through its project Avenir and its Future Skills program which provide learning modules for its Villecomtal site in France evolve towards plant-based. In 2023, 138 employees were trained in Villecomtal France.

Danone disclosed evidence of supporting its dairy supplier's decarbonise through its engagement with the following initiatives: The Global Methane Hub, collaboration Royal Friesland Campina, The Cool Farm Tool, CAP2ER, Farming for Generations (F4G) Global Alliance, North American Regenerative Agriculture Program, and Flora Project. Support to dairy farmers include supporting farmers to adopt regenerative agriculture practices and decarbonise through investment into research and innovation, creating knowledge-sharing platforms, and implementing climate solutions on farms. These support measures have been implemented across the EU, Central America, Africa and North America and Latin America covering the company's key operating geography's.

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

Danone does not have a Just Transition strategy, however, to support farmers adopt more regenerative agricultural practices, the company conducted surveys farmers’ economic resilience, livelihoods and the priority labor rights of their workers. The company designed its survey in consultation with the WWF, FAIR Labour Association and SAI platform to align this assessment with best farming practices.

There is no evidence for this KPI.

There is no evidence for this KPI.

Danone is is dedicating resources towards diversifying its protein portfolio by re-formulating its own brand products, engaging in partnership ventures with Carrefour and Unilever, through its two specialized plant-based nutrition centers in Belgium and the US, and its International Daniel Carasso Research & Innovation Center which research plant-based products. Danone has also launched plant-based products under its brands Alpro, Silk, So Delivisou, Aptamil and Fortimel, launching them in North America, Japan, the UK, and Europe.

There is no evidence for this KPI.

Through Danone's "Renew Danone" strategy the company is working towards improving the nutrition of its products. The company has 1,700 staff spread across 55 subsidiaries in France, Singapore, Spain, Belgium, the US and China conducting research to improve the nutrition of the company's products. Of Danone's 6 specialized R&D centres 2 are dedicated to research on nutrition and 2 is dedicated to research towards plant-based. Danone's research on decarbonisation has a particular emphasis on alternative protein sources. Additionally, the company demonstrates a commitment to integrating carbon considerations into its innovation and reformulation processes, focusing on developing low-carbon dairy, plant-based, and hybrid product offerings to promote sustainable diets and assesses its portfolio against Nutri-Score and Health Star rating.

Danone is (re)formulating numerous products within its portfolio to improve its nutritional attributes, launching these products in Europe and North America. Examples the company provided include its Fortimel plant-based nutritional supplement, Alpro drinkable high protein, Alpro plant based alternative yogurt supporting gut health, Silk Greek yogurt alternative in tube format, Silk oat and almond beverages with protein, and So Delicious Dairy Free plant based alternative yogurt

Danone has disclosed two examples of (re)formulation of products to improve sustainability attributes; creating a plant-based version of its Fortimel energy supplement and launching its dairy and plant-based blended Aptamil formula.

Danone's 'Making Every Age the Best Age' campaign includes a commitment to market plant-based products. This marketing strategy will be delivered through print magazine, news, radio and digital channels.

From Danone's disclosure it is unclear what brands the company’s Making Every Age the Best Age campaign will cover. Additionally, Danone has disclosed that this marketing campaign is limited to the company's French market and has not disclosed if the company has plans to expand or introduce additional market-specific campaigns for the company's alternative protein source offering in other geographies.

Danone has provided evidence of promoting the nutritional attributes of the company's products on the company website, brand websites, social media, and through product labelling. Danone is using Nutri-Score, Health Star Rating and other types of front-of-pack and nutritional labelling on its products. Danone has promoted the nutritional attributes of products under the website of the following brands, Alpro, Silk, Fortimel and Neocate claiming that they are healthy, have no sugar, have high protein, and meet the nutritional needs of consumers. Danone is additionally, promoting the nutritional attributes of its brands on social media such as the company's Alpro brand which is being promoted on YouTube as being high in protein, full of Vitamin D, B2 and calcium.

Danone is using the B Corp certification to label the company's products as sustainable. Danone has not disclosed which brands and geographies the company has been able to gain B Corp certification and instead reports the % of sales covered by the B Corp certification. Danone's B Corp certified sales are at 83%. Examples of Danone promoting its brands' sustainability on websites is through brands Alpro and Silk. These two brands are marketed as lower carbon footprint compared to dairy.

Danone has identified consumers in Europe are looking to increase their plant-based protein consumption, however, it is unclear if the company conducted consumer research to come to these conclusions.

Danone has identified consumers in Europe are looking to increase their consumption of healthy products, however, it is unclear if the company conducted consumer research to come to these conclusions.