Water is at the center of each part of Danone’s activities. We are committed to protect the vital and increasingly scarce resource by working with partners to strengthen the water cycle at the local level and adopt sustainable practices across our value chain.
To meet the challenge, a comprehensive and systematic water risk assessment in two phases has been developed, based on internationally recognized external tools. The first phase uses the World Resources Institute's Aqueduct Water Risk Atlas to identify risky geographic areas and anticipate medium-term developments. The second phase builds on WWF's Water Risk Filter (WRF) to identify water risks at operational sites. These two tools provide indicators grouped according to three risk categories:
- physical risks related to quantity and quality;
- regulatory risks;
- reputational risks.
Based on these two tools, Danone has obtained a water risk mapping and identified sites with major potential risks. For the latter, the Company has strengthened its process of water-related risk management and mitigation, which varies according to the local context, by deploying a third tool: the GEMI Local Water Tool. This allows detailed evaluations for each site identified as most at risk, and development of appropriate action plans.
In 2018, Danone rolled out the water risk assessment process in a systematic way by integrating it into the GREEN environmental audit process (see section Environmental Management System).
In 2018, 9% of production sites are located in high or extreme risk zones according to the Aqueduct tool (WRI - global risk: physical, regulatory and reputation). In addition, in 2018, 64% of Danone sites were audited for their water risk according to the WRF tool. It shows that 14% of production sites pose a significant risk for the Company (see Scope of Environmental Indicators, Methodology Note).
For more information on Danone’s Water strategy and risk management refer to our 2018 Registration Document.