PRESERVE AND RENEW THE PLANET'S RESOURCES

PRESERVE AND RENEW THE PLANET'S RESOURCES

We strive to be a game-changer to foster positive solutions for the planet. We commit to sustainable sourcing for all our ingredients and to enhance the circular economy of packaging. We will protect soil health through regenerative agricultural practices co-developed with partners and we will amplify our ambitious water stewardship journey. We play our part in the fight against climate change by implementing carbon positive solutions and aiming to achieve carbon neutrality by 2050.

We strive to be a game-changer to foster positive solutions for the planet. We commit to sustainable sourcing for all our ingredients and to enhance the circular economy of packaging. We will protect soil health through regenerative agricultural practices co-developed with partners and we will amplify our ambitious water stewardship journey. We play our part in the fight against climate change by implementing carbon positive solutions and aiming to achieve carbon neutrality by 2050.

For more informationDownloads

To deliver on our 'One Planet. One Health' vision, we are focusing on four key ambitions: fight climate change, protect water cycles, co-build the circular economy and promote regenerative agriculture. Strengthened collaboration with all our partners along the supply chain will help us achieve these transformations.

 

 

For more information related to coverage rate and methodology, please refer to our Methodology Note available in the download center.

For more information on our Environmental Performance, see our Exhaustive 2018 Environmental Data.

 

OUR 2018 PERFORMANCE

 

Danone has built its environmental management system based on the ISO 14001 international standard.
This system ensures continuous improvement of environmental performance, regulatory compliance and employee awareness.

Danone evaluates the implementation of the environmental management system during the GREEN (Global Risk Evaluation for Environment) audits.

ISO 14001 certifications in significant production sites is a prerequisite to get the highest level of performance (level of excellence) of GREEN evaluation (see paragraph below).

Percentage of ISO 14001 certified sites and volumes

SUBSIDIARIES IMPLEMENTATION OF ENVIRONMENTAL MANAGEMENT SYSTEMS

In 2018:

86%
 

of entities have established an Environmental Management System which includes Danone’s Environmental Policy and the associated strategy /management plan (Danone Way scope, see our Methodology Note and learn more on Danone Way in section Be certified as a B Corp).

GREEN PROGRAM (GLOBAL RISK EVALUATION FOR ENVIRONMENT)

Danone has rolled out the GREEN program worldwide, which identifies and monitors the main environmental risks of production sites with external audits. This includes evaluation of physical, regulatory and reputational risks and define a level of compliance by according scores. In 2018, GREEN guidelines were updated to integrate water risk assessment based on WWF's Water Risk Filter (WRF) tool in the evaluation grid (see section Water).

 

For non-compliant sites, action plans are deployed to remedy non-conformities. To monitor its implementation, Danone increases in this case, the frequency of GREEN audits.

 

As of end of December 2018, 66% of Danone’s industrial sites (Production Sites Environment Scope; see Methodology Note), i.e. 124 sites, had undergone an external GREEN audit at least once. Out of these 124 sites, 108 complied with the company's standards (scoring over 800 out of 1,000). While, in 2017, 69% of the production sites had undergone an external GREEN audit at least once.

 

For more information, refer to our 2018 Registration Document and to our Exhaustive 2018 Environmental Data.

ENVIRONMENTAL INVESTMENTS AND EXPENDITURES

In 2018, Danone’s investments in environmental protection amounted to €31 million, approximately 3.4% of Danone’s total capital expenditure (in 2017, €27 million, approximately 2.8%). The main categories of these investments in 2018 included:

 

  • environmental compliance: waste treatment, wastewater treatment, treatment facilities, noise measurement, air quality, etc;
  • investments to reduce carbon emissions (energy savings, use of renewable energies, logistics and eco-design of packaging);
  • Operating expenditures related to the environment amounted to €123 million in 2018 (€120 million in 2017). They included €33 million for waste, water and air quality management, €61 million for taxes on packaging, and €29 million for other expenditures.


To grow our business sustainably and ensure our global food cycle is resilient, we must address the systemic challenge of climate change. Danone is fighting climate change by reducing its carbon footprint and working to sequester more carbon. We have committed to building a carbon-neutral value chain by 2050 and our carbon reduction targets were officially validated by the Science Based Targets initiative in 2017:

  • reduce emissions intensity by 50% for our full scope of responsibility (scopes 1, 2 and 3) by 2030
  • and achieve a 30% reduction in absolute emissions on scopes 1 and 2 by 2030

MEASURE OF GREENHOUSE GAS EMISSIONS

 

Danone measures greenhouse gas emissions on its extended, direct and shared responsibility scope following the three categories defined in the GHG Protocol Corporate Standard: scopes 1, 2 and 3.

  • Scope 1: direct emissions from stationary combustion facilities and refrigeration units installed at the industrial sites and warehouses under Danone’s operational control, as well as the employee vehicle fleet under the Company’s operational control.
  • Scope 2: indirect emissions arising from the production of electricity, steam, heat or cold purchased and consumed in industrial sites and warehouses under Danone’s operational control. 
  • Scope 3: all indirect emissions due to the company’s activities that are not considered in scope 2. This covers all the emissions arising from the complete value chain, including suppliers’ and consumers’ emissions. For instance, scope 3 emissions can encompass agriculture, ingredients, packaging, transportation and distribution of purchased goods and services, and end of life of products sold.

 

Greenhouse gas emissions in scope 1 and 2

The direct and indirect greenhouse gas emissions of scopes 1 and 2 (see description above) are calculated using the methodology described in the GHG Protocol Corporate Standard (Greenhouse Gas Protocol) (see Methodology Note).

 

In January 2015, the GHG published the GHG Protocol Scope 2 Guidance (see Methodology Note) which introduces “dual reporting” for scope 2 accounting: location-based method and market-based method. We set our goal of reducing emissions using the market-based method. This enables us to better take into consideration the impact of the proportion of renewable energies that are used.

 

For more information see our Exhaustive 2018 Environmental Data.

 

TARGET: Reduction in CO2 footprint (absolute emission, tCO2 equivalent)

PERFORMANCE 2018
20.3%

absolute reduction of scope 1 and 2 emissions, baseline 2015(1)

TARGET
30%

absolute reduction on Danone scope 1 and 2 emissions by 2030

(1) Based on constant scope of consolidation and constant methodology

 

Scope 1 & 2 emissions market-based (in ktons CO2eq)    20172018
Scope 1644753
Scope 2817679
Scope 1 & 214601 432


Emissions in tons of CO2 equivalent on scope 1 and 2 decreased by 1.9% between 2017 and 2018, and by 14.8% since 2015.


Based on constant scope of consolidation and constant methodology, the total emissions of CO2 equivalent per ton on scope 1 and 2 fell by 12.2% compared to 2017 and by 20.3% since 2015, mainly thanks to the purchase of electricity from renewable sources.

Greenhouse gas emissions in scope 3

In parallel to calculating its scope 1 and 2 emissions, Danone also calculates its indirect greenhouse gas emissions of scope 3 (see description above and Methodology Note) following the product life cycle approach. It consists of conducting an analysis considering emissions at every stage of product life cycle: raw materials (including milk and upstream agriculture), packaging, production, logistics, storage, use of the sold product in retail and at home, and end of life of sold products. This method enables us to identify the greatest reduction levers.

 

In 2018, emissions on scope 3 amount to 24.9 million tons CO2 equivalent (covering 93% of Danone sales volumes). These emissions decreased by 5.8% compared to 2017, based on constant scope of consolidation and constant methodology. Breakdown of emissions by stage of the product lifecycle is available in our Exhaustive 2018 Environmental Data.

Greenhouse gas emissions on full scope (scopes 1, 2 and 3)

TARGET: Reduction in CO2 footprint (emission intensity, g/CO2 equivalent/Kg of sold products)

PERFORMANCE 2018
15.6%

intensity reduction full scope, baseline 2015(1)

TARGET
50%

reduction in emission intensity on Danone’s full scope by 2030

(1) Based on constant scope of consolidation and constant methodology

Greenhouse gas emissions on full scope (scope 1, 2 and 3) (in ktons of CO2eq)

In 2018, full scope emissions (scope 1, 2 and 3) are up to 26.3 million tons CO2 equivalent (covering 93% of Danone sales volumes).

 

The full scope emissions ratio (scope 1, 2 and 3) amounts to 711.0 gCO2 equivalent per kg of sold product. Based on constant scope of consolidation and constant methodology, this ratio decreased by 5.8% compared to 2017 and by 15.6% since 2015, driven by reduction actions (purchase of electricity from renewable sources, logistics optimization, use of reusable materials for packaging, etc).

 

With 94.5% of Danone full scope emissions, scope 3 is the largest contributor, ahead of scope 1 emissions (2.9%) and scope 2 emissions (2.6%).
Within scope 3, main sources of emissions relate to the purchase of goods from agriculture (milk, dairy ingredients, other raw materials, 59.4% of full scope), ahead of packaging (10.4% of full scope), transportation & distribution upstream and downstream (9.6% of full scope) and use of sold products (6.0% of full scope).

Emissions linked to the purchase of goods from agriculture include the purchase of milk (68.9%), dairy ingredients (15.8%) and other raw materials (15.3%).
 

ENERGY CONSUMPTION

Danone is committed to energy consumption saving and promoting renewable energy use.

Reduce energy consumption of production sites

TARGET: Reduce energy consumption of production sites (kWh/T product, baseline 2000)

PERFORMANCE 2018
46%

energy intensity reduction

TARGET
60%

energy intensity reduction by 2020

 

Evolution in total energy consumption intensity at production sites since 2000 (in kWh/tons of product) (1) (Production Sites Environment Scope; see Methodology Note).

(1) for the reporting scope of each of the years concerned

Danone's energy consumption intensity (in KwH/ton of product) increased by 11% in 2018 relative to 2017, mainly due to the integration of WhiteWave. On a comparable scope, Danone’s energy consumption intensity decreased by 3.1% between 2017 and 2018 (Production Sites Environment Scope; see Methodology Note), mainly driven by improved energy efficiency in Waters Division and Early Life Nutrition activities of the Specialized Nutrition Division.

 

Since 2000, Danone has reduced its total energy intensity by 46%, and by 53% on a comparable scope.

 

For more data on our energy consumption, see our Exhaustive 2018 Environmental Data.

Promote renewable energies

Since 2017, Danone is part of the RE100 initiative (a global and collaborative initiative joining together more than 100 companies committed to 100% renewable electricity). Danone has made a commitment to move toward 100% renewable electricity by 2030; 50% by 2020.

PERFORMANCE 2018
34%

renewable electricity (kWh)

TARGET
100%

Renewable electricity by 2030, 50% by 2020

In 2018, 40 production sites purchased electricity from 100% renewable sources (wind power, hydropower, etc.).

 

These purchases represented 34% of Danone’s total electricity purchases in 2018, versus 18% in 2017 (Production Sites Environment Scope; see Methodology Note). At the local level, Danone is also testing projects to produce and use renewable thermal energy. Since the early 2010s, some sites have adopted energy innovations such as wood-fired furnaces, methane digesters and biofuel.

 

In 2018, renewable energy consumption represented 16% of Danone’s total energy consumption, versus 11% in 2017.

ELIMINATE DEFORESTATION FROM OUR SUPPLY CHAIN

Palm oil policy

In 2018, Danone used approximately 71,443 tons (versus 39,000 in 2017) of palm oil, an increase mainly due to WhiteWave acquisition. Danone uses palm oil in certain end-user products, mainly in the Early Life Nutrition and Essential Dairy and Plant-Based businesses.

PERFORMANCE 2018
58%

Palm oil RSPO fully segregated.

TARGET
100%

Palm oil RSPO fully segregated by 2020

Since 2014, 100% of palm oil purchased by the Early Life Nutrition business was certified “RSPO (Roundtable on Sustainable Palm Oil) segregated” (traceable back to the plantations, with the backing of The Forest Trust). In 2018, 58% of the palm oil purchased by the Company was certified “RSPO segregated”, a decrease mainly driven by WhiteWave acquisition. It reaches 96% of palm oil purchased certified “RSPO Segregated” excluding WhiteWave scope. In line with our target and following WhiteWave acquisition, Danone is working to ensure the compliance of its additional palm oil supplies with its Palm oil policy.

USE ONLY NATURAL REFRIGERANTS

Emissions of ozone-depleting substances(ODS) n ton equivalent CFC20172018
CFC00
HCFC0.1070.236

 

Danone uses refrigerant gas within its operation for cooling mainly for Essential Dairy and Plant-Based and Waters Divisions. Emissions arising from the leakage of refrigerants that deplete the ozone layer (only HCFC is used), within Danone production sites, increased between 2017 and 2018 mainly due to WhiteWave integration. HCFC gas is under phasing out schedule through gradual replacement of equipment using this gas, aligned with the Montreal Protocol requirement.

 

Some refrigerants also have an significant impact on greenhouse gas emissions, particularly HFCs. As part of the Consumer Goods Forum (CGF), under the refrigeration resolution, Danone has committed to cease buying cooling equipment with HFCs for its own fleet at point of sales (since 2010), and within its direct operations (since 2017) and to move to climate friendly refrigerants (natural or low Global Warming Potential “GWP”).

 

Since 2010, Danone updated its proprietary refrigerator fleet at points of sale to ensure that only natural refrigerants are in use. By also selecting refrigerators with better energy performance and ensuring their end-of-life recycling, Danone achieves both increased energy performance and reduced environmental impact related to gas leakage. By end of 2016, Danone achieved 100% of total newly purchased refrigerators and coolers installed at point of sale using climate-friendly refrigerants in regions where this is legally allowed and available.

 

At year-end 2018, Danone monitoring is performed according to the extended scope (industrial and commercial cooling equipment) of the new refrigeration resolution and achieved at end of 2018:

  • For its industrial equipment: 99%
  • For its commercial equipment: 97%

 

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.

PROTECT NATURAL MINERAL WATER RESOURCES

PERFORMANCE 2018
100%

of Waters division sites have run SPRING audits

TARGET
100%

of Waters division sites to have run SPRING audits by 2020

Danone’s goal is to protect watersheds and their natural ecosystems to ensure the sustainability of water resources where we operate. Thanks to a scientific and policy collaboration with RAMSAR Convention and IUCN a new method was co-developed to improve local water resource management. Known as SPRING (Sustainable Protection and Resources managING), this defines management standards for each source of spring water bottled by the Company.

 

Danone 2020 objective was to deploy this tool at every Waters division site, to assess local water resource management (to identify pollution risks and risks of water scarcity) and to establish a continuous improvement plan. This objective was achieved in 2017, three years in advance of the target year.

 

In parallel, the risk analysis makes it possible to refine the diagnosis and to set up action plans answering context-based issues at watershed. Danone promotes collective action and partnerships with public or private entities for an integrated watershed management. For example, in 2017, the Company renewed its three-year partnership with the RAMSAR Convention (Convention for the Protection of Wetlands of the United Nations) for the preservation of wetlands.

Subsidiaries performance towards our ambition

 

In 2018:

 

59%

 

of entities have implemented actions to protect the water resource from which water is extracted (Danone Way scope, see our Methodology Note and learn more on Danone Way in section Be certified as a B Corp).

REDUCE WATER CONSUMPTION IN PRODUCTION SITES

TARGET: Reduce water consumption in production sites (Process water intensity (m3/T product), baseline 2000)

PERFORMANCE 2018
48%

of water consumption intensity reduction, baseline 2000

TARGET
60%

of water consumption intensity reduction by 2020

 

In 2018, total water withdrawn from the surrounding area was up to 74,493 thousand of cubic meters (compared to 68,685 thousand m3 in 2017).

Danone water consumption increased by 8.5% from 2017 to 2018, mainly due to WhiteWave integration. On a comparable basis, total Danone water consumption fell by 2.4% from 2017 to 2018 (Production Sites Environment Scope; see Methodology Note). 

  • Almost 42% of total water withdrawal were used in finished products composition, primarily at bottling sites. These volumes increased by 5.4% between 2017 and 2018, mainly due to WhiteWave integration.
  • The other 58% of total water withdrawal (43,311 thousand of m3) were used in production processes (compared to 39,113 thousand m3 in 2017) leading to an increase of water consumption intensity per ton of product by 4.2% between 2017 and 2018, mainly due to WhiteWave integration.

                       

On a like-for-like basis, Danone water in process intensity decreased by 5.7% between 2017 and 2018 (Production Sites Environment Scope; see Methodology Note), mainly thanks to action plans implemented in Essential Dairy and Plant-Based Products Division (following the water audit performed by Veolia), Waters Division and Early Life Nutrition activities of the Specialized Nutrition Division in high water scarcity locations (following water risk assessment action plan), which contributed to the Company performance.

 

Since 2000, Danone has reduced its water in process intensity by 48% and by 53% on a comparable basis.

 

For more information on our Water data, see our Exhaustive 2018 Environmental Data.

 

Production processes' water consumption intensity since 2000 

QUALITY OF WATER DISCHARGE

TARGET: Return clean water to nature compliant with Danone ‘Clean Water Standards’ for waste water

PERFORMANCE 2018
74%

Of clean water to nature

TARGET
100%

of clean water volumes to nature by 2020 aligned with Danone Clean Water Standards.

To ensure that the used water returned to nature is of adequate quality for the downstream ecosystem and users, in 2015 Danone implemented strict corporate standards for its production sites discharging wastewater directly to the natural environment: the Danone “Clean Water Standards”. Clean Water Standards performance indicators are based on standard thresholds and measured according to national or international methodologies.

 

As of end of December 2018, 75% of production sites under the Clean Water Standards scope were compliant with the standards compared to 67% in 2017. It represented 74% of clean water returned to nature compared to 58% in 2017 (see Methodology Note).

 

Quantities of COD discharged after treatment (including external treatment) by the companies’ production sites at December 31, 2017 and 2018

(Production Sites Environment Scope; see Methodology Note)

 20172018
Final discharge of Chemical Oxygen Demand (COD) (in thousands of tons)6.96,63
Net COD Ratio (kg/ton of product)0.200,18

 

The Company's net Chemical Oxygen Demand (COD) (i.e. after treatment) per ton of product decreased by 9.7% from 2017 to 2018. This decrease is mainly linked to the decrease of raw material and finished products losses within the Essential Dairy and Plant Based Products Division, due to reduction actions.

 

Danone wants to play its part in accelerating the transition from a linear to a circular economy of packaging. In November 2016, we published our Packaging Policy affirming our commitment to co-building a circular economy of packaging by sourcing sustainable materials and creating a second life for all plastics. In October 2018, we updated our policy to reflect the progress we have made and set out how we will accelerate our journey, supporting the global transition to the circular economy of packaging.

 

As part of circularity, Danone is also acting for industrial waste reduction and food waste reduction.

PACKAGING DESIGNED FOR CIRCULARITY

Use of 100% reusable, recyclable or compostable packaging

At Danone, we want to ensure that packaging plays a key part in ensuring protection of safety and nutritional benefits of products while being compatible with circular economy principles in that it is fully reusable, recyclable or compostable. 
This can be achieved by leveraging product design, exploring shifting packaging from plastic to materials with higher recycling rates and participating in developing recycling systems with our stakeholders.

PERFORMANCE 2018
87%

of our total packaging is reusable, recyclable or compostable

TARGET
100%

of total packaging is reusable, recyclable or compostable by 2025

As of December 31, 2018, 87% of total packaging put in the market was reusable, recyclable or compostable (vs 86% in 2017) (Packaging scope; see Methodology Note).

This  was achieved thanks to WhiteWave integration as main packaging used for Plant-based products are paper-based and thus are recyclable by design. This impacted positively the packaging footprint profile.

 

By 2025, Danone is aiming to achieve 100% total packaging reusable, recyclable or compostable by:

  • shifting packaging for certain product lines from plastic to materials with higher recycling rates (paper, glass, etc.);
  •  for polystyrene (PS) packaging, we will follow a dual strategy: significantly reduce our dependency on this material while collaborating to develop the first recycling streams.
  • by 2021, phase out all PVC packaging since it interferes with the recycling process for PET.

Streamlining the use of materials and developing new delivery models

Danone will design its products in a way that optimizes material use and eliminate waste. Our objectives are:

  • to develop alternative reuse or alternative delivery models where relevant by launching alternatives to plastic packaging or single-use packaging in all our major water markets by 2025.
  • to take action towards eliminating problematic or unnecessary plastic packaging of our products

 

As of today, we are assessing alternatives to plastic packaging or single-use packaging in all our major water markets. As for problematic or unnecessary plastic packaging, we will pilot alternative to plastic straws with our Indonesian brand AQUA in 2019.

REUSED, RECYCLED OR COMPOSTED IN PRACTICE

Co-building effective, efficient and inclusive systems for collection and recycling

While designing packaging to be fully circular, ensuring it will be reused, recycled or composted requires effective waste management systems in place. By 2025, our goal is to have initiated or supported collection and recycling initiatives in each of our top 20 markets (by sales volume, representing around 90% of our total sales).

 

In 2018:

72%

of entities have a recycling system (collection, sorting, recycling) assessment in place and have identified main stakeholders for improving on at least one of these 2 dimensions: recycling or regulations (Danone Way scope, see our Methodology Note and learn more on Danone Way in section Be certified as a B Corp).

 

In all countries where we operate, we work with relevant stakeholders to strengthen collection and recycling systems. This is achieved thanks to our Danone Ecosystem Fund but also through partnerships such as the partnership with the Inter-American Development Bank signed in 2017. More recently, we invested in the Closed Loop Fund, a voluntary private initiative that develops large scale recycling and circular economy infrastructure in the United States. We are looking to invest in similar initiatives, for instance through Circulate Capital in South East Asia.

 

Refer to our project section to see how we engage our stakeholders on this issue.

Achieve zero landfill for plastic industrial waste

Danone is working to ensure that its production sites follow circular economy principles. In 2016, we set a goal of zero plastics to landfill for our industrial waste by 2020 in countries with developed collection systems, and by 2025 globally. This will be achieved with better solutions through partnerships and alliances, and our production sites have already started the work with our partners to maximize their recovery rate.

PERFORMANCE 2018
3%

of post-industrial packaging waste are sent to landfill

TARGET
0%

of packaging sent to landfill by 2020 in countries with developed collection systems and by 2025 in all our production sites

Globally, in 2018, there were 119 thousand tons of packaging waste generated by Danone production sites; so far 97% of total packaging waste is recycled or incinerated with energy recovery (Production Sites Environment Scope; see Methodology Note). In comparison, in 2017, 109 thousand tons of packaging waste had been generated and 91% of total packaging waste was recycled or incinerated.

PRESERVATION OF NATURAL RESOURCES

Reintegrating recycled materials

Danone wants to play its part to close the loop by increasing the amount of recycled material used in its packaging.

 

Regarding plastic packaging, we plan to reach an average of 25% recycled material for all our plastic packaging by 2025. In our Water Division, we strongly committed to a responsible circular approach “from the bottle to the bottle”:

  • We plan to reach an average of 50% recycled material for our water and beverage bottles by 2025.
  • For bottles under the evian® brand, we will use 100% recycled PET by 2025.
  • We will launch 100% recycled PET bottles, to offer consumers more circular choices, starting in 2018 and reaching all our major markets by 2021.
PERFORMANCE 2018
6%

recycled material in average for our plastic packaging (1)

TARGET
25%

recycled material in average for all our plastic packaging by 2025

PERFORMANCE 2018
12%

rPET in Waters division and 17% in countries where local standards and regulations allow for it (1)

TARGET
50%

rPET in average in Waters division by 2025 and 25% by 2020 in countries where local standards and regulations allow for it

Methodology Note(1)(Packaging Scope; see Methodology Note)
 

In 2018, Danone reached 6% recycled materials for all plastic packaging (vs 5% in 2017). This is mainly related to the increase of recycled PET, which is the unique food grade recycled plastic allowed.

 

In 2018, several brands in the Waters division, including Volvic, evian, Bonafont and Lanjarón, already used rPET. The average rate of rPET incorporation in Waters division output was 12% in 2018 (10% in 2017); 17% in geographies where it is allowed (14% in 2017).

 

Regarding global packaging use, in 2018, 38% of Danone’s primary, secondary & tertiary packaging is made of recycled materials (compared to 36% in 2017), including 70% of Paper-based packaging (compared to 72% in 2017) (Packaging Scope; see Methodology Note).  

Boosting renewable materials

Where plastics are concerned, Danone is investing in the development and use of renewable materials. That is why we aim to offer consumers bottles made of 100% renewable plastic (bioPET) by 2025.

  • In 2017, Danone launched a partnership with Nestlé Waters and Origin Materials to bring the first 100% bio-based PET bottle to commercial scale by 2025: The Natur'ALL Bottle Alliance. In 2018, PepsiCo joined the alliance.
  • We are also working in parallel to transition certain products to bio-based materials. At the end of 2017, our ‘So Delicious’ brand launched a bottle containing 80% bio-based HDPE plastic, made from sugar cane.

 

Danone is also committed to eliminating the deforestation linked to paper and board from its supply chain by end of 2020. Through this commitment, Danone fosters the use of recycled fibers, and, where this is not the case, Danone recommends FSC certified virgin fibers as paper and cardboard packaging production or equivalent local certification.

 

In 2018, Danone conducted deep assessment towards further transparency on its FSC virgin certified fibers with full chain of custody certifications and achieved 79% of its total fibers either recycled or certified (vs 84% in 2017). This decrease is mainly due to WhiteWave integration as main packaging used for plant-based products is paper-based. On a like-for-like basis, excluding WhiteWave legacy businesses, we achieved 85%.

 

PREVENT FOOD WASTE

Following the resolution to prevent food waste adopted by the Consumer Goods Forum in 2015, Danone committed to reduce its unrecovered food waste (i.e. waste that ends up in landfills, that is incinerated without any energy recovery or discharged with effluents) by 50% in 2025 versus 2016 and to fight against food waste across its value chain.

  • Within its scope of shared responsibility, Danone works with its suppliers to help them become more competitive by moving toward more sustainable agricultural practices, notably by working to reduce their losses.
  • Within its scope of direct responsibility, Danone reduces finished products and materials losses, gives away unsold edible products and recovers, preferably as animal feed, what cannot be consumed by humans.

 

To quantify food waste within its responsibility scope Danone relies on the first international Food Loss and Waste Protocol. For more information, you can refer to our Methodology Note.

Food waste ratio (kg/tons of finished products)

The ratio of food waste generated per metric ton of product sold has increased from 49.3 to 54.3 kg/tons of sales between 2017 and 2018; equivalent to a 10.2% increase (Food Waste Scope; see Methodology Note).

 

Recovered food waste is mainly fed to animals, anaerobically digested, or applied to land. The remaining unrecovered food waste remained flat at -0.5% between 2017 and 2018. On a like-for-like basis, the ratio increased by 13.5%, compared to 2017 and by 1.6% compared to 2016 (Food Waste Scope; see Methodology Note).

 

The 2018 performance was mainly impacted by the exceptional event of a boycott in Morocco.

 

For more information on Danone’s actions to prevent food waste, see the 3 case studies available in the Food Waste Case Studies booklet from the Consumer Goods Forum.

 

Subsidiaries performance towards our ambition

In 2018:

74%

 

of entities have taken at least one concrete action to improve their food waste recovery rate (Danone Way scope, see our Methodology Note and learn more on Danone Way in section Be certified as a B Corp).

REDUCE TOTAL WEIGHT OF INDUSTRIAL WASTE BY TYPE AND DISPOSAL METHOD

Danone consolidates the quantities of waste generated in its production sites according to the following categories: hazardous waste, lactoserum waste, wastewater treatment plant sludge, packaging waste, other non-hazardous waste and food waste collected on site or thrown out with wastewater (see Methodology Note).

Danone also monitors the percentage of its waste when it is recovered; such recovery may occur through recycling, reuse, composting or waste-to-energy conversion.

 

The production sites seek to maximize their waste recovery rate by taking the following measures: organizing on-site waste sorting and staff training, finding subcontractors capable of recovering the various types of waste generated and sharing best practices among sites.

 

The ratio of total quantity of waste per ton of products went from 11.2 in 2017 to 13.3 in 2018, mainly due to the integration of WhiteWave acquisition.

Based on constant scope of consolidation and constant methodology, the ratio was down by 4.6% between 2017 and 2018 (decrease of 9.8% between 2016 and 2017) thanks to the decrease of raw material and finished products losses in the production sites of the Essential Dairy and Plant Based Products and Early Life Nutrition activities of the Specialized Nutrition Division. The proportion of recovered waste decreased to 82.5% (versus 83.3% in 2017).

 

For more information on quantities of waste generated and recovered by Danone production sites, see our Exhaustive 2018 Environmental Data.

 

As a food company, agriculture is at the heart of Danone’s business. Today’s agricultural system faces several challenges, such as soil degradation, animal welfare, loss of biodiversity and water scarcity. We believe agriculture can be a solution to these challenges and a driver of sustainable growth. That is why we are working with our partners to develop regenerative farming models that are competitive, inclusive and resilient, and which rest on three pillars:

  • protecting soils, water and biodiversity;
  • empowering a new generation of farmers;
  • respecting animal welfare.

For more information on our Regenerative Agriculture approach you can refer to our 2018 Registration Document and the project section.

 

Performances on Danone’s monitoring of greenhouse gas emissions and animal welfare practices of milk producers are available on section Foster Inclusive Growth.

PROMOTE REGENERATIVE AGRICULTURE PRACTICES

PERFORMANCE 2018
50%

of non-organic fresh milk volume converted to Non-GMO Project verified in US

TARGET
50%

of non-organic fresh milk volume converted to Non-GMO Project verified in US by 2018.

ANIMAL WELFARE

PERFORMANCE 2018
43%

of fresh milk volumes worldwide assessed through the new animal welfare assessment tool or via Validus Animal Welfare certification in Essential Dairy and Plant-Based Products division

TARGET
80%

of fresh milk volumes worldwide(1) assessed through the new animal welfare assessment tool or via Validus Animal Welfare certification by 2020 in Essential Dairy and Plant-Based Products division

(1)Including the following countries covering more than 80% of total fresh milk (Algeria, Argentina, Belgium, Brazil, Egypt, France, Germany, Mexico, Poland, Romania, Russia, South Africa, Spain, and U.S.A.)

 

For more information on the animal welfare assessment tool, see the section Foster inclusive growth and our 2018 Registration Document.

PERFORMANCE 2018
37%

of cage-free eggs and egg ingredients volumes sourced worldwide (baseline 2018)

TARGET
100%

Cage-free eggs and egg ingredients across all countries and divisions by end of 2019

Thanks to the sustainable sourcing program Socrates (see our 2018 Registration Document), our Early Life Nutrition food production sites in Europe were using 100 % cage-free eggs in 2018.

100 %


of lamb and beef have access to pasture (Socrates Scope: Early Life Nutrition food production sites in the European Union).

 

For detailed information on Danone’s Animal Welfare performance, see our animal welfare progress report for 2017 - June 2018 here.

EMPOWER A NEW GENERATION OF FARMERS

As part of our Regenerative Agriculture strategy, we aim to empower farmers. Our goal is to support their ability to shift toward regenerative agricultural practices, and to accompany them as they pass along their craft to the next generation.

 

For more information, see the section Foster Inclusive Growth.

SUBSIDIARIES PERFORMANCE TOWARDS OUR AMBITION

71%

of entities have concrete project(s) on one among the 3 pillars of regenerative agriculture framework for their main raw materials. (Pillars of regenerative agriculture framework: 1. Protect Soil, Water and biodiversity, 2. Support Generation of farmers 3. Respect Animal welfare.) (Danone Way scope, refer to our Methodology Note and learn more on Danone Way in section Be certified as a B Corp).

 

Photo credit: Fotolia (rh2010)