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](http://images.ctfassets.net/kc2xclar6nri/DsaeWIkK5H9bnnvx96QVq/83932f62fbdde7c732602c54a1b2d160/Danone.jpg?fit=scale&w=1320&fm=webp)
Revenue
Total revenue:
$29.6bn
Revenue by Geography
Revenue by Protein
Revenue by Product Type
Disclosures
CDP ScoresLast Reviewed: 11/10/2023
CDP Climate | CDP Forests | CDP Water |
---|---|---|
Yes | Yes | Yes |
Science Based Target initiativeLast Reviewed: 03/10/2023
Target classification | Status | Date |
---|---|---|
1.5°C | Targets Set | 2022 |
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
The company discloses that the GHG emissions reduction targets were validated by the SBTi in 2017. The company's Scope 3 emissions (23,100 tCO2e) make up 96% of its total emissions of 24,042 tCO2e. Therefore, it is required by SBTi to include Scope 3 emissions in its Science-based target. It has a target to reduce 30% of methane emissions from fresh milk by 2030.
0.5/0.5
Strength of Target - SBT
The company commits to reducing absolute Scope 1 and 2 GHG emissions by 47.2% by FY2030 from the FY2020 base year. It also commits to reducing total Scope 3 GHG emissions by 42% within the same timeframe. Targets are aligned with the 1.5-degree pathway. It has the interim target of achieving net zero by 2050. However, the target is not validated by SBTi.
3.25/4.5
Innovation on GHG Emission Reduction
55/100
Innovation to Reduce Agriculture Emissions
The company partnered with Royal FrieslandCampina to implement sustainable farming practices and roll out concrete carbon reduction projects with farmers in the Netherlands. It had already achieved a 17.6% reduction in greenhouse gas emissions from the dairy ingredients supplied by Royal FrieslandCampina to the company. It extended the partnership for additional three years to reach around 25% greenhouse gas emissions reduction. It also discloses that the deployment of the CoolFarm tool to its milk farmers has decreased CO2 equivalent emissions by 363,000 tons.
0.75/1
Feed Farming Innovation
The company does not engage in innovative projects to reduce or mitigate emissions from feed farming
0/2
Animal Farming Innovation
The company collaborated with DSM and the Flanders Research Institute for Agriculture, Fisheries and Food (ILVO). It demonstrated promising results in reducing methane emissions by introducing a new ingredient to cattle feed. The on-farm trial confirmed the long-term methane reduction effect with a significant reduction of 18.3% in methane enteric emissions.
2/2
Quality of GHG Inventory
60/100
Quality and scope of GHG inventory Completeness
The company discloses its Scope 1, 2 and 3 emissions for its company-wide operations.
1.5/1.5
Feed & Animal Farming Emissions
The company disclosed the breakdown of total global Scope 1 emissions, including CO2, CH4 and N2O. However, it does not mention specific emissions from animal farming.
0/2
Transparency of GHG Inventory
The company has responded to the latest CDP climate change questionnaire in 2022. It discloses that a third party audits its GHG data.
1.5/1.5
Emissions Performance
50/100
Overall Emission Performance
The company reports a reduction in its Scope 1 and 2 emissions from 979 Ktons CO2 equivalent in 2021 to 942 Ktons CO2 equivalent in 2022. It reports a reduction in Scope 3 emissions from 23,571 Ktons CO2 equivalent in 2021 to 23,100 Ktons CO2 equivalent in 2022. The total Scope 1,2,3 emissions are 24207 Ktons in 2022 compared to 24714 Ktons in 2021. Thus, the company discloses an average decrease in absolute emissions of 2.05% compared to 2021. It does not mention the GHG emissions from animal farming and feed farming, so the GHG inventory is incomplete.
2.5/5
Climate-related Scenario Analysis
70/100
Climate-related Scenarios Analysis Conducted
The company conducted a climate-related scenario analysis in 2021, using different methodologies such as RCP 8.5, RCP 2.6 and Transition Scenarios IEA 2DS for quantitative analysis. It also conducted a scenario analysis to assess the financial impact of the chronic physical risks of water and heat stress on its worldwide upstream milk supply chain.
1/1
Disclosure of Analysis Results on Material Risks
The company discloses to CDP that physical climate risks such as severe drought and flooding have impacted the availability and price of agricultural commodities. It implements regenerative agriculture to mitigate the risks, which reduces its exposure to price volatility. It acknowledges that heat stress has a medium probability of occurrence with a medium potential financial impact on the milk supply chain. It has introduced hybrid maize species to support the cow's fibre digestibility and adaptability under heat stress in Spain. Romania has installed a mobile oasis in the grazing field to provide water, shade, and relief from heat stress, thus increasing milk production. The company discusses the impact of energy price volatility and the solution to limit the effect, such as improved energy efficiency (cutting energy consumption by 30% by 2025) and increased use of renewable energy. It discloses the risk of the carbon pricing system, comprising emissions trading and tax systems. It told the financial impact and cost calculation in its CDP Climate 2022. Additionally, it reports its mitigation measures to continually monitor its Scope 1 and 2 emissions and also monitor the latest developments on carbon pricing initiatives worldwide relating to carbon pricing. It discloses five financially material events resulting from climate risk, such as La Nina in 2021 and flooding in South-East Asia in 2020.
2.5/3
Disclosure of Financial Material Events & Alignment of CAPEX
The company does not disclose its commitment to align capital expenditures with its GHG targets.
0/1
Deforestation & Biodiversity
76/100
Deforestation/Conversion-free Target - Soy for Animal Feed
85/100
Risk Assessment to Identify High-risk Locations
The company is involved in dairy and states that soy used for cow feed constitutes less than 5% of the total feed ingredients. It discloses that 100% of the soy used in the Alpro brand is Proterra certified. However, only 7% of the soy used for feed is certified, with 56% being sourced from low-risk areas and 29% being sourced from areas potentially at risk of deforestation, which is compensated through RTRS claim credits. It has conducted a risk assessment of its entire value chain to identify the deforestation risks in its fresh milk collection. Since 2017, it has been conducting country assessments of soy feed volume and origin through its Cool Farm Tool worldwide (14 countries) and CAP2ER tool for France. Since less than 5% of soy is used in cow feed, the farmers rely on more sustainable soy concentrate which is either locally produced or certified. However, In some regions, especially in South America, soy production has been associated with deforestation and negatively impacts the environment and the local population. Therefore, the company is working to increase the adoption of regenerative agricultural practices in its value chain. The company also promotes local protein and alternative protein over imported soy for animal feed.
0.25/0.5
Strength of Deforestation Commitment
The company discloses a commitment to source 100% deforestation-free direct and indirect soy (used for feed). The target date for full implementation is 2025. Further, the company specifies a 2020 cut-off date for soy sourced that is used as animal feed.
2/2
Regional & Operational Coverage of Commitment
The company's zero-deforestation commitment applies to all sourcing regions at risk of deforestation and applies to 100% of soy at risk of deforestation.
1.25/1.25
Transparency - Progress Against Commitment
Currently, the company reports that 77% of combined volumes of soy (indirect and direct) are sourced as deforestation free. It reports that of the total volumes that are net-deforestation free, 36% is sourced from low-risk origin, 9% is certified (Mass balance or Area Mass balance), and the remaining 55% that is potentially at risk is compensated through RTRS book and claim credits. It has responded to its CDP Forest Questionnaire 2022.
0.75/1.25
Engagement, Monitoring & Traceability - Soy for Animal Feed
68/100
Supplier Engagement
The company discloses that it has started projects to help farmers plant local soy alternatives making them less dependent on imported soy, as well as reducing the risk of importing soy from deforestation-prone areas. Danone Germany, with the support of the Ecosystem Fund, launched in 2017 the Profee project which aims to encourage a switch to regional sources of protein and improve the feeding practices of farmers. The company claims that this helps to maintain the agricultural cultural landscape in Bavaria and improve soil quality as well as reduce the risk of deforestation in Latin America by sourcing local feed. However, It does not report any follow-up of the project in the current reporting period.
1/1.25
Compliance monitoring & Traceability
Danone has been conducting country-by-country assessments of soy feed volume and origin since 2017 through its Cool Farm Tool worldwide in order to identify the deforestation risks in its fresh milk collection accurately. It also states that it has implemented a Measurement, Reporting, and Verification (MRV) system to minimize the deforestation risk. The company sources Pro-terra-certified soy. However, less than 100% of the direct and indirect soy used is certified. The company also discloses that it has previously taken actions to remove tier-1 suppliers who were not compliant in Brazil. It discloses that as of 2022 it has analysed soy as feed sourcing for 95% of its milk volume.
1.88/3.25
Feed Innovation
The company discloses that it is working to increase the adoption of regenerative agricultural practices in its value chain. Alongside this, the company states that it promotes local protein and alternative protein to imported soy for animal feed. The company has released a regenerative agriculture report which details the results of regenerative programs in the US, France and Mexico.
0.5/0.5
Water Use & Scarcity
69/100
Water Use & Scarcity in Facilities
90/100
Monitoring Water Consumption & Withdrawals
The company has assessed the relative water risk of its operations using the WWF Water Risk Filter and found that 17% of its production sites were located in high or extreme water risk areas. The company discloses the location by region and/or river basin of its facilities exposed to water risks. It states it is focused on increasing water circularity and high-quality wastewater treatment. 86% of its production facilities follow the 4R roadmap that optimises water usage and reinforces circular use of water. Danone also discloses its total water consumption in 2022.
0.75/0.75
Target to Reduce Water Consumption & Withdrawals
The company has set a target to reduce water consumption intensity by 50% from processing, at all water high-risk production sites by 2030 from a 2015 baseline. The target was set in 2020, and the company has so far achieved 50% of the target.
0.5/1
Disclosure & Performance of Water Risks in Facilities
The company discloses its water withdrawals by source in 2022. It reports that between 26-50% of the water was withdrawn from the water-stressed areas. The company discloses that CAPEX relating to water was reduced by 26% in 2022 compared to 2021 and that it expects a forward trend of 46% increase. OPEX relating to water increased by 3% in 2022, and it expects a forward trend of 38% increase. The company discloses that, in 2022, the total volume of water withdrawn decreased by 1.3%, and water consumption decreased by 3% compared to 2021. Mazars Group has externally verified water-related data. The company submitted responses to the latest CDP water security questionnaire in 2022.
3.25/3.25
Water Use & Scarcity in Feed Farming
49/100
Supplier Engagement in Water Use in Feed Farming
The company has a regenerative agriculture policy which applies to livestock farmers and crops for livestock. Through this policy, the company addresses water scarcity and discloses the indicators it uses to engage with farmers on this topic. It states that it provides financial incentives to support projects that help farmers build resilient agricultural models that respect and preserve natural resources. Farmers are selected for support based on their exposure to water-related risks, mainly water scarcity and drought. As part of its regenerative agriculture program, the company has partnered with Wageningen University and WWF France and others to create its Farming for Generations (F4G) global alliance, which aims to provide a forum for peer-to-peer exchanges of information on topics such as soil health and biodiversity, as well as water.
1.63/2.5
Disclosure of Water Risks in Feed Farming
The company discloses that 12.6% of the volume of its dairy ingredients are sourced from areas which are facing higher than average water stress. The company is also investing in regenerative agriculture within its feed crop supply chains.
0.8/2.5
Water Use & Scarcity in Animal Farming
68/100
Supplier Engagement in Water Use in Animal Farming
The company discloses that 34% of its milk farms were located in areas of high water stress. However, it is unclear if the scope of the disclosure includes smallholder farms. Livestock farmers are included in its regenerative agriculture policy, and it engages with them on water scarcity. The company offers support and guidance for regenerative agriculture for its dairy farmers. This guidance is provided in a regenerative agriculture handbook and scorecard and informs farmers on practices to address water usage and scarcity.
2.6/3
Disclosure of Water Risks in Animal Farming
The company developed its regenerative agricultural scorecard in partnership with WWF. Water use is one of the topics which is assessed using this scorecard.
0.8/2
Waste & Pollution
33/100
Wastewater at Facilities
60/100
Disclosure & Targets for Wastewater Quality & Volume Discharged
The company reports it paid fines for exceeding discharge limits to municipal treatment facilities in Turkey, Germany and Russia in 2021. Danone has conducted a water risk assessment using the WRI aqueduct tool and the WWF Water Risk tool, where scarcity and physical risk tools were both used. The assessment found that 17% of its processing facilities and production sites were located in high or extreme water risk areas. However, the company does not disclose the locations of water stress from a quality perspective. Danone has a target to manage water quality risks at the watershed level and return all wastewater to natural ecosystems clean at 100% of its production sites. However, it is unclear if it has targets to reduce specific pollutants by a certain amount.
0.75/1.5
Transparency on Water Pollution Risks
The company reports the COD for water discharged in 2022. The non-financial data reported by the company are externally verified by Mazars Group. It has also submitted the latest CDP Water Security Questionnaire in 2022.
1.75/2
Performance on Wastewater Quality & Volume Discharged
The company reports a 15.61% decrease in COD level in 2022.
0.5/1.5
Nutrient Management in Feed Farming
20/100
Supplier Engagement in Nutrient Pollution Risks
As part of its regenerative agriculture policy, the company engages with crop farmers and livestock farmers on soil health and water quality issues. Danone has a goal to implement regenerative agriculture practices by 2030 to optimise fertiliser use at the farm level for 75% of milk, fruit, almond & and soy volumes, however, it is unclear if this applies to soy used for feed. The company also speaks about feed self-sufficiency being a target of regenerative agriculture for its dairy suppliers.
1/4
Innovation to Improve Nutrient Management in Feed Farming
Danone has a goal to implement regenerative agriculture practices at the farm level for 75% of milk, fruit, almond & soy volumes. However, it is unclear if this applies to its soy used for animal feed.
0/1
Manure Management in Animal Farming
20/100
Disclosure of Pollution Risks from Manure
The company states that it has developed action plants to convert manure into organic fertilisers through compost and bio digesters. The project currently covers 350 hectares in Brazil and Danone expects to cover 1,4000 hectares with regenerative agriculture practices, including manure management, in 2023.
0.4/1.25
Supplier Engagement in Manure Management
The company has a regenerative agricultural initiative with a scorecard that was designed to support suppliers in improving their environmental performance. Dairy cattle are one of the targets of this initiative with some proposed aims being to tackle physical and scarcity risks related to water, as well as to improve soil health.
0.6/1.5
Innovation to Improve Nutrient Management in Animal Farming
The company does not integrate nutrient management performance into incentive schemes for farmers. It does not discuss innovation in manure or provide evidence of a community engagement plan in relation to pollution.
0/2.25
Antibiotics
23/100
Policy on Antibiotics Use
46/100
Policy on Antibiotics Use
The company commits to curbing the prophylactic use of antibiotics across its value chain, aiming to focus more on disease prevention and excluding the use of growth promoters in its entire livestock supply chain, with the target to extend this commitment globally by 2026. It has embarked on numerous animal welfare initiatives including vaccination programmes, health monitoring, and the reduction of routine mutilation, actively seeking expert collaboration and funding research to enhance its disease prevention strategies.
2.3/5
Disclosure of Quantity of Antibiotics Used
0/100
Disclosure of Quantity of Antibiotics Used
The company does not disclose the quantity of antibiotics used.
0/5
Animal Welfare
44/100
Animal Welfare Policy
63/100
Welfare Policy
The company commits to the Five Freedoms in its universal animal welfare policy and offers training and technical support to dairy farmers, with 2,600 farms already implementing changes. It also integrates training requirements into its animal welfare documents and categorises non-compliance as a contract breach. Additionally, it has initiated efforts in regenerative agriculture through Farming for Generations. However, it does not disclose specific actions for contract breaches or the extent of the implementation of its progressive welfare practices in regenerative agriculture.
1.25/2
Key Welfare Issues
The company commits to avoiding close confinement and tethering, eradicating on-farm mutilation, and minimising live animal transport durations to under eight hours. It is also committed to pre-slaughter stunning in specific geographies, with plans for a global extension by 2026. However, there is no disclosure on the practical implementation of its housing conditions commitment within the current reporting period.
1.9/3
Assurance & Certification
35/100
Auditing & Assurance by an Animal Welfare Organisation
The company holds AENOR certification for animal welfare awarded in 2019. The company reveals that 80% of its fresh milk production has undergone audits via the Group's animal welfare audit. Additionally, approximately 2,600 farm-level audits have been conducted.
1.5/4
Public Reporting on Welfare
The company disclosed animal welfare data up to 2020, with no subsequent disclosures since then.
0.25/1
Performance on Key Material Risks
35/100
Performance on Key Material Welfare Risks by Protein
The company commits to phasing out all forms of permanent tethering for farm animals, with 91% of its dairy cows already not subject to tethering. It also reports a decrease in mastitis instances in 2018. However, ambiguity exists regarding whether the lameness score is below the optimal 10% threshold. Furthermore, it fails to provide updated data on mastitis for the subsequent years or substantiated evidence of an adequate environment for its dairy cows.
1.75/5
Working Conditions
68/100
Human Rights
90/100
Strength of Policy
The company commits in writing to respect all internationally recognised human rights per international standards such as the ILO's Declaration on Fundamental Principles and Rights at Work.
1/1
Due Diligence Process
The company states that in 2022, it conducted a salient human rights impact assessment of its operations and value chain with the support of Shift, an organisation with deep expertise in the UN Guiding Principles on Business and Human Rights. This was a follow-up to the detailed human impact assessment conducted in 2017, which assessed the risks associated with the company’s 20 most essential commodities. Regarding risk monitoring, it distributes a social scorecard throughout its operations to ensure its farms adhere to regenerative agricultural social practices, including those concerning labour rights. Furthermore, the company conducts SMETA audits in its supply chain, and upon completion of the audits, the company supports suppliers in developing corrective action plans and provides support and regular engagement.
The company also discloses its human rights risks and mitigation strategy for its supply chain and operations. For its suppliers, the company mitigates risk through the social scorecard, providing resources, and constantly engaging suppliers in discussions to improve human rights adherence. For its direct operations, the company provided training on human rights to 6,658 employees at the end of 2022. The company has also participated in various coalitions and workstreams on responsible sourcing topics.
3/3
Evidence of Remediation
The company shared the results of the SMETA audits of its suppliers in 2021 and 2022. It discloses critical non-conformities related to child labour, forced labour, discrimination, health and safety, freedom of association, the right to collective bargaining and business ethics. However, this information excludes milk farmers.
0.5/1
Fair Working Conditions
69/100
Policy for Direct Operations
The company commits in writing to prohibit forced labour, child labour, discrimination and harassment and requires suppliers to make these commitments. Furthermore, The company discloses that much of its operations undergo audits covering these policies. However, the company does not commit to ensuring all its employees are paid a living wage or disclose information regarding sick pay.
2/3
Monitoring & Discosure
The company monitors adherence to labour standards through audits and social scorecards, but it is unclear if these cover all the policies of forced labour, child labour, discrimination and harassment.
The company has a whistleblowing channel for internal and external stakeholders, developed with input from employee representatives. It also mentioned that anyone who raises a concern may choose to remain anonymous. The company reports 273 alerts were raised through its whistleblowing channel. All these issues were categorised as human rights issues. However, this category needs to be broken down further. It also mentions that 220 alerts have been closed at year-end, and 53 are still under investigation.
1.45/2
Safety & Turnover Data
35/100
Committee representation of workers
The company commits in writing to provide its workers with a safe, healthy and calm working environment. However, it does not disclose any health and safety certification. The company states that its Workplace Health and Safety Program is overseen at the Group level by the Safety Steering Committee, comprised of senior management. However, the company does not mention if it has site-level health and safety committees with worker representatives.
0.5/2
Disclosure of safety and turnover data
The company reports a lost-time injury frequency rate (LTIFR) of 1.1 per one million hours worked in FY2022, an increase from the LTIFR of 1.0 reported in FY2021. The company reports one fatal accident across its direct operations in FY2022 and FY2021. However, the fatality rate has slightly increased as the number of employees dropped in FY2022 while the number of fatalities remained one.
The company reports an overall 20% employee turnover rate in FY2022, with a slightly smaller turnover of 17.5% for managers and more senior management. However, it does not disaggregate this further by seniority level.
1.25/3
Freedom of Association
80/100
Strength of Policies
The company commits in writing to respect labour rights, including freedom of association. It also describes in detail its approach to discussing matters and meeting with union representatives, the International Union for Food Workers (IUF), and two councils representing employees. While it does discuss the number of agreements signed with the IUF, it does not report the unionisation rate. The company also states that suppliers must recognise and respect employees’ freedom of association and their right to bargain collectively.
2.5/3
Disclosure of Collective Bargaining Metrics
The company mentioned that In 2022, 74% of employees were covered by collective bargaining agreements. It also breaks down the distribution of its workforce across existing contractual arrangements, including part-time and subcontracted workers.
1.48/2
Food Safety
31/100
Food Safety System
50/100
Certifications
The company discloses that there are a total of 178 production sites for all of Danone’s Categories, not including the production sites of co-manufacturers and suppliers. In 2022, it reached a 95% site FSSC 22000 certification rate, which is a GFSI-recognised certification. Further, it audits third-party manufacturers and suppliers against GFSI-recognised schemes to ensure compliance with the Quality Food and Safety (QFS) policy. It expects its suppliers to maintain and deploy a Food Safety Management System following GFSI-recognised standards.
2/3.5
Performance
The company conducts both internal and external food safety audits in its operations. In 2022, the Global Food Safety Audit team conducted 72 in-house audits. Further, 166 FSSC 22000 certification audits were conducted by independent certification bodies. However, the corrective action rate is not disclosed. Additionally, it does not confirm whether it is developing or has implemented a consumer-facing technology for food safety.
0.5/1.5
Product Recalls & Market Bans
13/100
Product Recall Systems
The company acknowledges food safety as its key material risk, but no further information regarding its product recall system is provided. Additionally, it does not disclose the number of recall incidents during the reporting year, and none were detected in the media screening.
0.13/3
Performance
The company does not report information on market bans for the reporting period, and none were detected in the media screening.
0.5/2
Sustainability Governance
79/100
Assessment of a Company's Sustainability Governance
79/100
Board Sustainability
The company has a Global Sustainability Board led by the Chief Sustainability Officer and composed of functional and business leaders responsible for steering the execution of the sustainability strategy. In addition, the company conducted a materiality assessment and has identified 12 material priorities as product safety/quality, the nutritional quality of the overall product portfolio, food/water access and affordability, new consumption patterns/planetary diet, consumer behaviour change, climate change, sustainable dairy farming/land use, local sourcing and rural/farmer development, water stewardship, circular economy/packaging/waste, responsible procurement/supply chain management and responsible practices ethics and integrity. The Global Sustainability Board has approved the materiality. The company has board-level expertise in sustainability and food safety but not innovation.
1.75/2
Incentives & Policy Engagement
The company has set executive monetary rewards linked to climate-related and sustainability indexes and discloses the percentage of variable compensation related to these metrics.
The company collaborates with multiple policymakers and civil societies, and some of its crucial impact partners include B Lab, Ellen MacArthur Foundation, Environmental Defense Fund, RAMSAR, Food and Agricultural Organization (FAO), OECD, WWF and UNITAR. The company also supports the European Commission’s Climate Neutral Farms (ClieNFarm) project to co-develop and upscale locally relevant solutions (organisational, financial, technical) to reach Europe's climate-neutral, resilient and sustainable farms. The company also discloses its trade association and alliance memberships. However, the company does not have a public commitment or position statement to conduct its engagement activities in line with the goals of the Paris Agreement. Still, it plans to have this within the next two years.
1.95/2.5
Innovation & Benchmarking
The company aims to develop regenerative agriculture models to help farms maintain soil health and protect animal welfare. The company has cofounded two initiatives, One Planet Business for Biodiversity (OP2B) and Farming for Generations, to promote regenerative agriculture throughout the industry. However, the company does not disclose how it benchmarks itself against peers in sustainability and innovation.
0.25/0.5
Alternative Proteins
45/100
Diversification of Products to Alternative Protein Sources
45/100
Existing product portfolio
The company has not communicated about protein diversification as a material business issue. However, it states that 54% of its revenue is generated from its Essential Dairy and Plant-Based (EDP) products segment, which is not disaggregated by product. It mentions a timebound target to achieve a 3.5-star rating by 2025 by Health Star for its dairy, plant-based, water and aqua drinks products. However, it does not disclose a timebound target to increase the sales of such alternative protein products.
0.25/2.5
Investing for future growth
The company has two plant-based protein brands: "Alpro", based in Europe, and "Silk", in North America. These brands offer a variety of products, including milk, yoghurt, cheese and ice cream. Further, it reported a strategic $2 million investment deal with cell-based breast milk startup, "Wilk", in April 2023. A month later, it made a second alternative milk investment in startup Imagindairy, taking a minority stake in the precision fermentation firm.
2/2.5
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Workstream Information
2023 Risk Score:
54/100
Level:
Medium Risk
Ranking:
11/60
Main Protein:
Dairy
Assessed Proteins:
Dairy
Company Feedback Given:
No
Last Updated:
31 October 2023
2023 Resources
2023/24 Index Report Summary (Mandarin) 报告总结摘要(中文) Launch of the Coller FAIRR Protein Producer Index 2023/24 2023/24 Company Dialogue Questions 2023/24 Full Report Coller FAIRR Protein Producer Index
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
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.
Full
Reporting of Scope 3 emissions from animal agriculture
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.
Full
1.5C aligned SBTi Scope 3 FLAG target
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.
Full
Quantifying the opportunity of protein diversification
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.
Full
Protein Diversification Strategy
Partial
Integrating protein diversification into climate transition plans
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.
Limited
Protein diversification target is timebound
Danone's protein diversification target of increasing revenues from plant-based products is time-bound to 2025.
Full
Business coverage of protein diversification target
Danone plans to triple it plant-based sales to EUR 5 billion by 2025 from a 2019 baseline is its entire business.
Full
Alignment of target with climate and health guidelines
There is no evidence that these targets are aligned with recognised climate and health guidelines for dietary transition.
No Evidence
Measuring Progress
Lead
Disclosing progress against protein diversification target
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).
Full
Annual reporting of progress of protein diversification target
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).
Full
Climate Strategy - Governance and Influence
Lead
Board Oversight
Good
Board support for protein diversification
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.
Limited
Climate expertise of board
Danone has 4 out of 11 (36%) board members with CSR/ Climate experience.
Full
Nutrition/health expertise of board
Danone has 3 board members (27%) with nutrition/health experience.
Full
Advocacy
Lead
Disclosing a list of direct lobbying actions
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.
Full
Direct lobbying in line with climate and nutrition
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.
Full
Disclosing a list of indirect lobbying actions
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.
Full
Indirect lobbying in line with climate and nutrition
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,
Full
Climate Strategy - Adoption of Just Transition
Partial
Just Transition Commitments
Lead
Public commitment to Just Transition principles
The company is committed to supporting farmers in a just transition towards more sustainable agricultural practices.
Full
Commitment to support workers
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.
Full
Commitment to support stakeholders
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.
Full
Just Transition Strategy
Low
Public Just Transition strategy
Danone does not have a Just Transition strategy that covers animal agriculture.
No Evidence
Consulting social actors in Just Transition strategy development
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.
Limited
Just Transition KPI
DNF
Disclosing Just Transition KPIs
There is no evidence for this KPI.
No Evidence
Reporting against Just Transition KPIs annually
There is no evidence for this KPI.
No Evidence
Product Portfolio - Resource Allocation
Good
Portfolio Diversification
Partial
Dedicating resources to expanding alternative protein offering
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.
Full
Annual evidence of resource allocation
There is no evidence for this KPI.
No Evidence
Improving Nutrition and Sustainability Attributes
Lead
Dedicating resources to improve the nutrition and sustainability of products
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.
Full
Reformulating products to improve nutrition
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
Full
Reformulating products to improve sustainability
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.
Full
Consumer Education - Consistency of Marketing Strategies
Partial
Commitment Across Geographies/Brands
Good
Commitment to marketing alternative protein sources
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.
Full
Business coverage of marketing commitment
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.
Limited
Nutrition and Sustainabilty
Good
Promoting the nutritional attributes of alternative protein sources
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.
Full
Promoting the sustainability attributes of alternative protein sources
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.
Limited
Consumer Research
DNF
Conducting consumer research on alternative protein sources
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.
No Evidence
Conducting consumer research on healthy diets
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.
No Evidence
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Workstream Information
Business Type:
Manufacturer
Company Feedback Given:
No
Last Updated:
8 July 2024
2024 Resources
Protein Diversification Phase 1 Progress Report Protein Diversification Engagement